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January 06, 1934 - Image 1

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Publication:
The Michigan Daily, 1934-01-06

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P
wha
ate

The Weather
ossibly cloudy and some-
tt colder Saturday; moder-
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Editorials
Science Honors Dr. Kahn.. .
The Shirt Question....

~7i7 IWTT L~ Nlvn.L. *TJA V L .

I

V VJU. AIAV NO. 7

ANN ARBOR, MICHIGAN, SATURDAY, JANUARY 6, 1934

PRICE FIVE V1

1

- wi~a R aa V.

House Passes
Aleohol Bill.;
Estimate Yearly Revenue
Of $470,000,000; Send
Bill To Senate
Officials Discuss
Budget At Meeting
St. Lawrence Waterway
Treaty To Be Taken Up
For Action Next

I

} ,

I

Thomas Says Chances For War
Are Greater Than For Peace)

Rooseveltian "recovery" is com-
parable only to a man with a chronic
and incurable disease rallying for a
brief period.
The chances for war within the
next five years are greater than the
chances for continued peace.
The chances for an economic de-
bacle within the next five years are
greater than the chances for re-
covery.
These statements were made by
Norman M. Thomas, twice candidate
for the presidency of the United
States on the Socialist Party ticket,
in an exclusive interview with this
paper yesterday afternoon.
"It is extraordinary what the citi-
zens of a country can stand," Mr.
Thomas declared. "The capitalist sys-
tem has seemingly borne up in the
midst of a definite disintegration.
"One thing only is certain to come
of the superb balancing act the
Roosevelt Administration is staging.
The tightrope-walking act must come
to an end and the Administration
must veer sharply to the right and
Fascism or to the left and Socialism.
"Personally I believe the Adminis-

tration will turn towards a Fascist
regime which will attempt to per-
petuate capitalism, but this Fascism
will have to adopt an American guise
dissimilar to Hitlerism.
"General Johnson is of the Nazi
type. Gerard Swope could step in
conveniently with his 'business Fas-
cism', of, for, and by, big business."
Asked what he thought of the re-
cent 10 billion dollar budget sub-
mitted to Congress by President
Roosevelt, Mr. Thomas voiced his
belief that this stupendous spending
program was not of itself fatal, but
that he regretted the "lack of con-
structive proposals to care for the
burden of the national debt."
"It's all leading toward inflation,"
Mr. Thomas said. "Either a hectic.
credit inflation or a prolonged cur-
rency inflation will have to be used
as a hypodermic before long."
Nothing but a concerted mass7
movement can possibly stave off the
"threat" of Fascism, Mr. Thomas
said, adding that he would as in the
past build the Socialist Party to itst
highest possible efficiency for the
(Continued on Page 2)

WASHINGTON, Jan. 5.- (P) -
Money --how to get it and how tc
spend it -supplied Congress today
with a perplexing question.
On the getting side, the House
passed the liquor tax bill laid before
it by its Ways and Means Commit-
tee.
Estimated to be capable of pro-
ducing $470,000,000 a year, the bill
provided $2 a gallon taxes for high-
proof liquors and lower ones for bev-
erages of less alcoholic content. The
committee will start work Tuesday
ona measure designed to twist down
the screws of the income tax laws so
as to produce $270,000,000 of rev-
enue that has been eluding collectors
annually.
With reference to the spending
program that has been outlined by
President Roosevelt, House leaders
who will provide the legal apparatus
for dispensing the money were called
to the White House to go over the
plans.
Look Into Expenditures
Ten billion dollars are to be spent
this fiscal year and six billion next.
From the Republican side of the
House, Rep. Charles L. Gifford, of
Massachusetts, ranking minority
member of the Expenditures Com-
mittee, said that he would demand
full explanation by officials of the
recovery expenditures. Rep. Joseph
W. Byrns, of Tennessee, the Demo-
cratic leader, said that sentiment
was developing among the members
to require that funds appropriated
for public works be used for that
purpose. Large sums have been used
for governmental and civil works
projects.
In the Senate, which was in re-
cess over the week-end, Senator Jo-
seph T. Robinson, of Arkansas, the
Democratic leader, predicted prompt
consideration of the liquor tax bill
with few changes and swift passage.
Seaway Next in Line
The St. Lawrence Treaty-through
which this country would join Can-
ada in constructing a boundary wat-
erway - was put down for considera-
tion behind the liquor bill.
The day brought discussion of a
Farm Credit Administration Bill, of
the prospects for renewing the Re-
construction Finance Corporation's
powers beyond the time already set,
of inflation, and of extending the
provisions of last year's act into the
next year. Roosevelt will propose to
Congress next week that the gov-
ernment guarantee the principal of
the $2,000,000,000 of agricultural re-
financing bonds, which will in effect
convert these into government obli-
gations.
Extensioh of this to the $2,000,000,-
000 in home loan bonds also is con-
templated.
Asked today about the Treasury's
plans for the $10,000,000,000 financ-
ing to be met in the next six months,
Mr. Roosevelt replied that it would
be taken care of in normal course.
He smiled and spoke confidently.
A joint hearing of House and
House District of Columbia commit-
tees brought forth a variety of pro-
posals for controlling liquor in the
capital, the principal issue being
whether it should be sold through
dispensaries or licensed dealers.
Silver sprang to the fore in dis-
cussions of inflation, intimations
spreading that the President was
contemplating some new step to-
ward remonetization.

i

New Gargoyle
SShows Plans
And Drawings
Co-operation With C i v i*1
r Works Administration Is
This Month's Idea
Co-ordination with the Civil Works
Administration is the program which
will be followed in this month's Gar-
goyle, to appear on the campus Jan.
15. The CWA building slogan "one
for every mile" will be further en-
hanced by plans and drawings ex-
clusive with the Gargoyle which are
expected to add much to beautifying
Michigan for the benefit of tourists.
In addition there will be lively
caricatures of Michigan's All-Ameri-
cans as well as the treatment which
will be given Preposterous Person No.
10. Another new feature will be the
incorporation of a section devoted to
poetry, lyric, epic, and otherwise,
generally conceded to be the latter.
Four B.M.O.C.'s will display the
very latest in formal attire for the
winter season. Another sartorial fea-
ture will be the continuation of So-
phisticated Lady, the popular com-
ment on women's style with photo-
graphic illustrations of the fashions
discussed.
Other items which have been well
received in previous issues are Mod-
ern Music, which will discuss a
fourth orchestra following the pre-
sentation of Ted Weems, Hal Kemp,
and Glen Gray in former numbers;
and the amusing campus incidents
which are dotted throughout the
magazine.
CWA Spending
$3,000,000 In
.Michigan Now
LANSING, Jan. 5- (R) - The Civil
Works Administration is spending
approximately $3,000,000 in Michigan
and will continue to expend that
amount until Feb. 15, Fred R. John-
son, state relief administrator, said
today.
Payrolls as of last Saturday under
the CWA amounted to $2,309,862, the
administrator said. There were 161,-
198 persons on CWA payrolls in the
state on the same day. Material
costs amounted to approximately
$600,000.
"We have just about reached our
maximum at this time," Johnson
said. "From now until Feb. 15 the
CWA will be spending about $3,000,-
000 a week in Michigan."

Literary Medal
Is Presented
To H. M. Jones
Professor Of English Is
Given Jusserand Award
By Historical Society
Prof. Howard Mumford Jones of
the English department became the
recipient of the Jusserand Medal
when he was given this award at the
recent meeting of the American His-
torical Association.
Professor Jones is the third per-
son to attain this honor since the
medal was first awarded in 1925. He
received the award presumably for
his "America and French Culture,
1750-1848," published in 1927.
The Jusserand Medal is given "as
occasion may arise, for a published
work of distinction on any phase in-
volving the history of the intellectual
relations between the United States
and any foreign country."
The two previous awards have been
made to Bernard Fay, in 1925, for
his "L'Esprit Revolutionaire en
France et aux Etats-Unis a la fin au
Dixhuitieme Siecle" and, in 1930, to
Otto Vossler for the publication of
"Die Amerikanischen Revolutionsid-
eale in ihrem Verhaltnis zu den Eu-
ropaischen."
Professor Jones has been a mem-
ber of the faculty in the English de-
partment since 1929. He was for-
merly an associate professor of com-
parative literature at the University
of Texas and a professor of English
literature at the University of North
Carolina. He is at present working
on material which he will incorporate
into a work on the life of the famous
Irish lyric poet, Thomas Moore.
Dynamite Theory In
Flood Shown False
LOS ANGELES, Jan. 5 -({R)- In-
vestigation disclosed today that there
was no foundation for reports that
the disastrous New Year's flood in
the La Crescenta-Montrose area re-
sulted from the dynamiting of a dam
during the storm, Capt. Norris G.
Stensland, of the Sheriff's office, re-
ported.
Stensland said that debris clogged
up behind heavy water pipes in
Pickens Canyon and behind small
check dams. These held back great
quantities of water, which were
loosed when the storm-made dams
gave way.
At least 39 lives were lost and of-
ficials estimate that $5,000,000 prop-
erty damage was done by the flood.+

Committee is
Told OfRFC
Loan!Refusal
Application Of Detroit
Banks Rejected; Said
'Why Bail Out Ford?'
A. P. Leyburn Tells
Story To Senators
Kanzler, Former Guardian
Group Chairman, Gives
Opposing Views
WASHINGTON, Jan. 5. -() -
Fast moving events preceding the
Michigan bankin holiday, including
refusals of a F deral Government
agency to adva 'e a loan to the
Guardian group f b anks and "bail
out" Henry Ford, were described to-
day before the Senate investigator.
The Senate baning committee, in-
quiring into the tate banking col-
lapse, last February, listened intently
to a national bank examiner relate
how the Reconstruction Finance Cor-
poration rejected the loan applica-
tion, and in doing so queried, "Why
should we bail out Mr. Ford?"
Alfred P. Leyburn, the bank exam-
iner, related closely fitted develop-
ments, including Ford's refusal to
listen to a suggestion that he confer
at the White House with President
Hoover, and how officers of the
Guardian group hesitated to appeal
to Senator Couzens, because he
threatened to "scream from the
housetops" if the loan was granted.
Deposit $ 0,000,000
The Ford deposit at the time the
RFC refused to "bail him out" was
in excess of $20,000,000, according to
Leyburn.
Leyburn's testimony shared in in-
terest today with that offered by
Ernest C. Kanzler, formerly chair-
man of the board of the Guardian
group. Kanzler disclosed how direc-
tors of the group pooled resources to
buy $3,200,000 worh of the group
stock in a futile ef rt to prevent its
decline. The drop in the stock was
affecting deposits, and a further de-
cline was believed likely to cause a
run on the units of the group.
Leyburn admitted on the stand
that he had conferred with Kanz-
ler, Henry E. Bodman, Dr. Fred T.
Murphy. Clifford B. Longley, and
Harry S. Covington, all directors of
the group, last Jan. 15, and had as-
sisted in the formulation of a plan
whereby the loan was sought from
RFC.
Leyburn then accompanied Kanzler
and Longley to Washington, where
the loan was sought from the RFC
Board.
Collateral Inadequate
The query, "Why should we bail
out Henry Ford?" was made when
Leyburn appeared before the RFC
Board, he testified. He did not recall
who made the statement, "but that
seemed to be the general idea at the
meeting," he said.
He added that the RFC Board con-
idered the collateral offered inade-
quate.
"The Board suggested that Henry
Ford be asked to guarantee the loan,"
Leyburn continued. "That is, a loan
to the mortgage company that was
to be organized to make the the loan.
I went back later and Mr. Miller
(Charles A. Miller, chairman of the
RFC at the time) suggested that Mr.
Ford be invited down here and that
the seriousness of the situation that

was developing be placed before
To Hold Qualifying
Billiard Tourney
Announcement of a qualifying
competition to determine the com-
position of the five-man team which
this month will defend the title won
for the University last year in the
annual national intercollegiate bil-
iard championship tournament was
nade yesterday afternoon by O'Neill
Dillon, '35, student executive commit-
eeman.
Dillon stated that it would be
necessary to choose an entirely new,
eam inasmuch as none of the mem-
bers of last year's squad are eligible
for competition this year. Michigan
has already won the title twice and
another victory will give them per-
nanent possession of the trophy of-
fered by the amateur billiard associa-
tion.

Charges Plot
Against State
Bonding Plan
t Gov. Comstock Denounes
Senators For Deserting
Party Standard
Will Resubmit Bill
3To Special Session
Asserts That Its Defeat Is
Keeping Michigan Out
Of Federal Program
LANSING, Jan. 5. - () - Gover-
nor Comstock today charged a polit-
ical plot wrecked his insurrection
bond proposal. He announced today
he will resubmit the issue in a sec-
ond special session of the Legislature
to be held probably about Feb. 15.
The executive claimed the Repub-
lican minority in the Senate deliber-
ately made plans to destroy a meas-
ure which he claimed would provide
work for 30,000 men. They were aided
by two renegade Democrats, he as-
serted.
In bitter terms he denounced Sen-
ators Francis A. Kulp, Battle Creek,
and J. Neil Lamoreaux, Comstock
Park, Democrats, for deserting their
party standard. The governor
charged the group which refused to
accept the $15,500,000 bonding mea-
sure without a referendum clause at-
tached "deliberately misinterpreted
the spirit of the people."
Senate Adjourns Abruptly
The action of the Senate in ad-
journing abruptly at 1 a. m. Friday
morning, leaving the insurrection
bill stranded in a tangle of inter-
house and administration differences,
has destroyed Michigan's chance of
participating in the $3,300,000,000
federal public works appropriation,
the executive claimed. He said he had
received advices from Washington
that Congress will be asked to appro-
priate additional sums. For that rea-
son he will submit the proposal to
the legislature whenft 'meets again,
he declared.
The Legislative Council will confer
with the Governor next Tuesday in
an attempt to map out a program
for the next special session. Speaker
Martin R. Bradley said the council
will be ready for a session between
Feb. 12 and 15.
Differences Irreconcilable
In a dramatic closing session, ad-
ministration leaders threw up their
hands and forced adjournment, leav-
ing the bill high and dry because of
differences that could not be erased.
The administration refused to ac-
cept the bonding bill with a referen-
dum clause attached. An opposing
group of senators declined to approve
the measure unless it could be sub-
mitted to a vote of the people.
The deadlock was-unbreakable. On
one side there was a solid bloc of
11 Republican and three Democratic
senators who declared they "would
never vote for a bonding bill with-'
out a clause providing for a state-
wide referendum." On the other side
were 13 Democrats who insisted the
referendum section must be deleted.
There were 27 senators present.
Allegan Approves Bonds
For Power Dam Project
ALLEGAN, Jan. 5. --(M)- Despite
a Federal court injunction restrain-
ing the city from issuing bonds for
a municipal power dam project, Al-
legan voters Thursday went on record
in a special referendum approving

two such bond issues. The vote was
1,016 for the proposals and 178
against. The measure also would
grant a franchise for operation of
the municipal plant.

Pointed Highlights Of
Thomas Address Here
Some pointed highlights of the
Thomas address of last night:
"The R.O.T.C. on the Michigan
campus or on any campus is an
anomaly. It is not productive of
culture, of reason, of knowledge,
or even of good military training."
"Those whooccasionally explore
rabove the level of the comics in
their reading may enjoy the pun-
dit Lippmann, who wrote 'A Pre-
face to Politics' - I mean 'A Pre-
face to Morals.' I guess he never
progressed beyond the preface."
"Charles Mitchell was worse
than Jimmy Walker. He didn't
even put on a good show."
"What some people want is a
hallowed capitalism of President
Jackson's time-plus a radio, a
bathroom, and a car."
"The republic of Literature,
Science, and the Arts crosses ra-
cial and national boundaries."
Announcement
Published For
Summer School
Many Courses Are To Be
Offered By Schools And
Colleges Of University
The regular abridged announce-
ment of the forty-first Summer Ses-
sion of the University for the sum-
mer of 1934, which has been issued
by the office of Prof. Louis A. Hop-
kins, director, carries a wide range
of courses to be offered to students.
"There will be no curtailment in
the program," declared Professor
Hopkins declared yesterday in dis-
cussing the proposed program. "Work
in the University will be conducted
on the same high plane as before,
and we believe that the enrollment
figure will justify the expansive out-
lay of courses to be offered."
Schools and colleges in which
courses will be offered are the lit-
erary college, the College of Engi-
neering, the Medical School, the Law
School, the College of Pharmacy, the
School of Dentistry, the College of
Architecture, the School of Educa-
tion, the School of Business Admin-
istration, the School of Forestry and
Conservation, the School of Music,
and the Graduate School.
In addition to the courses offered
in these schools at the University,
(Continued on Page 6)
Student Pilot
Escapes Injury
In Plane Fire
PITTSBURGH, Pa., Jan. 5.-()
-Before the eyes of hundreds of ter-
rified witnesses a student pilot bailed
out of his burning plane today just
before it smashed to splinters on one
of Pittsburgh's busiest thoroughfares.
His parachute caught on a tele-
phone pole, 20-year-old George
Yeschke escaped apparently without
serious injury. As the 'chute hung
several feet above the ground he un-
harnessed himself, stepped onto the
roof of a truck, and to the ground.
Although the ship fell on Baum
Boulevard, usually crowded with
traffic, there was no pedestrian nor
automobile in the immediate vicinity.
A fire starting in the cockpit
caused Yeschke, student pilot at a
Pittsburgh field, to abandon ship.

As office workers and apartment
dwellers looked on in horror, the
plane careened and slipped down-
ward against a (business building,
narrowly missing several apartment
-oues

Mad World
Described
By Thomas
Attacks The Laissez-Faire
System Of Capitalism
And Economic Leaders
Socialism Cited As
Only Good Way Out
Says Students Graduating
In 1934 Will Be Thrust
Into Society Of Chaos
By GUY M. WHIPPLE, JR.
The student of 1934 is living in a
crazy world - a crazy capitalistic
world, which, boasting no moral
sanction for its existence, is made
even more laughable by the fact that
it doesn't even tick.
So believes Norman Thomas, No.
1 Socialist of this country, who spoke
last night in Hill Auditorium before
what is believed to have been the
largest Friday night assemblage ever
to hear a speaker. The attendance
was estimated at slightly more than
2,000.
Deviating largely from his an-
nounced theme, "Students and the
Social Revolution," Mr. Thomas al-
lotted the greater part of his time
to a slashing attack on the "institu-
tions" of laissez-faire capitalism-ab-
sentee ownership, breadlines "wading
knee-deep in grain," the Wiggins,
the Mitchells, the Insulls, apparent
tenacity in the midst of economic
breakdown, profit - w o r s h i p i n g,
money-tampering, and munitions-
vending.
Lists Five Ways Out
"Why, we're even so accustomed to
the hell we live in we're uncomfort-
able when told that better conditions
could exist," the speaker emphati-
cally declared.
"There are, as I look at it, only
five conceivable ways out of the
seemingly hopeless mess we're in.
"There is simple recovery --but I
think that's definitely out.
"There is New-Dealism, or liberal-
ized State capitalism,
"Or we could have a good world
war.
"There remain Fascism and So-
cialism, each with its many subdi-
visions of variegated thought. If we
are to have any kind of Fascism, it
must certainly be of an Americanized
version that we can readily fall for.
And the United States could fall for
it, make no mistake. Of course Fas-
cism is merely the last stage of a
decadent and rotted capitalism and
should not be confused with true
schools of political and economic
thought.
"Must Realize Change"
"And so we have Socialism-the
way of common ownership of the
great industries - as our only means
of egress from our economic hole."
That there is still a chance for
the United States, with recourse to a
minimum of violence, to attain a
semi-idealistic goal of co-operation
and sharing in the abundances which
the United States can provide, was
stressed by Mr. Thomas. Profit and
planning cannot be linked, either in
the manner of the Roosevelt Admin-
istration or under any other scheme,
he,said.
We of the 1930's must realize that
there has been a revolution about us,
according to Mr. Thomas. America
has come to the end of an epic, he
declared, and the student who gradu-

ates in 1934 will find himself thrust
into a "disintegrating society," where
a premium is placed on the predatory
qualities of the acquisitive individual.
Criticizes Farm Policies
Capitalism in the United States is
not the roseate thing it might appear
when compared with backward coun-
tries like China, Mr. Thomas af-
firmed. Rather, he said, capitalism
should be regarded as a failure in
this country because it has failed
to rout poverty and lay low the
queues in wait for coffee and dough-
nuts.
A sharp blow at the Agricultural
A d j u s t m e n t Administration was
aimed by Mr. Thomas, who com-
mented on what he called the "folly"
of paying farmers to turn under cot-
ton and cut wheat acreage when
there are still poorly clothed and
starving persons demanding the
means of subsistence.
Mr. Thomas was brought here as
the first speaker in a series of seven
Lague fnr Tndutrial Demvora'I7-

Book Purchasin g Office Here
Is Establishe d For 85 Schools

Great Commotion Over Vote On,
Auto Ban Comes To Standstill,

Washington Highlights
As Liquor Tax Passes
(By Associated Press)
The day in Washington:
House passed bill to raise $470,-
000,000 annually in liquor saxes.
President Roosevelt announced
he would ask Congress to guar-
antee principal as well as interest
of farm and home loan bonds.
Hugh S. Johnson planned to
call in nearly 200 code authorities
next month for corrections and

The commotion over the auto ban
regulation, which reached such a
fever pitch immediately after the all-
campus vote on the subject that the
Undergraduate Council named a
committee to think and talk the mat-
ter over, is now at a point of com-
plete subsidence.'
Members of the Council commit-
tee, which had an informal meeting
once - just after the body's cnnen-

ing. And this won't happen until the
Council has its picture taken for the
'Ensian, an event which is scheduled
to occur some time during the early
part of next week. After that, the
Council, members say, will get around
to serious business.
In the campus poll students in-
dicated that they favored some
change in the present auto ban rules,
hut we ennAflA t o mnt1a. ahni-

By MARSHALL D. SILVERMAN
A centralized purchasing office es-
tablished at the University of Michi-
gan for the purpose of buying books
for 85 American colleges with one
million dollars granted by the Car-
negie Corporation of New York was
described yesterday by Dr. W. W.
Bishop, librarian. Although the of-
fice has existed since 1931, this is
the first time it has been revealed
in the press.
The Carnegie Corporation made
the grants to these colleges - to 11

of the centralized purchasing plan
and are able to secure much better
discounts and service than they
would if each purchased individually.
This factor with the additional sav-
ing in bookkeeping expense saves
many hundreds of dollars annually.
With the resources of the University
Library available, orders can be given
special attention and receive expert
handling. A c c o u n ts have been
opened with 81 book companies.
"Librarians are careful students of
bargains and every day brings spe-

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