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February 11, 1960 - Image 4

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The Michigan Daily, 1960-02-11

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"We-All from Down in the Deep West, Su-"

&1e 13idiigau IkiLg
Seventieth Year
EDITED AND MANAGED BY STUDENTS OF THE UNIVERSITY OF MICHIGAN
UNDER AUTHORITY OF BOARD IN CONTROL OF STUDENT PUBLICATIONS
STUDENT PUBLICATIONS BLDG. * ANN ARBOR, MICH. * Phone NO 2-3241

"When Opinions Are Free
Truth Will Prevail"

Editorials printed in The Michigan Daily express the individual opinions of staff writers
or the editors. This must be noted in all reprints.
THURSDAY, FEBRUARY 11, 1960 NIGHT EDITOR: NAN MARKEL
Sales Tax Inerease
Would Squeeze the Poor
THE PATHETIC record of our state legisla- 4,000 dollars would pay no more than a token
ture notwithstanding, everyone now seems amount in taxes. The family with an income
to agree that the state of Michigan really between 5,000 and 10,000 dollars would pay
ought to consistently raise money to support approximately the same amount as under the
its schools and hospitals and to pay its credi- sales tax scheme.
tors. Moreover, not even the most optimistic The truly heavy taxation, under the gradu-
mathematicians really believe that the present ated income tax plan would fall upon those
50 million dollar nuisance tax package will people with incomes in the clouds. A personal
actually suffice to pay 100 million dollars in income of 400,000 dollars might be taxed as
bills. much as eight per cent by the state, which
So ultimately the State must either increase incidentally leaves well over 320,000 dollars.
the sales tax limit, pass an income tax, or wait The amount is still enough to support such a
until archaeologists uncover the Neanderthal family's basic requirements ninety-two times
man's "Treatise on Painless Taxation in a over. The biggest bonus in the income tax pro-
Nuts and Berries Economy." Judging by its past posals is reserved for the aged, the sick and
record the state may well decide to wait. But if th eunemployed, who would be completely
it should decide to fulfill its constitutional re- exempt.
sponsibility to raise revenue it will have to It is interesting to note that when the
place the burden of taxes somewhere. The only question is phrased in terms of who will bear
realistic question left is that of determining the tax burden that none of Senator Beadle's
who will pay and how much. concerns about the breadth of the tax base or
the industrial climate in the state really alter
IF SUSTENANCE for a family in Michigan the basic picture. A graduated income tax ex-
requires about 4,000 dollars per year, then it acts a considerable amount of revenue from
follows that any sizeable tax burden on a fam- families with high incomes. A sales tax on
fly aearning only 4,000 dollars per year will be essential goods, on the other hand, squeezes
a source of genuine hardship. A four per cent the poor farther into poverty.
sales tax encompassing such essentials as food
and' drugs would cost such a family 160 dollars, SEVERAL non-partisan economists have ad-
about the price of a two-month food supply. vised that a graduated income tax is not
(Better not count the months with a Christmas only the fairest path but also financially the
or Thanksgiving dinner.) soundest method for raising state revenue.
A four per cent sales tax will prove slightly Despite this advice, the income tax lags far
more costly to the family with an income of behind the four per cent sales tax both in
40,000 or 400,000 dollars since these families popularity and in chances for enactment.
doubtless purchase more goods. But it is hard The more obvious reason for this state of
to imagine an amount in excess of 1,000 going affairs is that the rich are not always char-
into the state coffers from any family, regard- itable and the poor are too weak in their
less of its wealth or the lavishness of its household arithmetic to know where their own
spending habits. A sales tax of four per cent is interests lie. The less obvious but more im-
little hardship to this fortunate group. portant reason is that people who are otherwise
There is yet another group of people whose well meaning enough too often cut their
contribution to the state treasury via a four charitable spirit short of the point of sharing
per cent sales tax route should be examined, their ideas with the state Legislature.
These are the people obliged to live on small If every person who agrees that the state
and inadequate pensions or on no income at must support its schools and hospitals without
all. These aged, sick, and unemployed will also squeezing the poor would sneeze simultaneously
contribute their pennies to the tune of around the warm gale would carry the Ebeneezer
160 dollars per year to the state treasury-if Scrooges of the Senate Taxation Committee to
they can. For some of these families this will a more charitable position. But no such storm
mean 160 dollars in unpaid bills, For many seems to be brewing.
others it will be the difference between frugal, What is in the air is a referendum on the
hard-up existence and the degradation of un- change in the state Constitution which would
disputed poverty. make a sales tax of four per cent legal. More
likely than not the people will choose to inflict
SEVERAL ALTERNATIVE proposals for a the sales tax increase upon themselves. One
graduated income tax have been smothered awaits the slogans which will be used to sweep
by the state Legislature. The proposals differ in in the sales tax increase with mixed feelings
detail but are in basic agreement as to how of bewilderment and revusion. One can be cer-
the tax burden should be distributed, tain that the slogans will make no mention of
Under a graduated income tax plan, a family squeezing the poor.
earning the minimum subsistenance salary of -MARC PILISUK
TODAY AND TOMORROW
Defeatism
f .< By WALTER LIPPMANN\

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STATE TREASURER BROWN:
Republicans Responsible
For Financial Problems
By PHILIP SHERMAN
Special to The Daily
LANSING - Judging from the size of the state treasury at various
times in the past two years, one might expect State Treasurer San-
ford A. Brown to have a "lean and hungry look."
Brown does not have one, though he would assert it is no fault of
the Republican members of the Legislature.
Brown charges them with responsibility for many of the, state's
fiscal difficulties. One of his proofs texts is taken from an October
newsletter by a New York municipal bond brokerage house. Brown's:

00
oeI

ADAM POWELL:
McCarthy Reincarnated

By JAMES SEDER
Daily Guest Writer
ADAM Clayton Powell is a curi-
ous congressman.
Powell, a Harlem Negro, has ex-
hibited somewhat bizarre behavior
in the past.
Although a Northern big-city
Democrat and a self-styled leader
of a minority group, Powell op-
poses federal aid to education.
Powell has a notoriously bad
absentee record in Congress.
His voting record, to put it mild-
ly, is inconsistent and somewhat
confusing.
He is under indictment for in-
come tax irregularities.
But recently Powell's behavior
has become more consistent: he
has adopted McCarthyism.
George Meany, president of the
American Federation of Labor and
Congress of Industrial Organiza-
tions, recently charged that Powell
had organized a "campaign to stir
up race hatred." The charge has
much merit.
ALTHOUGH it is true that min-
ority group leaders don't usually
fight to upset inter-group rela-
tions, Powell, who is certainly not
"usual," seems to be doing just
that.
First came the Hulan Jack inci-
dent. Jack, a Negro, is the Man-
hattan Borough president. He
was accused of bribe-taking.
Whether or not Jack is guilty, the
fact that he was indicted by a
grand jury seems to indicate that
the charge was at least reasonable.
Jack was a Tammany Hall poli-
tician; Powell is strongly anti-
Tammany. In the past Powell had
been a strong critic of Jack. But
Jack was accused, Powell rushed
to his defense.

As the New York Times pointe
out, Jack's race would seem t
have little relevance to the ques
tion of whether he took a brib
Powell apparently disagreed.
Then Powell took on the Nei
York police department and Polic
Commissioner Stephen Kennedy
Powell claimed that the Polic
were arresting Negro numbei
racket brokers in Harlem, bu
leaving the Italian brokers alon
this was a clear case of discrim
nation. Powell had a typical M
Carthyist answer to Kennedy
reasonable request to have th
names of any brokers so he cou
arrest them. Powell informed th
Commissioner that he didn't haN
the names yet, but he would fin
the names of some of the Italia
brokers and read them off in Coi
gress.
S * *
IN EXCELLENT McCarthyi
form, Powell rose to the floor(
the House and, under the cov
of Congressional immunity, rea
off a list of Italians who "may be
brokers.
But apparently this bit of demo
gogy was not enough, New Yor
he declared, must have a Negi
deputy police commissioner. Key
nedy replied that his officers a:
promoted on the basis of abilit
not because of their race, religio
or ethnic background.
This would seem like a reasor
able statement which a minori
group leader would gladly endors
But Powell is not a reasonab
man. Powell wants a Negro deput
commissioner. Kennedy insists the
no man will be given advantageot
consideration because of his rac
Therefore, Powell has conclude
Kennedy should be replaced.
SURELY this grotesque mim

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of McCarthy has gone far enough.
It is difficult to prevent Powell
from misusing his Congressional
Immunity, but he should not be
able to use the color of his skin as
additional immunity.
There are obvious political dan-
gers in attacking a Negro leader,
particularly for a liberal. This is,
however, no excuse for other re-
sponsible liberal leaders, not join-
ing labor-leader Meany in his
courageous attack on Powell - a
Negro McCarthy is every bit as
despicable as a white one.
INTERPRETING:
France's
By J M. ROBERTS
Associated Press News Analyst

own copy was underlined in red
pencil, and he has had copies re-
produced to circulate.
"THE WAYNE County Water
Bonds which were very short," the
letter reads, "received the usual
Michigan bids. The prices seemed
incredible if it were not that
Wayne County is in Michigan."
"It is almost 75 per cent .cold
proving that many people are
wiling to look beyond squabbling
politicians to buy bonds of thriv-
ing communities at depressed
prices.
"We are amused and perhaps
we should be sad to see the num-
ber of institutions which specify
no Micigans on their lists.
"Being on the other side of the
desk forces us to accept the prin-
ciple that the customer is always
right, but we reserve the right
(privately) to charge it to lazy
thinking."
MICHIGAN BONDS, B r o w n
said, have been "badly hurt" by
present state conditions, especial-
ly since the state must compete in
the money market with business'
and the federal government.
"The legislature thinks it has
done a great service for Michi-
gan," Brown continued..
"When men make obligations
and refuse responsibility for them,
how do you expect responsible
people to loolk favorably on obli-
gations we say we will meet? It is
financial irresponsibility by people
in responsible positions.
"The whole problem derives
from an attempt to pay recurring
debts with non-recurring revenue"
rather than with sufficient recur-
ring taxes.
* * *
ONE EXAMPLE, Brown said,
was the auctioning two years ago
of the state's $20 million whiskey
supply. Seven million was taken
from the hospital bond and re-
demption fund, more money from
the veteran's bonus funds. "And
finally the Veteran's Trust Fund
of $50 million when we could only
sell it for $40 million.
The entire situation "tends to
make financial people question the
good faith of the people in con-
trol of revenue raising," that is,
the Republicans.
* * *
"WHAT IS needed is an indi-
cation we are financially respon-
sible people and that when we owe
money we will attempt to pay.
"We just can do what we've
been doing in finance. The people
who give loans are giving other
people's money."
Shifting his aim a little, Brown
turned to Republican charges
Democratic taxes would drive
business from the state.
'If I had dragged the good
name of the state . through the
mire for two years, calling for
business relief, I would have giv-
en it." (About half of the new
state tax package falls on busi-
ness.)
* * *
BROWN also argued for an in-
come tax.
"Look at the Conlin Commit-
tee which studied tax problems
for 18 months. To a man it said
the adequate and equitable tax
the state needs should be an in-
come tax. This is my thinking on
this.
"I am +convinced before we are
over the financial hurdles, we will
have an income tax. How far
away, I don't know, but I'm posi-
tive when financial stability is at-
tained it will be with an income
tax. Only people pay taxes; busi-
nesses and corporations collect it,
but only people pay it."
, * *
WHETHER the state will "keep

current" to use Brown's phrase or
whether it will fall further in the
hole by June is a moot point.
The Republicans apparently
think the state will make it with-
out further deficit damage; and
it must be pointed out Gov. G.
Mennen Williams waited for quite
a while before acknowledging any
possible "growth factor" in this
year's revenue.
Brown probably should be taken,
at his word, though actually it
probably does not make much dif-
ference. The financial damage
has already been done. Michigan
is prosperous enough to erase an
extra few millions in debt, if
necessary.
The question of blame, however,
does not seem to be as black-and-
white as Brown seems to think.
The Republicans did push through
the use tax increase (declared un-
constitutional) which would have
added considerably to the state's
inn.v,

AT HIS PRESS conference last week the
President replied to his critics who are
saying that we are behind the Soviet Union.
At the end, in response to a question by Edward
P. Morgan, he went beyond the technical argu-
ment about the missile gap and deterrent power
to his own philosophical attitude towards the
rivalry of the two strongest world powers, the
Soviet Union and ourselves.
Mr. Eisenhower's philosophy, if I have under-
stood correctly his impromptu remarks, is that
our security is not in jeopardy and that if the
Soviet Union is moving faster than we are in
the development of certain elements of national
power, that is to be expected and must be
accepted. For, said Mr. Eisenhower, "let's re-
member that dictatorships have been very effi-
cient." If we must achieve a "greater tempo"
in our development of national power, we shall
have to "take our country and make it an
armed camp and regiment it .. ..and get people
steamed up like you did in wars."
After that explanation of why we have fallen
behind, Mr. Eisenhower delivered 'a little lec-
ture on how we should think and talk more
about the "values . . . which we do believe"-
namely "our own individual freedoms and
rights." He went on to say that "our people
ought to have greater faith in their own sys-
tem." By this he seemed to mean that the
critics who think our defenses are inadequate
and the critics who say that we are neglecting
our children and not keeping up with the needs
of our population, have less faith than he has
in our "system."
WITH ALL DUE respect, Mr. Eisenhower is
mistaken. It is he who lacks faith in our
system. It is he who is saying that we cannot
meet the Soviet challenge without changing
our system and giving up our freedom. It is he
who is telling the country that it cannot afford
to meet the needs of our rapidly growing and
increasingly urbanized population. It is he
who is saying that with a 500 billion-dollar
economy, the American nation will lose its

SANFORD A. BROWN
.. attacks Republicans

and durable enough to keep up the pace in the
great contest of national power.
Again with all due respect, he has sunk into,
he has resigned himself to, an attitude of
defeatism in which there is no faith that our
people have the will ,the energy, the resource-
fulness, and the capacity to close ranks, if they
are summoned to make a greater effort. Mr.
Eisenhower is talking like a tired old man who
has lost touch with the springs of our national
vitality,
THE DOCTRINE which the President holds,
the doctrine which determines his budget,
his program, and his preaching to the nation
is, in the perspective of the world struggle, a
most dangerous doctrine. The central issue of
the world struggle is whether the Soviet system
or a liberal system can deal best with the
problems that beset mankind. In that struggle
we shall surely lose if we tell the world that,
though we have the richest economy in all
history, our liberal system is such that we can-
not afford a sure defense and adequate provi-
sion for the civil needs of our people.
If that doctrine goes out into the world,
unchallenged and unrefuted here at home, Mr.
K. will have the ball which we will have
fumbled. We can talk to the end of time about
how we love liberty. But if the masses of man-
kind understand us to mean that we love
liberty in such a way that we cannot keep our
place in the world, they will look for guidance
and for example to Moscow and not to Wash-
ington,
Yet the President's defeatism has no objec-
tive justification. The virtues of our system of
society are not inseparably tied up with the
Revenue Act of 1954 or with a philosophy of
government which, when the President explains
it, regards the Federal government as at best
a necessary evil.
THE FEDERAL government is no doubt
wasteful, and clumsy, and inflated with bu-
reaucracy, and not wholly immune to the pay-

To Thine Own Self Be True

e" WHEN FRANCE joins the atom-
ic club, as she is expected to
a- do almost momentarily, she will
k, set off numerous political ripples.
ro From a strictly military stand-
n- point, United States military men
re would have been just as happy
y, two years ago, when France was
n considering whether to go ahead,
if she had decided to forego bomb
n- development. They wanted her to
ty provide a base but let the United
e. States and Britain handle that
le part of the defense of Europe. It
ty would have made planning easier
at not to have too many cooks
us around the stove.
e. * * *
NOW, HOWEVER, there has
developed at least some feeling at
the Pentagon, disturbed over
ic France's refusal to play host to
American atomic arms, that any-
thing which tends to offset
France's inferibrity complex may
make things easier in the long run.
Diplomatically, the principle ef-
fect of any enhancement of
France's military potential is to
give de Gaulle a closer approach
to parity not only in negotiations
with Soviet Russia, but with his
allies, a point on which he has
been extremely sensitive.
And this spring, when Khrush-
chev rattles his rockets in Paris,
de Gaulle can say, "Well, you may
notice we're coming along, too."
* * *
A SUCCESSFUL French test,
even if the weapon produced is
not a very modern one, will have
its ramifications in several fields
--the test ban negotiations at Ge-
neva; the question of atomic arms
for Germany and the resultant
East German demand on Russia
for the same thing; the new dis-
armament conference, and the
summit talks of both subjects.
Soviet Russia has a great habit
of trying to balance Western ac-
tions and developments - creat-
ing East Germany for West Ger-
many, the Warsaw Pact for
NATO, and demanding such
things as numerical parity for the
Communists in the Unite( Na-
tions and at various negotiations
tables. She will try to do the same
in this case, but it is doubtful

DAILY
OFFICIAL
BULLETIN
(Continued from Page 2)
Living, Soc, Stud./Gym, Office Ma-
chines/Office Practice; Jr HS Eng./Soc.
Stu~d., Math, Math/S., Science, Girls
PE, Ind. Arts; Elem. Spec. Training,
Elem. Speech Therapist, Elem. Intr.
Music, Elem. Vocal Mus.; Audio Visual
Consultant.
Fri., Feb. 19:
Whittier, Calif. (South Whittier
School) - Kind.-6, 7 and 8th grades,
Mentally Retarded, Blind.
Sun., Feb. 21:
viHillsborough, Calif. - Will be inter-
viewing at the' Conrad Hilton Hotel in
Chicago for Kind.-8th grades, Girls PE,
and Instr. Music. Contact him for an
appointment.
For any additional information and
appointments contact the Bureau of
Appointments. 3528 Admin. Bldg., NO
3-1511, Ext. 489.
Personnel Interviews:
organizations, companies and gov-
ernment, will be visiting our office for
the purpose of procuring graduating
seniors for employment. It is not neces-
sary to complete our packet of forms
to interview, but we will require that
you complete our College Interview
Form, so the interviewer can have ap-
plication information on his appoint-
ment. If you are interested in an ap-
pointment either call or come into the
office at 401 Admin. Bldg.
Mon., Feb. 15:
General Foods Corp., White Plains,
N.Y. Location of work: General Foods
Research Center - Tarrytown, N.Y.;'
Maxwell House Div. Lab., Hboken,
N.J.; Post Cereals Div. - Battle Creek,
Mich. Sales Offices located throughout
the U.s. Graduates: June, Aug., Feb.
Men with a degree in Liberal Arts or
Business Administration for Market-
ing Program. The trainee will begin by
selling food products to the grocery
trade under the supervision of a Terri-
tory Manager. At the end of the retail
selling experience one will have a
chance to choose between Sales Man-
agement or Product Management. Ad-
ditional information is available in
their litefature.
Kemper Insurance, Chicago,rl, Lo-
cation of work: Chicago, Il. Graduates:
June, Aug. Feb. Kemper is made up of
five companies managed by J. S. Kemp.
er - Lumbermen's Mutual Casualty Co.
(largest fire and casualty insurance co.)
American Motorists Insurance Co.,
American Manufacturers Mutual In-
surance Co., Federal Mutual Insurance
Co.,, and Fidelity Life Assoc (Mutual
Legal Reserve Co). Men with degrees in
Economics, Political Science. Sociology,
History, or Mathematics for Training
Program. They do not offer positions in
directsales. Positions available through.
the program are: Underwriting, Claim
Adjusting, Accounting, Statistics, Safe-
ty Engineering, Auditing and Special
Agents. The program consits of full-
time schooling in addition to depart-
mental training. Women with a degree
in Liberal Arts or Mathematics for Sec-
retarial Positions or Statistical work.
Tues., Feb. 16
The Procter & Gamble Co., Market
Research Dept., Cincinnati, Ohio. Lo-
cation of work: After 8 weeks of formal
training in Cincinnati, travel all over
U.S. Graduates: June, Aug. Feb. Wo-
men with a degree in Liberal Arts or,
Business Administration for Marketing
Research Program. Women should be
single 21-26 years old, driver's licens
and experience in driving, attractive
appearance and personality, interest in
work and a sense of responsibility,
emotional stability, and perfect health.
The Market Research Program employs
young women to travel throughout the
U.S. conducting consumer surveys.
They secure information about what
the consumers think of the company's
products and advertising methodsaThe
girls spend eight weeks in Cincinnati
learning about the company and pro-
cedures and then are sent into the field
not assigned to any particular part of
the country but covering the whole
country working from two to eight
weeks in each wcityWhen traveling they
receive an expense account including
train fares, hotel bills, tips, car rentals,
and food and laundry allowances.
Merrill Lynch, Pierce, Fenner &
Smith, Inc., New York, N.Y. Location
of work: Home Office - New York
City; Principal cities in U.S. Graduates:
June. Merrill Lynch is country's big-
gest brokerage company dealing in all
kinds of stocks, bonds and ommodt "
futures, and also act as investment
bankers, underwriting and distribu
ing new security issues for companies
seeking capital. 1) Men with a degree
in Liberal Arts or Business Adminis-
tration for Junior Executive Program.
2) Men with a degree in Liberal Arts
or Business Administration for Com-
modities Training Program. 3)' Men,
27-35, with some business experience
or extended military service or a com-
bination of the two, for Sales Train-
ing Program.The program cosists of
three phases: 1) On the job training in
a sales office, 2) Home office training,
3) Assigned to a sales office fo one

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