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Latest Deadline in the State
VOL LXI, No. 124 ANN ARBOR, MICHIGAN, THURSDAY, MARCH 29, 1951
m
SIX PAGES
New Food Price
ControlOrdered
Stabilizers Submit Percentage
Markup System for Retailers
WASHINGTON-(IP)-A new "percentage markup" system of food
price controls was ordered by the Government yesterday and officials
predicted it will bring more price reductions than increases.
The Office of Price Stabilization issued three regulations applying
to about 560,000 retail food stores-independents and chains-and
about 10,000 food wholesalers.
THE ORDERS affect about 60 per cent of the food on shelves of
grocers and about $20 billion of the business they do each year.
Red
China Rejects
MacArthur
Peace
Offer,
Fights
Fiercely
n
---t
' Carroll Hit
For Income
. Tax Evasion
By The Associated Press
The Government, using a rare
ly-enforced provision of the In
ternal Revenue Code, yesterda
charged James J. Carroll with fail
ure to report payment of $52,688.
15 on- bets and commissions Ii
1948 and 1949, as the crackdow
on c r i m e gained momentun
throughout the nation.
In addition,' investigations an
indictments went on in Washing
ton and five other major cities
San Francisco, New Orleans, Bos
ton, Baltimore and Cleveland.
TWO INFORMATIONS wer
filedby United States attorne
Sam Wear against Carroll, na
tionally-known St. Louis bettin
commissioner. They cited hin
for failure to report to federal ta
officials money paid to winnin
bettors and in commissions.
Payments involved were al-
leged to have been made to 20
individuals and companies in
scattered sections of the coun-
try,. Sums paid were described
in the informations as "gamb-
' ling gains" and "compensation
in connection with gambling
transactions."
So far as records in Washing-
ton show, Carroll is the first per-
son ever to face criminal charge
for failure to file an income ta
information return. The law re.
quiring such returns has been or
the books since 1916.
* . .
MEANWHILE IN Washington
another of the gambling witnesses
long sought by the Senate Crime
Committee was turned up by the
FBI yesterday.
He is John Croft, arrested in
Florida on a Senate warrant for
questioning about a Cleveland
syndicate and its connection
with a Northern Kentucky gai-
g ing place.
At the same time the Senate
Committee gave out closed ses-
sion transcripts on:
1. A staff report saying Ford
Motor Company officials helped
gambler Joe Adonis expand the
territory of his auto transporting
firm in 1946 but recently has been
trying to encourage competition
for him.
x 2. Kentucky casino operator
James Brink's account of inter-
locking deals with the Cleveland
group and others in ownership of
three plush establishments.
AT THE OTHER end of the na-
tion in San Francisco, Stanley Co-
rhen, who distributed race infor-
mation by telephone to 90 per cent
of the city's bookies, told police
he was quitting because of the
"heat."
Five gambling figures were in-
dicted on contempt charges for
refusing to answer Senate Crime
Committee questions in Baltimore,
and the same charge was leveled
against three men in Cleveland.
Dirty Rushing'
Cases Dropped
The three "dirty rushing" cases
which have been hanging over'the
fire for almost a month were fin-
ally dropped by the Executive
Council of the IFC last night.
Two of the cases proved to be
based on insufficient evidence, the
' Council reported, and were there-
fore dismissed. The third fratern-
ity escaped a fine through a loon-
The new pricing method fixes
specific percentages which food
sellers can add to what they pay
for food items. The system must
be put into effect between April
5 and April 30. After the April
30 deadline, grocers must recal-
culate their prices every Mon-
day, based on their newest costs=
of food deliveries.
Price Director Michael V. DiSalleE
told a news conference that "this
is our first big move in the food
field since the general freeze or-
der. It affects a big chunk of:
food 'items, on which American
families spend close to $20 billion
a year."
HE SAID the "general impact
of the orders will be to reduce food
prices in most categories" coveredi
by the order.
But DiSalle stressed that
housewives should not look for
big general reductions. He said
some price changes will be up-
ward, and the changes up or
down will vary with stores and
with localities across the nation.,
Edward F. Phelps, OPS assist-
ant director, told newsmen the
"most important aspect of the
new- orders is that they will pave
the way for effective dollars and
cents 'community prices' which is
the most effective way of con-'
trolling prices."'
The Office of Price Administra-
tion in World War II followed the
same pattern.
* * *
PHELPS SAID the dollars and
cents community pricing method
will be put into effect just as soon
as food prices can be stabilizee*
under the markup method. But,
he said, this may be six months
away, because the factor of 1951
food crop prices must be taken
into account in such pricing.
Among major foods covered in
the new regulations are:
Butter and package cheese at
retail only; baby foods, cocoa,
breakfast cereals, coffee and tea,
flour, flour mixes, canned and
frozen fruits and vegetables, jams
and .jellies, lard, mayonnaise and
salad d r e s s i n g s, shortenings,
canned meats and canned fish.
Thieves TaKe
-Daily-Burt Sapowitch
"PRINCESS" LOBAUGH MEETS THE GOVERNOR
LEASE ON LIFE:
Tug Week Okayed Again'
After Stormy SL Debate
01
-Daily-Burt Sapowitch
HELLDORADO MAYOR (RIGHT) LOSES SALOON IN ACT ONE CARD; GAME
e* **enr eie *d* *
UniOperTa Oenr O Reie OldWest
+7
I
+7
I
4f-
In a flurry of charge and count-
er-charge, the Student Legislature
last night voted to give Tug Week
another lease on life.
The vote was 18 to eight, and
came following a statement by for-
Absent Voters
May Still Get
State .Ballots
Away from home voters still
have a chance to cast absentee
ballots in the state's spring elec-
tion Monday, if they contact their
city clerk immediately.
Saturday is the last day that
absentee ballots may be request-
ed. The ballot and a witnessed
statement that the voter marked
it himself must be returned to
the clerk before the polls close
Monday night.
Up for election on the state
ballot are two members to the
State Board of Agriculture (MSC's
governing body), two University
Regents, a member of the State
Board of Education, the Superin-
tendent of Public Instruction and
two non-partisan Justices of the
Supreme Court.
Coats at Union
A series of thefts in the Un-
ion has left several billard room
patrons without their overcoats.
Lindley Dean, assistant house
manager of the Union, said that
about six losses had been report-
ed to him since October, but pool
room frequenters estimated that
approximately 10 coats have been
taken altogether.
r
1
1
1
t?
t
1
i
mer SL member George Qua, '52,
who managed the last Tug Week.
QUA POINTED OUT the main
purposes of Tug Week as it had
been conceived-to increase school
spirit, to boost extra-curricular ac-
tivities, and to provide "a lot of
fun"-and claimed that both pre-
vious attempts had been success-
ful.
Hugh Greenberg, '51, count-
ered. Saying that the object, to
produce school spirit, was fine,
he described the last Tug Week
as a "farce. To have a successful
Tug Week, some semblance of
spirit must already exist, or the
whole venture is merely arti-
ficial."
Qua claimed that Tug Week does
"constructive things for SL, for
the students, and for the Univer-
sity. "I'm a fourth generation
Michigan man, and I've heard my
dad and granddad talk about their
days at Michigan. They tell about
the things that they remember
best-about who won the big class
tugs-of-war, and things like that."
.P
ASKED WHAT the financial
conditions of the past two Tug
Weeks had been, Qua admitted
that there had been a $300 loss
the first year, but that a profit
of $10 had been realized last year.
Earlier in the evening, the
Legislature debated for 45 min-
utes a motion by Pris Ball, '51,
condemning "the practice of any
special interests in publishing
bulletins urging students to vote
for candidates from that group
only."
The SL voted to send a letter
to Gov. Wright of Mississippi ask-
ing that the death sentence of
Willie McGee, a Negro convicted
of rape, be commuted. As no white
mhan has ever received the death
penalty for such a crime in that
state, the letter states that an in-
justice is apparently being done.
Russia Eases
Stand in Paris
PARIS--OP) - Andrei Gromyko
dropped yesterday his insistence
that the Potsdam Agreement on
the demilitarization of Germany
become a topic of a new Big Four
foreign ministers meeting.
The Soviet Deputy Foreign Min-
ister agreed for the firs~t time to
Government Rests Spy Case;
Jury Ponders Fate of Trio .
CONVENTION NEARS:
YR To Discuss Change
In Party Policy Tonight
A three-way attempt to change the makeup and policies of the
Republican Party will be launched tonight at the Young Republican
meeting.
With the Big Ten YR Convention only two weeks away, campus
Republicans will begin plugging for a new program of close coopera-
tion between the GOP and the American labor movement with a talk
by state AFL leader Frank Martelllm
at 7:30 p.m. *nth Unin- eral discussions with Prof. James
NEW YORK - VP)- - The Gov-
ernment wound up its historic
atom spy trial of three persons
yesterday, and charged they were
in league with other traitors who
got away.
The defense pleaded false in-
crimination and lack of evidence.
* ', *
U.S. ATTORNEY Irving H. Say-
pol told a federal court jury the
gang banded together to steal for
Soviet Russia "the most impor-
tant scientific secrets ever known
to mankind."
He denounced them as com-
mitting "one of the most seri-
World News
Roundup
By The Associated Press
BERLIN - East German Com-
munist police fired 15 pistol shots
at a U.S. Army sightseeing convoy
loaded with 73 American men,
women and children as it toured
yesterday along the Soviet sector
boundary in the heart of Berlin,
but they injured no one.
* * *
LANSING - Governor Will-
iams and Republican legislative
leaders made the first public
passes yesterday toward a com-
promise of their opposing views
on higher gasoline taxes and a
corporation profits tax.
TEHRAN, Iran - Authorities
seized an armed nationalist
fanatic, Hussein Zolfaghari, who
planned to shoot Premier Hus-
* By BOB KEITH
A two-hour pageant of song,
dance and comedy unfolded be-
fore a highly receptive Michigan
Theatre audience last night as
the 1951 Union Opera "Go West-
Madam" opened for a three day
stand.
Playing before a capacity crowd
of more than 1,800, this year's
Opera moved into the old west
of the 18th century with a flour-
ish of colored lights, saloon scenes
and Indian dances.
* * *
PROMINENT among the spec-
tators was Gov. G. Mennen Wil-
liams, traditional guest of honor
since the show's post-war revival
in 1949.
Gov. Williams ran into a lit-
tle trouble before curtain time
when some member of Phi
Gamma Delta, where he ate,
placed a smoky "auto-bomb" in
his car, but the state's chief ev-
ecutive managed to arrive early
enough to visit the cast back-
stage.
Commenting on the perform-
ance, the governor said "I'm not
much of a critic, but I'm having
a lot of fun."
He took particular notice of the
"Aztec Medicine Cure" which was
ous crimes that could be com-
mitted against t he United
States of America."
The three defendants in the
nation's first atom spy trial were
Julius Rosenberg, 34 years old, his
wife, Ethel, 35 years old, and radar
expert Morton Sobell, 33 years old.
"The identity of some of the
other traitors who sold their
country down the river along
with Rosenberg and Sobell so far
remains undisclosed," Saypol said
as he closed his case.
* * *
THE CASE went to the jury at
3:53 p.m.
Conviction of the spy conspiracy
charge carries a maximum pen-
alty of death -- although trial
Judge Irving Kaufman said 'he
hasn't yet considered any penalty.
As of 1:30 a.m. today, the jury
had returned.no verdict on the
trio.
sold in the first act as a remedy
for almost anything, including
drooping bow ties. "I'll have to
buy some of that to keep my own
ties straight," Gov. Williams re-
marked.
Enjoying the show in nearby
seats were President and Mrs.
Alexander Ruthven. "I've seen
a good many of the Operas and
I thought this was one of the
best," President Ruthven said.
Although things seemed to go
pretty smoothly from the aud-
ience's viewpoint, the scene back-
stage was one of typical opening
night rush and confusion. "Fe-
male" lead Jimmie Lobaugh, '51
SM, termed it "the most hectic
night I've ever spent."
Of course he and the -others
were expected to recover in time
for a repeat performance at 8:30
p.m. today. Opera officials said
that only about 25 tickets are left
for tonight's showing, although a
number of good seats can still be
obtained at the Michigan box of-
fice for tomorrow's matinee.
Drive for Red
Cross Lagging
Faculty members have given
only 59 per cent of their Red
Cross quota and students only 12
per cent.
The drive began Mar. 1 for
$5,250 from faculty and $1,000
from students. The campaign will
end next week.
Last year contributions fell
short of the $4,750 faculty goal
and the student quota of $1,200.
Assistant Registrar Edward Groes-
beck, however, said he expected
this year's quota will be reached.
communists
Stand Firm
Below 38th
Allies Expecting
Counteroffensive
TOKYO-(MP-Red China early
today scoffingly rejected General
MacArthur's bid for a Korean
truce:
In the field, her soldiers bat-
tled fiercely on the Western front
north of Seoul.
A Peiping broadcast said the
Red regime would continue the
"fight unrelentingly until the ag-
gressor is completely driven from.
Korea." It termed MacArthur's
offer "worth only a single laugh."
* * *
THE RED broadcast replied be-
latedly to an offer General Mac-
Arthur voiced last Saturday-to
meet the enemy commander-in-
chief in the fieldi and talk peace
-just before he visited troops
fighting north of Seoul toward
the 38th parallel.
Today the stiffest fighting in
weeks raged north of Munsan
not far from the area which
MacArthur had visited.
Chinese Reds four miles south
of the 38th parallel stood firm
against attacking Allied troops.
* * *i
IN CENTRAL Korea, other
strong Red defense positions re-
buffed American patrols on a
front about seven miles wide. It
was four miles north of Chun-
chon and an equal distance from
parallel 38._
A Red counteroffensive, shield-
ed in its buildup by Spring rains,
was expected by Allied com-
manders in Central Korea.
General MacArthur's communi-
que today noted:
"The pattern of vehicular move-
ment in enemy areas indicates a
continued effort to support a
strong concentration behind the
central front."
RUMORS OF A "big deal" also
were widespread-possibly peace
talks. The U.S. Eighth Army Com-
mander, Lt. Gen. Matthew B.
Ridgway, conferred yesterday in
separate meetings with the U.S.
Ambassador to Korea, John C.
Muccio, and with his corps com-
manders.
But headquarters sources said
the conferences were not related.
Nor were they reported to have
dealt with a statement in Wash
ington by Gen. George C. Mar-
shall that any large allied offen-
sive north of the 38th parallel
would have to be decided on the
political level.
Casey Silent
On Partners
In Ship_'Deal'
WASHINGTON -.(A) - Joseph
E. Casey refused yesterday to give-
a Senate investigating commit-
tee the names of those associated
with him in a government surplus
ship deal which parlayed a $100,-
000 investment into a $2,800,000
profit.
Casey, a former Democratic
member of the House from Ms-
sachusetts, challenged the rig t
of the committee to inquire into
the transaction because, he said,
the committee was formed sole-
ly to investigate political influ-
ence in the Reconstruction Fi-
nance Corporation. He said the
ship transaction was entirely
proper.
Among other things he refused
to tell the Senate Banking Sub-
committee whether he or any one
else in the American Overseas
Tanker Corporation paid out any
"gratuities" to make the deal pos-
sible.
In all, Casey declined to answer
MAY FESTIVAL:
'Outstanding Premiere'
Foreseen by Conductor
AT THE SAME TIME, the YR
will consider two resolutions for
the conference in Madison which,
if accepted by the senior Repub-
licans, would constitute a radical
change in the American party
system.
The first resolution calls for
the adoption of a plan which
would change the voting
strength of the national com-
K. Pollock, chairman of the poli-
tical science department.
Emphasizing the need for
these changes, Belin explained
that both ideas were drawn from
the American Political Science
Association's report on political
parties, published this year.
Belin was confident that his
motions would be approved by the
annual Big Ten Conference. But
their big test. he nredicted would
May Festival goers will be
treated to "probably the most out-
standing premiere of the music
season," according to Thor John-
son, who will conduct at two of
the concerts.
Johnson was referring to "Sum-
mer's Last Will and Testament"
by the contemporary English
composer Constance Lambert.
* * *
HE MADE the remarks after a
two-hour session of rehearsals
with the TTnivrs+ity rnri TUnirn
Johnson will conduct will be the
Verdi "Requiem Mass," which will
be heard at the Friday evening
concert.
WHEN ASKED about the trend
in choral music, Johnson said that
though there is a great deal of
composition being done, "it takes
a longtime to get choral works
moving."
He pointed out that it takes
a good organization and many