FINANCIAL' REVI eS i C, r i!Aat 74UIIA1 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