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MILD WITH SHOWERS
VOL. LXI, No. 142
ANN ARBOR, MICHIGAN, SATURDAY, APRIL 28, 1951
I
Officials Defend
Dorm Financing
Residence 1Halls Bond Retirement
Plan, Last Year's Surplus Explained
(Editor's Note: This is the second in a series of interpretive articles on
the financial aspects of University dormitory housing.)
By BOB KEITH
With today's crowded dormitories offering a source of potentially
big revenue, University financiers might be tempted now to try paying
off residence.halls 4onstruction bonds in a hurry.
Recently countless rumors and charges have circulated through
the ,dorms that the University is doing just that-paying off its bonds
before maturity-at the expense of good food and housing for the
students who foot the bill
- * . *
TO SUCH CHARGES, University administrators reply, however,
with a more or less flat "no." Instead, they contend, bonds are being
retired at almost precisely the same rate each and every year, whether
it'be last year, this year -or ten years hence.
This statement, a positive refutation of the many current
rumors, is subject, however, to one significant qualification.
Whenever total dorm revenues for any one year happen to exceed
the amount needed to cover all obligations for that year (including
food, maintenance and regular bond retirement) this money, too, is
used to pay off bonds'.
UN
As
Force's
Reds I
Withdrawin
Menace
Final Draft"
Bill Delayed
By Congress
I
* * *
*
DURING THE SCHOOL year ending last June this sum (called
"remaining net income") amounted to $67,121.87, or an average of
40 cents per student per week.
The reason for this surplus is quite simple. You might say
that University administrators "guessed wrong" in estimating ex-
penses. It is of course difficult to predict in advance the precise
amount needed to cover all expenses for any oncoming year; in
1949-50 administrators set dorm fees at a point which happened
to bring in some $67,000 more revenue than was necessary.
A similar "remaining net income" could be left at the end of any
year. Dormitory finances are ordinarily geared to a yearly safety
margin of three per cent, in order to cover any unforseen expenses,
and it is always possible that this margin will not be used up.
In 1950 the $67,000 surplus amounted to less than two and
one-half per cent of total gross revenues. And that, University
officials assert, "is about as close a margin as we can work on
with safety,"j
Because all of this money was used to retire bonds, none of it, of
course, could be retained and applied to the operating expenses for
the following yaer.
AN EXPLANATION FOR THIS practice lies in the contract agree-
ments signed by the University Board of Regents and the bondholders.
In order to facilitate bond sales, the Regents have pledged yearly dorm
revenues entirely toward bond retirement and operating expenses;
whenever revenues exceed expenses, they must, by contract, be used
to retire the bonds.
At last year's pace, this "remaining net Income" could mount
to more than $1,500,000 during the aggregate period of bond re-
tirement, or enough to pay off the bonds some three years sooner
than necessary. On the other hand, It could work out to be almost
negligible,
Use of "remaining net income" for bond retirement represents
the only instance of a dormitory financing procedure which would get
the bonds cleared away sooner than legally required, according to
administrators,
OF COURSE, it would be entirely possible for the University to
speed up its regular bond retirement too, by purposely boosting dorm
fees to a point higher than necessary. However, officials staunchly
deny that this is being done.
They affirm, instead, that each of several bond issues is in-
dividually retired at an equal rate each year.
(Continued on Page 4)
* * * *
Labor Dispute Halts Opening
01 South Quad This Sumer
-Daily-Malcolm Shatz
TRIAL !UN-President Alexander Ruthven listens as Edgar
Guest, well-known newspaper poet, reads a poem dedicated to
the retiring educator. Guest lated did a repeat performance at
a banquet honoring President Ruthven.
Schoolmastesa
Hono,6r tRuth ven7
By VERNON EMERSON
Mote than 340 members of the University's faculty, Michigan
Schoolmasters' Club and friends of President and Mrs. Alexander G.
Ruthven last night packed the Union Ballroom for a banquet in their
honor.
They heard Regent Vera Baits and Detroit poet 'Edgar Guest
praise President Ruthven for his leadership and guidance during the
past 22 years. Then the audience gave President Ruthven a standing
* * *
Critics Hit
By Ruthven
President Ruthven yesterday
blasted critics of education, in-
cluding t e a c h e r s themselves,
whose criticism "is based on in-
adequate information."
In a speech before the Michigan
Schoolmasters' C 1 u b, President
Ruthven strongly criticized "the
comments of hack writers who re-
alize there is always a ready mar-
ket for adverse critical comment
on schools and teachers."
"IF EDUCATORS themselves
were honest," he told the meeting,
"we too would have to admit that
we have indulged in criticism
with too little knowledge. Edu-
cation," he said, "is everybody's
business, and criticism based on
inadequate information on the
programs, problems, and progress
of instruction is poor business."
Another source of unjust cri-
ticism, President Ruthven said,
comes from "the proud parents
of every little pride and joy who
expect the schools to correct the
results of their parental short-
comings."
President Ruthven also warnedj
the Michigan educators attending
the meeting that the main objec-
tive of the public schools could be
to serve the "basic educational
needs of their communities."
Pdinting out'that only one high
school senior in four in Michigan
goes to college, he said schools
have a "clear cut obligation to see
that the 75 per cent who do not
enter college are as well trained
as those who will continue their
studies."
Oovation after he said that the
banquet was one of the greatest
honors he has received.
President Ruthven will retire
this June.
OUTLINING President Ruth-
ven's long service to the Univer-
sity, Regent Baits said that the
crowningpoint of his life has been
his work as the school's chief ad-
ministrator.
"Since he became President,
the University has increased
three times in size, has twice as
many students and financial
transactions are five times as
great," she said.
"He faced the obstacles of a de-
pression, a world war and de-
creased financial support from the
State Legislature. Yet he as held
the line of high educational stan-
dards at the University."
*~ * *
GUEST, A LONG time friend of
President Ruthven, said that the
immeasurable influence that the
educator has had on the Univer-
sity will go on for years.
He hailed President Ruthven
for his spiritual leadership,
terming the spiritual side of life
the most important,
Then Guest read a poem which
he had prepared in honor of the
retiring president.
*-* *
IN EXPRESSING his thanks,
President Ruthven said that any
success which occurred in his ad-
ministration would have come no
matter who was president. "The
Board of Regents, the administra-
tive staff, and the faculty-all of
whom have cooperated with me
and tutored me-would have made
that possible.
The banquet ended the 64th
meeting of the Schoolmasters'
Club here. Charles L. Anspach,
president of Central Michigan
College, closed themeeting by
charging the educators with the
task of reviving moral and religi-
ous values in the country.
"There is a common middle
ground for religious and secular
education. We need both to bring
back the great cultural, moral and
religious traditions which are the
bases of good character and citi-
Izenship."
Earlier, the teachers met in con-
ferences on various educational
programs. W. E. 9tirton, of De-
troit was elected the group's new
president.
DSR. Peace Talks
Mac Hearings
To Occupy Senate
WASHINGTON - (Y)-- A delay
of two weeks to a month in ef-
forts to iron out Senate-House dif-
ferences in the draft-universal
military training program was de-
cided upon yesterday,
T he Senate investigation of the
firing of Gen. Douglas MacArthur
was given as the main reason for
the delay.
CHAIRMAN RUSSELL (D-Ga.)
of the Senate Armed Services
Committee and Chairman Vinson
(D-Ga.) of the similar House
group told reporters of the deci-
sion after a closed-door session.
Senators will be completely
occupied next week and for
some time in the MacArthur
hearings," Russell said. "Chair-
man Vinson and the House con-
ferees have agreed to the
change~"
The two chairmen announced
agreement upon half a dozen more
minor points but major Senate-
House differences remained un-
solved as they decided upon a re-
cess.
The existing Selective Service
Act will expire July 9. Russell
said he expects to get the con-
ference committee together "be-
fore a month."
Today's decision was made after
a compromise offer Was reported
in lowering the minimum draft
age.
House spokesmen were said to
h a v e proposed an 18-year-old
minimum for future universal
military training, if actual combat
service for draftees was pegged at
19, the present minimum age for
induction.
Students Plan
To. Take Test
Almost half of the non-veteran
draft eligible students at the Uni-
versity are planning to take the
College Qualification Test.
A check of the University Armed
Services Information Center and
the Ann Arbor draft board yester-
day revealed that approximately
3,100students have picked up test
applications.
I
-Jim Butt.
COOLING OFF-Taking advantage of the warm weather yester-
day were Pat Texter, '53, on the left, and Pauline Kurtz, '53, who
were found wading in the fountain across from the League.
However, weatherl reports for today predict occasional showers.
BIRTH OF A NATION:
Society Votes To Show.
Disputed FilmIn May
Seoul
Communists
Sever Vital
Supply Lie
Civilians Agami
Leave Capital
TOKYO-(IP)-The Allies wer
withdrawing al along the mudd
Y Korean battlefront today befor
Chinese Communists hordes w
cut a vital east-west supply ro06
and menaced Seoul.
UN forces on the western fror
pulled back an unspecified distanc
north of the ruined capital c
South Korea. Until the new with
drawaf heavy fighting had wirle
within 10 miles of the batter d cit
* * *
THOUSANDS OF civ iliavrn
streamed south out of Seoul whil
Allied artillery within the cit
hammered away at the onrushin
Reds.
On the central front, the stra-
tegic .highway town of Kapyong
on the imprtant Seoul-CIn-
chon highway was abandoned to
attacking Communists.
Kapyong, 33 air miles northear
of Seoul, lies on the road which ha
linked the western front with th
central front.
OF ALL the hard-won UN ter
ritory in North Korea only a nar
row bridgehead remained betwee:
the Pukhan River and the Inje
Hyon road on the mountainou
east-central front.
Back in the west, the US.
rEighth Army communiqu,at
the Communists put heavy pre-
sure on the Allies south of Mvi
san all day yesterday. But in the
late afternoon UN forces broke
contact and withdrew to a new
defense line.
Munsan; 23 air miles northwe
of Seoul, was the point where Am
erican paratroopers made a spec
tacular landing behind Red line
only last month. It is on one ma
Red invasion path leading to Oe
oul. Along this path were masse
t an estimated 300,000 Chinese Red
The pressure of this horde w
t felt in terrific fighting around U
- jongbu, gateway to Seoul 11 mile
north of the capital.
Except on the western front, tl
Allied withdrawal was at a taste
e rate than the casualty riddled Ch
nese and North Koreans could ac
s vance.
Iran Premier,
Cabinet Quit
In OilCrisis
g,
i TEHRAN, Iran-M-P)-Ailing Pi
mier Uussein Ala and his 47-da;
old cabinet resigned last night :
the midst of an explosive cri
over oil and rising Communis
trpired unreW througliout strat
gic Iran.
The 68-year-old Ala, a pro-wes
erner long known for his mode
ate policies, apparently felt ui
able to cope with the violent n
tionalistic demand to drivet
- huge British-owned Anglo-Irar
e ian Ol Company out of control
f the nation's vast oil resources.
BULLETIN
In a 1:30 a m, conference this
morning several membet of the
Triton Film Society, agreed to
cancel the plan to show "Birth
of a Natidn."
Al Silver, who holds the film's
contract, said the decision was
made because lack of time would
prevent getting approval of both
SRA and the Student Affairs
Committee.-
The Triton Film Society last
night voted to show the much dis-
puted film, "Birth of a Nation," on
either May 12 or May 13 in Lane
Hall as an extra movie in their
year's series.
A program including two speak-
ers, one of the film's historical
significance and the other on the
film's sociological significance, is
planned to accompany the show-
ing.
THE SOCIETY voted to finance
the film by individual subscrip-
tions and take over a contract held
with the Museum of Modern Art,.
National
By The Associated Press
WASHINGTON-Senator Rob-
ert A. Taft yesterday called for
immediate adoption of Gen, Doug-
las MacArthur's strategy against
the Comr unists during a feverish
Republican-Democrat debate in
the Senate.
CARNEY, OKLA.-A Giant B-36
bomber and an F-51 fighterplane
collided yesterday during a prac-
tice bombing run on the state cap-
ital killing thirteen men.
* * *
WASHINGTON - Rep. Frank
Buchanan (D-Pa) died last night
in the naval hospital at Bethesda,
Md. after an illness of four weeks.I
New York by Al Silver, a member
of the Society.
Attendance at the showing is'
planned to be limited to mem-
bers and possibly a few guests.
But whether the film will actu-
ally get shown depends on three
big "if's."
If Triton, which is a sub-com-
mittee of the study and discussion
committee of the Student Religi-
ous Association, can get the ap-
proval of the SRA Council.
If University officials do not
interfere.
If the Museum of Modern Ar
wil grant the transfer of the con-
tract.
SILVER HAD secured the con-
tract from the Museum for the
Unitarian Student Group which
had planned to show it this
spring.
The group, however, disband-
ed at the beginning of the year,
partly over the question of whe-
ther to show the movie or not.
Silver, still holding the contract
sought to for ma special commit
tee to show the movie and possibl:
another controversial film along
with a planned program on civi
liberties, The committee, howev
er, never materialized.,
"Birth of a Nation" was the
center of loud controversy on
campus last spring when a
showing by the speech depart-
ment was called off at the re-
quest of several local groups be-
cause they charged it was anti-
Negro,
An informal committee was im
mediately formed to show th
film, claiming that suppression o
thought should be resisted ne
matter what quarter it came from
The committee was disbande
when the Student Legislature vot
ed to show the film;
The SL plan, however, fel
through when the Museum of Ar
mistakenly believed that the:
Would charge admission for the
showing, which is against the Mu-
seurh's rules for distributing films
A jurisdictional dispute involv-
ing members of the same laborl
union will prevent South Quad-
rangle from opening this summer
as originally planned, accordixig
to Francis C. Shiel, manager of
University Service Enterprises.
Because members of the Broth-
erhood of Carpenters and Joiners
(AFL) refuse to install wardrobe
units built in Ludington by mem-
bers of another AFL brotherhood,
the new building's east wing will
not be ready for occupancy.
* *
WEST Quadrangle will be open
instead for the summer session,
Shiel announced. He said that
even if the dispute were settled
immediately the wardrobes could
not be installed in time for the
summer opening.
He was confident, however,
that the eight-story dorm would
be ready by fall. Meanwhile
men who wish to indicate pref-
erences for summer accomoda-
tion in West Quad should see
Karl Streiff, 1020 Administra-
tion Bldg., before Friday, Shiel
said.
The wardrobe units were made
by workmen who voted recently
to join the Brotherhood of Auto-
MacArthur Back
motive Workers (AFL). Most of
the units were built before the
automotive brotherhood was adopt-
ed, at a time when the workers
were members of the Brotherhood
of Carpenters and Joiners them-
selves.
Reportedly, the local union is
using the dispute as a means of
pressuring the University into al-
lowing unionization of its Plant
Service maintenance workers. Uni-
versity officials have, contended
that such a move is prevented by,
a law forbidding the Board of Re-
gents to bargain with unions.
THERE ARE 6,844 male non-
veterans on campus,
But, Richard A. Corell, di-
rector of the Information Center
indicated that over 100 students
are still coming in each day to
pick up the applications.
Elsewhere on campus, a Nation-
al Selective Service official urged
all students to. take the exam.
Col. George A. Irwin, speaking
before a meeting of representa-
tives of the State placement bu-
reaus and the University Bureau
of Appointments, warned that stu-
dents may not get another chance
to take the test.
And should the present emer-
gency become more serious, he
said, the test will probably be made
an essential part of deferment
policy.
Those who haven't taken the
test will find it difficult to get an
educational deferment, he added.
EXPERTS SHUDDER:
Proposal To Abolish
StateDepartmentHit'
H )-
By CAL SAMRA
Three political scientists shud-
dered yesterday upon being in-
formed that a Senator from South
Dakota had introduced a bill de-
signed to abolish the State De-
partment.
Manfred Vernon, George Peek,
and Walter Filley, of the political
science department, assailed the
mI na opnn.+. n Car mfP_4 +a
Peek's first reaction was unquot-
able, so he toned it down to the
customary euphemism: "It's not
feasible,"
Apparently, he said, Mr. Case's
plan is designed to wrest away the
powers of the President in the in-.
ternational field, "Not only that,
it violates all the good principles
of efficient administration, which
nreessitates nolitica1 ladershin
ORDWAY TEAD STRESSES:
Education Should Integrate Life
PARLIAMENT has been ca
to meet in special session toda
vote on the popular proposa
take over the company immedi
ly. Approval seems almost
tain, although there were rer
some deputies might try to p
pone a showdown by falling to
tend in sufficient numbers to
vent a quorum.
Ala was appointed March 1
Shah Mohammed RezaPah
to, succeed Premier' Ali Raznl.
who was assassinated for op
ing the oil nationalization m+
Fanatical Moslems who inc
Razmara's slaying and spearhe
ed the agitation for the gov
ment seizure of the Anglo-Irar
Company threatened the live
Ala and other government lea
By RON WATTS
Criticising the idea of know-
.- - . __ ' _. . a .... . .I - %. 3
PRECEDING ,TEAD'S address
President Alexander 'G. Ruthven
npesented the honor students. In
the unity of human knowledge,
and a growing sense of power over
the elements which can minister