t igan
Sixty-Eight Years of Editorial Freedom
Datl.
.
.
CLOUDY, SHOWERS
ANN ARBOR, MICHIGAN, FRIDAY, AUGUST 7, 1959
FIVE CENTS
FOUR PAGES
[ 1
GOP CAUCUS:
Explodes
Possible
Tax Plat
LANSING M-'-A prospective tax
settlement was exploded yester-
day by refusal of the Senate
Republican caucus to support its
expert on tax matters.
GOP caucus repudiation of Sen.
Carlton H. Morris of Kalamazoo,
its top spokesman on taxes for
months,, caught the House by sur-
prise and angered some members.
"The Senate without question
has broken faith with the people,
broken faith with the duties of
its office," said Rep T. John
Lesinski (D-Detroit),'
Use Tax Increase
Lesinski reported to the House
in his role as chief House bar-
ference committee seeking to
gainer on an inter-chamber con-
achieve a 'final solution on taxes.
Senate and House already have
agreed to build the revenue pack-
age aroun'd a one per cent use
(sales) tax increase long rejected
by Democrats but reluctantly ac-
cepted two weeks ago.
Conferees were assigned the
job of working out a business tax
component to the overall plan
that would give Democrats some-
thing in return for their surren-
der on the use tax.
Neared Agreement
When the GOP caucus was
called, Morris and Sen. Clyde H.
Geerlings (R-Holland), Senate
Taxation Chairman, had neared
agreement with House negotiators
on a reduction in the base rate of
the business activities tax coupled
with one and one-half per cent
surtax on corporation profits.
But after 90 minutes of wrang-
ling, a majority of Republican
Senators said "no."
"The consensus was that they
did not want to have any part of
any kind of corporate or personal
income tax," Sen. Frank Beadle
of St. Clai, GOP majority leader,
told newsmen.
Hands Tied
This amounted to an instruction
that tied the hands of Morris and
Geerlings in their negotiations,
then hanging in the balance.
Late Wednesday and early yes-
terday expectations had risen that
an answer was at hand afterthe
gruelling seven months tax fight
that set legislative history for
length of time in session.
Speaker Don R. Pears (R-Bu-
ehanan) said the GOP caucus
action "came as a great surprise
to me. We had every hope this
would be resolved by tonight or
tomorrow noon."
Stalks Out
Lesinski angrily stalked out a
few minutes after the conference
committee resumed deliberations
following the Senate caucus veto.
We're all done untilthe Senate
comes to its senses," he said.
"We're farther apart than we've
n ever been."
Later, Lesinski agreed to attend
a sixth huddle of the conferees
called by Rep. Wilfred G. Bassett
(R-Jackson), committee chair-
man, for 10 p.m.
None of the conferees, either on
the Senate or on the House side,
seemed to have any idea what
could provide a basis for contin-
uing discussions but all resolved
to attend anyway.
A reporter asked Beadle if he
thought there would be a settle-
ment by Christmas.
"We might be here until the
second Wednesday in January,"
I Beadle replied.I
Ministers Leave Genev6
VIETIANE, Laos (M-The For-
eign Ministry yesterday refused to
accept re-activation of the Inter-'
national Control Commission for
Laos as demanded by the Com-
munist bloc.
Foreign Minister Khamphan:
Panya said Laos had "no intention
of yielding to outside pressure for
the return of the International
Armistice Commission."
Laos considers the Commission
an infringement on its sovereignty.
'All Calm.
The Defense Ministry said all
was calm in two northern prov-
inces where Communist rebels
opened attacks last week.
But unconfirmed reports said
insurgents are massing five bat-
talions along the border of Com-
munist North Viet Nam.
Panya said that if the situation
worsens, Laos could ask the
United Nations Security Council.
to intervene, but he did not mdi-
cate his government is considering
this step.
Stir Up Fights
Panya has charged that Com-
munist. China teamed up with
North Viet Nam to stir up the
fighting in the border area.
Communist demands for'4ecall-
ing the control commission of In-
dia, Canada and Communist Po-
land are believed here to be the
chief reasons behind the raids in
Phongsaly and Sam Neua provin-
ces-formerly controlled by the
Communist Pathet Lao.
Communists Meddle
Laos contends the. commission,.
established in 1954 to end the
Indochinese war, allows the Com-
munists through the Polish mem-
ber to meddle in its internal
affairs.
Government quarters wondered
if the small scale raids would con-
tinue or if massed attacks would
be launched to try to wrench the
two northern provinces back into
the Red orbit.
Some sources speculate that
Peiping and Hanoi began the
'troubles to hinder the training of
the 25,004-man Royal Laotian
Army by 200 United States and
French specialists.
Eldersveld
tour of the. country.
The itinerary -for the cross
country tour is still being worked
out with the Soviet Embassy.
Secretary of Defense Neil Mc-
Elroy said it would be constructive
for Khrushchev to see some
United States military bases while
he is here. He suggested this
might prevent any miscalculation
about United States military
strength.
"It would be constructive if he
could learn first hand that, the
imilitary strength opposing him is
sizable, effective and 'competent
to carry out its mission," McElroy
told a news conference.
McElroy said he was aware that
Khrushchev had said he had' no
Wish to see American bases during
his visit.
Asks Courtesy
The Defense Secretary said he
thought it was possible that
Khrushchev might want to change
his mind.
Vice-President Richard M. Nix-
on set thp tone on his return
.Wednesday from a good will trip
behind the Iron Curtain.
Nixon urged a courteous recep-
tion for Khrushchev "in the inter-
ests of the peace with justice that
we all want."
Paper Cims
U.S. Violates
Courtesy Rule
MOSCOW (OP)-The °newspaper
Soviet Culture yesterday published
a'list of what it said. were objec-
tionable books, still displayed at
the American Exhibition.
It charged this violated ele-
mentary principles of courtesy.,
In the strongest attack so far
on the American book show, the
organ of the Soviet Ministry of
Culture declared "It is impossible
not to protest against the showing
of a number of books smearing
Soviet reality and distorting for-
eign policy and the internal situa-
tion in the Soviet Union."
Almanac Cited
The article was entitled: "Ex-
hibition, No Shop for Rotten Pro-
ducts."
Books cited by Soviet Culture in-
cluded the 1959 Yearbook of the
Encyclopedia Britannica and the
1959 World Almanac.
The book exhibit has been a
center of controversy since the
United States Exhibition opened
late last month.-
Between 35 and 40 books have
been withdrawn by American of-
fliilsAnnth 7(1 w 'in mpA mi
GENEVA (M) - The Big Four'
Foreign Ministers left for home
yesterday with the West convinced
the wrangling, 10-week conference
at least won a breathing space
for the 2% million residents of
West Berlin.
Andrei A. Gromyko, the Soviet
Foreign Minister, departed with
a statement that the international
climate "is getting markedly
warmer and better."
The three Western ministers-
Selwyn Lloyd of Britain, Maurice
Couve de Murville of France and
Christian A. Herter of the United
States--left town believing the
threat to Berlin had been eased,
if not wiped out.
Pressures Off
As far as practical results are
concerned, the conference left
things just where they were when
the ministers opened their mara-
thon session last May 11.
But there seemed little doubt
that the pressures were off.
Gromyko said nothing in his
airport statement about Soviet
demands that the Western powers
get out of Berlin. For nine months
the Russians have been demand-
ing the end of the occupation
regime in Berlin.
Visits in Question
His remarks were not altogether
free of veiled threats, however.
Speaking of a need for a peaceful
settlement with Germany, and the
question of West Berlin, Gromyko
asserted:
"Those who will not promote
this assume grave responsibility
for the consequence."
The big question in the minds
of all the ministers as they left
Mney .Ills
Stall Latest
Rload .Plans
WASHINGTON ()-The House
Public Works committee voted
yesterday for a plan to continue
construction of the interstate
highway system at about the
present rate for the next 13 years.
However, it rejected the only fi-
nancing device that the House
Ways and Meas committee has
come up with, and money troubles
remained a problem.
The Ways and Means group
proposed a special billion dollar
bond issue to be retired by reve-
nue from the excise tax on new
automobiles.
Difficulty in Speedup
The difficulty springs from a
speedup voted by Congress last
year to fight the recession.
The pay-as-you-go principle
was laid aside for one year to per-
mit construction exceeding the
programmed rate.
As a result, the construction
trust fund is expected to be half
a billion dollars short next June
and 1%2 billion shy over the next
three years.
Asks Tax Raise
President Dwight D. Eisenhow-
er asked that the needed extra
money be raised by lifting the
federal gasoline tax from 3 to 4 2
cents a gallon.
The House Ways and Means
committee rejected this, and les-
ser increases also.
The Ways and Means group did
approve - and this was what the
Public Works committee rejected
yesterday - a bond financing
plan, plus a stretchout of the work
and a slowdown of the program.
town was what would emerge from
the exchange of visits between
President Dwight D. Eisenhower
and Soviet Premier Nikita S.
Khrushchev.
Significant Fact
It was the announcement of
these visits more than anything
else that allowed the conference
Eisenhower Demands
Cleanup of; Labor Field
WASHINGTON (P)-President
Dwight D. Eisenhower took to the
people last night a. demand that
Congress pass a law to drive "the
gangsters, racketeers and other
corrupt elements" out of the la-
bor-management field.
Corruption, racketeering and
abuse of power which have been
brought to light constitute a na-
tional disgrace, he declared.
In a 15-minute appeal for
"truly effective" labor legislation
prepared for nationwide radio and
television, broadcast, President
Eisenhower bid strongly for public
support of his effort to persuade
the House to pass a labor bill to
his specifications,
Prepares To Vote
"It is my earnest hope that
Congress will be fully responsive
to an overwhelming national de-
mand," he told the nation.
"As the Congress' prepares to
vote on lab6r reform," he said,
the question before the people is
whether 'they shall continue to
govern thmeselves.
"If they do not, crooks and
racketeers could prevail," he said.
A F L - C I 0 President George
Meany pleaded in a speech for
nationwide radio broadcast a few
hours later for passage of legis-
lation aimed at "getting rid of
the crooks, instead of getting rid
of the unions."
Denounces Plans
Meany denounced legislative
proposals backed by President
Eisenhower as a "blunderbuss
that would inflict grievous harm
on all unions, whether corrupt
or clean. r
At the same time he supported
Odiorne Gets
Appointment,
George S. Odiorne, assistant di-
rector for personnel administra-
tion at a national food products
company, has been named pro-
fessor of industrial relations and
director of,.the Bureau of Indus-
trial Relations in the business
administration school.
Prof. Odiorne's appointment is
effective Sept. 15, and was ap-
proved by the Regents at their
meeting last month, but was with-
held pending notification of his
employers.
a rival cleanup bill he said is
aimed "at getting rid of crooks,
rather than getting rid of unions."
Republicans ,counted on Presi-
dent Eisenhower's appeal to swing
victory their way in the labor
battle scheduled to start in the
House next Tuesday.
Democrats Hopeful
Democrats were hopeful that
the President's entry into the la-
bor fight would consolidate their.
Ike Requests
Increase
WASHINGTON (A) - The Ad-
ministration launched yesterday
its effort to get the Senate to
increase the $3,186,500,000 voted
by the House for foreign aid.
It also asked the Senate Appro-
priations committee to knock from
the House bill a section providing
for a cut-off of aid funds if the
Administration withholds from
Congress its evaluation reports on
how aid programs are going.
Run Serious Risks
James W. Riddleberger, direc-
tor of the International Coopera-
tion Administration, argued to the
Senators that "serious risks to our
national security" would be run
if Congress appropriates inade-
quate funds for foreign aid.,
He asked that the Senate add
about 400 million dollars to the
House total; bringing the amount
up to a ceiling previously athor-
ized by the Congress. -
If lack of funds leaves weak-
nesses in free world defenses, he
said, "the Soviet bloc will' certain-
ly probe and exploit."
Threat Undiminished
He added that there was no
evidence the Communist military;
threat has diminished but "con-
siderable evidence to the contrary.
during the past 12 months'"
As for the provision on 'evalua-
tion reports, Riddleberger prom-
ised that he will be guided by
"candor and cooperation" in his
dealings with Congress where'
complaints of Admin'istration.
secrecy have been growing.
"Within my powers, I shall not
withhold facts no matter how
damaging they may be," he said.
Could Open,
Sovi Let Eyes
WASHINGTON (W) - Nikita S.
Khrushchev's scheduled visit to
Iowa could be a real eye opener.
The rich agricultural areas of
the Midwest symbolize one of this
country's great strengths - and
underscore one of Russia's great
weaknesses.
Khrushchev has risen to power
largely on the weaknesses of farm
policies of his predecessors and on
his efforts to boost Soviet food
production.
In pressing for a more produc-
tive agriculture, the Russian Pre-
mier made this prediction:
"We aren't going to blow up the
capitalist world with bombs. If we
overtake the United States in per
capita production of meat, butter
and milk, we shall have hit the
pillars of the capitalist world with
the most powerful torpedoes yet
seen."
By this Khrushchev apparently
meant that Soviet leaders could
convince' the world that Com-
munism with its industrial and
agricultural accomplishment was
superior to capitalism.
He has set 1965 as a target date
for matching and possibly pass-
ing U. S. food production on a
per capita basis.
to come to an end on a note of
softness rather than bitterness'
and recrimination.
Gromyko called the Eisenhower-
Khrushchev exchange "a ,signi-
ficant fact" in the development of,
world affairs and said it was proof
of the improvement in East-West c
relations.
Herter was known to be all
for the talks. The United States
Secretary made no statement,
however, before leaving.
Moscow Radio said the Geneva
Conference adjourned "at a mo-
ment when there 'were signs of
considerable improvement in the
international atmosphere."
divided ranks behind what they
regard as a more moderate mea-
sure drafted by the House Labor
Committee.t
There are sharp divisions with-
in Congress, which to a degree cut
across party lines, on the form
which new labor legislation should
take.
Democratic leaders have made
it plain they did not intend to be
guided by President Eisenhower's
views. iem Lynidon <$. Johnson of
Texas, the majority leader, in f-
feet invited the President Wednes-
day to' keep hands off, andlet
Congress write a bill.
Supports House Bill
Speaker of the House Sam Ray-
burn (D-Tex.), has thrown his
support behind the House Labor
Committee bill, which President
Eisenhower last night called in-
effective.
The President supports a mea-
sure known as the Landrum-
Griffin bill, sponsored by Reps.
Phil M. Landrum (D-Ga.) and
Robert P. Griffin (R-Mich.).
The President said this bill,
backed by a\coalition of Republi-
cans and Southern Democrats, "is
a good start toward a real labor
reform bl, containing many of
the corrections I have urged"
TVA Able
To Finjane
New Plants
WASHINGTON () - President
Dwight D. Eisenhower yesterday
signed a bill allowing the Tennes-
see Walley Authority to finance
new power plants by issuing up to
750 million dollars in bonds in-
stead of coming to Congress for
appropriations.
But while approving this bil
with its new self-financing feature,
President. Eisenhower labeled
wholly unacceptable a section
which he contended would be "a
clear invasion" of the constitu-
tional rights of the President to
review programs of executive
agencies.
Pass New Bill
The President said he signed the
bill on the understanding Congress
would promptly enact legislation to
cut out the offending section.
This would allow TVA to draft
its own construction program .for
Congress while the President would
do little more than send the pro-.
gram to Capitol Hill.
Within a short time of President
Eisenhower's action, the Senate
passed a new bill eliminating the
section ,the President opposed.
Although it varies in some de-
tail from his proposals, President
Eisenhower said, it broadly con-
forms to his intentions,
The President specifically en-
dorsed the main provisions of the
bill, which:
1) Authorize TVA to issue up t©
three-quarters of a billion dollars
in bonds to pay for construction of
new power plants.
The agency says these plans are
a must to avert an impending
power shortage.
Limit Expansion ;
2) Limit future expansion of the
TVA power to substantially it
present boundaries in the Sputh-
east part of the nation.
3) Require TVA to repay, at
three per cent interest, one billion;
dollars of the $1.2 billion which~
Congress has voted in 25 years tc
build TVA power facilities.
The repayment period was se
at 53 years.
F 5
r -'
ord News Roundup
By The Associated Press
HONOLULU - Hurricane Dot, santing and veering. over the
mid-Pacific, bore down yesterday on the - Hawaiian island of Kauai1
after having made two threatening .moves toward Oahu and its capi-,
tal, Honolulu. Authorities said large scale evacuation may be neces-
.---:
Repair Work Continues Around. Campus
sary on Kauai, most northerly is-
land in the Hawaiian chain.
NEW YORK -. Steel wage ne-
gotiators failed yesterday to break
their stalemate on dollars and
cents issues but were reported
getting down to "brass tacks" on
non-economic questions.
* * *
WASHINGTON - The Senate,
by voice vote and with no objec-
tions, yesterday confirmed ,the
nomination of Frederick H. Muel-
ler to be Secretary of Commerce.
He thus succeeded to the post
which the Senate balked at being
filled by Lewis L. Strauss, former
head of the Atomic Energy Com-
mission.
* , * .
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