The Weather Cloudy with easterly winds; slight change in temperature. C, 4r Sir igir Iat&4 Editorials It's An III lWind, And Blows No Good... VOL. XLVIII. No. 87 ANN ARBOR, MICHIGAN, SATURDAY, JAN. 22, 1938 PRICE FIVE CENTS Circuit Court UpholdsTVA, Ends Hearing Injunction Refused Utility Companies Who Sought Invalidation Of Project Cite Supreme Court Decision In Ruling CHATTANOOGA, Tenn., Jan. 21.- (P)-Tennessee Valley Authority com- petition with private power compan- ies was upheld as "lawful" by a three- judge Federal Court here today. f The court dismissed an injunction suit by 18 utilities which challanged constitutionality of the TVA Act on grounds that the Authority's low rates would destroy them, rendering prop-; erty worthless without just compen- sation. "These complainants have no im- munity from lawful competition," said the ruling, "even if their business be curtailed or destroyed." 8,00 Word Decision Presiding Judge Florence Allen of the sixth Circuit Court of Appeals read the 8,000-word decision which closed ahearing begun last Nov. 15. Other members of the Court were District Federal Judges John J. Gore and John D. Martin of Tennessee. "A decree will be entered denying the injunction sought," the Court said, "dismissing the bill of complaint and taxing costs against the com- plaints.", Most of them are subsdiaries of the Commonewalth and Southern Corpor- ation and Electric Bond and Share Company, operating within 250 miles of TVA dams on the Tennessee River, and tributaries. Competition Lawful "We conclude that," the Court sum- marized, "since none of the com- plainants claims to operate under an exclusive franchise, no fraud, malice,' coercion, orconspiracy exists; since the Authority is not exceeding its statutory powers, and since the sta-' tute is constitutional, the competition with these complainants is lawful. "It follows that the holding in Ala- bama Power Co., V. Ickes, (recently decided in the United States Supreme Court) squarely applies." Chief counsel James Lawrence Fly of the TVA said the decision was "a milestone in the conservation move- ment." Utility attorneys announced a direct appeal would be taken to the SupremeE Court.t Major findings of the decision were listed as follows: Chief Findings Listedt That the TVA did not conspire to destroy the utilities, to compete il- legally with them or to coerce the power companies to sell their facili- ties at distress figures. That the TVA did not conspire with the Public Works Administration to finance construction of municipal dis- tribution systems so that TVA power might be sold at such low rates that private utilities would be destroyed. That municipalities were not coer- ced into purchasing TVA power. Unemployment Census Director Warns Of Speeding' Recovery Auto Heads Cagers Face To Playv In Ntt 1.Sot Senate Committee Hears Biggers Relate Dangers Of Renewed Depression WASHINGTON, Jan. 21.-()-The nation, having skidded into a reces- :ion, may soon be heading for future trouble by speeding up the economic engine too much, John D. Biggers testified today. The director of the Federal Unem- ployment Census told the Senate Un- employment Committee that if re- covery is stimulated by artificial means, it may come too rapidly. This, he said, would mean another boom to be followed by another and pos- sibly greater depression. The Toledo industrial leader recom- mended establishment of a commit- tee, composed of all of the elements which have a stake in national em- ployment, to work out a program for re-employment of the jobless. The experience of business after the 1929 crash may have had something to do with the sharp impact of the present recession, Biggers said. He explained that industrial leaders. fearing a return of depression times, had curtailed buying at the first hint of a slump in order to "put their houses in order." There were several factors which acted to increasebusiness fears and contributed to the slump, he added. Not the least of these, he said, was the fear of strikes that caused the building up of over-large inventories at excessive prices. The President': announcement last spring that some priceswere too high also contributed, he said. Among other factors, the witness listed the curtailment of Government spending in 1937, the increase in Fed- eral Reserve requirements, stock mar- ket margin increases and the sterili- zation of gold. Biggers said he thought there was little to gain from future attempts to count the number of unemployed, because there were so many variable factors to be taken into account. He said, however, a continuous check might be made through the U.S. Em- ployment Service and the unemploy- ment compensation division of the Social Security Board. Pledge Help Crucial Test ToRoosevelt' At Evanston Ford, Knudsen, Macauley Northwestern Game Today B Present; Condemn 'High 'Viewed As hmporl Pressure' In Car Selling lI nBig Ten Title h sifness Revival I icago Interest Expected In Spring Assures Sell-( rtant Race Out i Deputies Vote For Chautemps Cabinet, 501-1 Conservatives Unite With People's Front Parties In Supporting Ministry. PARIS, Jan. 21.-(P)-Conserva- tives united with the People's Front parties in the Chamber of Deputies today to give the new Radical-Social- ist government of Premier Camille Chautemps its first pledge of con- fidence by a vote of 501 to 1. The vote came after the Premier announced a drastic reorganization of France's national defense on a vir- tually wartime basis and pledged his new government to defend the franc and carry out the People's Front pro- gram of social reform. The Deputies shouted approval as Chautemps read his cabinet's declara- tion of policy and asked the formal vote of confidence. Conservatives as well as Socialists and Communists made no promise, however, that their support would continue. Chautemps himself said he accept- ed the possibility that his government might be only "a transition ministry."I The four moderate conservative groups supporting the new govern- ment were the Democratic Left, Dem- ocratic Alliance, Popular Democrats and Popular Action. Independents To Hold Mixer. Entertainment To Follow Supper Tomorrow Police Arrest 352 At Ford Dearborn Unit Charged With Distribution Of Periodicals In Area Listed As 'Congested' DETROIT, Jan. 21.-(A)-Police of suburban Dearborn today arrested 352 members of the United Automo- bile Workers of America who at- tempted to distribute union literature at the gates of the Ford Motor Co. River Rouge plant. Those arrested were charged with violation of a Dearborn ordinance that designates the road in front of the Ford plant as a congested area and prohibits the distribution of newspapers there. Union officials said that 1,128 per- sons had registered at UAW head- quarters for the distribution, the fourth attempt by the union to give its literature to Ford workers. The distributors massed in front of the gates and sang union songs while urging workers to take copies of the United Auto Worker. Few ac- cepted the invitation. Dearborn police used rented buses and patrol wagons to take the union- ists to jail where they were registered and released. James D. Greene, Dearborn corporation counsel, said no decision had been reached as to whe- ther those arrested will be brought to trial. None of those arrested in the first three distributions have ever been summoned to court. The Ford service department denied any knowledge of the affair. Meanwhile, UAW President Homer Martin, in a letter to allocals sought to "clarify" a statement of last week to the effect that the UAW would agree to pay cuts in businesses forced into an "extreme position." The UAW, he said, is willing to "recognize" certain factors that can be "adjusted through bargaining," but still stands for "the maintenance of high wage levels." HARVARD ASTRONOMER DIES KINGSTON, Jamaica, Jan. 21.-(YP) -Advices received here today an- nounced the death of Prof. William Henry Pickering, 80, Harvard Univer- sity astronomer and author of nu- merous astronomical works at Mande- ville, Jamaica, last Sunday. WASHINGTON, Jan. 21.-(A')-Top nen of the great automobile industry Aledged President Roosevelt their co- )peration today in restricting install- nent sales credit and stabilizing em- ployment. For an hour and a half they ex- -hanged ideas with the chief execu- tive, agreeing with him that "high pressure" methods of selling cars were bad and that no one should be per- nitted to assume an obligation be- yond his means. Incidentally, they reported an expectation of better business in the spring. Edsel Ford Present To all intents and purposes, the! meeting was a realization of Mr. Roosevelt's proposal that the leading men of individual industries assemble with representatives of the govern- ment to discuss the problems of each :ndustry as a whole. Present were Edsel Ford, William S. Knudsen, president of General Mo- tors, and Alvan Macauley, president of Packard. Walter P. Chrysler could not attend personally, but sent K. T. Keller, president of the Chrysler Mo- tor Company, and B. E. Hutchinson, .hairman of its finance committee, When they left the President, Ma- °auley, who also is president of the Automobile Manufacturers Associa- tion, acted as spokesman. To waiting reporters he read a statement upon which all who attended had agreed. Discussion Called Helpful "We hard a board discussion affect- ing business and government and we believe it was-very helpful," he said. "We reported to the President that we were hopeful a seasonal increase in sales in the spring will bring im- provement in business. "We heard a road discussion affect- agreement with the President's prin- ciples on the subject ofinstallment selling. Properly used, installment buying has helped and will continue to help millions of families to a higher standard of living, with a correspond- ing increase in employment. "But high-pressuring customers, or permitting their desires to take them into debt beyond their means, is, bad business all around. Balanced Society Needed,_Says Oder The prediction that "civilization or order will rest upon the foundation of the Oneness of Mankind," was made yesterday by Harlan Oder, formerly a delegate of the World Court Con- gress and world traveler before the Baha'i study group. We need Edisons," he declared "in the world of sociology, of government and religion, that is, we need the type of mind and heart that searches end- lessly for new goals and new accom- plishments." He declared that "the breaking down of the present order -while disheartening to many-is actually paving the way for a new and higher type of civilization." Mr. Oder traced the history of the past decades and said that we have been given a "highly developed ma- terial civilization," pointing out that there has been no parallel develop- ment in statesmanship, government, education and religion. By IRVIN LISAGOR (Daily Sports Editor) EVANSTON, Ill., Jan. 21.-(Special to the Daily)-This staid municipal- ity is all astir tonight over the im- portant cage conflict tomorrow night between Michigan and Northwestern, a game which may hold the key to the unpredictable Big Ten race. Not since an Evanston resident applied for relief have the burghers displayed such animation. This could easily be a scalpers' paradise if Patten Gymnasium had available space, but tickets are rarer than radium now and the S.R.O. sign will be draped across the gate early tomorrow eve- ning. Game A Sellout Even the players, who usually pass out their comps gratis, have found fans ardent enough to contribute like- ly sums to their education in ex- change for choice pasteboards. It's a sellout, in other words, because fan- dom in Chicago and hereabouts sense the title possibilities of the two con- tenders. The Michigan - Northwestern basketball game will be broadcast at 8:30 p.m. tonight over WIND, Gary, Ind. The station is located at 520 kilocycles. Both the Wildcats and Wolverines have lost only one Conference tussle. Purdue-the third membernof this league-leading triumvirate-checked Coach Dutch Lonborg's five last Mon- day, while Wisconsin was tripping Coach Cappon's unbeaten quintet. Townsend Improves Interest, as usual, has been stimu- lated by Capt. Jake Townsend's pres- ence for the first time this season in the Northwestern sector. Jake had a bad night against the Badgers, but appeared to have regained his clever- ness and basket-bagging astuteness during the drills this week. In an effort to prevent complete bogging of his attack when Townsend is tied up, Coach Cappon has tried to get lanky Jim Rae, the capable sophomore center, to shoot faster and oftener. Rae's difficulty has been his deliberateness, the urge to bounce the ball a couple of times before popping it. If he learns to get rid of it quickly, the jamming in the forecourt may be somewhat alleviat- ed. Smick In Back Line As an experiment, Coach Cappon has worked Dan Smick in the back line during the week. Normally a center sharing the pivot, Smick may fill the need for another experienced man in the rear, providing relief for Leo Beebe. Since Bill Barclay's in- jury, Cappon has had to shift about to find a suitable reserve combination. Charley Pink's prolonged relief work (Continued on Page 3) 57 Initiated By Phi Kappa Phi 49 Students, 8 On Faculty Honored At Banquet Normallh a center sharing the pivot position, Danny Smick will see action against Northwestern's high flying basketball quintet to- night in the back line. Coach Cap- pon made the shift to fill the hole left by the absence of Bill Barclay. Michigan Six Meets Sarniaf HereTonight Varsity Sextet Will Seek' Seventh Win Of Season Against Border Outfit1 Michigan's hockey forces will swing back into action after a week's rest, to meet the powerful and highly re-c garded Sarnia Imperials tonight att the Coliseum. The game, which will start at 8 p.m., will be the Wolverine's ninth of the current season and the Varsity will be seeking its seventh win. Fol- lowing this evening's encounter the sextet does not play again until Feb- ruary 12, taking the lay-off for final1 examinations. Coach Eddie Lowrey's men will be9 at full strength for the tussle which from all indications promises to be a close one. The Imperials recently held the strong Holzbaugh team of the Michigan-Ontario League to a 3-0 score giving evidence of their tight1 defense. The main thing that the Michigan1 team fears in tonight's game is theI danger of a let-down after their Min- (Continued on Page 3) Birthday Dance Tickets On Sale Funds From President's Ball Will Help Fight U.S. Infantile Paralysis' The sale of tickets for the Presi- dent's Birthday Ball to be held in the Union and League ballrooms, ,Jan. 29,1 was officially begun when Robert O. Morgan, assistant general secretary of alumni, bought the first ticket from Mrs. Albert J. Rapp, in charge of patrons' ticket sales. Judge Robert B. Sample has been named honorary chairman by Arthur C. Lehman, local attorney, chairman of the committee on arrangements. Sheriff Jacob C. Andres will be treas- urer of the affair. The event, at which students and townspeople will dance informally to raise funds for the nation-wide battle against infantile paralysis is expected to draw a capacity crowd. No part of the funds raised will be retained lo- cally. "We hope that the students will co- operate this year as well as they have in past years in attending the ball," said Mr. Lehman. Half Billion 'Naval Bill Passes House WASHINGTON, Jan. 21.- () -A $553,266,494 appropriation for the navy, one of the largest in peace- time, won House approval today af- ter some legislators made an un- successful fight to eliminate funds for starting construction of two $70,000,- 000 battleships. Board Names Committee To Study Literary Magazine Need Michigan Daily Project Is Examined By Professors Of Publications Board Decide To Abandon Panorama Venture The Board in Control of Student Publications yesterday appointed a committee of three to determine the need for a campus literary publication and draw up plans for such a mag- azine. It rejected a request submitted by former staff members of Panorama to revive the magazine. Prof. Louis A. Strauss of the Eng- lish department, a member of the Board, was selected chairman of the group. He will be assisted by Prof. Edson R. Sunderland of the Law School and Prof. William A. Mc- Laughlin of the Romance Languages department, both Board members. The Board made its decision after hearing a petition submitted by Ed- ward Magdol, '39, who is seeking to revive the Daily's Sunday supplement of 1922 to 1925. 1 Need Recognized Though the Board did not mention any plans for a specific publication, it recognized the need for a campus lit- erary magazine and expressed the de- sire to see some writing medium spon- sored. For financial reasons, the Board had previously announced its inten- tion to discontinue publishing Pan- orama, which it characterized, how- ever, as a splendid work. The request before it yesterday was drawn up by staff members and" proposed imme- diate revival with a reorganized staff. The Board hinted that it might consent to republishing Panorana in the future. Panorama was to have been a new step in college publications and re- ceived the support of Many wv it first appeared. Five issues ap peared before the Board decide to discontinue it. Giovanni Giovannini of the Eng- lish department announced that the English Journal Club's committee to investigate the desirability of a cam- pus literary medium had postponed its meeting until the Board's group met, probably during next week. Many Students Interested Several students have already no- tified the Journal Club that they would be willing to work for the pub- lication. All others interested have been asked by Mr. Giovannini to send in their names. The announcement made by the Board follows: "The Board in Control of Student Publications moved that the note be referred to a committee of Professor Strauss, Professor McLaughlin and Professor Sunderland with the request that they consult with such persons as would be interested in a literary publication and report their findings to the Board." It is understood that when the Board saw the need for some mag- azine, it meant one devoted to "prose, poetry and essays." Since the failure of Contemporary to reappear this fall, there has been no literary publication for undergraduate students. Court Clears Greyhound Co. Payne Dismisses Charge AgainstBus Line A complaint against the Greyhound Bus Lines by the Michigan Public Utilities Commission because of al- leged violation of state public utili- ties regulations, was dismissed yes- terday by Justice Jay Payne who said the company was acting "fully within its rights." The Commission's action was con- tested by the bus company as a test case. The Commission contended that the bus company could not bring special buses into the city to transport students to their homes Christmas vacation without a spe- cial permission to operate off their regular routes. According to Thomas Draper, '39, Union terminal representative, the decision makes it possible for the company to continue to run special buses for students. c That the complainants will suffer Final plans for a supper to be held substantial future damages as the at 6 p.m. tomorrow in the League result of being forced to meet lower were announced yesterday following TVA rates, but that these will be a meeting of representatives of wom- "damages in the absence of legal in- en's dormitories and League houses jury." I and of Assembly and Congress, inde- pendent women's and men's organ- izations. H eller Predicts All men and women attending the supper are urged to come stag and Ito make reservations by Saturday Russo - Germ a noon. The charge for tickets, which will be available at the League and U kraine W ar Union desks, will be 35 cents. Entertainment after the supper-will feature group singing, a treasure The current Nazification of Ru- hunt, ping pong, bridge and darts, for mania is a step nearer to war be- which the third floor of the League tween Germany and Russia for pos- will be utilized. The committee em- session of the Ukraine, Dr. Bernard phasized that the affair is open to Heller said in his sermon last night anyone who cares to attend. at the Hillel Foundation. Faculty guests will be Dean and Hitler realizes, Dr. Heller said, that Mrs. Joseph Bursley and Prof. and England will not easily part with her Mrs. John Emswiler. colonies in order that Germany may have "additional territory for her crowded and growing population and Loyalists, Insurgents his recourse, therefore, is to obtain and annex part of Ukraine." Exchange Air Raids In such a war, it is important for Germany to be sure of having a BARCELONA, Jan. 22.-(Satur- friendly buffer state as well as a clear day) -(P)-A Government com- path to strike the enemy, Dr. Heller munique said today 47 persons were said, and she is therefore seeking tokiue sy t 47 rsons dominate Czechoslovakia and make killed by Insurgent air raids in East- satellite of Rumania. ern Spain yesterday while Govern- The Nazis have been lavish, Dr. ment war planes bombarded Sala- heer carge in their. expenditure manca, Insurgent capital, in reprisal. of funds for German propaganda in The communique said nearly nine Rumania, and he also pointed out tons of explosives and shrapnel were that Germany has deliberately shift- dropped on Salamanca by 20 large h Gi-%nr r n hsa st de l rately bombers. Phi Kappa Phi, national honorary Britain H ears Japs Are Buildi society, initiated 49 students and eight faculty members at its annual e + * winter banquet yesterday at the Gigantic New Super-Battleships League. Dr. Nathan Sinai, director of the public health foundation, addressed LONDON, Jan. 21.--UP)-Great Bri- permitting signatories to break the the meeting on "The Panorama of tain today instructed its ambassador restrictions to compete with larger Public Health." Pointing out that to Tokyo to find out if Japan secretly warships of other nations. there has been a great development was building super-battleships of The French naval committee al- in the public health field in recent more than 35,000 tons. ready has been considering the build- years, Dr. Sinai stressed especially the The admiralty declared there still ing of two 42,000-ton battleships to fact that tuberculosis has been great- was sufficient time to modify Britain's meet the two of 35,000 tons recently ly decreased. Both in cities and rural 1938 battleship tonnage if published announced by Italy and those Japan districts TB has been made less im- reports of Japan's naval plans were is believed to have projected. portant in the doctor's scheme of confirmed. - Battleships were expected to figure things, he said, with the rural fields! The foreign office was described as prominently in the British naval plans leading in the improvement. having "an open mind" regarding the to be presented to Parliament in mid- The next great field of public health I reliability of the persistent reports February. Britain was reported to will be the prevention of pneumonia, that Japan was constructing or plan- be planning to put its fleet, now close- Dr. Sinai declared. States will es- ning to construct 43,000-ton battle- ly held to the Mediterranean, on a tablish several central bureaus to ships mounting 18-inch guns. two-hemisphere basis, take care of this disease with local Should the reports be borne out (The Tokyo press today played up doctors cooperating with them, he by Sir Robert Leslie Craigie's report, in stories and pictures reports the continued. In conclusion, Dr. Sinai Great Britain, the United States and United States might build battleships declared that only 600 of the 3,000 France would be released from the of more than 40,000 tons with 18-inch counties in the U. S. are adequately 1936 London Naval Treaty limita- guns.) organized to take care of public! tions to 35,000 ton capital ships and The United States, Great Britain health.