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July 03, 1946 - Image 1

Resource type:
Michigan Daily, 1946-07-03

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Sw uyrn




VOL. LVI, No. 2S
Truman's OPA
Stand Is Debated



Doubled Cost of Living b

July 2

Predicted byStabilization Directo

o Opposed



t would have been "wiser" for
sident Truman to take "part of
loaf" and continue the OPA law
amended rather than run the risk
the present crisis, Prof. Arthur
Bromage, of the political science
)artment, declared yesterday.-
However, he said,the president
t a difficult choice in deciding
ether to sign or veto the legisla-

'On one hand, signing the bill
would have led to price rises on the
basis of amendments injected into
the legislation on the closing days,
Prof. Bromnage pointed out.
On the other hand, by employing
the veto power, the president ran the
risk of having OPA expire at mid-
night June 30, as occurred, he said'.
President Truman chose the al-
ternative of the veto and thereby
dramatically placed before Congress
the issue of no price control or a
better bill than the one vetoed, Prof.
Bromage stated.
Results have already been seen in
certain price increases, notably in
rents, in certain sections of the
country, he added.
"Congress now has a number of
lines of action, as I see it," Prof. Bro-
mage said. First of all, they can fail
to adopt any price and rent control
and allow economic forces to take
their course.
A second line of action, he ex-
plained, would be to pass an emer-
gency stop-gap bill to re-establish
OPA for a limited time on the old
basis, until another law could be
passed which is acceptable to the
-« ; -4

irdly, PrI

. Bromage declared,
out certain phases of
h as rent control for
regard to general

Taggart Favors
Action Taken
President Truman's action in veto-
ing the OPA bill was upheld by Prof.
Herbert F. Taggart in a statement to
The Daily yesterday.
"Probably no bill at all is better
than the one Congress passed," he
said, "for no organization could pos-
sibly function under the new bgill.
There was enough difficulty in mak-
ing the old one work."
Prof. Taggart, who was director of
accounting for OPA for three years
during the war, stated that he be-
lieved Congress will probably take
no action at all. It may pass a rent
control bill, he said, but this will be
futile without additional legislation.
There is no doubt that business
men will try to do their best in keep-
ing prices down, he continued, but
there will be a considerable number
of cases where "greed will get the
better of common sense," and these
may set the pattern for others.
* * *
Dickinson for
Bowles' Plan
In a statement to The Daily yes-
terday, Prof. Z. C. Dickinson of the
Economics Department backed Stab-
ilization Director Chester Bowles'
suggestion of inducing labor leaders
to give pledges of restraint as to wage
rises in return for a new system of
bona fide price and rent controls.
Although landlords and sellers of
commodities appear to have evercised
commendable self-restraint since the
lapse of our remaining price and rent
controls, he said, it is much too early
to conclude either that increasing
production will soon hold prices ade-
quately in check or that all is lost
unless the pattern of controls existing
on June 30th is restored.
There is still a wide inflationary
gap between money to spend and
goods to buy, Prof. Dickinson stated.
Many producers and merchants are
withholding supplies until prices be-
come more firm, and the struggles of
labor to raise wages further to cover
rising costs seem likely to contribute
to an inflationary spiral.
Resumption of rent ceilings alone
would probably have only a minor
effect on this spiral, he said, which
can be checked effectively only by
measures much more like wartime
controls of prices, wages and salaries,
and wartime rates of taxation. There-
fore, he concluded, further efforts
should be made along the lines sug-
gested by Bowles.
Philippine Freedom
Starts Tomorrow
MANILA, Wednesday, July 3-MP)
-Independence comes to the Philip-
pines tomorrow, officially ending
nearly 48 years of American admin-
Before dignitaries from many na-
tions, Manuel A. Roxas and Elpidio
Quirino will be sworn in as the first
president and vice-president, res-
pectively, of the new republic.
A treaty of general relations be-
tween the United States and the
republic then will be signed.
Guest speaker of the occasion,
General of the Armly Douglas Mac-
Arthur, probably as much as any
other man made the independence
ceremony possible.
MacArthur, favorite hero of the
Philippine man in the streets, ar-
rived Tuesday by plane from Tokyo.
The welcoming group was headed
by Roxas and the American High
Commissioner, Paul V. McNutt.


"Whatever happens in Congress,
however," he stated, "we can ap-
plaud such states as New York,
which had the foresight to anticipate
the present crisis and establish rent
control by state law."
* ~* *

Tax Increase


May Be Asked,
Snyder States
New Rates Seen As
Anti-Inflation Step
increase in tax rates may be asked
by the Administration next year if
there is sharp inflation in prices,
suddenly cut loose from control yes-
terday by expiration of the OPA.
This was disclosed today by the
new Secretary of the Treasury, John
W. Snyder, who told his first news
conference that consideration was
being given to using taxes to break
"If prices get too far out of hand,"
Snyder said, the Administration
may ask an increase in taxes on in-
dividuals and corporations when
Congress meets after the first of
next year.
The anti-inflationary effect would
be expected to follow from the
sharper tax bite into the spending
funds available to individuals and
business concerns.
Nevertheless, Snyder gave flat as-
surance that the Administration
would propose no new tax levies dur-
ing 1946.
He expressed hope, however, that
the Senate would follow the House's
lead in voting for a temporary exten-
sion of OPA with its former powers
until Congress can act on a new
price control bill.
As an immediate anti-inflationary
step, it was learned, the treasury has
temporarily halted its program of
retiring the public debt through cash
redemption of maturing securities-
The halt keeps money in the Trea-
sury's $14,238,000,000 cash balance
out of the hands of government se-
curities holders, where it would add
to buying pressures.
National Labor
Holiday Asked
Detroit CIO Proposes
OPA Support Move
DETROIT, July 2-(P)-Delegates
representing more than 350,000 CIO
unionists in Wayne County tonight
appealed to National CIO officers to
call a, nationwide one-day labor holi-
day to protest removal of OPA price
The action was taken at a sup-
port-the-OPA rally and came after
addresses by Walter P. Reuther, pres-
ident of the CIO United Auto Work-
ers, and other UAW leaders.
Introduced by Paul Silver of Local
351, Detroit Steel Products Amalga-
mated Local, UAW-CIO, the resolu-
tion was adopted unanimously.
Addressed to CIO President Philip
Murray, it read, "This conference
calls upon the National CIO and its
constituent unions for the declaration
of a nationwide one-day labor holi-
day for the purpose of demonstrating
deep resentment of the nation's com-
mon people at brutal destruction of
established price control.
"And that mass meetings and ral-
lies throughout the nation shall be
organized on this labor holiday to
demand immediate action for restor-
ation of price control without crip-
pling amendment."
No date was set for the proposed

0, -Bomb Explodes
ARKANSAS' On North Side
DamaeN CedSAKA A.d ' NEVA
s N -PEMOENCE m /. s
Goats Still Alive
On Deck Of
ATOMIC BOMU TEST TOLL--Results of the Bikini atom bomb test on
major units of the target fleet are listed on this chart, with locations of
ships based on similar chart issued prior to the test by the joint Army-
Navy Task Force One. Battleship Nevada in center of target areais ap-
proximately 6,000 yards (three and a half miles) southwest of Mikini '
Island shore. In addition to the cruisers, battleships and carriers listed,
the target fleet included destroyers, submarines, transports, landing craft
and barges.

* * *

* * *

E gineers, Scientists Disagree
On Bikini Bomb Test Results

J esiLences
o 'Hold Line'

University residence halls will try
to hold the line against rising prices
as long as possible, Francis C. Shiel,
residence hall director, declared yes-
"We do not anticipate any great
rise in prices," he said, and if it
comes the University will give in only
as a last resort.
Death of OPA controls has had a
negligible effect so far on dormitory
supplies, he pointed out, as much of
the purchasing is done by large quan-
tities in advance.
Commenting on summer session
enrollment which is about 5,000 less
than University officials had esti-
mated, Shiel indicated that the small-
er number of students (7,834) has
had no effect on the housing situa-
tion. Mosher-Jordan, the East Quad,
Victor Vaughan and two of the West
Quad houses are in use, he stated,
although the remainder of the West
Quad is vacant. Stockwell Hall, also,
is empty with the exception of a
small section which will be occupied
by six women medical students until
the end of July.
Willow Village houses the usual
number of single veterans and fam-
ilies, Shiel said.
Veteran Checks
To Arrive SOOn
Subsistence checks for 1100 new
veterans on campus should arrive
within six or eight weeks, W. L. Wal-
lace, new director of the local Veter-
ans Administration office said yes-
Veterans who were drawing un-
employment compensation prior to
their registration may continue to do
so until their subsistence checks ar-
rive, Wallace said, but this is not
advisable since subsistence checks
are retroactive to registration, and
veterans must return to USES un-
employment compensation received
while attending the University.
Loans without interest are avail-
able to veterans who need assistance
until their checks arrive from the

Bowles Calls For Effective
Price, Rent Control Legislatio
By The Associated Press
WASHINGTON, July 2-Stabilization Director Chester Bowles f'
cast tonight that the cost of living will double within 20 days if commo
prices continue their present rise.
Senator KVoore (Rep., Okla.) foe of a continued OPA in any form, ui
the nation at the same time to "wait and see" whether "the prices we
called upon to pay are as bad, or at least any worse, than the black mark
under which we have suffered so,


CHIAN, Wednesday, July 3-(I')-'
The atomic bomb proved to be a1
mighty weapon, but it was not thex
killer of battleships that many
thought it would be in Monday's testj
in -Bikini lagoon.
Exactly what was proved will not
be known until evaluation groups of
scientists, engineers, and technicians
complete studies, but arguments over
the power of an atomic bomb onj
ships already are raging and proba-
bly will continue for years to come.
Test a Failure
One group argues that the atomic
bomb was a failure as a destroyer
of surface ships, and that on the'
basis of the first Bikini test there
is little chance that any drastic
change in naval design will be ne-
Another group holds that the
atomic giant did everything expected
of it-that it sank the Japanese crui-
ser Sakawa, the destroyers Anderson
and Lampson, and sent two trans-
ports to the bottom as well as heavily
damaging other ships .
Correspondents who watched the
explosion were able to make an in-
spection tour through the target ar-
ray' for the first time Tuesday and
got a close-up view of the entire
Damage Estimates
A preliminary survey of the da-
mage brought varying estimates of
the success of the experiment.
City Realtors
Approve Rises
Merchants Pledge Aid
In Controlling Price
Ann Arbor Board of Realtors di-
rectors, meeting yesterday to assure'
the public that city rents would not
be inflated, approved rises of from
10 to 15 per cent, while one land-
lord raised 26 apartment house ten-
ants from 30 to 38 per cent.
The real estate men voted to offer
services of their board to any city
rent control plan, after failing to'
pass a resolution urging passage of
a city ordinance to control rents.
At a meeting of city retail and
wholesale merchants, the Retail Mer-
chants Division of the Chamber of
Commerce in conjunction with the
Wholesale Dealers Association and
the Washtenaw County Grocery and
Meat Dealers Association pledged
their "energies to keep prices down".
But Lawrence S. Freeman, chair-
man of the county Grocers and Meat
Dealers group announced meat in-
creases from five to seven cents a

long," and whether inflation will de-
velop. He added that "Congress is
always available for emergency leg-
These varying views were prepar-
ed for the radio at the end of a day
which found congressional action on
price controls stalled by Senators 0'-
Daniel (Dem., Tex.) and Wherry
(Rep., Neb.) but administration lead-
ers busy behind the scenes seeking
to clear the way for a compromise

Navy Secretary Forrestal expressed
surprise at the "relatively unimpor-
tant" damage he saw during an in-1
spection of the heavier ships.
Brig.-Gen. Roger M. Ramey, air
force commander, said at Kawajal-
ein that the operation was "a com-'
plete and unqualified success."
Dr. J. Robert Oppenheimer, Uni-
versity of California physicist, was
of the opinion at Berkeley that early
reports could not be expected to pro-
vide a true evaluation of the bomb,
that detailed scientific study must
be awaited.
"Oppenheimer said the prelimin-
ary reports did not indicate the test
was a failure. He pointed out that
the sinking or damaging of a ship of
itself is not too important, that what;
is "more important is what was done;
to life aboard the vessel and to all'
its intricate mechanisms."
* * *
atomic Control
on House Floor
WASHINGTON, July 2-(P)-The
House Military Committee placed its
final approval today on a bill ad-
mitting the military to domestic
atomic energy control and sent it to
the floor. The vote in closed session
was reported as 24 to 3.
Rep. Helen Gahagan Douglas
(Dem., Calif.) immediately told re-
porters she will move to substitute
for it the original McMahon Bill
passed by the Senate which provides
for an all-civilian control commis-
sion, as approved by the President
and the armed services. She claimed
the support of a large r oup of col-

Bowles qualified his prediction of
a 100 per cent cost of living hike
by saying that he doubts that thel
prime commodities could continue
"under any circumstances"' their
jump of yesterday, which the bur-
eau of labor statistics put at the
index figure of 3.7 per cent.
The bureau reported today's rise,
on commodity markets at .7 per cent,
bringing the price index for 28 basic
commodities to 208. Its index for
domestic commodities stood at 230.8
compared with 228.4 yesterday.
But Bowles added that "price and
rent increases.you read about in your
paper yesterday and today are only
a taste of what lies ahead if we accept
anything less thanhreally effective
price and rent control legislation."
Moore said he has heard nothing'
so far "that indicates we will suffer
a national collapse or that uncon-
trolled inflation" will develop and
he is convinced there will be none.
"The plain fact," he declared,
"is that the administration is a
captive of the CIO, which demands
complete wartime control of prices
as a basis for an over-all regimen-
tation of our economy and is will-
ing to use any means at its con-
mand to effectuate this unAmeri-
can, unconstitutional policy."
Objections by O'Daniel and Wherry
stymied an attempt to start OPA ex-
tension legislation through the Sen-
ate banking committee.
Meanwhile the administration lead-
ership blocked consideration of a
separate rent control bill in the Sen-
ate, as it had done yesterday in the
House, seeking to tie in this generally
approved provision with other curbs
which face opposition, all in a single
Senator Capehart (Rep., Ind.)
sought to get the banking committee
to act immediately on a rent control
bill which Senator Byrd (Dem., Ky.)
introduced yesterday. But Democrat-
ic leader Barkley (Ky.) hastened
from the floor to the committee room
to oppose it and Capehart held off.
APVC Plugs for oP'A

Veteran Bonus
To.Be Debated
By Legislature
Special Session Called
By Michigan Governor
LANSING, July 2-(R')-A speciae
session of the Michigan Legislatur
July 9 will deal with veterans' bo=
legislation .which a joint Senate
House committee proposed for popu
lar vote in November.
Governor Kelly ordered the ex
traordinary meeting of the lawmak
ers today after receiving a commit
tee report recommending a $270,000,
000 revenue bond issue with whic
to pay ex-servicemen and womer
a $500 maximum for honorable ser
vice between Sept. 16, 1940, an
Dec. 31, 1945.
No Finance Method
No method of financing the bon
issue was incorporated in the con
mittee report as finally presente
to the governor, although previous]
special taxes on cigarettes and bee
had been suggested.
That was dropped after Kelly tol
them veteran groups were "definit
conclusive and unequivocal" in the:
objections to that form of financini
the bonds.
As finally drafted for legislativ
consideration, the bonus proposal
in the form of a constitutions
amendment authorizing the state I
borrow $270,000,000 against its "fait
and credit."
Varied Bonuses
Each veteran who saw 60 days o
more of service within the specifi
dates woold receive $10 for eal
month of domestic duty and $15 fi
each month overseas with a $5(
maximum. The beneficiaries of an
who died in line of duty shall re
ceive the maximum payment.
Financing is left to the Legislatu:
with the stipulation that it may "pro
vide by taxation or other means fo
the retirement of the debt at th
earliest possible time."
U.S., Britam
Ask Trieste
Control by UN

AVC will sponsor a campus-wide
campaign urging students to peti-
tion their congressmen to reinstate
OPA controls, Friday, American Vet-
erans Committee spokesmen an-
nounced yesterday.
Permission to place tables at which
petitions may be signed on campus
was granted yesterday to the Willow
Village chapter of AVC by the Stu-
dent Affairs Committee.

4''Art Program Revision
Is Announced by Provost

Student Congress ToDiscuss
Book Exchange Wednesday

PARIS, July 2--()--The United
States and Great Britain agreed "in
principle" today to the internation-
alization of uneasy Trieste and its
environs ,but held out for United
Nations control of this strategic area
at the head of the Adriatic.
Both American and British in-
formants said U.S. Secretary of State
James F. Byrnes and British For-
eign Secretary Ernest Bevin main-
tained that the United Nations should
have responsibility for the integri-
ty and administration of the pro-
posed international zone.
Under a Russian and French pro-
posal, the Trieste area would be
placed under the Big Four.
Byrnes and Bevin also sought to
have the Trieste statute drawn by
the 21-nation European peace con-
ference instead of by the foreign
ministers council.
After a four-hour session in sultry
summer weather the foreign minis-
ters adjourned without reaching a
definite agreement on the future
structure of Trieste.
The ministers were to consider la-
ter a French proposal requiring the
council to submit a Trieste statute to
both the peace conference and to
the United Nations Security Council
in New York for approval. Sen. Ar-
thur Vandenberg of the American
delegation said the ministers did not

The establishment of a Student
Book Exchange will be the first item
on the agenda of the Student Legis-
lature when it holds its first meeting
of the summer semester Wednesday,
July 10, at the Michigan Union.
The Student Legislature, accord-
ing to President Ray Davis, expects
to establish a Book Exchange which'
will take the place of MUSBE (Michi-

Affairs Committee, the Student Le-
gislature will make an extensive
survey of all fund raising activities
on campus with a view toward con-
solidating the various activities into
a united program.
The publication of a "Frosh Bible"
will be considered by the Legisla-
ture, which will also attempt to have

Administrative reoraganization of
the University's program in art in-
struction was announced yesterday by
Provost James P. Adams.
The announcement followed sever-
ance of the Museum of Art from the
Museum of Art and Archaeology and
its establishment as a separate unit
in Alumni Hall under the direction
of Prof. Paul Slusser.
"We regard these modifications
in the organization of our work in
the fine arts as important develop-
ments designed to extend and enlarge
the scope of our educational interests

art and the preparation of publica-
tions," Dr. Adams said.'
The Department of Art in the li-
terary college will conduct programs
of study in the history and apprecia-
tion of art, and, the philosophy de-
partment will continue courses in the
philosophy of art and aesthetics, he
Work in creative art will be un-
der the supervision of the College
of Architecture and Desigli with cer-
tain courses in this college and the
literary college available for credit
in either unit.
The Museum of Archaeology will
continue to be responsible for its

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