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May 28, 1938 - Image 1

Resource type:
The Michigan Daily, 1938-05-28

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The Weather
Showers today; tomorrow
fair, increasing cloudiness,
warmer; possibly showers.


3k iguu


Cordell Hull'
And Non-InterventionĀ«.



Trust LawViolation
By Auto Concerns
Is Charge By Jury

General Motors, Chrysler,
And Ford Indicted For
sherman Act Conspiracy
Government Trial
Date Is Not Yet Set
SOUTH BEND, Ind., May 27.-(P)
-A federal grand jury returned in-
.dictments here late today charging
three large automobile companies
with conspiracy to violate the Sher-
man Anti-Trust Law.
The indictments named General
Motors Corporation, .Ford Motor
Company and Chrysler Corporation,
their affiliated finance companies
and 49 individuals.
They charged the companies with
conspiring to promote monopoly by
coercing dealers to finance car sales
through the companies' own finance
firms, District Attorney James R.
Fleming said.
The indictments came after a five-
day investigation, during which the
jury heard witnesses from many mid-
western states. Its work finished, the
jury adjourned after making its re-
port to Judge Thomas W. Slick in
Federal Court.
Charges against the three motor
companies were elontained in three
separate indictments. These alleged,
the district attorney said, that the
companies conspired toward "stifling
and interfering with interstate com-
merce for promotion of monopoly"
and that their actior caused "ir-
reparable damage" to small automo-
bile finance companies.
One indictment was against the
General Motors Company, the Gen-
eral Motors Sales Corporation, the
General, Motors Acceptance Corpora-
tion and 19 individuals, including Al-
fred P. Sloan, Jr., and William S.
Another named the Ford Motor
Company,,the Universal Credit Cor-
poration and its divisions, and Edsel
Ford and 12 other individuals.
A third was against the Chrysler
Corporation, the Chr'ysler Sales Cor-
poration, the Dodge Brothers Com
pany, the DeSoto Motor Corporation,
the Plymouth Motor Corporation and
the Commercial Credit Company and
its branches. This also named Wal-
ter P. Chrysler and 17 other persons.
Wording of the indictments was al-
most identical, Fleming said.
It was the government's second at-
tempt to obtain indictments against
the "big three" of the automobile in-
dustry. A grand jury at Milwaukee
considered similar evidence last win-
ter, but was dismissed December 17
before it could make a report.
Dismissal of this jury was ordered
by Judge Ferdinand A. Geiger on
grounds that government attorneys
showed "impropriety" in discussing a
proposed settlement with counsel for
the automobile firms while the jury
still was studying evidence.
Rebels Attack Via
Mountain Ranges
HENDAYE, Frace, at the Spanish
Frontier, May 27.-( P)-Spanish In-
surgent armies attacked today
through mountain ranges north of
Valencia and northwest of Barcelona.
Air raids which extended to Cer-
bere, France, last night bore evidence
they were campaigning to shatter
rearguard and front-line resistance
at the same time.
Insurgent advices reported the oc-
cupation of El Castellar, nearly 16
miles east of Teruel and 65 miles
from the coast, in the drive toward
the Teruel-Sagunto Highway.
Sizemore Ineligible
For Board Position
Roy Sizemore, '39F&C, was de-

clared ineligible yesterday for the
position on the Board in Control of
Student Publications to which he was
elected Tuesday. His place on the
Board will be taken by Charles Ja-
cobson, '39E, who received the fourth
highest total in the voting.
George Quick, '38, and Robert
Kahn, '39, the other members elect-
ed will serve on the Board. In the
election which brought forth 1,400
students to the polls, Quick polled1
'713 vouftea Size7more 524. andi Kahn

Ne w Chinese
Counter Attack
Kills 1,000 Japs
Lunghai Railroad Clash
Becomes Major Battle;
Tanks Lead Offensive
SHANGHAI, May 28.-(Saturday)
-(P)-Flame-spitting tanks led a
Chinese counter-offensive that turned
the scattered fighting along the
Lunghai Railroad today into one of
the major battles of the undeclared
Both sides declared the fighting at
Lanfeng, 28 miles east of Kaifeng,
was as intensive and bloody as any
in more than 10 months of warfare.
Chinese reported several villages
razed and more than 1,000 Japanese
killed in fighting that spread along
the railroad almost to Kweiteh, 59
miles east of Lanfeng.
Japanese themselves said 20 Chi-
nese divisions, including about 100,-
000 well-equipped soldiers, were mak-
ing a stand at Lanfeng comparabl in
scope to the defense of Suclow,.
which fell just a week ago after a
fierce month-long battle.
An increasingly large number of
modern tanks, some equipped with
flame throwers, have bolstered the
Chinese lines, Japanese reports said,
indicating the defense troops'
strength is by no means spent.
Health authorities in Shanghai
disclosed a choleral epidemic had
broken out in Pootung, devastated
industrial area across the Whangpoo
River from the city's International
Morgan Hints
At Court Action
Former TVA Head Calls
His Removal Illegal
WASHINGTON, May 27.--)P)-
Court action challenging President
Roosevelt's power to oust Dr. Arthur
E. Morgan from the chairmanship of
TVA was advanced as a definite pos-
sibility tonight by Dr. Morgan him-
"I am certainly considering it," he
Obviously tired, he prepared to re-
turn to his Ohio home after the first
two days of the Congressional inves-
tigation of TVA, one spent on the
stand levelling a series of accusations
at his former colleagues of the TVA
board and the other listening while
they lodged charges against him.
But before going, he formally, if
inferentially, stated again his view
that the President removed him from
office illegally. He wrote a letter to
Dr. Harcourt A. Morgan, addressing
the letter as "vice chairman" of TVA.

F.D.R. Fails
To Sign New
Tax Measure
Calls Attention Of Nation
To Tax Dodging Which
May BeBrought Back
Lets Act Become
Law Automatically
27.--P)-President Roosevelt let the
new tax bill become a law without
his signature tonight, adopting this
unusual procedure as a means of
calling "the definite attention of the
American people" to what he con-
sidered two vital defects.
The measure, he said, may restore
"certain forms of tax avoidance," be-
cause it retains but a remnant of the
old tax on profits which corporations
hold in their treasuries instead of
disbursing as dividends upon which
stockholders must pay income tax.
Principle Abandoned
And, secondly, he asserted, it "ac-
tually abandons" the principle of di-
viding the cost of govermnent among
those best able to pay. He said that
under the capital gains section the
tax rate is the same whether the in-
crease in personal wealth be $5,000
or $500,000.
Congress, he said, should "under-
take a broader program of improv-
ing the federal tax system" at its
next session.
But, meanwhile, he declared that
the bill before him contained fea-
tures which were of such value that
he found it impossible to veto the
The President picked an unusual
forum for his remarks on the comp-
licated subject. They were made to-
day in an address to the graduating
class of the high school at the Fed-
eral subsistence homesteads, Arthur-
dale, W. Va.
President's Difficulty
Mr. Roosevelt said:
"You will see the difficulty in which
your President has been placed.
"This tax bill continues features
that ought to become law, but it con-
tains several undesirable feat.ures,
especially the ones I have just been
talking about.
"If I sign the bill . . . many people
will think I approve the abandon-
ment of an important principle of
American taxation. If I veto the
bill, it will prevent many of the
desirable features of it from going
into effect.
"Therefore, for the first time since
I have been President, I am going to
take the third course which is open
to me.
Foresters To Hold
Annual Field Day
The Foresters Field Day, an old
tradition in the forestry school, will
be held on Memorial Day at Saginaw
Forest under the auspices of the For-
estry Club. The field day is open to
all members of the forestry school.
The program will consist of com-
petition in surveying, timber cruising,
target and range contests with rifle
and canoe racing. Frank Becker,
'39F&C, is chairman of activities.
Transportation will be furnished
by a fleet of trucks scheduled to leave
at 12:42 p.m. from the Natural Sci-
ence Building.

Hague's Cops
'Save Life' of
JERSEY CITY, N.J., May 27.-(P)-
Representative J e r r y O'Connell,
(Dem., Mont.), bitter foe of Mayor
Frank Hague, made a brief appear-
ance at Pershing Field tonight but
was whisked away by police beforehe
could deliver a prepared speech as-
sailing the state Democratic leader.
Taken by automobile to a police
station two blocks from the stadium,
he was closeted for a few minutes
with high police officials and then
taken to the Journal SquarenStation
of the Hudson and Manhattan Rail-
"We're taking him home," said
Public Safety Director Daniel Casey
as he left the Central Avenue Sta-
tion with O'Connell. "He wanted to
go home. He's perfectly satisfied. He
says the police treated him fine."
At a press conference later in a
Newark Hotel, however, O'Connell
declared he was "handled very
brutally" by the Jersey City police at
Pershing Field. He and Mrs. O'Con-
nell left on a 10:15 p.m. (EST) train
for Washington.
Casey, in a statement, denied
O'Connell's charge that he was
"jumped upon" or "handled very
brutally" by Jersey City policemen.
"That is not true, said Casey. "In
fact, O'Connell thanked me for the
service performed by Jersey City po-
lice, who probably saved his life by
rescuing him from the enraged
Schools Need
Home Backing,
Elliot Declares
Instructs Health Educators
Parent Cooperation Must
Parallel School's Work
It is useless to attempt to teach
anything in school and have it all un-
taught in the home, said Eugene B.
Elliot, Superintendent of Public In-
struction of the State of Michigan,
in addressing the 300 delegates to the
School Health Education Institute
which opened its two-day conference
yesterday in the Union Ballroom.
The Institute, which is sponsored
by the division of Hygiene and Public
Health and the Extension Service of
the University in cooperation with
the Michigan School Health Associa-
tion, merged yesterday with the Adult
Education Institute. Among the
speakers on today's program are Prof.
John W. Bean of the physiology de-
partment, Dr. Warren E. Forsythe,
director of the Health Service, Prof.
Mabel Rugen of the physical educa-
tion department and Prof. Kenneth
Easlick of the School of Dentistry.
Parents must have an intelligent
appreciation of what is being done in
schools, especially in work connected
with health education, in order that
the pupil's education be more than
just a waste of time, Dr. Elliott con-
Health Movement Beginning
The Health movement had its be-
ginnings during the World War when
the United States drafting program
revealed that a large proportion. of
those drafted were physically unfit
for service, Prof. John Sundwall, di-
rector of the hygiene and public
division and president of the Ameri-
can Health Association, said in the
opening address which followed the
introductory remarks by Dr. Bernard
Since that time, he continued, doc-
tors, nurses, dentists, dieticians,

physical therapists and others have
all entered the school health service.
More cooperation between the pa-
rent, the teacher and the school
physician with each physician direct-
ing his own program and outsiders
placing unlimited confidence in him
was the plea of Dr. Henry Cook, presi-
dent of the Michigan State Medical
Run School Health Program
School health programs must be
run by medical people who have
health education foremost in their
minds and there must be no disagree-
ments between the school and the
health authorities, Dr. Cook empha-
Prof. George A. Carrothers of the
School of Education read Dean James
B. Edmonson's paper on "Some De-
batable Issues in Health Education."
Modern college health programs
stress the recreational aspects of
health education and neglect hygiene
and scientific knowledge, Professor
Carrothers said. Government control

i T



Gyeneral rike
City-Wide Transportation
Strike Averted In Akron
By Withdrawing Police
Writ Is Issued For
Strikers' Release
(By Associated Press)
Detroit's CIO unionists yesterday
threatened a 24-hour general strike
of all CIO men in the Detroit area
unless they received assurances
against "polce brutality and their
use as strikebreakers."
In Akron, a threatened city-wide
transportation strike was averted
when extra police withdrew and a
"normal" picket line was established
at the Goodyear Tire and Rubber Co.
After a strike riot in Detroit in
which nearly 60 persons were injured,
Tracy Doll, international board mem-
ber of the CIO-affiliated United Au-
tomobile Workers, voiced the "labor
holiday" threat.
Police To . Act
Mayor Richard Reading asserted
that police would continue to act
"for the' preservation of law and
Injuries suffered yesterday at the
American Brass Co. plant where a
CIO union struck to protest a wage
cut several weeks ago left six police-
men and four unionists still in hos-
pitals, two in serious condition.
Union leaders abandoned plans for
another demonstration at the brass
plant today but Doll said that "on
next Wednesday we'll make yester-
day's affair look like a warmup."
Doll said 300 officers of CIO unions
here voted to send a committee of
ten to protest to the City Council
next Tuesday against police activities
in the brass strike.
Issues Writ
On a petition of a UAW attorney,
Recorder's Judge John V. Brennan
issued a writ of habeas corpus, re-
turnable at 11:30 a.m. today, for re-
lease of 28 persons the union claimed
were held by police in .connection
with Th'ursday's. riot. Police said
only 16 union men were held.
As prosecutors sought to learn the
cause of the picket clash, Mayor
Reading conferred with Police Com-
missioner Heinrich A. Pickert, and
then said, "I am convinced the ac-
tion taken by the police was for the
preservation of law and order, and
they will continue to take such ac-
BanquetG Given
Honoring Cone
Professor Taught Here
For Thirteen Years
Lauding him for his great personal
friendship for both students and fac-
ulty alike, friends of Prof. George C.
Cone of the landscape design depart-
ment gathered last night at the
Union to honor him as his last se-
mester of teaching in the University
draws to a close.
Prof. George G. Ross of the land-
scape design department acted as
toastmaster of the dinner. Speakers
included Dean Edward H. Kraus of
the literary college, Prof. Harlow O.
Whittemore of the landscape design
department, Prof. Wells I. Bennett,
dean of the architecture school, Prof.
Norman H. Anning of the depart-
ment of mathematics, George Allen,
a graduate who is now working on
the campus of Michigan State Col-
lege, and George Hayward, Grad.

Professor Cone first came to the
University from a position with O.
C. Simonds and Company, in 1916.
His first work here was as a short
course instructor. Since becoming a
member of the faculty in 1925 he has
been active in Ann Arbor and Mich-
igan Garden Clubs, and has con-
tinued a small private practice. He
is a member of the American So-
ciety of Landscape Architects, and
the Michigan Horticultural Society.
Murphy Is Warned
Of Highway Needs
LANSING, May 27.-()-Warned
that a "road-building holiday" would
be inevitable unless further state
funds were forthcoming, Governor
Murhy greased the skids today for

I -

Regents Approve
Plan For $200,000
Medical Dormitory,

Where There's Smoke
There's A Fire, Maybe

Plan Qccupancy By Fall
Of 1939; $20,750 Gifts
Presented To University
Eight Faculty Men
Receive Promotions

For the second time in two days,
Ann Arbor's trucks and Ann Arboa's
firemen marched up thestreet and
marched down again; and for the
second consecutive time, no fire.
Yesterday the alleged fire was in
the Natural Science Building, and
upon hearing of the impending major
conflagration, the chief sent out two
pumps, an aerial, a service wagon,
and his own car. Alas, there were
no fair maidens to rescue from the
lofty heights of the third story, nor
were there any Druid initiates who
could be blamed for the dastardly
affair. The cause of the alarm was
merely a smoking belt on one of
the building's smaller motors.-
German Press
Ceases Blasts
Against Czechs
Lull In War-like Talk Held
Due To Hitler's Desire
To Prevent Hostilities
BERLIN, May 27.-P)-As if by
order, the German press today ceased
abruptly its blasts against Czecho-
slovakia and Western democracies it
accused of pro-Czechoslovak sympa-
The lull in the war-like talk was
said in official quarters to be due
to Reichsfuehre Adolf Hitler's firm
determination to preserve peace in
spite of "provocations" by the Czech-
Among these "provocations" were
the defense preparations of last week
and alleged border violations by mil-
itary airplanes.
The only new incident reported to-
day was in Kaplice (Kaplitz), north
of Linz, where an Austrian German
farmer allegedly was ill-treated by
Czechoslovak soldiers because he
could not produce his identity card.
In connection with the sudden
press quiet and the Reichsfuehrer's
insistence upon preservation of peace
it was stated here that "not only
have no German troops been dis-
patched to the German frontier but
two whole regiments sent into Aus-
tria at the time of Anschluss have
been withdrawn to their original gar-
rison at Augsburg."
Augsburg is about 150 miles from
the Czeehoslovak border.
Cedillo Eludes
Federal Pilots
Rebel Leader Surrounded
By Government Troops
27.-(A)-Federal Government avia-
tors today forced down an airplane
carrying Rebel General Saturnino
Cedillo and the Peasant Army leader
fled with five followers.
Troops virtually surrounded the
site of the forced landing at Estan-
zuela, about nine miles northwest of
Cedillo and his followers jumped
from the plane and fled into thick
Reports reached San Luis Potosi
that the Rebel chieftain had been
captured, but they were not con-
firmed officially. In fleeing, Cedillo
left behind five suitcases.
Federal troops under Gen. Lucas
Gonzalez set out immediately to trail
the fugitives.
Cedillo, rightist foe of President
Lazaro Cardenas' Radical Mexico for
Mexicans program, was said to have
made a hurried takeoff when a Fed-
eral force surprised him and a band

of his followers in the rugged Huas-
teca Hill country of San Luis Potosi
Night Sacrament Attracts
Eucharistic Worshippers

Construction of a $200,000 self-
liquidating Medical School dormitory
to be ready for occupancy in the fall
of 1939 will begin in the near future,
it was announced yesterday after the
Board of Regents approved the pro-
posal at their regular monthly meet-
At the same time the Regents ac-
cepted gifts totaling $20,50 and an-
nounced eight promotions.
The dormitory action, a step for-
ward in the University's a.ttempt jto
centralize student housing and im-
prove the rooming situation, came as
the result of a proposal presented by
President Ruthven.
Details on how the building is to
be initially financed are not avail-
able. It will be erected at one of two
unrevealed sites, no final choice hav-
ing been made.
Forestry Trust Fund
Largest of the donations received
was $15,000 from the Charles L. Pack
Forestry Trust Fund which will be
used to supplement the Income of
the Charles L. Pack Forestry Founda-
tion. In the past there has been
an annual gift of $3,000 and this
year's larger offering is the final
Faculty promotions included that
of Prof. Robert S. Ford from assistant
professor of economics and director
of the Bureau of Government to as-
sociate professor and director of the
Bureau of Government.
Mentor L. Williams, instructor in
English, was made an assistant pro-
fessor of English.
Dr. Jerome Kahn, instructor in in-
ternal medieine, was made an as-
sistant professor in internal medi-
cine, effective July 1.
Dr. Isidore Lampe, instructor in
roentology, was- given his assistant
professorship effective July 1.
Riegel Made Professor
Prof. John W. Riegel, associate
professor in industrial relations and
director of the Bureau of Industrial
Relations, was made a full professor
and director of the Bureau of In-
dustrial Relations.
Herbert Youtie, instructor in
Greek, was made an assistant profes-
Prof. Cameron Itaight was promot-
ed from an assistant professor of
surgery to an associate professor of
Dr. Ralph Sommer, assistant pro-
fessor of operative dentistry and ra-
diology, was made an associate pro-
Sabbatical leave was granted Prof.
Robert Rodkey of the School of Bus-
iness Administration.
Two new members were appointed
to the Board in Control of Physical
Education. Prof. Carl E. Badgley of
the Medical School will replace Prof.
John Alexander of the Medical
(Continued on Page 6)
Frosh 'Picnic ,
To, Draw 200
Ball Game And Ginger Ale
Feature Outing Today
The class of '41 goes picnicingto-
day with more than 200 expected to
be present at 2 p.m. on the Library
steps in readiness for a mass march
to the Island, Anita Carvalho, class
president, announced yesterday.
Equipment for volleyball, base-
ball, tugs-of-war and half-a-dozen
other games have been furnished by
Prof. A. A. James of the intramural
department. A feature of the after-
noon will be a baseball encounter be-
tween literary students and engineers.
Free ginger ale will be provided for
all who take part with other refresh-
ments available for those who, wish to
purchase them. Those attending the
picnic, which ends at 5 p.m., prefer-

ably should be without dates, it was
announced. Chaperons for the af-
ternoon will be Mr. Carl Reichen-
bach, Mr. and Mrs. A. T. Gaiss and
nr.n d Mr qA 1Ff. T1T<- ',nrrnw I Mem -

Pauline Lord's Presence Here
Recalls "Modern'_Play Of '20's

Sceneryless, costumeless plays are
a fad in New York now but Ann Ar-
bor originated the idea a decade ago.
In those days the Whitney was
the ace showhouse locally. Stock
companies and road shows dropped
in to play the University City. The
big ones did one night stands before
moving on to Detroit or Chicago.
Smaller companies stayed three days,
sometimes even a week.
Ask Pauline Lord, who opens Tues-
iay at the Lydia Mendelssohn in "The
Late Christopher Bean" and she'll,
tell you the story, a tale of difficul-
ties which were common to touring
companies of the Jazz Decade. And
James Mernan, who managed the
Whitney during the boom days, veri-
fies the yarn.
At the time Miss Lord was doing
a play whose title is now forgotten.
After showing in Boston, the cast was

Weren't they on the train? No! A
frantic search ensued, but still there
were no costumes. What to do?
Only one thing-play the performance
straight. And play it straight they
did--leaving props and costumes to
the audience's imagination. The re-
action, if memories serve, was pleas-
ant if not enthusiastic.
Since that time Miss Lord has be-
come a leading comedienne-but it
was the experience gained in such
tours, the years in repertory and
stock, which made her rise to the top
possible, she is convinced. For the
same reason she says, the young
actor will experience difficulty in try-
ing to get into the "big-time." If mo-
tion pictures (of which Miss Lord
distinctly disapproves) do not seize
him before his talent is mature, he
will run into the omnipresent diffi-
culty of getting roles. The theatre
is a discouraging profession for even
ftc n t n amh*,it ,.n,'.*lt- fA-b- it.

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