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January 10, 1950 - Image 4

Resource type:
Michigan Daily, 1950-01-10

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- - - - --

Unions' Tragic Fallacy

THEY'RE AT it again!
The so-called "economists" whom the
American Federation of Labor hires to
back up its wage demands are up to
their old tricks. With the help of some
economic double-talk, they're busily try-
ing to get a ten-cent-an-hour pay hike
for their clients.
The latest AFL antics are revealed in a
policy bulletin issued by the union.
In the bulletin, the AFL announces that
it will demand another round of "substan-
tial" wage increases in 1950. It hints that,
it will be unwilling to settle for anything
less than an average boost of 10 cents an
Of course, continues the AFL, it's not
for a minute suggesting a price increase.
Far from it!
Management can afford the raise by
cutting production costs and digging into
its profits, the bulletin declares.
To which I must reply: Just whom are
you trying to kid?
After three rounds of postwar wage in-
creases, every employer who has managed
to stay in business is certain to have
searched pretty thoroughly for ways in
which to cut production costs.
If cuts were possible they were made
long ago, back when Messrs. Lewis, Green,
Reuther & Co. were just beginning to lick
their chops after first tasting of the for-
bidden fruit.
In a completely incongruous attempt at
sound economic theory, the AFL bulletin,
after calling for the cut in production costs,
also asks for "continued spending by busi-
ness to improve equipment, which would
be an aid to high employment and in-
creased productivity."
I agree: improved equipment will cer-
tainly increase employment and productivi-
Editorials published in The Michigan Daily
are written by members of The Daily staff
and represent the views of the writers only.

ty. But you don't get continued spend-
ing for equipment by "cutting production
This illogical combination of demands
is only part of the tragic fallacy inherent
in labor unions' general economic policy,
as voiced in the AFL bulletin.
The unions seem to believe that a healthy
economy can be achieved merely by raising
wages and lowering prices.
This points to complete ignorance of a
basic economic truth: 'that goods, not
money, are the only real wealth. Without
raising production, labor unions cannot help
the country's economy.
In fact, by continually forcing employers
to pay higher and higher wages for the
same amount of production, unions are
seriously threatening the existing level of
Because cutting production costs means
a cut in spending for new equipment-
equipment which would lead to more pro-
duction, and consequently to more jobs. If
present equipment is kept after it deterio-
rates, production will fall.
Slashing profits in any business discour-
ages investors from putting their savings
into that business. This leaves manage-
ment without the capital it needs for im-
provements in its plant and product.
In this country today, there is already
a dangerous shortage of risk capital. In-
vestors don't want to take a chance on a
new industry or on trying to improve an
established one.
Who can blame them?
It's silly for investors to risk losing their
money, since even when they do win the
gamble, their profits are mighty slim pick-
ings indeed.
Yet, without the progress made possi-
ble by risk capital, our economy must
stagnate and decline. Let labor cease
its demands for increased wages, and
work instead to increase production.
More work, and not more wages, is the
only answer to economic insecurity.
Further wage demands at this time could
well lead to disaster-for labor, for manage-
ment and for the nation.
-James Gregory.

City Editor's
THE ONCE-POTENT myth that The Daily
is a "radical" newspaper, run by under-
cover Communists, was shattered last week
by an editorial which was a little on the
"conservative" side.
This particular editorial should dispel
once and for all the erroneous idea that
there is a Daily editorial policy or that the
words written on this page represent any-
thing more than the opinion of the indi-
vidual writer.

"Now As We Were Saying.-
Gam - . .
4 4
1 ~
The Daily welcomes communications fro its readers on ma tes of
general interest, and will publish all letters which are signed by the writer
libelous letters, and letters which for any reason are not in good taste will
be condensed, edited, or withheld from publication at the discretion of the





Washington Merry-Go-Round

HERE HAS BEEN much comment about
the details of the editorial on this page.
In fact, Jim Gregory is probably one of oui
best known staffers on campus today.
But I have not seen any rebuttal to his
article which hits the point.
There has been much talk that "times
have changed," all of which is very true-
but irrelevant.
- What is important, and what that edi-
torial and a large group of so-called
thinkers have omitted from their calcula-
tions is the desire for "security" IS a
potent factor in America today. Whether
it is wrong or right, you cannot deny that
it is there.
It is easy to trace the origin of this secur-
ity-consciousness. It developed as the appeal
of the old Horatio Alger legend died in th'I
depression of the 1930's, when the long lines
of unemployed workers found themselves
helpless in the grip of the business cycle.
"4 SECURITY," and the search for it, has
not been confined to the American scene
in 1950. It has been part of every drive, in
every phase of history that I have ever read
Why did the Pilgrims come over here in
the first place? And why are Gregory and
his fellow conservatives so worried about the
"Welfare State?"
* * *
THE BOAT that Gregory and his friends
missed is simply this: Security Con-
sciousness is a fact today - and we had
better bend our efforts and try to harmonize
it with the rest of the "American Way of
Life." We cannot ignore it, for if we do we
face the destruction of all those non-eco-
nomic ideals that have proved to be of value
in our society.
When another depression comes along,
and half of our labor force is unemployed,
the whole basis of the democratic process
will be under heavy pressure from those
people for whom security is not an aca-
demic problem to be kicked around on the
pages of a college newspaper, but a ques-
tion of finding the next meal. .
Instead of complaining about this "secur-
ity consciousness," the Gregoryites among
us would do better to listen to this "new
voice" and see what can be done democrati-
cally to answer it.
souri. I thought it was prize mules," Spence
of Kentucky broke in.
The President said that reminded him
of a "terrible thing" that happened at a
Missouri state fair.
"They gave first prize," he said, "to two
Kansas mules."
(Copyright, 1950, by the Bell Syndicate, Inc.)


WASHINGTON - Herbert Hoover's state-
ment that the American Navy should
be used to protect far-distant Formosa must
have brought a wry smile from his old Se-
cretary of State Henry L. Stimson. For when
Stimsoif served in the Hoover cabinet, he
waged a valiant but losing fight inside that
cabinet to take firm measures against Jap-
anese aggression when the Jap war lords
first landed in Manchuria.
Stimson wanted to cooperate with the
League of Nations and with other coun-
tries in nipping what he quite clearly saw
was the beginning of future war.
But Hoover fussed, fumed, vacillated and
finally said no. At one time Stimison wanted
to send the American fleet not even as far
as Formosa, or to Chinese waters, but simply
on a cruise in the mid-Pacific as a gesture
of American strength. Again Hoover said no.
Hoover would not even permit his Secre-
tary of State to keep American Consul-
General Prentiss Gilbert as an observer to
the League of Nations in Geneva. Stimson
had instructed Gilbert to sit in on the
League conferences dealing with Manchur-
ian aggression, but Hoover, worried over
isolationists in the Republican National
Committee, finally yanked Gilbert out.
IT HASN'T garnered many headlines, but
one of the most important probes on
Capitol Hill has been the monopoly investi-
gation conducted by Congressman "Manny"
Celler, chairman of the House Judiciary
Handicapped for lack of funds, and des-
pite terrific pressurefrom certain lobby-
ists, Celler has shown, among other things,
how the big insurance companies now do-
minate the money market, have largely
taken the place of Wall Street in loaning
money to business.
FDR set up the Securities and Exchange
Commission to protect the public regarding
stock and bond issues. But today, many big
business firms don't have to worry about
SEC registration. They get their money from
the insurance companies.
As a result of his probe, Congressman
Celler will propose legislation at this ses-
sion putting teeth in the anti-trust act.
"Today,' 'says Celler, "General Electric is
involved in 16 dfiferent anti-trust suits
Why? Because the penalties don't mean
much. No jail sentences are ever imposed.
.hat's why the anti-trust act is a joke. But
at this Congress we plan to put jail sen-
tences into the act."
* * *
HREE RECENT White House visitors
round Harry Truman, the President,
concerned about the nation's housing short-
age; and Harry Truman, the father, wor-

making a last-minute study before extend-
ing rent control.
"I am convinced in my own mind," he
stressed, "that rent control - is absolutely
* * *
AS SPARKMAN congratulated him on his
daughter's singing, the President chang-
ed to the role of father.
"Margaret is working very hard. She is
taking two lessons a day," Truman re-
plied. He added that some critics had been.
harsh on her, and his tone of voice indi-
cated that this hurt him worse than any
political attack on himself.
"But the people have been nice to her,"
he added.
As the three Congressional visitors were
about to leave, Sparkman noted an ear of
corn imbedded in a solid plastic prism on
the President's desk.
"Is that an ear of Iowa corn?" the Sen-
ator from Alabama inquired.
"I suspect it came from Iowa-or Mis-
souri," replied the President.
"I didn't think prize corn come from Mis-

'New Voice ...'
To the Editor:
OF ALL the editorials that hav
. appeared in The Michiga
Daily throughout the last thirt
years, the one published on Janu
ary 5th entitled "New Voice in th
Land", by James Gregory, hold
top ranking in my opinion.
It is timely-it is true.
People have been told so man:
times that the Government owe
them a living that they have com
to believe it. They have been pro
mised absolute security-securit:
from cold, hunger, fear-every
thing under the sun. They do no
seem to realizeethat it is utterly
impossible to be dependent and
at the same time, independent. T
the extent that they are given se
curity and thereby become depen
dent upon their government, the
nust of necessity lose their liberty
be subject to the whims of tha
government, or lose their dole. A
slave has one hundred percent se-
curity but no freedom. Our fore-
fathers attained security only
through their own individual ef-
fort-but they did have freedo-
and independence. Will we, as a
nation, learn that fundamenta
fact before it is too late? We must
decide soon.
I hope we will have similar edi-
torials often. Keep it up, Gregory
More power to you.
-C. O. Wisler
Professor of Hydraulic
* * *
To the Editor:
[IM GREGORY is to be com-
mended for a very fine prose
style. In his easy-flowing, breezy,
almost flippant editorial called
"New Voice in the Land" he has
very aptly caricatured for us not
only the views but something of
the egocentric sophistication of
that powerful -American minority
known as the "extreme right."
I would like to call your atten-
tion to Gregory's deep insight into
the attitudes of this group as
shown by his brilliantly structur-
ed innuendos by means of which
Gregory's voice of the extreme
right seeks to condemn and dis-
miss as an evil things like price
supports for farmers, rent con-
trol, company pension plans, and
compulsory health insurance. Note
the "professional-like" technique.
Like the real McCormick, Jim nev-
er descends to a discussion of the
issues themselves. Rather he sim-
ply pins a derogatory label on each
issue and screams forth an emo-
tional objection hoping that it
will convince or confuse the uncri-
tical reader.
To dispel any assumption we
might make that he was portray-
ing anything but an extremist
view, Mr. Gregory conveniently
began his tirade with a condem-
nation of farm price supports
which is sufficient to qualify him
as a reactionary even in the in-
ner circles of the U.S. Chamber of
Commerce. (See Nation's Business,
January,1950, p.8)
Most of those who hold seriously
to the philosophy of the extreme
right which Gregory has so aptly
portrayed are, I believe, in the up-
per income brackets and are peo-
ple with considerably more than

might have just learned he was
soon to die of some malignant di-
I accosted the man with the
hope that I might console him.
"You are too late," he said. "By
my impetuous desire for the well-
being of the flesh I forsook the
spirit. I went to the Health Ser-
vice with stones in my kidneys
and left with a millstone on my
soul." He rushed on.
I stood there confused and
Not until I read Mr. Gregory's
editorial did I understand the
man's affliction. Instead of hon-
estly earned dollars he had traded
his self-respect for medical care
and security. By its blind benevo-
lence the University has robbed
this man and twenty thousand
more of man's most preciousepos-
So that those of us not too far
sunk in the mire of self-degrada-
tion may still retain some of the
divine fire perhaps Mr. Gregory
would be so good as to tell us
where, he doctors. We should like
to go there too.
-Jack Barense
* * *
Merc-Killin mg. . .

(Continued from Page 2)
Council Rm., Rackham Bldg., 1:30
p.m. Chairman, G. R. LaRue.
Doctoral Examination for Amy
Louise Downey, French; thesis:
"The Life and Works of J. H. Ros-
ny Aine, 1856-1940," Wed., Jan.
11, E. Council Rm., Rackham
Bldg., '7:30 p.m. Chairman, R. J.
Preliminary examinations i n
Chemistry for doctoral applicants
will be held as follows:
Analytical ... February 6
Organic .....February 7
Physical .... February 8
Students planning to do direct-
ed teaching for the secondary
school certificate during the spring
term in the Ann Arbor high
schools or in one of the other
cooperating schools may secure
assignments in Rhm.2442, Univer-
sity Elementary School on Thurs.,
Jan. 12, at 9 a.m. If this hour is
not free, the student may ar-
range for a special conference in
which he can get his assignment.
Students planning to do direct-
ed teaching for the secondary
school certificate during the spring
term in the University High School
are requested to secure assign-
ments in Rm. 2442, University
Elementary School according to
the following schedule:
A. Thursday, Jan. 12-English
1:30-2:30; All Foreign Languages
B. Fri., Jan. 13-Social Studies
9:30-10:30; Science and Mathe-
matics 10:30-11:30; all others,
and any having conflicts at sched-
uled hours 11:30-12 or by appoint-
A is suggested that all students
who have not yet made applica-
tion for the teacher's certificate in
the School of Education office do
so before reporting for their as-
Chemistry 234: Those wishing to
elect this course for the spring se-
mester should leave their names
with Dr. Willard, Rm. 2020, Chem-
istry, or Mr. Girardot, Rm. 4532,
as soon as possible. Enrollment is
limited. This course will be offer-
ed in the Summer Session, 1950.
The University Extension Ser-
vice announces:
Practical Public Speaking. Plan-
ned to meet the need of the stu-
dent who desires a course devoted
exclusively to training in public
speaking rather than a basic
course in the whole field of speech.
Study, analysis, practice, and cri-
ticism designed to promote the ac-
quisition of proficiency in extem-
poraneous speaking. Two sections,
each limited to 25 persons. Non-
credit course, sixteen weeks. $16.
Enrollment may be made in ad-
vance in the office of the Exten-
sion Service, 4524 Admin. Bldg., or1
at the opening session. Sessions
will meet at 7:30 p.m. on Thurs-
days, beginning Jan. 12, in Rooms
4203' and 4003 Angell Hall. The
course will be conducted by Prof.
G. E. Densmore and JohnyJ. Dre-
Faculty Concert: Marilyn Ma-
son, Instructor in Organ in the
School of Music, will be heard in
a program in Hill Auditorium, atl
4:15 p.m., Wed., Jan. 11. She will1
be assisted by the University
String Orchestra conducted by
Emil Raab. Program: Handel's1
Concerto in F Major, followed by1
Mozart's Three Sonatas for Organ1
and Strings, Toccata and Fugue
in D minor by Bach; Pastorale by

Roger-Ducasse, Dieu Parmi Nous
by Olivier Messiaen; Slow Piece
for String Orchestra by Ross Lee
Finney, Professor of Composition
at the University, and Prelude and
Allegro for Organ and Strings by
Piston. The public is invited.

debate on college question at 7:30
p.m., Rm. 4203 A.H. All debaters
who wish to take part in intercol-
legiate debate are expected to atr
Zetalethian: Meeting 7:30 p.m.
Room will be posted on the Phar-
macy bulletin board.
I.Z.F.A. Meeting, 8 p.m. in the
League. Discussion on The JerusaJ
lem Problem. Songs and dances.
Everybody welcome.
The Mathematics Club will meet
at 8 p.m. in the W. Conference
Room, Rackham Bldg. Professor
Erich H. Rothe will speak on
"Function Space Methods in Anal-
Coming Events
Canterbury Club: Wed., 7:15
a.m.; Holy Communion followed,
by Student Breakfast.
Ice Skating Club: Ensian pic-
tures to be taken during club ses-
sion tomorrow from 1to 3 p.m.
A.I.E.E.-I.R.E. field trip to De-
troit Edison Co. Trenton Channel
Plant on Wed., Jan. 11, from 1 to
5:30 p.m. Sign up onEE bulletin
board, 2nd floor, EE Bldg.


Romance Journal Club. Profes-
sor Julio del Toro, Editor of the
Modern Language Journal will
Speak on The Work of the Editor
of a Modern Language Publica-
tion. Wed., Jan. 11, 4:10 pm., E.
Conference Room, Rackham Bldg.#t
Guests cordially invited.
The Women of the University
Faculty will meet for tea from 4
to 6 p.m. on Wed., Jan. 11. Tea will
be served in the fourth floor club-
room of the Women's League.
Michigan Arts Chorale. There
will be a regular rehearsal Wed.,
Jan. 11, 7 p.m., Room B, Haven

ULLR Ski Club: Meeting Wed.
at 7:30 p.m., Union, to plan week-
end ski trip for next weekend and
the between-term trip to Boyne,
Collingwood, Laurentians, or As-.
pen. Movies will be shown.
Anthropology Club. Final meet-
ing, Wed., Jan: 11, 7:30 p.m., in
Room 3024, Museums Bldg. En-
trance by the rear door. Prof.
Charles L. Stevenson will address
the club on "Free Will and Deter-
I.A.S. Meeting. Wed., Jan. 11,
7:30 p.m., Rm. 1084, E. Engineer-
ing Bldg. Panel discussion on Jet








' U'

At The Michigar ,.,
Power, Orson Welles, and Wanda Hendrix.
I COULD HEAR them shuffling around in
back of me; otherwise I wouldn't have
known for sure whether "Joe, keep your
hands off'n me." came from a besieged
co-ed or Wanda Hendrix on the screen.
M'fiss Hendrix, who looked like a lost Ameri-
can hostler; Mr. Power, who was, alas, dou-
ble-chinned and paunchy; and Mr. Welles,
who sounded puerile armed as he was with
a pithy array of Machiavellisms from the
Farmer's Almanac, are the three stars of
this adaptation of Long-on-story-short-on-
characterization" Shellabarger's novel The
Princes of Foxes. There's plenty of plot-
even a Learish eye-plucking scene-but I
won't bother you with the story since the
book has been required reading for so many
political science, history, economics, and
English students.
There's plenty of well-filmed Italy in her
magnificence and beauty-though I'd ad-

AtThe State,..
HOLIDAY AFFAIR, with Robert Mitel
Janet Leigh, and Wendell Corey..
BRINGING a refreshingly believable
mantic drama to film fare curr
filled with incredible love stories, "Hc
Affair" concerns a young widow, j
Leigh, who feels obliged to remarry, but
insists on remaining true to her first
Needless to say, this is a difficult t
As the chief contendersvfor her ha
Robert Mitchum does very well as
worthy, but happy-go-lucky boat built
while Wendell Corey portrays the st
and stable lawyer.Both do pretty we]
their parts, and both realize and try
avoid Miss Leigh's penchant for marr:
while remaining devoted to the dead h
The above factor, that both men are
devoted to the lady beyond hope of rede
tion, and the fact that both have appea
personalities, is a welcome innovation in
movie, which might otherwse have1
badly stereotyped.
Further complication to the situati(
supplied by Miss Leigh's young son,

To the Editor:
IF THE time has come for the
establishment of legal policy in
oegard to what is called "mercy
killing," then, I believe, it is also
time for those who have opinions'
one way or the other to stand up'
to be counted.
I read with interest your report
on the opinions of local church-
men in the case of Dr. Hermann
N. Sander, of New Hampshire. The
doctor in question, I feel certain,
l gave great deliberation to what he
was going to do and acted upon
his sound judgement. Surely most
people in this country, realizing
that, stand solidly behind him. But
certain others do not, and it is to
them that I address this plea for
reason. The criticism that mercy
killing is "unjustified human in-
terference in a realm which should
be preserved for divine Providence"
is no more valid than the same
criticism would be against the acts
of medical men in forestalling
Providence-and one hears few
condemnations of doctors for sav-
ing life. When nothing but agony
stands between dying and death,
a doctor shows only compassion
for the sufferer when he speeds
the end.
The real problem is our infatua-
tion with the idea of the sanctity
of human life. Where have we
come to, when we spend millions
to preserve our imbeciles and our
idiots, when we struggle valiantly
to save hopeless monstrosities at
birth? We send medicines and
foods to the spawning masses of
the world'shmost wretched people
to save their babies and prolong
the lives of their aged-with the
result that still more people may
suffer; and for a longer time. And
when a man in New Hampshire
acts to put an end to misery, we
denounce him as a murderer. We
appear to have lost our reason
I do not deny the value of hu-
man life, but it seems that it
should be an aim of our culture to
make that life less of a burden to

,United World Federalists: Wed.,
Jan. 11, 7:30 p.m., Michigan Un-
ion. Election of new officers. Re-
port of year's activities. Members
are urged to attend.
Delta Sigma Pi: Business meet-
ing at chapter house Wed., 7:30.

I.A.S. Banquet: Sat., Jan. 14, 7
p.m., Masonic Temple. Mr. Robert
Wood, Chief Design Engineer, Bell
Aircraft, will speak on "Problems
in Design of Modern High Speed
Aircraft." Get tickets from Aero.
Office or at meeting on Jan. 11.
ta a


U. of M. Theatre Guild: Gener-
al meeting, Wed., Jan. 11, 7:30,
Sigma XI: Wed., Jan. 11, 8 p.m.,
Rackham Amphitheatre. Dr. Rus-
sell D. O'Neal, of Aeronautical Re-
search Center, will speak on
"High - speed Digital Computing
Machines." The public is invited.


"Look at your Neighborhood,"
Photographs prepared by the Mu-
seum of Modern Art; through Jan-
uary 28. First floor corridor, Ar-
chitecture Bldg.
Events Today
El Caballero Andante, the jour-
nal of la Sociedad Hispanica: Jan-
uary issue may be obtained in
Rom. Lang. Bldg. today.
The Research and Journal Dis-
cussion Group of the Electrical
Engineering Department will meet
at 4 p.m. in Room 3072 East En-
gineering. Mr. Henry Gomberg
will discuss "High Resolution De-
tectors for Radio-Active Particles."

Fifty-Ninth Year
Edited and managed by students of
the University of Michigan under the
authority of the Board in Control of
Student Publications.
Editorial Staff
Leon .Taroff......... Managing Editor
Al Biumrosen...............City Editor
Philip Dawson.......Editorial Director
Mary Stein...........Associate Editor
Jo Misner ............Associate Editor
George Walker.......Associate Editor
Don McNeil.....Associate Editor
Alex Lmanian......Photography Editor
Pres Holmes........Sports Co-Editor
Merle Levin.........Sports Co-Editor
Roeer Goelz~- ....Associate Snorts Editor


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