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February 08, 1957 - Image 4

Resource type:
Michigan Daily, 1957-02-08

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I Shot An Arrow Into The Air-"

Ehelmirlijan &it&
Sixty-Seventh Year

'S ,

"When Opinions Are Free
Truth Will Prevail"

'Power and the Prize'
'$64,000,000 or Bust
DUST OFF your grey flannel suits, boys; Hollywood has done it again.
"The Power and the Prize" is all about big business. BIG, BIG,
BIG business. You know the story. First, there's the Chairman of the
Board (Burl Ives). He's fat, rich, ruthless, oh, so powerful and he's
emulating the business credo of P. T. Barnum.
Sure, there's a bright, ambitious young executive, trained to suc-
ceed the Chairman. He's Robert 'Taylor (if MGM says you're young,
yo'eyg ) n aualhr

Editorials printed in The Michigan Daily express the individuat opinions of staff writers or '
the editors. This must be noted in alt reprints.
Increase in Sales Tax
Not Financial Panacea.
GOVERNMENT has been complicated through should be determined where the fat is in the
the ages by the pdper-ideas of, men from budget and it should be cut accordingly. Do ed-
Aristotle to Lippman, but there is one govern- ucation, highways, welfare, mental health, pub-
mental issue which brings men down to earth lic health, and conservation really need so
-public finance. You don't have good govern- much dough? Who. says so? More locally, for
ment without sufficient income. instance, does the University really need the
The state of Michigan is face to face with full amount of its budget request? Does it
this fact now. Taxpayers are yelling for more need money more than the state's mental hos-
services. The Governor is recommending they pitals? There must be some corners that can
get them. And this leaves the Legislature the be cut.
problem of raising the dollars. This year they Second, the state would better tax those who
can't raise enough money to meet Soapy's bud- have the money or the "abilityto pay". This
get. would involve either the institution of a "pro-
Grapevine eavesdroppers in Lansing say a gressive" income tax similar to the federal gov-
group of GOP congressmen are now drumming ernment's or a corporation profit tax, Gov.
up support for a hike on the 3% sales tax. Williams' brainstorm. Either of these schemes
This doesn't seem to be the way toerase the would involve some public selling and some
deficit. First, to be honest, this proposal won't bucking of pressure groups but seem to be
get to first base in the Legislatu~re as a legis- the most intelligent approaches.
latively proposed constitutional amendment Third, it would be best to get away from
must muster two-thirds of both houses. Demo- "earmarking" funds to the local unitsand to
crats shy away from taxation which does not et them stand on their own two financial
smack of the "ability to pay" principle and feet. The answer is to give the local units
under the regressive sales tax Joe Factory- (school districts) greater taxing powers so
worker would pay the same percentage of his they can support themselves. The first step
grocery bill to the state as Culver Capitalist. in this direction would be the rescinding of
Second, by increasing the sales tax which is the constitutional amendment which puts a
doled out under the sales tax diversion amend- 15-mill ceiling on local governments meal
anent (78% is earmarked to local school dis- ticket - the property tax.
tricts), the Legislature is intensifying a bad Additionally, the local units could be given
situation. As it now stands, the Legislature greater lee-way in the areas of use and gross-
can use discretion on only one-third of the receipts taxes (maybe a tax on football tick-
money they collect. Local units have Lansing's ets in Ann Arbor).
hands tied. And even if a sales tax increase
helps the schbools over the hump, what about PUBLIC concern must provide the needed
mental health, roads, and other crucial areas political impetus in this area so that citi-
of need? tens of this state can receive the necessary
services from their government without giv-
THE ANSWER to the state's fiscal problems ing their whole paycheck to it.
seems to lie in three other areas. First, it -JAMES ELSMAN
Calendar Misses Of Residences
Human Factor And Retaliation
NEXT YEAR'S calendar, "the one the stu- THERE'S A new way to break room contracts
dents wanted," shows the absurd lengths at the Universtiy.
to which people will go to maintain the 15 week After being denied permission to break a
semester. contract, all one has to do is make remarks
School will re-open after Christnas vacation about food which get quoted in Detroit news-
on Friday, Jan. 3. papers around , food riot time. Pretty soon
It would appear that the calendaring com- the dissenters will get a- letter from the Quad
It w a rthatusy theglng:figurcalendngycom resident director calling him an "undesirable
mitteeargot t ere were pe le in oles and days resident" and asking him to leave "for the good
of the community'
For the out-of-state student, this means a Then the wonderful world of Ann Arbor
long journey for a day or two of classes fol- roming houses and apartments is opened.
lowed by a week-end. It means three days cut Of course, there is a disadvantage to this
out of vacation for a few class periods. system. The "undesireable" status goes on into
.Of course, students will probably solve the the permanent college record.
entire problem. They Just won't come back to And there are other disadvantages which
school uptil Sunday. apply to the University itself, a university that
This year saw a great many cuts when school has received an unusual amount of bad' pub-
began on Thursday. The cut increase will pro- licity of late. Such a university, which rightly
bably be proportionately greater next season. opposes expressions of student exhuberance
Teachers can prohibit cuts by scheduling like panty raids and food riots, might possibly
tests and papers for those days. But this will come under fire for displaying a little im-
not solve the problem. maturity of its own.
It is still early enough to make a calendar A university with the academic reputation
change. The group responsible should act now, of Michigan would do better by tolerating and
to prevent patchwork classes and ill feeling rectifying student complaints instead of in-
next January. dulging in petty retaliation on the student level.
Economic Gamble on Poland

</41,"' r ,


Syou're young) and naturally there
comes a time when the hero has
an ethical. rebellion. Fortuitously,
the time comes during the movie.
Of course there's a love interest
who provides the incentive for
our hero's reform, rewards him
gloriously and even manages,if
indirectly, the retirement of the
Chairman and his replacement by
the new Bob. Her name is Elisa-
beth Mueller but wait . . . she
doesn't fit in . . . she can act!
She's really good.
** *
types but you know all about
them. They're capably performed
by old pros like Mary Astor, Ced-
ric Hardwicke and Charles Co-
burn. I bet they get embarrassed.
What do you think?
Isn't it time for Hollywood to
indulge in some self-analysis? Is
big business really this bad? Are
they unjustly treating Wall Street
and Madison Avenue?' If not, are
movies. like "The Power and the
Prize" remedial? And what about
the public? Do they think we're so
sophisticated that we'll imme--
diately recognize hokum or do
they think we're so stupid that
we'll believe this drama to be real-
On the other hand, it's only a
movie. It's fiction. It was even
adapted from a fictional book.
Perhaps there's no social signifi-
cance at all; only an hour or so
tof release from real mundane
problems. Even if Hollywood would
deny such a suggestion, it's a rec-
ommended approach for potential
* * * _
IF YOU can't study, if vacation
wasn't long enough, if you want
to see Elisabeth Mueller, if you
cherish lines like, "There are
some things in life more impor-
tant than business and power",
then the Michigan Theatre has a
seat for you. But remember, final

S Itre Ein Ara

T HERE IS good reason for U.S.
Government interest in Saudi
Arabia. With American oil reserves
limited, Saudi Arabia represents
the richest remaining oilfield in
the world - though the areas
around it, largely developed by the
British, are also important.
However, the importance of this
oilfield is no justification, in the
opinion of many Senators, for
permitting the oil companies hold-
ing this area to get away with
overcharging the U.S. Navy, with
violation of the antitrust act, or
with possible criminal violation. It
is also no reason for permitting
them to dictate the Near East pol-
icy of the United States.
As reported in an earlier col-
umn, the Arabian-American Oil
Company was sued by the Justice
Department for $67,000,000 for
overcharging the U.S. Government.
If you inquire at the Justice De-
partment as to what has happened
to this suit, however, you will
draw a blank. One whole day of
inquiry at the Justice Department
by this column failed to get any
information on the status of the
suit, whether it still existed, or, if
not, whether it was ever settled.
AT THE TIME the. overcharge
was reported by a Republican-
dominated Senate investigating
committee, Sen. Owen Brewster of
Maine, its chairman, charged a
criminal conspiracy against the
oil companies in the Aramco com-
bine. Howeer, the then Democrat-
ic-controlled Justice Department
under Attorney General James Mc-
Granery let the statute of limita-
tions run until it was too late to
bring a criminal case. A civil sit

to collect the overcharge was fi-
nally filed.
The heads of some of the com-
panies which now own Aramco
were honored guests last week at
the state dinner given by President
Eisenhower for King Saud. They
were : Fred A. Davies, chairman of
Aramco; Brewster Jennings, chair-
man of Socony Mobil, who with his I
family contributed $7,000 to the
Eisenhower campaign; Augustus
C. Long, chairman of Texaco;
Monroe J. Rathbone, President of
Stan'dard of New Jersey, who con-
tributed X1,000.
The manner in which Aramco's
overcharge was made against the
U.S. Government is interesting.
The N'avy's contract for Arabian
oil was signed in June 1945 after
the war in Europe had ended and
when the Navy was getting ready
for the big push against Japan. It
was considered cheaper to pick up
the oil in the Near East, thus sav-
ing a haul halfway around the
The two naval officers who :sign-
ed the contract were Lt. Johr
Walsh, later with Standard of
N.J.; and Lt. D. E. Bodenschatz,
later with General Petroleum.
* * *
WHEN ARAMCO asked a price
of six cents a gallon for gasoline,
$1.05 a barrel for fuel oil, and $1.63
a barrel for diesel oi, the two lieu-
tenants balked. In 1941, James
Moffett, formerly of Standard of
N.J., then representing Aramco.
had written a letter to the Navy
offering gas at three cents a gal-
lon, fuel oil at 40 cents a barrel,
and diesel oil at 75 cents.
The two naval officers knew
that the prices asked by Aramco

were identical with the prices
quoted at the Gulf of Mexico. In
other words, Aramco refused to
give the Navy any reduction for
picking up the oil in the Near East
instead of hauling it halfway
around the world from Texas. Nor
was the Navy to get any reduction
as promised by Aramco in 1941 in
return for loans and lend-lease ad-
vanced to King Ibn Saud in lieu
of increased oil royalties.
So the two young naval officers
refused to accept the higher
prices. The negotiations dragged.
Handling the negotiations for Ar-
amco were H. G. Denham and C.
W. Barthelmes.
Arabian-American Oil Company a
sum in excess of $33,000,000." Bar-
thelmes said, "resulting in an esti-
mated profit to the company over
and above production, royalty, and
manufacturing costs of approxi-
mately $15,500,000."
He said he had had a chapce to
look at the cost of production fig-
ures and had reason to know what
he was talking about.
Despite this, higher-ups in the
Navy overruled the two lieuten-
ants and signed a contract with
Aramco for high-cost oil and gaso-
line. When Barthelmes was asked
by this writer why the Navy had
signed, he said he only knew Lts.
Walsh and Bodenschatz complain-
ed that someone had gone over
their heads. Lt. Walsh, when ques-
tioned by this writer, said he had
vigorously opposed the contract,
but superiors had repersed him. He
did not name the superiors.
(Copyright 1957 by Bell Syndicate, Inc.)


exams come up

-David Marlin

The Daily Official Bulletin is an
official publication of the University
of Michigan for which the Michigan
Daily assumes no editorial responsi-
bility. Notices should be sent in
TYPEWRITTEN form to Room 2553
Adminsitration Building, before 2
p.m. the day preceding publication.
Notices for Sunday Daily due at:00
p.m. Friday.
General Noices
Art Exhibition. Six new faculty mem-
bers of the Department of Art, School
of Architecture and Design. Paintings,
drawings, sculpture by A. Mullen, J.
E. L. Eldridge, J. Miller, A. Weber,; L.
Zamiska, and L. Tavelli. Rackham Gal-
leries, 10:00a.m-0:44-0 p.m., Feb. 4-18.
Reception Feb. 1, -9 p.m.
Selective Service College Qualifica-
tion Test will be given on campus
Thurs., April 18, 1957. Students may
apply for the applications between 8:00
a.m. and 12:00 noon, 1:00 p.m..and 5:00
p.m., Mon. through Fri., at Local Board
No. 85, Room 212, 103 East Liberty,
Ann Arbor. The deadline for securing
applications from Local Board No. 85
is 5:00 p.m. Tues., March 5, 1957.
To be eligible to take the Selective
Service College Qualification Test, an
(1) Must be a Selective Service regis-
trant who intends to request occupa-
tional deferment as a student;
(2) Must be satisfactorily pursuing
a full-time college course of instruc-
tion, undergraduate or graduate, lead-
ing to a degree;
(3) Must not previously have taken
the test.
Choral Uniorf Auditions. A few va-
cancies exist in the University Choral
Union - which will perform Verdi's
"Aida" and Vaughn Williams' "Five
Tudor Portraits" with the Philadelphia
Orchestra at the May Festival. Can-
didates particularly for the male sec-.
tions,. should see the Conductor, Les-
ter McCoy, at the offices of the Uni-
versity Musical Society, Buton Me-
morial Tower, for an appointment.
The University of Michigan Wolver-
ine Band will play for the Basketball
Game Sat. evening, Feb. 9. Conductor,
George Cavender, asks all members
to be present at 7:20 p.m.i1, the field
house for this engagement.
Student organizations planning to be
fictive during the second semester
must register in the office of Student
Affairs not later than March 2. Forms
for registration have been mailed to
the executive officer of each organi-
zation registered for the first semester.
Additionai forms may be secured in
the Office of Student Affairs, 1020
Administration Building. For proed-
ures and regulations relating to tu-
dent organizations, refer to UNIVER-
DISCIPLINE available in the Office of
Student Affairs.
Evaluation of Student Government
Council. The committee recently ap-
pointed by Vice-President Lewis to re-
port to him an evaluation of Student
Government Council invites communi-
cations from informed and interested
individuals and organizations on the
functioning and structure of Student
Government Council under the plan
adopted two years ago. Please address
'such communications without delay to
Prof. Lionel H. Laing, Chairman, Stu-
dent Government Cune iiEvaluation
committee, at 301 Michigan Union.
Student Government Council:
Summary of action, meeting of Feb.
6, 1957.
Approved: Minutes of previous meet-
ing. Apponitments: Election Director
Jim Childs, Polls Director, Don Zinger,
Interim Action: WJ.A.A. Bake Sale. Ac-
tivities: Feb. 23 Paul Bnyan Dne,
League, 9-12. March 1 Slide Rule Ball,
League, 9-12:30, March 5 La SociedgA
Hispanic, movie, "Flamenco," 7-9,
Architecture Aud.
Resignation: William J. Adams re-
signed as president,reffective imme-
diately; 'resignation from the Cunil
to be effective following officer elec-
The following student sponsored so-
cial events are approved for the com-
(Continued on page 11)






to the


No Rest .
To the Editor:
HAVING recently graduated from
the University of Michigan and
being imbued with the loyalties of
an interested alum, I was shocked
recently to read the following
comment in one of our leading
Mid-Western newspapers:
Cecil DeWolfe, a member of
the Tournament of Roses com-
mittee, said:
"I thought the Iowa band was
the finest we have ever had. in
the Rose Bowl, surpassing even
the Michigan band."
Evidently this statement reflect-
ed the general opinion of most
native Californians as well as the
millions of television viewers who
saw the Rose Bowl.
It serves as an omnous warning
that the mighty Michigan March-
ing Band dare not rest on its
vainglorious laurels of bygone
-H. Herman Moldenhauer, '56L


Associated Press News Analyst.
THE United States has decided that the de-
gree of Poland's new independence from
Russia warrants an economic gamble on her
Negotiations for a credit agreement enabling
the Poles to buy surplus farm products and
other materials are being entered into despite
unknowns in the Polish situation.
The Gomulka government seems to repre-
sent progress toward what the United States
would like to see as a first step toward politi-
cal resurrection -- a Tito-like independence.
When Tito broke away from the Kremlin
Editorial Staff
Editorial Director City Editor
GAIL GOLDSTEIN ................Personnel Director
ERNEST THEODOSSIN............Magazine Editor
JANE'I REARICK ... Associate Editorial Director
MARY ANN "HOMAS.... ... ..Features Editor
DAVID GREY ........ Sports Editor
RICHARD CRAMER............ Associate Sports Editor
STEPHEN REILPERN .........Associate Sports Editor
VIRGINIA ROBERTSON.,....... .. Women's Editor
JANE FOWLER ............Associate Women's Editor
ARLINE LEWIS. . . Women'sFeature Editor
.TOHN HIRTZEL............... Chief Photographer
Business Staff
DAVID SILVER. Business Manager
MILTON GOLDSTEIN Associate Business Manager
WILLIAM PUSCH ........... Advertising Manager

the West decided to take a chance by support-
ing his efforts to make it stick.
In the case of Gomulka, one question has
been whether to extend .aid now, in the hope
of strengthening and encouraging the freedom
movements or to wait and see whether furth-
er challenges would provide proof of a con-
tinuing independence.
' ASHINGTON authorities realize they are'
W about to start picking up the check for
Russia's years-long looting of the Polish econo-
my. Although revisions have been made in Po-
land's favor, it is still not known positively
just how much of this looting has been stopped.
by the new agreements Gomulka made in
Moscow. Maybe all of it has.
They also realize that Poland, lying between
Russia and East Germany and still host to
large Russian military contingents, is in a
military swivet.
Regardless of the agreement purportedly
giving Poland a veto over the movement of
Russian occupying troops, the troops are there
and could act on a moment's notice just as
Russian troops acted in Hungary.
Although he got into trouble with Stalin,
the United States still has no clear evidence
as to whether Gomulka is a Moscow Commu-
nist, acting to save communism in Poland, or
whether he is a Polish national Communist, a
Titoist, or no Communist at all.
NEVERTHELESS, the conduct of the Poznan
trials, revival of religious freedom, the elec-
tions in which the people voted overwhelming-
ly for Gomulka with the idea, true or not, thit
he was a symbol of increased liberty, have
encouraged the United States to take the

Calendar Resolution Passed; Forums Scheduled

Daily Staff writer
STUDENT Government Coun-
' cil has sent letters to Univer-
sity President Harlan Hatcher,
other members of the administra-
tion, and deans of the schools and
colleges informing them of the
Council's recent statement on the
University calendar.
Adopted at SGC's Jan. 16 meet-
ing, the resolution reads in part:
". ..there has been general dis-
satisfaction on the part of both
faculty and students with the un-
necessary problems caused by the
present University calendar.'
"In view of this, . .. it is doubt-
ful if a 15 full week semester is
actually being attained; and .
(SGC) therefore believes that an
immediate evaluation of the cal-
endar should take place.
"If all considerations are to be
truly represented, the present
evaluation committee is not ade-
quate for a satisfactory study.
"(SGC) recommends the es-
tablishment of a committee of all
concerned, including students,
teaching faculty, registrar's of-
fice, faculty counselors, and ath-
letic department to conduct an
evaluation of the present Uni-

tion and faculty members con-
cerned with the calendar.
The result is the above .state-
ment calling for an immediate
evaluation of the present calen-
SGC members will be waiting
to see what action the University
takes as a result of their strongly-
worded resolution. It is hoped the
resolution will not be ignored.
* * *
A DECIDED increase in the
number of talks, symposiums and
forums on campus is scheduled
for the present semester.
SGC's first forum, slated for
next Thursday, will be "Re-Eval-
uation of Financial Aid to Big Ten.
Athletes". The Council is lining
up several speakers for the panel
This forum will be followed by
several others, with the Univer-
sity calendar as a likely subject
for one of the future forums.
SGC has also given support to
the city's League of Women Voters
series of Town Talks this month,
encouraging student participa-
tion and attendance at the meet-
The first was held Wednesday.
Next Wednesday's Town Talk will

SGC also voted at a recent
meeting to invite the League of
Women Voters to hold follow-up
uieetings of their Town Talks
series in University buildings.
INTER-HOUSE Council has also
planned a series of symposiums
for the coming semester, sched-
uled on alternate Thursday eve-
The first three will be devoted
to talks on Protestantism, Juda-
ism and Catholicism, respectively.
A fourth has been tentatively
slated for a discussion of Resi-
dence Halls problems.
First of the symposiums, dealing
with the Protestant religion, was
scheduled for 7:30 p.m. Thursday
at West Quadrangle. However,
this date was found to be in con-
flict with the first SGC Forum
and has been changed to Feb.
19, the following Tuesday.
All in all, the progr'ams of talks
and forums for this semester rep-
resents a definite increase over
past semesters - both in number
and in student interest. It remains
only for the student to take ad-
vantage of what he is offered this

fund, 10 cents to the Hungarian
Student Relief and the remainder
paid for the cost and shipping of
the cards.
Petitioning for the scholarship
will be announced late next week,
according to Anne Woodard, '57,
NIA Committee chairman.





by Dick Bibler






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