THURSDAY, NOVEMBER 29, 1962
THE MICHIGAN DAILY
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THURSDAY, NOVEMBER 29, 1962 TIlE MICHIGAN DAILY
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6
U.S., Russia Announced
Disagreement on Cuba,i
Will Meet Again Today
A labama Governor Says BUREAU OF LABOR STATISTICS:
-Vmr-+ 40 -
State To Hit Integration
JACKSON (M)-Alabama Gov.-elect George Wallace said yesterday
he plans to follow a course similar to that of Mississippi Gov. Ross
Barnett in the event of attempts to desegregate Alabama schools.
"I expect to ask the legislature of Alabama for the necessary legal
authority to place me in the position of being the chief official defend-
ant ... so the next federal decree pertaining to an Alabama school
October LivingCosts Decline
Voice Hope.
For Success
Of Meetings
Seek Statement'
By Both Parties
UNITED NATIONS (A') - Top
United States negotiators talked
with Deputy Premier Anastas I.
Mikoyan and other Soviet officials
for more than three hours yester-
day but failed to announce any
agreement for resolving the Cuban
problem.
Another in the long series of
negotiating sessions will be held
tomorrow. Mikoyan will be in
Washington today for a conference
with President John F. Kennedy
on Cuba and a wide range of cold
war issues. How long Mikoyan will
remain in Washington, was not
known.
Were Useful
United Nations Ambassador Ad-
lai E. Stevenson told reporters
after yesterday's session that the
talks were useful, and covered the
points at issue.
"I hope we can resolve these in
the near future, but I've had that
hope for a long time," he added.
He declined to say whether any
progress had been achieved.
Prior to the session cautious hope
had been expressed that the nego-
tiators would come up with some
kind of joint declaration wrapping
up the current phase of the Cuban
problem.
This would pave the way for a
meeting of the United Nations Se-
curity Council where official note
could be taken that Soviet missiles
have been removed from Cuba,
and the United States naval quar-
antine is no longer in effect.
Five-Point Demands,
Stevenson refused to say any-
thing about reports that the So-
viet Union was no longer support-
ing Cuban Prime Minister Fidel
Castro's five-point demands, in-
cluding withdrawal of the United
States from its naval base at
Guantanamo.
A United Nations spokesman
said there was nothing to reports
that Mikoyan had told acting Sec-
retary-General U Thant that the
Soviet Union was dropping such
support. A similar comment came
from a Soviet spokesman.
Stevenson indicated the Rus-
sians brought up the Castro de-
mands at yjesterday's session and
got the cold shoulder treatment
from the United States.
CONFER AT UN-President John F. Kennedy and Soviet Deputy
Premier Anastas Mikoyan confer at the United Nations in an ef-
fort to solve the Cuban problems.
JOINT CONTROL:
Soviets Install System
In Inspect Productiont
MOSCOW (AP)-The Communist Party and the Soviet government
yesterday ordered into effect an inspection system making every work-
man a watchman against cheating and poor workmanship.
This implements a decision reached by the party's central commit-
tee last week.,A joint state-party control or inspection system was set
up for all production in the Soviet Union.
Alexander Shelepin, 44-year-old former director of the Secret
Police, has already been put in charge of it. This inspeciton system is
one of the major agencies by which
Faculty Cites
Low Grades
Of Meredith
OXFORD (CPS)--Faculty mem-
bers at the University of Mis-
sissippi have reported privately
that James Meredith is failing four
courses and barely passing anoth-
er.
Officials are reported consider-
ing what to do if Meredith reaches
the point where he is clearly flunk-
ing out of school. They are con-
cerned about possible charges that
they would be flunking him out to
get rid of him.
Why is Meredith in trouble?
Observers here say the answer is
obvious. He has no privacy. Federal
marshals guard him day and night.
His studies are constantly inter-
rupted by the sound of firecrack-
ers and other noises. Some under-
graduates still curse him every
day.
Two weeks ago Meredith was
joined for dinner by several grad-
uate students. Later that night the
rooms of the students were broken
into.
The rooms were turned upside-
down. Clothes and other personal
belongings were torn to shreds.
"Nigger-lover" was written ,ll over
the walls.
Meredith has spent much time
reading and answering the tons of
mail he has received from all over
the world.
The press has occupied him
constantly. Many papers and news
agencies still have one man in Ox-
ford assigned just to report Mere-
dith's every move.
The 29-year-old Negro has no
friends at Ole Miss, for few dare
even to speak to him. The student
government at the school has call-
ed "unwise" those students who
have spoken to Meredith.
will have to be directed against
me as governor of the sovereign
state of Alabama," Wallace told a
joint session o fthe Mississippi leg-
islature.
"This, in essence, I believe, was
your governor's intention, But he
was denied the right to peacefully
test by due process what he con-
sidered to be a usurpation of pow-
er by federal authorities.
"He was denied the right to have
the question peacefully go through
the courts," Wallace added.
Troops Invade
Red Territory
Near Saigon
SAIGON (P)-A fleet of 55 Unit-
ed States and Vietnamese heli-
copters and transport planes yes-
terday dropped three battalions of
government troops into the heart
of Communist-dominated territory
40 miles northeast of Saigon.
The airlift marked the second.
phase of "Operation Boondodge"
launched a week ago to trap the
elusive Red guerrillas.
A weekend communique claim-
ing the Viet Cong stronghold in the
southern half of South Viet Nam
had been smashed appeared exag-
gerated as military sources report-
ed yesterday only "light contact"
with the enemy.
United States military advisers,
who accompanied the Vietnamese
troops, said they saw no guer-
rillas.
The ground campaign was pre-
ceded by a half-hour air bombard-
ment and one American adviser
said:
"In that type of terrain that's
more than enough time for the
Viet cong to melt back into the
jungle."
Water buffalo have suffered the
highest casualties so far in the
operation-17 mowed down delib-
erately by government troops to
keep the animals out of the hands
of the guerrillas.
WASHINGTON ()--Living costs
edged down a bit in October in
the first monthly decline of 1962.
The November level may reflect
a further drop.
This favorable news for house-
wives was reported yesterday by
the Labor Department which until
now had been relaying monthly
price advisories showing steady,
1962 increases to new record lev-
els.
Bureau of Labor
The index kept by the depart-
ment's Bureau of Labor Statistics,
declined a bare one-tenth of 1
per cent in October to 106 per
cent of the 1957-58 average.
This means it costs 60 cents
more now to buy what $10 would
purchase four years ago.
The story in October was that
meat prices, after soaring in Sep-
tember as some midwest farmers
withheld livestock from markets,
fell somewhat after the farmers'
"strike" was lifted.
Price Division
Arnold E. Chase, the bureau's
price division director, said, how-
ever, meat costs are likely to re-
main high during winter months
because favorable feed prices en-
courage keeping animals on the
farm for further fattening. He
forecast heavier marketing next
spring.
Chase said he expects meat,
clothing, used car and gasoline
prices will decline a bit, while
costs of services continue their
steady increase. This should pro-
duce another slight living cost de-
cline in November.
Says Koreans
Battling Reds
WASHINGTON (P)-South Ko-
rea's Foreign Minister Choi Duk
Shin said yesterday there is a pos-
sibility that North Korean troops,
skilled in mountain winter war-
fare, are fighting with Chinese
Communist forces in the undeclar-
ed border war against India.
Choi, a former lieutenant gen-
eral in the South Korean Army,
said the report of North Korean
participation in the Chinese border
drive came from non-Korean As-
ian sources and is now being in-
vestigated.
Despite the October drop, con-
sumer prices had increased enough
in the two prior months to result
in pay raises for about 1 million1
workers-most of them in the auto
industry-through their quarterly
living cost adjustment.
About 780,000 employes of Gen-
eral Motors, Ford, Chrysler and
various other auto producers and
Detroit Living Co st~
Remains Constant I
DETROIT (P)-The cost of liv-
ing in Detroit remained unchanged
between mid-September and mid-
October, the Bureau of Labor Sta-
tistics reported yesterday. The De-
troit consumer price index for Oc-
tober stood at 102.8 or 1.1 per cent
above the level of a year previous. I
parts manufacturers, as well as
some 110,000 employes of the farm
equipment industry, will get 1 cent
hourly pay increases. About 11,000
other workers are due 2 cents
hourly raises.
Because of shorter average
work-hours, factory worker pay
after tax deductions declined by
about 60 cents a week to $85.66
for the worker having a family of
four. The figure was a record
$86.25 in September.
Living costs averaged 1.3 per
cent higher in October than a year
earlier. Food, which declined five
tenth of 1 per cent over the month,
was 1.8 per cent above a year ago.
Chuck roast, for example, is selling
11.5 per cent higher than it was
a year ago.
Costs of transportation, cloth-
ing, housing and medical care all
were a bit higher in October.
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Federal Court
Upholds Plans
of Railroads
CHICAGO UP) - A federal ap-
peals court upheld yesterday plans
of the nation's railroads to elimi-
nate what the carriers call "feath-
erbedding."
More than one-half billion dol-
lars a year would be saved through
elimination of 65,000 jobs.
The 7th United States Circuit
Court of Appeals affirmed a lower
court ruling which dismissed a suit
by five brotherhoods of operating
rail workers which had sought to
bar sweeping changes in their work
rules.
Yesterday's opinion said the evi-
dencesindicates the railroads in
1961 paid $592,062,000 in costs and
wages "for unneeded employes oc-
cupying redundant positions and
pay for time not worked.
A spokesman for railroads said
the employers will take immediate
steps to place into effect the new
rules which are expected to elimi-
nate 65,000 jobs eventually.
The unions, representing fire-
men, engineers, trainmen, conduc-
tors and switchmen, have an-
nounced they will strike when that
happens.
the government hopes to speed up
production, get the most out of
every worker and trap embezzlers.
Every worker and every execu-
tive clearly is expected to keep
watch on all his fellows, even while
he himself is under the scrutiny
of official and party watchers.
The job of the new agency, as
outlined by the Soviet Communist
Party newspaper Pravda, is:
"To render active aid to party
and government in fulfillmetn of
the Communist Party program, in
the organization of systematic
checking of the fulfillment of par-
ty and government directives, in
further improvement of the lead-
ership in Communist construction,
in the maintenance of party and
state discipline in Socialist legal-
ity."
Shelepin is considered one of
the most' coldly brilliant men in
the younger bracket of Soviet high
authority. He was directed to put
all party members, party aspirants
and union workers into action.
McCracken Views Economy
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By The Associated Press
UNITED NATIONS-The Soviet
Union was reported yesterday to
have agreed to go ahead with elec-
tion of acting Secretary-General
U Thant to a full five-year term.
The Russians had been expected
to give their approval, but had
been holding off, pending some
agreement on the Cuban problem.
Informed quarters said the ques-
tion of the election was discussed
yesterday by United States and
Soviet representatives during talks
on Cuba.
MOSCOW - Unofficial sources
reported yesterday that Premier
Nikita Khrushchev, in a secret
speech at the recent Communist
Party meeting, approved greater
liberty for Soviet writers. The
sources said Khrushchev approved
the publication last month of a
poem by the popular young Soviet
poet, Yevgeny Yevtushenko, bitter-
ly assailing Stalin. It was said to
have been suppressed earlier.
VATICAN CITY -- Pope John
XXIII's personal physician came
to Rome yesterday and went to the
Vatican where the 81-year-old
Pontiff is stricken with influenza.
* * *
APELDOORN, Netherlands -
Queen Wilhelmina died in her
sleep at her Het Loo Palace yes-
terday at the age of 82. She had
been queen for 50 years, abdicat-
ing her throne in 1948
By ELLEN SILVERMAN
With the prospects of a tax cut
looming large, the facts show that
"the United States tax structure
has something to do with the slug-
gishness of the economy," Prof.
Paul McCracken of the business
administration school said yester-
day.
Indicative of the sluggishness is
the fact that the economic growth
rate is down, unemployment is
high and the cyclical growth since
last year's economic low point has
been the lowest in the last 40
years.
Whereas in the decade of the
"20's" the economy grew at a rap-
id pace, today it is growing at only
under three per cent. And at the
same time, unemployment seems
to stay above five per cent, Prof.
McCracken explained.
Tax Structure
That the tax structure has some-
thing to do with the growth rate
is seen by examining the increase
in government receipts in the per-
iod from the first quarter of last
year to the second quarter of this
year. During this time the in-
creases in the government's re-
ceipts were about 44 per cent of
the increase of the national in-
come.
If 44 cents out of every addition-
al dollar are taken for the govern-
ment "it is not surprising that
private demand is sluggish," Prof.
McCracken said.
Stimulate Economy
Although a tax cut would stim-
ulate the economy by taking a
lesser cut of the national income,
the chances to get it are still not
certain, he added. "Although the
President will propose it the Con-
gress has the right to dispose it
and does not always follow presi-
dential leadership."
Prof. McCracken estimated that
a month ago the chances for such
a cut would be 50-50. A combina-
tion of three groups seems to op-
pose such a cut.
The conservatives dislike the
idea of a federal budget deficit
and a cut could only increase one
which the government will sustain
this year. The liberals "looking
down the long road" see that re-
duced revenue will mean less mon-
ey which can be appropriated for
future programs.
In the last month, however, there
has been substantial improvement
in prospects for a cut, he com-
mented. In the first place, agree-
ment on the need for such a tax
cut has widened. Backers for a cut
include labor unions, the Chamber
of Commerce of the United States,
former President Dwight D. Eisen-
hower and the President's Advisory
Committee on Labor-Management.
There is also a "surprising meas-
ure of agreement on what the cut
ought to be," he said. There is
agreement on the merits of low-
ering personal taxes perhaps a
few percentage points in all brack-
ets. The cost of this would be about
$2 billion per point, Prof. Mc-
Cracken added.
A fair measure of agreement to
cut personal taxes off at 60 per
cent which is not a great income
loss since there are not many peo-
ple in that bracket is also indi-
cated.
Income Taxes
Also agreed upon is the fact that
corporate income taxes should be
reduced by perhaps three percent-
age points.
Questions of whether tax re-
forms should be part of the entire
tax cut issue have been raised.
"Including reforms could snag the
whole issue in Congress. Reforms
mean increasing someone's taxes
and in this vein there would be
violent political argument," Prof.
McCracken explained.
The administration apparently
is now coming to the view of cut-
ting now and reforming later, he
said.
Effect Depends
Of course, the magnitude of the
effect depends upon the magnitude
of the cut. Proposals now range
from not less than $5 billion to not
more than $10 billion. He noted
that a rough rule of thumb shows
that with one dollar cut the na-
tional Gross National Product
would be expected to increase two
dollars.
One problem is the possibility of
the effect of a tax cut on the dol-
lar in international circles. If a
tax cut is interpreted that the
United States "jumped the tracks
of fiscal sanity" and is headed to-
ward inflation there could be a
run on American dollars and a loss
of confidence in them.
Prof. McCracken, however, does
not think that this would be the
case if the whole matter is done
responsibly. More active business
activity in the United States ought
to make for a more profitable
economy and aid halting the cap
ital outflow.
Interest Rates
At the same time interest rates
ought to rise and more businesses
would be encouraged to invest at
home, he explained. The dollar
might be strengthened unless the
interest rates are not allowed to
respond to the pressures of the
economy and in that case ques-
tions about United States econom-
ic policies would inevitably be rais-
ed abroad.
Prof. McCracken remarked that
the Congress would still probably
be politically unsympathetic due
to group pressures from those peo-
ple ideologically committed against
a tax cut. This was shown in 1958,
he said, but there seems to be
more support for a cut now than
there was then.
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CHICAGO LITTLE SYMPHONY
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Thor Johnson,
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January Graduates
Program of music for small orchestra:
Symphony No. 83 in G minor (The Hen) ..............Haydn
The White Peacock, from "Roman
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Concerto in.,8-fla~t maior fo~r I-mmrondOrheshtra------------Handel
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