STONE MOUNT DRAMA AIN Lw uy r n :43 tii GENERALLY FAIR See Pale 2 Latest Deadline in the State VOL. LVIII, No. 197 ANN ARBOR, MICHIGAN, SATURDAY, JULY 31, 1948 PRICE FIVE CENTS Tildy Resigns As Hungary Chief-of-State Tighter Control 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 country. 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 country. Son-in-law Arrested 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- ica. Written Evidence 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. Hearing Date Set on Natural Gas Petition 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- sumed. 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 service. 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 that area. 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 Michigan Captain Ris, Carter, Ford. Not Pressed in Games; Advance to Century Final BULLETIN 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 HERB BARTEN ... first M winner N End Seen To 86-Day-old DaytonStrike 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 Monday. Governor's Order 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- noon. He promised to come himself to preside. City Officials 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 Co. plant. 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 New System' To AidEurope 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 wants. U.S. Tribunal Sentences 13 Farben Men Penalties Mildest 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 years. 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 occupation zones. Ten Freed 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. Court Members 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 years. Despoilers On the charge of plundering and despoiling Nazi -occupied countries the following setences were imposed: 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. Rescuers Find Two Bodies in Mine Disaster 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, two critically. 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- road Co. 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 a handful. Casbah To Star T7 7 C. West Powers May Deal with Stalin Directly 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." Just Returned 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- mediately. Some officials here suggested that the Soviet government may have preferred that Molotov be unavailable. 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. Possible Moves Several possible next moves were foreseen here on the basis of this information: 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. Stalin Conference? 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 him. 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- proach. Halts Production 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 jobs. Remington, still on the Gov- ernment payroll but placed on "in- Eccles Terms Truman Plans 'Contradictory' 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 economic sense. The millionaire Utah banker and veteran of the New Deal gave Republican members of the Senate Banking Committee a gleeful af- ternoon by: Political Liability 1. Saying he was demoted as Reserve chairman because "ap- parently I became a political lia- bility to the Truman Administra- tion." 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." The Sooner' 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. Big Question 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 run out." Eccles vigorously opposed as "inflationary," the long - range housing program asked by Mr. Truman and already passed by the Senate. 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 comment tonight. 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 WPB work. 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. Official Denies Membership 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 Party." 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- mittee. 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 morning. 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 thirties. "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 fascism. 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 cent. Former communist Says U.S. Aide Revealed War Secrets Anti-Truman Feeling Rises In Congress Economic Report Tells ofDanger 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 Congress." 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 distasteful remedies. Price Controls 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. All-time High 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- ers. S* * * Truman Calls On Congress 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 on business. 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 s'tiff-armed. The President wrote that "thus far we have shown a blind dis- regard of the dangers that beset our path." "Despite my repeated warning and recommendations," he added, "we have not adopted adequate legislation for controlling infla- tion. "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 of misunderstanding." * * * 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 corridors.