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March 27, 1958 - Image 4

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Michigan Daily, 1958-03-27

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Let's Have No Mickey Mouse'

Smirditgau & al
Sixty-Eighth Year
h~r_ ,__ EDITED AND MANAGED BY STUDENTS OF THE UNIVERSITY OF MICHIGAN
"When Opinions Are Free UNDER AUTHORITY OF BOARD IN CONTROL OF STUDENT PUBLICATIONS
Truth Will Prevail" STUDENT PUBLICATIONS BLDG. * ANN ARBOR, MICH. * Phone NO 2-3241
Editorials printed in The Michigan Daily express the individual opinions of staff writers
or the editors. This mus t be noted in all reprints.
THURSDAY, MARCH 27, 1958 NIGHT EDITOR: JOHN WEICHER
Eisenhower Economic
Policy Blamed for Depression
THE NOW FAMOUS "Eisenhower smile" must' dustry have been "fixed"-more-or-less by mu-
be changing into a sickly grin these days tual consent of the companies concerned-at a
as the President realizes-we assume he does high profit level, relative to the, demand.
realize-the administration version of economic The companies, of course, claim the fault
"planning" has brought about a rather peculiar for high prices rests with the unions. They say
and frightening sort of depression. labor's demands for wages are excessive and
That we are indeed face-to-face with a management must keep prices up to make a
depression is evidenced in Department of Labor profit. The companies neglect to mention that
reports. According to these reports, well over under the old fashioned god of Supply and
hve million are now classified "unemployed" in Demand which they profess to worship, profits
addition to millions who now work a reduced were not considered sacred and untouchable.
number of hours, some for reduced wages., Rather, after dealing with labor as satisfactory
Peculiar feature of the depression is that the as possible, the company was expected to adjust
cost-of-living continues to reach new all-time its profit margin according to the demand evi-
,higs evry mnth.denced for its product.
highs every month.
Obviously, something has been added to the Ud
traditional depression pattern of joblessness BUT THEN, as we pointed out, Supply and
accompanied by increased purchasing power of Demand is dead.
what little money there is in circulation. This In addition to spoiling industry with "gravy"
addition spells disaster to the millions already defense contracts and lack of profit regulation,
unemployed and may well cause even more not to mention remarkable tax write-off savings
unemployment. programs for lean years, the administration has
There is little chance that consumers will runhead-on into the farm problem . and
increase consumption of heavy industry goods botched it.
-such as cars-as long as the prices of these Perhaps we should not be too critical in this
goods remain about constant while the prices area. After all, other administrations have
of food and services skyrocket-all this with botched the farm problem too. However, it
the spectre of unemployment and repossession seems to us that in light of the present depres-
hovering in the background. Thus, the grim sion, more effective use could be made of sur-
spiral continues, as the factories continue to pluses and the question of a soundly adminis-
Slay off workers and these workers inturn tered flexible parity program could profitably
reduce consumption. be considered.
Certainly, the present administration's farm
BLAME FOR THE DEPRESSION is not hard price support system has not been administered
to pinpoint. The present administration entirely in the public interest, with large pay-
stands accused by its own spokesmen. ments made to worthy enterpreneurs' for not
IT bor Statistics Commissioner Ewan Clague, planting cotton on golf courses.
explaining the latest living-cost rise, pointed Perhaps the government's greatest failing in
out that a rise in the cost of food was primarily this area has been insufficient control over
responsible. Clague noted blandly that farmers "middlemen" in the food industry. In any
had their recession a couple of years ago and event, the price of food must be brought quickly
now have a strengthened price situation. Clague into synchronization with the national eco-
also said rents, services, street car fares, hair- nomic picture.
cuts, utility rates and doctor bills have kept on Commissioner Clague, blaming bad crop
edging up slightly month by month. weather in the south for the food price-hike,
Evidently, the Republican god of Supply said food prices are governed largely by supply.
and Demand has been displaced. This is prob- He wisely observed that demand generally
ably to the good since he was a rather unde- stays the same because people always have to
pendable god anyway: Unfortunately, the new . eat. Commissioner Clague undoubtedly does not
Republican economic god is apparently an un- realize that food costs money.
stable mixture of "New Deal" price-fixing- Unfortunately, the unemployed do not have
carried on this time by Big Business-and the money to spare. What savings they have de-
traditional laissez-faire attitude on the admin- crease in value as the cost-of-living rises.
istration's part, moderated however, by an in- Another failure of the Eisenhower economic
terest in farm price supports and extensive god has been lack of regulation of the "service"
defense spending, prices mentioned by Commissioner Clague.
Judging his effectiveness by the havoc he Here again, Supply and Demand does not oper-
has wrought, this new god is extremely dispen- ate. The government attitude of laissez-faire
sible. In fact, survival necessitates this god be coupled with the Eisenhower "Its all in your
immediately traded in for a less dangerous, mind: smile, and the economy's sound" attitude
more humane model. encourages price-fixing and hiking. In this
Under the reign of the present administra- area, the motto seems to be "Take all the
tion's economic god, operations of some indus- traffic can bare, and then some."'
tries are financed almost wholly by public In short, the Eisehower economic god has
funds. These industries-principally the air- encouraged depression by misuse and disuse of
craft, munitins, and some divisions of the the very tools the New Deal used to curb it.
automotive companies-operate on a govern- Prices have been fixed-but at the whim of in-
ment-guaranteed cost-plus basis. Profits thus dustry. The value of Federal Deposit Insurance
insured might seem-to a layman-nothing has been negated by rising prices.
short of fabulous. The Eisenhower administration has gener-
Government support coupled with guaranteed ously made it possible for different segments of
profits has served as an inducement for the the economy to have their depressions at differ-
automotive industry to "take a chance" and ent times.
not cut prices to the extent warranted by the We call here for a change.
present depression. Prices throughout the in- -LEWIS COBURN
' INTERPRETING THE NEWS:

I Offshore' Purchases I

THE STATE OF -BUSINESS:
Steel Output Low,
But Industry Optimistic
By SAM DAWSON
NEW YORK UP)-Steel output is at its lowest for any nonstrike period
since April, 1952. But steelmen's confidence today is buoyed by many
new things.
One is the needs of today's hordes of children in the 1960's. Another
is the new uses and new steel products developed or within sight-with
scientific advances constantly demanding new alloys. And still another
is slump-born new vigor in the battle with other materials-masonry,
wood, plastics and other metals-for present markets.
On the side, there's some family feuding, as new alloys or processes
take over fields once held by older steel products. The competition

rI

WASHINGTON MERRY-GO-ROUND:
Commissioner Lee's Reward
By DREW PEARSON

isn't easy. Other materials seek
new markets, too.
But steel research is turning up
new fields as old ones decline.
Battleships may be passe and
tanks less in demand, but steel has
found new markets as curtain
walls for -buildings and in nuclear
power plants, in missiles and in
launching installations.
* * *
DEMANDS from fabricators and
end users of steel have brought a
host of new steel alloys into use.
Examples cited by Republic Steel's
commercial research division: pre-
cipitation hardness grades of
stainless for the aircraft industry,
and the recently developed alumi-
num coated steel sheets.
Steel research itself has blos-
somed since the war and is coming
up with new steel products on its
own. United States Steel reports
that 900 employes at its research
center, Monroeville, Pa., are work-
ing on 1,002 projects, such as
studies of boron steels to increase
effectiveness in high carbon steels
and improved alloys for high tem-
perature service. It has developed
a sandwich rolling process that
makes sheets only 0.033 of an inch
thick, for the aircraft and missile
industries.
* , , e
BETHLEHEM Steel president,
A. B. Homer, says new uses of steel
are steadily increasing, brighten-
ing the industry horizon.
Republic Steel reports its new
research center has great hopes
for a new process for direct re-
duction of iron ore. It stresses also
longterne sheets, lead and tin
plated, used in fuel tanks and air
filters on cars and trucks; plastic
coated steel pile; asbestos asphalt
coated culverts.
Jones & Laughlin has a new line
of high strength tubular products
for the deeper wells the oil indus-
try now drills.
t urnaboult
[N CANADA, where a national
campaign moved toward the
March 31 election date, Liberal
Challenger Lester Bowles Pearson
uncorked a dramatic bid for votes.
Reversing a stand he held when
he was Secretary of State for Ex-
ternal Affairs, Pearson declared
that Canada should press for an
immediate ban on nuclear bomb
tests. It was -the first time that
either candidate had introduced
the delicate and contentious issue
of atomic arms control into the
campaign.
Tory Prime Minister John Die-
fenbaker, seemingly holding a
solid lead in his bid for a new
mandate, ignored the Pearson pro-
posal, went right on talking about
domestic affairs.
-Time

WASHINGTON - One of the
most interesting members of
the Federal Communications
Commission is Robert E. Let, a
Republican and no relation to the
famed Civil War general, a Demo-
crat. He was appointed to this
key post in one of the most vital
commissions in government as a
reward for his help to Sen. Joe
McCarthy in two pieces of back-
stage business which all good Re-
publicans would now like to for-
get.
Lee's record shows that he has
continued to operate backstage
in the FCC as he did on behalf of
Senator McCarthy. Sworn Senate
records are available regarding
much of his background.
COMMISSIONER Lee has gone
down the line for National Air-
lines, whose New York counsel,
Roy Cohn, was also counsel for
the McCarthy committee. Lee re-
versed himself on a TV station in
Fresno, Calif., after Murray Cho-
tiner, campaign manager for Vice-
President Nixon, got into the pic-
ture. He reversed himself on
Channel 12 in Jacksonville, Fla.,
after the delightful and distin-
guished Monsignor Maurice
Sheehy intervened in the case.
This is part of the recent rec-
ord. The early Lee record goes
back to 1950 when Joe McCarthy
had made the amazing charge
that there were "205 card-carry-

ing Communists" in the State De-
partment "known to the Secre-
tary of State," and then found he
couldn't prove it. Lee came to his
rescue at that time by giving Mc-
Carthy the list of 81 security-risk
cases on file with the House Ap-
propriations Committee of which
he was minority (Republican)
clerk. The names were under lock
and key and were referred to by
case numbers, 'so that congress-
men knew the numbers but not
the names attached to the num-
bers. Lee supplied McCarthy with
the secret code and the names.
* * ,
HAVING DONE this favor for
McCarthy, Lee plunged into the
Maryland 1950 campaign in which
McCarthy was trying to defeat
Sen. Millard E. Tydings, who had
had the courage to challenge and
investigate Joe's charges against
the State Department.
There ensued one of the dirtiest
election campaigns in recent his-
tory, during which a Baltimore
printer who balked at printing
McCarthy literature was shang-
haied, duringswhich McCarthy
collected thousands of dollars
from Texas, Illinois and Michigan.
and during which he circulated a
faked photo of Tydings in friend-
ly pose with communist leader
Earl Browder.
Commissioner Lee, who now sits
on the FCC in alleged impartial

judgment on TV licenses, was in
the thick of this campaign. His
job, according to sworn Senate
testimony, was to pick up checks
in Baltimore, deposit them in his
wife's account in the National
Capital Bank in Washington, and
then pay for addressing 300,000
post cards.
As a result, a large part of
Maryland woke up two days be-
fore election with what they
thought was a personal handwrit-
ten card from the Republican
candidate, reading: "I shall be
deeply grateful for your vote-on
Tuesday-John Marshall Butler."
* * * - -
AMONG the checks deposited to
Lee's wife's account were those
of Alvin Bentley, now congress-
man from Michigan, grandson of
a founder of General Motors, for
$5,000; and from Douglas B. Mar-
shall, son-in-law of Texas oil mil-
lionaire H. R. Cullen, for $500.
It is clearly against Maryland
law to handle funds in the name
of a political candidate unless you
register for such purpose. When
the scandals of the Maryland
campaign were thoroughly inves-
tigated by the Senate, however,
one man, Jon Jonkel, was made
the goat. He pleaded guilty to vi-
olating the election laws. Others
who, according to Senate testi-
mony likewise appeared guilty,
escaped action.
(Copyright 1958 by Bell Syndicate, Inc.)

DAILY
OFFICIAL
BULLETIN
The Daily Official Bulletin Is a
official publication, of the Univer-
sity of Michigan for which the
Michigan Dailyaassumes no edi-
torial tesponsibility. Notices should
be sent in TYPEWRITTEN form to
Room 3519 Administration Build-
ing, before 2 p.m. the day preceding
publication. Notices for Sunday
Daily due at 2:00 p.m. Friday.
THURSDAY, MARCH 27, 1958
VOL. LXVIII, NO. 128
General Notices
Regents' Meeting: Fri., April 18. Com-
munications for consideration at this
meeting must be in the President's
hands not later than Tues., April'8.
There will be an International Cen-
ter Tea, sponsored by the International
Center and the International Students
Association this Thurs., Mar. 27, from
4:30 to 6:00 p.m. at the International
Center.
All students who expect education
and training allowance under Public
Law 550 (Korea G.I. Bill) or Public Law
634 (Orphans' Bill) must get instruc-
tors' signatures at last class meetings
in March on Dean's Monthly Certifica-
tion form and turn the completed form
in to]Dean's office by 5:00 p.m. Thurs.,
April 3.
Notice: No social activities will be
registered on or after May 24.
The following student sponsored so-
cial events are approved for the coming
weekend.
March 28: Anderson, Alpha Phi Ome-.
ga, Delta Theta Phi, Triangle.
March 29: Acacia, Alpha Chi Sigma,
Alpha Delta Phi, Alpha Epsilon Pi, Al-
pha Sigma Phi, Alpha Tau Omega, Beta
Theta Pi, Delta Kappa Epsilon, Delta
Sigma Phi, Delta Tau Delta, Delta
Theta Phi, Delta Upsilon, Greene, Hins-
dale E.Q., Huber, Kappa Sigma, Michi-
gan, Nu Sigma Nu, Phi Epsilon P, 'hi
Chi, Phi Gamma Delta, Phi Kappa Psi
Phi Sigma Delta, Phi Sigma Kappa, Psi
Upsilon, Sigma Alpha Epsilon, Sigma .
Alpha Mu, Sigma Nu, Sigma Phi, Ti-
gon, Student Council, Bus. Ad., Strauss,
Theta Chi, Theta Delta Chi, Tau Delta
Phi, Theta Xi, Triangle, Zeta Psi.
March 30: Angell (Lloyd), Delta The
ta Phi, Mosher, Victor Vaughan.
Late Registrations: Chi Phi, Phi Rho
Sigma.
Undergraduate Library: From Mon.,
March 31, through Thurs., April 3,
reservations may be placed at a special
reservation desk on the Second Floor
of the Undergraduate Library for Re-
serve Books to be circulated from the
Undergraduate Library over the Spring
Recess.
Reservations may be placed for one
book per, person per course during the
following hours: 2:00-5:00 p.m., Mon-
day-Thursday. If there is only one copy
available in the Undergraduate Li-
brary, no reservation will be taken.
In order to fill the reservations, Re
serve Books will not circulate April 3.
Reserve Books may not be charged out
for the Spring Recess without a reser-
vation.
The.Reserve Books that are being
held will be available from 8:00 a.m.-
5:00 p.m., Fri., April 4. Books not
claimed by 5:00 p.m. on that day will
be returned to the stacks.
Reserve Books that have not been
charged out over the Spring Recess
will circulate according to the follow-
ing schedule:
Out Fri., April 4; MDue April 7 at 9:00
a.m.
Out Sat., April 5, 8:00 a.m.; Due April
7 at 9:00 a.m.
Out Mon., April 7-Thurs., April 10.
4:00 p.m.; Due following morning at
9:00
Out Fri., April 11, 4:00 p.m.; Due
April 14 at 9:00 a.m.
Academic Notices
Zoology 217 (Cellular Physiology). The
first meeting of this course will be
held Mon., April 14, in 4014 N.S. at 8
a.m. Previous D.O.B. notice of date
was incorrect.
Analysis Seminar: Mr. Philip Church
will speak on "Quasi Conformal Map-
pings In Three Dimensions." Meeting is
in 3010 Angell Hall, Thurs., Mar. 27
at 3:00 p.m.
402 Interdisciplinary Seminar on the
Application of Mathematics to Social
Science. "So'me Studies in Quantitative
Judgment." W. Torgerson, Massachu-
stts Institute of Technology. 3:30 p.m.,
Thurs., Mar. 27, 3217 Angell Hall.
Cancer Research Seminar: "Biosyn-
thesis of Nucleic Acid Pentoses in In-
tact Cells." Dr. Isadore A. Bernstein,

Dept. of Dermatology. Thurs., Mar. 27,
7:3 p.m., Rm. 1564, E. Med. Bldg.
Physical Edducation - Women: Wo'
men students who have not completed
their physical education requirement
will register for the spring season on
Wed., Mar. 26, 6:30 p.m. to 9:30 p.m. and
on Thurs., Mar,. 27, 8 a.m. to noon.
Registration will be held on the main
floor of Barbour Gymnasium. Students
registering on Wed. evening,~ please use
the basement entrance. Students who
have completed their physical educa-
tion requirement and wish to register
electively may do so on Mon.,Tues.
or Wed., Mar. 31, Apr. 1 and 2 from S
a.m. to noon in Barbour Gymnasium.
Preliminary Ph.D. Examinations In
Economics: Theory examinations will be
given on Thurs., and Fri., Apr. 24 and
25, 1958. The examinations in other sub-
jects will be given beginning on Mon.,
Apr, 28. Each student planning to take
these examinations should leave with
the secretary of the dept. of econom-

I

4

t

4'

LETTERS TO THE EDITOR:
Local Realtors Accused of Irresponsibility

By J. M. ROBERTS
Associated Press News Analyst
T HE UNITED STATES has saved consider-
able money by meeting some of its foreign
military obligations under mutual assistance
agreements by "offshore" purchases.
It means that, instead of paying American
prices for manufacture of war materiel and
shipping it abroad, the United States pays
foreign prices to manufacturers in the re-
cipient countries.
'Repayment schemes have been tailored to fit
the needs of the Allies in maintaining a gen-
erally solid military and economic front. Part
of the repayments have been used to pay for
U.S. operations in the various countries. Some-
times repayment, in foreign currency, is re-
bated for use in foreign developments of value
to the general welfare of the free world.
This is also the case with economic aid.
DURING the business boom, this has not at-
tracted much attention in this country,
since a major portion of foreign military equip-
ment has been made in the U.S.
Widespread complaint has developed, how-
ever, as a result of the recession.
With heavy unemployment in the automo-
bile industry, for instance, revelation that
vehicles for the Japanese military are being
bought in Japan by the United States has
aroused opposition.
The Defense Departmentrreplies that 85 per
cent of this year's appropriations for foreign
military aid will go to American manufacturers.

The economy of the United States is recog-
nized abroad as well as at home as the key-
stone in the free world structure. When and if
it comes to the point where there is not
enough to go round, then the question becomes
one of allocation.
Nuclear Arrms
For West Germany?
"YOU CAN'T KEEP the Germans down," goes
the popular saying, and it may take on
more sad validity if the United States continues
following its current policy of rearming West
Germany-now with nuclear weapons. It seems
we should stop and think long and hard before
undertaking anything so contrary to historical
experience, so frustrating to a solution of the
cold war, so premature and irrevocable.
True, the U.S. will attempt to maintain some
control over the use of nuclear warheads in
West Germany, but this is likely just the
beginning of a policy which will find the
Germans finally manufacturing and controlling
their own nuclear weapons. Why a nuclear
rearmed, much less rearmed, West Germany
is necessary to the defensive security of the
world, NATO and the U.S. we have never been
convinced, especially considering the nature of
long-range missile warfare.
How such a move will bring us closer to what
the world needs most-a negotiated, just, in-
sured peace between the East and West-we
fail to understand, unless it is argued that

To the Editor:
T HE PURPOSE of this letter is
to call your attention to a con-
dition existing in Ann Arbor-the
problem of unethical practices by
some members of the real estate
profession. We believe the en-
closed account of our own experi-
ences is not unique; in' fact, this
kind of experience seems comnmon
enough to deserve concern and
study by responsible officials.,
The situation in which the
homeowners in Westaire subdivi-
sion find themselves highlights
the extent of legal and financial
damage that can be done by ex-
treme irresponsibility on the part
of a single real estate firm. We
believe that this case is the out-
growth of a general climate in
which the Realtors Established
Code of Ethics is being replaced in
too many instances by the slogan
of "Let the Buyer Beware"-in
fact, the seller should also be care-
ful.
-Mr. and Mrs. Ernest Harburg
(EDITOR'S NOTE: Following is a
rewritten and somewhat condensed
version of the sarburgs' account of
their experiences. Except for the con-
clusion, tense has been changed from
first to third person.)
IN MARCH, 1957, Ernest Harburg
was accepted for graduate work
at the University, and began
arrangements to move with his
family (wife and three young
children) from their home in
Madison, Wis.

During his three-day stay here,
Harburg did find one suitable
house, for which he signed a con-
tract and paid a binder. Mrs. Har-
burg then came, and approved her
husband's choice. They both then
returned to Madison for the chil-
dren.
Two days later, they checked
with, a Madison lawyer, who called
an Ann Arbor lawyer and disclosed
that the contract was worthless
because the residents of the house,
who had accepted the Harburgs'
offer, were on a land contract and
could not sell without the owner's
approval. The realtor never men-
tioned the owner, nor was he con-
tacted until reached by the Har-
burg's lawyer. He declined their
offer.
* * *
THE SECOND week in June,
Harburg was notified by Agent 1
that she was negotiating directly
with the owner. She informed him
that the lot was large enough to
be divided in half, and the other
half sold. Harburg checked this
with his lawyer, found it to be un-
true, and severed connections with
the agent. The agent's actions
were fully supported throughout
by the owner of the realty firm, a
lawyer.
Harburg then contacted Agent
two, Company B, who advised him
to buy a lot and erect a precut
house on it. He found a suitable
lot, but had no time to check de-
tails. He procured several possible
house plans and returned to Madi-
-n 'PIX riac la Pr a tfir

house in his company's subdivi-
sion, and guaranteed them living
quarters until their home was
completed. He also advised them
of the possibility of getting a 30-
year FHA loan, something which
they have since found does not,
for all practical purposes, exist. A
contract was signed and deposit
made.
Two days later, back in Madi-
son, the Harburgs were informed
that Company B was threatened
with indictment by the FHA for
criminal fraud. Payment on the
binder check was stopped.
TEN DAYS later, the whole
family came to Ann Arbor and
moved into temporary quarters
offered by a local family. They
were now faced with two proposi-
tions: One concerned Agent 3,
Company C, and again involved
building on a lot. The Harburgs
were informed that the lot across
from the one of their choice was
owned by the local Board of Edu-
cation, but that the board's plans
were so indefinite that they could
be discounted. Checking inde-
pendently, Harburg discovered that
the city envisioned a grade school
-on its lot and a main access road
in front, which would mean assess-
ments for paving. Also, since it
was a corner lot, there was a
good chance that the other street
would also be paved. The agent
continued to discount this and
urged Harburg to sign a contract.
He refused.
The other proposition concerned

the apartment in advance. They
later learned that the agent had
told the sellers that FHA approval
would probably come through by
Oct. 1, and advised them to sign
a note on that date for the total
down payment due on their new
home. On this basis, they moved
into their new home, though they
could not meet the note without
receiving the Harburgs' down pay-
ment.
Harburg refused to be further
coerced by realtor's pressure tac-
tics. Realizing, however, that his
refusal was harming only the
sellers, who had acted in good
faith on the agent's advice, he
later made the down payment and
moved his family into the house
on a temporary land contract.
FHA. approval did not come
through until the second week in
December.
*S. S
IN MAKING this agreement,
however, the Harburgs had in-
sisted that the agent repay them
the rent money they would forfeit
by moving ahead of schedule. She
agreed, in the presence of the Har-
burg's lawyer, but asked them to
wait until the Dec. 15 closing. At
present, the agreement has not
been kept. The Harburgs' lawyer is
still working on this point.
In conclusion: "We feel that the
usual frustrations . . . of moving
were doubled by the fact that we
could not trust the people we had
to deal with to give us the whole

,/

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