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Seventy-Two Years of Editorial Freedom
VOL. LXXIII, No. 13-S
ANN ARBOR, MICHIGAN, FRIDAY, JULY 12, 1963
SEVEN CENTS
SIX PAGES
Predict Rough Time
For Fiscal Reform
Thayer Cites 'Fertile Climate'
For Revisions of Tax Structure
By PHILIP SUTIN
Co-Editor
Fiscal reform-centered around, a state income tax-will have
' a rough time in the Legislature, two Republican Senate leaders
with opposite viewpoints agreed yesterday.
4 "The climate is not as fertile as a year ago. It is hard to get
the public to project three years ahead," Senate Majority Leader
QStanley G. Thxayer (R-Ann Arbor)
Common Market Agrees
To Set Up Consultation
BONN-A tentative agreement has been reached among the
six Common Market countries on a formula for maintaining regular
consultation with Britain, official sources said yesterday.
They said Foreign Minister Gerhard Schroder left for Brussels
confident that the arrangement would be made final at the meeting
of the Ministerial Council of the European Economic Community.
A means of closing the split between Britain and the Continental
Six, brought about by France's veto of British membership last
oJanuary, is regarded in Bonn as
Ecuador
Powerf
Army
Snatches.
rom Arosemena
admitted.
"I'm opposed to a state-wide
income tax. I would vote against
it in committee," chairman of the
key Senate taxation committee
Sen. Clyde Geerlings (R-Holland)
declared.
Sound Out
Gov. George Romney has been
holding a series of meetings with
legislators to sound out their view-
points on fiscal reform. The meet-
ings started last week in Mack-
inac Island and will end around
August 10. Romney will confer
with all Republican members of
the Legislature winding up with
conferences'with members of the
taxation committees of both
houses and the GOP legislative
leadership.
The governor has adopted no
specific formula, Thayer said. He
is still attempting to feel out
opinions, he added.
Some Effort
"It is going to take some effort
to get an income tax. It will not
slip through," Thayer warned.
"The tax wuld have to be put
through by a coalition"
Some feelers have been sent to
the Democrats, he said, and the
response thus far has been favor-
able..
However, he noted that he was
not sure whether the Democrats
were going to be opposed for poli-
tical reasons to fiscal reform.-
See Support
"If it is a sound plan, I think
the Democrats would support it,"
Thayer said. "But fiscal reform
has so many areas attac'hed to
it, it is politically easy to attack
one of them."
The senator added that an ac-
ceptable fiscal reform program
could be based on a corporate
income tax. Using it as a "basic
gimmick" other elements could be
added or shuffled within a reform
program to gain the necessary
votes and still meet state needs,
he said.
Seven of Romney's eight sug-
gested tax reform packages in-
clude income taxes. Some provide
for the levying of local income
taxes or diversion to local gov-
ernment and school boards of a
portion of the state income tax.
Other elements include various
combinations of redutions of
nuisance and business taxes. -
Local Taxes
Instead of a state-wide income
tax, Geerlings proposes that the
Legislature permit local govern-
ments to levy such taxes.
The main issue, as Geerlings
sees it, is not the financing of
state government, but that "some-
thing has to be done about the
property tax" which he warns is
too oppressive a tax. -
One element of Geerlings still
incomplete tax plans calls for
the equal division of local income
taxes between the government
where the taxpayer works and the
government where he lives.. The
state may have to collect such
taxes as most governmental units
are not equipped to administer
these levies.
State involvement in non-
property local taxes would not be
necessary if payroll taxes are en-
acted, Geerlings continued.
to this approach. "This sort of
taxation has a way of getting out
of hand. It can end up with a
bad situation throughout the
state"
Study Aspects
The committee has divided into
subcommittees to study various.
aspects, he said, and is using ex-
pert outside advice. Thayer cited
Prof. Charles Joiner of the Law
School as one University expert
helping out.
The committee should present
its recommendations by the end
of August, he said.
The senator predicted that civil
rights legislation will be confined
,to implementing the civil rights
* commission section of the new
constitution,
While "there are a lot of ques-
tions" about t h e commission,
Thayer noted that it had a lot of
'built-in power.
Proper Budget
The main problems lie in im-
plementing it and getting a proper
budge't for the new unit, he said.
Thayer said that commission
has strong potential. He added
that last spring's bill to promote
open occupancy was just a pro-,
posed enlargement of the Fair'
Employment Practices Commis-
sion's power. The commission
could handle this problem, he
indicated.
Urge Control
Of Islands
L WASHINGTON (A)-The United
States has twice urged Britain to
bar use of Grand Cayman Island
as a transfer point for subversives
from Cuba, but has as yet received
no response, the State Department
disclosed yesterday.
This country contends that po-
tential subversive agents from
Cuba have flown to Grand Cay-
man, a small British-owned island
south of Cuba, and transferred
there to commercial airliners to
travel to other countries in the
hemisphere.
"We would like to see the Brit-
ish decide to discontinue allowing
such flights as this," Press Officer
Richard I. Phillips said yesterday.
He said the situation was taken up
with the British after flights on
June 7 and June 26.
In London, a British foreign of-
fice spokesman said "we are dis-
cussing the matter with the Amer-
icans, but have not yet given them
our reply."
GERHARD SCHRODER
. . . market agreement
COORDINATION:
Cite Action
On Services
By THOMAS COPI
A great deal of action has been
taken by the Coordinating Coun-
cil, but "much of the progress is
still of the intangible variety,"
says E. J. Soop, head of the Uni-
versity's Extension Service and
chairman of the Michigan Co-
ordinating Council of State Col-
lege Field Services.
The MCCSCFS was established
in 1959 by the Michigan Council
of State College Presidents in
order /to study and suggest rejne-
dies for the problems that the ex-
tension services of the state's col-
leges face, such as duplication of
services.
It is the understanding of the
Council of State College Presi-
dents that the chairman of the
MCCSCFS should come from the
school whose president is the
chairman of the Council of Pres-
idents. Therefore, since President
Harlan Hatcher was head of the
Council of Presidents when the
MCCSCFS was formed, Soop has
been its chairman since 1959.
Now, however, since J. R. Van
Pelt, president of Michigan Tech,
is replacing Hatcher as head of
the Council of Presidents, Soop
is being replaced as chairman of
the MCCSCFS by G. Ralph Noble,
director of the Division of Con-
tinuing Education at Michigan
Tech. Noble will take over the
chair at the council's quarterly
meeting in Ann Arbor. Usually,
the quarterly meetings have been
held at Michigan' State University
because of its central location.
But, because Soop will step down
as council chairman at the meet-
ing, it was decided that it should
be held here.
Problems now being studied by
member schools Michigan Tech,
Wayne State University, the Uni-
versity of Michigan, Michigan
State University, Ferris Institute,
Northern Michigan University,
W e s t e r n Michigan University,
Eastern toichigan University, and
Central Michigan. University are
the acceptability and transfer of
credits, cross enrollments, a for-
mula for the reporting of enroll-
ments, and the use and payment
of regular and supplementary
faculty members.
vital to the further evolution of
the stagnated economic commun-
ity.
The compromise plan, which
appears to have won approval in
diplomatic exchanges in the last
few days, would use the seven-
nation Western European Union
as the forum for British-Contin-
ental consultations.
The Western European Union
has heretofore served mainly to
coordinate the defense policies of
its members although it was set
up also to promote cooperation in
political, social, legal and cultural
affairs.
It will be proposed at Brussels
that the council of this alliance-
Britain and the six Common
Market countries - meet at fre-
quent regular intervals to ex-
change information and opinions,
particularly on trade policy. The
aim is to maintain at least some
harmony between Western Eu-
rope's rival trade blocs.
All the Common Market govern-
ments, except France, are pre-
pared to designate their perma-
nent representatives at the Eco-
nomic Community's headquarters
in Brussels to sit in this body, in-
formed sources said.
Britain would be asked to name
an official of ministerial rank as
its representative. The French
government apparently intends to
send an oficial from Paris to sit
in on the seven-nation meetings.
The compromise combines ele-
ments of a West German proposal
made in May and a French coun-
terproposal last week.
West Germany suggested that
Britain be invited to establish a
permanent mission at the Com-
mon Market headquarters to join
in regular consultation with mem-
ber country representatives.
France contended this would
amount to back-door membership
for Britain.
Copyright, 1963, The New York Times
Heyns Tells
Cost Needs r
Vice - President for Academic
Affairs Roger W. Heyns indicated
yesterday that the University will
submit to the Legislature what-p
ever budget request it deems nec-
essary regardless of whether or
nor Gov. George Romney's plan
for fiscal reform succeeds in a
September special session. t
Heyns said the University sub-
mits its requests for funds regard-
less of how much or how little
money the state may have on
hand. The University neither in-
creases nor decreases the size of
its request to agree with the con-
jectured amount of funds that is
assumed the state has available.
Currently preparations are be-
ing made to compile the budget-
ary requests from the various
schools and departments at the
University. These requests will be
evaluated by the University, form-
ed into a budget and sent this fall
to Lansing.
In Lansing the budget will be
considered by the Controller's
Office which assembles an all
state budget to be reviewed by
Romney and sent on to the Legis-
lature if passed.
Regarding the tri-semester plan,
Heyns said that it will be kept in
front of the Legislature since the
desirability and need of moving
into such a program is great. Last
year the Legislature failed to ap-
propriate sufficient funds to allow
the program to go into operation.
ry Set Junta
To Replace
' Oustd Aide
WASHINGTON (R) - A newtf
presidential board, assigned to
make one last effort to unwinding'
the railroad work rules tangle be-
fore a 19-day strike reprieve ex-
pires, picked fact-finding as its
main job today.'
But- the members agreed theyj
will mediate if they can.
If the chance for mediation'
does not appear their task is to
to base the legislative settlement
get together a report on which
President Kennedy says he will
make if the parties do not reach
agreement.'
Wirtz Leads Board
The new board,, headed by Sec-
retary of Labor W. Willard Wirtz,
was named by Kennedy in con-
nection with his dramatic an-
nouncement late Wednesday, less
than eight hours ahead of the
12:01 a.m. deadline, that the show-
down between the carriers and
their on-train workers had been
put off to July 29. In the interval
the board-and Congress if neces-
sary-are to try their hand.
The board, which is required to
make its report by July 22 and
thus give Congress a week for any
further action, met yesterday for
its organizational session, with
representatives of the railroads
and the operating unions.
Prepare Reports
Wirtz said at the start that the
group's primary function will be
to prepare a report and not direct
settlement actions.
However, he agreed with George
Meany, AFL-CIO president and
member of the board, that there
is nothing to stop mediation ef-
forts if the chance comes up.
But there are no plans for fur-
ther negotiations between the par-
ties under government auspices,
Wirtz indicated.
Absent from yesterday's initial
session were Joseph Block, board
chairman of Inland Steel Co. of
Chicago, who was reported to be
on a western trip, and George
Harrison, an AFL-CIO vice-
president and veteran railway un-
ion leader.
On hand in addition to Wirtz,,
Hodges and Meany, was Stuart
Saunders, president of the Nor-
folk & Western Railway who flew
in from Norfolk, Va. The six are
a subcommittee of the president's
labor-management advisory com-
mittee.
Start Work Today
The full group, except for Block,
is expected to swing into action
today; Wirtz said.
Representing the unions at the
meeting were Charles Luna, presi-
dent of the Brotherhood of Rail-
road Trainmen, AFL-CIO; Louis
J. Wagner, president of the Order
of Railway Conductors and Brake-
men Independent and representa-
tives of the chief officers of the
other three unions involved.
The railroads were represented
by their chief negotiator, J. E.
Wolfe, and his top aides.
Staff Arrangements
The principal business was mak-
ing staff arrangement for the
study and preparation of the re-
port.
"The key point in obtaining the
delayhfor the board's work was
agreement by the railroads to
hold off on application of the new
manpower-cutting work rules. The
unions had said they would striket
at once if the changes were made.1
Senate Democratic Leader Mike1
Mansfield of Montana said he
hopes there will be a settlement
by then so any Congressional ac-
tion will be unnecessary.
Compulsory arbitration, seizure;
of the railroads or a combination
of both have been mentioned as,
the most likely legislation Ken-
nedy would seek, if any is needed.-
Dirksen told a reporter Republi-
cans would fight either move vig-
orously and that neither could be
approved without a long Congres-
sional battle.
The board named yesterday is
the third group to tackle the
problem. But unlike the other two,
this one is not expected to come
up with recommendations for a
solution.
Peru Position
May Undercut
OAS Policies
WASHINGTON {P) - Support
for the United States against Cuba
in the Organization of American
States-of limited effectiveness at
best-could be undercut still fur-
ther by an expected Peruvian shift
toward the semi-neutralityof the
larger Latin American nations.
There are indications that Ar-
gentina may follow the Peruvian
lead.
The United States is having
troubles also with other allies in
its anti-Castro campaign.
The State Department made,
known yesterday it has twice urged
Britain to bar use of one of its
Caribbean islands, Grand Cay-
man, as a transfer point for Cas-
tro subversives. The department
said there has been no response
from the British.
Press officer Richard Phillips
said that flights to Cuba from
Mexico, Spain and Canada are
continuing also although;the Unit-
ed States has "made known to
them our interest in the isolation
of Cuba."
Phillips said some 20 "poten-
tial subversives" have flown from
Cuba to various Caribbean points
via Grand Cayman.
The complications from Peru are
expected when Fernando Belaunde
Terry takes over July 28 as presi-
dent of that country-long a lead-
ing advocate of strong OAS action
against Cuba.
Belaunde's policy is expected to
resemble the anti-interventionist
positions of Mexico, Brazil and
Chile in inter-American affairs.
In Argentina, the election last
Sunday gave the leadership of the
country to Arturo Illia, who has
promised an independent policy on
Cuba. This could mean a shift
similar to Peru's.
Under the outgoing caretaker
SEEK SETTLEMENT-AFL-CIO President George Meany (left), Labor Secretary W. Willard Wirtz
(center) and Commerce Secretary Luther Hodges confer before attempting to determine the facts
and find solutions of the railroad work rule problem. President John F. Kennedy set up a six-man
committee Tuesday in a last ditch effort to avert a railroad strike.
President's Board Meets Railers
Charge Drunkenness
Made President
Unfit as Leader
QUITO (A)-The army, with a
show of troops and tanks, sud-
denly besieged the presidential
palace yesterday to force Ecua-
dor's hard-drinking, 44-year-old
President Carlos Arosemena out
of office.
In early evening, after a de-
fiant holdout, he was reported to
have surrendered and started
preperations to go into exile.
A four-man military junta
headed by a colonel was set up to
rule the country. A junta com-
munique broadcast on Ecuador-
ean stations said Arosemena prob-
ably would be flown to Panama.
A military spokesman said the
robust president, long criticized
for lush living and inattention to
duty, had disgraced himself at a
banquet attended by the United
States ambassador and others
honoring the president of the
Grace Line, a retired admiral.
Shots were reported fired by a
tank in the besieging force to
break up a demonstration after
Radio Espejo reported Arosemena
had been overthrown.
Radio Atahualpha said t h e
junta members went to the palace
about 5 p.m. to inform the presi-
dent that he,had been ousted from
office.
It said a group of demonstrat-
ors at the palace, "which included
well known elements of the ex-
treme left," cheered -for Arose-
mena.
The station said it was then that
a . tank opened fire, sending the
demonstrators fleeing.
In Guayaquil, port city 200
miles from Quito, a group of army
officers threatened a group of pro-
Arosemena demonstrators with
machine guns and forced them to
disperse.
All banks and business houses
in the port were closed for the
siesta when the news of the coup
broke from the capital, and many
did not-reopen. .
The president's spectacular
drinking escapades led to the de-
cision that he must be removed
from office, the army spokesman
said. Impeachment efforts to oust
him for physical incapacity due to
drinking had failed in the past.
Arosemena had claimed he did
his job despite "masculine pas-
sions and vices."
After his departure for Panama
Thursday night, there were re-
ports his brother, Gustavo, had
been arrested. Another leader of
the deposed administration was
also reported held.
Shots were reported fired by a
tank besieging the presidential
palace after the first radio broad-
casts that Arosemena had been
overthrown. A broadcast said
"well-known elements of the ex-
treme left" were among those
cheering for Arosemena.
In Guayaquil, Pacific Ocean
port 170 miles southwest of Quito,
there were a few attempts to or-
ganize street demonstrations in
favor of the deposed president, but
all were broken up.
Kelley Urges
Court To Void
Scholle Case
By The Associated Press
LANSING - Atty. Gen'. Frank
Kelley and three Republican sen-
ators entered protests in federal
court to state AFL-CIO president
August Scholle's suit to nullify the
apportionment of the new consti-
tution.
Kelley said the suit was prema-
ture as the constitution does not
go into effect until January 1. He
filed a motion to dismiss.,
However, he indicated he still
felt that the apportionment, espe-
cially the Senate's 80 per cent peo-
CLOSE RELATIONSHIP:
Mc Queen Views Jew-Negro
London Abandons Exams
That Rule Pupils' Future
LONDON (P)-The London County Council has struck a blow for
schoolboys and girls.
It has decided to abolish the "11-plus" examination.
The council administers 117 square miles and spends more than'
$192 million a year on education.
The 11-plus examination was introduced throughout Britain at
the end of World War II to determine whether children transferring
_ - from primary to secondary schools
at the age of 11 were best fitted+
for an academic education or for
technical or vocational training.
The academic education is given
do n tra s t in "grammar schools." The others
are known as "secondary modern
schools." In the London County
dices are generalized and stereo- Council area about 50,000 children
tyed twJews but theirrg r d advance from primary to second-
typed toward the prejudices are the ary schools each year.
core of some of their hatred," Mc- An immediate weakness of the
Queen explained, system was that many parents saw
"As a determined minority social prestige in having children
group preoccupied with a tre- at grammar schools. Youngsters
mendous drive to succeed the often were harassed for two or
Jews should be wary of contact three years before the exam, and
with the more hatred minority failure to win a grammar school
wnih the r moe at d miner.ty place was a matter for tears and
<">
By RASHEL LEVINE
"Jews and Negroes have more
face to face contact in the North
than other groups because many
Jews are landlords, merchants and
employers in northern Negro met-
ropolitan areas," Albert J. Mc-
Queen, study director of the Sur-
vey Research Center, said last'
night in a lecture at Hillel.
dividual people and do all we can
do to mitigate our personal prob-
lems and think clearly of them
will Negroes and Jews get to-
gether," McQueen commented.
McQueen refuted the idea that
most Jews are rich. "The Jews and
Negroes are closer economically
than any other group."
Commenting on stereotypes Mc-
sidualwaff"', *-'-- , " M