Lw uy r n
See Pale 2
Latest Deadline in the State
VOL. LVIII, No. 197 ANN ARBOR, MICHIGAN, SATURDAY, JULY 31, 1948
PRICE FIVE CENTS
By Reds Expected
' BUDAPEST, Hungary, July 30
-(j)-Zoltan Tildy resigned as
president of Hungary today and
cleared the way for the Commu-
nists to tighten their grip on the
An official announcement said
leaders of the government parties
accepted his resignation and or-
dered Parliament to meet on Mon-
day to name a new President.
A foreign office spokesman said
there was no political crisis in "the
Earlier in the day, the Interior
Ministry announced that Tildy's
son-in-law, Dr. Victor Csornoky,
had been arrested on unspecified
harges of spying and treason.
Csornoky returned to Budapest
two weeks ago from his post as
minister to Egypt. He resigned
that post yesterday.
Tildy, first President of the
Hungarian Republic proclaimed
in 1946, was a former leader of
the Smallholder party which was
strongly supported by the peas-
ants. He was a holdover chief of
state from the days of Premier
Ferenc Nagy, who was obliged to
resign in the Communist coup of
May, 1947, while vacationing in
Switzerland. Nagy is now in Amer-
A foreign office spokesman,
asked about the charges against
Csornoky, said there is written
evidence against him in the hands
of Hungarian authorities.
The spokesman said Csornoky
had committed his crime in Cairo
and added that no official repre-
sentative of a foreign power was
involved. He denied a report that
Csornoky had attempted to escape
when police arrested him and that
he was shot.
The cabinet has discussed the
question of a successor to Tildy, it
was reported, and it was believed
that Arpad Szakasits would be
named president of the Republic.
Set on Natural
LANSING, July 30-(P)-The
state public service commission to-
day set an Aug. 6 hearing date for
the petition of a group of Grand
Rapids and Muskegon firms ask-
ing for an increased supply of
natural gas from the Michigan
Consolidated Gas Company.
Natural gas supplies to the
Western Michigan group were cur-
tailed last winter in what the
company said was an attempt to
conserve gas for small users.
N With the completion of the Aus-
tin field pipeline from the De-
troit to the Western Michigan
district, the petitioners claimed
there was no reason why a normal
flow of gas should not be re-
The petitioners asserted that a
large volume of gas now is mov-
ing from the Texas Panhandle
fields for storage in the Austin
j field, Goodwell field and Reed City
field reservoirs. Cutting down gas
supplies to the Western Michigan
manufacturers, they claimed,
amounted to a discrimination in
The petitioners further said
that there have been no cuts in
natural gas to Detroit manufac-
turers and that, on the contrary,
expansion was being encourage in
The group asserted they nor-
mally used 1,500,000,000 cubic feet
of natural gas a year. Under pres-
ent restrictions they only receive
about 20,000,000 cubic feet a year,
the petitioners asserted.
Slossoi To Speak
At Willow Village
Prof. Preston W. Slosson, can-
didate for nomination as Michi-
gan Secon' Congressional District
Representative: will discuss the
Taft-Hartley law a 8 p.m., to-
morrow, in the lounge of the
North Community Building. Wil-
Barten Wins 800-Meter
Trial Heat at Olympics
Ris, Carter, Ford.
Not Pressed in Games;
Advance to Century Final
WEMBLEY England, July 30-(P)-Herb Barten, captain of
the University of Michigan track squad today won his heat in
the Olympic 300-meter trials in the poor time of 1:55.6. Barten's
slow time was a result of his not being pressed as he won going
away from his nearest rival.
WEMBLEY, England, July 30-(P)-Except for some sparkling
advance work which promises to produce a victory or two tomorrow,
Uncle Sam's Olympic Track and Field forces fell flat on their sun-
burned faces in Empire Stadium today.
Touted to sweep the high jump as they had in every Olympiad ex-
cept two since 1896, the American athletes could do no better than
third in that event. Three times the band saluted a new Olympic
champion with a National Anthem, but it never was the Star-Span-
* * * )led Banner.
To brighten the gloom from
the United States standpoint,
her athletes swept their heats of
... first M winner
N End Seen
DAYTON, O., July 30-(AP)-A
day that began with wild picket
line fighting and tear gas ended
tonight with a bare possibility the
86-day-old strike of United Elec-
trical Workers (CIO) at the Uni -
vis Lens Co. might be settled.
Gov. Thomas J. Herbert of Ohio,
plainly hinting troops were the
next thing, told union leaders
bluntly he wanted no renewal of
violence when the plant reopened
He ordered them to "cut out
that bunk about spontaneous"
when they protested that they
could not control sympathizers
demonstrating at the plant.
Then, in a conference with
company officials, Herbert helped
work out a proposal-still abso-
lutely tied to a promise of a peace-
ful Monday morning-to get un-
ion leaders around a table with
company officials Monday after-
He promised to come himself to
City officials already had asked
and then cancelled a plea for the
governor to send troops to prevent
more violence in the 86-day oldj
strike of the United Electrical
Workers at the little Univis Lens
The governor brought Adjutant
General Chester W. Goble for an'
afternoon meeting with Mayor
Louis Lohrey, City Manager Rus-
sel E. McClure, Police Chief Ru-
dolph Wurstner, City Law Director
Herbert Beane and Montgomery
County Sheriff Ben Smith. The
governor hoped to talk to Lou
Kaplan, director of the strike, and
other union officials later.
the 100-meter dash, clipped off
the fastest time in the prelimi-
naries of the 800-meter run,
and joined one of Sweden's sons
in setting a new Olympic record
for the 400-meter hurdles, sub-
ject to ratification.
Greatest individual hero of
opening day was Emil Zatopek, a
blond Czech Army Lieutenant,
who ran away from a host of
rivals to set a new Olympic rec-
ord of 29 minutes, 59.6 seconds in
the gruelling 10,000 meter run.
Roy Cochran, the 29-year-old
University of Southern California
instructor, and Rune Larsson of,
Sweden were the others who gave
the crowd a taste of record shat-
tering at the outset of the games.
Each won his second heat of
the 400 meter hurdles in 51.9
seconds, compared to the Olym-
pic record-f 52 flat established
by Glenn Hardin of the United
States in 1932.
The final of that event is sched-
uled tomorrow, and prospects are
for a thriller between Cochran
and Larsson. Another American,
Dick Ault of the University of
Missouri, placed among the sur-
viving six, but his time of 52.1 be-
hind Larsson in his second heat
held out little hope for him.
Harrison Dillard, until recently
mainly noted as the world's great-
est hurdler, flung out a genuine
challenge for the 100 meter title
when he twice spun the classic
sprint in 10.4 seconds in winning
his preliminary heats.
That is only a tenth of a sec-
ond behind Jesse Owens' rec-
ord of 10.3 seconds, set in win-
ning the event at Berlin on the
road to his triple crown.
Mel Patton of the University of
Southern California also ripped
off a 10.4 clocking in winning his
See AMERICAN, Page 3
WASHINGTON, July 30-()-
Marshall Plan officials announced
today a new system for breaking
a European trade logjam with a
lever of American dollars.
Paul G. Hoffman, Economic Co-
operation Administrator, called it
"a mile-stone in real cooperation
among the European countries.
Hoffman, just back from Paris,
said the 16 ECA countries and the
U.S. had agreed to start the new
plan Oct. 1.
It will work this way:
The U.S. will supply dollars to
European countries which sell
more goods to other countries than
those countries buy from them.
Belgium, for instance, sells more
to France than France sells to
Belgium. The result is that France
runs short of Belgian money and
can't buy all the Belgian goods it
For War Crimes
NUERNBERG, Germany, July
30-(P)-An American military
tribunal today sentenced 13 di-
rectors of the I. G. Farben chem-
ical combine to serve prison terms
ranging from 18 months to eight
The penalties were the mildest
yet imposed in the series of war
crimes trials here.
A few hours later a dozen of the
directors walked out of Nuernberg
jail, free men for the first time
since their industrial empire
crashed along with Hitler's Third
Reich. None had specific plans
but several said they expected to
be back in their scientific jobs
with the Farben chemical combine
in either the American or French
Ten of the defendants who
walked away free were acquitted
outright on all war crimes charges.
Two others were convicted but
their sentences were so light that
credit for the time they already
had served in jail meant their im-
mediate release. Actually only
seven of the industrialists will re-
main behind bars for any length
of time. The sentences will be
served in Landsberg Prison.
Those convicted were found
guilty of plundering Germany's
neighbor countries or using Hit-
ler's slave labor program to fur-
ther their own ends. There were
24 defendants when the trial be-
gan 11 months ago. Later Max
Brueggermann was severed from
the case because of illness.
One of the court's four judges,
Paul M. Hebert of Baton Rouge,
La., protested the judgment was
too lenient and served notice he
would file a dissenting opinion.
Members of the court, in addi-
tion to Herbert, were Presiding
Judge Curtis G. Shake of Vin-
cennes, Ind.; James Morris of Bis-
marck, N.D., and Clarence F.
Merrell of Indianapolis, Ind.
The following sentences were
imposed on the defendants con-
victed on the slave labor charge.
Carl Krauch, chairman of the
board of the once-great, billion-
dollar firm, six years; Fritz Ter
Meer, seven years; Otto Ambros,
eight years; Heinrich Buetefisch,
six years; Walter Duerrfeld, eight
On the charge of plundering
and despoiling Nazi -occupied
countries the following setences
Herman Schmitz, four years;
George Von Schnitzler, five years;
Ernest Buergin, two years; Paul
Haefliger, two years; Max Ilgner,
three years; Friedrich Jaehne, 18
months; Heinrich Oster, two
years; Hans Kugler, 18 months.
Two Bodies in
BIRMINGHAM, Ala., July 30-
(P)-Rescue workers in the depths
of Edgewater Mine reported to-
night finding two more bodies in
an area ripped this morning by a
gas explosion. The toll thus
reached three dead and 13 injured,
The dead were listed as William
Gragg, 38; Eddie Jones, 18, and
Sandy Gary, 43. Gragg's body was
recovered earlier in the day.
A company spokesman said two
to four miners were still missing
in the big coal mine operated by
the Tennessee Coal, Iron & Rail-
The blast was in the deepest
section of the mine, approximately
four miles from the shaft entrance
and 300 feet underground.
Miners at the scene said earlier
that possibly from 12 to 30 men
were believed trapped. But as the
day progressed, mine officials
checked each of the 300 employed
on the morning shift until they
had narrowed the missing down to
Casbah To Star
T7 7 C.
May Deal with
WASHINGTON, July 30-()-
The United States, Britain and
France may seek to carry direct
to Premier Stalin their new joint
request for an end to the Soviet
blockade of Berlin.
This possibility came in for
public speculation today after the
State Department received word
from American Ambassador W. B.
Smith in Moscow that Soviet For-
eign Minister Molotov is away
from his office "on vacation."
Smith has just returned to
Moscow from widely publicized
conferences with other American
diplomats in Berlin and London.
He and British and French envoys
had proposed to see Molotov im-
Some officials here suggested
that the Soviet government may
have preferred that Molotov be
The State Department disclosed
receipt of Smith's message at a
news conference held by Press
Officer Michael McDermott. The
note said that while Molotov was
away Deputy Foreign Minister Va-
lerin A. Zorin would act for him.
Several possible next moves were
foreseen here on the basis of this
1. Smith and the other western
envoys may deal with Zorin on
preliminary arrangements. They
may advise him officially that
they want to talk with Molotov-
and perhaps other top Soviet offi-
cials-about the Berlin crisis.
2. If Zorin indicates that Molo-
tov's absence will last more than
a few days, they may ask for a
conference with Stalin.
3. If Zorin indicates that Molo-
tov will be back in Moscow very
soon, they may decide to wait for
Diplomats here saw a possibil-
ity that Molotov's "vacation" may
be largely a device for delaying
the meeting with western ambass-
adors until the Soviet Government
has time to consider what response
it wants to make to their ap-
DETROIT, July 30-()-The
Hudson Motor Car Co. today an-
nounced a suspension of Automo-
bile production due to a shortage
of castings furnished by a strike-
bound supplier plant.
The company said approxi-
mately 20,000 workers are affected.
In a statement announcing the
suspension, Hudson said it result-
ed directly from a seven-week
strike at Campbell, Wyant and
Cannon Co. at Muskegon, Mich.
WASHINGTON, July 30-(P)-
Elizabeth T. Bentley, who said she
fell in love with a Communist and
became a Russian spy, calmly un-
wound today a story of collecting
wartime military information
from William W. Remington in
the War Production Board.
She appeared before the Senate
Investigating Committee inquiring
into reports of subversive persons
holding responsible government
Remington, still on the Gov-
ernment payroll but placed on "in-
WASHINGTON, July 30-(P)-
Marriner S. Eccles - who was
ditched by President Truman as
Federal Reserve Chairman-tes-
tified today that Mr. Truman's
anti-inflation proposals are futile,
contradictory and do not make
The millionaire Utah banker
and veteran of the New Deal gave
Republican members of the Senate
Banking Committee a gleeful af-
1. Saying he was demoted as
Reserve chairman because "ap-
parently I became a political lia-
bility to the Truman Administra-
2. Crediting the Democratic-
controlled Congress and Truman
administration with removing
wartime controls too soon.
3. Comparing the new Truman
proposals to "trying to put hump-
ty dumpty together again" and
"trying to fill up a bathtub witl
the stopper out."
4. Repeating his forecast of an
economic bust and adding a new,
twist that if deflation comes this
fall "the sooner the better."
5. Testifying that the proposed
tightening of bank and consumer
credit controls was "drawn by the
White House and not by the Fed-
eral Reserve System" and would
actually weaken the Federal Re-
serve unless applied also to banks
not belonging to the system.
After several hours of this tes-
timony, most of it in reply to
queries by Republican Senators, a
reporter asked Eccles if he is plan-
ning to quit his place on the Fed-
eral Reserve Board of Governors.
"I certainly am not," he replied
firmly. "This is no time to do a
Eccles vigorously opposed as
"inflationary," the long - range
housing program asked by Mr.
Truman and already passed by
definite leave" from his Commerce
Department post more than a
month ago, will get a chance to
tell his side of the story tomorrow.
He could not be reached for
Miss Bentley identified Rem-
ington as a man who paid dues
to the Communist Party. Com-
merce Department officials said
he has been working most recent-
ly with an inter-agency commit-
tee that has the say-so on what
goods may be shipped to Russia.
They also said he was trained
in Russia by the Navy and did
wartime work as a Naval intelli-
gence officer in London after his
Miss Bentley, 36, who said she
was a 1930 graduate of Vassar
College, said she decided to quit
her Communist work-centering
in New York and Washington-
in 1944, and a year later went to
the Federal Bureau of Investiga-
tion office in New Haven, Conn.,
with her information.
In Red_ Party
WASHINGTON, July 30-(/P)-
William W. Remington, Commerce
Department official accused today
before a Senate committee of hav-
ing given wartime military infor-
mation to a Russian spy said to-
night "I am not and never have
been a member of the Communist
Elizabeth Bentley, a one-time
agent of the Communist party who
later left it and told the Federal
Bureau of Investigation what she
had been doing, had implicated
Remington before the Senate com-
In addition to getting informa-
tion from Remington, she said she
had collected Communist dues
from him although he was "a bit
irregular" about paying them.
Remington tonight denied Miss
Bentley's assertions and expressed
confidence he can prove his inno-
cence when he appears before the
same Senate committee tomorrow
It has been inquiring into re-
ports that important government
posts have been held by persons
with subversive tendencies.
At a news conference tonight,
he said at the time Miss Bentley
contacted him he was only 24
years old. He is now in his early
"I admit I was very gullible. I
did things I would not do now."
He said the "dues" were what he
believed were contributions to ref-
gees and needy persons who fled
SYMBOL OF DEATH-Against the background of the blasted ruins of the giant Y. G. Farben. chem-
ical plant at Ludwigshafen, rescue workers carry a wooden coffin for one of the several hundred
employees who perished in Europe's greatest postwar disaster. Following the original explosion, a
series of minor blasts touched off a raging fire which reduced output of the huge conoern to 50 per
Former communist Says U.S.
Aide Revealed War Secrets
WASHINGTON, July 30-(P)-
The fight over inflation surged
to a new height of bitterness today
with President Truman accusing
Congress of "blind disregard of
the dangers that beset our path."
Senator Taft (Rep., Ohio),
sharp tongued spokesman for Re-
publicans in the Senate, shouted
back that Mr. Truman actually
"doesn't want to stop inflation."
Instead, Taft told the Senate,
he is "making political speeches to
Accuses Taft -
Senator Barkley (Dem., Ky.),
vice presidential running mate of
the President, got into the quarrel
by saying Taft himself was mak-
ing a political speech. Taft talked
of winding up the special session a
week from tomorrow.
While all this was going on,
Congress committees heard:
1. From Secretary of the Treas-
ury Snyder that he doesn't like
price controls any more than he
does castor oil, but that in an
emergency resort must be had to
2. From Presidential assistant
Paul A. Porter, former OPA chief,
that petroleum and petroleum
products would be among the
itemsto get "first consideration"
if Mr. Truman should induce Con-
gress to approve price controls,
Porter previously had included in
this group meats, dairy products,
clothing, building materials, steel
and some other metals.
Meanwhile, the quiet Southern
filibuster against an anti-poll tax
bill droned on in the Senate.
Today's fireworks on inflation
were set off by a bristling letter
Mr. Truman sent to Capitol Hill
along with the midyear report of
his Council of Economic Advisers.
The report told of peacetime or
all time records piled tip in em-
ployment, wages, production and
trade. It recorded, too, the dizzy-
ing climb of prices.
Mr. Truman said that heavy
spending for defense and foreign
aid , third round postwar wage
boosts and the probable wiping
out of the Government's money
surplus within the next year are
contributing strongly to inflation.
"We are in the very midst of
gathering inflationary forces,
which day by day are imposing
additional hardships upon count-
less families, he told the lawmak-
S* * *
To Halt 'Bust'
WASHINGTON, July 30-(A-
President Truman read the na-
tion's economic temperature to-
day, pronounced it feverish, and
called afresh on Congress for laws
to "forestall a business collapse."
Presenting his midyear economic
report to Congress, Mr. Truman
said inflation does not run accord-
ing to any set schedule. He added:
"It may not be true that 'a
boom is always followed by a
bust,' as many students of bus-
iness affairs frequently say.
"But it would be reckless to
assume that the bust will not
happen if we neglect action to
control the boom."
The President once again urged
a sheaf of anti-inflation measures
-power to control prices, wages,
and credits; rationing authority;
revival of the excess profits tax
Those were the same items he
proposed in his message to the
extra session Tuesday; they were
the ones which the Republican
leadership in both houses have
The President wrote that "thus
far we have shown a blind dis-
regard of the dangers that beset
"Despite my repeated warning
and recommendations," he added,
"we have not adopted adequate
legislation for controlling infla-
"The failure to control infla-
tion effectively in the past makes:
World News At A Glance
By The Associated Press
NEW YORK, July 30-President Truman and his Republican
White House rival, Gov. Thoms E. Dewey, will see the Nation's great-
est peace-time display of air power together tomorrow.
The mighty show will follow the President's dedication of an-
other study in superlatives-the huge New York international airport
at Idlewild on Long Island's south shore.
OTTAWA, July 30-Prime Minister MacKenzie King an-
announced tonight Canada's acceptance of Newfoundland into
the Canadian confederation.
He said it would seem that the result of Newfoundland's vot-
ing in favor of union with Canada is "clear and beyond possibility
* * *
BERLIN DYNAMITE KEG:
U.S. Fears Russia May Close Air Lane
BERLIN, July 30-(MP)-Amer-
ican officials speculated tonight
sions. "The continuing interest of
all reserve offieers in their com-
they might try to close the air