EDITOR'S NOTE
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FAIR, PLEASANT
VOL.IJX, No. 138 ANN ARBOR, MICHIGAN, FRIDAY, JULY 8, 1949
PRICE FiVE CENTS
President
Optimistic
On Economy'
Outlook 'Bullish';
Tax Raise Lost
WASHINGTON-6'P) - President
Truman, using Wall Street lingo,
said today he is "bullish" on the
nation's economic outlook.
A "bull" is one who bets on
good business and a rising stock
market.
The President was less confi-
dent that Congress would give
him his long-sought $4,000,000,000
increase in taxes. In fact he ap-
peared to have given up hope of
that.
AT A NEWS conference, he was
told that Rep. John McCormack
(Mass.), House Democratic lead-
er, had expressed the opinion last
night that no tax increase would
pass this year. John ought to
know, the President remarked, be-
cause tax bills originate in the
rCHouse.
President Truman took his
optimistic stand on economic
conditions despite Britain's de-
cision to slash her buying in the
United States to save dollars.
Mr. Truman said that in his
mid-year economic message to
Congress next Monday he will an-
swer many questions in the public
mind,
* r x
ASKED IF HE WAS "bullish"
;- or "bearish" about the present pic-
ture here, Mr. Truman said he was
"bullish." He suggested that re-
porters read up on the Stock Mar-
ket happenings in the last few
days.
Stock quotations had been ad-
vancing steadily for five days,
but shortly after the news con-
ference, they started a gentle
decline.
The President seemed to have
confirmed what his recent callers
have been saying, namely, that he
will slap hard in his message next
week at any idea that the nation
is headed toward a serious re-
cession.
* * *
AS FOR TAFT-Hartley labor
law repeal, the President took a
somewhat different view than
labor leaders. Since the Senate
passed the Taft bill retaining most
of the original law, these leaders
have advocated abandoning the
repeal fight for 1949 so it can
be made a campaign issue next
year.
Mr. Truman, however, said he
certainly hoped House Demo-
cratic leaders will decide to
bring out a bill now for a further
test. They are considering this,
he said, and it is their decision
to make. He added he will con-
tinue to fight for Taft-Hartley
repeal.
He said once more that the gov-
ernment has no power under exist-
ing law to intervene in the Ha-
waiian longshoreman's strike.
COMMENTING on a sugges-
tion by Senator Vandenberg (Rep.,
Mich.) that he lead a new cru-
sade for peace after adoption of
the North Atlantic pact, Mr. Tru-
man said he has been crusading
for peace ever since he took office
in April, 1945.
He said he will continue to fight
for world peace, but as for world
disarmament, this could not be
discussed until the United Nations
agrees on an atomic bomb con-
trol plan.
This does not mean the world.
is not heading toward peace, he
told a questioner. He said it is
moving slowly and gradually and
he believes we'll gradually get
peace.
French Film/
To Be Shown
At Rackham
"The Eternal Husband," French
film starring Raimu, will open at
8:30 p.m. today and will have an-
other showing tomorrow at the
same time.
For the first time, the Art Cin-
ema League, sponsor of the movie,
is using the Rackham Lecture Hall
for the movie.
Dulles To Succeed
Wagner in Senate
Dewey Appoints Foreign Affairs
Expert To Serve Until December
NEW YORK-(JP)-John Foster Dulles, 61, Republican foreign
affairs expert and a leading architect of the nation's postwar inter-
national policies, was appointed to the U.S. Senate yesterday by Gov.
Thomas E. Dewey.
He will serve five months until Dec. 1 as successor to the veteran
New Dealer and Democrat, Robert F. Wagner, 72, who resigned June 28
because of ill health. Wagner was author of the Wagner Labor
Relations Act.
* * * *
A SPECIAL ELECTION will be held Nov. 8 to choose a Senator
to serve out the remainder of Wagner's term from Dec. 1, 1949, to
-Jan. 3, 1951.
Soions Offer
Worldwide
Peace 'Pact
WASHINGTON-')-A world-
wide alliance for peace, with mem-
bership open to any nation which
agrees to foreswear the atomic
bomb as a military weapon, was
proposed by a small group of Sen-
ators last night.
Senator Mundt (R-S.D.), one of
the sponsors, said Russia would
be eligible to join-if she would
stop using the veto.
SENATOR FLANDERS (R-Vt.)
called a news conference today to
disclose full details of the plan.
In effect, it would expand the
proposed 12-nation North At-
lantic Treaty into a World Peace
Union.
Mundt said that in addition to
ruling out the A-bomb, nations
seeking to join must-
1. Subscribe to the democratic
principles of free nations.
2. Agree to international con-
trol of atomic energy.
3. Submit to the authority of an
international police force.
* * * .
MUNDT SAID THE alliance
would be set up within the frame-
work of the United Nations. He
said the plan will not be present-
ed in connection with the current
Senate debate on the North Atlan-
tic Pact, but will be offered as a
part of the proposed Arms-For-
Europe program.
The Administration's $1,450,-
000,000 military aid program will
be sent to Congress almost im-
mediately after the Senate acts-
on ratifying the 12-nation treaty
-probably early next week.
The idea of a "United Nations
within the United Nations" was
disclosed after critics of the North
Atlantic Pact told the Senate of
their objections to that agreement.
* * *
SENATOR DONNELL (R-Mo.)
contended it may set off an arms
race "the like of which the world
has never seen."
Earlier, Senator Flanders told
the Senate the United States
should help build up an "inter-
national police force" to bolster
the Atlantic Treaty.
Nelson Named
To VD Center
Dr. Marvin C. Nelson, formerly
a University assistant resident in
dermatology and syphilology, yes-
terday was appointed director of
the Michigan Rapid Treatment
Center for Venereal Diseases, lo-
cated in Ann Arbor.
The former director, Dr. Solo-
mon J. Axelrod, has joined the
public health school.
The state commissioner of health
praised the work of the Treatment
Center, saying it had "assisted
materially in lowering the disease
rate in Michigan."
Both Dewey and Dulles him-
self indicated that the new Sen-
ator will not run as the Re-
publican nominee in November.
However, statements of GOP
Senators in Washington, who
praised the selection highly, in-
dicated Dulles would be under
pressure to do so.
Dulles said he will go to Wash-
ington at once. There will be 53
Democrats and 43 Republicans in
the Senate after he takes the oath.
* * * .
THE SENATE now is debating
the Atlantic Pact. Dewey said this
was one of three momentous issues
in international affairs before
Congress which induced him to
name Dulles.
The shirt-sleeved Governor,
announcing his selection in a
few words to newsmen at his
suite in the Hotel Roosevelt
here, said "The great import-
ance of the foreign affairs issues
before the Senate at this time
made his appointment the
greatest contribution I could
make."
In addition to the Atlantic Pact,
Dewey mentioned military aid to
Western European nations and
appropriation of adequate funds
for the European Recovery Pro-
gram as problems on which "fate-
ful decisions" must be taken at
this session of Congress.
The Governor said it was un-
likely Dulles would be the GOP
nominee in the Nov. 8 special elec-
tion.
Dulles' present view, Dewey ex-
plained, is that after this Con-
gressional session "he can be more
useful by resuming his work in the
field of diplomacy."
The appointee, who arrived here
shortly after Dewey's announce-
ment from a vacation on Main
Duck Island, Ontario, told news-
men:
"I have no expectation of seek-
ing to serve beyond the term of
my present appointment."
'UI' Aims To
Train Citizens,
AdamsSays
The University's aim is to train
students to be citizens as well as
scholars, according to Provost
James P. Adams, who spoke yes-
terday on the University's educa-
tional policies, at the University
High School.
"We 'are not engaged only in
preparing scholars," he said. "We
want to turn out men and women
who will be able to take their
places in the world of tomorrow."
* * *
HE WARNED that high stan-
dards must be maintained and
pointed out that future usefulness
is the University's aim. He an-
ticipates advances in physics and
medicine because of work done
in university research laboratories.
Speaking on future enrollment
figures, Adams said that the pres-
ent large-scale enrollment will
continue. "But," he said, "there
will be no increase in size for the
sake of size."
Farm Price
Com romise
Is Acceptable
Brannan OK's
New Proposal
U
WASHINGTON- ()--Secretary
of Agriculture Brannan told Sen-
ators today he is willing to accept
a compromise farm price program
that would use Government sub-
sidies to assure farmers a high
level return on 10 major crops.
The proposed compromise is a
blend of the Administration's own
farm program unveiled by Bran-
nan this spring, and the Aiken
Farm Price Law which is sched-
uled to go into effect next Jan-
uary 1.
"r . * * *
THE COMPROMISE was ad-
vanced by Senator Aiken of Ver-
mont, top-ranking Republican on
the Senate Agricultural Commit-
tee and author of the delayed ac-
tion law which bears his name.
Senator Anderson (Dem.,
N.M.), former Secretary of Agri-
culture, got Brannan and Aiken
into verbal agreement on the
compromise after two sessions
of an Agriculture subcommittee
today. Further hearings, how-
ever, will be held Monday, with
representatives of major farm
organizations as witnesses.
Anderson said adoption of the
compromise would be "a big step
in the direction of the Brannan
plan." Brannan himself said the
compromise would be better than
no action at this session of Con-
gress.
* * *
UNLESS CONGRESS acts, the
Aiken Law takes effect January 1.
It provides for a sliding scale of
government price supports for
major crops, ranging from 60 to 90
per cent of parity. At present a
rigid 90 per cent scale prevails.
(Parity is a level computed to
be equally fair to the farmers;
who produce the crops and the
consumers who use them.)
The supports called for in the
Aiken law would be lowest when
supplies were small.
* * *
AIKEN PROPOSED today mak-
ing the terms of the sliding-scale
law which bears his name effec-
tive at once instead of next year.
In addition, the compromise
would:
1. List by name 10 basic com-
modities which would be sub-
ject to the 60-to-90 per cent
support standard. These are
cattle and calves, dairy products
including milk, hogs, wheat,'
corn, cotton, tobacco, chickens,
eggs and lamb.,
2. Permit the Secretary of Agri-
culture to use available Commodity
Credit Corporation fundsmto pay
"production payments" (subsidies
from the Treasury) to farmers un-
der certain circumstances. -
The subsidy proposal is one of'
the basic features of the Admin-
istration's farm program, known
as the Brannan Plan. Under that
plan, the price of perishable farm
products would be allowed to find
their own level in the market
place. Then, if the market price
fell below a previously determined
"fair income" level, the farmer
would get a government check for
the difference. Taxpayers, of
course, would foot the bill in the
end.
Brannan claims his plan would
give consumers lower priced foods,
while assuring farmers a fair in-
come for their produce.
In presenting his compromise,
Aiken stressed that the 60 to 90
per cent scale would be purely
advisory, and that the Secretary
of Agriculture would be free to set
all the props at 90 per cent if he
saw fit to do so.
Brannan has said repeatedly'
that if he got the authority to
make productioh payments, he
would not use it in the case of
crops such as grains that canI
be satisfactorily stored.I
Famous Actor
Alger Hiss Jury
Still Deadlocked;
'To Meet 10 A.M.
No Immediate Decision Expected
On Two Government Charges
By ROMA LIPSKY
(Special to The Daily)
NEW YORK-The jury in the Alger Hiss perjury trial was sent
to a hotel last night after four hours and forty-eight minutes of
deadlocked deliberation.
Judge Samuel Kaufman ordered the adjournment at 9:08 p.m
last night. They were to return at 10 a.m. this morning.
SPECTATORS AND REPORTERS anxiously awaiting a verdict
heard the jury foreman announce that "I can see no immediate
verdict."
Hiss, smiling and cheerful, talked with friends and reporters
as he awaited the decision. He showed no signs of nervousness
and indicated no doubts about
OUTSTANDING SHAKESPEAREAN-Whitford Kane, guest fac-
ulty member, will direct and act in Paul Vincent Carroll's play
"The White Steed." He appears above dressed as Conon Lavelle,
a liberal priest in the play, which will run July 20-23 at the
Lydia Mendelssohn Theatre.
, * * *
Whitford Kane Recalls
Old LaboratoryTheatre
By ARLYNN ROSEN
"I miss the speech department's
old Laboratory Theatre which was
torn down last year," Whitford
Kane, guest faculty member, said)I
Returning to campus after an
absence of ten years, Whitford
Kane, world-famous actor, was
emphatic in his opinion of what'
the loss of the Lab Theatre means
to the speech department.
* *
THE LAB THEATRE was used
for rehearsals and storage.
With it went the only stage
World Newse
Round-Up
By The Associated Press
SHANGHAI-A U.S. vice con-
sul, seriously beaten by police in
a minor traffic incident, was held
without communication in jail in
this Communist metropolis today.
The incident occurred yesterday
at the same time severalshundred
Chinese former employes of the
U.S. Navy were besieging the Con-
sulate with demands for more
severance pay. The two affairs
apparently were not related, how-
ever.
* * *
WASHINGTON - Paul G.
Hoffman said yesterday the dol-
lar-short British may cut their
planned purchases of American
goods by $250,000,000 during the
coming year. The Economic
Cooperation Administrator bas-
ed his estimate on statements
by Sir Stafford Cripps in Lon-
don.
NEW YORK-A New York Ne-
gro City Councilman, Benjamin
J. Davis, Jr., testifying as a de-
fendant in the Communist con-
spiracy trial, said yesterday he
experienced racial discrimination
at Amherst College and Harvard
University.
* * *
BOSTON-Schoolteachers pro-
tested sharply today that St. Louis
is a "Jim Crow" city and that
they don't want to meet there in
1950 because some of their dele-
gates might suffer from race dis-
crimination.
available to the speech department
for play rehearsals," Kane said.
"Except for dress rehearsal,"
he continued, "we must use any
room we can find free. But it
takes six rehearsals in a room to
equal one rehearsal on a stage."
Kane first came to the Univer-
sity in 1936 to be a guest faculty
member. The last time he was
here was in 1939.
* * *
THIS SUMMER Kane is here to
direct as well as act in Paul Vin-
cent Carroll's "White Steed,"
which will be presented July 20-
23 at the Lydia Mendelssohn
Theatre.
Kane has been acting for
fifty years. "The first play I
saw was 'Othello' when I was a
young boy in Ireland," he said.
"After that I saw 'A Mid-Sum-
mer Night's Dream' fourteen times
because I had a crush on the
leading lady," Kane continued.
* * *
HE BEGAN his acting career in
London at the age of seventeen.
Since then he has become out-
standing in the plays of Gales-
worthy and especially as the
grave-digger in "Hamlet." Recent-
ly, he has achieved additional act-
ing success in the movies and in
television.
"It seems that on the stage
I'm either a grave-digger, a
priest, or a doctor. There is as
much type-casting for me in the
theatre as in the movies where
I am described as 'dumb, friend-
ly, and kindly'," he said.
"I prefer teaching young people
to acting," Kane said.
A VC Meets T oday
To Discuss 52-20
A meeting of all local veteran's
organizations has been called by
the campus American Veteran
Committee for 4 p.m. today at the
Union.
The meeting has been called to
formulate a "Committee to Ex-
tend 52-20."
Veteran's unemployment com-
pensation (52-20) is scheduled to
expire July 25 unless Congress ex-
tends that part of the GI Bill.
the outcome.
With him was Mrs. Hiss, who
has been present at every one
of the 26 trial days, and their son
Timothy Hobson.
BEFORE HISS'S FATE was
placed in the hands of the jury
at 4:20 p.m. yesterday, Judge
Kaufman told the ten men and
two women deliberating the case
that they must reach a unanimous
and separate verdict on each of
the two counts of perjury, in an
hour-long charge.
The substance of the case is,
he said, "did the defendant will-
fully, testify falsely when he
said (before the Grand Jury
last December) that he did not
transmit, furnish, or deliver
State Department documents to
Whittaker Chambers and when
he said he had not seen Cham-
bers after Jan. 1, 1937"
In order to convict, the jury
must be sure of Hiss' guilt "be-
yond all reasonable doubt," he
told them.
KAUFMAN reminded the jury
that the defendant is "presumed
to be innocent" until the govern-
ment proves beyond all doubt that
he is guilty, and again cautioned
them against judging the case on
anything except the evidence pre-
sented, in the courtroom.
Shortly after starting their
deliberations, the jury requested
a copy of the original indict-
ment, the documents purported
to have been stolen by Hiss, and
the Woodstock typewriter on
which the government claims
Mrs. Hiss copied the documents.
In his charge the Judge char-
acterized Hiss, Chambers, and the
wives of both men as "interested
witnesses," and told the jury that
they must be the sole judges of the
credibility of the testimonies given.
* * *
EARLIER THOMAS Murphy,
Assistant U.S. Attorney summed
up for the government, calling
Hiss "a traitor to his country,
another Benedict Arnold, another
Judas Iscariot."
The over six feet Murphy be-
gan speaking calmly in a well-
modulated voice, pounding the
lecturn near the jury box for
emphasis.
But near the end of his nearly
three hour summation, Murphy's
voice was high and packed with
emotion as he asked the jury to
"come back and put the lie in that
man's face."
* * *
HE WARNED the jury not to be
swayed by Hiss' charm, personal-
ity, and good looks. "Inside that
smiling face is a black and can-
cerous heart, the heart of a trai-
tor."
Murphy brushed aside the 15
character witnesses, including
two Supreme Court justices,
called by the defense, and,
pointing to the battered old
Woodstock, the typed copies of
State Department documents,
and the originals of the docu-
ments, declared, "These are the
real witnesses in this case."
Facing the jury during his en-
tire summation, Murphy told them
that the defense had never estab-
lished a motive for their claim
that Chambers is lying.
* * *
"NO MOTIVE has even been
suggested as to why Chambers
would come forth with the docu-
ments now unless it were true,"
he said.
Completing the defense sum-
mation early yesterday morn-
Says
Fear
WASHINGTON - ) - Col-
umnist Westbrook Pegler said yes-
terday American unions have be-
come loaded with "despots, crim-
inals and Communists" who use
violence to beat off attempts at
reform.
Testifying before a House La-
bor Subcommittee, Pegler said one
man who protested was "murder-
ed."
* * *
HE IDENTIFIED the victim as
William Bruce Zigler, a member
of the International Union of Op--
erating Engineers, formerly head-
ed by Joe Fay and William Ma-
lone.
The syndicated New York
writer, who says much of his
fan mail is addressed "Dear sir,
you cur," told the Committee
that rank and file members have
"little or no voice" in many
unions. But the bosses, he said,
handle "millions upon millions
of dollars" in union treasuries
and spend it "for any purpose
they choose."
The sharp-tongued critic of la-
bor's shortcomings spent an hour
and a half in the witness chair,
alternately mild and glittering of
eye as he recited wrongs he said
were suffered by working men and
women. His testimony bristled
with such epithets as "thief,"
"swindler," "czar" and "Hitlerian"
-all referring to union leaders.
PRODDED BY Chairman Jacobs
(D-Ind.) for "names and factual
information" in the midst of his
discourse, Pegler retorted:
"It takes a pretty courageous
man to let his name be made
public."
The columnist said he would
have to get permission from the
individuals involved before he
could give their names to the
Committee. Most of the union
members who have complained to
him, he said, "live in fear" of
having their names disclosed.
MUCH OF PEGLER'S testimony
was a repetition of alleged mis-
deeds by union officials which has
been printed in his columns over
a period of years.
Pegler suggested that the com-
mittee send an investigator to
go over what he called a "great
treasury of information" in New a
York, relating to union prac-
tices.
But Chairman Jacobs remarked
that the committee is operating
"on a shoestring," and he cracked:
"If we asked for another appro-
priation, it might make material
for a column, eh?"
"It might," Pegler grinned
cheerfully.
Deadline Today for
Group Registration
Today is the last day for student
organizations to register with the
Columinist
Pegler Blasts
Labor Unionis
Members
Leaders
KAUPER'S OPINION:
Legalities Important I1n Chri stoffel Trial
By ARLYNN ROSEN
"Whether or not Harold R.
Christoffel was a Communist was
not the main point in the Supreme
Court decision freeing him from
Communist or had any Com-
munist connections.
Christoffel appealed to the Su-
preme Court after the U.S. Court
of Appeals unanimously upheld his
said that less than a quorum wasI
present when he was asked about
his political affiliations.
* * *
"THE CASE rests entirely on
tice Murphy," Prof. Kauper ex-
plained, "felt that Christoffel
could not be expected to be fa-
miliar with complicated parlia-
mentary procedure so he could
did not raise the question of a
quorum, not whether he would
have been allowed to.
* * *
"JACKSON BR1NGS in impli-