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January 07, 1936 - Image 1

Resource type:
Text
Publication:
The Michigan Daily, 1936-01-07

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The Weather
Snow flurries, much colder
today; tomorrow, fair.

YI e

Sir gan

Iati

Editorials
Stat4 Of The Union . .
Dempsey's 'White Hope' .. .
More Than Words Needed...

VOL. XLVI No. 71 ANN ARBOR, MICHIGAN, TUESDAY, JANUARY 7, 1936

PRICE FIVE CENTS

i

Wolverine Rallies
Fail As Hoosiers
Win Opener, 33-27I

i

AAA Death Supreme Court Blasts New Deal
Complicates
1937 Budget With Decision Invalidating AAA;
Already Uiibalanced By At
Plans Further Muddled!A mnsrtoLed sSt ne

d1

Huffman Stars In Revenge
Game With 10 Points;
7,500 See Contest
John Townsend
Goes Out On Fouls
Indiana Uses Fast Break
On Offense; Wolverines
Falter Near Finish
By RAYMOND A. GOODMAN
With memories of a fumbled foot-
ball lingering in his mind's eye Ver-
non Huffman, Indiana quarterback
and guard, turned in a sterling defen-
sive performance and piled up 10
points to lead the Hoosiers in a 33
to 27 victory over the Michigan bas-
ketball team last night in Yost Field
House. The 1936 Big Ten opener was
played before a crowd of 7,500 per-
sons, the largest since the title win-
ning days of '29, last night at Yost
Field House.
It was the Wolverines' first loss in
eight starts this season.
After staging two thrilling rallies
in the second half to overtake the
Indiana five and coming to within
two points of the Dean-coached
team, the Wolverines l6st the serv-
ices of John Townsend, whose pass-
ing and defense work had kept them
in the ball game for 35-minutes,
bogged down and allowed the Hoo-
siers, using a fast break to excel-
lent advantage to win by a com-
fortable margin.
A Hint From Hinkle
The Hoosiers, taking a hint from
Coach Tony Hinkle and his Butler
quintet, checked Michigan in the back
court and kept the Wolverines from
coming down the floor and working
any set plays around John Town-
send. Follpwing out this policy, even
when Michigan had passed the 10-
secood line, the Indiana defense
played so close to George Rudness,
Earl Meyers, Dick Evans and Herm
Fishman in Michigan's back line that
they were unable to get any clear
passes in to their pivot men.
John Townsend, Rudness and
Fishman led Michigan's scoring with
six points each, while Huffman head-
ed the visitors. Fishman, coming
into the game late in the second
half, went to work from far out on
the floor with Indiana at the long
end of a 27 to 20 score and hit three.
long shots to bring Michigan within
two points of the winners.
A Duel Is Fought
The long-heralded duel between
John Gee and Fred Fechtman, the
two six-foot nine-inch centers, cen-
tered largely in the tip-offs which
Gee controlled after losing the first
two. Early in the game it seemed
as if Fechtman would have it all his
own way around the backboards but
soon John Townsend and Gee kept
the Indiana pivot man from getting
in close enough to be effective.
The Hoosiers' guards, Huffman and
Walker, showed themselves to be one
of the best defensive pair that the
Conference has seen in many a year. j
deserving of rating with or even over
Chub Poser and Gilly MacDonald,
Wisconsin's All-Conference guards of.
1935. Not only did they play an
untiring defensive game but they
counted for half of Indiana's points
and were always on the backboards.
Chelso Tamagno, the Wolverine
captain who suffered an injured leg
muscle in the Butler game last Thurs-
day, was forced to watch his team-
mates lose from the bleachers. Dr.
Frank Lynam said that there was
(Continued on Page 3)
Box Score

BULLETIN

Decision Eliminates ..
$1,076,343,000 Sum Dean Bates Concurs With Minority

Fire of as yet undetermined origin,
rioin .n tr4rnnmn l, I-t ink.14rn nnnniwaA

i

Tribunal Brands Program
Encroachment On Rights
Reserved For States

by the University City Sales and
Service garage at 319 W. Huron St., Roosevelt Leaves Request I
early this morning completely de- For Rief A > r
ForReiefAt-to riation

Holding Court Overstepped Bounds

stroyed the front of the garage and
ears and equipment in it, and en-
dangered two other garages, Yahr
Bros. Auto Storage and Associated
Motor Services, on either side of the
blaze.
The alarm was given shortly after
midnight, and the two-story facade
of the building was completely ablaze
when the fire department arrived.
George Tasch, owner and operator
of the garage, said that it contained
more than 50 cars, of which nearly 15
were new. He estimated their value
at $20,000, but said that only the
cars in the show window had been
damaged. The building, owned by
Artificial Ice Company, he valued
at $40,000.
A loaded gasoline truck and used
cars in the rear of the garage were
not endangered by the flames. Dam-
ages to a number of used cars owned
by Associated Motor Services, kept
in the basement of the University
City Garage, were not known, but it
was feared that they had been dam-;
aged by water seeping through.
'Ruddigore' To
Run Four Days
Starting Jan. 15
Play Production Will Give
Operetta In Cooperation
With School Of Music
"Ruddigore, or the Witch's Curse,"
a Gilbert and Sullivan operetta, will
be Play Production's second offering
of the year, opening Wednesday, Jan.
15, at the Lydia Mendelssohn Theatre
for a four-day run.-
The operetta will be given in con-
junction with the School of Music
and the Physical Education Depart-
ment, with Prof. David Mattern of
the School of Music in charge of the
orchestra and Miss Ruth Bloomer of
the physical education department
directing the dance choruses. This
is the fifth musical production in
which the three departments have
combined.
Valentine B. Windt, director of
Play Production, will direct the show,
and costumes for the cast of 50 will
be designed by James V. Doll and
executed by Mrs. William Doll. Oren
Parker, stage manager for Play
Production, is designing the sets.
"Ruddigore" is a satire on the type
of comic operas which were being
produced at the time when Gilbert
and Sullivan were writing. "Ruddi-
gore" ran for 300 performances when
it was first presented but its popu-.
larity was eclipsed because of the
praise accorded "The Mikado,"
which directly 'preceded "Ruddigore."
The box office at the Lydia Men-
delssohn will open to sell tickets for
the production at 10 a.m. next Mon-
day, although mail orders will be
accepted now at the Laboratory
Theatre. The evening performances
will begin at 8:30 p.m., and a Satur-
day matinee will be given at 2:30
p.m.
Cross Leaves To Give
Drake Case Testimony
Prof. Arthur L. Cross of the his-
tory department left yesterday after-
noon for Chicago to appear as the
government's chief witness against
41 persons in the Sir Francis Drake
case. All are charged with being ac-
cessories to the crime for fraud for
which Oscar Hartzell was convicted
in 1933.
Hartzell was sent to a federal pen-
itentiary after his trial in Iowa City
for falsely obtaining funds under
the pretense of being a descendant

of Sir Francis, famous English "sea-
dog," whose fortune Hartzell said he
intended to recover.
Professor Cross also testified at
the original trial. His testimony

Out Of Message Court

Thought Act Was

WASHINGTON, Jan. 6.-- UP) -
President Roosevelt's financial budget
for 1937, unbalanced by at least a
billion dollars, was blasted into new
uncertainty today by the Supreme
Court's death-blow to the AAA

Unwise, In His Belief;
Stone Heads Dissent
By FRED WARNER NEAL
The Supreme Court majority, in

I

invalidating the Agricultural Adjust-
Even as the reading clerks of the ment Act, looked beyond the face of
House and Senate droned through the the law into a field where it has no
Chief Executive's communication, the business in being, Dean Henry M
Court swept away the source of an Bates of the Law School, constitu-
estimated $1,076,342,000 in revenuesty.
over a two-year period, by invalidat- tional authority, declared last night.
ing the processing tax. Dean Bates, commenting on the
high tribunal's decision on the basis
New Dealers Seek Funds of brief reports of the text of the
Immediately, President Roosevelt decision, said he agreed with the
and his aides decided to seek funds minority - Justices Harlan F. Stone,
to pay off existing AAA benefit pay- Benjamin F. Cardozo and Louis D.
ment contracts. Unofficially it has Brandeis.
d been estimated that $500,000,000 The minority opinion, ruling
would be required. Before the court's against the Hoosac Mills, plaintiff in
decision, Mr. Roosevelt mentioned the the case acted on by the Court, held
possibilities of new taxes in this re- that the majority had no right to,
gard. He had included the AAA in view future possibilities of the act,
the "regular" budget, Dean Bates explained. "I agree with
Surprising many, the Chief Execu- the minority," he said. "The Court
tive also left open in his budget duty is merely to see whether or not
message the amount of money to be an act of Congress is compatible
asked for relief, with the Constitution."
Submitting only a partial estimate Taxing Power 'Unwise'
for relief costs, he placed a $1,098,- T
000,000 minimum on the 1937 deficit, The decision of the Court declar-
as compared with a deficit of $3,234,- ing the AAA unconstitutional, read
000,000 now estimated for the current by Justice Owen J. Roberts, was
fiscal year and an actual deficiency of I probably influenced by a belief of
$3,575,000,000 in the fiscal year which the justices that such a taxing pow-
ended last June 30. er as the processing taxes was merely
In both the message and a supple- unwise; that it might be used in the
mentary press conference, he main- future for an invalid purpose, the
tained that estimated revenues will dean declared.
be enough to cover all expenditures Justice Roberts asserted in the ma-
then contemplated except those for jority decision that "If the act be-
relief. fore us is a proper exercise of the
Billion Left For Relief Federal taxing power, evidently the
For relief he tentatively allotted regulation of all industry throughout
$1,103,000,000ofunexpededprev the United States may be accom-
', ' o e d ousplished by similar exercises of the
appropriations, adding that two same power . . . The power of tax-
months hence, when the situation can ation which is expressly granted,"
be gauged, he will submit additional the Court continued in discussing the
estimates. "general welfare clause" of the Con-
Subject, therefore to the' increasegerawlfecau"ofteCn
inureljefxpendifuresotheCineE-Istitution, "may, of course, be adapted
in relief expenditures, the Chief Ex- as a means to carry into operation
ecutive estimated 1937 receipts at $,- another power also expressly granted,
654,,000000 as compared with $4,410,- but resort to the taxing power to
000,000 for the current year, and ex- effectuate an end which is not legiti-
penditures at $6,752,000,000, as com- mate, not within the scope of the
pared with $7,645,000,000 for the Constitution, is obviously inadmis-
present year. sable."

2. "The constitutional power ofj
Congress to levy an excise tax upon
?he processing of agricultural pro-
ducts is not questioned."
The "general welfare clause," sec-
tion eight, article one, of the Con-
itution, reads: "The Congress shall
have the power to lay and collect
taxes, duties, in posts and excises to
pay the debts and provide for the
common defense and general welfare
of the United States . . ."
As a further example of Justice
Stone's criticism of the court's de-
cision, Dean Bates pointed to that
part of the minority opinion which
reads: "The suggestion that it (the
government power of the purse) must
now be curtailed by judicial fiat be-
cause it may be abused by unwise
use hardly rises to the dignity of ar-
gument."
i Members of tne political science'
department pointed out that the
three dissenting justices - Stone,
Cardozo and Brandeis - are the
three "regular liberals" of the Su-
preme Court bench. As an example
REQUIEM
WASHINGTON, Jan. 6. - () -
Highlights of the Supreme Court's
majority opinion today invalidating
the AAA.
Congress has no power to enforce
its commands on the farmer to the
ends sought. by the Agricultural .Ad-
justment Act.
It must 1llow that it may not in-
directly accomplish those ends by
taxing and spending to purchase
compliance.
The Constitution and the entire
plan of our Government negate any
such use of the power to tax and to
spend as the act undertakes to au-
thorize.
The act invades the reserved rights
of the states.
It is a statutory plan to regulate
and control agricultural production,
a matter beyond the powers delegated
to the Federal Government.
* * * *
The regulation is not in fact vol-
untary.*** * But if the plan were
one for purely voluntary co-opera-
tion itrwould stand nobetter so far
as Federal power is concerned. At
best it is a scheme for purchasing
with Federal funds submission to
e Federal regulation of a subject re-
served to the states.
If the act before us is a proper ex-
ercise of the Federal taxing power,
evidently the regulation of all indus-

1
t
1
/
1
1

of their liberal sentiment, they quot-
ed from the minority report: "Courts
are not the only agencies of govern-
ment that must be assumed to have
capacity to govern. Congress and
the courts, both, unhappily, may
fa'ter or be mistaken in the per-
formance of their constitutional
duty . . . that the power to tax and
spend includes the power to relieve
a nation-wide economic maladjust-
ment by conditional gifts of money."
They called attention, however, to
the fact that these same "liberals,"
joined by Chief Justice Charles Ev-
ans Hughes and Justice Roberts, did
look beyond the face of the law when
they upheld the government in the
gold clause case. The fact that Chief
Justice Hughes and Justice Roberts
did not vote with the liberal minority
this time occasioned no surprise,
however.
Political Effects Seen
Other justices voting with the ma-
jority, in addition to Chief Justice
Hughes, and Justice Roberts, were
James McReynolds, Willis Van De-
vanter, George Sutherland and
Pierce Butler.
The decision, in the opinion of
Prof. Everett S. Brown of the po-
litical science department, will have+
far-reaching political effects. He
pointed to the fact that a nation-
wide poll reported Sunday the ma-
jority of the American peoplehas an-
tagonistic to the Agricultural Ad-
justment Administration. "In view
of this," Professor Brown said, "it
would seem that the court's decision,
was a popular one."
Professor Brown, calling attention
to repeated statements and infer-
er ces of President Roosevelt that he
int ended to make the AAA a perm-
anent affair, predicted that some
substitute form of legislation may
appear. He emphasized the fact that
the high court did not only invalidate
the processing taxes of the AAA, but
the entire framework of the farm
agency as well.
Will Hit Market
Most members of the economics
department agreed that the court's
decision would reverberate on the
stock market, but were divided as to
what effect the ruling out of the ag-
ricultural program would have on
prices. One professor held that prices
of foodstuffs would quickly drop pre-
cipitously, while another economist
declared that commodity prices
would change little or any as a re-
sult of the wiping out of the AAA.
Almost without exception, the fac-
ulty men interviewed agreed that the
AAA decision was "the writing on the
wall" for other New Deal acts, es-
pecially those dealing with farm
legislation now before the Supreme
Court. Agricultural acts now pend-
ing before the tribunal are the Bank-
head Cotton Control Act, the Kerr-
Smith Tobacco Act and the Warren
Potato Law. A decision on these was
expected Monday. Other pieces of
legislation, sure to reach the high
court ultimately, are the Tennessee
Valley Authority Act, the Utilities
HoldinghCompany (death sentence)
Bill, the Wagner Labor Relations
Bill and the Social Security Act.
Begin Estimate
Of Damages In
Vacation Fire
Insurance adjustors yesterday
morning began an appraisal of dam-
age done in a fire which swept
through Wild & Co.'s clothing store,
the New Granada Cafe, and offices in
a two-story building at 311 S. State
St., while laborers still worked clear-
ing the building of wreckage caused
by the fire early Saturday morning.
The blaze, of undetermined origin,
destroyed offices and storerooms on

the second floor, while the stock of
the clothing store and the recently-
completed decoration of the restau-
rant were ruined by water which

Dissenting Justices
Caustic In Opinions
Organized Farm Leaders
Propose Amendment As
Market Fluctuates
By MELBOURNE CHRISTERSON
(Associated Press Staff Writer)
WASHINGTON, Jan. 6.- The Su-
preme Court smashed the Roosevelt
farm aid program today with an un-
compromising opinion which threw
other major Rooseveltian New Deal
laws into question.
Administration leaders, stunned by
the 6 to 3 decision, withheld imme-
diate comment. President Roosevelt
called major advisers into a hurried
White House conference.
Justice Roberts read the views of
the Court's majority killing the entire
AAA as invalidating the "reserved
rights of states" and "beyond the
powers delegated to the Federal gov-
ernment."
Under AAA, $1,127,000,00 has been
paid farmers since 1933 for reducing
crops under a national plan intended
to raise farm incomes.
In a vehement dissent. Justices
Brandeis, Stone and Cardozo as-
serted that "courls are not the only
agency of government that must be
assumed to have the capacity to gov-
ern."
As organized farm leaders pro-
posed amending the Cpnstitution,
and stock ana commodity markets
reacted irregularly to the news, there
was immediate speculation on the
fate of New Deal legislation still
to face the Court's scrutiny.
What will happen, lawyers won-
dered, to such measures as the So-
cial Security, Guffey Coal Control,
Wagner Labor Disputes and other
laws based on the power of Congress
to legislate "for the general wel-
fare," which until today had never
been defined or limited by the high
tribunal.
Holding that "Justice Story's
theory" of this power "is the correct
one," Roberts added that "he makes
this clear that the powers of tax-
ation and appropriation extend only
to matters of national, as distin-
guished from local welfare."
The court's blow was the second
to a major cornerstone of the New
Deal. Last spring it unanimously
overthrew NRA codes, through which
the government tried to regulate in-
dustry.
Ruthven Fractures
Leg In Fall On Ice
A fracture of the tibia, suffered in
a fall on icy steps last Wednesday
night, will confine President Alex-
ander G. Ruthven to a bed in Uni-
versity Hospital for about two weeks,
authorities reported last night.
New Year's Day, as President and
Mrs. Ruthven were descending the
steps in the rear of the President's
residence on campus.
Ralph H. Sullivan
Injured In Crash
Ralph H. Sullivan, 21 years old, of
Lansing, a student in the Medical
School, suffered a fractured pelvis in
an automobile accident here Friday,
Dec. 20, in the rush to leave town for

Christmas Vacation, and has been
confined to University Hospital since
that time ,according to authorities at
the Hospital.
AJQITW 71 I" '. - ea

Z 1lese eseimates, however, were
predicted upon continued collection
of processing taxes and payment of
farm benefits. In fact, Mr. Roose-
velt included in his message a repe-
tition of a warning enunciated in
September.
William Smith
Is Shot Fatally

And Stone Retorts
To which Justice Stone, speaking
for the minority, retorted in words
concurred in by Dean Bates: "The
power of a court to declare a
statute unconstitutionai is subject to
two guiding principles of decision,
which ought never to be absent fromI
judicial consciousness:j
1. "One is that courts are con-
cErned only with the power to enact
statutes, not with their wisdom. The
'other is that, while unconstitutional

exercise of power by the executive try throughout the United States
and legislative branches of the gov- may be accomplished by similar ex-
cnment is subject to judicial re- ercises of the same power.
rui straint, the only check upon our own
Tragedy Occurs On Farm e xercise of power is our own sense of Until recently no suggestion of the
Near South Lyon As Gun self-restraint. I existence of any such power in the
"For the removal of unwise laws Federal Government has been ad-
Is Accidentally Fired from the statute books appeal lies vanced. -
not to the courts but to the ballot The expressions of the framers of
D. William Smith, '36, died Sunday and to the processes of democratic the Constitution, the decisions of
afternoon, Dec. 22, in the University government. this court interpreting that instru-
Hospital from a wound caused by the ---ment and the writings of great com-
accidental firing of a shot gun. He , mentators will be searched in vain
was 21 years old. Ol+ s c lm1 t 1 for any suggestion that there exists
in the clause under discussion or
Together with his father, Delbert On th
W. Smith, Sr., Robert Dawson, of elsewhere in the Constitution such
Arbor, and three farm employes, kJ X power. * * *
Smith had undertaken a rabbit hunt-
ing party on the property of his Dete m inaio n wThe Constitution is the supreme
grandfather, Sidney Smith. The e law of the land ordained and estab-
Smith farm is located near South lished by the people. All legislation
Lyon, 15 miles from Ann Arbor. Prof. Richard Goldschmidt, con- must conform to the principles it laysr
The shotgun which brought sidered the leading geneticist of Ger- down.__
Smith's death was carried by George many, is to lecture on "Genes and
Carey, one of the farm employes. Hormones in Sex Determination" at Dixon Represents Council
The accident occurred about 1:40 4:15 p.m. today in the.Natural Science At Meeting Of PresidentsI
p.m. Rushed to the hospital, Smith Auditorium, on the University lecture
died within several hours.AI Wiliam R. Dixon, '36, president
A resident of Ann Arbor, Smith series program. of the Men's Council, represented
graduated from Ann Arbor High Professor Goldschmidt was former- the Council at the convention of the
school. During his years in the Uni- ly the chief geneticist of the Insti- National Student Federation of
versity he was associated with Alpha tute for Biology at Berlin-Dahlem, Amarica, which was attended by
Delta Phi fraternity. In high school and is now making a lecture tour members of almost 150 student coun-
he played three seasons of basketball through the United States. He comes 'cils from Dec. 27 to Dec. 31 in Kansas
and golf, being a member of the 1931 to Michigan from Chicago, and after City,
state championship golf team. He leaving Ann Arbor expects to visit I

Michigan FG FT
E. Townsend, f......0 0
Evans, f .........1 0
Fishman, f d.. .. 2.. 3 0
J. Townsend, f......2 2
Gee,c.............0 2
Jablonski, c........0 0
Meyers, g............1 3
Patanelli, g.........0 0
Rudness, g..........2 2
Totals....... 9 9

P
0
0
4
1
0
1
0
2
8
P
3
0

TP
0
2
6
6
2
0
5
0
6
27
TP
2
1

Indiana
Stout, f.
Etniref. f

FG FT
1 0
0 1

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