The Weather
Fair today; tomorrow cloudy,
snow flurries in north; no de-
cided change in temperature.
L
Lt igaul
~Iat
Caibinet Crisis
in Franee.
Campds
Periodicals.. .
VOL. XLVIII. No.81 ANN ARBOR, MICHIGAN, SATURDAY, JAN. 15, 1938
PRICE FIVE CENTS
Bonnet Seeks
To Form New,
Popular Front
Government
Former Finance Minister
Confers With President
Lebrun And Chautemps
Guardsmen Patrol
Streets
Of Paris
PARIS, Jan. 14.-()-Georges
Bonnet, diplomat and financial ex-
pert, tonight tried to pull together the
shattered remnants of the People's
Front and form a new government
to solve the labor and economic prob-
lems that forced Camille Chautemps
out of office.
Bonnet, Finance Minister in Chau-
temps' cabinet and like him Radical-
Socialist, promised to give President
Albert Lebrun his answer tomorrow.
He conferred late into the night
with political leaders of the govern-
ment coalition which collapsed early
today.
Two Refused Post
At least two other persons refused
the post before Bonnet accepted the
task of whipping the Communists,
Socialists and Radical Socialists once
again into the People's Front that
ruled France for 19 months.
The still-spreading wave of strikes
and the threat to France's prestige
among her already wavering allies in
Central Europe hastened Lebrun's ef-
forts to obtain a new government.
In the "red region" of northern
France, 10,000 workers demonstrated
their "vigilance" and support 'of the
Communists outside ' Valenciennes
metal factories. The Communist sup-
port of strikers and insistence on for-
eign exchange control was the im-
mediate cause of Chautemps' down-
fall.
Mobile guardsmen, armed with car-
bines, patrolled the streets of Paris.
The Bank of France suspended for-
eign exchange trading and gold and
silver dealings.
The National Committee of the
People's Front adopted a resolution
saying :
"In face of the domestic, and for-
eign fascist menace, only a govern-
ment of the People's Front deter-
mined to apply its program can reply
to the clearly manifested will of the
country."
Bonnet Goes To Chautemps
Bonnet went straight from his in-
terview with Lebrun to a conference
with Chautemps.
Bonnet, 48 years old, was ambas-
sador to Washington until last June
when he was recalled to take the
finance portfolio in the second Peo-
ple's Front government.
He would not disclose any plans
he might have to replace the Coi-
munist support of the Chautemps re-
gime in the event that extreme left
wing of the People's Front refused to
follow his opposition to control of
foreign exchange. Exchange control
is a Communist objective.
Bonnet's consultations with Lebrun
were understood to have been predi-
cated on maintenance of freedom of
foreign exchange.
The President tried unavailingly to
have Chautemps reassume the pre-
miership, and then tendered the in-
vitation to Chautemps' war minister,'
Edouard Daladier, another Radical
Socialist, who likewise declined.
Soph Officers
Modify Plans
Unable To Revamp Student
Government Completely
Modification of the plans for a1
complete revamping of student gov-
ernment which featured the sopho-
more literary college Washtenaw
Party's platform has been necessary
but the basic idea has not been for-
gotten, Phil Westbrook, class presi-
dent, announced yesterday.
The plan, which called for student
government under a bicameral stu-
dent legislature, proved impossible,
Westbrook said, adding that a tenta-
tive program to replace it has been
completed, announcement of which I
will be made later.
At the same time Westbrook an-
nounced class committee chairmen
for the year. They are: Stan Con-'
rad, finance; Stan Swinton, publicity;
Don Treadwell, cooperatives; Jim
McDonald, student government and
Bob Mix, minstrel show. A picnic
committee chairman will be appoint-
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No Basw Split It Popular Front
In France, Prof. Heneman Says
Mutual Suspicion Among mand a majority in the Chamber of
Deputies.
Component Parties Is The immediate cause of the fall
One Reason For Break early yesterday morning of the Pop-
ular Front cabinet under Camille
By S. R. KLEIMAN Chautemps, a Radical Socialist, was
the refusal of the Communists to
Pressure of interest groups on the agree to vote confidence in the Cab-
three lOlitical components of the inet, he said, explaining that the
French Popular Front, coupled with Premier in seeking a vote of confi-
increasing tension growing out of mu-dec rcomndatinoed
tual suspicion, is more responsible for strikes by compulsory arbitration, and
the fall of the Chautemps cabinet opposed exchange control attributing
yesterday than a fundamental split the weakness of the franc to labor
over policy, in the opinion of Prof. difficulties.
Harlow J. Heneman of the political It is generally assumed that Chau-
science department. temps' attitude toward labor is dic-
He said that a knowledge of French tated by Finance Minister Bonnet,
politics in the past makes it seem who comes from a business family
probable that the result of the present and believes in orthodox finance, Pro-
crisis merely will be a new Popular fessor Heneman said. Bonnet hopes1
Front cabinet headed by another to frighten the country by pointing
Radical Socialist. (The Popular Front to the flow of gold out of France
is a coalition of Communists, Social- and the fall of the franc, Professor=
ists and Radical Socialists, reading Heneman believes; in order to elimi-
from left to right politically.) nate strikes.0
Professor Heneman does not think TherSocialists and Communists
it likely that the Socialists will sup- propose to stop the flow of money
port a new coalition eliminating the out of the country by exchange re-
Communists and substituting the strictions, claiming that the subse-1
group immediately to the right of quent stabilization of the franc would
the Radical Socialists, the Left Demo- be sufficient to restore business' and
crats. The one other possibility, that (Continued on Page d)t
of a coalition of all parties to the --
right of and including the Radical So- - 3Qi te
cialists without either the Commu-
aist ihu ihrteCmu hsts or the Socialists, he deems very
remote. To FaceVarsitvt
"It is hard to imagine the Radical.Y
Socialists, the party of storekeepers ("n "ard Battle
and farmers, cooperating with big
U.S. Protests
JapViolation
Of Property)
1.00,000 Communists
Fight Japs In North.
WASHINGTON, Jan. 14.-(P)--The
United States has protested to Japan
once more against violation of Amer-
ican property rights in China.
The State Department announced
today that Consul John M. Allison at
Nanking had notified the Japanese
Embassy in Nanking that Japanese
soldiers continued to enter American
property there and remove goods arid
employes of American institutions,
despite a previous American, protest.
Allison cabled that the soldiers did
this without giving notice of. or rea-
sons for, their action.!
Japs
And
To
Recapture Tsining
Drive Southward
Lunghai Railway
Plaiywrijght (lips Cit
l'For Rem11arks 1Unlkind
NEW YORK, Jan. 14.-(IP)-The
physiognomy of Jack Kirkland, the
playwright, bore evidencetoday-
though slight-of the vigor with
which friends of Richard Watts, Jr.,
defend the integrity of his dramatic
criticism.
Kirkland wrote the stage version
of John Steinbeck's "Tortilla Flat,"
which opened here Wednesday night.
Watts, who is critic for the New
York Herald Tribune, saw the play,
didn't like it and said so in print.
So, encountering Watts at dinner
time last night, Kirkland clipped him
on the jaw, but he made the error
of choosing the artists and writers
restaurant for his arena. The place
seemed to seethe with Watts' par-
tisans when the critic dropped to his
knee. iAccounts are that Kirkland
caught his share of flying fists.
Michigan Team
Defeats Gopher
Roosevelt Demands
The Abolition OfAll
Holding Comipanies
Insuxrgents omb
C o Rern men t' r ain
HENDAYE, France, At the Spanish
Frontier, Jan. 14.-(P)-Insurgent
bombing planes today were reported
to have destroyed an entire train
bringing up Government reinforce-
ments to the Teruel front in eastern
Spain.
The Insurgent dispatches said the
Government was moving new troops
into the hotly-contested sector in
anticipation of a new Insurgent of-
fensive. Teruel was captured by the
Government late in December in a
drive that caught the Insurgent gar-
rison by surprise.
The Insurgent offensive, border ad-
vices indicated, was likely to get under
way as soon as the rains let up.
There were also reports of aplan
for a direct assault on Madrid, the
long-besieged capital 135 miles west
of Teruel. It was generally admitted,
however, even by the Insurgents, that
considerably more than 100,000 men
would be necessary for such an at-
tempt.
UAW Pledwed
Sextet,
l
2l To]
business," Professor Heneman said,
pointing out that their main principle
is opposition to bigness, wealth and
privilege. Both coalitions, he com-
mented, are mathematical possibili-
ties, however, since either could com-
Strik~e Settled
At New Haven
UAW And Foundry Owner
Reach Agreement
NEW HAVEN, Jan. 14.-()-A la-
bor dispute at the New Haven Foun-
dry, marked by three outbreaks of
violence, was settled tonight with an
announcement that an agreement
"satisfactory to both parties" had
been reached.
The announcement was made by
Sumner D. Lamkins, owner of the
foundry, and Burt Harris, organizer
for the United Automobile Workers
of America, at the conclusion of a
peace conference which opened at'
ndon.
The company said it would reem-
ploy 14 workers the union contended
were discriminated against when the
foundry reopened Tuesday after a'
layoff. The UAWA charged that sen-
iority rules were violated in recalling
employes.
French Editor
To Speak Here
Prevost Lectures Monday
On Work Of du Gard
Jean Prevost, prominent French1
journalist who is touring the United
States, will give a University lecture
at 4:15 p.m. Monday in the Natural
Science Auditorium on "Roger Martin
du Gard, His Life and Work." The
lecture will be given in French.
Prevost has been editor of "L'In-
transigeant," influential Paris news-
paper, and of "Europe," international
political and social encyclopedia. He
is studying social life in the United
States as the first recipient of the
Jesse Isador Straus Traveling Fellow-
ship. This is a permanent fellow-
ship established under the will of the
late ambassador to France and its
purpose is to bring well-known French'
leaders to America for study.
Martin du Gard, a personal friend
of Prevost's, has come into public
prominence as a recent winner of
the Nobel Prize for literature, for his
book, "Les Thibault."
The first volume of this work was
published in the 1920's and the last
has just come off the press. "Les
Thibault," dealing with one family
and all of its psychological and social
ramifications, has been translated in-
to English. It is the best-known
modern example of the French serial-
novel.{
Ickes Attacked By Soth
In Anti-Lynch Bill Debate'
WASHINGTON, Jan. 14.-(W)-
Some Southern Senators fighting the
Michigan Hopeful Of 3rd
Straight Big Ten Victory;
Nine Men Make Trip j
Undefeated Michigan hits the rocky '
Big Ten basketball trail again tonight1
as the title seeking Wolverines tangle
with Minnesota's slightly tarnished
co-champions at Minneapolis.
Nettled by two defeats in as many
starts, the Gophers will strive to
annex their initial Conference win
against the high riding visitors, twice
victorious in Big Ten strife.
The Wolverines have chalked up
victories over Illinois and Ohio State
in impressive fashion while Wiscon-
sin and Indiana have whipped the
Gophers.
The Michigan squad departs im-I
mediately after the game tonighti
bound for Madison, Wis., and a sec-
ond week-end tilt with Wisconsin;
on Monday.
Nine men left at 5:20 p.m. yesterday
in the team's firsi, invasion of the
opposing Big Ten camps. The follow-'
ing made the trip: Captain John
Townsend, Jim Rae, Herm Fishman,
Ed Thomas, Leo Beebe, Russ Dobson,
Charley Pink, Dave Wood, and Dan
Smick.
Absent from the roster was Bill
Barclay, the reliable senior, whose
practice injury of Wendesday will
probably incapacitate him for the
remainder of the season.
Wood, speedy Detroit sophomore,
substituted for Barclay on the squadt
list, but it is unlikely that he will see1
duty.
Coach Franklin C. Cappon, Wolver- i
ine mentor, refused to predict the re-
sults of the two game trip. "If we
get by Minnesota, we'll have a good
chance against Wisconsin," was all
he would say.
The Gophers are a better team
than the averages show. They won
high praise from Eastern critics in
their pre-season games during the
Christmas holidays, and are recog-
nized as one of the leading threats forc
the Conference title again this year.
Leading the home squad will be
John Kundla, the brilliant Minnesotat
forward. Generally recognized as oneP
of the outstanding men in the loop,
Kundla tallied 106 points in his soph-
omore year last season to finish fiftht
among the Conference scorers. He1
has been off form as far as scoring is
(Continued on Page 3)
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The employes of American institu-j
tions mentioned in Allison's dispatch Allen Scores Two Goals
today were belD:ved to be Chinese. The
American property referred to lies Unassisted; Mariucci And
outside the Embassy compound. Smith Start Fist Fight
SHANGHAI, Jan. 15.-(Saturday) MINNEAPOLIS, Jan. 14.- UP) -
-P)-Japanese announced today Michigan evened its series with M.-
their forces in Shantung Province had nesota last night, defeating the Go-
driven through strategic Tsining phers, 2-1. The contest was marked
southward toward the Lunghai Rail- by a fist fight in which players of
way and had occupied/Tangchiakuo. both teams participated.
They said the Chinese 29th Army Michigan lost no time in scoring
which had defended Tsining was re- in the first period, but Minnesota
treating toward Kinshan, 27 miles to evened the contest a little more than
the south. a minute later. The third period was
Chinese press dispatches conceded only two minutes old when the vic-
the Japanese were in possession of tors counted their second goal.
Tsining which was reported deserted Smack Allen, center, scored both
by civilians and virtually destroyed Michigan goals unassisted. In the
by gunfire. first period he took the puck on a
The Chinese have been recruiting solo dash, dashing through the Go-
new troops in the central provinces pher defense to beat Petrich.
at a hectic pace and were reported The Gophers sent four men down
to have enrolled 750,000 in the past the ice immediately, and Mariucci
six weeks. These men, with only the took a rebound to give Wallace a
scantiest training are being put into pass in front of the net, and the lat-
action against the some 100,000 ter counted at 16:53.
trained Japanese troops in southern I The second period was devoid of
Shantung and northern Kiangsu scoring, but a fight enlivened the
pr ovinces.stands. Mariucci and Bucko Smith
PEIPING, Jan. 14.-MP)-Foreign started it, both clinching and rolling
observers today estimated 100,000 on the ice. Then other players on
Chinese Communist and irregular each team joined. The two starters
troops were operating against the were given major penalties.
Japanese armies attempting to con- After two minutes and 13 seconds
solidate their conquest of North of the third period, Allen again took
China. the puck in mid-ice, and dashed
These troops-Japanese admit they through the Gopher defense to score
number at least 30,000-have been unassisted.
concentrated mostly in Shansi Prov- The Gophers had chances to score
ince but some have approached to when Michigan had three penalties
within a few miles of Peiping, seat of called in the first nine minutes, but
the Japanese-inspired "provisional they were unable to cage the puck.
government of China." (Summary on Page 3)
One unit of the Red Army fought a -
five-hour battle with Japanese troops Hull A nswers
Tuesday near Mentoukou, 20 miles they w
driven off. Protest OfTv s
Unofficial Japanese advices said the
Communists killed a train guard and
wounded several Japanese, including Says Dodd Has Civil Right
two newspaper correspondents, yes- To Criticize Hitler
terday by dropping grenades from
high cliffs on a train travelling on WASHINGTON, Jan. 14.-I')-
the narrow gauge railroad from Shih- Secretary Hull met an official Ger-
chiachung, Hopeh province, to Tai- man protest against a bitter anti-
yuan, Shansi province capital. Hitler speech by former Ambassador
William E. Dodd today with an ex-
MSC (Geets Large planation that American citizens en-
C Ge Ijoy the right of free speech.
Rackham Fund Gift Hans Heinrich Dieckhoff, the Ger-
man Ambassador, visited the State
EAST LANSING, Jan. 14.-UP)-. Department to tell Hull that Dodd,
Michigan State College officials dis- who recently resigned from the dip-
closed today that the college has re- lomatic corps after five years as
ceived a $500,000 trust endowment for American envoy at Berlin, had in-
agricultural and elm i sulted Hitler in an address in New,
To Acceptance
Of Wage Cuts
Ford To Return 10,000
Men To Work Monday,'
More In Near Future
DETROIT, Jan. 14.-UP)----Cooper-
ation-even to the point of accepting
wage cuts-with managements of au-
tomotive plants forced to "extreme
position" by competitive conditions
was offered today by Homer Martin,
president of the CIO-affiliated United
Automobile Workers of America.
Commenting on wage reductions
ranging from 5 to 20 per cent an-
nounced by Gar Wood Industries,
Inc., Martin said the union would not
oppose such actions when manage-
ments "can show that they have to
cut wages to meet competition else-
where."
Wood officials said the company's
employes had voted to accept the re-
ductions which return wages to 1936
,levels after they were informed the
only alternative was to break up the)
company's Detroit business and move
portions of it to lower wage centers.
The Wood plant here was said to be
employing 250 of a normal 1,000 work-
ers.
A boost in automotiveemployment
came when the Ford Motor Company
today notified 10,000 men who were
laid off Dec. 23, to return to work
Monday. Company officials said -ad-
ditional groups will be called back
"from time to time as soon as the
assembly line gets into shape again."
Assemblies at automobile plants in
the United States and Canada this
week were estimated at 65,735 by
Ward's automotive reports, an in-
crease from 54,084 in the preceding
week. The survey said "the general
belief in automotive circles now is
that spring will see a definite upturn
in general business conditions."
' 'S-
Asks Death Of All Such
Financial, Industrial And
Utility Combinations
Stalement Startles
World Of Business
WASHINGTON, Jan. 14.- ()-
President Roosevelt startled the busi-
ness world today with an emphatic
call for the abolition of holding com-,
panies in all lines of industry and
finance.
He told his semi-weekly press con-
ference in unmistakable terms that
his ultimate aim was the elimination
of such, concerns not only among the
power utilities, as now partially pro-
vided by law, but in banking and oth-
er business and industrial fields.
Wall Street was amazed. Experts on
corporation finance were quick to
say that more than half the compan-
ies whose securities are widely held
are holding companies, in some de-
gree at least.
Wall Street Objects
Of the latter, they said, many ac-
tually are operating companies own-
ing outright control of subsidiaries,
and thus differ from the pyramided
type of holding company to which
Mr. Roosevelt has objected in the past
in the utilities field.
Regarding the President's criticism
of holding companies in the baking
field, and his attack upon "remote
control" of local banks, they estimat-
ed that four companies control banks
having assets of nearly $3,000,000,000.
When or how Mr. Roosevelt pro-
posed to carry out his idea was left
to conjecture.
Some thought he might touch up-
on the subject in his forthcoming
message to Congress on "harmful"
business practices. The message on
business practices may be expected in
about 10 days, the Presid2LQ jjt
dicated.
Asked if he intended to use the
taxing power, the President replied
that he had not arrived at that point
yet. However, he said, there were
various ways of doing away with hold-
ing companies without forcing them
into bankrupty.
Held 'Peace Conference'
Mr. Roosevelt's views were given in
connection with a detailed analysis of
,A memorandum left with him Nov. 23
by Wendell L. Willkie, President of
the Commonwealth and Southern
Corporation. His talk with Willkie
was the first of a series of so-called
"peace" conferences with utility
heads, designed to bring about ex-
tensive private utility construction.
Referring to his Jackson Day
speech, the President said the utili-
ties want the "four-inch tail" legal-
ized for all-time, and that can never
happen.
He reiterated that owners of $600,-
000,000 of electric utilities securities
controlled most of the total of $13,-
000,000,000 of such securities oustand-
ing.
. A reporter asked if he was leading
up to elimination of all holding com-
panies. He replied that he was.
Utility Head Protests
NEW YORK, Jan. 14.-(P)--C.
W. Kellogg, president of Edison Elec-
tric Institute, tonight branded as in-
accurate the statement of President
Roosevelt that utility holding com-
panies are "a 4-inch tail wagging a
96-inch dog."
"The statement has been made by
the President (as reported in the
press) that ' 600,000,000 of holding
company capital controls a $13,000,-
000,000 public utility industry' where
by 4 per cent thus controls 96 per
cent," said Kellogg. "This statement
is incorrect in two respects.
"In the first place, the $13,000,000,-
000 total includes all of those proper-
ties to a vast total which are not
I owned or controlled by holding com-
panies. In the second place it gives
a false impression of the balance of
the industry."
Item Veto Power
Attacked By House
WASHINGTON, Jan. 14.-()-
Angry members of the House Ap-
propriations Committee joined today
in an almost unprecedented "post
mortem" rebellion against legisla-
+., ~nnl nnu
uluua, lluunuurglc research
from the Horace H. Rackham and
Mary R. Rackham Fund!
Robert S. Shaw, president of the
college, said the gift would establish
the Horace H. Rackham Research
Endowment of the Michigan State
College of Agriculture and Applied
Science.
York last night. Life n Fay rCeature
In particular, he was aroused by V 'St S*mTe
Dodd's statements that under Hitler S i eam
"almost as many personal opponents
were killed in five years as Charles
II. (King of England) executed in
20 years of the 17th century," and
that Hitler is "now more absolute
than any mediaeval emperor of Ger-
".
many.-
Labor Has Right To Adequate Hull replied that Dodd had re-
signed his ambassadorship, was now
a private citizen and therefore en-
ef'curity Pa inntsU6H:1 er Savsjoyed the freedom of speech guaran-
teed him by the Constitution.
Asserting that unemployment was
the inevitable result of competitive
enterprise, Prof. William Haber of the
economics department made a strong
plea for social security reforms which
stress adequate payments to workers
rather than abstract principles, in a
radio address over Station WJR yes-
terday.
Presented by the "University of the
Air" as a part of its forum on the
World Today, the talk was read by
J. J. Josephs, Professor Haber's as-
sistant. Professor Haber is in Wash-
ington over the week-end taking nart
It is not five months, but eight years House C omnittee
old."
Of these unemployed, Professor Uroes TaxCh
Haber declared, it seems unlikely that Changes
5,000,000 will ever be absorbed by in-'
dustry now or at any other' time. WASHINGTON, Jan. 14.- (P)-
These men, largely the carry-over Newly-completed tax revision recom-
from the last depression, are mostly mendations should stimulate busi-
unemployable, he said. "They are too ness substantially without lowering
old, they have been on relief too long, the government's income, a House tax
they are handicapped by injury or sub-committee declared today.
they have lost their skills. This It handed to the full House Ways
'hard core,' more than twice the hu- and Means Committee 63 recom-
man wreckage produced by any other mendations for tax changes, includ-
anrcoi-nmm xWill f 1 h ing pronosals for extensive modifi-
Possibiilty that "Life" magazine will
run a feature on Michigan's long-
time champion swimming team de-
veloped yesterday when Joseph Kast-
ner, associate editor, informed David
Zeitlin, '40, Daily sports writer, that
a photographer would be sent from
Chicago to get pictures within two
weeks.
Zeitlin has been in contact with
the magazine for a month and finally
"sold" them on the idea of a feature)
on the teams and its training meth-1
ods. "Life" will probably also fea-
ture the team's record, Zeitlin said,
for what Kastner called "outstand-
ing" performance among U.S. col-
leges. Michigan's team has won the
National Intercollegiate Title for 10
out of the last 14 years.
Prof. Moser To Preside
At Speech Meeting Today
Prof. Henry M. Moser of the speech
n-r orn-an ni- na, ii cti a. -,nn 4 n#.-1