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Editorials
Education
Vs. Society? .

VOL. XLVIII. No. 80 ANN ARBOR, MICHIGAN, FRIDAY, JAN. 14, 1938

PRICE FIVE CENTS

Demoralized
Rebels Bolt
Franco Army
Loyalists Recapture Teruel
Leaving Uneasiness Rife
In Insurgent Forces
Cavalry Attempts
To Halt Deserters
GIBRALTAR, Jan. 13.-()-In-
creasing desertions and uneasiness in
Insurgent territory, following the
Spanish government's capture of
strategic Teruel, were reported to-f
night by impartial foreign sources.,
The Insurgents have installed an
armed cavalry patrol in the no-man's-
land separating British Gibraltar
from Insurgent-held La Linea in an
effort to check the desertions from
Generalissimo Francisco Franco's
army.
Coast Guard Reinforced
At the same time Coast Guard de-
tachments were reinforced by ma-
chine gun equipped units to prevent
further escapes by sea from Algeciras.
Persistent reports of a mutiny
among the Insurgent forces in south-
ern Spain have been denied by re-
liable authorities. Scores of Insur-
gent deserters, however, have been
crossing into British territory day and
night to fight for the government.
The majority of deserters have
escaped by going in small fishing
boats from neighboring Insurgent
towns direct to, the internationalized
city of Tangier, North Africa. From'
there the Spanish consul sent them
to Valencia.
Deserters Arrested
The deserters who enter Gibraltar'
are arrested and fined'in police courti
for being in the British Fortified
Zone without permission. The Span-
ish consul, however, pays their fines;
and sends the deserters to Tangier
on their way to Valencia.c
When any steamer calls at Gibral-
tar enroute to Valencia, numbers of1
government sympathizers avail them-
selves of the opportunity to get toA
government territory.
(Although Insurgent artillery kepti
_government posi-c
tions on the Teruel front there was
a lull today in the heavy fightingj
that has marked Franco's efforts to1
recover the lost Aragon territory.
Finances Force
Sudden Demise
Of Panorama,[

Drive For Foo Ticket Sale Gets Underway

Upward Turn
For Industry
Is Predicted
Bureau Of Agricultural
Economics Anticipates
Change For Better
FDR Plans Further
Business Meetings

Chinese Red Army Has Things
In Palm Of Hand In North China

WASHINGTON, Jan. 13.-(P)-
There are signs of a possible "turn
for the better," both for industry and
agriculture, the Bureau of Agricul-
tural Economics said today in its
monthly analysis of economic condi-
tions.
The bureau said the "precipitous"
decline in industrial activity the past
few months "seems to have been
____ _ echecked." It listed the following as
p 7 indications of improvement in bus-
R Army Ruthven Reverses iness conditions:
Custom B Selling1Evidne f rnwentrstb
urgeing prospectivebuyers of some industrial
Is Carried Out First goods.
De c2. A slight improvement in the de-
B pImand for wheat and cotton.
yaIia g President Ruthven yesterday opened 3. A slower and less severe de-
the ticket sae for the Men's Dormi- cine in consumer purchasing power,
2,000 Japanese Reported tory Committee dance with the sale and in the demand for farm products,
of Tieket No. 1 to Harriet Shackle- than in industrial activity.
Slain In Desperate Battle ton, '38, president of the Panhellenic 4. Reduced inventories which,
In SagtU g Province As a .T anwhen depleted, will require new pro-
g Association. The dance; which is of- duction to replenish stocks.
ficially known as the Foo, will be 5. Outlook for continued large for-
SHANGHAI, Jan. 14.-(Friday)- Jan. 21 in the Union. eign demand for American agricul-
VP)-G enera1issimo Chiang Kai- In selling the first ticket the Pres- tural products, supportedeby good for-
Shek's armies fighting on China's dent reversed the traditional proce- eign business activity.
"last line of defense" were reported dure, in which he is always on the General Council Proposed
today to have killed 2,000 Japanese in buying end. Foo committee members In the House of Representatives,
desperate but futile resistane at Tsin- had an explanation for the reversal: meantime, Representative Cox (Dem.,
ing, southwestern Shantung province. "Foo is going to be no ordinary Ga.) proposed creation of a "General
At the same time the Generalissimo dance," they said. "It is going to be Council" of government, political, fi-
was said m Chinese sources to have different, and so we began by cross- nancial, industrial, agricultural, labor,
strengthened his military hand by ar- ing up the ticket sale. Boy! Are we religious and educational leaders to
rest of one of his generals and the er y?"
execution of a former Government Money raised by the affair will go communism.
leader accused of trying to undermine into the Dormitory Fund for the con- ie urged an end to "sectional and
his authority. struction of new dormitories for men. factional bickering," declaring the
Chiang, Chinese said, had flown to Tickets may be purchased at the nation could not stand another major
Suchow to dhiect a major counter-of- League and Union and from members depression.
fensive along the Tientsin-Pukow of honorary societies. New economic dislocations would
fensve aong he ientin-Pkbwpermit fascist or communist minor-
Railroad, the route of the Japanese The Dormitory Fund Committee' ti t "bri aou their r -
columns gradually closing in from most ecent gift the University stihi up false prig ou eirrue d c -
north and South. Suchow is the was the Murfin Gate. ing pfhymns o hate," Cox said.
junction of China's East-West "life- ~Meanwhile, soe Senators said
line," the Lunghai Railroad, and theP
Tientsin-Pukow line. during the week orso
Barclay iir[ tRoeet t ocne
Beside the 2,000 slain more than with' officials of large automobile
2,000 other Japanese weFe reported "uand automobile finance companies.
by Chinese to have been wounded in ulitets Idt F D R Watches Auto Industry
the battle of Tsining, about 100 miles i--Ti a ae sanwidcto
SIo es itr that Mr. Roosevelt is paying much
forces clashed there Wednesday and a dtPattention to the automotive industry
the Chinese finally left the city to the ; in connection with his efforts to end
victorious but battered Japanese. Star Guard InIjired IDurlu I the economic depression.
Chinese forces were said, however, Some informants declared that the
to be threatening to trap Tsining's Practice; May Be Out idea of limiting the amount of credit
captors by an attack on Yenchow, For Rest Of Season which an automobile purchaser might
about 15 miles to the northeast. obtain has been discussed in adminis-
While official confirmation was The title hopes of Michiga's bas- trative circles.
lacking, Gen. Han Fu-Chu, the Shan- Mr. Roosevelt has talked of check-
tung governor, was said to have been ketball team received a severe set- ing "high pressure" salesmanship as a
arrested for failure to halt the sweep back yesterday when Bill Barclay, a means of stabilizing business over the
of Japanese troops over China's "sac- main cog of the Wolverine quintet, years.
red" province. incurred a serious practice injuryr
which will put him out of ation for Helen Arthur Heads
an indefinite period.
M en iPst Tell d hysi at iversityHospital 1938 Drama Season
J igoe aca' nuyas a dis-_____
l 1ocation of the head of the fibula Miss Helen Arthur of New York
ovinty Plans of the left leg. The leg was put in a isbeen a tedfewYirki
cast last night, and doctors stated City has been appointed executive di-
that it was onjectural whether Ba rector of the "Ann Arbor Dramatic
Dean Must Be I.forIlmed clay would see further action this Season for 1938, which begins May 16
year and runs for five weeks, Dael L.
Of Residence Change Injured In Scrimmage Quick, Jr., of Ypsilanti, chairman of
the civic committee, announced yes-
Men students, living in approved The reliable senior was injured, terday.
rooming houses, and who intend to i e in a s Miss Arthur will succeed Robert
romn oss n h nedt scrimmage. Jumping for a loose Hendrson who resigned several
move into different quarters next se- ball in a melee near the foul circle, mnthso afe resigte sea
mester, were warned yesterday that he was jarred off balance and fell t months ago after directing the season
they must notify the office of the the court. His leg buckled under him during its first eight years of exist-
Dean of Students of their intention and received the entire force of the ence.
before noon tomorrow. fall Associated with the theatrical world
It was pointed out that this must for many years as producer, manager
It da pinteds out tha tsu t He was rushed to University Hos- and agent, Miss Arthur is at present
be done in the case of all students pital where an X-ray revealed the executive director of the Actor-Man-
moving out of approved houses, whe- injury. The fibula is a small boneagrnognitonwchpdue
ther they are going into fraternities or nuy h iuai ml oeagrs, a organization which produces
t below the knee, plays for the New York stage and
Freshmen, who hope to move into Barclay was fighting for a regular manages the summer season of the
fraternities, but who will not know squad berth and had seen consider- Newport (R.I.) Casino. Her produc-
whether they can until grades are re- able action in all the Michigan games tions include Lord Dunsany's "If,"
leased, must also inform the office this year. Ed Thomas, with whom Robert Sherwood's "The Love Nest"
nfthi n otomeithi(continued on Page 3) and Gantillon's "Maya."

Japanese Are Said To Have
Control Only Of Railway
In PeipingTerritory
PEIPING, North China-(Corres-
pondence of the Associated Press)-
The Chinese Red Army is on the loose
in North China.
Beyond the Japanese control of the
railway zones, which seldom extends
more than a few miles, the Com-
munist forces and allied bands of
armed Chinese are said to control
everything.
They fade into the rugged hinter-
lands upon the approach of Japanese
warplanes and tanks, but when these
have returned to their bases, the Ir-
regulars resume control.
Persistent reports state these forces
are penetrating all districts just be-
yond reach of the Japanese. They
are well armed with machine-guns
and rifles, and have been known as
the Eighth Route Army since the
reorganization of last summer.
The Red Army has found almost
unlimited material. Armed and un-
paid remnants of the 26th, the 29th
and 53rd armies were scattered
among the inland towns of Hopeh.
While not necessarily communistic,
these soldiers readily fall in with
anti-Japanese plans.
Working with typical Communist
technique, they inoculate each com-
munity with a "cell" composed of one
or more organizers who proceed to
build up an "anti-Japanese defense
corps."
They held up the Japanese advance
n North Shansi for a month last fall,
which Japan admitted was the stiff-
est resistance encountered in North
China. American missionaries said
there are 30,000 of these troops in
northeastern Shansi near Wutaishan,
Craig Delivers
Talk To 2,000
Listeners Here
Lecturer Tells Experience
While Filmnig Thrills
For Moving Pictures
Two thousand persons heard Capt.
John Craig commence his lecture last
night in Hill Auditorium and two
thousand persons remained to hear
him finish it.
Brought here by popular request
for the second successive season, Cap-
tain Craig regaled his audience last
night with tales of thrill-movie
shooting in Africa as he explained
that Hollywood completely misses the
humor and anecdote of life on the
dark continent by insisting on sen-
sational instead of regular-life scenes.
The speaker told of spending six
months and $38,000 to get one picture
of a large-maned lion drinking at a
water hole, ostensibly for the picture
"Trader Horn," but never used; of
shooting polar, bears in Alaska which
had been shipped up for the scene
from American zoos, and of cuddle
dances among the African natives
borrowed from America's "Harlem."
The talk was accompanied by
movies depicting "the everyday life"
of an African native and "the every-
day life" of African animals.
Propose Third Try
To End Ford Strike
ST. LOUIS, Jan. 13.-(A')-The
Ford Motor Co., which had rejected
two preious peace proposals, was
asked today to consider a third plan
for settlement of a strike called by the
United Automobile Workers of Amer-
ica at its St. Louis assembly plant.
"Let's get together and get the men
off the picket line," John L. Sullivan,

union attorney, said to the company's
counsel, Thomas F. Muldoon, at a
National Labor Relations Board hear-
ing.
He suggested that the company
dismiss all employes who were not on
its payroll at the time of a seasonal
layoff last Sept. 15 and then refill
their jobs with union men on the ba-
sis of seniority. In return, he said
the union would end its strike.
Associated Press
President To Qutit
NEW YORK, Jan. 13.--(1)-Frank
B. Noyes, one of a little band of men,
who made a journalistic revolution
half a lifetime ago that formed the

the sacred mountain. One group, said
to number 10,000 men, moved east-
ward into Hopeh and organized 20,-
000 more peasants and remnant
troops as they marched.
Red 'Army forces have spread
southward over the plain lying be-
tween Peiping and Tientsin.
Irregulars occupy the mountainous
regions west of Peiping to within 20
miles of the city. They captured a
Japanese airfield and destroyed sev-
eral bombing planes at Hantan,
southern Hopeh, according to the re-
port of a Japanese aviator who re-
turned here by rail.
Japanese abandoned the Paoting-
Tientsin highway and the Tatung-
Taiyuan highway in North Shansi be-
cause of the danger.
Every railway station in North
China has a guard of Japanese sol-
diers. Trains do not run at night.
Both armies levy heavily on the
peasant's produce. Peasants who re-
main face famine. "We can harrass
the Japanese for years to come," an
Irregular said to a foreigner.
Meanwhile, Japanese planes and
tanks dart out to attack any report-
ed concentrations. The Red Army
continues to reorganize, recruit peas-
ants and lay in supplies for an ex-
tended fight.
Treasury Head
Holds Tax Rise
Untimely Now
Morgenthau Says Present
Revenue Should Suffice
For Government Needs
WASHINGTON, Jan. 13.-W)P-This
is no time to impose additional taxes,
Secretary of Treasury Henry Mor-
genthau advised Congress in testi-
mony made public today.
Testifying recently at a closed ses-
sion of the House subcommittee which
considered the Treasury's appropria-
tion for the next fiscal year, he said:
"With the business situation as it
is now, we do not feel like recom-
mending additional taxes over and
above the present tax structure.
"I think it is most important that
we keep the revenue that we have on
the present tax basis. ,
Asked by Representative Ludlow
(Dem., Ind.) for his opinion as to
how much longer the government
could operate with a deficit and still
maintain its credit, the Secretary of
the Treasury replied:
"I do not know. ...Of course, we
think we should balance the budget
just as fast as we can, always keeping
in mind that we may have an unem-
ployment situation ... The Adminis-
tration will not let anybody starve.
Barring that situation, the chances of
balancing the budget are excellent."
U.S. Ships iSail
To Visit Orient
British Invite Fleet To See
Inauguration Of Docks
WASHINGTON, Jan. 13.-(A)-
rhree United States cruisers received
orders today to proceed to Singapore
to attend the inauguration of new
naval docks at Great Britain's power-
ful Far Eastern naval base.
Naval observers saw in the visit a
sign of increasing friendliness be-
tween the fleets of the two nations.
Officials said the visit was not in
reference to the troubled Far Eastern
situation, but oper informed persons
felt it was a symbolic gesture for the
benefit of Japan.
The cruisers are the Memphis, Mil-

waukee and Trenton, each 7,500 tons,
commanded by Rear-Admiral Julius
C. Townsend. They must be in Sing-
apore by Feb. 14.
They left Honolulu day before yes-
terday, in company with the 10,000-
ton cruiser Louisville, en route to Syd-
ney, Australia, to attend the cele-
bration of the founding of Australia.
They departed from San Pedro, Calif.
Jan. 3.
Officials said the visit to Singapore
was being made during the cruisers'
return trip to the United States. Ob-
servers pointed out, however, that
Singapore was far off the return route
unless the cruisers returned by way
of Europe.
Independent Organizations
May Have J-Hop Booths

Popular Front
Cabinet Falls;
Lef tists Qi
On Chautemps
Second People's Ministry,
Began In' June, 1937;
Followed Leon Blum
Expect Deposed
Premier To Return
PARIS, Jan. 14.-Friday)-()-.
Defense Minister Edouard i;aladier
today announced the resignation of
Premier Camille Chautemp's People's
Front cabinet.
Chautemps, a Radical Socialist,
formed the second People's Front
government June 22, 1937, after the
ministry of Socialist Leon Blum fell
because a conservative Senate re.
fused him decree powers over troubled
French finances.
Radical Socialists and Socialists
were in the cabinet. The govern-
ment was supported in parliament by
the Communists.
The crisis in the government de-
veloped quickly this morning, after
the fate of the cabinet had wavered
back and forth, when Chautemps
told the Communists to vote as they
pleased on the confidence motion.
Communists Rubbed Wrong Way
Some Socialists were angered at
his abrupt treatment of the Co-
munists while others who were par-
tisans of exchange control decided a
statement by the Premier in fiat op-
position meant they were unable to
support him.
Socialists left the Chamber and a
delegation went to awaken Vice-
Premier Blum.
The decision of the Socialist min-
isters to resign followed.
The Chamber still had before it
the question of confidence which
Chautemps demanded to reinforce
his government in the fight against
the falling franc.
The political crisis in the midst of
the financial and labor troubles led
deputies to demand that a, new gov-
ernment be formed quickly.
Chautemps M4'ay Return
Somehbelieved Chautemps might
get the call while others mentioned
as possibilities Edouard Herriot, pres-
ident of the Chamber, and Albert
Sarraut, both former Premiers.
The order of the day voted by the
Socialists laid the blame for their-
resignation both on the Communists
for stating they would not vote with
the People's Front and on Chau-
temps for giving his consent to. the
Communist refusal.
Deputies said the differences within
the People's Front were that Social-
ists and Communists wanted ex-
change control and no stern action
against strikes while Radical Social-
ists backed the premier in seeking ac-
tion to end strikes and in opposition
to exchange control.
The Premier in seeking a vote of
confidence attributed weakness of the
franc to strife between workers and
employers and declared it had no jus-
tification in France's financial posi-
tion.
Progressives
Hold Debate

Panorama has suspended publica-
tion.
Hailed as a country-wide innova-
tion in collegiate publications, Pano-
rama gave promise of developing a
new fad in campus magazines. Press-
ing financial difficulties, however, cut
short its career and forced the Board
in Control of Student Publications to
announce its discontinuance yester-
day.
Panorama was the brain child of
Robert Lodge, 39, and. Joan Hanson,
40, its business manager and editor-
in-chief respectively. Announcement
of the new publication was made last
Spring and the first issue appeared in
September. It has published six is-
sues.
Emphasizing that they had no
quarrel or criticism with the charac-
ter of the magazine, the Board called
the publication a creditable job and
pointed out that financial difficulties
were solely responsible for its collapse.
Ulster Cabinet '
ea's Fusion
Calls For Mandate To Balk
Union With Ireland
LONDON, Jan. 13.-(IP)--The gov-
ernment of Northern Ireland today
called for a mandate to resist any
plan of Irish fusion which might de-
velop at forthcoming %talks .between
Ireland and Britain.
The Belfast Cabinet was spurred
to action by an announcement that
reunion with. Northern Ireland would
be among subjects tagged for dis-
cussion by Prime Ministers Eamon
De Valera of Ireland and Neville
Chamberlain of Britain.
The discussions will begin in Lon-
don next Monday, the first between
important delegations of the two
governments in many years. They
were announced as primarily to deal
with the subjects of defense and

Take
And,

Up Oxford Pledge
Collective Security

grades are as required, it was pointed
out.
Those not complying with this re-
quirement will not be permitted to
move, according to the Dean's office.
Haber To Discuss 'Social
Security' On Air Today,
Continuing the series of broad-
casts illustrating "The World To-
day," Prof. William Haber, of the ec-
onomics department, will talk on "So-
cial Security in Michigan" at 3 p.m.
today over station WJR from Morris

Dummy Camp Draws $85,000;
CCC To Be ore Careful Now'
WASHINGTON, Jan. 13.--(I)- district court here to nine counts of.
Amazed Senators heard today that a a forgery indictment, "might still be
clever Interior Department clerk who getting away with it" if he hadn't.
set up a "dummy" CCC camp de- shifted the scene of his operationsl
frauded the Government out of about 'from one department to another.
$84,000 through voucher forgeries Details of the case were unfolded to
and escaped detection almost four the committee while it was consider-
years. ing the President's nomination of K.
Three Department investigators told K. Burlew to succeed the late T. A.
theo prn,,ittPw Rvui Pn Stit'1a'r9A J....

The relative merits of the collective
security program, adopted by the
American Student Union Convention,
and the Oxford Pledge to refrain from
participation in any war were debated
at a meeting of the Progressive Club
last night at the Union.
Proponents of the oath argued the
ineffectiveness of criticizing wars of
imperial nations such as France,
Great Britain and -the United States,
while supporters of the collective se-
curity stand urged the need of a posi-
tive program. The Oxford pledge,
they maintained states what we will
not do in time of war, while the col-
lective security program provides spe-
(Continued on Page 6)
New Haven Strike
Picket Line Broken
NEW HAVEN, Mich., Jan. 13.-(P)
-Firing shots in the air, a squad of
25 uniformed deputy sheriffs drove