THE MICHIGAN DAILY
FRIDAY, OCTOBER 5, 1934
Destruction Caused By Fire At Nome, Alaska
Of Sea Service
Reduction On 'Subsidies'
To Ocean Mail Carriers
is Looked For
WASHINGTON, Oct. 4-- (A) --The
Post Office Department opened ex-
haustive hearings today which it
hopes will point the way to an annual
saving of at least $10,000,000 in car-
rying Uncle Sam's niail abroad.
Ordered by Postmaster General
Farley, upon the direction of Presi-
dent Roosevelt himself, to appear and
show cause why their contracts
"should not be modified or cancelled,"
32 ocean mail and four foreign air-
mail carriers will be questioned on
the use they have made of the $32,-
000,000 a year the government has
been paying them for their services.
Most of this outlay-$312,684,394
for the steamship companies alone
under their 10-year contracts-is ad-
mittedly subsidies for developing the
American merchant marines and for-
eign air service. While it is consid-
ered virtually certain some sort of
subsidy for those purposes will still
be provided, there is a strong move
to divorce it from the mail carrying
Thus the postoffice department es-
timates that whereas it costs more
than $26,000,000 last year to have its
mail dispatched on ships, the cost
would have been only around $3,000,-
000 on a straight-out weight basis.
The projected remoulding of the
ocean-foreign airmail machinery fol-
lows last winter's spectacular shake-
up in the domestic airmal service.
Farley has said that around $9,000,000
a year is being saved as a result of
that move. It arose out of hearings
last fall and winter by a special sen-
ate committee headed by Senator
Black (D.-Ala), which also question-
ed these same ship carriers.
Used For High Salaries
The ocean mail contracts were let
under the 1928 Jones-White Mer-
chant Marine act, on condition that
so many new vessels be built. The
senate committee reported that in
many cases the government funds
had not been used for new ships but
for high salaries and dividends.
Postoffice investigators, who like-
wise have been inquiring into the con-
tractors' book for months, reported
that only 32 new ships had been built
and that more than $120,000,Q00 of
the $121,000,000 they cost was bor-
rowed from the government. The
senate hearings brought out that the
ship operators in some instances, at
least, were greatly behind in pay-
ments on these loans.
The operators contended the de-
pression and reduced foreign trade
had made it impossible for them to
expend their fleets or operate profit-
The postmaster general must re-
port to the President by Dec. 11, with
Gives Startling Testimony'
Inaugurating a new policy of in-
viting a member of the faculty dis-
tinguished in research to deliver a
public address each year, the English
Journal Club has invited Prof. Louis
I. Bredvold to speak at the first meet-
ing Oct. 12, at the League.
Members of the faculty and of the
graduate school are especially invited
to come, as is the general public.
"The Influence of Platonism on Neo-
Classical Aesthetics" will be the sub-
ject of Professor Bredvold's address.
The English Journal Club is an or-
ganization of graduate students in
English formed last year for the pur-
pose of discussing problems connected
with research in literature, language,
and literary history. Prof. H. Mum-
ford Jones, secretary of the club, re-
quests that graduate students in Eng-
lish who are not now members, turn
in their names and addresses to him
at their earliest convenience.
At a business meeting held last
Tuesday, Leo Kirschaum was elected
president. Harvey Webster and Paul
Leedy were elected to the executive
committee. Regular meetings of the
organization are held on the second
Friday of each month during the
SALVATION ARMY MEETS
The Salvation Army will hold three
special meetings at the Salvation
Army Citadel, 220 East Washington
St., Friday, Saturday, and Sunday,
under direction of Col. Richard Adby
-Associated Press Photos
These pictures, the first of the fire that leveled the famous Alaska gold mining city of Nome, show graph-
ically the smouldering ruins of what a few hours before had been a prosperous community. At the top three
volunteer firemen are shown making a valiant effort to halt the march of the flames with streams of water,
bucket brigades and even dynamite. Below is a view of a devastated area of the city.
-Associated Press Photos
When Maria Caillot (above), French
maid employed by Mrs. Gloria Morgan
Vanderbilt in Paris, took the stand in
New York in the hearing by which
Mrs. Vanderbilt hopes to regain cus-
tody of her heiress daughter, her tes-
timony was so startling that the court
considered barring the public from
U. S. And Canada
War On Smuggling
TORONTO, Oct. 4-(P)-The
Globe today in a special dispatch
from its Ottawa correspondent says
Canada and the United States have
agreed to co-operate in preventing
illicit liquor traffic across the border.
Smuggling of liquor from the
United States into Canada has been
the subject of conferences betveen
officials of the two countries with
Maj. Gen. J. H. MacBrien, royal
Canadian police commissioner, rep-
resenting the Dominion.
Spirits seized recently have been
the product of illicit stills, the Globe
adds: "The question of reducing ex-
cise duty on alcoholic beverages is
receiving the attention of the Dom-
inion government. It is urged the
reduction in tax would take the ele-
ment of profit out of smuggling. On-
tario and-some of the western prov-
inces have requested the government
to cut the tax, but the decision of the
Ottawa government will not be made
known until the budget is brought
Trial Is Ready
F or Opening
AT THE MICHIGAN
.*"THE DRAGON MURDER
PLUS - FOUR ACTS
The current program at the Michi-
gan Theatre has moments that are
good, but these are so few and far be-
tween tlat the general caliber of the
'show is only mediocre. The stage
show is passable. The four acts con-
stitute an acrobatic team whose tricks
have a spark of originality, but whose
attempts to humor are sickening; a
young violinist of no mean talent; a
comedy team of the Mutt and Jeff
variety (it could be a lot worse); and
the Six Lucky Girls, who have a good
dancing act, including another violin
player that adds quite a bit to the
"The Dragon Murder Case" is de-
cidedly below the S. S. VanDine-
Philco Vance standard, and although
the idea behind it is a bit different
from its predecessors, there is noth-I
ing unique, new, or praisewoy thy Fraud Trial Is 'My Show,'j
about it. The mystery is brought
about by the fact that a man dives He Tells Rporters At
into a swimming pool and disappears. Jury Selection
Philo Vance (Mr. Warren Williams ;
this time) hears about it, and decides CHICAGO, Oct. 4-- () - Samuel
0 become interested in it. He goes.
through his usual tricks in exposing Insull says he is ready "for every-
the culprit who did the dirty work. thing."
He is aided by the famous Sergeant As the aged defendant, now 74,
Heath with his very boring humor, steeled himself today to listen to the
and the coroner of the former Van-!
There is no increase in
price on Football Days
Next to Michigan Theatre
Dine mysteries. But, although there
are the customary incompatible sus-
pects present, all of whom could have
been the murderer, one doesn't seem
to care much which one it is. The
plot .is unfurled so methodically and
without any spirit whatever, and the
actors go through their motions so
mechanically that little interest is
aroused in the picture. Better luckj
next time, Mr. VanDine and Mr. Uni-
-C. B. C.
Member Of Manila
Maximino G. Bueno, who was
graduated from the University in
1928, isea member of the Philippine
constitutional convention now sitting
in Manila, it was announced yester-
day from the offices of the Bureau of
Mr. Bueno, who represents the
province of Ilocos Norte, was a mem-
ber of Alpha Nu and Alpha Kappa
Delta while on the campus here. He
served on the board of directors of
the Cosmopolitan Club, and was gen-
eral chairman of International Night
in 1929. He received his M. A. in
political science in 1929.
The convention is charged with the
duty of drafting a constitution for
the Philippine commonwealth under
the Tydings-McDuffie act, passed by
Congress last year.
Children in need of physical atten-
tion will be benefited by a card party
to be held Friday, October 5, at 8 p.m.
at Jones School. Educational films
are also to be purchased with the
proceeds. The party is being sponsored
by the parent-teacher association of
A variety of card games, as well
as many active games such as ping-
pong and shuffle board, will be played.
Mr. L. H. Hollway, director of phys-
ical education of the public schools, is
in charge of the games. Prizes are to
be awarded to men and women hav-
ing high and low scores and to those
holding lucky door numbers. Re-
freshments will be served.
Tickets may be purchased for 25
cents from Mr. John Roof, chairman
Votes On Extra
One of the iost important actions
to be taken by the Washtenaw County
Board of Supervisors when it begins
a busy ten day session Monday will
be the approval or rejection of budget
requests from county officials exceed-
ing the sum allowed for the current
year by more than $30,000.
These requests, which have beenj
made to the budget committee, totalI
$271,585. The actual budget for the
fiscal year which ended Sept. 31, was
The amount asked for is still un-
der the $317,830 allowable under the
15 mill amendment.
A request for funds from the coun-
ty welfare board will also be present-
ed. While $122,000 was voted for that
purpose last year, only $65,000 was
NEW CARS FOR TAXI SERVICE
H SM M H E
government's renunciation of him as'
the central figure in a gigantic scheme
to defraud investigators in the sale
of Insull stock, he appeared to be in
better physical condition than at the
opening of the hearing.
This was indicated Wednesday
when the jury-12 men and 2 alter-
nates-was selected to try Insull and
his 16 co-defendants. He appeared
less tired and said he had slept well.
"Things," he said, "are going all
right, I think. I'm feeling fine and
I'm satisfied, thus far."
He exchanged notes with his son,
Samuel Insull, Jr., one of the de-
fendants, and gave, every indication
he would make many of the decisions
on the conduct of the trial in the
manner in which he conducted his
business when he was the ruler of one
of the world's largest utility empires.
He seemed to be functioning once
more as he did in the days when he
was "chairman of the board," and as-
serted he would attend every session
of court until the ultimate result is
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