Partisan
Plans,
Compromises, Face
(EDITOR'S NOTE: This is the first of two articles dealing with the
current cash crisis in Michigian.)
By JUDITH DONER
r As another patch is sown into the ever-growing quilt of plans to
solve Michigan's financial crisis, those who watch cannot help but
wonder if the state's previous prosperity is recoverable.
Several long-range plans are currently before the legislative eye,
two offered as compromises, the others remnants of the partisan tax
h battle which has characterized the government's actions since the
legislature's opening session.
f Conlin Seeks Flat Rate Tax
Rep. Rollo G. Conlin (R-Tipton), chairman of the House taxa-
tion committee, Monday proposed a $140 million tax package geared
to a flat rate personal income tax. A definite compromise proposal, the
Conlin Plan basically follows the tax recommendations of Gov. G.
Mennen Williams and the Citizens Tax Study Committee, headed by
Prof. Harvey Brazer of the economics department, except for its flat
rate feature.
It calls for a two per cent personal income tax, a five per cent
corporate profits levy, a seven per cent tax net income of financial
institutions and extension of the sales tax to some items now exempt.
As offsetting factors, Rep. Conlin proposed to repeal the tax on
intangible property, the business activities tax and the corporation
franchise tax, but to reimburse counties for the $9%/ million they
would lose in intangible taxes.
Brazer Calls Plan Sound
"I think it's a sound one," Prof. Brazer said of the Conlin Plan.
"It is more than just another patch and should be attractive to both
parties." Although he expressed wonder that the proposal should favor
the business activities tax repeal, he indicated that if the result is a
more equitable tax system which will provde the necessary funds the
repeal would be justified.
Gov. Williams' plan calls for a graduated personal income tax
bill with a $125 million a year levy exempting low income groups. The
Williams' program also requests a five per cent corporation income
tax worth an estimated $110 million a year, and an $11 million seven
per cent income tax on financial institutions.
This includes a $30 million credit to business firms against their
local personal property taxes.
The Citizens Tax Study Committee had endorsed a $220 million a
year graduated state income tax. Appointed by Gov. Williams, the
advisory committee's suggestions provided the basis of the Governor's
revenue program.
Rep. George Wahr Sallade (R-Ann Arbor), advocates a variation
of Gov. Williams' plan. Sallade calls for a personal income tax of two
per cent on incomes up to $15,000, three per cent on the next $10,000
and four per cent on incomes over $25,000.
An amendment to the Sallade Plan asking for a flat one per cent
tax on all personal incomes above $1,000 has been proposed by Reps.
John C. Morris (R-Midland) and Russell H. Strange, Jr. (R-Clare).
The chief weapon in the Republican drive to ward off Gov. Wil-
liams' graduated income tax is the "use tax" bill, which House Re-
publicans revived late last week after the Senate-approved tax had
been turned down in the lower chamber.
GOP Plans Use Tax Increase
Essentially, the GOP plan is to add $108 million a year to the
state's income through a one-cent increase in the little-known three
cent use tax, which currently applies only to purchases made out of
Michigan. Proposed by Sen. Lynn O. Francis (R-Midland), the bill
would also make the tax apply to instate purchases.
In effect, the plan would be the equivalent for the public of a
Legislature
four per cent sales tax. A boost in the sales tax rate would require a
constitutional amendment.
Senate Republicans have declared that they will not vote to re-
lease the Veterans Trust Fund as a solution to the immediate cash
problems until Democrats agree to the use tax. The Fund, created
in the days when state revenues were much more than were needed,
was supposed to aid veterans virtually forever.
Alleviation, Not Correction
If this fund, the last "liquid asset" in sight, is liquidated it will
alleviate, but not correct, the state's present financial difficulties.
A second compromise plan has been offered by Rep. Harry P.
Phillips (R-Port Huron). His proposal asks that the Republican-backed
use tax increase be combined with a five per cent tax on corporation
profits, Governor Williams' plan. However, union leaders, corporations
and possibly school administrators are expected to oppose it.
These plus numerous other plans which have not taken as definite
shapes have been proposed as solutions to the current cash crisis, which
did not just "pop-up" as some might think. Both the Democratic
governor and the Republican-controlled legislature have been aware
for nearly a year that state spending was running well-ahead of state
income.
'U' HOUSING: BUSINESS
OR EDUCATION
See Page 4
woo
irit19n
D~aitbj
Sixty-Eight Years of Editorial Freedom
CLOUDY, MILD
VOL. LXIX, No. 1601
wo Air Crashes
Claim 36 Lives
Twin Disasters Hit Capital Airlines;
Occur Within Hour, 450 Miles Apart
BALTIMORE (R)-A Capital Airlines New York-to-Atlanta Vis-
count turboprop, flying through squally weather, exploded in flight
about 15 miles east of Baltimore late today, killing all 27 passengers
and four crewmen.
Fifty minutes earlier, 450 miles to the west, another Capital four-
engined plane-a Constellation-plunged over a 200-foot embankment
near the end of the runway on landing at the Charleston, W.Va., air-
port and burst into flames. Two were killed and six were hospitalized
of the 36 passengers and fivermember crew aboard. The crashes were
believed to represent the first time in history that a single airline
ANN ARBOR, MICHIGAN, WEDNESDAY, MAY 13, 1959
FIVE CENTS
;Willia s
Endorses
GOP
Move
To
Provide
Empbye
Payrolls
4'
REGISTRATION PERIOD ALSO:
W..ayne To Drop Final Exam Period
City Slowly,
Recuperates
After Storm.
By KATHLEEN MOORE
If Monday's storm wasn't a t
nado, it is probably more intere
ing than one-from a scienti
point of view.
"We don't know of anything e
that would produce such destru
tive winds," Prof. E. Wendell He
son, meteorologist in the ci
engineering department said, b
if data disproves the theory th
an "infant tornado" swept t
city, he added, it will provi
scientists with a great deal
study.
First reported as a line-sque
the storm traveled a path five
six miles long and several hundr
yards wide, he explained, a cha
acteristic that "is definitely n
typical of a line-squall," but seen
to be !indicative of a partiall
developed tornado.
Rubble Left
Whatever scientists finally d
cide to call the storm seemed u
important to residents and Ury
versit$ officials as they survey
its aftermath yesterday.
"We can't get up there to s
how extensive the damage rea
is," Albert C. Katzenmeyer, ass
ciate supervisor of physical educ
tion said as he surveyed the ro
of Yost Field House.
Pieces of roofing continue to f
at the rate of one or two per hoi
he said, and a catwalk and supe
structure will have to be built ov
the roof before anyone can inspe
the extent of the damage.
Five Homeless
Five students found themselh
homeless after Mrs. Ward Ashle:
house at 849 Brockwood, in whi
they were staying, was destroye
The local Red Cross chapter is tr
ing to locate Lee Stokes, Gra
James Maltby, '59A&D, Robe
" Waltz, 160E, Burke Raymond, 'I
and Leslie Benko, '59E, to find o
what arrangements for housi:
they have made,
The chapter reported they h
received "countless" telephox
calls (including one from Hawa
and at least 40 telegrams frc
worried parents who were unal
to reach their children attendi:
the University.
Britain Plans
Earth Satellite
-'- has had two fatal crashes in one
day.
Lightning Blamed
First reports said the plane
which blew apart near Baltimore
apparently had been struck by
lightning. However, the Civil Aero-
nautics Board in Washington said
it had no record of any airliner
ever having been exploded by
lightning.
or- The big craft ripped apart in a
st- ball of fire, spewing bits of wreck-
iflc age over an area of a mile or two.
Some bodies were found in small
Ise clusters. Others were hundreds of
ac- yards away.
w- Fifty Minutes Apart
vil The Charleston crash was at
ut 4:30 p.m. (EDT). The plane which
the virtually disintegrated near Balti-
de more was at 5:18 p.m. (EDT).
to The squally front through which
the Viscount was flying swept
all, through the Baltimore area just
to before the' plane flew through.
ed There was still much turbulence
ar- and rain flurries in the area.
not The CAB said lightning has
ms frequently hit planes but has
ly- caused only slight damage since
the electrical charge Is not ground-
. ed when a plane is in flight.
le- It sent a team of investigators to
n- the scene.
The Viscount - the one which
exploded-is powered by jet-driven
ee turbines which turn the propellers.
lly The Constellation, which crashed
at Charleston, was powered by
a- conventional, piston-driven props.
)of The wreckage of the Viscount
spewed over an area of small
all farms and clusters of houses.
By THOMAS HAYDEN
Wayne State University will
drop its traditional ten-day final+
examination period next fall, leav-
ing individual teachers the option
of assigning final exams.
Wayne faculty members charge"
the change is the first step in a
move to install a controversial
full-year (trimester) curriculum.
Wayne's University Council,
composed of about 40 faculty
members, also approved a long-
range plan to eliminate the full
week of fall registration in addi-
tion to passing the motion to
eliminate the exam period.
Both proposals were rejected
last spring when presented as
parts of a package plan which1
would have put Wayne on a tri-1
mester basis.1
Robert McCormick, Wayne as-1
-sistant vice-president, said the
move should not "necessarily" bec
interpreted as a step towards theE
trimester system. Nor should it bet
seen strictly as an elimination ofL
final exams, he added.r
Rather, the switch would "elimi-t
Senior Needed
To Give Talk
Anyone interested in speaking atI
commencement exercises contactt
Sue Christiansen, '59, this week.
Only graduating seniors are eli-f
gible, she reported. Speeches will{
be judged on the basis of content
and delivery, and tryout's activity
in his class.-
Tryouts will be asked to give ac
seven minute speech before thet
Senior Board and three speech pro-t
fessors.
nate the strait jacket which forces
the faculty to give a certain type
examination at a certain time,"
McCormick said.
Many faculty men do not give
exams as scheduled anyway, Mc-
Cormick explained. The new
method will leave the option of
giving an exam up to the individ-
Conference
Deadlocked
GENEVA W) - The Big Four
foreign ministers conference dead-
locked yesterday over a Soviet
proposal to seat Communist Po-
land and Czechoslovakia as full
participants.
The ministers wrangled incon-
clusively at their second day's
session for more than an hour,
then adjourned with the dispute
unsettled. The Russians an-
nounced they intend to bring up
the issue again today.
Soviet Foreign Minister Andrei
Gromyko advanced the new prop-
osition for enlarging the confer-
See Related Story, Page 4
ence in the wake of his quick de-
feat Monday on a demand for ad-
mittance of Communist East Ger-
many as a full negotiator.
Gromyko insisted that Poland
and Czechoslovakia must be in-
cluded as a tribute to their suffer-
ings from German aggression.
Secretary of State Christian A.
Herter and his British and French
colleagues balked. They urged
that the Big Four get on with
their big problems, the Berlin and
German issues.
ual instructor, "freeing students
and faculty members from the
standardized way of doing things."
Registration, at present a week-
long process immediately preced-
ing classes, will be eliminated so
that students can select courses
and register in class sections dur-
ing the preceding semester. "The
people who studied the question
thought they could do a better job
of advising and registering stu-
dents if done over a period of
months instead of over a period
of days," McCormick said.
The new registration program
will not be, effected until more
operational facilities are available.
Opposition to the Council's ac-
tion has come from several quar-
ters.
Prof. Richard Kane of the phys-
ics department polled 50 math
and science teachers, finding only
one in favor of dropping the exam
period.
Kane asserted the question
"should be resolved by the teach-
ers who are doing the teaching
and by the students who are doing
the studying."
Several instructors claimed they
were not adequately represented
on the University Council.
Others feared a subtle move to-
wards a trimester program. Elimi-
nation of both the examination
and registration periods would
open up enough time in the sum-
mer to insert an extra full semes-
ter in the Wayne academic calen-
dar.
A majority of department chair-
men polled by the Wayne State
Collegian were not in favor of
accepting a trimester program in
the near future, claiming its effec-
tiveness is not positively assured
and such a program would add
strains on faculty members.
I
U.S. Faculties Fear
Salary Cuts
-Daly-Len Brunette
REFERENDUM -- A majority of votes cast yesterday in the
Student Government Council opinion poll favored continued
participation in the Rose Bowl.
First Day'Voting Favors
Rose Bowl Participation
By KENNETH McELDOWNEY
A general trend in the student referendum favoring continued
University participation in the Rose Bowl was noted last night by
Roger Seasonwein, '61.
This marked the first student referendum in the history of the
University.
Seasonwein said that he expected as many students to vote today
as yesterday. It is estimated that over 2,000 students voted yesterday.
To facilitate student voting, he added, two booths will be set up today.
One on the Diagonal will be oper-.
ating from 8 a~m to 5 p~m The G l
new booth located at the entrance SGC To View
to the Undergraduate Library will
be open 10 a.m. to 5 p.m. Elections Rush,
Cites Misinterpretations E)
Many students who voted in the
referendum seem to have misin- Reports on election recommen-
terpreted the question, Seasonwein dations and on a joint committee
commented. Some students who studying men's rush will be made
voted in favor of the Rose Bowl at the Student Government Coun-
game, when answering the second cil meeting tonight,
question, also decided against any The changes in election proce-
bowl games. These ballots shall be dure will be introduced by Al Ha-
interpreted as favoring only the ber, '60, and Richard Erbe, '61, not
Rose Bowl, excluding all other a member of the Council. The
bowls, general aims of his recommenda-
In explaining the proposals, tion, Haber's proposal said, would
Seasonwein said, if a student be to further the contact and in-
wanted to vote in favor of both the volvement of the students with
Rose Bowl and other bowl games the Council.
he should vote "yes" on both pro- The report on the progress of a
posals. If instead, he continued, he proposed committee to study
does not favor the Rose Bowl but men's rush will be presented by
other games, he should vote "no" Robert Ashton, '59, ex-president
on the first and "yes" on the sec- of the Interhouse Council and
ond.I John Gerber, '59, ex-president of
Legislature
Authorizes
Use of Cash.
Governor, Brazer
Agree: 'Short Respite'
LANSING-A Senate-approved
bill which would enable the state
to pay some 26,000 employes who
went without paychecks last week
cleared the House of Representa-
tives yesterday. It likely will be
ready for Governor G. Meinen
Williams' signature sometime to-
day. The Governor in effect en-
dorsed the bill yesterday.
Auditor Gen. Frank S. Szyman-
ski said paychecks covering the
$5,100,000 payroll were made out
and ready for swift distribution
once the Senate adopts some
House amendments to the bill.
Opens Earmarked Funds
The measure, okayed 87-15,
would authorize the state treas-
urer to pay out some $10,600,000
now earmarked by law for speci-
fic purposes. About half of this is
practicably usable, the Governor
said.
Governor Williams emphasized
the fund-juggling plan "doesn't
add a nickel to the state treasury."
"It will be unfortunate if the
public gets the false impression
that this bill solves Michigan's
cash crisis," he said. It wouldn't
enable the state to meet its May
21 payroll, he added.
Brazer Comments
" As far as I can see, at best, it
will provide a very short respite
for the present cash crisis,' Prof.
Harvey Brazer of the economics
department told The Daily when
informed that the Smeekens bill
would perhaps become law today.
Prof. Brazer was chairman of
the Citizens Tax Study Advisory
Committee appointed by Gover-
nor G. Mennen Williams. The
committee' endorsed a $220 mil-
lion a year graduated state in-
come tax in January as part of a
package proposal.
Gov. Williams' endorsement of
the proposal, authorized by Sen-
ate Republicans, came as a turn-
about from his earlier insistence
that the state's 50 million dollar
Veterans Trust Fund offered the
only means of ending a money
emergency that has brought the
state close to bankruptcy.
Payless paydays for state em-
ployes last week and the week be-
fore were the first in state history.
House amendments to the fund
transfer bill would forbid the state
treasurer to liquidate Veterans
Trust Fund securities without
specific approval of the legislature.
Council Asks
Reevaluation
Fmaf. narn. (!rtmnri .+
By RUTHANN RECHT
Faculty men throughout the
country have been deserting their
universities because of salary cuts
due to reduced appropriations.
To prevent more staff members
from leaving the universities, ad-
ministrators have attempted to
raise salaries.
The senior class at Northwest-
ern University has decided to
supplement pay by donating
money collected for their senior
class gift to the general alumni
fund. "The money will be used
where the need is greatest," W.
Ronald Sims, president of the
class of 1958 and presently with
the alumni relations department,
said.
Stresses Public Relation
This would probably be on the
instructor and assistant profes-
.or livel inei th,. . fas,,1-,, mm.,
the governor's recommendation.
He feels that it is a logical issue
on which the lawmakers can show
their concern for higher educa-
tion-:
Salaries 'Number-One Priority'
The president stressed his con-
cern by identifying academic sal-
aries as having "number-one
priority" in his budget. He said
higher salaries would keep in-
structors at the university who
now might leave because they
don't have enough pay.
To document this contention,
President Odegaard flashed a
slide-chart on the screen listing
recent known offers to faculty
members from other educational
institutions and industry. The fig-
ures showed financial enticements
ranging from a little less than
$1,000 to more than $5,300 over
royalties, outside consultations Governor Michael DiSalle have
and lectures. been furnished copies of a nation-
Jonathan E. Rhoads, provost of al salary study stating that Ohio's
the university explained the ad- state university professors' sal-
ministration's position on salary aries are among the lowest in
increases: "While that which has the nation.
been accomplished speaks for it- According tothe report, the
self, the administration is cogni- faculties of Ohio's six state uni-
zant of the cumulative influence versities "have almost completely
of inflation and the tax structure failed to share in the increased
on purchasing power." productivity of the nation." It in-
"We (the administration) are cluded a list of alarming trends as
most anxious to improve the sal- a result of low teacher salaries;
good faculty members' leaving
Ai Ohio campuses for better paying
~tude lt A led fjobs in industry, government and
Sn other universities and the fact
that it is getting harder to per-
NEW ROCHELLE, N. Y. VIP) suade outstanding students to be-
-The 170 seniors of the Col- come teachers.
lege of -New Rochelle voted In the Wisconsin legislature, a
unanimously yesterday to con- bill boosting state employee sal-
tribute $200 apiece after gradu- aries, including university and
ation for use in increasing state college faculties, received
Two Proposals
the Interfraternity Council.
R nr-n., Onennuapin 'Al1 n+lr,. n