Weather
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Mostly cloudy, few snow flur-
ries Wednesday; not much
change in temperature.
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Editorials
Thinkers Change; Tailor
Mades COmform; Beer May
Act As A Repal Educator.
VOL. XLIII No. 125
ANN ARBOR, MICHIGAN, WEDNESDAY, MARCH 22, 1933
PRICE FIVE CEN
Government
Helps Set Up
Detroit Bank
Featured In Premiere Of J. C. P. Tonight
I
General
HaLd Of
tap i hal
Motors Raises
25 Million Total
For Institution
R.F. C.Stand
Called Serious
By Comstock;
Governor Says T hreat To
Advance No More Funds
Is 'Unjustifiable'
20,000 Families To
Be Affected By Act
FR. F. C. Representative Has
No Suggestions To Make;
Problem Up To State
LANSING, March 21.-UP)-A sit-
uation "of extreme seriousness" was
becomes First Bank
Under Recent Law
Pr6ospective Release Of
Qther Banks' Reserves
Causes Optimism
WASHINGTON, March 21.-(A)-
Witll the Government matching dol-
lar for dollar with the General
Motors Corp. to raise $25,000,000 as
capital, there was created today the
National Bank of Detroit, a new in-
stitution to provide adequate banking
facilities for the Michigan city.
The new bank, the first formed
under President Roosevelt's Emer-
gency Bank Law, will take over part
of the assets of the First National
Bank-Detroit and the Guardian Na-
tional Bank of Commerce, assuming
also part of the deposits of both. The
remaining assets of the old banks
will be liquidated for the depositors
by the Comptroller of the Currency.
Announcement of the formation of
the bank was made in a joint state-
ment by Jesse H. Jones, a director
for t h e Reconstruction Finance
Corp., and Alfred P. Sloan, Jr., presi-
dent of General Motors. They said
the corporation had underwritten
$12,500,000 of the common stock of
the bank and had paid for it in cash
while the R. F. C. had subscribed for I
$12,500,000 of the preferred stock.
The news of the formation, the
most optirnistic for the city since
the declaration of a state-wide holi-
day by Gov. William A. Comstock
on Feb. 14, also drought optimism
to many out-state institutions, Re-
serves of several out-state banks
have been impounded in the Detroit
institutions sinpe the banking holi-
day.. Their release, officials said,
would lend, further impetus to trade
in Michigan.
The announcement from Washing-
ton that the R. '.C. and the General
Motors Corp.' had agreed to subscribe
the $25,000,00Q capitalization for the
banks, had been expected for several
days, following the beginning of ne-.
gotiatlons in Washington last week.
Large stockholders of the two local
banks had been in Washington since
last Saturday, in lengthy conference.
T nsianPl ans
Blue And Gold
over Design
Art Motif Of '33 Book Is
Announced; Will Begin
Cainpus Sale Today
The cover of the 1933 Michiganen-
sian will be done in blue and gold
imitation leather of two grains, one
plain and the other morocco, John A.
Carstens, '33, business manager an-
nounced yesterday.
The art work in the yearbook will
be modeled after the designs of John
LaGatta in a rich blue and black
motif, he said. Another innovation in
this year's book will be having pairs
of opposite pages in the art section
co-ordinate with the exterior photo-
graph of a building on one page and
an interior view on the page facing.
A campus sale of the book will be
held today and tomorrow, Carstens
said, and after Saturday the 50 cent
stubs will no longer be worth $1 to-
ward the purchase of a book. They
will then be redeemable for their
purchase price.
By a new installment buying plan
recently adopted by the business staff
of the publication it is now possible
to pay $1.50 down now, $1.50 in April
and the remaining $1.50 in May. The
price of the book for those who do
not accept this offer will go up to
$5.00 after the present sale.
New Members Initiated
Into Beta Gamma Sigma
Three new members were recently
initaiated into Beta Gamma Sigma,
national honor society of the School
of Business Administration.
The new initiates are Richard U.
Grace Mayer, left, Elizabeth Gr
right, who will be cast as Mazie,
"Love on the Run," the 1933 Juni
Lydia Mendelssohn Theatre.
French House
To Debate War
Debt Payments
Resolution Expected
Develop Stiff Fight
Committee Meeting
To
In
foreseen by Gov. Comstock today un-
less the Reconstruction Finance
Corp. recedes from what he claimed
was an unjustified position.
G. C. Dillman, state highway com-
missioner, told the governor and the
administrative board that if the
R.F.C. carries out its threat to ad-
vance no more funds to Michiganj
after this month 20,000 families sup-
ported by part-time highway work
- -Photo by Dey will be thrown back upon the com-
iffith, center, and Josephine Talbot munities. Roland Haynes, field rep-
Grump, and Tillie, respectively, in resentative of the R.F.C. attended the
or Girls' Platy, opening tonight in meeting, but said the problem is one
for the state to settle. He declared
he had no policy to recommend.
Haynes stated, all directors of the
240 T-Bones t-And Not R.F.C. concurred in a telegram sent
Monday denying Michigan further
Einough To Go Around aid unless adequate state and local
There were 240 T-bone steaks_ participation is provided.
and not enough to go around. F. K. Young, assistant attorney
Approximately 240 students ate at general, suggested to the board that
if sinking funds being built up in
the Michigan Co-operative Boarding communities to repay R.F.C. ad-
House last night. Although this was vances were released the corporation
a record crowd, more than 200 peo- might be satisfied. The governor di-
ple have been patronizing the Co- Irected the board finance committee
operative during the past week, Sher to investigate the extent to which
Quraishi, Grad., manager of the eat- comunities are raising funds for wes
ing'place, declared, fare work and to recommend pos-
Theecare d. s teC 1sible legislative appropriations. The
There are 170 members of the Co- governor said there is no money in,
operative Boarding House who buy the state general fund and the only
weekly meal tickets, Quraishi de- place from which funds could be di-
clared. The rest of the diners pay verted for welfare work is the high-
flor each meal. way fund. He said such a diversion
would merely take "work relief" away
1nfrom those now being supported by
Sem it ibiOdS 1the highlway program.
Bee r I BOe CONSERVATOR RESIGNS
DETROIT, March 21.-Paul C.
Keyes announced that he had re-
signed as conservator for the First
National Bank at noon Tuesday. The
news came as a surprise to his asso-
Denies Pernission For ciates, who had come to Detroit
Garners Signature; No shortly after the banking holiday
was proclaimed.
Beer Before April 7 Mr. Keyes declined to amplify the
brief announcement of his retite-
WASHINGTON, March 21.-(/)- mcnt, but said that he would remain
Groomed by Congress for the statute in Detroit possibly for several days.
gooks, the beer bill was ready to-
night for delivery to the White
House,, except for a technicality that (,, eeHCnflPn t f1* Plan.
will block its enactment until tomor-
row and delay flow of the beverage Will BE ' ompletel
until April 7-the lack of a signature
from Vice President Garner. F
Final plans for putting into effect 1
PARIS, March- 21.-(AP)-A stiff
fight is expected to develop at to-
morrow's meeting of the foreign af-
fairs committee of the Chamber of1
Deputies, which will take up a reso-
lution urging payment of the $19,-
000,000 war debt'interest which was
due the United States last December.
Deputies opposed to the resolution,
who are waging a vigorous fight
against it, assert that it would be
mistaken to take any action before
the attitude of President Roosevelt
toward debt revision is more definite-
ly known.
Edouard Herriot, whose govern-
ment fell because he insisted the Do-
cember payment should be made, and
who is leading the movement for
payment now, set forth his argu-,
ments before a group of Radical So-
cialist Deputies, He supported his
contentions by letters from New York
describing "the deplorable .effect" of,
the Chamber's refusal to pay on the
due date.I
At the same time Leon Blum, So-
Valist leader, told his party group
that they should continue to vote
againsthpayment until the govern-
. lent has been assured that Presi-
dent Roosevelt's attitude fulfills the
Chamber's condition that a general
conference of creditors and debtors
must be held.
University -Men
Confer On Tax
Bill At Lansingo
LANSING, March 21.-Two taxa-
ation experts from the University of
Michigan, Prof. E. Blythe Stason of
the Law School and Prof. Harcourt
L. Caverly of the economics depart-
ment,twere here tonighttto discuss
with the Senate Committee on Fi-
nance and Taxation an amendment
to the billuproviding for apportion-
ment of funds available under the
15-mill amendment to the state con-
stitution which was ratified in No-,
vember. Prof. Thomas H. Reed of
the University political science de-
partment, a colleague of Professors
Stason and Caverly, will not be pres-
ent.
Student Suspended For
Breaking Into Sorority
Hanson Kellogg, '34, of Boston,
Mass., has been indefinitely suspend-
ed from the University by action ofj
Reed Attacks
Staie I5-Mil
Taxation Law
Calls Michigan Income Cut
A 'heedless' Act In Talk
Over National Network
Declares Sales Tax
Is Only Alternative
Government Itself Will Be
Destroyed If New Funds
Are Not Found, He Says
Michigan's "heedlessness" in re-
ducing the general property tax from
3.5 per cent to 1.5 per cent and
thereby cutting the state's income
$100,000,000 was deplored last night
by Prof. Thomas H. Reed of the po-
litical science department in "Taxa-
tion Reform," a discussion broadcast
throughout the nation over the Blue
Network of the National Broadcast-
ing Company.'
"This procedure will destroy gov-
ernment itself unless some new
source of revenue is provided," Pro-1
fessor Reed said. "The Constitutional
amendment which accomplished this
slash was so framed as to make an
income tax almost certainly uncon-
stitutional. The only alternative,
then, is a sales tax-and I favor such
a tax for Michigan."
The speaker pointed out that a
sales tax is easily administered and
productive, although it is somewhat
harder on the poor than the rich.
While it may prove cumbersome to
the manufacturers and wholesalers
of the state where it is used, and may
injure one merchant and not an-
other, it can, over a limited time,
prevent economic disaster and keep
government afloat, Professor Reed
added.
The desperate plight of local gov-
ernment systems forced to rely on
a general real estate tax for their
revenue was also discussed by Pro-
fessor Reed.
"Something must be done to find
another revenue source for local
government," Professor Reed de-
clared. "The national government,
and to a lesser extent the state, can1
choose other taxation means, but the
local units can levy only the taxes
the state permits. A temporary sales
tax may be the solution."
Speaking with Professor Reed were
Seabury C. Mastick, budget director
of New York State, and Mark Graves,
New York State Senator.,
Contyress Gets
Busy On11 er
JO S Prot rar
Work For 250,000 Men Is
Provided In Roosevelt
Employment Bill
WASHINGTON, March 21.-(')-
Congress turned to work tonight on
a broad employment and relief pro-
gram, submitted by President Roose-
velt for the marshalling of imme-
diate jobs for about 250,000 men in
the Nation's forests.4
A bill authorizing the Government
to enlist the idle in the cities anda
put them to work in a thousand
camps of approximately 200 men
each was promptly introduced in the
Senate as the fifth of the Roosevelt1
emergency recommendations was re-I
ceived on Capitol Hill.'
The President informed Congress
that he would submit later his ideas
for grants to States for relief work
and for a broad public works labor-
creating program.
To get the funds for his proposed
Civilian Conservation Corps., Mr.
Roosevelt looked tonight to Director
of the Budget Lewis Douglas, who is
preparing the plan to carve out more
than $400,000,000 in savings from
Governntent salaries and veterans'
compensations which was authorized
in the Economy Act. An early report
on this is in prospect.
Members of the Conservation
Corps., who will be selected from the
centers of unemployment, are to be
paid $30 a month with food and
housing. Allotments are to be set
aside for the families of married
men.
nnI7WKTm' ma V V V' nYTT'V
11
1)Jisciu s 7s Tax Ref ormn
r
f4
PROF. THOMAS H. REED
ourt Upholds"
Constitutionality
Of Repeal Plan!
17
11
Names Of Candidates
Repeal Convention
Be Placed On Ballot
' it
For
To
LANSING, March 21.-(/P)-Ef-
forts of Michigan dry leaders to keep
the issue of federal prohibition re-
peal off the spring election ballot
ended in the supreme court today.
In a brief order, the court denied
a petition for a writ of mandamus
to restrain the secretary of state.
from certifying on the April 3 ballots
the names of candidates for dele-
gates to a ratification convention
called for April 10. The court also
upheld the constitutionality of the
Heidkamp Act providing the machin-
ery for the convention.
Although the eurt conceded the
Keidkamp statute is "technically ir-
regular in some particulars," it
denied it was subject to "the general
objection urged against it," by dry
leaders in their petition.
.+ (Vs s eD nsss
B, linoSi IuaItoi
The history of the banking prob-
len which led up to the present sit-
uation was sketched by Charles
Rogers, '34, president of Alpha Nu,
as an opening of their meeting last
night. He explained that the bank
failures between 1920 and 1929 were
those of small country institutions
whose main foundations were one
line of farm products. The reasons
for the failures which increased after
1929, he said, were the generosity of
states in granting charters to un-
sound banking policies, the failure
of sound banks because of deprecia-
tion in value of securities, and last,
panic and hoarding, he said.
CalterWOOfd Calls
Polish War Near
That the relations in the Polish
Corridor situation have become so
dangerous that war might easily be
precipitated by some incident such
as the injuring of a Pole by the Ger-
mans or a German by the Poles, was
the conviction expressed last night
by Howard B. Calderwood of the po-
litical science department at a dis-
,vussion meeting of the Adelphi House
of Representatives.
Mr. Calderwood also stated that it
is the German nation which is dis-
satisfied, the Poles being practically
content in maintaining the status
quo.
Alway Injured In Auto
Accident Near Whitmore
I
Ii
otinues
In 3 States
Cicinnati Is High Point
Of Waters; Thousands
Thrown On Welfare
Rain, Cold Bring
Misery To Victims
Nine Lives Lost; Levees
Giving Way Along River;
Damnage In Millions
CINCINNATI, March 21.-(}P)-The
mad Ohio River and its tributaries
continued an unyielding assault upon
bankside cities in Ohio, Kentucky,
and Indiana tonight as the murky
torrent approached the Mississippi.
The crest of the flood rode hard
upori Cincinnati today while a score
or so of municipalities upon each
side of the peak water struggled to
care for many thousands of tempo-
rarily homeless.
The relief problem was the more
acute because winter had returned to
the valley. Although the cold blast
had curbed the heavy rain of the last
fortnight, it also made imperative the
need of food and shelter for the des-
titute.
The four-day-old flood had cost
nine lives and probably many mil-
lions in property. Ohio of llial s alone
said damage to bridges and highways
in this state was more than $1,000,-
000.
Such other centers as Newport,
Ky., Covington, Ky., Louisville, Madi-
son, Ind., and Portsmouth, 0., were
harassed by the climbing waters.
Two .dikes protecting part of .Cin-
cinnati's east end were threatened
seriously, and one of the* actially
gave way at an isolated pot, send-
ing torrents of water int ~an unused
portio of th Municipal Airport.
Meanwhile, erratic Mill Creek In
the west end of Cincinnati spread
backwaters into suburbs of the city
far from the Ohio.
The town of New Richmond, 0,,
ecared for its 1,500 resdents as best
it could, although only flie buildings
were left high and dry. Every road
but one to the outside world was im-
passable. The Cincinnati Red Cross
and National Guardsmen were di-
recting relief.
COAST GUARD READY
GRAND HAVEN .- -rP)--Coast guard
officers stationed along the Lake
Michigan coast between Michigan
City, Ind., and Manistee have re-
ceived orders to prepare boats and
crews for possible use in the flooded
areas in Ohio.
Voelker Urges
Drastic Slash
In University
Would Abolish First Two
Years Here, Make M.S.C,
Agricultural College
Oehio Fio(
Congressional action was com-
pleted with swift adoption by a tu-
multuous House of the conference
report on the measure legalizing 3.2,
per cent beer and wine and levying
a tax of $5 a barrel on each. The7
report was approved yesterday by the,
Senate.I
President Roosevelt was ready toI
sign the measure tonight, but the
Senate, with little to do, recessed un-
til tomorrow at too early an hour to
permit the Vice President to place j
his name upon the bill.j
Senator Joseph T. Robinson, of
Arkansas, Democratic leader, failed
to get the consent of the Senate for1
Mr. Garner to sign it while that
'branch was not meeting. This finall
formality will have to await the re-
assembling of the Senate tomorrow.
the scheme of concentration pro-
grams included in the 1931 curri-
cular revision in the literary college
will be discussed at a meeting of de-
partment advisers and group com-
mittees at 4 p. m. Monday, it was
learned yesterday from Dean John
R. Effinger.
The concentration program was
initiated in the fall of 1931, when all
entering freshmen selected a definite
field for future work and occupied
their freshman and sophomore years
preparing for such specialization.
Next fall the actual concentration
work will be tried out forthe first
time, when all students with 60 hours
of credit and the proper prerequisites
will enter upon specialized courses of
study for their junior and senior
years.
'Marriage A Highly Specialized
Friendship Form'-Dean Lloyd
BATTLE CREEK, March 21.-Dr.
Paul F. Voelker, president of Battle
Creek college and Democratic can-
didate for the office of state super-
intendent of public instruction in the
spring election, today advocated the
elimination of freshman and soph-
omore subjects at the University of
Michigan as a means of state eco-
nomy in educational expenditures.
Dr. Voelker, who is well known
here and was prominently mentioned
for the University presidency at the
time of the Little resignation, said
that underclassmen could be sent
to private and denominational
schools for the first two years of
their educational careers.
Dr. Voelker also suggested that
Michigan State college be returned to
its old position as an agricultural
Zhpl, that Michigan College of
Mines curtail its activities and that
the county Normal schools be closed.
REPUBLICANS PLAN ATTACK
Republican workers in the city
election campaign agreed at a meet-
"Marriage," said Dean Alice C.,
Lloyd in a talk on "Cultural Aspects
of Marriage" last night at Lane Hall,
"Is a highly specialized form of !
friendship."
Claiming that her definition was
a very broad one indeed, she said,
"Culture is adding to our under-
standing. We are apt to think of
culture as refinement rather than
real understanding.
one interested in education to be
interested in the home," she stated
in emphasizing the importance of
good home for children.
Miss Lloyd urged the study of good
literature in the home, saying, "If
we have to wait until entering school
to enjoy literature, we loose a certain
spontaneous joy and interest in the
subject." Miss Lloyd told how the
hsanf.ufit, rf lmrn+i ,- A
Dr. G. G. Alway who owns a pri-
vate hospital at 1214 Packard St. was
reported to be in a serious condition
at St. Joseph's Hospital following an
accident which occured early yester-
day afternoon, east of Whitmore
Lake.
The automobile which Dr. Alway
was driving apparently got out of
control and crashed into a pole near
the intersection of Seven Mile road.
Dr. Alway received severe head in-
juries and remained unconscious un-