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July 04, 1947 - Image 1

Resource type:
Michigan Daily, 1947-07-04

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Latest Deadline in the State






. ;^ - r r. .^ai

New Tax Cut

House Measure
Like Vetoed Act
By The Associated Press
House Ways and Means Commit
tee stamped 18-to-6 approval o
the new Republican-backed $4,
000,000,000 tax slashing bill to
day, and a surprise shift in Dem
ocratic votes prompted claims thal
another presidential veto can b
Speaker Martin (Rep., Mass.
said more than a two-thirds vote-
enough to override a veto-is now
available in the House. He told re
pdrters he expects as many as 2
Democrats to change over in sup
port of the bill.
Tuesday Showdown
Martin set next Tuesday for th
showdown vote in the House.
d Senator Taft (Rep., O.) sail
the Senate will probably take u
the measure late next week, bu
there were rumblings of a possible
filibuster to block action in the
Rep. Doughton (Dem., N.C.) wh
managed tax legislation when th
Democrats controlled Congress
was one of the 18 committee mem
bers who voted in favor of the
measure today. He supporte
President Truman's veto of the
first tax bill.
All six opposing votes were by
One Democratic leader in th
House, who asked that his name
be withheld, told reporters follow-
ing, the committee's action:
Override Veto
"My opinion is the presideni
will veto the new bill. My guess
is that Congress will pass it ove
his veto."
Senator Byrd (Dem., Va.), wh
has been lining up Democratic
support for the new measure, stil.
claimed 61 certain Senate votes tc
override, with an additional 13 oi
14 "in prospect."
The bill approved today is iden-
tical with the measure vetoed by
Mr. Truman June 16 as the wrong
kind of tax reduction at the
wrong time-except that the ef-
fective date of the tax cut is next
wJan. 1 instead of July .1, 1947.
Sigler Signs
Bill to Check
Public Strikes
LANSING, July 3-MP)--Gover-
nor Sigler today signed the Hutch-
inson Bill banning strikes by gov-
ernmental employes.
Spokesmen for organized labor
have been bitter in their condem-
nation of the measure.
"Public service imposes public
trust and one working for the pub-
lic, either in a public office or as
an employe, has an entirely diff-
erent responsibility from those in
independent employment. There-
fore they must be of necessity be
under definite rules and regula-
tion," Sigler asserted.
Sigler said the measure permits
public employes to bargain collect-
ively and provides that the State
Labor Mediation Board mediate
any dispute submitted by a ma-
jority vote of employes.
The governor used his veto pow-
er to block a measure that would
appropriate $4,500,000 for the
construction of an ice-crusher-
ferry boat for the Straits of Mack-
inac fleet. He asserted that state
finances do not justify the ex-
penditure at this time.
The governor also vetoed a bill
exempting articles used in agri-
cultural production from the state
sales tax.

Opponents have charged the
measure would cost the state $2,-
J00,000 a year in revenues and
could be interpreted to exempt
virtually anything bought by far-
Declaring the intent of the
sponsors was good, Sigler said he
believed the measure was faultily
drawn and that he would present
the question again to the special
session of the legislature next
January for a second considera-
Army Voted Increase
Senate Appropriations Subcom-
mittee today voted to give the
Army some $600,000,000 more than

Soft Coal Peace Hinies
On 'uyig'ofAgreement
Precedent Shattering Contract To Include
Pay Increase, Royalties 1o Welfare Fund
By The Associated Press
WASHINGTON, July 3, - Peace or strikes in the soft coal in-
dustry depended today on whether John L. Lewis could force opera-
tors of the midwest, far west and south to "buy" his precedent-shat-
tering agreement with big steel and northern products.
According to persons in the industry, the tentative contract, await-
ing formal ratification by the union policy committee and operators,
includes a $1.20 daily pay increase for one hour less work and a 10
cent royalty on each ton of coal Tor the union welfare and retirement
------ fund.

Ford Cancels
Foremen Union
Bargain Rights
Terms Three-Year
'Experiment' Failure
DETROIT, July 3-(P) -The
Ford Motor Co., after three years
of contractual relations with its
unionized foremen, called it quits
today as an "experiment" which
had "failed hopelessly."
With this terse observation, the
company withdrew bargaining
rights of the Foremen's Associa-
tion of America on the 44th day of
the independent union's strike at
three Detroit area fatories.
Ford recognized the supervisory
workers' union in 1944 as the na-
tion's first company to take such
a step, going against the general
industry attitude toward foremen
unions at the time.
Action Before Labor Law
The company's action today
came six weeks before the effec-
tive Aug. 22 date of provisions of
the Taft-Hartley labor law which
relieve industry of legal compul-
sion to bargain with supervisory
"Management unions in our
company," Ford said, "are un-
sound in principle and unwork-
able in practice."
Comment from FAA leaders was
limited and the comparatively
youthful union, which has been
at odds with Ford in times past,
called a membership meeting for
Sunday to consider future plans.
Ford's action left only Kaiser-
Frazer Corporation, a relative
newcomer to industry, u nd er
agreement to the FAA.
Urges Return
At the same time, Ford urged
more =than 3,000 striking foremen
to return to work with no fear of
"discrimination of any kind."
Admittedly the effect of the
strike was waning.
Ford reiterated a claim that
more than 700 strikers had re-
turned to work at the Rouge,
Highland Park and Lincoln plants
and predicted the figure would
soon top 1,000. The FAA said the
total did not exceed 350.
The strike began May 21 in a
union demand for the right to
represent all Ford supervisory em-
ployes. About 3,800 walked out at
that time.
House Names
Honor Alumni'
New houses in the East Quad-
rangle will be named for former
members of the University faculty,
according to the Michigan Alum-
Those honored are Prof. Charles
Horton Cooley, Prof. Joseph Ral-
ston Hayden, Dean Henry Clay
Anderson, and Prof. Louis Abra-
ham Strauss.
Now nearing completion, the
addition to the East Quadrangle
will be ready for occupancy in the

Doubled Royalty
The Royalty is double the
amount collected under the con-
tract with the government which
expired July 1. A 10 cent royalty
would yield $50,000,000 to $60,-
000,000 annually to the fund, if
concurred in by the entire indus-
The coal pits were restored to
private owners Monday and the
tense operators are caught in cru-
cial contract dealings with Lewis
in order to head off a strike next
Tuesday when the miners' 10 day
vacation ends. A strike looms for
any mines not covered by con-
tracts before the July 8 deadline
because the miners do not work
without a contract.
Concessions Unequalled
The tentative pact of steel and
northern operators, representing
up to 40 percent of the nation's
production, makes wage and hour
concessions to Lewis never before
equalled in the miners' union-
nor possibly in other labor organ-
These are the reported concess-
ions to Lewis by 'the steel and;
northern operators which must
be duplicated by the remainder of
the industry if the other mines are,
to reopen next Tuesday:
1. Lewis' full wage demand of
$13.05 a day for eight hours under-
ground, including the hour of
portal-to-portal travel and 30
minutes for lunch.
2. The 10 cent royalty meets
Lewis' demand in full.
3. The inclusion of the federalI
mine safety code which the gov-
ernment gave Lewis also meetsI
his demand on that.
4. A clause saying the miners
must work only when "willing and
House Advises1
Former Foes.
Stop Payment
House foreign affairs subcommit-
tee said today the United States
must "insist" upon ending cur-
rent reparations from Germanyr
and Japan to help those nationst
get on a self-supporting basis.
Issued a day after the Russians
spurned the Marshall plan for
Europe's economic recovery, the
report said "we do not believe this
is the end of our efforts to helpF
It insisted however that Con-E
gress have a hand in checking up
on future requirements.
In a preliminary report on suchF
a survey of its own, the subcom-
mittee offered an "educated guess-
work" estimate that Europe's dol-
lar deficit in meeting requirementsI
for recovery during the three-
year period, 1947 through 1949,
would approximate $10,000,000,000.
This figure includes Britain but
excludes Russia.
Just how far this country will
go toward helping Europe meet
that deficit through loans or
grants will be up to Congress. But,
chairman Vorys (Rep., O.) in re-
sponse to a question, told a news
conference that "there is no other
source to meet dollar deficits."

All'K Grades
Received by
147 Students
78 Enrolled in
Literary College
"Spring fever" didn't stop 14
University students from gettin
all "A" grades last term.
Seventy-eight were enrolled i
the literary college, 42 in the en
gineermg college, nine in the pub
lic health school. six in the musi
school, four in the business ad
ministration school, three in th
forestry school, two in'the phar
macy college, and one each ir
the architecture, education and
nursing schools.
The complete list of student
Literary college - Ball, Rober
P.; Barber, Carroll G.; Barr, Will-
iam B.; Barris, Ivan E.; Berridge
George B.; Brown, Donald F. M.;
Brown, Merle E.; Brown, Roger
W.; Castor, Cecil W.; Chapin
Francis B.; Chover, Joshua; Com-
stock, Howard C.; Della-Dora, Del-
mo; Dinnan, Leo T.; Durant
Bryce S.;
Egan, Joseph G.; Eich, Robert
H.; Engelder, Theodore C.; Ep-
stein, Robert M.; Evans, Robert
E.; Faint, Jean P.; Fellner, Will-
iam A.; Fields, Donald E.; Fields,
Francis T.; Goldberg, Joyce T.;
Griffin, Carleton H.; Griffith,
John H.; Hannagan, Patricia T.;
Henne, Mary H.; Heapen, Richard
C.; Hogg, John S.;
Holly, Earl D.; Ingling, Janet
M.; Jackson, Esther M.; James,
Patricia M.; Juskowitz, W.; Kaem-
lein, Wilma R.; Keith, Laurel E.;
Le Clair, Hugh G.;
Levy, Norma S.; McNitt, Harold
A.; Malmstrom, Vincent H.; Man-
delstamm, Allan B.; Meadow, Har-
old M.; Millis, Apostle G.; Miron
Wilma E.; Moore, Virginia R.; Mur-
phy, Richard S.; Raiffa, Howard;
Rappley, Richard M.; Reed Robert
S.; Rehberg, Donald L.; Reissig,
Jose L.; Renz, Walter F.; Richard-
son, Janice M.; Rollins, Arthur J.;
Ruhl, Eleanor W.;
Ryan, Marjorie; Sanford, Jay
P.; Saulson, Lenamyra; Schultz,
Clarence H.; Shadd, Rdbert W.;
Siegel, Peter; Sikkema, Betty L.;
Silep, Doris P.; Sinnigen, William
G.; Smith, Howard W. Jr.; Snell,
Willis B. III; Storgaard, Barbara
Sutton, Frank S.; Townley, Mer-
lin C.; Trezise, John B.; Van Een-
am, Marjorie L.; Wardenburg,
Bernhard G.; Warren, Betty A.;
Wilkinson, Mary A.; Williams,
Lawrence T.; and Wood, Grace L.
Engineering college-Arakelian,
Edward M.; Babitch, Daniel J.;
Bailey, Earnest L.; Beely, Ray-
mond J.; Benedict, Frederick C.;
Berger, Howard M.; Bilitzke, Ar-
mand J.; Brotemarkle, Donald W.;
Christensen, Harland R.; Chris-
tin, Gerald R.; Clark, John A.;
Connell, James R.; Davey, Peter
E.; DeGraaf, Donald E.; DeMallie,
Howard R.; Dillingham, Thomas
C.; Duff, Russel E.; Erickson,
Robert P.;
Gallerani, R.; Glavz, Robert D.;
Gorman, Wm. J.; Guthrie, Charles
E.; Hirsch, Albert E.; Houghtby,
Wm. E.; King, John S.; Lauer,
John E.; Lee, Robert C.; Lemmer,
Robert E.; Lipstein, Norman J.;
Moore, George T.;
Morrison, John H.; Orr, Robert
H.; Roush, Craig W.; Saulson,
See 147, Page 4
Railroads Call
For Boost in

Freight Rates
The raislroads moved today for
a billion-dollar boost in the na-
tion's annual freigh bill.
In a petition filed with the In-
terstate Commerce Commission,
699 carriers representing all the
operating lines in the country said
that upward adjustments in rates
granted earlier this year had been
nsufficient to meet the postwar
increase in operating costs and
provide for the improved sericves
demanded by the public.
The lines, which have estimated
their freight revenues for 1947 at
$6,812,000,000 asked for authority
to put, up the freight rates by 25
percent in Eastern territory north
of the Ohio and Potomac rivers
and east of the Mississippi, and
by 15 percent in the remainder of
the country. In addition, upward
revisions in charges for various
special services such as refriger-
a~tion and heating. Dickiun nand



Britain, France

Court Convicts May,


-Guilty on Brib
c Charges, Final
e Verdict Says
Plans To Appeal Case,
May Tearfully Claims
By The Associated Press
WASHINGTON, July 3-A fed-
eral jury today convicted former
Rep. Andrew J. May (Dem., Ky.)
and his two co-defendants, Henry
, and Murray Garsson, on bribe
conspiracy charges involving
May's role as wartime chairman of
the House Military Committee.
The jury of seven men and five
women deliberated one hour and
50 minutes in reaching its verdict
of guilty on all three counts
against each of the trio
Maximum penalty would be
six years in prison and $30,000
, fine for each defendant.
May, in tears as the jury fore-
man intoned the word "guilty,"
subsequently told newsmen:
"I'm still not daunted-we'll
appeal it."
Defense attorney Charles J.
Margiotti told the court he would
move within the next five days for
a judgment of acquittal, an arrest
of judgment, and a new trial. Jus-
tice Henry A. Schweinhaut de-
ferred sentence pending the filing
of motions.
Henry Garsson, 50, so-called
"brains" of the $70,000,000 Gar-
sson wartime munitions combine,
calmly read a novel while the jury
deliberated. His brother, Murray,
54 wept as he left the courtroom.
All three were continued on $2,-
060 bonds.
May, now 72, was convicted of
taking $53,634.07 in bribes from
the Garsson brothers as pay-
ment for using his powerful con-
gressional influence to get fav-
ors for the Garsson shell-mak-
ing enterprises.
The brothers were found guilty
of conspiring to defraud the
United States of May's services
through bribery. The government
contended that the Garssons set
May up in the lumber business, as
head of the Cumberland Lumber
Co. in Kentucky, as a "blind" to
conceal bribery payments.
The government claimed the
Garssons bought the firm for May.
May claimed he merely acted as
manager of the company. He ac-
knowledged he took in all the
money the Garssons sent him for
the firm, but maintained that he
paid it all back-"every cent of it"
or spent it on the firm.
May conceded that he repre-
sented himself as the company's
owner. But he said this was only
to conceal the real ownership
from his fellow Kentuckians.
* * *
May's Pension
Will Continue
Congressional and Civil Service
experts expressed opinion today
that former Rep. Andrew J May
of Kentucky continues eligible to
draw a congressional pension even
if he goes to prison for his war
fraud conviction.
May applied for the pension
early this year after serving 16
years in the House, during which
he was wartime chairman of the
Vilitary Affairs Committee.
Under the 1946 Congressional
Reorganization Act, May became
eligible to draw approximately $3,-
376 annually for the rest of his
life, contingent on payment by
him of $2,716 to the pension fund.
No one was available to furnish
exact figures.



22 Countries
To Consider
Marshall Plan
Russia Not InVited,
Asked To Reconsider
By The Associated Press
PARIS, July 3-Britain and
France today defied Russian
warnings and invited 22 other
European nations to meet in Paris
July 12 to work out plans for im-
plementation of the Marshall pro-
gram for economic aid.
Less than 24 hours after Soviet
Foreign Minister V. M. Molotov
had declared that such a course
would split Europe into two blocs,
French Foreign Minister Georges
Bidault and British Foreign Sec-
retary Ernest Bevin took up the
The division between Russia
and the western powers was un-
derscored by the failure of the
sponsoring governments to in-
vite the Soviet Union to the
conference, which would include
virtually all European nations
except Spain and Germany.
The door was left open for Sov-
iet :participation, however, when

FERENCE-Foreign Minister V. M. Molotov (left) shakes hands
with French Foreign Minister Georges Bidault (right) on the steps
of the French Foreign Office in Paris after the Three-Power For-
eign Ministers' Conference on the Marshall proposal ended in
failure. Alexander Bogomolov, Soviet ambassador in Paris, is in
Low gRange Atomic Center

3--M)-At least seven persons
were killed and 14 hospitalized
when a tornado struck three
places near Grafton, N.D., early
Six migrant farm workers,
three of them children, were
killed on the Luther Kykken
farm two miles west of Auburn.
the two western powers sent a let-
ter to Soviet ambassador Alexan-
der Bogomolov suggesting that
Russia, which yesterday rejected
the British-French proposals for
economic cooperation, reconsider
her attitude and join them.
A major supject of speculation
was whether the eastern European
countries-those'along the Soviet
fringe-would - attend the Paris
meeting or would follow the lead
of Russia and refuse to partici-

NEW YORK, July 3-(P-A
program for improvements in
making plutonium, the main bomb
metal, in the great atomic plant
near Richland, Wash., was an-
nounced today by the Atomic En-
ergy Commission in a release is-
sued by the General Electric Co.,
which is to do the main work.
State Tourth'
Will Highlight
Gala Festivity
By The Associated Press
Michigan joined with the rest
of the nation last night to usher
in a gala three-day independence
day weekend.
All transportation arteries were
jammed as residents in the cities
and country fanned out to their
favorite festive spots. Rail, bus,
highway and airline officials said
the exodus of more than 1,000,000
Detroit dwellers to outstate points
already had begun.
Traverse City, Croswell, Wyan-
dotte, Escanaba and Gladstone,
among other communities, offer-
ed special Fourth of July pro-
grams. Governor Sigler planned
to fly from Lansing to Escanaba
today to lead a parade in con-
nection with that community's
Hiawathaland festival.
Partly cloudy skies were fore-
cast over the state by the U.S.
Weather Bureau. Scattered thun-
dershowers were due during the
day in the extreme north portion
of the lower peninsula and occas-
ional thundershowers in upper
Michigan, the Bureau at Detroit

Plutonium, the hard, heavy
metal made by transmuting ura-
nium, is the principal announced
substance in present atomic
Plutonium is the main future
reliance for atomic power. Sci-
entists have reported that the
transmutation will yield much
more atomic fuel or explosive than
use of uranium alone.
Improvements Secret
What the improvements are will
remain complete secrets, the Com-
mission stated. But one fact was
disclosed. These modifications
were worked out to a large ex-
tent, at Argonne National Labor-
atory, Chicago, after construction
of the Hanford' Works, as the plu-
tonium plant is officially named.
The Commission also announ-
ced improvements for the town
of Richland, which after Oak
Ridge, Tenn., is the world's second
atomic city. The third is at Los
Alamos, N.M., where bombs were
made during the war.
New Development
"Richland's residential area and
the Hanford Engineering Works
occupy 630 square miles, bordering
the Columbia River, on ground
that before atomic bombs' was an
undulating table land, mostly, un-
inhabited, a region of gray sand,
gray-green sagebrush and dried
water courses.
The Commission said there
would be erected new homes, new
schools, hopsitals, commercial
buildings and other community
services. The Richland and Han-
ford construction activity is one
of the first steps in the Atomic
Energy Commission's long range
plan of development of atomic

No invitations were sent to
the Soviet republics of the Uk-
raine and 'White Russia, nor to
the states absorbed by Russia-
Estonia, Latvia and Lithuania-
but a half dozen other countries
under the Soviet sphere of in-
fluence were invited,
These included Albania, Bul-
garia, Czechoslovakia, Finland,
Hungary, Poland, Romania and
In addition to the "Soviet
fringe" countries, others invited
to the conference were Austria,
Ireland, Italy, Portugal, Turkey,
Belgium, Greece, Denmark, Ice-
land, Luxembourg, The Nether-
lands, Norway, Sweden and
A French spokesman said Spain
was excluded, in accordance with
a decision of the UN General As-
sembly last December, "as long as
she has her present form of go-
Cadogan Tells
U N Pack Up'
Warns Balkan Peace
Must Be Made Now
Sir Alexander Cadogan of Britain
told the United Nations today they
had better "tear up the charter-
and pack up" if the Security
Council could not stop the Balkan
disorders on the basis proposed
by the United States.
Cadogan, who has played a lead-
ing role in UN affairs since the
founding days at Dumbarton Oaks
and the 1945 San Francisco Chart-
er Conference, also warned the
council that its prestige would
suffer if it "shirked" its duty in
the Balkans case.

Radio Corporation Plans New
ZT. * U S1C

Phone V ision
"Operator, 23241 calling -we
would like to see 'The Yearling'
this evening."
Thus Mr. and Mrs. America can
sit back and enjoy top-flight en-
tertainment, features that may
otherwise be seen only in theatres
when Zenith Radio Corporation's
new "Phone Vision", a new system
of television, is added to the
monthly telephone bill.
In operation, the subscriber will,
call his telephone operator and
tell her the program which he

/ elevisionh et
ture of the entertainment which
includes first-run movies, current
newsreels, and Broadway plays.
The charge to see a new picture
as "The Yearling" will be greater
than a Grade B film of yesteryear.
Phone vision works by splitting
the complicated bundle of fre-
quencies that makes a television
picture, and sending certain key
frequencies to the subscriber over
his telephone or electric power
wire. The remaining frequencies
are broadcast in the usual man-

Dull Fourth Predicted for Ann Arbor

The Fourth of July, 171 years
old today and once an explosive,
skyrocketing, joyous day of cele-

little boys dressed like their
marching fathers.
There will be no night display
of soaring fireworks -roman
candles, sparklers, dum-dums, and

Students, however, do not need
be completely appalled by the lack
of activity in Ann Arbor. In
Wayne, Eva Likova, noted Euro-

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