NAACP CENSURE: *TWO VIEWS See, Page 4 u1 Sixty-Seven Years of Editorial Freedom 4v AL AL .9 :43 ty A0 FAIRWARM _... __ cx ru XVTTT. N6 160 ANN ARBOR, MICHIGAN, TUESDAY, MAY 13, 1958 FIVE CENTS Jury Indicts Drug Firms On Violation Five Companies Deny Planning Price Fix TRENTON, N.J. (P)-A federal grand jury yesterday charged five big drug companies with violating the antitrust laws in the sale of polio vaccine to governmental The five were indicted for con- spiring to fix prices and eliminate' competition in the sale of the vac- tine to federal, state and local governments. The bulk of the 125 million dol- Lars of vaccine sold from the time the Salk formula was announced until the end of 1957 went to public agencies. The firms are: Eli Lilly & Co., Indianapolis, Ind.; Allie Labora- tories, Inc., Kansas City, Mo.; American Home Products Corp., New York City; Merck & Co., Rahway, N.J.; and Parke, Davis & Co., Detroit. The defendant concerns denied the charges. Cutter Laboratories of Califor- nia was also licensed to produce the vaccine but the Justice De- parment said the company stopped production at the time of the alleged violations. Cutter halted production when questions were raised, as to the safety of its pro- duct. Assistant Attorney General Vic- for R. Hansen, in charge of the antitrust division, said in Wash- ington: "The indictment returned yes- terday charges 'that vaccine pro- ducers have combined to submit niform bids to public agencies, to adopt noncompetitive terms and' conditions of sale, and to estab- lish uniform pricing enethods. "Price-fixing activities involving such a significant industry and such substantial sales require criminal action by the depart- ment." Congressmen Vote Pay Hike To Servicemen Board Approves House for Grads By WILLIAM RANSOM A recommenda.tion converting Tyler House, East Quad, into an all-graduate house was unanimously approved by the Residence Hall Board of Governors yesterday. The Board later rejected a proposal to turn Prescott House, East Quadrangle, into an experimental all-freshman house. The vote was five to three, with two abstentions. A substitute suggestion by Prof. Lionel Laing of the political science department that Prescott be opened to both graduate and transfer students n s.order of priority, met informal agreement. No official vote was necessary on the. latter. proposal as it did not constitute a new policy change, the Board decided. Ignore NAACP Charges No action was taken on the charges made Saturday by the Michi- gan State Conference of the National Association for the Advancement Moab Bujrns U.S. Library In ILebanon BEIRUT, Lebanon UP)-- Angry. mobs shouting; for the downfall tof Lebanon's. pro-Western govern- ment burned another United States library yesterday. In northern Lebanon,. an Iraqi oil pipeline was blown up. Strikes and shootings spread up and down the country. Rioters smashed through a po- lice guard outsidethe United States Information Agency library in Beirut, hurled books and furni- ture into the street and set them ablaze. Then they put the torch to the interior. A general strike brought trans- portation and business to a stand- still yesterday. At least four oth- er buildings were' set afire. Auto- mobiles were overturned. Riothers and reinforced security Aorces exchanged fire several tmesat different points in the, city. At least five persons-includ- ing a woman and a child -- were reported killed and 20wounded in this fighting. The, library fire wnas the second in Lebanonin three days. A mob supported by demonstratrs with stolen guns destroyed a rSIA li- brary in Tripoli Saturday. Eleven persons were killed and 1I6 wounded in the fighting that day with government security forcesr. Trian gles T71ap From 'neath the heels of dusty feet, Within the vitals of the Arch, The Great Bronze Seal called loy- al men In the' deal of night to march. So came the men of TRIANGLES. Once more beneath the pointed spires Now faces toiled with fear; The seal of Triangles again shone bright, Cleansed with blood and fear. So came: Frank Mabley, James Martens, Donald McNeal, James Moss, Nicholas Liakonis, Richard Schwartz, Barry Peebles, Robert Rusnak, David Brown, Paul Beck- er, Delki Dozzi and William Fehl- berg, all '60E, and Prof; G. V. Edmonson, honorary member. of Colored People that the Univer- sity was practicing dormitory seg- regation. University Vice-President for Student Affairs and Board chairman James A. Lewis pointed out that "the Board has had a committee studying. the problem for the past six months and they are simply proceeding to complete their report." Board member Drake Duane, '58, Inter-House Council president who is serving on the study committee, expressed hope that the commit- tee's report "will clear up this. matter." The report is scheduled to be presented at next Tuesday's Board, meeting. Change Admission Poliey The conversion of Tyler and Prescott Houses followed last week's similar move bythe Board to, turn Frederick House, South Quadrangle, into graduate facili- ties. Under consideration in both; instances was a report by the Board's Michigan House Plan Committee asking that experimen- tal houses be established in the residence hall system. The com- mittee had recommended, how- ever, that both Tyler and Prescott become freshman houses. All three will be vacated by women residents in the fall. Admission of graduates to the residence halls constitutes a change in Board policy accordingl to Assistant Dean of Men Peter Ostafin. "Previously only a limited num- ber of first year dental and medi- cal students were admitted, as space was available," he pointed out. "But anexception has always been made, he added, for any stu- dent who, because of his color, could not find other desirable housing." Board Criticized In turning back the original proposal for Prescott House, the Board drew criticism fromDuane and IHC President-elect Robert Ashton, '59. "I'm most disappointed with the Board's decision," Duane said. "The recommendation represented careful consideration and study. We were well aware of its weak- nesses, but these were not the points on which the rejection was based," he said. Ashton declared that "the Board of Governors rejected an oppor- tunity to initiate a major educa- cational policy within the resi- dence halls." Arguments against the proposal, which would have required a fac- ulty advisory council along with three additional staff members See BOARD, page 6 SEVERIN: Building May Stop Recession WASHINGTON (P) - Home building may be the industry which will lead us out of the current busi- ness recession. That optimistic estimate came yesterday from President Nels G. Severin of the National Associa- tion of Home Builders, who said it was based on widespread industry reports of a healthy spurt in build- ing. Such reports were bulwarked by a request from President Dwight D. Eisenhower's administration for authority to insure four billion dollars more in home loans under the Federal Housing Administra- tion program. Gain in Applications Albert M. Cole, administrator of the Housing and Home Finance Agency, said there has been such a substantial gain in loan applica- tions that FHA's present loan au- thority may be used up by June 10. Accordingly, he asked a Senate Banking subcommittee to boost from three billion dollars to seven billions the amount of insurance the FHA could issue between now and June 30, 1959. Looking ahead, Cole said the ad- ministration wants to raise from three billions a year to four bil- lions its request for FHA loan au- thority in the four years beginning July 1, 1959. Quick Action Probable Chairman John Sparkman (D- Ala.) of the subcommittee said he and Sen. Homer Capehart (R- Ind.) would sponsor the necessary resolution. "I think the Senate will , act quickly on it," he said. In a nonhousing economic de- velopment, the Commerce Depart- ment reported that wage and sal- ary payments dropped again in April. Personal Income Rises It said personal income rose, however, by 600 million dollars, because of the distribution of un- employment compensation bene- fits and other government pay- ments. . The gain brought personal in- come to an annual rate of $342,- 800,000,000 or four and one-half billion less than the record high of last August. Severin gave much credit for the housing gains to this Spring's housing law.rThis made new funds available for mortgages, lowered down payment requirefments on some government - insured mort- gages and extended the GI home loan program another two years. Severin said this law should boost new home starts by 100,000 to more than a million this year. There were 991,000 last year. He said the easing of mortgage credit had swift benefits. International 'Living Group Elects Board Officers of the Board of Trustees of the Council for International Living were elected at the annual meeting of the Board held yes- terdtay. The Council includes Prof. James M. Davis, Director of the International Center, chairman; the Reverend H. L. Pickerill, vice- chairman; Mrs. Archibald Sing- ham, secretary; and Robert Woo, treasurer. All are new officers ex- cept Woo, who was re-elected. Elected to the Executive Com- mittee were the Reverend DeWitt Baldwin, Ca-ordinator of Religious Affairs and retiring chairman, and Ralph Morrill. The Council for International Living promotes international and intercultural understanding, espe- cially through the four member houses, which are: J. Raleigh Nel- son House for International Living, Tappan House, Fields Center and Harrison House. Also elected to the Board of Trustees were Prof. Sibley W. Hoobler of the medical school, Jim Bob Stephenson of the speech de- partment, Prof. John W. Hyde of the architecture college and Laurin Hunter. Street Closing Permit Denied The Ann Arbor City Council APLCriticism Warrante a, Report Deals With Action National (EDITOR'S NOTE: Following is the text of a letter sent by the local chapter of the American Associatin of University Professors to the na- tional AAUP before the censure of the University by the national.) 1) The Chapter expresses its thanks for the thorough and con- scientious study of the proceed- ings made by the investigating committee, and for the detailed statements about the two dismis- sal cases which the committee has provided. The Report presents a clear and accurate history of the events which took place in the summer of 1954 in Ann Arbor, and judiciously draws attention to important issues which have been canvassed by the Chapter. The effect of the committee's state- ment is in these respects certain- ly beneficial. Recognize Differences 2) In its review of the actions with which the Report deals, the Chapter was conscious that there are very significant differences between the atmosphere and gen- eral situation now existing in the University and the conditions in which the 1954 hearings were held. It notes with satisfaction that the important statements relevant to some issues which then arose have been published since 1954 by the AAUP. These provide significant clarifications of points at issue in the cases un- der discussion., The Chapter re- grets that these statements were not available when the cases were heard. Interference Absent 3) The Chapter was reminded, in its deliberations, that the Uni- versity of Michigan had made earnest attempts, in anticipation of such problems as those pre- seted by the suspensions of 1954, to provide suitable procedures, In the shaping of which the Univer- sity Senatehad a prominent part. The Faculty committees which conducted the hearings were, moreover, constituted of repre- sentative and distinguished Pro- fessors who enjoyed the full con- fidence of their colleagues, and. who met their responsibilities in an able and conscientious fashion. During their deliberations they were not embarrassed by inter- ference or pressure from the Ad- ministration. Procedures Faulty 4) The Chaptei' is aware that some of the 1954 procedures, prop- erly criticized in the Report, were faulty. It calls attention to the a t t e m p t s subsequently made, largely through Faculty action, to remedy these proceduraladeficien- cies, and to the cooperation given by the Regents through their en- actment of the present By-Law 5.10. Since this By-law is not yet entirely satisfactory, it proposes to give additional study to its pro- visions, and to try to.effect furth- er improvements. 5) The Chapter is also well aware of the confusions which re- sulted from the "blending" of procedures which occurred, and of See TEXT, page 6 IN VENEZUELA: Nixon's Aides Warned Of Assassination Plot BOGOTA ,Colombia ()-An aide to Vice-President Richard M. Nixon said yesterday authorities have an unverified report that an at- tempt might be made to assassinate Nixon in Venezuela today., An earlier announcement in Washington said Nixon's body- guards have been warned to watch out for a possible plot. U. E. Baughman, United States Secret Service chief, said he had received the unverified report but his assessment of the situation was that there is "nothing to alarm anyone." Security Changes Made United States Embassy officials in Caracas, the Venezuelan capi- tal, said they knew nothing about the report announced in Washing- ton. They said maximum security ' arrangements have been madef lamesReds and no changes are contemplated. They also declared the assassina- WASHINGTON )P - Congress voted a pay raise for the armed forces yesterday. In short order, the House and Senate passed a compromise bill which will give servicemen an ex- tra 576 million dollars the first year of operation. President Dwight D. Eisenhower is expected to sign the legislation' in time for the raises to take effect June 1. To Encourage Careers Almost all servicemen with two years f or more in uniform would receive increases ranging from 6 to 60 per cent. The biggest raises would go to the senior ranks. The main purpose of the bill, however, is to encourage trained personnel to make the military profession their career. It provides for special responsi- bility pay for a limited number of officers in ranks from captain to colonel. and, the naval equivalents, and special proficiency pay' for a selected group of noncommissioned officers. The House accepted most of the changes the Senate made in the measure. These generally reduced the pay scales originally adopted by the House and brought the esti- Lmated cost in the, first year down by 107 million dollars. The bill contains a six per cent cost-of-living increase in retire- ment pay now going to some 3 00,- 000 retired servicemen. President Urged Raises Personnel in the Coast' Guard, the Public Health Service and the Coast and Geodetic Survey would also receive raises. President Eisenhower has urged higher rates of pay "for military personnel as one way of attracting good men into the armed forces and keeping them there. The compromise differs from the Senate bill in only one respect -it would permit a boost in re- tirement benefits for three- and' four-star admirals and generals, already on the retired list, at a cost of about $400,000. Group Names LS&A Posts tter Tern tion report did not originate in Caracas. William Key, administrative as- sistant to Nixon, confirmed the- Washington disclosure. Had Earlier Reports "We had reports of the possi- bility of violence and specifically that an assassination attempt might be made," Key said. Key, in Bogota with Nixon on the Vice-President's South Ameri- can tour, said there had been ear- lier reports of possible violence at other points, including Bogota and Lima, Peru. Asked who was behind the re- ported, Caracas plot, Key replied: "communists." He said the reports came from both Venezuela and the United States. Nixon 'Unconcerned' The aide added that Nixon was "no more concerned than at any other place" about the reports. Nixon and Colombia's Foreign Minister Carlos Sanz De Santa Maria conferred yesterday about coffee. Both recognized that besides be-' ing a popular beverage, coffee is a hard economic fact of life for much of Latin America. Here in this coffee capital on the next-to-last stop of his South American tour, Nixon said the coffee-consuming United States will want to try to help Colombia and other Latin-American coffee nations stabilize prices. The foreign minister said coffees rather than money, is the actual currency that backs 16 South, American economies. He said a 14 per cent drop in the price of Co- lombian coffee last year cost this nation 100 million dollars. Supreme Court Threatens Huff With Contempt LANSING (P)-The State Su- preme Court .yesterday summoned Circuit Judge Eugene S. Huff to' appear in person on Friday to answer for his refusal to obey its order, or suffer punishment for contempt. Earlier Huff spurned a direct order by the Supreme Court to temporarily relinquish his duties as presiding judge of the Saginaw circuit. For Events WASHINGTON (P) - Secretary, of State John Foster Dulles yes- terday indirectly blamed the Com- munists for anti-American dem- onstrations in Lebanon and in Peru. "Anti-American feeling is being cultivated by sources which we1 can all imagine," Dulles said. "I won't identify, them." "But with sufficient propagan- da and money anyone can stir up a demonstration. You might even be able to do it here," he said, Dulles was asked about the demonstrations last week in Peru during the visit there of Vice-1 President Nixon and about the sacking and burning of -a second United States Information Agency library in Lebanon. He said he was confident the demonstrations did not represent the true feelings of the Peruvian and Lebanese people as a whole. City !College Confiscates Arts Magazine By NAN MARKEL Eight hundred copies of Pro- methean literary magazine at City College of New York, were confiscated last week, and the magazine's editors were tempor- arily suspended from classes. The college's president Buell G. Gallagher released a statement to the press saying, "The action has been taken because of the publi- cation of material that is not suit- able in a magazine bearing the name and seal of City College and subsidized by student fee funds." When asked what material was objectionable, he said, "I do not, wish to make any elaborations, thank you Play Causes Censorship Nancy Rothwax, editor of the Promethean, indicated it was probably a one-act play entitled "The Tea Party" which caused the. censorship. Miss Rothvax summed up the objectionable play as "just anoth- er story." The scene is set before the school semester begins, with two boys relating their most "traumatic" experiences. One of the boys' experiences was "some- what sexual," she said, and they were smoking marijuana cigar- ettes. The editor indicated the staff will continue to pick material it thinks is literarily fit. "We have suggested," she said, "that a board be set up to look over our, material before publi- cation. Members of the English department faculty who are fa- miliary with modern literature could sit on the board. "Material Unobjectionable" "We believe our material is not obscene " she continued. "And the staff still stands solidly behind the boy who wrote 'The Tea Par- The magazine's editors were re- stored to classes effective yester- day. "He suspended us on the way to catch a plane to Geneva;" Miss Action Urge On Back Ph, Deficiency Local Chapter Call For Improvements The local chapter of the Am can Association of University I fessors yesterday released a le sent to the association's .nati convention, in which they said University was "properly b cized" for its action in the dismissal of two faculty meml The letter, sent to the co tion before the censure was pa criticized the University for failure to grant severance pa the two men, the "continuing certainty" in the administrati attitude toward academic freed and "faulty" procedural mat which, although changed s' 1954, are "not yet entirely s5 factory." Atmosphere Differences Not The letter does note "there very significant differences tween the atmosphere . .. existing .. . and the condition which the 1954 hearings V held," and declares the local c ter's intention to try to "ef further improvements." The most immediate task-, cording to Prof. Sheridan B: of the English department, "convincing the University the Board of Regents to g severance pay by acting on al posal now pending be ore Regents." Prof. Baker said there were some procedural problems not I covered by the University Byl "Even the new bylaw (put effect after the dismissals) defects we would like to changed," he. explained. "It does not fully prevent some fu procedural injustice." Local Conditions Improvec When the letter was sent, I Baker said, "we felt local co: tions had to some extent impro and that if a similar case sh come up again, there would bi injustice. "However," he continued, "a ter from University President I Ian Hatcher /t'o the conventioi which he said he felt absol no errors were committed, shc the situation had not improve Prof. Karl Lagler, chairma the fisheries department and r ident of the local chapter, said leaders of University groups as the University Senate and Iocal AAUP were already consi ing working together "t alleviate the situation., _"This is not a question of ta sides," he said. "It is simply n all who want to help the Uni sity to work with each other'. Prof. Lagler said he felt i "possible those things for w we were censured will be chan, by the time the AAUP cony next year, and that thecen might be lifted at that time. Monument to, a Cause World News Roundup By The Associated Press SAN FRANCISCO-The 4 crewmen of the ketch Golden Rule yesterday appealed to the United States Court of Appeals a Honolulu judge's order prohibiting them from sailing into the Marshall Islands nuclear test area. Their attorneys will appear before the appeal's court May 21 to, seek nullification of a preliminary injunction issued May 2 by United States District Judge Jon Wiig of Honolulu. Judge Wiig ordered the four ,ot to continue their attempt to sail into the area in protest against the atomic tests. WASHINGTON-The Air Force yesterday disclosed plans to set up 10 additionalBomarc bases to handle the new interceptor guided missile. Construction of the new missile sites was estimated to cost 121 million dollars and is in addition to 4 Bomarc bases authorized for Lewis Declar Housing Poli Not To Chan Vice-President for Studcer fairs James A. Lewis said y day there will be no char present in the University's in regard to discrimination i campus housing. Lewis explained that in resp to a motion by the Student ernment Council ,the admin: tion reconsidered its policy in area. Lewis said that the Ur sity "did not have the facil to enforce any anti-discrir tion action. He stated that the Univ already scrutinizes all listin rooms for rent given to it in that the listings give no ins tion of discrimination. He .