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December 03, 1958 - Image 1

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The Michigan Daily, 1958-12-03

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NIXON STILL
IN THlE RUNNING
See Page #

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Sixty-Eight Years of Editorial Freedom

VOL LXIX, No. 63

ANN ARBOR, MICHIGAN, WEDNESDAY, DECEMBER 3, 1958

Council Studies
Relocation Plan
New Two-Part Proposal Creates
Plan To Help Displaced Families,
By PHILIP MUNCK
A two-part proposal for relocation of families displaced in the
Urban Renewal Project was presented to City Council Monday night
by Ann Arbor's mayor, Prof. Samuel J. Eldersveld of the political
science department.I
This proposal calls for the organization of a profit-making organi-
zation and a development foundation. The corporation would build and
operate a 30-unit apartment building to hold those families whose
homes are removed as part of the Project.
Subsidize Rents
The foundation would subsidize the rents paid by these families.
The rents for the $300,000 apartment structure would have to be $90

Michigan

Citizens' Group

Use

of

Graduated

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Allies Seek
Negotiations
On Germany
LONDON W-Key Allied lead
era came out yesterday for talk
with Russia aimed at settling th
whole question of divided Ger
many.
Their views on the Berlin cris
were linked with speculation tha
a summit meeting with Sovie
Premier Nikita Khrushchev ma
be in the minds of some Alle
statesmen.
But one united resolve qualifie
Western willingness to negotiat
It was that there must be no sur
render to Khrushchev's plan fo
making West Berlin a neutralize
free city shorn of the protection
of United States, British an
French garrisons.
Britain "To Stay Put"
Prime Minister MacMillan tol
the House of Commons he wrot
to Khrushchev 19 days ago servini
notice that Britain means to sta
Put in the former Merman capita
Hl told a questioner he Is o
course ready to negotiate on Ger
many.'
With his conservative govern
ment facing a general election i
a year or so, MacMillan's follower,
picture him as keen to take par
in'astop-level conference on th
problems of Europe,
Urges Firmness
West German Chancellor Kon-
rad Adenauer told lawmakers ix
Bonn that negotiations with the
Russians on Berlin-and all Ger.
many-should be possible if the
Allies remain firm and united.
Adenauer, President Eisenhowei
and French Premier de Gaulle al
have gone on record in favor of a
summit discussion on the issue o
German unification.
They did this before the curren
Berlin crisis blew up.
Information here suggests the
still would support the idea if i
promised a chance of progress,
Cites Developments
In other developments today
MacMillan made clear that posi-
tive Allied counter-proposals are
likely to be placed before the Rus-
sians on the German question. He
said they may be discussed tomor-
row when Parliament debates
foreign policy.
Foreign Secretary Selwyn Lloyd
refused to propose postponing
supply of nuclear weapons to West
Germany and other Atlantic Pact
powers in Europe.
Survey Finds
More Cheating
In Colleges
Results of a survey released to-
daY show that cheating has be-
come commonplace among college
students.
The report, published by Indi-
ana Central College located in In-
dianapolis, Indiana, concluded
that the increased cheating was a
result of a general decline of the
Old moral standards of American
society.
It added that the widespread
ting was not harshly con-
demned by students.
$tatistlcally, the findings of the
report indicated that 57-per cent
oX the students who participated
In the survey had cheated at some
time in their college careers and
that 75 per cent of the seniors

'per month to pay off the mortgage
within 40 years. Since the average
ability of families to pay rent is
estimated at $55 per month the
$35 difference would have to be
made up by the development foun-
dation.
The mayor's proposal asks that
the initial money, some $30,000 in
equity capital, be provided by sub-
scription and ultimately all would
- be paid off through rents from
s tenants and funds from the charit-
e able corporation.
Low-Income Groups Aided
The report adds that "it is also
t anticipated that the City of Ann
Arbor would undertake to sub-
sidize the low - income families
after the funds of the charitable
foundation are exhausted, but only
for as long as originally displaced
l low-income families remain in the
project and are unable to meet
the economic rent."
The profit corporation would
issue a single class of stock at one
dollar per share. These would have
"equal rights and privileges, in-
cluding one vote for ea'ch share of
stock."
The major's report said an at-
tempt is being made to get the
foundation qualified as a charit-
Sable, tax-exempt organization
which would make contributions
to it deductable for income tax
purposes.
No Approval Yet
No approval has yet been grant-,
ed by the, Treasury Department,
the mayor added.
The cost breakdown given in the,
report allots $30,000 for land cost,
$240,000 for constructions costs,
and $30,000 for contingencies.'
With the mortgage at 90 per cent
of replacement cost, $270,000
would come from borrowed funds
and the remaining $30,000 from
the initial investment by sub-1
scribers.
This report is scheduled to be
discussed along with submission of
loan application at the Council'sj
public hearing at 7:30 p.m. tomor-
row in City Council chambers. I

NUCLEAR:
East, West
IExchange
Test Views
GENEVA (M - Delegates at the
nuclear test suspension conference
yesterday began defining diver-
gent Eastern and Western views
on an international control sys-
tem.
For two hours and 40 minutes
representatives of the United
States and Britain on one side and
the Soviet Union on the other
sounded each other out.
It was one of the longest ses-
sions since the three-power talkst
convened more than a month ago.
Cite ProgressI

Proposed Changes
Special to The Daily
LANSING-The following is a summary of the new State
taxation plan recommended late last night by the Citizens'

Advisory Committee:
APPROXIMATE GAINS:
1. Graduated personal income tax, rates from
three to eight per cent . . . . . . . . . . . . . . . . . . ... . .
2. Net corporate income tax at a rate of five
per cent ...........................
3. New taxes on banks and other financial
institutions ............. ....................
4. Increased business activities tax ........... ...
5. Net sales tax gains before rebates totaling
$63 million ................ ...... ...
6. New levies on insurance premiums .........
7. Inheritance and gift levies..............
8. Tax on cigars and tobacco .....................
9. New tax on beer (net gain) ....................
10. Increased tax on pari-mutuel ........,........

$220,000,000
110,000,000
11,500,000
5,000,000
18,000,000
8,400,000
7,500,000
4,000,000
4,000,000
2,200,000

Total Gains...........$390,600,000

Both sides felt some progress
was made in getting a clearer
definition of ideas. But there was
no broad movement toward East-
West agreement.
Before the conference were ri-
val Soviet and American articles.
The Soviet draft of a treaty makes
only a vague reference to the con-
nection between controls and test
suspension.
The United States document is
nailed down by pledging the sign-
ing powers to cooperate with an
international control organization
able to police any suspension.
Urge Neutralization
In another conference dealing
with preventing a surprise attack,
Soviet bloc delegates continued to
plug political proposals for neu-
tralization of wide areas of Cen-
tral Europe and the Middle East.
These proposals are an elabor-
ation of the plan advanced by
Polish Foreign Minister Adam
Rapacki several months ago for
an atom free zone in Middle
Europe, including both East and
West Germany.
Call Plan Vague
The West claims the Eastern'
proposals are outside the frame-'
work of the conference called to
discuss technical problems.
The Soviet proposals contain
references to land and aerial in-
spection systems but in language1
the West regards as vague. ,

APPROXIMATE LOSSES:
1. Tangible personal property tax levied only on
inventories........................... ...
2. Sales tax rebate of $9 per person ... .......... .
3. Reductions in corporation franchise fees ......
4. Repeal of intangible tax law ............
5. Repeal of chain store tax ....................

$120,000,000
63.000,000
45,000,000
24,000,000
500,000

Total Loss ............ $252,500,000
Net Tax Gain .......... ..... .. ....... $138,100,000
AID COOPERATION:
U.S. Requests Soviets
To End Radio Jamming
UNITED NATIONS (AP)-The United States yesterday appealed to
the Soviet Union to end jamming of foreign radio broadcasts as one
way of removing barriers to friendly cooperation with the West,
United States delegate George M. Harrison estimated the Soviet
Union spends 100 million dollars a year to maintain 2,500 jamming
transmitters. Harrison told the United Nations Special Political Com-
mittee the Kremlin started out with a dozen in 1948 when the Russians

SURVEY:
Consumer
Optimism
On Rise
By BARTON HUTHWAITE
Producers can probably look for
an upswing in sales in the near
future if the American consumer
continues his present buying
trend.
A marked increase in the re-
cession-minded consumer's pur-
chasing confidence during the
month of October was indicated
in a report released today by the
University Survey Research Cen-
ter.
Apparently the American con-
sumer is not in a mood to go on
a spending spree as confidence
and job security have not been
completely restored. One out of
every five Americans still worries
about job security, the nationwide
survey showed.
Outlook Good
But the outlook for prosperity
looks good if the trend indicated
last October continues.
More families than in May and
June of this year said that their
financial situation has taken a
turn for the better, that their in-
come is higher than a year ago,
and that they expect to be better
off in another year.
Rising prices were cited by the
Survey Research Center as the
most adverse factor holding down
buying intentions.
Consumer Cautious
As a result of the increased
prices, people are cautious about
making plans for major purchases.
The American consumer is in a
discriminating frame of mind, the
report commented.
. "They must be persuaded to buy
--by products which Are judged
to be attractive and servizeable,
offered at prices which are
thought to be 'right'," the survey
reported.
With personal incomes on an
upward trend and an improve-
ment in consumer attitudes, dur-
able goods sales may be on the
increase.
Have Faith
"People tend to assume that an
upward trend, once under way,
will continue, their faith in the
basic soundness of the economy
having grown strong in the post-
war period," the report said.
Pessimism tends to be associated
either with complaints about high
prices or with the observation
that unemployment is still high,
the report said.
Optimistic answers given to the
pollsters were often accompanied
by expressions such as . . . if
prices don't go too high ... unless
the cold war becomes worse., ex-
cept for occasional spells of un-
employment.

Gambling Discovered
At Colorado And Purdue
By ELINOR PETROFF
Recent crackdowns on parlay card gambling have been reported
at Colorado University in Denver and Purdue University in Lafayette,
Indiana,
A parlay card operation was wiped out at Colorado with the ar-
rest of a Harold A. Shore for suspicion of failing to pay a $50 a year,
federal gambling tax. In October,'
the local police and two staff
members of the Colorado Daily A NNA RBOR NEW,
joined forces to crack the ring.
Later, however, it was thought 01
tha th oe atin oudivove S trik e rs
interstate traffic and federal S r kr
agents were called in.
Shore was arrested by Treasury
agents while making a "pay-off"
to one of his "pushers," in a
Boulder tavern. He was taken to
Denver for charges to be preferred
against him in Federal Court,

began jamming broadcasts of they
United States State Department's
Voice of America.
He said this "army of jammers
is one of the largest radio systems
in the world" representing a capi-
tal investment of 250 million dol-
lars. He added:
"It is five or six times more ex-
pensive than all the broadcasting
of the Voice of America, in all
languages, to all parts of the
world. Yet it broadcasts nothing
but meaningless noise.
"Its purpose, which it partly ac-
complishes, is to shut off the
peoples of the Soviet Union and
the Soviet Communist bloc from
outside broadcasts in all their na-
tive languages.
This includes broadcasts not
only by the United States but by
other countries too - and even
by the United Nations itself."
Jamming is the deliberate
drowning out of a radio broadcast
with noise from another trans-
mitter using the same frequency.

SGC Plans
Discussion
The University's discontinued
exchange with the Free University
of Berlin will be reported on at
tonight's Student Government
Council meeting, according to
SGC Executive Vice-President
Mort Wise, '59.
Robert Krohn, '60E, who has re-
turned from study at the German
school, will explain his trip and
what he feels was its value.
Wise said it is possible the
Council will hear debate on re-
viving the FUB exchange, or on
other possible exchange programs.
SGC will be told, according to
Wise, of Political Issues Club and
International Students Associa-
tion cooperation with the Coun-
cil's Sunday afternoon forums.

"

S AWAITS RESULTS:
Picket as Officials Negotiate

Two Arrested
Later two more men were ar-
rested by the Treasury Depart-
ment in Denver on the same
,harges.
The Purdue Exponent was the
first to call attention to the par-
lay card racket in Lafayette on
November 20. The Exponent stat-
ed that the cards were sold out in
the open and could be purchased,
very easily in any tobacco store
or bar.
In fact, "They are often on top
of the counter or on the bar," the
Exponent said.
The cards were still being sold
in open defiance of the law and
taverns and smoke shop opera-
tors stated that they had no in-

By SUSAN HOLTZER
As strike negotiations proceeded in Lansing yesterday, apprehen-
sive groups both inside and outside The Ann Arbor News Building
nervously settled down to wait out the shutdown.
Small numbers of pickets stood casual guard around the building;
inside, the News staff was busy at various tasks. In both places, there
was a generally cheerful atmosphere, but little optimism, for the
feeling seems to be that the strike will continue for some time.
Cancel Wire Service
Booth Newspapers, Inc., the organization which owns the News
and seven other state papers, yesterday issued a 30-day cancellation
notice to The Associated Press and United Press International, to
permit removal of the wires' services if the walkout continues through
December.
This move by News editor Arthur Gallagher was called an indica-
tion of "fear that the strike will run for a long time."
Several members of the striking International Typographical
Union echoed Gallagher's sentiments. One picket said he felt that
"if they don't settle it today, it's going to be a long, long strike,"
Staff Kept Busy
Meanwhile, the News staff is being kept busy. Besides regular
beat coverage, the paper is broadcasting a daily 15-minute news sum-

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