WELFARE VS.'
INITIATIVE
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Sixty-Eight Years of Editorial Freedom
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VOLJL L.&ANo~. ZZ;
ANN ARUO, MICHIGAN, THURSDAY, JULY 23, 1959
FIVE CmETS
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Jagwell Outlines
economic Plans
Conlin
Flat
Rate
Income Ta
By SUSAN HOLTZER
Daily C6-Editor
Paul D. Bagwell. 1958 Republican candidate for governor, last
it outlined two programs to the Institute for Practical Partisan
tics - one for national economic progress through "private ini-
ive exercised in competitive markets;" the other a set of nine steps
modernize Michigan."
Bagwell outlined his four GOP principles dealing with the na-
ial economy, beginning with the attitude: "As much freedom as
sible; as little intervention as necessary."'
Second,,he declared, an individual should be rewarded for extra
rt, under a system of profits and wages related to output. "Each
erican is entitled to an equal place on the starting line in the
iomic race, but where he finishes should be up to him." To give
meaning to incentives in the form
> of dollars, Bagwell declared, "a
sound dollar is essential."
Finally, he said, although the
government has a responsibility-
to regulate the economy, it should
choose methods that allow for
'maximum reliance on private
monetary and fiscal policies and
a minimum emphasis on direct
federal spending or direct con-
T trots.",
This Republican program, Bag-
well declared, "encourages release
of the strongest productive force
in human affairs, the spirit of in-
dividual enterprise." Methods
that encourage an individual's de-
pendence on governmental auth-
ority "are worse than wrong.
They are wicked."
Narrowly
Passes
in
House
Votc
DOUGLAS McKAY
. dead at 66
Former Ike
Cabinet Man
McKa Dies
SALEM,, Ore. (A-Douglas Mc-
Kay, a confident little man who
was one of President Dwight D.
Eisenhower's, original cabinet
members, died yesterday of a
heart ailment and kidney compli-
cations.
He was 66 years old:.
He entered the Cabinet as Sec-
retary of the Interior in 1953 and
resigned in 1956 in what was re-
garded as an Administrat n.
planned effort to get Wayne Morse
-one-time Republican who turned
Democrat - out of the United
States Senate.
Lost Election
However, McKay won with diffi-
culty in his own Republican Part3
primary and fell far short of beat-
ing Morse in the general election
It was the first political defeat
ever suffered by McKay in a long
series of contests climaxed by his
1948 election as Oregon governor.
McKay's appointment to the
Cabinet was regarded as due pri-
marily to his familiarity with and
interest in hydro-electric power
development and natural resource
conservation.,
Brought Attacks
His support of private 'power
and refusal to back a high federal
dam in Hells Canyon of the Snake
River brought bitter attacks from
public power advocates in the
Pacific Northwest.
His department's grant of a
mining patent in a Southern Ore-
gon forest to the Al Sarena Com-
pany of Alabama made the charge
of "giveaway" a familiar - but
disputed - one in the campaign
with Morse.
He was Salem mayor and was
elected a state Senator four times
before he ran for Governor in 1948
'nd won a short term to fill a
vacancy. Two years later he won
a full. term but resigned to enter
the President's Cabinet.
Was Chairman
At his death McKay was chair-
man of the United States section
of the U.S.-Canadian joint com-
mission Water Resource Develop-
ment, a key agency in dealing with
rivers such as the Columbia which
flow in both countries.
Survivors include his widow, two
daughters and seven grandchil-
dren.
Student, Hurt
SIn Auto Wreck
Causes Harm
This opposite approach, he
said, leads to price inflation, dis-
couragement of savings needed to
finance investment programs, un-
employment,' and other effects
that are unfair to a large number
of people.
On a state level, Bagwell called
first for a Constitutional Con-
vention to restore "legislative 're-
sponsibility to deal with financial
and other problems," and also
"complete' revision of Michigan
taxes and the development of an
integrated tax structure that:
takes into consideration the needs'
of local units of government anda
the state."
The earmarked sales tax specd-
fled in the Constitution was a1
mistake, Bagwell' declared. "We
are the only large industrial state
in the nation that puts its legis-
lature into that sort of strait-
jacket."I
The tax program Bagwell pre-
fers is a low, flat rate income tax,
"with the lowest possible rate and1
the highest possible base," found-
ed upon "equity, stability and
adequacy."<
Bagwell urged four-year terms
for executive officers, "with aE
possible limit of two terms," add-
ing also that some state jobs, by1
their very nature, "could be ac-r
complished with better service tof
the people if they were removedf
from politics."
New Aid Formula.
In the field of education,-Bag-E
well called for a better stater
school aid formula, a review ofr
the educational system itself, andI
maintenance of "the world-wide
reknown of our universities and-
colleges."
Other items on Bagwell's pro-3
gram included:P
1) Development of'$ "an econ-
omic climate which will attractI
new jobs 'for our growing popula- c
tion;"t
2) "A constructive labor rela-t
tions law" setting forth "thet
rights and duties" of unions and
guaranteeing' "control of union
affairs by union members;" d
3) Steps "to guarantee trueh
HERTER:
Russians
Hold City
As Ransom
GENEVA (R) - Secretary of
State Christian A. Herter accused
Russia 'yesterday of trying to hold
the 2'%4 million inhabitants of
West Berlin as ransom for an ul-
timate Communist takeover of all
Germany.
Herter told Soviet Foreign Min-
ister Andrei A. Gromyko the
West never will be tricked into be-
coming. an "unwitting accom-
plice".
He referred to the Soviet pro-
posal th'at the German reunifica-
tioni problem be handed over to
a committee of East and West
Germans with, an 18-month time
limit to get results.
Rejected Proposals
Gromyko himself r e jec te d
Western counter proposals for,
continuing four-power negotia-
tions on Germany. These pro-
posals, he said, sought to impose
a humiliating dictate on the Ger-
man people.
Western spokesmen said yes-
terday's plenary session of the
Big Four Foreign Ministers made
no progress whatever.
French Foreign Minister Mau-
rice Couve de Murvile said the
four powers remained as far re-
moved from agreement as they
were when the conference opened
more than seven weeks ago.
Threatened End
H{erter first threatened an early
break-off during a private meet-
ing'" of the 'four foreign ministers
Monday.
Commenting. on the Western
warning Soviet delegation spokes-
man Mikhail Kharlamov said:
"'When this conference was con-
vened, no time limit was set. If
there. is a true desire to reach
agreement, all efforts should be
made to reach them. But this
doesn not mean that we desire
to make the conference perpetual
'and endless."
Meanwhile in London, Soviet
Premier Nikita S. Khrushchev was
reported calling a top level con-,
ference of the Communist bloc
for the first week in August.
Quits Tour
The planned meeting was cited
as one of the real reasons for
Khrushchev's surprise decision to
put off his scheduled tour of Den-
mark, Norway, Sweden and Fin-
land.
The British Foreign Office said
it had received reports that the
meeting would begin Aug. 3 in
Moscow, but'could give no inde-
pendent confirmation.
The Associated Press Bureau in
[Moscow reported that the Soviet
capital was buzzing with rumors
o the same effect but, again,
here was no official confirma-
tion.
The reported meeting, coupled
with 'postponement of the Scan-
dinavian tour, whipped up specu-
lation that Khrushchev is plan-
ning a tougher approach in for-
ign policy.
Defeat Pr'edicted.
In Hostle Senate
Five Republicans Join Democrats
In Approving 11-Bill Tax Packag
LANSING (M -House Democrats, mustering their fu
strength for the first time this year, rammed a flat rate in
come tax bill through the lower chamber yesterday after re
jecting the Republican-backed use (sales) tax mieasure fo
the third time.
Climraxing days of backstage maneuvering, the incom
tax bill scraped through on a 57.50 Vote, one more than th
56 needed for passage. It moved on to the Senate where th
Republican ;majority has vowed to kill any and- all incom
tax measures that come its"
way.
Five Republicans joined Demo-
crats in passing the measure. Rep.
Rollo G. Conlin (R-Tipton),
House Taxation Committee chair- ShouPass
man and author of the ; 1-bill
package was one of them.
Republican Backers' 9 M
PoliticiansDilP
_____
By THOMAS HAYDEN
The Institute for Practical Par-
tisan Politics was just that yester-
day as state Democrats and Re-
publicans traded verbal volleys
at the Union.
After preliminary speeches by
members of the two parties, de-
bate broke into, a mixture of
anger, frustration and even laugh-
J alcksnSet
For 'U' Post,
Charles L. Jackson, director of
continuing education for the Royal
Oak schools, will become assistant
director of the University-Wayne
State University Division of Adult
Education.
Jackson will leave his post as
director of one of the largest sub-
urban education programs in De-
troit for the University-WSU posi-
tion August 17.
The Division is planning to ex-
pand its programs in cooperation
with public school adult education
directors in the future.
The new assistant director will
aid Hamilton Stillwell in his ad-
ministrative duties as Division
director and will be directly in
charge of the program's projects
in Ann Arbor and surrounding
communities.
The administrator received his
bachelor of arts degree in foreign
affairs at George Washington
University in 1949 and his mas-;
ter's degree in social science from
Indiana State Teachers College in
1950.
He is currently working on a
doctorate degree in adult educa-
tion at Michigan State University.
ter as both sides wrangled over
Michigan's tax turmoil.
Republicans lined up behind the
Senate, or better, against Gov. G.
Mennen Milliams, proposed a
penny increase in the use tax, a
reduction in business taxes, re-
jecting personal income tax plans,
labelled themselves "the party of
the individual," and accused the
Democrats of "not letting the
public decide.."
Democrats Reply
Democrats lashed out at the
"Senate reactionaries," called
themselves the party of compro-
mise, then demanded personal in-
come taxes and called the use tax
useless and a sales tax in disguise.
Finally, a female Republican,
clearly frustrated, told the 40-
member assembly:
"I'm unable to make a sound,
intelligent judgment any more."
'Same Trouble'
Wording the problem in a differ-
ent fashion, another discussion
participant said "we're having the
same trouble in this room as the
Legislature is having." He dis-
isan Views
paraged the use of "cliches and
non-factual statements."
Agreeing with him, one woman
said "it makes my blood boil when
I hear Republicans (in the Sen-
ate) called reactionaries.
° "No Republican in the Legisla-
ture can be called reactionary,"
she declared.
Heard Talks
Members of both parties had
listened earlier to short talks on
the state's future over the next
five years by Democrats William
James and Iris Becker, and Re-
publicans Edgar Orr and Bernyce
Edwards.
James said the Democrats have
slowly gained power since 1948
and will continue to do so, par-
ticularly in the State Administra-
tive offices and House of Repre-
sentatives.
Although the Democrats are
gaining strength in the Senate,
badly gerrymandered representa-
tion will help the Republicans
maintain their edge, he said.
He added "industry will con-
See PARTISAN, Page 3
l
t
WORDS, WORDS, WORDS-Panel member Bernyce Edwards assailed the Williams administration,
saying its chief was "not a full time governor." The panel, among which debate became furious, was
held yesterday as part of the Institute for Practical Partisan Politics.
Others were Reps. ,George W.
Sallade (R-Ann Arbor), Louis C.
'Cramton (R-Lapeer), Russell H.
Strange (R-Clare) and John C.
Morris (R-Midland).
Three Democrats - William
Romano of Warren, James C.
Clarkson of Southfield and Gil-
bert L. Wales of Stambaugh ---
voted against it.
Basically, the bill would levy a
two per cent tax on personal in-
come, a five per cent tax on cor-
oops
,a
LANSING (AP)-The mechani-
cal equipment .for registering
roll calls in the House broke
down yesterday midway in the
process of turning out record
copies of the historic income
tax vote.
It went completely out of
commission for the first time
this session when clerk Norman
E. Philleo had run off four or
five of the 10 copies he usually
makes on important issues.
"I guess it couldn't stand, the
strain,"- Rep. John C. Morris
(R-Midland) observed. Morris
contributed one of the 57 favor-
'able votes for the tax measure.
Sii, "LL,./ J "Twa
Se.ATSA.Pw
By The Associated Press
STEEL STRIKE - Now in its eighth day, the steel strike seems
destined to continue, at least until next week.
Negotiations, bogged down yesterday, will reopen Monday when
Federal mediation chief Joseph F. Finnegan again meets with union
and industry representatives. He sees no early or easy solution to
the strike, he repeated.
Finnegan will confer with Labor Secretary James P. Mitchell in
Washington today as unmeploynient and production losses mount.
Striking United Steel Workers in the basic steel industry and
related ones now total about 550,000 with the industry losing
300,000 tons of ingot steel production .daliy. Steelworkers' wage
losses total about $70 million a
week.
non-partisanship of the
Court.
SupremeI
McCONNELL ADVOCATES:
porations and a seven per cent
tax on banks.
Increase Revenue
The business activities tax and
other business levies would be re-
pealed or sharply reduced, leaving'
a net revenue increase of about
$142 million.
Gov. G. Mennen Williams, who
endorsed the program as a less
acceptable alternative to his pro-
posed graduated income tax, said
it would put an end to the state's
financial crisis.
"I sincerely hope ',the Senate
will give it serious and careful
consideration," he said. "It is time
that this tax question be decided
in a spirit of statesmanship and
not partisanship."
Warns of Setback
Rep. Allison Green (R-King-
ston) warned rejection of the pro-
posal might set back settlement of
the six-month tax battle another
month.
A tax compromise package he
drew up with Rep. T. John Lesin-
ski (D-Detroit' might break the
deadlock, 'he said. He was hopeful,
it couldcome'up' for a votetoday.
The pair worked Tuesday night
and part of yesterday with state'
revenue officials in an attempt to
iron 'out bugs which would triple,
business taxes paid by thousands
of Michigan firms.
Bowles Set -
To Give Talk
"The Future of the East-West
Conflict" will be discussed by the
Hon. Chester Bowles at 4:15. p.m.
today in Rackham Lecture Hall.
Paul Ds Bagwell told the Insti-
tute for Practical Partisan Politics
last night that if the State Senate
rejectsthehConlin tax plan now
pending, the Legislature should,
pass a sales tax.
The 1958 Republican candidate
for Governor said he "doubted
very much" that the Senate would
approve the bill passed yesterday
in the House.
The State Supreme Court would
probably rule the use tax uncon-
stitutional, Bagwell said. This
would force the Legislature to take
other action to solve the state's
financial crisis.
In the meantime, he asserted,
adoption of the use tax would per-
mit prompt use of more than $40
million from the Veteran's Trust
Fund.
MaySeizeU
U.S. .Ranches
By The Associated Press
HAVANA--A spokesman for the
National Agrarian Reform Insti-
tute said last night the placing of
two big American-owned cattle
ranches under government over-
seers was the first step toward
expropriation.
The two ranches are El Indio,
a subsidiary of the Francisco
Sugar Co., and Compania Gana-
dera Bee rra, partly owned by the
King' Ranch of Texas.
Government overseers-- known
as interventors--have been super-
vising the two giant. ranches in
interior Cuba for several weeks on
Fidel Castro's order.
Not 'Cooperating'
In ordering the government
overseers to -take, control of big
ranches, Castro claimed the pri-
vate owners were not cooperating
with his revolutionary program.
The spokesman for the Reform
Institute said that the El Indio
and Becerra ranches would be al-
^lowed to keep 3,300 acres under
the land distribution program.
This 'is the top holding allowed
under the new law to individual
owners with proved extensive pro-
duction.
They are to be compensated for
the additional seized by the .gov-
ernmient.
on the ,governmental scene, or-
ganized' farmer and worker sup-
port for Castro and his policies
mounted yesterday. Cuba's big
confederation of labor (CTC)
moved through a strike call to get
him back as Prime Minister'
Predicts Strike
A chairman of the textile work-
er's meeting told Castro the thou-
sands of farmers -and farm. hands
now gathering in Havana for the
July 26 celebration of the anni-
versary of his revolution move-
ment are "prepared to stay here
until you return as Prime Minis-
ter."
Castro was told also of the one-
hour work stoppage set for 10 a.x.,
Higher Education Needs Diversity
WASHINGTON - Vice-Presi-
dent Richard M. Nixon took off
for Russia last night vowing to
be "friendly and frank" during
his 11-day tour of the Soviet
Union.
By KATHLEEN MOORE
The idea of higher education for
all mpst be qualified to allow a
diversity in quality, quantity and
kind.
Prof. T. R. McConnell, chair-
man of the Center for the Study of
Higher Educatios at the University
of California, told audiences yes-
terday diversity within and among
state universities and colleges was
necessary, but this will, be attained
most fully only with reeducation of
the public's attitudes.
Advocating wide extension edu-
"top two or three percent" of col-
lege-age youth in the nation, few
of the state universities where they
were studying knew they were
there, Prof. McConnell pointed out.
Of those that did, he claimed,
most were doing little about the
"nurture of these extremely able
people."
Disregard Goals
On the other hand, the junior
colleges, whose "unique purpose"
is to provide two-year terminal
courses for students unable or un-
willing to earn a bachelor's degree,
are trying in many instances to be
"mirror images" of the larger state
institutions.
{Despite the increasing numbers
in institutions throughout the Earlier in the day, Nixon re-
country was brought out in an- ceived President Eisenhower's
other of the Center's studies. final instructions to lay it on the
Discussing entrance require- line in telling Soviet Premier
ments, Prof. McConnell said "so Nikita Khrushchev of United
great is the range of average stu- States views on isues between the
dent ability" in institutions United States and Russia.
thought to be of the same general IxNixon huddled with President
type that any "resemblance is Eisenhower and acting Secretary
superficial indeed." of State Douglas Dillon for a 45-
This diversity is not being ac- I minute briefing.
counted for in educational plan-; The Vice-President will meet
ning, he stressed, and advocated a Khrushchev and other top Krem-
study of the possibility of a better lin officials after he gets to Mos-
"pairing" students with institu- cow today.
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