NEXT DECADE CRITICAL FOR 'U' See Page L Seventieth Year of Editorial Freedom tii POSSIBLE SNOW high-3 Low-22 Cloudy with possible flurries. Warmer with moderate winds. f LXX, No. 76 ANN ARBOR, MICHIGAN, FRIDAY, JANUARY 8,.1960 FIVE CENTS SIX PAGES teeI Compromise ['o Decrease Deficit Controller Miller Expects Rise Of $19 Million in State Revenue LANSING- Settlement of the steel strike will mean a $19 million crease in stpte- revenue through June 30, end of the present fiscal ar. But State Controller James W. Miller said the state's deficit was il between $75 and $80 million. It was Miller who yesterday reported e prospects of additional new income to Gov. G. Mennen Williams. he treasurer said that although an improvement in general economic nditions does play a part in the income gain, the steel strike settle- mt is the primary factor. Ten million of the new money will be general fund revenue, while million will go to the related fund for school aid. He commented earlier predictions had been made because business conditions could not be accurately forecast during the Taft-Hartley cooling- off period which temporarily put the steel industry back into oper- aton, but left possibility of a re- niewed walk-out. And income projections are us- ually not issued until just before. the proposed state budget is an- nounced, he added. Plans call for announcement at the end of the ,. , , ., month or .in early February. Miller saidwithout the new in- crease and .the new tax program voted by the Legislature just be-+ fore it adjourned, the state's deficit would be $167 million for the current fiscal year. President Predicts Prosperity, Peace, Budget Surplus fr 1960 G. MENNEN WILLIAMS ....hears fund report, Late Brun ch .t By KENNETH McELDOWNEY There's good news for students whose eating habits don't coincide with schedules in the residence halls. Beginning Monday, brunch will be served following the regular breakfast, Leonard A. Schaadt, business manager of the residence halls announced yesterday. "I be- came worried," Schaadt said, "when my son and daughter at" Michigan State University told me that they rarely had 'time to eat breakfast." After discovering the same situation existed at the Uni- versity, he decided to have brunch in the morning. ' Brunch will be served in oath the dorms and quads approxi- mately 15 minutes after the break- fast lines close and will last about 45 minutes to an hour. In place of a full breakfast, coffee, "milk, doughnuts and sweet rolls will be served.r.4 Students will be expected to carry their own dishes back. One still bleary-eyed student said it will be quite a novelty to eat something before lunch, but then added, "If I can get up in time." Another student, slightly blinded' by the light, twisted his bathrobe around and whined, "Well what, about those of us who sleep late in the morning and can't get up by 9 a.m.?" But comments such as; this were in the minority. In answer to those students who voiced fears that the new service might add to the rates at the residence halls, Schaadt said he believes very little added cost will. be incurred. He explained that' many of the students now coming down for breakfast will wait for the more inexpensive brunch. One element of discord was found in the basement of one of the quads. A student, sweaty from the dish-machine, looked up sadly and moaned, "Work, work, more' work. Next they will be serving tea in the afternoon." SeekCosing \ f0- . * Of Bsinesses For Sunday LANSING (')-A drive to free: Sunday from non-emergency com- mercial activities was launched yesterday by the Michigan Coun-| Warned of Deficit Though he asserted he was hap- py "as a Scotsman" to get the new money, he warned the deficit still existed. Williams warned the increase in1 revenue "doesn't mean we are yet out of the financial woods." "The state's cash and revenue crisis won't be ended until action is taken either by the legislature or the people to establish a sound an adequate tax program," the governor continued. ,. Observers commented the reve- nue increase may heip vindicate positions of both flepublicans and Democrats in the crisis.. Sticks to Estimate The Republicans have long ad- vocated a large "growth factor" in the state's revenue, which Wil- liams has denied, sticking behind the $308 million estimate of rev- enue made by the administration last July. On the other hand, Williams has argued the-1958 recession has been ae major cause of the state's. difi- culties, and not the spending poli-, cies of his administration. Cash receipts of the state treas- ury have been increasing for the past few months, though they are not expected to keep increasing at their present rate.. Regist ration ig h at MSU Michigan State University re-' sumed classes yesterday with a record winter term enrollment of 19,668 at the East Lansing cam- pus. This enrollment topped the pre- vious winter enrollment record set in 1957 by more than 1,000, regis- trar Kermit Smith sai. Reds Set T'es t Area In Oc~an WASHINGTON (P) - Russia's answer to President Dwight D. Eisenhower's plug for United State missile achievements came in quick and precise fashion from Moscow last night. In less than six hours after Ei- senhower told Congress that American intercontinental balls- tic missiles have been traveling more than 5,000 miles and hitting within a two-mile target area, Moscow told the world: Between Jan. 15 and Feb. 15, Russia will begin testing missiles by firing them into areas located about 1,000 miles from Hawaii and approximately the same ,dis- tance from the Marshall Islands, used by the United States for testing big nuclear weapons. A spokesman said the State De- partment had not received any advance notice from Russia re- garding the plan. Approximates Atlas The range for the Soviet test firings -- which Russia declares are aimed at developing boosters for peaceful research vehicle launchings - could approximate that for the United States Atlas missile. Assuming the launchings are from an area in Eastern Siberia, the firing distances could be from 4,000 to 6,000 miles. Russia already has been test firing ICBMs from the Eurasian mainland into the north Pacific Ocean in an area generally east of the Kurile island chain and northern Japan. Aimed at U.S. Sphere The new announcement indi- cates that the forthcoming test missiles will be aimed intoan area considered a sphere of interest of the United States, although in open international waters. Government'legal authorities said there are many precedents for use of the high seas for such experimental purposes. A nation conducting such tests, however, has certain responsi- bilities under international law: a need to avoid interfering un- reasonably with the activities of other nations; and a responsibility to notify fliers, mariners and fish- ermen of the region of peril. At first reading it appeared that in a general way the Soviet gov- ernment was following about..the same kind of procedure as that used by the United States in warn- ing when it plans test firings from Cape Canaveral and Vandenberg Air Force Base. The impact area designated by Moscow is about 250 miles west of American-owned Palmyra Zs- land, from 400 to 600 miles south of Johnston Island also Ameri- can - owned) and approximately 1,100 miles southwest of Hawaii. Several Soviet missiles have been observed coming into the north Pacific in recent months by United States navy planes and ships. Soviet observer ships also have been seen checking the firing accuracy of the Russian missiles. {;.,n.1"::rc'?,..!5:.,.i;" . 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