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August 04, 1955 - Image 1

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Michigan Daily, 1955-08-04

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Latest Deadline in the State

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HOT, HUMID

ANN ARBOR, MICHIGAN, THURSDAY, AUGUST 4, 1955

FOUR PAGES

Hong

Kong

Awaits

11

.S

Detained Airmen's Release

-Daily-Harding Williams
SHIRTSLEEVE PANEL-Brandon Sexton, Prof. William Haber of the economics department, and
Frank Rising argued the benefits of the union movement in Michigan's industrial economy in the
Rackham Amphitheater last night without the hindrance of " suit coats.

By JIM DYGERT
Amid lively repartee, a labor and
a management representative sug-
gested aspects of "The Impact of
Unionism on Michigan's Indus-
trial Economy," in a panel discus-
sion last night.
Brandon Sexton, education di-
rector for the UAW-CIO, hesitat-
ed to say that the union move-
mentndefinitely had been an im-
portant factor in the growth of
Michigan's economy, but did ven-
ture, "It has grown more since the

establishment of the unions than
before."
The working man also advanced
much further after the unions had
been established than he did be-
fore the union movement, Sexton
said.
Knows the History
"I can't prove that the things
the working man has gained were
gained as a result of the union
movement," he added, "But I do
know the history."
Frank Rising, general manager

for Automotive Parts, Inc., said
he didn't know whether unions
had had a good or a bad effect on
the Michigan economy as a whole,
but suggested some respects in
which they may have had ill ef-
fects. 1

Reuther Discusses Labor,
Management Aims, GAW

F Free labor and free management
working ,together to solve the
fundamental problems of human
' progress is the aim of. the labor
union movement, and the way to
stop Communism, UAW and CI0
president Walter P. Reuther said
yesterday.
Speaking to an enthusiastic
crowd in a Summer Session lec-
ture on "Labor and Michigan,"
Reuther said, "The world looks to
Michigan for leadership in settl-
ing the basic problems involved in
the struggle between the free world
and the Communist world."
As his audience broke into ap-
plause several times, Reuther ex-
plained how he thought the Guar-
anteed Annual Wage negotiations
between the UAW and Ford and
General Motors had demonstrated
that free men could solve the prob-
lems of poverty and social injus-
tice.
Unions Bulwark
"The Communists build their
power on poverty and social in-
justice," he said. Then, raising his
voice, he added, "The free labor
movement is the bulwark against
Communism," by solving these
problems in a practical way.
"What we need to understand
is that the struggle between de-
mocracy and tyranny is one for
men's minds and loyalties. It's on
the broad economic and social
front where the challenge that
Communism presents must be met
and must be won."
Reuther claimed "the Commun-
ists have promised economic se-
curity, but have not delivered it.
But they would put your soul in
chains in exchange for economic
security."
Practical Method
The unions' answer is collective'

bargaining. "With bargaining, you
can keep your political and spiri-
tual freedom and get economic
security by a practical method,"
Reuther said.
He designated as the "American
dilemma" this country's "tremen-
dous progress in the physical
sciences, and failure to make simi-
lar progress in the human and
soeial sciences."
One of the answers free labor
and free management is trying to
find, Reuther said, "is how to
translate material progress into
fundamental human values for the
spiritual, intellectual and cultural
advancement of man."
"Better Life"
The main objective of the free
labor movement, he explained, is
not just higher wages and better
working conditions, but to "gain a
better life for the worker, a fuller
share in the fruits of an advancing
technology, better educational op-
portunities for his children, a feel-
ing of status, a sense of human
dignity."
These are the things free labor
and free management must pro-
vide to offset Communist propa-
ganda. "And nothing else in the
last 12 months has had a greater
impact on Communist propaganda
than the GAW agreements," he
said.
"The whole effort, the struggle,
the energy and the resources need-
ed to build a union of 7,000 in 1936
to today's 1,500,000 was worth it,"
he said.
"And I am confident that free
labor and free management can
meet the problems of the future,
the basic human problems of pov-
erty and social injustice," Reuther
concluded.

Pointing out that many business
firms have left Michigan, Risingi
asked aloud if it could have beenI
the result of harsh treatment by1
union locals.<
He wondered why some employ-
ers find union locals easier "to get
along with" in some places than
in other areas.
Claims Rigidity
Objecting to theeffect of union-t
ism "tieing men to their jobs,"
IRising claimed u n i o n s hadI
"brought more rigidity and less s
flexibility into industry." He ask-
ed, "Is the union building itself a
position of paternalism?"1
He also objected to a "tendency1
in the CIO to carry union banners1
into politics." Sexton answered
that there seemed to be a feelinga
that unionists should confine
their thinking to how much money
an hour they should get, and not;
enter into discussions on political1
questions like other people.
Commenting on industry-wide
bargaining, Rising outlined two
alternatives for the future: 1)
great enormous power packages
dealing with each other, or 2) au-
tonomy of local unions in bargain-
ing.
He said he preferred the second
alternative. "If unions become big'
power packages, they will force
management into big power pack-
ages," he warned.
Criticizes Reuther
Rising also criticized CIO and
UAW President Walter P. Reu-
ther's emphasis on "a free market
of ideas." He said he couldn't see
how the union practiced a free
market of ideas when it forced in-
dividual locals to hold out for an
"over-all pattern" of settlement.
Sexton came back with the ob-
servation that employers have op-
posed advances attempted by the
union. "Maybe the advances would
have been made anyway,"he said,
"but not at precisely the same
time."
The unionist cited three exam-
ples of automobile companies that
had found unions tougher to deal
with outside Michigan than in
the state.
Answers Question
In answer to a question from
the audience on the possibility
that forcing a man to join a union
in a closed shop was a denial of
individual freedom, Sexton cor-
pared the worker to the taxpayer.
"We believe it the responsibility
of the worker to support the insti-
tution which we believe won him
the gains of higher wages, pen-
sions, 'vacation pay, better condi-
tions and others"
Chairman of the panel discus-
sion was Prof. William Haber of
the economics department, who
also joined in the repartee occa-
sionally.
Ike Says Too
Old To Run
WASHTNGTON (P)-A groun of

U.S. Board
Hikes Rates
For 4 Banks
Other Reserve Banks
Expected To Follow
WASHINGTON (A) -The Fed-
eral Reserve Board yesterday ap-
proved a- hike in the discount rates
charged by four Federal Reserve
banks.
Effective today the rate will be
boosted from 1 per cent to 2
per cent in Chicago, Boston and
Atlanta, and to 21/4 per cent in
Cleveland.
Other Federal Reserve banks are
expected to take similar action
within the next few days.
The action obviously is a move
to tighten up on credit in an effort
to curb inflationary factors.
The discount rate is the interest
rate which member banks must
pay when they borrow from the
Federal Reserve System. A high
discount rate, in theory, discour-'
ages banks from borrowing in or-
der to make loans to businesses or
individuals.
The Federal Reserve Board's
action ties in with the action by
the Eisenhower administration
last weekend in increasing down
payment requirements on homes
and shortening the term of FHA
and GI home loans.
Both moves are designed to pro-
tect the buying power of the dol-
lar, which has been relatively sta-
ble since 1952.
Yesterday's rise in the discount
rate is the second this year.
During April and May the rate
went up from 1/2 to 1/4 per cent
at each of the 12 Federal Reserve
banks.
Moonlight Now
Can Be Made
LINCOLN, Mass. (M)-The Cam-
bridge Air Force Reserch Center
said yesterday that artifical moon-
light may be created by a rocket
to be fired 60 miles into the at-
mosphere at Holloman Air Devel-
opment Center, Holloman, New
Mexico, the week of Oct. 14.
Experts said one of the aims is
to clear up some of the mysteries
about the atmosphere composi-
tion at that height.

il

WASHINGTON (/)-Sen. Estes
Kefauver (D-Tenn.) suggested
yesterday that President Dwight
D. Eisenhower acted inconsistent-
ly- in handling the cases of Air
Force Secretary Harold Talbott
and Adolphe Wenzell, a key figure
in the Dixon-Yates probe.
The President accepted Talbott's
resignation, Kefauver said, because
of his partnership in Paul B.
Mulligan & Co., New York effic-
iency experts.
Yet, in Wenzell's case, the sen-
ator went on, Eisenhower said he
saw nothing wrong in Wenzell
serving as a Budget Bureau con-
sultant at the same time as he was
a vice president of the First Bos-
ton Corp., a New York financial
house.
"No Different"
"I want to say that I can't see
a bit of difference, except perhaps
here a stronger conflict of inter-
est has been presented," Kefauver
stated.
He drew the parallel as his Sen-
ate Judiciary subcommittee held
another session in its investigation
of the controversial Dixon-Yates
private power contract.
The Budget Bureau took part in
earliei' negotiations on the con-
tract. Later First Boston became
one of the fiscal agents for Dixon-
Yates in raising money for the

now defunct power project. Demo-
cratic senators have charged the
administration with trying to cover
up Wenzell's "dual role."
Dixon Accused
Kefauver also charged Wednes-
day that Edgar H. Dixon acted ill-
egally in negotiating the contract
with the federal government.
Dixon promptly denied the
charge.
The Tennessee senator said the
Federal Power Act makes it a
crime for' a person to serve as an
officer or director of more than
one public utility without the ap-
proval of the Federal Power Com-
mission. .
Dixon heads Middle South Utili-
ties, Inc., and also was president
of the Mississippi Valley Generat-
ing Co., a subsidiary organized to
execute the controversial Dixon-
Yates contract.
Hearing Recessed
When Dixon completed his testi-
mony Wednesday, Kefauver an-
nounced the hearing would be re-
cessed for five or six weeks and
an interim report issued in about
10 days.
Mississippi Valley agreed with
the Atomic Energy Commission to
build a 107 million dollar power
plant at West Memphis, Ark., to
replace electricity being drawn out
of the Tennessee Valley grid by
AEC installations.
President Eisenhower canceled
the contract after the city of
Memphis refused to buy Dixon-
Yates power and offered to build
a municipal plant to supply the
power needs of the area. The con-
tract has been under the continu-
ous fire of Democrats in Congress,
before and after its cancellation.
Kefauver observed that the law
requiring FPC approval to serve
as an officer and director of more
than one public utility provides
penalties of up to two years in
jail and a $5,000 fine for any one
convicted of violating it.

Dixon, saying "I don't think that
I have acted illegally," testified
he filed an application with the
FPC last March for authority to
serve as president and a director
of Mississippi Valley.
Kef auver's line of questioning
appeared to be aimed at building
up his contention that the govern-
ment is not liable for any charges
because of cancellation of the 25-
year contract.
Reds Confess
Downing Plane
TEL AVIV, Israel (P)-Commu-
nist Bulgaria acknowledged yes-
terday that two of its fighter
planes - not antiaircraft guns -
shot down the Israeli airliner
which carried 58 persons to death
last Wednesday.
A government a n n o u n c e-d
broadcast by the Sofia radio sand
the fighters were "too hasty" and
"did not take all the necessary
measures to force the plane to
land"after it veered into Bulgar-
ia's air space.
All aboard, including 12 Ameri-
cans, perished when the airliner
crashed in flames near Petrich,
not far from the Yugoslav and
Greek frontiers, on a flight from
London to Tei Aviv.
Bulgaria contends the aircraft
was 80 miles off its normal course
across Yugoslavia.
Israeli investigators who exam-
ined the wreckage said they saw
numerous bullet holes which ap-
apeared to have been caused by
machine gun fire. The first Bul-
garian statements acknowledging
responsibility said it was antiair-
craft fire that brought down the
American-built Constellation of
the El Al Israel Airlines.

TELLING GOOD NEWS ABOUT RELEASE OF AIRMEN-Mrs. Kiba and daughter, Irene, wait
as Steve Kiba starts round of telephoning to tell relatives that his son, Steve Jr., will be among
11 airmen released by Red China prison. Steve Jr. at 18-years-old, is pictured at right.
KEFAUVER CHIDES IKE:
Calls Wenzell Handling Inconsistent

1
1

Philippines,
Then Home
For Fliers
Bulletin
HONG KONG (P) - Eleven
American airmen imprisoned
by the Chinese Communists
for 2 years crossed the Hong
Kong border to freedom this
afternoon.
The smiling men walked
across the border river bridge
32 miles north of Hong Kong.
First reports from British bor-
der guards said they appeared
in fair to good physical condi-
tion and in good spirits.
By The Associated Press
The Bamboo Curtain is parting
today for the exit of 11 U.S. air-
men imprisoned 212 years in Red
China.
Welcoming handclasps, medical
attention, food and new uniforms
awaited the return to freedom of
Col. John Knox Arnold, Jr., of Sil-
ver Spring, Md., and the B29 crew
shot down with him on a leaflet-
dropping mission over North Korea
Jan. 12, 1953.
Though Peiping announced all
would be freed today, the exact
hour of their arrival in the Bri-
tish crown colony appeared un-
certain.
Philippines
The men are to be flown as
quickly as possible from 'Hong
Kong to Clark Field in the Philip-
pines. After two or three days
there for medical checkups and
administrative processing, they are
to fly directly to the U.S. West
Coast to meet their families at
either McChord Air Base near Se-
attle or Travis Air Base near San
Francisco.
A Red Chinese court sentenced
the 11 fliers last November to pris-
on terms ranging up to 10 years as
spies-a charge which the United
States denied.
Announced Monday

Crockett Descendants Gather
To Clear Cash, Day's Honor
OKAWVILLE, Ill., (A')-A modern-day Battle of the Alamo seems
to be in the making, with descendants of Davy Crockett centering
their firepower on merchandising rights.
The Crockett clan also is gunning for those who have insinuated'
that Davy was a delinquent boy, a shiftless, ignorant man, and some-
thing less than the king of the wild frontier.
The Crocketts have hired lawyers and have banded together
to form the David Crockett Descendants Fund, organized as a

Their release was announced by
Peiping Monday, just before the
opening of U.S.-Chinese negotia-
tions in Geneva.
In addition to Arnold, the men
are:
Maj. William H. Baumer, Lewis-
burg, Pa.; Capt. Eugene John
Vaadi, Clayton, N.Y.; Capt. Elmer
F. Llewellyn, Missoula, Mont.,; Lt.
Wallace L. Brown, Banks, Ala.; Lt.
John W. Buck, Armathwaite,
Tenn.; Sgt. Howard W. Brown, St.
Paul, Minn.; and airmen Steven
E. Kiba, Akron, Ohio; Harry M.
Benjamin Jr., Worthington, Minn.;
John W. Thompson III, Orange,
Va., and Daniel C. Schmidt, Red-
ding, Calif.
Fate of Civilians
Meanwhile, in Geneva ambassa-
dors of the United States and Red
China will meet again today in 'an
attempt to settle the future of 40
American civilians detained in
China and Chinesetnationals liv-
ing in the United States,
The two diplomats have new in-
structions from their governments
on dealing with the question.
Ambassador Wang Ping-man,
representing the Peiping govern-
ment, indicated Monday there
should be little difficulty in ar-
ranging the repatriation of the 40
Americans.
Concern Over Students
There was some concern in dip-
lomatic circles here, however, that
the mechanics proposed by Wang
for determination of the desires of
Chinese students in the United
ยง t a t e s regarding repatriation
might delay solution of the prob-
lem.
Sources close to the U.S. dele-
gation confirmed that Wang had
asked for the designation of a
third power to ascertain whether
Chinese in the United States
wanted to remain there or return
to the Chinese mainland.

charitable trust, and have incor-'
porated for -money-making pur-
poses as Crockett Kids, Inc.
The battle leader is Mrs. Margie
Flowers Cohn of Okawville, who
claims to be a great-great grand-
daughter of the famed Indian
fighter. She says she represents
about 100 descendents of Davy
and his first wife, Polly Finley
Crockett.
The money they expect to raise,
Mrs. Cohn said, will be used "for
the education and medical care of
the needy descendants of Crock-
ett."
Walt Disney Enterprises and
Morey Schwartz, a Baltimore
clothier, have agreed to share each
other's rights to the name Davy
Crockett on merchandise - but
they still have to contend with the
newly organized Crockett clan.
Mrs. Cohn and her associates
have asked in U. S. District Court

HIGH FREQUENCY TV:
Money Lacking for 'U' Station

(EDITOR'S NOTE: This is the first
of two articles dealing with the pros-
pects for a University television
station.)
By CAL SAMRA
Money - an evasive sum of
$500,000 - is now all that's pre-
venting the University from spon-
soring a television station power-
ful enough to reach half of the
state's population.
In 1953, a special subcommittee
recommended and the Board of
Regents approved a plan to estab-
lish a channel for the University.
It was agreed that the primary

Campus) would cost about $500,-
000. This 1000-foot transmitter
would enable the University sta-
tion to cover the Detroit, Flint,
Jackson and Lansing areas.
Additionally, the station, if it
were to broadcast 30 hours a
week, would require operating ex-
penses in the neighborhood of
$350,000 annually.
The studio facilities and the
equipment presently operated by
University Television were con-
sidered suffcient to meet the
needs of the station, though some
expansion of equipment and staff
Ilimr "rnha v h inpufnhl

Legislature, but Governor Williams
clipped it out.
No Grant Sighted
The only other source of capi-
tal, of course, would be a financial
grant frohi some institution or
philanthropic individual, but as
yet, such a grant has not been
forthcoming.
Meanwhile, prospects for a
University station remain very un-
certain. There has been some
hesitancy to request again a state
grant for the project.
"I don't believe we should ask
for state appropriations at the
nr.Cnt am "1c-,R . rofCnn

:A

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