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VOL. LVIII, No. 201 ANN ARBOR, MICHIGAN, FRIDAY, AUGUST 6, 1948
PRICE FIVE CENTS
Group Seeks
New Witness
In Spy Case
Mundt Refuses to
Disclose Identity
:WASHINGTON, Aug. 5-(EP)-A
mystery witness has been found
who may "crack wide open the
whole Soviet spy case," the House
Un-American Activities Commit-
tee announced tonight.
Acting Chairman Mundt (Rep.,
S.D.) told reporters a subcommit-
tee is being sent out of town to in-
terview the witness. Mundt de-
clined to say who the person is, or
where he is located.
Earlier in the day, a congress-
man declared that 1,300 pounds of
precious compounds were shipped
to Russia "at the very height of
atomic research in 1943."
Uranium is a basic material for
atomic bombs. The first atomic
bomo in warfare was dropped on
Hiroshima three years ago today.
1Rep. McDowell (Rep., Pa.) told
about the alleged uranium ship-
ments to his colleagues on the
House Committee on Un-Ameri-
4 can Activities. It is one of two
Congressional units now digging
into charges that Communists in-
filtrated into high places in the
U.S. government during the war.
McDowell said the uranium was
shipped "after tremendous pres-
sure on all phases of our govern-
ment from known Russian agents
and others who had worked them-
selves into positions of impor-
tance." He said the uranium was
dispatched in two shipments from
"a small obscure airfield in this
country."
Meanwhile President Truman
described the spy flurry on Capi-
tol Hill as a "red herring" intend-
ed to veil congressional inaction
on his anti-inflation program.
The President issued a state-
ment saying the public hearings
on' the Communists are "serving
no ;iseful purpose" and are "do-
-1itg~Irrei ble charm'-* 'to. -certain
persons. He also said they are
"seliously impairing the morale
of federal employes and under-
mining public confidence in the
government."
President Truman said that no
information has been turned up
which has not long since been
presented to a federal grand jury,
or known to the FBI.
Undeterred by the criticism
from the White House, both com-
mittees went ahead with the in-
vestigations they began last week,
stemming from the testimony of
Miss Elizabeth T. Bentley, self-
described former Communist spy.
Trainer, Navy
Plane Collide;
8MenDead
MIAMI, Fla., Aug. 5--W)-A
Navy plane and a Stearman train-
er collided north of Miami late
today and the Florida highway
patrol said eight bodies had been
recovered from the wreckage.
The two occupants of the Stear-
man tailed out and were unhurt.
The Navy would not say how many
were aboard the Navy R4D, which
corresponds to the C-47 and the
DC-3.
The Navy plane was enroute
from Norfolk, Va., to the Naval
Air Station at suburban Opa-
alocka.
Bailed Out
The collision occurred one mile
northwest of Berry Field near
Hollywood, Fla. Tommy Poe, in-
structor, who was flying the
Stearman, and his student, John
Hackett, 21, bailed out.
Lt. Comdr. Ralph C. McGinley
of the Naval Air Station here said
it was not known how many naval
men were aboard the plan nor if
all were killed. He said no list
would be available until next of
kin had been notified.
J. H. Butts of Miami, who was
attending a barbecue in the vi-
cinity, said the small plane shot
up into the larger craft.
Going South
Butts, an airplane enthusiast,
was watching the two planes and
said both were going south to-
ward Miami.
"Tha trainer surdrenly shot nn
Israel Makes First Bid
For Peace Negotiations
Invitation Follows King Abdullah's Hint;
Proposal Placed Before Count Bernadotte
TEL AVIV, Israel, Aug. 5-O')-Israel's government today made
its first direct bid for peace negotiations with the Arab states.
The invitation followed hints by King Abdullah of Trans-Jordan,
key figure on the Arab side, that he is ready to consider a com-
promise to end the 11-week struggle.
The proposal was placed before Count Folke Bernadotte, UN
mediator, by foreign minister Moshe Shertok at the end of a three
hour talk.
Transmission
The request will be transmitted to the Arabs through the United
Nations.
Shertok previously had made public statements urging Arabs
Gto come to peace talks, but this
Houseasses A ti-InflationB
Soviets
Ease
erlIn Cash Curbs
'4 _____________________________________
--AA>
Russia May
compr'oise
Over Dispute
Ford Raises
Prices $75 on
New Models
Second Increase in
Rates Since June 18
DETROIT, Aug. 5-'P)-The
Ford Motor Co. today increased
the price of all but one of its Ford
models another $75.
The single exception was the
six-cylinder business coupe which
was cut $5.
Second Increase
It was the second increase by
Ford since the 1949 models were
introduced last June 18, and the
third in a little less than a year.
On Aug. 24 of last year Ford hiked
prices from $34 to $90; with in-
troduction of thetnew models $85
to $125 were added to the price
tags.
Today's increases average five
per cent. They bring to from $194
to $290 the increases For, has an-
nounced since Jan. 15, 1947, when
cuts of from $15 to $50 were made
in what Henry Ford II said was
an effort to halt inflation. .
The Ford price advances result,
a company announcement said,
from increases in material and la-
bor costs, and the necessity of re-
ducing present production volume
due to material shortages which
cause production interruptions.
Temporary Program
When Ford increased prices last
June it also froze dealers' dis-
counts at the 1947 levels. Under
this program, announced as only
a temporary one, the full amount
of the $85 to $125 increase went
to the manufacturer, instead of
being shared with the dealer on
the customary basis of approxi-
mately 25 per cent.
This action brought protests
from many dealers. There was no
indication in today's announce-
ment whether the same procedure
would be followed with the lat-
est price advance.
Virtually all other car manu-
facturers have advanced prices
this year, the latest being General
Motors which increased them on
all its cars an average of eight
per cent.- Still other increases
reportedly are in the making and
may be announced before the
year's end.
Expect Second Boost
Most industry quarters expected
a second increase by Ford follow-
ing settlement of the wage dis-
pute with the CIO United Auto
Workers last month.
The Ford reference to produc-
tion interruptions recalled that
some difficulty has been encoun-
tered in regaining the production
momentum attained before the
shutdown for the Ford model
change-over.
was his first official approach.
Always the Ar zbs have rejected
these feelers on the grounds that
peace negotiations would be a rec-
ognition of the Jewish state, some-
thing they have refused to enter-
tain.
Yesterday at his capital of Am-
man, however, King Abdullah told
a news conference his "Arab na-
tion does not exclude any possible
compromise that secures justice
and prevents unnecessary blood-
shed."
Refugees
During their three hours talk
Bernadotte and Shertok also dis-
cussed the problem of Arab refu-
gees, the status of Jerusalem and
other piroblems of the current
Holy Land truce.
As to the proposed demilitariza-
tion of Jerusalem, Shertok correct-
ed Bernadotte's statement in Am-
man that "both the Jews and
Arabs have accepted in principle"
the proposed withdrawal of all
arms and armies from the city.
Shertok said Israel had only
agreed to "discuss any or all
means of stopping the fighting in
Jerusalem." He said demilitariza-
tion was not the way to achieve
this.
World New&V
At a Glance
(By The Associated Press)
NUERNBERG, Germany, Aug.
5-German police said today Gen.
Friedrich Neumann of the Cze-
choslovakia Air Force slipped
across the border into the Ameri-
can zone of Germany July 21 as a
refugee from his Communist gov-
ernment. He was turned over to
U.S. Army investigators.
* * *
WASHINGTON, Aug. 5-The
White House was picketed today
by advocates of "effective civil
rights legislation."
Paul Robeson, singer and co-
chairman of the Progressive
Party, led the several hundred
pickets.
* * *
FRANKFURT, Germany Aug. 5
- Steel production in Western
Germany hit a new high in July,
it was announced tonight.
* * 4
WASHINGTON, Aug. 5-The
National Guard opened the door
today to more volunteers.
* * *
FRANKFURT, Germany, Aug. 5
-Forty-four men in a Russian
zone power plant were killed in a
coal dust explosion, the newspa-
per Frankfurter Neue Press said
tonight.
* * *
LANSING, Aug. 5 - Attorney
General Eugene F. Black today
advised all Michigan prosecutors
to suspend criminal proceedings
under the Bonnie-Tripp Act.
Contimlunist Ranks
Split in 1.S. Sectorw
BERLIN, Aug. 5-(U/P)-The Rus-
sians slightly relaxed their finan-
cial blockade of Berlin today as
this crisis-ridden city watched for
results of four-power diplomatic
maneuvering in Moscow.
The action indicated the Rus-
sians may be willing to work out
a compromise of the East-West
currency dispute here. Soviet au- EE
thorities have given the money SILVERMASTER TERMS CLIAJ
conflict as a reason for their im- (far right, arrow) sits in the w
position of the land blockade of "charges made by Miss Bentleya
te city.sbeth T. Bentley in which he w:
Meanwhile, the first openi
break in Berlin Communist cOmmnittee table, from left are:
ranks over the blockade was re- Edward Hebert (Dem., La.), Cl
ported during the day. A stormy ener (Rep., Mich.), Charles B.
meeting of the youth section of Chadwick (Rep., Pa.).
the Communist-controlled So- -- ---- ------
cialist Unity Party (SED) in the
American sector condemned the SAWDUST TRAIL*
blockade as a "crime against
humanity." lig o RCVI,
These developrments coincided
with reports from Moscow that a T
second meeting of British, Amer- To B n g)"Ch
ican and French diplomats with
Soviet Prime Minister Stalin may
be in the offing. CHICAGO, Aug. 5--')-A saw-
Charles Giffard, British finance dust trail for young folks now
officer, told a news conference of stretches around the world.
the Russians' financial action. He Youth for Christ International,
said the anti-Communist Berlin an organization that seeks to
city government had reached an 'make Christ available" to youths
agreement with the Russians for everywhere, has spread out to 50
the release of 'enough funds from countries.
blocked Russian mark accounts to The history of this religious
meet its weekend payments. movement is brief-and, its di-
A similar arrangement was rectors say, "amazing." It started
reached for business firms in the as a series of Saturday night re-
Western sectors of the city. Gif- vival sessions in a few scattered
fard said. Those concerns had been cities before World War II.
in a position of not being able to Sawdust Trail
meet salaries and other debts be- Young people-most of them 16
cause of the week-old Soviet to 20--gathered in auditoriums
squeeze on money. and public halls. They listened to
Giffard said as far as he songs, joined in hymns and pray-
knew "no strings were attached" ers, heard testimonials and ser-
to the Russian release of funds. mons. Many came up the aisle,
He added: "The present ar- the modern equivalent of the saw-
rangement appears satisfactory dust trail of. the old ten meet-
to the Western Allies." ings, to embrace religion.
Asked why the Russians should More and more towns adopted
suddenly swerve from their appar- the plan. Now there are 1,400 units
ent aim of achieving a financial in the United States with a reg-
monopoly in Berlin, he replied: ularly weekly attendance of 1,000,-
'They apparently did not want 000.
to bring things to a head in Berlin ThQ evangelists decided in 1945
while negotiations were going on to carry their case for Christian-
elsewhere (in Moscow). The Rus- ity abroad. Since they they have
sians appear to have agreed to established 800 branches on five
the arrangement in order to per- continents.
mit the life of Berlin to go on Crusade
for the time being." "It has grown into a full-fledged
* crusade," says Dr. Robert A. Cook,
.RGES 'FALSE AND FANTASTIC'-Nathan Gregory Silvermaster
witness chair as he tells a House investigating committee that
are "false and fantastic." le referred to earlier testimony by Eliza-
ras named as head of a Communist spy ring in the government. At
Reps. Karl Mundt (Rep., N.D.), Hardin Peterson (Dem., Fla.),
arence Brown (Rep., 0.), John W. Gwynne (Rep., Iowa), Earl Mich-
Hoeven (Rep., Iowa), Reporter Fred Othman and Rep. Wallace
Gva (vr o tp P Ifnit
rist to Youth'
The budget for the fiscal year
that began July 1 adds up to
$872,000. Of that sum, $108,000
is earmarked for administration
and field work in the United
States. The rest will be used to
press the "spiritual invasion" over-
seas. Leaders will work .out their
plans at a conference Aug. 10 to
22 in Beatenberg, Switzerland.
The movement is not affiliated,
with any denomination. Its base is
the Bible, That's where Dr. Cook
looked for inspiration as he con-
templated "our hardest and
biggest year."
1
,)
Sthe 36-year-old president.
W estern As When operations began on a
global scale there was only $500
in hand. But the planners had
(ai);faith the money would come from
their only sources-free will offer-
4 y ing< at irallies and gifts from bus-
Secon e inc smen. It did.
Teams of two to eight clergymen
MOSCOW, Aug. 5- )-Brtih, and laymen sowed the scriptural
American and French envoys con- seed in, among other places,
ferred at the American embassy Czechoslovakia, Poland, Venezuela,
today and were believed to be for- Brazil, Ecuador, Colombia, Mexico,
mulating plans for another East- Cuba, South Africa, Australia, New
West meeting with Prime Minister Zealand, Hawaii, the Philippines
Stalin. China, Japan and India.
Frank Roberts, special British Local Committees
envoy, joined French ambassador The teams hold rallies, explain
Yves Chataigneau in U.S.Am-their mission, and set up local
bassador Walter B. Smith's office committee to carry on the tak.
this afternoon. The conference ___- --- -
Housewives
PiLcket Prices
OfCreamery
DETROIT, Aug. 5-(/P)-Mili-
tant Detroit housewives today pre-
pared to take their war against
high prices out on picket lines to-
morrow. The targets of the dem-
instrators will be two creamery
plants,
Milk prices were scheduled to
increase one cent in the De-
troit area Friday--bringing the
price of a quart of milk to 21 cents
-and there were rumors that an-'
othe: boost is in the offing forI
Sepiember,
Leading the Detroit rebellion is
the committee to combat high
prices. The group has operated 10
booths in scattered shopping cen-
ters to collect signatures to tele-
grams to Senators and Congress-
men demanding price roll-backs.
Mrs. Bess Sniderman, chairman
of the committee, said one booth
collec;ted 2,000 signatures today-
mast of them with cash contribu-
tions to defray telegraph costs.
Meanwhile, buyer resistence has
had noticeable effects in Detroit
meat markets. A statewide sur-
vey by the Associated Press re-
vealed retail meat sales were
dropped as much as 25 per cent.
Dealers reported good cuts are
"standing still." Shoppers who
used to buy steaks settle for pigs
knuckles and dealers said house-
wives are "speaking sharply" to
meat cutters.
State National
Guard Groups
Start To Train
LANSING, Aug. 5-(AP)-First
units of Michigan's National
Guard will start on the move to-
morrow for their summer training
period at Camp Grayling.
More than 7,200 guardsmen
from more than 40 Michigan com-
munities will be travelling by
train and truck convoy through-
out the state until late Saturday.
Calumet's company A of the
107th Engineers, from the Keewe-
now Peninsula in far Northern
Michigan, will be the first to get
underway, setting out by motor
convoy tomorrow. Rail movement
will begin tomorrow night with
units from Detroit, Grand Rapids,
Kalamazoo and South Haven
scheduled to entrain before mid-
night.
A total of 3,185 officers and men
will make the trip by rail. The
rest will move by motor convoy.
Guard headquarters estimated
that 200 railroad cars and more
than 1,000 vehicles will be used
for the largest peacetime migra-
tion of Michigan guardsmen.
In addition to special trains
from the larger cities, separate
trains will originate from Mus-
kegon, Grand Haven, Holland,
Greenville, Alma, Port Huron, Ann
Arbor, Lansing, Owosso, Saginaw,
Bay City, Howell, Ionia, Coldwater,
Set Hop wood
M, 54, Da dline1
Entries in this summer's Hop-
wood Contest must be turned in
by 4:30 p.m. today in 3227 Angell
Hall, director R. W. Cowden an-
nounced.
Awards contest, including four
major fields of creative writing,
will be announced at 5 p.m. Thurs-
day, but winners will have been
notified by special delivery mail
before that time. Manuscripts may
be picked up the following Fri-
day at the Hopwood Room.
A total of $475 in prizes was
awarded last summer to eight
winners among the four categories
of the contest, drama, essay, fic-
tion and poetry.
There was a total of 28 entries
last year, including three drama
entries, seven essays, 12 in the
fiction classification and six
poetry entries.
Comproimise
Proposal Had
GOP Backers
President Decribes
Measure As Feeble
WASHINGTON, Aug. 5 - (A) -
The GOP anti-inflation measure
was passed, 264 to 97, today by the
House in a sharp rebuff for Presi-
dent Truman who only a short
time before had labelled it a
"feeble compromise."
The measure calls for restora-
tion of wartime controls on in-
stallment buying, and a moderate
tightening of bank credit. It ig-
nores the President's demand for
rationing and price-wage control
powcrs, and for an excess profits
tax.
The bill was rushed to the
Senate as Republican leaders
drove for adjournment of the
extra session of Congress Sat-
urday night, or next Tuesday at
the latest.
But plans for swift adjourn-
ment were imperiled by a wide-
open split within Republican
ranks on the housing issue.
The Senate Banking Commit-
tee, in a surprise move, dumped
overboard a housing bill spon-
sored by Senator McCarthy (Rep.,
Wis.) and sent to the Senate
floor a revised version of the Taft-
Ellender - Wagner housing bill,
backed by President Truman. The
Senate then began consideration
of the latter measure.
This was a new flareup of a'n
old battle. The T-E-W bill,
which has been sponsored by
Senator Taft (Rep., O.) among
others, is designed to encourage
the ,constrction of 15.000,000
homes in 10 years.
Some House leaders have
branded the public housing fea-
ture "socialistic." The bill offered
by Senator McCarthy, with the
backing of a joint Senate-House
committee, omitted the public
housing and slum clearance pro-
visions.
Angry Senators who favored
the McCarthy bill predicted the
T-E-W measure would be de-
feated in the House, if not in
the Senate.
The anti - inflation measure
backed by Republicans would:
1. Authorize the Federal Re-
serve Board to impose installment
buying controls up to March 15,
1949.
2. Empower the Federal Re-
serve Board, until next March 31,
to increase reserve requirements
of member banks.
3. Require every Federal Re-
serve Bank to maintain reserves
in goid certificates of not less than
25 per cent against its deposits
and not less than 40 per cent
against its Federal Reserve notes
in circulation.
Secretary of Treasury Snyder
said the Republican time-pay-
men curbs would not do much
good because the government
probably couldn't set up the pro-
grain by the time it expires next
March 15.
* * *
Truman ays
GOP Evades
Control Issue
WASHINGTON, Aug. 5-(P)-
President Truman angrily ac-
cused the GOP Congress today of
dragging a "red herring" across
the trial to distract attention from
its "feeble compromise" on the
cost of living issue,
His "red herring" remark re-
ferred to the current investiga-
tions on Capitol Hill, which have
prodaced charges that government
officials were involved--with a net-
work of Communist spies during
FORGET FASCISM:
Prof. Wheare Advises Nation
To Worry About Russia Now
Forget the dictatorships of the
right and worry about Russia.
That was the advice given the
United States by Prof. Kenneth
C. Wheare, visiting member of the
political science department, con-
cluding the University's summer
lectures on European economic re-
construction.
"The Russians are too strong
and undemocratic to allow free-
dom in Europe. It's a question of
some freedom along with fascist
L-nournments like thnse in Snain
politicians in European nations,
especially Germany, Finland and
Czechoslovakia are faced with
"threats from Moscow," and "Fifth
Column activities."
"America's job in Europe is to
establish robust, strong constitu-
tional governments in the devas-
tated nations, insure a constitu-
tional alternative to Communism
and consider the necessity of un-
constitutional alternatives to Com-
munism."
followed an earlier round of dip-
lomatic meetings today and last
night.
There was no official statementI
on any developments tonight but
informed sources said "develop-
ments were possible." The three
western envoys were reported
standing by after their lengthy
meeting at the American embassy.
Reliable sources said a new ap-
proach may be made to the Rus-
sians shortly and that this was
likely to take the form of another
four-power meeting involving Sta-
lin.
The gist of the replies from
Washington, London and Paris to
their envos' rennrts of the firstI
Correction
Part of the $25,000 recently
allotted to the Phoenix Project by
the Board of Regents will be used
to establish four pre-doctoral fel-
lowships, rather than post-doc-
toral fellowships, as stated in
Wednesday's Daily.
I AUNCHES NEW ERA:
WWJ-TV To Televise Opera Bill
I
will be under the direction of Wal-
By KENNETH LOWE I
Although the nerformance willI