THURSDAY, NOVEMBER 19,1964
THE MICHIGAN DAILY
THURSDAY, NOVEMBER 19, 1964 THE MICHIGAN DAILY
' i"tllY L' 1 iH i't G' 1
Report Year's Low Strike Rate;
Ackley Predicts Unemployment Decrease in 1965
Trend of Local Disputes
WASHINGTON (R) - Despite
auto strikes and other headline-
making labor disputes, the gov-
ernment says strike activity is
running at only half the rate of
the past 14 years.
At the same time, federal medi-
ators are closely watching an ap-
parently increasing tendency for
local issues to blow up into na-
tional disputes such as the Gen-
eral Motors strike.
Time lost in strike activity the
first nine, months of this year
was .14 per cent of total esti-
mated working time, compared
with a .28 per cent average over
the previous 14 years, government
Last year's exceptionally peace-
ful labor scene also makes 1964
appear more troublesome by com-
In the first nine months of
1963, there had been only 2,797
work stoppages involving 860,000
workers and the loss of 12.3 mil-
lion man-days. The number of
WASHINGTON (P) - President
Lyndon B. Johnson's tremendous
Democratic majorities in Congress
have recalled an almost forgotten
precept that might be termed
As House Republican leader
Charles A. Halleck of Indiana re-
called it in an interview this
week, "Rayburn's law" goes like
"When you get too big a ma-
jority, you're immediately in trou-
Halleck said the late Speaker
Sam Rayburn said this many
Another close associate of Ray-
burn's, House parliamentarian
Lewis Deschler, said yesterday
that "in private conversations he
often talked of the trouble a big
majority gave him-it split into
groups along ethnic and sectional
"Rayburn's law" stems back to
1937, when Franklin D. Roosevelt
began his second term with the
most lopsided Democratic major-
ity in Congress in modern his-
tory. Rayburn had just become
majority leader of the House.
In the Senate there were 75
Democrats to 16 Republicans (four
seats were held by minor parties
and one vacancy). In the House
the edge was 333 Democrats to 88
Republicans (with 13 minor par-
ty seats and one vacancy).
Deschler said Rayburn soon
"found out his troops were stay-
ing away a lot of the time and
not tending to their knitting.
They were hard to rund up."
It is historical fact that by
midsummer of 1937-six months
later-Roosevelt was hard put to
muster a congressional majority
for much of his program. The big
majorities tended to break up
Halleck drew a parallel with
the present situation. When Con-
gress convenes in January, John-
son will have a majority in the
House of 295 to 140. In the Sen-
ate the split will be 68 to 32.
"If I were President Johnson I'd
be careful what I sent up here,"
Halleck said. "He can hardly
bounce them off me, and blame
the Republicans for what Congress
does, can he?"
Halleck readily conceded that
Johnson should get his top prior-
ity health care for the aged and
aid-to-Appalachia programs with-
out much trouble.
__ ., 1
workers involved was the lowest
By comparison, the AFL-CIO
United Auto Workers strikes at
General Motors and other firms
helped boost 1964's nine-month
figures to 2,920 work stoppage in-
volving 1.24 million workers with
a loss of 13.5 million days.
In 11 of the past 15 years, the'
time-lost figure has been higher
than 1964's .14 per cent. It was
highest in 1952.
Most worrisome to federal offi-
cials is the impact of big na-
tional strikes on the rest of the
Government economists yester-
day pointed to a 1.7 per cent drop
in industrial production in Octo-
ber and expressed concern that
labor disputes like the General
Motors strike might cause a gen-
eral business slowdown after an
almost uninterrupted four-year
A national mediation panel
made up of industrial executives
and labor leaders is now work-
ing on recommendations for new
approaches to collective bargain-
Sources said one thing under
study is the matter of local dis-
putes that hold up a national
agreement. The General Motors
negotiations bogged down on set-
tlement of individual plant griev-
ances after most points in the na-
tional agreement had been ham-
The mediation panel will re-
port its recommendations to di-
rector William E. Simkin of the
Federal Mediation and Concilia-
tion Service. ;
Many large unions negotiate a
national industrywide settlement,
leaving local plant matters to be
settled in "supplemental" agree-
ments at the local level..
There have been other exam-
ples of local agreements boiling
over and hampering a national
Some government sources feel
this may become an increasing
trend as local union members lose
patience when their individual
plant grievances are ignored.
A Teamsters Union strike vir-
tually shut down delivery of new
cars lost summer when local un-
ions rejected an attempt to put
their individual contracts under
a national agreement for the first
United Steel Workers President
David J. McDonald is attempting
to forestall any local snags when
hA nnn nu nt t flk it
WASHINGTON - H. Gardner
Ackley, former chairman of the
University economics department
and recently installed chairman of
the Council of Economic Advisers,
yesterday predicted the nation's
unemployment rate would be
"drifting downward" as business
steadily expanded in the first half
He would make no comment as
to the economic outlook past mid-
1965, but noted the stimulus ef-
or repealing the 10 per cent auto
excise tax, saying that a govern-
ment official is not in a position
to discuss any individual excise.
Ackley seems less concerned
than his predecessor, Walter W.'
Heller of the University of Min-
nesota, about the threat of short
term inflationary pressures, rul-
ing it out as "an imminent dan-
The three year, 60-cent-an-hour
benefits package won by the Unit-
ed Auto Workers this year is
"not inflationary as far as the1
auto industry is concerned, be-
cause of productivity increases and
the large profits in the indus-
try," Ackley said.
Inflationary danger is only in-
curred, he said, when the same
'settlement pattern is extended
to other industries where produc-
tivity increases and profits have
!1e oin s newcW Ut eLamsw ltn fect of the promised excise tax
the industry nett year. cut would have and said he does
McDonald called 700 local lead- not foresee the need for any oth-
ers to a New York conference er government booster at mid-
Tuesday and Wednesday to listen term next year.
to their problems. McDonald, fac- Many forecasters see a down-
ing his first opposition for the turn of the economy in the second
union presidency from Secretary- half of 1965.
Treasurer I. W. Abel, apparently Ackley said the excise tax cuts
is trying to offset opposition com- will total from a half billion to
plaints that he has paid too little $4 billion. He declined comment
attention to local issues. on the advisability of reducing
not been as great.
"Most people would seriously
doubt that steel could absorb that
kind of a wage increase," Ackley
To avoid inflation, excessive
consumer demand and spiraling
wages must be guarded against,
Talk of inflation he saw as
based on fears of a steel work
stoppage, with steel users over-
heating the economy temporarily
by building up their inventories.
Ackley said this wasn't likely.
"Businessmen have become better'
able to manage their inventor-
ies, and I just don't see a wide-
spread scramble for inventories
that owuld create inflationary
Asked about reducing that na-
tional debt, Ackley said, "the time
to do that is when you're fighting
He refused to comment on the
Johnson-supported plan to fun-
nel around $2 billion a year in fed-
eral tax revenue back to the states.
If the economy' continues its
prosperity in the next four years,
warding off both inflation and
"To avoid a recession, we must
make sure the total level of de-
mand expands at a rate adequate
to keep the economy growing.
"Monetary policy is obviously
another one, but in our present
circumstances it's less usable be-
cause of the balance of payments
situation. Monetary policy has one
arm tied behind its back."
I Cites Preventatives
To avoid inflation, Ackley pre-
scribed action to guard against
excessive consumer demand and
spiraling wage rates.
He said he rejects the views
held by some economists that un-
employment will rise next year al-
though there will be no recession.
"It's quite possible the present
expansion will continue pretty
much on its own steam for the
first six months of 1965 and the
unemployment rate will drift
"I think this administration is
going to be very interested in see-
ing that the unemployment rate
declines," he said.
WORLD NEWS ROUNDUP:
Bunker Elected OAS Council Head
present rate of growth it will
generate an additional $6 to $7
billion a year with existing tax
rates-money which will have to
be passed out either in tax reduc-
tions or increased government
spending, he said.
There is every reason, he said,
for this nation to enjoy continued
By The Associated Press
WASHINGTON - Ambassador
Ellsworth Bunker of the United
States yesterday was elected chair-
man of the council of the Or-
ganization of American States.
He is the first American to be
elected to the post in 13 years.
The council is the executive
body of the OAS, composed of one
representative from each of the
President Lyndon B. Johnson
appointed Bunker as ambassador
to the OAS early this year after
a series of riots in the Panama
PARIS-Proponents of the U.S.-
backed multilateral nuclear force
within the North Atlantic Treaty
Organization backed away yes-
terday from an immediate show-
down with France over the con-
The United States, West Ger-
many and several other NATO
nations favor such a project while
French President Charles de
Gaulle is steadfastly opposed to it.
The retreat seemed to reflect a
desire to avoid a frontal clash
with de Gaulle at this time.
One reason for this is that Brit-
ain is preparing amendments or
counter-proposals which Wash-
ington; and other allies want to
DETROIT-A strike which has
idled 81,500 Ford Motor Co. work-
ers may end soon says United Auto
Workers President Walter P. Reu-
Reuther said in New York Tues-
day night that telephone reports
he had received from union offi-
cials here indicated the strike
might end soon.
The UAW chief had cut short
a European visit to return yester-
Mon., Nov. 23 Aud. A
8:00 p.m. Angell Hall
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MAIN at WASHINGTON
Music by THE VAGRANTS
DIALOGUE WITH ROY WILSON
AT GUILD HOUSE, 802 Monroe
Wilson is a militant, young, industrial worker, Negro,
lay minister, ex-Marine, labor leader at Willow Run,
Ypsilanti area, critic and prodder of the Church, youth
Today thru Sot.
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1 hr. service 9 a.m.-4 p.m.
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7:30 FRI. EVE.
NOV. 20, 1964
LEARN FIRST HAND THE PROBLEM
OF WORKING PEOPLE AND NEGRO YOUTH.
DELICIOUS DINNER at 6 p.m.
CALL FOR RESERVATIONS:
Thursday, November 19, at 4:00 p.m.
A PANEL DISCUSSION ON
N. S. KHRUSHCHEV
"You are what I'm thankful for"
r r .rrl- . * r.*. .. s1 '
Dr. Seward Hiltner
Professor of Theology and Personality, Princeton
Theological Seminary; Member of the Faculty, the
Program in Religion and Psychiatry at The Men-
ninger Foundation; author, writer, consultant, edi-
tor, and lecturer.
ENEMY OR ALLY?"
Part I. THURSDAY, Nov. 19
4:10 p.m., Rackham Lecture Hall
Part 11. FRIDAY, Nov. 20
4:10 p.m., Rackham Lecture Hall
Seward Hiltner received his Ph.D.
from the University of Chicago,
after graduating from Lafayette
College and doing clinical pastoral
training in conjunction with his
graduate study in theology at the
University of Chicago. He has
edited three major publications in
the field of mental hygiene; au-
thored nine books on religion,
health, counseling, the Kinsey Re-
ports, the pastoral theology; is an
ordained minister of the United
Presbyterian Church; the pastoral
consultant to Pastoral Psychology
ALSO: INFORMAL DISCUSSION
IN THE LOUNGE,
ALICE LLOYD RESIDENCE HALL
7:00 p.m., Thursday, Nov. 19
Topic: "The Role of Religion in Personality
DR. MORRIS BORNSTEIN
Professor of Economics
DR. GEORGE KISH
Professor of Geography