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August 13, 1935 - Image 4

Resource type:
Michigan Daily, 1935-08-13

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J {.lrr3DAY, AUGUST 13,19Z



State Farmers
Promise Best
Yield Since '22
Corn Shows Improvement;
Beans And Sugar Beets
Make Steady Gains

11 Million Families In U. S. Hover.
Near To Poverty, Experts Discover


LANSING, Aug. 12.- (P) - The
State co-operative crop reporting ser-
vice says Michigan farm crops prom-
ise the best yield since 1922. The
service predicted the harvests in prac-
tically all of the major crops would
be well above the average and adde
that Michigan "is surpassed by only
ore other nothern state on the basis
of present combined crop yield pros-
The report said corn shows marked
improvement over July 1, while beans
and sugar beets made moderate gains
and potatoes maintained the previous
month's estimate.
There was a less optimistic note in
the report on wheat and fruit condi-
tions. "Winter and spring grains are
generally turning out poorer than was
anticipated a month ago," it said,
"both in yield and quality.
Rust Develops
The damp weather favored the de-
velopment of rust, and harvesting and
threshing have progressed slowly be-
cause of the heavy straw, the lodged
condition of many fields and the ab-
sence of good drying weather."
Fruit crops generally show a slight
improvement over July 1 as far as
indicated gross production is con-
cerned, the service reported.
Weather conditions have been con-
ducive to the development of fun-
gus diseases, it added, and the pro-
portion of grade A stock available
for the market will be correspondingly
The service's preliminary estimate
of the 1935 winter wheat crop is 17.-
512,000 bushels, which compares with
last year's drought shortened harvest
of 17,512,000 bushels and a five-year
average --1928-1932 - of 15,343,000
bushels. ,


WASHINGTON, Aug. 12. -- (M) -
"New dealers' have found that their
social security plans must be elastic
enough to include many more mil-
lions of persons than those at present
on the unemployed rolls.
Some idea of the actual extent of
the need - and a cited reason, in-
cidentally, for all the talk about a
$50,000,000,000 fund for the social se-
curity program - is indicated in sta-
stistics compiled by the President's
Committee on economic security.
These experts found there are 11,
653,000 families in this country hov-
ering between subsistence and poverty
on yearly incomes ranging from
nothing to $1,500. Experience has
shown that most of the persons in
this income bracket will be dependent
in their old age. It is for them the
administration has been planning old
age pensions.
Will Need Support Later
In the bracket immediately above
this group, the security committee
found 9,893,000 families with incomes
ranging between $1,500 and $3,000
yearly. The planners also know that
many ,in this group, provided their
incomes do not increase, will have to
look to others for support in their
old age.
Representative Ellenbogen, Penn-
sylvania Democrat, who has intro-
duced much social legislation in his
two terms in Congress, is authority


4 TOIt0t 5-iltt F11701 F1171 1111 11#1tit 1141 III
$,SO-3,000 MINIMUM COMFORT -9,893,000 FAMiLIES
1$1,1111 #1EitE It MAC-
'$3,000.,000 MODERATE ClRcUMSTANC ES-3,67,000 FAM ILIES

000-/0,000 1,625,000FAMILIES

I ,


471,000 FAMILIES

. n'?

I1 i~t WEALTHY -
5000ondOVEA 160,000 FAMILIES




for the statement that in 1929 - the
standard of prosperity in this coun-
try - nearly 6,000,000 families had
incomes of less than $1,000 a year.
In the same year, 10,500,000 families
had incomes between $1,000 and $2,,
000 a year.
"These, on an average, saved the
magnificent sum of $80 a year," El-
lenbogen said. "Seventy-one per cent

of all the families in the United States
had incomes of less than $2,500 a
year. And that was in the year 1929,
the year of prosperity!"
In striking contrast to the forego-
ing, the presidential economic se-
curity committee found only 160,000
families in the entire country it could
class as "wealthy" - with yearly in-
comes of $25,000 and over.

Expansion For
General Motors
Most Of Amount Will Be
Qpent For Machinery;
Cite Profitable Outlook
NEW YORK, Aug. 11. --0() - A
"more assured outlook for profitable
development" brings a $50,000,000 ex-
pansion program to General Motors
Alfred P. Sloan, Jr., president of
the corporation, who announced the
program yesterday along with the
company's report for the first half
of the year, said most of the money
would be spent for machinery.
"It will be recognized," he said,
"that this program will make a con-
tribution to employment, as affect-
ing the capital goods industries, and
many communities in which General
Motors operates should ultimately
benefit by the increased employment
in prospect."
Domestically, it was explained, the
program involves a broadening of the
company's policy of decentralization
of manufacturing operations.
Capacity of plans in England and
Germany is to be increased. A new
factory has been opened at Muncie,
Ind., and another is being constructed
at Saginaw, Mich.
There also are to be new factories
for the Pontiac and Fisherbody di-
visions at Pontiac, Mich., and mod-
ernization of the Buick and Chevro-
let plants at Flint, Mich., and of the
Durant plant at Lansing, Mich. The
latter plant has been purchased for
the Olds division.
The Murray wood products plant
at Memphis will be refitted for the
Fisher body division.
There will be a new plant for the
Allison engineering division at In-
dianapolis for the manufacture of
airplane motors, and a new plant at
McCook, Ill., for the electro-motive
division to build Diesel-electric loco-
motives - on a continuous assembly
Sloan's report showed a net profit
for the first six months of the year
of $83,729,838, against $69,586,613 for
the corresponding period last year.
AAA Process
Taxes Battle
1,000 Enemies

Beauty Dies In Crash

Flivver Of The Air
Arrives At Capital
WASHINGTON, Aug. 12.- (P)-
The first of the "family air flivvers,"
a tailless airplane designed to sell at
less than $1,000, arrived at Wash-
ington Airport today at the end of a
transcontinental flight.
On hand were Daniel C: Roper,
Secretary of Commerce, and Eugene
L. Vidal, director of air commerce, for
whom the plane was constructed. In
the air, it looked like a large grass-
hopper. It landed, Roper said, "on
a dime."
The plane was developed in Cali-
fornia by an old-time test pilot, Waldo
Deane Waterman. It is said to be able
to land at 40 miles an hour, to stop
in 30 feet and to get 131/ miles to a
gallon of gasolne.



University Survey To Aid State
In Taxing Its Autos Intelligently

Oats, Barley Poorer
Rye, the service predicted, will yield
2,758,000 bushels, the best crop since
1924. Corn will yield 46,860,000 bu-
shels, barring late season losses, which
would be the largest crop since 1925.
The condition of oats and barley
was reported as poorer, with prospects
of a harvest of 43,622,000 bushels of
oats, compared with a five-year av-
erage of 43,098,000 bushels, and 4,-
888,000 bushels of barley, compared
with an average of 6,433,000 bushels.
The potato harvest will be shorter
than last year's, the service predicted.
The outlook is for a yield of 26,800,000
bushels. Last year's was 34,304,000.
ThesAug. 1 indicated production of
the various Michigan fruits, follows,
with the 1934 harvest in parentheses:
apples, commercial crop, 6,000,000 bu-
shels (4,224,000); peaches 1,989,000
bushels (517,000); pears, 673,000 bu-
shels (745,000); grapes, 65,034 tons
(61,145); sour cherries, 24,440 tons
(24,990); sweet cherries, 2,200 tons
May Balance
Federal Budget
By Next Year
'Good Chance' Foreseen
By Buchanan, Chairman
Of Appropriation Body
'WASHINGTON, Aug. 12.-() -
Hope that the budget will be balanced
next year was expressed today by the
one Democratic member of Congress
who has more to do with the budget
than any other legislator.
Already this session, with one other
money bill yet to pass, Congress has
appropriated $8,880,000,000 - twice
as much as the ordinary budget. A
total of $4,800,000,000 of that was
in the big work relief fund.
Looking over the session, Chair-
man Buchanan (Dem. Tex.) of the
House Appropriations Committee,
which starts all appropriations bills
through Congress, remarked:
"I think there's a good chance of
a balanced budget next session."
Asked about reports that $2,000,-
000,000 would be asked next session
for relief, which might throw the
budget out of balance again, Buchan-
an replied:
"Asking for that and getting it are
two different things. Of course, I
think we could scrape up $1,750,000,-
000 or $2,000,000,000 and still have a
balanced budget.
"I figure that the country has re-
covered so much that we won't have
to spend so much next year and that
we can stop lending and begin to
collect some of the loans we've made.
Our income is increasing too, of
course, but I'm not figuring that in
on the budget balancing."
The last bill put through by Con-3
gress, the second deficiency measure,]
appropriated $272,901,000 against]
budget estimates of $399,449,000.
"That was the first step toward
rea onnnrrv and rir hmawnf nnvi

Michigan, the automobile state,
may be the first to put its taxes on
these vehicles on an "intelligent and
equalized" basis, as a result of the
completion here of a three-year study
which reveals for the first time in any
state all of the facts involved in the
complicated problem of highway fi-
nance and the "use and benefit" de-
rived by each type of road user.
The new scheme, calling for a re-
vised method of assessing the weight
and gas taxes, is the work of Prof.
John S. Worley, of the engineering
college, nationally known consultant
in transportationengineering andhfi-
nance.. Professor Worley made the
survey for the University Department
of Engineering Research.
Because, of governmental needs
taxes must be collected in advance
or concurrently with use and this
leaves the weight, or registration, and
gas taxes as the only practical meth-
od of financing, Professor Worley
points out. It is generally admitted,
however, that throughout the country
these taxes have been apportioned
and levied with little or no research
to determine just what proportion
should be payed by different classes
of highway users.
After deciding what non-vehicular
users, such as power lines, should pay
for right of way privileges ,the tax
problem is now to fairly apportion
the balance of the highway needs -
in Michigan it is approximately $38,-
000,000 annually.
This can best be done, Professor
Worley's report shows, by dividing
the vehicular traffic into a number
of classes, based both on weight and
the distance which the average car
or truck of each type travels per year,
as shown by statistics of the U. S.
Bureua of Public Roads. A share of
the $38,000,000 total is then assigned
to each class and further divided
equally among all vehicles in each
Here is how the proposed system
would affect the passenger car. Each
car would be assessed $28.22 cents.
Federal statistics show that an an-
nual mileage of 7,000 is expected from
this type of vehicle. This mileage
would bring in a gas tax of $14.04,
which, taken from the annual assess-
ment, would leave an annual license
or registration fee of $14.18. Every
passenger car owner would pay the
latter sum, but his payments in gas
tax might vary as he travelled more
or less than 7,000 miles. The State,
however, could expect an average net
In making the vehicle classification,
from private car through a scientific
grouping of trucks and motor trains,
recognition would be made of the
fact that lighter vehicles use more
gasoline for each "ton-mile" moved
than do the heavier types. This
is a principle which has not been
Urge To Wander
Still Boone Trait,
Descendant Says
HIBBING, Minn., Aug. 12. -() -
The urge to wander still seems to be
part of the heritage of descendants of
Daniel Boones ,says E. E. Boone of
Hibbing, direct descendant of Ameri-
ca's famous frontiersman.
Both Boone, a painting contractor

taken into account in the automobile
tax schedules of any state, according
to Professor Worley.
"Without altering the present sys-
tem of collection through registra-
tion and gas taxes, the survey shows
that these taxes can be made to fur-
nish a needed revenue, without pen-
alizing or favoring any class, while
providing sufficient flexibility to fit
closely the actual use and benefit
which each type of vehicle derives
from the highways," Professor Worley
believes. Reform of the automobile
taxes of other states might be made
on a similar basis, but only after a
like survey of the individual traffic
and highway condtions, which very
greatly from state to state.
Gorman Named
To Position On
Former State Treasurer
Is Appointed To Replace
Alger ByFitzgerald
LANSING, Aug. 12. - (') - Gov-
ernor Fitzgerald appointed Frank E.
Gorman, former state treasurer, to-
day to succeed Mrs. Frederick M. Al-
ger, of Detroit, on the state liquor
control commission.
Gorman is a former president of
the Capital National Bank of Lansing.
He long has been a leader in Re-
publican circles.
The new liquor commissioner's ap-
pointment is effective immediately
and will end Dec. 15 of this year.
Announcing the appointment, Gov-
ernor Fitzgerald said:
"One of the major reasons for the
appointment is that Mr. Gorman is a
resident of Lansing and will be here
every day. The absence of the other
liquor commissioners has been a con-
stant source of annoyance."
After making the appointment Gov-
ernor Fitzgerald announced that he
was leaving immediately for anoth-
er week's vacation at Mackinac Isl-
and. While resting there, he will
draft further reforms for the control
of the State liquor traffic.
The Governor indicated nothing
further would be done immediately
in his controversy with Chairman
John S. McDonald of the commission,
but that he would await Gorman's
induction as a commissioner.
Turtle That Pulled Ship
100 Feet Now An Exhibit
BOSTON, Aug. 12.- ()-An 800-
pound sea turtle, which fishermen
said dragged the 81-foot Gloucester
seiner Santa Maria 100 feet, was
placed on display at the Boston fish
pier today. Capt. Peter Mercurio said
his crew lassoed the "leather-back"
turtle, which is eight feet from head
to tail, after it became entangled in
their mackerel nets yesterday.
Seattle Will Apologize
For Japanese 'Incident'
SEATTLE, Wash., Aug. 12.- (/F) -
Mayor Charles Smith announced to-
day he would offer his regrets to the

State Banking,
Business Are
Both Improved
Loans And Discounts Have
Increased $8,400,000 In
Less Than 3 Months
LANSING, Aug. 11. -(I)- The
state banking department reported
today that improved banking and
business conditions were disclosed in
a report of the condition of all state
banks at the close of business June
Banking Commissioner Rudolph E.
Reichert said loans and discounts had
increased by $8,400,000 in less than
three months and deposits by $2Q,-
135,846 in the same period. At the
same time restricted deposits de-
creased from $6,077,634 to $2,617,795.
The report showed investments in
government bonds have been reduced
from $146,000,000. Commissioner
Reichert said the increase in loans
and discounts "is a most encouraging
sing for Michigan business." It in-
dicates, he said, that there again isi
an increasing demand for business]
The report covers 381 state bank-'
ing institutions.
The total amount of deposits March
4 was $419,706,573. The amount on'
deposit June 29 was $440,842,419.
Reichert disclosed that the amount
of bills payable by banks on June'
29 was only $64,600. He said that
at the time of the banking holiday
bills of that nature amounted to ap-
proximately $100,000,000.
When the banks closed for the
holiday they had $418,000,000 in com-
mercial and savings deopsits.
The report of business on March 4
covered only 372 state banking insti-
tutions then operating. The restrict-
ed deposits reported today are in 15
banks, while those reported March 41
were in 31 banks.
Allotment Money Fromni
WPA Is Given Michigan1
WASHINGTON, Aug. 12.- (IF) -
President has approved allotment of
Federal funds totaling $1,067,988 to be
used by the Works Progress Adminis-1
tration for the works program in1
Michigan, the Division of Applica-
tions and Information announcedE
The sum completes the list of fundst
of $1,097,738 recommended to the?
President, July 30, by the Advisory
Committee on Allotments.
To the Federal funds will be added
$107,341 pledged by the sponsors of
projects submitted in the program
filed by Harry L. Pierson, State Works
Progress administrator for Michigan.
CHARLOTTE, N. C., Aug. 12.--(P)
- A blind man's sense of touch may1
send a Negro woman to jail for two
years. Lee Stanley, blind proprietort
of a newsstand here, said the woman
had given him slugs for 50-cent pieces
and crumpled bits of newspapers for(
dollar bills. He dropped one of her
'"dollar bills" on the floor and asked1
her to find it for him. When she<
came near, he grabbed her and calledt
the police.t
VVTW 1T uuntr m 11) In I aa

-Associated Press Photo
Miss Ruth Gibson (above), 25,
of Westerville, O., who once was
beauty queen at Otterbein College,
was one of five persons killed in an
interurban car crash at Springfield,
0. Since her graduation she had
been teaching school.
Fans In Northwest
Have A New Sport
-It's Study Of Birds
ST. PAUL, Aug. 12. - (A) - To
some it's a novelty, to others a hob-
by, and a few just smile - but to the
growing roster of northwest outing
enthusiasts bird study is a sport.
Trappings for a "field trip," as an
outdoors jaunt is known, are a mod-
ern match for sportsmen's para-
phernalia. With binoculars for a
gun and a camera for ammunition,
the bird-fan is set to "shoot" his prey.
In some Minnesota communities
the swelling ranks of bird troupers
bid fare to outnumber the gun-tot-
ing sportsmen.
Unencumbered by closed seasons
and species limitations, bird lovers-
young and old - daily invade Minne-
sota's< wild life haunts by the hun-
LONDON, Aug. 11. - (W) - During
the fall, gowns will be just of f the
ground,'Reville says. Formal after-
noon frocks will be ankle-length, and
skirts for town and sports wear will
be from 10 to 12 inches from the floor.

"POUFF", a tiny
,step-in that very
lightly controls
the junior .2...

"PATS", slightly
longer and firm-
er -- but just as

T HESE practically weightless foun-
dations are just about perfect
for the young set. They have a clever
"Double-knit" back that streamlines
rear curves -and are made of ven-
tilated two-way stretch that allows
plenty of freedom. No bones or an-
noying hooks.
Run-proof and washable.
Try a SENSATION in the
Corset Section.


Fresh Recruits Rush To
A t t a c k Administration
Almost Every Day
WASHINGTON, Aug. 12.- (A') -
With fresh recruits daily rushing to
the fight against AAA, Government
lawyers predicted today the process-
ing taxes will face more than 1,000
court attacks by mid-week.
Led by wheat millers, cotton gin-
ners and meat packers, processors of
every "basic commodity" have joined
the fray.
The Justice Department has
thrown shock troops-lawyers from
its Washington tax division-into the
With a Supreme Court test still
months away, the total of AAA suits
has already risen past the 900 mark.
Most of the attacks have sought
to stop the government from collect-
ing the tax until the Supreme Court
decides the constitutionality of AAA.
The taxes are levied on manufactur-
ers and other "processors" to finance
payments to farmers in the crop con-
trol program.
Senate-House conferees reached a
new agreement over the week-end
on pending AAA amendments which
they hope will prevent a fight in the
Senate. Originally, the House voted
the Administration plan to bar all
suits to recover processing taxes. The
Senate changed that to let processors
sue if they could show they had not
passed the taxes on to consumer or
At first, the Senate-House confer-
ees decided to require processors to
file claims with the collector of in-
ternal revenue, whose findings would
not be reviewable by the courts, ex-
cept in case of error. The new agree-
ment says the commissioner's find-
ings shall not be final, but merely a
report on the case.
Senate Works Secretly
On House Tax Measure
Operating under a strict rule of sec-
recy, the Senate Finance Committee
today revised at least one portion of
the House Tax bill and indicated other
alterations were in prospect.
The 21 membered committee work-
ed overtime, meeting in morning and
afternoon sessions in a drive to com-
plete revisions by tomorrow night. An
all-day conference was called for
tomorrow, Senate consideration of
the measure early next week is the









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