Wednesday, October 2, 1974

THE MICHIGAN DAILY

Page Seven

Wednesday, October 2, 1974 THE MICHIGAN DAILY


Daily Photo by KAREN KASMAUSKI
Heavy music
Two winners of WCBN's "Guess How Much Chicago Weighs" contest, Gerald Nanninga and
Jerry VanHellemont (front), display their pri zes, complete sets of Chicago albums plus
other records. Not pictured: grand prize winn er Andy Yakushev. Incidentally, the correct
answer is 1208 pounds.
Cellar fights state tax ruin

'U' may
be sued
for student
film debts
(font inued from Page 1)
cluding the resignation of all
University executive officers,
was met.
Karhi termed the Newsreel
statement "just another one of
their diversionarv tactics," add-
ing: "They've lied continuous-
ly - they represent themselves
as revolutionaries when they're
really the lowest form of capi-
talists."
The exact amount of News-
reel's unpaid financial obliga-
tions outstanding is not known,
but sources estimate it at about
$20,000. In addition, Newsreel
owes the University over $1,000
in unpaid auditorium rental
fees.
THE ORGANIZATION tech-
nically became defunct Monday
when its recognition as a stu-
dent group expired. Student Or-
g'nizations Board member El-
liot Chikofskv claimed yesterday
that Newsreel had been given
several opportunities to file for
re - recognition -- as all stu-
dent associations must each
September - but had neglected
to do so.
Since Newsreel is thus no
longer a student organization,
Chikofskv explained, it has lost
the right to rent University lec-
ture halls for film showings.
The board voted to transfer
the first dates freed by termi-
nating Newsreel's space reser-
vations, October 11 and 12, to
the Ann Arbor Film Co-op and
the New World film group.
TODAY
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(Continued from Page 1) THE CELLAR state prope:-tx
because the commission vio- tax issue first arose in 1971,
lated due process when it failed when the city tax assessor's of-
to issue a "partial finding" out- fice tried to collect personal
lining its decision on tax exemp- property taxes frnvn fixe auxil-
tion, iary corporations of the Univer-
According to Clevenger, state sity, including the Cellar.
law requires such partial find- All initially contested the es-
ings on all matters before the sessment, challenging it beftre
commission. the city tax review board. The
board reaffirmed the groups'
THE CELLAR anticipated the t a x exemption. Eventually,
subpoena for Isaac, which Cle- though, the city brought the
venger says he intended to chal. matters before the State Tax
lenge in the courts. He said he Commission.
feels a District Court judge The Cellar and the University
would have quashed the sub- Club lost their exemptions be-
poena and forced the tax com- fore the state board. According
miss'on to submit a partial to a University legal source,
finding the U Club's case failed be-
However Clevenger adds, cause state-owned organizations
Isaac was out of town when the cannot legally hold liquor li-
subpoena was issued, and the censes, as the club does.
state officer charged with de- The tax commission declared
livering it refused to release the Lawyers Club, the athletic
the subpoena to Clevenger. board, and the Union exempt
Clevenger claims the tax board without hearings. However, the
also acted improperly in taxing state supreme court granted
the store's 1971-72 inventories the city a right to appeal on
desitea sateprpery tx lwthese three matters. The court;
despitatte apropertytaxan will begin looking at the hear-
The s-tatute bars taxation of inns issue next week.
propery--or merchandise-sold

reascon for the decision at he
time, University Counsel Daane
comments, "I think it's consis-
tent with the Regents' philoso-'
phy . . . that it (the Cellar) be
self-sustaining."
The other four auxiliary cor-
porations have traditionally re-
tained University counsel.
One tax law expert sees the
University strategy as a pro-
tective measure. Of the four, he
explains, the Cellar's authority
channels are furthest removed
from the Regents. According to
this theory, the Regents decided
not to risk their strongest ex-
emption case by lumping diem
together with their weakest case
in court.
Daane has no comment on
this interpretation of the Uni-
versity's courtroom strategy.

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over the counter during the
period in question, according to
Clevenger's interpretation of the
law.
T a x commission Secretary
Edward Kane said neither he
nor the commissioners will com-
ment on their ruling or the
Cellar's appeal case until later
this week after they have re-

The Cellar had hoped the ini-
versity would join all five ex-
emption claims in one legal
procedure. However, last Aug-
ust, President Robben Fleming
informed attorney Clevenger
that the Cellar would have to
fend for itself in court, with no
University a i.d in offsetting
court costs.

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Paul Hemphill on country music, Robert Palmer on iazz,
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viewed the matter. Although Fleming gave no
The Nickel Beer
is Back!
with lhinch at
Village Bell
Monday-Friday
11:00 a.m.-3:00 p.m.
-- 74-P
UNIVERSITY OF MICHIGAN
PROFESSIONAL
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OCTOBER 17 IHROUGH 20
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OCTOBER 24 THROUGH 27


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