THURSDAY, NOVEMBER 19,1964 THE MICHIGAN DAILY PAYE TIRRYIn THURSDAY, NOVEMBER 19, 1964 THE MICHIGAN DAILY ' i"tllY L' 1 iH i't G' 1 1 Report Year's Low Strike Rate; DOWNWARD DRIFT: Ackley Predicts Unemployment Decrease in 1965 Study 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 figures show. Last year's exceptionally peace- ful labor scene also makes 1964 appear more troublesome by com- parison. 1963 Record 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 'Rayburn s Law' Cited By Halleck WASHINGTON (P) - President Lyndon B. Johnson's tremendous Democratic majorities in Congress have recalled an almost forgotten precept that might be termed "Rayburn's law.'" As House Republican leader Charles A. Halleck of Indiana re- called it in an interview this week, "Rayburn's law" goes like this "When you get too big a ma- jority, you're immediately in trou- ble." Halleck said the late Speaker Sam Rayburn said this many times. 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 lines." Roosevelt Position "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." Majority Splits 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 into factions. 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 since 1949. 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 economy. Production Drop 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 climb. A national mediation panel made up of industrial executives and labor leaders is now work- ing on recommendations for new approaches to collective bargain- ing. 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- mered out. Mediation Report 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 settlement. Local Strikes 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 time. 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 of 1965. 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- ger." 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. Inflation Pattern 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 a 1 !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 noted. To avoid inflation, excessive consumer demand and spiraling wages must be guarded against, he said. Steel Concern 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 pressures." Asked about reducing that na- tional debt, Ackley said, "the time to do that is when you're fighting inflation." Tax Revenue 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 recession "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 downward. "I think this administration is going to be very interested in see- ing that the unemployment rate declines," he said. GARDNER ACKLEY 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. Predicts Prosperity 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 American republics. President Lyndon B. Johnson appointed Bunker as ambassador to the OAS early this year after a series of riots in the Panama Canal Zone. * * 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- troversial issue. 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 examine. DETROIT-A strike which has idled 81,500 Ford Motor Co. work- ers may end soon says United Auto Workers President Walter P. Reu- ther. 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. 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AT THE LOW PRICE OF Only $5.00 a month OPEN MONDAY AND FRIDAY 'TIL 8:30 P.M. t 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 I I Special Today thru Sot. 49c & 99c Suits, Trousers Dresses, Skirts 1 hr. service 9 a.m.-4 p.m. KLEEN KING A Christmas Gift That Will Be Worn And Enjoyed For Years To Come ... PIERCED EARRINGS from BAYS it ; worker. 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: 662-5189 i Thursday, November 19, at 4:00 p.m. A PANEL DISCUSSION ON THE OUSTER of N. S. KHRUSHCHEV "You are what I'm thankful for" TALK TURKEY WITH A 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. TWO LECTURES: "PSYCHOANALYSIS: 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 WITH STUDENTS 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 11 d I I III':