Y
Of ficial Publication Of The Summer Session
j~aIi
Editorial
Greetings
To The Freshmen .,
Z-323
ANN ARBOR, MICHIGAN, SATURDAY, AUG. 12, 1939
PRICE FIVE CENTS
Jackson Praises Direct Investments
In Latin America As Aid To.Progress
Flier On Honeymoon
Year Ago Yesterday
Direct investment in Latin American nations to develop "vast re-
sources which have not Iyet been made to respond to the wants of.man" was
urged last night by William K. Jackson, vice-president of the United Fruit
Companies, at the opening of the Conference on Economic Relations with
satin America.
He lauded such investments as indispensable aids to progress and inter-
change of culture. There has been no sustained period of domestic pros-
perity, he pointed out, when foreign trade was at a low ebb. And direct
investment, he declared, are vital sitmulants to trade.
"Full and hearty compliance with the local laws and sensibilities of
a nation must and have largely been observed by foreign controlled cor-
porations, he said, or they are doomed<
to failure. Latin American nations,
he emphasized, must likewise respond
with protection of property rights and
profits.
Foreign corporations are doing all
Union Ballroom Is Scene
Of Event Tomorrow;
Is Presented Annually
Five hundred guests are expected
to be present at the Annual Master's'l
Breakfast at 9 a.m. tomorrow in the
Union Ballroom.
The purpose of the breakfast is to
enable all students who are candi-.
dates for master's degrees'at the end
of this Summer Session to be the
guests of the University and to hear
President Ruthven speak.
Dr. Edward W. Blakeman will open
the program with an- invocation,. fol-
lowing which Dean Louis A. Hopkins
will call upon Prof. A. E. Boak and
President Ruthven to speak. Presi-
dent Ruthven came to Ann Arbor
from his summer home in Frank-
fort primarily for the, function.
Invitations for the breakfast have
been issued to the Administration of
the University, the Executive Board
of the Graduate School and students
in all colleges who are candidates for
master's degrees at the end of this
school session.
A few extra tickets are available
or guests of the candidates and- for'
the general faculty of the University.
Reservations may be made at the
Summer Session Office.j
that can be reasonably expected in
the way of cooperation with domes-
tic governments, other members of
the conference pointed out. They
contribute about 10 per cent of gross
revenues from 'oil and large export
taxes, in addition to wages and capi-
tal, to these countries," it was de-
clared.
"Power politics" were blamed by
one delegate for the present invest-
ment difficulties in Latin America.
He feared further extension of the
authoritarian state in Latin America
as an outgrowth of the nationaliza-
tion psychology which calls for a
strong central government to replace
the foreign investor.
What steps, if any, should be taken
to safeguard property rights of Unit-
ed States investors from threatened
or actual expropriation aroused de-
bate in the afternoon session. Re-
cent treaties involving "non-interven-
Aides Chosen
By ommerce
Chief,_ Hopkins
Emphasis In Department
Is Shifted In Change
To Domestic Business
WASHINGTON, Aug. 11. -(/P)-
Secretary Hopkins has selected sev-
en personal aides, all experienced in
some field of economics, whose job
it will be to help him'rejuvenate. the
commerce department and put it in a
better position to guide administra-
tion economic policies.
Disclosing this today, a department
official indicated also that the work
of the new group would be accom-
panied by a shift of emphasis in the
department from foreign to domestic
business problems. In the past, the
department- has largely emphasized
promotion of foreign commerce.
Heading the staff of new aides will
be Richard V. Gilbert, a public fin-
ance expert of Harvard University.
Others are V. L. Bassie, former Fed-
eral Reserve Board employee; Rod-
ney Riley, former University of Cin-
cinnati economist; Carroll Wilson of
the New York Investment Council
firm of Scudder, Stemens and Clark;
Robert I. Davison of the Pierce Foun-
dation; James Hughes, former NRA
construction expert, and Paul Truitt,
of the Treasury.
Michigan Professor
Has Book Published
Scientific Book of the Month Club
has chosen Professor Jesse E. Thorn-
ton's book, "Science and Social
Change," as the outstanding work in
its field for the month of August.
Professor Thornton, the author of
the volume which will be published
Aug. 15, is a member of the English
Department of the College of Engi-
neering. The work is the result of
his researches in the Library of Con-
gress and the Brookings InstitutiQn
of Washington, under whose direc-
tion the study was made during the
past year.
tion clauses leave the position of the
United States somewhat doubtful as
to its stand on this matter, it was
pointed out.
Some members of the conference
expressed faith in economic repri-
sals as a potent defensive weapon.
One government official emphasized
the tremendous .moral effect" of the
United States' - disapproval of her
neighbors to the south, and suggest-
ed it might be. used for greater ad-
vantage.
However others confessed fear that
such measures 'would prove, futile
and cited Mexico's resort to barter
with Germany as a case in point.
The closing session of the confer-
ence will open at:9:30 a.m. today in
the Rackham Amphitheatre and will
continue at 8:15 p.m. Henry P.
Grady,urecently appointed Assistant
Secretary of State, will preside over
the discussions which will deal with
the broad topic of "Measures for Fa-
cilitating Trade between the Ameri-
cas."
"Bases for an Increased Trade be-
tween the Americas" will be the first
sub-topic under this general heading
to be probed atthe morning meeting.
John Abbink, gresident of Business
Publishers Interriational Corporation,
will introduce the subject.
George Wythe, Liaison Officer for
the United States Department of
Commerce, will conduct the pre-
liminary discussion on the second
sub-topic of the morning session:
"hndustrialization in Latin America
and Its Effect upon Trade Relations."
The fourth session at 8:15 p.m. in
the Amphitheatre will be devoted to
only one specific topic, the third sub-
division of the general heading, en-
titled "Latin America and the Recip-
rocal Trade Program."
Preliminary discussion on this topic
will be led by Henry L. Deimal, Jr.,
Assistant Chief of the Department of
Trade Agreements in the Depart-
ment of State.
Indict Publisher
Evasion Score
M. L. Annenberg Acsed
In Largest Criminal Tax
Case In Federal History
CHICAGO, Aug. 11.-(P)-M. L.
Annenberg, whose publishing inter-
ests and horse race information serv-
ices span the continent, was indicted
today on charges of failing to pay $5,-
548,384 on his income in the largest
criminal tax case on Government
records.
A Federal grand jury accused him
of "wilfully" evading income taxes
totaling $3,258,809.97 during the five
years in the 1932-36 period and, in
casting up the account, added $2,289,-
574.92 in penalties and interests.
Charged with aiding and counseling
him were Annenberg's son, Walter,
and Arnold W. Kruse and Joseph E.
Hafner, alias Samuel Goldfarb, who
were listed as officials of the Cecelia
Company, top holding firm in Annen-
berg's newsprint and wire empire.
Annenberg, publisher of the Phila-
delphia Inquirer and a number of
magazines and turf sheets and ow-
ner of a racing news network reach-
ing across the United States and in-
to Canada, issued a statement de-
claring he welcomed an opportunity
to present his side of the case in
court and asserting neither he nor
his associates had any intention of
violating the laws.
"There will be many more Annen-
berg indictments," District Attorney
William J. Campbell told reporters
later. He declined to amplify the re-
mark but said the grand jury which
made a two-month inquiry into An-
nenberg's income was "still consider-
ing other Annenberg phases" and
would resume its sessions next Mon-
day.
The jurors who returned the An-
nenberg indictment heard 227 wit-
nesses and studied 17 wire services
and five different types of business
since they were sworn on June 5.
The second jury began work on
July 11.
"We still have an opportunity to
present our side at the trial," An-
nenberg's statement set forth in part.
"I have complete confidence in our
courts, and knowing that I never in-
tended to deprive the Government of
taxes, I do not fear the outcome. I
ISHPEMING, Mich., Aug. 11.-(P)
-On Aug. 11, 1938, Lieutenant and
Mrs. Homer Matheson MacKay (U'.
former Frances Moore, of Lansing)
Mich.) checked out of an Ishpeming
hotel, their honeymoon at an end. To-
day-one year later-Lieutenant Mac-
Kay, piloting a U.S. Army bomber,
crashed at Langley Field, W. Va.,
killing himself and eight other occu-
pants.
Lieutenant MacKay came to Ish-
peming from MConnelsile, Ohio,
with his family in October, 1923, and
was graduated from the Ishpeming,
High School in June, 1932.
Two years ago Lieutenant MacKay,
in company with another Selfridge
Field, Mich., pilot, landed at the
Marquette County Airport and, in
taking off, his plane pancaked into
some trees.
Social Security
Bill Is Signed
ByRoosevelt
Declares Against Special
Congressional Session
Unless War Threatens
HYDE PARK, N.Y., Aug. 11.-(A)-
President Roosevelt today signed a.
bill making far-reaching changes in
the Social Security program, cleared
away most of the other measures
which Congress left on his hands,
and said he would call a special ses-
session to enact more legislation only
if war became reasonably certain.
He volunteered the information, at
a press conference, that so far as he
knew there was no reason, as of to-
day, to call Congress back into ses-
sion before its scheduled meet-
ing Jan. 3.
Then, telling reporters to note his
words carefully, he added:
If an actual war crisis became im-
minent in Europe or the Far East-
in other words, if it became reason-
ably certain there was going to be a
war-he 'probably would 'call-ar spe-
cial session immediately to insure
American neutrality along the lines
of international law, so that this
country would not be involved.
Two bills bearing on the Nation's
security also were approved today.
One authorizes an expenditure of
$277,000,000 on a third set of locks
for the Panama' Canal-of which no
more than $15,000,000 may be appro-
priated in the current fiscal year-
and the other facilitates the exchange
of surplus American farm products
for reserve stocks of strategic ma-
terials produced abroad.
The press conference ranged
through the fields of both economic
and national security.
The Chief Executive first handed
the amendments to the Social Secur-
ity Act "represent another tremen-
dous step forward in providing great-
er security for the people of this
country."
That was true particularly, he said,
in the instance of the old-age insur-
ance program, which he said had
been altered to provide "life-time
family security instead of only in-
dividual old age security to the work-
ers in insured occupations."
Plane Crashes Kill
Two Navy Plots,
Nine Army Fliers,
Elanthe' Cast
To Give Two
Extra Shows
I _ I
Two extra performalces of "Iolan-
the" comic opera by Gilbert and Sul-
livan, will be presented on Monday
and Tuesday nights, in accordance
with the policy of the Michigan Rep-
ertory Players.
"Iolanthe," although not the first
joint work of these two authors, was
the first written originally for the
Savoy Theatre. The premiere was
presented there Nov. 25, 1882. The
opera was not, at first, an unquali-1
fied success. However, the final
stamp of approval was put on it when
Mr. Gladstone himself wrote Sulli-
van thanking him for the privilege,
of witnessing "Iolanthe." Sullivan
was knighted the following year.
Several of the works show a direct
evidence of the influence of Dickens
on Gilbert. "Iolanthe," gravitating as
it does between Parliament and Fairy-
land, is the vehicle for considerable.
political satire. In short, Gilbert is
often called "a creaky bridge between
the sentimentality of Dickens and the
sociology of Shaw."
Members of the cast are Marguerite
Mink, Nancy Bqwman, Margaret
Adams, Robert Reeves, Rose Ingr-
ham, Truman..mith, Elizabeth
Brinkman,uJames Cockrun, Evelynt
Smith, Leah Lichtenwalter, Blanche
Blank, John Schwartzwalder, Richard
Whittington and Fannie Aronson.
Two large choruses sing in the
performance. The Chorus of Fairies
includes Clotilde Bernard, Mary Kay
Van Noy, Edith Van Beek, Grace Wil-
son, Bernice Conley, Leah \Dooley,
Ethel Fountain, Marjorie Gravit, Di-
ana Moulton, Margaret Murphy, Ei-
leene Oberling, Mildred Stanger and
Ruth Wilson.
In the Chorus of Peers are Paul
Zeller, Richard Bennett, Oliver
Cooke, Chester Jones, James Moll,
Lyle Smith, Wentz Alspaujh, Thom-
as Herrick Frank'Upson, Ralph Mead,
Herbert Nuechterlein, Lawrence Ru-
dick, Joe Holloway, David Spengler,
Lotar Stahlecker and Chester Webb.
Members of the stage crew include
Oscar Sams, stage manager; E. S.
(Continued on Page 4)
To Settle Dispute
DETROIT, Aug. 11.-(1P)-Follow-
ing a conference between represen-
tatives of General Motors Corp. and
spokesmen for the United Auto Work-
ers (CIO) it was announced today
that a dispute which developed this
week would be settled amicably. The
union had contended some plant
managers were not abiding by the
terms of the agreement which last
week settled the strike of tool and
die makers.
ree-Point Plan
(By The Associated Press)
Two plane crashes-one of an Army
plane near the Atlantic Coast and the
other of a Navy plane near the Paci-
fic-took the lives of eleven service
men yesterday. Both 'planes burned.
The Army plane, a bi-motored
bomber crashed and burned at the
Langley Field, Va., Army air base,
killing two commissioned officers and
seven enlisted men. The accident oc-
curred as the plane took off for a
routine navigation flight.
Two fliers died in the crash of the
Navy plane near San Diego, Calif,
during gunnery exercises,
LANGLEY FIELD, Va., Aug. 11.-
(-)--An Army bombing plane, taking
off for local training flight, crashed
and burned here today, killing its
crew of two commissioned officers
and seven enlisted men.
The crash, described by officials
here as one of the worst Army avia-
tion accidents in recent years, was
apparently due to motor trouble.
attaining an altitude of about 150
feet, witnesses said, one of the ship's
two motors appeared to have stalled
an'd the left wing drooped.
The pilot, Second Lieutenant Ho-
mer M. MacKay, apparently in an ef-
fort to straighten the plane, started
gliding toward the waters of Back
River, only a short distance away.
The plane, however, went into a dive
and crashed fifty feet from the wat-
er's edge, the wreckage bursting al-
most immediately, into flames.
Witnesses said they hbeard an ex-
plosion as the plane struck the ground
and a series of about six explosions
during the next few minutes. Crash
truck and ambulance crews raced to
the scene, but were rendered helpless
in a rescue attempt by the flames
and intense heat. The bodies could
not be removed until about two hours
later.
Army officials list the dead as fol-
lows:
Second Lieutenant Homer M. Mac-
Kay, of Lansing, Mich., married.
Second Lieutenant Thomas L. But-
ner, Burnsville, N.C., married.
Technical Sergeant William Mor-
gan, of Norton, Va., married, two chil-
dren,
Staff Sergeant Raymond Shelley,
Oakdale, La., married, one son.
Staff Sergeant Everett Kirkpatrick
of Quilsene, Wash., married, four
children.
Staff Sergeant Howard A. Juernig
of Meridian, Idaho, married.
Corporal Pete Bunyk of New Ken-
sington, Pa., not married.
Private Anthony Reale of Milwau-
kee, not married,
Private Roy B. Leopold of East
Manchchuk, Pa., not married.
SAN DIEGO, Calif., Aug. 11.-(P)-
Two Naval fliers, a reserve officer
and an enlisted man of the regular
Navy, met death today in the crash
of their plane at Miramar Landing
Field, north of San Diego.
The pilot was Ensign T. R. Wood,
28, U.S.N.R., and his passenger V.
P. Armstrong, 33, radioman first
class. Both were attached to bomb-
ing squadron 3 of the Navy aircraft
carrier Saratoga. The plane caught
fire after it crashed, and was reduced
to a mass of charred wreckage.
The accident occurred as the fliers
were engaged in gunnery exercises.
Stage Unions
Continue Fight
Performers, Stagehands
Fail To Solve Problem
ATLANTIC CITY, N.J., Aug. 11.-
(P)-Originally scheduled for a one-
day stand, the battle of performers'
and stagehands' unions over the
status of Sophie Tucker's American
Federationof Actors swung through
a second session before the Amer-
can Federation of Labor's executive
Disaster In East Occurs
As Bi-Motored Bomber
Takes Off In Virginia
Naval Fliers Fall
I Gunniery Practice
Fire
SPOKANE, Wash. Aug. 11.-(P)-
Spirit Lake, Idaho, a village of 900
persons, was reported a blazing infer-
no tonight.'
A brisk, wind whipped to life dying
embers of a nearby forest fire that
had threatened the town since last
Saturday.
Mrs. Martin Olson of Spokane,
whose father owns a box factory in
Spirit Lake,' reported by telephone
the flames were eating through the
town, whipped by a strong wind.
She said she watched from the top
of a hill above the town and saw her
father's mill completely enveloped
and several oil tanks, nearby, be-
lieved to be Standard Oil C'ompany
tanks, explode.
A number of trucks bearing Spirit
Lake householders and their goods.
passed her on the road, she said.
Twenty million feet of lumber in
the yards of the Panhandle Lumber
Co. mill, half :a mile east of town,
were reported already burned.
McNutt Gives Th
For Modern Liberalism At Meet
PITTSBURGH, Aug. 11.-(IP)--Be- ,Democratic coalition in Congress had
Breach Directs Summer Chorus
Of 70 In FinalVesper Service
tween applauded speeches demanding
a third term for President Roosevelt
or at least for his "ideas, Paul V.
McNutt outlined before the national
Young Democrats' convention to-
night a three-point program for
"modern liberalism."
He also lauded the President in
superlative terms and promised an
enlarged social security program to
cover health and disability programs.
The speech of McNutt, an avowed
candidate for the Democratic Presi-
dential nomination, touched off a wild
demonstration. The entire conven-
tion rose to shout while several bands
marched around the convention hall.
It was the former Indiana Gover-
nor's second important address since
he was named by the President as
federal security administrator, the
first being at Cleveland several weeks
ago when he strung along with the
Roosevelt foreign policy. He did not
mention 1940 tonight, but pre-
viously in an interview he reiterated
he would withdraw from the race if
the President sought a third term.
licked some of the Roosevelt program
"but they have not licked Roosevelt."
He said their tactics had increased
the demand for a third term.
Speaking on the "meaning of mod-
ern liberalism after Senate leader
Barkley had told an earlier session
the 1940 convention would not repu-
diate the "eight years of Roosevelt,"
the handsome former Indiana gov-
ernor said at least three great aims
of liberalism are:
1-Vigilant protection of "those
civil liberties which are the life blood
of our democratic system."
2-Remedy the "many diverse
abuses which have threatened the
safety of our economic and social
order," including "thoughtless de-
struction" of natural resources and
other abuses he said had grown out
of the "excessive concentration of
private economic power."
3-Make "our economic machine
turn out the abundant production of
which it is capable."
He said the country is "bursting
with pent-up energy" and on one
The Summer Session Chorus of 70
voices, directed by William Breach,
visiting member of the faculty of the
School of Music, will present a con-
cert of sacred music at the final
Vesper Service of the summer at 8
p.m. tomorrow in Hill Auditorium,
Breach is director of music in the
schools of Buffalo and is recognized
as one of the leading figures in the
field of music education. He is a
past president of the Music Educators
National Conference and a pioneer in
the development of high school chor-
boy's choruses, are widely uspd.
In connection with the Buffalo
Symphony Orchestra, Breach has
presented a number of choral fes-
tivals, using choruses of 3,000 boys,
4,000 elementary children, a city-
wide high school chorus of 1,000
voices and a teacher's chorus of 300.
He has directed such choral works
as Pierne's "Children at Bethlehem,"
Sullivan's "Golden Legend," "D'-
Indy's "Mary Magdelene," Wagner's
"Die Meistersinger," and Clokey's
"The Nightingale."