The Weather Continued cold with possible snow flurries. ll - --_-"MINNOW 5k ig tan 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