NTROVERSIAL
REPORTER
Y
LwFA6
Dzzitr
FAIR AND
WARMER
See Page 2
VOL. LVI, No. 21S ANN ARBOR, MICHIGAN, THURSDAY, AUGUST 1, 1946
PRICE FIVE CENTS
G-Men Investigating
KKK in Seven States
Justice Department Promises Swift
Prosecution If Federal Laws Violated
o lotov Urges Action on Franco;
Brita in Okays Pa lestin e Div ision
WASHINGTON, July 31-MP)-G-
Men are investigating the Ku Klux
Klan in seven states, the Justice De-
partment disclosed today.
The inquiry, directed by Attorney
General Clark, a Texan, is being con-
ducted by the Department's civil
rights section assisted by the FBI.
The seventstates are: New York,
Michigan, Tennessee, Florida, Calif-
ornia, Mississippi and Georgia.
The Department promised swift
criminal prosecution if violations of
Latin American
Students Uphold
Peron Regime
United States Blamed
For Argentine Stand
The stand taken by Argentina un-
der Peron was favored yesterday by
a Colombian and two Ecuadorian
students here,,who stated they also
believed this to be the general opin-
ion among Latin American students
on campus.
The three students explained that
'they don't like Peron too well as a
man, but they admire the things he
has done for Argentina, his socialized
program and wage raises. He is, one
declared emphatically,' a "great dip-
lomat."
Although he is backed by the work-
ers and the army, there is in the
country a large party against him,
but even his enemies voted for him
in the last election, they asserted,
just to "show the United States."
They termed Peron's election the
"fault of the United States."
The three accused the United
States Qf trying to back with money
the man it wanted as president, but,
they said, "it didn't work in Argen-
tina," the only Latin American coun-
try to make "so. much trouble for us.
The Argentine government, they
pointed out, has been like that of
the United States, in wishing to act
as it saw fit for the good of its people,
without foreign interference. Argen-
tina is the first of the "Latin Amer-
ican children" to grow up.
"You can't call them Nazis," they
protested. "The people are just like
those of the United States - a mixed
population, proud of themselves and
confident they have a great country."
State Expects
Record College
Vet Enrollment
LANSING, July 31-(P)-Col. Phil-
ip C. Pack, director of the State Of-
fice of Veterans' Afiirs (OVA) today
announced that 52,727 war veterans
are expected to enroll in college and
training programs in Michigan under
the GI Bill of Rights in September.
A survey has revealed that only
3,814 of last year's 33,400 enrollment
had dropped out of classes, Pack said.
A war veteran enrollment of 9,000
is expected at University of Mich-
igan, he said. Michigan State col-
lege anticipates 6,000 vet students.
Enrollment at other Michigan col-
leges is expected to be as follows:
Adrian, 150; Albion, 425; Alma,
150; Central Michigan College - of
Education, 600; Hillsdale, 150; Hope,
546; Kalamazoo, 250; Michigan Col-
lege of Mining and Technology,
1,000; Michigan State Normal, 600;
Northern Michigan College of Edu-
cation, 300; Olivet, 25; University of
Detroit, 3,000; Wayne University,
5,200.
Pack said that junior colleges
throughout the state expect a com-
bined vet enrollment of 2,190.
Increased interest of veterans in
flying schools had also been indi-
cated, Pack said. Whereas 3,510 are
now enrolled, 6,350 will be taking
flying instruction under the GI Bill.
in September, it is predicted.
Business School
Admits 800
The School of Business Adminis-
tration has admitted over 800 stu-
dents for the fall term, and is now
accepting only returning students,
Prof. H. F. Taggart said yesterday.
federal laws are uncovered. And if
Federal statutes do not cover any
criminal acts which may be dis-
covered, the evidence will 'be turned
over to state authorities where they
request it.
The government is concerned prin-
cipally with possible violations of
Federal election laws and of two
civil rights statutes. One of these
makes it illegal to conspire to deprive
a person of his civil rights. The other
makes it a Federal offense for any
state official, such as a deputy sher-
iff, to use his official power in such
a way as to deprive an individual of
rights guaranteed by the Constitu,
tion.
Although an investigation now is
confined to seven states, complaints
are pouring in from all sections of
the country about renewed Klan ac-
tivities, the Department said. It
added that this does not necessarily
The campus AVC chapter yes-
terday passed a resolution com-
mending Attorney General Tom
Clark for his strong stand in the
investigation of the Georgia
lynchings and in letters to the
President and the Attorney Gen-
eral asked that "no stone be left
unturned in locating and punish-
ing the perpetrators of this des-
picable crime.
indicate that the hooded order is
operating throughout the nation
since many complaints from the
North and West are directed against
alleged Klan activities in the South.
Willow Villaae
Vets Protest
Bus Fare Rise
Representatives of the AVC, Amer-
ican LegionVFW, and the Amvets
met at Willow Village last night to
protest against the threatened can-
cellation of a state subsidy for bus
service between Willow Village and
Detroit, which would increase the
veterans' fares from 10 cents to 75
cents.
Keynoting the meeting, Neil Hol-
land, state adjutant of Amvets, said
that removal of thesubsidy as pro-
posed by Col. Philip C. Pack, director
of the state office of Veterans Af-
fairs, would force many veterans liv-
ing in Willow Village and working or
studying in the Detroit'area to leave
their homes.
The veterans organized a repre-
sentative committee which will go to
Lansing to confer personally with
Governor Kelly on the matter. Urg-
ing unified action, William Dwyer,
chairman of the meeting, called for
the full support by the group in a
postcard and petition campaign to
Governor Kelly. Resolutions asking
for the continuance of the subsidy
were passed.
In a letter to heads of veterans
groups earlier in the day, Col. Pack
had claimed that the bus service had
been abused and that many non-
veterans were receiving the reduced
fares. According to Col. Pack, the
"veterans"using the linewe emost-
ly wives and children of the veterans
going shopping in Detroit. The sub-
sidy for the month of June amounted
to $12,000.
Charles Edgecomb of the Detroit
Housing Commission, who spoke sec-
ond on the program, brought out the
fact that because of the acute hous-
ing shortage the veterans would have
no place to go if forced to leave the
Village.
* * *
* * *
Plan Proposes
Arab, Jewish
Ruled Zones
U.S. Cooperation
Declared Essential
By The Associated Press,
LONDON, July 31-Britain an-
nounced today conditional approval
of a plan to divide Palestine into
four federal provinces, permit the
immediate entry of 100,000 Jews, and
provide American aid to finance Arab
Economic Development.
The plan, devised by British-Amer-
ican experts, would create a Jewish-
dominated zone, an Arab-dominated
zone, and two zones administered by
the British-controlled central gov-
ernment. Deputy Prime Minister
Herbert Morrison said it might lead
to a trusteeship for Palestine.
He declared American cooperation
was essential to put the plan as a
whole into effect, and said the dele-
gation of American experts had ac-
cepted it unanimously.
The plan suggests a "substantial
grant" of American money for Arab
economic development in Palestine
and the Near East. The figure was
not specified, but the British press
estimated it at $300,000,000.
Each province 'could set its own
immigration figures, and the experts
said this would permit the influx of
100,000 European Jews. The Jewish
province could admit Jewish immi-
grants, and the Arab province ex-
clude them. The United States would
be required to arrange sea transpor-
tation for 100,000 Jews to Palestine.
Morrison said Britain had hoped
for quick acceptance of the proposals
by President Truman, who this af-
ternoon asked the American cabinet
committee in London to return for
a detailed review of the whole Pales-
tine question. 1-1
higher Bread,
Flour Prices
To Be Sought
WASHINGTON, July 31-(P)-A
recommendation for a cent-a-loaf
bread increase and higher flour prices
will be submitted to OPA Adminis-
trator Paul Porter tomorrow, a gov-
ernment official said tonight.
This official, who may not be iden-
tified by name, said the recommen-
dation is based on a tentative deci-
sion against restoration of the flour
subsidy at this time.
Meanwhile, the new price decontrol
board announced that it expects to
begin public hearing by Aug. 21 on
the question of whether price ceilings
should be reestablished Aug. 21 on
meats, dairy products, grains, cotton
seed and soy beans.
The recommendation on bread and
flour was prepared by OPA food-
price officials.
Lecture on Nutrition
At Rackham Today
Prof. Howard B. Lewis, chairman
of the biological chemistry depart-
ment and director of the College of
Pharmacy, will speak on "Nutrition"
at 4:10 p.m. today in Rakham Am-
phitheatre as part of the summer lec-
ture series, "Social Implications of
Modern Science."
Byrnes Agrees to Two-Thirds
Majority Vote at Conferene
Russian Minister Warns That "Perparations
For Fresh Acts of Aggression Are Underway"
By The Associated Press
PARIS, July 31- Soviet Foreign Minister V. M. Molotov warned the
21-nation Peace Conference today that "preparations for fresh acts of
aggression" were underway, and declared the wartime allies against fascism
must act soon against the Franco regime in Spain -"this survival bred by
Hitler and Mussolini."
The Russian statesman addressed the Conference soon after it became
'!
BYRNES ADDRESSES CONFERENCE - James F. Byrnes (left), Unit-
ed States Secretary of State, addresses 1,500 delegates to the 21-nation
peace conference in Luxembourg Palace in Paris. Seated at right is
Jefferson Caffery, U.S. ambassador to France.
Action on CoffeeStayed
BySta tutk ofL im ita tin
WASHINGTON, July 31-(P) -
James P. McGranery, assistant to the
Attorney General, told the Senate
War Investigating Committee today
that the case of a defense contrac-
tor's $2,500 payment to Rep. Coffee
(Dem., Wash.) would have been laid
before a grand jury but for the stat-
ute of limitations.
Meanwhile there were fresh reper-
cussions from the committee's in-
quiry into the Garsson munitions
combine, suspended temporarily dur-
ing the Coffee hearings:
1. Senator Mitchell (Dem., Wash.)
of the committee declared in a speech
for delivery on the Senate floor that
the military services "must make ap-
propriate punitive measures against
officers who are easy in morals and
careless in administration. The mili-
tary uniform, in too many instances,
Prof. Slichter
Cites Need for
Social Scienice
Special types of knowledge in the
social science fields must be devel-
oped so that the common good will
be placed first when technology forc-
es changes in policy, Prof. Sumner
H. Slichter, Harvard University econ-
omist said yesterday.
He emphasized the need for wis-
dom on the part of policy-making
groups such as unions, communities
and government, if we are to achieve
the fullest benefit of scientific ad-
vances.
Speaking in the "Social Implica-
tions of Modern Science" lecture
series, Prof. Slichter stated, "We are
a nation of hired employes-dependent
on large industries which are no
longer in touch with the community
and the individual. The need has
arisen for a new generation of ad-
ministrators to narrow this gap, and
to unify common interests."
Never before in history has there
been an economy in which the
majority are free employees, he said.
Since narrowly-oriented administra-
tive experts have lost touch with the
"common interest" of the community
as a whole, they must be replaced by
men trained more extensively in the
social sciences.
*4* *
Truman Blamed
For Price Rise
"I would 'pin responsibility' for
rising labor costs which are behind
the current inflationary trend on
President Truman," Dr. Sumner H.
Slichter, noted labor economist, told
a Daily reporter yesterday.
"Mr. Truman is responsible for
has been changed from a cloak of
honor and duty to a cloak of incon-
venience and irresponsibility."
2. Erie Basin Metal Products, Inc.,
a major Garsson unit, acknowledged
"tangible net worth" of $11,832 for
its fiscal year ended Nov. 30, 1943,
when the War Department contends
it made $1,270,000 in "excessive pro-
fits." The company's statement' con-
tended, however, that the net worth
figure "does not properly reflect the
funds invested in and made available
in a U.S. Tax Court suit to bar the
government from collecting a re-
fund.
The payment to Coffee-which the,
Congressman insists was a campaign
contribution and which the con-
tractor, Eivind Anderson of Tacoma,
Wash., declared was for "services'-
was made five years ago.
McGranery testified that the
transaction first came to his atten-
tion last March but then it was too.
late to proceed on account of a law
barring prosecutions after three
years.
Otherwise, he declared, he would
have submitted the .evidence to a
Grand Jury. He did not particularize
as to what law might have been vio+
lated or against whom charges might
have been filed.
Legislature Meet
The Varsity Committee of the
Student Legislature will meet at
7:30 p.m. today in Rm. 306 of the
Union. All members must attend
and reports of all committee ac-
tivity will be expected.
known that the United States would
Furlough Pay
.Bill Passed
By 'Congress'
Former Enlisted Men
{To Be Paid in Bonds
WASHINGTON, July 31 -(AP) -
Amid bitter denunciation of the
bond-payment provision, the House;
sent to President Truman today the
$3,000,000,000 G.I. Furlough Pay Bill.
Passage of the compromise meas-
ure, on which the House yielded to
Senate insistence that the bulk of
the payments be made in bonds pay-
able in five years, was by voice vote
and followed demands that the next
Congress make the bonds cashablo
at once.
The legislation gives present and
former enlisted personnel of the
armed forces the same consideration,
that officers now receive in the mat-
ter of payment for furlough time not
actually received - with the differ-
ence that officers receive theirs. in
cash and the G.V.s will get bonds
unless their payments are below $50.
It provides for payment up to 120
days of accrued furlough. time at the
rate of two and one-half days for
each month of service. Payments
are to be at the rate of base pay and
longevity received at the time of dis-
charge, plus a minimum subsistence
allowance of 70 cents a day and an
additional $1.25 a day for sergeants
and some technicians with depen-
dents.
All enlisted personnel of the Army,
the Navy, the Marine Corps and the
Coast Guard who have served at any
time since September 8, 1939, will
receive the payments for the fur-
lough. time to which they were en-
titled but which they did not recenve.
An estimated 16,000,000 past and
present enlisted men and women will
be eligible for the compensation,
which the House was told would cost
an aggregate of $3,000,000,000.
Payments will be in cash to men
whose benefits do not exceed $50, to
those discharged prior to January 1,
1943, and to the estates of those who
have died since their discharge.
All others will be paid in special
bonds bearing two and one-half per-
cent interest annually and maturing
five years after the date of discharge.
For some men the maturity date will
be next year.
support the Soviet Union in its ef-
fort to establish a two-thirds voting
majority as the standard for reach-
ing decisions in this conference
Molotov Receives Applause
His address to a plenary session
was welcomed by generous applause
and climaxed a day which began with
sharp debate in the rules committee
over the two-thirds rule.
The United States and the Soviet
Union stood firm= for the two-thirds
majority in all essential substance
matters, and Secretary of State
Byrnes will make a proposal to that
effect to the rules committee tomor-
row morning.
It will, however, carry this proviso:
that in the event any substantive
proposal, fails to secure a two-thirds
majority in the Assembly, it should
be sent back to the Big Four Council
of Foreign Ministers, along with the
record of the vote and a request that
it be given special consideration by
the Big Four.
strikes at Franco
Molotov's address expressed hopes
for future peace, but he struck out
hard at the Spanish regime of Gen-
eralissimo Francisco Franco.
"The time must not be too distant,"
he declared, "when democratic coun-
tries will be able to help the Spanish
people, who groan under Franco's
regime, to put an end to this survival
bred by Hitler and Mussolini, which
is dangerous to the cause of peace."
Speaking in Russian, he said the
nations which went to war on the
side of Hitler must be punished for
"crimes of their ruling circles."'
Soviet 'Menace'
Laid to Weak
Statesmanshi
WASHINGTON, July 31-(A)-
Senator Wherry' (Rep., Neb.), told
the Senate today that "weakness" in
the State Department had led to Rus-
sia's becoming "a real menace" to
peace.
His speech drew prompt replies.
from Senators Connally (Dem., Tex.),
and Vandenberg (Rep., Mich.). Both
argued that Secretary of State Byrnes
should have united American sup-
port at the Paris Peace Conference.
Wherry declared:
"Russia has become a real menace
to the peace and security of the
world.
"But Russia could never have
reached this stage in her aggression
had it not been for the weakness of
the State Department policy."
Wherry contended that Under-
secretary Dean Acheson is "unsuited"
for his office. Also, he continued, the
Department and Assistant Secretary
Spruille Braden have been "destroy-
ing the very roots of our Good Neigh-
bor Policy" and in the Far Vast "our
policies are selling out the Chinese
to the Communists."
A nti-Ger man
French Film
TTo egin Tdy
"Heart of a Nation," the French
film which the Nazis attempted to
destroy, will be shown at 8:30 p.m.
today in the Rackham Amphitheatre
under the auspices of the Art Cinema
League.
Because the film portrays the heart
of the French nation - the lower
middle class family of France with
its attitudes, loyalties and prejudices,
during a period of three wars against
the Germans, the film was considered
incendiary by the Nazis, who at-
GERMAN REPARATIONS:
Economist Questions Wisdom
Of Pauley's Recommendation,
SECOND SHOW TODAY:
'Angel Street' Leading Roles
Played by Murzek And Cooper
* * *
Dorothy Murzek and Hal Cooper,
are playing the leading roles of Mr.
and Mrs. Cunningham in "Angel
Street," the Department of Speech
Repertory Play which is in its second
showing today.
Miss Murzek played leading roles
in "Blythe Spirit," "Skin of Our
Teeth," and was Emma in the first of
this season's repertory productions,
"Papa Is All."
Others in the cast of "Angel
Street" are Robert Bouwsma who is
nlinLY R~7I11( t ~tfl4 +la A~grnitP Tiliv~
By ELINOR MOXNESS
It is probable that only an overall
political agreement will solve the
German reparations problem, Phillip
Brown, visiting lecturer in the eco-
nomics department, said yesterday.
Commenting on the Pauley report
on reparations, Brown stated that
he questioned the wisdom of Pauley's
major recommendation that we hold
off delivery of German reparations
to Russia until Russia justifies her
seizure of industries in Manchuria.
Carrying out the Potsdam agreement
on reparations, hesaidhwould pro-
bably tend to make the political
agreement a little easier.
Payments Stalled
So far, he explained, we have stal-
led on payments because we said Rus-
sia was not carrying out her agree-
ments on inter-zone trade and a
central administration for Germany,
but it is France more than Russia
equipment, which would be used for
reparations, is situated. We, he said,
are paying'the price for not having
had an occupation policy and for not
restoring economic activity.
Opposing Attitudes Noted
There is he pointed out, a funda-
mental difference between the atti-
tude toward reparations taken by the
United States and that of Russia. The
Russians think harsh reparations are
justified because they suffered more
real damage in the war, because they
themselves have a low standard of
living and think that if th~ey can
take it, so can Germany, and lastly
because they are "sore"~ about our
not reaching an agreement on a poli-
tical settlement. The United States,
on the other hand, is interested in
using reparations as a bargaining
weapon for peace.
If Pauley and others are really in-
\ ' ..