TAE MICHIGAN D AILY G!?TRTim Av ikvt%%rlw%&nlL,-n ft t i tt,,^ as av aav~f yrt ar~is. L 'EJU XY, NOVEBER 2 4, i1963 I: (ennedy Led Nation Through Domestic Foreign Crises (EDITOR'S NOTE: cond of a two-part ennedy years.) This is the series on the By The Associated Press Government conflicts with the nation's business community and American achievements in space also highlighted the Kennedy years. The nation's business communi- ty gasped in April, 1962 when he cracked down on United States Steel Corp. for announcing a $6 a ton- price increase after signing a wage agreement with the United Steelworkers Union. . The administration had been following the negotiations for a contract with much interest. It did not want one which would in- clude a large wage increase in the belief such an agreement would force a price increase and be an inflationary threat to the coun- try's economic health. Price Stability A modest contract was reached and the then Secretary of Labor Arthur J. Goldberg hailed it as a contribution toward price stabil- ity. When Roger M. Blough, presi- dent of U.S. Steel, personally ad- vised Kennedy of the price in- crease, Blough touched off 72 hours of governmental activity which he and his colleagues could not have expected. During that period four anti- trust investigations of the steel industry were conceived by gov- ernment officials, a bill to roll back the price increase was seri- ously considered, legislation to im- pose price and wage controls on the industry was discussed, the FBI questioned newspapermen in the dawn and the Defense De- partment--biggest buyer of steel in the nation-began to divert purchases away from United States Steel. I Double-Cross Kennedy In a cold fury-aides said Ken- nedy felt he had been double- crossed by the industry-Kenne- dy denounced the increase as "wholly unjustifiable and irre- sponsible defiance of the public interest." He said the steel men had shown "utter contempt for their fellow citizens." United States Steel finally backed down after several major companies said they would hold the price line and Bethlehem Steel, second largest steel company, re- scinded the price rise it announced following the United States Steel move. Blough and Kennedy met at the White House again. The meeting was called "useful and cordial." The President told a news con- ference "this administration har- bors no ill will against any indi- vidual, any industry, corporation or segment of the American econ-f omy." Upset Remains Despite this assurance, busi-1 ness remained upset by what its leaders called government inter- ference in its operations. The administration quietly ac-I cepted selected price increases in the steel industry in April 1963 although reiterating its opposition to any across-the-board rises. "I opposed such an increase last year, I oppose it now," Kennedy said. Some quarters called a break in the stock market May 28, 1962 a reflection of lack of confidence on the part of business. Secre- tary of the Treasury Douglas Dil- lon denied it. He said the break showed "a weakening confidence in the stock market"-that is, in the high prices that prevailed be- fore the break. Sell Holdings The stock market said in a special report that the May plunge was touched off largely by the investment public's selling of long term holdings. By early November the popular stock averages had recouped all the ground lost in the precipitous drop. Investors moved back, this time interested in stocks which showed good earnings and paid good dividends. A four-year-old dispute between the nation's major railroads and the unions over work rules landed FOR SALE 1963 Karmann Ghia Convertible Radio, Heater, White Walls Call NO 8-6345 in Kennedy's lap during the sum- mer of 1963. To Arbitration With neither side able to ac- cede to the other and a nationwide transportation strike seemingly as- sured, the President sought legis- lation from Congress. There were protestations about such a course but Congress passed a bill provid- ing for arbitration of the two principal issues-whether diesel locomotive firemen were necessary in freight and yard service and the size of train-service crews. It also barred a strike for 180 days. Kennedy followed the United States' efforts to conquer space closely. Russians Pioneer The Russians, who had pioneer- ed in space exploration, had sent two men into space, one on a 17 orbit mission, before Lt. Col. John H. Glenn boosted American morale by circling the earth three times on Feb. 2, 1962. He was followed by Lt. Cmdr. Malcolm Scott Car- penter of the Navy who made an- other triple round-the-earth flight on May 5. On Oct. 3 Navy Cmdr. Walter M. Schirra, Jr. orbited the earth six times. But before he did so the Russians had sent two men into twin orbits, one for four days and the other for six. The longest American space flight ended on May 16, 1963. It was a 22-orbit 34-hour flight by Air Force Maj. Gordon Cooper. Tandem Flight This achievement was countered by Russia the following month. The Russians separately launched a man and a woman, first of her sex, into space. The ,man circled the globe more than 81 times in 119 hours, the woman orbited 48 times in 71 hours. Kennedy had expressed hope that the United States would land on the moon by 1970. He suggest- ed that Russia and the United States make a joint expedition but Russia rejected the idea. There were varied estimates on how the President fared with Congress, which was controlled by his own Democratic party. Ad- ministration leaders claimed that the 87th Congress which met in 1961 and 1962 adopted 70 per cent of the President's program. Sen- ate Minority Leader Everett Dirk- sen (R-Il) said, "Never in the history of the nation has the Con- gress spent so much time accom- plishing so little as it did in the second session of the 87th Con- gress." The 87th Congress rejected his proposals for federal aid to public elementary and secondary schools, health insurance for the aged un- der Social Security, a cabinet de- partment of urban affairs, stiff controls on production of surplus farm crops and stand-by author- ity to initiate public works proj- ects and reduce income taxes to combat economic recessions. It passed the Trade Expansion Act which gave the President an unprecedented grant of new tar- iff-cutting powers to use as a bar- gaining lever for mutual tariff concessions by the European Com- mon Market and other non-Com- munist countries. By executive order Kennedy es- tablished a Peace Corps to aid underdeveloped nations and Con- gress appropriated money for its existence. Democrats continued in control of the 88th Congress which open- ed in January, 1963. The 1962 off- year election increased Democrat representation in the Senate from 64 to 68, reducing the Republican minority from 36 seats to 32. There were 259 Democrats in the House against 176 Republicans in con- trast to 261 Democrats and 175 Republicans in the 87th Congress. Before the 88th Congress were two pieces of legislation which Kennedy considered "musts." They were the sweeping civil rights bill and a broad tax reduction program which the President said was need- ed as a spur to the economy. After much wrangling and ma- neuvering, a civil rights bill was reported out of the House Judi- ciary Committee with bipartisan support. Prospects of House adop- tion appeared good, but there was opposition in the Senate and a matter of time that cast a shadow. The tax reduction program also had critics who contended it should be coupled with a budget reduction. The House adopted a bill which gave individuals and corporations tax relief in a two- step program beginning in Janu- ary, 1964. SERIOUS STEPS-From the start of his career as the nation's chief executive, President John Fitzgerald Kennedy conferred with world leaders, past and present. In this Pulitzer Prize win- ning photograph, he discusses his office with former President Dwight D. Eisenhower. AT THE UN-President Kennedy appeared before the United Nations General Assembly twice, once in 1961 and once this September. This year he praised the "atmosphere of rising hope" for world peace generated by the nuclear test-ban treaty and called for a joint United States-Soviet manned expedition to the moon. Photographs by the Associated Press LATIN AMERICA-Alliance for Progress in Latin America has been a firm policy since President Kennedy became chief executive. Here he re- emphasizes the nation's oommitments at the 150th anniversary of Venezuela's independence. EXPRESSION OF CONFIDENCE-Soon after the tragic death of another leading world figure, UN CONCERN FOR AFRICAN DEVELOPMENT-In July, President Kennedy compared Tanganylkan Secretary-General Dag Hammarskjold, President Kennedy flew to New York. His mission: to President Julius K. Nyerere (left) to Washington and Jefferson. "We are also a revolutionary express United States faith in the continuing ability of the UN to deal with world problems. His trip country, and a revolutionary people, and though many thousands of miles separate our continent provided a strong boost for then Acting Secretary-General, U Thant (above). from Africa, today we feel extremely close," the President once told a group of African diplomats. ii "ICU BIN EIN BERLINER"-Only five months ago the Presi- dent went to Germany to reaffirm United States commitments and issued this welcome. The crowds who cheered him then, poured into the streets again Friday in stunned silence and tears. New Chancellor Ludwig Erhard (right), who accompanied him then as economics minister, will attend the funeral tomorrow. A HAPPY PARADE-In June, 1962, President Kennedy paid a NATO POLICY--The United States pledges strengthened con- state visit to Mexico, where crowds estimated at more than one ventional and nuclear military forces in Europe, President Ken- million people turned out to cheer him. In spite of past tensions nedy told the military committee of the North Atlantic Treaty between the United States and Latin America, "we now know Organization soon after he took office. Lord Louis Mountbatten where we are going - and we are on our way," he declared. of Great Britain (right) looks on. ISA CULTURAL COMMITTEE presents DR. ANGELL speaking on "Cultural Change for a World Society- Is It Possible?" Tuesday 4:00 Nov. 26 Multi-purpose room, UGLI ,) IPTITINMC no nnvmnilnhlo fnr +he , _, . :.;:. > _ .: