U.S. MUST WIN RACE
See Page 2
Latest Deadline in the State
CLOUDY. SHOTWEE s
VOL. LXVII, No. 29S
INADEQUAT E FUNDS:
Local Tax Base,
Must Be Spread
k, BY LEE MARKS
Daily Managing Editor
(Editor's Note: This is the third in a series of four articles on Ann Arbor's
financial situation. Today's article discusses limitations on increasing revenue.)
Ann Arbor's only'major tax is the property tax-and therein lies
the source of its difficulty.
With only one type of tax Ann Arbor is dependant on state taxes,
University payments and a host of small revenue producers to balance
A serious complication is that there is a limit to how high the
property tax can go--and that limit has been reached.
Must Diversify Base
Most authorities agree that if the city is to substantially increase
revenue it must diversify the tax base. This is easier said than done.
In order to diversify the tax base, that is levy additional taxes
ANN ARBOR, MICHIGAN, SATURDAY, AUGUST 4, 1956
WASHINGTON UP) - President
Dwight D. Eisenhower was re-
ported taking concrete steps yes-
terday to aid down-the-line GOP
supporters of his legislative pro-
gram as a part of his efforts to
"rebuild" the Republican party.
In consultation with some Sen-
ate candidates before they left
Washington for home campaigns,
the President was said to have
held out the prospect he will give
them what personal help he can
before the November election,
The candidates understand that
this help will be extended through
warm endorsements voiced by
President Eisenhower if his cam-
paign schedule takes him into
their states. If he is forced to
chose between areas he will visit
personally, some of his all-out
senatorial backers believe he will
pick their states.
Poses for Pictures
In at least one instance, Presi-
dent E1senhower has found the
time since his return to work in
the White House after his June 9
intestinal operation to pose for
campaign pictures with a Repub-
lican senator who went down the
line for his legislative program.
Most other GOP candidates who
display pictures of President Ei-
senhower and themselves will be
showing somewhat outdated pho-
President Eisenhower told a
news conference Wednesday one
reason he decided to run again
+ was a belief that the Republican
party "needed rebuilding so
Seeks 'Liberalized' Party
Those who talked to the Presi-
dent recently say he has in mind
what he has called the "liberal-
izing" of the party along the
"progressive-moderate" line he
has laid out in the past.
Associates said President Eisen-
hower has regarded it of prime
importance in this year's cam-
paign to get into Senate and
House races as many Republicans
as possible whose political philo-
sophy matches his own.
He has done this in encouraging
the Kentucky senatorial bids of
former Ambassador John Sher-
man Cooper and Thurston Mor-
ton, former State Department of-
ficial. President Eisenhower is
credited with nudging former
Secretary of Interior Douglas Mc-
Kay into the Oregon senatorial
race and with encouraging Gov,
Arthur B. Langlie to run for the
Senate in Washington.
Doesn't Take Sides
Although President Eisenhower
declined to take sides in a Wis-
consin Republican senatorial
fight, if Sen. Alexander Wiley
(R-Wis.) wins renomination he
can expect some glowing presi-
dential praise for his support in
Congress of the Eisenhower pro-
The President's campaigning,
however, will be limited by health
and other considerations. Presi-
dent Eisenhower said his physi-
cians told him at the time of his
June operation that he would not
regain his full vigor for four
other than the preperty tax, the
city must buck state law.
If it is going to raise the prop-
erty tax the city will have to
change its charter. The city
charter provides a maximum prop-
erty tax for current operations of
seven and a half mills, the rate
now levied, although a majority
vote could increase this to 10 mills
on a year-to-year basis.
City Controller Loren Jedele
. points out, "If state taxes were
withheld we'd be in serious shape.
We should have another local tax
Homne Rule Act
Basic problem lies in the word-
ing of Michigan's Home Rule Act,
which permits municipalities to
levy exise taxes but does not define
Two taxes have been considered:
an admissions tax and an income
tax. Ann Arbor voters have twice
voted against proposals. for an
admissions tax. The income tax
has been declared illegal in two
test cases by the Michigan Su-
preme Court. There is some ques-
tion whether an admissions tax
would be an exise tax within the
meaning of the law.,
Prof. Arthur Bromage of the
political science department, a
I former City Council member and
expert on municipal government,
claims, "For major revenue we
would have to levy a local income
tax on wages, salaries and net'
Income Tax Needed
Both Prof. Bromage and City
Administrator Guy Larcom indi-
cated the income tax, if passed,
would solve the financial difficul-
It might even, they said, allow
the city to reduce the property
The Michigan Municipal League,
an association of cities and vil-
lages, has tried to induce the State
Legislature to pass a bill specific-
ally authorizing local income taxes.
The Legislature during its last
session defeated the bill.
Prof. Brommage said the legis-I
lature's action could be interp-.
reted as indicating they were
against the income tax or just
against clear legal empowerment
of the tax.
With efforts of the MichiganI
Municipal League to get income
taxes authorized rebuffed and re-
fussal of Ann Arbor voters to pass
the admissions tax, the city's at-
See TAX, Page 4
'Suez Crisis Aids
U.S. Coal Exports'
HARRISBURG, Pa. ()--John
L. Lewis yesterday sized up the
Suez Canal crisis as a possible
boon to American coal exports.
On 2 Lesser Counts;
Give Sentence Today
PARRIS ISLAND, S. C. (P--S.
Sgt. Matthew C. McKeon last
night was cleared of manslaugh-
ter for marching an unruly pla-
toon of Marine recruits into Rib-
bon Creek April 8. Six of the
A seven-man military court
convicted him on two lesser
counts. They make him liable to
a maximum sentence of three
years in prison and a dishonorable
discharge. But Marine officials
said the maximum is unlikely.
McKeon was convicted of vio-
lating a general order against
drinking on duty, a felony with a
maximum two-years prison sen-
tence. He also was convicted of
negligent homicide,, a misdemean-
or with a maximum one-year sen-
Cleared of Oppressing Troops
Besides manslaughter, McKeon
was acquitted of oppressing troops
and drinking in front of a re-
cruit. McKeon admitted drinking
before launching the disciplinary
march into the creek. But he
passed a sobriety test afterwards.
Sentencing was put off until
today. Under military law, the
same tribunal that acted as the
jury also will pass sentence.
The tall, 31-year-old drill in-
structor and career Marine took
the favorable verdict standing rig-
idly at attention. His face be-
trayed no emotion.
But a moment later, he broke
into a broad grin as friends
rushed forward in the courtroom
to pump his big hand. He had
spent a part of the afternoon in
prayer at the Roman Catholic
chapel on this vast training base.
"I fe& good, honest to God,"
said the sergeant who left Wor-
cester, Mass., eight years ago to
become a Marine. He had served
in Navy combat previously during
World War II.
McKeon's wide-eyed brunette
wife, Betty, 28, who stood loyally
by him through the 18-day court-
martial, wept at the verdict, which
.the jury took six hours and 4
minutes to reach.
Wife Feels Stunned
"I just feel stunned," she
sobbed, before her nervous tears
gave way to a radiant smile.
One of those who congratulated
McKeon was Maj. Charles B. Se-
vier, who prosecuted the case for
the Marine Corps. He shook Mc-
Keon's hand and told him:
"You just keep on going like
Sevier told reporters of the most
controversial court-martial in 180
years of proud Marine history:
"I think it is a fair finding."
Defense lawyer Emile Zola Ber-
man, a noted New York trial at-
torney who represented McKeon
without fee, said:
"I am not appealing anything
if this boy is kept in the Corps."
Nevertheless, the verdict auto-
matically will be reviewed by the
office of the secretary of the Navy,
the agency that convened the
McKeon will remain at liberty,
pending sentencing, as he has
since May 23 when he was re-
leased from the base jail.
British Call Reservists
In 'Emergency' Move
PARIS (P)-French government
leaders solemnly assured the Na-
tional Assembly yesterday they
will "use every means" to defeat
Egyptian President Gamal Abdel
Nasser's Suez coup.
Premier Guy Mollet and Foreign
Minister Christian Pineau, cheered
by all but the Communist mem-
bers, said the government is seek-
ing every way for a peaceful solu-
tion but is preparing for strong
military action if this fails.
Across the English Channel, the
British g o v ern m ent likewise
worked at a double-barreled pol-
icy. It was calling up thousands
.of army reservists under a royal
proclamation of' "great emer-
gency" and setting in motion the
gears for a 24-nation cQnference
to install international control
over the Suez Canal.
Nasser May Decline
But advance indications from
Cairo were that Nasser would de-
cline his invitation to the confer-
ence, called in London for Aug. 16.
Nasser broke off a vacation in
Alexandria and returned to Cairo
last night to study the implica-
tions of the American-British-
French bid to submit his July .26
nationalization of the canal to an
international regime guaranteeing
open passage to. ships of all.
Earlier, official Egyptian sources
said the three-power plan "com-
pletely disregards the right of
Egypt to exercise sovereignty
within its boundaries."
United States Secretary of
State John Foster Dulles returned
to Washington from his London
conference with British and
French foreign ministers and ex-
pressed hope it had produced a
solution of the Suez crisis that
would avoid "the danger of vio-
The three-power communique
accused Nasser of an arbitrary
seizure of international facilities
for national purposes.
Russia, one of the signatories
of the 1888 convention guarantee-
ing the international character of
the canal, got her invitation along
with the rest.
Moscow remained officially non-
committal, but Western diplomats
were hopeful the Russians would
attend. They noted Soviet Com-
munist party boss Nikita Kruschev
in a speech this week urged a
settlement by negotiation.
India's Cabinet met to consider'
the crisis and there were strong
indicationsthe government might
propose neutral Geneva as the
conference site, instead of London.
Reliable indications were that
West Germany, Spain, Japan,
Sweden, Pakistan and New Zea-
land all would attend,
24 Nations Invited
Other nations invited, aside
from the sponsoring powers, were
Italy, Netherlands, Turkey. Aus-
tralia, . Ceylon, Denmark, Ethio-
pia, Greece, Indonesia, Iran, Nor-
way and Portugal. In a previous
dispatch the Associated Press
erred in saying Iraq was invited.
The list includes signers of the
1888 Constantinople Convention
declaring the canal an interna-
tional wtaerway, the main mari-
time nations using the canal and
other countries whose commerce
depends on it.
The Israeli ambassador to Lon-
don, Eliahu Elath, protested of-
ficially at the Foreign Office to-
night against Israel's having been
left off the list.
AnF uvflnne rfit,-nri n tin
Ambassador Visits 'U' Burmese For Solution
By ADELAIDE WILEY At Meeting
U Win, ambassador from Burma,
says he has come.to this Univer-
sity to be a kind of "step-father BM;__*___
for our thirty-four Burmese stu- Bases Nationalization
dents over here." n rievances
Indicating his co-worker Thant by
Gyi, Burmese education attache, Fanciedb Egypt
U Win added, "And he is their K
foster father." Bothdmen laughed WASHINGTON oP)- Secretary
pleasantly, enjoying the atmos- lof State John Foster Dulles last
phere in the International Center night called Egypt's sudden move
U Win is tallish, with a shock . in nationalizing the Suez Canal
'of white hair that contrasts with) . "an angry act of retaliation against
his tan skin and beige suit. In a fancied grievances."
charming accent. he remarked In a nationwide radio-television
proudly that his eldest son is in report, however, he expressed con-
Washington, "studying in summer fidence a 24-nation conference set
schol . for Aug. 16 will assure continued
Family Visits Classes "international operation" of the
His wife, daughter and other great waterway.
two sns are in Anil Arbor with Secretary Dulles spoke from the
W hte House in a report to the
him, and all will remain until"Atfs<rWehtr
atyomorw, Busiting prasses. Umerican ipeople after President
tomorrow vis, iing hasses. nnPDwight D. Eisenhower presented
Thant Gyi, who has fun withhitoheninwdauec.
his name since it is pronouncedm oaed."tonideoudee
like "gee," has a family of four praion istrbed
in Maryland. - The President said he was "vast-
Linked with the same politicalUy sdied"yE gypt's act
NuwasUWin hs eenin s the*"All of us appreciate the tre-
party former Burmese premier Cesi ptaneofer ed
United States since last November, s ta sC . Cana Phesimet Ee noe d-
says he "can't get used to winters -Daily-Hard.ngIwilliams ared. "Its continuous and effec-
yt -w Indi from"onsWonicou -CURMAAMBASSAO hR-Uin ishik," dedtsfrotive operation is vital to the
yet-e cme rom onson oun BURA ABASADO-U Wn vsit stdent frm Brma economies of our country, and in-
try, you know " on University campus. deed to the economies of countries
Preceding his American ambas- all over the world"
sadorship, he was a "member of Chinese even came into that area our airmy will attack them the President Eisenhower recalled
the government of my country, last October. same as Red Chinese. White that at the time of the national-i-
and before that, I was ambassador "Sometimes the-what we call- Chinese are under Chiang Kai zation Secretary Dulles was in
to India." White Chinese troops go there, and Shek," he added. South America. As soon as he re-
He and Thant Gyi have just--- U Win (the "U" stands for what turned to Washington President
completed a tour of Iowa Univer- N a m e Americans call "sir") also explain- Eisenhower asked him to go to
situd" ientsoar eengong Buritse h ed that Burmese troops have in- London because of his "experience
students are getting along with filtrated the invading Reds, and and wisdom" In such matters, and
their studies, how they behave, the situation is well in hand. confer with the British ind
And we discuss their problems in ontFrench.
studying with the respective deans He went on to say that are 500 "Instantly" on Dulles' return
of schools." can papers write there are 500 m"n don lleyreturn
men in the Red Chinese troops, from London yesterday, President
Asked how he spoke such fluent mnth int ved m nesecirl Eisenhower said, he asked the
English, U Win said that in Ran- F r) P st whsince this means there is one of television industry to give Secre-
goon (capital of Burma), where he them for every three or four miles tary a few minutes to explain
comes from, most natives learn to WASHINGTON (R)-- President in the whole country of Burma what he had been talking about in
speak English at an early age, so Dwight. D. Eisenhower yesterday "So you see, the danger they London.
tEn g ruliheaikomitng.ope a sssatsrengeeateeIamntwrid r olnt WiDenouncNainathezation -
that English-speaking people have chose Dr. LeRoy E. Burney, now speak of in the papers is not true. Denounced Nationalization
n~tobei cmuiaig assistant surgeon general, to be I am not worried, or I wouldn't Whednunnghentna-
"But of course, as you get farther 1 f th United here vacationing" zation of the canal, Secretary
from Rangoon, fewer people speak s e generalof eUbehDulles nevertheless stressed that
English. Probably it is necessary Buey hany international control agreed
to speak English in our capital, Burney, who succeeds Dr. Leon- upon should "also fully protect
since it is a port and the center ard A. Scheele, was given a recess o tae 41ethe legitimate interests of Egypt."
of our commerce and trade." appointment. This means the "There is every desire that Egypt
sirmction iwhubec onessrcon-
Not Concerned About Reds selection is subject to Senate con- should be treated with the utmost
About the recent posting of Red firmation when Congress recon- fairness,"hesaid."Alsotheowners
Chinese troops in Burma, U Win venes next January. B y and employes of the now-dispos-
commented that he is "not seri Scheele resigned to become pres- sessed canal company should be
ously concerned, ident of Warner-Chilcott Labora- NICOSIA, Cyprus (P)-The re- fairly treated."
"The area those troops are occu- Bre, 5, has ha n k of bel Cypriot underground said yes- The secretary, speaking after
pying is undemarcated and sparse- assistant surgeon general since his terday it intends to execute a cap- returning from emergency talks
ly populated. You see, the Red appointment in 1954 as deputy tured Brtiish civil servant if in London, made it clear he has
director of the Bureau of State three Greek Cypriots under the not promised to join Britain and
Services in the United States Pub- death sentence are not reprieved France in any military action
Al OSelic Health Service, by noon today. should Egypt refuse to accept any
From 1945 to 1954 he was Indi- The ultimatum was contained in international supervision of the
ana's health commissioner and a pamphlet circulated in Nicosia canal.
also served as professor of public by EOKA, the Greek Cypriot un- Certainly, we have given no
health at the University of Indi- derground. It identified the ho said, "as to what the United States
ana's School of Medicine, tage as John A. Cremer, now re- will o in that unhappy ontin-
He was born in 1906 at Burney, tired, who has been missing sincegency."
oInd. He holds bachelor of science Wednesday, Secretary Dulles noted that
and medical degrees from the Uni- Cremer, aged about 75, did not "some people"-whom he did not
PARIS (AI-The Council of the versity of Indiana and a masters return to his Kyrenia home from identify-have "counseled Immed-
North Atlantic Treaty Organiza- degree in public health from Johns his customary afternoon stroll late forcible action" by govern-
tion formally appealed to Iceland Hopkins University. . that day, ments most directly affected by
yesterday to allow the United Premier Gamal Abdel Nasser's
States to continue to operate Am- END STRIKE: move in nationalizing the water-
erican military installations there. way.
None of the 14 other govern- Presumably, Secretary Dulles
netee l Reub i Co had in mind some British and
ments in NATO feels any change J s-a , 1p 19C C * Frenchd critics of m Nasser. Both
is warranted, the Council said. Bri Fre"n drnc o vser.mBnth
The Icelanders propose that British and French government5
American forces - variously es- ou shave mobilized some of their army,
be itdra n anis laeoochn- - G ro p S ignC ontracts navy and air force to prepare for
te itedfromw4,000tos8,000ten- Eaydevelopment In Athe tense
cians take over operation of the NEW YORK ()-United States Steel and Republic Steel, first Middle East.
United States air base and radar and third-ranking steel producers in the land, last night signed strike- Force Against UN
-nstallations guarding that se- ending contracts with the United Steelworkers. In explaining why the idea of
tinofte othAlatc.T endngimmediate military retaliation
tion of the North Atlantic, They Ready to follow suit was Jones and Laughlin, the No. 4 company. against Egypt was rejected, he
of their own. Big Bethlehem Steel, which was believed Thursday to be the clo- said:
The Council said, "Under pres- est to signing, was still in negotiations at a late hour. is . . . wou
ent circumstances the withdrawal Last night's signings to all intents and purposes marked the end trary to the principles of the
of United States forces now in of the 34-day-old, 650,000 man steel shutdown. United Nations charter and would
Icasn honehaulf ofa the Alliance Others Ready To Sign spread violence, endangering the
as a whole, would leave the coun- 'paeo h ol.
try completely undefended." Behind the industry's leaders were more than 30 other firms, peace of the world.
"A major deterrent to aggres- large and small, ready to follow suit. Apparently they will sign their agreed pon he said il proide
sion in the North Atlantic area union contracts today. "moral forces which are bound to
would no longer exist and a gap Three smaller companies had signed before last night. prevail" in convincing Egypt to
would be opened in the chain of United States Steel has 186,000 employes; Republic, 46,000; Jones j accept some international control,
defense which maintains our se- and Laughlin 28,000, and Bethlehem, 89,000. "It is one thing to defy one or
curity," it said. John A. Stephens, industrial relations vice president for United two nations," he said. "It is an-
The Council was considering States Steel, signed for his company. David J. McDonald, United Steel- other thing to defy the considered,
TnI rl f n , a, StatesoStel, signed forhi.company..j4__ _ -__.
Stassen Admits Fight
To Nominate Herter
WASHINGTON (P) - Harold E. Stassen acknowledged yester-
day he faces an uphill struggle in his effort to win the Republican
vice-presidential nomination for Gov. Christian A. Herter of Mas-
Stassen told a news conference the odds "have improved" but
are still against him.
Will 'Stand Steady'
He said his job now is to stand steady while the American
people and the convention delegates give thought to their choice of
a vice presidential nominee.
Herter said in Boston Thursday night he is not a candidate
and that if his name is placed in nomination at the San Francisco
convention opening Aug. 20 it will be without his consent. He
agreed that he could not prevent any delegate from entering his
Commenting on this Friday. Stassen said Herter "has taken
exactly the right attitude to unite the party if it turns to him a