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December 20, 1946 - Image 2

Resource type:
The Michigan Daily, 1946-12-20

Disclaimer: Computer generated plain text may have errors. Read more about this.

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Profits in 1947?

THE BOMBARDMENT of press releases
by labor unions for a general wage in-
crease aimed at influencing public opinion
has begun.
In the past this has usually been the
harbinger of a wave of strikes which often
threatens to tear down the entire national
econZomic structure. And there is 'no rea-
son to believe the case will be any different
this time.
However, little attention is usually paid to
the counter statements issued by manage-
ment in their defense. One of the most
significant of these is a statement issued
last week by George Romney, general man-
ager of the Automobile Manufactures As-
sociation, in answer to the Nathan Wage
Report issued by the CIO.
Romney, in voicing some economic truths,
contends that experience during the past
year has shown that further increases in
wages will result in higher costs and higher
prices which would inevitably mean fewer
customers and unemployment.
T$ back this up, Romney states, "Despite
the optimistic profits forecasts of a year ago,
including the Office of War Mobilization
and Reconversion Report made by the au-
thor of the Nathan report, who was at that
time operating within the Government, and
Editorials published in The Michigan Daily
are written by members of The Daily staff
and represent the views of the writers only.

the Wallace report which was eventually
repudiated, the companies manufacturing
automobiles, as a group, suffered an oper-
ating loss of $135,000,000 for the first nine
months of 1946 and a net loss, after tax
refunds, of $5,500,000. Some companies
suffered greater proportionate losses than
others. Next year there will be no tax
refunds to offset operating losses."
Thus, Romney feels, such national fore-
casting as that done by the CIO completely
disregards the fact that, in our profit and
loss economy, even in the most prosperous
times, many firms and even whole indus-
tries are losing money.
Romney concludes that profits made by
some industries and firms should play no
part in determining the wages to be paid
by specific firms in the same or other in-
dustries that are operating at a loss, or
at a marginal profit level. He states that
high wages can only by paid where there
are adequate and continuing profits and
there can be no security for workers when
there are no profits.
From this, it can be assumed that the
impending wage conflict hinges on whether
manufacturers can afford a wage increase
without a corresponding price increase based
on an estimate of high profits in 1947. But
there is no adequate proof that these profits
will be made next year, and there are indi-
cations that the UAW is already girding
for a strike in the automobile industry with
the Chrysler workers as the standard bearer.
Certainly even a less disastrous strike than
the General Motors strike would wipe out
the profits which the Nathan report as-
sumes as a fact for 1947.
-Clyde Recht


r1111 11 r1Yi l


Prosperity, It's Here

PRESIDENT TRUMAN received yesterday
a report from the Council of Economic
Advisors, predicting long range prosperity
but warning of a "deep depression" if the
government, labor and management do not
plan to hold the inevitable recession in
This report will be used as basis for a
Truman message to Congress in January.
The latter will be referred to a joint Senate-
House committee, probably headed by Sen-
ator Taft, and dominated of course by a
Republican majority.
The joint committee will provide the
stage for whatever counter-program Taft
& Co. may have to offer the nation. It
will be up to the Republicans to state
the economic policy according to which
they intend to lead us for the next two
years. Under the Employment Act of 1946,
Congress requires that the President must
submit a -specific program at the outset
of each session, and the joint committee
is bound to act on this program within
three weeks of receiving it.
The point of the preliminary report that
came out yesterday seems to be that the
nation will "have time" for a gala, jam-
boree prosperity for the next year or two,
but that unless Congress and the Presi-
dent get together on a few plans, we'll be
in for an economic hangover.
This news was hailed by Detroit Free
Press headlines as confirmation of the abil-
ity of the "free enterprise" system to put
two chickens in every Ford. There are, how-
ever, a few quaint little facts that should
be considered.
FOR ONE THING, with last week's order
rescinding building restrictions, the last
of price and production controls have fin-
ally been scrapped officially. That means

that our half-grown inflation is given its
chance at the bigtime. The U. S. Chamber
of Commerce can talk about "Free" pro-
duction meeting consumer demand until
it's hoarser than usual, but this will not
alter the simple truth that even boomtime
production cannot satisfy the pent-up de-
mands of the lean war years. Worse, with
the controls off, business is sure to over-
expand just as it did in the Twenties, sink-
ing borrowed funds into resources that will
find anticipated markets vanished into the
hole of "deep depression."
A complicating factor that may well make
the new slump worse than the Thirties is
the power of labor. Labor, understandably,
will not settle for set wages with rising pric-
es. As announced recently by the CIO, they
will demand raises, and add to the infla-
tionary pressure by striking to get them.
High-blood-pressured management spokes-
men roar about calling out the army and
"breaking" labor for good. One certainly
hopes it won't come to such a pitched battle;
but if it does, labor's power today will pre-
vent any easy management victory. Such a
fight could set the country back years, with
the far-reaching ill effects of a (nineteenth
century style) war.
With these considerations in mind, one
can't help worrying on reading that Presi-
dent Truman received even the Council's
moderate warning of a possible "dip" in
buying in 1947 with a blunt contradic-
tory statement. One worries, too, about
Mr. Taft and that Republican majority
on the joint committee.
It isn't hard to imagine Congress squan-
dering its year of prosperity with irrespon-
isble abandon, leaving the American people
and its "deep depression" to the best of-
fices of some Dewey or Bricker in 1948.
-Milt Freudenheim

All's Well
SINCE anyone at all is now allowed to
build a house for his own occupancy,
the veteran will from here on out be forced
to compete for shelter with men who have
lumps of black market money put away in
wall safes, with sporty characters who are
swell on making arrangements, and with
every Aunt Tilly who has been left a nest
egg by,some good man and true, and who
feels that now is the time to build herself
more stately mansions. The veteran has
had no basic training for this kind of un-
equal contest. But all is not lost, for Mr.
Truman says, in effect, that as people build
new houses for themselves, they will leave
old ones, and the veterans can perhaps
move into some of the old ones.
The veterans thus become something like
the poor, who customarily move, in ad-
vancing waves, into abandoned and de-
caying neighborhoods. We have long used
housing left-overs to shelter the poor, but
it is a little shocking to see this method
deliberately hailed and proposed as one
answer to the veterans' needs. It makes
about as much sense as would a clothing
rationing program under which the well-
heeled would be allowed to buy all the
clothes they wanted, on the ground that
this would increase the supply of cast-offs.
Mr. Truman obviously hopes that if
there is enough housing activity, enough
boom and hullabaloo, without ceilings or
controls, the total number of rooms will
edge upward. So it will, in a lopsided and
distorted way; but the important thing'
about the new program is the manner in
which it illustrates the change which
has come over our philosophy of govern-
ment in the last year.
This has been a change from the indi-
vidual approach to a kind of mass, or organ-
ic approach; from the human to the sta-
tistical, from the retail to the wholesale,
so that instead of being concerned with a
particular veteran, Mr. John Smith, and
his need for a house, we now engage in
big, ihuddled, grandiloquent gestures by
which, we hope, enough activity will be
created so that some benefit will slop over
for John Smith.
The bond between the individual and his
government is being broken. It was the
same way with price control. Price con-
trol, as originally set up, kept its eye on
the individual; it made sure that Mrs. Ma-
mie Jones would pay eleven cents, instead of
thirteen, or seventeen, for her box of cereal.
This was superseded by a plan under which
controls were knocked off, in the hope that
production, or over-production, or recession,
or panic, or something, would in the end
deliver a box of cereal to Mrs. Jones; but
during the long intervening months be-
fore all this could happen Mrs. Jones has
simply been forgotten.
This government no longer communi-
cates with individuals; it broadcasts. It
has adopted what might be called a doc-
trine of incidental benefits; but the inci-
dental benefits are hypothetical, while the
immediate concessions to selfish interests
are real. It is all very remindful of the
Hoover days, when unemployment relief
was opposed (that would have meant di-
rect contact between the individual and
his government) and when aid to the
business organism was favored instead,
on the theory that some of this might
dribble down and moisten the bottom.
The wheel has turned, under conservative
pressure, and we are now back again to
a government that daoes not want to
know our names.
It is so much easier to do these things
statistically; statistically, a year or two
from now, if you divide the number of new
rooms by the number of veterans, every
veteran will have a house, even though he
may still be sleeping under a kitchen sink.
A truly liberal government would want to

know his name, and where, in fact, he was
sleeping; but it is so much easier to do
these things by a page of long division than
to have an office at which every man who
has served his country could turn up in
person, and nod to his government across
a desk, and say, 'I am John Smith, and
I need a house."
(Copyright, 1946, N.Y. Post Corp.)
International Law
INTERNATIONAL LAW is not a body of
authoritative codes or statutes; it is the
gradual expression, case by case, of the
moral judgments of the civilized world. As
such, it corresponds precisely to the common
law of Anglo-American tradition.
What has been done at Nurnberg is a
new judicial process but it is not ex post
facto law. It is the enforcement of a moral
judgment which dates back a generation.
It is a growth in the application of law that
any student of our common law should
recognize as natural and proper, for it is
just in 'this manner that the common law
grew up. All case law grow's by new deci-
sions, and where those decisions match the
conscience of the community, they are law
as truly as the law of murder.
-Henry L. Stimson in Foreign Affairs


at 8 ...........
at 9.. .. ...
at 10...........
at 11 ...........
at 1 ...........
at 2 ..........
at 3 ...........
at 4 ...........
at 8 ...........
at 9 ...........
at 10 ............
at 11 ...........
at 1...........
at 2 ............
at 3 ............

.. Thurs., Jan. 30,
.................Tues., Jan. 28,
..Tues., Jan. 21,
..Thurs., Jan. 23,
.Fri., Jan. 31,
.................Thurs., Jan. 30,
..................W ed., Jan. 22,

University of Michigan
January 20-31, 1947
NOTE: For courses having both lectures and quizzes, the time of
exercise is the time of the first lecture period of the week; for
courses having quizzes only, the time of exercise is the time of the
first quiz period. Certain courses will be examined at special per-
iods as noted below the regular schedule. 12 o'clock classes,
5 o'clock classes, and other "irregular" classes may use any
of the periods marked * provided there is no conflict with the reg-
ular printed schedule. To avoid misunderstandings and errors,
each student should receive notification from his instructor of the
time and place of his examination. In' the College of Literature,
Science, and the Arts no date of examination may be changed
without the consent of the Examination Committee.

Time of Exercise

Letters to the Editor...

at 4 .....................'....... Fri.,
Evening classes .......................... Mon.,

Jan. 24,
Jan. 27,

Time of Examination


Fri., Jan.:
Mon., Jan.
Mon., Jan.
Wed., Jan.
Sat., Jan.
. Tues., Jan.
Fri., Jan.
Wed., Jan.

Ec. 51, 52, 53, 54, 101, 153 ..
History 11, Lecture Group 2
Botany 1 )
Zoology 1 ) ..............
Speech 35 )
Chemistry 55 )
English 1, 2 ) ...........
Russian 31 )
French 1, 2, 11, 31, 32,)
61, 62, 91, 92, 93, 153)
Speech 31, 32 )
Psychology 31............ .
Soc. 51, 54 .................
German 1, 2, 31, 32)



*Mon., Jan. 20, 2-5
..................Mon., Jan. 20, 2-5
. ..............Tues., Jan. 21, 2-5
.............. *Wed., Jan. 22, 2-5

. . *Thurs., Jan. 23,


Fri., Jan.
.Fri., Jan.

24, 9-12
24, 2-5
25, 2-5
27, 2-5
29, 2-5

Spanish 1, 2, 31, 32 ) ......................*Sat.,
Chem. 3, 4, 5, Se, 41 ..................... *Mon.,
Pol. Sci. 1, 2, 51 ......................... *W ed.,
School of Business Administration


Courses not covered by this schedule as well as any necessary
changes will be indicated on the School bulletin board.
School of Forestry and Conservation
Courses not covered by this schedule as well as any necessary
changes will be indicated on the School bulletin board.
School of Music: Individual Instruction in Applied Music
Individual examinations by appointment will be given for all
applied music courses (individual instruction) elected for credit
in any unit of the University. For time and place of examinations,
see bulletin board at the School of Music.
School of Public Health
Courses not covered by this schedule as well as any necessary
changes will be indicated on the School bulletin board.
Universitiy of Michigan
College of Engineering
January 20 to January 31, 1947
Note: For courses having both lectures and quizzes, the time ofj
exercise is the time of the first lecture period ,of the week; for
courses having quizzes only, the time of exercise is the time of the
first quiz period.
Drawing andlaboratory work may be continued through the ex-
amination period in amount equal to that normally devoted to such
work during one week.
Certain courses will be examined at special periods as noted be-
low the regular schedule. All cases of conflicts between assigned
examination periods must be reported for adjustment. See bulle-
tin board outside of Room 3223 East Engineering Building between
January 6 and January 11 for instruction. To avoid misunderstand-
ings and errors, .each student should receive notification from his
instructor of the time and place of his appearance in each course
during the period January 20 to January 31.
No date of examination may be changed without the consent
of the Classification Committee.

EDITOR'S NOTE: No letter to the
editor will be printed unless signed
and written in good taste. Letters
over 300 wjords in length will be
shortened or oitted; in special in-
stances, they will be printed, at the
discretion of the editorial director.
Perfect Let-lown
To the Editor
ONE of the most argumentative
colums in The Daily is that
written by our eminent drama
critic, Joan Fiske. The general
impression one gets is that our
writer things she is a highly-ex-
perienced, qualified, down-to-
earth critic. Such comments as
in all my experience as a
critic . . . ", etc., should be put in
bold type for those who read too
fast to catch the phrase. We
would like to know how much ex-
perience on what local high school
paper the author has accumulated.
Pity the theatrical profession if
Miss Fiske was to cover The Great
White Way . . . how many Broad-
way shows would have the cpur-
age to open?
It is common knowledge the
more celebrated critics in New
York and elsewhere criticize from
the viewpoint of Mr. Theatre-
goer, and not from personal dic-
Surely Miss Fiske will recall her
article about Cluny Brown ... that
she admitted her prejudice to-
wards pictures either about Brit-
ain or British produced. Admit-
ting a thing like that is not too
ethical, for the reader may think
the article was written before the
picture was seen.
It is our opinion that an assigi
ment would be criticized for its
tangible value taking into account
such things as its original story,
its peculiar type of humor, and
There are very many people who
do not like the Crosby-Hope-La-
mour combination . . . and critics
don't jump to the conclusion that
everyone will be hysterical.
Lastly, critics don't size up the
movie concern, the actors, the
name of the story, imagine the pic-
ture of the century, build them-
selves up to a perfect let-down,
and then kill the picture.
-Julian H. Kainer
* *h *
To End Discrimination
To the Editor:
TM R. ROSS's letter regarding
Herbert Aptheker's speech the
Root of Negro Oppression con-'
cluded a very important idea in'
his call for unity. It is indeed'
very important that small dif-
ferences be met within, progres-
sive movements in o r d e r to
strengthen the whole. Construc-
tive additions to liberalism must
be drawn and developed from the?
broadest' of sources.
However, I think there is a
great deal of confusion in the
mind of Mr. Ross in regards to
the alleged "complete disagree-'
ment" between Mr. Aptheker and
Margaret Halsey,
In the first place Herbert Ap-I
theker did not condemn Miss
Halsey's book COLOR BLIND.
In fact, within his speech he
did not mention that book. His
speech was based on a critique
of Gunner Myrdal's AN AMER-
theker's pamphlet THE NEGRO.
with Gunner Myrdal that the1
disagreement takes place. Gun-i
ner Myrdal contends that the
roots of Negro oppression arise
from "moral ideas." On the
other hand Herbert Aptheker
concludes that this oppression
arises from the "fact and the
act" which produces these ideas
and in turn the continued exis-
tence of the sources, these ideas
help perpetuate that oppression.

After the speech Aptheker an-
swered a question, giving his
opinion of Color Blind. He did
not condemn it but considered it
the product of a good liberal. This
book can put to flight many pre-
conceived and incorrect ideas as
to the nature and reasons of Ne-
gro oppression. Miss H a lIs e y
points out by her own experiences
in the canteen that ideas relat-
ing to discrimination can andt
were changed within a very short
time, periods of hours and days,
when' conditions were such to
allow such a'change; namely, such
as the time when the fear of pub-
lic opinion was removed and whenr
their ignorance of a Negro as a
person was dispelled by canteen
laws preventing the members to
participate in discriminatory
practices. I
However, Margaret Halsey isĀ°
not a revolutionary. Her opin-
ions on how to destroy the mi-
nority oppression is completely
idealistic and reformist. She3
calls for public education as the3
a n s w e r, and although this

means is very important, she
does not emphasize the need of
laws preventing discrimination
or the need of destroying that
which makes it: the profit-seek-
ers of society.
The fact that Margaret Halsey
contradicts her experience in the
canteen with her conclusions in
her book (experience showed
quick changes in the whole mem-
bership of the canteen while she
says in her book that discrimin-
ation can completely end only
after a long indefinite period if
at all) is its main weak point and
the basis upon which it should be
-Geneva J. Olmsted.
Sore Spot
To the Editor:
THIS letter is NOT to be con-
strued as a defense of discrim-
ination of any kind: but is rather
a suggestion to those who are hon-
estly working to break down such
barriers and replace them with a
true democratic spirit.
They will do well to avoid the
half-hysterical breast-beatings of
the Harriet Beecher Stowe-school
of journalists, which seems to
have been epitomized by Mr. E. E.
Ellis in the column "All or Noth-
ing," in the Tuesday, 17 Decem-
ber, Daily. Tears well into my eyes
as I imagine an aged and infirm
Negro touring Georgia on hands
and knees, relentlessly pursued by
the baying hounds of the "South-
ern Gestapo," which is at least as
concrete an organization as the
Little Men's Chowder and March-
ing Society. I hear a blast of
trumpets as I think of his children
(well supplied with jerked veni-
son), plunging across the Mason-
Dixon line into the dark morass
that is the South to his rescue.
With my pulse throbbing visibly
in my throat, I follow breathlessly
as they crash through icy swamps
-traveling by night, sleeping un-
der cotton bales by day; haunted
by the knowledge that a fate
worse than death awaits them if
Pausing to calm my shattered
nerves, I can easily forsee at least
two very brilliant futures for Mr.
Ellis. He might turn out a boys'
adventure series that would for-
ever replace Tom Swift and the
Rover Boys in the hearts of our
youth; or he can be the greatest
crusader since the days of Carrie
Nation and Billy Sunday.
I full realize that there are num-
erous incidents of violence of this
type, particularly in parts of the
South, and that they must. be
eventually eliminated. But hys-
terical onslaughts such as these at
a deep-rooted tradition only serve
to entrench them more firmly.
This matter of discrimination is
a very sore spot with the average
American, and MUST have care-
ful, intelligent handling, if we are
to make any progress whatsoever.
Please, Mr. Ellis, the time for
revolution is not yet at hand,
-A. C. Johnson
OUR ability to maintain an es-
sentially free-enterprise system
in a world tending toward social-
ism will largely depend on the
ability of labor and management
to construct a solid economic basis
for the equitable division of the
wealth produced by American in-
dustry. The purchasing power of
all our people, with organized la-
bor as a spearhead, must be
pushed gradually upward year
after as we increase our wealth.
-The Nation


No Sugar, No Cranberries

THANKSGIVING Day would not be in the
American tradition without a roast tur-
key, and a roast turkey would feel unclothed
to be brought to the table without cran-
berry sauce. Turkey and cranberry sauce
belong to Christmas, too - or ought to.
But at no time, is turkey, turkey without
cranberry sauce.
When turkey was served to me at home
the other evening, I expected cranberry
sauce to follow as a matter of course. But
I was offered harvard beets instead. To be
sure, the color was the same but there the
resemblance ended abruptly. No one could
possibly mistake a beet, even if he were
bereft of .the sense of taste, for the zestful
and piquant cranberry. I am as well trained
a husband as most, but I did venture to
inquire mildly, "What, no cranberries?" I
happened to know that the other head of
the family - there are two in ours, or at
least I think so - is even more fond of
cranberry sauce than I am. The explana-
tion was, not inability to bify cranberries,
but the scarcity of sugar.
Then I remembered the visit that I had
enjoyed just a few days earlier from the
editor of an upstanding newspaper in a
community where the. housewife custom-
arily makes her own jellies and jams and
bakes her own pastry. The towns in that
rich farming area are too small to support
bakeries, so that pies and cakes must, per-
force, be home-made or the family will

I doubted whether there might be another
piece on this subject until I was served that
turkey without cranberry sauce, as afore-
said, following which I read a report in
the Sunday papers of December 15, telling
how Secretary of Agriculture Anderson had
"dashed the hopes of thousands of sugar-
hungry New York housewives who had ap-
pealed to their Congressmen for aid in ob-
taining 'more sugar for Christmas'."
"Hurrah!" I said to myself, "here is ma-
terial for another column on sugar."
My editor friend had told me that
where he came from, there was plenty
of sugar. People could see it in the
stores. But they had no coupons. I told
him that we had the same trouble in
Washington, although just a short time
ago there had been plenty of coupons but
no sugar. One or the other always seems
to be lacking. But coupons without sugar,
or sugar without coupons will not give
anyone home-made cranberry sauce and-
thus make it possible for me to continue
to live in the style to which I have been
accustomed. Nor will such a situation
give the housewives sugar for pies and
cakes for Christmas.
But Secretary Anderson, who has been
frequently criticised for a seeming dispo-
sition to sacrifice a smaller interest to a
bigger one, was not to be influenced by the
urgent representations of those New York



of Exercise
at 8
at 9
at 10
at 11
at 1
at 2
at 3
at 4

Tine of Examination
Fri., Jan. 24.............
Mon., Jan. 27 ...........
Mon., Jan. 20..........
Wed., Jan. 22..........
Sat., Jan. 25 ............
Tues., Jan. 28 ............
Fri., Jan. 31 ............
Wed., Jan. 29, ..........
Thurs., Jan. 30 ..........
Tues., Jan. 28.........
Tues., Jan. 21 ..........
Thurs., Jan. 23.........
Fri., Jan., 31 ..........
Thurs., Jan. 30.........
Wed., Jan. 22..........
Fri., Jan. 24 ............
Mon., Jan. 27 ............

at 8
at 9


Tuesday C



Evening classes
Ec. 53, 54. 153; Draw 1
M.P. 2, 3, 4
Eng. 11, C.E. 21
Draw. 2; Phys. 46; E.E. 5, Frencl
M.E. 3; Phys. 45
E.M. 1, 2, 6; Span.; German
Chem. 3, 4, 5E; Surv. 1, 4
Draw. 3
Ch-Met. 1

*Mon., Jan. 20.............2-5
Tues., Jan. 21..... .. 2-5
*Wed., Jan. 22 ...........2-5
"Thurs., Jan. 23........... 2-5
*Fri., Jan. 24............2-5
*Sat, Jan. 25 .............2-5
*Mon., Jan. 27........... 2-5
*Wed., Jan. 29.............9-12
Wed., Jan. 29 ........... 2-5

Fifty-Seventh Year
Edited and managed by students of
the University of Michigan under the
authority of the Board in Control of
Student Publications.
Editorial Staff
Robert Goldman .....Managing Editor
Milton Freudenheim .Editorial Director
Clayton Dickey...........City Editor
Mary Brush ...........Associate Editor
Ann Kutz ............Associate Editor
Paul Harsha.........Associate Editor
Clark Baker.............Sports Editor
Des Howarth ..Associate Sports Editor
Jack Martin ...Associate Sports Editor
Joan Wilk...........Women's Editor
Lynne Ford .Associate Women's Editor
Business Staff
Robert E. Potter ....Businese Managei
Evelyn Mills
..........Associate Business Managei
Janet Cork Associate Business Manages
Telephone 23-24.1
Mpehbr of Th eA nsoiated Press

*This may also be used as an irregular period, provided there is no
conflict with the regular printed schedule above.



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