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March 31, 1938 - Image 1

Resource type:
The Michigan Daily, 1938-03-31

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The Weather
Rain and thunderstorms to-
day; probable lower tempera-

YI r

4 46F A61F


In Answer To A Reader.
The President's
Reorganization Bill..*



Bill Opponents
Of Purcehase'~
Senate Finance Committee
Approves Modification
Of Tax Revision Plan
TVA Congressional
Investigation Sure
WASHINGTON, March 30.-)--
President Roosevelt's charge that un-
named, persons tried to "purchase"
defeat of his Government Reorgani-
zation Bill by sending a flood of tele-
grams to senators stirred up a storm
of protest today from Senate op-
ponents of the measure.
Gray-haired Senator Johnson
(Rep., Calif.), indignation ringing in
his voice, asserted the President had
"reflected" on all who voted against
the bill.
"This shows on the part of the
President a conplex-a deep disre-
spect of the Senate," he shouted. "It
justifies every single word said here
against the bill."
Senator Wheeler (Dem., Mont.)
joined in the criticism of Mr. Roose-
velt's remark.
Senator Lewis (Dem., Ill.) hastened
to say he could not conceive that,
the President meant what some sen-
ators believed he meant.
(Mr. Roosevelt told reporters at
Warm Springs, Ga., yesterday that
the Senate's approval of the Reor -
ganization Bill showed that body
"cannot be purchased by organized
telegrams based on direct misrepre-i
Tax Revision
WASHINGTON, March 30.-U)-
A proposal to sugar-coat with tax
modification the pill of liquidation
prescribed for many utility holding
companies gained approval of the
Senate Finance Committee today.
'The committee voted to amend the
house tax revision bill to exempt from
capital gains taxes those utility hold-
ing company transfers and sales made
to carry out the holding company
act. The amendment was submitted
to the committee by Chairman Wil-
liam O. Douglas of the securities
Registration provisions of the hold-
ing company act were upheld by the
Supreme Court this week. Under this
law, the commission is directed to
bring about corporate simplification
and geographical integration of hold-
ing company systems.
T VA Investigation'
WASHINGTON, March 30.-P)-A
congressional inquiry into TVA and
the struggles of certain private util-
ities against the agency's activities
became assured today when the House
passed a resolution of investigation
by a voice vote. No dissent was
The chamber rejected a Republican
effort to exempt the private power
companies from the inquiry. It also
defeated a move by western progres-
sives and farmer-laborites to obtain
a preliminary report on the qualifi-
cations of TVA's directors by June 1.
The resolution approved was a
joint one, already adopted by the
Senate. Under it a committee of five
Senators and five House members
would conduct the inquiry. The
measure now goes to the Senate for
action on minor amendments written
in by the House.

Alumni fficials
Convention In Columbhus
Draws Delegates
Shirley W. Smith, vice-president
of the University, Wilfred B. Shaw,
director of Alumni Relations and T.
Hawley Tapping, general secretary
of the Alumni Association, will attend
the 25th annual convention of the
American Alumni Council, today
through Saturday in Columbus, 0.
Other delegates from the Univer-
sity will be Mrs. Lucille B. Conger,
alumnae secretary, Mrs. Lunette
Hadley, director of the alumni cat-
alog office, and Miss Beth McLouth,
associate editor of the Alumnus.
Robert 0. Morgan, assistant gen-

Mussolini Parades
Italian War Power
In Senate Speech
ROME, March 30.--U(1P)-Premier
Mussolini gave the world a detailed
picture of Italy's great war machine
today and declare it was ready to
take the offensive, if necessary, to
defend the interests of the empire.'
In an address to the Senate, broad-
cast to the world, Il Duce described
Italy's submarine fleet as the largest
in existence, said the nation's air
force was among the best and pic-
tured a possible army of 9,000,000 men
-all under his own supreme com-
He declared that by arming fur-
ther, regardlessof cost, he intended
to "assure general peace, but above
all 'our peace.'" 1
The primary purpose of the army,l
he said, was for defense. He added,f
however, that "defense must not be
taken in its limited sense: often the
best defense is offense."k
Student Senate
Will Consider i
Housing Needs'
Faculty Members, Student
Body, Landladies Testifyt
Next Tuesday In League
In an attempt to get the facts in the1
campus housing riddle, the Student
Senate will hold an open hearing next
Tuesday at 7:30 p.m. in the League, a
meeting at which representatives ofk
the Landladies Association, the
University faculty and the studentsk
will testify.
Tentative program plans are be-
ing formulated, Allan Braun, chair-k
man of the Senate Committee on
Student Housing, announced yester-
day. Several members of the faculty
have indicated they will be present atl
the hearing. It is expected that the
faculty speakers will lead off with an
analysis of the housing problems, the
session to be followed by the detailed
testimony, Braun said.
The hearing will attempt to deal
as completely as possible with several
aspects of student housing. To be
stressed are the problems of high
rent and low standards and the ex-
tremely low amount of buildings in
the University area during recent
years. he said. A special section will
be devoted to the cooperative method
of reducing expenses, which will be
headed by Tom Downs, '39, and testi-
mony will be heard on the housing
problem facing groups on campus.t
The Student Senate will act as a
committee of the whole for the pur-
pose of the hearing and the various
senators will be free to ask questions
from the floor, Richard Scammon,
Senate speaker, said. Questions from
the audience in written form will be
Graduate Group
Starts Activities
Council Wi 11 Represent
Both Men And Women
Full work of the graduate stu-
dents' council got under way yester-
day with the announcement of the
members of the three subdivisional
committees. Committee chairmen had
been elected at Tuesday night's coun-
cil meeting.
It was fully clarified once again by
the executive committee that the
council is representative of the entire

graduate student body, women as well
as men.
Members of the committee for the
constitution are DuBey, Ellsworth
Raymond, Herbert Weisinger, Stuart
Portner, Alice Traver and Donald
The intellectual coordination com-
mittee, under the chairmanship of
Weisinger, includes Frederick O.
Crandall and Alfred Boerher.
The Social and Athletic commit-
tee, headed by Raymond, includes
Robert L. Gill, Eugene B. Reed, Har-
vey Parke, C. Thurston Stenson and
Eleanor A. Peschke.
Committee Probes

British Lord
Urges Action
Over Mexico
U.S. Wants Compensationl
For Oil Property, Farm
Land Worth 250 Million
Fascist Markets
May Replace U.S.
LONDON,BMarch 30 -UP)-Joint
action by Britain and the United
States in putting "pressure on the
Mexicans" in the oil companies ex-
propriation controversy was urgedl
today by Baron Newton in the House
of Lords.
"Unless we can secure the coopera-
tion of the United States the chances
of our doing any good are remote,,,
said Lord Newton, a former under-
secretary for foreign affairs. He add-
ed that in the past the United States
has "never shown any particular zeal
to act in conjunction with the British
government" in such matters.
WASHINGTON, March 30.-(M)-
The United States called upon Mexico
today to give "fair, assured and ef-
fective" compensation for American
oil properties expropriated by the
Mexican government.
Secretary of State Hull issued a
statement, acknowledging Mexico's
right to expropriate the properties,
but insisting on full compensation not
only for the oil properties but also
for some $80,000,000 worth of Ameri-
can farm lands seized in recent years.
The value of the oil properties has1
been estimated unofficially at more
than $400,000,000. Workers on the
other hand, claim the total valuation
is not more than $270,000,000. Thus
Mexico may be called upon to pay
something like $250,000,000 for all
the property seized.
Mexico City
MEXICO CITY, March 30.-())-
The markets of Italy, Germany and
Japan were pictured in some informed
quarters today as a likely outlet for
the production of Mexico's expro-
priated oil industry.
This solution was advanced as la-
bor, diplomatic and financial compli-
cations confronted President Car-
denas, who has summoned an "ur-
gent" session of Congress to meet
problems arising from his expropria-
tion of the $400,000,000 British and
American industry. -
Date of the session has not been
set, but it was expected to be early in}
With the country's purchasing
power abroad cut sharply by fluctua-

Union To Hold
Annual Open
House Tonight
Featuring new exhibits, free danc-
3 ing and reduced rates in recreational
rooms, and the tap room, the Union's
annual spring open house will be held
from 7:30 until 10:30 p.m. today.
New exhibits will be presented by
most of the schools on the campus,
according to Jack Knecht, '40E, and
James Wills, '40E, co-chairmen of the
All engineering groups-civil, aero-
nautical, mechanical and chemical-
will have exhibits, as will the R.O.T.C.,
the department of naval architec-
ture, the geology department, the for-
estry school, the medical school, the
physics department and the American
Society of Mechanical Engineers.
There will be a water polo and div-
ing exhibition in the Union pool from
7:30 until 8 p.m. A fencing match to
be judged by members of the local
chapter of Scimitar, national fenc-
ing society, will be held from 8 until
8:30 p.m. and a concert will be given
by the Varsity Glee Club from 8:45
until 9 p.m.
Free dancing will prevail in the
main ballroom the entire evening.
Bob Steinle and His Melody Men will
play. Tickets to regular Union mem-
bership dances will be given to the
holders of lucky programs. The draw-
ing will be at 9 p.m.
For the :second time during the
school year, women will be allowed
Ito enter the front door of the Union.
Kennedy Gives
Last Oratorical
Series Lecture
To Discuss World Events,
Tuesday; Takes Place Of
Ailing H. V. Kaltenborn
The last lecture of the Oratorical
Association series will be given Tues-
day when John B. Kennedy, Nation-
al Broadcasting Co. announcer and
commentator, will speak on "What's
Wrong With the World."
i Mr. Kennedy has been engaged to
fill the lecture date originally sched-
uled for H. V. Kaltenborn, who has
been unable to appear here because
of illness. Like Mr. Kalternborn,
Mr. Kennedy is a political analyst
and interpreter of current events and
problems. He is heard regularly over
'an NBC program.
Before his radio work, Mr. Kennedy
had established his reputation and
position as a newspaperman. His
journalistic experience included sev-
eral trips to Europe in the role of
special foreign correspondent for

Judg SapleDelivers
udapeInjunction To Stop NLRB

Hearin g





Strikers Battle
Detroit Police;
FortyTnj ured
13 Policemen Hurt; 5,000
Strikers, , Sympathizers
Are Involved In Conflict
DETROIT, March 30.-UP)-Forty
persons were injured late this after-
noon in a pitched battle that broke
out between police and approximately
5,000 strikers and sympathizers at the
strikebound Federal Screw Works.
Among the injured were 13 police-
The battle started when 200 po-
licemen, some of them mounted, were
escorting 40 workers from the plant.
Pickets, who lined front lawns along
the street, started throwing bricks,
bottles and other missiles. In the fight
that followed most of the casualties
were pickets and their sympathizers.
The non-strikers had been collect-
ed at a point several blocks from the
plant entrance. They marched to the
plant in a body, the procession head-
ed and followed by police cruisers and
flanked on either side by policemen
carrying night sticks.
The pickets, massed at the en-
trance, were armed with heavy sticks
on which they carried placards.
The fighting occurred when the
police wielded their night sticks to
open a path thrugh the massed pick-
ets for the non-strikers to enter the
plant. Fifty pickets were knocked
to the ground.
Storms Take
Nineteen Lives
More Than Two Hundred
Injured By Tornadoes
Tornadoes swept d e s t r u c t i o n
through five states yesterday, killing
19 and injuring more than 200, ac-
cording to Associated Press dis-
patches. Kansas, Illinois, Oklahoma,
Missouri, and Arkansas were the
states struck by the high gales, hail
and rainstorms.
Biggest casualty list was reported
by Kansas, available figures showing
eightdeaths and more than 100 in-
jured. Columbus buildings suffered
heavy damages.
In the other states, tornadoes de-
molished many houses and schools,
forcing residents to evacuate. Late
dispatches reported Arkansas threat-
ened by floods as cloudbursts
drenched the central portion of the
state. It was Arkansas's second tor-
nado in a week.
SHANGHAI, March 31.-(Thurs-
day)-(.)-Ten miles of a narrow-
gauge railroad today became one of
the most bitterly-fought battlefields
of the Chinese-Japanese war. Along
that rail stretch, from Lincheng on
the north-south Tientsin-Pukow line
to Taierhchwang, only 20 miles north
of the vital east-west Lunghai, some
1 50,000 Chinese fought savagely

'Swing,' Comic Strips
On Par, Maddy Finds
"Swing" music is all right, if ac-
cepted in the same spirit as the news-
paper comic strips," Prof. Joseph E.
Maddy said, speaking in St. Louis,
where he is attending the National
Music Educators' Conference this
"It's all right in its place-if you
don't take it any more seriously than
the newsraper comic strips. It will
change. It's the old-time Dixie Jazz
and it is getting better."
'I wouldn't say 'swing' music is
bad," he said, and expressed the be-
lief that it eventually will be trans-
formed into music patterned after
the George Gershwin compositions.
Young Carries

NLRB Will Move Today
To Ask Federal Court
To Vacate Injunction
City Council Grauts
Chamber For Case


Amyr. ,i nonn,nac c. rc rnia nn,' an A ra-

tion of the peso, United States sus- j portorial work in New York, Chicago
pension of silver purchases, and a and Canada. He then entered the
falling world silver market, it was as- magazine field, becoming editor of
serted Mexico might be forced to Columbia, the organ of the Knights;
trade with other nations similarly of Columbus. Later he became suc- I
lacking foreign exchange. cessively managing editor and asso-
Atlhough it was recalled that Car- ciate editor of Collier's Weekly.
denas had said he would sell oil only __tdio _fCoe'_We__

Railway Battle
To U.S. Court
Financier Gets Temporary
Order Restraining Vote
Of Guaranty Trust Co.
NEW YORK, March 30.-(A")-Rob
ert R. Young, youthful financier who
made a spectacular leap to trunkline
railway control 11 months ago, today
charged some of the nation's most
powerful financial interests with op-
posing him, and obtained a court or-F
der against the Guaranty Trust Co.,1
the country's third largest banking
After Young had filed a voluminous
affidavit, Federal Judge Alfred C.
Coxe granted a temporary order re-
straining the trust company from
voting a controlling block of sharest
in Chesapeake Corp., middle holding
company in the former Van Swerin-f
gen pyramid. It controls the Chesa-
peake and Ohio, regarded as the
prize of the Van Sweringen roads.
Young, who with a comparatively'
small amount of cash obtained osten-
sible control of roads once valued
at $2,000,000,000, based his action on
a charge that Guaranty Trust had
improperly, with "reckless" and
"flagrant" disregard of its duties.
violated its trustee responsibil-
ities for reasons having to do with
its financial relations with J. P. Mor-
gan & Co., Morgan & Co., Morgan,
Stanley & Co., Inc., and General Mo-
tors Corp.
Noted Scientist
Lundmark Discusses Scale
Of Universe At 8 P.M.
Dr. Knut Lundmark, noted Swed-
ish astronomer, will give a Univer-
sity lecture on "Distance Indicators
and the Scale of the External Uni-
verse" at 8 p.m. today in the Natural
Science Auditorium.
Dr. Lundmark, who is director of
the observatory at the University of
Lund, Sweden, is well-known in the
statistical side of astronomy and is at
present preparing a general catalogue
of other Milky Ways. He has also
made studies in the habitability of
other spheres.
He has done research in the United
States at the Lick Observatory and
at the Mount Wilson Observatory in
California, for the Carnegie Insti-
tution. He has served as a member
of the Commisison of the Interna-
tional Astronomical Union and is the
author of several books on astronomy.
Rebels Claim Lerida
Fall Is Imminent
HENDAYE, France (At the Span-
ish Frontier), March 30.-(P)-Span-
ish Insurgent commanders said to-
night that the capture of Lerida, key
city in the drive to Barcelona, was
imminent despite stiff resistence of

to democratic countries, some observ-!
ers declared that because of a des- I
perate need for an immediate market:
he sooner or later would grasp any
helping hand.
Social A -en
Analyzed Here
Main Problem Is Leisure
Of Out-Of-School Youth
The main problem of social agen-
cies is to find attractive recreation
activities for the out-of-school, un-
employed youth, Miss Hazel Hard-
acre of the Detroit Children's Center
said yesterday at the sixth and last
meeting of the current series of the
Ann Arbor Social Service Seminar.
Applications for a new series
which will begin in the fall are now1
being taken at the Community Fund
office, Mrs. Theophile Raphael, re-
tiring chairman of the seminar, said
The subjects which have been dis-
cussed in the six-week series will not
be repeated, Mrs. Raphael, said, al-
though some of the sepakers may
Chairman for the fal lseries will be
Mrs. William C. Trow. Other com-
mittee members will be Mrs. F. B.
Riggs, Mrs. F. A. Coller, Mrs. John
E. Tracy and Mrs. James A. Kennedy.
Two Naval Planes Crash

Judge George W. Sample of
Washtenaw County Qircuit Court
issued preliminary injunction
yesterday restraining NLRB from
going ahead with the Ann Arbor
Press hearing scheduled for to-
day. NLRB representatives move
today to petition federal court
to vacate injunction.
Two leaders in the strike of
the International Typographical
Union against the Press at the
same time were restrained from
"interfering" with conduct of
Press' business, making "false
statements" to Press customers
and "coercing" Press employes
into joining the ITU.
Six composing room employes
joined the strike immediately
after injunction issued.
Quorum of Ann Arbor City
Council voted unanimously after
issuance of the injunction to
place their chambers at the City
Hall at the disposal of the NLRB
for "holding the hearing.
John T. Lindsay, NLRB Trial
Examiner who held Ford hearing,
left Washington late yesterday
unaware of developments here.
The National Labor Relations
Board case against the Ann Arbor
Press was catapulted into the federal
courts yesterday when Judge' George
W. Sample of the Washtenaw County
Circuit Court issued a preliminary in-
junction restraining representatives
of the Detroit NLRB office from pro-
ceeding with the hearing scheduled
to begin today. The Board is also
restrained from "inquiring in-
formation" of Press customers.
The NLRB representatives, who
sited a United States Supreme Court
decision vacating a similar injunction
issued by a state court, said yesterday


Edmonson Talks Today
On Education As Career
Dean James B. Edmonson of the
School of Education will continue the
pre-professional forum series at 4:15
p.m. today in University High School
Auditorium, speaking on education as
a career. The series is sponsored
by the College of Literature, Science
and the Arts and includes talks on
all branches of professional training.
The series is scheduled to continue
twice weekly until mid-April. Marion
Durell of the School of Nursing will
talk April 5.-

An ultimatum of the Board of
Regents to the Ann Arbor Press,
threatening that University con-
tracts might be cancelled if an
amicable settlement were not
reached with the striking typo-
graphical union, expires today,
according to theAssociated Press.
hat they would move immediately to
have the restraining order set aside
y the District Court for the Eastern
District of Michigan, which is located
in Detroit.
Less than one hour after the in-
junction issued, six men on the night
staff of the Press composing room
left their machines and joined the
strike, which the ITU has been
carrying on since Feb. 19.
Six men from the day staff of the
(Continued on Page 6)
Regents Hear
Housin Views
Fouir Students Testify; No
Action Taken
The Regent Committee on Student
Affairs yesterday -heard testimony
from four students at a hearing on
the student-sponsored petition ask-
ing Regent action to reduce rents and
raise standards in men's rooming
Beginning an investigation of a
recent survey which revealed alleged-
ly exorbitant landlady profits, and
with a view toward feeling the pulse
of campus opinion the Regents ques-
tioned Hugh Rader, '38, president of
the Men's Council, Hope Hartwig, '38,
president of the League, John Mc-
Fate, '38, editor of the Ensian and
Jack Davis, '39.
The committee took no action, de-
ferring further consideration of the
measure until the next meeting April
29. The next Board of Regents meet-
ing is scheduled for the same date.
The Committee headed by Regent

Espionage Activities Increase
With New War Preparations

While general staffs from London
to Tokyo scuttle to cover behind soar-
ing walls of armament, the interna-
tional army of spies bulges with each
new military appropriation.
Espionage reached its mysterious
heights during the Warld War when
Mata Hari and Irma Staub and
Stephen Piltowitz and Alphonse Le
Coutrier stole into the foreign cap-
itals of the world, when cigar-shaped
German submarines squatted beside
cables in the muck of the ocean's
bottom and listened to frantic mes-
sages between the White House and
Downing Street, when Washington
swarmed with undercover men, and
every foreign name was suspect.

filched from Japanese cables, bullied
the Tokyo government into a 5-5-3
naval ratio.
Around international spies novel-
ists and movie producers have framed
an aura of glamor, daring, heroism,
devotion to duty and a thousand
other patriotic attributes. Some
agents deserve all the adjectives. Most
agents do not. Espionage, biographies
show, is a bread and buetter bus-
iness, with few exceptions, in which
information is sold to the highest
bidder. And the fatherland is not
always present at the auction.
Case in point was the disappear-
ance of the Italian code book from
Il Duce's Berlin embassy in 1929. A
little hard-working, poorly paid sec-



A committee of five members of
the Washtenaw Party, acting inde-
pendently, will begin immediate in-
vestigation of alleged connections be-
tween the Independent Congress and

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