SUNDAY, JAN. I8, 1945
THE MICHIGAN DAILY
U.S,
Will Appeal
Adverse
Montgomery
Ward
Judge Sullivan Rules Roosevelt
Had No Right To Seize Stores
By The Associated Press
CHICAGO, Jan. 27-The government lost its suit against Montgomery
Ward and Company today-when Federal Judge Philip L. Sullivan ruled that
President Roosevelt had neither statutory nor Constitutional authority
to order army seizure of 16 company properties.
Plans for an immediate appeal were initiated, however, by U. S.
District Attorney J. Albert Woll, whereupon Judge Sullivan stayed all
proceedings so that Army control will continue at least until the appeal
decision. Woll said the case might reach the Circuit Court of Appeals
next week, or it might be taken directly to the U. S. Supreme Court.
Chairman William H. Davis of the War Labor Board said in Wash-
ington that "if the decision is not reversed or Congress does not take
appropriate action to make the Wary
Labor Board's orders of settlement
effective on everybody, the whole plan
of peaceful settlement of wartime
labor disputes will collapse."
Sewell L. Avery, Chairman of the
Board of Ward's, declared in Chandl-
er, Ariz., however, that the decision
means "A great day for labor," adding
that "The battle of Ward's for seven
years has been to maintain indepen-
dence of the individual in his Con-
stitutional rights to join a union, not
to join a union or to resign from a
union as he wishes."
Stock Exchange Booms
"Woe to labor if Avery becomes its
champion," was the reply of Samuel
Wolchok, International President of
the CIO United Retail, Wholesale and
Department Store Employes, princi-
pal union involved in a long labor
dispute over Ward's refusal to obey
WLB directives. The dispute and
consequent strikes led to the seizure
Dec. 28 of 16 company properties in
seven cities.
On the New York stock exchange a
wave of buying of Ward's stock was so
heavy after the decision came out
that trading was held up 25 minutes.
The stock closed at $52.87, up $2.75
from yesterday.
Army Will Stay
Maj. Gen. Joseph W. Byron, mili-
tary manager at Ward's, said that in
accordance with the stay pending the
appeal, the Army would continue its
operation of the seized properties, 10
retail stores, three mail order houses
and three warehouses in Chicago,
Detroit, St. Paul, Denver, Portland,
Ore., San Rafael, Calif., and Jamaica,
N. Y.
Judge Sullivan's opinion said it
was "with considerable reluctance"
that he reached the conclusions that
the President was without authority
either under the War Labor disputes
(Smith-Connally) Act or under his
Constitutional war powers as Com-
mander in Chief to take possesion
of Ward's facilities.
He said:
"So deeply do I feel on this subject
that I believe it is not too much to ex-
:U
JUDGE PHILIP L. SULLIVAN
. ..rules seizure is illegal
pect that for the duration employers,
employes and unions on the home
front should make a determined ef-
fort to adjust their labor disagree-
ments without resorting to strikes and
lockouts."
Ward's Is Purely Retail
Concerning one of the most em-
phasized points in the legal dispute,
whether Ward's is a war production
plant within the meaning of the
Smith-Connally Act, the court upheld
the company's contention that it is
not, calling it "A retail establishment
engaged solely in distribution."
"I have carefully read the entire
legislative history of the act and from
it I cannot draw the conclusion that
the terms 'equipped to manufacture,
mine or produce,' also include the
term 'distribution' (as the govern-
ment contended) or that Congress in-
tended by the act to grant to the
President the power to seize a plant
or facility engaged solely in retail
'distribution,' " Judge Sullivan said.
Michigan State
Convention Slate
Named at Flint
Averill, Sehwiniger
Reelected Yesterday
By G. MILTON KELLY
By The Associated Press
FLINT, Mich., Jan. 27-The Demo-
cratic state convention today re-elect-
ed Walter C. Averill. Jr., of Peters-
burg, and Mrs. Minnie Schwinger of
Saginaw, as the party's state chair-
man and vice chairman, respectively
and nominated a slate of candidates
for the spring election April 2.
Fights for those party offices which
dragged through the night and day
dwarfed interest in nomination of the
election ticket.
The Convention Nominated:
For State Highway Commissioner-
George A. Dingman, Wayne County
Drain Commissioner.
For Supreme Court Justice, two
seats-Justice Raymond W. Starr, of
Grand Rapids and W. Leo Cahalan,
Detroit attorney.
ForSuperintendent of Public In-
struction-E. Burr Sherwood, Stam-
baugh City Commissioner and Iron
County School Commissioner.
For University of Michigan Regents
(two seats)-Edward Martin Welch,
Detroit attorney and former Assist-
ant Wayne County Prosecutor; and
Dr. J. Walter Orr, Flint physician
and surgeon.
For State Board of Agriculture,
Michigan State College governing
body (two seats)-Frank Wiegand,
Sr., Warren Township Treasurer,
Macomb County; and George Caball,
Zeeland Hatchery operator and poul-
try specialist.
For State Board of Education-Dr.-
Carl O. Smith, Associate Professor of
political science of Wayne Univer-
sity.
The delegates went on record with
a demand that the United States
Senate confirm President Roosevelt's
appointment of Henry A. Wallace as
Secretary of Commerce and com-
mander of the Federal Lending Agen-
cy.
Demands Housecleaning
In another resolution the conven-
tion demanded a house cleaning of1
persons unfriendly to the Democratic
Party who, the resolution said, have
made their way into the payrolls ofj
such federal agencies ah the Office1
of Price Administration (OPA) and
"in a spirit of irresponsibility, ork
often with deliberate malicious in-1
tention," have done things whichk
aroused public antagonism.1
"The Democratic Party of Michi-
gan, as a measure of good govern-1
ment urges the re-examination of all
federal appointments in the State of
Michigan with the expressed purposeE
of removing from office those whoseI
inefficiency, antagonism, thoughtless-I
ness or personal selfishness have$
made them unworthy representativesr
of the government and the party inr
their present great responsibility to
the nation," the resolution said.-
Drops Bmbshellt
This was one of the most confus-
ed and confusing conventions the
party has had in many years, with .
behind-the-scenes "deals" beingi
made, broken and re-fashioned seem-f
ingly interminably before 'its fightst
were settled.r
James H. Lee, Assistant Corpora-y
tion Counsel of Detroit, dropped a
bombshell as the in-again-out-again-
in-again keynote speaker. He pro-i
posed that the party renominate Jus-
tice Starr, but refrained from enter-
ing a candidate against Supreme
Court Justice Walter H. North, as
Republican.
INVEST IN VICTORY
BUY WAR BONDS
r
__ __. _
.. .
Follow These Five
BUZZ BOMB TAKES OFF-These two pictures show one of the new
U. S. Army Air Forces buzz bombs, an adaptation of the German V-i,
being launched at an Air Forces experimental station. Top-Smoke
pours from the undercarriage as it starts up the ramp carrying with
it the bomb. Bottom--Varriage drops off and bomb soars towards its
destination.
JAP PULVERIZERS:
Navy Places Assault Rockets
Onto Mass Production Scale
By DAVID J. WILKIE Navy planes cary eight rockets,
Associated Press Automotive Editor I
four under each wing, in addition to
DETROIT, Jan. 27-The Navy De- the bomb load. The rockets are held
partment has placed into mass pro- b h twei .h eamliedslaunherd
duction its new five-inch high velo- y lightweight, streamlined launchers
city assault rockets, used so success- that do not materially affect the
fully in pulverizing Japanese-held flight of the plane.
beaches in the Pacific. Rockets are used on at least eight
GRAND JURY HIGHLIGHT:
MCKinney, Natt
Guilty of Bribe i
"I-
By'The Associated Press wh
LANSING, Mich., Jan. 27-A guilty a
plea by Clayton R. McKinney, for- ply
mer Centerville naturopath, accused cut
of participating in an attempt to' ent
bribe members of the 1939 legislature cou
highlighted developments in Carr tioj
Grand Jury cases Saturday. ren
One-Man Jury Indicts Him
McKinney, in a brief appearance Fri
before Circuit Court Judge Leland Ch
W. Carr, whose one-man grand jury of t
indicted him, admitted guilt on an pos
indictment accusing him of seeking Fit
to influence legislative action on a in
bill to regulate naturopaths in Mich- Jol
igan. to ]
Meanwhile, counsel for Floyd Fitz- '
simmons. Benton Harbor sports pro- ace
moter, who is due for trial Monday dic
on charges that he attempted to bribe to
a legislator in connection with a 1941 Ha
Horse Racing Bill, announced he to
would seek postponement of the case I Ra
1.. Fill . ur deposit slip exactly as your checking account is carried
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OPEN TO ALL CUSTOMERS WITH A CHECKING ACCOUNT
SYou
won t have
to beg her
to go to
KAMPUS
TODAY
at 3:30 in Hill Auditorium
Remaining Tickets On Sale
at 3 O'clock at the Box Office
. . . ieuturin. . .
One-tenth of all the new weapons
being turned out under a billion dol-
lar program now in operation are
being produced in the Detroit dis-
trict, which the Navy defines as
Michigan, Indiana and part of Ohio.
Peak Late This Year
Peak production, the Navy report-
ed, is expected to be reached io the
last quarter of 1945, when the month-
ly outlay for the weapons will total
$100,000,000. This is more than the
Navy spent on its entire ammunition
program in the last three months.
Coincident with the report on pro-
duction, the Navy disclosed some de-
tails concerning the weapon itself.
There are many types, but the most
valuable to present-day needs are
high-explosive, fragmentation, demo-
lition, armor-piercing and smoke. The 1
five-inch, high velocity type, carries
the explosive power of a 155-milli-
meter shell.
Landing Craft Equally Valued
Especially valuable as a rocket car-
rier, the Navy reported, is the Land-
ing Craft, Infantry, which can dart
in close to an enemy-held beach,
spray the area with the weapon and
still offer an elusive target. The
rockets are fired from rows of tubes,
resembling barrels of trench mor-
tars, with devastating effect.
In aircraft, one of the advantages
of rockets over large cannon-fired
shells is that the rockets have no
recoil and do not require heavy in-
stallations.
types of American war planes-the
Army's Lightnings, Aircobras, War-
hawks, Thunderbolts, and Mustangs,
and the Navy's Hellcats, TBF torpedo
planes and the Bell manufactured
jet-propelled planes.
101 SouTrii MAIN 330 Sou'ri- STATE
Member Federal Deposit Insurance Corporation
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Wom en s
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II
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