THURSDAY, NOVEMBER 29, 1962 THE MICHIGAN DAILY 'P' * i' 'm v ,-tqn a Vl THURSDAY, NOVEMBER 29, 1962 TIlE MICHIGAN DAILY rturinn ju. 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note could be taken that Soviet missiles have been removed from Cuba, and the United States naval quar- antine is no longer in effect.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. r 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 IL !1 G. 0 ' ._ ,..:...s..w . j Y. world News Roundup NOW! You Can Record Anywhere with a Pocket Si ze 3 , . ; ' <=~-TAPE RECORDER So small it will fit into a brief case or auto glove compartment. The Craig Pockette tape recorder needs no electricity -it's battery operated. The Pockette goes where you go - business trips, family gatherings, school lectures, party fun. SEE IT NOW! Price includes leather $ 9 case, full tape reel, microphone, earphone. 5 Product of Craig-Panorama, Inc. Hi Fi & TV Center 304 S. Thayer (Next to Hill Auditorium) 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. For Lol! It bath returned campus magazine of humor4 Coming soon-Watch for it ! 4 r AUS IN DIAMOND CORPORATION 1209 South U. 663-7151 .... CHICAGO LITTLE SYMPHONY I ---- - Thor Johnson, Conductor I I 'U January Graduates Program of music for small orchestra: Symphony No. 83 in G minor (The Hen) ..............Haydn The White Peacock, from "Roman Sketches," Op. 7, No. 1........ ........... Griffes Concerto in.,8-fla~t maior fo~r I-mmrondOrheshtra------------Handel r I i U