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ANN ARBOR, MICHIGAN, FRIDAY, JULY 12, 1946

PRICE E CENTS

Tathe::Truman Declares Cut in Federal Budget,
eThe waters of the Huron Rive ra
etween Dexter and Ann Arbor

Review

of Military,

Veterans Programs;

Ceiling Price Rise Blocked in OPA Fight

Tie 'Vote Beats
Senator Taoft's
A mend ment
By The Associated Press
WASH~INGTON, July 11-The ad-
ministration won a major round in
the OPA revival fight tonight when
the Senate defeated an attempt by
Senator Taft (Rep.-Ohio) to deprive
OPA of discretion and force it to
raise manufacturers price ceilings to
cover increased costs.
The decision came on the closest
possible margin-a 40 to 40 vote. A
tie vote defeats an attempt to amend
'a bill.
This action removed one of the last
major hurdles to Senate passage later
of a measure to restore some price
and rent controls for one year.
The vote came only a few hours
after President Truman told his
news conference that every day
which passes without price con-
trols increases the country's dang-
er of runaway inflation, which he
said thus far had been prevented.
Rejection of the Taft proposal left
intact in the bill a compromise for-.
mula worked out by Democratic
Leader Barkley (Ky.) for prices of
manufacturers, processors and pro-
ducers.
Briefly it would require the re-
vitalized OPA to boost ceilings to add
an industry's average cost increases
to the average prices for 1940.
Taft said he agreed to such a
formula, substituted for his propos-
al which President Truman criti-
cized severely in the June 29 veto
of the original OPA bill, but he
sought to knock out exemptions
under which he said the OPA could
refuse to raise any ceilings,.
Earlier in the day, the Senate ap-
proved 59 to 20 an amendment pre-
venting OPA, when and if it is re-
vived, from applying rent ceilings in
any state which has its own rent
control system, or sets up such a
system in the future.
Homecoming
Plans Revealed
Dance, Bonfire, Pep
Rallies Will Be Held
The 1946 Homecoming Weekend
will center around the Illinois game,
October 26,.and will be sponsored for
the first time by the Varsity Com-
mittee of the Student Legislature.
At least three pep rallies, preceding
the Iowa, Army, and Illinois games,
are being planned by the newy
established committee. Although
Homecoming plans are necessarily
tentative, it is expected that the
weekend will include a pep rally and
Students who wish to become
permanent members of the Var-
sity Connittee "of the Student
Legislature should contact Lynne
Ford at 5663. The first meeting of
the summer term will be held at
7:30 p.m. Monday at the Union.
bonfire Friday night at Ferry Field,
immediately followed by the annual
Varsity Night program at Hill Audi-
torium. A dance Saturday night at
the Intramural .Building, featuring a
name band, will conclude the week-
end.
Varsity Night is regularly spon-
sored by the University Band to
raise funds to enable the organiza-
tion to accompany the team to one
of the away games. Professional en-
tertainment is brought in for the
event, which is the high point of
band activities for the year.

Steel manAsks
Spending Slash
$ ...Move Designed To Aid
} Price Control Measure

REP. MAY THANKS EISENHOWER-Rep. Andrew J. May (right) (Dem., Ky.), House Military Affairs Com-
mittee chairman, shakes hands with Gen. Dwight D. Eisenhower in Washington as he thanks the Army chief
of staff for his ap earance before the committee. Eisenhower said he foresaw a peacetime Army of 800,000
May's name has been mentioned in connection with the current Senate War Investigating Committee probe.

Roundup
of
World News
Vet Bonus Amendment
LANSING, July 11- (,P) - The
Michigan Legislature today ordered
a constitutional amendment for a
$270,000,000 veterans bonus placed
on the November ballot and approved
a limited state rental control law
which allows a 15 per cent increase
over the June 30, 1946 level.
The special session's major tasks
were completed when the Senate late
this afternoon accepted House
amendments to Governor Kelly's pro-
posed rental moratorium.
Central Control Urged
PARIS, July 11-(UP)-Secretary
of State James F. Byrnes called to-
night for the establishment of a
central administration in Ger-
many to give the beaten nation
economic unity and declared that
the "American government has
never sought to impose a peace of
vengeance" upon the Reich."
S* * k
Hull Urges British Loan
WASHINGTON, July 11-M)-Cor-
dell Hull played an Administration
trump card today for the $3,750,000,-
000 British loan, telling the House its
vote on Saturday will test America's
leadership for world cooperation and
peace.
* * *
U.S. To Get Cuban Sugar
HAVANA, July 11-MA)-The sale
of Cuba's 1946 and 1947 sugar crops
to the United States was formally
approved today by the National As-
sociation of Miii Owners and the
National Association of Cane
Growers.
* * *
JrCobson Testimony
WASHINGTON, July 11-(A)-Al-
bert W. Jacobson, a War Department
employe, testified today that he
okayed millions of dollars of ad-
vance payments to a munitions com-
bine.

First Lectures of Summer Series
Are Delivered by 'U' Professors

Self-Government Need
Stressed by Bromage
Local self-government, indispen-
sible in a democratic society, will
have little chance to survive in an
atmosphere of international jealousy,
and preparation for war, Prof. Ar-
thur W. Bromage, of the political
science department, the first speaker
in the lecture series "The Social Im-
plications of Modern Science" said in
his lecture "Total War and the Pre-
servation of Democracy" yesterday.
Without a new internationalism,
and a control of atomic energy that
will prevent its use as a weapon, no
device proposed by political scientists
could preserve democracy and local
self-government.
Steps which may be taken in the
event of another war are old and
limited, Prof. Bromage said. They in-
clude decentralization of federal
government, decentralization of in-
dustrial areas, and utilities, and plans
for the evacuation of whole popula-
tions.
The choice before us on the atomic
bomb is appalling in its consequences.
We cannot afford to relinquish the
bomb until we are assured that in-
ternational authority will control it,
Prof. Bromage said. On the other'
hand, the longer internationalization
is delayed the longer the armament
races will continue.
This should not be a cause for
panic reactions, Prof. Bromage said.
The courageous citizen of democracy
must construct a social will, that can
keep pace with man's inventive gen-
ius. The fostering of a new phase of
internationalism will preserve demo-
cracy and local self-government.
Dunham Declares
English Not Enough
Even though English promises to
become the world language of the
future, Americans should learn other
languages than their own, Prof. Fred
S. Dunham of the Latin Department
said yesterday.

Crane Cites Danger
From Atomic Energy.
The greatest danger to world se-
curity arising from the discovery of
atomic energy is that newer and
simpler methods may replace the in-
dustrial processes now used by the
United States, Prof. H. R. Crane, of
the physics department, declared yes-
terday.
Speaking on "Recent Advances in
the Physical Sciences," Dr. Crane
stated that "we have come to rea-
lize that it pays a nation to push
science financially as much as it does
new automobiles." Dr. Crane dis-
cussed the principles of atomic en-
ergy and stressed that the unceasing
search for energy in small, conveni-
ent packages for man's use has cul-
minated in the discovery of atomic
fission.
By means of slides, he explained
the fundamental nuclear reactions
and their differention from ordi-
nary chemical reactions and also the'
carbon-cycle reaction on the sun
which produces the sun's energy.
On the subject of peacetime
atomic energy uses, Dr. Crane stated
that the "atomic pile will be used
to heat and light the cities in the
age of atomic power."
Prof. R. Perry
To Speak Here,
Prof. Ralph Barton Perry, of the
philosophy department at Harvard
University, will speak on "What Is
the Good of Science" at 8:10 p.m.
today in the Rackham Lecture Hall.
Prof. Perry has been on the Har-
vard faculty since 1902 and is the
author of numerous volumes of phil.,
osophy and biography. He won the
Pulitzer Prize in 1935 for his book
"The Character and Thoughts of
William James."
The fourth lecture in the Univer-
sity summer series will be delivered
by Prof. Herbert W. Briggs, of Cor-
nell University, on "The Problem
of World Government" at 8:10 p.m.
Tuesday in Rackham Amphitheatre.

By The Associated Press
WASHINGTON, July 11-Presi-
dent Truman announced today that
government spending would be cut
and that both military and veterans
programs would be reviewed for eco-
nomy reasons.
These moves to cut the flow of
federal funds into the national eco-
nomy, Mr. Truman said in a state-
ment, are designed to buttress price
control measures now pending before
Congress.
Reductions in outlays of the
armed forces and the Veterans Ad-
ministration will be made where
this is possible "without endan-
gering national security or caus-
ing unjustified hardship," said the
statement, issued at the President's
news conference.
Mr. Truman's comment accom-
panied a quarterly report of John B.
Steelman, new director of the Office
of War Mobilization and Reconver-
sion. Steelmian also demanded new
cuts in federal spending and singled
out the armed forces as the place
to cut deepest.
The President told his conference
that reconversion set-backs of the
first half of this year had been "dis-
proportionately magnified" - that
production by mid-year had reached
"the highest level ever attained in
peacetime."
More people are at work than
ever before, he said, adding that it
is "particularly gratyingthat
eight out of every 10 returned vet-
erans already have jobs."
"But we shall not be satisfied un-
til the rest of our veterans have suit-
able employment opportunities," he
stated.
The President gave the White
House blessing to the fis-cal and mon-
etary proposals outlined in'the Steel-
man report. The reconversion direc-
tor's document declared that econ-
omy; even in the Army and Navy,
could be achieved without hurting
military operations aimed at fulfilling
world obligations, furthering Ameri-
can interests and keeping global
peace.
Because the armed forces are
assigned "not far from half" the
proposed expenditures of the new
fiscal year for government agencies,
they are the logical places for the
economy axe to bite deepest, Steel-
man said.
"Without price control, other pow-
ers of the government would be in-
adequate to stabilize the economy
under present abnormal conditions."
"But if price control is in effect,
it can be aided powerfully by other
weapons aimed chiefly at reducing
excessive demand."
AVC To Fight
Cost of Living
On Local Front
Planning to continue its fight for
food and rent controls on a local as
well as national scale, the University
AVC last night began plans for
joint action with other Ann Arbor
organizations to keep the cost of liv-
ing down.
At the same time, the campus
chapter of the American Veteran's
Committee elected Jack Weiss, grad-
uate student in political science, as
chairman of its summer session ac-
tivities, to be aimed mostly at fight-
ing inflation where it hits University
veterans and community members
most.
A committee of five, headed by Vic-
tor Baum, vice chairman,. will ap-
pear before the Ann Arbor city coun-
cil Monday night to emphasize the
need for local control of rising prices
and rents.
Last night's Union meeting heard
G. Mennen Williams, member of

Administration
Course Planned
A course in airport management
and administration of air transport
companies is now being planned by
the Curriculum Committee of the
School of Business Administration,
Dean Russell A. Stevenson of the
business administration school an-
nounced yesterday.
The new course, an innovation
paralleled, to Dean Stevenson's know-
ledge, only by one given at the Uni-
versity of Illinois, will be instituted
as part of the University's plan to
utilize the facilities for study and
research afforded by the newly-ac-
quired Willow Run airport.
Because of the lack of teaching
personnel, Dean Stevenson said that
the course will not be offered until
the fall of 1947, at which time, he
said, he, expects "a substantial de-
mand" for it.
The course, which will be given on
the graduate level, will cover a period
of two semesters, with three hours
credit for each semester. Comple-
mentary courses in the School of

ROBERT BOUWSMA . . . who
plays the lead in "Papa Is All."
tion who recently played General
Burgoyne in "The Devil's Disciple."
Other members of the cast in-
clude Mrs. Claribel Baird as Mama,
Hal Cooper as Jake, Dorothy Mur-
zek as Emma, Miss Clara Behringer
as the gossiping neighbor of the
Aukemp family, Mrs. Yoder, and
Harp McQuire as the state trooper.
Tickets are available for both per-
formances at the Lydia Mendelssohn
Theatre Box office in the League be-
tWeen 10 a.m. and 5 p.m. The Satur-
day matinee performance begins at
2:30 p.m.

g

INFLATIONARY. SPIRAL PREDICTED:
Economics Professors Comment on Present Price Situation

Of five regular and visiting mem-
bers of the economics department in-
terviewed in a Daily survey yester-
day, all expressed comments favor-
able to the continuance of OPA price
and wage controls, and most fear a
rapid inflation unless measures are

Comments were as follows:
Present price rises do not indicate
accurately what may happen if busi-
nessmen become sure that Congress
will permanently abolish price con-
trols, George R. Anderson, lecturer
in economics, and E. M. Aris, visit-
inn nrnvacncrv of nnoinfin, .-.ar-.a

sult does not exist except in isolated
instances.
On the basis of present high em-
ployment figures, one might wonder
where increased production would
come from, unless workers operate
overtime, Anderson stated. There-
fnr f- o - 4 -, ... . .- 4

present time, he said, the relinquish-
ment of price controls sets the stage
for a speculative inflation of omi-
nous proportions.
"The arguments so commonly ad-
vanced by the opponents of OPA that
an initial price rise will bring its own

existence of heavy fixed costs and
unused capacity plus the assumption
of a stable wage structure-a highly
unrealistic assumption in, view of
the present temper and policy of
American unionists.
In the second place, any belief that