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November 27, 1937 - Image 1

Resource type:
Text
Publication:
The Michigan Daily, 1937-11-27

Disclaimer: Computer generated plain text may have errors. Read more about this.

The 'Weather
Rain today; tomorrow snow;
much colder tonight and to-
morrow.

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~~IAt

Editorials
Getters To The Editor.. .
The Perfect' Newspaper .
Nipped In The BudJ.

VOL. XLVIII. No. 53 ANN ARBOR, MICHIGAN SATURDAY, NOV. 27, 1937

PRICE FIVE CENTS

FDR Offers'
Plan To Halt
NewSlump
Puts Tax Revision At Top
Of Program; Desires
More Home-Building
Will Accelerate All
Federal Purchases
Tax revision as soon as a bill can be1
prepared was President Roosevelt's1
promise yesterday as he sought1
means for ending the business
slump. The announcement, part
of a five-point program, was grat-
ifying to a tremendous bloc in
Congress.
Fear lest the present business reces-
sion become another depression led
the American Federation of Labor
to advise industry yesterday to
maintain payrolls at the highest
possible levels.
WASHINGTON, Nov. 26.-()-
President Roosevelt announced today
a five-point program for ending the
business slump, including-to the
gratification, of a tremendous bloc in
Congress-tax revision as soon as a
bill can be prepared
In addition, he listed at a press
conference interview:
The stimulation of a boom in large-'
scale house building, on which he
said he would send a message to Con-
gress Monday.
Curtailment of Government expen-
ditures for road building, on which
he promised a message Tuesday-ob-
viously part of the general campaign
for a balanced budget.
The immediate purchase of some
$245,000,000 worth of Government
supplies, which ordinarily would beI
acquired gradually over the next six
months.
A continuation of his series of con-
ferences with public utility executives,
in the hope of promoting a utility;
construction program, which is lag-
ging far below normal.
While the President's statement on
taxes encouraged the Congressional
movement for tax revision at the
special session of Congress instead
of in January, or February, there ob-
viously remained many doubts that it
could be accomplished.
Chairman Vinson (Dem., Ky.) of
the House Subcommittee on Taxes,
which has been at work on a bill
for weeks, was uncertain that the
legislation could be prepared in time,
although expressing eagerness to go
ahead as quickly as possible.
"If w can get a roundedout pro-
gram," he said, "I have no objection
to taking it up any time, and I'm cer-
tain that's the attitude of the sub-
committee."
Keep Pay Up, Says AFL
WASHINGTON, Nov. 26.-(P)-The'
American Federation of Labor advised
industrytonight to maintain payrolls
at the highest possible level lest the
business recession become another
depression.
"The present decline appears to be?
a temporary check in our progress
toward larger production volumes
and higher standards of living while I
business waits for accumulated sup-
plies to be bought off," the Federa-
tion said in its monthly business sur-
vey.
"Whether it will be of long dura-
tion depends to a very important de-
gree on our ability to maintain buy-
ing power close to its present levels, so
that inventories of clothing and
household supplies may be quickly
consumed and a strong market pro-
vided for durable consumer goods
such as homes and automobiles.

"Serious danger lies in the pos-
sibility that workers' buying power
may be reduced while industrial pro-
duction is checked during the wait-
ing period. Measures to prevent this
can be taken by both government and
private industry.
"They include:
"1. Maintain wages and employ-
ment at the highest possible level.
"2. In any industry where sus-
tained demand and profitable opera-
(continued on Page 6)
Chien Analyzes
Far East Today'
Educator's Talk Is Backed
By Chinese Students
Dr. Tosheng Chien, noted Chinese
educator, will discuss Far Eastern af-
fairs at 2 p.m. today in Room 319 at
the Union.

Cau

ses Of Present Recession Hockey Sextet Death Triumphs Over Science
In Business Listed By Hoover -tAs Polio' Patient Dies In Tent'
__ ____ Meets Ontario ........

Reduction Of Government
Spending, Speculation In
Inventories Are Named
Curtailment of government spend-
ing, the piling-up of inventories on a
speculative basis, increased wages per
hour for labor and manipulations on
the stock-market are the main causes
of~ the present business recession, Prof.
Edgar M. Hoover of the economics
department said yesterday.
Although he believes it is impos-
sible to accurately judge the extent
to which the undistributed corpora-
tions profits tax, the capital gains
tax and the regulation of the stock-
market are genuinely retarding bus-
iness, he feels that their effect is sec-
ondary. "One must discount the state-
Sixteen States
Are Hit ByBus
Drivers' Strike
UAW's St. Louis Forces
Rally As Second Attempt
Fails To Halt Ford Plant
Striking Greyhound bus drivers
crippled service in 16 states yester-
day and halted all operations at Phil-
adelphia, a key terminal, according
to the Associated Press. Bus driver
William F. Dixon was forced into a
curb at Washington by a group of
men pursuing him in automobiles,
who beat him. Maryland State
Troopers arrested 11 men in connec-
tion with the attack.
As strikers picketed the Philadel-
phia terminal, the company an-
nounced men were being trained as
drivers to take the places of ap-
proximately 100 who joined the
walkout.
Leaders' of the UAWA in St. Louis
rallied CIO forces last night as they
failed for the second time to halt
operations of the Ford Motor Com-
pany's St. Louis assembly plant. Del-
mond Garst, regional director, de-
clared the strike would be carried on
and won, "if it takes six months."
A return to normal production at4
the Pontiac Motor division of Gen-
eral Motors plant was indicated yes
terday as the company announced
that 10,000 men will be back to work
by Tuesday.
The Bus Strike
Federal Labor Conciliator John L.
Conner, moved to arrange a joint
conference "possibly for tomorrow."
In an effort to settle the controversy
over a closed shop and mileage rate
wage increases. Eight Greyhound
lines east of the Mississippi are in-
volved.
S. R. Harvey, assistant president
of the Brotherhood of Railroad train-
men, who estimated 1,300 drivers
were involved, reiterated .that the
strike resulted in "nearly 100 per
cent" suspension of service.
Greyhound announced that sched-
ules 'generally had been curtailed
(Continued on Page 6)
Gargoyle Offers
Beauty And The
Least - Humor
The Gargoyle, Michigan's self-
styled humor magazine, makes an-
other bid for publicity, this time
nation-wide in this week's "Life."
Indefatigable editor George Quick,
'38, in a signed letter to the pictorial
magazine challenges any other col-
lege humor magazine in the country
to produce a more pulchritudinous
women's staff than that which the
Gargoyle boasts. A picture of the

...

ments of directly interested parties *
on this issue," Professor Hoover said. n First B attle
Government competition with pri-
vate enterprise has also been dis-
tinctly secondary in effecting the
present industrial slump, he feels. Gne At 8 P.M. T onight
"This factor seems to have potential In Coliseum Expected To
bearing only on electric power andl
perhaps on housing, and its import-' Attract Packed House
ance has been exaggerated."
The unbalanced budget could not * ariies
have had much influence in causing J m s ill Star '
the decline," he said, "because thej In Goalie o t
trend has been toward a balance."In ~ ' ~ cii OIIf
regard to the theory advanced by
Louis Fisher of Yale that main cause By BEN MOORSTEIN
of the recession is the shrinkage of With prospects as bright or bright-
the nation's check-book money (de- er than last year's when Michigan
mand deposits) $1,000,000,000 in 1937, shared the Big Ten title and cap-
Professor Hoover said he believed this tured the State hockey championship,
shrinkage to be merely a "signifi- the Wolverine sextet opens the win-
cant symptom of recession," and not ter sports season here tonight fac-
one of the causes of the slump. i ing the University of Western
Government spending and the bud- Ontario at the Coliseum.
get pose a dilemma to the administra- The game, which will start at 8:00
tion, he said, in that "the curtailment p.m., is expected to pack the Michi-
of government spending may dimin-
ish the amount of spending which in- gan skating arena.
dividuals can do, while the continu-, Although the game might be taken
ance of government spending in ex- Althoughathen ga mhtbetaen-
cess of revenues may threaten to un- asa
dermine confidence and thus di- eeam hroghou th
rectly curtail private spending. coming year, it will actually serve
"It is a difficult choice to make: only to give a rough idea because
and the current recession may show with only a week of practice to rest
that Washington was over-sanguine on the sextet will necessarily not be
about the stimulating effect of a more up to its true level.
nearly balanced budget upon private The London team, beaten badly in
investment spending." both games it played here last year,
Purchasing Power Less is returning with quite a different
This fiscal year the difference be- aggregation and boasting a new
tween government expenditures and coach. Leading the Mustangs will
receipts is approximately $2,000,000,- be their star center and captain
000 less than last year. In addition Claude Moore.
purchasing power has been decreased James To Be Goalie
(Continued on Page 2) Doubtful during the earlier part of
the week about one position on the

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-Sa
Dashes249Mie In
Futile Race To Hospital

All Shanghai
Wire Facilities
Are Captured
ByJapanesef
Postoffices, Radio, Cable
Lines Throughout City
keized By Jap Oficers
Other Nations Fear
News Censorship
At Shanghai today the Japanese
seized control of all Chinese com-
munications facilities, including
those in the International Settle-
ment, where most of China's means
of communicating with the outside
world have been concentrated.
In Tokyo yesterday American and
other ambassadors expressed their
governments' interest in Japan's
intentions in China, while Preier
Prince Fumimaro Konoye declared
that Japan was ready to deal China
"a fatal blow" if she did not yield.

F ench lilt team, Coach Eddie Lowrey yesterday CHICAGO, Nov.26.-- ames
e vo announced that his starting goalie Helmer's 249 mile race against death
will be Eldon "Spike" James, a sopho-_ in a special train provedfutile today
41 rou p Traced more playing his first college game, anysut
but with plenty of Canadian amateur iThe 23-year old victim died 33
hockey experience behind him. James+
Back To Reich beat out the veteran Bill Chase, for
the position.
Leaders The rest of the line-up will remain ( Pre Q T il
r Pthe same as it has been in practice
Are In Germany; Raids all week. Capt. Bob Simpson will Forum Se r i e s,
For Arms Kee Going start his third season at right defense
___HI ee lgand is looking as good as he did last -__
PARIS, Nov. 26.--()-The Paris l year. Paired with him will be r t, Is
Newspaper Ce Soir declared today doughty Burt Smith, another veteran Nazi Germany Subject
that investigations of a huge con- starting his third term for the Wol- Of Speech Tomorrow
spiracy against the Republic have ___n__nedon Page 3)
indicated that -headquarters of the Prof. Lawrence Preuss of the po-
revolutionary committee was in Ger- litical science department will start
many. H itler Agrees the fall series of the Union forums,
Officials of the Surete Nationale,f speaking on "Germany and the Na-
the national police organization, de- * tional Socialist State" at 4:15 p.m.
clined either to confirm or deny Ce 1 esignaion t in he small ballroom of
Soir's story, but the cordon of Mobile I . the Union.
Guards around the Ministry of the Of r. Schacht A mong other things Professor
Interior was reinforced and all ve-- Pesswl discuss the theory and
I nterwaseingforc aind a s ye-racial ideas of the National Socialist
hicles entering or leaving Paris'* , state, and some internal implications
stopped for investigation. 'Financial Wizard' Plans' of the German racial theory. He
A military tribunal at Nancy con- ., -1 l t t
victed two naturalized French broth- To Remain In afiinet, will also point out some repercussions
victd tw natralzed renc broh- of racial discrimination.
ers, former residents. of Germany, of Retain Bank Presidency The fall series, which is being
espionage anid sentenced them to planned by James Hollinshead, '39,
prison terms. They were charged BERLIN, Nov. 26.-(IP)-Reichs- of the Union Executive Council, will
with selling information to a "for- fuehrer Adolf Hitler announced to- have as its general topic, "Political
eign service." Two other former day he had accepted the resignation Problems of the Day."
Germans were convicted of espionage of Dr. Hialmar Schacht, Germany's On Dec. 6, Prof. Charles F. Remerl
last Monday at Metz. "financial wizard," as Minister of of the economics department will
Raids and searches for caches of Economics and would combine the talk on the Far Eastern situation, and
arms continued in most parts of ministry with the four-year plan ma- on Dec. 13, Prof. Arthur Aiton of the
France. Hitherto enough arms to chinery. history department will discuss the
equip thousands of shock troops have At the same time he said Dr. war in Spain.
been uncovered. Schacht would become his personal These talks will close the series for
"We are merely taking precau- adviser and would continue in the the fall. In the Spring, the series
tions," said an official of the People's cabinet as minister without portfolio, will be reopened, Hollinshead said.
Front government. He will also continue as president of At these forums, a half an hour
To the number of prominent per- the Reichsbank. talk is given, followed by a discus-
sons under arrest was added Duke Col. Gen. Hermann Wilhelm Goer-I sion of a half an hour. The public
Pozzo Di Borgo. Taken after a raid ing, head of the four-year plan, will is invited, and coffee is served during
on his home, he was questioned all be in charge of the ministry of eco- the discussion period.
afternoon under charges of "associa- nomics until January 15, when Wal--
tion with malefactors." ther Funk, the propaganda ministry's Fiddles Are Played
The Duke came into prominencej secretary of state, will take charge.
recently owing to his libel suit against Dr. Schacht, frequently reported at o KeepShan ha
the rightist leader Colonel Francois odds with Goering over the over-
(Continued on Page 2) lapping of the four-year plan on From R gimt's Fate
his own program, announced October'
1 26 that he considered himself dis-?
Ruckmic k, . ayer charged from his duties, but Hitler Beneath a Chinese and an Amer-
r erefused to accept his resignation. ican flag 100 persons danced and had
Speak INex TVeek Dr. Schacht became minister of tea and almond cakes last night in
economics in July 1934. He is not a Lane Hall to help in the Progressive'
Dr. Christian A. Ruckmick, profes- member of the Nazi Party organiza- Club drive to send medical aid to
I sor of spychology at the University of tion. China.

hours after he was placed in a res-
pirator at St. Luke's Hospital at the
conclusion of a dramatic dash along
cleared tracks from Stevens Point,
Wis.
Helmer, student manager of the
1936 football team at Marquette Uni-
versity was stricken last Tuesday.
Gradually the dread disease par-
alyzed his diaphragm. A special flier
from sped him from Stevens Point,
Wis., to Chicago Thursday morning
over 249 miles of cleared tracks. To
facilitate the special train, all other
trains entering the city were held up.
Dr. Philip A. Helmer, Kewanee, Ill.,
dentist, had an ambulance waiting for
his son at the Grand Central Station.
The gasping patient was whisked to
the hospital over a two-mile path
cleared by police.
He improved rapidly until this
morning, when attendants announced
he was growing "progressively worse."
Franco Plans
SAlmeria Drive

American Embassy

Staff

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Arrives In Barcelona
HENDAYE, Franco-Spanish Fron-
tier, Nov. 26.-(P)-The Insurgent
base of action tonight was trans-
ferred from the cold-ridden north of
Spain to warmer territory for a
smash against Almeria, government
port on the southeastern coast.
Insurgent officers at Irun said prep-'
arations were complete for a south-
ern offensive to start within a few
days. The date for the start of
the often-postponed drive was a mil-
itary secret but Insurgents sat Irun
said, "Watch for important events
next week."
(In Barcelona it was reported that
the United States embassy staff ar-1
rived from Valencia today to open
the embassy there. The embassy
moved first from Madrid to Valencia
a year ago).
An early cold wave, accompanied
by heavy rain, forced both sides to
delay action on the Aragon and
Central fronts.
Insurgents indicated Generalissimo
Francisco Franco had shifted his
planned major offensive to the south'
because of the approach of northern
Spain's bitter winter.

SHANGHAI, Nov. 27.-(Saturday)
-(AP)-Japan today seized control of
all Chinese communications facilities
in the Shanghai area, in which most
of China's means of communicating
with the outside world hitherto have
been concentrated.
To do this Japanese representa-'
tives entered the International Set-
tlement to assume charge of post-
offices, cable and radio administra-
tions and broadcasting stations hith-
erto operated by the Chinese Govern-
ment.
Censorship Feared
Whether this meant establishment
of Japanese censorship on all Shang-
hai's postal and telegraphic outlets
was not immediately clear. It was
feared serious international compli-
cations might arise if Japanese tried
to control operations of foreign cable
and radio companies.
(Such control, however, would be
a logical result of Japan's contention
that she falls heir to all Chinese com-
munication rights in Shanghai
area. The foreign companies, in-
cluding the American Commhercial
Pacific Cable, Radio Corporation of
America, and Mackay Radio, British
Eastern Extension and Danish Great
Northern Cable Companies, by con-
tracts with the Chinese government,
agreed to receive outgoing messages
only from the Chinese Cable and
Radio Administrations and to submit
to Chinese censorship.)
Seize Ferry Properties
Japanese army units seized ferry
properties on the Whangpoo River
belonging to the extinguished Chin-
ese city government and Japanese
indicated they would appoint their,
own appraisers and examiners to ex-
tend Japanese influence in the cus-
toms service at Shanghai.
(Shanghai dispatches, however,
did not indicate that the Japanese
had assumed any functions of the
Shanghai Municipal Council, the
body, responsible to the foreign con-
sular corps, which administers the
International Settlement).
Japanese armies smashed their way
nearer Nanking, the nearly deserted
Chinese capital.
Embassies Interested
TOKYO, Nov. 26.-(kP)-The Amer-
ican and other ambassadors today ex-
pressed their governments' interest
in Japan's intentions in China while
Premier Prince Fumimaro Konoye de-
clared Japan was ready to deal China
"a fatal blow" if she did not yield.
The premier declared Japan was
prepared, however, to accept any
peace move from China provided
China "shows concrete evidence she
is ready to abandon her policy of
opposition to Japan."
But he rejected the possibility of
outside intervention in the conflict,
which he said must be settled by di-
rect negotiations between Japan and
China alone.
He hinted Japan might advance as
far as Hankow if necessary to im-
pose her will on China and strongly
' intimated an "independent" regime
would appear in March, 1938, in
North China, now almost completely
conquered by Japan's legions.

Stock

Market

round dozen beauties supposedly Iowa, and Dr. Carl Mayer from the
substantiates Quick's claim. . New School of Social Research in
Under the caption "Most Beauti- New York City, will speak here next,
ful Staff?"' Quick's letter said: Ne okCtwl pa eenx!
Dear Sirs: week in the University lecture series.
The "Gargoyle" University of Dr. Ruckmick will speak on "Emo-
Michigan humor magazine, has tons in the Movng Picture Theatre"
the most beautiful womens staff at 4:15 p.m. Wednesday in the
of any college humor magazine Natural Science Auditorium.
in the country. Dr. Mayer will discuss the "So-
We challenge any other college ciology of Religion" at 4:15 p.m. Fri-
publication to dispute our claim. day in the Natural Science auditor-I
pulp ut or c ium. He -is one of the so-called'
To poveourstatmen ween- "faculty in exile" of' the New YorkI
close a group picture of the school.
women's staff. L. to r., top row: schoo_._
Alberta Wood, Glade Allen, Betty
Baldwin, Annabell Avery; middle Britain's nportance Seen
row: Ruth Hatfield, Jean Smith, Increasing With Arms
Mary Lavan, Marcia Connell,
Betty Ronal, Marjorie Barowsky, NOTTINGHAM, England, Nov. 26.
Jane Nussbaum; bottom row: -1P)-Great Britain's gigantic re-1
Marion Fitzgerald. armament nrogram has given the

Policeien Freed
In Ford Riot Case
DETROIT, Nov. 26. -(Al-The
Dearborn Public Safety Commission
dismissed today charges of neglect of
duty filed against five policemen and
a police matron after a riot outside

The truckin' and shaggin' ceased
twice during the evening for the1
dancers to hear native Chinese music
Yuan Lay, Grad., of Shanghai, played
"On the Lake" on his two-string Chi-I
nese violin and later accompaniedl
Mrs. Y. Z. Chang, Professor Chang's
wife, in a song of their homeland.
Women in the traditional long silk
dresses of China swayed beneath the
Oriental lanterns to the music of
Jimmy Fischer's orchestra, side by1

RalliesSharply
Latest Washington News
Cheers N.Y. Brokers
NEW YORK, Nov. 26.-(P)--Sus-
tained buying power rallied the Stock
Market sharply today, with leading
issues finishing near their high for
the day, up 1 to 4 points and more.
Utility and building material
shares gave the session's improved
tone from the opening gong, and the
recovery from Wednesday's decline
spread quickly to every group in the
ilst. Steels, rails, motors, coppers
and oils especially benefitted.
Brokers asserted news from Wash-
ington was "more hopeful." They

the gates of the Ford Motor Com- j side with their American sisters.
pany's Rouge plant May 26. 1 Announcements of a local boycott
The charges were made by com- against Japanese-made goods were!
mon pleas Judge Ralph W. Liddy af- circulated during the evening. The
ter his grand jury investigation of bulletins list the Japanese articles,
the beating of more than a dozen : such as silk hose and mechanical toys,
members of the United Automobile and suggest substitute products+ or
Workers of America while they were brands.
circulating union literature at the -_ _
factory gates. POLICE PRESS 'PRESSER'
on -140.-. 4-c, -...,n.. -.-.t. r. .,.....Ar .-, % rr rr r, w-r.-TT-, f1)1Z ,flx Co,- Tr

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17 Seamen Saved
From Sinking Ship
MIAMI, Fla., Nov. 26.--IP)-A two-
day search off the northwest coast of
Haiti for the sinking British freight-
er Nollington Court ended today with
the rescue of 17 seamen remaining
aboard.
The vessel was a total loss.

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