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August 01, 1948 - Image 1

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Michigan Daily, 1948-08-01

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SUNNY AND
PLEASANT

Latest Deadline in the State
VOL. LVIII, No. 198 ANN ARBOR, MICHIGAN, SUNDAY, AUGUST 1, 1948

PRICE FIVE CENTS

Taylor Says
Major Parties
Bury Issues
Charges Headed
For 'Fascism'
GRAND RAPIDS, Mich., July 31
(IP)-Senator Glen H. Taylor, of
Idaho, tonight accused the Repub-
lican and Democratic parties of
combining forces in Congress "to
bury every important issue with
talk."
The Progressive Party Vice
Presidential candidate said in a
radio speech that the current fili-
buster in the Senate "is a filibus-
ter of both old parties." He add-
ed:
"It is not a filibuster on the poll
tax alone. It is a filibuster against
price control and housing and se-
curity as well. And it is a fili-
buster which exists only because
both parties want it to exist.
Guarantees
"It is the guarantee that the
Democrats can preserve state
rights over human rights, and the
Republicans profits over prosper-
. . ity "#
Taylor said that the Democratic
party is "controlled by the mili-
tary men and Wallstreeters." He
charged that the Repubican Party
is subservient to "the monopolists
and special interests groups - of
this country."
New Progressive Party wants to
"preserve our democratic form of
government," he said.
"We are not at all certain," he
added, "that our economy or even
our democracy can withstand the
greaw economic upheaval toward
which "we are rushing because of
the monopolistic and militaristic
policies of the bi-partisan coali-
tion."
Wallace Candidacy
Taylor told his audience . that
the nation is fortunate to have in
Henry Wallace, Progressive Presi-
dential candidate, "a. man willing
to face the abuse, the Red-baiting,
'he vilification and ridicule and
peak out against this aness."
Of himself, he said:
"I don't know what the out-
come of this political campaign is
going to be. I know that I will be
fortunate if I retain my liberty
and freedom of action because we
have gone a long way down the
road toward fascism."
Taylor opened his speech with a
blistering attack on the press,
which he accused of distorting
]news, emitting news "contrary to
the big business point of view and
deliberate falsehoods which are
fed to the people by syndicated
writers and editorial columns."
'All Time Low'
"I am forced to state," he said,
"that some of the syndicated col-
umnists (which he did not name)
have reached an all time low in
the way they have deliberately
misrepresented the events which
transpired at the recent Pro'gres-
sive convention. Their flat state-
ments that Communists were in
control for example had no foun-
dation in fact."
"In view of the degeneration of
the press into a tool of special in-
terests, we can be thankful for the
development of radio.
TV Enlightenment
"I believe that television will be
an even greater instrument for the
enlightment of the American peo-

ple. Neither an editorializing col-
umnist nor a radio commentator
can distort the facts when the
people 'can both see and hear what
is transpiring."
Senator Taylor held meetings
with party officials here and in
Detroit prior to his speech to-
night.
"If I ever became convinced that
such was the case, I'd leave it," he
told reporters.
The Senator, accompanied by
his wife, Dora, and three sons,
Arod, 13; Paul John, six, and
Gregory, two, told interviewers at
the press conference that the new
Progressive party is not Commu-
nist dominated.
losson To Spea
At Willow Village
Prof. Preston W. Slosson, can-
didate for the Democratic nomi-
nation as Congressman from the
Michigan Second District, will
sneak on "The Taft-Hartley Law"

Truman's Control Plans
Called Failure by GOP
Capehart Cites Public's Lack of Interest
In President's Anti-Inflationary Proposals
WASHINGTON, July 31-(P)-Republicans contended today that
President Truman's demand for price control and rationing authority
has flopped with the public.
In support of this view, Senator Capehart (Rep., Ind.) told a
reporter that despite an open invitation by Chairman Tobey (Rep.,
N.H.) the Senate Banking Committee has not received even one
request for permission to testify on the anti-inflation question.
Not Interested
"The public just doesn't seem to be interested in this problem-
at least, if it is, it isn't taking the usual methods of letting Congress
know about it," Capehart said.
"Ordinarily when the President brings some program before

Molotov,

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KENNETH C. WHEARE
to conclude lectures
'' * * *
Prof. Wheare
To EndSeries
The University's Summer Lec-
ture Series on "The Economic Re-
construction of Europe," will end
this week with two lectures by
Prof. Kenneth C. Wheare, promi-
nent British political scientist.
Prof. Wheare, of the University
of Oxford, will discuss "Ideolog-
ical Conflicts and Reconstruction,"
in the talks. His specific topic will
be British economic policy and re-
construction at 8 O p.m., Tuesday,
in the Rackham Lecture Hall.
Later, heawill review the "political
factors" in European recovery, at
4:10 p.m., Thursday, in the Rack-
am Amphitheatre.
The speaker is a native of Aus-
ralia and a graduate of the Uni-
versity of Melbourne. He entered
the University of Oxford as a
Rhodes Scholar in 1929, and be-
came a member of the faculty in
1934.
Prof. Wheare is the author of
several books.
Old Chimney
Stands Fast
A tough, 52-year-old Univer-
sity chimney behind the West En-
gineering building came out with
a draw in a battle with demoli-
tion workers yesterday.
The wrecking crew swung a
heavy steel weight to and fro from
a boom to shatter bricks loose
from the campus landmark. How-
ever, eighteen feet of stone foun-
dation and brick still stand ami
broken bricks and rubble.
The chimney and heating plant
were built in the summer of 1894
when the 1879 plant proved in-
adequate.

/Congress, we get heavy mail for
and against it. But I have received
less than 25 letters and telegrams
about the President's proposals."
Other key Republicans reported
the same lack of response.
At the same time, however, the
Democratic National Committee
said in its weekly "Capital Com-
ment" that "many" of the "plain
people" of the country had written
and wired to President Truman
and Democratic leaders in support
of the program.
Trained Seals
"President Truman's program
for the special session of Congress
made sense to almost everybody
but the Republican Congress and
the journalistic trained seals and
editorial writers dedicated to the
defense of that do-nothing legis-
lative body," the party organ de-
clared.
Capehart said the Banking Com-
mittee may be able to get down
by midweek to drafting legislation
leaders expect to bring before the
Senate by Thursday or Friday.
Senator Taft (Rep., Ohio) has said
Congress probably will adjourn
next Saturday.
Capehart said he thinks a com-
mittee majority might be willing
to recommend a return of install-
ment buying controls and the
tightening of bank, credit. The
Senate passed installment curb
legislation which now is pending
before the House.
No Indication
There has been no indication,
however, that the Representatives
will act on it. They may take up
later in the week, however, a
Senate-approved measure to au-
thorize a $65,000,000 loan to build
a permanent headquarters for the
United Nations in New York City.
The Senate, tied up in a South-
ern filibuster against the Anti-
Poll Tax Bill, may see some action
on that score Monday.
Senator Wherry of Nebraska,
acting GOP leader, told reporters
he will file a petition to limit the
Anti-Poll Tax debate early in the
week.
Regulations
Such a petition called cloture,
requires the signatures of 16 Sen-
ators. If approved by a two-thirds
vote it would limit each Senator
to an hour's talk.
"We might as well recognize
there is a filibuster and take what-
ever steps we can to end it,".
Wherry said.
If the cloture move fails-as
many believe that it will-Wherry
said the next Republican move
may be to try to change the Sen-
ate rules.
The cloture petition seemed like-
ly to be rejected by Senator Van-
denberg (Rep., Mich.), the Sen-
ate presiding officer, as out-of-
order.
Wherry said the Republicans
could appeal the ruling.

woman Says
Currie, Whi te
Gave Secrets
Rankin, Thomas Ask
Grand Jury Inquiry
WASHINGTON, July 31- P)-
A woman who confessed she spied
for Russia told amazed Congress-
men today that one of the late
President Roosevelt's confidential
aides and a former Assistant Sec-
retary of the Treasury gave out
wartime secrets which reached the
Soviets.
She named them as:
Lauchlin Currie, Nova Scotia-
born administrative assistant to
Roosevelt from 1939 to 1945, and
Harry Dexter White, former As-
sistant Secretary of the Treas-
ury.
The testimony came from
Elizabeth T. Bentley, 36-year-
old Vassar graduate, who ap-
peared before the House Com-
mittee on Un-American activi-
ties.
Simultaneously, a Senate sub-
committee headed by Senator
Ferguson (Rep., Mich.) was
questioning William W. Rem-
ington, 30-year-old Commerce
Department official, whom Miss
Bentley named yesterday as a
Communist who supplied her
with secret information during
the war.
Remington has denied that he
ever belonged to the Communist
Party, or that he ever gave Miss
Bentley any secret or confidential
information.
Chairman J. Parnell Thomas
(Rep., N.J.) of the House com-
mittee demanded that a special
grand jury be summoned in Wash-
ington to look into "espionage in
government."
Seconding the demand, Rep.
Rankin (Dem., Miss.) declared
that the grand jury's inquiry
should be broad enough to take
in state, county and city em-
ployes too.
Miss Bentley told the commit-
tee that although Currie was
not a Commnunist, he '"gave us
some information, he had in-
side information on government
policies." Due to Currie, she
said, information reached the
Russians that the United States
was about to 'break' the Rus-
sian code.
She testified that White, the
Treasury official, gave informa-
tion to one N. Gregory Silvermas-
ter which was relayed on to her
and eventually to the Russians.
She described Silvermaster as a
Communist and agent of the Rus-
sian secret police who was em-
ployed at the time by the U. S.
Farm Security Administration.
He no longer is with the govern-
ment..
Miss Bentley named several oth-
er former government employes.
She said there were two principal
"groups" in the government with
which she dealt: the Silvermaster
group and the Perlo group. The
latter, she said, was headed by
Victor Perlo, formerly employed by
the War Production Board.
She testified that the Perlo
group included: Allen Rosen-
berg of the Foreign Economic
Administration, Donald Wheeler
of the Office of Strategic Serv-
ices, Edward Fitzgerald of the
War Production Board, Harry
Magidoff of the Commerce De-
partment and Charles Cramer,
whom she identified as a former

employe of a Senate Education
and Labor Subcommittee.
She said Cramer told her he
was a long-time member of the
Communist Party, and she added
that Rosenberg, Wheeler and
Fitzgerald also belonged to it.
(Robert E. Stripling, counsel for
the Un-American Activities Com-
mittee, said later that Cramer's
real name is Krivitsky.)

HIGH AND DRY-Canadian coastwise steamer Sardena shown with her nose well in th
her midsectioh bedded deep in reef at False Bay, British Columbia. The 1,500-ton vessel en
this position when she crashed into the reef during a recent run.

Large Profits
Mark Trend
Of Industries
Oil Companies Show
Greatest '48 Gains
NEW YORK, July 31-(IP)-High
profits, with oil companies in the
lead, are marking the trend for
American industry in the first half
of 1948, an analysis of earnings
reports showed today.
Terrific gains compared with
1947 are common. "Highest in
history" is a phrase repeated con-
stantly.
But at the same time, there was
a clearly marked slowing down
here and there in the rate that
profits increased this year over
last.
Companies are not embarrassed
with their explanations of these
mounting profits. They point to
the sharp decreases in the rate of
profit gain in other companies
and say: "This could happen to
our company."
"Wages for workers have gone
up, so why not increased wages
to stockholders, too?"
There is growing talk about
"break-even points." Gross income
must be very high before profits
appear, companies explain, but
when gross income drops the prof-
its will disappear rapidly. Further-
more, cost of replacing equipment
has soared.
That is a plow-under program.
They hope to reap a harvest of
profits in the lean years. "We are
growing fat now," said one execu-
tive, "but the lean years are sure
to come."

KITTEN FOR THE ASKING:
Former Play Pro Actre
In Search of New Home

A distinguished local stage ac-
tress is looking for a home.
She is "Uncle Elizabeth," feline
lead in "I Remember Mama." With
the closing or the play, Uncle Eliz-
abeth must either ,ind a perma-
nent home of be returned to the
Humane Society, by her 'agent,'
Marcia Miller, '49.
Miss Miller, who signed up to
work in the play's properties de-
partment, met "Uncle Elizabeth
when she innocently told the play
U.S. Attorneys
Meet on Black
GOP Charges
DETROIT, July 31-(/P)-Michi-
gan's U. S. District Attorneys met
in a private conference here to-
day,
Although there was no official
confirmation, it was assumed that
the talk dealth with Attorney
General Eugene F. Black's charges
against Republican Party leader-
ship.
Recently Black said he had rea-
son to believe GOP heads had per-
mitted irregularities in the han-
dling of political campaign funds.
Black's statement brought heat-
ed denials from the party leader-
leadership and he was invited into
court to prove his charges,
Joseph F. Deeb, U. S. Attorney
for Western Michigan, cane un-
heralded to Detroit today to talk
with Thomas P. Thornton, who
heads the similar Federal office
for Eastern Michigan.
If any corrupt practices charges
are brought-as Black as inti-
mated-the procedure would be in
the Federal courts.
The statement said the informa-
tion related to "matters within the
jurisdiction" of the Eastern Ju-
dicial district.
"What has been received today
is being turned over to the U. S.
Attorney for the Eastern District
of Michigan for his considera-
tion."

director that "she di
mais." The kitten, hal
at the awkward aig
ward from then on.
Ready for the Cue
Up to the fourth an
formance last night,
spent her time seein
feline protege had a
dages in place and the
ket was ready for thec
In the play Uncl
is the, pet of Dagm
nine year old daughte
is just "Elizabeth"
brother Nels reveals t
life,' that 'she' is a 'h
tually Uncle Elizab
should be Elizabeth.)
Great Moment
High point for the r
tress is when, after,
counter with a dog, sh
be dying. Despite th
of Dagmar, the famil
chloroform her. Howes
only gives Uncle t
chance to get well an
tion that "Mama car
thing!" continues.
Today, Uncle ElizabE
actress, but she doesn'
She would like tot
apartment at 520 Jef
enjoy crawling into
and playing the "extro
delight of Miss Mill
roommate, Ennid Kirk
The only. flaw is
Elizabeth is a "temp
in the building and mi
morrow er Tuesday.
Well Trained Feline
Besides having a r
petite for everything f
potatoes to rolls an
people eat in the mar
tors watch a ping-pon
cle Elizabeth is a
feline. She is playf
fectionate, but sleeps q
kitchen at night with
a sound-traits she p
the home of an Ann A
who left the city and
pet over to the Huma
If you know of a
former actress witht
position, telephone Mi
2-0666.

Officials
Soviets Hear
SLatest Plans
To Negotiate
Diplomat Back with
.:.wi 'SurprisingSpeed'
(By The Associated Press)
Representatives of the Western
Powers were granted unexpected
interviews with Russian Foreign
' .'"t Minister V. M. Molotov last night
he?> during which they gave him their
latest proposals for settling dif-
ferences between the East and the
West.
U. S, Ambassador Walter Bedell
Smith conferred for more than an
hour with the Soviet official.
Frank Roberts, Britain's special
envoy, said he also was granted
an interview. French sources in-
dicated that Yves Chataigneau,
their Ambassador to Moscow, like-
wise had seen Molotov.
Neither Smith nor Roberts
c air and would comment on the nature
ded up in of their conversations with the
Russian official.
The Russian foreign office had
said Friday that Molotov was
"not in Moscow" and the speed
with which he returned to the
Soviet capital surprised Ameri
ss can spokesmen,
In London, a responsible British
diplomat said the U. S., Britain
and France had given to Russia
in writing their terms for enter-
ing into four-power negotiations
fd like ani- to etd the East-West cold war,
e-gr wn an The British diplomat said the
western statements made it clear
that:
1-They reject Russia's argu-
d final per- 'ment thit their right to remain in
Miss Miller Berlin has been forfeited by their
tg that her decision to set up a West German
11 her ban- Government,
at her blan- 2-They intend to stay in Ber-
cue. lin.
e Elizabeth 3-They are prepared to talk
ar, Mama's about differences all over Europe.
r. Her name 4-While ready for these talks
until older on the highest levels, they first ex-
he 'facts of pect Russia to restore traffic links
e.' (But ac- between Berlin and the western
eth's name occupation zones.
The Moscow developments
coincided with signs elsewhere
homeless ac- that relations between East and
a brief en- West are at the moment on the
e appears to downgrade.
Le pleadings Molotov's ranking deputy, An-
y decides to drei Y. Vishinsky, Soyiet dele-
ver the sleep gate to the Danube Conference
Elizabeth a in Belgrade, meanwhile chal-
d the tradi- Inged the Western Powers to ac-
n do every- cept Eastern bloc decisions in
the conference or to take a walk.
eth is an ex- Vishinsky, conscious of the fact
t mind that. that Soviet satellites form a ma-
stay in the jority behind him at the confer-
fferson, and ence, told Britain, France and the
paper bags United States:
vert" to the "The door was opened for you to
er and her come in. The door is open for you
, Grad. to go out."
that Uncle Another example came from
orary guest" Berlin where attention was cen-
ust leave to- tered once more on the possibility
that the Soviets might try to close
one or more of the air corrdiors
avenous ap- by which the United States and
rom mashed Britain are feeding the people in
d watching blockaded western Berlin.
nner specta-
g game, Un-
well-trained ord Prices
ul and af-
.uietly in the To RiseAgai
out making
)icked up in

rbor woman DETROIT, July 31--P)-Prices
1 turned her of Ford Motor Co. passenger cars
ne Society, are going up again for the second
home for a time in less than two months.
a great dis- A company spokesman con-
ss Miller, at firmed that a price boost is pend-
ing but did not say what it would
amount to.
"We are still analyzing our costs
in relation to the recent increase
in the price of steel and the sub-
stantial wage increase granted to
o employes," a company source said.
However, he added, dealers have
been notified that a price increase
may be expected "within a few
irl punches days."
of dough. The company recently granted
out 750,000 the CIO United Auto Workers a
urs, slightly 13 cent an hour wage increase for

World News At A Glance
(By The Associated Press)
DETROIT, July 31-The Detroit Edison Co. today raised wages
and salaries of its 10,000 employes in Detroit and Eastern Michigan.
Hourly rated employes of the utility firm were boosted 11 cents
an hour. Salaried workers got a nine per cent increase. Both were
retroactive to July 26.
* * * *
TORONTO, Ont., July 31-Canada's special austerity 25
per cent Excise Taxes were abolished tonight in a series of gov-
ernment announcements from Ottawa.
* * * *
WASHINGTON, July 31-Federal civilian payrolls rose to 2,092,301
in June, an advance of 26,004 over the May total, the Joint Committee
on Reduction of Nonessential Federal Expenditures reported today.
WASHINGTON. July 31-Two rival unions announced plans
to set up efforts to win a third round of postwar wage increases
from the telephone industry.
* * * *
FLINT, July 31-Officials of Local 659. CIO United Auto Workers

Exams Ignored

-II

Police are searching the city
today for a thief.
Their only clue is that the man
if definitely not a student..
The purloiner made off from
Strauss House, East Quadrangle,
with an 8-11 inch steel box con-
taining old examination papers,
But one mistake removed 9,000
scholars as suspects. According to
the Ann Arbor Police, the villian
took the box, valued at $10 and
left the exams.

STOREHOUSE IN DENVER:
MintEmploye Guards Stored G
in m OB RGT (O2B

DENVER, July 31--(P)-"Keep-
ing an eye" on five and three-
quarter billion dollars worth of
gold is one of the jobs of Moses

The employes don't have a
chance to get rich even acciden-
tally.
- .. ,1 . , . , i,.:. ..,.ie .i .- ...

siasm as a hired g
cookies from a sheett
They can punch
pennies in eight hoi

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