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April 20, 1946 - Image 1

Resource type:
The Michigan Daily, 1946-04-20

Disclaimer: Computer generated plain text may have errors. Read more about this.

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R MAP A - - - - 1 0 , B ft - - - ff p - - - AV T 5 --" - - -- - i

urf A xposes
Black Market
III Used Autos
5,000 DlJtfroit Cars

unrnese feport tuains
Capture of Changehiiini
Cenerid Marshall Confers with Btht Sidc:;
2thungking 1Rusles Remiforcements to Seen e

Flour Consumption Cut Ordered
To Meet 'Mass Starvation' Threat

Involved in Violation
By The Associated Press
DETROIT, April 19-Thirty-one
persons were indicted by a Federal
grand jury today as the Office of
Price Administration claimed to have
smashed a black market in used mo-
torcars involving sales totaling $3,-
000.000 above ceiling prices.
The U. S. District Attorney's office
said most of the defendants, who live
in Michigan, Kentucky, Illinois and
Missouri and allegedly operated in
five other states, were expected to
surrender next week.
All were charged with conspiring
"feloniously" to violate price regula-
tions in a scheme in which, the OPA
said, 5,000 cars were funneled out of
Detroit to buyers who paid an aver-
age of $600 above ceiling prices.
others Pending
Joeph C. Murphy, Assistant U. S.
Attorney, said no additional indict-
ients would be returned in Detroit,
but that others "probably will be
handed down in other sections of the
The OPA charged similar illegal
operations had been carried on in
Washington, D. C.; Indianapolis, and
Cincinnati. These were not involved
in today's indictment.
Of the defendants named today
only one was identified as an author-
ized, or "warranty," dealer.
Dealings Widespread
Their dealings, U. S. Attorney John
C. Lehr said, extended into Texas,
Arkansas, Mississippi, Tennessee and
Louisiana. Fraudulent certificates of
transfer were given local ration
boards, the indictment said.
The OPA, terming today's' crack-
down the largest of its kind in the
agency's history, said 15 of its special
investigators have been working on
the case since Sept. 15, 1945.
The agency credited Charles O.
Bannon, Assistant Chief of the Di-
vision of Special Investigation at the
Cleveland, O., regional office, with
breaking the ring that OPA alleges

BY The Associated Press{
CHUNGKING, Saturday, April
20 - Giving the first confirma-
tion of the safety of seven
Americans caught at Changchun,
General Marshall's headquarters
has formally requested permission
for five U. S. newsmen and two
U. S. Army officers to leave that
Communist-captured capital city
of Manchuria.
CHUNGKING, Saturday, April 20
-A Chinese government spokesman
acknowledged today that the Man-
churian capital city of Changchun
has been wrested from the govern-
nment troops by Chinese Communists
--a fiery decision achieved as U. S.
Busiess Study
To Be Given in
Grand Rapids
Crowded Conditions
Force New Extension
Because of the lack of classroom
space on campus and the crowded
housing situation in Ann Arbor, the
School of Business Administration
will provide.courses in Grand Rapids
starting with the Fall Semester.
According to Dean Russell A. Ste-
venson, these classes will enable the
school to admit up to 100 qualified
juniors who probably could not be
accommodated on campus. Comple-
tion of the work to be offered in
Grand Rapids will qualify students
for senior work on campus.
Admission requirerents to the
Grand Rapids Extension Center, 143
Bostwick St., will be the same as to
the main division of the school. The{
center will be open to qualified stu-
dents in Western Michigan living
within a convenient commuting dis-
Two faculty members will handle
instruction at the center. Lectures,
"will also be given by other faculty
members from the campus and by
Grand Rapids businessmen.
The Grand Rapids classes are plan-
ned for only one year, Dean Steven-1
son said. However, they may be con-
tinued- if classroom and housing con-
ditions do.not improve as is anti-,
cipated for the 1947-48 school year.1
The new Business Administration
Building is scheduled for completion
before the fall of 1947.
Litch field Trial
Head Is Fired 1
LONDON, April 19-P)-Col. Buhlt
Moore was disqualified today as pres-I
ident of the U. S. Court-martial of
guards and officers charged with
mistreating American prisoners im-
prisoned at Litchfield.
Stating that neither the defendantt
nor the government could get full
justice from the court as it was con-c
stituted, the colonel had asked that1
his fitness be challenged. He said
that his request had nothing to do
with any evidence given or any ac-
tion taken by the defense, but was
the result of friction between him
and Maj. Benito Gaguine, the law
member of the court.
Moore said that he questioned the1
"ability, adequacy and competency
of the law member."
Major Leland Smith, the trialr
judge advocate, made the challenge
and the six other members of the1
court voted to disqualify Moore aftert
three minutes deliberation.i

General Marshall strove to halt Chi-
na's renewed civil war.
The spokesman's concession, made
as two fresh government armies
moved to the troubled Manchurian
area, followed a semi-official dispatch
from Mukden, government-held
Manchurian city, which tended to
confirm previous Communist claims
of success at Changchun.
The dispatch said the pilot of a
scouting plane dispatched to Chang-
chun yesterday returned and report-
ed no further evidence of fighting,
which had been bitter in the city's
Chinese Communists yesterday
claimed Changchun's complete cap-
ture in a broadcast from Yenan.
There was no word directly from
Changchun nor from the five Amer-
ican correspondents and two U. S.
military observers there.
Another Yenan broadcast said the
Communists still held the railway
junction city of Szepingkai, 80 miles
south of Changchun. The broadcast
also charged that two planes bear-
ing the American white star insignia
had "strafed" Communist positions
south of there. But this report was
entirely without confirnmtion
Szepingkai Captured
The government on Monday an
nounced capture of Szepingkai by its
American-equipped Firs t Army,
which is marching north to Chang-
chun but which yesterday still was
75 route miles distant.
In Nanking military sources which
could not be named said the govern-
ment was sending at least two fresh
armies - the 72nd and 74th - into
General Marshall, special American
envoy to China who flew hastily back
to Chungking from Washington to
try to halt the fratricidal warfare,
was engrossed in a series of confer-
ences with both sides.
Conference with Soong
Marshall's headquarters had no
new information on the military sit-~
uation, but his conferences were de-
scribed as important. One, with T.'
V. Soong, President of the Executive
Yuan, presumably dealt with nego-
tiations for a United Statestloan to
Two other American moves re-
mained to be fitted into the Chinese
It was disclosed that the 12-man
American military liaison mission
which had been in Yenan since 1944
ha withdrawn from that Commun-I
ist stronghold on March 30, makingI
the Communists a gift of its sevent
automobiles, some buildings, clothingt
and radio equipment valued at sev-1
eral hundred thousand dollars. e
Experts To Train Communists c
At the same time, Communist
headquarters here announced that
arrangements had been completed
for American military experts toI
train Communist officers in modern
military practices pending unificationr
of the Communist and governmentr
Ignoring the fighting, an all-partyE
committee working on a new consti-l
tution for China announced it hadr
reached oral agreement on a "bill
of rights" pledging freedom of speech,c
press, worship, assembly, and thes
forming of associations.
Perspectives' Sets r
May 1 as Deadline
The deadline for contributions to
Perspectives, literary supplement to
The Daily, has been extended to Mayr
1, Bob Huber, Perspectives editor, an-r
nounced yesterday.t
Manuscripts in the fields of prose,r
poetry, essay and book review may bes
turned in to the Perspectives deskz
in the Student Publications Building.

MARSHALL GREETED IN TOKYO-Gen. George C. Marshall, (left), special U.S. envoy to China, and Mrs.
Marshall (center) are greeted on their arrival at Atsugi Airfield, Tokyo, by Maj. Gen. Lester Whitlock (second
from left), denuty chief of staff, Maj. Gen. Wing, Chinese liason officer and Lt. Gen. Chu, China's represen-
tative to the Allied Council. The Marshalls stopped over in Tokyo enroute to China.

Poland Reported Ready To Back
Australian Compromise Proposal

did $3,000,000 worth of
ness sinWe Nov. 1, 1944.

illegal busi-

Petitions Due
Today aFt ive
Ten Days' Cam1paigning
Before Final Election
The deadline for petitions for of-
fice in the campus' new governing
body, the Student Congress, is 5 p.m.
today according to Harry Jackson,
president of Men's Judiciary Council.
Bearing a 100-word statement of
the candidate's qualifications and 50
signatures, the petitions must be
placed in the student congress peti-
tion box in the Union, Jackson said.
The petitions will be edited and
printed for campus appraisal next
week, according to present plans. /
An all-campus election to select
personnel for the Congress is sched-
uled April 30. Eighteen representa-
tives-one for each 800 students-
will be chosen at that time. In suc-
ceeding elections one representative
will be elected for each 400 students
under provisions of the Congress-
Cabinet student government consti-
'U' Takes Action
On B ildingSite
Condemnation proceedings to ac-
quire the remaining four privately
owned parcels of land on the site of
the projected new Business Adminis-
tration Building were instituted in
Washtenaw Circuit Court yesterday,
Vice-President Briggs announced.
The University already has obtain-
ed 11 of the 15 parcels in the area
bounded by Tappan, Hill, Haven and
The proceedings were begun against
Elroy 0. Jones, owner of property at
719 through 721 Tappan; Charles and
Pauline Listman, owners at 731 Tap-
pan; Jacob and Elizabeth Hansel-
man, owners of 920 Monroe; and the
Michigan B'nai B'rith Hillel Founda-
tion, Inc., the non-profit corporation
which sponsors the campus Jewish
students' organization, for property
at 730 Haven.
Negotiation of Coal Strike
Urged by Schwellenbachl
WASHINGTON, April 19 - (U) -
Secretary of Labor Schwellenbach to-
t, asunmed nersonnaldiretinn of

NEW YORK, April 1 9 -(A'1$-- Po-
land was reported today ready to
back Australia's compromise proposal
on the controversial Spanish ques-
tion, apparently clearing the way
for the United Nations Security
Council to order a four-week inves-
tigation of the Franco regime.
Ambassador Oscar Lange, who or-
Pauley To Try
ToCrack Strict
Soviet Secrecy
WASHINGTON, April 19 - (A') -
President Truman is sending Edwin
W. Pauley, his reparations expert,
back to the Far East about May 1 to
try again to crack the iron secrecy
hiding Soviet removals of industrial
equipment and property from Man-
churia and Korea.
This was announced today by Sec-
retary of State Byrnes in his last
scheduled news conference before he
leaves for Paris Tuesday morning.
There he is to begin on Thursday a
momentous conference with foreign
ministers Molotov of Russia, Bevin of
Britain and Bidault of France in an
effort to break the big power dead-
lock over European peace settle-
The industrial equipment issue is
one which has been a source of con-
siderable irritation in Russian-Amer-
ican relations and it might come up
informally at least at Paris.
Byrnes left no doubt that he con-
siders it, certainly in Manchuria, a
question of utmost economic impor-
Byrnes also said:
1. American land and air forces
now being moved into Germany are
not designed to cope with any par-
ticular expected emergency but are
merely to bring up to planned
strength units depleted by demobili-
2. He has sent to Russia a new note
designed to promote arrangements
for negotiating a $1,000,000,000
American loan but that he will not
disclose details because he wants to
keep the American position fluid
enough to change if necessary.
3. He has not received any direct,
official reports of censorship in Iran
and he hopes the unofficial reports
are not true.
Olin Downes Will
Discuss 'Criticsim'
"The Function of Criticism" will
be discussed by Olin Downes, music
critic of the New York Times, at a
University lecture at 8:30 p.m. Mon-
day in the Rackham Lecture Hall.
The lecture, sponsored jointly by
the School of Music and Pi Kappa
Lambda. national muic honors ocie-

iginally presented the demand for a
worldwide rupture of diplomatic re-
lations with Franco Spain, was said
to have indicated to the Australians
that he would support the call for
a full inquiry by a committee of five
members of the council.
Informed quarters expressed the
view that Russia, France and Mex-
ico, supporters of Lange's resolution,
would fall in line.
Air the Facts
The United States and Great Brit-
ain have maintained from the first
that they were interested in having
all the facts aired and it was con-
sidered they might approve the Aus-
tralian plan when the Council re-
convenes at 3 p.m., EST, Tuesday.
Both already have expressed "inter-
est" in the inquiry plan.
There was some speculation as to
whether observers might visit Spain
to gather material for the report,
which would be due May 17. The res-
olution by Col. W. R. Hodgson, Aus-
tralian delegate, asked the commit-
tee "to examine the statements made
before the Security Council concern-
ing Spain, to call for further written
statements and documentary evi-
dence from members of the United
Nations and from the Franco regime
and to make such other inquiries
as it may deem fit."
Franco's Invitation
It was recalled that Generalissimo
Franco already has invited members
of the United Nations who have dip-
lomatic relations with his govern-
ment to make an investigation in
Hodgson asked the committee to
report on three questions:
"Is the Spanish situation one es-
sentially within the jurisdiction of
Spain? Is the situation in Spain one
which might lead to inter.national
friction and give rise to a dispute? If
the answer to the second question is
yes, is the continuance of the situa-
tion likely to endanger the mainten-
ance of international peace and se-

UAW Leaders
Repudiate Chief"
In Policy Stand
Company Profits Out
In Wage Demands
CHICAGO, April 19 -(p)- The
CIO United Auto Workers executive
board, overriding Union President
Walter P. Reuther,.today adopted "by
a substantial majority" a new policy
declaring company profits must not
be a deciding factor in union wage
The policy statement, a virtual re-
pudiation of Reuther's stand during
the recent General Motors strike,
was drawn up by Vice-Presidents R.
J. Thomas and Richard T. Leonard,
and Secretary-Treasurer George F.
Reuther told reporters he voted
against the new policy, saying the
portions with which he disagreed
were "a carryover from the heat of
the convention."
Recommendation Adopted
He said the recommendations were
adopted by "a substantial majority"
of the 22-man executive board, al-
though adoption "would not reflect
the political grouping of the board."
He did not elaborate, but added he
would "accept and carry out the will
of the majority."
During the General Motors strike,
Reuther, then UAW vice-president
and head of the union's GM division,
partly based demands for increases
in wages on what he called the cor-
poration's ability to meet wage in-
Statement of Policy
The UAW president said he would
submit at tomorrow's board meet-
ing "for the record" a statement of
policy he said he believed should
have been adopted.
The Thomas-Addes-Leonard pro-
posal passed with no changes of any
importance, Reuther said, except
with the addition of a clause declar-
ing that if price controls were re-
moved the union would force re-
opening of wage issueowhere it now
was bound by contract.

iJ.S. Asked
To .Further
Cu rta il D iet
By The Associated Press
WASHINGTON, April 19-The gov-
ernment tonight ordered American
consumption of flour cut one-fourth
below the level of this time last year,
to meet what President Truman call-
ed history's "greatest threat of mass
The President, appealing to the
"warm heart of America," urged the
people anew to go on a European diet
two days a week-a diet that is less
than half that of the average in this
The government order, effective at
12:01 a.m. Monday, was announced
by Secretary of Agriculture Anderson
in a nationwide-all-network radio
broadcast in which the President al-
so participated, along with former
president Herbert Hoover, speaking
from Cairo, and UNRRA Director
F'iorello LaGuardia. The 25 per cent
cut in flour consumption was part of
a six-point program to get food for
Hoover Asks for Help
Hoover, apparently uninformed in
advance of the mandatory steps an-
nounced simultaneously with his ver-
bal report on famine in Europe, urged
measures to approximately the same
end. He suggested that the govern-
ment get the food it needs as it did
in wartime, when there were manda-
tory set-asides. Hoover called on Bri-
tain, Russia and Latin America to
help out too.
LaGuardia appealed "desperately"
to farmers to furnish the needed
wheat. The next 90 days, he said,
"will mean eternity for a great many
who are now on the brink of death."
Mr. Truman, in a brief address in-
troducing the other speakers, asking
every American to eat less and to
share his food, declared:
"America cannot remain heathy
and happy in the same world where
millions of human beings are starving.
A sound world order can never be
built upon a foundation of human
Anderson's Program
Anderson's program for meeting
the need outlined by the chief execu-
tive was this:
(1) Millers will be required to limit
domestic distribution of flour to 75
per cent of the amount they delivered
in the corresponding months -last
year. This order becomes effective at
12:01 a.m. Monday.
(2) The government will offer far-
mers a bonus of 30 cents a bushel of
wheat delivered to the government by
May 25. The bonus is designed to en-
tice upwards of 160,000,000 bushels
of wheat off farms during the cur-
rent world famine crisis.
(3) The government will offer to
buy 50,000,000 bushels of corn from
farmers at a bonus of 30 cents a bush-
el over current ceiling prices. Corn
obtained under the bonus would be
resold to feeders and processors in
urgent needy
Limit Asked
(4) Food manufacturers will be reA
quired to limit their use of wheat in
the manufacture of products for do-
mestic human consumption to 75 per
cent of the quantity used in the cor-
responding months of 1943. This ac-
tion also becomes effective Monday,
April 22.
(5) Millers and food manufactur-
ers wil be limited effective May 1 to
21 days' inventory of wheat. This
action is designed toreduceidomestic
wheat to make more available for
(6) The Government will offer to
buy an unlimited amount of oatmeal
from millers for export to hungr,

Anderson said the program was
adopted after consultation with the
governments of Canada and the
United Kingdom. It was indicated in
the talks, he said, that those coun-
tries would work with the United
States toward the "two common ob-
See HUNGER, P. 2
French Assembly
Adopts Constitution
PARIS, April 19- )-The French
Constituent Assembly adopted a new
constitution for the Fourth Republic
by a vote of 309nto 249.

OPA Chief Porter Acts To Hold
Staff Intact Despite Legislation

WASHIN3TON, April 19 - W) .-
OPA Chief Paul Porter acted today
to hold his price control staff to-
gether in the face of the House deci-
sion to shear the agency's pcwers.
'Porter arranged to make a personal
"stay-at-the-job" appeal Monday to
3,200 OPA employees here, and for
similar meetings next week at re-
gional and district offices. At the
same time two farm state senators
announced they would fight to keep
the restrictions tacked on by the
House in voting to extend OPA's life

quit rate" among OPA employees.
He reported that the theme of Por-
ter's talk will be that "the House bill
is not the final decision of Congress."
enate Favor Predicted
Administration leaders have ex-
pressed confidence that the agency
will fare better in the Senate and
that a milder measure will emerge
eventually from compromises be-
tween the two chambyrs.
The Senate Banking Committee is
considering a bill which now pro-
vides for the extension of OPA for a


Gains Made in Uniting Labor
On Basis of Equality -- Crockett

The UAW has made greater gains
in solidifying labor on the basis of
racial equality than any other or-
ganization, said George W. Crockett,
UAW educational director, at an In-
ter-Co-operative meeting at Muriel
Lester House yesterday.
The initial hurdle lies in FEPC's
ability to persuade management to
place a Negro beside a white man in
the shop, according to Crockett,
graduate of the University law schnnl

because whites refused to work with,
six new Negro employees, the commit-
tee acted to remind the white strikers
that the UAW constitution guaran-
tees complete economic and social
equality, Crockett revealed.
The committee at a second of the
only two hearings involving racial in-
tolerance, he continued, ordered the
removal of a sign reading "For White
Members Only" in a building for
which Negroes had helped to pay.
rmn,, ' . - --

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