RUSSIANS CHANGE
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Sixty-Eight Years of Editorial Freedom
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WARM, PARTLY CLOUDY
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K, No. 215
ANN ARBOR, MIUHIGAN, WEDNESDAY, JULY 22, 1959
FIVE CENTS
TEN PAGES~
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-Daily-Jio Warneka
WHEN YOU'RE SMILING"--Belying his anxiety over the state's
urrent financial crisis, Gov. G. Mennen Williams relaxes at a
nuer for the Institute on Practical Partisan Polities, and smiles
he chats with Prof. James K. Pollock.
S .'ubliServiceKey
o0 Nationxalroth
By SUSAN'HOLTZER
Daily Co-Editor
Gov. G. Mennen Williams last nighty tied governmental services
issue-oriented" political parties for p healthy political and eco-
ic climate throughout the state and nation.:
Williams told the Institute for Practical Partisan Politics, "We
rish as a nation only if we do what has to be done in the realm
ublic services."
As an example of how public works aids private enterprise, the
ernor pointed to the agricultural advances in recent years. Much
his, he said, is due to the research and experimentation carried
COM1MERCE:
Mueller
Named
Secretary
WASHINGTON (W) - A 65-
year-old furniture manufacturer
from Grand Rapids, Mich., Fred-
erick Henry Mueller, was picked
yesterday to succeed Senate-oust-
ed Lewis L. Strauss as Secretary
of Commerce.
Indications were that President
Dwight D. Eisenhower's nomina-
tion of Mueller will sail through
the Senate without any of the
bitter controversy that Strauss'
nomination created.
Months of wrangling resulted
in a 49-46 vote on June.19 against
confirmation- the first Cabinet
nomgination reected in 34 years.
Has Been Acting Secretary
Mueller had been generally ex-
pected to be nominated since
Strauss quit on June 30 after 7%
months in office under an ap-
pointment made while Congress
was in adjournment.
. Strauss could have stayed on
until Congress quit this year but
he decided to get out so "the,
functioning of the Department of
Commerce may continue unim-
paired." .
Since then, Mueller has been i
acting Secretary. He had been
Under Secretary since last Nov.
3. Before that he served for two
years as Assistant Secretary for
Domestic Affairs, most notably as
the Department's key official on
oil import problems.
That Mueller would' have no
trouble winning confirmation was
indicated by. the comments from
the. Senate.
Confirmation Expected
Sen. Warren G. Magnuson (D-
Wash.), chairman of the Senate
Commerce Committee that will
handle Mueller's nomination, said
"I don't see any reason why he
shouldn't be confirmed."
Republican leader Everett M.
-Dirksen of Illinois predicted
speedy Senate confirmation, say-
ing:
"Fred Mueller is a very able
'citizen with an extensive business
background and a broad field of
experience in the commerce de-
partment. I am sure he will make
a. very able and distinguished
Secretary of Commerce."
Sen. Albert Gore (D-Tenn.), who
broke with many of his Democratic
cQlleagues to vote for Strauss, said
he thinks Mueller will be con-
firmed without much opposition.
Report Tells
Soviet Fears
,WASHINGTON (P) - President
Dwight D. Eisenhower was re-
ported yesterday to be convinced
that what 'the Russians fear most
are a resurgent Germany and a
strong China.
This report, in effect scorning
the claim of the Soviet Union and
Red China that they are loyal
allies, is part of a new appraisal
of the world and domestic scenec
as it appears to President Eisen-
hower.
Russian- fear of a once - again
powerful Germany could well lie
behind Soviet obstructions to any
Western step toward the reunifica-i
tion of East and.,West Germany.
Herter, Allies
Thiwmom7keu,&ten,
Russia,
MVay
WalIk
Out
on
'Conference
Woodworth
Appointed
At Illinois
Prof. G. Walter Woodworth, of
the business administration
school, has been appointed to the
first Bailey Memorial Professor-
ship of Money, Banking and Fi-
nance at the University of Illinois.'
The Illinois Board of Trustees
approved his appointment:,. effec-
tive Sept. 1, at their meeting in
Urbana yesterday.
A trust created by the will of
the late Fred S. Bailey, president
of the Champaign National Bank,
is responsible for the endowment
of the new professorship. The will
allots one-third of the trust in-
come for use to "employ distin-
guished teachers in the field of
money, banking, or finance."
Writing New Book
Prof. Woodworth, currently en-
gaged in writing a new book on
money and banking for publica-
tion by McGraw-Hill, is the auth-
1! 1
STANDS FIRM,-Secretary of State Christian Herter, shown above at a press conference, has
indicated that he and the Western allies will not hesitate to walk out on the Big Four talks in
Geneva if the Russians do not "give in" a little on their demands for German participation.
SURVEY RESEARCH REP ORT:
Americans Look Aea onfidentl
U
By THOMAS HAYDEN
Tax Plan
Gov. G. Mennen Williams said,
last -night he would probably
accept a tax program combin-
ing a corporate profits and use
tax if he could' not get the pro-
gram he favors..
But he warned the Institute
for Practical Partisan Politics,
"many people feel the use tax
is unconstitutional."
Williams-declared the planihe
prefers is the so-called "piggy-
back" income tax, linking state
tp federal income taxes. This
would provide simplicity for the
public and a graduated taxa-
tion for the state, he said.
City Dwellers
ay ReV Olt
-Dem psey
city dwellers may stage a re-
volt within both major politica
parties in the next 10 years, Prof.
John T. Dempsey of the Univer-
sity of Detroit political science
department said yesterday.
Prof. Dempsey told the Insti-
tute on Practical Partisan Politics
that neither party "truly reflects"
the balance of power of its mem-
bers City residents in particular
do not have a voice commensur-
ate with their numbers in either
party, he said.
While both Republicans and
Democrats have done a good job
of organizing town 'elections, Prof.
Dempsey said, neither is "effec-
tively equipped, in many in-
stances, to run or criticize the
government effectively and pro-
vide imaginative solutions to na-
tional problems."
This stems from both parti s'
emphasis on winiing elections, he
noted. To realize this objective,
Republicans and Democrats must
build coalitions of groups which
often lack common interests. To
win majority support, both par-
ties must use "issues" with broad
popular support.
"Until a party is .willing to risk
the loss of an election to establish
a principle, political organizations-
will continue to remain election-
centered," he concluded.
Central ig h
Opens Doors
To Students
"on in state-supported colleges and
universities.
Institute Valuable
The University's projected Insti-
tute of Science and Technology,
Williams continued, is of a worth
that is "simply incalculable." It
will attract a large amount of new
industry to the state, he declared.
thus increase the industrial base
and increase opportunities within
the state.
The pressure for more state
services has increased, Williams
-said, and, these services "simply
require more money." He declared
that although state Republicans
originally proposed a budget of
less than 100 million dollars, "they
are now coming close to my budget
of 140 million."
Good politics are needed, Wil-
liams continued, to "advance the
public sector for good and lasting
benefls to all people." And par-
ties,e declared, must become
issue-oriented of they are to serve
the people.
Change of Attitude
The governor noted a changing
attitude on the.part of people to-
ward political parties. People
"want their parties to take re-
sponsibilityq," to' "stand for some-
thing," he said. They want them
to be "channels through which
people can be heard," and they
have less and less use for parties
that pay lip service only to issues.
This is a nationwide trend, the
governor said, and it is "a healthy
sign," one' which will bring about
year-round party organization,
carefully-developed platforms, and
parties whose members, including
precinct captains, are as much
concerned with issues as 'with pa-
tronage.
PROF. WOODWORTH
... receives out-of-state post
or of "The Detroit Money Mar-
ket 1932," "Principles of Money
and Banking," "The Monetary
and Banking System" and "The
Detroit Money Market 1934-55."
Prof. Woodworth's career in
economics and academics began
in 1924 when he received his
Bachelor of Arts degree from
Kansas Wesleyan University, add-
ing his Master of Arts degree in
1925 at the University of Kansas
and the Doctor of Philosophy de-
gree in 1932 from the University.
Joined 'U' in 1925
He joined the University facul-
ty in 1925 and served as instruc-
tor in economics until 1930, re-
joining the staff in the summer of
1951 as visiting =professor of econ-
omics. Prof. Woodworth became
a professor of finance in the busi-
ness administration school in
1952.
Ames' Tuck School of Business
Administration and Dartmouth
College have also had Prof. Wood-
worth on their teacning staffs.
Many more Americans than a
year ago look confidently to good
times in the year ahg d, the Uni-
versity Survey Research Center'
reported yesterday.
The Center's May-June survey
of consumer attitudes found that
consumer inclinations to spend on
houses and durable goods have
grown stronger during recent
months, and the effects of the
1958 recession have "largely dis-
appeared."
Buying plans are considerably
more frequent than a year ago for
all categories studied by the Cen-
ter: houses, new and .used cars,
household appliances, home im-
provements and repairs.
Housing Need Unsatisfied
The largest increase appeared
in buying plans for houses, the
report noted, and stressed "there
remains a large backlog of un-
satisfied housing needs.
U.S. Launches
First Nuclear
Merchant Ship
CAMDEN (A) - The 41 million
dollar nuclear ship Savannah was
launched yesterday to become the
first atomic-powered merchant
ship on the seas of the world.
The ship, conceived by Presi-
dent Dwight D. Eisenhower as a
demonstratioh of the United
States' desire for peaceful uses of
the atom, was christened by his'
wife, Mamie Eisenhower.
When it first takes on cargo
and passengers probably early
in 1961 - the Savannah will be,
according -to the men who built
it, a prototype that will lead to
greater accomplishments in this
atomic era.
"Fully a third (of 1,300 inter-
viewed) . spoke enthusiastically
about intentions to get a bigger
or better place to live, move into
a nicer neighborhood, or move
from an apartment to a home of
their own," the report said.
The Center explained that their
findings probably do not add up
to the conclusion that the con-
sumer is ready to splurge, for two
reasons:
Optimism Less Buoyant
1) "Consumer optimism is less
buoyant than in 1955," particu-
larly as to long-run expectations
regarding business conditions and
also for judgments of market
conditions.
2) More consumers than at aiy
time since the Korean War expect
prices to rise in the future, and
this prospect is "heartily disliked."
Nevertheless, financial condi-
tions are improving, the report
indicated.
Expectations More Optimistic
"Now fewer people than last fall
are looking unhappily at their
po ck et bo o ks," it pointed out.
"About four out of ten families
have higher incomes than a year
ago," and personal financial ex-
pectations also have continued to
become "more optimistic."
Optimism about business con-
ditions has also continued to
grow, the Center found, with 66
per cent of the people expecting
"good times over the coming
twelve months."
But fewer people than in 1955
or 1956 believe "we will have con-
tinuous good times over the next
five years or so," the report con-
tinued.
Academies
t ~ X
Pln Visits
- WASHINGTON (M) - The top
science academies of the United
States and Russia last night an-
,nounced a two-year agreement.
for expanded exchange of knowl-
edge on developments in their re-
search laboratories.
The agreement - whose sign-,
ing was announced here by the,
National Academny' of Sciences
and the State Department - is,
between the Academy and the
Academy of Sciences of the USSR.
It provides for exchange visits
by scientists of each country for
periods up to one"year, with the
visiting scientists being' able to
observe 'or conduct research with-
in the host country.
Issue Lies
In German
articipation
U.S. Hopes Gromyko
May Compromise
On Berlin Deal Yet
GENEVA W). - Christian A.
Herter and his allies yesterday
threatened for the second succes-
sive day to walk out of the Big
Four talks unless Russia quickly
reduces its terms for a Berlin
truce.
But Andrei A. Gromyko re-
fused to budge.
Gromyko's exchanges with the
foreign ministers of the United
States, Britain and France at a
2/ hour secret session were some-
times bitter and- angry.
The head-on clash between
Herter and Gromyko left the Big
Four conference in a state of al-
most unrelieved gloom and crisis
No Progress Made
United States, British, French
and Soviet delegation spokesmen
all agreed that no prqgress had
been made and that a breaking-
point could come next week.
But some gleams of hope re-
mained. Ever-cautious U n i t e d
States and British officials ex-
pressed the view that Gromyko,
on the orders of Premier Nikita
Khrushchev, may yet cut his price
for a Berlin deal.
They ruled out the likelihood
of a breakup before next week.
There was a chance that both
East and West would during that
interval try to modify their con.
ditions on the key points that di-
vide them.
Issue:' Two Germany's
The issue yesterday, for the
third conference session in a row,
centered on Gromyko's demand
for bringing the two Germany's
face to 'face to help chart a way
toward reunification and a'peace
settlement.
'The Western powers have re-
jected this and Monday put for-
ward their compromise. This
would make the big four a con-
tinuing conference to negotiate
on a German settlement.
East and West Germany would
sit in as advisers but would enter
into direct negotiations if the Big
Four should decide this is neces-
sary.
Informants said Gromyko. de-
clined to make any specific state-
menfeither on his own plan or on
the Western proposal.
Herter To Visit Berlin
AIt was announced Herter w1;
make a one-day flying . visit to
West Berlin Saturday. He will re-
name a street in the Tiergarten
after the late John Foster Dulles.
The visit is interpreted as in-
tended to show the 2% million
West Berliners they will not be
abandoned.
British Foreign Secretary Sel-
wyn Lloyd flew to Paris where
this morning he will tell the
Council of the North Atlantic
Treaty Organization how the
talks are going.,
Eisenhower Doubtful
Canada, Norway and Denmlark .N
it is reported, are none too. happy
at the thought of a possible col-
lapse of the Big Four talks. Lloyd
may need to convince them that
there is no/alternative.
In Washington P r e s i d e n t
Dwight D. Eisenhower was 're-
ported to consider that Russia's
stiffening attitude on Berlin is
dimming prospects of an East..
West summit meeting.
On the basis of Herter's reports,
the President apparently has be-
gun to doubt whether Khrush-
chev really wants top level talks.
Polish Student
Begins Study
At University
I
CARNIVAL SPIRIT PREDOMINANT:
Annual Ann Arbor Bargain Days A
Eisenhower Reluctant'
Tso Use Taft.Hartley Act
NEW YORK ()-President Dwight D. Eisenhower was reported
yesterday as not ruling out the possibility of invoking the Taft-Hartley
Law to halt the week-old steel strike.
But he was pictured as extremely reluctant to do so.
From an excellent source in Washington came word that the chief
executive feels Taft-Hartley would do little ultimate good, despite
its 80-day strike-halting injunction provisions. Both sides are dug in
for a struggle and in the Presi-
dent's viewpoint there is no need
now for the Taft-Hartley cooling-,
off period.
The President is making no
r riv e.guess as tohow long thestrie may
relast, it was said. And he isn't tip-
ping his hand as to how long the,
one of them traveling throughout government will rely solely on
Ann Arbor to remind residents that mediation.
Bargain Days is in progress. The federal mediation, mean-
He added that" the simulated while, seemed to be making little
malls are not a Chamber-city ex- progress. Joseph P. Finnegan, head'
periment to learn the feasibility of of the Federal Mediation Service,
creating permanent malls in kept in touch with both sides here
downtown Ann Arbor, although he but failed to bring them together
expects "some comment" from the for peace talks.
shoppers. Start New Talks
-The circus theme gained impetus The strike has idled half a mil-
last year when kiddie rides were lion steelworkers and cut off about
offered for the first time. An esti- 90 per cent of the nation's steel
mated 60,000 shoppers came out output. Another 45,000 workmen
last year and estimates are that are idle in related industries-coal,
number will be surpassed' this trucking and railroads.
year. The union struck for, wage and
Give Away Balloons benefit improvements which the
Clown - type posters will be in industry rejected as inflationary.
Ann Arbor's annual Bargain
Days are here again, much to the;
delight of citizens of the com-
munity, especially the children.
Portions of S. Main and S. State
Streets will become simulated malls
during the 31st annual Bargain
Days, which are under the spon-
sorship of the Ann Arbor Chamber
of Commerce's Retail Merchants;
Division.
S. Main between Huron and Wil-
liam Sts., S. State between E.
Liberty and N. University, and the
north side of N. University between
S. State and Thayer St. were closed
to traffic at 6 p.m. yesterday and'
will remain closed until Friday
morning.
Seven carnival - type rides for ,
The proniotion committee has'
asked the 80 member stores to give
to shoppers, upon request, 200,000
tickets, called merchant coupons,
which cut the price of the ride by
10 cents- per ride. Besides the 80
member stores, another 80 stores
are expected to participate in the
Bargain Days.
In addition, 10 new car dealers
will display autos along the S.
Main mall. Cars will be offered at
bargain prices, Shipman said.
Streets To Become Malls
Area landscaping firms will place
various types of landscaping at
intersections of the malls, giving
the streets more of a mall-type ap-
pearance. Bargain days will also
be held in the S.TUnivet~vui-
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