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November 25, 1937 - Image 1

Resource type:
The Michigan Daily, 1937-11-25

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The Weather
Cloudy with rising temper-
atures and southwest winds


Lir iga


__ _ _ __ _ _ _ __ _ _ __t



CIO Threatens
Strike Spread;
Ford Riot Suit
I Dismissed
Insufficient Evidence Wins
Dismissal Of Charges
Against Corporation

A Good Paper For Good People
Makes Its Debut In Ann Arbor




St. Louis Strike
DETROIT, Nov. 24.-0P)-The CIO-
affiliated United Automobile Work-
ers threatened a spread of strikes in
Ford assembly plants today a few
hours after the Ford Motor Com-
pany won dismissal of assault charges
based on a riot involving union mem-
bers near its Dearborn plant May 26.
Giving official sanction to a strike
in Ford's St. Louis branch, Richard
T. Frankensteen, UAW assistant
president, said, "If Ford is ready for
the battle, it will not rest in St. Louis
He telegraphed the secretary of the
Kansas City Ford local to "prepare
for action if necessary."
Insufficient Evidence
Circuit Judge Lester S. Moll dis-
missed, because of insufficient evi-
dence, charges of felonious assault
against the Ford Company and eight
individuals, seven of them Ford em-
ployes. The charges resulted from
the beating administered union mem-
bers who tried to distribute UAW
literature near the huge plant as part
of a campaign to organize the 89,000
Ford workers employed there.
Quashing of the charges brought
from Frankensteen the comment that
"the decision is one which should
make Mr. Ford very happy, but it
should make the workers universally
unhappy. . . . As long as Mr. Ford
feels that the courts will not stop
him in any of his actions we may
expect him to carry on with greater
boldness and with the same immunity
he has enjoyed."
Milton N. Johnson, St. Louis plant
manager, asserting "Ford employes
are satisfied and want to work," said.
584 manned the assembly lines, only
16 less than yesterday. .The union
contended dnly 100 to 125 men en-
tered the building.
Heavy Picket Line
The workers went to their jobs
through one of the heaviest picket
lines in the city's history, more than
1,000 men, many of them members
of sympathetic CIO unions, swarmed
around the plant.
A few non-strikers who came on
foot ran afoul of the pickets' and
suffered severe beatings before be-
ing rescued by police, who plunged in
with their clubs to restore peace.
The greater majority of the work-
ers, as if by prearrangement, arrived
in automobiles which were ushered
into the company parking lot through
police lines.
Some of the cars shuttled back and
forth, bringing load after 'load of
workers. An Associated Press staff
member counted a dozen trips made:
by one automobile, which was con-
spicuous because of the white walls
of its tires. The driver had a pearl-
handled revolver on his lap.

15-Year-Old Editor Relates
His Story Of Growth Of
'Neighborhood Gazette'
Into the inner sanctum of the Daily
the young editor of a new local news-
paper strode yesterday with a gusto
reminiscent of the crusading editor of
Editor-in-chief of the "Neighbor-
hood Gazette, a good paper for good
people," is Wilbur Salow, 15 years old,
and his newspaper is a weekly three-
page-mimeographed undertaking that
sells for two cents and has a circu-
lation of 90.
Full of the pride in his work that
all great editors enjoy, Wilbur was
not slow to talk-and he told every-
Wilbur got his start on his way to
full-fledged editorship of the Gazette
when he was a reporter for his camp
newspaper in the University of Mich-
igan Fresh Air Camp for boys. His
superiors discovered his unquestion-
able ability to get stories and even to
write headlines like a master desk-
worker, promoted him to a position
on the editoriAl board, he admitted.
Back in school this semester Editor
Salow and some classmates in the
ninth grade at the Slauson Junior
High School got, the idea of publish-
ing a newspaper for their club. After
much scurrying around for news
stories and advertisements to finance
the great work the Neighborhood Ga-
zette was born in the middle of the
week-in the middle of November.
Issue number two was delivered to-
day by Editor Salow himself.
Unlike most of our contemporaries
the Neighborhood Gazette, "a good
paper for good people," has a col-
umnist who says what he really1
thinks. We have Wilbur's permission

to reprint the "University Column" by
"University students have just been
undergoing the midsemester exams.
There is a good deal of groaning, but
not much studying, done.
"Students call exams "blue books," '
from the color of the little magazine
in which exams are written. Thesej
"blue books" are usedallover the
"Now football is over, and students
are turning to indoor games, basket-
ball, handball and dancing; and of
course ice-skating. The rink is open
now, and the fun begins.
'We note that the editorials in theI
University paper, the "Michigan
(Continued on Page 2)
Retired ]French
Officers Seized
In RoyalistPlot
Conspiracy To Establish 1
Royal Dictator Is Fought
By The Surete Nationale
PARIS, Nov., 24-(/P)-The Govern-
ment's search for plotters accused
of conspiring to establish a royal dic-
tatorship in France spread today to
retired officers of the national defense
While retired naval commander
Joseph Le Maresquier .and Sergeant
Aviator Cheron were held for ques-
tioning, Surete Nationale inspectors
searched the home of retired aviation
General Edouard Diseigneur.
They took the General to headquar-
ers for examination.
He previously had been questioned
concerning activities of Les Cagou-
lards ("The Hooded Ones") under
investigation since mid-September ,
and now believed by the authorities
to have been linked with the dicta-
torship plot.
The Surete did not disclose the re-
sults of the search of the General's
apartment but said there would be a
large number of arrests within the
next few days.
The Government ordered the Surete
to use all resources to crush the secret,
revolutionary group which Minister of
Interior Marx Dormoy announced last
night had plotted to turn France into
a dictatorship under a king.
All government police units were
cooperating in the nation-wide search
for arrps caches of the organization
and to determine who were the lead-
ers and where the money came from
to buy large supplies of arms.
Operatives pored over plans seized
yesterday in a Paris loan office in
which agents said Eugent (Cq) De-
loncle, a prominent consulting engin-
eer, was interested.
Morrison Wins

SEC Demand
Causes Furor
11 Exchange
Chairman's Declaration
Meets With Opposition
From Broker Group
Member . Lciplined
By Exchange Board
NEW YORK. Nov. 24.-(I)-The
inner councils of the New York Stock
Exchange were thrown into a furorl

Soph Officers Picket
To Get Gratis Ticket
"Soph Prom Unfair to Class Offi-
cers." "We Demand Comp Tickets to
Soph Prom." Thus read the placards
of the striking class officers yesterday
as they picketed the Union, where
tickets for the annual class dance are
on sale.
Phil Westbrook, president of the
literary school class of '40, told the
press "The situation is deplorable.
Class officers should besadmitted to
all class functions to give that extra
Ken Meyer, John Rane, Dave Cush-
ing, engineering school officers, chor-
used "nuts" after half an hour picket-
ing as they sheepishly decided to
buy tickets and go home.

Bus Operators
Strike; Peace
Attempts Fail
One Thousand Greyhound
Chauffeurs Stop Buses;
CLEVELAND, Nov. 25.-(Thurs-
d- --(P)--A strike of union bus driv-
el went into effect on Greyhound
Lines-throughout northeastern United
States at one minute after midnight
Dispatchers at Greyhound head-
quarters here said drivers had been
instructed to stop their busses at the
nearest station where passengers
could obtain other transportation.
Federal Labor Conciliator John L.
Conner, who arrived here in a spe-
cial army plane from Washington
last night, held constant conferences
with company representatives and
leaders of the Brotherhood of Rail-
road Trainmen.
S. R. Harvey, assistant President of
the Brotherhood, said 1,300 driversl

of controversy today by SEC Chair-
man Douglas' demand that the ex-Chrsler Corp.
change drastically revise its internal
federal control.I Cuts
Much wrath was directed at the
SEC chairman's pronouncement, but I
hard verbal punches also were thrown
atth tok xhageisef ysome ____
brokers who said the institution had
virtually invited the scolding it re- Ford And General Motors
ceived by its conduct at its recent Announce No Cuts As
negotiations with the SEC.
There was no indication that the cts urtaile
exchange's law committee - most
powerful inner group-was willing to DETROIT, Nov. 24.- (iP) -The
capitulate to the SEC to reopen Chrysler Corp. moved to reduce its
the negotiations for improved self- payrolls today in line with curtailed
regulation, which broke down after production schedules.
the sending of a draft of a letter to There were no figures on the num-
the SEC to Washington Monday. ber of men who received layoff no-
Charles R. Gay, exchange presi- tices. An informed source said that
dent, spent the day in conversations all Detroit plants were affected.
with influential members, and An estimate of 25 per cent, attrib-
emerged from his office, looking fa- uted to the United Automobile Work-
tigued and concerned, only to say: ers of America, was said by this
To Issue Statement source to be far too high. The com-
"It is my hope that within a rea- pany has been employing between
sonable time we can issue a con- 50,000 and 60,000 persons.
sidered statement giving the position The other companies composing
of the exchange." . the "Big Three," the Ford Motor Co.
One definite development of the and General Motors Corp., said they
day was the announcement of a gov- had made no general cuts in em-
erning board to discipline a member ployment.
for actions during the tidal wave of The Ford Company, which starfW l
selling last Oct. 19. It was the first production of new models later than
disciplinary measure taken against a other manufacturers, has not yet
member since March, 1936. Spokes- completed stocking its dealers.
men for the exchange said the mat- General Motors said its total em-
ter had been under investigation for ployment this week was approxi-
some time, however, and the action mately 2,000 less than last month.
was not in response to Douglas' state- The schedule of working hours per
ment. week varied in the different plants.
The market, so far as price fluc- During a strike in the Fisher Body
tuations were concerned, took the plant at Pontiac, last week, it was
rupture between the exchange and disclosed that the employes had been
the SEC calmly, although prices wor4 pg 28 hours a week.
drifted lower in typical pre-holiday
dullness. Dance Features
Bankers Doubt PeaceI
A number of leading bankers ex- .
pressed the hope that the disagree-' C hinese Q g
mnent between the exchange and the
federal regulatory commission would
soon be patched up, but some were Chinese Night Will Raise
doubtful that this could readily be
accomplished. 'Money For Civilian Aid
Th'e exchange's disciplinary action
was taken against John J. Phelan, Mrs. Y. Z. Chang, wife of Profes-
specialist in Nash-Kelvinator. HeI sor Chang of the oriental languages
was prohibited from acting as a spe- department, will sing at the Chinese
cialist on the floor of the exchange Night dance to be held at 8:30 p.m.
for three months. The action grew tomorrow at Lane Hall under the
out of the handling of orders in auspices of the Progressive Club and
Nash-Kelvinator stock on Oct. 19, the Chinese Students' Club. Jimmy
when it opened with a transfer of Fischer's Orchestra will play for the
25,000 shares at $5 a share, a drop of dance.
$5.50 from the previous day's final Decorations will be furnished by
price. After opening at $5, it re- Chinese students and Chinese food
covered to around $10 that day. will be served. Members of the Stu-


are affected in 16 states east of the
Mississippi, River. The Brotherhood
is sole collective bargaining agency
for Greyhound drivers. Company of-
ficials said approximately 1,000 were
Conner issued the following state-
ment early today : "I was unable tol
avert the strike set for 12:01 a.m. I
IIXT IT'TJ1fh t the

Sutherland, Sadler, Hall
Take Other Offices



A single party election in the fresh-

Rehe1s Sav French

dents' Club will entertain with or-
iental music.

am advised by Mr. iarvey uiazchi
usstrike is on but I will attempt to
Br S1 Dies mediate the dispute as both sides have'
agreed to meet with me. I will stay
. here hoping to effect a settlement."
Was Father Of Air Mail It was expected to take some time!
In Wilson's Cabinet for the full extent of the strike's
______ effectiveness to become known. Most
.AUSTIN, Tex., Nov. 24.-I'-busses on the road were expected to
Heart disease today claimed the life come into division terminals. Co-
of Albert Sidney Burleson. 74,post- pany officials said some busses were
mater geneyi Btecbne4 of leaving on schedule.
master general in the cabinet oflavn o

President Woodrow Wilson and "Fa-
ther" of the air mail. service.
Burleson, the first Texan to hold a
cabinet position, retired from public
life at the end of his second term
as postmaster general. Previously he
served 16 years in Congress and eight
years as a district attorney.
In Washington, the Texas Congres-
sional delegation issued a statement
"He was one of the most outstand-
ing men ever to serve Texas in the
national Capitol."
Since his retirement Burleson had
maintained his interest in public af-
England And France
Weigh Hitler Policies
LONDON, Nov. 24.-(P) -British
and French diplomats will meet Mon-
day to discuss German policies out-
lined in the Hitler-Halifax conversa-

M. P. Charges F.D.R.
Endangers Peacel
LONDON, Nov. 24.-(/P)-Robert J.
G. Boothby, Conservative member of
Parliament, today charged in the
House of Commons that President
Roosevelt started market declines en-
dangering peace.
"What is the use of making a
trade agreement or attempting tol
cooperate with a government which
seems determined to sabotage the eco-
nomic system under which we live-
without any alternative system put
in its place?" he asked.
"In the spring of this year the,
President of the United States of
America suddenly announced that in
his opinion commodity prices were
too high although actually they were
lower than the level of 1926 which

man elections in the engineering /oCiinese Nignt nas ee
college yesterday placed Robert Mor-± Ai Loyal BomberstessehClb aid to China.
rison in the presidency of that class. A forum to discuss boycott of Jap-
David Sutherland and Robert Sad- HENDAYE, Franco-Spanish Fron- anes goods will be held next week
ler were elected vice-president andl tier, Nov. 24.-W)-Spanish Insur- by the club. Until then the Peace
secretary respectively on the Frater- gents today charged "evident com- Committee will continue to cooperate
nity-Independent slate. The treas- ulicity of the French People's Front with the Conference to Aid China, a
urer of the class will be William Hall. Government" in air attacks on In- body made up of the Chinese Stu-
Representative on the Honor Coun- surgent territory. dents' Club and the Friends of China,
cil for one year will be William Blan- A communique declared Spanish and Peace by drawing up plans to
chard. Jack Merewether will hold a Government bombing squadrons flew bring speakers on the Sino-Japanese
two-year position on the council. over Insurgent territory from Tar- conflict to Ann Arbor to further its
According to printed matter of the dets, a French town southwest of # drive for funds for medical aid to
Fraternity-Independent Party their Pau. It said 18 planes crossed the China's civilians.
platform contains four planks which border at the town of Ustarits and!
provide for a dating bureau in the En- raided the Insurgent region west of Aids
gineering College and equality for Logrono in the Aragon sector. Prf Sh rfian s
freshman engineering students in all Military reports to Insurgent
social affairs. headquarters said heavy concentra- Settlement Of Strike
The Men's Council announced last tions of Franco's southern army were
night that junior class elections will massing for an offensive against Ah
be held next Wednesday. All other Almeria, Government-held south- A strike threat on the Pacific Elec-
choswsigeetoshlbyteeastern seaport. trio Railway was averted Monday
schools wishing elections held by the e!tr saot when Prof. I. L. Sharfman of the
Men's Council are requested to pre- enoI L. hfmanomath
sentslaeswitheliibiityeconomics department, the chairman
sent slates, with eligibility approved Pratt To Give Carillon of the mediation board, announced
by the Dean of Students office, to Re'tal T l At 7 '30 an agreement on a pay increase of
Hugh Rader, '38, president of the Re l onigh $500,000 a year. p
Men's Council, before Monday eve- Prof. Wilmot F. Pratt, University Prof. Sharfman announced in Losi
nn.carilloneur, will play the following) Angeles that the trainmen in the
program on the Charles Baird Car- I passenger service would receive an
Michigan Aiind Ohio Plan illon from 7:30 to 8:30 p.m. tonight. average increase of 15 per cent and
"Fantasia I," by Pratt; "Believe Me those in the freight service 7 per cent.
Criminal Road Blockade I!If All Those Endearing Young The mediation board notified Presi-
Charms," "Giga van Coupering," ar- dent Roosevelt immediately of the
MONROE, Nov. 24.-(IP)-Ohio and ranged by Denyn; "Bonny Mary of settlement, announcing the "dispos-
Michigan law enforcement officials Argyle" (Scotch); "Shepherds Hey " ing of the entire controversy."

Terms Present Setback
Artificial, Temporary
Pause Before The Climb
DETROIT, Nov. 24.--(R')-Henrya
Ford said in an interview today that
he was confident the present sessiont
of Congress would accomplish "some-
thing really constructive" as an aid,
to American business, and added he
was sure the United States would not
be drawn into another World War.
Ford referred to the tax on surplus
earnings as "a move on the part of
certain exponents of an out-of-date;
financial system to control industry."
He termed the present business re-
cession "temporary and artificial." It
was not a set-back," he said, but a
"pause before another climb."
No Need For Uncertainty
"No one," he said, "need look at
next year with any uncertainty."
"Our lawmakers may not know
this," he went on, "but that's the
way it works." He explained that
without surplus business could not ex-
pand without borrowing. "In most in-
stances," he said, "the borrowing must
be made of financial interests that
demand control of business as the
price of their loans."
"The United States will not be
drawn into another world war," he
said, "because there are 2,000,000
well-educated veterans here who
know one futility of such conflict."
Won't Create 'Vertical Trust'
Commenting upon the development
of his glass making, steel fabricating
and rubber-growing industries, Ford
said the objective was not to create
a "vertical trust," but merely to "pro-I
tect ourselves by keeping an eye on
processes and costs in the industries
we rely upon for our materials."
"I don't believe in 'self-sufficiency'
in this respect," he added. "We ob-
tain parts and equipment from 6,000
suppliers, whose work supports 3,000,-
000 persons. You can see how impos-
sible it would be for one business
to become entirely independent of
outside sources. If business is to be
good for one, it must be good for all.
No one can 'hog' anything. To cen-
tralize all our needs in our own plants
would curtail rather than increase
Japanese Forces
close pro Nanking
SHANGHAI, Nov. 24.--(1P-Jap-
anese press reports tonight said that
three Japanese columns had occupied
Huchow, on the south flank of the
Nanking defenses.
Chinese forces were said to have
been driven from the stronghold to
the rear of the main defense line
bordering the southern shore of Lake
Japan's army, however, tempo-
rarily had suspended large-scale op-

portions if the power companies would
agree to change their method of val-
uing properties for rate-making pur-
"I think the fears of government
competition are very much lessened
by the discussions that have taken
place," Carlisle said.
He said he expected the Consoli-
dated Edison Company to spend
$100,000,000 in the next two years by
ordering equipment and expianding
power distribution into areas where
new homes would be built under terms
of leg tslution to be proposed by the
Presiden; later this week. Consolidat-
ed Edison set ves the New York City
In addition, Carlisle asserted, the
Niagara Hudson Company would
spend $12,000,000, constructing a
100,000-horsepower steam plant at
Oswego, N. Y.
Government efforts to speed the
flow of capital into utility and home
construction were spurred by a Fed-
eral Reserve Board report that indus-
trial production in October was 8 per
cent less than in September and 13
per cent below the average for the
Tax Legislation
"It is ridiculous to think that a bill
could be passed by the House, con-
sidered by the Senate Finance Com-
mittee and passed in the Senate by
Christmas," Senator Barkley said of
the proposed tax bill.
"I am just as anxious as anyone to
speed tax revision, but I don't want
to botch it up just to hurry.
"And anyway, we will pass a bill
before the corporations have to re-
port their income tax on March 15."
Earlier in the day, Senator Harri-
son (Dem., Miss.), of the Senate Fi-
nance Committee held a round of
conferences with Administration of-
ficials and announced that he fa-
vored quick revision of corporate
taxes. This was a departure from his
previous stand that action this year
was unlikely and at first it was be-
lieved to make immediate legislation
more probable.
The House Ways and Means Sub-
committee, headed by Representa-
tive Vinson (Dem., Ky.), has been
making a detailed analysis of the
undistributed surpluses and capital
gains taxes.
It has tentatively approved changes
which would lift the undistributed
profits levy from 88 per cent of the
country's corporations-those with
net incomes of less than $5,000.
Instead of paying the present 8
to 15 per cent corporate income tax
and the 7 to 27 per cent levy on un-
distributed profits, these corporations
would pay a flat 12%12 per cent on in-
come up to $5,000 and 14 per cent on
income between $5,000 and $25,000.
Although this change would exempt
88 per cent of the corporations from
the undistributed profits levy, these
firms account for only 81/2 per cent of


completed plansktoday for an inter- by Grainger; "Allegra," by Lefevre;
state road blockade to prevent the "Ekk the Hall," (Welsh).
escape of criminals. The blockade "September in the Rain," by War-
will apply to 17 roads connecting the' ren-Pratt; "Prayer of Thanksgiving;"

Michigan 'Gives Thanks'
As Banks Talk Turkey

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