FINANCIAL'
REVI eS
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CLOUDY,
LIGHT SNOW
Latest Deadine in the State
VOL. LVIII, No. 78 ANN ARBOR, MICHIGAN, THURSDAY, JANUARY 8, 1948
PRICE FIVE CENTS
Soviet
ShipGoing Down
With
780
Aboard
___. ,;
Truman
Higher Rates*
Requested for 'i
Corp orations 7
Seek To Extend
Rent Controls '.
Asks
Tax
Cut'
* *
By The Associated Press
WASHINGTON, Jan. 7-Presi-
dent Truman called in a "state of
the Union" message today for a
flat $40 a year tax cut for every
income tax payer and dependent
and for higher corporation taxes
to make up the resulting $3,200,-
000,000 loss in revenue.
The President delivered his
sharply controversial proposal in
person to both houses of Congress
and a large assemblage of govern-
ment leaders in outlining a 10-
year program aimed, he said, at
"stamping out poverty in our
time" and fostering "enduring
peace in the world."
Republican leaders immediate-
ly assailed Mr. Truman's message
as a surrender to the policies of
independent presidential candi-
date Henry A. Wallace and served
notice that they would shelve the
President's tax-slashing measure
in favor of their own.
Many Congressional Demo-
crats applauded the President's
message, including the tax pro-
posal, which Mr. Truman de-
scribed as a "cost of living"
measure intended to help low-
income families in particular to
"buy the necessities of life."
Another of Mr. Truman's pro-
posals, that rent control be ex-
tended beyond the present expira-
tion date of Feb. 29, appeared to
meet with general agreement.
Mr. Truman also urged that
Congress "act promptly" on the
four-year Marshall Plan for
European reconstruction, call-
ing it a "vital measure" of our
foreign policy and a "decisive
contribution to world peace"
And he called again for the
power-denied him at last year's
special session of Congress-to
bring back rationing and wage-
price controls if necessary, de-
claring that the price spiral is
undermining the living standards
of millions" and "holds the threat
of another depression."
Mr. Truman recommended too
that Congress set up without de-
lay a system of universal military
training, declaring it "vital to the
security of this nation and to the
maintenance of its leadership."
Pledging full American sup-
port to the United Natoins and
to all cooperative efforts to-
ward peace, the President de-
clared nevertheless that "so
long as there remains serious
opposition to the ideals of a
peaceful world, we -must. mai-
tai strong armed forces"
Three times-as though in an-
swer to Wallace's recent attack
on Democratic and Republican
policies alike-Mr. Truman said
with emphasis that his program'
"leads to peace-not war."
Turning to social legislation, he
asked that the national minimum
wage be increased from 40 to 75
cents an hour; that a national
health insurance system be es-
See TRUMAN, Page 6
GOP Deeries
Truman Talk
Democratic Party
Head Lauds Speech
WASHINGTON, Jan. 7-A)-
Republican lawmakers accused
President Truman of "demagog-
uery" and "pure politics" in his
state of the Union message today,
while a number of Democrats ap-
plauded the message as wise and
far-seeing.
In an over-all appraisal of the
'ss. Ren Arends of Tllinois.
HOUSE AWAITING PRESIDENT'S APPEARANCE-The House of Representatives as it waited
to hear President Truman's State of the Nation address. Speaker Joseph W. Martin (R.-Mass.)
presides from the rostrum directly in front of the flag. Lewis B. Deschler, parliamentarian, stands
on dias at left of Martin.
Plane Crash in
Georgia Kills
17, Injures9
Surviving Passengers
Blame Failing Motors
SAVANNAH, Ga., Jan. 7-{4-1)_
A chartered plane with both en-
gines rasping and loaded with
homeward bound Puerto Ricans
drove headlong into a desolate
Savannah river marsh today and
exploded, killing 17 persons and
injuring nine.
Sixteen of those aboard the
twin-engine plane died on the
spot, but the seventeenth, a girl
about 10-years-old, succumbed on
a U.S. engineer boat en route to
Savannah.
The dead included Alvino An-
tonioli, the pilot. Raymond Eich of
Trenton, N.J., co-pilot and only
other crew member aboard the
DC-3, was among the survivors.
The passengers, with the excep-
tion of a young soldier and a
travel agent, were Puerto Ricans
en route to their homeland from
New York.
One of the survivors, Octavio
Pinol of San Juan and wounded
veteran of World War II, told
newsmen that "the motors didn't
sound so good when we took off
from Philadelphia and from Ral-
eigh."
Pinol, who spent months in a
hospital recovering from wounds
suf fered at Strasbourg, Germany,
said he and fellow passengers no-
ticed.the plane began circling just
before the crash and that the mo-
tors were running slowly.
U.S. Plans Aid
For Germany
Western Powers
Will Boost Economy
FRANKFURT, Germany, Jan. 7
-(/P)-The British and American
military governors today offered
the Germans a powerful and al-
most complete economic govern-
ment, including authority to cre-
ate a supreme court to enforce its
rule and to levy taxes.
The proposed setup would have
everything but political power,
and its framework could easily be
expanded to include even a cen-
tral political government should
that drastic step ever be under-
taken in Western Germany.
Allied officials emphasized,
however, that the proposed organ-
ization of the present bi-zonal
economic council constituted only
a temporary expedient to quicken
IMPROVEMENT NEEDED:
Lack of Confidence in Public
Officials Cited by Emmerich
By AL BLUMROSEN
Increasing confidence in public
officials was cited yesterday as
one of the big problems in the
field of public administration by
Herbert Emmerich, in a discussion
before the Michigan chapter of
the American Society of Public
Administration.
Lardiiei, Cole
Dmytryk Sue
Fil Studios
LOS ANGELES, Jan. 7 - (U-) -
Three high-salaried film person-
ailties filed suit for a total of $3,-
165,925 today against movie stu-
dios which dismissed two of them
and suspended the third for re-
fusal to answer questions before a
House Committee on Un-Ameri-
can Activities, sitting i Wash-
ington.
The three are writers Ring
Lardner Jr., and Lester Cole, and
producer-director Edward Dym-
tryk. Lardner and Dmnytryk
sought damages of $1,382,500 and
$1,783,425, respectively while Cole
merely asked a court 6rder of dec-
larafory relief and returji to the
payroll.
Dmnytryk. who said he was un-
der a two-year contraet at $2,500
weekly, directed his suit against
R-K-O Studio alleging damage to
his artistic reputation and "hu-
miliation and anguish" as result
of his dismissal.
Lardner sued 20th Century Fox,
making similar charges, and de-
manded, in addition to the dam-
ages, that his $2,000 a week con-
tract be declared in force. Cole's
suit was directed at Loew's, Inc.,
and Metro-Goldwyn-vayer Stu-
dio, and asked an injunction or-
dering the studio to put him back
on the payroll.
Emmerich, director of the Pub-
lic administration Clearing House
of Chicago, said, "Good men are
discouraged from going into pub-
lic service by this lack of faith in
administration," he added.
Self-Help
"It is the job of the administra-
ters themselves to find out why
this condition exists and try to
correct it."
"A willingness to explain pro-
grams clearly and to take the pub-
lic into their confidence will go
far toward improving the general
attitude toward those in positions
of administrative importance,"
Emmerich said.
Heads Large Group
As director of the Clearing
house, Emmerich heads an or-
ganization which houses and fa-
cilitates the activities of some 14
agencies which are interested in
the field of public administration.
Emmerich has served in various
capacities with the federal govern-
mnent since 1933 when he was as-
sociated with the Farm Credit Bu-
real.
Food Due for Caravan
Food for Michigan's Motor
.Friendship Caravan will be col-
lected today, tomorrow and
Saturday in boxes placed in the
Union. League, La~ne Hall and
the General Library.
Canned foods of any kind,
dried fruits and vegetables, su-
gar, flour, and canned fats may
be donated for shipment to Eu-
rope. The Michigan Theatre
will have a special showing of
sports reels and cartoons at
10:,o0 a.m. Saturday with food
contributions as admission.
The Public Affairs Depart-
inent of theiStudent Religious
Association is representing the
University in cooperation with
the Junior Chamber of Com-
merce in this- project.
Give Balkans,
Warning on
Greek.'State'
Recognition Seen
As Snub of UN
By The Associated Press
WASHINGTON, Jan. 7-The
United' States and Great Britain
today warned Yugoslavia and Bul-
garia of the "serious implications"
that would result from recogni-
tion of the so-called "Free State"
proclaimed by Communist guer-
villas in northern Greece.
American and British diploma-
tic representatives called on the
foreign ministers of the two Rus-
sian Balkan satellites to serve no-
tice that such recognition would
be clearly contrary to the prin-
ciples of the United Nations Char-
ter. It would amount, the U.S. rep-
resentative said, to "open disre-
gard of the recent recommenda-
tions of the United Nations As-
sembly" which sent a special com-
mission to investigate the Balkan
conflict.
Michael J. McDermott, State
Department press officer, told re-
porters the warning was conveyed
orally and represented the Amer-
ican position as first stated by
Undersecretary of State Lovett
Dec. 30.
At that time Lovett told a news
conference that future American
moveA would depend on the cir-
cumstances.
Since then the Navy has dis-
patched tank-supported Marines
to haval forces now in the Med-
iterrajnean and has assigned Vice-
Admiral Forrest P. Sherman, who
was chief planning officer for
Fleet Admiral Chester W. Nimitz,
to command the Mediterranean
Tas ~Force.
SL To Carry
On 'peratio'
Haircut' Plats
A program "revising and reviv-
ing" Operation Haircut, and out-
lining specific action to be taken,
was unanimously passed by the
Student Legislature last night.
The measure, which provided a
ten point program with the com-
plete elimination of racial dis-
crimination in Ann Arbor barber-
shops in view, was introduced by
Norris Domangue, chairman of a
special sub-committee on discrim-
ination.
The program includes a con-
sultation with local barbershop
owners, a public hearing at which
the views of the barbers, civic
leaders, faculty and students
would be presented, the securing
of approval of campus and civic
organizations and a group of
points involving publicity meth-
ods.
Other matters covered at the
meeting included defeat of a mo-
tion approving Operation Subsist-
ence, approval of activities of the
NSA Committee, which will be
further organized at 4 p.m. today
in the Union at its regular com-
mittee meeting.
The Legislature also approved
two amendments to the consti-
tution of the Mens' Judiciary
Council involving rotation of
membership, and a clause allow-
ing graduate as well as under-
graduate students to petition for
m embershiponthecoucl
Student petitions for one posi-
tion on the council, to be vacant
at the end of this semester, may
be turned in to Harvey Weisberg,
Legislature president. Any eligible
student with at least 60 hours in
the University may petition.
Legislature members absent
from the meeting were John
Baum, George Gordon, Peggy
Herold, Dick Kelly, Arlynn Rosen,
Ruth Sights and Bob Silver.
Michigan State and Colorado.
Meetings, Dinner, Dance
The discussion schedule calls
for separate and combined meet-
ings of business and editorial
staffs at the Union. The conven-
tion will be climaxed with a ban-
quet and dance Feb. 21, Provost
James R. Adams acting as master
of ceremonies.
At least one of the combined
meetings will be open to the pub-
lic. Members of the Student Leg-
islature have been invited to par-
ticipate in several of the discus-
sions.
For Better Business
The conference agenda has been
arranged by members of The
Daily staff. In separate meetings,
business delegates are scheduled to
cover the following topics:
1. Advertising policies and sales
promotion, payrolls, staff organi-
zation, plant equipment.
2. Public relations, training and
tryout programs, faculty supervi-
sion, subscription campaigns and
supplements.
Editorial Planning
Editorial delegates will discuss:
1. Systems of campus news cov-
erage, editorial page policy.-
2. Staff salaries, incentives out-
side salaries.
3. Training programs, faculty
supervision, organization and pro-
motions.
4. Relative play of local. and
national and international news.
Other details will be announced
later in The Daily.
Four One-Act
Plays Will Be
Given Today
As their first dramatic offering
of the new year, members of the
speech department's Play Produc-
tion will present a bill of four
one-act plays at 8 p.m. today in
the Lydia Mendelssohn Theatre.
Part of the laboratory work in
advanced theatre courses, the
plays are stagedtand directed en-
tirely by students. One of the
plays "Lucky at Cards" was writ-
ten by Francis Dysart, '48, for an
English course, last year.
The entire bill will be super-
vised by Miriam Bruce. Patricia
Merritt will act as stage director.
No admission is charged for lab-
oratory programs, which makes it
impossible to reserve seats. There-
fore, doors will open at 7:30 p.m.
and a first come first serve pol-
icy will be followed. Doors will
close promptly at 8 p.m. as no one
will be seated during the peiform-
ance of any of the plays.+
36 Delegates Will Attend
Daily's First Convention
Banquet and Dance Will Follow Meetings
Of Newspaper Business, Editorial Staffs
Thirty-six delegates, representing twelve college newspapers, will
be guests of The Daily at a convention here Feb. 20-21, the first of its
kind in the country.
Invited pavers, selected to represent a cross-section of college
publications, will compare notes on various aspects of operation. Senior
members of business and editorial staffs will bring detailed publica-
tion facts, figures and problems for discussion during the two-day
meeting.
Papers which will have representatives at the conference include:
Illinois, Chicago, Minnesota, Northwestern, Ohio State, Texas, Ala-
bama, Wisconsin, Harvard, UCLA,
ALP Splits a
Wallace Gets s
Endorsementf
Schism a Threat to
'48 Voting Power'
NEW YORK, Jan. 7-(P)-The
New York State American Labor
Party today plumped for Henry A.
Wallace for President but the en-
dorsement caused several big un-
ions to quit the party.
The party split attracted wide
attention from political observers
who felt it might have an impor-
tant bearing on the disposition of
New York State's 47 electoral
votes in the 1948 presidential
campaign.
CIO-ACW Leads Walkout
The walkout from the ALP was
led by the CIO Amalgamated
Clothing Workers, one of the
Party's leading segments both in
voting strength and financial
backing. It also included the CIO
-United-.Automobile Workers, the
CIO United Steel Workers, the
AFL Brotherhood of Railway
Clerks, and others. The Amalga-
mated alone places its member-
ship in the state at 135,000. The
auto and steel workers and rail-
way clerks were estimated to have
about 115,000 members in New
York State.
The split made it problematical
how many votes the ALP, which
functions only in this state, could
deliver in the 1948 election.
Aided Roosevelt
The party rolled up 496,405
votes for President Franklin D.
Roosevelt four years ago and was
a major factor in that race be-
cause Roosevelt's margin over
Gov. Thomas E. Dewey in New
York State was only 316,591.
Hyman Blumberg, State ALP
chairman and executive vice pres-
ident of the Amalgamated, re-
signed a the top party executive,
declaring "a third party in 1948
must inevitably play into the
hands of labor's enemies."
Announcement of Rose
Bowl Films Postponed
Announcement of final plans
for the showing of color motion
pictures of the Rose Bowl game
to University students has been
postponed until tomorrow or Sat-
urday.
Where and when the film will
be presented was to have appeared
in The Daily today.
However, an Alumni Association
official explained that delays in
the processing of the movies ne-
cessitated the change.
Russian Boat
Founders Off
apanCoast
Storm Stymies
Rescue Efforts
By The Associated Press
TOKYO, Thursday, Jan. 8 -
)ecks of the sinking Russian ship
)vina are awash but efforts of
wo rescue ships to remove her
80 passengers have thus far been
utile, an American airman ra-
ioed from the scene off northeast
apan at 11 a.m. today (9 p.m.
Vednesday, E.S.T.).
U. S. Far East Air Forces re-
Dyed the report from the pilot of
B-17 rescue plane circling over-
kead. He said a Japanese tanker
nd a Russian patrol boat stand-
ng by had been unable to get a
ine aboard the stricken ship and
hat waves were surging across her
ecks. The plane was unable to
nake contact with the Russians,
ither by radio or blinker signal,
ie added.
One of the earliest distress
messages from the Dvlina--
lent now for many hours-had
asserted "It is necessary to re-
move passengers immediately."
It noted that the ship was filling
and that she had only one life-
boat.
An American B-29 Superfortress
vhich first located the Dvina by
adar and remained aloft nearly
1 hours to direct rescue craft,
landed at Yokota airbase at 9:50
.m., (7:50 p.m., Wednesday,
&.S.T.). Her pilot, Lt. B. W. Hens-
ley of Upland, Calif., said the
Dvina appeared to be an Ameri-
an-built Liberty ship, although
lying the red flag. Earlier reports
had indicated she was a motor-
ship of only 1,773 tons.
Hensley said he could see
"ten or twelve on deck" this
morning, although visibility was
poor. He reported the ship still
listing at a 30 degree angle. Pre-
vious reports estimated it at 40
degrees.
Six B-17 rescue planes remained
over the ship after Hensley's re-
turn, and five Japanese-manned
ships were steaming to the scene.
rhe weather was reported moder-
ating.
The 1,773-ton Russian ship her-
self mystified American officers
here. None knew she was in the
area, what passengers she carried
or her destination. Occupation
authorities said she could not be
repatriating Japanese from the
Kuriles, north of Japan, since
Russia has suspended that opera-
tion until Spring, and since no
Soviet vessels have ever been used
Jews Bomb
Arab Crowds
At Jaffa Gate
JERUSALEM, Jan. 7 - (P) -
Jews disguised in blue caps of the
Palestine Police and driving a
stolen armored car hurled two
bombs today into Arab crowds at
ancient Jaffa Gate and a nearby
street intersection. Eighteen per-
sons were killed.
Fourteen Arabs died at the gate
and three Jews and one Arab were
killed at the street intersection.
The bomb attacks and other vi-
olence brought to 622 the number
of deaths since the Nov. 29 deci-
sion by the United Nations to par-
tition Palestine.
It was the third time in four
weeks that the Jews have bombed
the Arab-guarded gates of the old
walled city in Jerusalem, where
1,500 orothox Jews, cut off from
the rest of their kinsmen, have
been waging snipers' duels with
Arab riflemen. British armored
cars were used in getting food to
the beleaguered Jews yesterday.
In a statement tonight Irgun
Zvai Leumi, Jewish extremist un-
derground organization, said the
bomb was hurled at the Jaffa
Gate today in an effort to smash
the guard and get additional sup-
plies to the Jews.
National News Roundup
n yVie Associated Press
NEW YORK, Jan. 7-Henry A. Wallace said today President
Truman in his message to Congress made it clear that the Democratic
party chieftains favor support of "reactionary governments all over
the world at the expense of the American people and at the risk of
war."
WASINGTON, Jai. 7-henry Morgenthau, Jr., former See'-
retary of the Treasury, turned up on a Government list of grain
speculators today-but he said he lost money and "it is obvious
I had no inside information."
A.. . ,,,,..+~ 4 ,,. .' -.,
VIOLATORS FINED:
Overcrowded Parking Lots
Still Plague 'U' Authorities
By DICK MALOY
Parking lot problems are still
giving University authorities a
headache.
John Gwinn, who handles auto-
mobile regulations in the Office of
Student Affairs, yesterday said
between 40 and 70 cars are ticket-
ed on the campus each day for il-
legal parking.
Auto tag numbers of these cars
Walter declared that his office
was making a check of the entire
driving setup with a view toward
tightening regulations and reduc-
ing the number of student drivers.
At the beginning of this semes-
ter Gwinn also announced that
his office would start a crack
down on parking violators. In
progress for several months, the
drive has netted scores of viola-
Price of 'Eusia n
Will Increase Soon