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April 19, 1933 - Image 1

Resource type:
The Michigan Daily, 1933-04-19

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The Weather
Mostly unsettled today;
probably rain.


.1t igau


Age Limit In
The Beer Bill

VOL. XLIII No. 141




Issuance Of Per'mits To
Eastern Gangsters Brings
On Heated Controversy
'Keep Graft Out Of
Pacific Coast Agent Is
Shifted Without Attor-
ney General's Knowledge
WASHINGTON, April 18.-WR)-
Three weeks in office, A. V. Darym-
ple, Prohibition director, today was
the center of a controversy over the
issuance of brewing permits to east-
ern gangsters and the shifting of a
Pacific Coast administrator without
the fore knowledge of Attorney Gen-
eral Homer S. Cummings. °
Meanwhile, the Attorney General
initiated an independent investiga-
tion into the issuance of permits
all over the country and said that
every resource of the Justice De-
partment wouid be strained toward
keeping known offenders and per-
sons with criminal records out of
the beer business.
"I believe that the decent and
law-abiding citizens of the country
want decent and responsible people
handling beer in a manner free from
corruption and graft," Mr. Cum-
mings said.
Echo of Gang Killings
The New Jersey beer situation
which led to the killings last week
of two men listed as racketeers and
gangsters-one of whom had ob-
tained a brewing permit - w a s
brought to Dalrymple's door early
in the day. Dr. James M. Doran,
commissioner of indstrial alcohol,
asserted that some permits were
pushed along at the request of the
Prohibition director.
Later, Attorney General Cummings
said that he did not know until he
read published accounts that Dal-
rymple had demanded the resigna-
tion of William G. Walker as admin-
istrator of Northern California and
Pretzel Question Up
For Debate In House
LANSING, April 18.-(I)-The
question of when is a free lunch
bothered the House liquor com-
mittee today.
Members who favored pretzels
with their beer contended' that
they are appetizers and not food.
The administration beer bill, as
passed by the Senate, prohibits
serving free lunches with beer.
The committee agreed tentatively
to amend the measure to permit
munching free pretzels.
Nevada and had appointed John
L. Considine, a San Francisco news-
paperman, as his successor.
Dalrymple, in a turbulent session'
with newspaper men, dictated a
heated statement-his first since tak-
ing office-in reply to what he term-
ed "slight criticisms" of his office.
Defends His Actions
He said that haste was urged to
get revenue flowing in from beer and
that "the object was, of course, to
see that no injustice was done to

those who had complied with the
He added that he did not intend
to enter into any controversy with
Dr. Doran.
Then, flatly declining to answer
any questions about his actions since
he has been director, he pounded
his desk and told those gathered
about him that he would not be in-
terrogated and that he was under
instructions from the Attorney Gen-
eral to give no interviews.
The Prohibition director said that
"we have and will instruct our men
to expedite issuance of permits where,
it is demonstrated that it is a proper
case for a permit to be issued." ,
'Capless' Cap Night {
Next Council Topic
What to do with Michigan's cap-
less Cap Night is the topic which1
will come up for discussion tonight>
when the Student Council will hear
the report of a special committee
composed of Councilmei William F.1
Vllna++ ,'qq aiIr ram . RiironsRCC


Center Of Storm

-Associated Press Photo

To Stimulate
Currency Use
President Calls Conference
Of Federal Reserve; To
Facilitate Credit
WASHINGTON, April 18.-OP)-
The administration tonight called in
the Federal Reserve Bank governors
to stimulate exchange of currency
and reach out for command of the
growing campaign for inflation.
Calling off temporarily the drive
on Capital Hill for money expansion,
the President determined to make
existing credit facilities more effec-
tive as he began discussion of other
"reflation proposals."
In announcing the conference here
tomorrow of the governors of the 12
Federal Reserve Banks, Secretary
Woodin made it clear that he was
looking primarily for means of put-
ting into operation the idle currency
now available to the banks and the
freeing of four or five billion dollars
locked up in closed institutions.
There is a conviction at the treas-
ury that the demand for capital is
increasing and commodity prices im-
proving, but that something must'
be done to pump the millions of
available new currency through the'
banks to industry.
The door was not slammed at the
White House to inflationary steps,
but it was emphasized there that no
specific administration measure has'
been drafted. High administrative
leaders also hinted quite strongly
that there is no thought of forth-
right currency inflation.
As for the related silver problem,
it is the intention of President Roose-
velt to work this out through an in-
ternational treaty or treaties in the
forthcoming world economic discus-
sions. He feels world action is neces-
sary on the subject of bimetallism.
With approximately $2,000,000,000
of new currency available under the'
recently enacted banking law, the
banks had called for only $31,652,381
up to April 15. Only five Federal Re-
serve districts had used any of this
new currency-New York, Phila-
delphia, Boston, Cleveland and St.
BERLIN, April 18.--(P)-Nazis re-1
moved a bust of Friedrich Ebert,
first president of Germany, from the1
Berlin city hall today.1

Council Votes
New Method
Board Of Directors Of
Chamber Of Commnerce
May Choose Committees
Will Name Experts
For Investigations
Appointment Of Boards
To Appraise Businesses
For Assessment Is Asked
A plan to improve the method of
levying taxes by having committees
appointed to take inventories of the
businesses to be assessed, rather than
allowing the business men to make
their own inventories, received the
approval of members of the Common
Council and city members of the
Board of Supervisors in a meeting
last night at City Hall.
The meeting agreed to ask the
Board of' Directors of the Chamber
of Commerce to appoint the commit-
tees, and a resolution to that effect
will be presented to the board when
it meets tomorrow evening.
Would Concentrate Talent
In the plan's operation, a number
of committees would be appointed,
each committee composed of men in
a single line of work. Thus there
would be a committee of doctors, a
committee of lawyers, a committee
of grocers, and similar committees
for all lines of work to be assessed.
Each committee would take the in-
ventories of those businesses with
which it is most familiar, the doc-
tor's committee taking the inventory
of doctors' offices, the grocer's com-
mittee taking the inventory of gro-
cery stores, and so on down the line.
It is expected that the plan, which
was suggested by a member of the
audience, will do away with attempts
to cheat on assessments. Lawyers,
the meeting decided, would be able
to make better inventories of the
city's law offices than any one indi-
vidual not connected with law work
could do, and the same is true with
other businesses.
Chain Stores Discussed
The meeting also decided that if
the technical work in making out as-
sessments was too great for the city
assessor himself, a number of men
should be appointed by the budget
committee of the Council to assist
Much discussion at the meeting
concerned chain stores, which, it was
argued, do not really pay as high an
assessment as they should. This, a
number of speakers contended, is be-
cause of their quick one-day turn-
over of goods brought here from De-
troit, which makes it impossible to
take a fair inventory.
Many persons present said that a
large number of businesses in the
city are not paying a fair tax, and
this necessitated those who did pay
their taxes to pay a higher rate than
they would otherwise have to do.
Senate Waits Action
On Banking Reform
WASHINGTON, April 18.-(A)-
Agreed upon a widely ramifying
banking reform bill, embodying a $2,-
000,000,000 proviso for insuring Fed-
eral Reserve member bank deposits,
the Senate banking subcommittee
made known tonight it would with-

hold final action until the adminis-
tration speaks.

Financial Difficulties Not
Settled By Cut In State
Salaries, is Clairi

To Urge Budget Cut Protest

State Board Asks
Further Revenues
Teachers Suffer Througl
Failure Of State To'Ad-
vance Aid, Pearce Says
LANSING, April 18.-UP)--Imme-
diate legislation to start new reve-
nues flowing into the State treasury
was demanded by members of the
State Administrative Board today as
all State employees were placed on
half-pay. Even this reduction in ex-
penditures will not allow the State
to meet essential obligations unless
funds car be obtained from new
sources, it was claimed.
Webster H. Pearce, superintendent
of public instruction, told the board
hundreds of teachers are suffering
because of the failure of the State
to advance aid. He said the teach-
ers, many of whom have not been
paid for months, have continued
working on the promise that the $2,-
000,000 Turner School Aid Fund
would be distributed May 1. State
Treasurer Theodore I. Fry said there
will not be sufficient money for the
disbursement. Upon Pearce's motion
it was ordered that as much of the
school money as is available be re-
G. C. Dillman, State highway com-
missioner, said some trunk line high-
ways maintenance payrolls have not
been met since last December. High-
way funds have been "borrowed" for
general fund purposes.
The 50 per cent reduction ordered
by the board will affect approximate-
ly 10,000 State employees and will
cut into a $1,100,000 monthly payroll.
The resolution adopted by the board,
upon the recommendation of the fi-
nance committee, said:
"In view of the falling off of rev-
enues from tax collections the State
is unable to meet its obligations and
continue to supply the money needed
for the operation of State govern-
ment. As one means of meeting the
cash shortage the committee recom-
mends that 50 per cent of all State
payrolls, including those of the Uni-
versity of Michigan, Michigan State
College and other institutions be de-
ferred effective April 1 and that the
percentages be adjusted from month
to month as necessity dictates. This
means that employees who drewthalf
monthly pay April 15 will not be
paid again until May 15, and em-
ployees paid but once a month will
draw half a month's pay for April on
May 1. The committee is hopeful
conditions causing the lack of tax
collections will be remedied in the
near future."
Faculty Judges
Announced For
Six Students To Participate
In Oratorical Contest For
Chicago Alumni Medal
Five members of the faculty will
judge the orations of the six finalists
in the annual University Oratorical
contest which will be held at 8 p. m.
tomorrow in the Laboratory Theatre.
As announced by Carl G. Brandt, of
the speech department, they are Prof.
H. R. Coffey of the Law School, Pro-
fessors Louis Eich and A. D. T. Hol-
lister of the speech department, Prof.
James K. Pollock of the political
s c i e n c e department, and Prof.
Thomas C. Trueblood, dean emeritus
of the speech department.
The six persons who survived the

preliminary round held on April 6
are Alice Boter, '33, Dorothy M.
Davis, '33, Edmund K. Heitman, '35,
Wilbert L. Hindman, Jr., '33, Robert
M. Sawyer, '33, and Robert S. Ward,
The winner nf the natnewiP n.

More than 5,000 leaflets will be distributed on the campus today
by members of the National Student League, urging all students and
faculty members to telegraph the State Legislature protesting against
reduction of the University appropriation to a sum less than the
$3,750,000 which President Alexander G. Ruthven has recommended.
The Legislature is scheduled to take up the matter of the Univer-
sity appropriation some time today, and the leaflets will urge flooding
the Legislature with telegrams early enough to make the sentiment
of the students and faculty known before the matter comes to a
final vote.
The leaflets will point out to the students and faculty members
that a further reduction will raise tuition fees, force young instructors
and assistants into the ranks of the unemployed, and generally ruin
the University's standing as one of the leading educational institutions
of the world.
When the cut was first proposed, the- National Student League
was active, along with Michigamua and Sphinx, honorary societies,
and The Daily, in circulating a petition objecting to the reduction,
which at that time threatened to be almost 75 per cent of the Univer-
sity appropriation.
More than 3,000 students signed the petition, which was then
taken to Lansing by a committee of campus leaders and presented
to Gov. William A. Comstock.

$2,645,000 Compromise Struck
In Committee Recommendation
After Plea By Ruthven Is Hearc


Britons Are

Committed To
Russian Prison
One Acquitted, Three Are
Expelled; Monkhouse
Defends Profession
MOSCOW, April 18.--P)-Two
British electrical engineers were
given prison sentences today on con-
viction of charges of sabotage and
espionage, while one, A. W. Gregory,
was acquitted, and three were or-
dered expelled.
L. C. Thornton, chief erecting en-
gineer for the Metropolitan Vickers
Co., received a three-year sentence.
.W. H. MacDonald, an engineer, was
sentenced to two years. He was the
only Briton who pleaded guilty.
Allan Monkhouse, the director for
the firm in Moscow; Charles Nord-
wall and John Cushing were ordered
Ten of the Russian defendants
were convicted and the eleventh was
The sentences for the Russians in-
Vassili Gusev, 10 years; Zorin,
eight years; Krasheninnikov, five
years; Kotlyarevsky, eight years;
Anna Kutuzova, one and a half
years; Lebedev, two years; Lobanov,
10 years; Oleynik, three years. Y. I.
Ziebert was acquitted.
Prior to the verdict the last proce-
dure in the court room was a series
of final statements from each of the
defendants. Perhaps the most dram-
atic of these came from Monkhouse,
who told the court that a man of his
profession could no more wreck his
engineering accomplishments than
he could kill his own children.
"When engineers build works of
this kind they look on them as their
own children, and I never yet knew
a parent who would put a dagger in
the heart of his child," he said.
The Ann Arbor Stamp Club will
hold its regular meeting at 7:30 p. m.
tonight in the Union. All students
interested in philately are urged to

Students Plan
Conference On
World Affairs
Commissions Organized
To Lead Discussions Of
Politics And Economics
Student analysis and discussion of
world problems of national and in-
ternational scope will be made pos-
sible at the International Student
Conference on World Affairs to be
held May 4, 5, 6, and 7 in the Union.
Three separate commissions are be-
ing organized to collect material and
information on world politics, eco-
nomics, and society. They will be in
charge of discussion of these par-
ticular phases of the conference.
The group sessions under super-
vision of these commissions will meet
afternoons and evenings for discus-
sion periods. Reports of each meet-
ing will be kept. These reports will
be read at the evening sessions which
will be limited to speeches and re-
ports from leaders of the conference.
Student discussion will necessarily
be eliminated at these evening ses-
sions by the shortage of time, since
the progress of the various groups
will be collected and checked daily at
these assemblies.
Michigan offers an excellent op-
portunity for this conference, Gor-
don Galaty, '33, chairman of the ex-
ecutive committee, explained, because
of the ability of the faculty and the
diversity of its student population,
both of which have signified their
intention of co-operating in this con-
Technic Will Contain
Prize-Winning Article
"Apprenticeship, Vocational Train-
ing and Industry" a prize winning
article by Marshall Anderson, Grad.,
is the main feature of the April issue
of the Michigan Technic which goes
on sale Thursday in the lobbies of
the East and West Engineering

Ways And Means Group
Will Try To Place New
Figure In University Bill
Tax Appropriation
To Be Guaranteed
Legislators Agreed That
$2,000,000 Is Too Low;
M.S.C. Gets $1,000000 '
LANSING, April 18.-f)--The
House Ways and Means Committee
agreed late today to recommend a
guaranteed mill-tax appropriation of
$2,645,000 a year for the University
of Michigan.
The decision followed a hearing in
which President Alexander G. Ruth-
ven said it was his honest opinion
that to cut the appropriation that
low would be to "drag the institution"
below the deadline to a 'point where
destruction would begin." The com-
mittee Wednesday will offer amend-
ments on the floor to place the iew
figure in the University bill. As or-
iginally reported the measure pro-
posed to reduce the appropriation
from six-tenths to three-tenths of a
mill with a maximum of $2,000,000 a
No Maximum Limitation
Convinced this figure was too
low, the members agreed to fix the
appropriation at four-tenths of a
mill, without a maximum limitation,
and with a guarantee that $2,645,000
will be paid the University regardless
of tax delinquencies. Last year the
institution was entitled to $4,126,000
from the mill-tax appropriation, but
to date has received a little more
than $2,000,000because of tax de-
The committee also agreed to
guarantee Michigan State College
$1,000,000 a year from a mill tax of
sixteen one-hundredths instead of
the $900,000 maximum and fifteen
one-hundredths mill tax originally
recommended. A straight reduction
of 33 1-3 per cent in appropriations
for personal service in all normal
colleges was approved.
Would Eliminate Overlapping
The committee's. action followed a
hearing in which Dr. Ruthven, Shir-
ley Smith, treasurer of the Univer-
sity, and Edmund C. Shields, Regent,
pleaded for the appropriation which
would permit the institution to op-
erate without loss of usefulness and
educational prestige. They advocated
an appropriation of $3,750,000.
A resolution was introduced in the
House this afternoon by Rep. George
J. Creen (Dem., Saginaw) proposing
a legislative study to eliminate dupli-
cation in educational institutions. It
provided that the Board of Regents
of the University, the State Board of
Agriculture and the State Board of
Education name representatives to
meet with a legislative committee to
discuss the proposal. It is Creen's
contention that economies could be
effected by eliminating overlapping
courses and activities in the Univer-
sity, Michigan State College, and
normal colleges.
Wari Leads Technocracy
Discussion At Alpha Nu
An impromptu discussion of Tech-
nocracy led by Robert S. Ward, '35,
was held last night at the regular
meeting of the. Alpha Nu chapter of
Kappa Phi Sigma, honorary speech
society. Dean J. B. Edmonson, of the
School of Education, who was orig-
inally on the program, was called
out of town. m p n n

offered by friends and enemies of
Technocracy. The chief objection to
the system was that it could not
function because its basic theory of
demand equalling supply can never
be realized.
Seniors Are Urged To
Order Canes At Once
Seniors are urged to place or-
ders for canes with Wagner's

English, American Co-Eds Not
Used To Freedom Of Continent

College women in America and
England are not used to the free-
dom granted women students in Ger-
many, France and Switzerland, ac-
cording to Miss Helen Naegeli, of
Zurich, Switzerland, who is here to
observe American student life.
Miss Naegeli has come here from
Switzerland after extensive visits to
Oxford, Paris, and universities in the
south of Germany. "I have come,"
Miss Naegeli said, "to watch people
teach and work, not to get a degree."
She will attend lectures and classes
as a regular student.
One of the first observations that
Miss Naegeli made was on the ease
with which she wa ahl tn onenrll

England's. In Switzerland and Ger-
many, however, the student rooms
are located anywhere in the vicinity
of the school and have no connection
with the university. They have no
particular hours, she said, and when
asked how that worked, Miss Naegeli
said that the students were "surpris-
ingly sensible." When asked if she
believed that complete freedom such
as that would work in America, Miss
Naegeli remarked that, although she
had not been here long enough to
observe, she thought that American
students were probably not prepared
for that freedom since they had been
away to school most of their lives
and therefore under constant super-
vision_ Tn ;rmmnn wimartnn -ar

If Students Want Class Games,
They Can Have Them, It Seems

Michigan will have class games, if
the Union and the Student Council
can get enough interest aroused
among the members of the classes
who are expected to take part.
At a meeting of the officers of the
freshman and sophomore classes last
night, Union officials said that the
lack of interest on the part of the
members of the sophomore classes
mightaseriously impair the success of
the class games.
Theyvsaid. howevvr.thatf fh.uhe-

printing of any posters which the
classes may want to prepare, it was
announced by representatives of the
organizations. The question of the
spring games is to come before the
Student Council tonight, but it was
brought out at the meeting that the
games would proceed regardless of
the Council's action, if there was in-
dication that support would be forth-
coming from members of the fresh-
man and sophomore classes.
Plans were made for persuading
one of the members of the freshman

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