The Weather
Increasing cloudiness, some-
what warmer, today; tomorrow
generally fair and colder.

L

it igau

DaitiTOI

Editorials
Taxi Rates In Ann Arbor . . .
Genius Is Among Us...

VOL. XLV. No. 46 ANN ARBOR, MICHIGAN, THURSDAY, NOVEMBER 15, 1934

PRICE FIVE CENTS

Capitalism Is
DoomedSays
Stuart Chase,
Presents Eight Facts As
Basis For Interpretation
Of Present Situation
Says Little Can Be
Done For Change

Presents Second
Of Oratorical
Program

Lecture
Group's

By THOMAS E. GROEHN
Capitalism is doomed and the West-
ern World is in the birth throes of a
new order, is the prediction of Stuart
Chase, noted economist, who ad-
dressed more than 3,000 people last
night in Hill Auditorium. "
"We are entering a period of transi-
tion from private capitalism to some
new system more consistent with the
imperatives of a high energy culture,"
he continued, "and unlike the ex-
ceedingly slow transition when feud-
alism gave way to private capitalism,
this change will be more rapid. Three
hundred thousand horsepower tur-
bines are not as patient as oxen."
Mr. Chase spoke on the "Economy
of Abundance." The lecture was the
second of a series of eight to be pre-
sented by the Oratorical Association.
Presents Eight Facts
As a basis for his interpretation
of the present economic situation Mr.
Chase presented eight basic physical
facts as to things that have happened
or are happening. "With these facts
before us," he said, "we can then try
to find a pattern of interpretation
which, it seems to me, is a prerequisite
to any program for constructive ac-
tion."
The eight major facts listed by Mr.
Chase were: (1) the growth of inani-
mate energy, (2) the growth of in-
vention, (3) the decline in man-hour
costs, while costs in terms of money
have been pegged by monopoly and
waste, and (4) the increase in tech-
nological unemployment.
(5) The network of specialization
which has destroyed local self-suf-
ficiency, (6) the halting of the popu-
lation curve, (7) the development of
the productive plant to a capacity far
in excess of market demand, and (8)
the saturation of foreign trade, due
to the exporting of energy and inven-
tion to so-called backward nations.
Interprets Factors
Interpreting these eight facts, Mr.
Chase stated that energy and inven-
tion have produced an economy of
abundance, meaning that the sur-
plus of factory capacity, of agricul-
tural products, of labor, machines,
crops, and manpower, are a drug on
the market.
"The economy of abundance is
trying to function in the confines
of a financial system laid down when
energy and invention were in their
infancy. The gold standard, the
creation of wealth only through the
creation of debt, the methods where-
by capital is allocated and invested,
the edifice of insurance and savings
based on the law of compound inter-
est - are all scarcity institutions, for-
mulated in an age when wealth was
scarce," he stated.
'Needs Expanding Markets'
The formula of private capitalism,
according to the speaker, demands
continuously expanding markets, and
an expanding capital goods sector. He
further stated that the eight facts
heretofore presented have checked the
rate of expansion permanently.
In lieu of this situation, he con-
tinued, governments everywhere have
been driven to fill the breech left in
business by the depression. "This, in
one sense, is all that the New Deal is,"
he said.
He illustrated this argument by
stating that the collapse of invest-
ment closed every bank in the nation
in March, 1933, and the New Deal
pried the bank doors open with public
credit. The collapse of investment
threw 10 million capital goods work-
er's on the streets. The New Deal is
feeding them and trying to find em-
ployment for them in public and civil
works.
No Arbiter
"If you are disposed to accept my
interpretation," Mr. Chase said, "you
have a right to ask me what I propose
to do about it. I can reply with equal
right that I do not set myself up as
an arbiter of vast historical change.
No one person can do very much

about it - not even Mr. Roosevelt. But
many men and women tn throw

Sieator Keeps His
Nickel And Fools
20 Arithmeticians
Nearly 20 students have tried to
earn the five cents offered last week
by Prof. W. W. Sleator for a "con-
vincing" solution to an arithmetic
problem which appeared in a weekly
magazine - but the professor fooled
them, declared the solutions were not
convincing, and kept his nickel.
Beside the deluge of written an-
swers which poured into Prof. Sleat-
or, several of the more bashful ones
telephoned anonymous solutions. But
they all got the same answer as was
originally given and which the physi-
cist declares is wrong.
The problem was stated as follows:
If one-third of six were three, what
is one-fourth of twenty? The answer
given is seven and one-half.
Professor Sleator humorously de-
clares that those who submitted solu-
tions are poor gamblers. "They have
bet on another man's game," he said,
"I should have intrustedrtheaward
to an impartial third party, and se-
cured the services of a disinterested
third party to pass on the solutions.
As things stand now, I have only to
declare any or all solutions uncon-
vincing and keep my five cents. The
contestants all lost."
Play Production
Will ive 'The
RoyalFamily'
Tickets To Be Placed On
Sale Next Wednesday At
Lydia Mendelssohn
"The Royal Family," George S.
Kaufman and Edna Ferber's play,
will be the second offering of the year
by Play Production and will be pre-
sented Nov. 21, 22, 23 and 24 at Lydia
Mendelssohn Theater.
Tickets for the production will go
on sale at 10 a.m. Wednesday at the
box office of the theater.
"The Royal Family" is under the
direction of Valentine B.'Windt and
William Halstead, Jr., Grad. This is
the first production which Halstead
has directed since he joined the staff'
of Play Production this fall. For sev-
eral seasons previous to the present
one he has served as director of dra-
matics in the schools of Sacramento,
Calif.
Deals With Barrymore
Mr. Windt characterizes the play
as a "comic, highly amusing, farcial
satire on the so-called royal family
of the theater, the Barrymores."
"It is very interesting," he com-
mented, "that it was written by
George Kaufman, one of those rare
men of the theater who has never
written an unsuccessful play. In it,
he is assisted by Edna Ferber, a wom-
an of very considerable importance in'
her own right."
"The Royal Family" is the third
play of Kaufman's to be presented
by Play Production. Last year, the
group gave "Once In A Lifetime," in
which Kaufman collaborated with
Moss Hart, and "Beggar On Horse-
back," by Kaufman and Marc Con-
nelly.
New Play Success
Kaufman's latest play, "Merrily We
Roll Along," is proving to be an out-
standing success on Broadway now.
"The Royal Family," according to
the director, will provide a pleasant
contrast to drabness and semi-tragic
quality of "Street Scene," the last
production of the organization.

Reception By
Glee Club To
Fete Cossacks
To Hold Buffet Supper In
Union After Concert Byj
Russian Chorus
After the Don Cossack Russian
Male Chorus ends its third Ann Arbor
concert Monday, the Varsity Glee
Club will entertain the members
of the Chorus at a buffet supper in
the Union.
The supper is to be a strictly "stag"
affair, according to Herbert Golds-
worthy, '35, president of the Varsity
Glee Club. The Chorus-has requested
the Glee Club to sing several Mich-
igan songs for them, and they, in
turn, will sing any numbers that
the Glee Club desires. The Chorus
is especially interested in having the'
Glee Club sing selections which are
the most nonular with the students,

Taxi Owners Committee Throws Out Ballots In
Say Cut Rate
Was Profitable Sophomore Literary College Vot
Disprove d Argument Are se co
That Present Cab Prices
Are Necessary
Claim Lower Rates .hg OFa
ByHilherWmsB Charges Of Fraud
Attracted Business Achieving The Nadir By Parties Immed
.' Larg-e aare ote In After Polls Close
Council Will Consider New L The action of the sophomores of the literary college in their
ordinance Monday In Enine SchoOo attempt at an election yesterday reached a new point in the asininity Disuted Electio
Ogi eo campus politics. It was a point of dirtiness and cheapness whichs te
Meeting must always be reached when neonie are nlavina the politicians i T"LRr i I

1 U

By PAUL J. ELLIOTT
Disproving the argument that the
present taxi rates are necessary to
profitable cab operation, officials of
three Ann Arbor companies yester-
day disclosed that their firms had
shown more profit during the recent
period of price cuts than they are
now earning with the aid of higher
prices.
Everett Bailey, manager of College
Cab, Kenneth Martin, of Arcade Cab,
and Marion Smith, of Radio Cab, all
declared their business had increased
approximately during that period.
Especially significant was the state-
ment by Bailey that the lower price
rate - 25 cents for one passenger and
35 cents for two to five - had in-
creased business in the middle of thef
week, a normally poor time. He said
that this increase tended to prove
that lower rates were more profitable,
since profits would be steadier over
a week's period.
ThirdReading Monday
The City Council will meet next
Monday night to consider the third
reading of an amendment to the city
cab ordinance which would standard-
ize taxi rates as they are at present
35 cents for one passenger and 50
cents for two to five. Ald. Redmond
M. Burr, chairman of the ordinance
committee, told The Daily last nighti
that the committee would report the
amending ordinance if it were called
upon.
The ordinance was written by City
Attorney William M. Laird. Mr. Laird
said yesterday that he had written
it at the request of Mayor Robert A.
Campbell, but he refused to comment
on it because "it is a matter of pol-
icy."
Campbell Refuses
Mayor Campbell also refused to
discuss the matter.
The 25 and 35 cent rates, accord-
ing to both Bailey and Martin, re-
sulted in an increase in student cab
patronage. Student trade is esti-
mated by these operators as more
than 75 per cent of their total busi-
ness.
They further said that the vast
majority of students used, cabs for
short trips, and that the low rates
would increase this important part of
their trade.
Gargoyle Tryouts
Called For Today
Second semester freshmen, sopho-
mores, and juniors interested in work-
ing on the Gargoyle are requested to!
attend a meeting at 8 p.m. today
in the Student Publications Building.
The meeting will be held for tryouts
of both the editorial and business
f caff ofthumncarin Thar is

Booth Gets Presidency
Medical School; Cox
Architectural College

In
In

-F ,n
on this campus are, a dirty game. Someone is going to be a little,,
cleverer, and therefore a little dirtier, than anyone else. And the
people hurt by the cleverness are going to retaliate in kind - the
dirty kind.
It is foolish to say that this incident will serve as a lesson to
other classes, and that in the future there will be no repetition of
yesterday's mess. Politicians never learn. No matter how penitent
thev are the morning after. let another election come along and

1 0 ."C leti UIL

e
Made
liately
)n
Cater

Definite Proof Of Illegal
Voting Obtained Against
Eight Men Students
By JOHN HEALEY

The entire slate of the Consolidated
Engineers was carried to victory over
the State Street party with sweeping
majorities for all offices.
Don Hillier, Delta Kappa Epsilon,
was elected president of the class with
a 49-vote majority over Joe Komp-
ton, Independent, 80 to 31; for the
office of vice-president, Ralph Smith,
Independent, beat out Miller Sher-
wood, Sigma Phi, 63 to 48. A 39-vote
majority gave the office of class sec-
retary to John Ingold, Independent,
with 71 votes, over Edward Vander-
velde, Independent, who received 32
votes. Paul Nimms, Independent, was
elected treasurer over David Eisend-
rath, Independent, 70 to 32. The posi-
tion on the Honor Council went to
Chuck Holkins, Theta Xi, with 61
Votes while his rival, Bob Daily, Psi
Upsilon, received 42 votes.
Close Ballot
The sophomores in the Medical
School elected George T. Booth to
the presidency with 50 votes over
Benjamin R. Zwaluenwenburg, who
received 49 votes. John A. Cetnarow-
ski defeated Harry Y. Kasaboch for
the vice-presidency, 49 to 48. A single
vote also separated the rivals for
class secretary with Amy S. Barton
defeating Fred Zaff 48 to 47. A 12-
vote majority made Leon Greenspan
treasurer over Hillis D. Rigterink, 56
to 44. Robert H. Cummings received
the position on the "°Ionor Council
over Mervin E. Green, 58 to 38.
Arch Seniors Vote
There was no sophomore election
in the Architecture school but the
seniors balloted yesterday to put Fred
M. Cox in the office of president over
Don Lyon, 16 to 15. Frederick H.
Graham beat out Vernon C. Tree
for the vice-presidency, 20 to 11. A
13-vote majority enabled Richard M.
Robinson to get the office of secre-
tary over David J. Heisler, 22 to 9.
Samuel Scheiner won the election for
treasurer with 16 votes to Allen F.
Foss' 15.
Ruthven Will Attendj
Columbus Convention
President Alexander G. Ruthven
leaves Ann Arbor this morning for
Columbus, O., where he will attend
the convention of the Association of
Executive Boards of State Universi-
ties and Allied Institutions.
He will also address the assembled
delegates to the annual convention.
It is reported that Dr. Ruthven willl
present to the convention membersl
some of his opinions on the proper1
retirement age for faculty members
and provisions for their absolute se-f
curity before and after that age.

L1ry L 1G11L11 Ag L, L
they will be right back in the mud
for Michigan politics is naive. The
are rotten now, and, if unchan
years to come.
There is really only one way t
The Daily has suggested previous
elections and useless offices. No o
and all other ways are merely con
useful purpose, and in the cases
and the senior presidency this is
appointed to receive petitions fron
who, in the opinion of this board
positions. This will abolish the use
merit system for the selection of
The matter is squarely before
organization can either meet the
petent student government body
and pray the same situation won't h
get at the root of the trouble by
elections or it can weakly and stt
another time." The issue before tl
meets that issue may depend, to
Council itself.
Opera Poster Contest
Will Close Tomorrow
All posters that are to be sub-
mitted in the Union Opera poster
contest must be in the hands of the
committee by 3:30 p.m. tomor-
row in Room 345 of the Architec-
tural Building it was announced
today by the committee.
Meetings of the cast of the Un-
ion Opera will be held at the fol-
lowing times and places today:
Group III and IV at 4 p.m. in the
small ballroom, and Group II in
Room 302 of the Union.I
President May
Enact Social"'
Insurance Law
RooseVelt Outlines Pl a nI
For System To Relieve
Unemployment
WASHINGTON, Nov. 14. - VP) -
President Roosevelt and his chiefs of
labor and commerce tonight recorded
themselves in favor of a broad pro-
gram of social security embodying un-.
employment insurance.
The President outlined to a group
of experts for incorporation into a
definite plan the broad principles of
such a program.
For the immediate future, the plan
outlined by the President called for:

ainVL111. To trust in alr fut After what was described by offi-
Iagain. To trust in a nobler future cials as the "dirtiest electio in the
y have been rotten in the past, they iion e
ged, they will be rotten in the ,history of class politics," the entire
vote in yesterday's sophomore election
i in the literary college was thrown out
o end this sort of stuff. That, as by the judiciary committee of the
sly this year, is to abolish all class Undergraduate Council last night.
ther way will be half so successful, Immediately after the polls were
mpromises. If some offices have a closed both parties preferred charges
of the class dance chairmanships with the judiciary committee, includ-
the case, then a board should be ing such items as general voting by
m candidates and to appoint those proxy, voting from one to four times,
, possess the best qualities for the having freshman pledges vote for
less officers and -substitute a sane, sophomores, and illegal electioneering
h in the vicinity of the polls.
the necessary ones. PofOtie
{{ Proof Obtained
the Undergraduate Council. That Definite proof of illegal voting has
matter as a courageous and com- been btainedby t iar on-
or it can merely dodge the issue mittee against eight men students.
happen on the next occasion. It can They will be called before the con-
attacking the present system of mittee for disciplinary action.
upidly say, "Well, we'll try again According to Carl Hilty, '35, presi-
he Council is plain. In the way it dent of the Council, the election will
a large extent, the future of the be held at a later date, to be de-
cided in the future.
Joseph Hinshaw, '37, caucus chair-
Smanof the State Street party, issued
l lel oIa statement last night saying that,
Sheldon W il! "The State Street party of the soph-
omore class charges that Al Me-
Give Address Combs, designated by the Undergrad-
uate Council to assist in the conduct-
ing of sophomores elections in the lit-
Here Tonight ' erary college, was guilty of misman-
agement. The party intends to bring
this matter before the Undergraduate
S.C.A. Sponsors Speech On Council and ask that McCombs either
kFor A Warless give a satisfactory explanation of his
'Outlook Fconduct or be properly censored by
World' that body."
I___Woman Figures
Dr. Charles M. Sheldon, world fa- Hinshaw's charge refers to an in-
mous author and lecturer, will speak cident in the day's voting when Mc-
on "The Outlook For A Warless Combs, according to Hinshaw, was
World," at 8 p.m. tonight in Hill willing to permit a woman voter to
Auditorium. He is appearing under cast a vote for an absent friend. This
the auspices of the Student Christian is against the regulations. McCombs
Association and will be introduced by contends that he did not know the
Prof. Preston W. Slosson of the his- woman desired to cast a proxy vote,
tory department. and, as soon as he did know this, he
refused to permit her to cast more
Richard S. Clark, '37, who is head- than her own one vote.
ing thercommittee in charge of the The matter was brought before an
program, stated that Mrs. Eleanor informal meeting of some members of
Doty will play a brief organ recital the Undergraduate Council last night,
starting at 8 p.m. and Dr. W. P. where it was dismissed without much
Lemon, minister of the Presbyterian comment, and where, McCombs
Church, will also appear on the pro- claims,.he was exonerated. Hinshaw
gram. I last ni ht said this was not an offt-


On Lecture Tour
Dr. Sheldon is on a lecture tour of
the Midwest. He spoke at Wayne
University lat night, and after his
stop in Ann Arbor, will proceed to
Chicago.
In the field of publications Dr.
Sheldon first became famous with his
book, "In His Steps," which is sec-
ond only to the Bible in the number
of copies sold. In 1900 he edited the
Topeka Capital, the circulation of
which increased from 12,000 to 367,-

sLafis of hLe magazine. rei. er s a 1
large variety of types of work offered MARKET YIELDS SLIGHTLY
on both staffs.
Those interested in cartooning, NEW YORK, Nov. 14 -(P)- De-
photography, and writing of all kinds ' mand for stocks was selective today
are urged to tryout and to bring in and the market as a whole yielded'
any work of the above types which a little more of the ground won on
they may have completed. last week's broad advance.
Credit Association Head Tells
Reasons For Failure Of NRA


Two reasons for the failure of the
NRA to achieve complete success were
stated by Henry H. Heiman, execu-'
tive manager of the National Asso-
ciation of Credit Men, in a special
lecture on "Recovery and the New
Deal" given to students of the School'
of Business Administration yesterday
morning in Angell Hall.
"Many of the- large industrialists
were so greedy," he said, "that they
,tried to take advantage of the price-
fixing privileges under the NRA to
earn for themselves extremely large
profits in a short time. They advanced
prices so fast and so far that con-
sumers refused to buy, and therefore
industry which started in 1983 with a

pulsiveness and short-sightedness off
local leaders. -
Heiman spoke of the monetary pol-
icy of the United States as "one we
should view with grave concern in-
asmuch as our present method is to c
monetize debts instead of property.
Before the depression money was
loaned on property or bank credit cur-,
rency based on property values. To-
day currency is based on government
bonds, which in truth are nothing
but debts."
Speaking of the merchant marine,c
Heiman pointed out reasons why it
should be subsidized by the govern- E
ment to back up the navy in case of
war. He said he has come into con-
tact with the merchant marine sub-

Unemployment insurance of a co- 000. In 1919 he was appointed editor-
operative Federal state form; the in-chief of the Christian Herald and
funds to be held and invested by the held this position for five years. Since
Federal government; the finances to 1925 he has been one of the principal
be administered by the states. contributing editors of that periodical.
Enactment of state laws to carry Has Many Writings
out such a program. A total of 42 books have been writ-
An effort to bring the persons now ten and edited by Dr. Sheldon. His
on relief rolls back into productive writings, of which "In His Steps" is
employment and thereby put thetn the most famous, include "The Twen-
under the insurance system. tieth Door," 1893; "His Brother's
From a long-range standpoint, he Keeper," 1895; "The Wheels of the
proposed: g Machine," 1901; "The Everyday
A unifo-m system to provide se- Bible" 1924; and "Two Old Friends,"
cu y forythe aged. 1925. He has edited "The War Ship
A method, perhaps through insur- Builders," 1921; "Jesus Is Here,"
ance, for providing against the eco- 1913; and The Treasure Book,"1930.
nomic loss due to sickness.
In a brief talk, the President out- Many Show Interest
lined these objectives to his committee N
on economic security and its newly- In Newest Magazine
created advisory council. He turned

cial meeting and he would demand
that the Council take the matter up
more completely at a later date.
Both Thomas Ayers, '37, and Hin-
shaw, chairmen of the Washtenaw-
Coalition and State Street parties
respectively, stated that as the elec-
tion was ruled illegal on both sides
it should be called "no vote."
Further activities, which, though
not expressly forbidden, contributed
to the complexion of the election in-
cluded the issuing of a false plugger
by one party calculated to confuse
voters of the opposition. There were
also two cases in which rivals came
to blows in the vicinity of the polls
as nominating excitement .reached a
climax.
Drastic Action Threatened
Any repetition of such conduct at
the re-vote will result in the entire
election being ,cancelled and the
sophomore class being forced to go
throughout the year without officers
or the traditional Sophomore Prom,
Council members stated.
Spurred by violations of the rules
which have been observed in all
classes and came to a peak in the
sophomore balloting, Hilty announced
last night that the Council is at pres-
ent working on a plan to reform the
entire electoral system in the liter-
ary college. It had not been expected
that the proposal would be announced
until later, but continued infractions
have forced the council to take defi-
nite action.
The reform plan originated with
George Lawton, '35, president of the
senior class, and Council members.

over to them the job of shaping into{
a weapon for a "bold stroke" towards
economic security the hundreds of
proposals that have been presented
during an all-day session.

More than 500 students have in-
dicated their interest in the new stu-
dent literary magazine, "Contempo-
rary," by signing prospectus sheets
distributed on the campus.
According toN at Kraman. '36