Legislature
Votes Corp
Accepts
Fund
Use;
Tax,
Nobel Laureate Camv
Dies in Highway Cras
orate, Nuisance
40
a
Bills Signed
Hesitatingly
ByWilliams
Trust Fund Bonds
Quickly Liquidated
By PHILIP SHERMAN
The state treasury got an $87
million Christmas present last
year.
Forty million dollars came from
liquidation of the Veterans' Trust
Fund and $47 million from added
"nuisance" taxes and a boost in
the corporate franchise fee.
The House approved the bills
authorizing the new revenue Dec.
19, the day after the Senate took
action; the legislature then ad-
journed.
GGov. G Mennen Williams signed
the bills Dec. 22 but commented,
"I am not signing them because I
GOY. G. MENNEN WILLIAMS
signs, protesting
approve of this tax program." He
called the package "miserable, in-
adequate and unfair."
Fund Now Liquidated
The Veteran's Trust Fund has
by now been almost entirely liqui-.
dated.t
State Treasurer Sanford A.
Brown announced last Tuesday the
sale of almost $40 million of the
Trust Fund's U. S. Government
bonds. The late maturity bonds--
low interest bearers-brought in
just over $30 million in cash.
Brown added the rest of the
Fund's bonds were easily con-
vertible into cash, at no loss In
face value.
At the top of the lists for pay-
ments on state debts are school
districts, the state universities and
municipalities.
However local governments and
publieTrement systems will con-
tinue t~o hold the bag as state
creditors; these are owed about
$50 million.
The nuisance levies will either
raise revenues or put new imposts
on liquor, tobacco, ber and tele-
phone and telegraph bills, will
continue until Juie 30, 1961. The
$34 million package went into ef-
fect Jan. 1.
SAtIncrease Franchise Fee
A one-mill increase will also be
made on the corporation franchise
fee, retroactive to July 1 or an
annual increase of $13 million In
state revenues.
The total package Is less than
Shalf of the $100 million Williams
claims the state needs.
A complicating factor was
thrown into, the situation Dec. 19
in a special report to the Senate
S aon business taxation.
Prof. Dwight B. Yntema of the
Hope College economics depart-
ment authored the report which
showed Michigan businesses pay
twice as much taxes as businesses
in seven other comparable states.
SALLADE COMMENTS:
Rockefeller Talks to Nixon
Businessmen
By JEAN HARTWIG
New York's Gov. Nelson A.
Rockefeller admitted yesterday
that he had spoken to Vice-Presi-
dent Richard M. Nixon since his
withdrawal from the Republican
Presidential nomination race Dec.
26.
But he would not say whether he
had promised to support Nixon,
although there is no other serious
rival for the nomination.
Rockefeller also told a press
conference he had spoken by tele-
phone to President Dwight D.
Eisenhower since his .announce-
ment, but refused to comment
about details of the conversation.
He also said he had personally
informed the president of his deci-
sion after giving the withdrawal
statement to reporters.
No Eisenhower Role
He explained that Eisenhower
had no role in his decision and the
former governor, Thomas E.
Dewey, was not consulted.
Rockefeller also said he would
lead his state's 96-vote delegation
to the Republican National Con-
vention in Chicago next July.
George Sallade (R-Ann Arbor),
phairman of the recently dis-
banded Citizensr for Rockefeller
Committee, told The Daily he was
disappointed, but not surprised
that Rockefeller withdrew from
the presidential race.
Although he expected Rocke-
feller to decide not to seek the
nomination because of his conver-
sations with various Republican
leaders in the country, he expected
him to make the announcement
after the first of the year, instead
of Dec. 26.
"I really did expect that he
would try the New Hampshire pri-
mary," he explained.
Not Pressure Result,
Sallade explained that he did
not think Rockefeller's Dec. 26 de-
cision was the result of pressure
by Eisenhower. But from his con-
versations with various Republi-
can leaders, Nixon had such strong
support that Rockefeller's chances
for getting the nomination were
somewhat shaky.
"I was disappointed in the deci-
sion, of course," Sallade contin-
ued. "A good scrap would have
been a very good thing for the
Republican party.
Asked about Rockefeller's chances
NELSON ROCKEFELLER
.. . withdraws from race
for nomination and election in
1964, Sallade said he would have
to work for his re-election as gov-
ernor of New York in 1962 before
trying for the national contest.
Republican Prospects Good
The outcome of this fall's elec-
tions will also be a great determ-
ining factor, he noted, but since
the President's good will tour and
Nixon's recent success in settling1
the steel dispute, prospects are
encouraging for the Republicans,
He picked Nixon and Secretary
of Labor James P. Mitchell as the
probable Republican ticket for this
fall's elections. He advised the
selection of Mitchell as "a good
gesture" on the part of the Re-
publicans because of the steel1
strike and his close associationl
with organized labor.9
With Nixon as the "overwhelm-
ing Republican choice" for the1
candidacy, Sallade predicted that
the Republicans will capture the1
presidency.1
GEORGE SALLADE
.. comments on Rockefeller
"But it is mathematically im-
possible for them to take Congress,
he said, considering the division of
senators.
1e also predicted that Adlai
Stevenson will be the Democratic
presidential candidate.
Sallade also hopes "we have
some real scraps on every level in
the state." He foresees a good
future for the Michigan Republi-
cans "if we can put together a
youthful and aggressive ticket."
Asked if he had any information
on Governor G. Mennen Williams'
possible decision to run for a
seventh term, he noted that he did
not have any more information
than has already been publicized,
but he may very well be forced
into running.
"If he does, there will be a
tramendous battle between Wil-
liams and whoever we may run,
but, naturally, I have to predict
that we would win."
Feel Pinch
Of Taxation
State nuisance taxes on liquor,
beer, cigarettes, cigars and tele-
phone calls have .affected Ann
Arbor.
One local bar manager predicts
that the added taxes, which went
into effect at the beginning of
this month, will greatly encourage
bootlegging.
"Right now we're tenth in the
manufacture of bootleg liquor in
the country," he said. But the new
increase in the tax on liquor will
probably bring us to first place."
He also predicted that the added
expense would encourage people to
o to Ohio or Indiana to buy
whiskey and cigarettes and sell
them in Michigan for a profit.
Stores Consume Expense
Although the new tax on beer is
$1,25 per barrel above the previous
cost, and cigarettes are one cent
more per package, his establish-
ment is consuming the added ex-
pense.
But he foresees a trend towards
passing the increase onto the cus-
tomer, since "we could consume
ourselves right out of business."
Quoting the instructions on the
telephone booth wall, the Union
operator explained that "all long
distance calls to places within
Michigan will be subject to a three
per cent state sales tax in addition
to the terr per cent federal tax.
All cigarettesrand cigars have
also had a 20 per cent increase in
price, although the Union has kept
the "filter kings" at 30G per pack,
just to keep things "even steven."
Pass Taxes On
An employee of a wholesale beer
establishment told The Daily that
he was passing the added taxes
onto the customers, since "we
can't afford to stand them our-
selves."
He criticized the new law as
"hurting themselves," but added
that he doesn't think it will stop
people who like to drink.
"After all, they have always
managed to get the money before,"
he explained.
SENS, France IP) - Albert Ca-
mus, Nobel Prize-winning author,
was killed today in a highway
crash, cutting short the brilliant
career of one of France's most
active men of letters. He was 46.
A Nobel Laureate in 1957 at the
age of 43, Camus was one of the
youngest ever to win the litera-
ture award. A brooding spokesman
for man's moral values in an age
of confusion, he was distinguished
U.S. industry
Set To Regain
,Steel Imports
NEW YORK (R) - Will the
United States steel industry re-
gain the customers it lost to for-
eign producers because of the
strike-induced shortage?
That was a major question faced
today by the industry as the dis-
pute was settled.
With a trend toward using for-
eign steel already under way for
economy reasons, import spurted
during the long strike.
"What the continuing effect
will be, we don't know," an in-
dustry source said. "We will just
have to wait and see how many
of our customers come back to'
us. Certainly, we think the ma-
jority will."
This source pointed out that
demand for foreign steel is grow-'
ing rapidly abroad, and foreign
producers are not geared for'
heavy United States demand such
as in the construction and auto-
mobile industries.
American steel producers say
they expect some specialty com-
panies to stay with their foreign
suppliers.
An example of the use of for-
eign steel to fill the gap left by
the strike was in the construc-
tion of a New Yorkhskyscraper.
Belgian plates were imported and
fabricated into structural shapes
here at less than the cost of United
States steel.
The wage factor is the primary
reason for the lower cost of for-
eign steel. United States wages
run about three times as high as
those in Europe and seven times
as high as in Japan.
Steel imports in 1958 totaled
1,702,819 tons. They started rising
early in 1959 as users began build-
ing up stockpiles in anticipation
of a strike.
as a novelist, journalist and man
of the theater.
The Nobel Prize committee
honored him for "clear-sighted
earnestness (which) illuminates
the problems of the human con-
science of our times."
Camus said then: "perhaps this
is the time to write the book of
my experience while I still have
the vital force to do it."
Camus was traveling to his
country home in the south of
France. Michel Gallimard of the
French publishing family was
driving and Camus sat in the
front. Gallimard's wife and
daughter sat in the back.
The custom sports sedan left
a straight stretch of the road and
slammed into a tree near Mon-.
tereau. Police said the car ap-
parently had a blowout.
The Gallimards, seriously hurt,
were taken to a hospital at Mon-
tereau. Camus' body was laid out
in the town hall of the nearby
village of Villeneuve-la-Guyard,
about 100 miles southeast of Paris,
Broadcasts Eulogy
The news hit the Paris thea-
trical and literary world with
tragic suddenness. Personnel of
the French National Radio inter-
rupted a week - long strike to
broadcast a eulogy.
An intense man with burning
eyes, Camus led a strenuous life.
Besides his 'writing, he was active
in the theater, in political jour-
nalism and even in sports. He
once was a top succer player. In
World War II he edited the un-
derground newspaper "Combat."
Last year the French Govern-
ment named him director of a
State-supported theater to p
duce forgotten plays.
Camus' work was popular in
United States, especially
novels.
"The Fall," a selection
monologues by a narrator wh
consumed by guilt of an act
irresponsibility and revealed to
morally empty;
"The Stranger," a critique
the uncommitted personali
traced the drama of an ordin
man in Algiers, leading an
dinary life; suddenly, life cau
up with the man, and he reali
he is a stranger to himself. B
were best sellers.
He also wrote two other nov
eight books of essays and fc
plays.
Poverty and Hardship
Born in Algeria, Camus ne
knew his father, who was kil
in World War I. His childhood w
a time of poverty and hardsh
He won a bout with tuberculo
. after working his way throi
school in Algiers as a salesm
civil servant and clerk. He was
Communist briefly in his you
but left the party and wrote lat
"Every revolutionary ends as
oppressor or a heretic . . . rev
and revolution both wind up
the crossroads - the police
folly."
He appealed for a life dominat
by the calm reason of the anci
Greeks, balanced between i
physical and moral "hangmen"
the extreme left and right.
Married in 1940, he lived in
apartment on Paris' left ba
with his wife and twin son a
daughter.
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