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March 26, 1961 - Image 3

Resource type:
The Michigan Daily, 1961-03-26

Disclaimer: Computer generated plain text may have errors. Read more about this.


~~ U

nsfield To Begin Fight
rennedy Wage Bill
IL ,A IL , ,iAsk Increase

Plan Meets Mixed Reaction'


(EDITOR'S NOTE: This is the
second in a series of articles which
through the opinions of University
faculty members will. examine the
accomplishmnents, problems, and
most significant issues on "The New
Mixed but generally favorable
reaction has met the blitz of do-
mestic economic measures pro-
posed by President John F. Ken-
nedy's task forces and recently
presented 'to Congress.
A bill which provided emergen-
cy extension of unemployment
benefits has already passed both
the House and Senate while a
revised version of Kennedy's min-
imum wage bill received House
approval Friday. Measures for tax
revision, distribution of surplus
food to unprosperous areas, hous-
ing construction, conservation of
natural resources and redevelop-
ment of depressed areas are being
drafted for this Congressional ses-
Cautious View
Viewing these actions cautious-
ly, Prof. J. .P. Wernette of the
business school said, "It's obvious
that there is more energetic lead-
ership in the White House, ho-7
wise it is, is another thing. The,
change must be for the better to
bo good.
Kennedy's ability to mobilize in-
telligence in a working "brain
trust" is one of his major assets
in pushing forward his "New
Frontier,"' Wernette continued.
Task forces of experts had most
of the preliminary research done
before Kennedy took office. Prof.
William Haber of the economics
department a~nd Prof. Wilber J.
Cohen of the school of social work
were among those called, Prof.
Koreans Riot
Against Chang
SEOUL (AP)-Nearly 10,000 South
Koreans in three major cities de-
manded Premier John M. Chang's
resignation yesterday, the fourth
straight day of anti-government
Unlike, the previous days, yes-
terday's crowds were orderly.
They were incensed at two gov-
ernment security bills submitted
to the national assembly. The gov-
ernment claims they are neces-
sary to control Communist activi-'
ties and unruly demonstrations.

Harvey Brazer of the economics
department said.
Kennedy Boss
But Kennedy calls the plays,
"there is only one view in the
White House and he doesn't dis-
agree with himself," Prof. Braver
Following the task force re-
ports, permanent consulting groups
were amassed, such as the labor-
management consulting commit-
tee and Council of Economic Ad-
visers. Undersecretaries such as
Prof. Cohen for Health, Education
and Welfare and Prof. Stanley
Surrey of Harvard for 'the Treas-
ury were given permanent posi-
tions and are "drafting bills at a
tremendous rate," Prof. Harvey
Brazer of the economics depart-
ment reported.
Surrey js currently formulating
Kennedy's tax message which will
probably contain provisions for
equalizing taxes by cutting out
loopholes as well as bills to en-
courage business recovery.
Sees Tax Drop
Most observers predict measures
for lower taxes on factory equip-
menu and a temporary reduction
of taxes to pull consumer buying
out of the current slump will also
"To an increasing degree, Ken-
nedy's decisions must be determin-
ed by the economic facts of life,"
Prof. Clare E. Griffen of the busi-
ness school said. Pointing out
that to raise the minimum wage
will aggravate the immediate un
employment problem, Griffen said
he disagreed with many of Kenne-
dy's policies.
Asks Change
Tax revision should make more
liberal allowances. for equipment
depreciation, he continued. It is
not desirable to reduce taxes if
it will increase the deficit.
Kennedy's plans for developing
the nation's natural resources
were challenged by Griffen, who
is "in favor of letting private
initiative do the developing wher-
ever possible. Kennedy's propos-
ed plan will probably place empha-
sis on federal projects.
There seems to be little opposi-
tion to Kennedy's recommenda-
tions for aiding depressed areas.
"Anything which encourages in-
dustry is good for the country,
Griffen said.
The skeleton of the depressed
area plan calls for redevelopment
of an area to attract industry, re-1
training of those with obsolete,
skills, moving surplus labor to,
other areas and maintaining the
stricken areas in the meantime.

In Minimum
For, Workers
Labor Committee
Completes Hearings
leader Mike Mansfield (D-Mont)
promised yesterday a fight in the
Senate to pass a minimum wage
bill "substantially along the lines
requested by President John F.
But other Senators said privately
administration supporters face a
tough uphill struggle to restore
key provisions of the Kennedy bill
rejected Friday by the House.
In the first major legislative
defeat for the new President in
the Democratic-controlled Con-
gress, Southern Democrats and
Northern Republicans combined to
put over by a single vote, 186-185,
a substitute, for a last-minute
compromise offered by adminis-
tration backers. The decision was
then pinned down by a 216-203
roll call.
The House then passed and sent
to the Senate a bill to raise mini-
mum wages for some 24 million
Wvorkers now covered from the pre-
sent $1 an hour to $1.15. It re-
stricted new coverage from an es-
timated 1.1 million workers who
would get a $1 minimum with no
overtime pay required.
The administration bill would
lift the present $1 wage to $1.15
within 120 days after passage, to:
$1.20 a year from then and to
$1.25 after two years.
A Senate labor subcommitteel
under Sen. Pat McNamara (D-
Mich) has completed hearings on
the Kennedy bill and handed it
without change to the full 15-
member parent committee.

For Recall
Of Belgians
eral African and Asian delegations
are expected to propose.next week
that the United Nations General
Assembly call for the quick with-
drawal of Belgian military men
and political advisers from the
Sources within the 46-nation
Asian-African group expressed be-
lief yesterday that this would turn
out to be a leading point in a
resolution the group will meet
tomorrow to draft. The meeting
will follow a continuation of the
Assembly's debate on the Congo
crisis, started last Tuesday by
Soviet request.
The informants said they were
hopeful the resolution would pass
the 99-nation assembly, to back
up a demand for Belgian with-
drawal issued Feb. 21 by the 11-
nation Security Council. Belgium
has agreed to call Belgian citizens
back from the Congo who are
subject to military duty at home.
But she has insisted that the
Congolese have a right to hire
Belgianpolitical advisers if they
Some members of the Asian-
African group have been putting
together ideas for a resolution
based on this week's report of the
United Nations conciliation com-
mission for the Congo. The group
probably will turn the job of
drafting, a proposal over to its
steering committee.

SEATO To Meet on Laos Issue

BANGKOK, Thailand (A)-
Southeast Asia Treaty Organiza-
tion foreign ministers open a cru-
cial meeting here tomorrow that
could decide whether there will be
peace or war in Laos.
The diplomats, still awaiting
Soviet response to peace proposals,
will consider a defense plan drawn
up by SEATO's military strate-
gists, who favor strengthening the
anti - Communist pact's fighting
power to resist Red aggression.
Charge Aggression
The Laotian government charged
today Communist aggression con-
tinues. Communist North Viet-
namese invaders have captured a
government outpost at Lac Sao
in central Laos and scattered the
defenders, a Royal army source
Fifty North Vietnamese troops,
members of six battalions the gov-
ernment claims have invaded Laos,
were killed in the assault. Govern-
ment losses were undetermined,
the report said.
The United States State Depart-
ment announced in Washington
that an American C47 transport
plane assigned in Laos has been
missing for two days with eight
men aboard.
Path Unknown
A spokesman said it is not known
if the airplane, which left Vienti-
ane Thursday morning for Saigon,
flew over rebel-controlled territory
or was fired on by the Commun-
Reliable sources said 17 techni-
cians from the United States
Army's 25th Division based in
Hawaii arrived in Bangkok for an
undisclosed destination.

The United States has confirmed
that a marine maintenance unit of
about 150 men has moved into
Udorn, in northern Thailand, to
service helicopters supplying the
Royal Laotian Army. And,. units
of the US. 7th Fleet were on the
move in Far Eastern waters.
List Developments
As the foreign ministers began
arriving in Bangkok, these devel-
opments were apparent:
1. The Kennedy administration's
new "hard line" on Laos may re-
sult in SEATO acceptance of a
concrete proposal toward meeting
the Laotian crisis through military,
means if the Communists refuse
steps toward diplomatic settle-
2. The United States already is
taking precautionary steps toward

possible military intervention
the situation, now described
"dangerous," should deteriorate
SEATO has pledged to come
the aid of Laos if it asks for he
and Western members of the pa
have left no doubt they intend
honor their obligation.
The talks bring together Uni
ed States Secretary of State Dea
Rusk, and foreign ministers
Britain, France, Pakistan, Tha
land, Australia, New Zealand an
the Philippines.
Meanwhile, Indian defense min
ister V. K. Krishna Menon sa
in New York yesterday he hope
the Laos crisis will "settle down
He denied a report that he wou
present a United Nations resoli
tion on the situation.



ee /




a new Spring




...cautious on Kennedy
"Another point of view is that
society and the economy is so
complex that the government
cannot stay out," Eugene N. Fein-
gold of the political science de-
partment said. "The mild and
modified program of Kennedy may
not get at the heart of the prob-
lems. His measures are stop-gap
in the sense that they answer
the immediate problem of unem-
"Sen. Harry Byrd's (D-Va) op-
position to Kennedy's measures
are powerful as he is chairman of
the finance committee which is
strong enough to weaken but not
to destroy them. Their fear is for
future action rather than of these
definite bills," he said.


Russia Announce

Successful Launchings
By The Associated Press
Both the United States and the Soviet Union yesterday announced
successful space probes-the U.S. with the triumphant orbiting of
Explorer X and the Russians with the rocketing of another dog
around the world and its later recovery.
Explorer X, a high-flying space laboratory, spun into orbit to
make the most extensive study ever attempted of mysterious magnetic
fields and solar winds. Its findings, which will take months to analyze,
will help chart the safest route
for man to follow on future jour- n' 7- ". TT- 7

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World News Roundup

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B'nai B'rith Hillel


By The Associated Press
centennial commission announced
yesterday it will hold its April
11-12 assembly at the Charleston,
S. C., naval station to avoid racial
barriers in the city proper.
The proposed solution of 'the hot
racial controversy was announced
by Maj. Gen. U. S. Grant III, com-
mission chairman and grandson of
the Civil War general. He said it
was in compliance with President
John F. Kennedy's anti-discrimi-
nation policies.
The five state centennial com-
missions of New Jersey, Califor-
nia, New York, Wisconsin and Il-
linois had withdrawn from the
meeting because of segregated fa-
cilities in Charleston. The annual
assembly will be held during cere-
monies commemorating the firing
on Ft. Sumter 100 years ago.
ACCRA, Ghana - President
Kwame Nkrumah says he has been
"very impressed with the dynamic

approach to African problems"
shown by President John F. Ken-
nedy's administration. Nkrumah
spoke on his return to Accra Fri-
day from an 18-day trip to Wash-
ington,,Lonidon, Rabat and Tunis.
BRUSSELS-Belgian voters will
have their say today on the dis-
putes that propelled the nation
into a month of riots last winter.
The economic discontent underly-
ing the costly outbreaks is a major/
issue in nationwide elections.

neys into space.
The 78-pound satellite, which
looks much like an old-fashioned
potato masher, zipped away from
Cape Canaveral at 10:17 a.m. in
the nose of a Thor-Delta rocket.
The three-stage Douglas-devel-
oped, vehicle performed like clock-
work, propelling the payload into
orbit at a speed of more than
24,000 miles an hour. Several
hours later, Explorer X, its speed
reduced considerably, was report-
ed penetrating deeper into space
toward its intended high altitude
point of 123,000 miles.
The space package is expected
to reach this goal about 5 p.m.
tomorrow, then will start swipg-
ing back toward the earth on its
fist planned 4 -day orbit pass.
Moscow radio and the Soviet
news agency Tass said the latest
Russian space dog-named Zvez-
dochka, meaning Little Star-sur-
vived the flight and preliminary
examinations shows she "feels

Rh~odesia Head
Decries Blocs"
KITWE, Northern Rhodesia (AP)
-Sir Roy Welensky, prime min-
ister of the Central African Fed-
eration (the Rhodesias and Nyasa-
land) warned yesterday that the
British Commonwealth has begun
to have the same danger as the
United Nations-there are power
blocs growing up inside It.
Welensky said there is now a
trend which he said would lead
Commonwealth leaders at future
conferences to split and concen-
trate more on dealing with things
in which they had common cause.





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