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August 04, 1946 - Image 1

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Michigan Daily, 1946-08-04

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VOL. LVI, NO. 24 ANN ARBOR, MICHIGAN, SUNDAY,' AUGUST 4, 1946

PRICE FIVE CENTS

UN Entry,
s ought
By Irish
Other Nations Are
Under Consideration
By Security Council
By The Associated Press
NEW YORK, Aug. 3-Ireland ap-
plied tonight for membership in the
United Nations, becoming the fifth'
country to take such action since the
world agency got underway with its
51 charter members.
The application came in a terse
cable from Prime Minister Eamon De
Valera, who said, "Ireland is pre-
pared to accept obligations contained
in the charter of the United Na-
tions."
Another request was expected mo-
mentarily from Iceland. Bids from
Albania, Outer Mongolia, Afghan-
istan and Trans-Jordan already are
under consideration by a Security
Council Committee.
Irish Vote Unanimous
De Valera acted under a recent
unanimous vote in the Irish Parlia-
ment and said at the time that Great
Britain would support the bid. A
British spokesman here tonight con-
firmed that fact and there was no
indication of any opposition to the
request.
The Prime Minister said he be-
lieved Ireland would have a better
chance of avoiding future war by
joining the U.N., which he described
as "not so 'valuable as it might be,
but the best that can be got at the
moment." Ireland did not take part
in World War II.
Committee Disagrees over Procedure
The Irisl application ca e in the
midst of considerable wrangling in
the membership committee over pro-
cedure in handling the requests. Sev-
eral delegations; including the U.S.
and Great Britain, indicated they
would oppose a. final vote on. the
first applicant -- Albania - pending
study of all the others. Some dele-
gates expressed belief that Russia
might insist on an early ballot.
A significant factor was Russia's
strong support of Albania, whose
government London does not recog-
nize. On the other hand Britain is
backing Trans-Jordah, which has
been criticized in the Soviet press.
The committee will go back into
session Monday and must report to
the council Aug. 20.
U.S. Accuses
2 Russians of
SPY Activties
AA 6
'Treated As Criminals,'
Say Russian Soldiers
By The Associated Press
FRANKFURT, Germany, Aug. 3-
The U.S. Army announced tonight
that two of the three Russian soldiers
recently released by U.S. authorities
in Berlin had forced German em-
ployes of the army to deliver secret
American documents and had en-
gaged in "clandestine activities" in
the U.S. sector.
At the same time in Berlin, the
three soldiers in question charged
that they were "treated like crim-
inals" during their detention in the
American zone, and that the Amer-
icans attempted to force one of them
"to betray his country and become an

American citizen."
Brig. Gen. Edwin L. Sibert, chief
of U.S. intelligence in Europe, said
the two officers, Lts. Sedov and
Schulkin, were wearing civilian
clothing when they and their driver,
Pvt. Kuznetsov, were arrested in the
American sector of Berlin.
CAMPUS EVENTS
THE THIRD IN A SERIES of
chamber music concerts will be pre-
sented at 8:30 p.m. today in the
Rackham Lecture Hall.
Faculty and guest faculty members
of the School of Music participating
will be Gilbert Ross and Lois Porter,
violinists, Louise Rood, violist, Oliver
Edel, cellist and Lee Pattison, pian-
ist.
The program will include "Quar-
tet on a Folk Theme," by Ross Lee
Finney, Schubert's Quartet Move-
ment in C minor," and "Quintet," Op.
57, by Shostakovich.
* * *
DR. EDWARD N. PALMER, pro-
fessor of sociology at Fisk University,

NEW AMBASSADOR IN CHINA-Dr. J. Leighton Stuart, left, new
U.S. ambassador in China, stands with Generalissimo Chiang Kai-Shek,
center, and U.S. General George C. Marshall, right, after presenting his
credentials at a ceremony at Chiang's summer home in Kuling, China.
Others are unidentified.
* * * * * *
" " "
Ghiang-Finds Solution
Tno Ch inese Cvil trife

N

NANKING, Aug. 3-(IP)-Govern-
ment agencies boasted today that
Generalissimo Chiang Kai-Shek had
suddenly found a solution for China's
civil strife while government and
Communist quarters quarreled over
the circumstances of yesterday's aeri-
al bombing of Yenan, Communist
headquarters.
The government acknowledged the
bombing but said it was directed sole-
ly at a grounded government plane
which the Communists refused to
return. The Communists admitted
the plane was destroyed but said their
Board Hearings
Scheduled 'for
Police Tuesday
Mortenson, Gehringer
Face Bribery Charges
Removal hearings for Chief Sher-
man H. Mortenson and Detective Lt.
Eugene L. Gehringer, suspended Ann
Arbor police officials, are scheduled
to begin Tuesday.
Mortenson and Gehringer will ap-
pear before a three-man police com-
mission in the city council chambers
to answer charges of accepting bribes
and protecting gambling interests.
Some 39 prosecution witnesses,
named by Special Prosecutor Wil-
liam D. Brusstar, will be called to
testify against the deposed officials.
The list includes 18 present or for-
mer 'members of the police force,
forner Mayor Walter C. Sadler, City
Clerk Fred C. Perry and County
Treasurer Clyde D. Fleming.
Both officers were removed last
June 11 by the police commission as
a result of a recommendation made
in a report by Circuit Judge James
R. Breakey, Jr. The report charged
Mortenson and Gehringer with the
following alleged offenses:
1. That they accepted protection
money.
2. That they knowingly allowed
hose race bookies, numbers rackets,
and professionally operated card
games to flourish.
3. That they discouraged appre-
hension of gambling violators and re-
frained from taking action.
4. That funds from an alleged
bookie located in the United Cigar
Store, operated by Wilson Haight
and Vernon Maulbetsch, were de-
posited in the police department safe
overnight for safekeeping.
The report is an offshoot of a one-
man grand jury investigation of an
alleged million dollar gambling racket
in Washtenaw County which began
in October 1941 and was re-estab-
lished in June 1945 by Judge Break-
ey after the death of Circuit Judge
George W. Sample. In 13 months the
investigation has resulted in the in-
dictment of 24 persons on gambling
conspiracy charges. More than 6.500
pages of testimony have been pro-
vided by 160 witnesses.
Most important of the indictments
is the pending examination of Haight
and Maulbetsch, accused of operat-
ing a horse racing bookie in their
cigar store at 118 E. Huron. It is esti-
mated that receipts from their al-
leged bookie totalled as much as
$3,000 per day.

military headquarters also was at-
tacked.
The nature of Chiang's last-minute
formula for peace was not disclosed
by the government central news agen-
cy, which announced it. However,
General Marshall, special U.S. en-
voy, flew hurriedly to the summer
capital of Kuling to confer with the
generalissimo.
"I know President Chiang has
found a ready solution, a political
solution, at'that-not one based on
fiorce," the government agency quoted
Minister of Information Peng Hsueh-
Pei as saying at Kuling.
Central News, without divulging
any details of the Chiang formula,
said it would take time and counsel-
ed patience.
"President: Chiang Kai-Shek . is
more eager than anyone else to untie
the present political knot and he
knows how to do it."
If Chiang had a solution, it was
in the nick of time, because the
Communist reaction to the Yenan
bombing was quick and angry.
"This broadens the scope of the
civil war," declared Gen. Chou En-
Lai, head of the Communist delega-
tion in Nanking. He added that he
took a "very serious view" of the
attack.
Communist spokesman Wang Ping-
Nan told newsmen civil war had.
reached a new stage because of the
attack on Yenan.
Spaak Blasts
Large Powers
PARIS, Aug. 3-(i)-Paul Henri
Spaak of Belgium assailed the Big
Four today for ignoring the smaller
nations in preparing Europe's peace
and for asking the smaller powers
for recommendations only after se-
verely handicapping them.
The outburst from the president of
the United Nations General Assembly
highlighted the day's proceedings in
the peace conference.
In another phase of the battle be-
tween the big and small powers, the
Big Four won out by a vote of 12 to
8 when the all-powerful Rules Com-
mittee approved a decision to rotate
the conference chairmanship.
Meanwhile, Greece demanded slices
of Bulgarian and Albanian territory
and served notice on the peace con-
ference that she expects reparations
for the "material damage inflicted
upon the country" by Italy and other
invaders.

Apartment
Policy Told
B Bursley
Construction Is For
Married Veterans
The priority policy of admission
into the much-sought after student
and faculty veteran apartment
buildings now being constructed on
University Terrace was announced
yesterday by Dean of Students Jo-
seph A. Burley.
Applications for the twelve apart-
ment buildings, planned to house 282
veterans families, including at least
50 faculty veterans, have been closed.
University officials declined to reveal
the exact number of applications re-
ceived, but admitted that amount
greatly exceeded the space available.
Rents Announced
Rental fees for the apartments,
based on a self-liquidation plan and
determined by the costs of construc-
tion, furnishings, equipment, oper-
ation and maintenance, will range
from $55.00 to $60.00 monthly. All
utilities and furnishings will be in-
cluded. Rents are higher than were
expected because of spiralling con-
struction costs.
Plans for the construction of four
more buildings to house 96 veterans,
in addition to the eight buildings
with 176 apartments originally plan-
ned, have been announced by Vice-
President Robert P. Briggs.
Ready Next Month
Apartments in four of the new
buildings are expected to be ready
for occupancy at the beginning of
the fall semester in late September,
the remainder to be available by the
scond semester.
The priority policy by which as-
signment to the apartments is being
made was set up by the Board of Gov-
ernors of Residence Halls in confer-
ence with many veterans and their
representatives.
Priority has been given, according
to Dean Bursley, to full-time stu-
dents who are veterans and are resi-
dents of Michigan under the Regents'
interpretation. Within this group
priority has been based on length of
service in the armed forces excluding
time spent in colelge in such units as
the A.S.T.P. and V-12.
Distribution Determined
One-half of the apartments to be
asigned to undergraduates in the
junior and senior classes and the re-
mainder to be distributed equally be-
tween professional and graduate
school students.
Cost of labor and materials have
forced a higher rental fee than the
University had intended to charge,
but which could not be avoided, ac-
cording to the business office.
Each apartment will be leased for
a period of one year, according to
Francis Shiels, Director of Residenct.
Halls. A student veteran may renew
his lease for a second year, but no
longer, and then only in ease he
maintains a satisfactory record in
the University.
Ex-GI's Mass
At JailnArsenal
ATHENS Tenn., Aug. 3-(P)-
Rumors that ousted officers were
planning to fight their way back
into the city tonight converted the
McMinn County Jail into a miniature
arsenal manned by ex-soldiers.
The ex-GI's flocked with guns and
ammunition to the jail and court-
house, centers of the bloody, battle
election night between GI candidates
and Sheriff Pat Mansfield's deputies.

The Rev. Bernie Hampton, minis-
ter heading.a committee of vigilan-
tes charged with maintaining order,
said an unauthorized announcement
over the local radio station caused
the GI's, wnners in both the election
and six-hour gun batle, to reassem-
ble.

Wallace Claims
U.S. Is Destined
For Deressio

SFJanuary Budget Figures
.For Fiscal 1947 Revised

Liberalized Veteran Benefits,
Reduce Likelihood of Surplus,

Pay Increases
President Says

Full Employment Due
To Inflation Pressure
By The Associated Press
WASHINGTON, Aug. 3-Secre-
tary of Commerce Henry' A. Wallace
said today the nation already is
bound on a "boom and bust" econo-
mic ride and present-day full em-
ployment can't last long.
He conceded that the postwar goal
outlined in his book "Sixty Million
Jobs" is now achieved numerically,
but he said it is due to inflationary
pressure and has none of the stabil-
ity he advocated for an enduring
prosperity.
Wallace told a reporter that the
United States is well along the in-
flationary road it traveled after the
first World War though he felt sure
that careful planning can cushion
the shock he feels is coming.
"I feel that the bust following the
boom will not be as bad as some
economists think," the former Vice-
President declared.
This is what Wallace sees ahead:
1. A temporary "boom of con-
siderable proportions, lasting maybe
a year or even two years," with
steadily rising employment, prices,
inventories and plant investment.
2. An inevitable "bust" or read-
justment, with declining employment,
production and purchasing power.
3. A period of the kind "some peo-
ple like to think of as normal," but
with purchasing power and demand
for goods weaker than he thinks they
should be and prices "favoring the
stronger, more favorably-situated in-
dustries."
It is when the nation enters this
third stage, Wallace said, that the
issue of full employment will become
most vital in order to keep money
in consumers' pockets and business
financed without "depending on a
high volume of deficit spending by
the government."
Peron Won by
Wage 'Promises
Student Says
Disagreement with the three Latin-
American students who last week ex-
pressed feelings favorable to Peron's
policy in Argentina was voiced yes-
terday by an Argentine student here.
Peron, he said, won the election
not because of his Fascist tendencies
nor because people were voting
against the United States by voting
for him, but because of the wage
raises he promised the people. These
wage raises are "only a way of con-
trolling the workers," the student
said.
Furthermore, he stated, wage raises
do not in themselves mean "some-
thing good," for Hitler and Musso-
lini gave wage raises also, and Ar-
gentina's high prices more than cover
the increased wages.
Elected by 'Anti-Capitalist' Workers
A majority of the 55 per cent of
the people who elected Peron were
workers, he explained, not Fascist,
but democratic workers who take on
the whole an anti-capitalist stand.
Peron is "tied up with these people
who voted him in," he said, and while
there is 'no doubt' that Peron is plan-
ning a Fascist program, he will have
to have another revolution to put it
into effect, for the people who voted
for him when he promised wage in-
creases won't follow him to Fascism."
U.S. Should Not Intervene
Discussing the future, the Argen-
tine student stated that it is of the
utmost importance that the United
States maintain a "consistent demo-
cratic policy, non-imperialistic and,
above all, not using economic pres-
sure as a weapon." Potentially at

least, he continued, Peron is a men-
ace, because of his fascist leanings
and his ability to coerce other South

By The Associated Press
Here are the box-score figures in President Truman's revised budget
estimates for fiscal 1947 and comparisons with the estimates he made in
January:
Expenditures--$41,500,000,000, up $5,500,000,000 from January.
Receipts-$39,600,000,000, up $8,100,000,000.
Deficits $1,900,000,000, down $2,600,000,000.
WASHINGTON, Aug. 3-President Truman forecast tonight that a
boom-time flood of tax collections he hadn't counted on before would wash
out much of the deficit for the current fiscal year.
Thus he pinned his hopes on business prosperity and high level employ-
__ment - which automatically bring

Unexpected 'Flood of Tax

Collections' Will

RABBI BERNARD HELLER .--
Religious writer and former cam-
pus Hillel director, who will lead
the Palestine forum tonight in the
Rackham Amphitheatre,
* * *
Rabbi Heller To
Discuss Unrest
In Palestine.
The current unrest in Palestine
will be discussed by Rabbi Bernard
Heller, former director of the Uni-
versity's Hillel foundation, at 8:15
p.m. today in the Rackham Amphi-
theatre.
Rabbi Heller has devoted his time
since leaving Ann Arbor to the im-
provement of inter-racial relation-
ships. He has recently served as civ-
ilian chaplain in the Boston Har-
bor Defense Area, and is now engaged,
with other scholars in examining
textbooks in an effort to eliminate
from them, portions tending to fos-
ter racial and religious prejudices-
a project sponsored by the National
Conference of Christians and Jews.
Rabbi Heller is author of "Ody-
ssey of a Faith," "A Harvest of
Weeds" and countless monographs
printed in the Michigan Alumnus
Quarterly titled "A Disease with
Many Symptoms," "With Malice
Toward None," "A Perenniel Pattern
of Prejudice," "The Comradeship of
Faiths," and "The Jews in Early
America."
The Religious Book Club said of
Rabbi Heller's "The Odyssey of a
Faith," "It would be impossible to
suggest a more satisfactory book for
non-Jews."

HA ve

Def icit, Truman Predicts

higher tax collections-to better the
heavily indebted government's posi-
tion.
He bolstered those hopes with eco-
nomy orders to Federal agencieq
that could tighten the strings of the
Federal purse to the ,point of affect-
ing veterans and the 48 states.
Boosting both revenue and spend-
ing estimates above the peacetime
record figures he issued seven months
ago, the President said it now appears
the government will go into the red
by $1,900,000,000 for the fiscal year
ending June 30, 1947.
Less Than Half Deficit Forseen
That is less than half the $4,500;-
000,000 deflicit he foresaw last Jan-
uary, due mainly to the sudden rais-
ing of receipts estimated by a solid
$8,100,000,000 to an unprecedented
peacetime total of 39,600,000,000.
That jump in the prospective tax
take, he added, would have bal-
anced the fiscal 1947 budget and pro-
vided a surplus, too, if Congress had-
n't voted-with some degree of Pres-
idential approval-measures adding
$4-00,000,000 to earlier expenditure
estimates.
The President set out the cost of
that legislation, expressed in bil-
lions of dollars, as: terminal leave
pay, $2.4; increased pay for miltary
personnel, $0.6; Philippine war dam-
age and rehabilitation, $0.1; Phili-
pine loan, $0.1; increased veterans
defense housing, net of receipts, $0.2;
post office department pay increase,
$0.2.
Philippine Items Recommended
Of those measures, the President
recommended only the two Philippine
items. But he did not make any fight
on others, and he put no blame on
Congress for upsetting his budget by
passing them.
Still further additions arising from
program expansions and from out-
lays deferred from fiscal 1946 gave
a net lift, after offsets, of 35,500,000,-
000 to last January's spending esti-
mate and sent the revised total to
the peacetime record of $41,500,000,-
000.
Claim Importation
Of Jewish Fighters
ROME, Aug. 3-M )-The Jews are
importing "fighting men" into the
Holy Land, a five-man Arab dele-
gation told Pope Pius XII today.
Joseph Sanyoun, spokesman for
the delegation sent to place the
Arab case in Palestine before the
Pontiff, said the Pope appeared
"deeply uneasy" over the situation"
and expressed his willingness to use
all means within his power to see
"justice and peace prevail in Pales-
tine."

PU' Symphony Orchestra Will
Give Summer Concert Tuesday

Porter Claims Buyers' Strikes
Will Not Give Economic Balance.

v

The University Symphony Orches-
tra, composed of 90 musicians, will
present its one concert of the summer
at 8:30 p.m., Tuesday in Hill Audi-
torium, with Thor Johnson as con-
ductor.
Johnson will be assisted in the
program by Andrew White, baritone,
and Joseph Brinkman, pianist, mem-
bers of the School of Music faculty.'
Contemporary American music will
be featured on the program, which
will include the first Ann Arbor per-
formance of Paul Creston's 'Thren-

WASHINGTON, Aug. 3--(R)-Paul
Porter, OPA Administrator, urged to-
day, "Don't let's kid ourselves that
sporadic or organized buyers' strikes
are going to mean the difference be-
tween inflation and a fairly stable
price level." '
"The economic balance we're all
striving for," he said during a radio
broadcast talk, "can be achieved only
when the teammates, production and
consumption, or our use of the goods
we make, are pulling together in
harness."
Not Out of Trouble

which have been announced have
many of you worried."
Cites Difference
The nation should keep in mind,
Porter said, "that there is a big dif-
ference between legal price increases
and uncontrolled inflation-between
the adjustments that will undoubt-
edly have to come under our new
legislation, and the wild jumps that
would come if there were no ceilings
at all."
OPA issued one order during the
day, withdrawing the rule requiring
restaurants to post their ceiling

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