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January 08, 1936 - Image 1

Resource type:
The Michigan Daily, 1936-01-08

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The Weather
Cloudy today; tomorrow
snow; not much change in


3k igt 9an



And That Is That .. .
The New (Discipline .. .



5 Dead As
Riots Hit
President Justo Hurries
To Buenos Aires; Strike
Leads To Violence
Police And Troops
Are Concentrated
Omnibuses And Cars Are
Burned In Riotous Day;
Number Hurt Uncertain
BUENOS AIRES, Jan. 7. - (/P) -
A day of strike violence here in which
five persons were killed and an un-
identified number injured caused
President Agustin P. Justo of Ar-
gentina to hurry tonight to the cap-
ital by airplane from Cordoba.
Federal troops aided police in keep-
ing order. The violence resulted from
an attempted general strike and
Justo hoped his presence here would
have a quieting effect on the sit-
All available police were moved into
the suburbs and a detachment of
troops from the Federal arsenal was
sent to the central police station.
Rioters in the streets and high-
ways, a survey showed tonight,
burned 12 omnibuses, three milk wa-
gons and four food cars.
They also removed some of the
rails of the Central Buenos Aires
and Pacific Railway lines.
As one of the persons injured in
the day's fighting died tonight, the
death toll reached five. Three po-
licemen were shot to death in the
suburb of Villa Urguiza in a clash
with rioters who attempted to halt
trains and omnibuses. An army con-
script was fatally injured when he
was struck on the head with a stone
while riding on a street car.
In the suburbs of Moron, Limiers
and De Boto, all commerce was
closed throughout the day.
Railroad Reply
Is Considered
By CommutersI
Answer To Complaint Filed
With Michigan Public
Utilities Commisson
A group of approximately 25 Ann,
Arbor and Ypsilanti commuters met,
last night to discuss a reply to their
complaint filed with the Michigan
Public Utilities Commission asking
continuance of the 7:45 commuting;
coach to Detroit.
The answer was filed by the Mich-
igan Central Railroad yesterday withi
both the Commission and Edward
Bryant, attorney for the commuters.i
In the general discussion of the
brief it was shown that the railroadi
was losing money on all runs of theI
special coach except the 7:45 a.m.
trip. The service is being continued
now at the request of the commis-1
sion pending the hearing which is
to be held Jan. 23.
Following the discussion the com-
muters formed an organization to'
further their efforts to continue the
service of the gasoline coach. It was
named the Ann Arbor and Ypsilanti
Commuters Organization, and H. E.

Slussinger, of Ypsilanti, was elected
president. Raymond Spokes, a De-
troit consulting chemist who makes
his home in Ann Arbor, was elected
Motions of suport were expressed
at the meeting by both the Ann Ar-
bor and Ypsilanti Chambers of
Corporation Salaries
Revealed In Congress
WASHTNGTON, Jan. 7- O)- -
The natural curiosity of man to know
how much money the other fellow
makes was partly satisfied today with
the congressional disclosure of sal-
aries paid all corporation employees
in the country receiving $15,000 or
more a year.
Such 12-month pay checks as $500,-
000 for William Randolph Hearst and
$339,165.65 for Mae West were
sprinkled among the 1934 salary lists
made public by the House Ways
and Means Committee.

Roosevelt May Be 'Lame Duck' AA Seeks
DespiteTwentieth Armendment To Fulfill Its

Brown Sees Possibility Of newly-elected House of Representa-
Mix-Up Because Of New tives to choose the President," Pro-
essorBrown pointed out, asserting
Inauguration Date that "it is imperative, therefore, that
Congress should meet at its regularly
By FRED WARNER NEAL appointed time."
President Roosevelt may find him- So what?
Formerly when the President took
self a "lame duck" next year, because office on March 4 and Congress did
of the very law that attempted to not meet in regular session until De-



Re port Says
Oil Embargo
Dropping Of Proposal Is
Rumored In Paris; War
Activities Increase
France Inspects
Italian Frontier

wipe out such animals-- the Twen-
tieth Amendment to the Constitution.
That is the opinion of Prof. Ever-
ett S. Brown of the political science
department, who points out that al-
though the Twentieth Amendment
brought an end to "lame duck" Con-
gresses, it, paradoxically, made pos-
sible "lame duck" presidents.
Professor Brown included his orig-
inal statements on the subject in a
letter to the New York Times.
Mix-Up Predicted
Should a Republican president be
elected next fall, as well as a Re-
publican House of Representatives,
everything will be all mixed up when
Congress meets Jan. 3, 1937, Profes-
sor Brown holds. The Twentieth
Amendment, he pointed out, pro-
vides that Congress shall meet Jan.
3, rather than the first Monday in
December, and that the President
shall take office Jan. 20 rather than
March 4. During the two weeks from
Jan. 3 to Jan. 20, the President
would be a "lame duck," Professor
Brown explained, although "it is like-
ly he would merely mark time, await-
ing the inauguration of his succes-
Explains Difficulty
The difficulty arises, Professor
Brown declared, in the fact that the
Budget and Accounting Act of 1921
provides that the President shall
transmit the budget to Congress on
the first day of each regular ses-
sion. "If this law were carried into
effect," the professor explained, "the
budget would be presented Jan. 3 by a
'lame duck' President whose term
would not expire until Jan. 20.
"And things would be in a still
worse muddle if Congress were to
attempt to change its date of meet-
ing and postpone it until after the
new president takes office," Profes-
sor Brown continued, because, ac-
cording to the Twelfth Amendment,
the electoral votes for President must
be opened and counted in the pres-
ence of the Senate and House, and by
law this joint session meets Jan. 6.
"If no one receives a majority of the
electoral votes, it devolves upon the
Man's Body Foundl'
Buried Under Sand
PHILADELPHIA, Jan. 7. - (P) -
Six feet down in the sand of a South-
ern New Jersey beach, authorities to-
day found the body of a man whom'
Adam Ambrose, Philadelphia sugar
refinery worker, is accused of stran-
gling in an alleged plot to collect
$10,000 insurance on his own life.
Ambrose, digging under the sur-
veillance of police and Coast Guards,1
uncovered the body after he was
taken to the beach at Townsend'si
inlet, from Philadelphia, where he
was said to have confessed the kill-.
ing. Later, however, Ambrose denied
the crime.
He was charged with murder. His
son, arrested at the same time, was
held as an accessory after the fact.;
The victim, whom Ambrose said
he knew only as "Joe," was tenta-
tively identified by authorities as Joe
The slaying is alleged to have oc-
curred in October, 1934, in Ambrose's
cottage near Sea Isle City.

cember, Professor Brown explained,
there was ample time in which to pre-
pare the budget. Under the law, he
pointed out, heads of departments
must submit their departmental esti-
mates to the Bureau of the Budget on
or before Sept. 15.
Because all this has been changed
by the Twentieth Amendment, Pro-
fessor Brown holds that "unless the
incoming president accepts the esti-
(Continues1 on Page 2)
AAA Decision
Is Deplored By
Prof: Peterson
Sudden Change Is Seen As
Disturbance To Normal
Economic Activity
Prof. Shorey Peterson of the eco-
nomics depaitment yesterday ex-
pressed dissatisfaction with the sud-
denness with which the AAA was
terminated, although he stated in an
interview that he was not in sym-
pathy with the methods used by that
governmental agency.
"Any sudden economic change,'
Professor Peterson said, "although it
may eventually turn cut for the bet-
ter, usually disturbs the normal eco-
nomic activity of the people." He de-
clared that individuals slow down
their activities after a sudden change
in order to ascertain the direction of
Instead of the Supreme Court's
crack down" on the AAA, Professor
Peterson prefered a slower disband-
ing of the agency.
To illustrate the reactions which
followed the spectacular decision,
Professor Peterson turned to the stock
market for an indication of the feel-
ings of those whose interests are
closely interwoven with those of the
Immediately after the announce-
ment of the decision, he said, the1
stocks of corporations selling mer-
chandise to farmers dropped as much
as one point. Professor Peterson in-
dicated that Montgomery Ward and
Sears Roebuck are representative of
this category.
On the other hand, he said, the
shares of packing companies and
others which buy agricultural prod-
ucts rose as much as three points. The
Swift Packing Co. he listed amongf
this type pf company.
The rise in the second type is1
due, Professor Peterson said, to the
lifting of the processing taxes which
were being levied on these enterprises
under the provisions of the AAA.
Commenting on the principle of the
AAA, Professor Peterson expressed
dissatisfaction with its methods of
stopping overproduction of farm
"Whenever the government, or any
government, sticks its finger into the
economic pie," he said, "it usually
finds it pretty hard to pull it out."
He continued, saying, " . . .and if an
industry is put up on stilts by a
government, it is difficult to get that
industry down again without unde-
sirable results."

Roosevelt Will Ask For
Money To Pay Debts On
Farm Contracts
Bonus Bill Before
House On Friday
Passage By Big Margin
Predicted As Changed
Plan Is Pushed
WASHINGTON, Jan. 7. --(/P) -
Administration efforts to pluck some-
thing out of the debris of the AAA
--if only money to pay farmers for
now-ended crop control contracts-
dominated the capital scene today.
President Roosevelt told reporters
he would ask Congress for funds to
pay the contracts up to yesterday,
when the Supreme Court ruled out
both AAA processing taxes and ma-
Secretary Wallace, heading an ad-
ministration group questing for some
new constitution-conforming national
farm program, called 70 farm leaders
into conference on Friday and Sat-
All members of the administration
were described by Mr. Roosevelt as
studying what he terms the two de-
cisions of the Supreme Court- an
apparent reference to the majority
and minority report.
This served to strengthen the im-
pression that the New Deal feared for
others of its programs.
Wallace supplemented his studies
with a radio broadcast warning.
against farm conditions of 1932.
WASHINGTON, Jan. 7. - (') - A
veteransaorganization bonus bill,
slightly amended as to its financing
features, tonight was steered toward
a House vote on Friday which Dem-
ocratic leaders declared would ap-
prove it by "an overwhelming ma-
Speaker Joseph W. Byrns said that
there was no disposition among the
leadership to postpone action on the
bonus until next week unless its back-
ers wanted that. Members of the
Appropriations Committee said that
they had no objection to laying aside
the Independent Offices Appropria-
tion Bill, which is to come up tomor-
row for general debate.
3 Per Cent Interest Offered
That opened the door for the Ways
and Means Committee to ask for a
rule on the bonus tomorrow, bring
it up for House discussions Thurs-
day and a vote Friday.
The bill would authorize immediate
payment of the bonus, but offer a,
3 per cent interest inducement to vet-
erans not to cash their adjusted serv-
ice certificates until 1945, the ma-
turity date under existing law. It
would provide no specific method of
The Ways and Means Committee
'oday decided to knock out one pro-
vision that would have refunded all
interest paid by veterans on loans
on the certificates but kept another
that would cancel all unpaid inter-
est on such loans.
Insurance Bond Interest Boosted
Rep. Fred M. Vinson, (Dem., Ky.),
one of the backers of the legislation,
said the refund would have amounted
to $7,000,000 and that the cancella-
tion will cost $288,000,000. He said
that the additional cash outlay im-
mediately on enactment of the bill,
backed by the American Legion, Vet-!
crans of Foreign Wars and Disabled
American Veterans, still would be
around $1,000,000,000.
Another change by the Ways and
Means Committee will impose no
extra burden on the Treasury, he
contended. That alteration would
boost from 3z to 42 per cent the
interest on bonds to be issued to the
United States government life in-
surance fund by the Treasury. By

issuing the bonds, the Treasury would
make payment of loans made by the
fund upon service certificates.
Vinson said the government has
guaranteed that the fund shall earn
4% per cent interest.

Mussolini Sends
Thousand More
To Ethiopia


(By The Associated Press)
Reports that the League of Na-
tions had virtually called off a pro-
posed oil embargo against Italy cir-
culated in Paris Tuesday night.
Diplomatic circles there said a poll
of members of the League Council
showed that they believed sanctions
already in force would soon force
Premier Mussolini toucallsa halt in
the African war.
But despite this, military and naval
activity increased in Southern
France, along the Italian border.
The chief of the army general
staff, Gen. Gustave Gamelin, ended
a tour of inspection of troops and
fortifications in that area. The navy
announced that the fleet would be-
gin Mediterranean maneuvers Jan.
20-the daythe League Council is
to meet.
Premier Mussolini showed no dis-
position to end his "colonial ad-
venture." Instead, he sent several
thousand more troops to Ethiopia.
Italian newspapers continued to
take bitter pot shots at President
Roosevelt's speech to Congress.
For Ethiopia, it was Christmas
Day, and religious services were held
throughout- the country.
Emperor Haile Selassie's "brain'
trust" was strengthened by the ar-
rival of John H. Spencer, 30, for-
merly of Grinnell, Iowa, who will
advise the Government on interna-
tional political matters.
A Rome communique said that all
was quiet on both fronts.
Boss Of Germany
Was Once Bossed
By Madison Tailor
MADISON, Wis., Jan. 7. - (/P)-
Peter Yust may be just a little-
known Madison tailor, but he can
look back on the time when he was
boss of Adolf Hitler, dictator of'
Germany, he asserted today.
Military rank gave him authority
over Hitler during the World War.
The tailor was a sergeant major in
the Hungarian Army, the present
German Chancellor an infantry
corporal in the Bavarian forces.
For eight weeks in 1916 while the
Hungarians and Bavarians lined up
artillery in the vicinity of Trub-
chevsk, Russia, Yust was Hitler's
superior officer. Soldiers of all the
Central Powers frequently fought
side by side at that time, Yust said.
"Hitler was a good soldier, but hadi
few intimate friends," Yust said,!
adding that Hitler demonstrated
none of the qualities of leadership
which later made him a world figure.
After the eight-week stretch Yust
saw no more of Hitler and heard
nothing of him again until the abor-
tive "Beer Cellar Putsch."I

Five Little Dionnes,
Worth $120,000, To
Retire AtAge Of 3
CALLENDER, Ont., Jan. 7 -P")-
Each of the Dionne quintuplets now
is worth $24,000 in her own right,
their guardians announced today.
Between them, the little sister
have $120,000 in Government bonds
in a trust fund.
The sisters now are 19 months old.
If they live to be three years of age,
they will have about $300,000 under
present contracts. Then, Ontario
officials explained, the interest from
the fund alone will support them.
The babies' fortune is being built
up by income from motion picture
contracts and from royalties on post-
cards, calendars, coats, bonnets and
dolls. It cost them $35,000 to live
last year.
Death Toll In
Europe Storm
Mounts To 27
Dozen More May Be Dead;
As Hurricane Strikes In
Irish Sea Over Week-end
LONDON, Jan. 7. -()-Twenty-
seven persons were known dead to-
night in shipwrecks at sea and ac-
cidents in northern Europe since'
Sunday. France was ravaged by
It was feared the death toll in the
Irish Sea, where a hurricane struck
over the weekend, may be at least a
dozen more because of reports of
the disappearance of coastal ves-
Ten died in the foundering of the
drifter Shore Breeze, three were1
killed aboard the blue-funnel linert
Ulysses by a big wave, and one per-
son was washed from the fishing
boat, Feasible, all in the Irish Sea.
Nine were drowned off Hangoe,<
Finland, when a military transport1
was wrecked. Four were drowned
near Hamburg, Germany, in the
collision of a tug and a launch.
The coastal steamer Eromaine, un-
reported since Sunday, returned to
Newcastle tonight. She was badly
battered but the crew was safe.
Flooded rivers menaced hundreds1
of cities and towns in France. There1
was only "traffic" in the street of1
Nantes with river Loire at its high-
est since 1910.
New York Laughs
At Bernhardt Film
NEW YORK, Jan. 7. -- (') -Sarah1
Bernhardt, playing Queen Elizabeth
in a motion picture which she had
described as representing "my one
chance for immortality" was exhibit-
ed here today and won roars of;
amusement in her most tragic scenes.
The picture, made in 1911, formed;
part of the first program of a sur-
vey of the history of the motion pic-
ture circulated by the Museum of
Modern Art film library. Following
the preview here it is being made
available to educational institutions
throughout the country.
CHICAGO, Jan. 7.-(P)-Dr. A.
P. Haake, managing director of the
National Association of Furniture
Manufacturers, today predicted an
increase of at least 30 per cent in fur-
niture sales in 1936.

Morgan Is
Up Before
Comm itee
Wilson Abetted American
Loans To Allies, Senate
Investigators Reveal
Banker Lays War
Guilt To Germans
Denies Foreign Financial
Ties Drew United States
Into Conflict
WASHINGTON, Jan. 7. -- () -
J. P. Morgan seated placidly before
it, the Senate Munitions Committee
filled an important gap in World War
history today with a disclosure that
Woodrow Wilson himself removed ob-
stacles to the first of many American
loans to Allied nations.
From Morgan, however, there came
assertions also that German acts,
and not the lending of American dol-
lars, drew this country into the war,
The financier and his associates
at the same time readily told the com-
mittee that the sympathies of the
American banking fraternity lay ac-
tively with the Allies from the start;
and, as quickly as diplomatic bar-
riers were removed, the loans began
to flow in increasing volume.
Cablegrams gleaned from the Mor-
gan files revealed, moreover, that
scarcely three days after France en-
tered the war that country made
round-about overtures to the Mor-
gan's for a loan or commercial credit.
Wilson Overruled Bryan
The state department, under Wil-
liam Jennings Bryan, disapproved,
t e s t i m.o n y and correspondence
showed. President Wilson, however,
altered the situation by drawing a
broad distinction which permitted
credits" but maintained the ban on
"When the government turned it-
self loose, we turned ou'selves loose,"
Morgan chuckled, after committee
members had,e6licited statements that
for all practical purposes the effect
of loans and credits was the same.
Seeking to determine --for pur-
poses connected with pending neu-
trality legislation - whether the vast
loans extended to the Allies by Amer-
ican bankers exerted a controlling in-
fluence in shoving America into the
conflict later, the committee had
summoned Morgan, his partner,
Thomas W. Lamont, and Frank A.
Vanderlip, president in 1914 of the
National City Bank of New York.
George Whitney and other Morgan
partners and employees were present.
Morgan Is Amiable
Morgan displayed ready amiability
when answering questions, but other-
wise leaned solemnly but comfort-
ably back in his chair. He was dressed
in dark blue. A broad cravat, under
a wide gates-ajar collar almost con-
cealed a starched shirt front.
The shift in Wilson policy, alter-
ing attitudes previously expressed by
Bryan, was disclosed'in an hereto-
fore unknown memorandum prepared
after a talk with the President by
Robert Lansing, then counsel to the
State Department on Oct. 23, 1914.
Lansing wrote chat the President
had found a decided difference be-
tween an issue of European govern-
ment bonds, sold to the American
public and draining American gold to
Europe, and an arrangement to pro-
vide credit for meeting debts incurred
between the foreign government and

American merchants.
Notes appended to the memoran-
dum showed that its contents had
been communicated to a Morgan rep-

Cessation Of Italian Military
Activities Seen B o. Miller'
By WILLIAM E. SHACKELTON close to the Eritrean border, will be
Withdrawal within the next three retained," was the specific prediction
months of Italian forces from all but I of Colonel Miller as to the extent of
Italian withdrawal.
the most strongly entrenched posi- The recent series of bombings by
tions in Ethiopia was foreseen yes- Italian planes was likened by Colonel
terday by Col. H. W. Miller, head of Miller to the "mad squirmings of a
the engineering drawing department desperate force in a last effort to
and authority on military matters. break up civilian morale. In 1918
The immediate cause for the ces- the German submarine, big-gun, and

Observer Finds New Year With.
Indians Not So Very Different

EDITOR'S NOTE: The following ac-
count is extracted from a report on the
Chase S. Osborn Tract, University prop-
erty on Sugar Island, the text of which
will appear in full in an early issue.
New Year's Eve means revelry in
Indian language too, and the Island
rocked last week under the danc-
ing feet of Indians greeting 1936 in
their own fashion.
Containing some elements of sim-

sation of military activity, he said, air raid offensive was just such an - I ilarity to the festivities atop the St.
will be the beginning of the seasonal attempt - a campaign of terrible- Wisconsin IR Regis, their ceremony is a colorful
rains, which usually commence about ness. adaptation - formal full dress re-
the middle of March. "These rains," j"No military end will be served by Valid Court Rules galia being modified to the rugged
declared Colonel Miller, "will abso- these bombings. In fact, they ap- boots and breeches of fashionable
lutely ruin the Italian roads. Be- pear the last efforts of Mussolini's Island wear, music being by violin
cause most of the roads have been failing strategy." MADISON, Wis., Jan. 7.-- (A') - sometimes abetted by melodion, bev-
built on hillsides, the water will In contrast to the lack of real The Wisconsin recovery law of 1935, erages being by mine host.
wash them right away. success by the armies of Il Duce in patterned after the NIRA, was held Christmas slips by silent and
"When the roads are gone there l their 15-weeks drive, the Ethiopians valid today by the State Supreme scarce-observed here, but to the In-
can be no more military activity, for have displayed the effectiveness of Court. dians, who are Chippewa and Ojibwa

affairs, but a few, belonging to the
more industrious, are frame, with
battery radios, a separate room for
sleeping, and a measure of cleanli-
In one of these were found some
50 people gathered, Indians, Finns'
and French. The, floating part of
the population was high -many peo-
ple leaving and arriving constantly -
and each new arrival made the round
of the noisy room, wishing everyone,
known or unknown, a hearty bless-
Those most in earnest about this
business of celebrating had begun
their drinking at noon, and had quite
a head start. Beverages included
mash - a kind of fermented corn
liquid, potent and bitter; home brew
-of the domestic variety; and va-
rieties of firewater. (An old fur trader

Set Standards For
Fraternity Pledges
Fraternity pledges will be allowed
to live in their fraternity houses the
second semester of this year if they
are able to satisfy four requirements
laid down by the Committee on Stu-
dent Affairs, it was announced yes-
terday by Dean of Students Joseph
A. Bursley.
The one condition which was not
also required last year is "that the
fraternity in question has shown by
its record in previous years that such
permission does not result in a low-
ering of the grades of the freshmen
more than the average drop in fresh-
man grades for the all-men average
of the second semester."
The number of "previous years"
wih'w uill heco pnsideredlin mnnniit-.

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