SAVE YOUR FORTUNE COOKIES See Editorial Page Y L £fr i~t9au 113a ti4H SUNNY AND HOT High--90 Low-65 Fair and will continue to be quite warm. 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