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March 26, 1957 - Image 4

Resource type:
Michigan Daily, 1957-03-26

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Sixty-Seventh Year

(I-Letcha Have A Coupla Hunnert Grand Till Pay Day
But I ,Just Mislaid A Few Hunnert Grand"

When Opinions Are Free
Truth Will Prevail"

Editorials printed in The Michigan Daily express the individual opinions of staff writers or
the editors. This must be noted in all reprints.



" I




State Tax Structure
Hurts Higher Education
"If you throttle and restrict training, you throttle and restrict the ultimate growth of
society" - Regent Eugene Power, discussing the University's annual "struggle for funds"
with the Legislature.


Dramatic, Artistic
Impact in 'Great Man'
WHETHER OR NOT there is a real-life parallel to "The Great Man"
(Arthur Godfrey comes most readily to mind), the motion picture
parallel comes very close to being "Citizen Kane." While Jose Ferrer's
film is not such a masterpiece as Welles' production, the technique is
quite similar-the revelation of a character by the testimonies of those
who knew him. To be sure, "The Great Man" is far less complex and
ambitious, but nonetheless Ferrer has provided an exciting and beauti-



"...'',.r .

THE STATE LEGISLATURE is attacking the
problem of appropriations to higher educa-
tion with an erector set. In focusing their at-
tention on tuition and utilities charges, legis-
lators may be losing sight of more basic con-
Present tax structure in Michigan is proving
inadequate to meet the needs of higher edu-
cation. There are portents in negotiations be-
tween the University and the Legislature which
indicate troubled times for the University if
basic changes are not made.
Under the existing tax set-up, higher educa-
tion and mental health bear the brunt of sus-
taining budget cuts.
Roughly 70 per cent of tax revenues are be-
yond Legislative control. All gas and weight
taxes ($200,000,000) must go to highways. Two-
thirds of the sales tax plus all utilities taxes
($250,000,000) go to primary schools. Federal
grants (about $1,000,000) must be matched
with state funds and are all ear-marked.
This leaves the Legislature roughly 30 per
cent of its revenue to manipulate. And primary
recipients of this 30 per cent are -higher edu-
cation and mental health. When it comes to
economizing, the Legislature turns to higher
THE VULNERABILITY of higher education
has become more evident this year, with
deficit spending facing the Legislature.'
Several latent problems have been irritated.
The resident-non-resident ratio is being
subjected to scrutiny and criticism. The Uni-
versity has maintained, over an eight-decade
span, the highest percentage of out-state stu-
dents (31 per cent in 1956-57) among state
Although usually sympathetic to the argu-
ment that a diversified student body is valu-
able, legislators are now questioning the wis-
dom of burdening taxpayers with the responsi-
bility of educating non-residents. As the needs
of higher education increase drastically over
the next decade, and they inevitably will, it
is probable there will - be heavy pressure to
further limit out-state enrollment.
As a constitutional body, the Regents are
supposed to govern the University autonomous-
ly. In using appropriations as a lever to force
tuition up, the Legislature is invading the Re-
gents' prerogative to govern as they see best.
As the economic pinch becomes more acute,
the Legislature is apt to become more preoc-
cupied with Regent matters. Several Regents
voiced concern for this at their meeting Friday.

These factors have been present since the
University stopped receiving a guaranteed in-
come from the mill tax in the late 1930's. But
they don't become serious until, as now the
Legislature feels impelled to cut the budget;
and then they loom as indicators of the de-
cline in quality of higher education.
PRESIDENT HATCHER has suggested stabil-
izing the 20:80 ratio between student fees
and state appropriataions. This would help
the immediate problem by removing tuition
from the debate-spotlight so that attention can
be focused on bigger problems. But it doesn't
solve the main problem.
Experience has shown that the growth of
services in the state is faster than the increase
in tax receipts. This means present tax prob-
lems will become more acute.
THERE ARE two possibilities which would
make higher education less vulnerable: ear-
mark its appropriations, or remove restrictions
ori other tax funds so there will be greater
Regent Power suggested the first when he
called for a corporate income tax pegged for
education. This is unlikely to gain support in a
state dominated by large industry. The Legis-
lature is unhappy now at the large percentage
of funds over which it has little control and is
not likely to increase this percentage.
Another difficulty is that any guaranteed
income, especially from a source as unstable
as corporate profits, is liable to backfire during
economic setbacks.
What may help solve the problem is greater
flexibility within the state budget, To this
end, it might be worth abolishing the numer-
ous "special" taxes and instituting an income
tax which the Legislature could disburse as it
saw fit. This would spread the burden of bal-
ancing the budget over a wider area.
Pressure groups would fight such a proposal
bitterly (because they don't want to lose their
assured income) and the total impact of the
federal income tax might cause general fear
of a state income tax. But if higher education
is to remain healthy, some basic changes will
have to be made.
The Legislature will be forced soon to stop
objecting "no more taxes" and take a realistic
look at its tax structure. Then it might be
worth considering the state income tax.
City Editor

L, x "' j.
f .
s +t
1 I
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. .



J41Fp7-r'IE 4Lbj6TV'C


time that Dave Beck, potent,
harassed head of the Teamsters,
was under income-tax scrutiny.
But it has not been known how
the investigation started. It cant
now be revealed that it was actu-
ally ordered by President Harry
Truman and has been continued
by Internal Revenue since.
Income-tax troubles are con-
sidered to be the reason why the
big Teamster boss has been so
frantically selling off big wads of
real estate and why he also went
before the union's executive coun-
cil to sell his home and his furni-
ture to the union, even though the
union had already paid for various .
repairs on the home, and thus paid
for part of it twice.
The skein of Beck's farfiung
business operations is difficult to
unravel. The tax agents have been
working on it for some time and
find that he has real estate all the
way from the Washington, D.C.
suburbs to the West Coast.
* * *
HOWEVER, here is a quick look
at part of his financial empire:
Early in Beck's career his family
got into the beer business. Not
content with organizing the beer-
wagon drivers, Beck organized the
brewery workers. They had their
own union, but he moved in and
made them part of the Teamsters.
Then Beck's nephew, Norman Ges-
sert, became president of Sunset
Distributors which handles Rainier
beer in North Seattle. Beck him-
self, with his wife, has owned about
1,000 shares of Rainier stock.
Dave Beck Jr. is also president
of K and L Beverage Co., which
now handles Budweiser. For a long
time, no eastern beer was allowed
to enter Seattle. The Teamsters
wouldn't permit it. It was not dis-

tributed. But now Dave Beck's son
has the distributionship for An-
heuser-Busch of St..Louis.
Dave Beck's wife, Dorothy, also
holds stock in K and L Distribu-
tors which sells not only beer, but
whiskey and wine as far north as
Alaska. So the Beck family is right
in the beer business from bar back
to the brewery.
The Teamsters' constitution, by
the way, requires that its interna-
tional president shall "devote all
his time to the service of the broth-
* * *
ANOTHER part of Beck's finan-
cial empire which the tax agents
have taken a look at is his real
estate and finance agency. The
latter, the Northwest Securities
Corp., is an automobile finance
agency which does about $2,000,000
worth of business annually on new
and used cars, plus auto insurance.
Beck has borrowed part of the
money for his business ventures
from his own union, as he himself
said, to the tune of $300,000 to
$400,000 without interest. He has
also borrowed from the Occidental
Life Ins. Co. of California, which
handles the health and welfare
funds of 300,000 teamsters in the
12 western states. It has been glad
to lend Beck money at around 3%'
per cent, even at a time when
veterans were paying 4 per cent.
With this financial backing, Beck
has acquired a large interest in
the swankiest apartment house in
Seattle, Grosvenor House. It's a
356-unit building located across
from Teamster headquarters worth
about $3,500,000. A group of local
businessmen built it, made Beck
chairman of the board, and he is
now probably the chief owner.
Beck also organized the D and B
Investment Corp. and owns part of

the LBG Realty Corp. Through
them he has acquired apartment
houses, parking lots, beer-distribu-
ting buildings, etc., all around
* * *
SOME OF these were sold in a
hurry when he was reported to be
anxious to raise tax money.
They were sold in many cases to
his family or to family corpora-
tions at very nice prices. For in-
stance, Beck owned a piece of
property on 14th Avenue in Seattle
which was being used by Sunset
Distributors, which is owned by
his nephew, Norman Gessert, by
Mrs. Beck's niece, and by a Team-.
ster official, Albert Irvine.
Beck also sold two lots on East
Marginal Way to another of his
family companies. A family firm,
the K and L Distributing Co., had
been occupying the lots, and Beck
sold them to the Cosmopolitan Co.,
of which Dave Beck, Jr. is presi-
dent, with his nephew Gessert and
a Teamster official, Simon Wam-
pold, officers of the company.
Thus it was hard to say where
Beck's interest began and left off.
At any rate he made a profit of
$134,000 on the lots, having -held
them eight years.
* '. *
ANOTHER interesting real-es-
tate transaction was Beck's sale of
two lots to his own union for
$107,000. The deeds show that
Beck paid $1 each for the lots,
which are located right across
from Teamster Seattle headquar-
ters, therefore obviously property
the union someday would need.
However, Beck bought them in
1951 for the registered price of $1
each, though there may have been
some other unrecorded considera-
(Copyright 1957 by Bell Syndicate, Inc.)

fully made picture that fairly
crackles on the screen, building in
intensity and power from scene to
The plot, in brief, takes little
telling: a famous radio-TV humor-
ist, beloved by millions, is killed in
a crash, and a commentator who
is slated to take over the great
man's empire goes about prepar-
ing a memorial broadcast to honor
him. His method is to interview
people who were important in the
star's life, and gradually he un-
covers the truth-that the star was
the vilest swine and biggest phony
to ever grace the airwaves.
* * *
AFTER A WHILE, the .focal
point becomes clearly the problem
of the reporter-will he maintain
his integrity or will he gloss over
the truth in order to get the prize
It is a strong subject and it is
handled strongly in this treatment.
Before the film ends it is not only
the "great man" but the entire
radio-TV industry that becomes
subject to question. But this is far
from one of those films about the
"intrigues that go on behind Big
The character-vignette tech-
nique gives an opportunity for
sharply etched characterizations.
There is not a single performance
that falls below the high standard
and many are memorable. Julie
London as the star's sometime-
mistress, now dissipated at an
early age and taken to alcoholic
solace, handles her big scene with
a quiet intensity that drives right
to the heart of the matter. Direc-
tor Ferrer here subdues the style
so that the punch is below the sur-
Keenan Wynn plays the despic-
able toady who engineers the
scheme, acting with style and un-
derstanding. Ed Wynn, long re-
nowned as a comic, turns in a deli-
cate and genuinely touching per-
formance as the simple man who
first put the star on radio, Dean
Jagger's acid portrayal of the
smooth and serpentine president of
the broadcasting system is unfor-
gettable, as are the performances
of Russ Morgan as a phony band-
leader crony and Jim Backus as a
cynical press-agent.
* * *
reporter with real ability and in-
sight, showing us a man who be-
gins to sicken within his chosen
world but still functions by many
of its strictures.
As director, Ferrer keeps the
pace moving rapidly, employing a
semi-documentary style that gives
actuality to the film. By imagin-
atively moving his cameras and
toning his scenes, he colors the
film with various degrees of im-
pact. By letting the audience
watch the story unfold along with
the reporter, he gives a sense of
actual participation in the story,
so that the suspense is no trick.
By certain innovations in style-
such as the scene where the char-
acters listen to an important tape
recording of the great man and
the camera concentrates solely up-
on their facial expressions for a
full five minutes-he lifts the film
into the realm of creative expres-
There is a great deal of satire
in "The Great Man," a devotion to
accurate portrayal, a sort of deadly
perception, and a lot of simple
dramatic excitement. It is a film of
many merits, not the least of
which is craftsmanship.
-David Newman

The Daily Official Bulletin is an
official publication of the University
of Michigan for which the Michigan
Daily assumes no editorial respons-
bility. Notices should be sent in
TYPEWRITTEN form to Room 3553
Adminsitration Building, before S
p.m. the day preceding publication.
Notices for Sunday Daily due at 2:00
p.m. Friday.
General Notices
Regents' Meeting: Friday, April 19.
Communications for consideration at
this meeting must be in the President's
hands not later than April 10.
Late Permission: All women students
who attended the Junior Girls Play
Thursday., March 21, at Lydia Men-
delssohn Theatre had late permission
until 10:40 p.m.
Physical Education-Women students
Registration for the spring season for
women students in the required physi-
cal education program will be held on
Wednesday, March 27, 7:30 a.m. to 5:30
p.m. in Barbour Gymnasium. Please use
basement entrance.
Naval Officers to Present Officer Pro-
grams on March 26-29, in Mason Hall
Lobby, LTJG R. R. Randall from the
Office of Naval Officer Procurement,
Detroit, Michigan will be present to
provide information on all Naval pro-
grams which lead to a commission. Pri-
mary emphasis will be on the Officer
Candidate School (OCS) Program.
Representatives from the Navy Air
Station, Grosse Ile, Michigan wi pre-
sent information on all Naval Aviation
programs which lead to a commission.
Depending upon the educational
background, the programs offer col-
lege graduates, and students who have
completed two years of college, the op-
portunity to satisfy their military ob-
ligation as a naval officer. There are
also programs available for men who
plan to enter a professional field.
The Officer Qualification Test will
be administered during the visit. This
is the only written test required for ad-
mission to OCS.
The Alice Crocker Lloyd Fellowship
with,,a stipend of $750 is being offered
by the Alumnae Council of the Alumni
Association for 1957-5. It is open to
women graduates of a, accredited col-
lege or university. It may be used by
a Universtiy of Michigan graduate at
any college or university, but a gradu-
ate of any other university will be re-
quired to use the award on the Mich-
gan campus. Personality, achievement,
and leadership will be considered in
granting the award.
Application may be made through
theaAlumnae Council Office, Michigan
League, and must be filed by April 1.
Award will be announced by the end
of the current semester.
The Laurel Harper Seeley Scholar-
ship is announced by the Alumnae
Council of the Alumni Association for
1957-58. The award Is usually $200.00
and is open to both graduate and un-
dergraduate women. The award is made
on the basis of scholarship, contribu-
tion to University life and financial
Application may be made through
the Alumnae Council Office in the
Michigan League, and must be filed
before April 1. Award will be an-
nounced by the end of the current
The Mary L. Hinsdale Scholarship,
amounting totapproximately $125.00
(interest one'the endowment fund) is
available to undergraduate women who
are wholly or partially self-supporting
and who do not live in University resi-
dence halls or sorority houses. Girls
with better than average scholarship
and need will be considered. Application
blanks, obtainable at the Alumnae
Council Office, Michigan League,
should be filed by April 1. Award will
be granted for use during 1957-58 and
will be announced by the end of the
current semester.
Prof. Simone d'Ardenne, prof. of Ang-
lo-Saxon and Middle English at Liege
University, will give two lectures on
Wed., March 27: "The Open Knight In

the Fourteenth Century," at 4:10 p.m.,
Aud. C, Angell Hall, and "The Influence
of Old French on Middle English Ortho-
graphy," at 7:30, East Conference Room,
The University of Michigan Choir and
ISymphony Orchestra, with Maynard
Klein, conductor, and the Chorale Choir
composed of choir members from 23
Michigan high schools and conducted
by James B. Wallace, will perform
Bach's "The Passion of Our Lord Ac-
cording to St. Matthew," at 8:00 Wed.,
March 27, in Hill Auditorium. Soloists
include School of Music faculty mem-
bers Harry Jay Thompson, Jerry Law-
rence, Wendell Orr, Willis Patterson,
Kathleen Rush, Margaret Eddie and
Mary Pohly. Organist will be Marilyn
Mason Brown, harpsichordist, Charles
Schaefer. Open to the general public
without charge,





Bermuda Proposals

THE 'UPSHOT of the Bermuda Conference
appears to be American acceptance of de-
fense budget cut by Britain, as evidenced by
the proposal to co-ordinate guided missile de-
The best thing about this proposal is the
idea that the pool will save money. It is doubt-
ful if the pooling of atomic information will
supply any new information to the United
States scientists.
On the other hand, the removal of British
troops from bases around the world is a step
backward for the administration's policy of
keeping soldiers at strategic points,
SETTING aside the question of the value of
this policy, the move will necessarily force
major changes in American military strategy.
The plan to base intermediate range missiles
in Britain, which will not go into effect for an
estimated two years, appears to be a face-
saving device for the United States. But, any
number of things may happen in that time

which will render the whole concept of inter-
mediate range guided missiles obsolete.
If the new plan represents a change of direc-
tion of strategy, from primarily ground to mis-
sile warfare, the conference has accomplished
something. If, on the other hand, the United
States simply accepts the removal of British
forces without any substitute then the confer-
ence can be written off as an almost total loss,
at least on the basis of what information has
now been released.
THE OTHER proposal to come out of the
conference, foreign observation of American
nuclear tests, can be dismissed as so much hot
The proposal'is contingent on Russian accep-
tance of similar observers. Since Russia every
so often insists that it is not carrying on any
such tests, and would in no case admit anyone
else, the plan becomes impossible.
One wonders if it is but a smoke screen to
cover the absence of concrete accomplishment.


Thoughts on cummings, Nasser, Mayor Candidates

Return to Grand Alliance

(Letters to the editor must be in
good taste and should not exceed 300
words in length. The Daily reserves
the right to delete material for space
a lam en t i t on *

Associated Press News Analyst
T HE GRAND ALLIANCE is back in business.
That is the outstanding conclusion to be
drawn from the number of topics covered by
President Eisenhower and Prime Minister Mac-
millan at Bermuda.
For five months, since the government of
Editorial Staff
Editorial Director City Editor
Business Staff
DAVID SILVER, Business Manager
AILTON GOLDSTEIN ... Associate Business Manager

Anthony Eden decided unilaterally and surrep-
titiously to use force against Egypt, relations
between the United States and Britain have
been on a very limited and highly formal basis.
Once again there will be pooling of informa-
tion and mutual planning.
INDEED, after the scare undergone by both
nations, the importance of this may be better
recognized than ever.
Communiques after this sort of conference
can mean much or little. "Reaffirmation of
common interests" usually means little.
The agreement of the United States to
participate actively in the work of the Baghdad
Pact's miiltary committee, however, is some-
thing solid, and something which will require
hand-in-glove cooperation with Britain.
So is the decision to supply Britain with
guided missiles with the tacit understanding
that atomic warheads will be provided when

To the Editor:
ODE to the

English depart-


he ar
po etic


him my

Television presentation of Mayor
Brown, and Mr. Eldersveld March
22, this subject was directly ap-
proached and Mr. Eldersveld gave
direct answers. He proposed the
formation of a Citizens' Commit-
tee to study a long-range plan for
capital improvements and to pre-
sent this plan to the voters far in
advance of election days, as vari-
ous projects are well enough
planned to be voted upon.
Mayor Brown replied that he
had formed a citizens' committee,
but Mr. Eldersveld pointed out
that this was formed in January
and elections were in February.
The people had not been ,onsulted,
their will was not ascertained, ade-
4uate planning had not gone into
certain of the issues, so naturally
they were defeated. Mayor Brown
backed down, and admitted his
committee was formed in January.
The citizens have lost confidence
in capital improvements programs
under our present leadership since
the ill conceived and unrealistic
Veterans Memorial Park proposal

support of, worthwhile Capital Im-
provements and Urban Renewal.
Mr. Eldersveld has given definite
proposals for improving City-citi-
zen relations, and is capable of dy-
namic leadership.
It is too bad Mr. Blues missed
the TV program where this issue
was raised between the two aspir-
ants, or his editorial could have
more definitely supported Mr. El-
dersveld on this issue.
-Louis W. Lewis
On Nasser's String .. ,
To the Editor:
T WAS rather startled reading As-
sociated Press news analyst J.M.
Roberts' report on Nasser Friday
(March 22).
Roberts devotes his whole article
to an interview Elmo Hutchinson,
former chairman of the Israel-Jor-
dan Mixed Armistice Commission,
recently had with Nasser.
Quoting Hutchinson with a
straight face is pretty close to
quoting Nasser with r straight

gees return, or something to that
effect. He might as well have said
that Israel should accept an
Egyptian army of occupation in
Tel Aviv.
These conditions are so old and
phony no American should be ex-
pected to take them seriously. This
would be like asking the U.S. to
return to its colonial status, giv-
ing Michigan to the French and
the Southwest to Spain.
If the present border is tough
to defend, the 1947 lines are im-
possible, to say the least. There
is no earthly reason for interna-
tionalizing the Jewish section of
Jerusalem, which is devoid of holy
And the Arab refugees should be
compensated and resettled in the
Arab lands which have room for
them. The refugees have been so
inflamed that very few of them
would make good Israeli citizens.
-John Neufeld, Grad
More! . j
To the Editor.

-A. Greenbaum, '59

To the Editor:
BRAVO to Messrs. Matecum and
Urshel for their letter in Satur-
day's DAILY on SGC. They came
out and said in print what most of
us feel!!!



The regular noon showing this week
will be a new film, "~Southeast Asia:
Land and Peoples," at 12:30 p.m. Wed.,
March 27, in the Audio-Visual Educa-


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