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February 24, 1933 - Image 1

Resource type:
Text
Publication:
The Michigan Daily, 1933-02-24

Disclaimer: Computer generated plain text may have errors. Read more about this.

cWeather
fly fair Friday; Satur-
ly.

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£fltr igan

No. 103

ANN ARBOR, MICHIGAN, FRIDAY, FEB. 24, 1933 PRICE F

nks

Bet Heavy
st Day Rlush

-angement
ory But
Devised

Is
No

Companies
>ort Currency
Crises Theatened
iday Is Not Lifted
r Future
r banks, opened yester-
he new 'holiday' procla-
ov. William A. Oomstock,
a rush of business. The
system of super-deposits
ought countless requests
.tion. No new methods,
with the situation were
the clearing house meet-
t, although it was gen-
ded that the present ar-
s unsatisfactory. No ac
e taken on the informa-
d on the Detroit consoli-
ports were still unofficial.
es of family emergencies
y continues were reveal-
rs with accounts of less
eing the most likely to be
he city banks are, how-
io condition and it is
the 'holiday' restrictions
d enough in the near fu-
these families. Appeals
ilies to the city poor de-
ay not avail anything as
ash supply, according to
situation, will not be suf-
feet the demands of this

An Editorial
By FRANK B. GILBRETH
Nearly 300 students must leave the University because
they are unable to pay tuition notes.
These students owe the University $40 cach and unless
they can raise this amount of money at once they will be forced
to drop out of school.
But where will they go?
If they go to their homes they will probably be unable to
get jobs and will be forced to join the already too large army
of unemployed.
It is certainly better to keep them in the University than
to have them walking the streets hopelessly looking for work
that is impossible to find.
The 300 represent that part of the 1,541 students who
enrolled this year under the "sixty-forty" deferred tuition
system who cannot pay the last installment on their education.
In September they paid $60, and the University, which is
required by law to pay the state a full tuition for every student
enrolled, paid the $40 necessary to complete the amount from
a trust fund.
Now the $40 has come due.
The Regents, at their next meeting, could keep these per-
sons in school by declaring a moratorium on the loans. The
loans should be extended to fall due in periods of 60 days and
renewed until the student is able to pay.
Eventually, of course, the trust funds must be paid back,
and, as security for the notes, the Regents should hold the
credits of all students who have not paid their notes by June
until such a time as they are paid.
We feel that the above would be a very sane solution for
a rather perplexing problem. We request the Regents to give
it careful consideration.

Solons Pass
Revenuls
Hear Norris
House 0. K.'s $315,000,-
000 Navy Supply Bill;
Speed is Shown
Latent Energy In
Senate Crops Out

Two Bills
Will Go

Are
To

Law; Four
Conference

Dairy companies placed a sum of
'imported' currency at one of the
banks to cash drafts held by farmers
selling them milk. This money will
continue to be available during thej
next two days.
The Detroit Edison company has
extended the time for cash discounts
on cash payment of bills falling due
on Feb. 20 to Feb. 30. No arrange-
ment has been made for an extensionf
on the latter date if the bank holiday
does not 'end.
Rearganize 1st National,
Guardlian National Banks
DETROIT, Feb. 23.--P)--A sweep-
ing reorganization of Detroit's finan-
cial set-up developed tonight as a
proposed short cut to solution of fl-'
nancial difficulties that 10 days ago
placed 530 Michigan banks on holi-
day schedule, and tied up approxi-
mately a billion and a half dollars.
The banking holiday theoretically
ended today, but throughout Detroit
and Lower Michigan, where the mor-
atorium was effective, most of the
banks opened their doors under
stringent restrictions proclaimed by
Gov. William A. Comstock. In the
main, withdrawals were limited to
five per cent or less, and business
otherwise was on an emergency basis.
Under the terms of a proposal,
heard in the financial district but
lacking official verification, Detroit's
two largest banks, the First National'
Detroit and the Guardian National
Bank of Commerce would undergo
reorganization, contingent upon a
loan of $135,000,000 from the Recon-
struction Finance .Corporation. The
plan, it was stated in banking circles,
would enable the banks to pay im-
mediately 50 per cent of deposits, the
remainder represented in slow as-
sets to be segregated until it can be
liquidated.
If the plan should be adopted, it
would release more than $275,000,-
000 in Detroit, on the basis of finan-
cial statements of Dec. 31 last. At
that time the First National Detroit
reported total deposits of $423,357,-
897, and the Guardian National
$138,385,923.
The holiday proclamation was pre-,
cipitated by what Gov. Comstock de-
clared an "acute financial emer-
gency" in the Union Guardian Trust
Co. of Detroit, the latter company,I
like the Guardian National Bank of
Commerce, is a unit of the Guardian
Detroit Union Group, Inc.
Meanwhile, legislation designed to
permit the segregation of frozen as-
sets in banks, and the limitation of
withdrawals in cases of emergency,
at the discretion of the state banking
commissioner, were pending before
both state and national law making

Bankers Will
Meet VFinance
Committeemen
For Welfare P111p s;
Council Approves
A motion that the finance com-
mittee of the city council meet with
Ann Arbor bankers today in an at-
tempt to release #money for welfare
purposes was passed by the council
last night.,
Under the present arrangement of
5 per cent withdrawal, only $4,600 is
available for welfare. By Monday
morning this money will be gone,
Alderman Thomas stated. The
wholesale grocers will sell goods only
for cash because shippers from other
states demand cash on delivery, he
said.
The situation was described as
very acute by Alderman Lucas, who
presided, and Mayor Newkirk de-
clared that even the governor. does
not realize the seriousness of the
situation.
Alderman Paton suggested that
some way be found to allow the
banks to open "full blast." If this
were possible very little actual cash
would be drawn out of the banks and
business would take place by means
of checks, he said. Under the present
plan of only small withdrawals
everyone will take money out in cash,
he added. m
It is probable if the banks refuse
to grant the council's request for
more money that a committee will be
sent to confer with Governor Com-
stock, Mr. Lucas stated.
Reed-Bromage Bill
FalselyReported
Owing to a misunderstanding at
Lansing the proposed county home-
rule amendment, drafted by Prof e-
sors Thomas H. Reed and Arthur W.
Bromage, of the political science de-
partment, and introduced Wednesday
in the State Senate, has been incor-
rectly reported throughout the state
as having been prepared by the
Michigan Municipal League. The
Daily carried the story correctly.
The measure was drawn up by
Professors Reed and Bromage as part
of a report prepared by them at the
request of ex-Governor Brucker's
Commission of Inquiry into County,
Township, and School District Gov-
ernment. It was introduced Wednes-
day by Sen. Gordon F. Van Eene-'
naam, Rep., of Muskegon, following
an independent study by him of por-
tions of Professor Reed's and Brom-

Regents' Board Meeting
Postponed Indefinitely
The meeting of the Board of'
Regents scheduled for this after-
noon has been indefinitely post-
poned; President Alexander G.
Ruthven announced last night.
Postponement . ofTthe meeting
was decided upon when it was dis-
closed that due to illness and out-
state absences among the regents
a quorum would not be present.
The date for the postponed meet-
ing will be announced in the near
future.
Marysvile Is
Only Town To
Obey'Tax Law,

Committees
WASHINGTON, Feb. 23. - (P) -
Congress today busied itself with the
vital measures to furnish money to
run the government. Three were
passed.
The House approved the $315,000,-
000 navy department supply bill and
the Senate, with a burst of energy,
took action on the billion dollar in-
dependent offices measure and the
$16,000,000 bill to pay for the legis-
lative expenses of government in the
next fiscal year.
The House has kept a steady pace
all session. It sent the navy bill, the
last of its regular supply measures,
to the Senate after only a day of
debate.
Only two supply bills have become
law. Four are in conference between
the Senate and House in an effort to
bring agreement on amendments.
Strong opposition that manifested
itself in the House during the .day to-
the Smith cotton bill, was taken to
mean the end of any major effort to
raise the price of agricultural com-
modities at this session.
A bill for a suspension of mortgage
payments may get through, although
that is doubtful. The Senate listened
to the veteran George Norris of Ne-
braska in a lengthy speech lambast-
ing New York banks. He said they
virtually controlled the country and
made a poor job of it. A little while
before Norris began, officials of. one
of the banls he named, theNational
City of New York, were testifying the
banking committee's stock market
investigation.
Hugh B. Baker, president of the
National City Company, subsidiary of
the banks, said his company at times
had tried to control the price of the
bank's stock. There was other tes-.
timony that at times also the bank,
in effect, sold its own securities short.
Before the Senate finance commit-
tee, Francis P. Garvin, of New York,
former a 1i e n property custodian,
urged rigid governmental control of
yanking.
Sample Dismisses Case
Againist Welfare 'tint
The case of Alonzo Middleton
against Albert Trinckle, supervisor of
Scio township, was dismissed by
Judge George W. Sample yesterday
in circuit court because there was no
cause for action.
Middleton, unemployed, charged
that the county was not supplying
him with welfare relief, which he
said he needed.
According to Supervisor Trinckle,
he had offered Middleton several
jobs which were refused because "he
couldn't earn enough money." He
had also been offered a place in the
county home, which he also turned
down.

Many Cities Still
Taxes Raised InI

Usintg
1932,

Survey Results Show
Only one out of 70 typical Michi-
gan cities surveyed by the Michigan
Municipal League is operating with-
in the 15-mill limitation imposed by
the mill-tax limitation amendment
ratified in November, it is revealed
in a current bulletin of the league.
The city is Marysville, which has a
population of less than 2,000. It is
in St. Clair County.
The funds being spent by the cities
were raised in taxes in 1932, and
hence are unaffected by the amend-
ment. In preparing budgets for 1934
"drastic curtailment of services, will
be necessary," in the words of the
bulletin.
The current operation rates were
obtained by the Michigan Munici-
pal League by deducting the total
rate for debt service from the total
tax rate in each community.
The method by which these figures
were computed results in a slightly
inaccurate picture of the -situation,
league officials said yesterday. The
essential fact remains, however, they
said, that 69 out of 70 cities studied
are operating beyond the limit, and
consequently are faced with the
necessity of drsatic curtailment.
Select New Programs
Chairman For J. G. P.
Katherine Leopold, '34SM, will fill
the capacity of programs chairman
on the central committee of the 1933
Junior Girls' Play henceforth, due tc
the fact that Joan Barnett, former
chairman, has been unable to con-
tinue in the position, according tc
Frances Manchester, general chair-
man of the central committee.
The costume committee, under the
direction of Katherine MacGregor,

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Fraternity System Faces Crisis
As Houses Seek To Consolidate
By THOMAS CONNELLAN Sigma Zeta was the first house to
With two more houses ready to go out of existence when it closed
"close up," according to statements its doors late last year. Tau Delta
from members of the houses, the Phi failed to open when school be-
fraternity system on the campus gan, and Alpha Chi Rho went out
faces one of the most serious crises in of existence soon after pledging took
the history of the University. place. Phi Mu Delta and Delta Chi
Efforts by fraternity organizations, combined during Christmas vacation
including the Alumni Interfraternity in order to save both houses,
Council, to combine the weaker fra- Two houses are now in the process
ternities on the campus have met of combining, but permission from
with little success so far because the national headquarters has not been
national organizations have looked granted as yet. If the permission is
askance at the plan which would re- nt asryet.mIf the erin is
ducethei mebersip.Furter-not forthcoming, it is evident that
duce their 'membership. Further- one house will be forced to close,
more, the constitutions of the nation- and the other may be forced out of
al" fraternities prohibit their mem- existence.
bers from becoming active in another
fraternity and will not allow their Another house is now in a financial
chapters to take in men who have condition which will force it to re-
belonged to another fraternity. linquish its chapter before the close
National headquarters of the weak- of the year, according to a statement
er houses on the campus can be pre- of an alumni representative who has
vailed upon to relinquish their rights been acting in an advisory capacity

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