LA GRANDE OBSERVER " " Observer, La Grande, Ore., Thuri., Nov. 5, 1959 Pag 9 Michigan Hit By New Financial Ills As Unpaid Bills Piling Up LANSING, Mich. a'PI '-Michigan has reached a rcw peak of financial peril. There is talk of closing univer sities, bringing state pol ce in off the road, cutting welfare pay ments, laying off thousands of state employes and more "pay less paydays" for others. The state has unpaid bills piled up of about 72 million dollars. It has just collected aid spent 14 million dollars from its citizenr from a tax new declared illegal aid faces the near impossible task of trying to rebate all the pennies collected on purchases of , cl thing, groceries and other small items. Its Legislature is going into the 11th straight month of wrangling while, as o-e newspaper said last week, proposals for new taxes waft around the chamber like ex otic perfume. It seems and it is ridicu lous that bankruptcy threatens Michigan. This is one of the wealthiest and fastest growing states in the nation. It has the huge automotive industry, magnif icent forests and mineral deposits, a big agricultural industry. Why, then is Michigan broke? No'Quarttr Struggle The answer boils down to a no quarter struggle between the Re publican controlled Legislature with the support of industry and Democratic Gov. G. Mennen Wil liams, a millionaire with the backing of the United Automobile Workers Union. Williams has been governor for six consecutive two-year terms and the Republicans have ruled the Legislature those 12 years. In all that time, they have never reached a satisfactory, long-range tax program, although state ' ex penses mounted rapidly. To understand Michigan's prob lem, cert an facts must be stated. The state is constitutionally pro hibited from borrowing more lha:i S2S0.000 although even its towns can float bonds and go into debt by 2 million dollars or more. Thus, while other states can and do borrow to meet current needs, Michigan cannot. Much of its revenue is car marked to more than 40 special funds which cannot be used for general state expenses. It has no state income tax. Its main reve nue comes from a 3 per cent saUa tux . But -iir-1948 legislation was passed that out of every six cents collected on the sales tax, 4 cents had to gi to the schools and one cent to local governments. That left only 1-6 for the state. Will Soviets Scrap Their Warsaw Pact? By PHIL NEWSOM UPI Staff Writer From the foreign editor's note book: new Soviet overtures? West German intelligence offi cials will not be surprised if the Russians offer to scrap their War saw Pact agreement as part ol their world disarmament cam paign. The Warsaw Pact is the Commun'st bloc European coun terpart of NATO. The German! say Soviet military experts havt told Premier Nikita Khrushchev that the move would have excel lent propaganda value and at th same time would not be harmfu to Soviet military strategy. CAMPAIGN AGAINST SIN: Police are conducting an all-ou' campaign against vice in Frank furt, known as West Germany's most sinful city. Targets are the railroad station where unregis tered prostitutes loiter, all nigh bars aid cabarets which flaunt "lewd" advertisements of strip tease shows. CLOAK-AND-DAGGER: ' President Charles dc Gaulle himself is said to be pressing the investigation into France's newes political drama. It involves 1h reported attempted assassinatiot of Leftist Sen. Francois Mitter rand. Mitterrand claims a ma chine gun attack o his car wa engineered by elements opnosinf de Gaulle's offer of self-determi nation for Algeria. But formei French deputy Robert Pcsque charges that Mitterrand engi neered the whole thing himself tc try to force a government clamp down on rightwing elements op posing the de Gaulle plan. PROTOCOL: The men who will determine where and how visiting royalty shall be seated at the 1960 Olym pic games In Rome, have a new worry. They know about Pope John's XXIII delight in breaking with tradition and they are tak ing up seriously the possibility he might want to see some of the games. Would a separate throne have to be erected for Pope John? There is no precedent to go by. This is not the first crisis by a''y mea"s. Past shortages have been m"t by such expedients as a new tux on liquor aid one on cigarettes Now, more patchwork tax legislation is in pruspect by the Legislature! One likely action is the seizure of the veterans' trust fund of 40 million dollars to pay off bills. This fund has been use! o ily t' I he etc-'t of loa.is ot aboil' M,500,(KX) a year tn vetenns and the argument is that those can he handled by a special appropri ation. Another idea is a new $iu "one shot" tax on every automobile owner in Michigan. With 3. 500.000 cars that would bring in 35 mil lion dollar. The Male not a ba.l jolt last mouth. Another ol its expedients was r;iisiiii the sales tax liom 3 per cent to 4 per cent lind calling t he eslia o'ie per cent a use tax The stale Supreit.e Court ilir'are I it illegal 0:1 a strictly partisan Dvmocrats and 3 Itepubl cans li;i,is aid an a Hiema H in "onie cf no million d l; r was lost. Pco;l Are Disgusted Nun there is much political sciiriyi"K to put relercndiiiNs on the ballot in the November im election to f t party Sii a'ety Ttie Ili'i-ublicaa.s propose to ask a c.nstitutional clia '.go to 'loos the sales tax to 4 per cent. The t'AW over the week end countered that it would ask ap proval of n terrific excess profit ' lax which would take 25 per cent of corix,r:iii. ,,Li..r A iMr 'cent With Ce'icral Motors record canines fir the first 9 months of ih s year, the annual tax on that cumpa-.y ;,H, wouy pl,t Michi gan in the black. Williams -ays that is all very 'veil, hut he needs till million dol ''U s mm The pi.bhc hasn't had the cha-ee to say much of anything, but a visit here makes it evident the people are disgusted. Several editors at a United I'ress Inter national r e. ting in Grand Rapids agreed a let of ieople would line to loss out the entire Legislature, Ucmociats and HeHitilicuns alike, plus the governor and start with a clean slate. frf y Vtfit - OMr" 'l r FOB 5 fCARS OF BARGAINS AND GETTlfcJG BmS ALL THE TIME . . -OUR MAT'S CFF TO MR. PENNEY WITH i " . I w Store Hours: Mon.-Sat., 9:30-5:30 a i r 5 'I : 1 ! F r ? : B ' I f i U J ' t j r i t . : . 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