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February 21, 1951 - Image 1

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Michigan Daily, 1951-02-21

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GERMAN REARMAMENT
See Page 4

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Latest Deadline in the State

WINDY, RAIN

VOL. LXI, No. 93 ANN ARBOR, MICHIGAN, WEDNESDAY, FEB. 21, 1951

SIX PAGES

Shiel toHead
1U Service
Department
Seven Units Join
In 'Enterprises'
The University lias organized
seven of its service units under a
new administrative department,
Service Enterprises, a n d has
named' Francis C. Shiel to the
position of manager.
Shiel, the present business man-
ager of Residence Halls, will take
over the job March 1. He will
have charge of the Residence

Union Earnings
Not 'Excessive'
Are Prices Fair? Answer Depends
On Worth of Additional Services
By PAUL BRENTLINGER
Daily City Editor
(Editor's Note: This is the second and final article in a series dealing
with the Union's financial situation.)
Like all other organizations designed to operate on a non-profit
basis, the Union has consistently drawn criticism for "profiteering" on
its sales of food and other goods and services to students.
Is this criticism justified? The answer appears to depend upon
how much one values the many services which the Union provides now,
or which it plans to provide in the future.
UNION OFFICIALS are very definitely income conscious. They have
to be, for even a non-profit organization must avoid losses if it is to
continue operation. But a look at the Union's most recent financial
statement does not indicate that the Union's current earnings are
excessive.
During the year ending June 30, 1951, the Union's net
operating income was only approximately $3,700 on total sales of
more than $1,100,000.
This relatively small sum resulted because of the sizeable over-
head expenses incurred in operating an institution such as the Union.
The big money making departments such as the cafeterias and guest
rooms must support administrative, janitor, heating, lighting and
depreciation expenses which attach to the huge lobbies, the check-
rooms, the many meeting rooms, the library and other free or less-
than-cost services which the Union offers.
* *
THESE MANY general expenses quite naturally are large for a
building the size of the Union. Janitor wages alone amounted to some
$60,000 in 1950. Depreciation accounted for more than $23,000. And it
cost $10,000 to operate the Union's two checkrooms during the year,
according to general manager Frank G. Kuenzel.
General expenses for an ordinary hotel or restaurant, which
probably would not offer as many non-income-producing facilities
as the Union, might be expected to be considerably lower than
those shown for the Union.
Besides the $3,700 net operating income, the Union received
some $19,000 in income from investments and other sources. The bulk
of this sum came from interest on bonds being held as part of the
Union's building fund.
This meant that the Union's total 1950 net income was nearly
$23,000. This amount was added to an operating fund, which would
be available as a cushion against possible financial shocks.
STUDENTS WHO PATRONIZE the Union thus find that when
they buy a meal, a dance ticket or a box of cigars, they are paying for
a large chunk of additional services. In good years, they may also
be helping the Union prepare for operation in periods of rough
economic weather.
Whether or not the Union's services are worth what is paid for
them is therefore a question which must be answered by the individual
patron and member of the Union. For the Union is governed by the
same set of economic laws which affect all institutions offering goods
and services to the public for money.
Army Plans Release of
Reservists, Guardsmen

FRANCIS C. SHIEL
* * *
Halls, Food Service, Laundry
Service, Printing Department,
Binding Department, University
Instrument Shop and Photogra-
phic Services.
* * *
THE CONTROLLER of the Uni-
versity formerly headed these
units.
"The postwar period has seen
the University launch two new
service units, Food Service and
Photographic Services, while
the other service units included
in the new arrangement have
had sizable increases in the
volume of their activities," Wil-
bur K. Pierpont, vice president
of the University, declared.
Shiel has been with the Uni-
versity since 1925 when he began
as a draftsman. In 1929 he trans-
ferred to the Purchasing Depart-
ment and aided in the purchase
of materials for Mosher-Jordan
Hall, then under construction.
Shiel shifted to the Residence
Halls in 1933 as maintenance en-
gineer. In 1939 he assumed the
post of business manager of Resi-
dent Halls.
Meat Packer
Charged with
CheatingU.S.
NEWARK, N. J.-(R)-A meat
packing firm and two soldiers
yesterday were charged with a
$1,000,000 conspiracy to deliver
inferior meats to the Army.
The group was indicted by a
federal grand jury and accused of
"a scheme to defraud the govern-
ment."
ACTING U.S. Attorney Grover
Richman estimated the amount of
the alleged conspiracy at $1,000,-
000.
The firm, Ben Grunstein and
Sons Co., of Hoboken, N.J., the
Justice Department said, had
"corrupted the Army inspectors"
by gifts of money and pay-
ments in order to have them
approve for "delivery to the
Army large quantities of infer-
ior meat."
In addition to the company,
those named in the indictment
were the firm's vice president and
secretary, William Grunstein, for-
mer Army Capt. John F. Jones, of
Easton, Md., and Army Sgt. Sam-
uel A. Auman, of Dothan, Ala.
A spokesman at the firm's of-
fice in Hoboken declined comment.
State Controller
Asks More Funds
State Controller Robert F.
Steadman yesterday included a

U. S. Seeks
Four Power
Talks Here
Note Raps Soviet
General Attitude
WASHINGTON-W)-The Uni-
ted States has proposed to Russia.
that a Big Four Foreign Ministers
Conference to ease world tensions
be held in Washington provided
a "mutually acceptable basis" for
it can be agreed upon.
The American note, made pub-
lic last night, was delivered in
Moscow Monday night to Soviet
Foreign Minister Andrei Vishin-
sky. Parallel notes were delivered
by Great Britain andiFrance.
THE U.S. note declared that the
primary cause of thentense world
situation is the "general attitude"
of the Soviet Union.
It suggested that a prelimin-
ary meeting of representatives
of the four powers be held in
Paris March 5, on condition that
Russia agree to talk about the
real causes of international
troubles.
Russia has accused the Western
allies of seeking to build up
aggressive forces in Western Ger-
many and has said this is a prime
cause of tension. But the U.S.
note denied this charge as "to-
tally without foundation."
"THE U.S. government wishes
to emphasize, moreover," the note
said, "that in Western Germany
there do not exist any German
military forces, or any German
war industry and that the only
thing accomplished in this field
in Europe, is the existence of the
huge armaments maintained by
the Soviet bloc which include
forces raised in East Germany.
"In short, the serious tension
which exists at present arises
in the first instance from the
general attitude adopted by the
government of the USSR since
the end of the war."
The U.S., British and French
notes were worded in such a way
as to get the Soviet government
to give a yes or no answer to the
Western conditions for holding
the preliminary Paris talks. The
Russians have wanted to discuss
only Germany but have said it
was possible for other subjects to
come up.
The U.S., Britain and France
have been discussing for two weeks
the conditions and arrangements
for the proposed Big Four talks.
The effect of the note was to
confront the Russians with two
conditions which must be ful-
filled before the foreign ministers
gathering is defintely decided up-
on. The first condition is that the
Russians should agree to talk
about armaments and the Aus-
trian treaty as well as German
problems before even a prelimin-
ary conference is held.
Mayor Vows
To Hit Back,
At Enemies
DETROIT-(AI)-Victorious over
a recall movement, Mayor Orville'
L. Hubbard of suburban Dearborn
threatened his enemies yesterday
with various forms of punishment.
1. He announced Dearborn's

three newspapers will be cut off
from police news.
2. Declared a section of the city
which voted overwhelmingly
against him could be annexed by
any one of three neighboring com-
munities wanting it.
3. Said it is going to be tough to
get snow removal trucks into op-
position precincts between now
and spring.
While voicing his threats, how-
ever, the stormy Hubbard softened
a previous invitation to his politi-
cal enemies to get out of town.
Reminded of the "invitation" in
an interview, the 240-pound mayor,
said it really doesn't still hold,
adding: "This is a democracy.
Politics is fun, and nobody's going
to get hurt."
Hubbard's recall was asked on
petitions signed by more than 9,000'
voters, but he won the election
16,872 to 12,732 to assure comple-
tion of his fifth, two-year term.
T- __x*-__m1T

Nlorth

of

38th

Ba. y Thumbk
<:,,. :,f.:.,:<.} ,. JEFFERSON VILLE,
(hr-When 2-year-old
Sue Bailey tumbled
stool in her home ani
. ::";:,> :«>;::<::: > her thumb a chain react
in.
Her mother, Mrs. Her
Bailey, started to take
',' ' .the Clark County Hospi
4-year-old brother, Ron
-ran to open a storm d
..~> .. h bumped into the glass,
':it c,'",~ :.\_2 ti~y. ';R;:; ::;S:;:i::i his face.
}} Mrs. Bailey made he
. :;, .: #:;;r"; { :3 a, ' to the hospital with tI
.~children. As she wasa
h-0, , . ::~r"?:}} .; ^;.. ing thestpshe slippE
z011{ K <:. fell, fracturing an ankle
V Hospital employes ga
'up the three Baileys, too
.4 , inside and treated then

Parallel
UN Troops
VignaPush Back
from a
d broke"
tion set Communists
rbert M.
her to Allied Air Arm
ital. A
oad Lee, H rse
rand HarassesEnemy
cutting
TOKYO-(A')--A day-long bon-
er way bardment by the battleship Mis-
he two souri 170 miles north of the 38th
ascend- parallel was announced today as
ed and the Allies carried the fight to the
e. Reds in Korea by land, air and
athered sea.
ok them A quick rundown of the three-
way initiative:
NAVAL - The 45,000-ton "Big
ye Mo" yesterday blasted bridges and
-gjfgother targets at Tanchon on the
s northeast coast. To the south,
other warships shelled the big
e east coast port of Wonsan for the
seventh straight day.
GROUND - Counterattacking
leze Allied troops forced North Kor-
eans to withdraw in such haste
north of Chechon in east-central
- Walter Korea that they left behind their
IO Auto dead and supplies. Withdrawal
Price Di- above Chechon put the Reds on
the gov- the defensive all across the Kor-
order is ean peninsula.
can peo- AIR-Allied warplanes flew 875
sorties yesterday and spotted
ng what more enemy tanks than they have
proposing seen since mid-December. They
declared knocked out six and damaged
definitely three.
aovement Allied troops in the Chechon
area erased a deep dent in the
front.
r~n* * *:

'Mighty Mo' Pounds Reds

--Daily-Alan Reid
HANDY SUPPLEMENT-Taking a clue from the current movie,
"Born Yesterday," a University student consults Webster's as she
browses through the new copy of Gener&tion which will go on
sale today.
* *. * *
Second Issue of Generation
S on Campus Toda

Reuther
Governmi
Price Fre
WASHINGTON - EM)-
Reuther, president of C
Workers, last night told l
rector Michael V. DiSalle
ernment's price freeze
"a fraud upon the Ameri
ple."
DiSalle replied by aski
sacrifice Reuther is p
that labor make. DiSalle
the freeze order has "
slowed up the upward m
of prices."
s s
THEIR ARGUMENT tc
on a radio forum.
At one point DiSalle s
can't stop the rise of
suddenly, but "you have
ply the brakes gradual]
Herschel D. Newsom, n
the National Grange, rep
farmers, opposed any cl
the law to permit freezir
- 4 .M., L . - 11- 81.."

WASHINGTON - (/)-Regular
Army divisions will form the back-
bone of the Army under plans
which call for the release of about
233,800 National Guardsmen and
Reservists when they have com-
pleted their current federal duty.
The army's chief of training
and planning, Maj. Gen. Maxwell
Taylor, disclosed this yesterday.
He also said that no more Nation-
al Guard divisions than the six
now in service will be called un-
less the world situation forces
more complete military mobiliza-
tion.
THERE WAS no immediate ex-
planation of the effect of yester-
Philadelphia
Cop Denies,
Bribe Charge
WASHINGTON-()-George F.
Richardson, Philadelphia's Deputy
Police Superintendent, indignant-
ly denied before the Senate Crime
Investigating Committee yester-
day that he had ever accepted
gifts and hospitality from a big-
time gambler.
T h e gray-haired policeman
rushed down from Philadelphia to
challenge the testimony of Harry-
Rosen, once the city's numbers
racket boss, that he had showered
Richardson with expensive gifts
and entertained him at fancy
night spots.
* * *
"HE COULDN'T get near me'
with a millionndoars.y" Richard -

day's announcement on the pos-
sible use of Guard divisions over-
seas.
However, one Army official
said later he would not assume
that this precludes possible as-
signment of at least some of the
divisions to overseas duty.
Gen. Taylor said that 98,000
Guardsmen in units ranging from
small detachments to divisions
were on duty at the beginning of
this year. This total did not in-
clude about 19,800 Guard officers
and men who entered federal
service Jan. 16 with the 31st and
47th National Guard Divisions.
* * * *
EXISTING regulations provide
that Guardsmen and Reservists
serve 21 months. The Universal
Military Service Law now being
debated in Congress seeks to ex-
tend this service to 24 or 27
months.
Present laws also provide the
return of National Guard divisions'
as a whole to the states when they
have completed their federal serv-
ice. Gen. Taylor indicated yes-
terday that the Army expected to
retain the machinery and frame-
work of the six Guards divisions
even after the individual Guards-
men completed their service.
Asks Abolition
of StateGroup.
LANSING- (P)-- Abolition of
the Michigan Unemployment Com-
pensation Commission was re-
commended to the legislature yes-
terday by Commission Chairman
Tom Downs.

Generation, the publication
which describes all the major arts,
will go on sale today for the sec-
ond time this year.
Siegfried Feller, Grad., acting
managing editor, announces that
this issue will contain a new for-
mat with a separate section for
World ANewvs
Roundup
By The Associated Press
NEW ORLEANS-A grand jury
yesterday indicted criminal Sher-
iff John J. Grosch on five charges
of perjury.
The indictment climaxed an
Orleans Parish (county), grand
jury investigation following a
hearing here by the Kefauver com-
mittee before which Grosch and
his former wife, Fiola Grosch, gave
conflicting testimony.
TORQUAY, ENG. - Cyril
Maude, actor-manager w ho
gained fame in nearly half a
century on the British and
Americanstage, died at his
home yesterday.
He was 88 years old.
* * *
LONDON-The Labor Party de-
feated by seven votes last night a
Conservative motion censuring
Prime Minister Attlee's govern-
ment for its handling of the Afri-
can peanut-growing scheme.
The vote was 302 to 295.
*~ * *
CALCUTTA-Deaths from Cal-
cutta's raging smallpox epidemic
broke all known records to total
462 for the week ending Feb. 17,
it was reported yesterday.
This was an increase of 145 over
the previous week.

each art - non-fiction, fiction,
poetry, sculpture, drama, music
and ,fine arts.
EACH OF THESE sections will
be prefaced with a brief discussion
of the value of the art by college
students in hope that more stu-
dents will be encouraged to contri-
bute.
The idea 'of Generation was
conceived by members of Inter-
Arts Union in the fall semester
of 1949. This group sponsors a
festival each spring where cre-
ative writing and works of art
which students have done during
the year are displayed.
However, the Union felt that
some additional outlet for creative
work was needed, and so brought
the idea of an art magazine before
the Board in Control of Student
Publications.
The first issue, which came out
last ,spring, was a "tryout," but
was accepted with sufficient suc-
cess to merit further publication.
tate Contests
Phone Rate Hike
LANSING - OP)-Another legal
round was recorded yesterday in
the court fight against the rate
increase granted the Michigan
Bell Telephone Co. with no final
decision expected before next fall.
The State Public Service Com-
mission granted the company an
$8,200,000 annual rate jump effec-
tive last June 19.
The Attorney General's Office
is contesting the hike, claiming
the company already had suffi-
cient revenue. The company is
contesting it on the grounds that
it should get the $20,400,000 rate
increase it asked originally.

at what he called "lower

equitable" levels.
SAC Weighs
Bias Motion.
Four Student Legislators and
five affiliated representatives met
with the Student Affairs Commit-
tee for three hours yesterday to
discuss the SL motion setting a
time limit for the removal of bias
clauses from the constitution of
University organizations.
Following the presentation of
briefs by both groups, the SAC
questioned the representatives. No
decision was reached yesterday
but one SAC member predicted
that the SAC would vote on the
motion next Tuesday.
Arguing the SL's-case were Bill
McIntyre, '53, Tom Walsh, '51L,
Phyllis Jansma, '51E, and Don
Rothschild.
Speaking for t h e affiliated
groups were Mrs. Harold Kerr,
president of the Detroit Panhel-
lenic Association, Mrs. Warren
Cooke, representing the financial
advisors of the sororities, Jane
Topper, '51, Peter Johnston, '51
and Harry S. Slifer, secretary of
the Ann Arbor Alumni organiza-
tion.

)ok place
aid you
prices
to ap-
ly.",
naster of
aresentng
hange in
ng prices

than

NORTH KOREAN troops broke
and ran in the face of a tank and
artillery powered U.S. task force
which hammered out the dent,
once 10 miles deep.
The task force then !captured
Chuchon, 10 miles north of Che-
chon. The North Koreans in
their push,had closely menaced
Chechon, road and rail key to
any enemy advance into South
Korea.
A U.S. Tenth Corps briefing of-
ficer said the enemy was pulling
out of positions around Chuchon
which is 18 miles east southeast
of pivotal Wonju in the moun-
tains.
AIR OBSERVERS reported
sighting 20 Communist groups
ranging from 200 to 300 men
moving northward throughout the
day up snow-crusted mountain
trails.
These frontline developments
gave dramatic emphasis to Gen-
eral MacArthur's personal order
to field commanders to resume
the offensive against the Com-
munists.
MacArthur's order was given
during his 11th visit to the Kor-
ean war front yesterday for a
first hand inspection of the cen-
tral sector.
U.S. Planning,
Pacific Pact
For Defense
WASHINGTON-W)-The Uni-
ted States is considering a formal
defense alliance with Australia
and New Zealand as a start toward
a broad Pacific pact modeled after
the North Atlantic Defense
Treaty.
Britain, France and Portugal,
would be excluded, however, un-
der present planning because of
their "colonial" background.
A TRIANGULAR defense ar-
rangement with Australia and
New Zealand is now being dis-
cussed, it was learned, by John
Foster Dulles, Secretary of State
Acheson's Republican foreign pol-
icy advisor.
Dulles, who is now touring the
Pacific, already has talked this
possibility over with Gen. Mac-
..A41.. - - -A A - 'Mrti -

FRENCH WRITER MOURNED:
Gide Termed 'Contributor to World'

By DONNA HENDLEMAN
Andre, Gide will be remembered
as a vital contributor to the lit-
erary thinking of this century,'
three University professors agreed'
yesterday.
Commenting upon the death of
the noted French artist who died
Monday, the professors proclaimed
him a recorder of the artistic life
of the times, a writer of great
vitality and an outstanding artist.

ed, "Gide contributed not only to
French literature, but to the lit-
erature of the world. As such a
contributor, his outstanding char-
acteristics arej his essential skill,
his firankness and his tremendous
vitality.
* *
"HE IS, LIKE SHAW, an essense
of a national figure, but he trans-
cended the national sphere into
the international." he said.

Marc Denkinger of the French
department said.
* * *
"HE WAS A great literary ar-
tist who strove for a perfect sin-
cerity in acts and even motifs in
his writing."
Gide began writing in 1891,
and in his early works preached
a mystical purity. But he later
discarded orthodoxy, and be-

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