SUNDAY, FEBRUARY 12, 1967 THE MICHIGAN DAII.'l PAGE THREN SUNDAY, FEBRUARY 12, 1967 THE MICHIGAN DAILY PAflE TUREN i SALAi , 11 A-1> IN Governors Try To Hold Tax Line Despite Needs By LAWRENCE L. KNUTSON ever since he took office. Demo- CHICAGO (IP)-Most state gov- crats, firmly in control of both ernments need miore money, but houses last session, face a Repub- governors are trying hard to make lican-dominated' Senate and a good their campaign promises to 5555 tie in the House. hold the line on taxes, and most Spokesmen from both parties legislators are determined to help contend an income tax is needed. them do it. Romney has repeatedly called for This is the (national mood, an repeal or reduction of levies in Associated Press survey shows, as favor of an income tax. Last legislatures convene across the month, Romney ordered an in- nation. definite delay in implementing In state after state, governors parts of the state's medicaid pro- and legislators have announced gram, saying there was not their opposition to tax increases.lenough money to pay for it. The talk is of cutting programs Almost half the states either rather than finding revenue for have surplus funds or are on rec- new ones. ord against higher taxes. A ma- The M i c h i g a n Legislature,! jority of states h'ave raised taxes thoroughly shaken up by voters 1in the last two years, and all have in the November election, will con- had major increases in the past sider a tax reform bill which Re- decade. publican Gov. George W. Romney The rising tax bill has been has been trying to get approved made necessary by public demands for more state services, especially in education, health and welfare. Now, the taxpayers, according to v e t e r a n statehouse observers, think they are being taxed beyond reason. Some state treasurers report fi- nancial surpluses. In Colorado, Hawaii, Iowa, Minnesota and South Carolina this happy situa- tion is attributed to the economic boom and inflation. Surpluses are especially common in states which have a sales tax. But sales taxes are emotional po- litical issues in many sections of the country, and pressure is build- ing up in some states to give tax relief to property owners-a move which would require alternate sources of revenue. Kansas and North Carolina leg- islatures might pass a bill which would decrease taxes. But Oregon faces the possibility of a 15 per' cent state income tax increase. The November election radically changed the makeup of state leg- islatures. The new faces are seated mainly on the Republican side of the chambers, and many of them won on campaigns promising no tax increases. So did some governors. In Ar- kansas, Delaware, New Mexico, Oklahoma and Vermont, gover- nors have vowed to veto any ball that would raise taxes. In states with large urban pop- ulations, taxes are more of a prob- lem. Yet in New York, Gov. Nelson A. Rockefeller and most state leg- islators say the tax line can be held, by combining increased rev- enue from existing taxes with "the judicious use of bonds." New York voters have approved the creation of a state lottery with the revenue not expected to raise taxes this plus that pressure is on for tax to be used for education. year. Nine states are likely to have reform. The state expects the pop- In California, where Gov. Ron- sales tax increases, and four prob- 'ping economy to pour $270 million ald Reagan predicts a $473-million ably will see increases in gasoline, more into its coffers in the next deficit during the 1967-68 fiscal year, the problem is more acute. In one of his first actions, Rea- gan ordered a 10 per cent across- the-board cut by all departments in the gneral budget-and a 30 per cent reduction in the budget for higher education. This year's California budget stands at $4.6 billion. Observers estimate it will need even more money next year, despite any economy programs, simply through pressure of an ever-increasing population. Reagan has proposed some tax increases, on nonessen- tials such as cigarettes, and wants to charge tuition at all state col- leges and universities. Almost half the states-22-are cigarettes or state income taxes. Gov. Lurleen Wallace of Ala- bama is expected to call a special legislative session to consider a big new road bond issue and more funds for the State Highway De- partment. Gov. Otto Kerner of Illinois says he believes the need for new rev- enue will be the greatest in the state's history. The 5-cent gaso-1 line tax could be raised to 8 cents per gallon. Massachusetts Gov. John A. Volpe has asked that the tem- porary limited three per cent sales tax be made permanent. It is ex- pected to yield $150 million an- nually. Minnesota has such a huge sur- two years. Gov. Tim Babcock of Montana has urged a three per cent sales tax referendum to provide a net $77.1 million and replace some property and income taxes. In Nebraska, voters approved a constitutional amendment in the November election barring the state levying a property tax. But it didn't prohibit cities, counties or school districts from doing so. Republican Gov. Paul Laxalt of Nevada promised in his campaign to ask for the real of the 10 per cent casino tax and to seek a 25 per cent increase in gambling taxes to replace the estimated $5 million annual loss. But several bills to increase other taxes also have been introduced. Attempts to raise funds to meet increasing budget requests have been hampered in New Hampshire by a state constitution which re- quires that all taxes to be imposed evenly. Gov. John W. King has asked that the constitution be changed. Gov. Tom McCall of Oregon has asked for a 15 per cent income tax hike, and a one-third increase in corporate and excise taxes, to allow property tax relief. Tennessee officials will not spe- culate on whether a tax increase is needed, nor will they say what state and local revenue will be needed in the next two years. The Tennessee property tax assessment has been held unfair and discrim- inatory in recent state and federal court decisions, and the problem is now in the hands of a state tax study commission. TREATY BREACHES REPORTED: Red Army Takes Peking; Viet War Action Continues Following New Year Truce Border Commands Alerted Troops Shift To Russian Boundaries Chinese Army Sets Up Military Control Conmittee as Police TOKYO (W)-Japanese dispatch- es reported the Red Chinese ar- my took control of Peking yes- terday while orders posted in the name of Mao Tse-tung alerted military commands on the fron- tiers to watch for moves against China by forces of imperialism and revisionism - Chinese terms for the United States and the So- viet Union. A dispatch from the Peking- based correspondent of the Tokyo newspaper Nihon Keizai said the Public Security Ministry and the People's Liberation Army garri- son command issued a decree re- vealing the command has taken over duties of the police and set up a "military control committee." Red Guards posted orders in Mao's name around Peking, an- other Japanese dispatch said. Emphasis The emphasis in the orders was on the Soviet-Chinese border in the west and Sinkiang Province, where Red China -has its nu- clear testing ground at Lop Nor, the Japanese account reported. It added there is also some concern in Peking for mainland areas fac- ing the Nationalist Chinese is- land of Formosa. The orders noted a sharp in- crease in aircraft and troop move- ments along the Soviet-Sinkiang border but did not say whether thv w rp Chinese or Russian. d DELAY LUNAR SURVEYS: Unmanned Flights Favored For Venus and Mars Study Russell Says Congress To Give Funds SAIGON G' - The four-day Lunar New Year truce-marred by repeated and often bloody clashesI -ended today and the Vietnam war went on. The ceasefire proclaimed by1 South Vietnam and joined in by its allies came to its end at 7 a.m. Saigon time as scheduled, despite a Viet Cong declaration that the Communists would hold off on of- fensive activity until Wednesday said: "I can't comment on that." Announcements in Saigon and Hanoi set the stage for the re- sumption of offensive operations after four days of nominal peace that such world figures as Pope Paul VI and U.N. Secretary-Gen- eral U Thant had sought to have extended into talks to end the war. South Vietnam's military com- mand said before the truce ended it would resume all field cam- paigns that were under way when the cease-fire began Wednesday. Armed Forces As to what the U.S. armed forces would do, a spokesman for Gen. William C. Westmoreland's head- quarters said before fighting re- sumed, "I cannot comment on fu- ture operations." But there was little doubt in Saigon that they would open up on both sides of the border. r- _ - _ . *Sn *.U " WASHINGTON (P)-The Presi- dent's Science Advisory Committee recommended yesterday that after a lunar landing is achieved, the United States proceed with rela- tively modest moon surveys and set out on a strongly upgraded program of early unmanned ex- ploration of the nearer planets. The committee recommended against establishment of a single new major space goal, like that of the late President John F. Ken- nedy, for a lunar landing in this decade. The committee also found it in- advisable to make any early at- tempt to establish a permanent base on the moon.E Furthermore, the group said, it would be premature at this time to try to set up a timetable for missions to the planets, or a list- ing of priorities as to planets. The committee looked doubtful- ly at the National Aeronautics and Space Administration pro-, posal to convert the spent second stage of an unrated Saturn 1 ve- hicle into an orbital workshop. Instead the committee recom- Fredlcts $ 77Million mended that NASA consider ac- To Finance Antimissile quiring from the Defense Depart- ment the Air Force Manned Orbi- Systems Installation tal Laboratory which would have WASHINGTON (P)-S Rich- the advantage of being a fully- ard .Russell(D-Ga en. Rich- equipped working station. . ) predicts The MOL is launched by the that Congress will put up the $377 million President Johnson asked Titan 3 booster, and the commit- in standby funds to start install- tee's proposal would involve fur- anant is Russell, who heads the Senate The committee said there was a Armed Services Committee, said lack of integrated planning by in an interview "Congress is in a NASA as to planetary exploration box" because Johnson made spend- in the 1970's. The group said that ing of the proposed appropriation it also had reservations about contingent on negotiations with NASA's plan for a manned Mars the Soviet Union for an agree-, flyby mission in '1975 and ques- ment under which neither country tioned whether this would be the would go into this highly expensive most effective possible use of a field. human crew. "I don't know anything that The committee urged that more Congress can do but provide the attention be given to the possible money and hope that it won't use of unmanned systems to ob- , have to be spent," Russell said. tain and return samples of the Skeleton System surface material of Venus and He said that if the Russians Mars. ± n - morning. Announcing the end of the holi- day stand down, a U.S. military command spokesman said "full military activity in the Republic of Vietnam was resumed." Air Raids in North Asked if this meant that air raids against targets in Commu- nist North Vietnam also were re- sumed, the official spokesman As if expecting grounded U.S. combat planes and muzzled war- ships to strike at it again, North Vietnam reiterated in a broadcast from Hanoi that peace talks could take place only after an uncondi- tional halt n U.S. bombing "and other acts of war" against North Vietnam. Movement Declines The U.S. Command annnounced there had been a considerable de- cline in the southward movement of North Vietnamese supplies after a surge that was reported Friday to be five times the normal level when the warplanes were aloft.. This could mean that, with ex- tra munitions piled up near the border, President Ho Chi Minh's regime didn't want its trucks and boats exposed unnecessarily-a- ed or empty-after today's dawn. The Viet Cong, in their own one= sided truce call, sought- a seven- day break for the Tet holidays, the Vietnamese celebration of the lunar new year. They said they intended to refrain from initiating any action until 7 a.m. Wednes-. day. Communist Responsible In' the face of this, however, allied authorities said the Com- munists had been responsible for 333 incidents up to last night. Of these, 84 were called significant, meaning there were casualties on at least one side. The U.S. =Com- mand departed from routine to announce 17 Americans had been killed and 126 wounded. Ordinarily, casualties are an- nounced on a weekly basis. Gandhi Party Faces Loss in India Vote South Vietnam Constitution Nearly Early Completion i SAIGON P) -South Vietnam's new constitution is nearing com- pletion in an atmosphere of re- strained optimism. By law the constitution must be written by March 27. It is now ex- pected to be completed a week or two early. A headon clash between the 117- member Constituent Assembly, which is writing the new national charter, and the military govern- ment which has the final word on its implementation appears to have been avoided. A series of private luncheon and dinner meetings this month be- tween junta leaders and members of the assembly have lessened the cils for cultural, educational, so- cial and economic affairs and mi- nority groups and a two-party po- litical system. Election of a president and vice- president on the same ticket is provided for within six months after the constitution is promul- gated-scheduled for May 3 at the latest. Voting for a two-house National Assembly, under present plans, would be held within 12 months after the presidential election. There is a growing inclination to revise this to hold the two elec- tions simultaneously to save mon- ey, ease the administrative burden and launch civilian rule as soon as possible. NEW DELHI (P)--India holds its fourth general elections begin- ning Wednesday. Sometime after that-in March or April-the majority party's members of Parliament will meet to select the prime minister for the next five years. There is no question but that the Congress party again will be the majority party but there is considerable uncertainty whether Prime Minister Indira Gandhi will be their choice. About 250 million are eligible to cast ballots to determine the peo- ple who for the next five years will fill the'521 seats of Parliament's lower house and the 3.560 seats state of Uttar Pradesh was select- ed so she could devote her time to national campaigning. But these plans were dashed when Mrs. Gandhi suffered facial injuries when hit by a stone thrown by a heckler at Bhubanes- war last Wednesday. She was hos- pitalized overnight Friday and or- dered to discontinue her campaign. The incident may bring a sub- stential wave of sympathy votes, especially from women, who com- prise half the electorate. It said particular consideration should be given to a 1970 unman- ned mission capable of probing the atmosphere of Venus. It added there should be an expanded com- mitment of the Voyager plane- tary lander program, pointing to- ward a soft landing of a Surveyor- type capsule on Mars in 1973 but with provision for the possibility that a similar mission to Venus may also receive a hard priority for the early 1970's. It proposed that during the 1970's unmanned spacecraft be sent to Jupiter and Mercury. prove obstinate about expanding the skeleton system they are in- stalling around Moscow he looks for a long-term American program which would require an outlay of about $40 billion over the next 10 years. "We could do it, of course, but I hope we don't have to," Russell Gardner Not Available For University Position E , { f 1 Ley wer aei r xbii. A Peking dispatch of the Kyodo danger of sharp divergence on the news service said the posted orders provisions, Vietnamese sources quoted Mao as telling military said. commanders and Communist par- Both sides appear to be doing ty leaders they need not pursue everything possible to avoid a con- his purge of internal foes simul- frontat on. Th s iseill poAsia, taneously with the alert. He also everywhere an especiare to be acknowledged that this turn of avoided if face is o be saved. events would delay the purge, Kyo- The assemblymen resume sit- do said. ting Tuesday in the refurbished Mimeographed Orders French-built opera house. They Kyodo said the orders were con- will debate the proposed powers of tained in mimeographed bulletins the executive branch. posted in the Chinese capital as Political sources said the gen- 100,000 persons denonstrated out- erals who rule Vietnam were un- side the Soviet Embassy. Earlier happy with the draft articles on Premier Chou En-lai and Foreign presidential powers. The Constit- Minister Chen Yi assailed the So- uent Assembly limited the powers viet leadership in a mass rally. of the executive branch compared Chen told the rally that Soviet with those for the proposed Na- leaders had "frantically suppress- tional Assembly. ed Chinese students" who went to This was deliberate. Some dep- lay wreaths at Lenin's Tomb and uties were imprisoned during the Stalin's grave, regime of the late President Ngoa The leaders, Chen continued, Dinh Diem. Under Diem the leg- "organized special agents and islature was a rubber-stamp body. thugs to break into the Chinese Diem's overthrow Nov. 1, 1963, Embassy in Moscow to carry out marked the end of the old consti- sabotage and looting and sav- tution. It could not be revived for agely beat up the Chinese diplo- emotional, nationalistic reasons. matic representative and embassy The draft constitution's nine personnel. chapters include provisions for ex- "There are Fascist atrocities ecutive and legislative branches, rarely found in the history of an independent judiciary with a world diplomacy," Chen said, "and 15-member supreme corut, a bill of they constitute a grave provocation rights, basic provision as to what to the Chinese people." comprises Vietnam, advisory coun- World News Roundup By The Associated Press WASHINGTON - Members of the select committee looking into Adam Clayton Powell's qualifica- tions for a House seat are cur- rently considering at least five possible recommendations, it was learned yesterday. This emphasizes the contention of Chairman Emanuel Celler (D- NY) that the committee has a broad mandate under which the nine-member group could well pro- pose something other than merely seating or excluding the contro- versial New York Democrat. ROME-A crisis that could have toppled Premier Aldo Moro's third Catholic-Socialist coalition gov- ernment in Italy appeared yester- day to have been averted. A Socialist leader indicated that Moro had made some concessions to Socialist legislative demands. The party leader, Co-Secretary Francesco De Martino, told news- men asking about the possibility1 of a crisis: "I would think it will be avoided." ' . * * BOGOTA, Colombia-Colombia's Council of Ministers declared a state of emergency yesterday as the death toll from Thursday's earthquake rose to 93. Another 200 persons were injured. Hardest hit was Huila province, where officials said 69 persons per- ished. Huila is in south central Co- lombia. Fifteen persons were killed in Bogota, the capital, and anoth- er nine perished in small villages. LISBON, Portugal - Portugal has told the United Nations that the economy of the Portuguese African colony of Mozambique has been seriously harmed by the UN- backed blockade of Rhodesia. Por- tugal demanded $28 million dam- ages. The demand was made public in Lisbon yesterday with disclosure of a letter from Foreign Minister Al- berto Franco Nogueira to UN Sec- retary-General U Thant. The let- ter was dated Feb. 3. . -. . t said. of the various state legislatures. Sen. William Proxmire (D-Wis), f ChkroUg Elein head of the Senate-House Eco- nomic Committee, said he believes Because the country does not the Russians are changing their have the facilities to hold all the tune since Johnson's announce- balloting on one day, it will be ment that he wants an agree- spread over seven days. Counting ment to eliminate antimissile out- will start after all voting is com- lays. pleted and the government hopes "I think that Secretary of De- to have complete returns by fense Robert S. McNamara is fin- Feb. 24. ally getting through to them, that In May, all members of Parlia- if you spend $3 or $4 or $5 billion ment as well as all state legisla- for defense in an antimissile sys- tors will vote on the country's next tem, you can counteract that by president. President Sarvepalli spending about $1 billion in of- Radhakrishnan, who is 78 and in fense," he said. poor health, is not expected to "Everybody I've talked to is con- stand for another term.j vinced. including the ones on the Mrs. Gandhi's Congress party is other side in this argument, that expected to make its worst show- we can get through any kind of ing since independence although antimissile system that they con- it will still hold a majority. It struct. holds 364 of 509 seats in Parlia- Proxmire said he thinks it is ment now but may go into the next important to try to get some kind term with 325, or fewer, of 521 of agreement with the Soviets. He ter th said that a pact not to build a rseats. system might have $35 billion "but;i Stronger Candidate that's the least important.n If the party does better than "The most important aspect of expected, Mrs. Gandhi's position it is that where does this arms will be strengthened but if it does race escalation end? badly, as feared, the party may "If we build this, the Russians look for a strongercandidate. build it, we can go up and up and' Mrs. Gandhi's seat in Parlia- eventually we're going to get a ment is regarded as certain. A t-ann4 a , 1 ,.af" n -,f c.4+inntt in 10'hr no 'I L4PLL, 5 SLSISJ WASHINGTON (P) - Secretary of Welfare John W. Gardner said yesterday he is not available- for other jobs because he is committed to carrying out present programs and establishing new ones in his Cabinet post. Reports have been published in recent months that Gardner was being considered for the presi- dency of Stanford University, the University of California at Berke- ley, the University of Michigan and the University of Oklahoma. Asked in an interview to com- ment on such reports, Gardner said "I am not available. I am reavily occupied in a job to which I am very deeply committed.. "There is a whole series of ob- jectives I have set for myself. I must carry them out in justice to the people I have asked to work with me and in justice to the President. "These involve the legislative programs in all fields -of health, education, and welfare, both for expansion of existing programs and establishment of new pro- grams." The secretay said he regards his proposal for reorganization of the department to provide for an over- all secretary with three subordi- nate secretaries, one each for health, education and welfare, as a part of the whole series of ob- jectives he has set for himself. The means of effecting the re- organization still is under study, he said, with final decisions still to be reached on just where some agencies within the department would be assigned in the realign- ment. I BENEFIT PERFORMANCE for the CINEMA GUILD nuclear war. i. "sale constituency in ner name ' DEFENSE FUND: I I ORIGINAL CAST RECORDING N OF OUT OF OUR MINDS w GUILD HOUSE 802 Monroe MONDAY, FEBRUARY 13 LII%'tL I I ILref-L I-f's I MAKE THE BEST OF THE WEATHER Come TOBOGANING with us Meet us for supper at 6:00 (50c)- 7:00-Head for the Hills BUSTER KEATON in "COPS" TALK BY PAUL KRASSNER -EDITOR & RINGLEADER 6 -._ U I Ii Si II i