THURSDAY, MARCH 30, 1967
THE MICHIGAN DAILY"
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T1TU1SDAY ?4A~fl 0, 167 TNE MCHTE1%T IATI
PAGE THREE
i
FO Cha
r:
ged With
Violation s
Justice Dept.
Files Suit in
U. Court
Asks Order To Stop
Illegal Threatening
Of All Nonmembers
DES MOINES, Iowa (P)-The
National Farmers Organization
was charged in a civil antitrust
suit yesterday with using coercion
in an attempt to monopolize the
interstate sale of milk in 19 states.
The Justice Department filed
the suit in U.S. District Court in
Des Moines, Iowa, on the 14th day
of an NFO milk-marketing boy-
cott.
The suit charged that the NFO
had forced nonmember farmers,
truckers and processors to join
its withholding campaign. It did
not challenge the holdback by
NFO members themselves.
The government contended the
drive had unlawfully curtailed the
interstate flow of milk. It asked
that the NFO and its members be
ordered not to threaten nonmem-
ber farmers and others in the
trade and not to try to monopolize
the sale of milk by illegal means.
The NFO had staked out 25
states for its campaign, but took
little, if any, action in some of
them.
Earlier in the day, the NFO
switched from dumping milk to
turning it into by-products that
can be stored.
The new strategy has the same.
aim as the old-keeping milk from
normal channels in a movement
to add two cents to the prices
farmers receive, now generally
eight to 10 cents a quart.
The NFO president, Oren Lee
Staley, announced "phase two" of
the withholding action in Corning,
Iowa.
Under the plan, participating
farmers will send milk" to pro-
cessors who have signed four-
month contracts to pay two cents
more per quart. The milk, both
grade A and grade B, will be con-
verted into cheese, butter or pow-
dered milk and put in storage.
Staley did not say how many
plants are taking part in the plan.
"The key to success means keep-
ing molk from going into the nor-
mal channels," he said.
"We are determined to show the,
industry it cannot outlast us."
Many farmers had been dump-
ing milk from going into the nor-
culated as high as $150 a day.
Storing the converted milk
raised the. possibility that the
farmers, who will retain owner-
ship, will be able to borrow money
from banks on warehouse receipts.
Keith Emenhiser, a district NFO
coordinator in Ohio, said farmers
can get federal price supports, too.
Fifth alkout in Four Years
Threatens New York Papers
NEW YORK (M-Contracts be-
tween five New York major daily
newspapers and 10 unions expire
at midnight tonite, and one union
leader said a strike is "as likely as
not."
The unions seek New York ar-
rangements to replace expiring
two-year contracts for 17,000 sala-
ried and hourly rated employes
of the Times, Daily News, World
Journal Tribune, Long Island
Press and Long Island Star-Jour?
nal, all members of the Publishers
Association of New York City.
Ntw York's sixth major daily,
the Post, is not a member of the
association and negotiates sepa-
rately with the unions.
Four Unions
Four of the unions "are pre-
pared to go on strike" after their
contracts expire, said Thomas J.
Murphy, chairman of the News-
paper Unity Council and executive
vice president of ere New York
Defense DepartmentDenies
Po'or Viet Supply System
WASHINGTON (P)-A Senate from the government's mothball
subcommittee reported last night
-and the Pentagon denied-that
U.S. air and sea transportation
forces "will be stretched to the
limit" to support massive military
operations in Vietnam.
The Senate report came from
the armed forces preparedness
subcommittee headed by Sen. John
Stennis (D-Miss), and it mixed
praise with criticism of the vast
Vietnam sea and airlift. The criti-
cism focused on the sealift.
The subcommittee pinpointed as
one potential trouble area a break-
down rate of old ships pulled out
of the mothball fleet-some 20
to 27 years old. This was placed
at 5.2 per cent, more than double
the 2.5 per cent rate for the pri-
vately-owned commercial fleet
under charter from Vietnam serv-
ice.
The Defense Department con-
ceded, there have been problems,
but blamed them on a lack of un-
loading and handling facilities in
Vietnam, not a ship shortage. The
Senate report itself noted a great
improvement in the berthing and
offloading facilitiesand deliveries.
"Both the interthreater and in-
tratheater transportation require-
ments of Vietnam are well within
the limits of our capability," the
Pentagon declared, adding: "Po-
tentially available U.S.-owned sea-
lift resources could support an
operation 21/2 times the size of
Vietnam today."
The report referred to testimony
by Secretary of Defense Robert
S. McNamara in January that al-
though taxpayers are putting out
$750 million annually to subsidize
the U.S.-flag fleet for defense
needs, these subsidized operators
have done little in the Vietnam
buildup.
Instead, McNamara said, the
Defense Department was forced
to pull 161 World War II ships
fleet and to use 73 subsidized
tramp ships to get thousands of
personnel and millions of tons of
equipment and supplies to Viet-
nam.
Sen. Richard B. Russell (D-Ga),
chairman of the Armed Services
Committee, in urging their elimin-
ination, told the Senate this coun-
try should "not unilaterally as-
sume the function of policing the
world."
The subcommittee report told
of a backlog of 141,052 tons of
cargo awaiting shipment to south-
east Asia from west coast ports
last October. It said another
55,536 tons of Vietnam supplies
were ready for sea shipment, but
not even offered for booking be-
cause of lack of ships.
The Defense Department con-
ceded that the cargo backlog
reached 280,000 tons last fall, but
said a lack of unloading and han-
dling facilities in Vietnam was the
chief cause.
Newspaper Guild. He said these
are the printers, electricians, de-
liverers and machinists.'
Two other unions are dus to
meet before the contract deadline
to vote on strike action, he said.
If a strike comes it would be
the fifth newspaper walkout in
less than four years.
Since Nov. 1, 1962, some or all
of the city's major dailies have
been shut down by strikes for a
total of 41 weeks, or an average
of one out of every five weeks.
140-Day Walkout
That strike, resulting from the
merger, was settled Sept. 12 1966.
Other newspapers in the city con-
tinued publication during the 140-
day walkout.
Negotiations between the news-
papers - and the unions-in some
cases joint meetings and in other
cases individual sessions-con-
tinued yesterday to avert another
strike.
John J. Gaherin, president of
the publishers association of New
York City, said: "If in fact the
situation is nearing a crisis, it is
not the fault of the publishers.
Joint Negotiations
The unions, with the exception
of the guild and printers, are
negotiating jointly wtih the asso-
ciation. The Guild always has
negotiated separately with each
newspaper. In the current nego-
tiations, the printers are holding
separate talks with the Times, too.
Powers and Frederick C. Van
Cott, president of the photoen-
gravers, said after a morning ses-
sion with the publishers that no
wage offer had been made. On
Monday, the printers rejected the
publishers' first wage offer, a four
per cent increase for each year of
a three-year contract.
N.Y. Strikers
Disrupt TV
Scheduling
Newsmen Contest
Wage Rates Against
4 Major Networks
NEW YORK (A)--An announ-
cers' wage strike scrambled na-
tional radio and television net-
w o r k progamming yesterday,
blacking out many of the faces
and voices familiar to audiences
coast to coast. All stations stayed
on the air, however.
The Federal Mediation and Con-
ciliation Service set up peace talks
for 10 a.m. Saturday in Washing-
ton in an effort to break a con-
tract deadlock between the four
major networks and the 18,000-
member American Federation of
Television and Radio Artists.
The main issue involved the 100
local news gatherers at network-
owned stations in New York, Chi-
cago and Los Angeles. They sought
a base salary of $325 a week, plus
50 per cent of commercial fees
until the fee income equals base
salary. Then the announcers would
retain 100 per cent of additional
fees from sponsored programs.
Hitherto, the newsmen have
negotiated contracts on an in-
dividual basis for salaries ranging
from $225 to $350 a week, with
fees bringing some incomes to as
high as $800 a week.
Among newscasts affected by
the strike were NBC's Huntley-
Brinkley, CBS's Walter Cronkite,
and ABC's Peter Jennings.
William Monroe, an office man-
ager in Washington, was flown
in to lend a hand on the Huntley-
Brinkley news show. Daryl Grif-
fin, a news production official,
was tabbed by ABC to step in for
Jennings.
Such name entertainers as Dean
Martin, Danny Kaye, Red Skelton
and the Smothers Brothers were
taped only a week or 'so in ad-
vance, and could be eclipsed if the
strike is prolonged.
Weekend appearances of such
stars ts Ed Sullivan and Jackie
Gleason were in doubt, with CBS
prepared to use tapes of their old
shows, it need be.
Supervisory personnel kept sta-
tions on the air, digging into li-
braries of old and all-but-for-
goten shows to fill time left va-
cant by striking news and staff
announcers, actors, singers and
dancers. Indepent stations were
not affected.
Daytime soap operas were hard
hit and their pretaping extended
only to the end of this week. This
foreshadowed the sudden and un-
expected network comeback of
such long-absent stars as Jack
Benny and Loreta Young, whose
old shows were to be used as sub-
stitutes. Captain Kangaroo re-
portedly had tapes on hand
through April 10.
Directly involved in a dawn
walkout at stations in New York,
Chicago, Los Angeles were only
about 100 on-the-air network news
gatherers. But they were joined on
picket lines by AFTRA members
from other facets of the industry.
Johnson Orders Stoppage
Of CIA Private Subsides
WASHINGTON () - President
Johnson ordered the Central In-
telligence Agency yesterday to get
out of the business of subsidizing
private groups through secret,
under-the-table deals.
Johnson at the same time prom-
ised to give serious consideration
to the creation of a new institu-
tion that in effect would do so
in the open.
The President acted after re-
ceiving recommendations from a
three-man panel he appointed
after an international controversy
was kicked up last month by dis-
closure that the CIA had been
secretly financing overseas activi-
.ties by private educational, labor,
philanthropic and cultural organ-
izations.
In a key move, Johnson accepted
the following recommended policy
statement by the panel:
"No federal agency shall provide
any covert financial assistance or
support, direct or indirect to any
of the nations educational or pri-
vate voluntary organizations...
"Where such support has been
given, it will be terminated as
quickly as possible without de-
stroying valuable private organ-
izations before they can seek new
means of support."
The President, in a statement
of his own, said he is directing
all federal agencies to fully im-
plement the new policy.
The committee also recom-
mended "that the government
should promptly develop and es-
tablish a public-private mecha-
nism to provide public funds open-
WASHINGTON (P) - President
Johnson ended guessing in finan-
cial circles yesterday by redesig-
nating controversial William Mc-
Chesney Martin, Jr. as chairman
of the Federal Reserve Board.
A symbol of "sound money" in
the financial world at home and
abroad but anathema to "soft
money" advocates, Martin will
continue as chairman of the board
until Jan. 30, 1970. '
Some of Martin's most vigorous
critics are congressional Demo-
crats. They include Rep. Wright
Patman (D-Tex), chairman of the
House Banking and Currency
Committee, ,and Sen. russell B.
Long (D-La), chairman of the
Senate Finance Committee. In
particularly, the critics have
blamed Martin for higher interest
rates.
Defenders of Martin, and fiscal
conservatives generally, contend
that the reserve board has voted
both ways on monetary policy-
with the votes hinging entirely
on economic conditions at the
time. Martin noted in recent con-
gressional testimony that the
board has been moving to', make
money more readily available with
the dampening of inflationary
pressures.
Johnson is the 'fourth President
to designate Martin as chairman
of the board. He originally was ap-
pointed to the board and desig-
nated chairman in April 1951 by
Harry S. Truman.:
One man generally regarded as_
a "tight money" advocate will be
leaving the board at the end of
April.
George Christian, White House
press secretary who announced
that Johnson asked Martin to stay
on as chairman and that Martin
agreed, said a successor will be
picked later for Charles N. Shep-
ardson.
Under civil service law, a gov-
ernment official must retire at the
age of 70 if he has at least 15
years service, barring a waiver by
the President. Christian made it
clear that no such waiver will bej
forthcoming for Shepardson. Or-
dinarily, Shepardson's term would
expire a year from now.
Both Martin and Shepardson
were in the majority when the
board in December 1965 voted 4 to
3 to increase the discount rate
from 4 per cent to 4/ per cent,
much to Johnson's annoyance.
The board said it took the ac-
tion to combat inflation, but it
had the effect of raising interest
rates up and down the line..
Martin Named to New
Term as Fed Chairman
ly for overseas activities of organ-
izations which are adjudged de-
serving, in the national interest,
of public support."
On this point, Johnson said: "to
review concrete ways of accom-
plishing this objective, I am re-
questing Secretary Rusk to serve
as chairman of a special commit-
tee which will include representa-
tives from the executive, the Con-
gress and the private community."
Chairman of the group that re-
ported to Johnsonson was Under-
secretary of State Nicholas Kat-
zenbach. The other members were
CIA Director Richard Helms and
Secretary of Welfare John W.
Gardner.
This group said that many of
the activities-such as those of the
National Student Association--
that had been subsidized by the
CIA were of great importance.
However, it concluded:
"The time has surely come for
the government .to help support
such activity in a mature, open
manner.'
The Katzenbach committee es-
timated that most if not all exist-
ing secret subsidy programs can
be liquidated by Dec. 31.
None of these programs, it said,
would justify any exception to the
new policy against secret financial
aid.
"At the same time, where the
security of the nation may be at
stake," it went on, "it is impos-
sible for this committee to state
categorically now that there will
never be a contingency in which
overriding national security in-
terest may require an exception."
Soviet Union Backs Of f
On Planned 13loc Meeting
world News Roundup
By The Associated Press The opinion by the 12-man
NEW YORK-Ramparts Maga- court endorsed the decision made
zine, which last month exposed three months ago by a three-judge
Central Intelligence Agency fi- panel of the court.
nancing of American students and The integration order applies to
other groups, says in its April issue students, teachers, school trans-
the CIA is using foreign student portation and school-related ac-
associations to turn members into tivities.
spies against their homelands. * * *
The magazine calls the cam- C1TERBOURG, France - France
paign a major one of "recruiting took another long step into the
and, when necessary, blackmailing atomic age yesterday when Presi-
foreign students who are studying der L Charles de Gaulle launched
in this country." the first French nuclear-powered
WASHIGTON. bSearinethat will' be able to
WASHINGTON - The Senate deliver Polaris-type missiles when
ethics committee which investi- it bcomes fully operational in
gated misconduct charges against 1970.
Sen. Thomas J. Dodd has decided E . T
nefther to" exonerate him nor to, PROVIDENCE, R.I. -The out-
recommend his expulsion from the come of a campaign debate on
Senate, it was learned yesterday. President Johnson's Vietnam
The decision was reached at a policy remained in doubt yester-
secret meeting of the six-member day until 1,899 absentee ballots
bipartisan committee a week ago, are counted in a special election
shortly before Congress started its in Rhode Island's 2nd Congres-
Easter recess. sional District.
*ul The Democratic candidate, State
NEW ORLEANS, La.-The full Sen. Robert O. Tiernan. who gave
5th U.S. Circuit Court of Appeals wholehearted support to the ad-
aff'rmed yesterday a far-reaching ministration on Vietnam, held a
decision that six Southern states 485-vote margin in the count of
must integrate t h e i r public Tuesday's balloting to choose a
schools from kindergarten up at successor to tlie late Democratic
the start of the fall term this year Rep. John E. Forgarty.
MOSCOW (M--The Soviet Com-
munist party admitted yesterday
it has not yet overcome obstacles
to its proposed world Communist
conference as a move to isolate
China.
Meeting resistance from several
Communist parties including those
of Romania and Cuba, tne Soviet
party backed off indefinitely from
the proposed conference,. and in-
dicated obstacles might continue
for a long time.
Nationala. Communist parties,
such as Romania, fear that any
Soviet-led conference, although
billed as a unity meeting, would
be. designed to force them to
choose sides in the Moscow-Pek-
ing dispute.
The next effect of the confer-
ence, these parties say, would be
to expel China's Mao Tse-tung
group from the world Communist
movement.
The Russians strongly plugged'
their conference idea last Novem-
ber but began backing away from
it in December with an acknowl-
edgement that it "should be well
prepared by mutual consultations
among parties."
The Soviet party backed away
even further yesterday by em-
phasizing the need first "to solve
problems involved in the convoca-
tion of this meeting."
The further backing away came
in a communique on secret talks
here between Soviet party leader
Leonid I. Brezhnev and Luigi Lon-
go, head of the Italian Communist
party.
The Italian Communists have
insisted in the past that any world
conference must be preceded by
preparation to eliminate contro-
versy at the meeting itself. The
Soviet stand yesterday seemed to
agree.
.._........ .
d)
BLOOD WEDDING
(Bodas de Sangre)
DRAMA By FEDERICO GARCIA LORCA
XAVIER NICHOLAS
exciting young poet from Tuskegee
Institute
discusses
"A Poet's Eye
View of Modern Poetry."
at the Ark tonight
GUILD HOUSE
. 802 Monroe
FRIDAY, March 31. Noon Luncheon-25c
Prof. Edward Stasheff, Dept. of Speech:
"MASS COMMUNICATIONS"
(A Series)
FRIDAY, EVEN ING-6:00 P.M.
AMERICAN DINNER
(For Reservations Call-662-5189)
After Dinner:
PATIA ROSENBERG
will sing Japanese and other songs
"STUDENTS, VOTE IN THE CITY ELECTIONS!"
1421 Hill St.
9:00 P.M.
11
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Presents
ON STAGE
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