Sixty-Eighth Year
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UNDAY, MAY 4, 1958 NIGHT EDITOR: LANE VANDER SLICE
Auto Talks Reach Crucial Stage
Unsold New Cars Indicate
Need for Market Re-Evaluation
"YOU AUTO BUY NOW" campaigns recently
swept the country in an attempt to boost
car sales and they created a great deal of noisy
enthusiasm.
Detroit has never been adverse to the "hard
sell" approach to car sales but the extent of
this campaign underscores the concern over
huge lots filled with unsold cars. But as the
car parades disperse and the promotion lags,
Detroit is still faced with the same basic prob-
lem . .. people just aren't anxious to buy cars.
It is a problem, however, that extends far
beyond the lines of unemployed that mark an
industrial town struck by recession. With one
out of every seven of the nation's workers at
least indirectly connected with the auto in-
dustry, the country as a whole suffers with the
economic headaches of Detroit.
The effect even reaches areas that pride
themselves for aloofness from the materialistic
concerns of an industry. In Michigan, a good
part of the state's income stems from taxes on
durable goods, including automobiles. As long
as the state depends in large part upon auto
sales for revenue andnthe universities remain
tax supported,- they cannot escape the con..
sequences of what happens in the automobile
world.
Like the rest of the changing world around
us, it's rather unpredictable. Car purchases,
like many of the rest of the nation's activities,
are largely emotionally motivated, resulting in
cars that are bigger, more powerful, and drip-
ping with chrome. This, the manufacturers say,
is what people want.
However, an inventory of about 900,000 un-
sold cars indicates that, at least partially, peo-
ple's wants change. At one time, for example,
there was a wide gap in quality and perform-
ance between the low-pricedtcars and the
"luxury automobiles" at the other end of the
price scale. In recent years however, the "small
cars" have grown to become only slightly re-
duced replicas of the higher priced makes which
then became desired for their "prestige value."
THE RECENT disproportionate dropoff in
sales among the middle and high price
brackets indicates prestige is a fad the country
may have finally outgrown.
Perhaps it's time for auto manufacturers to
post their own slogans on their desks, changed
to read "You Auto Think Now."
--MICHAEL KRAFT
By JAMESSEDER
Daily Staff Writer
THE CONTRACT negotiations
between the United Auto Work-
ers and the automobile industry
moved this weekend from the pre-
liminary headline-seeking speech
making into the serious and now
secret business of actually formu-
lating the new contract.
UAW President Walter Reu-
ther's first tactic has been, and
presumably still is, to delay final
negotiations until the fall when
increased car sales are expected
and the union will be in a stronger
position. Therefore, Reuther has
proposed an extension of the pre-
sent contract over the summer
with the provision that the in-
dustry lower its prices on car
models. This, he feels, will cut into
the manufacturers tremendous in-
ventory and also stimulate the
economy. Both of these results
would greatly strengthen the
UAW's position.
REUTHER has committed both
himself and the UAW to the con-
cept that lower prices will stimu-
late auto sales. If this doctrine
were tested 'and failed it, would
seriously hurt the prestige of both
Reuther and, the union. However,
recent indications, including testi-
mony before the Senate Antitrust
and Monopoly Subcommittee, sug-
gest that price may actually have
relatively little to do with auto
sales.
In any case, the industry re-
jected this offer. Perhaps they
merely feel satisfied with their
present bargaining position and
are unwilling to take the risk of
losing their advantage.
Either business improves and
the union's position would be
strengthened or the present poor
business climate might continue
with the possibility of ruining
either or both the UAW and Reu-
ther.
* * .
HOWEVER, does the auto indus-
try really want to ruin the UAW,
Reuther or both? If they do, this
may be their best opportunity. But
it is unlikely that they would at-
tempt any of this. Management
must, by now, recognize that labor
unions are an established part of
our politico - economic tradition,
and that efforts to destroy the
UAW are likely to arouse even the
non-labor groups. Then too, there
is the possibility that crushing
Reuther through the union might
make him a political martyr.
Thus, the industry has appar-
ently chosen to meet the question
of contracts now. Although their
bargaining position is extremely
strong, it is doubtful as to whether
they will be able to completely
dominate the union. For one thing
the labor movement in this coun-
try is deeply rooted and possesses
enormous resources, and the UAW
is one of the nation's -strongest
unions. Another factor with which
management must cope is Reuther.
His personal genius has more than
once subdued the automobile man-
ufacturers.
Car Glut
... IT IS NECESSARY to grasp
the fundamental fact that
the auto industry itself is in a
crisis far deeper than its leaders
are willing to admit publicly.. The
postwar honeymoon, when all you
had to do to sell a car was to build
one, is over.
There are today 56,000,000 auto-
mobiles registered in the United
States and 91 per cent of them are
less than 10 years old. The car
market would be glutted even
without the recession; the crisis
in motor transport consists not in
the lack of automobiles but in the
lack of highways to' accomodate
those already on the road.
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DESIGN INVESTMENT:
Styling 'To Break Buyer Resistance'
MSU's Budget Fortells Future
MICHIGAN STATE University proved its
point to state legislators this week when it
cut the budget to fit the lawmakers' reduced
operations appropriation. The plans for an
across-the-board slash in spending indicated
that the educators knew what they were talking
about when they submitted their budget needs
last fall.a
Although the University's plans will not be
completed until the Regents meeting at the end
of the month, it is most likely that it will have
to follow MSU's pattern. -
Several of the main points of the MSU budget
clearly indicate the detrimental effects of the
reduced appropriation.
A five per cent cut in the budget of the divi-
sions and operations of the university will not -
help to keep the standards of MSU on an equal
basis with most tax-supported colleges. Reduc-
tions in operations mean reduced facilities in
the classroom.
Maintenance of present enrollment at 20,000
only contradicts the state's ideal of having tax-
supported schools admit all qualified in-state
students. Some school should absorb the excess
qualified students, but no school seems able to
afford the task.
MSU's inability to raise the salaries of the
majority of the faculty will only increase the
danger of raiding from other schools. Nor will
the continued present salary level facilitate the
staff-recruitment program. This, too, will serve
to lower MSU's standards rather than raise
them.
FINALLY, curtailment of services to buildings
will lead to the decline of the physical plant.
Eventually, renovations will be needed on these
same buildings and this will only increase
MSU's capital outlay request next year. In this
respect, the state legislators have started a
vicious circle which may last for several years.
When the educators met the legislators in
their annual battle over the budget last month,
they carried with them basic arguments for un-
proving higher education in the state. They
certainly were qualified to put forth these
arguments. Yet they were considered by the
legislators to be too idealistic in view of the
state's financial condition.
Perhaps educators' concerns for the future
ideals were overplayed in the budget hearings
in Lansing; but this didnt warrant the legisla-
tors complete renunciation of them.
Now the state will have to realize that there
is a practical aspect to the educators plea for
more money. MSU's austerity budget is only the
beginning argument for next year's battle for
funds.
-JOAN KAATZ
By DAVID J. WILKIE
Associated Press Staff Writer
DETROIT - The auto industry
is making a huge investment in
1959 model cars. The sum prob-
ably will top last year's record-
smashing 1/2 billion dollar new
model outlay.
Out of the investment will come
some of the most broadly rede-
signed cars in industry history.
For the car makers it is a gigan-
tic gamble that major styling and.
engineering changes will break
through buyer resistance that has
dropped sales to the lowest level in
years.
Influencing each car builder is
the determination to gain a great-
er share of over-all car sales.
The outpouring of dollars in-
vested in the new models will be
reflected in wholly new bodies, ad-
vanced engine performance-with
the promise of more miles per gal-
lon of fuel-and even more luxu-
rious interiors.
* * *
DESPITE the success of foreign-
built small, low - priced models,
major United States car builders
are concentrating on larger cars,
General Motors and Ford are im-
porting smaller, low-priced cars to
meet the competition of foreign
auto manufacturers. They have
plans for building small cars and
putting them on sale when they
feel demand warrants it.
But their major efforts now are
concentrated on conventional size
cars. Some 1959 cars will be even
longer, lower and wider than 1958
models. And, if industry gossip is
accurate there will be more soar-
ing fins.
One development of recent years
as competition increased is that
the lower priced models became
more luxurious and more costly.
They moved into what formerly
had been known as the medium
price bracket.
For the near future, the hottest
FIT THE PEOPLE:
competition will be among Gener-
al Motors, Ford and Chrysler for
buyer preference in all price fields
embracing conventional size vehi-
cles. Last year Ford and Chrysler
took a sizable chunk of the mar-
ket from General Motors.
Cars 'Larger, Longer'
By NAN MARKEL
IT IS HEARTENING to see the automobile manufacturers working
along with vitamin pill manufacturers, medical researchers, dieticians,
and the super market chains in making everything bigger and better in
this country. As Americans grow and grow, the top men in the automo-
bile world have assured us, cars too, will grow, and grow and grow.. .
As quoted in a recent issue of U. S. News & World Report, Edward
M. Cole, general manager of Chevrolet and a General Motors vice
president, stated, "... people are getting larger physically. And Ameri-
cans," he said, "are considerably larger than Europeans. For equal com-
fort, they need larger cars."~
Meanwhile, in lands with somewhat shorter and narrower people,
car sales are booming. The auto industry in Europe, plus thole of Canada
and Japan, is bringing out cars at the rate of 5.7 million a year, and.
could sell more than that if they could be produced.
If the auto industry in the United States is fortunate, it will sell
some 5.5 million specimens of "Detroit iron." American Motors Corpora-
tion, the only American manufacturer enjoying some degree of success-
"Our Rambler sales are up 49 per cent for the model years as against a
year ago," president George Romney says-produces a compact low-cost
car.
But perhaps recent superman trends in automobile design may
solve employment problems after all. The larger cars heighten the
problem of urban congestion, making larger parking spaces and wider
streets necessary. They also aggravate the general highway condition,
for safety minded planning councils cannot very well allow the bigger
and better cars to contend for room on narrow roads. Already Congress
has appropriated $1,800,000 for highway development. And by the time
the needed highways and streets are built, the auto workers may return
to their jobs, for the current models will then need replacing.
London.,
Superb
G EORGE LONDON demon-
strated his command of oper-
atic roles in four languages last
night, as the May Festival finally
got off the ground. London's full
rich voice, remarkable breath con-
trol, immense vocal power, to-
gether with his masterful re-crea-
tion of four diverse characters,
show him to be one of the most
versatile singers on the contem-
porary scene.
London was equally capable of
satisfying the vocal demands of
Ford's Monologue from Act II of
"Falstaff," an impassioned solilo-
quy on the faithlessness of wom-
en; p, more restrained aria from
"Tannhauser;" 'and the infamous
but humorous "Madamina" of
Leporello from "Don Giovanni."
If one must search for some-
thing to criticize here, one can
only regret that London had not
been cast in the more familiar
role of Don. Giovanni, although
his Leporello was stylistically
faultless.
High point of the evening was
unquestionably London's singing
of the so-called "Clock Scene"
from Moussorgsky's "Boris Godou-
noff." Even in a concert version of
the opera, one could sense that
London is a great actor; his por-
trayal of Boris in this tense and
violently emotional scene defies
description.
THE PROGRAM began with a
good and noisy performance of
"Don Juan," Richard Strauss'
first successful tone poem. The
lush strings and powerful brass
of the Orchestra were much in
evidence; also the fine solo oboe of
John de Lancie.
Contrasting with 19th century
romantic Strauss was the "Louisi-
ana Story," an unpretentious bit
of mood music by critic-composer
Virgil Thompson. Originally writ-
ten for a documentary film, this
is another of Thompson's cosmo-
politan compositions, combining
the American folk idiom with out-
right romanticism.
In spite of Rimsky-Korsakov's
efforts to re-orchestrate "Boris
Goudounoff" into a glorified Rus-
sian Easter Overture, much of the
crude strength of Moussorgsky's
original idea survives. But the
loss of the chorus, together with
the new- re-orchestration required
for the suite presented here gave
the audience only a glimmer of
the potential power of the original.
After a somewhat re-written
prologue, the famous Coronation
Scene fell a trifle flat, for all the
electronic bells and percussion
effects. Loss of the chorus and
extensive musical cuts were to
blame here. Of course London's
contributions were superb, but the
orchestra could never substitute
for the missing chorus. This lack
was so keenly felt by anyone at all
familiar with the work that one
marvels that Choral Union mem-
bers sitting on stage could refrain
from joining in.
Although we must be thankful
for the opportunity to hear these
excerpts from "Boris," and espe-
cially for Mr. London's contribu-
tions, it is hoped that we shall
hear. another complete perform-
ance of this immense and power-'
ful opera soon. "Boris" was last
performed at May Festival in 1935.
-David Kessel
Afternoon ..
HUNGARY has produced three
significant composers this century
and yesterday afternoon the Phil-
adelphia Orchestra, William Smith
conducting, performed a major
work from each of them.
The concert opened with the
Suite in F sharp minor by Erno
von Dohnanyi. Music with a herit-
age from Richard Strauss and
Franz Liszt, it is an imaginatively
written work. The orchestra was
competent, if not rather excep-
tional, for it is a much harder work
to play than to listen to.
The Festival Youth Chorus,
under the direction of Marguerite
Hood, sang (in English) a selec-
tion of captivating Hungarian Folk
Songs, successfully retaining most
of the uneven phrase lengths and
interesting melodic accents.
Sandwiched between the de-
lightful children's songs and the
humid intermission was a noisy
performance of Liszt's Rakoczy
March. It is an easily forgettable
piece of bombast, particularly in
comparison with the Berlioz ver-
sion of the same.
THE HIGHLIGHT of the con-
cert was the Piano Concerto No. 2
of Bela Bartok. This work is con-
structed of complex sonic material
in a most economical manner. Yet
the effect is gargantuan. Its driv-
ing marcato rhythms and cluster-
ed sonorities are contrasted with a
lyrical slow movement-a dialogue
between a sustained string choral
and a terse piano line. The Presto
section of the second movement is
possibly the finest fantasy of
sound in music literature.
Gyorgy Sandor's performance
was ideal. His phenomenal articu-
lation serves the gesture of the
music well, and this was upper-
most in making the entire per-
formance a success.
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IN NOVEMBER:
AS OTHERS SEE IT:
Chrome Hides Rusting Prestige
CIO-Backed Williams Nears Record
SICK, SICK, SICK! The American economy is
still struggling along in the midst of a
recession despite heroic efforts-at least ver-
bally-to engender a resurgence of the pros-
perity we enjoyed only last summer. And per-
haps the hardest hit of the major industries is
the once fair-haired child, the Automobile in-
dustry.}
Sales have fallen preciptiously and criticism
is heaped upon auto manufacturers as makers
of fintabulated chrome covered cheese boxes-
large economy size.
HEY ARE ACCUSED of failing to provide
the consumer with a sufficient variety of
models-that they have all tended towards an
ostentatious, high-powered and almost stand-
ardized model.
They are accused of pursuing power, speed,
and gadgetry to extremes.
They are accused of consenting to an orgy of
design-oriented excess, without proper regard
for safety and function. George Romney, presi-
dent of American Motors, one of their own, is
one of the severest critics of the big car phi-
f t1C htn' 't r
losophy, still officially embraced by Detroit,
despite apprehensions.
But although much of what has been laid at
their door is probably true, a development of
even greater potential significance seems clev
enough to conjecture about.
Automobiles apparently have less status and
prestige value than was true only a few years
ago. Observers of the American scene say that
customers are more interested in an automobile
as a mode of transportation than as a status
symbol. If this is true, then therCadillac parked
in the driveway will no longer be the symbol
of the man who "has arrived."
THISPORTENDS trouble for Detroit manu-
facturers in another way, too. This bent
for functional transportation-and the trend
to foreign automobiles is cited as "proof"-
means that American manufacturers must
decide whether or not small cars are the answer,
and then must sell them.
But the American small car has always been
regarded as inferior, an attitude fostered by
sales minded auto manufacturers (a tag that
has never quite been placed on foreign cars,
perhaps explaining their sales superiority over
present small American cars), and the Detroit
manufacturers will have to overcome this
handicap as well as take the gamble of a
By MICHAEL KRAFT
Daily Staff Writer
THERE ONCE WAS a time that
Michigap1 Republicans could
laugh.
But that was 10 years ago and
this week, some of them didn't
even bother to shrug their shoul-
ders in resignation when Gov. G.
Mennen Williams finally made the
official announcement that he will
seek a sixth record setting term.
Now that the governor has as-
sumed national stature, state Re-
publicans are turning out even
more ammunition to throw at him.
Usually when a political figure
makes a number of talks outside
his own state, as Gov. Williams
has been doing in recent months,
he either needs money or thinks
he needs a national- office. Not
even his friends can force them-
selves to think that the heir to a
soap company fortune needs the
money.
THE EMPTY CH AI R
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CR NN * AM
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Republican legislators charge
that during 1957, the Governor
spent 205 days away from his
office. Sen. John Smeekens (R-
Coldwater) declares the people of
Michigan "deserve more than an
empty chair in the state's highest
office."
But while Republicans claim
Gov. Williams will be too busy
seeking the 1960 Democratic presi-
dential nomination to spend suf-
ficient time in Lansing, the major
attack will focus on charges of
"mismanagement" of the state's
economy.
They assert that he gave false
Impressions of the state's revenue
and that his demands for a cor-
porate profits tax help createan
unfavorable business climate.
In turn, Gov. Williams, when he
announced his bid for an unpreci-
dented sixth term, declared GOP
leaders "have helped kick the eco-
nomy downhill by blackening the
name of our state as a business
location."
The interchange between the
two camps assumes added import-
ance this year as the auto com-
panies ,which oppose him and the
United Auto Workers who support
voters than during the past five
campaigns. Prof. Paul Bagwell,
head of the Communications Skills
Department at Michigan State
University appears to have a clear.
path to the GOP nomination but
seems to have trouble pursuading
other Republicans to provide
funds.
Republican optimists predict
business may improve by next fall
-few say the same about politics.
DAILY
OFFICIAL
BULLETIN
The Daily Official Bulletin is an
official publication of the Univer-
sity of Michigan for which the
Michigan Daily assumes no edi-
torial responsibility. 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.
SUNDAY, MAY 4, 1958
VOL. LXVIII, NO. 153
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