SATURDAY, MAY 21, 1966 THE-MICHIGAN DAILY PAV.R TNR.FV. SATURDAY, MAY 21, 1966 TIlE MICHIGAN DAILY = ~ ~RAA~'ER~a rtiu . ntc 6 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. ANHEUSER-BUSCH, INC. « ST. LOUIS * NEWARK " LOS ANGELES + TAMPA " HOUSTON TitV4tqC&1%14 ttce now in progress ENIVERSITY SHOP CLOTHW ANUE FUR NISHJNO 25 0~4O0/A& all sales final . no mail and phone orders * no CAOD's THE UNIVERSITY SHOP SAKS FIFTH AVENUJE 332 SOUTH STATE STREET, ANN ARBOR, MICH. 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. I D IA L 662-3979 if a man answers _.. _ ._ .. "T WASHINGTON - Members Congress and representatives of of Y Passport Pictures Application Pictures Group Pictures Wedding Pictures Available at any time Ready Quickly CALL NO 3-6966 18-HOLE MINIATURE GOLF DRIVING RANGE Hours: Sun.-Thurs. 11 A.M.-10 P.M. Fri. & Sot. 10 A.M.- 11 P.M. TEE & SKI 2455 S State I ask about BRIDGESTONE the fastest growing name in motorcycles as low as 268 delivered 8 GREAT MODELS -50 to 175ce. Lightweights " sport models scramblers * traircycfes. Univ. Motorcycle Sales 211 E. Ann WORSHIP j t At a ., catu *v, l....at ifl ________________________________ 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 This is Jaguar for Men. After-shave and cologne combined. Lusty. Powerful. Potent. Comes on stronger. Stays on longer. After-shave/cologne, $4.50. Soap on a rope, $2.50. 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 HIGH POWERED OFFER! Action-packed racing car scenes!' By today's most popular PIP jA, racing artist, Walter Gotschke! Four of them! Handsome 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. it, II I