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March 15, 1933 - Image 1

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The Michigan Daily, 1933-03-15

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The Weather
Snow flurries and colder
Wednesday; Thursday general-
ly fair; rising temperatures.

L

it Igzz

ttu

Editorials
Art Education And The Dra-
matic Festival; Prohibition, The
(ordian Knot.

VOL. XLI No. 119 - ANN ARBOR, MICHIGAN, WEDNESDAY, MARCII 15, 1933

PRICE FIVE CENTS

ALL
Unvsi

L

ty

Issues

Rest Of February
Pay Checks Today

$300,000 Received By
Business Offices From
Lansing Authorities To
Cover Unpaid Pay Rolls
Hope To Pay March
Salaries As Usual
M oney Is On Deposit In
Ann Arbor; Checks Have
Been Drawn Up; Is A
Surprise To Employees
The second half of the University's
February pay roll, amounting to
about $300,000, will be paid today,
Shirley W. Smith, vice-president and
secretary of the University, an-
nounced last night.
Cash to cover the 3,500 pay checks
was received from Lansing authori-
ties late yesterday afternoon. The
procuring of the money was the suc-
cessful climax to two weeks endeavor
on the part of state authorities. The
Business Office had been in regular
communication with oyicers at the
capitol but yesterday's announce-
ment came as a complete surprise to
employees.
With the resumption of normal
banking activity expe'bted in most of
the state bahks in the near future,
it is, hoped that the March pay' roll
will be met as usual.
Trhe noney which was received late
In the afternoon yesterday was im-
mediately deposited in trust funds
upon which no restrictions can be
placed. The pay checks have been
drawn up in the Business Office dur-
hiig the past week so that they will
be available to be issued today.,
With the payment of the second
half of the pay roll the total amount
of virtual cash liberated inĀ° this com-
munity since the banking holiday by
the University totals well over $0,-
000,
.W. Harriman
Is Arrested By
Federal Agfens
New York Banker Held I
For Illegal Entris Of1
]lank Stock Purchases
NEW YORK, March 14.-Q)-
Joseph W. Harriman, former presi-
dent and now chairman of the board
of directors of the Harriman National
Bank and Trust Co., was arrested at
his Manhattan home late today, and
an hour later U. S. Attorney George
Z. Medalie stated the misuse of $1,-
393,000 in connection with bank stock
purchases by Harriman was indicated
by evidence in the hands of Federal
investigators.
Harriman, who has been in the
banking business for 50 of his 66
years, was charged in the federal)
warrant with having caused false en-
tries to be made in the books of the
bank with intent to deceive the
comptroller of the currency and his
agents.
The Harriman National Bank and
Trust Co. is a member of the New
York Clearing House Association and
its latest clearing house statement
showed capital of $2,000,000; surplus'
and undivided profits of $941,000; net
demand deposits $19,577,000, and
time deposits of $5,102 000.
Harriman, the son of John Neilson
Harriman and Elizabeth Grainger
Harriman, became a clerk in the U.S.
National Bank of New York City in
1883, the same year he was graduated
from Charlier's French Institute.

Lecture On Marriage To
Be Given By Cummings

Plays Here Tonight

Beer Bill Is
Approved By
LoJ6wei' House
Is Sent To Senate With
316-97 Supporting Vote
By Representatives
Expect Senate To,
Take Quick Action
Enthusiasm Runs High As
Party Lines Break After
Short Debate
WASHINGTON, March 14.-(IP)-
President Roosevelt's third majorl
proposal of the special session-theI
Cullen 3.2 per cent beer bill-wasj
rushed through an enthusiastic
House today to the Senate, where
Democratic leaders confidently pre-
dicted speedy approval.
Uproarious during three hours of
debate in which minority prohibi-
tionists hammered vainly against the
Administration's revenue legislaton,
the House overwhelmingly passed the
bill 316 to 97.
Party lines were shattered. Fifty-
eight Democrats and 39 Republicans,
including Reps. Arthur H. Green-
Dean Henry M. Bates, of the
Law School, said yesterday that
there is no 'rule of thumb' by
which the constitutionality of
the proposed beer bill can be
tested. According to Dean Bates
the meaning of the word 'intoxi-
cating' in the eighteenth amend-/
ment is too vague to permit def-
inite interpretation. Whether or
not the alcoholic content in the
beer which the proposed bill
would authorize is permissable
under the eighteenth amend-
ment can only be decided by the
Supreme Court of the United
States, he said.

After Federal Check
Stock Exchanges
Resume Business
Dollar Remains Strong In'
Foreign Markets While
Confidence Increases
(By The Associated Press)
American trade and commerce
showed marked improvement yester-
day, stimulated by_ the new flood of
currency and confidence now flowing
through hundreds of banks in every
Federal Reserve district.
Approximately 1,500 banks had
been opened Tuesday under thef
Roosevelt program for resuscitating
the nation's finances from morato-
rium.
Today the revival broadened, ex-
tending from the Federal Reserve
and the clearing house cities to hun-
dreds of municipalities in every
state. A successful climax was reach-
ed in the week's mammoth project
of re-opening progressively the solid,
substantial banks. .I
Security and commodity exchangesI
fell in line, resuming operations
they were forced to suspend when
bank closings stopped the. flow of
credit through check clearances.
The major stock exchanges at New
York and Chicago announced that
.share trading, would be reneed this
morning. Chicago's board of trade
and mercantile exchange, pace-set-
ters for commodity selling, will start
up the board Thursday and the ex-
change today. Elsewhere, other trad-
ing centers followed the example of
the metropolises.
The strength of the dollar was gen-
orally maintained Tuesday in foreign

a.1
IGNACE JAN PADEREWSKI
Paderewski To
Play Toniffht On
Choral Pro oram

RIeopenig
Banks Is r
Life To Tr
About 1,500 Fii
Hourses Operating

A opin Music To
Featured Ly Pianist
Sixth Concert - here

Be
fInl

TOA OPE N TO~ 'A
Of UnlimitedBusiness Granted
".e By Federal Reserve Heads;
n ci', Restriction On Gold Is Kept
Again

Move To Stop
Arms Supply Of
Nations At War
Great Powers Consider
Munitions Embargo To
Enforce Peace Pact
WASHINGTON, March 14.-(A")
The great nations of the world with
the United States in the forefront{
were moving tonight toward concert-
ed action to put peace into the Pact
of Paris by agreeing to den'y the im-
plements of war to nations violating
its solemn pledge against the use of
force in settling international dis-
putes.
This broad and significant plan,
with its direct bearing upon the peace'
of the world, was disclosed as 'the
SRoosevelt administration determined
to ask the present session of Congress
to grant the President authority to
forbid the shipment of arms or mu-
nitions to any nation on the globe.
At the same time it was learned
that Great Britain, France, and other
influential members of the family
of nations have sounded out the
American government on its attitude
toward usinn governmental control
of the shipment of arms as a meansl
of enforcing the Pact of Paris.
The attitude of the United States
toward not only participating but
also taking a leading part in such a
move is best summed up in asstate-
ment by Franklin D. Roosevelt short-
ly before lie became President inI
which lie said:
"I have lon been in favor of the
w~ eof ilo.arms to belliger-
lf nations, espicdaly to naiiolt;
vhich t guilty of king alu an t-
t:. ! 01 othier inaIAiis thati.;,1,
;aga:ist. aggessor nations.'
wVyei' To (h-1lli-e.
PMan 1Refore S.C.I A
Striving to find a satisfactory solu-I
tion to our economic and social ills,
Samuel S. Wyer will outline his lans
for the remedy at the S. C. A. forum
at 4:15 p. m. Thursday in Room 1025
Angell Hall in a speech entitled "A
Way Out of Our Present Situation."
Mr. Wyer is consulting engineer
on fuel, power, and transportation
at the Educational Foundation in
Columbus, Ohio, but has had prac-
tical experience in working with la-
bor under modern conditions.
According to sponsors of the for-
um, he will offer a constructive solu-
tion rather than attempt to merely
pick apart our present system. His
plan, composed of 25 points, is de-

Hopwood Winners Must
Wait For Their Money
Life is not a path of roses even
for the winners of Hopwood
Awards in the freshman writing
contest. After working for several
months on their manuscripts,
they have been informed they will
not receive prize money until the
University has met other more
pressing obligations.
They had been asked to get in
touch with the English office, and
naturally thought they were set
to collect the money due them as
advertised.
Now the University is waiting
until its bank balances can be
cleared before the writers of the
winning pieces of poetry, prose
fiction, and essay, will receive
their prizes, which total $300.
Council To Vote
On Compromise
R e organization
Seniors To Retain Offices
Under New Plan; Take
Action Tonight
An attempt will be made at the
Student Council meeting at 7:30 p.
m. today to put through the reorgan-
ization program which failed to get
sufficient support at the last meet-
ing.
lRepresentatives from both fac-
tions met a few days ago and agreed
upon a compromise plan which con-
tains the general principles of tlhw
defeated imend men s. One major
Change is tlt tthe present Senior
miembers Yeaiit lheir POIitiOn OiH tht
tlt(,Iunil bu1t tlhtir Vacancis will not
1e illc 'lThis amnudment to ihe o-
iin al p0wposal was s ig gest cd by Ed
if TP. T'r e, ':33, presideut. of the
I nIerfraternity Council, who would
a"""ll"" ""tic"aly beo a nember of
' 11w new (:'OtiIcil.
"It is the only fair thing to do,"
said Turner at the informal meet-
ing held to iron out difficulties in the
old plan. "Thse men ie helping to
put the plan through and it is only
just that they take part in orgaaniz-
ing the new group."
Although there are still a few
councilmen opposed to the plan as it
now stands, there is a sufficient mar-
gin in favor to gain a two-thirds
majority for the measure which is
necessary to pass it, it was stated by
several councilmen last night.
Some of those who opposed the
plan at the last meeting said that
they did so on the grounds that suf-
ficient time had not been given to
discuss the details of it. They claim
that they will support the plan when
it is brought up tonight.

Ignace Jan Paderewski, Polish I
pianist and statesman, will end this
season's Choral Union Concert Ser-
ies in an all-Chopin program at 8:15
p. m. today in Hill Auditorium, ex-
actly 41 years and one month after
his first performance here.
Well-known to Ann Arbor audi-
ences, the eminent musician has ap-
peared here previously in filve con-
'erts; in 1892, 1914, 1916, 1923, and
1931. Records indicate that his ap-
pea'rance has invariably resultetl ii
a packed house.
Prominently mentioned for the
hresidency of Poland, Paderewski has
devoted a great share of the receipts
from his concerts toward further-
ing the cause of his own nation. His
work in Polish politics has been of
such a nature as to distinguish him
in that, field, entirely apart from his
importance in music.
The pianist was once a close friend,
of the late Dr. A. E. Stanley, former
musical director of the University.
His program, entirely composed of{
Chopin numbers, follows: Fantasia,
Op. 49; Two Nocturnes, Op. 27; Four
Preludes, Nos. 17, 16, 21, 24; Sonata i
B Flat Minor, Op. 35; Ballade F.
Minor, Opus 52;, Three Etudes, Nos.
6, 8, 12, Op. 25; Scherzo C Sharpj
Minor, Op. 39; Polbnaise E. Flat
Minor, Op. 26; Two Mazurkas, B Flat
Minor, Op. 24, D Major, Op. 33;
Grande Valse Brillante, Op. 18.
Academy Drops
In Favor Of Sec
Sectional exhibits will probably re-
place a single general exhibitagain
this year at the annual meeting of
the Michigan Academy of Science,
Arts and Letters, according to Prof.
L. J. Young, of the forestry school,'
secretary of the Academy. The single
exhibit, formerly held in the Mu-
seums Building was abandoned to a
large degree last year.
Members or sections arranging ex-
hibits are encouraged to make ar-
rangements for space in the Mu-
seums if they desire, Professor Young
said, but sections are generally
adopting the policy of holding ex-
hibits in their own quarters because
of the greater convenience. The an-
nual reception, scheduled for Thurs-
day evening in the Museums Build-

wood, of Indiana, Democratic whip, exchanges, a symbol of world confi-
and Bertrand Snell, of New York, dence in American strength and
Republican leader, voted in opposi- uI 1d5ess.
Lion.
Wildly supporting the measure !lkirteen Dc le oil anks
that is expect 'd to bring in from
$125,000,000 to $1,0,000,000 annually Open tjllde re Usri t ions
in revenue, 238 Democrats, 73 Re-
publicans and 5 Farmer-Laborites DETROIT, March 14.-/-(Ill -Michi-
shoved the measure through with ap- an, veteran in the ranks of bank-
plause and cheers. The last House, n restitons, looked into clearing
on Dec. 21, p the ,financial skies tonight as Federal and
1o0 state governments combined to open
13 banks, lifting restrictions imposed
Action camc within less than 3 to a month ago on it.he sitate':; financial
hours alter President Roosevelt yea- iistitutions.
terday sent an unexpected message In the first re-openings since Gov.
to Congress eskin for i ediate William A. Comstock's famous holi-
passage for revenue pdposes and to ciay proclamation of Feb. 14, the
fulfilte paty'stpledgettohoifytreasury department gave the "go"
the Volstead Act to permit the man- sign today to seven banks, mem-
ufacture and sale of beer. bers of the Federal reserve, while thej
Shortly after the measure was re- governor authorized re-opening of six
ceived in the Senate, Chairman Pat state banks, not reserve members. All,
Harrison had it referred to the Fi- it was stipulated, are to operate un-
nance Committee. and called that der restrictions, and some planned
group into executive session tomor- to continue limitations of withdraw-
row with a view to reporting it for als, although planning "virtually nor-
action as soon as the President's mal" commercial business. Other re-
economy proposals have been ap- openings are expected to follow.
proved. In Detroit, where Governor Com-
- stock proclaimed his holiday after
-s o k p ol i e hi hoi a afe'I W1 -1 declaring an unsound condition pre-
Genera ExI11)iit vailed in the Union Guardian Trust
- Co., the government had full charge

Permission For Opening Is
Received At Midnight;
lankers Here Notified
By Late Telegrams
Ann Arbor Banks
Are Proved Sound
Comstock Decree Is Now
Inoperative; Fraternities
And City Payrolls Safe;
Crisis Had Been Near
The banking holiday will end for
Ann Arbor this morning when all
four of the city's banks open for un-
limited business. Permission to open
was received by the presidents of the
four institutions from Federal Re-
serve officials at Chicago shortly be-
fore midnight last night.
No restrictions except those affect-
ing the removal and transfer of gold
and those under which banks nr-
mally operate remain; against the
local institutions since the Federal
decree. The information was first re-
ceived in telegrams to C. John Walz,
president of the State Savings Bank,
and William Walz, president of the
Ann Arbor Savings Bank. Later, sim-
ilar communications were received by
Fred Stowe, president of the Farm-
ers' and Mechanics' Bank, afld Rob-
ert Gauss, president of the First Na-
tional Bank, and Trust co.
Comstock Holiday
Thus the critical situation which
one month of partially-closed banks
had foisted upon the community
since the original decree on, Feb. 13
by Governor William A. Comstock
was, by one stroke, brought to a con-
clusion. The city's payroll, the exist-
ence of the fraternities, and practi-
cally all of the business operations of
the city were seriously threatened
had the holiday continued for a
much longer period.
Local bankers waited anxiously
throughout the day and last night
for the license to open. The permis-
sion had been expected by yesterday
morning under the Roosevelt edict
which declared that the banks in
cities having a clearing house would
be permitted to open on Tuesday.
The slowness of the machinery how-
ever delayed the permission here.
The receipt of the licenses here last
night testified to the soundness of
the Ann Arbor banks as only seven
banks in the state had received the
necessary permission yesterday, C.
John Walz said earlier in the evening
that the opening of the banks would
probably mean that local citizei
would be sure of getting 100 per cent
on their deposits, although not at
one time, since no bank could at
anytime guarantee such an imme-
diate withdrawal.
Payrolls Can Be Met
-The end of the bank holiday will
mean that employees of the city and
of the various business establish-
ments will be able to meet their pay-
rolls completely. Employees were, in
mostinstances, paid on a partial
basis during the holiday when only
five per cent withdrawals on old
deposits were allowed. The city coun-
cil had voted a transfer of funds
from thedwater department to meet
payrolls due today. This transfer will
be made unnecessary by the opening
of the banks, since the city now has
access to its deposits.
C. John Walz, president of the
Ann Arbor Clearing House Associa-
tion, commended The Daily for its
coverage of the banking holiday here
and thanked the paper in the name
of the association.
'ERA OF FEAR' ENDED
WASHINGTON, March 14.-(P)-
Cheered by return of gold and de-

posits to the re-opened banks, the
administration tonight declared the
"era of fear" ended and proceeded
with plans to extend the resuimntinn

i
i

signed to unite labor and capital into
an effective combination, it was said.

tional Displavs
said. Considerable work has been
done through the co-operation of the
Univerysity, Michigan State College,
and the State Department of Con-
servation.
Michigan's constitutions, past,I
present and future, are to be the
topic of discussion of the history
and political science section which
will hold its meetings Saturday. 1
The morning session will consist
of papers dealing wtih Michigan's
three constitutions and will take place
in Room 1025 Angell Hall. Harold
M. Dorr, of the political science de-
partment will discuss the constitu-
tion of 1835; Claude S. Larzelere,
professor of history at Central State
Teachers College, will talk on the
constitution of 1850; and Prof. D. C.
I hillino- head af the nnlitican sceinne

of the two largest banks, the First
National Bank of Detroit and the
Guardian National Bank of Com-
merce. They were closed today, with
a government seal on the doors, while
B. C. Schram and Paul C. Keyes,
named conservators by the govern-
ment, studied the needs of the sit-
uation.
'Hay Fever' Matinee
To Be Given Today
Play Production's presentation of
"Hay Fever" by Noel Coward opened
last night before an enthusiastic au-
dience in the Laboratory Theatre.
A special matinee of the play will
be held this afternoon, Valentine B.
Windt, director of Play Production
said, as no showing of the play is
being given tonight. The price of
1 +; -+! +h h m - i no s 17i - II

Watkins Hopes For Liberality
In Determining Bank Soundness

Hope that liberality will be exer-
cised by the authorities at Wash-
ington in judging which banks are
sound was expressed by Prof. Leon-
ard L. Watkins of the economics de-
partment in 'an interview yesterday.
It was further pointed out that
the opening of banks without restric-
tion approximates in fact, if not in
name, a guarantee of bank deposits.
"The new banking act," said Pro-
I fessor Watkins, "confers powers of
the widest latitude upon the author-
ities at Washington. The restoration
of normal banking operations and
the avoidance of severe deflation of
bank credit depends upon the ad-
ministration of the act The Wnshinv-

reorganize the banks on a basis de-
termined by the percentage of sound
assets. It is expected that the exces-
sive losses commonly incurred by d1e-
positors when hurried liquidation is
made by receivers can be avoided
through such reorganizations.
"In view of the demoralized busi-
ness situation," Professor Watkins
continued, "it is extremely difficult
to evaluate bank assets at the pres-
ent time. Considerable discretionary
power must be exercised in apprais-
ing the assets of banks and in judg-
ing which banks are sound. I hope
that the decision will lean in the di-
rection of liberality so that the great
majority of our banks may reopen

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