Seventy-Second Year EDITED AND MANAGED BY STUDENTS OF THE UNIVERSITY OF MICHIGAN - __ UNDER AUTHORITY OF BOARD IN CONTROL OF STUDENT PUBLICATIONS "Where Opinions Are Free STUDENT PUBLICATIONS BLDG. * ANN ARBOR, MICH. * Phone NO 2-3241 Truth Will Prevail" Editorials printed in The Michigan Daily express the individual opinions of staff writers or the editors. This must be noted in all reprints. NEW YORK CITY: Teacher's Strike Threatens Schools )AY, APRIL 17, 1962 NIGHT EDITOR: MICHAML HARRAH University Quality Transcends Ideal of Low-Cost Education IHE REGENTS are meeting in private today to consider, among other things, the Uni- versity's cash problems. They will consider what alternatives the University will have for raising money, in case state funds are in- sufficient. If the University gets the $4-5 million in- crease it needs, especially for faculty salary increases, everything will be fine--for perhaps another year. But there doesn't seem to be much chance of the Legislature's meeting the University's needs this year, even if a series of new taxes are passed. The only other large source of cash for the University's general fund is tuition. If the state appropriation increase is anything less than $4 million, there will almost certainly be an increase in student fees for next year. Last year, after the Regents had asked for a 25 per cent increase in the University's appro- priation, the Legislature proceeded to raise it one-half of one per cent-$147,000. If the Legislature turns it back on the University's future again this year, the Regents will have to take action themselves.- ONE QUESTION that they will have to re- solve (which will probably be discussed today) is whether or not the quality of educa- tion at the University is more important than its low cost. For most Regents, the decision already seems to be for quality-as it probably should. Butdstudents should not have to do more than their share to provide quality. This is everyone's responsibility. The Legislature in the last several years has not carried its share of the load. Since 1957, tuition has gone up 10 per cent for Michigan residents and 60 REAPPORTIONMENT: Turnabout? E LIBERAL'crepe hangers in the Washing- ton press corps have been calling the Su- preme Court's March 26 legislative reappor ionment decision very bad news for the Re- mblican Party. The liberal argument, also oiced by Democratic officials, is that any orthcoming reapportionment will take seats away from Republicans representing rural areas such as some parts of the Midwestern farm, elt) and place them in urban areas tending to o Democratic. Conservatives widely agree that the Supreme lourt's decision to allow federal courts to niterfere in state election processes is wrong rom the standpoint of constitutional doctrine. hut from the practical political angle the lecision is seen as rather a boost for the GOP ,nd not the severe setback envisioned by lib- ral pundits. [HE REPUBLICAN newsletter, Battle Line, points out that the most under-represented reas in the nation . .. are the burgeoning uburban sections. Most of these areas tend to ote Republican. "In the South," points out attle Line, "the strong centers of Republican- am are in the big cities plus their suburban reas . . . And it is in the Democratic South here under-representation of the metropolitan reas is most pronounced." --HUMAN EVENTS per cent for out-of-state students. During the same period, appropriations have risen 14 per cent. THIS YEAR, the Regents must ask the people of Michigan to give their fair share of the University's support, if the Legislature doesn't. If there is a tuition raise, it should be applied equally to all students. The last time tuition went up-two years ago-in-state fees rose 12.5 per cent to $280 a year and out-of-state tuition climbed 25 per cent to $750. At that time, Regent Irene E. Murphy favor- ed a 34 per cent raise in out-of-state tuition and no increase for residents. Other Regents also favor a greater proportionate increase for non-residents. Even if all students' fees were raised by an equal per cent, this is not the same as raising them by an equal amount. Two years ago, in- state fees went up $30 and out-of-state tuition rose $150. The ratio of non-resident to resident fees has gone up consistently since 1949. In the same period, tuition has been raised six times. If the University must raise $2 million through tuition this year, each student's share would be decided by dividing the number of students into $2 million. Such an action might bring the problems of the University a little closer to those who seem to be ignoring them. r HE REGENTS might consider, however, in- creasing graduate student fees more than those for undergraduates. The University spends four times as much on each graduate as on each undergraduate, but in most cases their tuition is the same. Graduates, it can be said, aren't usually aided by their families and often have families of their own to support. But they also receive more loans and scholar- ships and have better opportunities for em- ployment. They are probably in a better position to pay fees than are undergraduates. Regent Allen R. Sorenson, who is probably alone among the Regents in favoring every possible compromise with quality before acting against the principle of low cost, has taken a position that is hard to criticize. But it cannot apply to, the University as it does to other public colleges in Michigan and other states. The University is unique in providing low- cost education with quality comparable to leading private universities. The Legislature is fond of comparing the University with other Big Ten colleges. But the University is in a league with Harvard, Yale, Princeton, Stan- ford and wealthy California. PEOPLE of the state and the Regents have the option, certainly, of dropping out of that league. And a university can get quite exhausted trying to keep pace with universities that charge twice as much per student and get five times as much money from their alumni. Only the state has the resources to maintain both low cost and high quality at the Univer- sity. Any forced departure from the low-cost principle should be a temporary one-until the Legislature opens its eyes. And this departure, in the form of a tuition increase, should at the same time correct in- equities in the cost of education for resident and non-resident students and graduates and undergraduates. By RICHARD KRAUT Daily Staff writer NEW YORK CITY'S teachers are ready to strike for higher wages this Tuesday. The strike was called by the United Federation of Teachers, the designated bargaining agent for all of New York's 40,000 class- room teachers. Its negotiations with the Board of Education have broken down, the Board tenta- tively offering to spend $27 mil- lion on the entire public school system, and the teachers demand- ing $53 million for salaries alone. * * * IF THE STRIKE is held on April 10 as planned, it will prob- ably have very serious effects on the school system. The Federation is a strong organization and its president, Charles Cogen, pre- dicts that 30,000 public school teachers will go on strike. "It would cripple the school sys- tem," Cogen said last 'Monday in speaking of the announced strike.' "There's no doubt about it." However, a walkout would vio- late the Condon-Waldin Act in New Yorc State, which forbids public employees to strike. The law was in fact broken on November 7, 1960, when the Federation called a strike which lasted one day.About 4,600 teachers, according to the, Board's estimates, (or about 10,000 according to the Federation's), participated. There was no attempt to enforce the Condon-Waldin law. * * . THE LEGALITY of the strike is not the only problem which makes an agreement between the Board of Education and the Federation difficult. Whereas management usually knows exactly what assets it has in order to meet the de- mands of labor, the Board has only a vague idea of how much money it can spend. The Board takes orders from the Mayor, and he must act with- in certain limits set in Albany. These limits were defined last week when the New York State Legislature voted an increase in state aid to education that would give the city $46,200,000 more for 1962-63. However, Mayor Wagner has not announced his budget al- locations for the city's depart- ments. He saysthe will do this in one or two days. The Federation does not like this secrecy. It insists that "there is no reason why the Board should not now be in a position . .. to begin bona fide negotiations on salaries." IN ORDER to detach himself from the secrecy, Dr. John T. Th eobald, Superintendent of Schools, has said that he would be glad to meet with the teachers once he knows how much money he has to work with. But Bogen wants the Board to play a more active role in the fight for more money. He de- manded that the Board "resign in a body" if it could not obtain the sum the teachers demand: $53 million. This sum is way above the Board's expectations of what it can offer. And not only is there a difference between the size of -he Board's expectations and the Fed- eration's demands, but there is also a difference in what the two sums would cover, THEOBALD'S tentative offer of $27 million includes all educational improvements. This would cover expenses for teachers' assistants, secretarial help, specialists in guidance, reading instruction and improved textbook supplies. By stressing the lump sum, the Board makes their offer to the teachers seem greater than it really is. On the other hand, the money demanded by the Federation }s for salaries alone. By isolating the issue of paychecks, the teachers make their demands seem smaller than they actually are. BUT THERE ARE other issues in this school strike issue besides legality, effectiveness and the dif- ferences between the two parties. A different question is whether or not such a strike would aid or hinder public education in New York City. According to the Federation, "It is better that your child lose days of schooling" now than to suffer through his entire educational ex- perience in a second-rate school system." This claim is backed up by ex- perts. Dr. Mark C. Schinnerer, consultant to the State Depart- ment of Education, has testified that drastic salary increases are essential to the improvement of the city's deteriorating schools. The suburbs, with ther higher sal- aries and better, working condi- tions, often lure qualified teachers away from the city. On the other hand, an educa- tor's belief in civil disobedience might not be appreciated by or- ganized labor in general. Contempt for lawV never contributed to a reputation of responsibility. But, the law was broken before without penalties. And it is most likely that Condon-Waldin Act will not be enforced in this case either, because such an action would forever embitter the teach- ers. IT IS NOT only a prohibitive law that must be considered here but also a promise. After the 1960 shrike, the Federation saidi that there would not be another teach- ers' strike in the city. And as April 10 draws closer and closer, talk of a strike becomes less hypothetical and more real. /VAW3M %%I (Par1 I MICHIGAN'S TAX PROBLEMS: Burden on Wrong Shoulders -NEIL COSSMAN Five Week Grades: E 'ARLY REPORTING of freshman scholastic progress is a good idea. Freshmen need to ow how well they're doing and they need know as soon as possible. The sooner a st year student is able to spot flaws in his idy habits and problems he is encountering specific courses, the easier it will be for n to correct these flaws and deliberately idy harder for more difficult courses. Also, early report of scholastic achievement rts a freshman's parents and his counselors, ose who should be able to help him in his ort to do well. These are the best reasons y five-week grades are given., However, many professors negate the sup- sed purpose of five-week reports by giving e same mark, usually C, to every freshman dent. Others give C's to most students, 'ing accurate grades only to those who are ling. What effect does it have on the student o is doing A work and gets a C when he covers that the student 'who sits next to n, who, got a D on the one bluebook, also s received a C? As one girl recently put it, onestly it's so discouraging and unfair." .t has been said that uniform grading of s good for students because it frightens them into really working. However, the above-average student is discouraged and invariably feels that he is the victim of an unfair system. The below average -student is given a false sense of success by the "gift." It is difficult to see how the system could benefit anyone but the actual C student, who would have been graded this anyway. WHY, THEN, do so many instructors prefer uniform grading to honest appraisal on five-week reports? Some have not yet, given examinations and seem to have no choice but to grade all "average." Others feel that work done in so short a time is not indicative of a student's achievement and it is better to mark uniformly than purport to estimate his pro- gress. Many professors, who haven't given more than one exam in the five-week period, view the system as a ludicruous ritual with no worth - at least the way it is presently set up. In short, faculty who give the same grades to all students must feel that an honest ap- praisal of scholastic achievement after such a short time is impossible or improbable. Which arrangement is more destructive to the student: the lack of discrimination in grading or the too-short time period which will result in marks often poorly arrived at? IDEALLY, the freshman pre-grading ought to notify the student, his parents and his counselor of his actual academic achievement. The grades should not come out so soon after the start of the semester that they are almost worthless. Perhaps the sanest solution is to extend the grading neriod to the eighth weer At this !- J By FRED RUSSELL KRAMER Daily Staff Writer (Fourth of a Series) IN CONSIDERING any restruc- turing of a state financial sys- tem it is necessary to consider who will bear the burden of the taxes. Often, two taxes which appear different actually taxdthe same source. Often it is said that the sales tax is actually a tax on per- sonal income. Both taxes, in ef- fect, are two sides of the same coin-you tax the person either coming or going. * * * RESEARCH into who bears the burden under different types of tax systems has been conducted by Prof. Richard A. Musgrave of the economics department. He notes that the tax burden may be passed on to people within the state or to people who live in other states. For instance, the effects of a state corporate income tax would be as follows: companies might pass part of the burden on to consumers in the form of in- creased prices. However, small companies which have to compete on the national market could not afford to raise prices. On the other hand, companies which set the national standard, such as automobile companies, can afford to raise their prices. Their market, however, is a national one and most of the tax burden would be taken up by car buyers in other states. * * * IN A CERTAIN sense, there is justice in this, since those Michi- gan companies whose products have national consumption can now make the people who enjoy the fruits of Michigan labor add' to the coffers of the state Legisla- ture. In this respect, Prof. Musgrave has shown that a corporate income tax whose burden is passed on to the profits will be borne by the 19 per cent of the people in the state. If the tax burden is shifted to the consumer, 33 per cent will be borne within Michigan. In other taxes the percentages are as follows: alcoholic beverages, 100 per cent; cigarettes, 9 per cent; personal income, 88 per cent; sales and use, 81 per cent; busi- ness activities, 74 per cent; pro- perty, 71 per cent; intangibles, 61 per cent; automotive, 66 per cent; and corporate franchise, 21 per cent. It is obvious, that a tax on corporate income would be a very advantageous tax if the in-state citizen is bearing too much of the tax burden. This tax would be very effective, therefore, in con- junction with a personal income tax. PROF. MUSGRAVE'S study also indicated that much of the state's financial burden is borne by the lower economic classes. All of the state's present taxes are regressive. The lowest eco- nomic classes pay five times as much saes ax n(when maanar THIS STATE, therefore, has failed. Not only is the tax system inequitable, but the tax mess has created a situation whereby the state can not afford to supply services to those who need them most. This is a double regressivity and Michigan is one of the few remaining states to maintain it. Often a state finds itself in a financial mess due to necessary spending in key areas. However, Michigan finds itself in dire finan- cial straits even though it has cut basic welfare and educational spending to the bone. * * THERE IS NO reason why a state of this size, one of the fastest growing states in the na- tion and one of the most pros- perous, should not be able to meet the basic requirements set out in the country's constitution -- namely, to provide for the health, education and welfare of the people. There is no reason that the University should lose faculty men just because of the state's shaky financial situation. There is no reason that the state schools for the blind and the deaf and the state rehabilitation institute should not be able to take all the people within their charge. A failure here, is a failure with a person's life. * * * ULTIMATELY,the solution must be a personal income tax, as the keystone in a completely revised taxation structure. A new system should create some degree of progressiveness which will alleviate the great fi- nancial burden placed on the lower economic classes and yet produce enough revenue to offset the re- duction of tax base and provide for the state's expanding needs. Controversy now ranges over whether this type of structure can be obtained through the use of a graduated personal tax or a tax based on a flat rate with adequate deductions. * * * REPEATEDLY, legislative tax- study commissions have emphasiz- ed that a graduated income tax is unconstitutional. The new con- stitutional convention, a suppos- edly non-partisan affair, has act- ed like the Legislature and refused to incorporate the necessary con- stitutional provisions for a grad- uated personal income tax into tne new document. However, on the state-wide level, a flat-rate personal income tax can provide relief for lower-middle income groups by allowing large personal exemptions. THE SYSTEM works as follows: Assume that we have a two per cent rate and an execption of $1,000. If you have an income of $1,000, you are exempt and pay no tax. The effective rate is zero. If you have an income of $2,000, you are taxable on $1,000. Your tax is $20 and your effective rate is one per cent. If you have an in- eomfl m n n on v mr. + a.hi n- be to bring in the same amount of money. However, by increasing or decreasing these two factors you can control the degree of progres- sion and establish an equitable tax base. * * * HERE IS a plan which is not only constitutional, but represents a feasible nucleus for a new state tax structure. If a tax of this type is initiated in conjunction with a corporate income tax designed to pass the tax burden on to citizens in other states through the use of partial exemptions for companies that are forced to compete on the national market, the state will never again have a financial crisis of the type it is now experiencing. Indeed, if the income tax is correctly designed, there should be no further need for a state retail sales and use tax., The Business Activities Tax could be removed in a similar manner. The property tax could be ex- tended to include automobiles. * * * THESE FEW STEPS represent, the core of a practical plan to solve the state's financial prob- lems. All can be legislated and acted upon by the people in the coming election. 'The enactment of a plan similar to this one would wipe out the so very permanent "temporary" measures that characterize the state tax structure. Unfortunately, this is a rational plan, and rational plans are no- toriously unsuccessful in the Mich- igan state Legislature. , There is no getting around the fact that the Legislature is made up of politicians whose interests are not those of the people. How- ever, if political pressure for a rational plan is put on the sena- tors and representatives they will suddenly appear to be very ra- tional. The future of the state, there- fore, lies in the hands of the Legislature. And nothing less than a concerted pressure on the part of the electorate will save this state from ultimate financial disaster LETTERS TO THE EDITOR: Next 'Challenge' Shows Promitse To the Editor: ISS GOLDEN'S observations in Tuesday's "Overtime" reflect some perception into the problems that Challenge faces and a genuine concern over the condition of the organization. However, that she did not consult any Challenge per- sonel before writing her article or before sending it to press has resulted in some misunderstand- ings that warrant correction and. clarification. To begin with, whereas Chal- lenge cannot boast of overwhelm- ing response, this semester's at- tendance cannot properly be diag- nosed as a symptom of "withering on the vine." True, there have been instances of scant participa- tion that have left the organizers less than satisfied. But Dr. Harold Taylor's audience of 300 and ,the 160 who attended "The University as a Community" discussion in- dicate something more than Miss' Golden's grim report. But accepting the fact that Chal- lenge has not enjoyed the popu- larity accorded Diag twist eon- tests and the like, the article's suggestions offer nothing new in the way of improvement. Most certainly, there is reason to re- vivify the structure and activities of Challenge, and Miss Golden un- doubtedly wants to',help. But, 'a person in every housing unit .. . is not an untried idea. The tre- mendous amount of energy and thought, which Ralph Kaplan has poured into Challenge, has as- suredly included attempts of that nature. Finally, this reader would like to acknowledge Miss Golden's fore- cast that next spring's "The Chal- lenge of Changing Morality" uill not "woo the campus away from the Undergrad on a steady basis." There is, after all, quite a bit of justification in regarding mid- terms and papers above any extra- curricular activity. But, whereas next year's plan- ners do not intend "enticement" with a theatrical sex ethics pro- gram, Challenge '62-'63 will oper- ate with considerable thought and preparation behind it, offering a fruitful examinnation of issues which have a great deal of rele-- vance to every student's searching concern. -Ron Newman,'63 Raid ... To the Editor: THE "well trained guerrilla units" which were dispatched from Helen Newberry Residence on Monday evening were not seeking revenge for last week's panty raid. It may ,be noted that the first stage of the invasion included a raid upon Betsy Barbour Resi- dence, who I am sure was not offensively involved in last week's, +o ,..4. r DAILY OFFICIAL BULLETIN The Daily Official Bulletin is an off icial publication of The Univer- sity of Michigan for which The Michigan Daily assumes no editorial responsibility. Notices should be sent in TYPEWRITTEN form to Room 3564 Administration Building before 2 p.m., two days preceding publication. FRIDAY, APRIL 6 General Notices AAUP Members and Other Interested Members of the Faculty: The local chapter of the American Association of University Professors will meet at 8:00 p.m. Thurs., April 19, in the West Con- ference Room, Rackham Bldg. A panel will discuss "The Impact of Year-Round Operations on the Faculty." Partici- pants will include Prof. Stephen H. Spurr, who is studying the details of final day for DROPPING COURSES WITHOUT RECORD will be Fri., April 6. A course may be dropped only with the permission of the program adviser after conference with the instructor. Approval for the following student- sponsored activities becomes effective 24 hours after the publication of this notice. All publicity for these events must be withhelduntil the approval has become effective, April 20-Folklore Society, Concert with Jesse Fuller, Union Ballroom, 8 p.m. April 23-Women's League, Installa- tion Night, Rackham, 7 p.m. April 22-Folklore Society, Concert with Bob Dillon, Union Ballroom, 2:30 p.m. April 21-Folklore Society, Workshops, 3rd floor, SAB, 10:30 a.m. nw 1 Editorial Staff JOHN ROBERTS, Editor ULIP SHERMAN N FAITH WEINSTEIN City Editor Editorial Director AN FARRELL ...............ersnnel Director 'ER STrUAR m ImA m ..a..zin Editor