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Seventy-Four Years of Editorial Freedom
VOL. LXXV, No. 122 ANN ARBOR, MICHIGAN, THURSDAY, 18 FEBRUARY 1965 SEVEN CENTS

SIX PAGES

COMMENTS ON BUDGET:
Ferency Asks Bond Issues
To Help State Universities

Summer Pay Dispute Continues

a
3

As

Hey ns

Reaffirms

Position

By WILLIAM BENOIT to pay for "sorely-needed capi-
tal outlay to accommodate next
If State Democratic Party fall's influx of students." He term-
Chairman Zolton Ferency had his ed Romney's budget "inade-
way, institutions of higher edu- quate."
cation in Michigan would be in Insignificant
clover. The interest charges on such
Ferency spoke out in an inter- a large bond issue are insignifi-
view last night on many issues cant compared to the immediate
that have been troubling leading necessity of building facilities for
administrators from Michigan's 10 greater enrollment, he said.
state-supported colleges and uni- He also claimed he can muster
versities. els pplrime han
On Gov. George Romney's budg- I legislative support for this plan.
et recommendations for higher Concerning in-state to out-of-
education, Ferency advocated state student ratios. Ferency said
floating a $50 million bond issue his proposed bond issue would
" "
Survey Reports Optimism
On Economiy, Remains High
By CHRISTINE LINDER
Consumer optimism remained at a record high level during the
last three months of 1964, indicating continued strength in the nation's
economy, according to the December, 1964, Survey of Consumer
Attitudes and Inclinations to Buy as prepared by the University's
Survey Research Center.
A seven year peak in consumer optimism was reported in the
September survey.
Professors George Katona and Eva Mueller of SRC, who have
been conducting quarterly consumer attitude surveys since 1951,

make it possible to construct
enough buildings to accommodate
anyone, resident or not, who want-
ed to become a part of what he
termed "Michigan's unique higher
education set-up."
Ferency also attacked the "head
count" method of determining
appropriations to the state's col-
leges and universities, a meth-
od many have claimed Romney
used in making this year's budget!
recommendations.
Equal Education?
"I don't think anyone should
use a head-count as the sole de-
terminant in allocating funds. The
number of heads at Michigan
State University and the Univer-
sity may be the same numerically,
but the information being put in-
to those heads could be very di-
verse," he said.
Ferency also said University
President Harlan Hatcher "has
a point" when he claims that
the University should receive more
money since it educates more stu-
dents at the graduate level than
does any other Michigan Univer-
sity.
MSU President John Hannah
favors the head count method and
emphasis on undergraduate edu-
cation because he doesn't have
extensive graduate level educa-
tional facilities, Ferency said.
Ferency also claimed that
Democrats have and always will
support creation of an extensive
community college network in
Michigan.

1

STUDENT WELFARE:
SGC Questions Housing View
By MICHAEL DEAN tion throughout the year." Reporting to SGC on its off-
Council Executive Vice-Presi- campus housing committee's study
Student * Government Council dent Gary Cunningham, '66, said of the situation, Martin Zimmer-
last night criticized the Off-Cam- he had "been shown no justifica- man, '66A&D, committee chair-
pus Housing Office's "apparent tion of the claim that rents would man, noted that University Vice-
lack of concern for student wel- rise appreciably. Most rents are President for Student Affairs
fare" in rejecting Council pro- being increased for next year any- Richard L. Cutler supported Coun,-
posals to change the standard way." cil's opposition to the existing
Student Rental-Agreement form. 'Insufficient Concern' rent responsibility clause.
Council had recently proposed SGC President Douglas Brook, However, the office, in its reply
that the agreement, which must '65, called the office's attitude
be signed by any students living "one of insufficient concern for to SGC, claimed the clause "is a
in apartments using the lease students. Time and time again proved flexible in University me-
form, be amended so the Univer- in this communication," he con- diation. Without it, the landlord
sity would not be obligated to tinued, "we have statements as to would be virtually defenseless
enforce the terms of a student's the effect of our proposals on wguld d mirtuans."s
lease beyond the duration of his landlords and a minimum of con- against mobile tenants.
academic year. cern for their benefits to stu-_

PROF. DICK LEABO

Council had further suggested dents.L
that students be made responsible °"I can at this point only con-
only for their individual share of elude that the realtors rather than L .T
the rental fee and not jointly re- students appear to be the most p
sponsible for the entire fee. influential constituents of this r esident W riter Program
Higher Rents office. Needless to say, I think
The Housing Office's reply to this is wrong."
these suggestions expressed con- SGC member Barry Bluestone,'' By LAURENCE KIRSHBAUM
cern that their adoption would '66, called on the University to.
eventually result in higher rents. break its "tacit agreements with In what is described as a unique educational program, the Uni-
It also stated that the prob- exploitative realtors and become versity will have a writer-in-residence here next year for three weeks.
lem "is far from being solved . . . the supporter of student propos- Louis E. Lomax, noted scholar, philosopher, author and pro-
and will receive continuing atten- als." fessor, has been invited to spend three weeks in late February and

Reveals Tax
Favor Freeing
$700 Million
WASHINGTON (YP) - President
Lyndon B. Johnson handed busi-
ness a $700 million tax favor yes-
terday, hoping to get in return a
voluntary clampdown on overseas
investment.
Johnson told 1100 industry
leaders at a meeting of the Na-
tional Industrial Conference Board
that the Treasury will soon an-
nounce liberalized tax guidelines
for plant and equipment and ma-
chinery depreciation.
The new rules have been ur-
gently sought by nearly every in-
dustry.
The action has been expected
for at least two months, but the
$700 million is twice or three
times as big as the Treasury has
indicated it would give.
"The new rules," Johnson said,
"will further encourage business
to scrap old equipment and bring
in new-and they will help busi-
ness to cut costs, raise efficiency
and hold the line on prices to
keep our expansion going."
He did not mention the worsen-
ed balance of payments deficit in
his 20-minute talk. But many of
his hearers will be among the
300 leaders of banking and indus-
try who go to the White House
today to hear Johnson's plans for
industry-government measures to
wipe out the payments gap.
To help close this gap, Johnson
told Congress last week he wants
American bankers to curtail vol-
untarily their long-term loans
abroad and wants United States
corporations to cut their invest-
ments in foreign plants.
Secretary of Commerce John T
Connor is expected to name a task
force of businessmen to help him
work out, over the next several
weeks, some guidance formula for
checking the outflow of invest-
ment dollars.

proposed several reasons for the
failure of consumer sentiment tc
rise beyond its already high level.
"Even under the impact of con-
tinued income increases, consum-
ers do not go overboard; aftei
prolonged good times, some of
them begin to wonder what may
sustain prosperity in the longei
run.
"The impetus of the tax cut,
which greatly contributedto op-
timism earlier 'in 1964, no longer
serves that purpose. Consumers
need new stimulation - either
through continued income in.
creases or through fiscal policy,'
Katona and Mueller said.
One exception to the tendenc3
for optimism to remain at the
same level-during the last three
months of 1964 was the even more
favorable outlook, which many
'consumers expressed regarding
the national economy for the nexi
12 months.
Unlike the September survey,
where many of the people report-
ing improvements in personal
finances were in the income
bracket above $10,000, the major-
ity of the people reporting im-
provements in personal finances
had incomes of $5000 to $10,000 ir
the December survey.
Pay increases were the most
frequently mentioned reason for
improvement in personal finances
although reduced debt and in-
creased asset holdings were also
mentioned.
Unemployment is one area to
which optimistic attitudes failed
to spread. News about unemploy-
ment was the most frequently
mentioned unfavorable condition
which respondents reported hear-
ing.
Moreover, confidence in th
general economic outlook appear
ed to have a somewhat differen
cause during the last three months
of 1964 than during the previous
three months.
"In December more people ex
plained their optimistic expecta
tions regarding business condi
tions by referring to governmen
measures that have been or wil
be undertaken," Katona and Muel
ler noted.

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early March of 1966 giving speeches, participating in classroom dis-

By
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Board Members Praise
Deny AAUP Charges
BRUCE WASSERSTEIN authorized to deal with higher
education be established by a
nbers of the State Board of state constitutional amendment.
tion yesterlay lauded the
an Association of Collega present system a thorough trial."
er board but defended them- The farmer Regent also main-
from the AAUP's charges taned that elementary, secondary
they were paying too little and higher education should not
ion to .higher education. be separated. He argued that "a
AAUP had urged close co- total job" of educational plan-
ation of higher education ning should be done through a
eir Saturday meeting, and single coordinating board which.
rted the new state board as has the broad picture in mind."
'ehicle for facilitating co- No Legislation Now
ion. Thurber also believes that new
never, the members of the legislation to spell out the powers
noted that in the first few of the state board should not be
of its existence the board encouraged right now. Rather, he
oncentrated mostly on ele- maintains, the state board should
ry and secondary school work within its present framework
ts. and test its vaguely defined con-

cussions and holding informal discussions with students.
S uppo t His acceptance of the invitation is expected within a few days,
' according to Mrs. Elizabeth Sumner of the Office of Religious Affairs.
She activated the resident writer
of Neglect proposal several weeks ago by dis- UC Groups
patching letters to major student =
organizations and academic de-
He maintained that the board was partments seeking their assistance.
interested in all levels of educa- Organization Pledges d tage R ally
tion, but until a master plan can. The organizations have pledged
to face many issues on an "ad $2500 of the more than $4000
hoc" basis. necessary, while the departments By CLARENCE FANTO
hhave volunteered personnel to
Brennan noted, however, that help with therplanning. Faculty Large student demonstrations at
the main problem of the board is co-operation will also be necessary the Berkeley campus of the Uni-
not the need for separate ap- to bring Lomax into classrooms versity of California erupted this
proaches to the different levels of and establish panel discussions on week on the issue of.United States
education., Rather, it is the need issues he raises. involvement in South Viet Nam.
for financial support so the board Lomax, who has specialized in Yesterday, more than 1000 stu-
can hire a "competent and ade- studies of the Negro revolt and dents .gathered at Sproul Hall,
quate" staff. " Black Muslim movement, will the scene of last fall's "free
speak on the conflicts between in- speech" demonstration, to demand.
The AAUP report was sent to herited American traditions and U.S. withdrawal from Southeast
the governor, all menlbers of the present social practices in reli- Asia.
Legislature, all faculty members gion, ethics and economics. Meanwhile, an investigation is
in institutions of higher education, He will also spend time in a being conducted by . a Beverly
all governing boards and admin- central location for students to Hills attorney into the political
istrators as well as the board of discuss issues they wish to raise. and social problems at the cam-
education. Mrs. Sumner has hailed the pro- puses of the 100,000-student uni-
The committee that suggested gram as an opportunity to set off versity. The unprecedented probe
the proposals to the AAUP faced a campus-wide debate on contro- is being sponsored by the Cali-
the alternatives of proposing an versial racial and religious topics. fornia regents.
attempt to amend the state con- Stimulation William E. Forbes, chairman of
stitution or trying to work within She reiterated the hope yester- a special committee which is in-
the present constitutional provi- day that, stimulated by the fac- vestigating the basic causes of
sions. pr ulty, students will be encouraged the Berkeley "free speech" rebel-
i_ to both plan and participate in lion last fall, recently announced
the writer-in-residence program. the appointment of Jerome C.
H as She also called for the admin- Byrne to carry out independent
Chicago H as istration to help supply the more research into the issues confront-
than $1500 necessary to finance ing the nation's largest state uni-
the project adequately. versity system.
1 Segregation In the past, the administration
has sponsored scholar-in-residence -These problems. mushroomed
programs for longer periods, be- into a tense series of student den-
nd HAROLD WOLMAN ginning with poet Robert Frost in onstrations which culminated in
the early twenties. Lomax would the arrestDec. 4 of more than
.ichard J. Daley argued yesterday remain on campus only for the 800 students. At the same time,
ucated in their own communities concentrated three-week session, Chancellor Edward Strong was
but proponents say this will call ousted and replaced by Martin
in an attempt to foster integrated Meyerson, who promptly relaxed
greater attention to his presence the restrictive bans on student
and ideas. th rtcvb- n ue

1
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Officials,
Committee
StillDiffer
Faculty Body Argues
For Higher Salaries
Than 'U' Proposes
By ROBERT HIPPLER
Vice - President f o r Academic
Affairs Roger W. Heyns revealed
yesterday that though the admin-
istration will make "some accom-
modations" to the faculty in the
dispute over summer trimester
wage scales, it does not intend to
change the basic positions it ex-
pressed last fall on the issue.
But the chairman of the com-
mittee which drafted the faculty
position paper on the subject de-
clared last night that the commit-
tee still stands on the principles
of that report. Issued in Novem-
ber, the report calls for higher
summer pay than the administra-
tion's plan.
Both the faculty and the ad-
ministration took their stands last
year on the summer pay issue. The
faculty, in a report from the Sub-
committee on Economic Status of
the Faculty of, the Senate Ad-
visory Committee on University
Affairs, held that professors work-
ing half of the coming summer
term should be paid the same
amount they would be paid for
working half of a fall or winter
term,
The administration, in its latest
released report on faculty salaries
-dated June 29, 1964-recom-
mended that faculty working half
the summer term be paid about
88 per cent of the amount they
would be paid for half a fall or
winter term. Most professors have
planned to work no more than
half the summer term.
Consultations
Since the November faculty re-
port, administrators in the Office
of Academic Affairs have been
consulting with members of the
Subcommittee on Economic Status
of the Faculty in updating and
revising the adminstration's June
pay-scale statement. A copy 'of
the revised document has circu-
lated for comment among admin-
istrators but~ has not yet been
finally approved for release to the
faculty.
When told of Heyns' comment
that the "basic principles" of the
earlier administration statement
would remain unchanged,. Prof.
Dick A. Leabo of the business
administration school, chairman
of the faculty subcommittee, said
he had not yet seen the upcoming
administration statement. But he
added that the faculty committee
still stands on the differing prin-
ciples-higher summer pay-of its
November report.
Asked if he thought substantial-
ly fewer professors would be will-
ing to teach during the summer
under the lower pay of an admin-
istration plan, he declined com-
ment. But he said that "most fac-
ulty members are now busy" and
have "many alternative jobs to
turnto" during the period of the
summer term.
However, James E. Lesch, assist-
ant to the vice-president for aca-
demic affairs, when told of Heyns'
statement asserted that differ-
ences between the tenets of the
faculty position and those of the
coming administration report "are
not great."
'Not Substantially Less'
When asked if he thought sub-
stantially fewer professors would
be willing to teach under the pay
of the administration plan, he
predicted that the number of
those willing to teach would be
"not substantially less" than un-
der the faculty plan. N. Edd Mil-

ler, the assistant to Heyns most
closely connected with the drafts
of the administration's proposals,
was not available for comment.
Prof. Richard Wellman, chair-
man of SACUA, declined com-
ment on Heyns' statement. He
noted, however, that since the fall
"several modifications" to the ad-
ministration position have been
discussed by administrators and
faculty.
Wellman came under fire from
SACUA last month because he

Separate Education situtil powers.
In the future, the AAUP mem- Thomas Brennan, president of
- bers stressed, "Higher education the board, said, "Merely because
and elementary education must the board has not attacked thco
somehow be separated in the problems of education on a white
operation of state government." charger in its first month does
A possible method the AAUP not mean we are not interested."
Y proposed was the appointment of
an assistanit superintendent of in-
- of instruction, solely responsibleM ayor A sserts
for higher education and assis-
e tant superintendent solely respon-
.sible for elementary and secon-NIn e t o
t dary education. a
s Donald M. Thurber, former Uni-
s versity regent and present state By CAL SINNER JR. a
board member, admitted that theByCLSNERRa
- board has focused on secondary Chicago's Democratic Mayor P
- schools recently but asserted that that school children should be ed
this was due to the backlog of instead of bussed to remote schools
t work in this field. dbcko.
1 Reject Suggestions education.
Thurber rejected the AAUP's Questioned in an interview bef
suggestion that another board alleged racial segregation' in Chic
TUT711

ASKS 'HANDS-UP' PROGRAM:
-r '--, o d"l l 0

Daley Details Lhica go's War on Poverty

By MARK KILLINGSWORTH
"The objective of our attack on
poverty must be a 'hand up,' not a
hand-out," Chicago's Mayor Rich-
ard J. Daley said last night at
the second lecture in the sympo-
sium on American poverty.
"There is no better way to res-
cue able-bodied and employable,
but unemployed, men from their
present eroding idleness than to
give them meaningful work at
decent wages," Daley added,
stressing that Chicago's attack
on poverty is "just at the begin-
ning of a vast program."
The program, ultimately involv-
ing twenty-four area centers re-
sponsible for 61 per cent of the
a.- 'nrnnnmr

He said the city's manpower
and education programs were of
major importance in combating
unemployment and poverty.
Richard Rothstein, from the
Chicago Economic Research and
Action Project sponsored by Stu-
dents for a Democratic, Society,
clashed with Daley during a "re--
actor panel" session after the
speech. Rothstein charged that,
the poverty program perpetuates;
feelings of dependency and in-
feriority in the poor.
No Less Paternalistic
He added that the program is
"no less paternalistic than past{
programs. The poor must be
brought into the decision-making
and administrative process-but
f}n1 , l,}orA. n '+- antn'

work' until we've tried."
He added that at a recent open-
ing of an Area Opportunity Cen-
ter "four people were outside
picketing while 450 were inside
talking with us. But we were
happy to invite the picketers in."
A small group calling itself the
"Ad Hoc Committee for Urban
Democracy" picketed Daley out-
side Hill Aud. In a statement is-
sued yesterday, the group charged
Daley with "hypocrisy" for talk-
ing about poverty when "the Daley
machine is mainly responsible for
perpetuating many conditions
causing blight in Chicago."
Create Jobs
Prof. James Morgan, project
director of the University's Sur-
o e Research Center and another

ore his poverty week speech about
cago's schools, Daley replied that
e"there has been no intentional
segregation in the city of Chicago.
What segregation we have -is just
due to the residential makeup. No
child is deprived of an adequate
education."
Daley also emphasized that he
has a limited role in determining
educational policy. He recounted
that in 1955, in response to
charges that politics were inter-
ferring with the educational sys-
tem, he pledged in his first cam-
paign for mayor that all educa-
tional matters would be handled
by the Board of Education with no
interference from the mayor's
office.
Commenting on the role of poli-
tics in Chicago, Daley asserted
the Chicago Democratic party was
not, as some political scientists
have suggested, the last of the old
political machines.
'We are the first of the new
machines," he said. "It's what's
accomplished thathcounts. Our
programs are in the interests of
the people in the city. This dif-
fers from the old machines which

Johnson Says
U.S. Defends
Free Viet Nam
By The Associated Press
WASHINGTON-President Lyn-
don B. Johnson said yesterday
the United States "will persist in
the defense of freedom" in Viet
Nam. At a surprise White House
conference, he sought advice from
former President Dwight D. Eisen-
hower on solving the dangerous
confrontation with Communist
power there.
The President's attention to the
Viet Nam fighting-recently step-
ped up by Communist attacks on
United States installations and
American retaliatory raids-came
against a background of debate
on the issue in Congress and else-
where.
Strong support for Johnson's'
strike-back tactics was voiced by
Republican leaders, headed by
Se.n Everett R irksen of Illinois

political activity wich was one
cause of the rebellion.
Byrne, an expert on labor-
management relations, has no
connections with the University of
California. At a news conference
after his appointment, he an-
nounced "every effort will be
made to get the views of all ele-
ments of the university adminis-
tration, faculty and students."
Byrne is specifically charged
with "determining the basic
causes of unrest on. all University
of California campuses."
Close Race in
Honduras Vote
TEGUCIGALPA, Honduras R)
-Col. Oswaldo Lopez Arellamo's
National Party edged toward a
slim majority last night in a bit-
terly contested National Assem-
bly election.
With 540,000 votes reported out
of a total of 815,000 registered to
vote, the National Party led by
60,000 ballots.

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