tr tgan Latest Deadline in the State Dait - I l .. a , . _. 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