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Seventieth Year of Editorial Freedom
VOL. LXX, NO. 59 ANN ARBOR, MICHIGAN, THURSDAY, DECEMBER 3, 1959 FIVE CENTS
SIX PAGES
1Reds M ay Change
Economlc Setup
Bornstein Sees Decentralization;
Reliance on Prices for Regulators
By JEAN HARTWIG
The Soviet Union economic system may move toward increased
decentralization and greater reliance on prices in the future, Prof.
Morris Bornstein of the economics department said last night.
Speaking at a political science roundtable, Prof. Bornstein pre-
dicted a further shift in decentralization of economic planning and
a possible reliance on prices instead of physical allocations of com-
modities as economic regulators.
Through increased decentralization the Soviets hope to pass re-
sponsibility from the central planning comnnission in Moscow to re-
SE
TE
p
SSES
REDUCED
BU
.;
Cagers Fall
To Panthers
In Opener
Special to The Daily
PITTSBURGH - Michigan's
varsity basketball team lost its
season opener to Pittsburgh last
night, 73-57, before a slim crowd
of 1,120 at the Pitt Field House.
The game held no highlights
for the Michigan squad as it
trailed all the way.
Pittsburgh jumped off to an
early lead and dominated the
play throughout the game.' The
fIrst half ended with the Wolver-
ines trailing, 30-22.
The second half was a near
repetition of the first. The Pan-
thers started off fast by increas-
ing their lead to 14 points. Mich-
igan then made a slight comeback
to cut Pitt's lead to only seven.
But the Panthers again turned
on the steam and increased their
lead again, this time to 16 points,
,which was the final margin of
victory.
Cold shooting and lack of
height were the prime factors in
Michigan's loss. The Wolverines
hit on only 32 per cent of their
shots, while Pittsburgh made 41
per cent of its attempts.
Although Michigan out-re-
bounded the Panthers 49-40,
Coach Bill Perigo said "we should
have been better on the boards."
John Tidwell, one of the finest
sophomores in the Big Ten last
See PITT, Page 6
Hatcher Urges
Fight Against
Youth Crime
President Harlan Hatcher urged
an attack on the, causes of juvenile
delinquency before the annual
Congress of American Industry
yesterday.
He compared the defective hu-
man product represented by Ju-
venile delinquency with a defective
industrial product. Hatcher then
said that any company with a
high percentage of defective pro-
ducts would spend whatever money
was necessary to overcome the
waste and loss.
In completing the analogy, he
declared the research into causes
and conditions of delinquency
must be broadened.
Mentioning some causes, he be-
moaned long exposure to the
"great mass media of television,
cheap magazines and rock-and-
Sroll Jiukeboxes." He added that
with the TV dramas featuring
violent behavior and anti-social
behavior, human life and dignity
have become vulgar and trifling.
The transfer of authority from
adults to gangs has also contrib-
uted to the delinquency of youth,
Hatcher said.
Plan Debate
On Tax Crisis
The Michigan tax crisis debate
moves from the floor of the Legis-
lature to the Multipurpose Rm. of
the Undergraduate Library at 7:30
p.m. today.
The debate will feature Re-
publican senators Clyde H. Geer-
lings of Holland and Paul C.
Younger of Lansing and Demo-
cratic senators George C. Steeh of
Mt. Clemans and SBasil Brown of
Detroit. Geerlings is chairman of
the Senate tax committee.
gional authorities, he said. In this.
way, planning of details would be
done on a level much closer to the
specific area, freeing c e n t r a l
authorities for more comprehen-
sive policy-making.
Adds to Decentralization
Another factor that has in-
creased decentralization in the
past is political. Premier Nikita S.
Khrushchev's strength lay in the
regional party organizations while
his opponents had their supporters
in the central bureaucracy, Prof.
Bornstein said.
Decentralization weakened the
position of his opponents and in-
creased his influence.
Explaining that the Soviets have
looked for further methods of im-
proving their economic system
since 1953 and have given in-
creased priority to consumers'
goods, he noted that they were
relying more on incentives rather
than coercion to achieve their eco-
nomic objectives.
In line with the new trend of
thought, they have found that "to
run a complex economy it is better
to use a carrot than a stick," he
added.
Increase Officials' Authority
As a result of this new incentive
policy and the increased decen-
tralization, regional officials have
been given increased authority to
determine output. But, in order to
further increase the efficiency of
the Soviet economy, it will be
"necessary to abandon and reduce
the reliance on physical plans and
rely on prices," Prof. Bornstein ex-
plained.
These prices would reflect scar-
cities of different commodities and
would allow the enterprise man-
agers to make their input and out-
put decisions on the basis of these
prices.
Managers Seek Authority
The chief forces which might
lead to the new price policy are a
desire for more efficiency and agi-
tation by enterprise managers for
an increased role in making eco-
nomic decisions.
The three strongest objections
to such a change are ideological
belief that reliance on prices goes
away from Socialist economic ideas
to a capitalist market; lack of
confidence that it is feasible to
rely on prices rather than physical
allocations; and party members
resenting their decreased role in
policymaking and administration
of the economy.
As the chief factors leading to
a new economic policy, Prof. Born-
stein cited more priority for con-
sumers goods, increased foreign
aid both inside and outside the
Soviet block, decrease in the sur-
plus manpower pool, proposed re-
duction of the work week and bet-
ter-trained managers.
'OF 34
RieS l.RXLOYAL'
Sales Tax' LYA
Formulas H
By SU
Supported B U
p The app
two teaches
Merchants Attribute Massachuse
Criticism to 'Politics' 1935, long
After 9,
LANSING W) - The Michigan the two te
Retailers Assn. yesterday defend- the oath r
ed its sales tax collection formula the Teach
and termed as "politics" an opin- the upti
ion by Atty. Gen. Paul L. Adams f the Unit
holding it illegal. fte nt
Adams ruled merchants now il- stitution
legally tax customers when they to swear thl
charge two pennies sales tax on charge the
purchases in the 38 to 49 cents their abilit
bracket and three cents in the 68
to 83 cents range. SGC:
Old Bracket System -
The old bracket system, in usee
for 20 years, provided for no tax
on purchases from one through
16 cents, one cent tax on the 17 T
to 49 cents price range, two cents
in the 50 to 82 cent range and
three cents from 84 cents to $1.16.
The new schedule advocated by By KENN
the MRA calls for one cent tax on The ques
purchases of 17 through 37 cents, the Studen
two cents on the 38 through 67 ing new tex
cents and three cents on 68 cents the Regent
through $1.16. ernment Co
Conflicts With Constitution In his mo
Adams held that in addition to plained the
violating the Sales Tax Act, the courage "c
new schedule conflicts with the taking plac
constitutional limitation of a ings.
three cents sales tax, He went o
"The opinion is not based on cil consider
supported legal fact and is there- a service to
fore ridiculous," a statement from an enterpr
the retailers said, hopes that
They termed it "a politically in- their polic
spired curbstone effort to increase enough toi
pressure for an unwanted gradu- Turne
ated income tax." Thomas9
Combines Popular Methods tor, opposed
The MRA said the new sched- ed out tha
ule actually is a combination of motion wa
the two most widely used methods asks the R
of collecting the three per cent previous po
sales tax. explained,t
The old collection method, the fer a specif
MRA said, resulted in an actual ask the Re
out-of-pocket loss to some retail- on the basis
ers. They added the retailers had Tables
no reason to overcharge since the In other s
entire amount must be paid to m proposed
the Revdnue Department. due to a g
Adams replied that he could not Council tha
help it if his interpretation of the tion was ai
law did not fit the wishful think- The motic
ing of the retailers. er, '60, wou
He termed the MRA statement endorseen
"an outrageous political attempt Rice, chain
to influence an elected state offi- partment, a
cial." mortment,
1 1 as ilr
TY OATHS:
rvard Teachers Refuse Pledge
o'
SAN HERSHBERG
pointments of at least
rs have been rescinded
'd this year due to the
etts teachers oath of
considered a dead issue.
vointment to positions,
eachers refused to sign
equired of them under
ers Oath Act.
hus refused to pledge
>rt to the Constitution
ted States and the Con-
of Massachusetts and
ey would faithfully dis-
ir duties to the best of
ies.
fens SBX
Regents
[ETH McELDOWNEY
stion of the legality of
t Book Exchange sell-
xtbooks was referred to
s by the Student Gov-
ouncil last night.
otion, Phil Zook, '60, ex-
Regents as a rule dis-
,ooperative" enterprises
ce in University build-
on to say that the Coun-
s the sale of new books
o the students and not
ise. Zook said that he
t the Regents clarify
y, making it flexible
include new book sales.
r Opposes Motion
Turner, '60, Daily Edi-
d the motion. He point-
at no matter how the
s worded, in reality it
egents to change their
licy. For this reason, he
the Council should of-
ic proposal rather than
gents to decide merely
s of a general program.
Freshman English
action, an endorsement
[changes in the fresh-
h program was tabled
general feeling of the
at not enough informa-
vailable.
on made by Babs Mill-
ld have sent letters of
.t to Prof. Warner G.
man of the English de-
and to the literary col-
ulum committee. How-
ling the motion, most
vcil members supported
idea of revising the
program.
uncil member recom-
t SGC's Education and
ommittee look further
reshman English pro-
According to the provision, "No
professor, instructor, or teacher
who is a citizen of, the United
States shall be permitted to enter
upon his duties within the Com-
monwealth unless and until such
oath or affirmation shall have been
so subscribed."
Refusals Appear Rare
There is no official statement
on whether other'instructors have
refused to sign the oath in the
past, but it appears that such
refusals must have been extremely
rare.
However, when the provision was
passed in 1935, it was violently
opposed by Kirtley F. Mather, now
emeritus professor of geology, the
"Harvard Crimson" notes. With-
standing public opinion and prac-
tically defying the President of the
university, he spoke directly and
issued several statements against
the oath.
His address the day after the
issuance of the proviso, entitled
"The Twilight of Democracy," em-
phasized that "Teaching in an
institution like Harvard must not
become a state function; if it
does, education is doomed to stag-
nation and the twilight of democ-
racy will deepen into blackest
night."
Mather Objects
His main objection to the oath
is that a professor, who is sup-
posedly independent of the gov-
ernment, be asked to take it.
He said, "Education would then
become the crassest of propaganda
and the fascist spirit would domi-
nate a land from which liberty
had been banished."'
Mather also at that time called
the oath "completely antagonistic
to the spirit which breathes
through the Constitution of the
United States and the Common-
wealth of Massachusetts."
Lists Arguments
He recently recalled that the
constitution of the Commonwealth
was out of print then anyway, and
he "couldn't find a copy of what
I was swearing to uphold."
"The law to which I object
appears to transfer to state legis-
latures and to officials appointed
by partisar governors a responsi-
bility which has constitutionally
resided in non-political quarters,"
Mathers added in his 1935 state-
ment.
When finally convinced to sign
the oath after repeated refusal,
he added a proviso invalidating
the oath. After the president of
the university finally prevailed up-
on him to sign it, the issue ap-
peared to close.
Conant Upheld Oath
Though personally opposed to
the oath, Harvard's former presi-
dent James Conant explained
then, "It is out of the question
KIRTLEY F. MATHER
. .. old-time doubter
for Harvard University to consider
not obeying the law."
He further emphasized this
stand in a letter addressed to the
faculty in which he stated that
any teacher who refuses to take
the oath cannot teach at Harvard.
One attempt to repeal the oath
in the spring of 1936 failed in the
House of Representatives. Later,
Mather and several other faculty
members formed the Harvard Uni-
versity chapter of the American
Federation of Teachers.
Enrollment
Increa.sing
WASHINGTON (M)-The num-
ber of students who enrolled in the
nation's colleges and universities
this fall hit a new high for. the
eighth straight year.
The total was 3,402,297.
Reporting this yesterday, the
office of education said the 1959
fall enrollment of full-time and
part-time students was up 4.4 per
cent, or 143,741, from 1958.
The number of students enrolled
in college for the first time jumped
5.9 per cent, to 826,969 this fall as
compared with 781,075 in 1958.
there were 2,173,797 men and
1,228,500 women among the fall
enrollees, the number of men be-
ing three per cent greater than in
1958 while the number of women
increased by seven per cent.
The first-time enrollees included
490,622 men and 336,347 women.
The women comprised 40.7 per
cent of the total, a slight increase
from the 40 per cent figure in
1958.
More than 1,900 institutions of
higher education were included in
the survey.
ILLIO
U IS
CETT
Approves 4 Bills
On Vote of 18-13
New Taxes To Proceed to House,
Review There Expected Next Week
LANSING R - The Senate last night passed a $34 mil-
lion package of nuisance taxes as the answer of Senate Re-
publicans to the state's cash crisis.
Th four bills each approved on an 18-13 party line vote,
moved to the House where a showdown was expected next
week. Their fate was uncertain.
Gov. G. Mennen Williams, who for weeks has placed new
revenue needs at $110,000 denounced the program as "miser-
able and inadequate, dictat-
ed by politics and devoid of U.S. Faces
either logic or equity."
Acts Swiftly
The Senate acted swiftly after
seeking to head off the threat of
a Democratic one per cent pay- pp
roll tax, closed ranks behind a
solution it had rejected only
Tuesday.
However, the new package of American exports face a stiff
temporary emergency taxes was competitive challenge in the re-
a pale version of the $73.5-million- cently established European Coin-
dollar tax bundle ditched 24 hours mon Market, Prof. Eric Stein of
before. the law school declared yesterday.
Missing from the revived cor- Prof. Stein said at the Ann
bination of taxes was $30 million Arbor Rotary Club's weekly meet-
dollars in proposed new levies on ing that the European Economic
laundry, dry cleaning, auto re- Community has presented the first
pair and similar services, outside challenge to American in-
Taxe Smoersdustry in the past thirty years.
Taxes Smokers A combination of tariff advan-
As it re-emerged, the trimmed tages and lower production costs
down plan calls for a new $4 mil- have caused the six-nation Com-
lion tax on cigar and pipe smok- munity not only to threaten
ers and an $8 million tax on tele- United States export trade, but it
phone, telegraph and leased wire also may soon become one of this
uItsets boosts of $9 million in country's toughest competitors, he
It etsboots f $ milio inexplained
the cigarette tax, $6 million from eads
doubling the beer tax and six mil- In addition to the economic
lions from doubling the four per threat, Prof. Stein sees a possi-
cent excise tax on liquor. bility of the Community "bringing
The tobacco levy, which also about a serious split in free world
would include snuff and similar solidarity," as it could touch off a
products, would be figured at 20 trade war with the seven outer
per cent of the wholesale price. European nations.
Rates To Rise These seven have banded to-
The cigarette tax, now five gether to protect their own bar-
cents a pack would go to six cents, gaining positions, because the Eu-
the beer, tax from $1.25 a barrel ropean Economic Community is
to $2.50 and the liquor tax from "so formidable and challenging"
four to eight cents. The "outer seven" are Britain
The rate on telephone and tele Sweden, Norway, Denmark, Switz-
graph bills would be four per cent. erland, Austria and Portugal, while
Coin installations would not be the "inner six" members of the
covered. Community are France, Germany,
In framing the revised program, Italy, Belgium, Luxembourg and
Sen. Frank Beadle (R-St. Clair), the Netherlands.
said, the GOP caucus relied on Should Remove Restrictions
revenue estimates that were called Prof. Stein recommended that
"fantastic" yesterday by State the United States should try to
Controller James W. Miller, chief help these two group settle their
state budget officer. differences, as a trade war between
Developed by Sen. Clyde H. these two economic blocs could be
Geerlings (R-Holland), Senate tax disastrous to the free world.
committee chairman, they re- In addition, he felt this country
lied on a "growth factor" of $63 should help its financial condition
million from existing levies, by continuing to press for the
Rely on Growth' removal of import restrictions on
Geerlings said that receipts American goods in Europe in ex-
from existing taxes from July change for lowering its own trade
through Nov. 30 ran $42 million barriers.
ahead of the comparable period This step was important in view
of 1958. of the current deficit in our inter-
Of this, $12 to $15 million national balance of payments.
was "windfall" from tfle short-__________
lived use tax increase effective
Sept. 1 and knocked out by the
supreme court Oct. 22. P s i e
Geeligssaid he was figuring
on $28 million "growth" for the
last seven months of the fiscal o Cp
year.
Gov. Williams called these es- Sydney Chapman, former head
timates "misguided" and "deceiv- of the International Geophysical
ing" to the people. He said the Year, has been appointed senior
five months comparison was with research scientist by the Univer-
revenue in the "worst months of sity's Institute of Science and
the Eisenhower recession." Technology.
"He's really going through the Robert R. White, Institute Di-
stratosphere," the governor said, rector, announced hisappoint-
Beadle said the Republican fl- ment, which will run from Sun-
nancing was premised on release day until Feb. 20. Chapman's
of the $50 million Veterans Trust duties will include lecturing and
Fund, presumed to be worth $40 consulting with engineers and sci-
million in cas. entists on research activities.
However, he said the GOP cau- He has also been selected to
cus was not specifically agreed on present the mid-year Commence-
this point. ment address on Jan. 16.
Assuming 40 millions from the Noted for his work as a solar-
trust fund and 15 millions from terrestrial physicist and professor
the nuisance taxes by next June of geophysics at the University of
30, the state deficit would be Alaska, Chapman is currently a
shaved at that time to 165 mion-mmmaN+- +f tat...cprrh ia m
Buying Days
This is .to remind you there
are 14 of them left before the
Christmas exodus.
lege curricu
ever in tab
of the Coun
the basic
freshman p
One Cou
mended tha
Welfare Co
into the fr
gram.
FOR HOSPITAL'S CHILDREN:
Christmas Drive To Finance Galens' Workshop
I
By KATHLEEN MOORE
Armed with buckets and tags, Galens members will seek donations
tomorrow and Saturday to "provide a merry Christmas for the sick
and disabled children at the University Hospital."
Each year, for the last 31 years, the medical students' honorary
society has conducted its Christmas Drive, collecting funds from both
University students and townspeople to sponsor a festive seasonal
party for all the hospital's children and to support its year-round
Galens Workshop project, Morton Cox, '60Med., publicity director,
explained.
Donations Finance Workshop
A jolly Santa Claus, decorations, treats and gifts for everyone are
intended to add a little holiday cheer to the daily routine of the con-
fined youngsters, he said, but the bulk of the donations (this year's
goal is $7,500) will be used for operating the Workshop, established
in 1928 with the funds collected in the group's first Christmas drive.
Describing the Workshop as a "concentrated program of educa-
tion and recreation for hospitalized children," Cox noted it provides
the over 3,000 children who yearly enter University Hospital with
both accredited schoolroom and handicraft instruction.
Hospital Offers Classes
Each morning children gather on the hospital's ninth floor for
academic classes geared to each child's level of education, insuring
that none lose time from school while hosnitalized. he said.
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