LASTING TAX
SOLUTION NEEDED
L
Seventieth Year of Editorial Freedom
D~Ait
CLOUDY, RAIN
High-S0
Low--5
Mostly cloudy today with
rain in the late afternoon.
See Page 4
VOL. LXIX, No. 34 ANN ARBOR, MICHIGAN,FRIDAY, OCTOBER 30, 1959 FIVE CENTS
EIGHT PAGES
S R Oilsi ers
By NAN MARKEL average and stood thi:
Michigan's expenditures for higher education "should be large expenditures by both
if educational opportunities here are to be roughly equivalent to education.
those available in other states," a recent University report con- 4) "Roughly half the
cludes.stitutions of higher
The study, compiled by the Institute of Public Administration, legislative appropriatio
Studyr considers axpa
objects to reports that Michigan taxpayers spend more on higher for by Michigan taxpa
education than do citizens in other states. It finds: The report objects
1) Michigan public colleges and universities enroll three times penditure for public hig
as many students as do private Michigan colleges. But in neighbor- the nation's highest.
ing and competing states public institutions' enrollments are less The rate, determine
than the enrollments of private colleges and universities, used by the. Citizens Re,
Ranked Higher expenditures, is based
2) Michigan has ranked far behind the seven competing states 1957), not "state suppoi
and the national average in total expenditures for higher education 5) "Currently Micl
by private institutions. one-half the cost of su
(The seven competing states are Wisconsin, Indiana, Ohio, gan, and in fiscallyear
Illinois, New York, New Jersey and Pennsylvania.) each resident decreased
3) Michigan has ranked only modestly above the national priations to Michigan c
Support
for
Higher
Jiducation
rd among the eight states in per capita
private and public institutions of higher
reported expenditures by Michigan public
education in 1957 were not derived from
ns, but from sources which were not paid
yers."
to figures setting Michigan's rate of ex-
gher education at $25.3 per capita in 1957--
ed by the United States census bureau and
search Council on Michigan's governmental
on "expenditures" (some 190 million in
rt" (about $95 million in 1957).
ligan residents pay somewhat less than
pporting public higher education in Michi-
r '1958-59 the cost of higher education to
by $1.78 because of decreased state appro-
olleges and universities."
6) "Comparatively Michigan ranks only modestly higher than
neighboring states in appropriations per capita to public colleges
and universities."
7) "Measured by appropriations per student, Michigan public
institutions receive somewhat less state support than do institu-
tions in some neighboring states, and only modestly more than the
national average."
U' Expenses Diminish
8) "Despite substantial increased expenditures for higher edu-
cation in Michigan in the past few years, University expenses
constitute a steadily decreasing share of the rising total."
Previous statistics "fail to make the distinction between public
and private education-lumping potatoes and apples together,"
Prof. John Lederle, director of the Institute of Public Administra-
tion, said.
For instance, in Illinois there are a great many medical schools
not supported by the state. In Michigan there are no private
medical schools. But few statistics take this into account, he said.
Over and over, the Institute of Public Administration reiterates
Michigan's dependence on public universities and colleges.
Seventy-seven and a half per cent of all 1957 enrollment in
higher education in the state fell to the state-supported institu-
tions.
Of seven other comparable states, this is the highest-ten per
cent more than Wisconsin, which is next in line.
More Private Schools
Six of these states, excluding Wisconsin, maintain a higher
percentage of private institutions. Michigan ranks over Wiscon-
sin's 43 per cent with 53 per cent private. Indiana is highest with
85 per cent.
So, the report insists, "these circumstances show that Michigan
must support, in public institutions of higher education, a much
greater proportion of the total college enrollment of the state than
do neighboring and competing states because Michigan is much
less extensively equipped with private institutions of higher edu-
cation."
NON-COMPULSORY-The University does not require two years
of ROTC training of entering freshman men, as do many other
large state universities. Movements are now afoot at many of
these other universities to adopt a program similar to that used
here.
Groups in U.S. Universities
Attack CoipulsoryROTC
By PHILIP SHERMAN
The current controversy over compulsory ROTC at Michigan
State University is part of a national trend toward attempted aboli-
tion of the program.
At such universities as California, Lehigh and Wisconsin move-
ments are afoot to drop the required two-year military training re-
quirements. Uusally, agitation is started in the student government
I or newspaper, and proposals are
INFECTIONS':
Educators
'Rap 'Mill
Systems
WASHINGTON OP) -Federal
education officials set out yester-
day to turn the full glare of pub-
licity on "Diploma Mills" - or-
ganizations that hand out college
degrees without requiring much
study to earn them.
Secretary of Education Arthur
S. Flemming told.~a news confer-
ence the campaign is intended to
eradicate what he termed "per-
sistent low grade infections in the
American education system."
Start List
The first step, he said, will be
to draw up a list of all institutions
whichi purport to grant degrees
"without requiring the usual aca-
demic performance."
The Office of Education will
able institutions, Flemming said,
publish the list of such question-
but not until there is careful
checking to avoid doing an injus-
tice.
Enroll 750,000
The federal action was an-
nounced nearly four weeks after
the American Council on Educa-
tion reported that diploma mills
enroll as many as 750,000 students
a year and take in an estimated
75 million dollars a year.
The council - a private organi-
zation with a claimed membership
of 1,046 educational institutions-
said a year-long study spotlighted
at least 200 degree mills operat-
ing in 37 sttaes.
At his news conference, Flem-
ming listed several examples of;
what he called "enterprises illus-
trative of those that do a disserv-
ice to American education."
The examples he named:
The College of Divine Metaphy-
sics, Indianapolis; Neotarian Col-
lege of Philosophy of the Neotar-
ian fellwoship, Kansas City; Mid-
western University Inc., St. Louis;
and Metropolitan University,
Glendale, Calif.
Quick Degrees Offered
Flemming said the Indianapolis
organization offers mail courses
leading to "degrees" of doctor of
psychology, doctor of metaphysics,
and doctor of divinity.
The doctor of psychology de-.
person who may have had no pre-
gree, he said, is conferred on a
vious college work, upon comple-
tion of only two courses, +each of
which can be covered in about 30
lessons by mail.
Legislature
Resumes
Tax
Discussion
Reconvenes,
.
.
,See Interest
In Teaching
Studies Here
Dean Lists Reasons
For More Students
By NORMA SUE WOLFE
"Multiple causation" is the ex-
planation for the sudden jump in
education school enrollment, Dean
Willard C. Olson said yesterday.
With total undergraduate en-
rollment in the school up 15 per
cent over last year and total male
enrollment up 30 per cent, there
must be a variety of motivating
factors, he said.
Among these, Dean Olson listed:
1) "The recent awareness of the
importance of education,
2) "An increase in economic re-
ward,
3) "The uncertainty in the labor
market, and
4) "The facility with which un-
dergraduate students can acquire
financial assistance if they are
going into the teaching profes-
sion."
In the undergraduate division, a
70 per cent increase in male en-
rollment has occurred over the
past two years. But there is still a
majority of coeds matriculated in
education school, Dean Olson said.
.:nd more than, twice as many
University students are going into
teaching careers than did five
years ago, he continued.
The number of provisional teach-
ing certificates granted to the
University's education students has
more than doubled-from a total
of 387 in 1954 to 950 last year.
Graduate interest in education
courses is also increasing. Last
year, the University awarded 596
master's degrees and 25 doctoral
degrees in the field.
Of the undergraduate students,
approximately one-third are going
into elementary and the remain-
der, secondary school instruction.
i,
GOP Senate
Holds Power
'U' LECTURER:-*
Discusses
Economics
By JEAN SPENCER
Thereh isnobprescription for
solving the problem of economic
A backwardness, Prof. Harvey Lieb-
enstein of the University of Cali-
forniadeconomics department said
yesterday evening.
Speaking in Rackham Amphi-
theatre, Prof. Leibenstein gave
three viewpoints on the problem
and possible solutions for it,
The view of "neo-classical grad-
ualism" sees analytical techniques
applied to a narrow range of vari-
ables as a partial answer for eco-
nomic backwardness, emphasizing
utilization of resources and insti-
tutions for distribution to solve
short-run problems.
Seeks Per Capita Rise
In reducing government inter-
ference with free market proced-
ures, the theory seeks to increase
the chance per capita rise in in-
come.
Another explanation of econom-
ic development is the "wage-goods
bottleneck" theory, Prof. Leiben-
stein noted. According to this view,
economy must expand in a bal-
anced fashion and car, progress no
faster than the rate of the slowest
sa:tor.
Thus, if population is heavy and
little land available for agricul-
ture, economic backwardness re-
sults, not from lack of capital but
from lack of land.
Agricultural Revolution
The solution offered, he contin-
ued, is to foster an agricultural
revolution before increasing indus-
trial output, since there could be
no market demand for more goods
until this is done.
Thp t+ird: thenrv ntlned by
made to governing boards for
dropping.
In Washington, Rear Adm. B. A.
Clarey said the determination in'
such cases is always left to the in-
dividual institution.
The Defense Department, ac-
cording to acting personnel policy
director Clarey, will support eith-
er a compulsory or a voluntary
program.
Compulsory ROTC programs are
most prevalent in the land-grant
colleges.
' The Morrill Act, which started
the land grant institution:, it must
be pointed out, never required
compulsory military training.
The situation at MSU is pin-
pointed in a controversial report
of the Committee on the Future
of the University, accepted by the
student government, which pro-
posed dropping the requirement
for the first qugrter next fall.
The committee called compul-
sory ROTC an "intrsion on the
educational process.
See OPPOSE, Page 3
-Daly-Thomas Hayden
RECONVENES--The State Legislature formally returned to the search for an end to Michigan's tax
troubles yesterday. Tax legislation is not expected for two or three weeks.
ECOXNOSMIC PREDICTION:
Expr*-ects More Soviet ,Growth
Although Russia's rapid econ-
omic growth may gradually slow
in the next five to 10 years, she
will still remain well ahead of the
United States, according to Morris
Bornstein of the economics de-
partment.
In a report prepared for Joint
Economic Committee of Congress,
Bornstein estimated Soviet econ-
omic growth at about a seven per
cent annual rate between 1950 and
1958 -- about twice the U.S. rate.
In addition, total production of
goods and services in Russia rose
from one-third to nearly one-half
the U.S. level.
He predicted that Soviet expan-
sion may, in the next decade, de-
cline to an annual' rate of six or
six and one-half per cent, which
'THE TOWN CRIER' APPEARS:
Students Pioneer Paper on Mackinac
means that by 1965 Russia would
pass the half-way mark in the ef-
fort to match U.S. production.
Bornstein pointed to several fac-
tors accounting for the Soviet Un-
ion's recent increase in growth
rate, notably the fact that Soviet
investment has been directed
mainly towards heavy industry
rather than to agriculture, hous-
ing or consumer goods and serv-
ices.;
The industrial work force has
grown rapidly, he said, reflecting
population increases rather than
a shift from farm to factory em-
ployment. Furthermore, adoption
of Western and Soviet techniques
has been included in continuing
technical progress.
Production Increases
Since Stalin's death, agricultural
production has "increased notab-
ly." This results from an increase
in cropland, greater agricultural
investment and greater production
incentive for peasants, Bornstein
claimed.
Behind all of these lies the de-
liberate Soviet policy of restrain-
ing production of consumer goods
to achieve their dual objectives of
a rapid economic growth rate and
a high level of military spending.
But Bornstein backed up his
prediction of a'coming decrease in
thie former with the claim that
Khrushchev's promises to aid con-
sumers may involve some shift in
the type of investment to be made
over the next decade. Exploitation
of natural resources will require
heavy invesmtent, as will replace-~
ment of obsolescent equipment.
Work Force Declines
Heavy wartime casualties will
have their effect, reflected in a
lower grwth ite for the indus-
Eastern Europe and under-devel-
oped nations outside the Commu-
nist bloc.
But there will be no dramatic
reduction in the rate of invest-
-ment nor marked changes in its
composition, due to the Soviet
leaders' continued interest in
maintaining high economic growth
rate.
LSA Group
Asks Action
Procedure for meetings with the
University curriculum committee
and the student committee of the
education school were discussed
yesterday by the literary college
steering committee.
Sanford Holo, '60, proposed sev-
eral joint meetings with the Cur-
riculum Committee and a system
to have one to three steering com-
mittee members serve in a liaison
capacity at other meetings of in-
terest..
Next week Carol Hgndschum-
aker, '60E, will sit in on the
steering committee meeting. As
president of the education school
Student Council,' she will answer
questions concerning curriculum
posed to her by steering committee
members.
The curriculum of the education
school comes under the scope of
the committee because approxi-
mately '500 of the total 7,500 liter-
ary school students take up teach-
ers' programs, the committee
decided.
The topic of discussion switched
to University growth and the
On Proposals
Williams Asks Speed
As Parties Disagree
On Financial Needs
LANSING (A) -- The Legislature
cautiously came to gripsswith
Michigan's newest cash crisis yes-
terday.
Lawmakers resolved to meet
continuously, except on week-
ends, until a solution is found.
The best guess is that it will take
two to three weeks.
Already 70 million dollars be-
hind in payment of bills, the state
is further losing ground at the rate
of 10 millions monthly.
GOP Holds Power
Majority Republicans held the-
whip hand in framing measures to
offset the revenue loss from the
invalidation of the 110 million dol-
lar use tax increase voted Aug. 29.
This was readily conceded by
Gov. G. Mennen Williams in a
special message that refrained
from any specific tax recommen-
dations and strongly urged speedy
action.
First GOP caucuses produced
little more than a decision to, set
up a 12-member joint Senate-
House committee to break ground
on a solution. A long list of tax
possibilities was only scanned.
New Proposal
However, one new tax proposal
bobbed up to go along with a list
of more than two dozen possi-
bilities drawn up in advance - by
state revenue officials and trans-
mitted to the legislature by Wil-
liams.
Thrown out in the Senate GOP
caucus, it called for quick raising
of up to 35 million dollars by put-
ting a $10 tax-a one-shot affair
-on the privilege of operating a
motor vehicle.
If adopted, the levy would prob-
ably become part of a patchwork
program including other "cats and
dogs," such as new or increased
levies on beer, property transfers,
tobacco, telephones and the like.
Hold Vets' Fund
Republican Senators, while con-
ceding the need to utilize cash
locked up in the Veterans Trust
Fund, nevertheless gave little heed
to Williams' urgent plea for
prompt action.
As to the overall outlook, Wil-
liams told lawmakers:
"Today we are forced to legislate
taxes 'under the brutal pressure
of necessity'. Our state services
are threatened with stoppage, our
credit is endangered and our bills
are piling up with no prospect of
payment."
He reiterrated his preference
for an income tax solution but
said he was prepared to approve
any bills that came to his desk
other than that would be "obvi-
ously unconstitutional or grossly
inequitable."
Mui1 cGrUDn
By SUSAN FARRELL
Mackinac Island, site of so many pioneering ventures, was the
scene of yet another one last summer.
The Town Crier, most recent addition to the University's Journal-
ism Department's internship program, was published there.
Earl Gottschalk, Jr., and William Bradford, graduate journalism
students, tested the theories they had learned in four years of classes
in a weekly routine of writing, ad selling, bookkeeping, typesetting,
cart driving and newspaper selling that produced the eight-page
Town Crier every week last summer.
Prof. Maurer Confers
Prof. Wesley Maurer, chairman of the University's journalism de-
partment and publisher of The Town Crier, visited the Island occa-
sionally to confer with the editors and make suggestions.
"Our decisions were pretty unanimous," Prof. Maurer said. "But
the students took full policy responsibility."
One of the first problems was an analysis of their audience, com-
........ ..... .