second front page
NEWS PHONE: 764-0552
BUSINESS PHONE: 764-0554
Tuesday, June 10, 1969 Ann Arbor, Michigan Page Three
r .. ._ _
by The Associated Press and College Press Service
EFFORTS AT ECONOMIC BRAKING appear to be taking,
effect, a government official said yesterday.
Job growth slowed in May while uhemployment held steady at
a low level, the Labor Department's Bureau of Labor Statistics said.
May's total employment was up 200,000 from April, but this is, much
less than the usual April-May rise.
"We are seeing a continuation of an easing off of employment
growth," Howard Stambler, chief employment analyst said. He added
that this probably reflected an easing of the economy in line with
Nixon administration efforts to cool inflation.
RUMANIAN COMMUNIST PARTY LEADER Nicolae Ceau-
sescu yesterday condemned criticism of absentee Communist
China at the Moscow-oriented international Communist con-
Ceausescu warned that such attacks threaten the success of the
conference, attended by delegations from ,75 Communist parties and
billed as a "unity" meeting.
But he rejected the idea of walking out on the conference fol-
lowing hard criticism of Communist China by a number of delegates,
particularly Leonid I. Brezhnev.
"The leadership of our party decided.that we would continue to
participate in the conference in order to express our position on
the questions which have been touched upon," Ceausescu said.
He told the delegates the danger from imperialism should not
be exaggerated. He also said the drive for Communist unity should
not be a device for interfering in the domestic affairs of other Com-
* * * *
THE SENATE SELECT COMMITTEE on small business
opens hearings on the Small Business Administration (SBA)
today. A report on the SBA was released yesterday.
The report, commissioned by Republican members of the Senate
committee, is said to level sharp criticism at Republican appointed ad-
ministrator Hilary J. Sandoval Jr. The loan-granting agency is suf-
fering from a "management gap," according to the report.
The agency has been in the news recently on two fronts-first,
because of loans granted under , previous Democratic administrators
to firms controlled by a Mafia loan shark, and more recently, because
of the indictment of one of Sandoval's top aides.}
Court bars garnishment
of wages without--hearing
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Supreme Court ruled 7 to 1
yesterday that workers have a
right to a hearing before their
wages can be withheldto sat-
isfy finance companies.
The decision turns a new legal
corner in the closing days of the
Warren court. It expands the
Constitution's protection of pro-
perty- rights to wage earners fac-
ing garnishments at the hands
With the term in its last month,
the court announced several other
Among them was a 5-3 ruling
rejecting a black's claim that he
had the right to reject an induc-
tion order issued by an all-white
Also, an 8-0 ruling stipulated
that a man cannot be punished
for what he says unless his words
are designed to incite lawlessness.
The garnishment ruling pro-
bably will have the widest effect,
however. It will invalidate laws in
17 states and void a quarter-
million wage garnishments actions
now pending, said Jack Green-
berg,'director of the NAACP Legal
Defense and Educational Fund.
Under the Wisconsin law di-
rectly struck down, li a credi-
tor had to do to freeze part of a
debtor's wages was to have a
court clerk issue a summons. If
the worker sued later he had a
chance to win back what was tak-
en from him.
"But in the interim," Justice
William O. Douglas said, "the
wage earner is deprived of 'his
enjoyment of earned wages with-
out any opportunity to be heard
and to tender any defense he may
have, whether it be fraud' or oth-
The court also rejected claims
that blacks have a right to refuse
induction orders Issued by all-
white, or Virtually all-white,
The issue had been raised by
Cleveland L. Sellers Jr, 24, a
former program director for the
Student Nonviolent Coordinating
Committee, who claimed :draft
boards in South Carolina and
Georgia were powerless to induct
The majority made no comment
in deciding not t hear the case,
but Justice William 0. Douglas,
joined by Chief Justice Earl War-
ren and Justice Thurgood M a r -
shall, declared the issue was one
which the court should consider.
In his' dissent, Douglas n o t e d
that Sellers is from South Caro-
line and refused induction in At-
lanta in 1967.
"According to his uncontested
allegations," Douglas said, "South
Carolina is a state with 161 board
members, only one of whom is a
The free speech ruling cut down
Ohio's criminal syndicalism law.
Get it together at-
WHAT YOU WANT WE GOT
FROM LIVE ENTERTAINMENT
TO FOOD FOR THE SOUL.
S.A.B.-across from Ad. Bldg.
TWTh FRI SAT 12-12 am
9-1 am 9-3 am 12-3 am SUN
NINE AMERICAN ALLIES in the Asian Pacific Council
(ASPAC), stressed yesterday the need for "self-reliance" among
themselves instead of dependence on the great powers.
ASPAC is currently holding a three-day meeting at Kawana,
Japan. The members nations are Australia, Nationalist China, Japan,
Thailand, Philippines, Malaysia, New Zealand, South Korea and South,
The allies, five of which have troops in Vietnam, did not directly
refer to President Nixon's announcement of plans to withdraw 25,000
troops from South Vietnam. They are schedule'd to, discuss the war
later in the meeting.
JUDGE WILLIAM BEER yesterday, denied a motion for a
directed verdict of acquittal in the Algiers Motel trial.
A white policeman, Ronald August, is charged with the shotgun,
slaying of 19-year-old Aubrey Pollard on July 26, 1967.
Beer said he would instruct the jury that it must return a
verdict of either guilty of first-degree murder or acquittal, with no
alternative verdict permissable.
OPERATION APACHE SNOW, which was climaxed by a
bloody fight for Hamburger Hill that touched off hot congres-
sional debate, was declared over yesterday by U.S. Command.
End of the operation, which began May 10, was announced in
Saigon several hours after Presidents Nixon and Nguyen Van Thieu
announced at their Midway Island summit that 25,000 troops will
be pulled out of Vietnam.
HARVARD'S CHIEF FACULTY BODY voted overwhelmingly
yesterday to force 16 students to leave the university for their
roles in the takeover last April of the college administration
The Faculty of Arts and Sciences voted 342-29 to remove the
16 students, who included six seniors who were to have graduated
The faculty thus accepted the complete recommendations of a
committee of 10 faculty and five students for disciplinary action
against 135 students. Twenty students were suspended and the other
99 received "warnings."
Fleinig at Wisconsin
University President Robben W. Fleming spoke during commencement exercises held at the Uni-
versity of Wisconsin at Madison yesterday. He was awarded an honorary Doctor of Law degree during
the ceremonies., Fleming is a former Madison campus chancellor.
rate to 8.5
for Gilbert &- Sullivan Society's
"PAINT YOUR WAGON"
(Lerner and Loewe)
Today and Thursday, June 12
7:30-11:30-2528 Frieze Building
By The Associated Press
The cost of borrowing money
soared to a new high yesterday
when major banks across the
country increased their prime
lending rate to 8 12 per cent.
'An increase from the previous
7?2 per cent high had been ex-
pected by some in the banking
community, but the size of the in-
crease surprised many.
The immediate effect of the in-
crease in the prime rate-the in-
terest banks charge theirbiggest
and best customers-will be to
make it more costly for large cor-
porations to borrow.
Other rates, such as interest
STATE CAPITOL PROTEST
Picketers ask abortion reform
see without glasses
rates, to consumers, small busi-
nessmen and farmers are scaled
upward from the prime rate.
Some banks pledged in an-
nouncements yesterday that the
boost would not be passed on to,
Rep. Wright Patnian (D-Tex)
chairman of the House Banking
Committee, an opponent of the
hike, called for antitrust action
against the banks.
"This increase. coupled with
other high interest rates will
create chaos throughout the econ-
omy," he said.,
He urged Atty. Gen. John N.
Mitchell to invoke antitrust laws
"to prevent big banks from joining
in a conspiracy for a general in-
crease in the prime lending rates."
The increase "isvery likely the
straw that will break the camel's
back. There is, a limit, beyond
which the economy cannot go and
we have apparently reached that
tragic point . . ." he said.
In spite of statements by some
banks that the increase would not
affect mortgage loans, Rep. James
A.. Burke (D-Mass) said the in-
crease would disrupt the housing
"It's now impossible for a family
earning less than $12,000 a year, to
buy a home," he said.
The round of increases yester-
day began with Bankers Trust Co.
in New York, and other banks
across the nation followed suit.
The jump in bank interest rates
further clouded the outlook for ex-
tension of the income tax sur-
charge as the House Ways and
Means Committee, began discus-
sing the issue yesterday.
Secretary of the Treasury David
M. Kennedy, meeting with the
committee in closed session, argued
'U' professor to head
the increase in the prime de;
strates urgent need for fig
inflation by continuing the 11
cent extra tax.
But Rep. Hale Boggs (D
who presided over the session,
newsmen some members are E
ing the other way: "You've gc
interest increase already -
vote for the surtax?"
"Raising the prime interest
might be a serious blow to the
tax," anothercommittee mei
Rep. Burke, said in a separat
Nearly 25 women-most of
them students-from the Ann
Arbor area picketed on the steps
of the state capitol yesterday to
demand elimination of all crim-
inal penalties for abortion.
The StateLegislature is cur-
rently considering action on
proposals to liberalize the state's
more than 100-year old abortion
statutes, which allow termina-
tion of pregnancy only when
the life of the mother is in
Thead hoc group from Ann
Arbor passed out two handouts.
One repeated a statement which
group members said has been
signed by thousands of women
in the state.
The petition reads, "We, the
undersigned, believing that every
woman has the right to control
her own body and therefore has
the right to an abortion on de-
mand, petition the legislature of
the State of Michigan to repeal
all criminal abortion laws."
The second handout is a'fact
sheet on, abortion which urges
legislators fo vote yes on the
The proposals face a battle in
both houses. The Senate is ex-
pected to pass some form of
liberalization, but chances of
favorable action appear dimmer
in the House, where Speaker
William R y a n (D-Detroit),
a Catholic, opposes all abortion
Two bills are currently under
consideration. One, sponsored
by Sen. John McCauley (D-
Wyandotte), would'remove crim-
inal penalties for abortions per-
formed by licensed doctors in
The other, sponsored by Sen.
Gilbert Bursley, (R-Ann Arbor)
which leaders believe has the
best chance of passage, would
allow abortions when the mental
or physical health of-the mother
was endangered, when there
was "significant risk" that the
baby would be born seriously de-
formed, or in cases of rape or
The operation would be per-
formed only after consultation
with three doctors, one a psy-
chiatrist, where the mental
health of the mother was in-
By SHARON WEINER
Prof. Harold Jacobson of the
political science department has
been named chairman of a na-
tional tasks force on international
satellite communications. ,
The panel, established by the
Twentieth Century Fund, a private
Nlew York foundation, will make
recommendations on control, man-
agement, and uses of orbital
transmission stations. The panel is
composed of seven experts in econ-
omics, law, public policy, and
technology of satellite communica-
In establishing this panel, the
fund noted than an international
agreement would soon have to be
reached governing satellite com-
The International Telecommu-
nications Satellite consortium (In-
terslat), now operating the only
international communications sa-
ellite system in existence is seek-
ng agreement on a permanent,
system to replace the interim ar-
rangement adopted five years ago.
"We hope to make recomnen-
dations which will be useful for
government policy making and
stimulation of public debate on
these issues"' said Jacobson yes-
Hopefully, he added, the report
will have impact on both Interslat
and the International Telecom-
munications Union (ITU) which is
due to meet soon.
The panel will publish its re-
port and recommendations this
summer after meeting in New
York during the next two months.
In addition to Prof. Jacobson,
the members of tle task force are
Prof. Abram 'Ohayes of Harvard
Law School, former State Depart-
ment legal advisor; Jean D'arcy,
director of radio and visual serv-
ices for the United Nations; Prof.
Donald Dunn of Stanford Univer-
sity, an expert on longhaul com-
munications; Leland Johnson of
the RAND Corp., a former re-
search analyst of the federal task
force on communications policy;
Lionel Kestenbaus, a Washington
lawyer, and Prof. Edward Mc-
inneydirector of the McGill
University Space Law Center.
The task force is one of several
problem-solving groups the re-
search foundation is assembling to
cope with critical public issues.
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