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Seventy-Six Years of Editorial Freedom
VOL. LXXVI, No. 40S
ANN ARBOR, MICHIGAN, SATURDAY, JULY 2, 1966
SEVEN CENTS
FOUR PAGES
The US. Economic Scene: Up, Down or Si6
eways
The first half .. .
By The Associated Press
NEW YORK-Sound, fury and
confusion swirled through the na-
tion's economy in the first half of
1966. Almost everything got bigger,
although as the first half ends
there's some doubt if everything
got better.
The long economic upswing sud-
denly became a boom in the first
three months of the year. Then
just as suddenly the emphasis
changed from the danger of over-
heating to the threat of a chilling
slowdown, even the possibility of
an incipient turndown.
An inflation debate raged,
changed direction, and now is
bogged in confusion. Is inflation
already here? A continuing threat
or a receding bugaboo?
The tax debate still swirls. Is a
federal tax increase needed to
cool down a still bubbling economy over the place, to the confusion of
or to pay for a more expensive the investing public. The Dow
war in Viet Nam than has so far Jones industrial average hit a
been officially admitted? high of 995.15 Feb. 9, a low of
Gaining in intensity and con- 864.14 May 17 and in the closing
fusion* as the first half moves week of June was below 890. Talk
into history is the battle of tight of the "magic 1,000" dominated
money. Interest rates are rising, Wall Street early in the year.
both those that borrowers must Trading volume set records ear-
pay and those that savers can lier in the year, then sank into
command. Is the economy, or a perplexed doldrums.
part of it, being hurt? Or is the Car sales and output boomed in
prosperous economic expansion be- the first three months, then wentl
ing saved? into a decline that chilled both
The year started with a clash the stock traders and the general'
between the administration and public.
the steel industry over a price But in dollars and cents the
hike. This ended in a compromise, economy looked far from sick. The
with the increase cut in half. And Gross National Product was run-
as the first six months unfolded, ning at an annaul rate of $697
compromises seemed to be taking billion in the final three months
most of the zip out of the ad- of 1965. This measure of the na-
ministration's attempt to guide tion's output of goods and services
wage and price policies. jumped to $714 billion in the first
The stock market bounced all quarter of 1966, and despite all
the talk about slowdowns is run-
ning at an estimated $725 billion
annual- rate at midyear.
Most people are doing all right.a
Personal income rose from an an-
nual rate of $552 billion in January;
to $565 billion in May. Personal
consumption outlays went from
an annual rate of $441 billion in;
the fourth quarter of 1965 to $453
billion in the first quarter of 1966.
Part of this was due to a drop in
the rate of savings. But part was
due to the rise in the cost of liv-
ing. The index stood at 111 per'
cent of the 1957-59 average in
January, but by May had risen to
112.6 per cent.
All these figures spell record
prosperity and general good times.
But at midyear business and public
alike are turning cautious, won-
dering. The trends have become
confusing and some folk arej
scurrying for the sidelines.
*.. . and the second
By The Associated Press f
NEW YORK - Some low-
pressure economic areas could af-
fect the business weather in the
second half of 1966, but high-
pressure areas built up over the
last five and a half years are
still most likely to set the eco-
nomic climate for some months
to come.
Depressed areas the experts
watch are housing, the stock
market, auto sales uncertainty,
credit squeeze on consumers and
business, firms, higher interest
rates, growing wage demands,
worsening balance of payments
deficits and, above all, the spread-
ing effect of a costlier Viet Nam
war-both in money and man-
power-on the civilian economy.
These could moderate the pace
of the economy for the rest of this
year. But the momentum built up
in major segments is still so strong
that most economists, in govern-
ment or in business, see the gen-
eral trend still upward with many
new records all but assured by
year's end.
The strong points are:
9 Defense spending upturns will
be increasingly translated into
new orders, helftier production
and more jobs and paychecks.
O High and rising employment
can be expected which means
larger totals of personal incomes
and corporate revenues. This all
but guarantees more consumer
spending by the yearend, and fur-
ther ordering of materials and
machinery.
" Business expansion plans call
for more spending in the last six
months of 1966 than in the same
period in 1965. Neither the credit
squeeze, labor shortages, materials
scarcities nor government re-
straints seem likely to modify the
total spending very much.
Thus all three props of the
economy--consumer, business and
government spending-should be
sturdy.
Caution has come back into
style, however, after the specu-
lative exuberance of the early
months of the year. Jitters in the
stock markets affect the attitude
of many citizens who do no trad-
ing at all. Consumers also are
worried by the chance of a tax
increase, by the pinch of a rising
cost of living or by the credit
pinch when they engage in the
great American pastime of buying
on the cuff.
How the 1967 model autos will
catch on also will have a wide
psychological repercussion. Public
confidence has close links to auto
industry trends.
Some business leaders are fear-
ful that the big climb in profits
may be over, or nearly so. Profits
may be squeezed, both by the gov-
ernment's frowns on prices in-
creases and by growing labor de-
mands that could raise production
costs. Other storm centers they
watch are the government's at-
titude toward mergers, its stepped-
up antitrust drive, and a possible
tax increase.
Whether consumer demand is
reaching a saturation point in
some fields is debatable. Caution,
or shaken confidence, could delay
some buying, but most consumers
seem bent on raising their living
standards still higher-if they can
get the necessary credit.
But as of now, the signs are
for a further expansion-but at
a slower rate than early in the
year-and therefore for more in-
dustrial output, more jobs, more
spending money in people's pockets
Local Plan
Body Set by i Orti
GovernmentsNE
New Council Will A
Viet
Boats
Attempt
tack
U.oS.
Foster Area-Wide
Growth Approach
Four hundred local communities
have approved a report which will
provide them with a unified gov-
ernmental council and a regional
approach to common problems,
The report, written by theCom-
mittee of One Hundred, sets out
a plan to create a council repre-
senting all local governments in
southeastern lower Michigan to
"provide a forum and organiza-
tion for the study, discussion,
identification and definition of
regional problems and opportuni-
ties."
"The council will foster, develop,
review and implement regional
plans for growtth, development
and conservation," the proposal
states.
Its authors are government of-
ficials from this area who feel that
"our four hundred local govern-
ments and four million citizens
4' are bound together phyvsically,
economically and socially into one
larger regional community,
They are a voluntary council
of governments as both a recogni-
tion of their communities' inter-
dependence and a means of deal-
ing with the problems that inter-
dependence creates.
Two policy bodies, a general as-
sembly and an executive commit-
tee, will make up the council.
Each member governmental unit
will meet at least once a year. The
assembly will be the policy-mak-
ing body of the council.
The executive committee will
have 35 members, based on a basis
of population. It will meet once a,
month to handle interim matters
and work with regional policies.
The ocmmittee will also propose
the council's yearly budget and
:submit actions to the assembly.
Both will be served by five staffs
dealing with the five major ques-
tions which the council sees as
facing it.
Late World News
By The Associated Press
RAWALPINDI-President Mohammad Ayub Khan announced
yesterday that a Pakistani economic mission will seek aid from
the Soviet Union.
Ayub's announcement followed by one week his dispatch
of a military mission to Moscow and by one day the departure
of Red China's Premier Chou En-lai after a short and cool stay.
JAKARTA-British Foreign Secretary Michael Stewat lew
into troubled Indonesia yesterday and said he would discuss the
withdrawal of British troops from Malaysia.
The foreign secretary said Britain approved the Bangkok
peace talks between Indonesia and Malaysia. "but will leave
details up to Mr. Adam Malik Indonesian foreign minister and
his Malaysian friends.
Means of improving relations bewen Indoinsia and Britain
will also be a majqr topic during the brief talks.
WAYNE STATE UNIVERSIT Y president William Keat .said
yesterday the institution could live within its $41.93 million budget
bur 1966-67 without raising tuitions. but he voiced a note of
caution for the following yeai. the Associated Press reported
from Detroit.
The legislature has approed di appropriation uf $32.31
million for the 1966-67 year. This will be supplenienited by stu-
dent fees and other income.
U.S. REP. 'ES VIVIAN (D-Ann Arbor) reported that he has
received about 200 letters and postal cards from residents in the
vicinity of Northfield Township, near Ann Arbor, supporting
location of the Atomic Energy Commission's proposed 200 billion
electron volt atomic particle accelerator laboratory in Northfield
Township.
"It is increasingly clear that, far from opposing the North-
field Township site," Rep. Vivian commented, "the overwhelming
majority of area residents enthusiastically support it. This is in
marked contrast to the situation, I might add, which has de-
veloped in areas surrounding several other proposed sites which
have received active consideration by the AEC."
Most of the mail which Vivian has receiveci on the subject
in the past few weeks has been in the form of a postal card
printed and distributed by Oren F. Nelson of Whitmore Lake,
"This is considerably stronger support than a single petition,
or series of petitions," Vivian said, "because a postal card cam-
paign demands individual commitment, without the implied
pressure which a petition-circulator often seems to carry."
--- ------- ------- -
I "
IAIA
Ships
Fail.s
All Enemy.
Craft Sunk
ByAirplanes-
Report No Casualties
Among Americans;
Prisoners Taken
By The Associated Press
SAIGON-U.S. ships and war-
planes sank three North Viet-
namese torpedo boats in inter-
national waters 60 miles outside
the port of Haiphong, the U.S..
command announced this morn-
ing.
The two-hour engagement in
the Gulf of Tonkin started yes-
terday when the enemy craft
closed in at high speed on U.S.
ships patrolling the area, the an-
nouncement said.
Planes from the aircraft carrier
Constellation were immediately
called in and as they approached
the area, the Communist ships
opened up with antiaircraft fire.
The planes "'responded in an
exchange of gunfire. The patrol
boats were disabled and halted.
But efforts by surface units to
capture them failed as the boats
sank," the official announcement
said.
Earlier yesterday fighter-bomb-
ers from the Constellation hit
North Viet Nam's fuel depots for
the third straight day. They
struck at the depot at Dong Dham,
15 miles northwest of Haiphong
and pilots reported all bombs on
target and the area shrouded in
heavy smoke. The depot had a\
capacity of 14,000 metric tons.
Eighteen North Vietnamese
crewmen were rescued by Ameri-
can warships before their vessels
went down in the Gulf of Tonkin,
the U.S. command announced.
One American warplane from
the aircraft carrier Constellation
was damaged by antiaircraft fire
from one of the Communist ships
but returned safely to the carrier.
The engagement was one of the
few naval battles in the Viet Nam
war. It followed increased U.S.
bombings of Communist fuel in-
stallations in North Viet Nam.
By The Associated Pressj
Secretary of State Dean Rusk encounters anti-Viet Nam war pickets while in Australia to address the national press club luncheon.
SIMPLE DESIGN:
Detroit Art Institute Expands Its
Exhibitio-n Space with New Wing.
City To Review SHA Proposal
0 d B
On Zoning Suy uldingCode,,
By SIIRLEY ROSICK Van Lente described the pro- ganXiation will be working close-
A University-City housing pro- posal to review zoning ordinances ly with University administrators
posal drafted by the Student as a move to "help builders," and and members of the student hous-
Housing Association is due to be the review of the housing code as ing advisory committee, on an in-
introduced to the Ann Arbor City designed to "help students." formal basis. Of special concernj
Council next weekend, According He called the State Housing Act, to SHA will be suggestions for in-
to Tom Van Lente, '67, of SHA, protected by builders, "outdated" proving mediation services that
the proposal will ask that city and bothersome." He said he the University's O f - -C a m p u s
representatives review a zoning learned that the city had been Housing Bureau presently offers
study and update the city's hous- planning to study housing codes, landlords and students, Bodkin
ing code. and that with the student sug- , said.
The city planning department's gestion, will undertake an intens- The student housing advisory
R-4 study had asked that density ive investigation immediately. SHA committee, plagued by the low
in the central campus area be re- has asked for a review of several summer enrollment will wait un-
duced to provide for more green- housing codes, with a drawing up til fall for formal committee meet-
ery and open space. Under this of one for Ann Arbor that will ings to resume. At that time, the
plan, maximum amount of land "supplement shortcomings in re- students will undertake a study
allowed to be used for buildings, quirements on fireproofing, sound- of single student housing, with
now at 70 per cent, would be low- proofing and the general quality emphasis on the possiblity of the
ered to 14 per cent. of the insides of buildings." University building single studentI
Van Lente said that SHA would The original SHA proposal had apartments.
like to see the percentage of area been submitted to the City Coun- However, committee member
allowed for building space to be cil two weeks ago but was re- Robert Goyer, Grad, says that
raised beyond even the 70 per ferred to the mayor for further some "informal exploration" onI
cent level. He said that the idea study. the single student housing prob-
to have more open space "is nice, Robert Bodkin, '67, who drew up lem will go on during the summer.
By MEtE)DITII EIKER
special To The Daily
DETROIT-The Detroit Insti-
tute of Arts last weekend doubled
its present exhibition space with
the opening of a magnificent new
South Wing. Primarily the design
of Prof. Gunnar G. Birkerts of the
School of Architecture and De-
sign, the South Wing is part of
an $11 million expansion program
which will be completed in 1969
with the construction of a North
Wing and the renovation of the
original museum building.
Exterior walls of dark granite
stand in strikingly simple contrast
to the building which Paul CIet
designed in the 1920's. The unity
of the new addition with the ex-
isting edifice, however, is to be
found within While there is no
masonry connection between the
two, the architect has created an
exciting Great Sculpture Court
which transforms an outside wall
of the old building into an an-
terior one and connects the two
sections
Lobby and stair walls are of
French marble (Breche Nouvelle),
pieced so as to form patterns often
as masterful as the paintin ,;s in
the adjoining 38 galleries. Floors
as well are of marble and the ef-
fect is one which exemplifies
Frank Lloyd Wright's concepts of
continuity' and 'plasticity.'
the walls.
Stair and balcony railings of
light teak wood maintain the
simple flow of line which, along
with bronze trim on marble floors
and around the windows, accentu-
ates and adds grace to the struc-
tures rectangularity.
Galleries, lobbies, and courts
create a splendid series of spaces
so that standing in any one part
of the wing is unlike being in any
other.
Financing of the South Wing
came primarily from three sources:
a grant from the federal govern-
ment under the Public Works Ac-
!r
c
x
K
x
I
t
i
E
. i
of oak parquet with marble edgeso
that flow into a marble base alonga
overflowing. Increased museum Rembrandt, Van Eyvk, and El
activities and attendance quickly Greco out of storage while at the
made the original building inade- same time enabling the museum
quate. to re-hang masterpieces in- a more
Until the recent bringing to- flattering setting.
gether of federal, municipal and The new wing has also enabled
private sources made the expan- the Institute to expand its picture
sion program possible, much of the rental galleries and set aside two
museum's collection had never galleries for works which it is still
been seen by the public. Substan- considering adding to its perma-
tially strong holdings of Flem- nent collections.
ish and Dutch paintings, German Most recent acquisitions by the
expressionist works, and Ameri- Institute include Miro's surreal
can art could not be displayed. "Autoportrait II" and two 5,000
Modern gifts and purchases lacked year old Cycladic figures. Detroit-
exhibition space as well. ers can look forward to filling an-
The opening of the South Wing other wing in the same outstand-
has brought paintings by Millet, ing traditions.
celeration Program, contributions'v i e L r lS
to the Founders Society of the Ii-jE
stitute, and a million dollar dona-
tion from the Eleanor Clay Ford
Foundation. Requiring two and a R evolutioi
half' years for completion. the a '
wing's cost totaled $3,785,000.
But the new wing was intended
to do and has done more than T o
merely provide Detroit with an ex- o i.
pensive and outstanding piece of
architecture. Excellence of acqui- Voice, the campus chapter of cl
sitions during the 21-year admini- Students for a Democratic So- o
stration of the Institute's late Di- ciety, is currently conducting a w
rector William R. Valentiner en- "20th Century Revolutions" lec-
larged the museum's collections ture series. Conceived as an edu-
in many directions cational program to operate dur- t
Because Detroit attempted to ing the summer months, the series gE
encompass the entire grand swteop is being offered in room 3G in the a
o~f mans a(.! ('ve elf PforVtsZfromr,, - w .
1n Series Will Aim
ducated Protests
hosen as the rallying point in
rder to answer some of the
orld's social problems.
Distinct Program
The Voice series is distinct from
he REP program, now in the or-
anizational stages, because it .is
local program only, while REP
rather than sum up complaints
on picket signs, the Voice mem-
bers seek analysis of a sore point
and use this information as the
basis for changing status quo. The
educational material is expected to
arm the "radicals" with evidence
of wrongs in society and on the
hA.C'iC of +hi~ 1know1ldge find ways