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."