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January 09, 1974 - Image 3

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Michigan Daily, 1974-01-09

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1 !

Eighty-three years of editorial freedom
Edited and managed by students at the University of Michigan

Tuition cut ignores real needs

420 Maynard St., Ann Arbor, Mi. 48104

News Phone: 764-0552

WEDNESDAY, JANUARY 9, 1974'

I

Courting danger

THE U. S. SUPREME Court in recent
weeks has agreed to hear several
cases which could prove important to the
well-being of those incarcerated in pri-
son.
Monday the court announced it will
rule on the right of defendants who do
not have the funds to retain a lawyer to
appeal their convictions to high state
and federal courts to have an attorney
supplied by the state.
Indigent defendants now have such
rights during trial and initial appeal, but
have left questions of further appeals
unanswered.
The case is being appealed to the
Supreme Court by the State of North
Carolina after a federal circuit court rul-
ing that stated that while a state "al-
lows other convicted felons to seek ac-
cess to the higher court with help of re-
tained counsel, there is a marked ab-
sence of fairness in denying an indigent
the assistance of counsel as he seeks ac-
cess to the same court."
:WHAT IS AT stake, of course, is the
fairness of the judicial system. Deny-
ing access to state-provided counsel ef-
fectively cuts off any chance to pursue
legal action, amounting to discrimina-
tion based on wealth. Supreme Court de-
TODAY'S STAFF:
News: Charles Coleman, Christopher
Parks, James Schuster, Charles Stein,
Rebecca Warner
Editorial Page: Marnie Heyn
Arts Page: Diane Levick, Jeff Sorensen
Photo Technician: Tom Gottlieb

cisions have outlawed such indiscrimina-
tion in the past; hopefully it will do so
again.
A second case accepted for review by
the Court yesterday involves the right of
prison inmates to have access to jour-
nalists.
A federal court ruled that a California
state regulation not allowing inmates to
solicit interviews or journalists to request
to speak to specific inmates denied in-
mates of their constitutional right of
free speech.
Thus the issue of whether or not pri-
soners are to be treated as human beings
is again at stake. Access to the media
can provide some measure of sorely-need-
ed self respect to those on the inside as
well as providing some outlet for criti-
cisms of the prison system.
UNFORTUNATELY THE S u p r e m e
Court, transformed into a bastion of
conservatism during the Nixon Adminis-
tration, has rendered some rather reac-
tionary decisions in the field of criminal
justice.
Only last month the court handed
down an important decision allowing po-
lice to search any person under arrest for
any charge, without a search warrant
and without probable cause - a ruling
that severely infringes upon the Fourth
Amendment.
It would appear that the court could be
the major legacy of the Nixon presiden-
cy, precipitating a series of major set-
backs for various civil rights. Court ac-
tion on the above two cases will bear
watching.

By MARK GOLD
j HE ADMINISTRATION m a d e
great protestations, but the dis-
covery of a 3.75 million dollar bud-
get surplus came as no surprise.
To make amends, the Regents de-
cided to grant some sort of rebate
and after a few minor adjustments,
proposed to give back less than
half the surplus. Or more accur-
ately, they're granting it if you
remain here in school.
Arguments may be made over
the size of the rebate or the meth-
ods by which the money will be
returned. The Regents in their in-
finite wisdom left much to quar-
rel over in their proposals. Yet
while it would be important to
question the rebate program and
examine its particulars closely,
such an examination would miss
the central issues rising from last
September's 24 per cent tuition
hike. A rebate in the form of a
temporary 5 or 6 per cent cut in
tuition will not alter the fact that
too many people cannot afford to
attend school at this University.T
A STATE SCHOOL should ba an
open one. Yet the University demes
many Michigan students the use
of its vast resources on the basis
of income alone; through ever in-
creasing tuitionrates, it keeps low-
er income groups away. Income
elitism has chronically held sway
in Ann Arbor. Last Septembers'
insufferable tuition increase only
exacerbates this bias towards in-
:ome and social elites.
Research is the test of this rhe-
toric and the evidence of income
studies is rather disturbing. In
1967, less than 3 per cent of the
Thrr
CONTROL OF many large Cor-
i porations by a few banks is
hidden from government regulat-
ors, according to a study by two
Senate Subcommittees.
Many companies, in oficial own-
ership reports, list holdings of ma-
jor institutional investors in num-
erous "nominee" or "street name"
accounts, the study shows.
The consequence, said Senaors
jLee Metcalf (D-Mont.) and Ed-
mend S. Muskie (D-Me.) is a
massive coverup of the extent to
which holdings of stock have be-
come concentrated in the hands of
very few institutions investors, es-
pecially banks."
The holdings of seven banks in
major electric utilities were list-
ed in 53 different nominee names,
they said. (The banks are: Chase
Manhattan, Morgan Guaranty
Trust, Manufacturers Hanover
Trust, First National City B a n k ,
Bankers Trust of New York, Bank
of New York and State S t r e e t
Bank and Trust of Boston.)
THE HOLDINGS OF four of
these banks (Bankers Trust, Chae
Manhattan, the Bank of New York,
and State Street Bank and Trust)
in the Burlington Northern (an
energy and transportation con:lom-
erate) amounted to one fourth of
the stock voted at the company's
annual meeting in 1972, they said.
However, none of the banks was
identified by the BN in its report
filed in 1973 (with the Interstate
Commerce Commission and 'he
Securities and Exchange Commis-
sion) on its 30 top stockholders and
their voting powers. Holdings of the
BN's largest stockholder, Bank-
ers Trust, were listed in six sep-
Letters to The Daily should
be mailed to the Editorial Di-
rector or delivered to Mary
Rafferty in the Student Pub-
lications business office in the

Michigan Daily building. Letters
should be typed, double-spaced
and normally should not exceed
250 words. The Editorial Direc-
tors reserve the right to edit
all letters submitted.

nation's parental iicomes w e r e
over $25,000. Yet this inc )me g.-'p
sent the University almost 17 per
cent of its in-state students, leav-
ing this group over-represented
by roughly 14 per cent. In 1971,
that over-representation had grown
to nearly 20 per cent.
In this same 1967 to 1971 period,
the representation of income groups
between $25,000 and $8,000 dropped
so sharply that all income groups

'a: tors si-, :e 1971 have only serv-
ed to aggravate the trend. Fuition
at the University has increased
22 per cent over this short two vnd
a half year period. The University
has lost previously allocated I'unds
for student financial aid. And be-
yond state actions are nationl
events. Federally guaranteed loats
were cut by 40 per cent in 1973. A
national survey indicates thb a t
more than half a million ,tiidents

"A rebate in the form of a temporary 5 or 6 per
cent cut in tuition will not alter the fact that too
many people cannot afford to attend school at
this University."

inder $15,000 became under-repre-
sented, where previously families
earning over $8,000 had had ade-
quate representation or better. The
poor during this time improved this
representation slightly, but were
still grosslyiunder-represented at
the University.
THIS STUDY was made in terms
of over- and under-representation
to rule out the effects of infla-
tion. Ithshould be emphasizeduhere
that the research points to under-
representation of the middle and
lower middle class as well as the
poor. Laborers and skilled b I u e
and white collar workers with full
employment have found it increas-
ingly difficult to send their sons and
daughters here. More and more,
prospective students must apply
elsewhere because of the cost bar-
rier.

desire a college education b u t
cannot attend school because of
the financial barrier. One can only
sneculate about the number of stu-
dents who, because of high tui-
tion and expenses, must settle for
an inferior educationbor an educa-
tion that does not best meet their
needs.
MUST THE University of Mich-
igan hold such a high tuition level?
The University charges the highest
in-state tuition of all the Big Ten
schools. Its tuition is half again
greater than the average Big Tan
expense. Tuition at the University
of California at Berkley, though it
has risen drastically under con-
servative Republican administra-
tion, remains roughly two hundred
dollars less per school than the
University.
Is it fair then, that a s t ate

school, sipported by state taxpay-
ers, be open only to a fraction
of the state's qualified students?
One can easily be cynical of an
amazing administrative and regnt-
al insensitivity.
Why, over the years, have tney
acted only to exaggerate the elit-
ist trend? These decision makers,
coming from wealthy and busines
oriented backgrounds, will share
little with the many students and
the aspiring students who will be
unable to pay the University's high
tuition rate.
WH 1T IS NEEDED then, is not
a temporary S or 6 per cent tuition
rollback. What is needed is a well
designed and coordinated program
geared toward opening the Univer-
sity to all income groups.
Part of that program must in-
volve an adjustment in tuition lev-
els that is more in line witn the
ability of citizens to pay. Part
of the program must include a
well funded loan program so that
lower income students and their
families need not be burdened with
an expense they can not immed-
iately bear.
And part of the program must
include a restructuring of t h i s
institution that has for so long per-
petrated and aggravated income
elitism moving towards an insti-
tution that is sensitive to the is-
sues of equality and truly open to
the public.
Mark Gold is a member of the
Program for Educational and So-
cial Change (PESC).

'bber barons ride again

arate nominee accounts: Hemfar
& Co., Pitt & Co., Lehcor & Co.,
Salkeld & Co., Pendiv & Co., and
Barnett & Co.
Senators Metcalf and Muskie not-
ed various authorities' conclusion
that five or ten per cent of the
stock in a widely-held company is
often sufficient for control.
SMALL STOCKHOLDERS, t h cy
said, find it procedurely difficult
to get a candidate or agenda item
considered, or even to locate and
present their case "to a few insti-
tutional investors who by proxy
and often casually will decide the

TIIE MILWAUKEE JOURNAL
pubishers-Hll Syndicat~1979
r x
~~ EMERE~C
V. -
R /~iNC
ENE)?CV

committee of Budgeting, Manago-
ment and Expenditures, shows that
a few unidentified banks had sign-
ificant sole voting rights within
principal industrial categories.
The study also includes a Con-
gressional Research Service analy-
sis of ownership of broadcast com-
panies and networks in 972. It
shows that Chase Manhattan, Bank-
ers Trust and Brnk of New York
together had voting rights to al-
most one fourth of the stock in both
the Columbia Broadcasting Sysitem
and American Broadcasting Com-
pany.
The major New York banks alto
had significant voting rights in
Metromedia, Pacific and Southern
Broadcasting, Capital Cities Broad-
casting and 14 other broadcasting
groups. Commented Senators Met-
calf and Muskie:
"Possibly, were he still with us,
Ed Murrow would say: "This is
the news.' "
THE STUDY INCLUDES a list-
ing of broadcast companies which
are subsidiaries of industrial or
other non-broadcasting corpora-
tions such as Avco, Dun and Brad-
street, General Electric, Wes'ing-
house, Schering-Plough Corpora-
tion, Kansas City Sourtern Indus-
tries, Kaiser Industries, Fuqua In-
dustries, Pacific Southwest Air-
lines, and Rust Craft Greeting
Cards.
The Senators said 'anks had vio-
lated FCC rules regarding con-
centration of ownership of broad-
cast companies:
"The FCC did not know that the
banks were in gross violation, of
regulations until tne banks told
the Commission about it," they
said. "It took three years to get
(the bankers') material to and con-
sidered by the Commission, which
then gave the banks three in o r e
years to get in compliance with
the more lenient rules, whica may
be relaxed further.
"The problem," they continued,.
"is inadequate and misleading cor-
porate discto umre 'a Federal gt -
cies. The Federal Government does
not have sufficient information upon
which to base reasoned p u b l i c
policy.

"NEITHER COMPANIES nor ord-
inary stockholders have informa-
tion which they need to protect
their own interests rega:ding stock
ownership and the personnel '-nd
business relationships" betfe
banks and their portfolio compan-
ies.
"Whatever solutions the Fed-
eral Government chooses to t h e
mounting problems resulting from
economic concentration, the prere-
auisite is the regular collection and
disclosure of information which
should be centrally available, mst
appropriately at the Library of
Congress."
The study includes an article
by Professor David L. Ratner, a
consultant to the Subcommittee on
Budgeting, Manag3ment and Ex-
penditures, suggestiag that the vot-
ing powers of large stockholders be
reduced through "weighed voting"
which was used in early American
corporations.
"JAMES MADISON espoused
Federal chartering of corporations

T~d mid1!uski
(D- e.)

outcome of the (annual) election."
The study shows that big banks
which hold stock in large firms
often have voting rights t- it,
along with interlocking director-
ates. The study includes an analv-
sis of responses of 324 of the
largest corporations to a query
from Senator Metcalf regarding
their 30 top stockholders. T h e
Senators said that analysis, by
Julius Allen of the Library of Con-
gress' Congressional Research Ser-
vice, shows that seven New York
banks and a nominee for the New
York Stock Exchange have signi-
ficant holdings in energy, trans-
portation, manufacturing, and re-
tailing.
ANOTHER ANALYSIS in the re-
port, by Professor Robert M. Sold-
ofsky, a consultant to the Sub-

Lee Metcalf (D-Mont.)
and Hamilton urged waighed vot-
ing," the Senators said. "Consid-
eration of these far-sighted propos-
als by two of the Founding Fathers
would be most appropriate as the
Nation's bicentennial approaches."
This article was conpiled by the
Senate Subcommittee on Budget-
ing, Management, and Expendi-
tures.

'Ah'm jes doin' mah patriotic dooty, boy!'

Peace and quiet trust come slowly to ravaged Laos

By JOHN BURGESS
VIENTIANE, LAOS
THOUGH ALL-OUT WAR seems to be
brewing in South Vietnam, and the
conflict in Cambodia is stalemated, the
two antagonists in Laos - the Ameri-
can-supported Vientiane government
and the leftist Pathet Lao - continue
to make slow progress toward stabil-
ity. If present trends continue, within
the next few months there may be a
provisional coalition government, and
an end to the warfare which has de-
vastated Laos intermittently since the
mid-1950's.
The new government is to be com-
posed of five Pathet Lao ministers, five
Vientiane ministers and two neutralists.
Vientiane Prime Minister Souvanna
Phouma is expected to remain on to
lead the new government, with a Pathet
Lao and a Vientiane deputy prime min-
ister beneath him.
Perhaps the clearest sign of the cau-
tious trust develoned between the Vien-

and civil servants who will work in
the coalition government.
NOW, THE 1700 Pathet Lao in Vien-
tiane are settling into a peaceful daily
routine, surrounded by an army with
which they were at war for years.
Their quarters include half a dozen
dilapidated French villas, a former
school building, and a small base camp
just north of the city.
Pathet Lao soldiers dressed in baggy
olive drag fatigues and soft caps are
common sights throughout the city.
In the early morning dozens of the
leftist soldiers can be seen in Vient-
iane's central market, shopping for
vegetables, meat, and other essentials.
Though friendly and polite with other
Laotians, most of the troops are sus-
picious of foreigners and shy away
from photographers.
Slowly, they are making contacts
with the citizens of Vientiane. One can
sometimes see them engrossed in con-

popular with the city's inhabitants, who
can be seen awaiting treatment at all
times of the day.
EACH THURSDAY, back in Vient-
iane, the Joint Commission to Imple-
ment the Agreement (composed equal-
ly of delegated from the Vientiane gov-
ernment and the Pathet Lao) meets to
haggle out details of putting into prac-
tice the protocols that the two sides
signed last September 14.
Progress is difficult, and the com-
mission's most significant accomplish-
ment since it was formed six weeks
ago has been selection of insignia, to
be worn by the commission's mixed
field teams, and formulation of ground
rules for the teams' operation. Yet
decisions and dialogue continue, un-
like a similar commission in Vietnam,
formed by Saigon and the Provisional
Revolutionary Government, which be-
came deadlocked almost immediately.
In the mountainous battlefields of

BOTH SIDES AVOID ultimatums
and demands which the other cannot
meet. Most observers agree that the
important thing now is that the two
sides continue to talk and make pro-
gress, however slowly. "Everything
seems to take four or five times as
long as it's supposed to," said one
resident of Vientiane, "but a year ago,
who would have thought we'd have al-
most two thousand Pathet Lao walking
around Vientiane?"
Diplomats report that the formation
of the new government is held up at
present by Pathet Lao insistence that
all details of the neutralization of Vien-
tiane and Luang Prabang be settled
first.
The September protocols provide that
the Pathet Lao can bring 1,000 police
and a battalion of troops into Vientiane,
and 500 police and two companies of
troops into Luang Prabang. Vientiane
government forces in the two cities are

(about 25 miles) outside the city, a task
which would take several month';.
People within the Vientiane govern-
ment accuse the Pathet Lao of using
the neutralization issue to obstruct the
formation of the new government, and
of bringing in more troops and mater-
ial than allowed. "These questions will
be decided at Pathet Lao convenience,"
a Vientiane civil servant close to the
commission's negotiations commented
caustically.
However, neutralization is an ex-
tremely important issue for the Pathet
Lao. During the unsuccessful coalitions
of 1957 and 1962 their members of the
government were harrassed, imprison-
ed, and even assassinated by rightist
agents in Vientiane, the age-old turf
of the powerful conservative Sannani-
kone family.
FOREIGN TROOPS and advisors -
about sixty thousand North Vietnamese

Vietnam remains unresolved, Hanoi
will retain at least a token presence
in Laos, along the Trail.
The big question now is when the
government will actually be formed.
But predicting events is particularly
unadvisable in Laos. Despite the pro-
gress the two sides have made toward
reconciliation, there remains the fun-
damental question of whether two ideol-
ogically different parties, at war with
each other for years, can successfully
shift to purely political means.
THE TWO PREVIOUS coalitions
here failed largely because of foreign
intervention - most of it coming from
the United States. This time, however,
it appears that the U.S. and the com-
munist powers want to see reconcilia-
tion in Laos work. Though two coali-
tions have failed already, today's third

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