TflE MICHIGAN DAILY
SATURDAY, NOVEMBER 2, 1940
THE MICHIGAN DAILY
ljiIt ITHE QAN of __ N JBnTOI flM--M c
Edited and managed by students of the University of
Michigan under the authority of the Board in Control
of Student Publications.
Published every morning except Monday during the
University year and Summer Session.
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Entered at the Post Office at Ann Arbor, Michigan, as
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Paul M. Chandler
Howard A. Goldman
* * . .Managing Editor
S . . . Editorial Director
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. . . Associate Editor
. . . . Associate Editor
. . . Sports Editor
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AKRON, O.-Out here in the heart of indus-
trial Ohio, organized labor still is rubbing
its eyes and wondering if it is really true that
John L. Lewis is partaking of the same board
and bed with Wendell Willkie.
Especially are people amazed in this city,
where Willkie got his start in the utility business,
and where he is credited by close friends of
ex-Governor Martin Davey with being the be-
hind-the-scenes figure who inspired the calling
out of the National Guard against the CIO in
This was the famous struggle when John L.
Lewis attempted to force the "Little Steel" in-
dustry to accept CIO unions, and when Tom
Girdler, head of Republic Steel, refused to sit
in a mediation meeting with Charles P. Taft
because John L. Lewis was present.
"I've never seen John L. Lewis except at a
distance," Girdler proclaimed, "and I hope to
God I never do."
At present Girdler, as one of the financial
powersrbehind Wilikie's campaign, is among
those responsible for raising the money for
Lewis' $45,000 broadcast.
The Story of Steel
THE STEEL STRIKE was a bitter experience
for Lewis; and to get the full significance
of how greatly he has changed it is necessary to
remember that this effort was one of the great-
est in his career.
For years, labor had been attempting to or-
ganize the steel industry and had only such
bloody monuments as the Homestead strike to
show for its pains. Then came the re-election
of Roosevelt in 1936, which Lewis considered a
sign that the country would back him in the
organization of steel. With the backstage sup-
port of Roosevelt, who was a good friend of
Myron Taylor (later Ambassador to the Vati-
can), the giant U.S. Steel Corporation yielded
to labor and signed an agreement with Lewis.
However, the big independents-Bethlehem, Re-
public, Inland, National and Youngstown Sheet
and Tube-remained obdurate. And in the
spring of 1937, John L. Lewis, with a strike fund
of $500,000 at his disposal, set out to force union
organization on them.
There followed rioting and bloodshed. Sixteen
men were killed in South Chicago. Airplanes
dropped food on plants at Warren arid Niles,
Ohio, for workers unable to pass the picket line.
The Youngstown plants closed, but Girdler's Re-
public Steel plants remained partially open.
Davey And Willkie
THE SITUATION was such that if the Youngs-
town and Republic plants could completely
reopen, despite the picket line, it meant that
the strike was broken.
It was at this point that some of the steel
executives, casting around for a means of in-
fluencing Governor Davey, remembered that
one of his close friends was Wendell Willkie.
The two had become acquainted when Willkie
was practising law in Akron.'
In fact, Willkie, then a Democrat, had helped
Davey run his campaign when the latter was a
member of Congress. Later, A. C. Blinn, pres-
ident of the Ohio Edison Company, of which
Willkie was chairman of the board, contributed
substantially to Davey's campaign for governor,
and it was understood inside the Davey entour-
age that this generosity was inspired at least in
part by Mr. Willkie.
So it was not unnatural for the steel execu-
tives to think of Willkie as the man who was
close to Governor Davey, and might help in
Davey Calls Troops
ON JUNE 22, 1937-the day when Davey final-
ly called out the troops and ordered them
to disperse the picket lines-the Governor was
besieged with telephone calls and telegrams.
But only four outsiders got through to him.
One was Secretary of Labor Perkins. Another
was President Roosevelt. Another was John L.
Lewis. And the fourth was Rawley Reece, Will-
kie's legislative agent, who called Davey inter-
mittently during the day.
After Davey called out the troops, thus per-
mitting the plants previously closed by strikers
to reopen, he received a telegram of congratu-
lations from Wendell Willkie.
This telegram, incidentally, later became the
subject of argument between Mr. Willkie and
the U.S. Government. For Internal Revenue
agents, going through various tax reports, found
that his company, Commonwealth and Southern,
had paid for this message of congratulations to
Davey. Willkie has cited the incident to friends
as an illustration of government red tape.
John L. Lewis lost the strike, and it was a
Arnold 11 C
ThP revi wr0
TPhe Daily is continued frm~etr
day and is onld in a
By HAROLD OSTFRMEIL
Necessary as it is for th ci ns
to catch the main drift of Arnold's
book, he must not fIl' to intuce
qualifications and i(quiremen wh(n
the analysis is aulty.
Criticism of Arnold's Analysis
1. The criterion of restraint of trade
is not merely that indusry draws
away purchasing power from other
industries. If the demand for the
product is "elastic'- that is. if peo-
ple will spend less on the commodi-
ty at a higher price than at a low-
er price), purchasing power ill not
be diverted from but wil, b'ediverted
to other industries.
Restraint of trade is still undesira-
ble, for in so far as price diverges
from the competitive norm of the
equation of price to marginal costs,.
society is paying more than the real
costs of providing these goods; or
in other words, society is receiving as
large a volume of goods as the re-
sources which it sacrificed to pro-
duce them would call for.
2. Causes of the great depression
do not lie solely in monopoly prac-
tices. Arnold argues that price raising
and restriction of output had cumula-
tive effects which brought about the
debacle of 1929.
Inequality of income, failure of
a new industry to take the place of
the maturing automobile industry,
decrease in foriegn investments, fall-
ing off in installment financing, the
cyclical phenomenon of - overinvest-
ment" all played a role in the down-
turn of business activity.
Certainly banking, wage, tariff,
and fiscal policies, especially the lat-
ter, are as necessary to recovery as
the breakdown of restraints of trade.
Arnold emphatically declares that
the Sherman Act will not be applied
against unions if the objective is le-
gitimate - wages, hours, health, safe-
ty, right to collective bargaining.
"Where competitors are restrained,"
labor has no exemption under the
Sherman Act. Classified as "illegiti-
mate labor objectives" are jurisdic-
tional strikes, graft and corruption in
labor unions, sabotaging the introduc-
tion of new equipment. Arnold wants
* ''pre en their labors) exploit:-
on by small groups whio do not hate
the in t crests of labor at heart.
I ln as opposed to tilese labor
ractles as M\Ir. Arnold. However.
criously doubt wwhether the clean-
ing of the House of Labor falls
thin the .isdiction of the Depart-
mnen of JustIe under h11 Sherman
Act but also wlieLr it is sound pub-
lie policy for the government to
do the house cleaning. For the
gue language of the Court's opin-
ions 'restraints of competitors,"
-umreasonable restraints"' may be so
interpreted by a subsequent admin-
istration as to nullify completely la-
bcl hard-earned weapons -strikes,
of tii baraining, and even union-
Might not a preferable solution lie
in a particular company's forbidding
of specified practices (e. g. sabotage)
in the collective bargaining agree-
The student can grant Arnold's
contention that it is easier and far
more practicable to work within the
framework of existing institutions,
i.e. the Sherman Act, than to dis-
card existing mechanisms for a new
h of control devices.
Under Its Jurisdiction?
But the student cannot grant that
the Department of Jusice, that the
courts are preferable to an adminis-
trative commission. Arnold here fully
neglects the history of the Interstate
Commerce Commission in which ex-
p ts in the field of transportation
regulation continually make decisions
in accord with certain legislative and
Then too, in particular industries,
government competition or public
ownership or government subsidies
may more effectively produce the
Very sanguine indeed is Arnold
when he said, "It is not a difficult
task to maintain a free market."
'Whether we can do it depends on
whether an adequate organization
The complications of. his remarks
in this sector are: "Give me funds,
people of the United States, and your
economic maladies will be over."
Unfortunately, the problem is more
complex. In some spheres, a free mar-
ket is not desirable public utili-
ties. exhaustible natural resources.
And it a fully free market is to be
secured. in othlr sectors of the econ-
omy tariff. wage. tax, nd monetary
policies must also be adapted.
Pricing is Difficult
In the fieli of industrial price pol-
cies itself. 1he problem is more diffi-
cult than Arnold concedes. For re-
straints of trade are not always
caused by collusion and combination
among sellers md buyers; fewness of
e'llers, differetit;inof products,
bloc ed entry to the industry, all serve
to bring about monopoly effects. In
view of hese nem more subtle mech-
anisms for restraining trade, new cri-
teria must be devised to make the
Sherman Act a more workable in-
sirument over a \wider sphere of our
The lengthy crit icisms of Arnold
which are embodied in the foregoing
remarks should not be misunderstood.
This discussion has not preceeded
along the traditional lines of book
reviews -- a brief sumnmary of the
author's views followed by a whole-
hearted or weak acceptance or by a
wholesale condemnation of the book,
To understand the necessity for and
the nature of the Sherman Act was
our first major task. Then we at-
tempted to cull out the more fruitful
parts of Arnold's approach and to
start to fill in the gaps in Arnold's
analysis and in his suggestions for
public policy. The modification of
Arnold's argument have taken more
space than a fair evaluation of his
work would warrant. But it is im-
portant that there be thorough dis-
cussion of general policies and of
their application to, eachspecific
indtustry if public policy is to be
carefully thought out and intelligent.
Granted that the economic ends
of society are the full and optimum
use of resurces and reduction of in-
equality of income, then the preserva-
tion of competition is necessary in
most of our economic life. The Sher-
man Act can help. Thruman Arnold
asks for larger appropriations for
the Anti-Trust division of the Depart-
ment of Justice. Let's give his office
those funds at the same time that
we revise and implement the Sher-
Assistant Business Manager .
Women's Business Manager
Women's Advertising Manager ".
NIGHT EDITOR: WILLIAM H. NEWTON
The editorials published in The Michigan
Daily are written by members of The Daily
staff and represent the views of the writers
A Coordinator .. .
F'RATERNITIES, those essentially
collegiate organizations, present a
curious mixture of unity and disorganization,
when considered from individual and group
points of view.
The single fraternity is a distinct organiza-
tion, its members held together by a community
of interest and certain intangible bonds. The
"brothers" hang together, nearly always subor-
dinating the personal want for the good of the
whole. And the single chapter of a fraternity
of nationwide or international scope is even
more closely knit, its members even more
Yet there is a strong lack of unity in the fam-
ily of fraternities. Members of ABC do not
cooperate readily and naturally with the boys
of XYZ. This may be accounted for easily by
the strength of the intrafraternity bonds which
give rise to a certain amount of interfraternity
jealousy. And this is where the Interfraternity
Council becomes important.
Now, this interfraternity competition and jeal-
ousy would be all right if many of the advan-
tages to be gained from fraternity membership
were not contingent upon close cooperation
among fraternities. Naturally enough, one group
of more than 1,200 members can get more done
thqn 40 groups of 30 members, each little group
working without regard for community of it-
What these advantages are is a matter ap-
parent to most sensible members or prospective
members of fraternities-aid in academic or
cultural pursuits, social life, aid in launching
careers or business ventures, general broadening
of the scope of one's friendship. These are but
a few of the things which fraternity men feel
that they gain from membership.
The Council is an Important agency in aiding
its member chapters-the chapters which ac-
tually are the Council itself-in obtaining these
advantages for their members. It serves prin-
cipally as a coordinating agency, a force to
direct the cooperative efforts of all the 41
houses represented at the University,welding
them into a single unit that works as a unit.
One of the biggest jobs confronting the Coun-
cil is the building of good will among the indi-
vidual chapters. This is indeed a big job. Yet
the very nature of the Council is a big step to-
ward its completion. Each fraternity's repre-
sentative meets those of every other house on
an equal footing and with the realization that
they are all working for the same thing in the
final analysis and that the individual house will
gain most by advancing the interests of the
Not only does the Council work exclusively
for the fraternities, but it is also a spur, a guid-
ing force that keeps the campus houses headed
toward more unselfish goals. -
But to return to the outside activities of the
Council-those carried on for the benefit of per-
sons not members of the "Greek" family . .
One of the principal of these is the annual
Christmas party sponsored by the group for
Ann Arbor's underprivileged children. Each
year thousands of kids are given a taste of holi-
day cheer that otherwise might not be available
to them. Then, of course, the Council aids in
.,. AA-..... nn~rr ",.}nllr ~ntr 17rt4,
A FRESHMAN in our
dormitory has a new
angle on the presidential campaign.
wants it to terminate, and quickly, so
speeches no longer will clog his radio dial.
*: * *
Until we took a trip to the dictionary, that
letter in yesterday's Daily which insisted on
using the words "Lydian Basanite," had us
puzzled. It means simply "Touchstone."
Maybe geology is useful.
In Chicago an egg has become a deadly wea-
pon-if it hits a presidential candidate, that is.
The culprit who pegged the hen fruit at W. W.
was arraigned before a police captain named
Duffy. The officer discovered his victim was a
former baseball player. So the judgment: "In
the hands of a baseball player, an egg is a
deadly weapon. Arraign him on that basis."
N CASE you didn't notice, one of the press
services quoted federal authorities today
as saying that 70 per cent of all youths now
20 years old would be drafted, by the fall
* * *
Our agents say the Triangle initiation yester-
day hit some kind of a peak in post-Inquisition
DAILY OFFICIAL BULLETIN
well I will be a Lydian Basanite if the ladies
didn't show up next day a little peeved at me.
All well and good; that is the privilege of the
ladies. And so, here is a guest column on the U.S.
Navy, written by Harry Kelsey, ex-Daily man, ex-
beer-expert, at present one of Uncle Sam's boys,
though in mufti. I trust this will show my heart
is in the right places, and ward off any suspicions
of my being a dissenting element in these oh so
very uncertain times. Mr. Kelsey-, (loud march
from pit orchestra, banjo solo by Brother Jones
"My heart aches, and a drowsy numbness
My sense, as though of hemlock I had
That's the way Mr. Keats put it. You and I
would say "I feel like hell. Let's go down and
have a drink." Keats gets around to the latter
idea in the next verse, but by then we're having
Keats doesn't really belong here, but he had
the right idea about how I felt after talking the
idea of a guest column over with Touchstone.
It wasn't my idea: that's my main defensive
argument. But Touchstone wanted me to write
something about the Navy as I saw it, and I
outlined the possible subject matter. After
lengthy bickering Touchstone told me to pick
my own subject matter, but to write something.
I've decided now what to write about. I'm go-
ing to ignore the battleships, cruisers, destroyers
and aircraft carriers. I'm going to ignore the
aircraft and the auxiliary vessels. I'm not going
to speak of the officers of the line, or the big
guns or the shore leaves. I'm just going to tell
a bit about one man of the thousands in the
Navy, a man named Michael Bux.
Bux is a boatswain's mate, just rounding out
his sixteenth year of service. He had planned
to retire at the end of that year and settle down
to shore life with his wife, a university graduate
holding a master's degree, but in view of the
present emergency believes he'll be with the
ships for another four years.
Bux is a big fellow and powerful and has a
way of accomplishing things. No matter what
the jam, when Bux steps in the matter is cleared
taught many an ensign and lieutenant a thing
or two in a subtle manner, and his instruction
has been gratefully received.
We arrived in New York and were taken
aboard the Arkansas as a bunch of college boys.
Bux was placed over the section I found myself
in and he began immediately to make seamen
out of us. At the same time he impressed upon
us the fact that, supposing we successfully com-
pleted our training, we would be giving him
orders when the fighting began. This, although
quite true, never seemed altogether right to me,
for no matter how technical our training might
be, we will never be able to jump that sixteen
years, his seniority in years of service over us.
I have said Bux was big and powerful. He
was hard, too. Hard, to use the cliche, as nails, -
or should I say, as turrets? I'll never forget the
first time I saw him put out his cigarette on the
bottom of his bare foot. He wasn't showing off.
He didn'tknow anyone was watching. It was
just the easiest method available.
Bux speaks with the tongue of a true sailor
which made me wonder at first how he ever got
along with Mrs. Bux, MA, on that score. I found
out one night when a few of us were lounging
around the gun room talking to him. "So I get
shore leave and go home to the old lady," he
told us, "and the first couple of days she takes
it. Then she starts stamping her foot, sort of
impatient like, every time I open my mouth, so
I say okay, okay, I get the hint. Time to break
out the king's English!"
A ready wit, Bux always has a quip ready when
it is needed, and many times when it isn't. Once
after I had purchased some items in Panama
someone managed to filch them from my locker.
I went to Bux and asked him what I should do
about it. "That's easy," he said, "don't declare
them at the customs."
Out of uniform and back in 'civvies,' abouf
to leave the ship for the last time, I looked up
from the boat that was about to put off for
shore and saw Bux on the quarterdeck, where
he had been waiting for half an hour while we
reserves were taken ashore. There would be
room in the nevt hnot fr him anr1 he woirl
(Continued from Page 2)
- ------ -
made for this concert, open to the
general public. but for obvious rea-
sons, small children will not be ad-
The Annual Exhibit of Photography
by the Ann Arbor Camera Club will be
held in the Mezzanine Galleries of the
Rackham Building from November
4 until November 18. The Exhibit is
open daily from 10:00 a.m. until
10 00 P. L e c tu r e s
A Lecture on the Use of Artificial
Lighting in Photography will be
given in the Amphitheatre of the
Rackham Building by Mr. H. B.
Tuttle of the Eastman Kodak Com-
pany on Friday, November 8, at 7:30
p.m. This lecture is open to the
Leland Stowe Lecture Postponed:
Mr. Stowe is unable to fulfill his
Oratorical Association Lecture Course
engagement scheduled for November
5. He is remaining in Europe to ob-
serve present developments in the
Balkans. He will appear here at a
later date. The next lecture will be
given by Warden Lewis E. Lawes on
Psychology Graduate Students are
invited to attend an informal recep-
tion given by the members of the
staff of the Department of Psychol-
ogy in the Assembly Hall of the
Rackham Building tonight at eight
Freshman Roundtable will be held
at Lane Hall tonight at 7:30. Profes-
sor Kenneth Jones will lead the dis-
cussion in "Religion and Science.'
Saturday Group meets at 12:15 p.m.
today at Lane Hall.
Three Men on a Horse, the first
offering of the year by Play Pro-
duction of the Department of Speech.
continues tonight at Lydia Mendels-
sohn Theatre. All seats reserved. Call
6300 for reservations.
Junior Research Club will meet on
Tuesday, November 5, in the Amphi-
theatie of the Horace H. Rackham
Junior Mathematics Club will meet ing on arrangements for the annual
Tuesday evening, November 5, at 8:00 Fall Dance, as well as other activi-
o'clock, in Room 3201 Angell Hall. ties of the Social Committee, must
Prof. W. L. Ayres will talk on "The be present at tnis meeting.
Four Color Problem." All students-----
interested are welcome.
International Center announces
Professor John Muyskens of the De-
partment of Speech as the speaker
Sunday evening at 7:00. He will
speak on "The Acquisition of a For-
eign Language." This will be of in-
terest to foreign as well as Ameri-
can students. The Supper Hour (for
which there is a small charge) pre-
cedes the lecture. Anyone inter-
ested is welcome.
German Club will meet Tuesday
evening, November 5, at 7:30 in the
Terrace Room of the Michigan Union.
The program will consist of folk-
Seminar in Religious Music meets
at 4:15 p.m. Monday, Lane Hall,
with discussion and illustrative mus-
The organizational committee for
the formation of the married couples'
cooperative house will meet Sunday
evening at eight o'clock in room
302, Michigan Union. All interested
The Monday Evening Drama Sec-
tion of the Faculty Women's Club
will meet at the Michigan Union on
Monday, November 4, at 7:45 p.m.
Social Committee of the Hillel
Foundation will meet on Monday,
Nov. 4, at 4:30 p.m. at the Founda-
tion. All people interested in work-
Lutheran Student Association will
have a regular meeting Sunday eve-
ning in the Zion Lutheran Parish
Hall. The group will meet at 5:30
p.m. for supper and afterwards the
delegates to the Interguild confer-
ence will lead a discussion of the
topics that are brought up at the
conference. All are invited to attend.
Church Guild will meet for supper
at 6:00 p.m. on Sunday. This will
be followed by reports and discussion
of the Inter-Guild Conference.
Disciples Guild (Christian Church):
10:00 a.m. Students' Bible Class, H.
L. Pickerill, leader.
10:45 a.m. Morning worship, Rev.
Fred Cowin, minister.
6:30 p.m. Guild Sunday Eve'ning
Ed Corathers will lead a worship
and discussion program on the topic,
"The Two-Talent Man." Social hour
and refreshments will follow the pro-
The Ann Arbor Society of Friends
(Quakers) will hold a joint meeting
with the Fellowship of Reconciliation
Sunday in Lane Hall. Rev. A. J.
Muste, national secretary of the
F.O.R., will lead a discussion 5:00-
6:00 p.m. Supper t 6:00 and the
Meeting for Worship at 6:45 p.m.
St. Andrew's Episcopal Church:
(Continued on Page 6)
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