SATURDAY, MAY 21, 1966
THE-MICHIGAN DAILY
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SATURDAY, MAY 21, 1966 TIlE MICHIGAN DAILY = ~ ~RAA~'ER~a
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Living Costs Increase
GM Predicts Bright
Future for Industry
SOUTH VIET NAM:
U.S. Hopes To Prevent Split
,Gratstin 15
Years
By The Associated Press
General Motors told its stock-
holders yesterday that auto in-
WASHINGTON (P) - Living
costs jumped four-tenths of one
per cent last month, rounding
out the biggest January-to-April
price rise in 15 years, the Labor
Department said yesterday.
Assistant Commissioner Arnold
Chase of the Bureau of Labor Sta-
tistics said the price increases to-
taling 1.4 per cent the past three
months were the biggest for any
corresponding January - to - April
period since 1951, and was match-
ed since then only one other time
for any three-month period. That
was from December 1957 to March
1958.
The Bureau of Labor Statistics
said the major area of the April
increase was that of consumer
services.
One Bright Spot
"We got a near leveling off of
food prices," which edged up a
relatively slight one-tenth of one
per cent, Chase said, It was the
only reasonably bright spot in the
report.
The increase brought the gov-
ernment's consumer price index.
measuring a broad range of goods
purchased by the typical American
family, to 112.5.
This means it cost $11.25 in
April to purchase items which cost
$10 in the 1957-59 period on which
the index is based.
In addition to increased prices
for consumer services, medical
costs rose four-tenths of one per
cent, clothing five-tenths, housing
seven-tenths, and transportation
six-tenths.
Earnings Decline
At the same time, the after-tax
earnings of some 14 million fac-
tory workers declined about 10
cents a week to $98.24 for those
with three dependents and $90.42
for single workers. The drop, de-
spite record hourly earnings of
$2.69, was caused by the decline
in the average work week due to
cutbacks in production, the bureau'
said.
When the added cost of living
was figured in, the purchasing
power of the average factory
workers' pay check dropped about
45 cents a week in April, the bu-
reau said.
Chase declined to comment on
what effect the rise in living costs
might have on federal economic
policies.
President Johnson indicated ear-
lier this year that if prices kept
going up some action-possibly
tax increases-might be taken in
an attempt to ease the inflation-
ary trend.
Speculation that Johnson may
not have to resort to a tax in-
crease followed government reports
earlier this week of declines in
such key economic indicators as
manufacturing orders, housing
construction, industrial production
and employment, retail sales and dustry prospects are bright "al-
personal income. though as in the past we will
The size of the April increase in have our pauses and possibly our
living costs was a surprise, fol- dips."
lowing the earlier Labor Depart- Frederic G. Donner, GM board
ment report that wholesale prices chairman, and James M. Roche,
went up onl one-tenth of one per president, gave no indication in
cent. their opening remarks at GM's
Consumer service prices, which annual meeting whether an early
the bureau said were the major May decline in auto sales had been
cause of the overall April rise, reversed.
went up eight-tenths of one per Henry Ford II, board chairman
cent. About a third of that was of Ford, told his stockholders
attributed to the government's ac- Thursday that preliminary reports
tion in restoring excise taxes on indicated the industry's May 10-
telephone service. 20 sales were running behind last
The April rise in prices reduced year.
the purchasing power of the dollar Ford's Up
from 89.3 cents to 88.9 cents com- Ford was the only auto com-
pared with 1957-59. pany whose sales in the opening
Nearly a million workers with 10 days of May were ahead of its
labor contracts pegged to the gov- 1965 pace.
ernment index will get cost-of- GM's top two executives made
living wage increases because of no mention of any contemplated
the April rise. cutback in GM's expansion plans.
Ford told his stockholders his
company had cut back 10 per cent,
or about $130 million, on expan-
sion plans it had through 1967.
Ford said his cutback was in
line with President Johnson's re-
quest to business to curtail some
capital expenditures to help the
nation's economy.
Both Donner and Roche indicat-
ed the safety issue was a factor
in a decline in automotive sales
in April and early May.
Excellent Account
Roche said, "All of our cars
gave an excellent account of
themselves in the market place
with one exception, the Chevrolet
Corvair."
One reason, he said, is "the
adverse publicity stemming from
litigation in which the Corvair
has been involved."
Donner reported that some 130
cases involving claims of improper
vehicle design still are pending
against the Corvair.
Donner predicted total car and
truck sales in the United States
would hit 13 million units by
1975, compared with about 10.9
million in 1965.
The New York stock market
spurted in late trading yesterday
after Donner's statement.
WASHINGTON (P)-The United
States is in urgent touch with gov-
ernment and rebel leaders in South
Viet Nam's intensifying civil con-
flict.
Although the effect of the strife
so far has been virtually to side-
line South Vietnamese forces in
the Hue-Da Nang area from the
war against the Communists, high
officials here continued to insist
that the civil strife has so far not
caused any major damage to the
anti-Communist struggle.
The possibility that the political
crisis could result in a break-off
of South Viet Nam's three north-
ern provinces from Saigon's con-
trol is recognized in high quar-
ters of the Johnson adminis-
tration. An obvious purpose of the
U.S. effort to find a solution is to
prevent such a split, which could
remove a critical area of South
Viet Nam from the war or render
it ineffective in the drive to block
a Communist conquest.
The Johnson administration is
still holding to a careful middle of
the road course in dealings with
the Saigon military regime and re-
bellious military and Buddhist
leaders at Da Nang and Hue.
This evidently is designed to
leave the U.S. in position to con-
tinue working with Premier Gen.
Nguyen Cao Ky or with his suc-
cessor if Ky proves unable to re-
main in office.
Authorities here said the criti-
cal issue is the timing of a switch
from the present military rule to
a civilian administration in Sai-
gon, but involved in this are fu-
ture relations between the north-
ern provinces and Saigon and the
future political role of the Bud-
dhists.
Ky pledged last January to pro-
ceed through the development of
a new constitution to put a civil-
ian government into power some-
time in 1967. The U.S. backed his
plan and talks a great deal about
getting a constitutional govern-
ment set up in Saigon as soon as
the South Vietnamese can work it
out.
Ky's position has been that he
woulr run the government until
another -- legislative assembly -
took office next year, but this has
brought protests from the Bud-
dhists and other leaders in the
Hue-Da Nang area and is assum-
ed tobe a major cause of their
rebellion.
U.S. officials now have the im-
pression that as a result of Ky's
use of force to try to overcome
the anti-government uprising in
Da Nang last weekend the rebel
terms have hardened to the point
where they call for a civilian gov-
ernment to replace the Ky regime
now.
if
CONGRESSIONAL REPORT:
SUrge Peaceful China Contacts
WASHINGTON (l)-A congres-
sional report yesterday urged the
United States to continue trying
for peaceful contacts with Com-
munist China while making it
clear that Red aggression would
nont go unchallenged.
The findings submitted to the
House Foreign Affairs Committee
by its subcommittee on the Far
East and the Pacific noted that
U.S. initiatives toward Peking thus
far have met with rebuffs.
"This should not discourage us,"I
the report said. "Instead, con-
scious of the terrible price that
war has already exacted in ourt
age, we ought to apply our best
energies to the search for new ap-
proaches, new peaceful solutions
to international tensions and con- world except on its own terms.
flicts." "Continuing friction between
The subcommittee headed by Communist China and the outside
Rep. Clement J. Zablocki (D-Wis) world is to be expected, and larg-
took testimony from more than er conflicts cannot be ruled out,"
three dozen witnesses including the report said.
scholars, specialists, Secretary of As for the split between Peking
State Dean Rusk and other State and Moscow, the committee said
Department officers, businessmen, "it would be foolish and extreme-
former U.S. officials, clergymen ly risky for the West to stake its
and redresentatives of organiza- security on the fragile premise"
tions with Asian interests. that problems between the two
The report concluded that Com- rival camps would do away with
munist China is steadily advanc- the threat posed by Communist
ing to the rank of a great world China and the Soviet Union.
power. It found that Communist In the short run, it said, Com-
rule appeared firmly entrenched munist China's expansionist poll-
and that Red China is not inter- cies threaten U.S. military secur-
ested at present in peaceful ac- ity arrangements in the Western
commodation with the outside Pacific and the continuing eco-
>j
1
t
.
Arthur Plant's
garden party was
something to behold,.
The BUd® was just,
opening.
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World News Roundup-
By The Associated Press
w PARIS-France intends to go
ahead with nuclear tests in the
Pacific despite protests and ex-
pressions of concern from a num-,
ber of countries, government
sources said yesterday.
The sources reported France
would not possibly alter its test
A plans after having made such a
tremendous investment in the test
site and in development of the nu-
clear devices.
The tests are to take place on
the Pacific atoll of Mururoa, prob-
ably in early July. France has
assured countries in the Pacific
A. area that all precautions have
been taken to prevent harm to
their population.
* * *
WASHINGTON-The office of
Sen. Robert F. Kennedy (D-NY )
denied yesterday reports that he
plans to make a statement sup-
porting Juan Bosch for president
in the Dominican Republic elec-
tions June 1.
"The senator has no plans what-
ever to make any speeches or
statements at this time concern-
ing the Dominican Republic," a
spokesman said.
ALAMOGORDO, N.M. - Hopes
for anucesflnsft ad ing o n I
the moon by an unmanned Sur-
veyor spacecraft were bolstered by
yesterday's slow descent and soft
landing of a test vehicle on the
southern New Mexico desert.
The first of two Surveyor lu-
nar trips planned this year is set
for launch May 30 from Cape
Kennedy, Fla. Five more are plan-
ned next year, space officials re-
ported.
The Surveyor is the U.S. an-
swer to the Soviets' Luna 9, which
landed on the moon last Feb. 3
and transmitted pictures to earth.
A spokesman for Hughes Air-
craft Co., prime contractor for
Surveyor, said the U.S. vehicle is
more sophisticated than the So-
viet vehicle.
Canada's parliament agreed yes-
terday that "close relations ofj
mutual confidence" between the
two nations would not be shat-
tered if Canada recognized Com-
munist China.
But the ninth interparliamen-
tary conference, winding up two
days of sessions, reported widely
varying views among members of
the two delegations on policies
toward the Red Chinese regime.
Under conference ground rules,
the individual legislators who ex-
pressed the views were not iden-
tified.
"Several Canadian delegates ex-
pressed the opinion that a policy
of isolation carried increasing dan-
gers," the conference reported.
nomic and political development of
independent countries on the As-
ian mainland.
"We seriously question the wis-
dom and ultimately the capacity of
the United States continuing for
the next decade or more to dis-
charge those heavy responsibili-
ties with only marginal assistance
and cooperation from our allies in
Europe."
The report was issued as Red
China's third nuclear explosion
was upgraded as more powerful!
than originally estimated but still
short of hydrogen bomb force.
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FIRST CHURCH OF CHRIST
SCIENTIST
1833 Washtenaw Ave.
For transportation call 665-2149
9:30 a.m.-Sunday School for pupils from
2 to 20 years of age.
11:00 a.m.--Sunday morning church service.
Infant care during service.
11:00 a.m.-Sunday School for pupils from
2 to 6 years of age.
A free reading room is maintained at 306 E.
Liberty. Open daily except Sundays and
holidays from 10:00 a.m. to 5:00 p.m.;
Monday evenings from 7:00 to 9:00 p.m.
THE CHURCH OF CHRIST
W. Stadium at Edgewood
Across from Ann Arbor High
Rev. V. Palmer, Minister
SUNDAY
10:00 a.m.-Bible School
S11:00 a.m.-Regular Worship.
6:00 p.m.-Evening Worship.
WEDNESDAY
7:30 p.m.-Bible Study.
Transportation furnished for all
NO 2-2756.
ST. ANDREW'S CHURCH and
the EPSICOPAL STUDENT
FOUNDATION
SUNDAY
8:00 a.m.-Holy Communion and Sermon.
9:00 a.m.-Holy Communion and Sermon.
Breakfast following at Canterbury House.
11:00 a.m.-Morning Prayer.
7:00 p.m.-Evening Prayer (Chapel).
TUESDAY
10:15 a.m.-Holy Communion.
WEDNESDAY
7:00 a.m.-Holy Communion.
FRIDAY
12:10 p.m.-Holy Communion.
LUTHERAN STUDENT CENTER
AND CHAPEL
National Lutheran Council
Hill St. at Forest Ave.
Dr. H. O. Yoder, Pastor
SUNDAY
9:30 a.m.-Bible Study.
10:30 a.m.-Worship Service.
5:00 p.m.-Supper at the Center.
5:35 p.m.-Speaker: Prof. Philip C. Best-
"What's Ahead in the Social Sciences?"
7:00 p.m.-Devotions.
UNIVERSITY LUTHERAN CHAPEL
1511 Washtenaw Ave.
The Lutheran Church-Missouri Synod
A. T. Scheips, T. L. Scheidt, Pastors
Sunday at 9:45 a.m.-Service, with sermon by
Pastor Scheips, "Disciples Who Speak
Plainly."
Sunday at 11 :00 a.m.-Bible Study of 1 John.
Wednesday at 10:00 p.m.-Midweek Devotion.
UNIVERSITY REFORMED CHURCH
1001 E. Huron at Fletcher
Pastors: Malefyt and Van Hoven
, fl"I ... __..\ / , ;.".C r e ;k a " i
ST. MARY'S STUDENT CHAPEL
331 Thompson
NO 3-0557
Msgr. Bradley, Rev. Litka, Rev. Ennen
SUNDAY-Masses at 7:00, 8:00, 9:15, 10:45,
12:00, 12:30.
MONDAY-SATURDAY - Masses at 7:00,
8:00, 9:00, 11:30 a.m. 'and 12:00 and
5:00 p.m. Confessions following masses.
WEDNESDAY - 7:30 p.m.-- Evening Mass.
Confessions,following.
SATURDAY-Confessions-3:30-5:00, 7:30-
9:00 p.m.
HURON HILLS BAPTIST CHURCH
Presently meeting at the YM-YWCA
Affiliated with the Baptist General
Conference
Rev, N. Geisler
SUNDAY SERVICES
9:45 a.m.-Sunday Bible School.
1 1:00 a.m.-Morning Worship.
7:00 p.m.-Evening Gospel Hour.
An active University group meets each Sunday
for the 9:45 service.
Coffee is'served at 9:30 a.m.
ZION LUTHERAN CHURCH
1501 W. Liberty St.
Ralph B. Piper, David Bracklein,
Fred Holtfreter, Pastors
Worship Services- :30 and 11:00 a~m.
Holy Communion -- Second Sunday of each
month.
Church School & Adult Bible Class-9:35 a.m.
Holy Baptism-First Sunday of month.
Nursery faculties during worship services and
church school.
services-Call
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FIRST PRESBYTERIAN CHURCH
Phone 662-4466
1432 Washtenaw Ave.
Minitsers: Ernest T. Campbell, Malcolm
G. grown, John W. Waser, Harold S. Horan
SUNDAY
Worship at 9:00, 10:30, and 12:00-12:45.
Bible Study for College Students at 10:30 a.m.
Presbyterian Campus Center located at the
Church.
CONGREGATIONAL CHURCH
State & William St.
Services at 9:30 and 11:15 a.m.-"Inside-
Out," Rev. Terry N. Smith.
Church School-Crib through Junior High-
9. n,, - (..C throuhs i ,.ra-1 1 .l1
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FIRST METHODIST CHURCH &
WESLEY FOUNDATION
At State and Huron Streets
Phone 2-4536
Hoover Rupert, Minister
Eugene Ransom, Campus Minister
9:00 and 11 :15 a.m.-Worship Services.
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