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EDITOR'S NOTE
See Page 2
Latest Deadline in the State
FAIR AND COOL
VOL. LXI, No. 17-S ANN ARBOR, MICHIGAN FRIDAY, JULY 20, 1951
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
FOUR PAGES
House OK's
yWage, Prie
FreezeBill
Exempt Some
- Farm Products
<. WASHINGTON - (,'P) - T he
House voted unexpectedly yester-
day to put a four-month ban on
any wage and price increases
above the ceilings of July 7.
The lower priced farm commodi-
ties would be exempt from any
effect of the freeze. It was pro-
posed by Rep. Davis (D-Ga.).
a * x
THE WINNING side in the 180
,A to 151 vote was made up of Re-
publicans and Southern Democrats
who have fought the controls pro-
r.-gram advcated by the Truman
administration.
ri The amendment would con-
tinue, for the 120 days after
passage of the bill, the price-
wage ceilings in effect July 7.
Rep. Davis called it a "breath-
ing spell" arrangement that
would allow further time to de-
'cie what to do about price roll-
backs.
Rep. Spence (D-Ky.), manager
of the Administration's control
N bill, declared the freeze would be
unequal, making no provision for
dealing with hardships and in-
equities.
DOWNTOWN, Director Michael
{ V. DiSalle of the Office of Price
jStabilization, was asked about the
freeze at a news conference. He
*said:
"I think from our own stand-
point, it would mean four
months of ease."
The amendment w o u 1 d not
freeze the prices of farm products
whose July 7 prices were below
parity-the level calculated to be
fair to a farmer in relation to the
cost of things he has to buy. Some
crops are selling well above parity,
many below.
k * w
DAVIS WAS asked, after the
House quit for the day, what ef-
fect his freeze date would have in
cases where wage increases have
been approved since July 7 He
replied he was not committed to
= July 7, and would "Just as soon
have July 15 or July 20."
"If the date is inequitable to
anybody, It can be changed in
conference with the Senate," he
said. "The purpose of the date
in my bill was just to prevent
people from increasing prices in
anticipation of a freeze," he told
reporters.
As Davis explained it, the freeze
would apply to ceilings that are
under price-wage regulations. He
said " as I construe it" anybody
selling at below OPS ceilings of
July 7 could raise their prices to
those ceilings, also it would be per-
missible to raise a worker's wages
to the ceilings in effect July 7. The
wage ceiling now allowed is 10 per
cent above the level of January,
1950.
The Davis plan would have no
bearing on the previously approved
House amendment allowing the
present 10 per cent rollback on
live beef prices to go into effect,
but barring future rollbacks on
beef.
* * ,'
Truman Blasts
Lobbyists on
Price Controls
_WASHINGTON-(A')-President
Truman has told a Massachusetts
housewife that the "big paid lob-
byists" are doing their utmost to
wreck price controls and may well
succeed-for the time being.
But the President said that the
} will of the American people will
beat all the "special interests" in
the long run, and he declared:
A "If we can't beat off the lob-
bies this time, we will just make
a new start and try again."
Truman's letter went out to
Mrs. C. Irving Guyer of Spring-
field, Mass., wife of a small busi-
nessman and mother of five chil-
dren ranging from the kindergar-
ten to college age.
Mrs. Guyer said that among
all the cattle, real estate and
other lobbies operating in Wash-
ington, she hasn't heard of any-
body lobbying on behalf of the
American housewife. And she
askedl Truma.n to tdothat iob of
Slinging Mud
T'horp Cites
War Effect
On Economy
Explains Efforts
To Meet Crisis
The most immediate economic
problem facing the United States
today is that of bringing produc-
tion into balance with our greatly
jincreased national requirement
jwithout permitting inflation, As-
sistant Secretary of State for Eco-
nomic Affairs William J. Thorp
said last night.
The third lecturer in the "United
States in the World Crisis" series,
Thorp outlined the steps the gov-
ernment is taking to meet the
shortages created by the Korean
War.
k *
"THOUGH MOST of our efforts
are now being directed toward
channelling materials vital to the
war effort away from non-essen-
tial production, in the long-run the
problems of shortages can only be
solved by increasing the supply,''
he declared.
Thorp warned that Americans
are in for a heavy burden both
as consumers and as taxpayers.
"Other countries will share in
carrying the economic burden,
but as the richest and strongest
country in the world it will fall
most heavily on us."
However, he said that with the
ability of the American economy
to expand, it should be only two
or three years before our standard
- of livingcr will a gain advyance- n-.
t
Bay ot FRA'NCE(
isca~y *ordeaux '
BARCELO~NA '
Opoto SPAIN i
IPORTUGAL AI1
SEVILLE - .~
CiiBRALTAR .IU SI
~MOROCCOOra
SPANISH BASES-Map locates proposed U.S. naval bases (under-
lined) and airfields (plane symbols) in Spain.U.S. Adm. Forrest
P. Sherman reportedly has asked Generalissimo Franco what he
would want in return for naval bases at Cadiz, F'errol, Cartagena,
and at Santa Cruz de Tenerife in the Canary islands off the
African coast and airfields at Carcelona, Madrid, Seville and
possibly at Valencia and Lugo.
Franco Establishes .Newv
Governmnent for Spain
MADRID, Spain- /P)-General- setting uip U.S. naval and air
isimo Francisco Franco set up a! defense bases in Spain.
ti ,
new government last night inj
moves for better relations with the FRANCO signed a decree ap-
Westandforretrnig akin topointing a new cabinet of strong
Westandforretrnig akin toMonarchist complexion.
the Spanish throne.
The moves were repo'rted to bej He is reported to have told his
in line with the midweek prelim- new government that Spain "will
mnaries by Franco and American carry out the restoration of the
Admiral Forrest P. Sherman for monarchy."
Cease Fire Talk
Rained OtAs
Collapse Looms
SEOUL, Korea-V-(R--rucial armistice talks were postponed to-
day after rain-swollen streams prevented the Allied delegation from
reaching Kaesong by jeep.
An Allied spokesman at first announced that the important meet-
ing had been cancelled. Later he amended his report to "postponed"-
indicating that the delegation may try to reach the conference sitt
later in the day.
The five allied representatives had tried to go to Kaesong by jeeps
because bad weather grounded their helicopters. Heavy rains washed
out sections of the 15-mile road between the truce city and the U.N.
RIVER MUD REMOVED-Workmen scoop up mud from the
floor of an office building in the industrial section of Kansas
City, Mo., as flood waters of the Kansas River receded, leaving
behind this slime in what army engineers have called the nation's
costliest flood.
An-TxietyMounts As Flood
Crest.Nears St. Louis
ST. LOUIS - (M' - Anxietyv
mounted here last night as the
Missouri River's worst flood crest
in a century or more swept on
from central Missouri toward a
juncture with the already swollen
Mississippi.
St. Louisians were urged to go
sparingly on water as concern was
expressed over the city's pumping
plants.
THE CREST, passing the state
capital of Jefferson City yesterdlay,
Heavy Gales,
Th1'understorms
Rip East Coast
By The Associated Press
Severe thunderstorms and gale
winds ripped along the eastern
seaboard yesterday, damaging city,
village and farm.
Lightning killed two men in New
Jersey, a Jamaican laborer at Ell-
ington, Conn., a fisherman at
Bridgeport, Conn.
A chimney toppled at a Phi-
ladelphia hospital, fell into the
women's surgical ward and in-
jured four patients.
HAIL STONES the size of mar-
bles fell on many areas.
An Eastern Air Lines four-en-
gined plane with 53 persons aboard
was forced down south of Rich-
mond by a violent storm. It
landed safely on a farm.
Wind flattened acres of tobacco
in Connecticut.
Some areas were hit once
and then again later by follow-
up storms.
Wind gusts. up to 82' miles an
hour-hurricane force if they had
been sustained-battered parts of
Pennsylvania.
Lightning danced and thunder
echoed off New York and Phila-
delphia skyscrapers, as sheets of
rain drove residents to shelter.
Foursome Si
Socio logica1
By ALICE
Special to
NEW KENSINGTON, Pa.-T
feminine artist companion fromE
raft trip today to see what it's lik(
Mary Ellen McGrady, a 24-ye
is the guiding spirit of the experi
MISS MeGRADY got the idea
with a copy of "Huckleberry Finr
During the leisurely voyage
Allegany to New Orleans, the
already had left. an estimated less a general war should break
$750,000,000 damage in Kansas out.
and eastern Missouri. And fear
was expressed that losses here THE BEST WAY of preventing
might equal the 1947 flood damage World War III, he continued, is to
of $9,000,000. make us and our friends strong.
The flood tidle was expected "This must be done through co-
to reach nearby St. Charles, operation, rather than by having
Mo., Saturday with a stage of the nations moving along as sep-
38.3 feet. That would be the arate national components," he
highest there since 1844. The asserted.
Mississippi's crest is predicted at
40.5 feet Mons ay, also the high- The strength which will come
est n 17 yers.from the collective efforts of free
ye i suitpe ee 107yas countries will far exceed the pos-
ThleMiouriet oppedtaLeves,10dsible achievements of the countries
milesrtwestn ofuStngLouis, andseparately, he said.A
waer egrarepouingwhover te ,Calling for additional help t
Crenv30Copersoarlea.n hchmoeunderdeveloped countries, Thorp
thn30prsn nie pointed out that the threat of
IN TE Wet Alon, o., reaCommunism is not merely military,
where the Missouri empties into but that it comes from hunger,
the Mississippi 15 miles north of poverty, and hopelessness.1
St. Louis one levee collapsed andj
another was topped. Other levees ur e C n e
held back the waters from West )It ey en e
Alton, and the 300 residents' were
still holding out. Preparations had S y c r
been made to evacuate them if Sa s Sc r
As the flood waters rushed B y n n e
toward St. Louis, President Tru-____
man called on all Americans to "Scr~uig hsedda
giv atlest 5,00,00 hrogh least temporarily-and consumers
the Red Cross for flood relief in are adopting a "wait and see" at-
Kansas, Missouri, Oklahoma and titude, according to the findings
Illinois. of a nationwide inquiry conducted
In Ann Arbor Prof. James T. by the University Survey Research
Wilson of the geology department Center.
discussed factors responsible for prof. George Katona, director,
theltn flood. te ocy said nearly 1,000 heads of famiiles
M elntaingsnowplfromitheaRvcy were interviewed this June as to
Mount ainsllcoupeled wirthlheav their buying intentions and finan-
flocal rainfal have ledadirectlyato ces in a survey resembling but in-
flooshichan ohaer sevaiostateen-dependent of those made for the
sasCity adcothrdisetonsrof the Federal Reserve Board during the
midwst,"accodin to rof.Willast nine years,
son.
S "Although disastrous, floods arel THE SURVEY indicates, through
not nearly as common on the Mis- opinions which may influence the
souri River as on the lower Mis- coreoIuiesfrtenx
sissippi and Ohio Rivers, two ser-coreobuissfrtenx
ious floods have occurred on the few months, that five out of seven
persons consider theprsnabd
Missouri in the past century, Prof. tmetpprcae eosert good
Wilsonsaid.At the beginning of 1951, two
out of every three persons ques-
tioned believed that prices would
ta titu f rise in the next 12 months; in
June only two out of five stilll
rj~j sbelieved this.
R aft~ ripThose hesitating to make im-
mediate purchases were doing so
_ on the grounds that prices were al-
MENCHR, Iready too high rather than fear
o CheRil that prices would go higher.
Three University students and a
Boston shoved off on a 1,300 mile FEW BELIEVED that exten-
Ke "living in small groups." sive shortages would occur but
'earoldgraduate sociology student, sentiment was strongly in favor
ear-old of stricter price controls..
lilet.,l.. ..n. FcvF v ,a7.n
Senate Votes,
Ne'w Hike in
Relief Grants
jWASHINGTON-(A')-The Sen-
ate yesterday voted to give a $3-
a-month boost in the Federal share
of relief grants to needy aged,
blind and totally disabled persons.
jIn addition, the chamber ap-
proved a $1.60-a-month increase
for dependent children.
*xc
THE BILL now goes to the
House.
Sponsors of the legislation
said they are hopeful the states
will match the $3-a-month in-
crease so that aged beneficiaries
will get $6 a month more.
Old-age' assistance payments
averaged $43.14 a month across the
nation in the latest month for
which figures are available.
THE INCREASES are expected
to cost the government about
$140,000,000 a year,
Senate passage came by voice
vote after a stormy row over
the question of disclosing the
names of persons on the old-
age aid rolls.
The Senate finally agreed, by a
rollcall vote of 38 to 30, to permit
states to continue to get Federal
welfare funds even if they open,
their relief rolls to public inspec-
tion-as Indiana and Illinois have
done.
The Federal law now requires
secrecy as to the identity of re-
cipients.
Senator Jenner (R-Ind.) and
Senator Dirksen (R-Ill.) sponsored
the anti-secrecy amendment.
Insistent rumors are circulating
through Madrid that Don Juan,
the exiled pretender, may renounce
his rights to the throne in favor
fof his 13-year-old son, Juan Car-
los-if Franco will allow the boy
to be crowded under a regency.
x
A 194'7 DECREE declaring the
nation still a monarchy specified
the future king would have to be
Spanish, a male, at least 30 years
old and a Roman Catholic. The
Archbishop Primate of Spain
would serve on a three-man re-
gency.1
"Franco is believed to oppose1
flatly any attempt to put Don
Juan on the throne.
A reliable source also quoted
Franco as saying he intends to
tighten Spain's connections with,
the Western Powers, mainly the
United States.
There are nine monarchistsP
in the new 16-member cabinet.
Other ministries are held by
three Falangists, one Moderate
Leftist, two 'Technicians and Gen.
Agustin Munoz Grande, comman-
der of Spain's Blue Division in
Russia during World War II.
The resigned 12-member cab-
inet had six Monarchists, four
Falangists, one Moderate Leftist
and one Independent.
The new cabinet, which has four
new posts, retains five members of
the old cabinet.
McCarthy Calls
For Investigation
WASHINGTON -( P)- Senator
McCarthy (R-Wis.) called yester-
day for a Senate investigation of
former government officials and
Congress members who he said
are representing fortign govern-
ments in Washington.
McCarthy made the proposal
during a Senate hearing dealing
with the operations of an alleged
professional confidence man said
to have fleeced gullible victims of
about $350,000.
advance camp.
A spokesman said the official
party was returning to the ad-
vance camp.
The meeting-with peace or war
apparently depending on one issue
-had been scheduled for 10 a.m.
(5 p.m., yesterday, Ann Arbor
lime).
THAT IS SUE was not disclosed
by the U.N. delegation, but in
Washington, U. S. Secretary of
State Acheson said the Communist7
representatives "raised the ques-
lion of the withdrawal of all for- C
eign troops from Korea in connec-r
lion with an armistice."
"The U.N. delegation has stat-e
ed that it cannot go into thisI
question, which is political in s
character and can only be set-
tled by the United Nations and
the governments concerned."
Acheson added that "a U.N.t
force must remain in Korea untilr
a genuine peace has been firmly1
established and the Korean peo-
ple have assurance that they can
work out their future free from
the fear of aggression."
* *
FRIDAY'S MEETING was to
have been the eighth in the series.
An official U.N. spokesman had
said yesterday there would either
be an agreement "or there will beY
an air of finality about the dis-
agreement:"
The spokesman's statment wast
the most pessimistic yet madet
by either side since the moment-
ous talks began in Communist-1
held Kaesong July 10.
It came after a U.N. communi-
que gloomily reported "no prog-
ress" in the short seventh session
yesterday.
Gen. Matthew B. Ridgway, Su-
preme Allied Commander, hurried
back to Advance Allied Headquar-
tens in Korea after spending sev-
eral days in Tokyo.1
Correspondents said Ridgway's
unexpected return to Korea might
foreshadow important new devel-j
opments within two days or less.
HERE, BRIEFLY, was the cease-
fire picture:
1. The United Nations and
North Korea-Chinese negotiating
teams have agreed on all items
for an agenda except one.
2. The disputed item-officially
undisclosed but probably dealing
with the removal from Korea of
foreign troops-has been charac-
terized as a political matter Con-
sequently, it is out of the hands
of the Allied representatives, who
are authorized to take up only
military matters.
3. Should this item be dropped
by mutual consent, or a comprom-
ise effected, the conferees could
go right on to the question of
halting the fighting on the Korean
Peninsula.
The U.N. position has been
that withdrawal of foreign
troops would not be the best
guarantee against aggressive
acts by the North Koreans who
touched off the war on June 25,
1950 by invading South Korea.
On the fighting front, mean-
while, Allied warplanes maintained
a steady round-the-clock pounding
of Communist road and rail lines
yesterday to slow the stream of
supplies flowing to enemy ground
troops.
Ike's Plans,
Noot Known
By Truman
WASHINGTON-(A'P-President
Truman indicated he is just as.
mystified as anybody else whether
Gen. Dwight D Eisenhower will
run for the White House in 1952.
Truman told his news confer-
ence he hasn't talked politics with
Ike-as he called him-since 1949,
so he doesn't know what the five-
star general is going to do
IN NINE minutes flat, the fast-
talking President answered ques-
tions on 10 different subjects
ranging from Russia's A-bomb ex-!
periments to the key to the French
Bastile.
Besides the Eisenhower dis-.
cussion, Truman touched on the
following:
1. He replied with a crisp no
when asked if there is any evi-
dence that Russia has set off any
atomic explosions since the one
he annouinced in September, 1949.
2. For military reasons, the Unit-
ed States is changing its policy
toward Franco Spain-to some ex-
tent. Much depends, Truman said,
on what Spain is willing to do to
help strengthen the defenses of
Western Europe.
That was his reply when asked
about Madrid reports that the
United States has already reach-
ed a basic agreement with
Franco for American use of
naval and air bases in Spain.
3. Asked about a recent charge
by Senator McCarthy RWs
that Secretary of Defense Mar-
shall is involved in a great Com-
munist-linked conspiracy against
the United States, Truman said:
That is one of the silliest
things he has ever heard of, and
he doesn't 'think it helps this
country for people supposedly
responsible for the nation's wel-
fare to make silly statements
like that.
McCarthy made the charge in
a Senate speech.
4. He had no comment on the
possibility of an early decision in
the Korean truce talks.
5. He has not heard directly
from W. Averell Harriman, his
diplomatic trouble - shooter, on
Harriman's attempt to settle the
Anglo-Iranian oil crisis.
World News
Roundup
By The Associated Press
WASHINGTON - Members of
Congress and the Army promised
swift action today to push housing
legislation and end squalor and
rent gouging around army camps.
The pledges followed a report
by a senate preparedness subcom-
mittee charging rent gouging and
substandard housing at a number
of military installations.
DETROIT-The cruiser
"fourth marce," allegedly in-
volved in a Detroit river aci-
dent in which two fishermen
drowned, had a 150-foot "blind
spot" at its bow, her skipper said
today.
WASHINGTON-A House sub-
committee will open a hearing in
Detroit next Monday into purchase
of tank and automotive parts by
while touring England last summer
in."
ge from the headwaters of the
laxing or abolishing controls. 1
"Since interviewing was done in
June the survey does not reflect
two. recent developments - the
cease-fire negotiations in Korea
and congressional discussions look-
ing toward the relaxation of con-
trols, but the effects of these two
developments m a y compensate
LUCK OF THE IRISH:
NewMishap Hits Ireland Players
two men and two women expect
to learn:
What are reactions when com-
nlanionshin is reduced? H~ow dot
12 by 12 raft "Lethargia" will head
dlown the Allegheny to Pittsburgh
for the initial leg of the venture.
tThere the groi will swing intoj
By MARGE SHEPHERD 1 house trailer bearing the Players
"It's no jinx, it's absolutely co-I and their scenery broke down for
incidental,"' but I certainly hope it fascn iei loigoIl
ends soon," Michael Lawrence, 1Iasecnd time in Bloomi,, rngt l
Later one of the actors suf-
fered a crushed nerve in his
elbow, but appeared in the per-
formance last night.
i!
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