The Weather

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Cloudy today wth some rain;
tomorrow warmer with possiby
snow.

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XLIV NO. 91

ANN ARBOR, MICHIGAN. SATURDAY. JANUARY 2 134

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PRICE FIVE 4


New Tax Law

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7M Eh oEI-


Payrolls In Michigan Rise To
Greatest Heigiht Since 19

Aims At Bank

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29

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anipulations

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Morgan, Kahn, Mitchell
And Wiggin Testimonies
Are Drawn On




w Bill To Stop
Evasion Of Taxes


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t Returns For Wife
id Husband To Be One
New Requirements

DETROIT, Jan. 26-VP)--The folks
who buy things are back in the mar-
ket and payrolls in Michigan are
reaching levels unsighted since 1929.
The upswing is paced by the auto-
mobile industry, in which production
estimates are soaring to such dizzy
heights as 200,000 units next month
and 3,500,000 for the year, but other
lines are sharing in the revival of
buyers' demands.
Electric refrigerator manufactur-
ers are stepping up production al-
most daily, with some companies re-
porting the la r g e s t employment
schedules in their history.
A stove manufacturer has more
men on his payroll than ever before.
The lumber industry is experiencing
good times again, and so it is all
along the line, except in a few indus-
trise producing machines, tools, and
other so-called "capital goods." The
surge of new business is least evident
there.
In the automobile industry alone,
it is estimated that 280,000 men will
be at work by mid-February, when
full production will be reached andI
that 75 percent of the men employed

in automobile plants in 1929 will be
absorbed. Other estimates of auto-
mobile employment figures run a
high as 325,000, which would be close
to the 1929 level.
Ford Motor Co. plants here anc
elsewhere now have 92,000 men at
work, a 100 per cent increase over
last year. There are 51,000 men em-
ployed in the Chevrolet plants, anc
43,000 in the Chrysler plant, com-
pared with 22,000 a year ago.
Why this drastic change from de-
pression conditions that prevailed a
year ago?
"The fear stage is past," answers
John L. Lovett, general manager of
the Michigan Manufacturers Asso-
ciation. "Dealers everywhere are
buying in advance of increased prices.
"CWA and corn-hog-cotton money
is getting into circulation, with grad-
ual re-employment adding velocity to
the money. Business is not so good
in capital goods, except in the cheap-
er lines, but it is definitely on the
upgrade in consumers goods. There
is more optimism all along the line
than at any time in the last four
years."

ae
4S
>E
d;
It

Summer Term
Staff To Have
22 New Men
Faculty To Include Some
Who Have Visited Here
In Past Years
Eight To Teach At
Douglas Lake Camp
Thomas Wood Stevens To
Return Here To Direct
Summer Drama Season

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ASHINGTON Jan. 26.-(AP)-Aj
:e tax net spread against thi
practices of some big banks an(
:ers, as unrolled by Senate in.
gators, was reported today to b(
'eal aim of the Administration',
ected new tax law.
beral use of testimony take
J. P. Morgan; Otto Kahn, part-
of Kuhn Loeb & Co., Albert °I
in, one-time chairman of thE
e National Bank; Charles E.
iell, former chairman of the Na-
,l City Bank, and partners o:
n, Read & Co., was disclosed
ae Ways and Means Committee,
p. Robert L. Doughton (Dem.),
the new plan, designed to pro-
about $200,000 more annuall3
lifting some of the burden from
er to larger incomes, probably
I bes reported next Wednesday.
changes remain to be made.
Still Has Data
e committee still had with it to-
.ata from wealthy men and their
investigated by the Senate
ing Committee. Their stories
shown to be impelling motives
iore than one of the prospec-
ax changes.
e affable Morgan told h'ow he
his wealthy partners who paid
0,000 of income taxes in 1929,
:one in 1930, 1931 and 1932 be-
"our capital losses were such as
>re than wipe out all our in-
and leave nothing taxable."
the same years, too, Kahn tes-
he, paicdjo income taxes.
the proposed tax revision the
ion would be changed. Capital
would no be permitted to
out all income. Especially in
ase of partnerships like Mor-
and Kahn's, capital loss de-
ns would be limited to, capital

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Tugwell Claims
Production Cut

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Is Needed Now


Measures Temporary For
Readjustment Purposes,
Claim Of Speaker

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gains.
Sold Stock To Wife
Mitchell told of selling stock to
his wife and subtracting the loss on
his income tax return. Thomas La-
mont, Jr., of the Morgan firm, dis-
closed similar transactions.
The new bill would stop such loss
taking. All husbands and wives will
be required to file joint income tax
returns, among other things forcing
theib taxes into higher brackets.
Wiggin told of forming three per-
sonal holding companies in Canada
and of others in this country, notably
the Shermar Corp., and the Murlyn
Corp. At times they showed millions
in profits.
James V. Forrestal, member of Dil-
lon, Read & Co., also described for-
mation of a personal holding com-
pany to avoid income tax payments
in 1929 on a stock profit of $864,000.
The bill as now written would tax
undistributed adjusted; net income
of such corporations at 35 per cent.
As Rep. Sam B. Hill (Dem.), Wash-
ington, explained it:
Reduce Lower Brackets
"It is believed that the majority of
these personal hoding companies are
formed for the sole purpose of avoid-
ing- the imposition of surtax on stock-
holders."~
At the same time the bill was eased
for many having smaller incomes by
reductions in the lower brackets, but
with taxes going higher on a grad- >ae cl o a d t e hg e
uated scale t o w a r d thc higher
brackets.,
The measure would establish a flatt
f4ur per cent on net incomes up to
$4,.000 -- that is on incomes of that
amount after deductions such as $2,-
500 for being married and $400 for
each dependent had been made. Thet
eight per cent levy on the second $4,-
000 was -limina ted,, and a surtax in- s ild b gn i g a o rp t eta
stalled beginning at four per cent at
$4,000 up to 59 per cent on those ofP
$1,000,000.
Also allowed would be a 10 per centt
reduction on earned income up to
$8,000. Thus if a married man with-
out children made $5,000, he would
first deduct $2,500, and then 10 perl
cent on the remainder -- paying fourC
per cent on $2,250.C
-The Treasury figures all in all tot
get about $1,265,000,000 from income1
taxes in the 1935 fiscal year.

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CINCINNATI, Jan. 26-(IP)-Emer-
gency measures to curtail production,
Dr. Rexford G. Tugwell said tonight,
are far from the basic policy of the
Roosevelt Administration.
Dr. Tugwell, assistant secretary of
agriculture, spoke before a forum
sponsored by the University of Cin-
cinnati.
The Administration, he said, hopes
to readjust agricultural and indus-
trial affairs "in such a way as to
make available to everybody the
benefits and economies of mass pro-
duction."
There has been "no attempt to
bootleg alien political philosophies
into our democracy," he declared.
"Ever since we have had time to
take stock of the first fruits of the
New Deal in action, people have been
anxiously asking themselves where
are we going," he said.
"Some have been induced to be-
lieve by the humanitarian aspects of
the emergency legislation that a
small group of Administrative con-
spirators have been working in the
dark to hand the Country over to
the Socialists. On the other hand,
some have noted the presence in the
Government of many experienced
business executives and have enter-
tained fears lest the NRA should de-
velop into a system of Fascism."
Despite the swift action taken, all
has not been harmony behind the
Washington scene, he admitted.
"It would be idle to pretend that
there have not been strong differ-
ences of opinion as to the type of
action required," he said. "But there
has always been complete unity of
opinion and purpose as to the need
of action, the possibility of action,
and the efficacy of action."

rlome Of Renowned
Author Purchased
For Ford Museum
DETROIT, Jan. 26.--()- Henry
Ford, who believes that the famous
McGuffey readers made the young
student acquainted with the best
literature in the world, is going to
perpetuate the memory of their au-
thor.
The log cabin in which Dr. William
Holmes McGuffey, schoolmaster and
author, was born near Washington,
Pa., is to be added to the Greenfield
village collection of historical shrines
at Dearborn.
Mr. Ford visited the tumble-down
cabin early this month and arranged
for its purchase. Most of the timbers
still are solid, and the structure will
be re-erected at Greenfield Village.
There may be other plans for hon-
oring the memory of Dr. McGuffey,
pointing toward the 134th anniver-I
sary of his birth, next Sept. 28, there
has been mention of a memorial that
might be constructed at the site of,
the cabin, but at the Ford offices it
was said today such plans were in-
definite.
Mr. Ford studied the McGuffey,
reader as a boy, and, although they
have been out of print, he has a set
of six in his library.
He has said that he believes thats
they "gave the child some credit for
intelligence."

Twenty-two faculty members from
other universities will supplement the
regular teaching staff of the 1934
Summer Session. Prof. Louis A. Hop-
kins, Director of the Summer Ses-
sion, announced yesterday.
Of the visiting group, eight will
handle courses at the Biological Sta-
tion at Lake Douglas, three will sup-
plement the teaching staff of the
Law School, and three will be added
to the Library staff.
Thomas Wood Stevens, former di-
rector of the Artist Guild Theatre at
St. Louis, will be back on the campus
for his fourth consecutive year as
director of the Summer Repertory
Players. Alexander Wyckoff, of New
York, will direct stage craft.
Prominent among the men who will
be on campus are Harold Malcolm
Westergaard, Ph.D., D. Eng., Profes-
sor of Theoretical and Applied Me-
chanics at the University of Illinois,
and William G. Carr, Ph.D., Assistant
Director of the Research Division of
the National Education Association in
Washington, D. C.
Others are Louis Wirth, Ph.D., As-
sistant Professor of Sociology at the
University of Chicago, and George
Reynolds, Ph.D., Professor of English
at the University of Colorado.
Vaughn Blanchard, Director of Phys-
ical education in the City of Detroit,
and Paul Washke, Professor of Phys-
ical Education and Director of Men's
Gymnasium at the University of Ore-
gon, will join the staff of the phys-
ical education department.
Those who will supplement the fac-
ulty of the Law School are Hessel E.
Yntema, Ph.D., S.J.D., Professor of
Law at Johns Hopkins University, Al-
bert Charles Jacobs, B.C.L., A.M., As-
sociate Professor of Law at Columbia
University, and Gustavus A. Ohlinger,
A.M., L.L.B., of the Toledo, 0., bar.
Those who will go to the biological
station are William Walter Cort,
Ph.D,. Professor of Helminthology at
John Hopkins University, Charles
W. Creaser, Ph.D., Associate Professor
of Zoology at the College of the City
of Detroit, Ernest Edward Dale,
Ph.D., Assistant Professor of Botany
at Kent College, Frank Caleb Gates,
Ph.D., Professor of Taxonomy and #
Ecology at Kansas State College.
Others are Herbert Baker Hunger-
ford, Ph.D., Professor of Entomology t
at the University of Kansas, Theo-
dora Nelson, A.M., Instructor in Bio-
logical Sciences at Hunter College, I
George E. Nichols, Ph.D., Professor
of Botany at Yale University, and
Lyell J. Thomas, Ph.D., Assistant
Professor of Zoology at the Univer-
sity of Illinois.
Those who will supplement the Li- t
brary staff are Vera S. Cooper, A.M.- 
L.S., Librarian at DePauw University, c
Francis L. D. Goodrich, A.M., B.L.S., i
Librarian at the College of the City
of New York, and Charles B. Shaw,:
A.M., Librarian at Swarthmore Col- t
lege.S

President Planning;
Birthday Address
WASHINGTON, Jan. 26. - (/) -
President Roosevelt is considering a
talk over the air to the people who
will be celebrating his fifty-second
birthday on Tuesday night, but a
definite decision has not been
reached.
It was stated at the White House
today that if the President does talk
he will be impelled by a wish to
acknowledge the national interest in
the effort to stamp out infantile pa-
ralysis.
Proceeds of the thousands of balls
planned in honor of the President's
birthday Tuesday night are to be
given to the Warm Springs (Ga.)
Foundation where the President has
fought his way back to health after
an attack of infantile paralysis.

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Lily Pons Is
Only Singer To
Reach High'F'


The voice of Lily Pons who is to

Inarticulate Wall Street May
Finally Have Found Spokesman


sing here Monday night, soars up
and beyond the highest note of any
of our most famous prima donnas
of this or other days. She can sing
with ease from middle C in the lower
register to A above high C.
All the famous singers of other
days never went beyond a high F in
public. In "Lucia di Lammermoor,"
the much discussed high note of the
Mad Scene as Miss Pons sings it is
F, a whole tone higher than it is
usually sung.
The composer, Donizetti, wrote this
scene in E flat. When he came to
Paris for the presentation of the
opera, he changed the key to F, be-
cause he found a singer who could
take this note. No one else but Lily
Pons could do it.
The smallest of sopranos, Miss

NEW YORK, Jan, 26.-V(P) -Wall
Street, all but inarticulate for
months, wonders whether at last it
has found a spokesman.
The several public utterances of
James P. Warburg in recent weeks
have broken the stillness.
Few leading bankers in Wall Street
in the last few years have been given
to frequent public statements, but the
almost unbroken quiet of several
months had been unnatural. Reti-
cence, in fact, turned to silence as the
gold standard fell by the wayside and
Washington delved ruthlessly into
the banking practices of the boom
era.
It was in November that Warburg,
in an address in Philadelphia, came
out bluntly against the commodity
dollar, and since then he has made a
nmher of iihlic ardroes - nr1

of the dollar, and his proposals for
a "modernized" gold standard could
be considered as acceptable to the
ultra-conservatives of Wall Street
only as compromises, and his state-
ment, "we have a maldistribution of
wealth," tended to place a liberal
stamp upon him.
In his thirty-eighth year, he has
made a strong bid for the leadership
in finance once wielded by his father,
the late Paul M. Warburg, a leader in
founding the Federal Reserve System.
His father frankly deplored the ex-
cesses of 1928-29, and said one of the
great tasks in preventing depressions
was "to sit on the bulges."
James Warburg re-echoed this in
his appearance before the House
Coinage Committee, when he said, "It
is always difficult for a government
or a centra1 h anr to qnnl th hehric


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