PAGE FOUR TflE MICHIGAN DAILY SATURDAY, NOVEMBER 2, 1940 THE MICHIGAN DAILY Washington Merry-CGo-Roun 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. Member of the Associated Press The Associated Press is exclusively entitled to the use for republication of all news dispatches credited to it or not otherwise credited in this newspaper. All rights of republication of all other matters herein also reserved. Entered at the Post Office at Ann Arbor, Michigan, as second class mal matter. Subcriptions during the regular school year by carrier $4.00: by mail, $4.50. REPRESENTED FOR NATIONAL ADVERTISING BY National Advertising Service, Inc. College Publishers Representative 420 MADISON AVE. NEW YORK. N.Y. CHICAGO * BOSTON "''LOS ANGELES * SAN FRANCISCO Member, Associated Collegiate Press, 1939-40 Editorial Staff Hervie Haufler. AlvinSarasohn Paul M. Chandler Karl Kessler Milton Orshefsky Howard A. Goldman Laurence Mascott Donald Wirtchafter Esther Osser Helen Corman * * . .Managing Editor S . . . Editorial Director . . . . . City Editor . . . . Associate Editor . . . . Associate Editor . . . Associate Editor . . . . Associate Editor . . . Sports Editor . . . . Women's Editor . . . . Exchange Editor 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 1937. 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 the strike. 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 crushing blow. 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. Not Traditional 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- .. aion- Might not a preferable solution lie in a particular company's forbidding of specified practices (e. g. sabotage) in the collective bargaining agree- ments? 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 ;judicial criteria. Then too, in particular industries, government competition or public ownership or government subsidies may more effectively produce the desired results. 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 is provided." 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- Trade Restraint 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 eonomic life.. 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- man Act. Business Staff Business Manager. Assistant Business Manager . Women's Business Manager Women's Advertising Manager ". e~ mw The City Editor's ~catcA Irving Guttman Robert Gilmour Helen Bohnsack Jane Krause 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 only. The IFC, 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 clannish. 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- terest. 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 entire group. 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, I 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. *: * * He dull 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 of 1941. * * * Our agents say the Triangle initiation yester- day hit some kind of a peak in post-Inquisition brutality. DAILY OFFICIAL BULLETIN THEELYOUCHURLISH By TOUCHSTONE 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 to follow). "My heart aches, and a drowsy numbness pains My sense, as though of hemlock I had drunk," 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 our second. 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- nitted. Exhibitions 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.m. 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 public. 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 November 11, Events Today 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 o'clock. 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. Comng Events 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- dancing. Refreshments. Seminar in Religious Music meets at 4:15 p.m. Monday, Lane Hall, with discussion and illustrative mus- ic recordings. 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 are invited. 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. Bethlehem Evangelical-Reformed 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. Churches 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 Hour. Ed Corathers will lead a worship and discussion program on the topic, "The Two-Talent Man." Social hour and refreshments will follow the pro- gram. 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) RADIO SPOTLIGHT WJR WWJ CKLW WXYZ 750 KC - CBS 920 KC - NBC Red 1030 KC - Mutual 1240 KC- NBC Blue Saturday Evening 6:00 Stevenson News Sport Review Sons of the Saddle Day In Review 6:15 Mayor Jeffries M. D. vanwagoner Sports News Sandiotters 6:30 Inside of Sports Sports Parade Jim Parsons Record Review 6:45 Musical S. L. A. Marshall Red Grange 7:00 Republican Com. Pastor's Study News-val Clare Town Talk 7:15 Republican Com. Passing Parade The Charioteers 7:30 News To Life Yvette, Songs Evening Serenade The Green Hornet 7:45 News to Life Political QuizI. 8:00 Marriage Club Knickerbocker Play Concert Orchestra Jenkins' Orch. 8:15 Marriage Club " Football Roundup Man & the World 8:30 w. King Orch. Truth, C'nsequence News Ace Hollyw'd Tomorrow 8:45 King Orch; News Sevillana 9:00 Pres. Roosevelt Nat'l Barn Dance Hope Tabernacle Gabriel Heatter 9:15 Pres. Roosevelt .' Clarence McL* 9:30 Pres. Roosevelt " Don Turner Orch. John B. keitedv,