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November 05, 1937 - Image 1

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The Michigan Daily, 1937-11-05

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The Weather
Continued cold with possible
snow flurries.

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KIatj

Editorials
The Governor Sneaks.,.
The Liberal Education ..
Obituary For The Ivory
Tower A

VOL. XLVII No. 35

ANN ARBOR, MICHIGAN, FRIDAY, NOV. 5, 1937

PRICE FIVE CENTS

_ _ _ _ _ _ _ _ _

Murphy Lauds
MeritSystem
Atl9thAnnual
PressMeeting
Personnel Administration
Is In Need Of Reform
He Tells State Editors
Brumm To Present
'Puppets'_Tonight
Gov. Frank Murphy singled out
four "areas" of State personnel ad-
ministration yesterday in which it is
"most urgent" that civil service re-
form be pushed to the limit.
Opening the 19th annual session
of the University Press Club of Mich-
igan, the Governor called the present
a particularly opportune time for re-
form in the public service. An awak-
ening independence of political
thought and interest are instru-
ments that can now be put to good
public use, he said.
Purchase and sales, pardons and
paroles, personnel and administra-
tion of the liquor supply are the
areas which the Governor said should
receive particular and immediate at-
tention. These departments, as the
pulse of the state government, he ob-
served, are the firstthatshould be
purged of the "spoils system" and its
attendant favoritism, nepotism and
privilege. The conduct of govern-
ment employees must pe impeccable
when a state does from three million
to five million dollars of liquor bus-
iness per month and has a total per-
sonnel of 11,500 employes whose sal-
aries consume about 70 per cent of
every tax dollar.
Citing the results of a civil service
study conducted by a special commis-
sion, the Governor deplored the con-
dition of the 19 state departments
which "with a few lonely exceptions,"
were shot through with both privilege
and favoritism, to an extent that was
appalling to contemplate." Civil serv-
ants were found to be entirely un-
suited for their jobs, political activity
caused an incalculable loss of time
to the State, morale was low and
security was entirely lacking, he said.
11 The absence of security, the former
governor-general of the Philippines
remarked, is one of the greatest trials
the American people face. Worker
and farmer alike, he said, must have
security assured them if the govern-
ment is to function at its most effi-
cient limit.
Governor Murphy closed his ad-
dress with a plea for an enlarged state
hospitalization program. There are
at present 10 hospitals with a pop-
ulation of from 18,000 to 20,000 pa-
tients. In addition to providing for
the mentally and physically afflicted,
the state should engage in research
and shape its program toward a more
adequate prevention. "The saddest
day of my life," he said, "was spent
three weeks ago during a visit to an
epilepsy clinic." The problem here,
the Governor continued, is to make
the public "mental conscious." The
idea of mental health and the ap-
proach to mental hygiene has not re-
ceived enough attention and out-
patient clinics and schools should be
(Continued on Page 6)
Mr. Roosevelt,
LaG uardia Chat
Visit To Mayor Is Seen As
Sign Of His Approval

NEW YORK, Nov. 4.-R)-Presi-
dent Roosevelt conferred .today with
Fiorello H. LaGuardia, in a gesture,
interpreted as reaffirming his friend-
ship with the liberal and labor groups
which had a decisive part in the may-
or's overwhelming victory Tuesday.
His extraordinary talk with La-
Guardia-a talk that involved his
coming here from Hyde Park-was
held as a public indication that the
result of the election was in no sense
displeasing to the White House.
The President and the Mayor met
in the Roosevelt town house.
As he left, LaGuardia said it was a
"purely social call." Postmaster Gen-
eral James Farley, who supported La-
Guardia's unsuccessful Democratic
opponent, Jermiah T. Mahoney, had
no comment.. He accompanied the
President on a late afternoon trip
back to Washington.
Later, Farley revealed that he
joined the President and Mayor La-
Guardia after they had been in con-
ference for 10 or 15 minutes.
On election night, Mr. Roosevelt
was quick to congratulate the Mayor,

Wherein The Dark Intricacy
Of Short-Selling Is Explained

Independents'
Organizational

Adolf

Hitler

May Settle

The Story Of The Monster
Of The Market Is Told
With Waterman's Help
By ALBERT MAYIO
That terrible ogre Short-Selling
was brought into the daylight to be
scanned by us ordinary mortals to
whom "bulls" and "bears" are only;
animals by Prof. Merwin H. Water-
man of the business administration!
school yesterday.
First of all, what is short selling?
It's selling stock that oe doesn't own
for one thing. A trader puts up a cer-
tain cash percentage of the amount
of stock he wishes to sell but which
he doesn't own. (Under the old rule
of the New York Exchange this per-
centage was ten points. The Federal
Reserve Board raised this margin to
50 per cent last week).
His broker then borrows from other
brokers as many shares as the short-
trader wants to sell. The borrowing
broker, acting in behalf of the short-
trader, gives the lending broker the
cash percentage which his customer
has givenehim and supplies the dif-
ference needed to cover the value of
GOP Debates
On Advisability
Of '38 Caucus
Committee To Vote Today
On Proposal For Holding
Mid-Term Convention
CHICAGO, Nov. 4.-(P)-A projec-
ted mid-term Republican convention'
-advocated by former President
Hoover but termed inopportune by
Alf M. Landon-was debated by mem-
bers of the national committee to-
night amid indications that a definite
decision would be deferred.
National Chairman John D. M..
Hamilton expressed the belief that
committeemen and committeewomen
who came here to vote on the proposal
tomorrow should select a policy com-
mittee which would report to the full
committee later on whether such a
conference should be held.
Hamilton said he would regard the'
appointment of a policy group num-
bering between 75 and 150 as the first
step toward a convention.
He voiced his views at a press con-
ference after increasing opposition to
the plan culminated in a letter from'
Landon defining his attitude for the
first time.
"I do not believe this is an oppor-
tune time for even the kind of con-
vention I have outlined," the titular
leader of the party wrote to Rep.
Joseph W. Martin of Massachusetts.
Col. Frank Knox, running mate of
Landon in 1936, Senator Vandenberg
of Michigan and Senator Townsend
of Delaware, head of the Republican
Senatorial committee, counseled de-
lay. Expressions of opposition came
from Senator Borah of Idaho, who
contended the voters would have no
part in the election of delegates, and
Rep. Martin, who figured a national
convention in 1938 would be a "major
political blunder."
Committee members reflected the
divergent opinions of the leaders.
Most of those who commented were
'"undecided."
AFL And CIO
Will Talk Union
Set-UpToday
WASHINGTON, Nov. 4. --W)
Peace committees of the AFL and
CIO agreed to reach the heart of

their controversy tomorrow with a
discussion of which industries should
have craft unions and which indus-
trial.

the stock which is to be borrowed.
This cash will be held by the lending
broker as security. (The lending
broker merely lends stock to his cus-
tomers who wish to be parties to the
littlergamble the trader starts off.)
(The lending broker merely lends
stock of his customers who wish todbe
parties to the little gamble the trader
starts off.)
The borrowing broker then gives
the stock to his customer, the short-

Plan Revealed Sio -Japanese

Conflict;

Two Branch Governing
Body, Seven Executive
Committees Proposed
Plan Zone Elections

9-Power Parley Hits Snag

seller, who makes the sale of the For Co'ming Year
borrowed shares as soon as he can.'g
This sale consummated, the short- +-
seller then leans back on his heels More than 300 independent men
and whistles to himself, hoping that heard officers of the Independent
the price of the stock which he bor-
rwed and which he must pay back Men's Organization tell them, at the
will fall. The lower themprice the group's first smoker yesterday, of an
greater the profit-for him. organizational setup which eventual-;
ly will icuealnnaflae e
When the stock has gone as low on campunude all non-affiliated men
as he thinks it will fall, the trader
buys from someone else who, perhaps, They also cheered Michigan's
thinks that the market will fall even football team to victory in a movingi
lower and wants to get out before picture reenactment of Saturday's,
it comes tumbling down on him. The game. The films were lent by Coach
'short-seller at the former higher Harry G. Kipke and were commented
price now becomes a buyer at a lower upon by Irvin Lisagor, '39. Daily
price of a number of shares equal to Sports Editor.
those he borrowed. The plan provides for a governing
He then pockets the profit, gives the body separated into an exdutive
6 n~ln~Pr on Ru.council, executive committees and a
promotional branch.
- An election, to be held early next
semester, will determine members of
alld A Ch the promotional branch. Several or-!
working among independent men.
UponAutarc y hExecutive councilmen will be
i Upo chosn onpetition to an advisory
board of outgoing seniors of the!
executive council and two faculty
Foreign Trade Convention diembers. A president, recordingj
Approves Hull Program and executive secretaries, treasurera
heads of the executive committees
As Stimulating Business and the zone council chairman will
comprise the council.
CLEVELAND Nov. 4.-(IP)--Dr. The seven executive committees
Henry F. Grady, Tariff Commissior which will perform a major share of
vice-chairman, pictured the recipro-j the organization's work will be the1
cal trade agreements tonight as ap- cooperative ,activities, publicity, serv-
plying a check upon the world's to- ice, sports and social committees.
The coordinating group will work
talitarian states. with other campus groups and the
At the same time Dr. Oswaldo( sports committee will arrange intra-
Aranha, Brazilian ambassador to the mural programs.
United States, said "Brazil will stop The promotional branch will cen-'
its commerce with Germany if the! ter around 10 zones of 300 members
United States will stop her commerce each, into which the campus will be
with Germany." He referred to Amer- divided. Each zone will choose its
ican traders' concern over the extent president zone organizer and 10
of ~Brazilian-German business, in-cemen withhe president sit-
mark the loss of some American ting on the zone council. The chair-
man of this council will be a mem-'
Dr. Brady On Program ber of the executive council.
Dr. Brady, formerly a dean of the A judiciary council, working in
program of the Foreign Trade Coun conjunction with the executive coun-
cil's dinner at its national conven- and composed of former offcers of
tion here. the organization, will conduct stu-
S Hnotdent faculty social relations and will
"The Hull program attempts ntpmote alumni activities. -
only to increase the volume of world promote alurmn,'ctititrgni
trade," he said. "It aims to neutralize Irving Silverman, '38, the organi-
the marked trend in recent years of zation's president, and Phil West-I
countries to throw off the established brook, '39, executive secretary, urged!
economic and political rules of the all men interested in working on an
game and establish their own rules executive committee to attend the
of economic and political conduct. next Thursday meetin gat which posi-
"It seeks by precept and example tion- will be announced.
fr t ln ho n in rn _f la

Committee Will Be Chosen
To Answer Japs' Refusal
To Appoint Delegates
China Moves Fresh
Troops To Shanghai
BRUSSELS, Nov. 4.- 0P) --
Conference to bring peace in the
Far Eastern conflict agreed in
private session to choose a small
subcommittee to reply to Japan's
refusal to send delegates and of-
fer both parties its services for
mediation. The conference was
expected to adjourn until the
committee should be ready to re-
port.
The Nine-Power Conference at!
Brussels struck a snag yesterday in
the discussion of what nations were
to be appointed to a peace committee!
to negotiate directly with Japan andj
China in an attempt to bring the two
Oriental nations together.
It had been decided earlier to ap-!
point the committee with a double
mandate-to extend the olive branch
to the warring nations and to reply
to Japan's refusal to attend the con-
ference at Brussels.
France And Italy Object
To the plan of Great Britain and
the United States that the conference
be restricted to their own representa-
tives, France and Italy quickly ob-
jected and were soon joined by Russia
who also wished a place on the nego-
tiating group.
These moves were interpreted as
defeating the original idea of keeping
the committee compact and free of
clashing interests. A projected con-'
ference debate was cancelled to allowI
time for private discussions.
To get arounddthe difficulties over
the committee, a plan was reported
under discussion for forming one
large committee which, in turn, would
appoint a subcommittee.
Meanwhile at Shanghai the pre-
carious Japanese foothold on the
south bank of Soochow Creek became
almost untenable under the lashing
fury of a heavily reinforced Chinese
attack.
Japanese Claim Advance
After a day and night of bitter
fighting the Japanese claimed to have
established a position one-thousand
yards long on thesouth bank of the
creek which snakes through the In-
ternational Settlement to the west. A
survey of the front line last night
showed the Japanese were holding a
sector near Rubicon Village where
they had driven a narrow wedge into
the Chinese position about three miles
west of Shanghai.
Foreign naval observers reported
heavy concentrations of Japanese
warships in the Whangpoo River with
42 men-of-war between Shanghai and

He Wants To Play

'

ADOLPH HITLER
Class Of 1900
Gives $2,500
To Loan Fund
Money Will Go To Juniors
And Seniors In Literary,
Engineering Colleges
A gift of $2,500 will soon be pre-
sented to the Board of Regents for a
student loan fund by the combined
Literary and Engineering classes of
1900, according to class officers.
The loans will be available only to
juniors and seniors in the literary and
engineering colleges, and will be con-
trolled by the Regents and adminis-
tered by the University.
The project was adopted as an im-
mediate objective of the class, ac-
cording to the officers, at a class re-
union in 1935, after having been under
consideration for 10 years. It was
thought inexpedient to launch it be-
fore that time because of economic
conditions.
At present, $1,457 is on deposit with
the Trustees of the Alumni Fund, in
whose custody the money was placed
until such time as the details of the
gift to the Regents could be worked
out in its final form.
At the 1935 reunion a committee
headed by Walter of Lansing was or-
ganized, which started solicitation of
funds in cooperation with the class
officers, Prof. Edward S. Corwin of
Princeton, president, and E. L. Free-
man of Sturgis, Mich., secretary.

Der Fuehrer Convinced
His Service As Mediator
Is Desired In Far East
Von Ribbentrop
To Talk With Duce
Adolph Hitler may throw, his hat
into the Sino-Japanese war arena
with an application for a position as
umpire, sources close to Der Fuehrer
revealed yesterday, according to The
Associated Press.
Unofficial feelers put out to the
German government by both the
Japanese and Chinese have con-
vinced Hitler that his services as me-
diator are not only desired but would
meet with great success, it was
learned.
The Chancellor has commissioned
Joachim Von Ribbentrop, German
ambassador to Great Britain, to has-
ten to Rome to conclude an Italian-
German-Japanese pact against the
Communist International, it was said,
and return as soon as possible to
pave the way for mediation.
Von Ribbentrop, it was understood
in chancellory circles, was to impress
upon Premier Benito Mussolini of
Italy the desirability of his country
leaving the Bussels conference as
soon as Hitler's role as umpire should
become established fully.
Hitler will accept the role of um-
pire only if he has definite assurances
from both sides inthe Far Eastern
conflict that his rulings will be ac-
cepted. Far-going assurances along
that line from the Japanese were
said to be in his hands already and a
similar motion was expected from
China.
The question of a German colonial
empire will be put in the background
for the present in deference to the
Oriental question which Hitler cp-
siders far more impressive, it was
stated.
A. T. Olmstead
To TalkIoday
Biblical Historian To Give
Speech OnArchaeology
Dr. Albert T. Olmstead, well-known
authority on history of the Biblical
era, will speak on "Ancient History
Warmed Over" at 4:15 p.m. today in
the Natural Science Auditorium. lits
talk is one of the University Lecture
series,
Dr. Olmstead has just completed a
year of research study in the Near
East and has first hand -evidence of
current happenings as well as his-
torical information. His lecture will
describe recent archaeological de-
velopments in the Near East and what
they mean today. He is interested
in the relation of archaeology and
history.
He is a member of the Oriental
Institute of the University of Chi-
cago and a national authority in his
field, having worked with several ex-
peditions in Mesopotamia, Syria, and

to induce the countries of the world
to cooperate in the reestablishment Grand Jury Closes
of the international economic system.
Such a consummation will not only Streich ci'Findings
make possible the ever-increasing'
flow of international business but will:
check the tendency toward autarchy Circuit Judge George' W. Sample
and totalitarianism. said tonight the grand jury investi-
President Sends Message gating the death of seven year old
"You cannot well have the inter- Richard Streicher, Jr., would recess
national system properly reestab- indefinitely tomorrow.
lished and a number of states ded- I "The investigation will be kept
icated 'to the totalitarian principle.alive, however, until the murder is
The international system inherently! apprehended," he said.
implies international cooperation for More than 30 witnesses have testi-
international ends and purposes." fied before Judge Sample, sitting as
A message to the dinner from Pres- ;he grand jury, since the inquiry
ident Roosevelt said "the importance )pened Sept. 27.
of the trade agreements program as William Youngs, 60, of Yspiilanti,
a movement for peace perhaps trans- sent to . jail yesterday for refusing
cends the importance of the material to answer questions was released to-
benefits." ! day after completing his testimony.
Duke And Duchess Of Windsor
May Forego Visit To America

BALTIMORE, Nov. 4.-(AP)-The
Baltimore Sun said tonight in a dis-

The committees met for more than, patch from its Washington bureau
three hours today, and, by laying that' Charles E. Bedaux. friend of the
aside, but by no means abandoning, Duke and Duchess of Windsor, hint-
the conflicting peace proposals they ed upon departing for New York that
advanced last week, managed to make his friends might forego their
a fresh start upon their task of re- planned visit to America because of
storing unity to organized labor. 'unpleasant developments" here.
The resumption of negotiations fol- "Out of 100 chances that they will
lowed an eight-day recess in which come, about 90 are gone," the Sun
recriminatory statements and the an- quoted the Franco-American multi-
nouncement of a new CIO raid upon millionaire in whose French chateau
the membership of the Au served the ex-king and the former Wallis
only osarpenthedisput tweenWarfieild of Baltimore were married.
the organizations. The Sun contnued that although
Pending the negotiations, each side edaux declined to relate the "un-
will give due recognition to the other's aeasant' incidents, "there were
jurisdiction, and that both should strong indications that the most dis-
continue an aggressive organization turbing ones were:
campaign, a CIO spokesman said. n s wre
- I "'hP n( z,11P nnr1xvi(P1V ih ch"r

ments for the tour was a dejected
figure as he stepped aboard the
train ...
"He said something which hap-
pened about midday today had
raised doubt in his mind that his
'friends'-he refuses to speak their
names for publication-would go
through with their proposed inspec-
tion of working and housing condi-
tions in this country.
"Up to one o'clock, I was very
gay." he confded.n'Since then some-
thing has happened about which I
cannot talk."
Bedaux volunteered, The Sun con-
tinued, that it was not because of the
cry that he was labor's "arch enemy,"
and that he had telephoned his
"friend"-the Duke-this morning.
"T told him " Beauy w a uted

Woosung and 40 more near the mouth
of the river.
Yesterday thousands of fresh Chi-
nese troops, well-equipped and dis-
ciplined, moved up to the battlefront
stretching northwest from Shanghai.!
The youthful Chinese legionnaires,J
using howitzers, trench mortars, ma-I
chine-guns and hand grenades, struck
again and again at the point of the
Japanese advance.
NYA Seeks Funds
For Negro Students
Application of the Federal Govern-
ment to secure funds for Negro stu-
dents seeking University assistance!
has recently been made according
to Prof. Lewis M. Gram, head of the
civil engineering department and
chairman of the National Youth Ad-!
ministration bureau here at the
University.
Each year there is a special ap-
propriation set aside by the govern-
ment for the training of Negro stu-
dents in universities all over the coun-
try, but it wasn't until last week that
it was decided that funds would be
necessary for the Negro students here
who have made application for jobs,
said Professor Gram.
Can Sign Petitions Today
Petitions asking that school be

i
,

"Scale effect" or the influence of the countries around the Red Sea
size on the resistance of a series of has served as president of the Am
geometrically similar ship models is can Oriental Society and has wri
now being investigated through ex- several books on ancient Near-E
periments being conducted in thee history. These include:
naval tank under the direction of Testament Times" and "A Histor
Prof. L. A. Baier of the marine engi- Palestine and Assyria."
neering department.Thecture todaywill be illustr
Five models of a Canadian patrol
boat ranging in size from two to nine
feet are employed in the research D f l
which is carried on by K. P. Tupper, Iscriminatron Of
of the National Research Council of'
Canada who is doing graduate work Race Is uOp pose
Although the discovery of theI In Progressive P
"scale effect," or differences resulting
from size is the primary objective of Of the 500 votes cast in the first
the experiments, other information days of the Progressive Club's
is sought from the same work. The 409 oppose "racial discriminatio
same models previously have been resturants," 79 favor it. Volun
tested in the tank operated by the attendance of classes was supp
National Research Council. This by 351, rejected by 139.
tank, primarily intended for seaplane United States should not is
float testing, is only nine feet wide; itedpSmtilatesodntis
consequently, from the tests in the itself diplomatically, according t
tank here, which is 22 feet in width, voters in the poll. Diplomatic
the influence of a confined channel tion was favored by 105.
known as "wall effect," can be deter- Women's hours on campos
mined. This knowledge will enable "adequate and fair in the opi
the National Research Council to de- of 223 persons who cast ballots,
cide upon the maximum sized ship fair according to 197, "too strict

He
eri-
itten
ast-
"New
ry of
,ated.

Sicale

Effect'

Sought In Test
On Ship .Model

d
'ol
t two
poll,
n in
ntary
,rted
olate
o 383
sola-
are
nions
un-
't" by

j.

ne nasuie ana wiaeiy pumisnea
racnlfltinn arl'nnfarl by tho 'Raltimnro

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