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August 07, 1954 - Image 2

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Michigan Daily, 1954-08-07

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PAGE TWO

THE MICMGAN DAILY

SATURDAY, AUGUST 7

PAGE TWO THE MICH1GA1~ DAILY

.SAT ..DA.. AT1 T1T%.0 7. ytV

THE BOX SCORE:
Eisenhower Legislation
in Retrospect

During the year's session, Congress passed no
important law that had not been part of Presi-
dent Eisenhower's program. But many of the Presi-
dent's proposals were sharply modified, others de-
feated, some still pending. The line-up:
Victories
St. Lawrence Seaway. Passed after 30 years of
delay.
Tax Revision. A massive, 1,000-page streamlining
of the Internal Revenue Code was passed, cutting
next year's anticipated tax revenues by $1.36 bil-
lion. Democratic moves for larger-scale reductions
were. successfully blocked. The Administration re-
quest for dividend income relief was partially en-
acted. The House approved deductions up to $100,
plus up to 10%, but they were thrown out in the
Senate. The final compromise of $50 and 4% es-
tablishes the principle of this type of deduction,
and counts as an Administration success.
Excise Taxes. With Administration approval,
many 20% excise taxes were halved. The drive to
pare tobacco, gasoline and liquor taxes was opposed
by the Administration because the cost in lost re-
venue would be too high. It was defeated.
Air Force Academy. Approved.
Highways. A stepped-up program for highway
construction, calling for $1.93 billion of grants-in-
aid to states, was passed.
Commodity Credit .Corporation. A $1.75 billion
increase in borrowing authority was passed.
Korean Defense Pact. Ratified by the Senate.
Hospitals. A three-year, $182 million program for
hospital construction, medical centers and nursing
homes was authorized.
Housing. A very limited victory, representing
something like a 50-50 compromise on the Presi-
dent's mortgage insurance proposals, something
less than that on public housing. Ike asked for
140,000 public-housing units in four years, got 35,-
000 in one year, with restrictive conditions under
which they must be built.
Atomic Energy. Passed. The bill sets up ma-
chinery to create a private atomic-energy industry
for generating electric power, and permits the Ato-
mic Energy Commission to exchange nuclear ma-
terials and information with friendly nations.

Probable Victories
Farm Parity Prices. A compromise version es-
tablishing the policy of flexible price supports pass-
ed the House, is delayed in the Senate.
Social-Security Expansion. Passed the House, tied'
up in the Senate, which is likely to eliminate some
compulsory coverage the Administration asked for.
Death Penalty for Peacetime Espionage. Passed
the House, awaiting its turn in the Senate.
Witness Immunity. Passed the Senate, awaiting
House action. The bill would force Fifth Amend-
ment witnesses to testify by protecting them from
prosecution based on their testimony.
Defeats
Hawaiian Statehood. Passed by the House. The
Senate simultaneously passed the bill but scuttled
Hawaii's chances by linking it with Alaska, which
the House would not accept.
Voting Rights for 18-year-olds. Killed in Senate.
Taft-Hartley Act Revision. Killed in the Senate.
Health Reinsurance. Killed in the House.
Postal-Rate Boost. Killed in the House.
Wiretap Authority in Subversive Cases. Passed
by the House, snagged in a Senate committee.
Foreign Trade. A one-year extension of the Re-
ciprocal Trade Agreements Act was passed, but it
contains none of the authority to cut tariffs that
the President originally asked, thus defeating in
principle a clear presidential policy. The adminis-
tration made no serious effort to get the rest of its
foreign economic program.
Liquidation of Red-Led Unions. Shelved in Sen-
ate and House committees.
Security Risks in Defense Plants. Gutted by a
Senate committee, shelved by a House committee.
The bill would give the government power to order
dismissal of any security risk in a defense plant.
In the Balance
Unemployment Compensation. Passed by the
House, trying for its chance in the Senate. The bill
would extend coverage to 4,000,000 new workers.
Debt Limit. The House authorized raising the
limit from $275 billion to $290 billion. No action
yet in the Senate.
--Time Magazine

"Try This On For Size And See Me Again N xt Year"
-
, -
-'-
ILI
O i
..
DAILY OFICIAL ULLETI

]

HOW MUCH FOREIGN AID?
The International Economic
Program in a CriticalStage

XYZIITH THE foreign aid authorization bill in con-
ference and the appropriation bill still to be
completed, this country's international economic
program had yesterday reached a critical stage. To
the President, speaking at his press conference, the
action of the Seanate in lopping half a billion more
off the sum requested seemed niggardly. The same
adjective could be applied to- the House action on
the appropriation bill. Everybody concerned seemed
to be anxious to sweat the dollar figures down with-
out asking what the dollars would buy. The Senate
authorization measure represented not merely a
half-billion-dollar cut in the bill as originally con-
sidered, but it was 800 million dollars below the
approximately $3.5 billions of new money the Ad-
ministration had asked for.
The President said that the Administration had
already cut the foreign aid figure as far as it
thought was safe, and no one can doubt his sin-
cerity. He is as anxious as anybody to sweat expen-
ditures down and carry out his promise to balance
the budget. But there are situations in which it
simply isn't economic to cut expenditures. The Pre-
sident thought that members of Congress might be
more sympathetic with foreign aid if'they could see
what foreign aid does. They may not be as well
aware as he is of the situations into which such
aid goes. There can be no better answer to Com-
munist threats and Communist propaganda than
an increase in the military and economic strength
of the democratic countries.
Foreign aid is bound to change its character as
it goes on-indeed it has already done so. It is
less and less a matter of direct economic contri-
butions. Emphasis now is laid on building up a
defensive military strength. There has also been
a shift in emphasis so that the Far East gets more
attention and Europe relatively less attention
than was the case a year or so ago. Finally, in
the Far East itself we have to reconsider our pro-
gram. For example, we can hardly put military

supplies into Indochina to maintain a position
that has already been surrendered. Nevertheless,
our friends in the Far East will continue to need
our help and encouragement. I
If we could diminish or extinguish our commit-
ments abroad without endangering our own secur-
ity, there would be an argument for doing so. But
In a very real sense we are our brother's keeper and
he is ours, whether we desire this or not. If we do
not strengthen our, friends abroad we will find it
necessary to build up greater strength-and by this
we have to mean military strength-at home. In
other words, we cannot safely save many dollars on
foreign aid. It is a question of where the dollars will
pe spent and for what purpose.
We need perhaps to revive some of the hopeful-
ness and resultant enthusiasm 'with which the Mar-
shall Plan was received seven years ago. The Mar-
shall Plan-and the President must have been
thinking of this as he paid his warm tribute to Gen-
eral Marshall yesterday-won a great victory for
freedom. It saved Europe from economic disaster
and in doing so saved it from political disaster. Now
we stand on the threshold of new projects and de-
mands. We have witnessed a victory for communism
in Indochina following what was at best a stale-
mate in Korea. But the march of communism may
be slowing down. We may be able to halt it through
military aid, economic aid and the long-range as-
sistance. We may be able to rally our friends and
make firm the boundaries of the democratic world.
Success in this venture will cost money, but it will
not cost as much money as failure would. Yesterday
a conference committee dealing with the foreign aid
authorization measure was putting back some of the
cuts that had been made. Let us hope that there
will be enough statesmanship in both houses to give
the Administration, when the appropriation bill
comes up, the money it really needs. We cannot
afford to be niggardly with democracy's future.
-N.Y. Times

The Daily Official Bulletin is an
official publication of the University
of Michigan for which the Michigan
Daily assumes no editorial responsi-
bility. Publication in it is construc-
tivesnotice to all members of the
University. Notices should be sent in
TYPEWRITTEN form to Room 3510
Administration Building before 3 p.m,
the day preceding publication.
SATURDAY, AUGUST 7, 1954 E
VOL. LXIV, No. 35S
Notices
Admission Test. for Graduate Study
in Business: Candidates taking the Ad-
mission Test for Graduate Study in
Business on August 14 are requested to
report to Room 130, Business Admin-
istration at 8:30 Saturday morning. Be
sure to bring $10.00 registration fee
(check or money order).
Attention August Graduates: College
of Literature, Science, and the Arts,
School of Education, School of Music,
School of Public Health:
Students are advised not to request
grades of I or X in August. When such
grades are absolutely imperative, the
work must be made up in time to al-
low your instructor to report the make-
up grade not later than 11 a.m., Aug-
ust 19. Grades received after that time
may defer the student's graduation un-
til a later date.
EDWARD G. GROESBECK
Assistant Registrar
Recommendations for Departmental
Honors: Teaching departments wish-
ing to recommend tentative August
graduates from the College of Litera-
ture, Science and the Arts, and the
School of Education for departmental
honors (or high honors in the College
of L.S.&A.) should recommend such
students in a letter delivered to the
Registrar's Office, Room 1513, Admin-
istration Building, before August 19.
EDWARD G, GROESBECK
Assistant Registrar
Women's Swimming Pool - Recrea-
tion Swimming Hours.
During the week of August 2, the
hours for women are as follows: 5:00-
6:00 and 7:30-9:00-August 2-6, Monday
through Friday (Friday night will be
Family Night.)
The pool will close for the summer
on Saturday, August 7.
Art Print Loans must be returned to
Room 510 Admin. Bldg. on August 5-6
between the hours of 9-12rand 1-5 or
on Saturday, August 7 from 8-12. A
fine of twenty-five cents (25c) a day
will be charged for all overdue pictures.
All student groups interested in a
booth at registration should make a
type-written request to the Registrar's
Office as soon as possible.
Law School Admission Test: Candi-
dates taking the Law School Admission
Test on August 7 are requested to re-
port to Room 100, Hutchins al at
8:45 Saturday morning.
PERSONNEL REQUESTS
Station WKMX, Saginaw, Mich., has
a Traffic position open for a young wo-
man graduate. Anyone who has had
courses in radio or TV is eligible to
apply. This is a permanent, full time
position. For additional information
contact the Bureau of Appointments,
3528 Administration Bldg., Ext. 371.
Academic Notices
Doctoral Examination for John Wil-
bur McClymont, Botany; thesis: "Spores
of the Musci: Their Structure and Sig-
nificance in Systematic Research," Sat-
urday, August 7, 1139 Natural Science
Bldg., at 9:00 a.m. Chairman, W. H.
Wagner.
Doctoral Examination for Gertrude
Elizabeth Nye, Linguistics; thesis: "The
Phonemes and Morphemes of Modern
Persian: A Descriptive Study," Monday,
August 9, 102D Tappan Hall, at 2:00
p.m. Chairman, Herbert Penz.
Doctoral Examination for James Ed-
ward Lynch, Speech; thesis: "A Study
of the Size and Composition of the
Viewing Audience of an Educational
Television Program in the Detroit Met-
ropolitan Area," Monday, August 9,
4002 Angell Hall, at 4:00 p.m. Chairman,
E. E. Willis.
Doctoral Examination for Earl Wads-
worth McDaniel, Physics; thesis: "An
Experimental Determination of Nega-
tive Ion Mobilities in Oxygen and Oxy-
gen Mixtures," Monday, August 9, East
Council Room, Rackham Bldg., at 10:00
a.m. Chairman, H. R. Crane.
Doctoral Examination for Robert
Richards Lewis, Jr., Physics; thesis:
"Some Contributions to the Theory of

ton, Judith Price, Harley Rex, Eleanor
Ryder, Keith Saxton, Frank Stachow,
Lois Stauffer, and Jack Wagner. Com-
positions will cover works by Pugnant,
Handel, Bach, Purcell, von Knorr, We-
lander, Bozza, Swain, Gershwin, Leon-
ard, von Weber, and Chopin, five of
which have been dedicated to Mr. Ras-
cher. The concert will be open to the
general public.
Student Recital: Elizabeth Woldt,
Heidbrink, violist, will play a recital in
partial fulfillment of the requirements
for the Master of Music degree at 8:30
Monday evening, August 9, in the
Rackham Assembly Hall. Her program
will include compositions by Henry
Eccles, C. Stamitz, John Duke, and
Ernest Bloch, and will be open to the
public. Mrs. Heidbrink is a pupil of
Robert Courte.
Stddent Recital: Jay Thompson, bari-
tone, will appear in a recital at 8:30
Tuesday evening, August 10, in Audi-
torium A, Angell Hall, in partial ful-
fillment of the requirements for the de-
gree of Bachelor of Music. It will in-
clude compositions by Purcell, Dibdin,
Handel, Rosa, Falconieri, Carissimi, Mo-
zart, Wolf, Host, Vaughan Williams,
Charles Griffes and Peter Warlock, and
will be open to the public. Mr. Thomp-
ton is a pupil of Harold Haugh.
Student Recital: Sister Maria Invio-
lata Delaplane, pianist, will be heard at
4:15 Tuesday afternoon, August 10, in
the Rackham Assembly Hall, playing a
recital in partial fulfillment of the re-
quirements for the Master of Music de-
gree. It will include compositions by
Mozart, Beethoven and Bartok, and
will be open to the general public. Sis-
ter Maria Inviolata is a pupil of John
Kollen.
Exhibitions
Clements Library. Women and Wo-
man in Early America.
General Library. Women as Authors.
Kelsey Museum of Archaeology. Egyp-
tian Antiquities-a loan exhibit from
the Metropolitan Museum of Art, New
York City.
Michigan Historical Collections. The
University in 1904.
Museum of Art. Museum Collections.
Coming Events
Sunday, August 8
Services in Ann Arbor churches.
Hillel Pre-Final Open House: When?
Sunday, August 8, 8-10:30. Where? Hil-
lel Foundation-1429 Hill. What? Dan-
cing, games and refreshments. Free-
everyone welcome.
Michigan Christian Fellowship, Sun-
day, August 8. This will be our last
meeting before the summer session
closes. The program will be at the regu-
lar meeting place at Lane Hall at 4:00
p.m. and will consist of a hymn sing,
a devotional talk by Dr. Louis York,
Professor in the Chemical and Metal-
lurgical Engineering Department here
at the University, and a time for testi-
monies. Refreshments will be served
following the meeting.
Film showing, auspices of the Inter-
national Center. 8:00 p.m., Internation-
al Center.
Graduate Outing Club: Will meet on
Sunday at 2 p.m. in back of the Rack-
ham Building to go to the lake. Every-
one welcome.
Sixty-Fourth Year
Edited and managed by students of
the University of Michigan under the
authority of the Board in Control of
Student Publications.

Xettena4
TO THE EDITOR
A Conservative Speaks..
To the Editor:
t WANT it understood that I
speak as a conservative; that
am a perfectly orthodox Roman
Catholic; and that there has nev-
er been a moment in the last
twenty ears-not even when so
many of my liberal fellow-citizens
were persuading themselves other-
wise-when I doubted that Com-
munism was a deadly menace to
mankind.
And now I should like to ask
President Hatcher and his ad-
visors, in the name of reason, and
in the name of all we owe to free-
dom, why they think Chandler
Davis must be fired. If his posi-
tion made him in any degree a
threat to our national security, I
wouldn't hesitate, on the basis of
the record already public, to fire
him. But that isn't the case. If
there were any evidence of im-
proprieties in Dr. Davis' relations
with his students either in or out
of class, I would say fire him. But
there is no such evidence, and
there are statements on record
from his students and colleagues
explicitly contradicting the sug-
gestion, It is sometimes said that
a commitment to Communism may
distort a man's teaching. But Dr.
Davis teaches mathematics! What
might he do? Start claiming that
four and four make eleven or
twelve? Finally, we note that Dr.
Davis' professional competence
has never been questioned, and
that he stands convicted of no
crime, and of no scandalous or
public breach of morals.
What, then, is all the excite-
ment about? Is he merely being
offered up as a sacrificial victim
to appease the powers tha the?
Or will the reply be that Dr. Da-
vis, in refusing to answer ques-
tions about his political convic-
tions and activities shows a want
of proper candor before his col-
leagues? Come gentlemen, for
shame! Why do we put these nas-
ty questions to Dr. Davis at all,
in the absence of any reasonable
need to know the answers? Is that
the disposition of men who love
liberty and who loathe the spirit
of the inquisitor?
I don't claim that Dr. Davis has
any inalienable right to teach; I
don't say that the people of Mich-
igan haven't the right to seek his
dismissal. But I do say that this
university has the obligation to
resist the attempt to dismiss him.
It has the obligation to instruct
and edify the society it serves:
and not only in its classrooms, but
most important of all in these sad
days, by the example of its con-
duct on the stage of our public af-
fairs. If the University will not
speak, and act, for freedom and
for reason, who will?
-John F. Baumgartner,
Grad.
Interpreting
The News
By J. M. ROBERTS JR.
Associated Press News Analyst
Despite a last 'minute appeal
from the President, Congress ap-
parently is going to make quite a
slash in foreign aid and order the
whole economic program ended
next year.
The administration asked for
about 3 billion. The House bill cut
off about 200 million and then the

Senate put its figure at $2,700,000,-
000. In conference Thursday it was
finally agreed for the two houses
to authorize about three billion.
Opponents of continued aid might
yet succeed in reducing this figure
when the actual appropriation is
voted.
They had already won a pro-
vision in the bill to end economic
aid, but a cut-off date for military
aid was eliminated by the confer-
ees to reassure the free world that
the United States was not dropping
the fight against Communist ag-
gression.
The President accused the cut-
backers of failing to understand
what the Kremlin is doing in the
world and what the United States
needed to do to build up the rest
of the world against Red propa-
ganda, outright subversion and
bribery.
He got $319,000,000 back from
the Senate cut, but that's about all.
The Foreign Operations Adminis-
tration is to be abolished by next
summer if not sooner.
Just how military aid and the
Point Four technical assistance
programs will be administered aft-
er that has not been spelled out.
Presumably the State Department
will again become the prime
mover, a job which it does not
want and only recently escaped.
In connection with Point Four,
its return to the State Department
will be particularly disturbing.
Point Four operates much like
the extension programs of many
state universities. It provides ex-

Administration Tripped
Up y Its Jobless Figures
THE ADMINISTRATION, paint- more on the basis of an expected
ing pretty pictures of prosper- mcirease in unemployment claims

ON THE
WASHINGTON
ME H BY-GO-HOUND
WITH DREW PEARSON

Y

&maim=

WASHINGTON-The latest Mc-
Carthy incident has Senate wives
just as mad as some of their
husbands.
Seats in the "family gallery"
of the Senate are not reserved.;
However, it is a long-standing rule
that no one except a senator's wife
can sit on the front row of the
gallery. Not even a senator's
daughtercan sit on the front row.
Wives only can sit there.
Imagine the surprise of three
Senate wives, therefore, when they
were barred from sitting on the
front row because they were "re-
served for four friends of Senator
McCarthy and Mrs. McCarthy."
When Mrs. James Duff of Penn-
sylvania, Republican, together
with Mrs. Paul Douglas of Illinois
and Mrs. William Fulbright of
Arkansas,Democrats, entered the
family gallery to listen to the
Flanders resolution debate, the
gallery attendant called them back
from some empty seats in the
front row.
The sergeant-at-arms, he said,
h a d given strict instructions to
hold those five front-row seats for
Senator McCarthy. The three Sen-
ate ladies pointed out that the
sergeant-at-arms apparently didn't
know the rules.sMcCarthy had only
one wife, and she alone could sit
in the front row. But even she
could not have a seat reserved in
advance. But the attendant insist-
ed. So, to avoid an incident, the
ladies quietly sat in rear seats.
Imagine their surprise, there-
fore, when in walked Mrs. Mc-
Carthy accompanied by Mrs. Con-
stantine Brown, wife of the Waslh-
ington Star columnist, and sat
down in the front-row seats from
which the Senate wives had been
barred. With them was a bulky
man, who looked like a bodyguard,
and two elderly ladies, neither of
them a Senate wife.
McCarthy-Go-Round
Things The Senate Already
Knows About McCarthy-A lot of
time, stenographic ink, and money
will now be spent in another in-
vestigation of Senator McCarthy.
Meanwhile, the sworn official facts
already on file regarding Jumpin'
Joe take up a young library. There
have already been five investiga-
tions, directly or indirectly, of ei-
ther McCarthy or his charges ...
Here are some facts the new Sen-
ate committee can easily docu-
ment without wasting any time
whatsoever:
Malmedy Massacre-First inves-
tigation of McCarthy resulted from
his charge that the American
Army had tortured the Nazi Elite
Corps who shot down unarmed
American prisoners in cold blood
at Malmedy during the battle of
the bulge. Though the Democrats
were in power, they made a Re-
publican, Senator Ray Baldwin of
Connecticut, chairman of the in-
vestigating committee, which end-
ed with McCarthy's walkout in a
huff and charging his own Senate
colleagues with deception . .. The!
probe showed that American offi-
cers had not tortured the Nazis,
but McCarthy charges did play
into the hands of German Commu-

that Mrs. Rosenberg was just the
opposite of a Communist and she
was overwhelmingly confirmed as
assistant defense secretary ... M
The Senate voted to send the In-
vestigative report to the Justice
Department for possible perjury
prosecution, but the Justice De-
partment, after weeks of hesita-
tion, did. nothing ... This is the
same Don Surine whom McCarthy
kept on the committee staff at the
taxpayers' expense until recently
barred as a security risk by the
Defense Department.
Maryland Elections-A Senate
committee spent months hearing
evidence on McCarthy's involve-
ment in the 1950 Maryland elec-
tions. It found that McCarthy had
raised money from the Chicago
Tribune and the Texas oil million-
aires ... It showed how he had
faked a photo of Communist lead-
er Earl Browder in supposed +
friendly pose with Senator Tyd- #
ings ... It showed how the same
Don Surine had taken William Fed-
der, a Baltimore printer, for an
all-night ride in an effort to bull-
doze him into surrendering a let-
ter from John Butler, who, in de-
feating Tydings, had made Fedder
a financial pledge in violation of
the corrupt practices act ... All
this was sworn testimony ... The
Senate investigating committee re-
ferred the entire matter to the
Justice Department for possible
prosecution, but Attorney General
B~rownell quietly let the statute of
limitations expire.
State Department Communists-
McCarthy's charges of Commu-
nists in the State Department were
investigated for months. First he
said there were 205 card-carrying
Communists known to Dean Ache-
son. Then he changed the figure
to 57, then to 81-all in one week.
Then he claimed he had never
made the charge of 205 Commu-
nists - though the staff of the
Wheeling, W. V., radio station
where he spoke swore under oath
in the Benton libel suit that Mc-
Carthy had made exactly that r
statement .... The Senate probe
ended with a majority voting Mc-
Carthy could not substantiate his
charges, but with Senator Lodge
of Massachusetts voting with Mc-
Carthy . ... Last spring, ironical-
ly, McCarthy castigated Senator
Lodge as among those participa-
ting in an anti-McCarthy meeting
at the Justice Department,...
McCarthy's Communist charges
were pretty well punctured when
General Bedell Smith, Eisenhow-
er's undersecretary of state and
his chief of staff. in Europe, swore
under oath last winter that no
Communists , had been discovered
in the State Department.
McCarthy's Finances - This
probe lasted a year and a half.
It not only confirmed the $10,000
Lustron fee previously exposed in
this column, but showed that Mc-
Carthy had used $10,000 advanced
him to fight communism by Con-
gressman and Mrs. Bentley of
Michigan to speculate for his own
profit on the soy bean market. It {
also showed how he owed $170,029.-
03 to t h e Appleton State Bank
when first elected to Congress in

ity on the horizon, has been tripped
up by its own figures.
Comforting words have been
shouted from the housetops that
unemployment is easing off and
all's right with the economy. But
when it comes to asking for funds
to take care of unemployment com-
pensation claims for the next year
a far different picture has been
revealed.
The bureau of employment sec-
urity, which handles such claims,
is seeking additional funds for the
fiscal year which began July 1.
The bureau recently put in asup-
plementary request that indicates
the administration expects an
average level of unemployment
claims activity at least as large
this fiscal year as last.
A close examination of the fig-
ures shows even the higher request
is low. From the June 1954 rate
of 2 million insured unemploy-
ment would have to drop close
to 50 per cent to bring claims ac-
tivity down to the level estimated
for fiscal 1955.
The fact is, Press Associates has
learned, BES asked for a larger
supplemental appropriation based
on its own higher unemployment
estimates. However, the bureau of
the budget, the political-fiscal arm
of the administration, instructed
the bureau to revise its figures
downward.
BES originally requested $216-
million for fiscal 1955. However,
by the time spring rolled around
the bureau asked for $43 million

activity.
The house committee, headed by
representative John "Meat Axe~
Tabor tR-N.Y.), promptly chopped
down the request and recommend-
ee only $4.6 million. After all,
didn't the administration say that
the recession was over?
The report of the house commit-
tee shows how the administration's
prosperity claims have caught up
with its statistics.
It determined that another post-
war year of high unemployment
was 1950. The average number of
insured unemployed that year was ,f
2.03 million. The appropriation for
the year was $174 million.
The estimate for 1955 was 1.68
million insured unemployed. Ap-
propriations, including- the supple-
mental request of $43 million, was
for $259 million.
The committee asked: "Thus ;
with insured unemployment esti-
mated to be 17 per cent less, the
request for administrative funds
is 49 per cent more. Considerable
time was spent to determine why
there should be this discrepancy,"
The Committee finally conclud-
ed that despite higher costs and
salary rates, the real reason for
the higher request was that 3,400
more employees, were being re-
quested by BES over 1950.
Now the house committee has
called the administration's bluff
and BES has far less money and
may have fewer employees than
it thinks it will need to handle un-
employment compensation claims.
--CIO News

1t

9

Justice Department Times
Banana Split Well

I

THE DEPARTMENT of Justice were concerned
with psychological warfare, it would be being
congratulated on the timing of its anti-trust suit
against the United Fruit Company. For this firm,
through the ramifications of the banana trade
which is its main interest, has become the largest
single investor in the seven Central American re-
publics and exercises a dominant influence on their
economies. This monopoly has thus become the
symbol of "Yankee Imperialism," and the Commu-
nists who have been infiltrating the area from
Guatemala have made the company the focus of
the anti-American feeling that they have been fos-
tering.
When the United States played an open, even
if not active, part in the Guatemalan revolution,
there was a natural tendency in Latin America to
believe that the State Department was concerned
not so much with saving the western hemisphere
from Communism as with saving the United Fruit
Company from expropriation. The Department

factorily anti-Communist way, should provide an
antidote to these suspicions. It may be more ef-
fective from a propaganda point to view even then
the medical supplies which were rushed to the
support of the new government in Guatemala
over the Fourth of July holiday, or the increased
technical aid for Latin America which is being
proposed in the Senate in order to "solidify anti-
Communist gains."
One of the United Fruit Company's replies to
the anti-trust charges is that it, a private investor
doing its duty with educational, lanor, health and
welfare programmes, has been far more active than
has the US government in attacking Communism,
in Central America. Justified as are these claims,
and adequately as they answer accusations that
the company is exploiting the "banana republics,"
they have little relevance to the Department of Jus-
tice's case. This, in effect outlining the basic causes
of rCentral American resentment against United
Fruit, is that for nearly twenty years the com-
nn.v. imnn,,, arl fu-fhie, o fh h-nn

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