The Weather
Fair today not so cool in
- central and south portions.
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Editorials
Czechoslovakia
In The-Balance,..
VOL. XLVII. No. 160 ANN ARBOR, MICHIGAN, THURSDAY, MAY 12, 1938
U I I I. . . -. - -
PRICE FIVE CENTS
Weakened Tax
Bill Is Passed
In House; Sent'
To Roosevelt
Undistributed Profits Levy
Proposal Goes Through
Despits ItsOpposition
Expect Five Billion
Revenue From Bill
WASHINGTON, May 11.--()-The
new tax bill, reducing the much crit-
icized undistributed profits tax to
a tattered remnant of its self, re-
ceived final Congressional approval
today ,but House Riepublicans op-
posed that remnant to the very end.
"We have done our dead level best,"
said Representative Vinson (Dem.,
Ky.) an Administration tax spokes-
man, "to bring to the House a bill
that will be helpful to business."
The House interrupted a spirited
discussion of the Administration's
lending-spending program to adopt
- 242 to 89-a compromise confer-
ence report on the tax bill. The
measure now goes to the White House
for President Roosevelt's signature.
The bill, reenacting much of the
existing law, is estimated to yield the
revenues of $5,000,000,000 annually.
It exempts corporations with incomes
of less than $25,000 from the tax on,
undistributed profits. Corporations
with income above that figure would
pay an income tax of 16/2 per cent
if all profits were disbursed to its
stockholders and of 19 per cent if all
profits were retained. For a partial
disbursement of profits the rate is
graduated between the 16 and 19 per
cent figures.
By comparison, under the present
law-upon which business has laid
a major share of the blame for the
present depression-all corporations
pay a tax of eight to 15 per cent
on their earnings ,and an added im-
post of seven to 27 per cent on such
portions of those earnings are
not converted iito dividends.
Maverick Hits
Relief Bill Foes
Says Critics Can Offer No
Better Program
WASHINGTON, May 11.-(IP)-Re-
publican denunciations of the Rose-
eltmpending-,,lending program drew
from Representative Maverick (Dem.,
Texas) the reply today that "violent
criticism of the President" does noth-
ing to solve economic problems.
Defending the measure as "much
better" than previous relief bills, the
Texan said the most vehement critics
had no proper program of their own
to offer.
The Chamber of Commerce and
other business associations "view with
alarm," he said, but make no sugges-
tions except to "repeal the Wagner
Labor Relations Act and throw labor
to the wolves."
Republican suggestions that relief
be turned back to the communities,
he added, would result in, a "satur-
nalia of mismanagement and corrup-
tion throughout the country." He
urged the creation of a Federal de-
partment of public welfare to handle
the relief program.
Unitarian Church
Plans Cooperative
In connection with an expansion
program planned by the Unitarian
Church, the board of trustees has ap-
proved the building of a cooperative
apartment house for graduate stu-
dents and faculty members on the
land back of the church.
The apartment is, designed for
young married couples and will be
able to offer accommodations at a
low rental because of its many co-
operative features. The building will
be constructed by units, according to
Rev. H. P. Marley, minister of the
church. The first unit with its en-
trance opposite the new Graduate
School will be designed for about 15
couples.
35 Selected In Ford's
'Back To Farm' Drive
"V-.nVr 4m av 11 ._ nart
Fraternity Singers
Tune Up, But Sing
Is Next Wednesday
Fraternity men got out their song
books and tuned up their vocal cords
yesterday morning in preparation for
the Interfraternity Sing, which they
thought was going to be last night,
because of an erroneous story in yes-
terday's Daily.
Their preparations were in vain,
however, because before noon all of
them hal been informed by the Inter-
fraternity Council that the Sing
would not be held until next Wednes-
day night, May 18, and that the Daily
had inadvertently given the wrong
date.
The building and grounds depart-
ment was also disturbed by the un-
suspected imminence of the sing. Bud
Lundahl, '38, president of the Inter-
fraternity Council, was called from
a warm bed at 6:30 a.m. yesterday
and asked whether he thought the
department could set up grand stands
for 2,000 people before nightfall.
However, the Sing will definitely
be held at 7 p.m. next Wednesday on
the Library steps.'
Nonintervention
Group Attacked
In League Fight
League Committee Control
Opposed By Loyalists;
Russia Lends Support
GENEVA, May 11.--MP)-Govern-
meit Spain upsetting a majority of
the League of Nations Council, to-
night prolonged its bitter battle to
remove control of intervention in the
Spanish civil war from the hands of
the Non-Intervention Committee.
Supported, by Soviet Russia and
New Zealand, Julio Alvarez Del Vayo,
the Barcelona delegate, won further
consideration of the Spanish issue
which Great Britain and France
sought to dispose of tonight.
Haile Selassie's fight to save the
last, legal trace of claim to his toppled
Ethiopian throne, however, appeared
crushed under the weight of British'
and French influence.
Two of his backers, China and So-
viet Russia, decided not to oppose
Anglo-French efforts to win the
League's permission to recognize
Italy's conquest of Ethiopia-a neces-
sary preliminary to French and Brit-
ish friendship pacts with Italy.
Sexy Horror Stalks
Next Issue Of Garg
Gargoyle Publishing Company will
startle their readers with a produc-
tion named "Sexy, Mystery, Western,
Adventure, TERROR Stories" tomor-
row morning, George S. Quick, '38,
editor, revealed yesterday.
Including such masterpieces as
"Murder In The Bell Tower" by
Captain Spratt, "Pounding Hooves,"
"Operator ZB-44-X-235" and dozens
of others, the magazine will reach its
public at the price of 15 cents despite
the 25 cent price marked on the cover.
The linotype man at the printers
always pays 25 cents for his pulp
magazines so he automatically put
it on the cover, Quick explains.
Wiltse Denies
Fired Men For
UnionActivity
Admits Suggesting MenI
Form Own Collective
Bargaining Association
Attorneys Say Trial
MightEnd Today
WASHINGTON, May 11.-(Special
to the Daily from the Associated
Press)-Arthur J. Wiltse, co-partner
and manager of the Ann Arbor Press,,
testified for nearly five hours today
in defense of the labor policies of his
plant before a National Labor Rela-
tions Board examiner. Wiltse denied
that he discharged workers for union
activities, but admitted suggesting
that his employees form their own
collective bargaining association tor
meet the conditions of a Michigan
statute.
He declared that the State act gov-
erning printing contracts jeopardized
$35,000 of his business with State
tourist associations and threatened
a working agreement with the Uni-
versity of Michigan. (The statute,
Public Act No. 153, requires that'
printing paid for wholly or in part by
the State of Michigan shall be done
only in plants that maintain working
conditions equal to those prevailing'
in the locality where the work is
done.)
Wiltse said he discussed the situa-
tion with his employees but made no
effort to obtain control of the In-
dependent Association of Ann Arbor
Press Employees, Inc., which they
formed. "I had no intention of vio-
lating the labor relations act," he tes-
tified. "I didn't want control of any
employees' association. No represen-
tative of the ITU (International Typ-
ographical Union) offered to organize
my shop at the time."
Attorneys believed that the hear-
ings on unfair labor practices would
end tomorrow (Thursday) with fur-
ther testimony from Wiltse and oral
argument by both company lawyer
and representatives ofnthe Interna-
tiona,= Typographical Union which
brought the charges against the
printing plant.
Wilteesaidthat the NLRB exam-
iner who came to Ann Arbor to inves-
tigate charges filed by the striking
local of the ITU failed to appear at
the plant until he urged the inves-
tigator to do so. He charged that the
examiner made only one trip to the
plant to observe working conditions
and that the man was apparently
"unfamiliar with business."
Wiltse insisted that he dismissed
men only for cause. He said he
"didn't like" the ITU and that he
had been blacklisted by the union
since 1920.,
Junior Engineers' Society
Takes 10 For Next Year
Triangles, honorary men's junior
engineering society, yesterday after-
noon initiated 10 sophomore members
after tapping them Monday night.
They are: David Cushing, Alfred
Chadwick, Almon Conrath, John
Hague, Thomas Jester, Eugene Klein,
Joseph Kennicott, John Mills, Lorenz
Rincek and Hadley Smith.
A joint dinner meeting, with the
outgoing members and initiates par-
ticipating, was held yesterday.
Report Amtoy
Taken By Japs
Subjects Safe
U.S. Gunboat Stands Ready
To Evacuate Americans,
If Danger Increases
Japan's First Attack
In South China Areaj
SHANGHA, May 12-(P)--Ameri-
can authorities early today reported
Japanese blue-jackets had taken the
important port of Amoy, 600 miles1
South of Shanghai, driving the Chin-
ese defenders off Amoy Island where
the city is situated.
The Japanese landing forces, back-
ed by warships anchored off the
South-east Chinese coast, forced
China's Cantonese detachments to re-,
tret to the mainland.
Reports from Americans in Amoy1
said all United States citizens, includ-
ing those on Kulangsu Island-the
principal foreign settlement-were
safe.
The United States gunboat Ashe-
ville was standing by to evacute them
if the Chinese-Japanese conflict en-'
dangered their lives.
British naval advices from Amoy
said a detachment of United States
marines had landed from the Ashe-
ville on Kulangsu to protect Ameri-
cans and American property.
The same sources said the Japanese
were in complete possession of Amoy.
Fifty thousand Chinese refugees
fled to the foreign settlements to
escape bitter fighting in the narrow.
winding streets of Amoy. The Ameri-
cap reports said there were no dis-
turbances, however, on -Kulangsu
which is half a mile off Amoy Island.
The sudden Amoy attack, launched
yesterday, was Japan's first thrust
into South China. Chinese declared
it was aimed to prevent the flow on
munitions, men andlsupplies from
the South to Central China where
Japan's war machine is stalemated
srth bitterly resisting Chinese armies.
Progressives
To Join A.S.U.
Obtain University Sanction
For Affiliation
Permission for the Progressive Club
to affiliate with the American Stu-
dent Union was officially granted yes-
terday by the Committee on Student
Affairs at a meeting in the office of
the Dean of Students.
The committee, which is composed
of administrative officials of the
University and heads of leading cam-
pus organizations, had stipulated at
the time of the club's formation last
year that it would have to wait one
year before affiliating with the A.S.U.
or any other national organization.
For the past year the club has been
a recognized independent campus
group.
At yesterday's meeting officers of
the club appeared before the com-
mittee to answer questions concerning
the club's activities during the year.
A meeting of the club is planned for
the near future to discuss A.S.U. af-
filiation, Joseph Geis, '39, president
of the organization, said.
Rouse Committee
Passes Flood Bill
WASHINGTON, May -11.---
$375,000,000 flood control program
cutting present requirements for local
financial participation by 70 per cent
received approval of the House Flood
Control Committee today.
The amount is $75,000,000 more
than suggested by President Roose-
velt. However, the bill appropriates
no money, merely authorizing proj-
ects. Selection of most projects would
be left to the Army engineers.
Construction would begin upon ap-
propriation of funds by Congress and
assurances that interested commu-
nities could meet required local con-
tributions for lands, easements and
rights of way for dam and reservoirs
Chairman Whittington (Dem.
Miss.) said the bill would be intro-
duced immediately and efforts made
to get prompt consideration.
Spoden Elected President
Of Student Civil Engineers
S Harold Spoden, '39E, was elected
nneidnt nf the sudent branch of
Home Is The Place For Women
Says Unmarried Nino 'Martini
Tenor Sings Tomorrow;
Artur Rubenstein And
HackettAppear Today
By VIRGINIA VOORHEES
Women are not women until they
marry, unmarried Nino Martini, Met-
ropolitan Opera star tenor to be
heard as a soloist with the Philadel-
phia Orchestra at the May Festival
concert Friday, told the Daily in an
interview last night.
What Martini stated, in his contin-
ental manner, was that "a woman's
place is in the home." American wom-
en, he believes at least those not
spurred by necessity, work, to assert
their independence, to be "boss." On
the continent a woman finds her
greatest pleasure in the performance
of her duties in the home, he said
with an approving smile,
When asked his opinion of motion
picture work as compared with that
on the operatic stage, Martini called
the latter "very dull," though it is
good publicity. He had no comment
to offer concerning his latest cinema
effort, "Music for Madame."
At 8:30 p.m. today Arthur Ruben-
stein, pianist, will continue the fes-
tival concert series. Also appearing
in Hill Auditorium tonight will be
To Sing Tomorrow
Vargas Halts
Brazil FascISt
Revolt As Grip
Is Tightened
Many Killed As Insurgents
Storm Palace; Dictator
Wields Gun In Battle
Spokesmen Predict
Navy Purge Near
NINO MARTINI
Agnes Davis, Chase Baromeo, Arthur
Hackett and the University Choral
Union. .
The soloists will be accompanied
by the Philadelphia Orchestra, in a
concert that will present only the
work of Wagner.
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Beta Michigras
Booth Makes
Largest Profit
Mosher, Phi Kappa And'
Pi Beta Come Next As
LeadingMoney-Makers
Beta Theta Pi's "Follies Berserk"
netted the largest profit of any booth
at the Michigras last Friday and Sat-1
urday, Hugh Rader, '38, chairman,
announced yesterday. -
Mosher dormitory's flower booth
took in th'e most money but did not
make as much profit. Phi Kappa
Psi and Pi Beta Phi's "Esquire Roof"
came in third. Honorable mention
welttto"Pi Lambda Phi's bingo booth
and to Phi Delta Theta's weight
guessing side-show.
The Michigras itself grossed near-
ly $4,800, Rader said. The net profit
wlil not be known for another week
when the final bills come in. More
than 7,000 people attende the car-
nival, which was held as a benefit
for the proposed Women's Athletic
Association's swimming pool and the
Varsity Band's trip to Yale.
Rader said that any organization
which has a bill for a Michigras booth
should present them at 2 p.m. tomor-
row at Dean Walter B. Rea's office.
Deadline Is Set
For aNYA Blanks
Prof. Gram Says Answers
Are DueMay 15
NYA questionnaires must be re-
turned to the University NYA office
by May 15, Prof. Lewis M. Gram of
the engineering college and chair-
man of the University NYA Board
said yesterday.
The information derived from thes
questionnaires which were distributed
by the State office at Lansing to all
college students in Michigan working
on NYA is to be used in writing a re-
port on NYA in Michigan, he said. It
is. important that- they be returned
timmediately because they may deter-
mine how much money, if any, the
University will get next year for NYA.
Of the 960 questionnaires which
have been sent out fron= the Univer-
sity early in April, only 280 have
been returned, according to Profes-
sor Gram. At Wayne University
and Michigan State College almost
100 per cent returns were received.
Merit Commission
To SurveyPayrolls
LANSING, May 11.-() -The
'State civil. service departmen
launched a survey of payrolls in sev-
eeral hundred private business an
industrial plants today, to guide its
recommendations for a salary sched-
ule for state employees.
The law requires that the depart-
'ment consider two principal factos
I in standardizing salary schedules in
f State government-pay rates prevail-
Ickes Refuses
To Sell Nazis
Native Helium
Will Not Permit Exporting
Of Gas To Germany;
Roosevelt Stands Pat
RIO DE JANEIRO, Brazil, May 11.
- ()') - President Getulio Vargas
crushed an armed revolt of Brazil's
greenshirted fascists today and ap-
parently strengthened his position as
dictator.
There were many dead.
Official casualty figures early to-
night placed the known dead at 12
and the wounded at 2. Police head-
quarters said 500 alleged plotters were
arrested.
Pistol in hand, Vargas helped fight
off greenshirts attempting to invade
his presidential palace. A few hours
later he started military and police
court action to smash completely the
outlawed Integralist Greenshirt or-
ganization.
Revolt Wholly Brazilian
The revolt, which apparently was
wholly Brazilian in character, was
smashed by a combination of polipe
and army thrusts. An undetermined
number of rebels were killed and
wounded in abortive assaults against
government buildings and residences
of principal army generals. Hundreds
were arrested.
The three-and-one-half hour up-
rising ended at 5:30 a.m. with the ar-
rest of the last groups of roaming
fascists. Vargas set to work at once
to clean up the situation. He de-
clared martial law at noon. Plans
were said to have been started to
have the national security court, the
nation's highest, hear charges against
those implicated within the revolt
within 24 hours.
Admiral Is Arrested
Presidential palace spokesmen pre,
dicted a "purge" in the navy would
result from the rebellion. It was
pointed out that Admiral Eduardo
Taveres was arrested as a participant
in the uprising.
Belmiro Valdeverde, field comman-
der of the rising by fascist Integral-
ists whose organization was outlawed
by President Vargas after he grasped
authoritarian control of Brazil last
Nov. 10, was lodged in jail. Plinio Sal-
gado, leader of the Integralists, was
said to be the leader of the rebellion.
Pan-American Aairways officials
said police thwarted easily an attempt
to seize the Pan-American airport.
Guerrilla Raids
,
WASHINGTON, ,May 11.-(A') -
Germany apparently lost out in her
bid for American helium today when
Secretary Ickes, embattled critic ofs
Naziism and Fascism, stuck to his'
refusal to permit exports of the gas
and President Roosevelt assumed a,
hands-off attitude.
White House attaches announced
that Mr. Roosevelt could do nothing,
because the law requires the unani-
mous consent of the six-man Muni-
tions Control Board (of which Ickes
is a member) before the Reich can
get the non-inflammable gas to in-
flate her new transatlantic zeppelin.
This announcement raised the ques-
tion whether Mr. Roosevelt himself
is very eager to see helium go to the
Reich. It was assumed that if the
President had expressed a strong de-
sire to ship the gas, his subordinate,
the Secretary of the Interior, would
have fallen into line. In fact, Ickes
said several weeks ago he would abide
by any hint from his chief.
Ickes has said he had no iron-clad
guarantee from Germany that the
helium would not be used for military
purposes. Many foes of Naziism have
objected to the United States' helping
to "arm" the Reich. The Germans,
on the other hand, have said the gas
was to be used solely for commercial
flights.
Merit System
May Cut 2,500
Director Declares Goal Is
IncreasedEfficiency
DETROIT, May 11.-(P)-William
Brownrigg, State civil service direc-
tor, told the Wayne County League
of Women oVters today that 2,000
to 3,000 State employes probably will
be dismissed when the civil service
is in full operation.
"Maybe as many as 1,000 employes,"
he added, "will receive rather severe
cuts in salary and perhaps another
thousand will. receive increases."
Brownrigg said "our goal is to give
the taxpayers better government
service with fewer employes and to
save from one to three million dollars
a year."
He said that when the Civil Service
Commission began its work last fall
the State was paying approximately
$25;000,000 yearly to 17,000 persons
doing 800 ,types of work in 138 dif-
ferent units.
Di Palma Elected
SailingClub Head
Tony Di Palma, '398, was elected
commodore of the Michigan Sailing
s Club for the 1939 school year 'last
1 night at the annual May meeting of
the club.
Letters Reveal Terror Behind
Murder Of Chinese Educator
By STANLEY M. SWINTON
An unbelievable tale of how Chi-
nese gangster assassins in the em-
ploy of Japan slew Dr. Herman C. E.
Liu, president of the University of
Shanghai, after the educator refused
to abandon his post is told in letters
received here by Mrs. Christene
Chambers, Grad., a member of the
University of Shanghai faculty on
leave here.
Despite the fact that previously a
hand grenade had been thrown at
him and a basket of poisoned fruit
sent him, Liu had steadfastly de-
clared he would continue his work
in the Chinese cause. "There are two
fronts-the battle front and the edu-
cational front," he told friends. His
wife and he jested over which would
be murdered first.
At 8:30 a.m. April 6, the letters
report, Dr. Liu was waiting for a
bus at the corner of Bubbling Well
n"A1x artiir W-n-fC.inthe innnnead-
injured three Chinese spectators one
fatally.
A second assailant was captured
and, under police questioning, de-
clared he was a "loyal Chinese" and
that Liu was a traitor. Later, he ad-
mitted he had been hired by a gang
chief in Japanese territory.;
Mrs. Liu, a Northwestern graduate
and famed worker for the -poor, who
had herself been threatened, was
stunned by the death, but after she
recovered from the first shock, she
declared: "We Chinese have been too
indifferent, too selfish, in this time
of crisis. Perhaps this will wake
some up."
Telegrams, cables and visits from
diplomats deluged the Liu family
Students throughout the country,
who had idolized the educator, re-
garded him as a martyr to the cause
of education. Hu Shih, famous Chi-
nese philosopher, cabled from Eng-
land "Heartfelt sympathy Herman's
m a rrdrn_ "
Hamper Rebels
Loyalist's 'Lost Division'
Attacks In North
HENDAYE, France (At the Span-
ish Frontier), May 11.-(P)--The
Spanish government's "lost division"
sallied forth from its hidden Pyrenees
mountain stronghold today in new
raids on the Insurgents' northern
lines.
Military dispatches said the divi-
sion, which has become a symbol,of
heroism to the Barcelona Govern-
ment and a thorn to the Insurgents,
was hampering Generalissimo Fran-
cisco Franco's preparations for a driv
near the French frontier.
Insurgent and Government reports
conflicted. Insurgents said the di-
visions attacks were repulsed with
heavy losses and it remained isolated
and surrounded. Government ad-
vices declared Franco's artillery was
ineffective against the "lost divi-
sion's" threat in Spain's mountain-
ous far north.
Holmes To Discuss
Religion On May 16
Prof. Jesse H. Holmes of Swarth-
more College, chairman of the Asso-
ciation of Religious Liberals, will
speak on "Liberal Religion" at 4:15
p.m. Monday at Lane Hall, under the
auspices of the Student Religious As-
sociation and the Ann Arbor Friends
Society.
Professor Holmes is a, recognized
leader in the peace movement and has
delivered many lectures for the