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