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November 01, 1927 - Image 1

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Publication:
The Michigan Daily, 1927-11-01

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ESTABLISHED
g 1890

J.,g

-. hUI

a41

MEMBER
ASSOCIATED
PRESS

... . . . ...........

Vol. VI, No. 37.

ANN ARBOR, MICHIGAN, TUESDAY, NOVEMBER 1, 1927.

EIGHT PAGES

TAX CT ISHOLDS IMPORTANT
TAX LOT i8 OUJTLINED siOR
POSITION IN TRIAL
TO OUS CMM"ITTEES
1ML LAYS NEW PROPOSALr
RETOh OUSE F I.OR
RFVENUE CUT:
LARGE REDUCTION ASKED
Income Tax, Estate Tax and Exemp-
ni(.<ls For American Securities:
Are Budget Features
( y Associated Press),..
WAStIINGCN, Oct. 31.-Limitation.

:5

of the prospective tax reduction to ap-
proximately $225,000,000---a lower fig-
ure even than previously estimated--
was recommended today by Secretary
Mellon at the opening of the tax hear-
ings by the house ways and means
committee.
The tax reduction program he sub-
mitted follows:
1. Reduction of the corporation tax
from 1: 1-2 per cent to 12 per, cent.
2. Extending permission to corpo-
ations with net income of $25,000 01.
less, and with not more than 10 stock-
holders, to file returns and pay the
tax as partnership or corporations at
their option.
3. Revision of the surtax rates ap-
plying on individual incomes between
$1G,00 and $90,000.
peal of the estate tax.-
O~a 'emption~ fromn taxation of the
i ederived from American bank-
s acoceptances held by foreign cen-
tral banks of issue.
Contrary to expectations, the secre-
tary opposed any change whatever in
-- - the remaining war-
time excise an d
miscellaneous tax-
^} es. He argued at
length for the re-
tention of the pres-
ying to tickets

011ISE HIESHARD 8ilOpen Present
Season With Three
TO BLOCK TESTIMONY
fl~hlTFollowing Stich campus success~es of
nilnirni-ri i last year as "The Last Warnin" and
i comedy "Duily" will be revived by
SUCCEED IN KEEPING SEVERAL Comedy Club for a four day run be-
NAMES OF CO 1PANIES ginning toiorrow ight. Appearing
FROM JURY it the title role will be Phyllis
________ Lou h toll, '28. The play will he di-
INVOLVES STANDARD OIL ed by Robert Wetzel, '28.
IN VL YE STA DARD OIL f "Juley" is a ecinedy from tihe pens
Specialil Counsel Presents Evidence eorge S. Kaufman and Marc Con-
Specal 11 ounel Pesets ddeicenelly who received their idea from the
Showing Sinclair and Steward columnist of the New York World, P.
Involved in Deals P. A. It was produced successfully in
New York several seasons ago with
WASHINGTON, Oct. 31.-Defense ;Lynn Fontanne in the leadingrole,
counsel in the Fall-Sinclair conspir- and has been revived several times
acy trial fought strenuously today to since thell. It precedes such other
block the government in the presenta- successes of the authors as "The But-
tion of testimony showing the wide ter and Egg Man" and "Beggar on
ramifications of oil fields involving Horseback." Others who will be seen
the Continental Trading Company, I in the cast are Richard Woelhaf, Grad,
Ltd. of Canada, and the Sinclair corn- Charles D. Livingstone, '28L, Vera
pany in which the Standard Oil coin- Johnson, .'2r, and Samuel Donnell, '28.
pany of Indiana holds a half interest. --
They were successful in keeping NAMED ASSISTANT
from the jury what companies were
named ill the "skeleton" draft of th COM ERCE CHIEF
final contract, under which the Con-1
tinental concern agreed to purchases
30 odd million barrels of oil from the;
late A. E. Iumphreys company, and -
also figures showing that II. L. Phil- f
lips, president of the Sinclair Crude -.
Oil Purchasing company, had been in"
error in his testimony as to the
amount of oil delivered under that
contract.
Sinclair Guaranteed Conracts
Despite the setback, special oil-
counsel presented. evidence designed
to show that Harry F. Sinclair and
Robert W. Steward, chairman of the
board of the Indiana Standard, guar
anteed Continental contracts "for the
directors" of the Sinclair Purchasing {
company, although they were not
themselves directors of that company, ,
which i own'd jm l by the tr
Sd atz the 8i~li~YL etlIg

Counsel for the government in the
Fall-Sinclair trial now being held in
Washington. The work of Roberts in
pressing the trial is one of the fea-
tures in the spectacular work of the
prosecution.
BANK OFIICALS PLAN
TO REPLACE BUlLDING'
New Three-Story Edifice Will House
Farmers and Mechanics Home
Destroyed by Train
NEW FEATURES EMBODIEDI
Plans for t i i
)v ia. tam I (Iof r imn- rp(i, h t ,,

COAL CRISIS- REACHED
AS ANARCHIST CHIEFS
VER NRSOLUTION1
I.WW. AGENTS HOLD CONFLICTING
ATTITUDES ON PICKETING
iOLICY OF STRIKERS
GOVERNOR GRANTS STAY
Orders Miners To Desist From Vio-
lence Under Threat Of Martial
Law Enforced By Troops
(By Associated Press)
DENVER, Colo., Oct. 31.-Colorado's
coal strike neared its zero hour to-
night with the I.W.W. leaders of the
walkout apparently divided on the
policy of continued picketing at the
mines in defiance of warnings from
the state and the threat of military
rule.
Half of the 30-hour stay granted by
Gov. W. Howard Adams to the strik-
ers to guarantee to him that picketing
would be discontinued had passed to
night, and the appearance of national
guardsmen into the situation appeared
imminent.
('oiflicting Views Expressed.
Conflicting views of the picketing
question were expressod by Byron
Kitio, aublicity agent for the I.W.W.
and Roger Francezom, leader of the
I.W.W. organization in the United
States. Kitio, who was arrested today
for picketing declared that picketing
would be maintained at any cost;
Francezom in an address to the min-.
ers at Walsenburg, asked that picket-
ing cease. Francezom's views were
upheld by a group of strikers meeting
at Walsenburg, who voted to comply=
with the governor's request by a vote
o' 6' to 1. Many of the strikers in
;, -% Colcriad Fuel and

f I

Carl I. Rutitman
Former newspaperman and editor
of a radio news service, who has been
appointed secretary of the federal ra-

dio commission to
ard.

NEWLY RADIO SECRETARY JA RIVIN;CITY

succeed Sam Pick-

feet I 11it
.. ,sehi

i- lie Stelii itl

ADVISER TOINSTiTUTE
Ara gcm4lr t Allows Air Itero Full
Via edumi of Aetion i Work
To Promote vialtioll
AWAITS AIRMAN'S ARRIVAL
Wv A\s O :ited Press)
NEW YORK, Oct. 31.--Col. Charles'
A. Lindbergh has been retained in a
consulting capacity by the Daniel
Guggenheim Fund for the promotion
of aeronautics and will not identify
'~~,'~ ' l('Jt 'e tiP p-re~ ~vith
he C g~uhon 1~ll~ . isue Iafol-
lowing statcmnift IO(ay
b rg ha , e-
he will not identify him elf with any
commercial undertaking.
"Tile Daniel Guggenhleim Fund for
the promotion of aeronautics has
therefore retained Col. Lindbergh in a
consulting capacity. Unider the ar-
Irangemnt with him, he will be free to
engage in any activities which will, in
hlis udgment, promote the cause of
aviation.
t ''ic 4Tewi i hit I ~
in 1- 7-
sponsibility.
"He will become a member and
trustee of the fund and his official
headquarters will be at the office of
the fund."
It was under auspices of the Gug-
genheim Fund that Col. Lindbergh
made his recent air tour of the

tha.
ANVErVW ME(.WO the
the
tobacco shouldbe ke'
est of a well-balanced
Favors General
"Unless we are to
clusively," he said,
paid by a few and are
our national govern
not 'by the entire bode
by a limited class, the
o taxes which should
The adinistrationl
enipiated no furtherr
normal income rates
dividuals nor any fur
the ?exem ions alloA
which propolitionS
battlegrounds of least
lative fights. Nor is
ong these lines now
rssional leaders.
Arguing for thIe li
total tax cut to $225
face of a surplus of
,he last Fiscal year ai
muairginl of $445,000,00
Mr. ielln insisted th
the reuctionmustl
available iln tile fiscal
be sa:, is 5estimateda
N) Extra Revell
The secretary fiank
"for @ ,ammlber of year
Bury estimates have
revenue that was lat

yJ ~ . a , aL o ru way re~ 4~bk ~d 1 t car o '..'±J ,J ' ~
hing for more y u LI axn UI I'Ulic1.mya nt counsel contended was Iwron coi La ! y atoaco. Ue hadtpre-
n 75 cents on earlylastugust were announced yes- millions. Owen J. Roberts of counI ron cocpany at Tobasco. He had pre-
terli p lc4iala,. fortheoovryne lghe cour0 toctheeew -
se duties a n d The new building is to include not the purpose of this line of testmony could not be set aside and that at-
excise tax on only the space formerly occupied by, was to show that the Continental Walter F. Brown tempts to prevail upon miners to quit
pt "in the inter- the bank but will include the Good- company was a "mere shell" organ- Of Toledo, who has been appointed work would continue "regardless of
d tax system." year Drug Store. It is to be essen- ized to carry through the business ar- as assistant secretary of commerce, is the picketing laws of Colorado."
Taxation. tially a three story building in heighth rangements with Humphreys and was I looked upon as a possible sqeretary of Girl Is Jailed
rely almost ex though the foundations will be so digbanded and its records destroyed commerce if Secretary Herbert Hoov- Another familiar figure in the;
on direct taxes constructed that at a later day it may after its purpose had been accomp- or runs for the presidency. strike, Amelia Fadlich, the "Little!
prepared to see be advanced to eight stories. Con- lished. Amazon," was behind the bars to-
ment supported struction is planned to start by De- Contracts read into the record SENiORS APPO JINT night. Always garbed in rel, the 19-
f of citizens but cember 1 and it is probable that the showed that in guaranteein g per- BALL COMMIT TEE year-old girl has been a conspicuous
se are the kinds building will be complete by the first formance of the Contiental agree iL're in leading picketing strikers.
be retained, of next May. ment to buy oil at $1.50 a bacr"z anc w - k
ynresll it to thc' praire Oil n Cia James Hughey, '28, was chosen the She "slight injured ast week
rgrmcon- Undoubtedly tihe oustanding featuzre onsn n hesn od iechimno h mmte o h hn h a nce own by an un- ;
reductions in the of the new bank is that it is to havel'"nhht neegr; dn y an n-The
applying to in- no cages in the main banking room. company at a mirimum of 1'$1. . Senior ball at the first meeting of the e in g ar The
ther increase in Instead all that will be between the clair, Steward, and James E. C'N.l committee held yesterday afternoon at ' r held on a warrant charging
wed individuals, customer and the cashier will be a ten- then president of the Prairie company, the Union. He was unanimously elect- smncketing.
have been the inch wire rail. And in the rail there made it possible for the Continental to ed by the committeemen present at posa
revenue legis- are to be no particular windows. In- take a profit of $8,000,000 from their the meeting, which was presided over awry when not a single mine operator
s any reduction stead t will be possible for the cus-- own company. The government con- i by Ellis Merry, '28, chairman of the appeared at a meeting in the State
planned by con- tomer to do business over practically tends that Sinclair shared Ii these Student council elections committee.
any point in the entire desk frontage, profits, and that part of them went to, Other members of the Senior ball the miners vith the consent of the
Albert B. Fall former Secretary of Icommitte governor. Invitations were addressed

AFTER [LAY OFTO
MONTHS IN ABER1DEEN-
IWAS APPOINTED BY PRESIDENT
LITTLE DURING RECENT
TRIP TO EUROPE ,
HEADS RhETORIC DIVISION
State Department Refused Admission
On Basis Of Not Holding Same
Position In England
Prof. P. M. Jack, newly appointed
head of the rhetoric department and
formerly professor of English at Ab-
erdeen university of Aberdeen, S'cot-
land,, arrived in Ann Arbor at 4 o'-
clock yesterday afternoon after a de-
lay of more than two months due to
the technicalities of the immigration
regulations. Professor Jack was ap-
pointed to his post here last summer
by President Clarence Cook Little,
while the President was abroad, and
was to have assumed his duties here
with the opening of school this fall.
When he applied for admission, how-
ever, technical difficulties arose due
to the ruling of the law that no one
can be allowed entry for the practice
of a profession unless he has been
engaged in the practice of that pro-
fession for at least two years previous
'to his, application for admission. Pro-
fessor ,JWkfailed to qualify for ad-
mission as a teacher under this regu-
lation because for a portion of the
last two years he was on leave of ab-
sence from Aberdeen university for
the purpose of continuing his studies
l at Cambridge university, England. Ac-
I cording to the technical ruling he lost
11i1~ stal'l, as a professor wen 711
tuiaee*t if1 i t .11<uh .ait{ dx :2t at ( "-
Ilit r dtd tat^1,I te atj t i b~reL sta
When notified of this difficulty, the
University authorities here tookup
7e case with the State deparment at
Washington, attempting to influence
the higher authorities to rescind the
ruling of the consul abroad. The ap-
peal availed nothing, however, since
in a communication to Dr. Frank Rob-
bins, assistant to the President, the
decision of the agent abroad was up-
held and the refusal to admit Pro-
fessor Jack was continued on the
grounds that he had not been engaged
i1 the teaching profession for a suf-
firient neriod before his application
for entry.
Further correspondence was carried
on by the office of the President he e
t ith2 authorities abroad, however, and
it was ascertained in a letter from C.
A. Chase, senior tutor of Trinity Gol-
lege, Cambridge university, that Pro-
fessor Jack was actually engaged in
instructing advanced studnts while
in attendance at Cambridge and work-
ing toward his own Ph. D. degree.
Other letters from faculty members
of both Cambridge and Aberdeen uni-
versities indicated that though study-
ing, Professor Jack was merely o
leave of absence from his teaching
work, and not actually resigned from
it. On the basis of this evidence, Dr.
Frank Robbins prepared to make a
trip to Washington, D. C., to inter-
view personally that higher officials in
the State department there, but be-
fore he had a chance to nake the trip
new information .caused him to aban-
don it.
This new information was to the ef-
fect that though Professor Jack could
not he admitted as 'a permanent resi-
dent, he could come as a visitor for
the period of a year, and as soon as
the information was received, Profes-
sor Jack sailed from England, on Oct,
21, and arived here yesterday.
To Seek Legal Residence

It is quite possible that an effort
will be made during his year of resi-
dence here, both by the University
authorities and by Professor Jack
himself, to secure an alteration of tho
ruling of the State department, though
for the present he is not a legal resi-
dent of the United States.
The previous correspondence with
the Stake department has all been
with Wilber Carr, acting secretary of
state at the time. Secreary Kellogg
has since returned to Washington and
taken charge of the department.
Professor Jack will have charge of
the work of the rhetoric department
here, and spent the remainder of the
day yesterday, after his arrival, in
meeting the various professors of the
rhetoric faculty. He was the guest of
Prof. Thomas Rankin, for 22 years a
member of .the faculty here and na-
tionally prominent rhetorician, at a

itation of the This will mean that the bank can
5,000,000, in the have any number of tellers working
$635,000,000 for side by side if business demands it.
nd a prospective Immediately in front of the rail, there
0 or this year, is to be a marble slab upon which
hat the basis for checks may be endorsed or signatures
be the surplus given. 13ehind the rail the cashier's
year 1929. This, money drawers will be located under
at $274,000,000. the continuation of this slab in such
itie Likely, a manner that they will be completely
ly admitted that out of sight of the depositor and yet
rs past the trea- accessible to the bank employees at
underestimated all times.
er realized" and Another' inovatioll being p~lamnned is

recognized that the argument may be il connection with a desk which will
li again that the estimateds irplus occtpy the center of the room. In the
.cr 1..)) is too low in view of the big I mlajority of banks, it is neess5ariy to
,1,, ilis of last year and this year. stand while filling out deposit slips or
"The answer' is," he sais, "that the viwriting checks but under the archi-
uhpuees in 1927 and this fiscal year tect's plans for the new downtown
crpinithe Inainclue to certain .re- bank a series of chairs will be avail-
aval ih caninot be available in able for the use of customers if theyl
,ince by that time they will have so desire.
Final details in the plans are now l
'inscfr as current revenue is being worked out by Frye and Kas-
,:rncal, it should be noted that the urin, Ann Arbor architects. Their1
e ury estimates that the same re- plans show that the new building will
'c t it will be avalible in 1929 as in offer at least a third larger floor space1
1, 'S and as were actually collected than did the old offering a 68-foot
1 927.y frontage on Main streets and 47 feet
"'hmere is no evidence available on Huron.
in jiitify the assumption that they
will be larger. There are certain BritishF shingBoats
d f (, indications that they may
h( eJ 1m:!Per. IDestroye'd By Storm
be e iis1 "Deliberate Policy."
Anticipating the demands which willt
be mld i'or' larger reductions on the (By Associated Press)
gronds that the estimates of the sur- LONDON, Oct. 31-Hope for be-1
pl' f1r 1929 are too low in view of tween 60 and 70 persons and a score
the fact, that past estimates have of small vessels believed to have been
always been low, the secretary denied lost in the storm which swept overl
that th underestimates in the past the British Isles over the week end,I
were the result of "deliberate inten- Ivirtually was given up tonight.
l iion w" policy. "Fifty or more men of the Irish fish-
\ ihie normal receipts and expendi- ing fleet have been given up as lost.-
'1 $ were calculated to be approxi- IA message to Lloyds marine register
mately the same for this year and says five of the crew of the Argentine
rexi, the difference between the esti- (ship Fortuna were drowned when the,
. ~1,.,~, ~c of'liAf0.000 nr m'this vessel sank off 'Arklow bnklivhfl-

1 1- Iuul L D. r a.~~~~~~~~~~~~~~~' .1 th tttiiatter had . ll~ltiUy t~1Cto all operators Saturday. ' +K.uc a. . Clem~. .. ._ __
the Interior, after the latter had ous class presidents are: Mary Louise t aorao turday. K. Cle-I country.
tune oertoSiclirth las t' Nuray '8,Adisn onor '8,W.ents, chairman of the general stirke ___
rn orto ncai t lese t urray, '28, AddonrConnor, '28, W. committee, addressing the miners, at- SELFRIDGE FIELD, Mich., Oct.
the Teapot Dome Naval oil re el've. T. B~arbour, '28, Robert Handloser, '28,takdhe"pilsicrs"and-
Tomis Gives Testioy Ceso s'tackedthe"capitalistic press" and de-AV31.-Col. Charles A. Lindbergh was
Former Senator Charles S. Thomas, I splored "the fact that the miners can- xpected to arrive here either today
Boceselager, 128E, H. L. Matheson, '28E, Iepce oarv eeete oa
iof Colorado, testified today that ion Cox, '2L, Willmarth Pain, not buy off a newspaper to present or tomorrow from Mitchell Field, N.
Dawes, whose company held a fourth 8o, C. E. Sylvester, '28P, G. D. Car- their case fully. He insisted that Y., to be the guest of Maj. Thomas G.
interest in the Humphrey concern, was IC.e er,2' anG Ds r- the miners would continue the strike L'anphier, commandant at Selfridge
present when the Continental contract iche, auntil they were granted the Jackson-~{ Field, and members of the First Pur-
1was drawn up in the Vanderbilt hotel comb, '28 B. Ad. No action was taken ville scale setting $7.75 a day as the suit Group. Ccl. Lindbergh anI Maj.
. , ~~ ~~~~ ~regarding the date of the party i utGop.Cl iderhadMj
in New York City. Young Humphreys ]thugh this will e set at the next basic wage. Ianphier are to fly here in two pur-
was in New York with his father whelh suit planes. Col. Lindbergh will leave
the conference for the sale of the oil meIg i the committec. TO DAILY SUBSCRIBERS I later for Oscoda, where the Selfridge
began.,Ii--I fliers are holding maneuvers.
Phillips, who heads the Sinclair FRESHMAN GROUPS All subscribers to The Daily I ----
Purchasing company, was the pIinci-TO HOLD MEETING Iwho have not yet paid their sub- VICTIMS' BODIES
pal witness today. He was able to scriptions are asked to do so at
give some details about the purchase aymondBaer, , , and Addison the Daily office in the Press TAKEN FROM MINE
by his company of the Continental Connor, '2<, will speak tonight to the building on Maynard street any f-
contract, but he remembered so littlei f'eshieni at their regular group meet.. afternoon this week from 1 to 5 11 (By Associated Press)
as to other, that the combied efortsaid to~ Le held at 7:15 at the Union. o'clock or mail in a check. The HOUGHTON, Oct. 31-The body of
Sof Roberts and Justice Siddons failed William Mazer, '2 , of the intramural subscription rate will be advan- Ernest Schilling was removed from
to refresh his recollections. department, will also speak to the , ced to $4.25 for all unpaid sub- ;the Quincy mine late today making
During the cross, examinatio n, Mar-freshmen concerning the work of the I scriptions after Nov. 15. (,the fourth since a fall of rock buried
tin W. Littleton, for Sinclair, made itIdepartment.s nL
appear in the record who were the --second recovered today. The three
directorscompa n Sincla CRobudeuir- 1ack, New Head Of Rhetoric Department, others are still under the rocks.
d dtwjThe hand of one of the victims was
dthe eigtderedStanawdOi men," .AversPleasure At Beauty Of Ann Arbor clasping Schilling's boot so tightly,
and which "Sinclair men." that it was necessary to cut away
Phillips Cross-Examined "I am very much taken with the i seems to him to be very fine, some of his boot to free his body. It
Phillips said he did not know from beauty of your town," Prof. P. M. JackI "Your traditions may not be as time- s thought the man who clutched the
that designation, but Roberts said: new head of the rhetoric department, honored as those of the English uni- boot is the one who called to rescuers
"Ohyesyouknowwhowerenamd I tatd , jc las "I I vrsiuni- , soon after the cave-in.
"Oh, yes, you know who were named stated last night in an interview. "It versities," Professor Jack stated, "but Six wives and 24 children were left
by the Standard company and who is a charmingly pretty place, and very you have one custom that interests me xdesolate by the crash hich was cans-
were named by the Sinclair Consoli- very beautiful. I am sure I shall like a great deal-and that is the practice
dated company." j it a great deal," he said. of living in fraternities. In England ed by an air blast in the copper mine.
Phillips then recalled which were Professor Jack added that the Uni- such organizations are very rare, andI
which and gave their names to the versitv of Michigan is well known j on the face of it the idea seems ex- MINISTERS MAY O INTO
jury. abroad, and has a very good reputa- cellent to me."
L ittleto n also u n d erto ok to estab ' tio n . "E ven w h ere people h ad n o t P ro fesso r Jack said th at he w o uld 'lyiati hb toerno eEhA TEe
1ish by Phillips that when the Sinclair hiear'd about Ann Arbor they remarked announce no new plans for the rhet-
company and Prairie company bought about the pretty name of the town," oric department here until he became (By Associated Press.)
the Continental contract the Hum- he said. He also cited the case of thoroughly familiar with the work. CHICAGO, Oct. 31-Entrance of a
phrey fields in Texas were "failing the examining physician at the port of The British universities with which new element-the Chicago Union of
rapidly," with many of the wells go- enbarkation, who, when he learned he has been connected have never!Ministers-into the school controversy
ing to water. Phillips said that in that Professor Jack was coming to clearly isolated the study of rhetoric brought on by Mayor William Hale
'May, 1923, when the contract was pur- Ann Arbor, took him aside and re- as it is separated from other courses Thompson's charges of pro-British in-
I l Atnrroi~ ~ np h on .,.r ,.,, ..r ,; ,,,,n ,~ nn~.,1.a4T17,_, 1- lec a oeattdv

I

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