Weather I Mostly cloudy, few snow flur- ries Wednesday; not much change in temperature. or- it ii 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-