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- \ ' ..