Saturdoy, November 22, 1975
fHE miCHrGAN L)^iLy-
P9ge Seven
Saturday, November ZZ, 1975. ~HE MICHIGAN L)AFLf PQge Seven
UHC vote'
complete
Court nominees
listed by AI3A
Moynihan !
may quit UN
(Continued from Page 1)
renouncing proponents of a re-
FRI.-SAT.
$2.50
LOU & SALLY
KILLEN
8:30
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By LOIS JOSIMOVICH (Continued from Page 1) THEY SAID they would call solution adopted by the Gener-
school professors and others as witnesses Robert Meserve of al Assembly this month equating
Results of this week's Univer- about them. Christopher said the Boston, a former president of racism and Zionism. He also
sity Housing Council (UHC) p e r s o n s interviewed included the ABA, and a number of law
were finally confirmed yester- both professional colleagues of school professo'rs and others who echoed Kissinger's views in his
day after more than 19 hours of the potential nominees and non- have written about the court. complaints about bloc voting by
counting. lawyers in their communities. The three senators are Demo- so-called third world countries.
About 15 per cent of the ap- "WE HAVE probably talked crats Edward Kennedy of Mass- HOWEVER, Moynihan went
proximately 8,000 eligible stu- to at least 100 people about each, achusetts and James Abourezk beyond instructions in his cri-
dents cast ballots. name on the list," he said. He , of South Dakota and Republican ticism of Ugandan President Idi
said the persons consulted were Charles Mathias Jr. of Mary- Amin.
GARY FABIAN won the full asked to keep the inquiries con- land. They were turned down s i hdt d i nw t a t
year seat in the Lloyd - East fidential. 'Wednesday when they asked the
Quad district over Tom Reeder Yesterday's meeting was theSenate Judiciary Committee to
by a narrow 13 vote margin, second the committee has held hold hearings on the subject.
In the Bursley district, G. J. this week. It met Sunday to The federal jurists on the F EE
Giuseppe won the only avail- evaluate a list of about a latest list submitted to the ABA'
able position by 14 votes over dozen potential nominees sub- -Cornelia Kennedy, 52, of De- 4' "
second runner-up Jim Stern. mitted by the attorney general troit, a U.S. district judge for
Frederick BoikadGe on" President Ford's behalf. five years and a Michigan cir-
Wolfe were victorious inG Christopher said he made a uit court judge before that. - ~
Baits districts for one and half preliminary report to Levi on -Charles Clark, 50, of Jack- SATURDAY
foritretredtris-NewfOrlensesince1969fan
ats Monday. w son, Miss., a judge of the 5th NOV. 22
Christopher was a law clerkU S. Circuit Court of Appeals in 5pm & 7pm
OVER in the Hill Area, Couz- in 1949 and 1950 for retired Jus- New Orleans since 1969 and a, SUNDAY
ens, Stockwell, Mo-Jo) Alan El-. tice William Douglas, who left practicing attorney previously. YOV23
lison took.the one year seat by the court last weekN -Philip Tone, 52, a former 2pm
a narrow margin over runner ON TUESDAY, Levi submit- U.S. district jidee named to the 4pm
up Tim O'Neill. ted an additional list containing 7th US. Circuit Court of Appeals ,"
the names of four federal -in Chicago in May 1974.C
Chetney Hieber won t h e judges, one of them a woman,' ---M lcolm Wilkey, 56, a for-t
Markley - Oxford seat and in and Secretary of Housing and mer Texas lawyer
the Campus district (West Urban Development Carla Hills. ----- ---------N"
Quad, Barbour, Newberry, Cook The committee was called in-'
and the Law Quad), Brian Las- to session to rate the additional CHARING CROSS
key captured the only opening. prosoective nominees on their BOOKSHOP
In the South Quad - Fletcher professional qualifications, judi- Used, Fine and Scholarly Books
district, Rick David and David cial temperament and integrity.- 316 S. STATE-994-4041
Faye tied with 64 votes each. Members have been checking Open Mon.-Fri. 1.1 -9, CARETE
Present UHC members will de- with potential nominees' asso- Sat. 10-6-E
cide who gets the full-year and Meanwhile, three s e n a t o r s 3 0
called a symposium to discussC
About 40 per cent of the vaot- criteria and qualifications to be PLATIGNUM ITALIC SET ANN ARBOR
ers approved the dormitory ,used by the Senate in assessing Conraris aNun rainpenfive PHONE 971-SNOW
vegetarian meal option. The the eventual nominee for con- a m65 anitnstructin
amendment to the UHC constitu- firmation. ( r
tion providing a succession for nati 144 oniy $5.00.
the Council's vice-president was At art rnateraif &ypen shops,
passed by a wide margin- MLco(leqecookstorcs...orsni
cfieck to ?entaic Corp.,132
Hale Irwin, 1974 U. S. Open2,.
golf champion, stood in seventh TONIGHT AT 8 O'CLOCK d5 srnn.
place in PGA tour winnings COUZEN'S THEATRE francfinj.
through April with $80,200._ __ _
Regarded by authorities and
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one of the best performers of
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song , . . A master, in fact, of almost any kiind
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1421 HILL 761-1451
11
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IN JOINT CONCERT
The University of Michgian Men's Glee Club
LEONARD JOHNSON, Director
AND
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THOMAS A. SOKOL, Director
Saturday, Nov. 22-8 p.m.-Hill Auditorium
Tickets $3.50, $2.50, $1.50: at Hill Box Office
'An inside look at worldwide business:
How the U.S. and foreign governments regulate the business we do
abroad has a direct bearing on jobs and paychecks back home.
When voters understand the basics of our economic system-and
act on that understanding-government listens. Since every citizen
has "the responsibility to know", The Business Roundtable is spon-
soring a series of messages about the fundanental workings of
our free entgrprise system. Their "mini-course" appears monthly
before the country's largest reading audience in Reader's Diget.
ADVERTISEMENT
,Why
Companies
Do
Business
Abroad
Despite the extraordinary contribution
of multi-national corporations to our standarq
of living, the clippers are out in Washington CO4V
to shear their worldwide operations
LOAD, AIM, & SHOOT'
(Even with a Brownie, you can bag big Przs)
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MIERICANs are hearing a lot
these days about multi-
national corporations,
but for some reason we
rarely hear what they mean to our
economic growth and prosperity, or
even what they are.
A multi-national is a corporation
that does a substantial amount of
its business in other countries, either
on its own or in partnership with
host-country corporations. Multi-
nationals, American and foreign, are
everywhere. They mine bauxite in
Australia, make sewing machines
in Britain, sell insurance in Bang-
kok, operate banks in Iran. There
are thousands of them, but general-
ly the term is reserved for the larger,
more successful and, so, more con-
spicuous companies. They also tend
to be the corporations that pay the
highest wages, and sell products for
the lowest prices.
In an earlier era, corporations
often set up overseas operations for
strictly economic reasons-lower
transportation costs, for example, or
a break on wages. Today, however,
many companies find that they can't
enter, or remain in, a foreign market
unless they build a factory or set up
an office there for at least a part of
their operations.
Mighty General Electric, for ex-
ample, was called in not long ago
gotiated a compromise. Now, in an
assembly plant in. Brazil, local work-
ers put on the wheels and other
outer parts. The drive assembly and
controls 'still come from Erie. Both
sides got what they wanted: Brazil
saves on dollars and gets factory jobs,
while GE keeps the high-wage, high-
technology part. If the company had
not cooperated, says chairman R. H..
Jones, "complete locomotives would
now be made in Brazil in plants
financed by a Javanese or European
company."
When companies establish foreign
operations, it nearly always means a
surge in the number of their U.S.
employes. In 1950, Caterpillar Trac-
tor Co. was struggling to fill its U.S..
and foreign orders from two Ameri-
can plants with 25,000 employes. To-
day there are 12 overseas Caterpillar
plants employing 27.000. But, mean-
while, the company has grown to 14
U.S. plants employing 62,000-of
whom some 24,000 owe their j bs
solely to foreign orders.
A promising foreign market can
be lost irretrievably by not setting up
a foreign factory at the right time.
In 1964, Du Pont was exporting 34
million pounds of polyethylene to,
Europe, but decided not to build a
plant there. Its European sales of
polyethylene soon dropped to the
vanishing point, while its foreign
subsidiaries or affiliated companies
employing nearly 32,000 people.
Total 1974 sales outside the United
States amounted to $2.17 billion, of
which over $8oo million were U.S.
exports. As a result, at least 15,000
new jobs were created in the Unit-
ed States.
These and numerous other ex-
amples underline the fact that mul-
ti-nationals are good for the U.S.
economy, consumer and worker. A
U.S. government study covering 300
of the major multi-nationals reveals
that when these companies were rap-
idly expanding employment abroad,
they also raised their U.S. work
force at a rate of 2.7 percent a year
-well above the average growth in
American industry. At the same
time, they averaged paying their
U.S. workers substantially more per
hour than U.S: companies without
foreign operations.
This is only part of what multi-
nationals do for us. They are in the
forefront of helping the nation com-
pensate for rising costs of basic raw
materials we must import, particu-:
larly petroleum. By selling abroad,'
they earn large amounts of the for-
eign currencies we need to buy
scarce materials from other coun-
tries. In addition, in 1974 Ameri-
can companies operating abroad
returned home royalties and foreign .
earnings of $21.4 billion-three
times the outflow of dollars for new
foreign investment.
All in all, without multi-nationals
the extraordinary worldwide rise in
living standards would have been
,slowed. As U.S. Ambassador to the
United Nations Daniel P. Moyni-
han has declared: "The multi-na-
tional corporation, which combines
modern management with liberal
trade policies, is arguably the most
creative international institution of
the 20th century."
Indeed, those countries in Europe
and Asia making the most progress
are, the ones that have encouraged
multi-nationals-theirs as well as
ours.* Despite this, the clippers are
out to shear the U.S. multi-nationals
of their foreign connections.
A while back, the hue and cry
was that multi-nationals "export
American jobs." When this proved
unfounded, critics seized upon the
issue of bribery of foreign officials
by the multi-nationals. It is true that
some U.S. corporations have been in-
volved in payoffs abroad-usually to
avoid confiscation or loss of business
to foreign competitors. This is cer-
tainly a practice contrary to good
business ethics. But unethical prac-
tices by -a few companies hardly
justify punitive tax proposals now
coming to the fore in Washington,
which. would all but put multi-
nationals out of business.
Currently, U.S. overseas businesses
pay the full 48-percent U.S. corporate
income-tax rate when they bring
home their profits after paying all
taxes in the countries where they op-
erate. These taxes generally are now
as high as ours, and companies are
allowed 'to offset them against the
taxes on foreign, but not domestic,
income that would otherwise be
paid to the U.S. Treasury. This
avoids double taxation. Foes of the
multi-nationals would have them
pay the foreign taxes and immediate-
ly give almost half of what was left
of their earnings to the U.S. Treas-
ury. This would mean an effective
tax rate of almost 75 percent. Since
no other country does this, our
multi-nationals could not survive
under the burden.
The economic effect here and
abroad of such a move is dismal to
contemplate. The value of our vast
foreign investments would be sharp-
lv 'reduced, and world trade un-
doubtedly would suffer.
As the recent global recession has
reminded us, when business turns
down, no man is an island. We must
keep in mind that multi-national
corporations are nothing more than
business organizations which make
up for the fact that raw materials,
products, services,' know-how and
labor are very unevenly distributed
over the globe. They bring together
all these economic resources to help
all people work together to create a
peaceful and prosperous world.
I