The Weather
Gtenerally fair today and to-
inorro w; not much lchange in
templerature."

12

£6fr iga

m


~Iui4;

Editorials
Andrew Jackson
And The Merit System..



VOL. XLVIII. No. 88

ANN ARBOR, MICHIGAN, SUNDAY, JAN. 23, 1938

PRICE FIVE CENT$

3 [ f

Government
Wins Verdict
Over Oil-Men
Conviction Ends 3-Month
Battle; Delay Sentences
To Hear Defense Moves
Defendants Facing
Prison And Fines
MADISON, Wis., Jan. 22.-()-The
Government marked up a victory to-
day over 16 major oil companies and
30 of the nation's leading oil men
in one of the most important cases
ever brought under the Sherman
Anti-Trust Act.
A solemn-faced jury composed
principally of middle-aged farmers
and small-town business men re-
turned verdicts in Federal District
Court convicting the defendants of
conspiring to raise and fill gasoline
prices in 10 midwestern states during
1935 and 1936.
Defense Prepares Motion
Defendants, attoineys, judge and
jury-wearied by the lengthy trial
which began last Oct. 4-hurried
homeward tonight, many catching the
first trains leaving the city after
the verdict.
Although the defense prepared im-
mediately to file motions to set aside
the verdicts and for a new trial,
Federal Judge Patrick T. Stone said
he needed a rest and announced he
would set a date later for hearing
the motions. He delayed the ques-
tion of sentencing until disposing of
these motions, and continued the de-
fendants' personal bonds.
Liable For $5,00 Fine
The corporate deendants are liable
to maximum fines of $5,000 each.
The individual defendants face sim-
ilar fines or up to a year in prison,
or both.
Chief Defense Counsel William J.
Donovn and the convicted officials
declined to comment, but members
of the defense staff have said the case
40.onttmied on Page 2
Dixie Senators
Plan Continued
Lynch Filibuster
Caucus Decides To Prolong
14-Day Speech Believing
It Will Kill The Measure
WASHINGTON, Jan. 22.-(A')-
Dixie Senators agreed today to con-
tinue their speech-making against the
Anti-Lynching Bill next week.
Walter Connally (Dem., Tex.) said
after a caucus of the southern group
that opposition speeches would con-
tinue until it was demonstrated the
measure could not pass. The filibus-
ter against the bill already has been
under way 14 days.
About the middle of next week,
Chairman Glass (Dem., Va.) of the
appropriations committee, may ask
that the Senate sidetrack the legisla-
tion in favor of the independent of-
fices appropriations measure. South-
erners expressed confidence they
would have sufficient strength to carry
such a motion.
"There are a lot of senators who
haven't debated the bill at all," Con-
nally said, "and those who have want
to talk again."
"We are not delaying any legisla-

tion," he added in response to a ques-
tion. "The selection of legislation
which we are to act upon is a matter
for the Senate leadership.

Valerio Will Lead
Art Forum Today
Prof. Alexander Mastro-Valerio
of the architectural college will
conduct a forum on prints, print-
making and print collecting at
3:30 p.m. today in the small gal-
leries of the Alumni Memorial
Hall.
The discussion will center
around the exhibition of etchings
and tints by Professor Mastro-
Valerio and the group of prole-
tarian lithographs, etchings and
woodcuts by the Chicago Artists'
Group on display in theANorth
and South galleries of the Alumni
Memorial Hall. The display is
open from 2 to 5 p.m. daily. It will
continue until Jan. 26.
The forum and exhibition are
under the auspices of the Ann
Arbor Art Association. Professor
Mastro-Valerio will be assisted by
other print specialists in answer-
ing questions. The public is in-
vited.
Presbyterians
To Consecrate
NewBuilding
Church Sermons Include
Reality In Social Action,
Hindu Religious Life
The First Presbyterian Church will
hold a special service at 10:45 a.m.
today to consecrate its new audi-
torium. The Rev. Dr. William P.
Lemon has chosen for his sermon
the subject "Sensing the Infinite."
The choir, under the direction of
Dr. E. William Doty of the music
chcol, will sing Organ Prelude, "Toc-
cata" and "Adagio" from "Toccata,"
"Adagio," "Fugue in C Major," and
"Cathedral Prelude and Fugue" by
Bach; anthem, "Behold the Taber-
nacle of God" by William; solo, "I
Will Sing New Songs of Gladness" by
Dvorak; Organ Postlude, "Now Thank
We All Our God," by Bach.
The Rev. R. Edward Sayles will
give the third in a series of talks on
religion and reality at the 10:45 a.m.
service of the First Baptist Church.
His theme is "Finding Reality in So-
cial Action."
At 6:15 p.m. the Roger Williams
Guild will hold a forum with Mr.
Kenneth Morgan, director of the Stu-
dent Religious Association, as guest
and speaker. Mr. Morgan, who spent
many months in a Hindu Monastery,
will speak on "Hindu Religious Life."
"Testing Time" is the title of Dr.
Charles W. Brashares sermon for the
10:45 a.m. service of the First Meth-
odist Church in the Michigan the-
ater. The Wesleyan Guild, meeting
at 6 p.m., will hear Prof. J. Raleigh
Nelson, counselor to foreign students
speak on the sbic~t "When a Feller
Needs a Friend."
Dr. Leonard A. Parr will speak on
"What About the Prospects?" at the
10:45 a.m. service of the First Con-
gregational Church. At 6:00 p.m. the
Congregational Student Fellowship
will have as guest Prof. Bennett Wea-
(Continued on Page 3)
Green Sees Red
In CIO Council
Backs Dubinsky For Stand
Against John L. Lewis
NEW YORK, Jan. 22.-(P)-Wil-
liam Green, president of the American
Federation of Labor, tonight de-

nounced as a "communist intrigue"
the formation of an Industrial Union
Council by CIO unions here.
For the first time, Green comment-

Steel Outlines
EightyMillion
Improvement
U.S. Steel President Sees
Program As Answer To
Criticism Of High Price
Slump Temporary,
Fairless Predicts
WASHINGTON, Jan. 22.-(L)_
President Benjamin F. Fairless said
today that the United States Steel
Corp. planned to spend about $80,-
000,000 on plant modernization with-
in the next nine months.
"In addition," he said in a state-
ment to the Senate Unemployment
Committee, "if business conditions
warrant, there will be undoubtedly
other expenditures in considerable
amounts during 1938."
Fairless was prevented by illness
from appearing before the commit-
tee in person. He sent his statement
instead.
One point he emphasized was that,
in his opinion, there could be no
reduction in steel prices without cor-
responding cuts in wages and other
production costs.
"It is clear," he said, "that prices
can not be reduced without a corre-
sponding reduction in costs, of which
wages are the most important part."
Administration spokesmen recently
have blamed high prices as one cause
of the economic slump,
Rumania Hits
Jewish Voters
On Citizenship
Names Of Jews Stricken
Off The Election Lists
PendingAlien Tests
BUCHAREST, Jan. 22.--(P)-The
Rumanian Government tonight pub-
lished a new decree requiring all Jews
to prove they are Rumanian citizens.
At the same time the names of all
Jews were struck from Rumanian
election lists.
The decree meant Jews will be un-
able to vote in parliamentary elec-
tions, March 2, unless they can prove
their citizenship before that date.
Must Prove Citizenship
Newest step in Premier Octavian
Goga's anti-Semitic campaign, the
decree ordered Jews to present birth
certificates at Government offices
within 20 or 30 days. If born abroad
they must submit their naturalization
papers to re-examination.
Many Jewish leaders feared it
would take too long to get back on
election lists before the Government's
anti-Semitic program meets a test at
the polls in March.
Meanwhile 82-year-old Alexander
Cuza, minister without portfolio, an-
nounced preparations for a world
anti-Semitic congress where he said
the Jewish problem would be con-
sidered on a world-wide basis.
Fervor Increases
As anti-Semitic tervor increased in
Bucharest more than 1,000 Jewish
leaders assembled for a three-day
meeting to consider an appeal to
Great Britain for refuge in Pales-
tine.
Numerous Jewish leaders, however,
expressed the belief migration would
not solve the problem and that it was

impossible to move the Jewish pop-
ulation of Rumania, between 800,000
and 1,500,000.

China, Japanagers'Dr
Push'LifelineD
Front Attack" Falls Point Short, 30-29;

4

Chinese Claim Recapture
Of Mingkwang On Link
Of Nanking-Tientsin R.R.

Pueksters

Upset Sarnia

Nipponese Expect
Long-Drawn War
SHANGHAI, Jan. 23.-(Sunday)-
(P)-Furious fighting surged today on
China's "lifeline" front approximate-
ly 300 miles northwest of Shanghai as
both Chinese and Japanese were re-
ported preparing feverishly for a de-
cisive battle.
Chinese claimed recapture of Ming-
kwang on the railway linking Nan-
king and Tientsin. Previous Japan-
ese reports said the Japanese had
pushed 20 miles beyond that city in
the battle for the southern section
of the rail line.
Japanese columns, moving from the
South, pressed on Suchow, vital junc-
tion of the Tientsin Railway with
the "lifeline" Lunghai Railway that
cuts into Clina's interior.
These ad.ices followed renewal of
large scale Japanese aerial assaults
on regular and guerilla Chinese
troops.
A Japanese spokesman said many
were killed yesterday as naval fliers
fanned out attacking infantry south-
east, southwest and south of Shang-
hai.
A dozen large bombers operating
within a few miles south and south-
east of Shanghai strafed and bombed
Chinese irregulars clinging to other-
wise abandoned barricades in the Poo-
tung area.
These guerilla bands were all that
challenged complete Japanese occu-
pation of the Shanghai area and Jap-
anese predicted the Poctung cleanup
would be finished in a few days.
An official report of the industrial
section of the Shanghai Municipal
Council disclosed in part the enor-
mous damage suffered by Shanghai
industries in the October and No-
vember fighting,
Japs Admit Long War
TOKYO, Jan. 22.-()-The Jap-
anese government admitted today its
need for more money and men to
fight China, acknowledged that the
conflict would be a lengthy one, and
laid down* as one of its basic aims
an economically linked China, Japan
and Manchoukuo.
Dearborn UAW
Test Case Begun
Traffic Ordinance Validity
Depends On Outcome
DETROIT, Jan. 22.-(P)-Dear-
born police began today what they
described as a test case against one
of the 916 members of the United
Automobile Workers union who have
been arrested at the gates of the
Ford Motor Company's Rouge plant
since last Dec. 9.
They indicated that the outcome
of the case will determine the validity
of the traffic ordinance under which
the unionists have been arrested, sev-
eral hundreds at a time in some cases.
Justice Lila M. Neuenfelt Satur-
day issued a warrant charging Ed-
ward Lyons, a UAW member, with
violation of the traffic ruling. The
complaint was signed by Lieut. Reu-
ben Orr of the Dearborn police.

.

Win Is Seventh Of Season
For Varsity; Gib James,
Allen And Fabello Score,
Big Crowd Watches
Slow, Clean Game
By BEN MOORSTEIN s

Sell-Out For J-Hop
Fastest In Decade
All 1,300 bids for the 1939 J-
Hop have been sold, Jack Wilcox,
ticket chairman, announced yes-
terday. It was the fastest sell-
out in the last decade.
Because juniors purchased all
tickes. ta- Cnl Willnnf A Mr

A packed Coliseum sat through 60 I wil wi not; De mac
minutes of poorly played hockey last Agnuralber cox declared.h
night and saw the Michigan James- A num er of persons are ho 
aernF abtt line enboost te 6scoing have not been claimed as yet. To
utes the crowd left with the knowledge take care of these persons, the
that the Wolverines, by defeating the ticket committee will keep hours
Sarnia Imperials, 6-3, had won their Ifrom 4 to 5:30 p.m. on Monday
seventh of nine games. Tuesday and Wednesday in the
. Union lobby.
Sarnia came here last night herald- All bids which have not been
ed as one of the strongest teams in called for by Wednesday will be
western Ontario, both defensively and put on general sale Friday, Wil-
offensively. The impression it left be- cox said.
hind was exactly the opposite. Only The orchestras of Jimmy Dor-
in flashes during the entire three sey and Kay Kyser play for the
periods did the Imperials look any 1939 Hop, which is to be held
better than mediocre. Friday, Feb. 11.
Michigan, too, showed considerable
laxity and plenty of sloppiness at
various stages of the affair. The' Former Panorama
three Sarnia goals were solely the re- Ru
sult of Michigan's loose defense. Not Business M anager
only at the blue line was it weak but
the forwards did not come back to) And Editor Marry
(Continued on Page 6) 11


a
i
I

Air Battle Rages
On Teruel Front
Spanish Infantry Repulses,
Rebel Drive On Celadasj
HENDAYE, France, At the Span-
ish Frontier, Jan. 22.-(/P)-Govern-
ment and Insurgent airmen locked
today in one of the most intense air-
battles of the Civil War while ground
forces fought bitterly on the Teruel
front. Civil centers suffered new
bombardments.
Government troops defending their
newly-won foothold on the lower Ar-
agon front in eastern Spain were re-
ported to have repulsed three infantry
attacks on Celadas, about 10 miles
from Teruel.
The Government reported 1,500 In-
surgent soldiers were lost there.
Insurgent columns led by tanks
assailed the Government fortifica-
tions only to be broken and turned
back by a withering counterfire. Ear-
lier, an Insurgent communique de-
clared "retiring" Government infan-
try left 400 dead in the vicinity of
Villalabaja and Tortajada between
Celadas and Teruel.
Concert Features
Students In Solos
Four student soloists will be fea-
tured in the concert to be presented
by the University Symphony, Thor
Johnson conductor. at 8:15 p.m. Wed-
nesday in Hill Auditorium.
Mary Hamlin, 39SM, Albert Zbin-
den, SM Spec., and David Milliken,
'39SM, will be soloists in piano con-
certos by Mozart, Brahms, and Rach-
maninoff, respectively. Tom Wil-
liams, tenor, will sing the aria "Waft
Her, Angels" from Handel's Jeptha.
The Orchestra will also play trans-
criptions of Bach's organ Prelude and
Fugue in E minor, and two piano pre-
ludes by Debussy, "Minstrels" and
"Goliwog's Cake-Walk."
Badger, Ex-Professor,
To Lecture In Germany
Walter L. Badger, former professor
of chemical engineering here, will
spend four weeks lecturing in Ger-
many during May and June, it was
announced yesterday. Before his
resignation to go with the Dow Chem-
ical Co., Mr. Badger was connected
with the University for 26 years.
Mr. Badger will speak before a gen-
eral meeting of engineers at Frank-
fort, before the German Association,
for Refrigeration at Stuttgart and at
the technical schools of Karsruhe,
Munich and Brunswick.
Civil War Vet, Michigan

A story-book campus romance end-
ed yesterday when announcement was
made of the marriage of Joan V. Han-
son, '40, former editor of Panorama,
to Robert Lodge, '39, the magazine's
business manager.
The ceremony took place Friday
night at the home of the Rev. and
Mrs. Ensworth Reisner in Detroit. The
couple left this morning for New York
City on their honeymoon. They plan
to reenter school the second semes-
ter.
Panorama was the brain-child of
the couple. They presented their idea
to the Board in Control of Student
Publications, which approved it. After
six issues had appeared, however, the
Board was convinced that it was a
financial impossibility for the campus
to support another publication and
suspension of the magazine was an-
nounced.
Utilities Peace
Seen Coming
Lilienthal Believes Court
ChangesEnds Fight
WASHINGTON, Jan. 22.-(AP)-
Changes in Supreme Court personnel
within the last year underlie the ex-
pressed confidence of Administration
officials that peace between private
power interests and the government
is in sight.
The view that peace is near was
voiced by David Lilienthal, TVA di-
rector and spokesman for the ma-
jority of the TVA board, after the
public power authority won a sweep-
ing victory in court at Chattanooga,
Tenn. The court's decision paved the
way for an early and equitable solu-
tion of the problem, he said.
Behind that expression stands Ad-
ministration confidence that the
Chattanooga decision will be ratified
by the Supreme Court on appeal, due
to the replacement of the retired
justices, VanDevanter and Suther-
land, by Justice Black and Solicitor-
General Stanley Reed. Reed's ap-
pointment to the Court will be con-
firmed by the Senate, next week, it
is expected generally.
Whether a return to the power-pool
idea of cooperative government and
private operations in the TVA area
will be a first step, or the suggested
government purchase of competing
private systems will be given con-
sideration, has not been disclosed.
Daily To Publish List
Of Free Text Books
Beginning Tuesday, the Daily
will publish in series a list of text
books available to students under
the free text book lending library
plan.
I A ,-dn rycfr n i~rp f hooks

Pink, Beebe Garner Long
Baskets In Last Minute,
But Other Shots Miss
Townsend, Trenkle
Score Nine Points
By IRVIN LISAGOR
(Daily Sports Editor)
EVANSTON, Ill., Jan. 22.--Staging
a mad, desperate cage demor.stration
in the final minutes here tonight,
Michigan's quintet moved up to with-
in a point of the scrappy Northwest-
ern Wildcats but faltered there and
was defeated 30-29. The defeat tumi-
bled the Wolverines into third place
in the Conference standing.
Patten Gym fairly rocked with ex-
citement in the last five minutes
of play as the Wildcats, in posses-
sion of a five-point lead, put on an
effective stalling game. Twice Wol-
verine guards rushed out furiously,.
intercepted the ball and dashed down
the floor.
Defenses Never Loosen
But the Northwestern defenses
never loosened and Leo Beebe and
Charley Pink were forced to pop two
long shots to keep Michigan in the
battle. In the final splurge, Ed Tho-
mas tried one almost from the -back-
court, but it spun around the rin
and scooted out.
In those waning seconds, Coach
Cappon sent Mannie Slavin scury,
ing into the game. With his sweat
pants still on, Mannie tried to get the
timekeeper to halt proceedings, but
something must have gone wrong aid
the wild scramble on the floor con-
tinued. Even Cappon dashed over
to the timekeeper's desk in an effort
to stop the game. '
Only Finnish Exciting
Prior to the exciting finish, how-
ever, the game failed to provoke much
enthusiasm. It was a test of the Con
ference's two best defenses, and both
fives had to content themselves with
see-sawing in the point columns.
Northwestern's Jake Nagode ren.-
dered Capt. Jake Townsend's usual
hardwood mesmerisms ineffective, al-
though the Wolverine did pace the
Varsity attack with nine points. Time
and again the back line was forced
to exchange the ball because Jake
wasn't in a pivoting position.
Beebe Sinks A Long One
Leo Beebe started Michigan on its
way in the first half after several
moments of deliberation with his fa-
vorite long shot. Fred Trenkle,
Northwestern's aggressive forward,
who led his team's offense, dropped
a foul, followed closely by an over-
hand flip from the middle. From
that point on, neither team gave any
warning of an evening of high scoring.
Before the half ended, Herm Fish-
man pushed in a couple of one-hand-
ed shots, after cleverly faking his
guard.
From a 15-15 deadlock at the half,
the game progressed without undue
fervor in the bleachers. Mike Mc-
Michael, lame ankle and all, inspired
a little zest in the Wildcats with two
buckets.zBut Michigan trailed along
doggedly. At 20 all Trenkle and
Davis pushed NU out ahead, but Jake
(Continued on Page 6)
1st To Rubens
Refused Attache
Soviet Says No Exception
For Jailed American
WASHINGTON, Jan. 22.-(R)-The
United States Government received
today a Soviet refusal to its request
that an American embassy official be

permitted to visit Mrs. Ruth Marie
Rubens, an American citizen held in
a Russian jail.
The Soviets said their internal au-
thorities permitted the representa-
tives of no foreign government to
visit its nationals in prison during
the course of investigations and could
make no .exception for the United
States.
Mrs. Rubens has been in jail since
the beginning of December, on sus-

ed on last week's statement by David
Guard Does Duty, Dubinsky, president of the third larg-
est CIO union, demanding renewal of
Even To Barring peace negotiations between the CIO
and AFL. Green's statement was is-
President's Son sued here by Matthew Woll, AFL vice
president.
"I am glad to note," the statement
OKLAHOMA CITY, Jan. 22.-(P)- said, "that David Dubinsky, president
Edgar Kahle, appointed to guard the of the International Ladies Garment
stage entrance at the Oklahoma Press Workers Union, is not a party to the
Association's annual Gridiron Ban- new splitting maneuver of the com-
quet here, took his work seriously. He munists which, among other things,
turned away dozens. Among them is obviously designed to embarrass
was a young man who inquired Po- him in his commendable efforts to-
litely if he might enter from the promote peace ..."
rear, because he was a bit late. Addressing 1,000 representatives of
"Sorry," said Kahle firmly. "I local unions at a meeting here, Du-
couldnt let you in this way if you binsky blamed CIO leaders for the
were the son of the President." recent breakdown of peace negotia-
The young man was Elliott Roose- tions and assailed communist ele-
velt. ments in the CIO.
John L. Lewis, CIO chairman, re-
Fitzgerald Makes Plans plied that Dubinsky "seems to be giv-
ing an imitation of Eliza crossing the

Cut Federal Spending, Business
Fears Called Factors In Slump

By ROBERT MITCHELL
Curtailment of government spend-
ing and an abrupt fear psychology
among business men seem to be the
leading factors in the continuance of
the present business recession, in the
opinion of Prof. Edgar M. Hoover of
the economics department.
Professor Hoover agreed with the
I statements made before the Senate
Unemployment Committee, Friday, by I
John D. Biggers, director of the Fed-
eral unemployment census.
An important cause of the reces-
sion, according to Professor Hoover,
was the accumulation of over-large
f inventories of materials and finished
goods in warehouses and factories
throughout the country. This was due

mand for goods of all kinds, especially
durable goods, was stimulated by
huge bonus payments to the war vet-
erans, and this caused demand for
goods to remain active for a time
even in the face of rising prices. In-
dustrialists bought freely and piled
up large inventories which could not
readily be disposed of when condi-
tions changed. Until these inven-
tories were sold, production had to
slow down.
Besides the sharp decrease in gov-
ernment spending which was the re-
sult of the end of the bonus pay-
ments, all government spending de-
creased as the President tried to bal-
ance the budget, Professor Hoover