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VOL. SIJX No. 79 Z323 ANN ARBOR, MICHIGAN, FRIDAY, DEC. 16, 1938

Editorial
Design
For Conagressmen
The New
Chicago Subway
PRICE FIVE CENTS


Abandon Hope
For American
Defense Treaty
Against Attack 1
Substitute Plan Combines
All Existing Agreements
Into 'Peace Constitution'
Argentina Objector.
To Idea Of A Pact
LIMA, Peru, Dec. 15 -P)- The
United States abandoned hope of'
reaching an inter-American pact
against aggression today and put be-
fore- the Pan-American conference a
project to unify all existing peace
agreements among the 21 American
republics.
The proposal would create a kind
of Pan-American peace constitution
and embraced in 23 exhaustive articles
of one 12-page document all the ac-
cords, resolutions and declarations of
previous Pan-American conferences
on peace, conciliation and arbitration.,
The abandonment of hope of reach-
ing an accord for continental defense
was due to Argentina's insistence she
did not want a pact but would agree
to a resolution or statement of Ameri-
can unity.
Argentine Adamant
Behind-the-scenes discussions in-
dicated that Argentina not yet was
convinced the United States' .good
neighbor policy would be permanent.
Argentina, according to Argentines,
Wvants a resolution worded to provide
defense against aggression from any
direction.
That wdrding ostensibly would pro-
tect Latin America from possible ag-
gression from the United States as
well as from other continents..'
The Argentines indicated they
feared a change of administrations
in Washington might alter the pres-
ent good neighbor policy.
United. States delegates, however,
continued to insist the wording should
refer to outside aggression.

Sit-Down Strike Termed Labor's
Firstweapon In Fight For Job
___b -_

Chamberlain
Warns Nazis
Against War

UAW Research Director
Traces Growth Of Uniox
Before Labor Students
.By JACK CANAVAN
Defending the sit-down strike as
labor's only weapon to protect its
"right to a job," William Munger,
director of research for the UAW, de-
fined the history, problems and ob-
jectives of his organization before a
convocation of labor students yester-
day.
"To the average worker his job is
the only thing he has that comes
close to being property," Mr. Mun-
ger declared. "Thus he feels that he
possesses a 'vested interest' in his job
Roosevelt Lands
Jefferson's Role
In Independence
President Breaks Ground
For Marble Memorial
To Former Statesman

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which the employer has no right to
ake away.
"The worker has seen courts, law,
olice and militia used against him.
not as a means to justice but as a
weapon of the employer. Therefore
he naturally views the law as a
weapon to which he has no recourse.
"Having seen scab labor used to
reak strikes in the past with subse-
quent loss of job for striking workers,
hey decided the best way to hold a
ob was to stay right on it," Mr. Mun-
ger said. Hence the sit-down strike.
Public distrust of sit-down strikes
nd union activities in general as
evolutionary and Communistic are
entirely unjustified, Mr. Munger
aid. He recalled the UAW mass meet-
ng in Cadillac Square, Detroit, last,
year as evidence. Banks and down-
own stores placed their cash inside
vaults, hundreds of extra police were
called out, and office workers were
excused two hours early to get home
'before the revolution"-yet no revo-
ution occured. Almost no instances
f destruction of property during the
sit-down strike can be cited, he said.
Attacking what he termed the "pub-
ic misconception" that the UAW re-
ied largely on strikes to achieve its
ends, Mr. Munger said that few of
he 500 contracts established since
(Continued On Page 2)
Annual Ice Fete
Features Skating
Club And Hockey

Weak

Financial

SystemI

May Lead To Downfall
Declares Prime Minister
Caution Delivered
In Luncheon Speech
LONDON, Dec. 15 -(;)- Prime
Minister Chamberlain pointed today
to possibly the weakest point in Ger-
many's armor with a warning to Nazi
leaders that Britain's vast financial
resources might prove decisive in a
long-drawn war between the two na-
tions.
Speaking at a luncheon at the
House of Commons, the Prime Minis-
ter represented British financial pow-
er as a curb on Nazi thoughts of war.
He said:
Consequence Of War
"We may take it that when Ger-
man statesmen-1 will not say the
German people-reflect on the pos-
sible consequences of a conflict, if
ever a conflict should arise between
our two countries, they think not only
of our armaments but of our great
financial resources, which in a war
of long duration might well prove to
be a deciding factor."
Dr. Hjalmar Schacht, president of
the German Reichsbank and prob-
ably the German statesman most
aware of British financial power, was

Hint Hopkins
May Get Post
Left By Roper
Secretary Of Commerce
Leaves Cabinet Position
For 'Personal Reasons'-
Had Been Criticized
For Conservatism
WASHINGTON, Dec. 15.-/P
Daniel Calhoun Roper, Secretary of
Commerce, resigned suddnly today
and wore circulatea on Capital Hill
that Harry L. Hopkins, WPA admin-
istrator was in line co get the Cab-
inet post.
Roper asked to be relieved for
"personal reasons" and reiterated his
devotion to the "objectives" of the
administration. Those close to him
asserted, however, that his deter-'
mination to resign was hastened by
attacks from some New Dealers who
disliked his conservatism.
Peacemaker Role
His role in the Administration was
the task of trying to conciliate busi-
ness men, many of whom were bit-
terly opposed to Roosevelt policies.
He organized 50 industrial and finan-
cial leaders into a Business Advisory
Council which supplied the President
with confidential reports of business's
attitude toward New Deal measures
and tried to minimize the public an-
tagonism of their colleagues toward
che Administration.
Coupled with the recent resigna-
tion of Attorney General Homer S.
Cummings, Mr. Roper's departure
may cause an important change in
the temperament of the'new cabinet,
especially if Hopkins, crusading mem-
ber of the Administration's left wing,
gets the Commerce Post.
Interest Intense
There was intense interest in the
Roper resignation on Capitol Hill.
One prominent Democratic Senator,
who declined to be quoted by name,
predicted that Hopkins would be ap-
pointed to the vacancy to "build him
up" for the 'Presidential nomination
in 1940,
This Senator, often a critic of Ad-
ministration policies, said he was con-
vinced that the President believed
Hopkins more nearly represented his
views than any other nationally
prominent Democrat.
The Senator said that if Hopkins
were placed in the Cabinet and given
a chance to demonstrate that he
could work in cooperation with busi-
"sess men, his political stature might
be enhanced.

Dan Smick Spark s

To Win Over Irish

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They held that Latin America, if it
desires protection, wa safeguarded
 suffiiently through agreements
reached at previous Pan-American!
conferences for maintaining peace!
and abandoning intervention in the
western hemisphere.
Freedom For Labor
Mexico's delegation brought on
spirited debate in the Committee on
Economic Problems by introducing
a resolution calling upon Pan-Ameri-
can Republics to grant their workers
freedom of association and expres-
sion.
There were immediate objections,
several delegates contending the con-
stitutions of the various countries al-
ready contained provisions covering
the subject.
The Mexican delegates insisted,
however, that the resolution was nec-
essary to put provisions of the con-
stitutions into practice, intimating
that some countries were disregard-
ing their constitutional provisions.
The resolution said the point was
of "great importance since it deals
with activities of a majority of the
producers of all the American coun-
tries" and. also because "a great ma-
jority of the workers of all countries'
take an active part in the resolution
of problems, not only internal, but
external."
The United States delegation
recommended that Pan-American
Republics agree to annual meetings
of their treasury officials to discuss
monetary subjects of mutual interest.
Bud.get Deficit
Hits New High,
National Debt Now Totals
Thirty-NineBillions
WASHINGTON, Dec. 15.-(1)-The
treasury's debt soared to a new high
of $39,400,000,000 today. This oc-
curred when investors paid for $730,-
000,000 of new bonds and notes sold
by the ,government.
Meantime another war debt pay-
ment day rolled around, and nothing
was received except from Finland,
which remitted its $232,935 install-
ment in full, as usual.
Hungary made a small partial pay-
ment on its post-war debt, with a
reminder that it is still awaiting
consideration of its offer of Feb. 7
to make a debt readjustment.
The total amount of debts falling
due today from 13 nations was $160,-

WASHINGTON, Dec. 15 -(YP)- A
gilded, historic shovel, wielded at the
direction of President Roosevelt,
broke the ground today for a white
marble shrine for Thomas Jefferson.
In a simple ceremony on the spotI
where the $3,000,000 memorial will
rise, Mr. Roosevelt said:
"For more than 50 years; Thomas
Jefferson, the third President of the
United States, has been recognized by
our citizens not only for the outstand-
ing part which he took in the drafting
of the Declaration of Independence
itself, not only for his authorship of
the Virginia Statute for Religious
Freedom, but also for the services he
rendered in establishing the practical
operation of the American Govern-
ment as a democracy and not an
autocracy."
The site chosen for the classic pil-
larded memorial, on the south edge
of the tidal basin, was described by
the President as a "beautiful spot."
The structure will form the fourth
corner of a cross. The capital, White'
House and Lincoln Memorial are the
other corners and the Washington
Monument the center.
The location has been subject to
criticism because .some of the re-
nowned Japanese cherry trees, which'
have brought beauty and tourists to
the Capital in the spring, must be
removed.
An audience of 200 persons at to-
day's speechmaking was almost out-
numbered by police stationed on the
memorial site because of rumors of
demonstrations.
Mr. Roosevelt spoke from the rear
seat of an open automobile, and his
words were carried to the nation by
radio.
After he had finished he asked
Stuart G. Gibboney, acting chairman,
of the Thomas Jefferson Memorial
Commission, to turn the first earth
for the Memorial.

The second annual University of in non, presumaliy seeking to
Michigan Ice Carnival, recently pub- avert a threatened trade war and
licized by the "dancing men" mes- possibly to work out some scheme for
sages that terrorized the campus, will the emigration of Jews from Ger-
be held Friday, Jan. 13 in the Coli- many. L
seum, it was announced yesterday. Luncheon Private
The carnival will feature a number The luncheon was private, how-
of varied entertainments, notably a ever, and Schacht did not attend. It
figure skating exhibition by 40 picked was in honor of Lord Bicester, for-
members of the Detroit Olympic merly Vivian Hugh Smith, recently
Skating Club, termed the best known elevated to the peerage. Lord Bicester
skating club in the state. During the is a partner in the financial concern
past seasons the intricacy, and ex- of Morgan, Grenfell and Co.
cellence of execution of the Club's Schacht was conferring with offi-
performances have excited favorable cials of the Bank of England todiay
comment, sponsors say. to try to allay--according to the gen-
Fraternitiesand sororities will con- eral opinion of the British press--a
tribute to the entertainment with British threat to "beat Germany at
skating relay races. The four fraterni- her own game" in barter trade. The
ties possessing the best hockey teams threat was expressed Dec. 1 by R. S.
in the Intramural league will be es- Hudson, secretary of the Overseas
pecially invited to compete. Trade Department.
An added feature of the program Chamberlain, it was noted, made a
will be "The Dance of the Sinister point of drawing a line between Ger-
Six." The Sinister Six were publi- man statesmen and the German
cized recently as progenitors of the people .as he did Tuesday night in
"dancing men" publicity plan for the his banquet speech to the Foreigh
Carnival.- Tickets for the Carnival Press Association which the German
will go on sale immediately after Ambassador Herbert Von Dirksen,
Christmas vacation at the main desk and other Germans, refused to at-
i in the Union. tend.-

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Senate Turns Spotlight On Problems
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Kraus To Probe Atomic
Structure Of Diamond
Dean Edward H. Kraus of the liter-
ary college will present a paper en-
titled "An Explanation of Diamond
Cutting in Terms of Atomic Struc-
ture". before a meeting of the Min-
erological Society of America, Dec. 27
and 28, in New York. This is a joint
paper, the work of Dean Kraus and
Prof. Chester B. Slawson, both of the
minerology department.
The paper is a correlation of the
experience of diamond c u t t e r s
through the ages with the crystal-
lographic theory and the atomic
structure.
Republican Presi
In 1940, Prof.
By JACK SULLIVAN
Gains by the Republican party in

Profit-Sharing Committee oR
Ponders Incentive Taxes Conference Ruling
As Recovery Measure Stops Townsend
WASHINGTON, Dec. 15.-(P)- John Townsend, former Michigan
Members of the Senate Profit-Shar- basketball star and present assistant
ing Committee undertook a double- coach is out $1,000 today. He was
barreled attack on the nation's un- informed by Western Conference offi-
employment problem today. cials that being a Varsity coach, he
At their direction, committee at- was prohibited from performing with
taches began drafting a formula of professional teams.
profit-sharing designed to stabilize Townsend possessed contracts with
employment and guarantee old-age the Flint Fisher Body pros and The
retirement funds for workers in ten Hammond, Ind. Caesars, and would
of the nation's largest industries. have netted $1,000 for the season,
At the same time. Senator Van- with the two teams, but was forced
denberg, a committee member, dis- to withdraw from both because of
closed he would try to substitute in- the Conference'ruling.
centive taxation for government
spending intended to "prime the to expand its plants, and thus in-
business pump." His idea was that crease employment by granting tax
business itself should be encouraged deductions to firms which do so.
aThe committee's profit-sharing
formula, as outlined by Donald Des-
dent Probable pai committee counsel, will propose
joit cntrbutonsbyemployes and
employers to an irrevocable trust
Cu cannon hays fund to be set up by each participat-
ing firm.
This trust fund would be used to
proposal to arrange a shiine for him- pay retirement benefits to all work-
self in the upper Hudson Valley, and ers who contributed by an agreement

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Senator Vandenberg Seeks
Cancellation Of Planned
Old AgePension Boost
WASHINGTON, Dec. 15 -(A)- A
demand that Congress cancel sched-
uled increases in old age pension taxes
was made today by Senator Vanden-
berg.
The increases, he argued, would
needlessly take $40,000,000,000 "out
of America's pay envelope between
now and 1980."
Reserve Planned
(Under the Social Security Law,
the tax is one per cent on employers'
payrolls and one per cent on em-
ployes' wages. The law calls for an
increase of one-half per cent in each
tax in 1940, and similar increases
every three years until the tax
reaches 3 per cent on employers and
3 per cent on employes.
j The taxes are designed to build up
a reserve of possibly $47000,000,000 in
1980. Vandenberg asserted that the
present one per cent tax is adequate
to provide a comparatively small
"contingent reserve" and meet pen-
sion payments, provided the govern-
ment helps meet the ultimate cost of
the benefits.
Approves Changes
Vandenberg expressed general ap-
proval of a proposal, reported to have
been made by the Social Security Ad-
visory Council, that the government
bear a one-third share of the ulti-
mate pension cost out of its general
funds. The Senator said the Govern-
ment would have to pay at least one
third, anyway, in the form of interest
on the huge reserve, which is to be
invested in Government securities.

Josef Hofmann, who last year cele-
brated the 50th anniversary of his
lebut as a piano virtuoso, will come
o Ann Arbor Tuesday,' Jan. 10, in
he fifth Choral Union przsentation.
Hofmann was five years eld when
he astounded a New York audience
with his amazing rendition of the
Beethoven piano concert No. 1. Since
that time, the Polish artist has risen
steadily until today he stands at the
top of his field. Fifty years after the
five-year-old child stretched to reach
the foot pedals, he appeared again in
New York, where it was generally
agreed that Hofmann was at the peak
of his career.
The sixth Choral Union presenta-
tion will be Beniamino Gigli, brilliant
Italian tenor, who comes here on
Jan. 19 to replace Kirsten Flagstad.
Due to the inability of the Budapest
University Chorus to leave their
country because of political condi-
tions, the seventh concert on Jan.
25 willpresentthenBritish piano
team of Bartlett and Robertson.
Yehudi Menuhin, the "boy-wonder"
violinist, returns to Ann Arbor on
Feb. 15, and he will be followed in
the ninth concert by Gregor Piat-
igorsky, Russian violincellist on Feb.
27. The Roth String Quartet closes
the regular concert season with a pro-
gram on March 9.
College Football
Beats 'Pro' Game,
Students Declare
fThat three-fourths of American
college students don't believe that
college football is giving way to pro-
fessional games was revealed by the
second nation-wide poll of the Stu-
dent Opinion Surveys of America, or-
ganized for the sampling of opinions
of the entire college and university
enrollment of the United States along
scientific lines.
The Daily, working with the Bureau
of Student Opinion, is one of the co-
operating campus publications.. Na-
tionwide interviewing began this
month, including a proportional
cross-section of Michigan students.
President Hutchins of Chicago leads
the yearly "pro and con" discussion
of commercialized football with a cur-
rent magazine article proposing to
take the profits out of intercollegiate
football.
For the first time, the Student
Opinion Surveys of America have
unified campus opinion on a nationa:
scare.

Lati1-American
tnInstitute Meets
Here In 1939
Pan-American Conference
Makes Meeting Doubly
Valuable, James Says

T h e Pan-American Conference
which opened in Lima, Peru, last Sat-
irday makes particularly timely the
nstitute for Latin-American Studies
;o be held at the University next sum-
ner, according to Prof. Preston E.
Tames, director of the Institute.
Greater importance will be attached
o the Institute because of the lack
>f knowledge of Latin-America in
his country which recent inerna-
ional developments have revealed.
Hemisphere defense and other prob-
lems of the Americas, authorities
believe, cannot be solved without more
adequate knowledge of the American
nations.
The 1939 Institute, which grew out
of the interest in Latin America of
a group of scholars here and at the
University of Chicago, will provide
a concerted attack on our lack of
knowledge of our neighbors to the
south, according to Professor James.
In such a conference, he believes,
more emphasis may be placed on ac-
curacy and objectivity than has been
possible in other groups whose work
has been hamstrung by diplomatic
inhibitions.
Authorities on Latin America in a
half-dozen fields will be brought to
Ann Arbor for the Institute, accord-
ing to Professor James. An eight-
week program of formal courses, lun-
cheon meetings and special lectures
is being designed to provide an inten-
sive training period.
In addition, it is expected that the
concentration of efforts by experts in
various fields will be particularly ef-
fective in attaccing the whole pic-
ture of Latin American problems.
Courses in the Spanish and Portu-
guese languages, Spanish-American
and Brazilian literature, history,
geography, international relations,
sociology and economics will be of-

the 1938 elections in House, Senate his announced intention to dee
and governorships have convinced to the United States Govern
Republicans and some Democrats which has not even yet becom
that there exists strong probability property," Professor Cuncannon
for the-election of a Republican presi- "Mr. Roosevelt, following the
dent and a Republican House in dition of his family, doubtlessd
1940, in the opinion of Prof. M. Cun- to name his successor. If thel
cannon of the political science de- dent stuck to a typical Dem
partment. politician he could easily pu
The last two years of an adminis- across at the convention throug
tration always constitute a looking power a president exerts in hi
forward to the next election, Profes- party's convention," Professor

d land
nment
me his
n said.
e tra-
desires
Presi-
ocratic
t him
gh the
.s own
Cun-

between employes and employers.
The interest on a previous year's
joint contributions could be used to
pay retirement benefits to all work-
ers who contributed by an agreement
between employes and employers.
The interest on a previous year's joint
contributions could be used, in an
emergency period of unemployment,
to bolster payrolls.
Despain emphasized that no legis-
lation was to be proposed in con-

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All Home Hockey Tilts

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