8._16
THE MICHIGAN DAILY
8, 194TE IHG_ AL
soldwater's Support Ebbs in South
MAY SPARK WAGE DEMANDS:
Unions Eye Growing Corporate Profits
BIRMINGHAM, Ala. - Sen.
Barry Goldwater is slipping in
the South.
The Arizona conservative, whose
bid for the White House depends
on support from this conservative
region, has lost favor because of
both his campaign statements and
the accession of Lyndon B. John-
son to the presidency, the Wall
Street Journal reports.
"The South is crying for some-
one conservative to vote for," a
Nashville businesman, recently
departed from the Goldwater
camp, asserts. "But Goldwater'
lately has caught foot-in-mouth
disease. He's against the gradu-
ated income tax. He'd get us into
war over Cuba . He says don't re-
duce taxes until the budget is
balanced and he's spouting off
about the nuclear test ban."
And Goldwater's proposal to
turn the Tennessee Valley Au-
thority over to private Abusiness
"is like advocating molesting' chil-
dren in this stater" another Ten-
nessee Republican declares.
LBJ Popular
Southern-born Johnson, with a
more conservative image than the
late 'President John F. Kennedy,
fs considered 'a much more for-
Idable opponent in the South
than Kennedy. Because he did not
draft a .civil-rights bill, and be-
cause of his reduced federal bud-
get, Johnson may be able to carry
many states which would have re-
jected Kennedy.
A Mississippi executive adds,
"Johnson is going to .have to kick
the South around pretty badly be-
fore we forget that he's the first
World News
Roundup
By The Associated Press
BERLIN-A United States Army
helicopter flew without incident
over parts of Communist East Ber-
lin yesterday and the Soviets made
an oral protest in the Berlin four-
power air safety center, authori-
tative sources said.,
-* *
NAIROBI - Kenya Prime Min-
ister Jomo Kenyatta said yester-
day 100 Afrikan soldiers will be
court-ifartialed for a mutiny in
Kenya's army two weeks ago.
* * *
DAR. ES SALAAM - British
marines have disarmed a "freedom
army" of about 400 men training
for guerrilla war against Portu-
guese rule in yMozambique, offi-
cials reported yesterday.
* * *
WASHINGTON - Atty. Gen.
- Robert F. Kennedy said yesterday
"the role of the United States is
complete" in the Malaysian dis-
pute, and it is now up to the coun-
tries involved to resolve their dif-
ferences.
* * *
NEW YORK - Stock market
averages' posted the best 1964
gains to date yesterday in the
week's most active trading. Dow-
Joies, averages were 65 stocks up
1.44, 30 industrials up 5.18, 20 rails
up 1.04 and 15 utilities up 0.7.
President in 100 years with a
Southern drawl."
Finally, Negroes-those able and
willing totregister and vote-are
expected to be. virtually unani-
mous in supporting Johnson.
Still Hope
However, Goldwater supporters
are not ready to give up.
They point out, first ofall, that
Johnson has 10 more months in
office, during which he may well
alienate the South. The chairman
of South Carolina's GOP observes
that Johnson may "prove he has
the same qualities so resented by
Southerners in Kennedy."
But the dominant fact for
Southern Republicans is that,
whatever their disagreements with
Goldwater,. there's no other GOP
hopeful who could possibly match
his popularity in the South. Form-
er Vice-President Richard M. Nix-
on is frequently mentioned, but
"Goldwater is our top selection
and he really is no second choice,"
the South Carolina Republican
chairman says.
By SAM DAWSON
Associated Press News Analyst
NEW YORK-The big rise in
profits. being announced almost
daily by one or more leading cor-
porations is being watched as
closely by labor unions as it is
by shareowners and the stock
market.
Business earnings as a whole set
a record in 1963. But it's the bet-
ter than average gains in some
industries and by many top firms
that is catching the eye of labor
just now.
General Motors made $1.6 bil-
lion last year and has a labor
contract to negotiate this summer.
Other corporations announcing
profits in excess of $1 billion each
are A T & T and Jersey Standard
Oil.
Replace Contracts
More than 100 contracts cov-
ering at least 2 million workers
expire this year and must be re-
placed. Almost as many more
workers have contracts that can
OPPONENTS-President Lyndon B. Johnson's relatively high
popularity in his native South is proving a serious obstacle to
Sen. Barry Goldwater's campaign in that conservative area.
Without the South, Goldwater may find the road to the GOP
Presidential nomination a long one.
be reopened on demand for wage
negotiations. Another 1.5 million
automatically get wage increases
this year under terms of existing
contracts.
In the last few years most cor-
porations were complaining of
diminishing profit margins-some
still do-and concentrating on cost
cutting and increased mechaniza-
tion to fight the trend.
In the light of that, labor's
stress has been less on sizable
wage scale increases than on
fringe benefits and, last year in
particular, on Job security. The
bogeyhas been automation and
the fear of a shrinking number
of jobs and of the outdating of
many old skills.
Cost-Cutting
But mechanization and cost-
cutting, along with rising sales and
production, are making themselves
felt now. The factors have com-
bined to produce the results show-
ing up now in the steady flow of
announcements of rising profits.
This was especially true of the fin-
al months of 1963, which pushed'
many big corporations. to record
high earnings for the year.
Some of the reported profit
gains have been tempered by book-
keeping. The Treasury relaxed the
rules on depreciation, so that
many companies last year could'
write off more wear and tear be-
fore reporting gross earnings. This
cut both their federal income tax
bills and their reported net in-
come.
Some corporations took advan-
tage of a seven per cent tax cred-
it for new equipment bought in
1963, as allowed in a bill passed
by Congress.
Tax Cut
If Congress also passes the tax
cut bill now before the Senate,
the effect on 1964 profits will be
mixed. Rates of corporate income
taxes will be cut, making for a
neat gain in net profits. But the
dates of payment for taxes will
be advanced, so that many cor-
porations will be paying out mon-
ey sooner than in previous years
and this will show up in 1964
bookkeeping.
But the tax cut bill also is ex-
pected to boom the economy in
general and this could mean more
business, and presumably more
profits.
Along with an eye on getting
more of the corporate money pie
in the form of higher wage se
labor leaders also are talking
asking for higher pay for o1
time. The chief argument is t
this would make overtime less
tractive to corporate managenr
and open up more jobs for
unemployed.
High Profits
But in arguing for more pay
overtime, the unions also are li
ly to point to high profits as u
ting companies in the positior
pay it.
President Lyndon" B. John
has warned against setting o1
new spiral of rising wages
prices. He has urged moderat
on union leaders. He has even.s
gested that higher profits mi
better be tempered by lower pr
to the consumer.
I,
Panama May Face Further Upheavals.
.9Aa l eai3
Easter Vacation by Air:
By ROBERT BERRELLEZ
Associated Press Staff Writer
PANAMA-A still beardless na-
tionalistic upheaval is stirring here
in search, of a leader.
When the trailblazer is found-
there are no visible candidates on
the horizon-Washington's pres-
ent dispute with Panama over the
Canal Zone may resemble a pre-
cinct political row by comparison.
To some with experience here
and inHavana, Panama's politi-
cal atmosphere seems charged with
the spirit and passions of the Cub-
an revolution in its pre-Marxist
image.
This is partly because in many
national characteristics Panama is
a startling miniature of Cuba. But
far more significant is the exist-
ence in this tiny sliver of a coun-
try of virtually identical conditions
that fueled Fidel Castro's move-
ment.
Contrasts
There are the ceaseless tides of
quick laughter and lightning hate,
the gaping moat of indifference,
%nd resentment separating the tiny
enclave of a ruling elite from the
legion of poor and a burgeoning
middle class throbbing with the
usual social growing pains-anger,
bitterness, frustration, despair and
some hope.'
"With the' physical creation' of
the Canal Zone and its nearly anti-
septic neatness, mechanical suffi-
ciency and abundance, the United
States opened up a display window
through which the Panamanians
could measure inferiority and feed
their resentments.
For a half a century all this
went into the shaping of a "grin-
gophobia" of a virulence that
matches, and often surpasses, Cas-
tro's blackest moods.
Nationalism
This has nourished, in turn,, a
fierce nationalism, the depth,
range and capability of which were
sharply demonstrated last month
in the bloody rioting over a
flag incident in the United States-
controlled zone.
Among students of the local
scene, there Is an understandable
reluctance, therefore, to treat the
Canal Zone clash as just a spon-
taneous, isolated incident. There is
much to suggest the existence of
at least the outline of a precon-
ceived strategy.
There is fertile ground for spec-
ulation that Castrolte Caribbean
strategists, after their debacle in
Venezuela's December elections,
decided to move shop to Panama.
If they were not in the middle
of things in the beginning of the
flag incident that left 27 dead and
250 hurt, Panama's leftist extrem-
ists moved in soon afterward. Nu-
merically, the Castroites and
Marxists hereare not impressive.
The most reliable estimates place
their strength at about 600 mili-
tants and a considerably larger
following of sympathizers. But they
are concentrated in the usual stra -
tegic spots; the student federa-
tions, some labor unions and
among working newspapermen.
Lacks Martyrs
The Panama University student
leadership still lacks the martyr-
hero qualities to push their influ-
ences effectively beyond the uni-
versity's boundaries. But the po-
tential is there. Control is in the
hands of four young men who have
amply demonstrated their skills
since the crisis broke. The quartet
-Cesar Carrasquillo, Adolfo Ahu-
mada, Eligio Salas and Victor Avi-
la--gives every sign of having cut
its oratorical teeth in Havana.
They have all Castro's speech
mannerisms down pat, from boom-
ing bombast to soft irony, com-
plete with the sewing-machine
arm and finger gestures.
Still, among the majority of
Panamanians, including influen-
tial and responsible citizens, there
is a tendency to dismiss the influ-
ence of Castroites and Marxists in
the present situation. Some scold:
"Don't confuse our nationalism
with Communism."
There are others, however, who
are beginning to exhibit some con-
cern about where nationalism is
headed.
Concerned Lawyer
One of these is Eloy Benedetti,
legal counsel for the foreign min-
istry and a member of the national
council that advises the president
on foreign affairs. Benedetti, a
graduate of Colorado University,,
has been called a Castroite here
and abroad.
"Everyone is behind the presi-
detti said. "But there is always
that danger that our nationalism
might be swallowed up by Castro-
ism, the worst thing that ever hap-
pened to America."
The simmering unrest is an ex-
plosive element that could open
the floodgates to new violence if
Panama-United States peace ef-
forts fail.
From this could emerge the lead-
er Panama's nationalistic upsurge
is seeking.
Detroit/Miami round
Detroit/San Juan ...
New York/Bermuda
New York/San Juan
Miami/San Juan ...
Miami/Nassau ....
Miami/Kingston and
Group flight
New York/Hawaii
trip ...109.00
.. . 179.00
. 0. . .100.
...105.00
.. . 92.50
... 38.00
Montego 69.00
.. . 395.80
A nice remembrance
for Valentine's Day
would be a
small Jensen pin,
or a smal
piece of Wedgwood
JOHN B. LEi
Phone NO 8-6779 * 601 East Liberty F
.~ ~........*r%;...
Tour: New York/San Juan ..158.00
includes all air, hotels, sightseeing, and
other features.
Summer 1964
(Ask about new fares)
New York/London: 21 day . .300.00
excursion
Economy fares: off season . .399.00
on season . . ... .... 434.50
Europe tours $12.00 per day, com-
pletely inclusive.
-Student tours
-Art tours
-Music tours
Coal
CONLIN TRAVEL"BUREAU, Inc.
sw+ inM4y t ,1{Now
dent on the canal issues,"
Bene-
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?u tt i
pr. ;}.
..
"Why Is Christianity Relevant
at the U. of M.?"
Ask Dr. Billy Graham and others in a
question and answer panel discussion.
TUES., Feb. 11 at 3:00
THURS., Feb. 13 at 4:10
at LYDIA MENDELSSOHN THEATER
Sponsored by the Michigan Christian Fellowship
..
."*.*.=:
:V&,*..,i'
All
NO 215587
tickets sold at offical
airline prices.
i.
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\SA BATf H
Join
The Daily
9@@
ON,
ST. ANDREWS CHURCH and the
EPISCOPAL STUDENT
FOUNDATION
306 North Division
Phone NO 2-4097
SUNDAY-
8:00 A.M. Holy Communion.
9:00 A.M. Holy Communion and Sermon
Breakfast at Canterbury House
11:00 A.M. Morning Prayer and Sermon.
7:00 P.M. Evening Prayer and commentary.
TUESDAY-
9:15 A.M. Holy Communion.
WEDNESDAY-
7:00 A.M. Holy Communion.
FRIDAY-
12:10 P.M. Holy Communion.
'! H E
FIRST UNITARIAN CHURCH
1917 Washtenaw Ave.
Rev. Erwin A. Goede, Minister
Church School and Services-9:30 a.m. and
11:00 a.m.
Sermon-"Galileo: The Courage to be Cur-
ious."
U-M Student Group-7:30 p.m. Bus service
available.
Sunday Evening Forum, 8:00 p.m.--Mr. Karl
Kramer will speak on "Do You Read Me?",
third in a series on Youth In Our Society.
THE CHURCH OF CHRIST
W. Stadium at Edgewood
Across from Ann Arbor High
John G. Makin, Minister
SUNDAY
10:00 A.M. Bible School
11:00 A.M. Regular Worship
6:00 P.M. Evening Worship
WEDNESDAY
7:30 P.M. Bible Study
Transportation furnished for all services--
Call NO 2-2756
ZION LUTHERAN CHURCH
1501 West Liberty Street
Ralph B. Piper, David Bracklein,
Fred Holtfreter, Pastors
Wnzi Sr- A _3. nd r1 1:0.n ,m.
PACKARD ROAD BAPTIST CHURCH
Meeting in the Ann Arbor Y.M.-Y.W.CA
at 5th and Williams,
Rev. Jesse Northweather, Pastor
Phone 668-9894
SUNDAY-
9:45 a.m. Sunday School.
11:00 a.m. Morning Worship.
6:30 p.m. Training Union.
7:30 p.m. Evening Worship.
BAPTIST STUDENT UNION
Meeting in Room 528D
in basement of S.A.B.
Wednesday--7:30 p.m. Devotions.
LUTHERAN STUDENT CENTER
AND CHAPEL
(National Lutheran Council) I
Hill Street at South Forest Avenue
Dr. Henry O. Yoder, Pastor.
SUNDAY
9:30 a m. Worship Service.
11:00 a.m. Worship Service & Communion.
7:00 p.m. Speaker: Mr. Elwood Lohela, City
Editor of The Ann Arbor News.
ASH WEDNESDAY-7:15 p.m. Presentation of
the Basic Christian Beliefs.
FIRST PRESBYTERIAN CHURCH.
1432 Washtenaw Ave.
NO 2-4466j
Ministers: Ernest T. Campbell, Malcolm
Brown, Virgil Janssen.
SUNDAY
Worship at 9:00 and 10:30 A.M. and 12 Noon.
Presbyterian Campus Center located at the
Church.
Staff: Jack Borckordt and Patricia Pickett
Stoneburner.
41;
WESLEY FOUNDATION'AND
FIRST METHODIST CHURCH
State and Huron Streets
663-5560
Minister-Hoover Rupert
Campus Minister-Eugene Ransom
Associate Campus Minister-Jean Robe
SUNDAY
Morning Worship at 9:00 and 11:15 a.m.
"How Do YOU Spell God?"-Dr. Rupert.
10:15 a.m.-Student Seminar-Major Reli-
gions of the World: Judaism. Pine Room.
7:00 p.m.-Worship and Program-Christian
Unity. Wesley Lounge.
MONDAY t
7:00 p.m.-Cell Group No. 1-Gene Ran-
som's office.
TUESDAY
7:00 p.m.-Study Group: Religious Issues in
Drama, playreadying. Jean Robe's apart-
ment.
8:30-11:00 p.m.-Open House-Jean Robe's
apartment.
WEDNESDAY
7:00 a.m.-Holy Communion, Chapel, follow-
ed by breakfast, Pine Room.
5:10 p.m.-Holy Communion, Chapel.
6:00 p.m.-Wesley Grads-Supper and Pro-
gram. Speaker, Ramsey Fowler, "The Cru-
cifixion Theme in English Poetry," followed
by Ash Wednesday Communion in sanc-
tuary.
7:15 p.m.-Cell Group No. 2-Gene Ran-
som's office.
THURSDAY
7:00 p.m.-Class: "Christian Dating, Court-
ship and Marriage," Green Room.
11
And See TheWorld!
stop in, any afternoon
CONGREGATIONAL CHURCH
Corner State and William
Dr. Fred E. Luchs, Minister
SERVICES-9:30 and 11:15 a.m. "How To
Live," Dr. Fred E. Luchs.
BIBLE FORUM-10:30-1 1:00 a.m. Dr. Robert
Geake.
CHURCH SCHOOL - Ages crib through 9th
grade, 9:30 and 11:15 a.m.
STUDENT GUILD, 802 Monroe, telephone 2-
5189.
UNIVERSITY LUTHERAN CHAPEL
AND STUDENT CENTER
(The Lutheran Church-Missouri Synod)
1511 Woshtenaw Avenue
Alfred T. Scheips, Pastor
John Koenig, Vicar
Sunday services at 9:45 and 11:15 a.m. Ser-
mon: "Answering an Agnostic."
Sunday evening supper at 6:00.
Gamma Delta Program at 6:45 p.m. Dr. Her-
man Jacobs for World University Service.
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