By MARK DILLEN
Daily News Analysis
Although it will certainly come 'as a
shock to many taxpayers, Ann Arbor ap-
pears headed for its first personal city
income tax this fall.
There is simply no other way to pro-
A vide for Ann Arbor's needs, city officials
say, and as of now there appears very lit-
tle that could happen to change that as-
sessment. As a result, taxpayers can soon
expect a wide-based campaign aimed at
gaining converts to the campaign for more
However, if the plans of city Democrats
hold until November, there will also be a
referendum that will give residents some
voice in the amount of the increase. That
is because a city charter provision must be
amended to follow a simultaneous property
and income tax.
Currently. Ann Arbor has a property tax
rate of 7.5 mills that provides about one-
third of the city's $13 million operating
budget. In order to add a one per cent
income tax to raise about $5 million Ann
Arbor's city charter must be amended
a move which requires a referendum.
Thus, because the city is. limited to a
one per cent income tax assessment by
state law, and since a one per cent income
tax would improve the city's financial con-
dition by only about $600,000, some sort of
"combination" tax package will most
likely be pushed by Mayor Robert Harris'
According to City Auditor Kenneth
Sheehan, opposition to an income tax on
political grounds has all but dissolved as
the general economic situation of the city
has worsened. For the year beginning
July 1, although a record level budget of
$13 million was approved, increases in de-
partmental appropriations did not offset
that of inflation in city costs-estimated
between-five and seven per cent over the
Thus, few city agencies received their
full request from the city and several
programs all but died on the budgetary
"There's no doubt but that an income
tax is absolutely necessary." says Ann
See CITY, Page 10
Page three ale S it!3an
Partly cloudy and warmer,
chance of showers
Friday, June 11, 1971 ANN ARBOR, MICHIGAN News Phone: 764-0552
ixon lifts ban- on
trade with China
Reminder for litterbugs
Members of the Willing Workers 4-H Club in Walsh, Illinois, erected
this figure from empty pop and beer cans they picked up from local
highways as part of a clean-up program.
.Daily business head says
pressure idan't end ads
By ROSE SUE BERSTEIN
Daily Business Manager James Storey yesterday denied that The
Daily's decision to stop accepting abortion referral advertising was
related to a letter from a state legislator requesting that action.
Rep, Dominick Jacobetti (D-Negaunee), vice-chairman of the
House Appropriations committee; wrote last March to the president
of every college and university in Michigan, requesting that they
"advise the advertising departments of (their) campus newspapers
that advertising for abortion referral services is illegal in Michigan."
Upon hearing of the letter from Jacobetti, the Ankrican Civil
Liberties Union of Michigan (ACLU) criticized the -action, charging
that they perceived nothing illegal in abortion advertising, from their
interpretation of the Michigan statute which allegedly forbids it,
In addition, the ACLU urged campus publications "to resist this
attempt to interfere with the internal affairs of public institutions." '.
In a letter sent to The Daily and other state campus publications
ACLU accused Jacobetti of suggesting that "as a condition for con-
tinued- approval of public support and appropriations that presidents
of state supported institutions of higher learning should exercise
illegal censorship over publications related to their institutions."
The Daily had announced last month that it had decided to pro-
hibit abortion advertising, because of a state law against such ad-
Storey explained at that time that The -Daily had been unaware
of the law's existence. and that the action did not constitute a change
in advertising policy. ". . . anyone who wishes," Storey said, "may
advertise in The Michigan Daily provided they pay their bills and
don't violate the law,"
Storey reiterated yesterday that the decision on abortion advertis-
See ADS, Page 10
dent Nixon ended the 21-
year freeze on U.S. - China
tr a d e yesterday by lifting
the ban on imports from the
People's Republic of China'
and issuing a broad list of
non s t r a t e g i c U.S. goods
which may be sold there.
At the same time Nixon drop-
ped a requirement tinposed by
former President John F. Ken-
nedy in 1963 that at least 50 per
cent of U.S. grain exports to
Russia, Communist East Europe
and the Chinese mainland be
carried in American ships.
Administration officials voiced
hope this eventually would help
U.S. exporters get some of an
estimated $200 million to $300
million a year in wheat ship-
ments that the Soviets buy else-
where. The 50-50 requirement
has put U.S. grain at a competi-
tive disadvantage in such sales
because American shipping costs
Ambassador Winthrop Brown.
who headed an administration
task force that drew up the
China trade list, declined to
predict just what practical ef-
fects the new U.S. action will
have in getting trade with
China under way.
US.-Chinese trade was run-
ning some $200 million a year
in 1950 when Washington im-
posed an embargo as a result of
China's entry into the Korean
war. The Communist mainland
now imports about $2 billion
annually, including $1.5 billion
from non-Communist countries.
and exports about the same
amount, officials said.
The White House listed these
main groupings of U.S. goods
which may be sold to the People's
Republic of China without a spe-
-Most farm, fish and forestry
products, tobacco and fertilizers.
-Coal, s e l e c t ei chemicals.
rubber, textiles and certain
-Agricultural, industrial, and
-Electrical apparatus in gen-
eral industrial or commercial
use, certain electronic and coma-
munications equipment, certain
automotive equipment and con-
Firhss wishing to sell the Chi-
nese items not on this list may
apply for a specific export li-
cense at the Commerce Depart-
ment, and the applications will
be reviewed on a case-by-cage
basis, Brown told reporters at
the White House.
Oil exploration area
The region shaded on the map is the area which the South Vietna-
mese government yesterday opened for exploration and exploitation
by foreign oil companies.
Black youths clash with
police i People' s Plaa
Fighting between a gloup of
young blacks and police erupted
on the People's Plaza between
the Union and the Administration
Bldg. yesterday afternoon when
two city patrolmen, investigating
an assault report, attempted to
arrest two black youngsters.
As police led the two blacks to-
wards their patrol car, parked
outside the Union, another black
youngster - a girl -- jumped
the police, kicking them and
knocking one of their helmets to
As police struggled to subdue
the two they had arrested, the
girl persistently kicked and hit
the police, shouting, "let' them
go," and "racist."
While a small crowd gathered,
the two policemen struggled with-
out assistance. One policeman
lost his glasses, and the other's
face was cut.
After a five minute struggle,
officers locked their prisoners in
the back of the patr-il car and
drove them to the station, where,
after questioning, the twa young-
sters were released.
According to two white girls-
who accompanied the police to
the station-they were assaulted
by a group of black children
outside a "record store."
Thegirl was was allegedly as-
saulted was in a distressed con-
dition, and could not give the lo-
catirn of the assault or th-' nt-
tnre of the offense.
When asked if the two young-
,sters with whom the police were
fighting were the two who had
assaulted her, she said "I don't