Page Eight

THE MICHIGAN DAILY

Thursday, January 10, 19-74

Page EIght THE MICHIGAN DAILY Thursday, January 10, 1914


BIRTHDAY CLOUDED:


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IRS

ruling due on Nixon

taxes

WASHINGTON (Reuter) - Pre-
sident Nixon celebrated his 61st
the Internal Revenue Service
birthday yesterday amid reports
(IRS) may rule he owes at least
30,000 dollars in back taxes.
The IRS is expected to an-
nounce that Nixon underpaid his
federal income taxes by t h a t
amount by failing to declare cap-
ital gains on the sale of part of
his San Clemente estate, accord-
ing to a report by the Knight
newspaper chain.
THE REPORT came as Nixon
quietly celebrated his birthday in
San Clemente, where yesterday
he acknowledged he approved an
increase in milk price supports
to dairymen in 1971 partly to
make sure he won the farm votes
in the 1972 presidential election.

that Nixon's failure to pay the
tax was justified.

THE IRS has not decided what
position to take on another Nix-
in tax controversy - his deduc-
tion of 576,000 dollars from his
taxable income for the gift of
his vice-presidential papers to
the National Archives.
This issue, like the ITT and
milk price controversies, h a s
become inextricably linked with
the President's battle to prove
his personal integrity and to con-
vince the nation that he was not
involved in the Watergate bug-
ging scandal and its subsequent
cover-up.
With public opinion polls saying
there is widespread skepticism
about the President's Watergate
role, the IRS was believed to be
anxious to settel his tax prob-
lems promptly.
ANY PAYMENT of back taxes
by the President would be sub-
ject to six per cent interest. If
the 576,000-dollar deduction were
disallowed for, his Vice-Presi-
dential papers, Nixon would have

to repay about 234,000 dollars,
plus the interest.
While acknowledging he "tok
traditional political considera-
tions" into account in the milk
price case, Nixon maintained
in a white paper that he acted
properly.
Nixon released the white pap-
er, and another on the ITT con-
troversy, as part of his so-called
Operation Candor - an effort to
ward off pressures for his re-
signation or impeachment and
restore his damaged credibility.
HE REJECTED as "totally
without foundations" allegations
that he agreed to an out-of-court
settlement of a monopolies suit
against ITT in exchange for a
promise that ITT would defray
the costs of the 1972 Republican
national convention.

I

puty Attorney-General Richa,,d
Kleindienst not to appeal a court'
ruling in the case because the
President believed the Justice
Departmeni was going after ITT
solely because of its bigness, the
white paper said.
HE THEN rescinded the order
because he was told that Solicitor
General Erwin Griswold threat-
ened to resign if he was not per-
mitted to proceed with the ap-
peal.
The appeal in fact was drop-
ped because the case was set-
tIed before it reached the Su-
preme Court.
Meanwhile, the Senate Water-
gate Committee planed to go
ahead with its hearings on the
milk fund controversy despite
Nixon's denial of wrongdoing, a
source said.
THE SOURCE said documents
recently made available to the
committee by the white house
had revealed information prev-
iously kept secret by the presi-
dent. The source refused to give
any details of the documents.

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Spokesmen for the IRS refus-
ed to confirm or deny the Knight
newspaper report, which s a i d,
that an IRS task force believed
the President should have paid
a capital gains tax.
The report said that "no one
in the (IRS) building" believed

The ITT white paper insisted
that the only time Nixon inter-
vened in the case was in early
1971, several weeks before the
pledge of financial support was
made.
The president ordered then de-

- I---



AP Photo
Long lines
British commuters line up in railway stations, victims of a trans-
portation slowdown which has drastically reduced the number of
trains on the tracks. Conditions are expected to worsen before
they improve there.
Talks between govt.,
labor end in London,
little hope reported
LONDON (Reuter) - Top-level talks to end Britain's crippling coal
dispute collapsed in deadlock yesterday amid warnings from indus-
trial leaders of an imminent worsening in the nation's economic crisis.
Miners leader Joe Gormley emerged from a two-hour meeting with
government conciliator William Whitelaw reporting that neither nego-
tiator had much hope for further bargaining under government anti-
inflation guidelines.

THE WORD WAS "no progress"
from both sides.
And Lord Carrington, the govern-
ment's new energy chief, said in
a radio interview no government
minister could envisage a settle-
ment outside those guidelines.
This left the government and
unions stalemated on the 59th day
of an overtime ban by Britain's
270,000 miners. This, on top of the
world energy squeeze, has brought
Britain its worst industrial and
economic crisis since World War
Two.
THE "STANDSTILL" report on
the miners front came as prime
minister Edward Heath and op-
position labor leader Harold Wilson
restated rival position in an emer-
gency House of Commons debate.
Parliamentarians cut short their
holiday recess to attend.
Heath said it was stillnot too
late for reason to prevail in a
crisis which has forced most of
British industry onto a three-day
week, forced layoffs and caused
serious shortages of steel supplies.

Bullard offers
UFW support
resolution
LANSING (UPI) - A resolu-
tion supporting the United Farm
Workers and urging citizens not
to drink Gallo wines was intro-
duced yesterday in the Michigan
House.
The resolution, sponsored by
Rep. Perry Bullard, (D-Ann Ar-
bor,) urged a boycott of wines
produced from non-union grapes,
including all Gallo wines, Thun-
derbird, Carlo Rosse, Eden Rock,
Red Mountain, Boone's Farm,
Spanada and Ripple wines.
IT RECOMMENDED t h a t
Italian S w i s s Colony, Annie
Green Springs, Bali Hai, Zapple,
Sante Fe, Mission Bell and Mar-
go wines be substituted for non-
union label wines.


SHABBAT SHALOM

Join us on Friday eve.
of the semester

for the first Shabbat

Communal Habboth Dinner 6:30
Chocolate Service (trad.) 6:00
Strawberry Service (liberal) 8:00
HILLEL-1429 Hill St.

Ii
Help Wanted
The LSA Student Government will be
appointing student members to the
following College Commitees:
Administrative Board (2)
Admissions Committee (2)
Curriculum Committee (1)
Policy Committee (2)
Academic Judiciary (3)
LSA Executive, Council (1)

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