A PLAN FOR PEACE IN SOUTHEAST ASIA See Page 2 I Latest Deadline in the State P4atti; CLEAR, PLEASANT VOL. LXIV, No. 25S ANN ARBOR, MICHIGAN SATURDAY, JULY 24, 1954 FOUR PAGES Y Staff Aide Ic RchfUdtld Davis'Contempt I sBy MCarthyCharge Passed Not Cleared; LaVenia Stays WASHINGTON ()-Sen. McCar-. thy (R-Wis) and his Investigations subcommittee Friday refused to fire a staff aide after the Defense Department renewed its refusal- without explanation-to grant the man a security clearance. Central figure in this dispute be- tween the McCarthy group and the Pentagon is Thomas W. LaVenia, former Secret Service agent now serving as office manager and as- sistant counsel to the Senate sub- committee. New reports circulated mean- while that the administration is seeking some way of easing Sec- retary of the Army Stevens, out of his 'ob as a result of the Army- M~arthy controversy. One sug- gestion heard was that he might be offered an ambassadorship. At the White House, Murray Sny- der, assistant press secretary, said he had made inquiries and re- ported: "I have heard no reference what- soever to any change in Mr. Ste- vens' status." Brucker Comments Wilber M. Brucker, general coun- Ysel to the Defense Department, said after a closed-door session with the McCarthy subcommittee that he had refused to give the reasons for not clearing LaVenia on the ground that to do so would breach a confidence with the FBI. A security clearance entitles the holder to handle secret and con- fidential documents. Brucker said the Justice Depart- ment, which supplied the informa- tion on which the Pentagon based its decision in LaVenia's case, had insisted that the details be with- held, Reasons Demanded The upshot was that the subcom- mittee announced a new demand that the Defense and Justice de- partments give the reasons for La- Venia's nonclearance, and decided that LaVenia be retained in 'is Job but assigned meanwhile to duties in which he will not handle classified documents. McCarthy said the subcommittee took a sworn statement from La- Venia in which -the latter gave his own version of why he believes he is being denied clearance. "I think he acquitted himself completely," McCarthy said. LaVenia himself has told news- men he thinks the reason he was not cleared was that while attend- ing St. Johns University Law School in Brooklyn, N.Y. in 1936 he was associated briefly with the American Law Students Assn., a group McCarthy has called leftist. 'U' Student Seeks Help Of Congress The current Congressional fili- buster has many peculiar effects but one of its stranger and wholly unintentional ramification is its ef- fect upon a 19-year-old University student who would like to become a United States Citizen. Frank Sevcik, Jr., a Czechosla- vakian, has lived in Ann Arbor for two years with a passport from Brazil. The passport has expired, however, and he is able to stay in the U.S. only until Congress gets around to acting upon a bill introduced by Sen. Homer Fergu- son (R-Mich) which will make Sevcik a citizen. When Czechoslovakia was enter- ed by the Communists, the Sevcik family fled to Brazil, where the father was given a job. The stu- dent came to Ann Arbor because a University alumnus persuaded his fathr to send him here. Brazilian Passport Sevcik obtained a Brazilian passport for resident aliens, good for 12 month, and a renewal for an additional 12 months. Because he took temporary refuge in Brazil, he does not qualify to become a citizen under the Displaced Persons Act nor the Refugee Relief Act of 1953. Therefore, until the bill is passed Sevcik is a man without a country. Suspended Instructor One of 17 Cited Yesterday by Congress By DIANE AU WERTER Daily Managing Editor H. Chandler Davis, instructor in the mathematics department, was cited yesterday for contempt of Congress. One of three faculty members suspended last spring after his appearance before the House Un-American Activities Committee, his citation was based on refusal to answer questions or produce docu- ments at the hearings when they were held in Lansing before Rep. Clardy (R-Mich.) Touches Off Rumors The announcement of the citation touched off many rumors as to the action President Hatcher will take on Davis' suspension. (The President is expected to issue either a dismissal or reinstatement of the three men before the close of summer school). University administrators declined to comment on the possible results of the citation. However, there were no indications that it ________ _- _-- would have any effect upon whe- ther Davis would be dismissed or Areinstated. It was explained that the Uni- versity's thinking so far has been entirely based upon the actions of the faculty members before the Clardy committee and that con- eH sideration on the contempt cita- d tion would bring in an element of prejudgement. WASHINGTON ( - Sen. Byrd Before the contempt citation re- (D-Va) said Friday that housing in- sults in a jail sentence, it will be . h uhanded over to the justice depart- vestigations have uncovered an t for prosecution. "unsavoy concoction of malfea- "Most Explosive" sance, greed, collusion and graft," Davis was one of 17 people cited and he demanded that Atty. Gen. yesterday. Chairman Velde (R- Brownell start p r osecutionsIll.) called them "Some of the promptly. most abusive witnesses ever to ap- The situation, Byrd said in a pear before the committee." speech prepared for Senate deliv- Prof. Mark Nickerson of the' ery, "is one of the most scandalous medical school, another faculty in the history of our govern- member to appear before the com- ment's operations.''mittee last spring, took issue with Of more than 60 billion dollars this statement, maintaining that in federal subsidies for housing in "Davis was anything but abus- the last 15 years, in the form of ive . . . he was quiet and respect- loans, loan insurance, grants and ful. He would never have been appropriations the senator said, no- cited if he had used the Fifth body ever will know how much Amendment in refusing to answer has gone to "profiteers." questions." "Day by day the exposures con- E This viewpoint was upheld by tinue," he said, "but efforts to Ed Shaffer, Grad, who also was prosecute the guilty are not obv - a witness on the day Davis testi- ous. In view of multimillion dol- fied. He said, "Had Davis used lar windfalls, it is inconceivable the Fifth Amendment, as I did, he that no instances ofsfraud and graft would never have been cited for occurred." contempt." Byrd said it is clear to him that Davis who is vacationing in the with proper effort many prosecu- East and unavailable for comment tions could be started, leading off declined to answer all questions of with Clyde L. Powell, who was affiliation and association before fired last April as assistant com- the committee on the basis of the missioner of the Federal Housino First Amendment. He had pre- Administration viously been warned that only the Adminstraion.Fifth Amendment would grant him Byrd said that he wrote Brownell immunity. April 27 urging prosecution of Pow- After the Lansing hearings, Rep. ell, that Brownell replied, "But to Clardy told newsmen that he date he has reported no prosecu- would ask contempt citations for tions." three of the five University wit- Powell twice has invoked the nesses, Davis and students Shaf- Fifth Amendment against possible fer and Mike Sharpe, Grad. Nei- self-incrimination and refused to ther of the students were men- testify at Senate Banking Commit- tioned in Chairman Velde's re- tee investigations of the housing quest for citations, however, al- situation. though Clardy told The Daly less For weeks, the committee has than a month ago that he would been bringing out testimony that press for their citations. FHA guaranteed numerous loans Crowley Cleared for apartments at figures far above In other action of the day, the construction costs, with the build- House adopted by voice vote a ers pocketing the difference, to the resolution clearing Francis X. extent of millions in what Byrd T. Crowley, a former University called windfall profits. Investiga- student, of a similar charge. Crow- tors say tenants pay -higher rentals ley was cited a year ago for con- as a result, tempt when he refused to co- operate with the committee. June .ove To Reduce 29, however, he returned to the stand and laid bare the Com- T raffC Deaths munist picture as he saw it in Ann Arbor. LANSING- (AP) -The muster- Among the other seventeen cit- ing of additional manpower was ed yesterday Balza Baxter, of De- suggested at a traffic conference troit, who was accused of refusing Friday as one possible means of last May to hand over records of cutting Michigan's holiday high- the Michigan Labor Youth League, way death toll, at the Detroit hearings. Strike Ends DETROIT 64)J - The CIO United AutoWorkers Interna- tional ordered Chrysler Corp. strikers back to work Friday night on a finding that their walkout was unauthorized and a contract violation. The strike, which has idled 45,850 workers, caused a virtual halt to all Chrysler's automo- bile production in Detroit. More than 10,000 Dodge main plant strikers, whose walkout lead to the general tieup of the company's 15-odd plants in De- troit, were ordered to return to work "at the earliest possible date." Bonn Agent Voluntarily Joined Reds BERLIN (P) - Soviet-controlled East Germany broadcast Friday night that Dr. Otto John, West German security chief, fled vol- untarily to the Communist zone. He has information which could wreck the West's whole counter- spy network in East Germany. John, sometimes c a l l e d "the man with a thousand secrets," left West Berlin three days ago and vanished in the East sector. Some Western authorities clung to the theory he had been kidnaped. Reunification Task The East German radio said in its special broadcast John's task now would be to work for reunifica- tion of all Germany. It presented during the broadcast a voice it said was that of the missing West German Intelligence chief. It was the first word from the East about the man whose dis- appearance may force the United States and Britain to overhaul all their underground operations in the East Zone. In the Communist broadcast, the voice announced as John's said Germany was in danger of being torn apart forever and for that reason he decided to contact East Germans last Tuesday on the 10th anniversary of the July 20, 1944, bomb plot to assassinate Adolf Hitler. He went on to say that he would issue a pamphlet soon in which he would give detailed reasons for his actions and would submit pro- posals for reunification of Ger- many. Western monitors said the voice was clear and clam. Roundup Underway Western intelligence heard re- ports that a roundup already may be underway of East Gemans who regularly send out information on Soviet activities. Some doubt remained whether John, 44, was kidnaped by the Reds or defected East on his own. The U.S. High Commission view was that John "was. forced" into the East and is now being held in Berlin's Soviet sector. West Berlin police, who had been directly responsible for John's safety while he was in this divided city, clung to the theory he and a doctor acquaintance voluntarily went to the Russian sector. They said John suffered "serous mental depression" recently and that a letter left behind by the doctor reported John would not return. Budenz Says Nowak of Value To Communists DETROITUP) -Former Commun- ist Louis Budenz testified Friday that former State Senator Stanleyj Nowak was a "very valuable mem- ber of the Communist Party." Budenz, now an assistant profes- sor of economics at Fordham Uni- versity, testified before Fed'eral Judge Frank A. Picard that he first met Nowak in 1937 or 1938. He said the occasion was a closed meeting in Chicago of the midwest "functionaries of the Com- munist Party." Budenz added: "A most important member of the Politbureau, Jack Stachel, was there and Stachel introduced me to Nowak. Stachel described Now- ak as a very valuable member of the Party." Budenz testified at the denatur- alization trial of Nowak. The U.S. seeks to take away Nowak's citizen- For Private House Approves Measure Atom Power ____. . I 1 t l a -Daily-Duane Poole CANDIDATE PHILIP A. HART DISCUSSES POLITICS WITH WILLOW VILLAGERS BEFORE COMING TO ANN ARBOR Candidate Hart Campaigns in COunty By BAERT BRAND For local Democrats, yesterday was Philip A. Hart day in Wash- tenaw county. Hart, who is seeking the Demo- cratic lieutenant governor nom- ination in the August 3 primary, climaxed a full afternoon of cam- paigning in the area with a speech to local Democrats at the home of City Democratic Committee Chairman Mrs. Mary Moise last night. Describes Job Hart described the Lt. Governor job as "the most important office save one in Michigan," adding that because the office-holder could become governor the same tests for selection should be in- volved. Great responsibility goes with the Lt. Governor, he said, be- cause as presiding officer of the Senate he assigns bills for com- mittee action. Bills must be plac- ed in the proper committees and Ex-Reds Give' Valuable Aid As Witnesses MACKINAC ISLAND, Mich. Ai- Assistant Attorney General Warren Olney III said yesterday the use of ex-Communists as government witnesses in trials involving Com- munist defendents is "indispens- able and in the public interest." Retorting sharply to recent crit- icism of the use of such witnesses, Olney said that one-time party members who have had a change of heart have made important and valuable contributions to the Jus- tice Department's campaign to break up "the Communist conspir- acy" in this country. Further, Olney said he was sat- isfied the testimony given for the government by former Commun- ists has been truthful and accu- rate. Talks to MAPA The assistant attorney general, who heads Justice's criminal di- vision, discussed the matter in an address prepared for the Michigan Association of Prosecuting Attor- neys. He called no names but said that "recently, the department has been the target for an unprece- dented barrage of abuse, emanat- ing mostly from certain newspaper columnists, because the govern- ment is frequently utilizing the testimony of former members of the Communist party in criminal prosecutions of various kinds where membership in the Communist Party is alleged or is otherwise an issue." Columnists Joseph and Stewart Alonn in recent weeks have charged then the Lieutenant Governor's job is to, make sure that action is taken, he added. The lieutenant governor sits in on the State Administrative Board which Hart called the "Board of Directors for the State." With a Republican Lt. Gover- nor now in office despite the fact that the Governor is a Demo- crat, Hart declared that the Board needs another Democrat to help absorb the Republican artillery thrown at Governor G. Mennen Williams. He feels that he as Democrat Lt.eGovernor would be the man to serve on the Board. Tribute to Moody Although 'Hart, who was legal advisor to Gov. Williams for two years, paid high but brief tri- bute to the late Blair Moody, dis- cussion prior to his speech center- ed upon clarifying the atmos- phere for future strategy in the Senatorial election this Novem- ber. It was brought out that Gov. Williams will not make a state- ment until after Moody's funeral. The Democratic State Central Committee has taken no official stand yet either as to adopting a "sticker candidate" to replace Too Busy WASHINGTON (P)-The De- fense Department has put its "big team" of top executives and military chiefs on notice that they should be too busy to write signed articles for maga- zines and other periodicals. The department's "informal position on the matter was stated in a memorandum dat- ed May 15 which went to the Security and Review Office which passes on all acticles be- fore publication. The memorandum suggested that "members of the big team are so busy and so occupied with their heavy responsibili- ties" that articles for general publication are "inappropriate" and time given to writing them "ill-advised." Moody in the primary or to en- dorse the sole remaining Demo- crat Patrick McNamara, running on the Senatorial primary to op- pose Republican incumbent Homer Ferguson. A problem brought out in the discussion concerned the fact that Moody's name will remain on the primary ballots. If his name should carry the election, the question arises as to whether or not the State Cen- tral Committee could legally chose a man to replace him on the No- vember ballot. Dulles Says Rest of Asia Can Be Held WASHINGTON (A - Secretary of State John Foster Dulles said Friday that a protective line can be drawn by the free nations around the non-Communist states of Indochina even though the Gene- va peace settlement may prevent those states from joining actively in an anti-Communist alliance. Dulles indicated at a news con- ference that he does not think a power vacuum will necessarily de- velop in South Vietnam, Cambodia and Laos. He said French-protected South Vietnam has , plenty of arms and he thinks some military aid may be continued by the United States. Refuses Red Bid Dulles turned down a Russian bid for international conferences aimed at breaking the East-West deadlock on atomic energy, Ger- many, Korea and European secur- ity arrangements. In the light of past failures, he said, it would not be profitable to resume talks with Russia on these problems until Moscow changes its attitude. The United States, he said, has gone very far in testing Russia's good faith but so far has found the results entirely negative. Filibustering Senators Continuing Debate Enters 3rd Day of Marathon WASHINGTON 01 -In a terrific, two-front struggle over atomic legislation, the Eisenhower admin- istration won a big skirmish in the House Friday night but still faced a stone wall erected by fili- bustering senators. By a standing vote of 161-118, the House approved a provision de- signed to keep the Atomic Energy Commission out of the business of producing power for commercial purposes. The administration bill, a broad revision of present atomic law, provides among other things for inviting private business into the field of atomic power for peace- time purposes. Administration men contend that is in accordance with the American system of free en- terprise but their critics, mostly Democrats, argue that the bill is so drawn as to turn vast national atomic resources over to "private monopoly." Thursday night, in the midst of its marathon session, the Senate dealt a blow to the administration on this issue. On motion of Sen. Edwin C. Johnson (D-Colo), it voted 45-41 to authorize the AEC and other federal agencies to build BULLETIN WASHINGTON- (A) - The House early Saturday defeated, 172-115, a proposal to block Pre- sident Eisenhower's directive placing new private power facil- ities in the Tennessee Valley. plants big enough to produce pow- er commercially. Cooperatives and publicly owned utilities would get first call on any surplus power from such plants. But an identical amdnement was ditched in the House, and substi- tuted one offered which declares in effect: Nothing in atomic law authorizes the AEC to sell or distribute any electricity except that produced as a byproduct in its research plants, If both chambers should stand on their decisions, the struggle would be transferred to a Senate- House conference committee. On the Senate side of the capital, the talkfest passed its 58th hour at 8 p.m. and the White House declared "the filibuster . . . . is ejopardizing enactment of key declarei? Wheat Growers Favor Control In Large Vote WASHINGTON W--The nation's wheat growers voted Saturday by the narrowest of margins to fix marketing quota controls for the 1955 crop. It was not until after 1 a.m. EDT that a resounding "yes" vote from North Dakota sent the quota controls over the top in a nation- wide referendum that was not sup- posed to be even close. It required 66.7 per cent of the votes to be favorable for the con- trols to go into force. Before the returns came in from North Da- kota the percentage stood at ex- actly that figure. North Dakota with a whopping 96.6 per cent "yes" vote, pushed the margin up to 71.8 per cent Four states remained to be heard from, but returns from these states plus the 13,000 challenged votes would not change the results of the referendum. Swimmer Sets Endurance Record MIAMI, Fla. (R-Skin diver Ed Fisher earned a- world endurance Arms Unloaded Star Detroit Lion Player Jailed after Cafe Fight By JACK HORWITZ Bob Hoernschmeyer, star half- back of the Detroit Lions National Football League Cahmpions, was one of three men jailed early yesterday morning after a pre- dawn swinging brawl in a Main St. restaurant. Hoernschmeyer, Benjamin J. nicholson. and Patrick J. Conlin two men made some comments and "Hunchy" protested. The com- ments were fired back and forth and then Conlin and Hoernsch- meyer started scuffling. The patrolmen interrupted but were unable to break up the brawl until they took "Hunchy" outside and handcuffed him. The police- men then apprehended the two .: .::: :::: . r . ::.... ..: .::. .:: ':;. X.::.: