1, 1962

THE MICHIGAN DAILY

1'lRGa THE MICHIGAN DAILY


Steelworkers, Companies

tApprove

Labor

Contract)

-AP Wirephoto
OKAYS STEEL PACT-David J. McDonald, president of the United Steelworkers Union, second
from left, calls to order a meeting of the USW executive board in Pittsburgh yesterday in which

the board approved a new two-year basic steel contract.

11

The Student Concerns Committee
of
STUDENT GOVERNMENT COUNCIL
announces
The 17th Annual
Encampment for Citizenship
July 1-August 11, 1962
in New York, California, or Puerto Rico
PURPOSES: To promote a deeper understanding of the varied peoples
who make up America and a deeper appreciation of the problems
they face.
To inspire the individual student, as a result of his personal and
educational experiences, to enter more actively and purposefully.
into the mainstream of his own community's life.
* open to any person between ages 18 and 23.
* areas of study: history and meaning of democracy, human resources,
natural resources and the economic system, international affairs.
" lectures, discussion groups, field trips, workshops, forums, recreation.
" Applications and information regarding the encampment, expenses,
and scholarships are available at the SGC offiices, Student Activities
Bldg. or by writing: Encampment for Citizenship, 2 West 64th
Street, New York. 23, New York.
MUSIC LOVERS!.
Sensationa L
Record Sale
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MAJOR LABELS-TOP ARTISTS
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While they last at
FOL.LETT'S

Diplomats
Hail Start
At Geneva
GENEVA ()-Diplomatic sourc-j
es said yesterday the 17-nation
disarmament conference has got-
ten off to the fastest start of any
international negotiation of this
type since World War H.
Language used by the delegates
r us been proper-even courtly.
Juring the first three weeks of
the talks the delegates have ex-
pressed differing views, but for the
most part have avoided bitter ar-
guments of the cold war.
Yet many westerners expect the
storm will break soon. The basic
procedural problems remain to be
worked out. Beyond these lies the
peaks of the real issues.
Preliminary skirmishing on pro-
cedure has revealed outlines of the
old U.S.- Soviet disagreement on'
the key problem of international
inspection and verification.
The Western powers suspect
that the sweeping Soviet proposal
for complete disarmament in four
years cloaks stubborn Kremlin re-
sistance to any international po-
licing arrangements to guarantee
that a treaty is enforced.
In the related field of suspen-
sion-of nuclear weapons tests, this
same Soviet attitude on controls
thas blocked the conclusion of a
treaty despite negotiations ex-
tending back 3% years.
Western diplomats said they
found it discouraging that the
conference has made no dent yet
on the nuclear test ban problem.
World News
Roundup
By The Associated Press
LONDON-Soviet - Cuban talks
on further trade expansion opened
in Moscow yesterday, Tass report-
ed.
* * *
BERLIN-Soviet Marshal Ivan
S. Konev cracked down yesterday
on the freedom of United States
military observers to move about
in Soviet-occupied East Germany,
where an attack on Western Eu-
rope could be mounted.
* * *
BOGOTA-Colombia and Guat-
emala agreed yesterday to renew
diplomatic relations after a two-
year break. Problems arising from
expropriation by Guatemala of the
Guatemala branch of the Peoples
Bank of Colombia caused the dip-
lomatic rupture.
* * *
BURBANK-Satellites capable
of directing U.S. retaliation against
nuclear attack may be operation-
al in 10 years, a Lockheed Air-
craft Corp. official said yesterday.
Reporting on a company-funded
study, chief spacecraft engineer
R. A. Bailey said such satellites
would be able to take charge if
earth command centers were de-
stroyed and order the launching of
missiles from submarines and land
bases.

Negotiations
Sets Record
For Parleys
Workers To Receive
New Fringe Benefits
PITTSBURGH (IP)-The Steel-
workers Union and industry ap-
proved yesterday a new two-year
labor contract granting an esti-
mated 10 cents an hour in fringe
benefits. There was no wage hike
in the first year of the pact.
The new agreements cover a
two-year span .and are reopenable
in respect to wage rates, pensions,
insurance, and certain contractual
items upon 90 days notice served
after April 30, 1963.
Wide Range
The agreements provide for a
wide range of new benefits in the
fields of seniority, pensions, vaca-
tions and supplemental unemploy-
ment benefits. They also include a
novel "savings and vacation plan"
designed to open up new Job op-
portunities by giving added vaca-
tions to employes and encouraging
retirement of longer-service em-
ployes.
Conrad Cooper, chief negotiator
for the companies, said:
"While the terms of settlement
cannot be said to fall wholly with-
in the limits of anticipated gains
in productive efficiency, they do
represent real progress in the de-
velopment of voluntary collective
bargaining in the steel industry.
"For the first time since 1954 we
have reached an agreement with-
out a strike; and the outstanding
characteristic of the entire nego-,
tiation has been the spirit of co-
operation and understanding
which has been evidenced by the
bargaining teams on both sides.
Expressed Wish
The contract, reached three
months ahead of the June 30th
expiration date, meets the admin-
istration's expressed wish for an
early settlement. It is the earliest
contract ever signed in the steel
industry.
President John F. Kennedy said
the pact indicated "industrial
statesmanship of the highest or-
der."
"The spirit of cooperation and
understanding evidenced by the
bargaining teams on both sides,"
was cited by a steel industry state-
ment.

Asks action
On Problem
Of Jobless
WASHINGTON {P) - President
John F. Kennedy disclosed yester-
day he will ask Congress for an-
other stopgap extension of unem- i
ployment benefits pending action
on permanent legislation to re-
shape the whole program.
The White House did not say,
what the chief executive will ask,
in the way of temporary relief for
jobless workers whose benefit per-
iods run out. Nor did the an-
nouncement say when the request
will go to Congress but indications
are that it will be no later than
next week.
The temporary 13-week exten-
sion voted last year expired yester-
day and the stopgap request will
be for extensions retroactive to
today.
Kennedy made it clear he is not
abandoning the broad program of
permanent changes he requested
on March 12 but feels action will
have to be put over to next year.
He put it this way:
"It is becoming increasingly ap-
parent, however, that the commit-
tees before whom this legislation
is pending have such heavy sched-
ules that they will be unable this
year to give this legislation the
consideration it deserves."
In his March 12 letter to Con-
gress, Kennedy estimated 150,000
of the long-term jobless would ex-
haust regular benefits in April.
Tax Revision
Under Fire
WASHINGTON (A - The key
business-modernizing provision of
President' John F. Kennedy's tax
revision bill appeared yesterday to
be in trouble from two sides in the
Senate Finance Committee.
Republicans said they consider
the tax credit plan ineffective and
unduly complicated. They pledged
to try to find a substitute more to
the liking of business.
Committee Democrats who'nor-
mally support the President let it
be known they look on the provi-
sion as unduly generous to busi-
ness. They plan to try to knock
it out or at least scale down the
benefits.
The provision offers businesses
a $1.2-billion annual tax cut as an
incentive to buy new machinery or
equipment and thus improve pro-
ductivity. Up to 7 per cent of the
amount of such investment could
be deducted directly from the tax
bill.
C Many of the more than 200 wit-
nesses who have asked to be heard
at finance committee hearings on
the bill want to testify on this fea-
ture. The hearings begin Monday.

Thayer Sees Compromise

(Continued from Page 1)
Passage of the Beadle motion
will bring Gov. John B. Swainson's
tax program to the floor.
The governor's tax package, at
present, includes a flat-rate 3.5
per cent personal and corporate
income tax, repeal of the Business
Activities Tax, exemptions on the
sales tax and property tax and a
provision to return a percentage
of the income tax back to local
anits. This would represent a net
gain of $71 million in revenue.
Say US Failed
In Cuban .Plan
HAVANA M)-The mass trial of
1,179 Cubans captured in last
April's futile invasion has been told
that faulty intelligence, presum-
ably by the United States, led to
disaster.
Supporting landings never came
off, promised air cover never show-
ed up, and invading forces were
told they were hitting an unin-
habited beach only to run into
troops and tanks, said a letter in-
troduced at the military trials in
Principe Prison.
The trial is in recess until Mon-
day, but Havana newspapers car-
ried the letter, purportedly, writ-
ten to his parents in Miami by
Jose Perez San Roman.
San Roman commanded a bat-
talion last April 17 when the in-
vaders hit the beaches of the Bay
of Pigs on Cuba's southern coast.

The coalition will amend the House, where the vote could go
Swainson tax program to include either way.
compromise tax measures the gov- Thayer said the purpose of pass-
ernor has worked out with De- ing the nuisance levies, which will
troit's Mayor Jerome B. Cavan- be in force for a limited period
augh. only, is to raise revenue to pro-
Cavanaugh has wanted either a vide for additional spending until
city or state income tax to raise the income tax begins to produce
more revenue for Detroit's sagging revenue. This cannot occur until
treasury, and he has locked horns next year.
with legislators over just what Just last week, Sen. Clyde H.
should be done. Geerlings (R-Holland), the chair-
But once the governor's tax man of the taxation committee
package is on the Senate floor, the who had tried to put a sign on
coalition will move to delay action the door of his committee room
on its passage. saying "No income tax shall pass
During the delay, the coalition this door," challenged the moder-
wing e ython onnuisae axes.ates to "count their votes." Geer-
will take action on nuisance taxes. lings said no income tax would
The package presently in the pass because 18 votes just weren't
Senate will be killed. This was in- available.
tended to yield a total of $59 mil- Provides List
lion in revenue, with increases in Thayer provided the list last
the cigarette, liquor and beer taxes night.
and a four per cent usage tax on In addition to the 10 Democrats
telephones and telegraphs. These and himself, Thayer expects sup-
as are not as easily increasable port of five other GOP moderates
as an income levy-which is the -Nichols, Farrell E. Roberts of
basis for both the fears and the Pontiac, John W. Fitzgerald of
support for that kind of tax. Grand Ledge, William C. Millikin
At the same time, the House of Traverse City and John H.
Taxation Committee, -headed by Stahlin of Belding. When Beadle
Rep. Rollo G. Conlin (R-Tipton), and Hilbert are added, the coali-
a long-time flat rate income tax tion totals 18 votes.
advocate, will introduce another Earlier last week, it was thought
but smaller nuisance tax package. that the coalition could not mus-
Thayer has met with Conlin and ter the 18 votes because Sen.
expects that the package will clear Thomas F. Schweigert (R-Petos-
the House and go to the Senate. key), who had been identified as
There, the coalition will pass- a moderate, was wavering.
both the broad tax program and And Beadle had told Thayer
the nuisance levies. The broad pro- that he would support the coali-
gram, centered around the income tion only if there were 17 other
tax, will have to go back to the votes which could be listed.

ATTENTION:
Democrats, Republicans, Independents
STUDENTS FOR ROMNEY
MASS MEETING
Speaker: MONDAY, April 2
DR. JOHN DEMPSEY 4:15 P.M.
State Chairman--Romney volunteers Union - Room 3-S
Former News Director-WJBK-TV


Algeria Undergoes Terror
Seven Killed by OAS Viol
ALGIERS )-Seven persons, including a European v
and 11 injured in terrorist attacks by the Secret Army Or
in this city yesterday.
Six persons were reported killed by terrorists elsewhere
Secret Army gunmen shot down several Moslem pede
random in the downtown business section of Algiers.
But life was back to what is considered normal thes
Algeria's largest city. Stores and restaurants were open,-trE
the streets and the occasional shootings went by virtually
Casualty Tolls
A police spokesman called yesterday's casualty toll "co
ly light." Fourteen persons were reported killed in Algiers
Some of the Secret Army's targets were Frenchmen frc
politan France in government service. Gerald L'Hote, newl:
ed chief government spokesman in
the city, was gravely injured by a
terrorist.
Submachine Guns
A Secret Army unit armed with
submachine guns stole 240,000
francs ($48,000) in Algerian cur-
rency from the offices of the
French corporation holding the *Junior CLASS
Sahara oil concession.
It was the third straight day of
large scale robberies by the secret
army. The subversive organization
was believed to need large amounts FOR TI
of cash to pay mercenaries and
foreign legion deserters in its
ranks.
As a result of the long succession
of secret army roberries the
French government has ruled that
Algerian currency is no longer
valid in France. Banks in Oran,
hard hit by robberies last week,
finally reopened today, but still
were short of cash.
Late in the evening, Algiers was
rocked by a half dozen plastic
bomb explosions-all blamed by
authorities on the Secret Army.
One shattered the downtown office
of Air France.

STUDENT
GOVERNMENT,
COUNCIL
announces...
PETITION ING for. a
VACANT COUNCIL SEAT
Term expires November, 1962
petitions are available
from the Administrative Secretary
1546 Student Activities Building
Petitions must be returned by
Friday, April 6, 1962 at 4 P.M.
For further information
contact STEVEN STOCKMEYER. President
NO 3-4183 or 663-0553

l I

...

State at North University

HE FIRST TIME...


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