omney Presents

12-Point Fiscal Reform Progra


By STEVEN HALLER
Special To The Daily
LANSING-Gov. George Rom-
ney yesterday introduced to a
joint session of the Legislature a
12-point program for fiscal reform.
Following his report, Senate
Majority Leader Stanley G. Thayer
of Ann Arbor and GOP Floor
Leader Sen. William G. Milliken
of Traverse City introduced a ser-
ies of 23 bills which would imple-
ment the new program.
The governor's plans call for:
1) a two per cent personal in-
come tax, as well as a 3.5 corpora-
tion income tax and a 5.5 per cent
levy on the income of financial
institutions, bringing in a total of
$140 million;
2) local option provisions allow-
ing, cities to levy a personal in-
come tax of up to one per cent;
3) earmarking for educational
purposes part of the money to be
derived from new revenues instead
of from the sales tax;
4) homestead property tax de-
ferment of up to $200 per year
for persons over 65 years of age;
5) exemption from/the sales tax


of food consumed off the premises,
reducing the tax yield by $91 mil-
lion;
6) repeal of the business activi-
ties tax, resulting in a $78 million
decrease in revenue;

7) revision of the
franchise fee, for an
$500,000 in tax relief;

corporate
estimated

8) exemption of prescription
drugs from the sales tax, reducing
the tax yield by $1 million;
9) repeal of the intangibles tax,
resulting in $35 million of tax re-
lief;
10) relief from local real and
personal property taxes levied for
school purposes, for a tax cut of
$93 million;
11) improvement of present pro-
cedures of assessing and collect-
ing real and personal property
taxes; and
12) revision of the beer tax for
state breweries.
Tax Reform
Romney explained that his pro-
gram was based on the idea of
"tax reform without tax increase,
for jobs and justice," and that he
planned to accompany his fiscal

reform program with economy
measures elsewhere within the
governmental structure.
As examples of such economy
measures, he cited elimination of
unnecessary positions in state
agencies, reduction of state print-
ing and communications costs and
an overall plan for centralized and
more effective use of state equip-
ment.
Romney went on to say that
three basic deficiencies now exist
in the current state and local tax
structure. For one thing, "low in-
come families carry a bigger share
of the total tax load than they
should," he noted, citing as an
example the current four per cent
sales tax, "which was the highest
in the nation until Pennsylvania
went to five per cent earlier this
year."
Romney said further that "busi-
ness taxes are unfair and deter
job creation. Michigan's present
tax structure imposes equally high
state taxation on new and estab-
lished business alike, on profitable
and struggling business alike.
"The primary criterion of state

taxation is the actual existence of
a business enterprise . . . regard-
less of (the corporation's) age or
the color of the ink on its balance
sheets."
Third Deficiency
The governor noted as the third
major deficiency that "local gov-
ernment does not have the tax
capacity to handle its own prob-
lems.
"Many local governments today
.. flock to the state and federal
governments for help. This not

only moves self-government I
ther away from the citizen, but
a more expensive way to get thi
done."
The governor proposed that
the state personal income tax,"
federal exemptions of $600 for
taxpayer and each dependent
followed, along with additio
exemptions for age and blindne<
However, he proposed neither
standard 10 per cent deduction
standard expenses nor the itemi
See ROMNEY, Page 5

--Associated Press
TAX MESSAGE-Gov. George Romney addressed a joint session of the Legislature putting before it
his tax program. Included in his plans for Michigan tax reforms are a personal and corporate in-
come tax.

Blondy Summarizes
Romney's Reform
By PHILIP SUTIN
National Concerns Editor
and
MICHAEL HARRAH
Special To The Daily
LANSING-Gov. George Romney's fiscal reform program is "1i
packages under a Christmas tree-there are some good things a
some bad things for everyone," Senate Minority Leader Charles
Blondy of Detroit said yesterday, summing up the general reacti
to the governor's message.
"It's a well-rounded program which in substance could for
the basis of a real fiscal reform plan," Lt. Gov. T. John Lesim
declared. While its details need?

I1

i

.. _


Seventy-Three Years of Editorial Freedom

47 A
Pal I

VOL. LXXIV, No.11 ANN ARBOR, MICHIGAN, FRIDAY, SEPTEMBER 13, 1963 SEVEN CENTS EIGHT PAGES

House

To Investigate Research;

MedicalBl
To Undertake NEW RESEARCH
Full Probe U ve
Of ProramsBy KENN
The University's first batch
Groups Receiving $750,000 state economic-expansi
Federal Finances to Lansing.
The package includes nin
Objects of Review emphasizes business and econo
research, James E. Lesch, assista
WASHINOTON - T h e House affairs, said yesterday.
unanimously agreed Wednesday to "This is the first of a two-p
launch a full-scale investigation of will submit this year," Lesch , e
federally-supported research pro-
grams. Students Clash
'House Speaker John W. McCor- ( d R S 1 8
mack (D-Mass) will appoint nine
representatives to undertake theA
year-long study of the $14 billion
federal research budget.
* Approximately 20 per cent of n uba Trip
this goes in grantsandrcontracts
to colleges and universities. By The Associated Press
Adequate Returns WASHINGTON - College stu
The major purpose of the in- dents, including Michael Brown
vestigation is to determine whether '64, of the University, clashed wit
or not adequate returns are being police yesterday in two small-scal
realized from the federal expend- near-riots as a House subcommit
tures, appropriated for diverse tee began an investigation of som
projects .originating in approxi- young Americans' trip to Cuba.
mately 40 federal agencies. One fist-swinging clash cam
0 The panel will have the power when police moved in to ejec
to subpoena witnesses and finan- noisy students from the Hous
cial records. It may hold Wash- caucus room after they interrupte
ington hearings and on-the-spot the hearing with a burst of ap
investigations. plause from Levi Laub, a leader o
Ninety per cent of these funds the 59-member United States dele
are spent by five agencies: the gation that went to Cuba in defi
Defense Department, the Nation- ance of a State Department trave
al Aeronautics and Space Admin- ban.
istration, the Health, Education The other broke out moments
and Welfare Department, the after the end of the hearing con
Atomic Energy Commission and ducted by a subcommittee of th
the National Science Foundation. House Committee on Un-American
No Previous Review Activities.
"No government-wide review has Chairman Edwin E. Willis (D
ever been attempted by the la) had told the House Wednes
House," Rep. Carl Elliott (D-Ala), day his committee had information
the authorizing resolution's spon- a demonstration was being plan-
sor, noted. ned to disrupt the inquiry.
The 336-0 vote followed resolu- Willis demanded order a half-
tion of a political battle which dozen times during the two-hour
had erupted over just who was to morning session. Barry Hoffman
make the investigation. Several a 26-year-old Boston businessman
powerful committee c h a i r m e n who made the trip as an under-
whose committees handle research cover agent, was the witness.
appropriations opposed the forma- Hoffman said the young people
tion of the new group when it was mostly went to Cuba to try to
suggested by Rep. Howard Smith break the State Department travel
(D-Va), chairman of the House ban rather than to study the island
rules committee. regime.
The chairmen claimed Smith's But when Laub refused to tell
investigation would trespass on the subcommittee anything about
their group's jurisdictions. Repre- other leaders of the Cuban travel
sentatives George P. Miller (D- movement-saying he would not
Calif), chairman of the science be an informer-his supporters in
and astronautics committee, and the audience let go with their long-
Carl Vinson (D-Ga) went so far est and loudest burst.
as to set up their own investigat- Willis waited until the noise
ing subcommittees. subsided. Then he told Capitol po-
However, a section of Wednes- lice to eject the demonstrators.
day's resolution apparc itly repre- A scuffle broke out when police
sents the compromise which end- seized a handful of demonstrators.
4 ed the battle. It calls on the new Twenty Washington policemen

Goes

Toi

President)


[FUND:
pity Submits Plan

ETH WINTER

{
i


of proposals for projects under the
on research fund are on their way
e proposals totalling $650,000, and
mic studies as opposed to technical
nt to the vice-president for academic
art group of proposals the University
xplained. "Presumably" the first set
t will be considered by the state
Legislature in this fall's session,
he added.I
The second batch, probably
more heavily oriented toward nat-
ural-science and engineering re-
search, should be ready in two
months in time for the regular
session opening in January.
Three Areas
The proposals submitted yester-
, day are for research in three gen-
n, eral areas:
;h 1) An intensification of aca-
e demic-industrial usiness inter-
- action;
e 2) Attacks on economic and
business problems, and
e 3) Application of the Univer-
A sity's scientific and engineering
e strength to the technical advance-
- ment of a key industry. This re-
>- fers to assistance in applying re-
f search findings to up-date oper-
- ations in this industry.
- Exactly what industry the third
l point concerns, and specific de-
tails of the research proposals
S have not been released.
e IST To Head Projects
"These projects would become
n part of the University research
program and would be coordinat-
ed by the Institute of Science and
Technology's division of industrial
- development," Lesch noted.
Though the IST group, which
has done economic-expansion re-
search for the state before, would
, be the "focal point," a majority
of the work probably would be,
done by other University units, he
said.
Most other state colleges al-
ready have submitted their bids,
led by Michigan State University
with 58 propo: als for projects
totalling almost $1.9 million.
Wayne State University proposed
one $200,000 project, and other
institutions have submitted small-
er bids.
The proposals now go to a 25-
man committee selected by Gov.
George Romney. This group will
screen the proposals and submitc
them to the governor. Then the"
Legislature must approve the t
package the governor submits.
The $750,000 fund, originally
suggested by Rep. Gilbert Burs-
ley (R-Ann Arbor) and passed by s
. 411 - ,. .1 _a . _ __

JAMES E. LESCH
... requests

Overcomes
Goldwater's
objections
Senate Turns Back
Civil Rights Rider
WASHINGTON(MP)-The Senate
passed and sent to President John
F. Kennedy yesterday a $236.4 mil-
lion medical education bill to help
train more doctors and dentists.
The three-year program, the
first of Kennedy's new proposals
to clear Congress this year, au-
thorizes $61.4 million for loans to
students and $175 million to aid in
the construction of new medical
and dental schools throughout the
country.
Ends 12 Year Fight
Its passage by a vote of 71 to 9
climaxed a 12-year fight.
Administration forces beat back
several Republican efforts to
amend the measure and finally
drove it to passage in the same
form it cleared the, House last
April. This precluded any need for
further House action.
The closest squeak came on a
39-37 vote rejecting an anti-dis-
crimination rider offered by Sen.
Jacob K. Javits (R-NY).
Also defeated, 63 to 18, was an
attempt by Sen. Barry Goldwater
(R-Ariz) to knock out the $61.4-
million authorization for student
loans. Goldwater said the Ameri-
can Medical Association already
has a student loan program.
$2000 Loans
The bill authorizes loans of up
to $2000 a year at slightly more
than 3 per cent interest. They
would be repayableovers10 years
starting three years after gradua-
tion.
Sponsors of the bill said the cost1
of medical education ranges up
to $20,000, which they describedI
as prohibitive for many youths. (
Kennedy said the program wouldt
make it possible for many students
to get a medical education whof
otherwise could not afford it. 1

Sam Gets
Entrance
Job at 'U'
By MICHAEL SATTINGER
Leonard F. Sain, formerly an as-
sistant principal at Detroit's East-
ern High School, will be working
with the University admissions of-
fice "to strengthen the Universi-
ty's capabilities in dealing with
studentswho have experienced de-
privation either in their homes,
neighborhoods or schools," Vice-
President for Academic Affairs
Roger W. Heyns announced re-
cently.
Sain will begin work here at
the University to familiarize him-
self with admissions before start-
ing field work to achieve these ob-
jectives:
1) To assist high schools that.
have substantial numbers of these
students develop counseling pro-
grams and curricula that are ef-
fective in keeping promising stu-
dents in school.
2) To be sure that the University
knows about any student for whom
the educational opportunities of
the University are appropriate and
to increase the likelihood that he
will attend the University.. '
3) To work with the schoolsand
colleges of the University to in-
sure that the special problems in
adjusting to the first year pro-
grams are recognized and dealt
with.
"We know from past experience
that if sensible and sensitive as-
sistance is given we can avoid un-
necessary dropouts," Heyns said.
"The University would otherwise
induce failures. Capable students
coming to the University from
weaker high schools find it difficult
to meet standards the first year.
IQC Elections
Fill Vacancies,
Curtis E. Huntington, '65, was
elected Inter-Quadrangle Council
president in a special election held
last night.
Huntington, who ran unopposed,
takes over from Kent Bourland,
Spec., who recently resigned. The
posts vacated by the resignations
of Barry Kramer, '65E, and J. Pe-
ter Matilla, '65, as vice-president
and secretary, respectively, were
filled by John L. Eadie, '65, and
Robert E. Marrone, '66E. 4

clearing up, "there is no reason
why there could not be Democratic
support for it unless the governor
is not amenable to revisions in the
program," the lieutenant governor
added.
No Mud Intended
Lesinski noted that the primary
interest of the, Democrats lies in
making the program acceptable.
"The Democrats are not inclined
to muddy the waters with their
own program."
Former Gov. John B. Swainson
endorsed the general outlines of
Romney's program, saying "I think
the governor should have no
trouble at all in getting it passed.
I simply hope he is successful."
"'I only missed by one, vote in
my program last year and this
was with the legislative majority
held by the opposition party. Rom-
ney has the majority with him."
Hopeful, Cautious
Senate Majority Leader Stanley
G. Thayer of Ann Arbor, who co-
sponsored Romney's program in
the Senate, was hopeful, but he
cautioned that it would take much
effort for its passage.
"Any major tax program can
only be enacted with the full co-
operation of both branches of gov-
ernment. This program, like some
of the proposals in the past, will
require the greatest efforts to over-
ride the inherent tendency to leave
things as they are. Even dynamic
programs require great efforts on
the part of the leadership in order,
to overcome this tendency towards
the status quo." -
However, many legislators snip-;
ed at various portions of Romney's
program.
See LEGISLATORS, Page 5
Rushees Tour
FraternitiesC
Although 901 men signed up for
fall rush as compared with last
year's 619, "the number of men
actually rushing does not seemZ
commensurate with the numberY
who signed up," Interfraternity
Council Rush Committee Chair-
man Lawrence G. Lossing, '65, an-
nounced yesterday.
"Last year we operated underc
a districting program and requiredt
a minimum of eight visits to dif-5
ferent houses, more than most men1
would visit. These were often arti-
ficial visits, not for interest butc
just to fill the requirement. ButF
compared with two years ago,a
when we were under the samev
system as now, we are coming
along comparably," Lossing ex-
plained. Two years ago about 800t
signed up for rush.
"This is also indicative of a s
trend toward spring rush, which v
will probably be greater than in r
the fall. In the past rush was two i
weeks after school started; now I
it's a week after. Many freshmen d
come up not convinced that fra-
ternities can help them in orient- E
ing to the University; they often
feel it is better to wait until sec-t
ond semester to rush'instead of a
after one week of classes," Lossing t
continued,.t

SGC-
Four Students
Seek Election
Four students have taken out
nominating petitions to run as
candidates in the Student Govern-
ment Council elections Oct. 9, Nina
M. Dodge, '63BAd, SGC elections
director, announced yesterday.
They are Scott B. Crcoks, '65;
Douglas Brook, '65; SGC Admin-
istrative Vice-President Thomas L.
Smithson, '65, and Robert J. Shen-
kin, '65BAd.
Elections will fill six full and
two half term openings on Coun-
cil.
Also on the ballot will be a ref-
erendum proposing that elections
of the Council president and exec-
utive vice-president be by campus-j
wide election. These officers are
currently elected from among the
11 elected members of the whole
Council.

ELMER R. PORTER
... in commission

Laegislative
Audit Group
Halts Work
Special To-The Daily
LANSING-The Legislative Au-
dit Commission will be "dormant"
until next January, its chairman,
Sen. Elmer Porter (R-Blissfield),
announced yesterday.
With the special session de-
manding much of its member's
time, the commission will not
schedule any meetings or studies
until the next regular session, he
continued.
However, before going into this
quiet period, the commission blast-
ed the. state's colleges and univer-
sities for failing to conform to
state accounting standards. It also
"frowned upon" a Wayne State
University purchase of a apart-
ment building before getting legis-
lative approval for using self-
liquidating funds.
Junior College Census
The commission also took a
census of out-of-state students in
the state's junior colleges, finding
568 in the 36,321 enrolled in the
16 institutions.
The report urged "the boards
of the colleges and State Board of
Education to carefully review the
audit exceptions of their, schools
with the goals of reducing the
arge number of exceptions ap-
pearing in the report of the audi-
tor general."
The main criticism centered on
state colleges and universities
without constitutional status. It
noted that a meeting with Super-
ntendent of Public Instruction
Lynn Bartlett, Frank Mcaury,
director of state administration
department accounting division,
Beamon Potter, of that depart-
ment's auditing section and Comp-
roller Glenn S. Allen showed that
udits of the various non-Constitu-
ional universities were not going
to any central state office.
Fall Behind
Allen said that rapid student
,rowth in these institutions had
aused business procedures to fall
ehind. He warned that their busi-
ess offices stand in awe of edu-
:ators and do not ask enough
uestions or receive sufficient an-
wers.
He added that money was not
eally the problem and that older
mployes must keep up with new
ystems and techniques.
The audit commission recom-
nended tighter supervision of
uditing, not only of the state uni-
ersities, but of all state units.

UP FROM MISSISSIPPI:
SNCC Worker Describes Fall Plans

< n

By GERALD STORCH
City Editor
A young woman who spent her
ummer working on voter registra-
ion drives in Greenwood,. Miss.,
yesterday outlined some of the fall
lans of the Student Non-Violent
Coordinating Committee for that
egregationist oasis-home of Sen.
James Eatland and B Tvrnn d lIn

Meanwhile, SNCC's voter drives
will continue.
Registration Attempt
During the summer, a few hun-
dred of the town's 10,000 or so
Negroes attempted to register. But
only three or four were success-
ful: most couldn't pass the tests
which required the registrant to

-< >

clothing and some money from the
North to Negro families, conduct-
ing political education workshops
and keeping records on intimida-
tion and harassment.
Inadequate Federal Efforts
Miss Prescod expressed strong
disappointment with the "not at
all adequiate" effor'ts of the federal