War Profits
An-d The Futu~e



II

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Editorial
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Vicary .
ineberg .

Staff
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. Associate Editor
SAssociate Edior
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* Sparts Editor

Business Staff

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:Im HT EDITOR: RICHARD HARMEL
The editorials published in The Michigan
aily are written by members of The Daily
staff and represent the views of the writers
only.
he, Inventions
0 Not Make Jobs...
0 ONE will deny that the economic
opinions-of Franklin Rosevelt have
ot had universal agreement. Last week a state-
pent by him drew the censure of Dr. Karl
onipton, President of the Massachusetts In-
bitute of Technology who attempted to show
he fallacy of his reasoning. The statement: We
ave not yet found a way to employ the surplus
f our labor which the efficiency of our indus-
ial processes has created, or to face the task
f finding jobs faster than inventions can take
hem away.
,The refutation was the usual argument, com-
ining classical theory and historical precedent.
'ie theory is that industrial mechanization
means lowering the cost of production which
i turn brings lower prices.'The greater demand
t these lower prices makes for an equal or
reater utilization of the displaced labor. Or
the demand is inelastic, the lower consumer
st goes for other articles so that employment
stimulated in different fields.
EPAUSE a theory is logically and historically
correct does not mean that there are no oca-
ons kwhen inventions cause unemployment.
irst, there is the factor that whenever labor-
kving devices are installed there is always a
g of varying time before the displaced workers
,nd $obs. During that period society must take
ire of them. The problem is aggravated when
aprovements are taking place simultaneously
i-a large number of industries. Then if there
a period of economic slack when there are
[ready millions unemployed from cyclical
auses, it becomes absurd to speak bf long-range
mefits as a solution for the immediate crucial
coblems raised by this mechanization progress.
In fairness it should be cited that Compton
Imitted that technological unemployment ex-
ts in specific situations, and that efforts must
V made to 'mitigate the effects of such situa-
ons. but the thesis of his speech was that
r. Roosevelt was wrong in placing too much
nphasis on a relatively unimportant phase of
ie question. Our contention is that stressing
ie future good of technological progress tends
sidetrack consieration of the immediate dif-
culties that must be faded.
The most serious difficulty today is in agri-
alture; and -moreover, it probably will grow
orse in the next few years. Peter Drucker in
recent issue of Harper's points out that the
actor and the cotton picker threaten the live-
hiood of every sharecropper and tenant farmer
1 the Old South. He names the tractor as the
Alain of The Grapes of Wrath. Dr. Paul Taylor
stifying before the LaFollette committee warn-
I that efficient industrialized farming is mak-
ig migratory workers not only out of the share-
oppers and tenant farmers, but out of small
dependent owners as well. Theoretically, in-
entions like the Rust cotton picker should be
boon to society, but given the present circum-
ances, however, and it will have harmful con-
Bquences.
T HAS -been suggested by some economists
that even disregarding the depression the
roblem exists. In a paper ,delivered by Edna
onigan before the American Economic Society's
ivnention at Detroit two years ago, it was
mown that the problem was beginning to make
s appearance in the early 1920's. She explained

W AR BOOM industries, as. experiences
after World War I so vividly proved,
are generally synonymous with unstable business
practices, and as the world today plunges deeper
into the throes of mortal and economic conflict,
we must again guard ourselves against the over-
speculation and uncontrolled expansion that has
been practiced by big business in past instances.
Though politically neutral, it cannot be denied
that we are, economically at least, intimately
concerned with the present' war in Europe.
American industryhis deriving a large profit
from belligerent accounts, and whatever our
views on the right of any individual or enterprise
to gain monetary profits at the expense of hu-
man bloodshed, we must realize that such is the
case and plan our national economy with an
eyem toward a stability which will outlive the
termination of the war.
MOST typical of the industries now deriving
almost unprecedented profits from Euro-
pean belligerents and American preparedness
drives is the .aircraft manufacturing industry.
To cite a few figures, U. . aircraft makers now
have on their books 600 million dollars in un-
filled orders for airplanes, engines and parts.
This is a staggering sum, when compared to the
total sales of the industry three years ago which
totaled only slightly over 86 million dollars.
A recent survey of American aircraft manu-
facturers conducted by Fortune magazine con-
cludes that these businessmen fully realize the
vulnerability of their position and are behaving
accordingly.
Plant expansions, the report reveals, are be-
ing kept at a minimum by utilizing mass-produc-
tion methods and by letting out as much work
as possible to other industries for sub-contract-
ing. The tremendous war profits, meanwhile,
are being piled up as surplus to buffer the shock
of peace and to help stabilize the industry when
the large-scale business now under contract
suddenly ceases.
AFTER the war, provided economic precau-
tions have been established to stabilize the
industry, American aircraft makers will be in
a position to dominate the world market nearly
as effectively as did U.S. automobile makers
after World War I, and for the same reasons-
technical superiority and mass production.
For the past few years, foreign manufacturers
have been concentrating on military designs.
American manufacturer s though deriving heavy;
profits from both national and foreignng miitary
purchasers, now find themselves with ready
t funds for the expansion of private and commer-
cial -aircraft construction and development.
American commercial airliners now fly on a
majority of the world's airlanes, and after the
war domestic developments in both private and
transport design and manufacture will be far
ahead of any foreign power.
THAT the commercial lines are not suffering
at the expense of the military trade is well
indicated by a recent report on domestic com-
mercial airlines which showed that all but one
transport company showed a profit last year,
and as a result, many lines have applied for
further extension of present routes.
In the line of private flying, the CAA plan
to train 10,000 pilots a year will be a strong
impetus to future sales of sport planes, a- mar-
ket which is steadily rising.
By diverting large war-time profits along
lines of rational expansion and by building a
bulwark of surplus profits, the present war boom
can be turned into a permanent improvement
in our economic system, but we must be con-
stantly on guard against a rabid and detrimerital
expansion of war-time industries and credits.
-Karl Kessler
Drew Persoii
dad
RobertS.Allen
r-

Washington-That secret Dies committee
meeting last Monday did not consider new in-
vestigational plans as announced by Chairman
Dies. What actually took place was a fight to
fire J. B. ("Doc") Matthews, the committee's
so-called "Communism expert."
Theteffort came within one vote of succeed-
ing. Matthews was saved only by the 'slim
margin of 4 to 3.
The dismissal motion was made by Repre-
sentative John J. Dempsey, silver-haired New
Mexican, who has long been opposed to Mat-
thew's employment. Supporting Dempsey were
his two liberal colleagues, Representatives Jo-
seph Casey of Massachusetts and Jerry Voorhis
of California. Voting with Dies, who hired
Matthews and had been his chief backer, was
the fourth Democrat, Joe Starnes of Alabama,
and the two Republican members, Noah Mason
of Illinois and J. Parnell Thomas of New Jersey.
Dempsey's move provoked a heated clash. In
demanding Matthews' ouster, Dempsey charged
the investigator with bringing the committee
into disrepute by his "radical background" and
his "passion for grinding personal axes."
As an instance of this he cited Matthews'
report on alleged Red influence in consumer
organizations. This report, issued last December
from Dies' home in Orange, Tex., without the;
knowledge or consent of the full committee, vig-
orously assailed the Consumers Union.
"I hold no brief for this organization," Demp-
sey asserted, "but it happens that it is a com-

ASU nd Logic
To the Editor:
The following logic was used at a recent
meeting of the American Student Union by two
persons opposed to the referendum which
would condemn the USSR as an aggressor
against Finland.
First. Great Britain has denied the right of
self-determination to the people of India; there-
fore, the USSR is justified in denying the right
of self-determination to the Finnish people.
Second, Mr. Robert Rosa, who supported the
referendum, expressed the belief that the stand
of those who opposed the referendum was tied
to the tail of USSR foreign policy which wags
with expedient irregularity and inconsistency,
i.e., not guided by any lasting principles-the
right of self-determination, for instance. Mr.
Elliott Maraniss, who opposes the referendum,
contended that Mr. Martin Dies holds the same
view as Mr. Rosa; that Mr. Dies is a red-baiter;
that red-baiters are bad; therefore, Mr. Rosa's
position is bad, i.e., wrong or no good. By proof
of "association" Mr. Maraniss attacks Mr. Rosa's
position. Mr.. Stuart Chase in a recent article
in the New 7Republic exposed Mr. Dies as a
chronic exponent of this same weird and fa-
natical logic-proof by "association." I submit:
Mr. Maraniss uses proof by "association," Mr.
Dies uses proof by "association," therefore, Mr.
Maraniss is a reactionary red-baiter. Mr. Chase
proved the Pope a communist too. Mr. Rosa's
position cannot be proven incorrect by any
such illogical techniques.
Briefly the positions of the two groups are-
the following: The negative stand on the refer-
endum is that peace for the United States, the.
condemnation of the USSR's action, and the
passing of judgment on the USSR's action to-
ward Finland are indivisible. ]f we are to stay
at peace we must not arouse emotions and hatred
against the USSR by condemning her action; if
we are not to condemn the action of the USSR,
we must justify or rationalize her action. Thus
our staying at peace, or a contribution to our
staying at peace, becomes solely dependent
upon the successful justification or rational-
iNation of the USSR's action toward Finland
which therefore receives greatest stress. Does
the end justify the means? Are the links -in
this stand interdependent and indivisible?
The affirmative position on the referendum
answers the latter question negatively. It is
their contention that the ASU must follow the
same principle that it followed In the case of
China, Ethiopia, Spain, Austria, Czechoslovakia,
Albania, and Poand-i.e., the right of people
to self-deteri'ne their own government and lot
without outside interference. o'this reason
the action taken by the USSR toward Finland
must be condemned as an aggressive act. But
at the §same time this need not impair the ener-
getic efforts of the group toward the mainten-
ance of peace for this country-to subdue emo-
tions and hatreds, to protect civil liberties, and
to increase employment. Strivation for peace
and the condemnation of the USSR as an ag-
gressor are not incompatible.
As a member of the ASU I must be numbered,
among those who favor the latter position,
though from a purely pragm tie point of view
the fo'mer stand is not entirely indensible.
-'William C. Stevens
How About Relief Here?
To the Editor:
Well, now that several hundreds of dollars
have been given to the Finnish Relief Fund
let's turn to more pressing problems facing us
here in our own United States. About $1500.00
(figured on the basis of the attendance figure
as published in The Daily Feb. 28) was added
to the coffers by the Benefit Concert held last
evening. What could be done with that sum, if
spent to relieve suffering in the United States?
Ann Arbor, for instance.
Several groups have united in Ann Arbor to
sponsor a Milk Fund. Already the demands on
this group have far exceeded their capacity to
provide funds for milk for needy families, even
though this is a newly instituted activity.
Wouldn't it be much more worthwhile to con-
tribute $1500.00 to such an enterprise. Surely
many worthwhile groups in the United States

need aid!
But, what of the poor Finns? This question
is very valid. Unfortunately, the .,Finns have
been, and are being, subjected to one of the
outrages of civilization. They are deserving of
every sympathy and aid we can give them,
without depriving our own population. It is
very necessary that we care for our population
in order that such conditions as exist in Soviet
Russia, Germany, et al, will not occur in our
nation. Until we have insured (and assured)
ourselves of this, we should 'keep our hundreds
of dollars and USE them to relieve suffering in
the United States. Remember, if our Liberties
should be taken from us, those who spent their
monies for purposes other than the American
cause will be the first to complain. - R. R.
"If we cannot conduct our intercollegiate pro-
grams without subsidizing our athletes or pro-
selyting prospective athletic candidates, let us
frankly admit that we have gone the whole{
professional way and that henceforth we shall
pay our athletes for their services." Harvard
University's athletic director, W. J. Bingham,

7e EDITOR

FRIDAY, MARC!! 1, 1940
VOL. L. No. 107
Not ices
The University Council Committee
on Parking earnestly requests that the
parking of ca's and trucks on the
ovals between the Chemistry and Na-
tural Science Buildings or anywhere
else on lawns, be discontinued. The
grass underneath the snow will be
damaged' not only by the ice conse-
quent to the packing of snow, but
also by the dripping of oil from
motors.
Herbert G. Watkins
To the Members of the Faculty of
the College of Literature, Science,
and the Arts: The fifth regular meet-
ing of the Faculty of the College of
Literature, Science, and the Arts for
the academic session of 1939-40 will
be held in Room 1025 Angell Hall,
March 4, 1940, at 4:10 P=m.
The reports of several committees,
instead of being read orally at the
meeting, have been prepared in ad-
vance and are included with this call
to the meeting. They should be re-
tained' in 'your files as part of the,
minutes of the February meeting.
As the agenda includes items of
importance to the faculty as a whole,
it is hoped that there will be a good
attendance,
Edward H. Kraus
AGENDA
1. Consideration of the minutes of
the meeting of February 5, 1940 (pp.
600-605), which are distributed by
campus mail.
2. Memorial to the late Professor
Bruce M. Donaldson. Committee:
Miss Adelaide A. Adams, Professor
Arthur L. Cross, and Dr. Frank E.
Robbins, chairman.
3. Consideration of the reports sub-
mitted with the call to the meeting:
a) Executive Committee, prepared
by Professor H. H. Bartlett. b) Uni-
versity Council, prepared by Professor
W. G. Smeaton. c) Executive Board
of the Graduate School, preparedr
by Professor C. S. Schoepfle. d) Sen-
ate Advisory Committee on Universi-
ty Affairs, prepared by Professor L.
C. Karpinski. e) During the past
month there has been no meetng of
the Deans' Conference.
4. Recommendations of the Execu-
tive Committee of the College on the
Report on "The Evaluation of Faculty.
Services" (pp. 575-576).
5. New business.
Faculty, School of Education: The
regular luncheon meeting of the
faculty will be held Monday, March
4, at twelve noon, at the Michigan
Union.
Students, College of Literature,
Science, and the Arts: Elections
cards filed after the end of the first
week of the semester may be accept-
ed by the Registrar's Office only if
they are approved by Assistant Dean
Walter. Students who fail to file
[their election blanks by the close of
the third 'eek, even though they
have registered and have attended
classes unofficially will forfeit their
privilege of continuing in the Col-
lege for the semester. If such stu-
dents have paid any tuition fees,
Credit -Unions
Credit unions are growing faster
than any other type of cash-lending
agencies, with the possible exception
of the personal-loan departments of
banks, according to a survey pub-
lished in the current issue of the
Journal of Business. This statement
has a twofold significance: First, it
indicates that the nation's banks,
unable to find profitable investments
for their funds, are entering the per-
sonal-loan field( which they once
f eglected) in increasing numbers.
Second, it indicates that the banks,
handicapped as they are by legal
restrictions and by antiquated bank-

ing traditions, are finding the credit
unions tough competition.
The typical credit union is com-
posed of employees of an institution,
banded together to help themselves
and each otherptoaccumulate sav-
ings, 'and, to provide 'facilities 'for
making small loans at low interest
rates to members who require them.
Members on their own signatures
can secure loans up to $300 in some
states, and pay back principal and
interest overau12 months' period,
without the -humiliation of asking a'
friend to act as co-signer of the note.
Subject to state regulation and in-
spection, the credit unions supply a
valuable service. It seems likely that
they will continue to thrive and that
their competition may force a liber-
alization of the small-loan business
all along the line, from bank to loan
shark. This is an effect to be de-
sired. So, too, is the effect of the
credit unions' basic theory that wage
earners can help themselves-and
each other.
- Chicago Daily News
SG.B.S. To The Artists
George Bernard Shaw has diverted
his great gifts from the subject of
Soviet Russia to the first wartime
PwhihiHtno f nicturesa t the Rnva1

DAILY OFFICIAL BULL

r.

A

Ll

- It

It

Assistant Dean Walter will issue a
withdrawal card for them.
School of Education Students,
Changes of Elections: No course may
be elected for credit after Saturday,
March 2. Students mst reprt all
changes of elections'at theegis-
trar's Office, Room 4, University Hall.
Membership in a class does not cease
nor begin until all changes ave been
thus officially registered. Arrange-
ments made with the instructors are
not official changes.
Students, College of Literature, Sei-
ence, and the Arts: No course may be
elected for credit after tomorrow.
. E. A. Walter
Bronson-Thomas Prize A German:,.
Value $39.00. Open to all undergrad-
uate students in German of distinct-
ly American training. Will be
awarded on the results of a three'-
hour essay competition to be held
under departmnental supervision on
March 21, from 2-5 p.m., 203 U..
Contestants must satisfy the depart-
ment ' that they have done their1
reading in German. The essay may
be written in English or German.
Each contestant will be free to choose
his own subject from a list of at least
30 offered. The list will cover si
chapters in the development of Ger-
man literature from 1750 to 1900,
each of which will be represented by
at least five subjects. Students who
wish to compete must be taking a
course in German (101 or above) at
the time of the competition. Theyl
should register and obtain directions
as soon as possible at the office of"
the German Department, 204 Uni-
versity Hall.
Kothe-Hildner Prize in German:
Two prizes, of $30 and $20 respective-
ly, will be awarded to students taking]
German 32 in a translation compe-
tition (German-English and Eng-
lish-German) to be held Marh 21,-
from 2-5 p.m. in 203 U.!H. htudents
who wish to compete 'and who have
not yet handed in their applications
shuld do so immediately and obtaina
directions.
Doctoral Examination of Charles
Andrew Murray will be' held at 9:00
a.m., Saturday, Mar. 2, in 309 Che-in
istry Building. Mr. Nurray's de-
partment of speciaiation is Cheis
try. the 'title of his thiess is "l ter-
ation of the Surface Properties of
Carbon Black by Treatment in -Dif-
ferent" Gases at Differet Tempera-
tures."
Dr. F. E. Bartell, as chairman of
the committee, will conduct the ex-
amination By direction of the Ex-
ecutive Board, the chairman has the
privilege of inviting members of the
faculty and advanced dactoal adi
dates to attend the examnaion and
to grant permission to others who
might wish to be present.
C. S. Yoakun
Aeronautical Engineering Students:1
There will'be available in the bepart-
ment of Aeronautical Engineering two
Frank P.'Sheehan Scholarships and]
probably three assistantships, for the
year 1040-41. These scholarships and
assistantships are, in general, re-
stricted to upperclassmen and grad-.
uate students, and the selection is
made very largely on the basis of
schOlastic standing. Applications for
these positions will be received up to
March-°15, 19401. Students wishig to
mrake aplication should address them
toProfessor E. A. Stalker, B-47 East
Engineering Building, and should give
a brief statement of their qualifica-
tions and experience in regard to
their scholastic work and any outside
experience they may have had. A
statement should also be made giving
their plans for further study in Aero-
nautical Engineering. Applications
may be made for both the scholar-
ships and the assistantships.

Senior Lit Students: Class dues are
payable today.
Academzic Notices
Anthropology 152 will not meet to-
day.
Make-up Final Examinations for
all Geology Courses will be given from
9-12 on Saturday, March 2, in Room
2054 Natural Science Building.
M.E. 15a, 63 and 73: Special illus-
trated lecture and discussion on the
various design problems of aircraft
engines.
Casses to meet in Room 229 West
Engineering Building at 7:30 tonight.
Anyone interested can attend.

gallery, Alumni Memorial Hall, until
March 1, 2 to 5 p.m. - Auspices "of
Ann Arbor ArtAssociation
Art and Industry, ground 'floor
Architectural Building, courtesy Col-
lege of Archteturean Design.
Exhibition: The original painting
by Dean Cornwell entitled " ' ..
mont and St. Martin," owned by JOhn
yetand other of Philadlphia,
isbig ,exhibited in the second floor
corridor of the University Hospial
untl March 2.
Lectures
University Lecture: Dr. Alfred Tar-
Ski Wi ll lecture Saturday, friarch 2,
at 11:00 a.m. in 3011 A.H., on the ub-
ject, "Axi Elerhentary FIxbd-P&Int
Theorem and Some of Its Applica-
tions."
UnIvergity Lecture: Dr. M. '. i-
mand, Ctrator of Near Easten Art
at the Metropolitan Museum of Art,
Ne'w' York, will lecture on "Excava-
tions at Nishapur in Est Pei i "
(illustrated) utnder the auspices of
the Irstitute of Fine Arts at 4:15
n., on Thursday, March 7, in ie
lackhamn Amphitheatre. The pUblic
is cordially invited.
Sence Demonstration Lecture: Dr.
Phillips Thomas, Research Engineer
of the Westinghouse Electric and
Manufacturing Company, will give a
lecture and demonstration of sienti-
fic developments in Rackham Audi-
torium tonight at 8 p.m.
Dr. Walter M. Horton, of the Ober-
lin Graduate School of Theology,"will
give the third lecture In the s ries on
"The Existence and Nature of Re-
ligion" at the Rackham Lecture Hall,
8:00 p~i.Saturday.
Sigma Xi Lecture: Professor J. W.
Beams, Department of Physics, Uni-
versity of Virginia, will give an ad-
dress on fe subject "High Speed
Centr fugin " at the Rakham Am-
pitltheatre on MonClay, March4, at
8:00 pm. The meeting will be open
to those who are interested.
TQd&a's $vens
J9P Chorus will meet today at 4:00
p.m. at the League.
Conservative -services will be held
at the Hillel Foundation tonight at
7:30 p.m. Prof. Richard Ettinghous-
en will lead the Fireside Discussionon
'Jews in IslmcCutie"adwl
illustratehis talk with colored slids.
A social hour will follow.
The Hillel Foundation will sponsor
a Membership Mixer at Lane flall on
Friday, March 1, from 3:00 to 5:30 in
the aftenoon. Admission is limited
to members, who are asled to present
their Affiliated Membership cards.
Westminster Student Guild of the
Presbyterian Church will have Bible
Class tonight from 7:15-8:00. Dr.
Lemon will talk on "Jeremiah."
The YouINg People's Bible 'Class' of
t _Co atial hurh will met
tonight at 7:3 0 in ilgrim 1bal.Every-
ohe'is cordially invited.
Stalker Hall: Bible Class tonight 'at
7:30 with Dr. Brashares. Sleigh riel
or liay ride (depending on weather)
leaving Stalker Hall at 9:00. Phone
reservations to 681. Small chaige.
All Methodist students and their
friends invited.
Coming Events
German Table for Faculty Mem-
bers: The regular luncheon *nietiig
will be held Monday at 12:10 p.m.

in the Founders' Room of the Michi-
gan Union. All faculty members 41-
terested in speaking German are
cordially invited. There will be a brief
informal talk by Dr. W. F. Striedieck
on, "Was man beim Hausbau lernt."
Biological Chemistry Seminar an-
nounced for Monday, March 4, will
be omitted in order to permit stu-
dents and staff to attend the Sigma
Xi lecture by Professor Beams, "U1-
tracentrifugation." The subject as-
signed for March 4 will be discussed
March 26.
Suomi Club: Meeting Saturday,
8:00 p.m., at the International Cen-
ter. All students of Finnish descent
and their friends are invited.
Eta Kappa Nu meeting of officers
and members on Sunday, March 3,
at 7:00 p.m. Dinner.
Graduate Students and other stu-
dents interested are invited to listen
to a radio broadcast of Verdi's Opera
Aida, Saturday, March 2, in the Meh's
Lounge of the Rackham Building at
2:00 p.m.
Eastern Inspection Trip-Eta Kap-
na Nu: To aid interested students in

uI

Mathematics 350 (b)

(Short

Course), Functions Defined by Second
Order Differential Equations, by pro-
fessor Laporte. Preliminary meeting
to arrange hours, Monday, March 4,
at 3:00 p.m., in 3011 A.H. This course
will meet three hours a week for five
weeks.
Sociology 51: Make-up Final Ex-
amination will be given Saturday,
JMarch 2 t 2:00 n.m Room D .Hven

I