STATE LOSES ON LATE
APPROPRIATIONS
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YI e
Seventieth Year of Editorial Freedom
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VOL. LXIX, No.56
ANN ARBOR, MICHIGAN, WEDNESDAY, NOVEMBER 25, 1959
FIVE CENTS
SIX
Prof. Young Recommends
Local Community College
By HENRY LEE
"Washtenaw County needs a
two-year community college," ac-
cording to Prof. ,Raymond J.
Young of the education school.
Prof. Young supported this
plan yesterday at Ann Arbor's
Board of Education meeting.
He is part of a committee con-
listing of University Vice-Presi-
dent James A. Lewis, chairman of
a Chamber ;f Commerce sub-
committee studying the need for
s community college; Prof. Har-
ian H. Bloomer of the speech de-
partment and former president of
the Board of Education who ori-
ginally proposed the idea last
February; William Blott, Cham-
ber of Commerce secretary; and
James McDonald, another mem-
I ber of 'the C of C committee.
Prof. Young expressed hope
that oether organizations and
school boards in the county would
join in forming this project. He
advocated a group of lay people
to organize the school plan under
supervision of the educators.
Functions Differ '
"The purposes, functions and
oatjectives will be different than
those of the University," he point-
ed out. For example, other com-
munity colleges offer terminal
training in vocations and tech-
nologies in such fields as medical
. !
Neurologist
Dies at Home
Dr. Edward Austin Cary, 35-
year-old neurology instructor and
chief of the neurology staff at the
Veterans' Hospital, died unexpec-
tedly yesterday in his home.
An autopsy is being performed
to determine the cause of death.
He had held his position with
the Veterans Hospital full-time
from 1953 to 1957 when he began
serving . part-time and entered
private practice in Ann Arbor. He
left.private practice last July and
returned full-time to the Veter-
ans Hospital.
Dr. Cary was born February 9,
1924, in Beaumont, Texas. He took
his B.S. and M.D. degrees at Tu-
lane University and came to Ann
Arbor in 1947 where he served his
internship and residency at the
University until 1953.
Prof. Russell De Jong, chairman
of the .neurology department,
said, "Dr. Cary was a very capable
physician and neurologist. He was
very well liked and highly regard-
ed by his colleagues and associates
and ,will be -very .much missed by
all those who have worked with
him."
Dr. Cary served in the Navy as
an enlisted man from 1942-45, and
in the Naval Reserve Medical
Corps from 1950-52.
He was a member of Phi Beta
Kappa, the American Academy of
Neurologists, .the W a s h t'e n a w
C o u n t y Medical Society, the
American Medical Association and
the liichigan State Medical So-
ciety. j
Dr. Cary leaves his wife, Nora
Carroll Cary and four children,
Austin, Kittredge, Leigh Carter,
and Page Collins, his mother in
New Orleans, and a sister, Mrs.
S. B. Spickney of Pittsburgh, Pa.
Funeral arrangements are being
completed by the Muehlig Funer-
al Home..
assistance, art and design, air- .
craft mechanics, ar conditioning E
and heating and electronics. {1
Prof. Young suggested Ann Ar-
bor as the location for a Washte-
naw County College because at#
least 40 per cent of the potential ,
students live there. The rest of I
the enrollment would come from
within a 25-mile radius of Ann
Arbor, he predicted.- c
He said part of the program
would be like the University's to7
allow students to transfer at the4
junior level, after completing ini-
tial training.-
Include Liberal Arts s
A balanced liberal arts program
would be included in the two-year
plan.
"Improvements in technology
and 'inesing 'complexity of
equipment have necessitated de-
mands for greater knowledge and
skill in the various vocations,"
Prof. Young asserted.
He cited the agricultural sales-
man who needs to understand the
functionings of the equipment he
sells. "The background provided
by the community college is suffi-
cient, while the university educa-
tion is not necessary for such an
endeavor."
The state has been having fi-
nancial problems recently. The
board asked if establishing a new
college 'would be feasible in view
of current problems. Prof. Young
explained it would take little ef-
fort if the plan were supported by
the whole county.
Earmarked Funds
In the present tax structure
there is a section of the schools'
incomes that could be earmarked
for the community college. Prof.
Young added, "It would not di-
lute the support for the public
schools if this idea could be ef-
fected."
Prof. Young noted that a sur-
vey is now being made by the
Chamber of Commerce. Herb Es-
tes, Arthur Galagher, and Uni-
versity. Vice-President James A.
Lewis have prepared a question-
naire to sample the reaction to
the plan for a community college.
U.S., R.ussia
RI-each Pact
WASHINGTON V)-The United
States and Soviet Russia agreed
yesterday to exchange informa-
'tion in the field of peaceful uses
of atomic energy, including pos-
sible construction of a super atom-
smasher.
John A. McCone, chairman of
the Atomic Energy Commission,
and Prof. V. E. Emlyanov, head
uof the U.S.S.R. administration for
l utilization of atomic energy, signed
a memorandum poviding for the
exchange of non-secret informa-
t ion.
In addition, the two nations
will make all reports and findings
available to the' International
Atomic Energy Agency.
The memorandum deals mainly
with general aims but does specify
that initial explorations will in-
elude study of the design and con-
struction of "an accelerator of a
.large and novel type." This is a
reference to a super atom-smasher
which could become the principal
research tool of its kind for the
whole world.
The survey is being conducted
among business and industry in
Ann Arbor, Ypsilanti, Chelsea,
Dexter and other nearby areas.
"But even if the surveys proved
the need for this institution, I
would not recommend establishing
such a community college unless
at least 200 would. be enrolled by
the second year," Professor Young
claimed.
He also noted this school would
need an ultimate enrollment of
about 500 in order to provide an.
adequate program. "The surveys
should serve as a valuable aid in
determining the student demand,"
he added.
Court Losest
Jurist-Author
Charges
Insurance
Frauds
NEW YORK (P) - State Atty.
Gen. Louis J. Lefkowitz said yes-
terday fraud jeopardizes deposits
of more than $100 million at eight
savings and loan associations
across the country.
He named three institutions in
Chicago, two in Idaho and one
each in Maryland, Utah and
Washington.
Lefkowitz said the jeopardy to
deposits stems from the fact that
they are insured by a firm, oper-
ating out of a one-room office in
Tangier, Morocco, which does not
have adequate assets 'to guaran-
tee them,
D. Spencer Grow, president of
the Idaho and Utah firms, said in
Provo, Utah, that LefkoWitz'
cha-ges were ridiculous.
He said his firms have not dealt
with the Morocco insurance agen-
cy for almost two years, and are
currently insured with the Securi-
ty Financial Insurance Corp., of
Baltimore
He added that Lefkowitz is sup-
ported by eastern banking inter-
ests who are opposed to invest-
ment money going west.
Lefkowitz identified the Moroc-
co concern as the International
Guaranty and Insurance Co.
In addition, the attorney gener-
al declared, the savings and loan
associations "knew or should have
known that false and fraudulent
statements were contained in
their own promotional literature
and in the promotional literature
of International."
Make Allegations
Lefkowitz made his allegations
at a news conference and in court
papers which he used to obtain
an order for examination of 46
witnesses in a probe of the situ-
ation.
Lefkowitz said the institutions
solicted deposits through mail
and newspaper advertising offer-
ing a five per cent return. Some of
this solicitation was in New York
state.
The attorney general said he
began to receive letters about a
year ago from New Yorkers who
t h o u g h t the representations
"looked too good to be true." His
office then launched an inquiry.
Identified 'McGrath
Lefkowitz said that a news re-
lease put out by the International
Guaranty and Insurance Co. in
April 1958 identified J. Howard
McGrath as chairman of the
firm's trustees. McGrath :is a
former United States Attorney
General and former Governor of
Rhode Island.
However, Lefkowitz said, Mc-
Grath's attorney reported by let-
ter that McGrath never was a
trustee, never acted as one and
never had any financial interest
in the company.
McGrath's attorney, according
to Lefkowitz, said that if Mc-
Graths' name ever were used "it
was without his consent or ap-
proval."
Lacst Issue
With this issue, The Daily
ceases publication for the
Thanskigiving recess.
Publication will resume Tues-
day morning.
Anxiety for Quick Break
In Tax Situation Aper s
Fun ds Sent
For Arms
Ta er Off
WASHINGTON (A') - Overseas
defense spending, a major reason
for the current, deficit in Uncle
Sam's international accounts, was
reported yesterday to have tap-
ered off from last year's peak rate.
The Commerce Department said
this type of spending .totaled $3,-
400,000,000 in 1958 but has since
declined to an annual rate of $3-
100,000,000f.
Defense outlays have been a
major factor behind the recent
increase in the gold and dollar
reserves of Japan and Western
European countries, the report
said. It noted that United States
military spending is second only
to private trade and merchandise
as a source of dollar earnings for
foreign countries.
This category of spending now
is under review within the govern-
ment because it contributed to the
1958 United States deficit of $3,-
400,000,000 in international trans-
actions.
Agencies Debate
The Pentagon and financial
agencies are debating whether to
try whittling down such spending
to help ease the deficit, which
gives foreign countries greater
claims against United States gold.
Secretary of the Treasury Rob-
ert B. Anderson and some other
top officials are concerned be-
cause these claims now almost
equal the United States gold
hoard.
Even though overseas military
outlays have dropped this year,
the United States deficit in in-
Iternational transactions has ris-
en to an estimated four billion
dollars,
Program Declining
In past years, much of the mili-
tary spending was for equipment
given to allied forces. However,
this program is declining.
Looking ahead, the Commerce
Department report said future
outlays will reflect more closely
the deployment of United States
forces abroad. Among the items
under review within the Admin-
istration is the possibility of call-
ing hmoe some United States
troops,
Spending Rises
The report said overseas spend-
ing by service personnel and their
families has risen for five straight
years and last year accounted for
$877,000,000 of the total. How-
ever, it said construction of bases
in Morocco, Spain and several
other countries is virtually com-
pleted and this type of spending is
declining.
On .the other hand, it noted
that West German and Japanese
contributions t-o w a r d United
States occupation costs have vir-
tually ended, with the result that
this country has had to take up
the slack.
From 1953 until 1958, the re-
prot said, overseas spending by
the military rose from 2'/ billion
dollars to $3,416,000,000.
Launch Atlas
House GOP
Rejects P'lan
For Solution
Democrats Express
Regret, Lash Idea
Of Nuisance Taxes
LANSING (P) - Stirrings of
anxiety for a quick break in the
legislative impasse over taxes ap
peared Yesterday.
But no concrete developments
followed.
House Republicans rejected a.
suggestion by their leader, Speak-
er Don Pears; that the GOP ac-
cede to Gov. G. Mennen Williams'
urgings for an income tax solu-
tion.
Pears proposed that Republi-
cans insist on only two things --
that Democrats sponsor the tax
bill and provide the bulk of votes
for it, leaving only a minimum of
Republican support required.
But after a two and one-half
hour caucus, Pears reported the
GOP consensus was against the
plan. "House Republicans are not
ready for it now," he added.
Directs Committee
Pears said the caucus directed
that a bipartisan committee be
set up to work out an answer that
both sides could support.
After a separate caucus, Rep.
Joseph 3. Kowalski (D-Detroit),
minority floor leader, said Demo-
crats were "bound and deter-
mined to get a tax settlement by
Dec. 1."
"Otherwise, another miontf's
revenuerwillebe lost while we sink
deeper in debt," Kowalski said.
He said Democrats were ready to
meet with Republicans anytime,
and the sooner the better.
Hope for "Slutoin ',.
Both sides in the House seemed
to hope a solution somehow would
take form in the Senate last
night. ,.
A recess until9 p.m. was agreed
on pending a report from last
night's Democratic and Republi-
can Senate huddles.
Blasts against elements in the
GOP Senate emergency nuisance
tax package came yesterday from
two directions.
Riddles Bill
The> 40million dollar services
tax 'bill, heart of the program,
was riddled by state Revenue
Commissioner Louis M. Nims, who
said it was unconstitutional and
administratively unworkable.
Joseph L. Wisniewski, state' li-
quor control commission chir-
man, said he feared loss of tax
revenue t9 Ohio. and an upsurge
in bootlegging if GOP Senatori
had their way and doubled the
four per cent excise tax on whis-
key.
"It is my considered opinion,'
he said, "that if thetax is to be
increased the number of stills in
operation will increase and loss te
the state through sale of illegal
alcoholic beverages will be ines-
timable."
JOHN D. VOELKER
.. ,resigns to write
LANSING (P)-Justice John D.
Voelker said yesterday he will re-
sign his state Supreme Court post
to devote his full attention to writ-
ing.
He called it a psychological im-
possibility for him to abandon
novel writing.
Voelker wrote the best-selling
novel "Anatomy of a.Murder"
which was later adapted into a
popular motion picture. He re-
portedly grossed $500,000 from the
novel and the picture.
In a letter to Gov. G. Mennen
Williams, the 56-year-old jurist
said he would give up his $18,500
a year post after Jan. 1.
Initially, he said, he thought he
could continue to serve the court
and write in spare time.
"I am now satisfied this idea
will not work.
"I find it increasingly difficult
to live, as it were, two lives-one
as a justice of one of the busiest
courts in the land, and the other
as a writer who finds himself in-
creasingly immersed in characters
taking shape in his mind."
His letter to the Governor raised
speculation that Atty. Gen. Paul
L. Adams will be elevated to the
prospective vacancy.
Adams was a contender for the
post to which the Governor named
Voelker in 1956.
Like Voelker, who lives in Ish-
peming, Adams is from the Upper
Peninsula-Sault Ste. Marie. Both
are Democrats.
--Associated Press Wirephoto
PREVIEWS MOON SHOT-An Atlas rocket, like the one expected
to carry the United States' next moon shot, was successfully
launched from Cape Canaveral yesterday. The warhead landed.
within one-half mile of the target after a 5,000-mile flight. An
Atlas-Able is already racked up on a neighboring launching pad.
to fly the 375-pound moon satellite into space, the Atlas being the
first stage of this rocket. The moon's position will, be favorable
s for an orbiting try during a four-day period to start tomorrow.
WHILE NEGOTIA TING:
Se nate Report Counsels
U.S. To Boost Defenses
WASHINGTON {) - The United States was urged by a pri-
vate research group last night to bolster its military strength and
defense alliances while urgently negotiating for arms reduction and
control.
A report prepared for the Senate Foreign Relations Committee
said Soviet Premier Nikita S. Khrushchev's proposal for full disarma-
ment may have been designed as propaganda but it "has to be taken.
seriously and fully explored."
The report was prepared without cost to the Senate group by a
committee of the Council on Foreign Relations headed by Henry M.
Wnr.si,ton, rmer Bron Unv.TTiersity
FROM ECUADOR UNIVERSITIES:
Foreign Students Say U.S. Ignores South America;
By JEAN HARTWIG,
Twelve student leaders from six universities in Ecuador accused
the United States of ignoring countries of South America,
The students, who are visiting the University this week in con-
junction with a tour of the United States, said Americans should for-
get the idea that their country and Europe are the only important
ones and instead should realize that other, less developed countries
also need help.
Speaking in Spanish which was translated by Roque Bustamante,
leader of the group, one member added that people in this country are
obsessed mainly with the 50 states and the "big problem with Russia.",
He advocated aid to needy nations, but called for technologists
and machinery to be sent instead of just money. He also felt an in-
creased exchange of students between the countries would be good and
noted the Central University of Ecuador at Quito will offer several"
scholarships to students from the United States.
Emphasizes Economic Potential
Another member of the delegation urged the United States to
stop considering Latin America merely as a producer of raw materials
.4 r.,nn4 +he.ir nftia+i fi' or evpnnmnar nn econnmv eanivalentI
Wriston, former Brawn University
president. It was made public by
Sen. J. William Fulbright (D-
Ark.), chairman of the Senate
committee.
While this country pursues ev-
ery avenue of negotiation, the
authors said, it must have, mili-
tary power to support its foreign.
policy.
Requirements Important
It said there are military re-
quirements important enough "to
demand a margin of safety with-
out which the nation will be in
giave danger."
Among these, the report enu-
merated:
1) The building up, mainten-
ance and protection of "retalia-
tory power sufficient to make un-
acceptable to the Soviet and Chi-
nese Communist leadership the
cost of launching a major attack
on the free world."
2) The possession of mobile
forces capable of selective use
with those of other nations as a
means of "deterring aggression
that is less than a major attack
and of coping with it if it occurs."
To Insure Progress
Ce leb ration
App roved
LEX:INGTON, Ky. tVP)-Univer-
sity of Kentucky President F}rank
G. Dickey said last night he has
suggested that instructors not
check the roll at classes today.
This would allow students to
take a football victory holiday
which the faculty had voted not
to grant.
Noisy gatherings by demonstra-
tors protesting the faculty deci-
sion fizzled out yesterday as state
troopers stood by with tear gas.
The students also demonstrated in
large numbers Monday night...
Asked if the demonstrators were
gaining their goal, Dickey said:
"Let me put it this way-this is
merely a suggestion to the faculty.
It's a matter of choice to the stu-
dents.
"For those who feel they are
doing well in school, if they take
today off they won't suffer a double.
penalty."
' 7 ma ie-t e n f: ih mai ~tyn
Hits Bills
Among other things, Nims said
the tax on services as now writ
ten would hit doctor.bills,tuitio
of college students, prescription
funeral services, stockbrokrers, le
gal services and a wide. varietyo
other activities.* ;
In passing Nims' report slot
to Sen. Frank D. Beadle (R-St
Clair), GOP majority leader, WIl
Hams observed:
"Possibly the tax p a e k a g
achieves somewhat different ri
sults from those he understoc
when he reported the package i
me"
Discharged
Stikers' Votes
WASHINGTON VP) -- The Na
tional Labor Relations Board de
cided that strikers discharged b
employers for cause, such as pilc
eting violence, will be considers
ineligible to vote on bargainin
rights elections.
Congress recentlv ernafld1
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