P wha ate The Weather ossibly cloudy and some- tt colder Saturday; moder- ,wlnds.I Afrl ijattu 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-