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Sixty-Sixth Year
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Editorials printed in The Michigan Daily express the individual opinions of staff writers or
the editors. This must be noted in all reprints.
SATURDAY, JULY 28, 1956 NIGHT EDITOR: DONNA HANSON
Strike Setlement Brings
Increased Wages, Costs, Profits

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AT THE END of a pitched battle, it's always
enlightening to do a post-mortem on the
combatants, especially when neither appears
to have won an outstanding victory.
With the settlement of the steel strike, the
country is breathing more easily, and most
people, learning that the United Steel Workers
have leeched a raise of fifty cents an hour, feel
that justice was probably done, and are ready
to forget the whole matter.
But these people, failing to consider farther
reaching aspects of the matter, are in fact
doing themselves an injustice.
Yesterday the strike negotiators announced
that they have reached an agreement providing
for a three year package of wage increases
amounting to fifty cents an hour. This cer-
tainly raises no eyebrows.
BUT THERE is a more interesting clause in
the form of a two cent an hour grant for
a baby guaranteed annual raise. Although this
may not raise many more eyebrows, it indi-
cates that the trend toward the annual wage
is here to stay-and here to grow.
The three year contract provision also pro-
vides something to think about. Supposedly,
industry entered negotiations dead set on a
five year, no-strike contract. Apparently they
weren't so set on the five-year contract, or the
trend toward three year contracts was too
strong to be resisted.
Aside from the direct struggle of labor and
mianagement, the strike settlement reflects
something more of the economy as a whole.
Being the basic industrial commodity the
nation cannot be sensitive to the price of steel.
As a result of the wage increases, most
authorities look for a substantial rise in the
cost of steel. Predictions range from $10 to $12
on the former price of $130 per ton. Simple
calculation shows the increase as being about
nine per cent of the former amount. The aver-
age wage in the industry was $2.46, and an
increase of twenty cents is also about nine
per cent.

As wages do not constitute the total cost of
steel, such a proportionate increase can only
mean that the steel industry is using added
wages as an excuse to boost its profit levels-
and unduly boost the cost of merchandise.
THE AUTOMAKERS are doing what amounts
to the same thing. As a result of the strike,
they expect to increase prices on the '57
models $40 to $60. An automobile only weighs
11/2 tons, and it is easily seen from these figures
that they, too, are using the strike as an ex-
cuse to pocket a little more cash.
However, we will not see these added profits
as a percentage increase in owner's, profits.
These profits will show as an inflation of the
respective stocks' prices. Although profits will
have gone up, large and longtime stockholders
will claim thaIt they are still only receiving
four to six per cent on their apparent invest-
ment.
Actually, when one considers the original
cash outlay of the long-standing investor, and
he owns most of U.S. Steel and G.M., the
profits he is making can only be called fan-
tastic.
This is fine for the man who owns the stock,
but what about the man who has to buy the
products he produces. Careful evaluation shows
that he has gained little in the way of buying
power. Meanwhile, U.S. Steel and G-.M. stock-
holders are reaping the benefits of the increases
in worker wages -and benefits. These industries
are taking advantage of all occasions to boost
their profits.
THIS WOULD not be possible if U.S. Steel and
G.M. did not control half or more of their
respective markets.
As long as any one or two companies are
able to exert overwhelming control over price
levels in their industry, any wage increase can
at the least mean a corresponding price in-
crease, and will probably be an excuse for
greater profits.
--DAVID GELFAND

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AT THE STATE:
Pride And Profanity Not
Intimate Combination
"THE Proud and Profane" is the most intimate story to come out
of the war, but the intimacy is diluted with a measure of con-
fusion.
Briefly, it is the story of a proud lady, Deborah Kerr, and a pro-
fane colonel, William Holden.
Deborah is a Red Cross girl who has come to Australia in pursuit
of news of her husband who was killed in combat. Her superior is
Thelma Ritter, a shrewd but kindly woman who mothers everyone
within range, but especially Deborah.
William Holden has no use for the Red Cross people because he
is a tough Marine, arrogant and cruel. (He had an unpleasant chlid-
hood.) Also he is nasty to the chaplain, a serious fellow given to cast-
ing penetrating glances at the audience. Nastiness to chaplains is a
sure sign of a troubled soul, usually.
Distant Deborah meets Wild William and, after a cool interlude,

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WASHINGTON MERRY-GO-ROUND:
Stassen Letter to Nixon
By DREW PEARSON

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Egypt and International Law

HEINTERNATIONAL legality of Egyptian
President Nasser's seizure of the Suez Canal
is a complicated question. Two of the salient
factors involved are the ,manner in which
nationalization is accomplished and the guar-
antee of continued free passage of merchant
vessels through the waterway.
According to precedent established by inter-
national law, it is the right of a sovereign
nation to nationalize foreign owned property
within its territorial boundaries provided, and
this point should be noted well, that adequate
and just compensation is made for the nation-
alized property.
If such compensation is not made, the seizure
is termed expropriation and is deemed illegal
under the precepts of international law.
In the case now before the bar of world
opinon, President Nasser has not yet made an
offer to compensate those foreign holders of
stock, primarily British and French, who now
own the major portion of the Suez Canal
Company, the joint-stock holding organization
which has been operating the canal under con-
cession from the Egyptian government.
Unless he does so, Nasser's action has the
appearance of being little more than inter-
national piracy.
SECONDLY, freedom for merchant vessels of
all nations to have access to the canal
is guaranteed by the Constantinople Convention
of 1888, a document governing the international
use of the waterway.
In the two days since Nasser's unilateral
action, international shipping has reportedly
not been hampered. As long as Egypt continues
this policy of non-interference with traffic,
it would appear that the Egyptian government
is on firm legal ground.

If shipping is in any way molested by those
now in control of the operation of the canal,
Egypt will be guilty of the abrogation of an
internationally recognized and accepted treaty.
In this stuation, then, it seems that if Presi-
dent Nasser makes just compensation to foreign
stockholders for the loss of their property,
and continues to insure passage of international
shipping through the canal, Egypt will have
acted in accordance with international law and
could only be supported from the legal stand-
point.
IF, ON THE other hand, Colonel Nasser chooses
to embark upon a course which violates
established precedent for the conduct of in-
ternational relations, the British and French
will have ample justification for taking the
case to the International Court of Justice. The
Egyptian government his already ruled that
it will not recognize the International Court's
jurisdiction in this dispute.
In this case, the British and French govern-
ments will be justified in taking forceful steps.
Economic sanctions, appeal to the United
Nations for action due to the violation of
international agreements by a member nation,
even the use of military force are all possibili.
ties which President Nasser and the Egyptian
government may face in this mad adventure
they have now undertaken.
PERMIT this petulant dictator to ignore
his obligations and responsibilities to other
sovereign states and people is to make a mock-
ery of the international law the civilized world
has been trying to develop for the past several
centuries.
-RICHARD HALLORAN

H AROLD STASSEN wrote a vig-
orous two-page private letter to
Richard Nixon urging him to step
aside in the Vice-Presidential race,
and delivered it to him before he
held his dynamite-laden "Dump
Dick" press conference.
The letter began with a" state-
ment that he, Stassen, would have
preferred to talk the whole matter
over with Nixon, but that since
Nixon was not available, he was
writing a letter. This column has
obtained a copy of the letter.
Nixon, meanwhile, has told
friends about his talk with Eisen-
hower and reported that, accord-
ing to the President, Stassen men-
tioned the "Dump Dick" matter
to. him only "very casually."
He also reported that the Presi-
dent was furious over the whole
incident, partly because it focused
public attention away from his
own homecoming. Instead of
people talking about the fine job
he had done at Panama, all they
talked about was Stassen. This
did not set at all well with the
President.
After stating that he was sorry
Nixon was unable to see him, here
are the blunt arguments Stassen
wrote the man he wanted to force
out of the vice-Presidential nom-
ination:
* * *
AN EISENHOWER-Herter tick-
et will run at least 6 per cent
stronger than an Eisenhower-
Nixon ticket. This difference is
certain to reflect decisively in a
number of Senatorial and House
seats, and may well be the margin
of majority or minority in the
congress. Under some circum-
stances this difference may even,
be very important in the Presiden-
tial election itself.
This minus 6 per cent has per-
sisted notwithstanding the favor-
able opportunity for the incum-
bency pf the Vice-Presidency. The
detailed polls show that the nega-

tive side is relatively highest
among those best informed and
among the younger voters. Thus
it seems probable that the nega-
tive side of ar Eisenhower-Nixon,
ticket may increase as the cam-
paign progresses.
"On the other hand, Governor
Christian Herter has a lifelong
record of effective action reflect-
ing thoroughly the same broad
and basic philosophy as that of
President Eisenhower in both do-
mestic and foreign policy. He is
recognized by those who know him
not only in our Republican Party
but specifically in labor, minori-
ties and independents, for those
qualities, plus an integrity and
strength of character of the finest
standard. Thus he will maintain
a very high favorable rating as he
becomes better known throughout
the nation and he will not sub-
tract on the ticket in any manner
from President Eisenhower's own
incomparable support.
. * *
THE INDEPENDENT people at
home, important portions of the
population abroad, and uncom-
mitted nations of the world would
have greater confidence in an
Eisenhower-Herter ticket. This
will improve the prospects of a
lastng peace and of success for
the United States leadership ver-
sus Communism. It will also co,-
tribute to the future stability and
progress of the United States
economy.
"I intend to actively endeavor
to bring about Governor Christian
Herter's nomination for Vice-
President. I wish to make it clear
that I, of course, do not take this
action as a personal representative
of President Eisenhower. At the
same time I am confident that if
the Republican National Conven-
tion nominates Governor Christian
Herter for Vice-President, Presi-
dent Eisenhower will be pleased
to have him on the ticket. My own

action is taken to fulfill my duty
and responsibility as I see it to
the President and to our country
and to our Republican Party.
"As a first step I have requested
those delegates who have asked
permission to support my name for
Vice-Preseident, and those young
people, who have publicly ex-
pressed such support, sincerely,
but without talking with me, to
instead support Governor Chris-
tian Herter. I have told them that
it is clear to me that my name,
for different reasons, would also
subtract a very important per cent
of voters because of the adverse
feeling toward me among some
within our Republican Party. I
have so often been so firm against
the extreme left that I have in-
curred a determined opposition
within a portion of my own party.
"I AM DEEPLY convinced that
for the good of America and for
the cause of peace no honorably
avoidable handicap should be
placed on President Eisenhower
in this election. Hi policies and
his leadership should be submitted
to the people without extraneous
detraction.
"This has been a difficult de-
cision for me and I know the sit-
uation is much more difficult for
you."
FOR APPROXIMATELY three
months the House Judiciary Com-
mittee has been doing absolutely
nothing about a secret vote to "in-
vestigate Drew Pearson."
The resolution to investigate was
proposed by Congressman E. L.
Forrester, Georgia Democrat, and
was passed by a majority of one
vote. It has been unfinished busi-
ness of the Judiciary Committee
ever since.
And since I have reported closed-
door sessions about other people,
it is only fair that I report this
one about myself.
(Copyright 1956, by Bell Syndicate, Inc.)

they fall madly into bed; symbol-
ically portrayed by a camera pen
from the couple to a field of wav-
ing weeds.
ALAS, HOLDEN ships out, and
Deborah is left in a delirious haze
of reawakened love. The haze lifts
when she learns that Holden has
a wife back home, and Deborah
is clutched.
Holden returns, there is a vio-
lent scene, and Deb hits her head
on a bench near unto the weed
patch, ironically' enough. So she
is taken to the hospital where
she recovers, and incidentally,
conveniently disposes of a by-
product of the waving-weed epi-
sode.
A strangely contrite William
Holden unsuccessfully attempts
to kiss and make out, but Deb is
adamant and sulks. So the ma-
rines go off to war and the weeds
wave on.
Now everything is untangled in
a most miraculous way. Deb hears
*from a buddy of her husband that
he was really unhappy because she
was a selfish, unkind woman.
Holden is carried in with a head
wound, still asking forgiveness.
His wife, a dipso-psycho-nympho,
has died, and the stage is set for a
cosmic reconciliation with ma
riage and acres of weeds in the
offing.
While this film is off to a prom-
ising start, about half way
through, the carefully built char-
acterizations begin to get smeared,
and at the end, everyone is thor-
oughly degraded, or dead.
A Short to be avoided introduces
a nauseating Lanza-type singer
named Oreste. Call out the Furies.
-David Kessel
LETTERS
to the
EDITOR
Letters to the Editor must be signed
andilmited to 300 words. The Daily
reserves the right to edit or with-
hold any letter.
Correction . .
To the Editor:
IN LAST Saturday's Daily, it was
reported that the Regents had
granted me the title of Emeritus
Associate Professor of Engineering
Mechanics .
This was an error irobably on
the part of the University office,
as I retired as Professor of Engin-
eering Mechanics. Will you please
have this reported correctly in the
Daily as soon as possible.
It's a bit embarrassing to have
my friends think I have beenhde-
moted upon retirement.
-C. T. Olmsted
It is up to our country to show
flow both nationalism and imper-
ialism can be bypassed. This should
be the main theme of the great
debate on the diplomatic and stra-
tegic policies our country should
follow-a debate not just about
foreign affairs but about resum-
ing that job of commonwealth
building which was first started
when this nation was founded.
. -The Reporter

DAILY
OFFICIAL
BULETIN
The Daily Official Buletin is an
official publication of the University
of Michigan for which the Michigan
Daily assumes no editorial responsi-
bility. Notices should be sent in
TYPEWRITTEN from the Room 3553
Administration Building before 2 p.m.
the day preceding publication.
SATURDAY, JULY 28, 1956
VOL. LXVIII, NO. 245
Lectures
Lecture in Social Psycbology. The
first of a series of four public lec-
tures on social psychology will be given
by Prof. Fred Strodtbeck, associated
with a research project at the Univer-
sity of Chicago Law School, Mon., July
30, at 4:00 p.m. in the Itackham Amphi-
theater. Title: "Factors which Impede
the Growth of Social Psychology." Sue-
ceeding lectures later in the week will
be announced'
The Soviets in World Affairs, auspices
of the Inter-Departmental Seminar in
Russian Studies. "The USSR and Com-
munist Movements in the Near East."
William D. Schorger, assistant profes-
sor of anthropology and of Near leht-
ern studies. 8:00 p.m, Tues., July 31,
West Conference Roorp, Rackham
Play
The Wayward Saint, Paul Vincent
Carroll's oomic-fantasy, will be pre-
sented by the Department of Speech at
8 p.m. tonight in the Lydia Mendels-
sohn Theatre.
Concerts
Student Recital: Laura Smith, so-
prano, will present a recital in partial
fulfillment of the requirements for the
Master of Music degree at 8:30 pm.
Saturday, July 28, in Aud. A, Angell
Hall. Miss Smith is a pupil of Frances
Greer, and her program will include
works by Schubert, Wolf, Gounod, Sam-
uel Barber, Virgil Thomson, Sergus
Kagen, and Ned Rorem. Open to the
public.
Student Recital Postponed. The re-
cital by June Howe, soprano, previous-
ly announced for Sunday evening,
July 29, in Aud. A, Angell Hal, has
been postponed. The new date will be
announced during the first semester
1956-57.
Memorial Recital in honor of the
late Harvey Spencer, M. D., Associate
Psychiatrist of University Health Ser-
ice, former Carillonneur of Wellesley
College, and Past-President of the Guild
of Carillonneurs in North America, will
be heard at 5:00 p.m., Sun., July 29,
on the Baird Carillon in Burton Tower
The program has been planned and
will be performed by his carillonneur
friends at the University of Michigan,
Percival Price, University Carillonneur,
and Sidney Giles, Assistant University
Carillonneur, and students Beverly
Brehm and Julia Hollyer. Compositions
by Chopin, Dvorak, Curry, DeGruytters,
VanHoof, Percival Price, and J. B.
Dykes.
Student Recital: Eleanor Tibbals,
flute, will present a recital in partial
fulfillment of the requirements for the
Bachelor of Music degree at 8:30 p.m.
Mon., July 30, in Aud. A. Angell Hal.
A pupil of Nelson Hauenstein, Miss
Tibbals wilfi play compositions by Han-
del, Roussel, Guarnieri. Dutilleux Mo.
zart, and Piston, assisted by Linda
Reck, pianist, John Mohler, clarinetist,
and Robert Quayle, bassoonist. Open
to the public.
Stanley Quartet Concert. The third
and final program by the Stanley Quar-
ted for the summer session at 8:30
Tuesday evening, July 31, in the Rack-
ham Lecture Hall. For this program
the group will be joined by Louise
Rood, guest violist from Smith01..
lege, in the Mozart Quintet in G mi-
nor, K. 516, and Quintet in E-flat ma-
jor, K. 614. Open to the general public
without charge.
Academic Notices
Doctoral Preliminary Examinations
for Students in Education. All appli-
can"s for the doctorate who are plan-
ning to take the August Preliminary
Examinations in Education, Aug. 20, 21,
and 22, 1956 must file their names with
the Chairman of Advisors to Grad-
uate Students, 4019 University High
School Building, not later than Aug 1,
1956.

La Petite Causette informal French
conversation group, will meet for the
last time Mon., July 30, at 4:00 p.m,
in the Snack Bar of the Michigan
Union.
Classical Studies Tea: The Depart-
ment of Classical Studies will give an
informal tea for its students on Tues.,
July 31, in the East Conference Room of
the Rackham Building, at 4 p.m. Any-
one Interested in the Classics is invited.
Doctoral Examination for Althea
Helen Whitney, Education; thesis: "The
Contribution of the Factors fo Experi-
ence and Individual Attention to the
Improvement of Motor Skills among
Elementary School Children of Tested
Low Motor Ability," Tues., July 31, East
Council Room, Rackham Building, at
1:00 p.m. Chairman, P. A. Hunsicker.

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EFFECT ON ECONOMY:
Costs of Steel Strike Will Come to Surface Slowly

INTERPRETING THE NEWS:


Nasser In Serious Straits
By J. M. ROBERTS And he has promised the peop
Associated Press News Analyst big dam at Aswan, on the Nile, to
GAMAL ABDEL NASSER, Egypt's dictator- and provide power for industrial
president, has pulled a fast one which is He thought he could get outsi
even more sensational than Iran's oil expropri- the dam by playing off Russia
ation attempt in 1951. Western powers, but nobody took
Now he is in much the same position as Infuriated, Nasser seems to 
Iranian Premier Mohammed Mossadegh got just expropriate the Suez Ca
into then, and the result may be even more $100,000,000 a year for work on 
serious for Nasser and for Egypt. he'll either have to pay the Can
Nasser can operate the Suez Canal, where outlaw himself, and the canal's
Mossadegh could not operate the Iranian oil actually is less than $50,000,000
wells. But the situation is far different. stump on that score.
The world, almost by a flick of the wrist, was
able to replace Iran's oil production at the time. In addition, the canal is rapi
The Suez Canal, of vast importance to all obsolete, and a new one through
nations, cannot be so quickly replaced and so already been discussed. Egypt co
France and England, particularly, are under out of the shipping-toll business
pressure to take drastic political action-per- she can finish the dam.
haps even military action.V

ple to build a
aid irrigation
development.
iders to build
against the
the bait.
think 'he can
rial and get
the dam. But
al's owners or
s net income
0. He's up a
dly becoming
Palestine has
uld be frozen
s long before

By The Associated Press
T HE costs of the just-ended
steel strike are likely to keep
popping to the surface for some
time to come.
The rising price of steel and the
new wage scale pattern will plant
some time bombs with delayed
effects on the economy.
Businessmen will note them first
in increased operational costs.
Consumers may see them later in
higher prices-if competition per-
mits manufacturers to pass along
all or part of the higher costs.
One educated guess, for exam-
ple, is the expected steel p ice hike
will add $40 to $60 to the cost
of making a 1957 model car.
These hidden effects, coming to
light little by little, won't be noted
at first in the flurry to reopen the
steel mills and catch up on un-

650,40 strikers and those laid off
when other industries slowed
down.
* * *
THE STEEL companies and
their customers can add up the
lost tonnage, sales and profits.
Government agencies can compute
the added relief loads and the
revenue to be lost through reduced
income tax collections.
Sluggish retail sales in steel
mill towns and in others where
men were laid off because steel
was short may 6r may not be
made up in revivals later on.
In the 1952 steel strike of around
seven weeks the total cost to the
economy was estimated as high as
four billion dollars,
But some of the losses this time
are, at least partly, on paper.
During the strike this year the
nation's steel output dropped to

their stockpiles sufficient to keep
them running through the strike
and may still have cheaper steel
to use up before returning to the
market.
The auto industry, for instance,
had enough on hand to finish 1956
model output and start on 1957
generally had large stocks, al-
models. The appliance makers
though General Electric laid off
men at its heating and air-condi-
tioning equipment plant at Bloom-
field, N. J., because of a shortage
of steel.
* * *
MOST construction projects had
enough steel to keep going fairly
well during July. But some build-
ing plans may be delayed while
the mills catch up o nback orders.
The oil and gas people, long
plagued by the tight supply of oil
field pipe, will start scrambling

plished, railroads, bargelines and
trucking firms will start hauling
coal and ore to the mills, and steel
products away.
The 275 iron ore vessels idled
on the Great Lakes will resume
toting ore from Minnesota to the
Eastern mills in a race to get
enough there for the winter before
the lakes freeze over.
The steel wage hike is expected
to give added push to the trend
toward bigger wage increases,
noted all year. At least half of the
increases won this year have been
for 10 cents an hour or more.
Some 2/4 million workers got
wage increases automatically un-
der long-term contracts.'
* * *
SPREAD THIS out, no matter
how roughly, over a growing pop-
ulation and the total of spending
money in the nation rises fast.

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