f;J-I -AL tr rig rn iE3 a11 c" 0 ' ( 0 ; , ~ 0, 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! iI