The Weather
Rain v snow north, and rain
turning to snow in south; colder
in west today.

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Sir&iAzi

30att

Editorial,
The Ludlow Proposal..
Battle Of Te'ruel..



VOL. XLVIII. No. 78

ANN ARBOR, MICHIGAN, WEDNESDAY, JAN. 12, 1938

PRICE FIVE CENTS

Adequate Aid
For Michigan
Relief Pledged)
At Whitehouse


f

Murphy, In Washington,
Says Slump Is Serious
But AppearsTemporary
Finds Evidence Of
Automotive Upturn
WASHINGTON, Jan. 11.-(P)-
Governor Frank Murphy said tonight
he had the promise of sufficient fed-
eral aid to tide Michigan over the
current unemployment emergency.
"My understanding is there isn't a
roof on this thing right now, and
Michigan will get whatever aid the
state needs," Murphy said after a
White House luncheon and a confer-
ence with F. C. Harrington, Works
Progress Administration executive.
Possibility of advancing the pay-
ment of unemployment compensation
was slight, Murphy reported. He said
he discussed the question with Frank
Bane, executive director of the Social
Security Board and would continue
his discussions tomorrow.
'Advance Pay Debt'
- "I am anxious to advance the date
of payment from July 1, but I be-
lieve it's going tp be impossible,"
Murphy said.
Discussing his state's unemploy-
ment situation in an interview after
the White House luncheon, Murphy
said the recession was "serious but it
won't live long." He added le saw
evidence of a steady swing upward in
the automotive industry.
"The basic causes of a depression
are not present," Murphy said. "De-
velopments in the automotive field in-
dicate re-emplcynent of the regular
working men."
R am s Plannine" Needad

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Roosevelt's Plea For Big Navy
Seen As Link In Recession Cure
Palmer Labels China War anced budget for the last year, Mr.I
Palmer said, pointing out that there
Excuse For Resumption has been a substantial equality be-
Of Inflation Policies tween the amount of money (includ-
____ingthe social security taxes) taken in
By JACK DAVIS by the government and the amount
As business indices skid with more spent. This reduction in government
abandon than in the hallowed days of hypodermics, he stated, is one of the,
1929, President Roosevelt appears to causes of the current economic par-
be using the China war scare to make alysis.
a jaded American public forget con- Present conditions throw interest-
tinued red ink budgets, William B. ing light on the pump-priming theory
Palmer of the economics department of eliminating the depression, Mr.
said yesterday. Palmer said, posing the question that
"Fighting in the Far East, climaxed if the reduced flow of government
by the bombing of the Panay," Mr. funds into the veins of business was
Palmer said, "gives President Roose- partially responsible for last fall's
velt, through his big navy proposals, decline, is it possible for the govern-
an opportunity to resume inflationary ment to taper off such a spending
economic policies at home. Such an policy?f
excuse is important at a time when Most economists are agreed, Mr,
_,I1A , of Palmer indicated, "that despite the

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public opinion has grown weary ox
spending away the depression and
is clamoring for a balanced budget."
The money necessary to finance
this navy building program, he point-
ed out, will have a tendency to apply
brakes to the depression in the same
way that the WPA, veterans' bonds
and other spending measures helped
to pull the country out of the 1929
decline.
"Inthat sense," Mr. Palmer com-
mented, "the China war may be as
fortunate a break for Roosevelt as
the drought of 1933 was in aiding the
AAA program."
Despite political agitation to the
contrary, the country has been oper-
ating under an approximately bal-
Gov. LaFollette's
Copy Of T.V.A.
Is Ruled Invalid
Governor Claims Decision
May Sever Quasi-Public
Groups From State Help

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(Continued on Page 2)

Italo-American
Trade Parley
Strikes S n a
U.S. Refusal To Recognize
Emmanuel As Emperor
Of EthiopiaCauses Halt
WASHINGTON, Jan. 11.-(OP) -
The United States' refusal to recog-
nize King Victor Emmanuel of Italy
as Emperor of Ethiopia has resulted
in suspension of the Italo-American
negoations for a commercial treaty.
Informed sources said Mussolini re-'
quired the new treaty to be made in
the name of Victor Emmanuel as
King of Italy and Emperor of Ethio-
pia and that Secretary of State Hull
refused.
Negotiations, they said, would now
lapse for some months, during which
the situation may be clarified.
The stalemate occurred suddenly
when negotiations were proceeding
excellently. Practically all obstacles
had been removed and the two coun-
tries had"already agreed to an ad in-
terim understanding, announced last
month, whrey Italy retreated from
her closed economy position to the
traditional most - favored - nation
treaty.I
Officials here are at a loss to un-
derstand Mussolini's insistence, in
view of the fact that commercial
tr~aties were made by Italy with oth-

DutchVesselIs'
Torpedoed By
Submarine
'Hannah' Sunk Nine Miles
Off Cape San Antonio;
Assailant Unidentified
Incident Remindful
Of Recent Piracy
BARCELONA, Jan. 11.--(P)-The
Dutch freighter Hannah was tor-
pedoed and sunk today by an uni-
dentified submarine 10 miles off Cape
San Antonio, reports from Alicante
stated.
All members of the crew were said
to have been rescued uninjured by
vessels in the vicinity on Spain'sl
eastern Mediterranean coast.
The reports said the submarine
fired several torpedoes at the 3,730-
ton Dutch ship. The freighter sank
slowly, making rescue of the crew
possible.
The Hannah was enroute to Va-
lencia, Government seaport, with a
cargo of beans and wheat.
The incident, first of its kind in
over two months, recalled the whole-
sale attacks on Mediterranean ship-
ping which virtually were ended by
establishment Sept. 14 of a Franco-
British anti-piracy patrol with even-
tual Italian support.
At the same time Insurgent planes
today raided three Government coas-
tal cities Barcelona, Castellon and
Reus.
HENDAYE, France-(At the Span-
ish Frontier)-Jan. 11.- (P) -The
main front of Spain's civil war shift-
ed today to the southwest of Teruel
where Government forces launched
a new offensive against Insurgent en-
trenchments in the La Muela Del
Teruel sector.
Government reports of occupation
of the first line of Insurgent trenches
were disputed by Insurgent advices
which said ''not a centimeter'' of
ground was lost.
Neither side appeared to have made
headwayin other sectors of the Te-
ruel front.
(Iri"London, a meeting of t
ish Nonintervention Sub-Committee
ended without agreement on recogni-
tion of belligerent rights in Spain
when Germany and Italy refused to
discuss the question).

Many, Not Foo,.
To Attend Foo
To Aid Dorms
They're going to call it "Foo" and
it's going to be a Costume Ball.
What?-the dance the Men's Dorm
Committee is giving Friday, Jan. 21,
in the Union to raise money for the
Dormitory Fund.
Two floors of the Union will be
turned over to "Foo" and the music
of Charlie Zwick and his League or-
chestra and Bob Steinle and his Mel-
ody Men will be featured in the two
ballrooms. The League will be closed
the night of the dance.
Prizes will be given for the best
costumes, which may be of any kind
or description, according to "Foo's"
committee. The committee of judges
insists it will remain so neutral as
to give prizes even to those who are
dressed as Smokey Stover or the
Chief.
Students were urged to make their
own costumes for the dance, which,
according to the committee, will be
"especially informal and non-conven-
tional."
Honor societies and the Interfra-
ternity Council will be asked to help
promote ticket sales for "Foo," com-
mittee members stated last night.
Tickets priced at one dollar a
couple, will go on sale today. They
may be purchased at the League, the
Union or from members of honor so-
cieties.
Bruce Telfer, '38, is chairman of
the committee planning "Foo." Other
committee members include: tickets,
Fred Columbo, '38, Goff Smith, '38,
Bob Williams, '38; decorations, John
McFate, '38, Fred Martin, '38, Joe
Rinaldi, '38, Don Belden, '39E; ar-
rangements, Hugh Rader, '38, Fred-
erick Geib, '38F&C, Bud Lundahl,
'38; and publicity, Doug Farmer, '38,
Earle Luby, '38 and Jack Thom, '38.
Japanese Drive
Is Turned Back
At Hangchow
a Conclave Adopts
'Unshakeable Policy' For
DealingsWith China
SHANGHAI, Jan. 12.-(Wednes-
day)--(P)-Chinese said today they
had turned back a Japanese drive
I south of Hangchow, capital of Che-
kiang Province, and had relieved the
Japanese threat to Suchow, strategic
rail junction north of Nanking.
They said the Japanese in the
Hangchow area sought to cross the
Chientang River by steam launches
for an advance toward Ningpo, but
were forced to withdraw before with-
ering Chinese artillery fire, losing one
troop-laden launch.

Five Indu
Confer W
'Coopera

Roosevelt Dance
At Union Jan. 29
Washtenaw county's annual cele-
bration of President Roosevelt's birth-
day will take place on Jan. 29 at the
Union and League ballrooms.
The event, at which students and
townspeople dance informally to raise
funds for the nation-wide battle
against infantile paralysis, is expected
to draw a capacity crowd. No part of
the proceeds will be retained locally
this year. Arthur C. Lehman, local
attorney, has been selected to act
as chairman of the committee in
charge.
House Approves
Power To Pare,
Appropriations
Item Veto Will Be Granted
When Appropriation Bill
Rider Passes The Senate
WASHINGTON, Jan. 11.- (IP) -
The House voted today to give blan-
ket authority to President Roosevelt
to whittle down or eliminate entire-
ly an appropriation which Congress
makes-except allotments for veter-
ans.
If the Senate concurs, there will be
a drastic change in governmental
procedure, and the President Will be
able to pick and choose among the
multitudes of appropriations passed
along to him by Congress.
At' present, he can veto any ap-
propriation bill in its entirety, but he
cannot veto individual items without
killing the whole measure.
Herequested such individual veto
power in his budget message last
week. It was written into the ses-
sion's first appropriation bill - the
$1,414,986,515 measure carrying funds
for 39 independent offices and agen-
cies of the government-and was ap-
proved today without opposition.
Under the authority approved to-'
day the President would reduce or
eliminate appropriations when he
found that it would "aid in balancing
the budget or in reducing the public
debt." Such an order would be sub-
mitted the Congress, if it were in ses-
sion, and would become effective in
60 days unless Congress provided for
an earlier effective date.
m_., li/F '.

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strialists
ith FDR-
tion' Seen
Sloan, Clement, Chester,
Weir And Brown Leave
White House Cheerful
Meeting Is Largest
Since Series Began
WASHINGTON, Jan. 11.--P)-
Five captains of big business talked
their problems over with President
Roosevelt today and reported a "bet-
ter understanding" which would lead
to "closer cooperation in meeting the
difficulties of the moment."
The Chief Executive's conferees
were Alfred P. Sloan, chairman of
General Motors Corporation; Ernest
T. Weir, chairman of National Steel;
Lewis Brown, president of Johns-
Manville; W. M. Clement, president
of the Pennsylvania Railroad; and
Colby Chester, chairman of the board
of the National Association of Manu-
facturers and president of General
Foods.
For an hour and a half, they en-
gaged in what they called later a
"general discussion" of the problems
of the business recession. Then, leav-
ing the President's office, Sloan, on
behalf of the group, dictated this
statement to reporters:
'Constructive Talk'
"We have had an Interesting and
constructive talk with the President.
All of us agree we have a better un-
derstanding of each other's problems,
out of which, I am sure, will come
closer cooperation in meeting the dif-
ficulties of the moment."
Beyond this and individual state-
ments that thehmeeting had been
"useful' 'and "helpful," they would
not comment. But it was obvious that
they left the White House in a more
cheerful frame of mind.
It was the largest gathering of
business leaders at the White House
since the President began h
conferences with representatives of
business, agriculture and labor on the
economic situation.
Because Mr. Roosevelt intends to
send a special message to Congress
on the eradication of what he calls
harmful business practices, it was
considered significant that Donald R.
Richberg, former head of the defunct
NRA, was one of those present at to-
day's meeting.
Richberg Asked To Sit In
His name was not on the list given
out by the White House, but he was
invited, he said, to "sit in." The cir-
cumstance set Washington to won-
dering whether Mr. Roosevelt may
not have some new bsiness agency
in mind, and whether Richberg may
be considered for the post of adminis-
trator.
There was some comment, too, on
the fact that of the five business
men present, three were active mem-
bers of the Liberty League, which up
until last year's election was a vig-
orous critic of New Deal policies. They
were Chester, who was a member of
the League's executive committee,
Weir and Sloan, who were members
of its National Advisory Committee.

ry
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Murphy declined to say what MADISON, Wis., Jan. 11.-(P)-The
phases of the industry he discussed Wisconsin development authority-
with the President. He asserted the Governor La Follette's "Little TVA"
planning of yearly work in the in- -died in the State Supreme Court
dustry "is as. iprtant as the $25,al today'.
week wage was years ago."h $ thecout ield that the 1937 legis-
Michigan's Governor named in- lature illegally had delegated soy-
stallment sales and deficiency judg- ereign governmental power to the pri-
ments as two threats to the in- vately controlled corporation by comn-
dustry. He said he agreed with a re- pletely conferring on it responsibil-
cent statement of the President on ities which can be vested only in
installment sales, but declined to dis- public officials.
cusstdefiency judsmntsn.Although the question of appeal to
cuss deticiency judgments. th ntdSae IpeeCuthd
Murphy said he would continueI the United States §upreme lte Court hadth
Murpy sad hewoul coninuenot been decided, La Follette said the
conferences with government officials decision killed plans to set up a Wis-
tomorrow.-, consin agriculture authority, author-
ized in 1937 to promote sale of Wis-
consin farm products.
Let Fresh men La Follette said the ruling raised
serious questions concerning the va-
)lidityof state and county allotments
Live In H onse to such quasi-public organizations as
county fair societies, patriotic orders
and various farm groups. Aside from
Action Taken To Improve the $130,000 biennial appropriation
Frate ityScholarship WDA, which reverts to the state's
________ P general fund, the decision may affect
annual grants totalling nearly $350,-
Freshmen will be permitted to live 000.,
in fraternity houses next semester if WDA had power to engage in the
their fraternity's scholastic average actual purchase and operation of
for the year 1936-37 was at least as publicly-owned utility plants. La
high as the all-men average for the Follette, who conceived it, main-
same year, and if the first year men tained its primary objective was to
are needed to fill room vacancies ex- assist municipalities in utility acquisi-
isting during the first semester or tion cases and promote the federal
caused by first semester occupants rural electrification program. Incor-
leaving the University in February, it porated last spring, it was a private,
was decided at the last meeting of non-stock, non-profit organization.
the Committee on Student Affairs. Justice Oscar M. Fritz, who wrote
This action was taken as an incen- the Supreme Court's unanimous opin-
tive for fraternities to improve schol- ion, declared that WDA's members
arship and as an aid to those frater- were not state officials chosen by the
nities whose houses have been only electors or appointed by any officer
partially filled during the first se- of the state, that its membership was
mester. not open to the public, and that in
The requests of freshmen to move exercising its function it had free rein
into fraternities will be granted sub- to do what it pleased without inter-
ject only to the following conditions: ference from the state. He cited a
1. That proper notice of intention Constitutional provision requiring all
to move be given to the office of the but inferior officers of the state to
Dean of Students in writing by the take an oath to support the Consti-
freshman at least one month before tution, and the fundamental principle
the beginning of the second semester. that any one not an elector of the
2. That the freshman be scholas- state is ineligible to hold office. le
tically eligible for initiation. said the WDA was "incapable of qual-
3. That the freshman present to, ifying in either of these respects."


er countries in 1936 and 1937 without * *)
bringing in Victor Emmanuel's rank l GeologIst s TalI
as Emperor of Ethiopia.
Mussolini now demands that the W ill End Series
preamble to the treaty specifically
state that Foreign Minister Count
Galeazzo Ciano is making it in the Bowen To Talk On Silicate
name of his Imperial Majesty, Victor
Emmanuel, King of Italy and Em- Equilibria
perorEuiliaofEthiopia.Dr. Norman L. Bowen of the Uni-
versity of Chicago will conclude the
K xPlans 'Plain Folks' University lecture series for the pres-
noXPlan Pent semester with a talk at 4:15 p.m.
Program For G.O.P.'stomorrow on "Silicate Equilibria and
their Significance in Rocks and In-
CLEVELAND, Jan. 11.--UP)-Col. dustrial Products," in the Natural
Frank Knox suggested tonight a Science Auditorium.
"plain folks" Republican program Dr. Bowen is well-known in chem-
which would tell business boldly it istry and geology circles as the foun-
must renounce all "excessive" tariff der of the theory of silicate equilibria
schedules tending to increase the cost with their relation to igneous rocks.
of living, and then would insist the His theory has been widely used in
farm expect no cash bonuses for crop the glass and the ceramic industries.
restriction. He will explain these theories and will
Col. Knox, 1936 vice-presidential show how they have been used in in-
candidate of the party which for dec- dustry.
ades has championed tariff protec- He is a graduate of Harvard Uni-
tion, told a Cleveland audience: versity and was employed by the Car-
"Protect wage standards, yes! Con- negie Institution of Washington, D.C.
tinue to protect monopoly, no!" while doing his research.

A heavy movement of Japanese Ttwo may GBet
troops and big guns from the inter-1
ior was reported. Shanghai observers Hr hob
believed they were reinforcements for
the Hangehow area, where Chinese
reports have indicated Japanese ef-
forts to push inland were being held Warned To Report At Once
up. For Treatment
TOKYO, Jan. 11.--OP)-The first iv
Imperial conference since 1914 today Lives of two Ann Arbor residents,
established an "unshakeable policy,"one of whom is believed to be a stu-
tward China and discussed Japan's dent, are endangered by hydrophobia
relations with other world powers. unless they report for immediate
sd treatment, Prof. Herbert W. Emerson
Details of decisions in the meeting, of the bacteriology department, di-
over which Emperor Hirohito presid- rector of the Pasteur Institute, warned
ed, were kept secret, but Domei (Jap-yesterday.
8aese news agency) said ateenty Out of nine persons bitten by a
would be issued in two or three days.I rabid dog Dec. 18, only two have not

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The conference, attended by the
Proposed U.S. And British Trade highest government and military offi-
cials, was preceded by speculation it
"t Uwould consider a formal declaration
Reciprocity Is Urged B Remer.1 of war against China. _
Only two imperial conferences were
held previously in this century and
- By JOHN FLOWERS tariff, who now do the work formerly both resulted in declarations of war
The proposed reciprocal trade done by an impermanent congres- -in 1904 against Russia and in 1914
agreement between the United States sional committee. against Germany.
and the United Kingdom is of the Admiral Nobumasa Suyetsugu,
greatest improtance to both coun- Business interests, for the most Amiral a r yetsugu-
trie, bcaue Eglad i ou lages part, Professor Remer said, are well ? Home Minister and retired comman-
tries, becausecEngland is our largest satisfied that trade agreements are der of the combined fleets, was known
purchaser and second largest import competently framed and that they to favor a war declaration to facili-t
er, Prof. C. F. Romer of the economics m frme d h h tate an effective blockade of China.

reported for treatment. The disease,
according to Professor Emerson de-
velops within seven weeks to three
months. Thus if the two develop the
disease they will not be aware of
their plight for another three to six
weeks. Because of the fact that only
16 per cent of those who suffer only
superficial bites from a rabid animal
develop hydrophobia, the pair may
suffer no ill effects, Professor Emer-
son said.
Witnesses say one of the unidenti-
fied pair is a 16 to 17-year-old Negro
girl who was bitten outside the Mu-
seum Building. The other is described
as a young man, probably a student,,
who was bitten later in the day at the
Union.
Progressive Club
Meets Tomorrow

Hits Federal 'Planning'
WASHINGTON, Jan. 12.-G)--
Government "planning" in the econ-
omic sphere has retarded "intelligent
planning" by industry itself, Wilson
Compton, spokesman for the vast
lumber industry, declared today.
"We have frankly more"faith in our
planning for our own industry than
in the Government undertaking to do
it for us," he told the Senate Com-
mitte investigating unemployment.
President Roosevelt recently dis-
closed that administration men were
discussing the advisability of having
government and business collabor-
ate to gauge future demanc4 and ar-
range production accordingly.
Compton, who is secretary-man-
ager of the National Lumber Manu-
factures Association, said that what
he would like to see was the com-
pilation by the Government of "more
complete information on the condi-
tion of inventories and on present
and prospective consumption," such
information to be made quickly avail-
able to industrial management.
Final Plans For Co-op
To Be Laid Tomorrow
Final plans for the new men's co-

the Dean of Students written per- I
mission from his parents or guardian
to live in his fraternity house.
In the future no 'bxceptions would
be made to the University ruling
prohibiting freshmen from living in
fraternity houses, it was decided atl
the meeting.
Palmer Christian Gives
Organ Concert Today 1
Palmer Christian, University or-"
ganist, will give a recital at 4:15 p.m.
+ndav in Hill Aiitnrium to which

Jeserich To Speak
On Dentistry Today
Prof. Paul H. Jeserich of the dental
school will lead a discussion for pre-
dental students from 4:30 to 5:30 p.m.
today at the Union Coffee Hour in
the small ballroom of the Union.
This is the third in the series of
coffee hours for pre-professional stu-
dents. Dean C. E. Griffin of the bus-
iness administration school, and Dean
pnnv Bate nf the Taw School led

department stated yesterday. osruerLi Iternatiun i
The agreement is of further signifi- In framing a reciprocal trade
cance, Professor Remer said, because agreement, he explained, such as the
the League of Nations and competent one with the United Kingdom, every-
trade authorities throughout the one wanting information or desiring
world consider the American reci- to make a suggestion regarding ar-I
procal trade policy the most liberal- ticles to be included or excluded from
izing force in the world today. the agreement, may submit a brief
This is true, he argued, because of containing his opinions and recom-,
the United States' unconditional in- mendations to the reciprocity com-
terpretation of the "most favored mittee. In addition he may request
nation" clause, which means that and receive a public hearing before
concessions given to one nation in a, the committee.
trade agreement are given to all na- One of the few questions that
tions. Such a clause is in direct con- might hold up consummation of the
trast to the German nolicv of nrivate Invnnreil areement with the TTnited i

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Mrs. Sarah O'Neill
Dies From Injuries
Mrs. Sarah L. O'Neill, 57 years old,
mother of two University instructors,
died yesterday from injuries suffered
when she was struck by a car Nov. 15.
Surviving are John O'Neill of the
English department, James O'Neill of
the French department, Miss Mary
O'Neill of Detroit, a daughter, and
two sisters .Miss .Tohanna Drew nd

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Plans for next semester, reports of
this semester's work and considera-
tion of a progressive slate for the
Student Model Senate will be dis-
i cussed at business meeting of the
.Pnaresi' fClh t 18 nm tomorrow