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January 05, 1938 - Image 1

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Publication:
The Michigan Daily, 1938-01-05

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The Weather
Generally fair and somewhat
colder today; tomorrow unset-
tled and not so cold.

C, 4.... r

Sic4i

3ait

Editorials
As Congress
Goes Into Action...
Taps For
Gen. Ludendoriff..

VOL. XLVIII. No. 72 ANN ARBOR, MICHIGAN, WEDNESDAY, JAN. 5, 1938

PRICE FIVE CENTS

rrr rirr. r r r wri i i

Urges Ta ing
Special Benefit
Funds To Aid
State's Need
Sen. Brake Wants To Use
Unemployment Benefit
Fund For Welfare
Proposal Says Fund
Serves No Purpose
LANSING, Jan. 4.-U)-State Sen.
D. Hale Brake, Republican, of Stan-
ton, proposed to Governor Murphy
today that a $40,000,000 Unemploy-
ment Insurance reserve fund be
tapped immediately to provide addi-
tional welfare funds for the state's
needy.
The senator urged the Governor
to call a special session of the Legis-
lature "promptly" and to recommend
a program that would advance the
date of benefit payments under the
Unemployment Insurance act from
July 1 to Feb. 15 "or earlier."
Sends Letter To Murphy
The proposal, in the form of a letter
to the Governor, asserted that collec-
tions from Michigan employers under
the Unemployment Insurance Act of
1936 were serving no state purpose
at present although in the custody
of thekFederal government.
Brake, pointing to the current bus-
iness recession, said:
"The need for the use of these funds
in Michigan is not likely, at any time,
in the immediate future, to be any
greater than the need right now.
"The paying of benefits under this
act ought to sufficiently lighten the;
relief burden so that appropriations
already made for welfare purposes
will be sufficient.
Better Business Ahead,
"With the coming of the better bus-
iness conditions which we are prom-
ised in the summer and fall of this
year, required payment of benefits
under the unemployment insurance
act ought to decrease sufficiently to
keep within income received, without
danger of exhatting this enormous
st of 40 miligp dollars of Mich-
igan money nor being held, and, I
understand, used by the Federal gov-
ernment."
The Governor, prior to Brake's ap-
peal, had disclosed that he was de-
voting "considerable study" .to the
feasibility of advancing the effective
date of the act.
Michigan unions affiliated with both
the Committee for Industrial Organi-
zation and the American Federation
of Labor have advocated a change.
Stadium Bonds
To Be Retired
$37,500 PaynientL eaves
MillionOutstanding
Retirement of $37,500 in stadium
bonds will be accomplished by the
Athletic Association on Jan. 15. The
payment will leave $1,137,000 of the
original million-and-a-half dollar
issue still outstanding.
The "stadium" bonds were issued
in 1926 so that the projected program
of expansion, which included ex-
penditures on the stadium, the Intra-
mural Building, Women's athletic as-
sociation, golf course, skating rink
and Palmer Field, could be put into
effect.
Originally it was planned to re-
duce the issue by $75,000 each year

with choice by chance of the bonds
to be recalled. However, during the
depression it was necessary to tem-
tanariw t1C1QYf1na~m~ tc L nt

T-

'Kidnaped' Gertrude Bennett Congress Charges
Married To Hesitant Drummer Banking Monopoly
___-_--- WASHINGTON, Jan. 4.-(A')-The
that his nation's largest banks were the tar-
Wide-Spread Hunt Ended daughter had been abducted get today for new congressional
As Indiana Judge Tells and quashed rumors that labor charges of "monopoly'
groups might be responsible for the Chairman Wheeler (Dem., Mont.)
Of Performing Rites disappearance. ChimnwelrlDmMn.
Hfghesorinin Rdrsmmisappearanceof the Senate Railroad Finance In-
________g I Hughes, a trap drummer in a col- sIgaigCmiteakdtepb
By STAN SWINTON lege band, was reported to have sug- vestigating Committee asked the pub-
Law enforcement agencies through- gested the marriage be postponed with great care the investment bank-
out the Mid-West abruptly terminat- just before the Justice of Peace start- ing monopoly in New York City."
ed an intensive search for "kid- ed the ceremony. Miss Bennett, In the House, Representative Pat-
naped" Gertrude Bennett, 17-year- however. objected, "No, I want to get man (Dem., Tex.) asserted that 24
old daughter of Harry Bennett, Ford married. banks, 13 of them in New York City,
Motor personnel director, late yes- After verifying reports of the wed- "control almost one-third of the
terday afternoon when investigators ding, Bennett, who had still re- banking resources of this country.
discovered she had eloped with her ceived no word from the pair late Winding up one phase of the Sen-
sweetheart, Russell Hughes, a 21- yesterday, declared he would make ate railroad investigation, Wheeler
year-old classmate at Ypsilanti Nor- no further effort to locate them. He asserted in a summary of recent evi-
mal College. said "their future is up to them" and dence gathered by the inquiry: "Two
Late yesterday the newlyweds still told reporters the groom need expect financial houses, J. P. Morgan and
had not been located. State Po- no Job at the Ford plant. Co., (with Morgan, Stanley and Co.)
lice believe they are in Chicago. Disclosure of the marriage ended and Kuhn, Loeb and Company, share1
News that the couple, both fresh- a kidnap scare which brought Fed- between them control of virtually all
men, procured a marriage license eral agents to the turreted castle be- the financial business of our rail-
from, County Clerk Carl Walters at tween Ann Arbor and Ypsilanti in roads."
Auburn, Ind., at 5:45 pin. Monday which the Bennetts reside. Together ___
and were married,. an hour later by with state police, county officers and
Justice of Peace Mile's Baxter dis- out-of-state law enforcement agen- W eather INum bs
proved Bennett's early contention cies, the F.B.I. men took part in a
_ wide-spread searchnwhich began H and-To-H and
J as Threaten Bennett was not called by his daugh-Teruel 1istiters
ter and told of her whereabouts. e u lF h e s
. Gertrude left home at 7:30 a.m. !"t
To Take Action Monday for second semester reg-
istration at Ypsilanti Normal. Ben- Siege Of Fascist Garrison
]ettlem ent nett, disturbed by recent telephoned,
I Settlem ent warnings that his family was in dan- I In Downtown Quarter
ger, called in police at 1:30 a.m. The Re orted B Lo alists
search started immediately. - Y Y
Warplanes Raid Hankow, The kidnaping theory was discard- MADRID, San. 4.-(P--The
Cause Little Damage; ed when State Police learned Ger- Spanish Government said to-
trude had withdrawn $50 from her night its troops had thrown back
infantry Takes Chufu bank account and that Hughes I four Insurgent attacks on the
packed extra clothing when the pair ice-covered battlefield around
SHANGHAIJan. n 5-(Wednesday) drove to his home. Teruel where both armies have

Admministrati on Considers
PlanningSy;Deficit
Of One Billion Predieted

_

-(P)-Japanese officials here raised
what a foreign authority called a
"grave issue" today by threatening
to take action in Shanghai's Inter-
national Settlement unless "anti-Jap-
anese outrages" are stopped.
Japanese infantry columns con-
tinued their advance southward
through Shantung province, causing
the Chinese to withdraw toward Su-
chow, vital junction of the Tientsin-
Pukow and Lunghai railways in North
Kiangsu Province.
Domei. the Japanese news agency,
said in a dispatch to Tokyo that the
Japanese had captured Chufu, birth-
place of China's great sage, Confu-
cius, 70 miles south of the provincial
capital, Tsinan. The Japanese said
they would not harm the tomb of
Confucius or the great Confuciana
temple at Chufu.
Japan's warplanes also struck at
several fronts, making raids on Su-
chow and other cities, railroads near
the southern metropolis Canton, and
the Yangtze River cities, Hanyang
and Hankow, one of China's capitals.
The Hankow raid, a Japanese navy
spokesman said, was intended to
"crush China's reorganized airforce,"
consisting of "large numbers of So-
viet planes."
The International Settlement "is-
sue" was raised following an official
protest by Japanese officials to the
Shanghai municipal council against
Chinese terrorist acts.
A Japanese embassy spokesman
disclosed that the protest was ac-
companied by a statement that "the
repeated anti-Japanese outr'ages con-
strain the Japanese forces to feel that
the settlement either lacks sincerity or
ability to meet the Japanese de-
mands."
New Dealer Beats
t Bed-Ridden Heflin
BIRMINGHAM, Ala., Jan. 4.-(I-)-
Rep. Lister Hill, New Deal supporter,
defeated former Sen. J. Thomas Hef-
lin in Alabama's Senatorial primary
today, apparently by 2 to 1.
With 1,024 of the state's 2,200 boxes
tabulated, the count was:
Hill 55,460.

British Author
Will Speak On
War In Spain;

concentrated their strongest bat-
talions in the greatest battle ofI
the civil war. As the seventh
day of Insurgent Generalissimo
Francisco Franco's counter-of-
fensive to recapture Teruel end-
ed, the Government asserted it
held the upper hand.

Estimate Is Called Guess;
Business Conditions May
RequireWide Revision
Mini.mum Budge t
Is Seven Billions
WASHINGTON, Jan. 4.-(/P)-Pres-
dent Roosevelt completed today a
entative chart of federal spending in
the 1938-39 fiscal year and well-in-
formed officials predicted it would
indicate a $1,000,000,000 deficit.
The budget will go to Congress to-
morrow. Mr. Roosevelt told the leg-
islators yesterday it would not be
balanced but that the deficit would be,
less than in the present fiscal year
ending next June 30.
The last official estimate of the
prospective deficit for the current
year was $895,245,000. Officials in-
1 dialdhowever, the message t-
morrow would revise this figure up
to about $1,250,000,000. This would
be slightly less than twice the $645,-
068,770 deficit for the first half of
the year, reported by the Treasury
today.
Budget Tentative
The budget is expected to give only
tentative recommendations for relief
and naval expenditures, the final to-
tals to be determined later in the light
of what the President may deem nec-
essary because of the business re-
cession and world rearmament.
Under these circumstances, observ-
ers generally concluded any estimated
deficit could be called only a prelimi-
nary guess, subject to wide revision
according to developments in busi-
ness-affecting both relief expendi-
tures and tax receipts-and in inter-'
national affairs.
Last year Mr. Roosevelt delayed his
estimates of relief appropriation needs
until April so as to receive before-
hand reports of the spring business
and employment outlook.
Changes Probable
The probability of some "supple-
mentary" recommendations for naval
construction was advanced by the
President recently in a letter to Chair-
man Taylor (Dem.-Col.) of the House
Appropriations Committee.
Mr. Roosevelt indicated to Con-
gress yesterday that he believed regu-
lar federal expenditures could not be
reduced below $7,000,000,000 a year.
At the same time lie expressed a de-
sire for all possible economies.
Sanitation Plan
Spiked By Lack
Of Legal Club

HENDAYE, Franco-Spanish Fron--'
Ralph Bates, Now Captain tier, Jan. 4.-(P)-The battle for Ter-!
n Ti uel swirled today around the eastern
In The LincolnBatalion Spanish provincial capital in a driv-+
To Talk Here Friday ing snow.
Insurgent and Government troopsI
Ralph Bates, famous British au- fought savagely in freezing weather
thor who has lived in Spain for nine over the ice-covered banks of the
years-and Is now a captain of the river Guadalaviar west of the city.
Abraham Lincoln Battalion in Spain, Reports reaching the Franco-Span-
will talk on "How Will the War in ish frontier said the opposing armies,
Spain End?" at 4 p.m. Friday in Na- at times struggled in hand-to-hand
tural Science Auditorium under the combat on the frozen river itself and
auspices of the Progressive Club. casualties from cold and conflict
Author of three novels, "Lean mounted into thousands.
Men," "Olive Field." and "Rain- The river flows east toward Teruel
bow Fish," Mr. Bates spent several and then bends sharply southward
years in Spain living in the homes of on the outskirts of the city.
peasants, shepherds and craftsmen Insurgent reports said the Govern-
in order to understand the Spanish ment soldiers were forced to leave
people. All of his novels have been ground in the bend where tanks
banned in Spanish territory held by plowed through the snow, spitting
the fascists, under a special edict is- fire into. the ranks of entrenched,
sued by Generalissimo Francisco cold-numbed militiamen.
Franco. t Reports from the two camps on
Immediately after the World War, the situation in Teruel itself con-
in which he served as a volunteer in tiniued to be contradictory.
the British army, Mr. Bates ran Insurgents said the city, which they
away to Spain where he worked on lost Dec. 21, had been "liberated,"
the docks and in various factories for while Government officials assertedI
18 months. Eventually circumstances an Insurgent garrison in the down-I
compelled him to return to England town quarter still was being besieged.
where he became a mechanic in a South of the provincial capital, the
railway factory in the town of his Insurgents' right flank tried des-
birth, Swindon. In 1930, however, he perately to close in on highways lead-
returned to Spain and has lived there ing to the city from Castralvo and
ever since. Villastar. Battlefields were stated to1
"The situation in Spain." he says, be strewn with frozen bodies.
"is nothing but a military uprising, Insurgent authorities at Irun a'-
financed from abroad. The first rested and imprisoned the French
people to resist it were the common consular agent and three of his as-
people. It is not a Red revolution. sistants. I
The story of a Red government is c The French Foreign Ministry an-
nothing but a fascist attempt to dis- 1 nounced tonight it had protested to
credit us in the eyes of the rest of Spanish Insurgent authorities in
the world." Irun against the arrest of the French
Mr. Bates says lie is planning to consular agent there and demanded
write a novel about the Internation- his release, a late Associated Press
al Brigade and many of his leading dispatch reported.j
characters will be Americans who An unconfirmed report said the
aided in the defense of Madrid. action was taken in reprisal for the
arrest in France last year of Maj.

Ickes Clarifies
Indictment Of
Nation's Press
WASHINGTON, Jan. 4.-(P)-Se-
retary Ickes said today he had "too
much respect" for many newspapers
to make a "general indictment" of
them.
His statement was made in reply
to a telegram Jan.' 1 from the pub-
lishers of the Wichita 'Kan.i eacon
which said:
"In your radio address of Thurs-
day night you urged that business
'call off newspapers and commenta-
tors.' These expressions are a gen-
eral indictment of the entire news-
paper profession and eminently un-
fair to those newspapers in which
was printed all the news, regardless
of political policy. If you have spe-
cific evidence of 'kept newspapers'
let us have their names and clear the
others of suspicion."
That portion of Ickes' speech, en-
titled "it is happening here," to which
the publishers took exception, said:
"To speak bluntly and realistically,
the first requirement for a better un-
derstanding between business and
government is for big business to
call off its lobbyists, call off its news-
papers and commentators ...''
In his reply today, Ickes said:
"I made no general indictment of
newspapers. I have too much re-
spect for many of them to do such a
thing. If I indicted any newspapers
in my speech it was only such as my
indictment fitted.
"Generally speaking, as it is un-
fortunately true that the fairness of
newspapers is a matter on which
there are sincere personal differences
of opinion, I think that we may best
look to qualified newspapermen
themselves for the best evidence on
the subject."
P.R. Comittee
Sets Poll Date
Hare System To Be Used
For Model Senate
Members of the proposed Student
Model Senate will be elected by the
Hare system of Proportional Repre-
sentation during the first week of
next semester, Martin B. Dworkis, '40,
chairman of the executive committee,
announced yesterday.
The Proportional Representation
Committee, of which Richard M.
Scammon, Grad., is chairman, voted
yesterday to fix the number of mem-
bers at 32. Elections of members, the
committee decided, will take place
every October and February.
Any University student is eligible
for candidacy on filing a petition with
five names and a 25 cents registra-
tion fee, which will be used to defray
the costs of the election.
A special discussion of Proportional
Representation will be held in Prof.
James K. Pollock's class in political
parties and electoral problems at 10
a.m. tomorrow in Room 1035 Angell
Hall. Members of the Senate Com-
mittee are urged to attend the- class.

System Will Gauge Future
Purchasing Power And
Needs Of Consumers

Leeles Urges Low
Construction Costs
The Administration is considering
i new system of planned industrial
>roduction to gauge future purchas-
rig power and consumers' needs,
resident Roosevelt disclosed yester-
lay. Planned to prevent business re-
:essions, the system provides for
,ound-table conferences of govern-
nent and industry, the President said.
Meanwhile, Chairman Marriner
Eccles of the Federal Reserve Board
.old a Senate committee th in-
reased government spending nd a
,ompact between government, indus-
ry and labor for lower costs in the
,onstruction industry would go far
;oward ending the present recession.
Propose Conference Table
The President told reporters there
ias been much discussion of a pro-
osal to have industry and govern-
nent sit around the conference table
to gauge future purchasing power and
onsumers' needs.
Emphasizing that he was not advo-
ating reenactment of the National
Recovery Act, the President never-
:heless pointed out that under the
'RA codes it was legal for industrial
eads to figure out probable de-
nand with government experts and
lan production accordingly.
He expressed belief that so long
is this were done without price-fixing
und without eliminating competition,
it was an intelligent way to figure
>ut needs.
Asks Labor Peace
The President prefaced his discus-
lion with references to specific ca
f high pressure salesmanipto
which he objected in his message to
Congress yesterday. He also spoke
of the need for ending the jurisdic-
ional dispute between organized labor
groups.
However, he said he wanted to give
capital and labor a chance to put
their own houses in order before mak-
ng any new legislative moves.
Asked to amplify his recent refer-
ences to the need for labor to assume
greater responsibilities commensurate
with its growing power, the President
said he thought there had been a
growing assumption of such responsi-
bility of labor. He said the decision
of the Garment Workers Union to
make public its receipts #nd expendi-
tures was a distinct gain.
His instances of what he termed
pushing sales were in the automobile
and steel industries.
Eccles Analyzes Recession
Mr. Eccles said before the Senate
committee, "if the Government put a
billion dollars into circulation, it
would in my opinion stop the reces-
sion," but he later emphasized that he
was making no definite recommenda-
tion to this effect, only answering
questions as to what would be the
result.
Eccl.es testified before a special
Senate committee, under the chair-
manship of Senator Byrnes of South
Carolina, which started today a long
search for the causes of unemploy-
ment and remedies which Congress
might apply to business ills.
Primarily, Eccles said, the reces-
sion was the result of prices rising
faster than the purchasing power of
most of the people. When a certain
point in this movement was reached,
he explained, recovery from the old
depression "got out of balance."
Beyond that, he expressed belief
that certain rigid prices were a serious
defect in the economic system. Some
sections of industry and of organized
labor, principally allied with con-
struction, refused to permit a drop
in prices and wages between 1929
and 1933 commensurate with the de-
crease in other lines, he asserted,
"Labor as well as industry would
be better off," he said, "if they vol-
untarily took a reduction that put
cost and wages where they were be-

fore the advance of 1936."
Since early in the fall, he testified,
industrial production has fallen "at
the sharpest rate of decline on rec-
ord." The principal causes he enu-
merated thus:
A r-nri nr e-a'nno in nrirnAe

Fisk
For
01.)

Stresses Necessity
City Council Action
Beer Glass Rinsing

'
i
i
s
I
5 I
yl

Efforts by the health department
to require a chlorine rinse for beer
glasses in Ann Arbor restaurants
are being stymied by the lack of a
legal club to force such equipment
upon unwilling operators, Franklin
Fiske, city sanitarian, asserted yester-
day.

porarnly suspend payments. uasu
Heflin 27,737. GJupliian Troncoso, former insugent "Many proprietors," he said, "will
year a new plan withdannual pay- Charles W. Williams, newcomer to Gtass1IsHonoeel military commander of Irun, on undertake the measures but we are Hudson ITOReh ire
ments o , was adstate politics, trailed far behind with charges of plotting to steal a Span- powerless to force it upon the others,"
The University's athletic plant is , 048. -On 0th Birthday ish Government submarine from a pointing out that under the present 6
The stadium accounts for $1,225,000 The frock-coated Heflin, whose French dockyard. city set-up the power of compulsion
ofspeeches in the Senate prior to his is very nebulous and it is not possible
___ defeat in 1930 were favorites with__ WASHINGTON, Jan. 4.--Sen- NeilL Tr ome to enforce such a regulation at law. DETROIT, Jan. 4.-(IP)-A. E. Ba-
,fthe gallery, heard the news of the ator Carter Glass observed his 80th A state law is pending, however, he rt, president of the Hudson Motor
Renewal Of Atlantic ;election from a hospital bed at his birthday anniversary today surround- HENDAYE, Franco-Spanish Fron- said, and although political squabbles Car Co., announced today his firm
home town of Lafayette. ned by his family and amid a showera tier, Jan. 4.-()-Three newspaper- may limit its effectiveness it appears will place 6,000 men at work shortly
Air Service Planned - fcnrtltr esgsadfoa
Ar__er __ce P tributes.yd men who died on duty in Spain start- the most likely source of relief. and will start production of a new
T e ed on their last trips home today in A specific city ordinance would ac- low-priced automobile as a joint at-
NEW YORK, na. 4.- P)-German Phelan To Lecture Here1The vigorous little Virginian, af flag-draped coffins. ocomplish the same results more swift- tack on the business recession.
ah ie Sbtetween Europesumed i On Scholastic Philosophy erceibel"byPesidcaltos- The bodies of Edward J. Neil of ly, Fiske declared, but various mem- Recall ofnthe laid-off employes as
t Ufived mths wi a ssted siplyo e int: the Associated Press, Bradish Johnson bers of the City Council have de- part of a plan to put "men and mon-
ote zeppelinh Hide sur whih rof. p ogad.Ph n, prese of te t h"Id ronly than 80,"sdom he said. of the magazines "Spur" and "News clared themselves opposed to enacting ey back to work," he told a gather-
of the zeppelin Hindenburg, which of psychology and president of the He had expressed the wish that the Week"; and E.R.S. Sheepshanks of "any more legislation," he said, em- g of newspaper editors and pub-
plummeted to earth in flamesat Institute of Medieval Studies at the t L b Reuters (British news agency) were phasizing that the real need is for lishers, will increase the factory em-
Lakehurst N.J, last May. University of Toronto, will lecture on e on, ove messenges ega brought across the border with mil- an educational program both among ployment to 12,000 men and add $1,-
Inflated with American non-in- "Some Aspects of Scholastic Philoso- to arrive at his apartment with tele- itary honors. the city legislators and the public. 250,000 to the monthly payroll. He
flammable helium instead of the hy- phy" in the Grand Rapids Room oftm an gams ad o and high officials They will arrive in Paris tomorrow Criticism by patrons can force oper- said about $11,000,000 wil be spent
drgen which buoyed u the Hinden- the League ya 9 4:and p.. Sunday and o rste dgvernmnt oersat came to gpayil their morning. The bodies o Neil and amts to adopt such health measures , for new tools ad poductiocape
burg, the new ship, the LZ-130, will Monday, January 9 and 10. tJohnson will be sent to the United Fiske stated, with a great deal more chinery incidental to the new car.
have a schedule of 15 to 18 round Professor Phelan, who will con- respecs. States, the body of Sheepshanks to success than any amount of health
trips at the rate of three a month sider the significance of present-day London. department policing. ,
+1 .~ , ,o ffth~fTbhtntnriauiTo- f.s'1'. . , - Iroarssive (ClubTO Sell

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