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Official Publication Of The Summer Session
VOL. L No. 28 Z-323 ANN ARBOR, MICHIGAN, FRIDAY, JULY 26, 1940

PRICE FIVE CENTS

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Warned

B y

Hitler

To'

Meet

Terms

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Hundreds Of German Planes Blast England

British Admit
Great Losses
Of Convoys
English Airplanes Fight
Overwhelming Numbers;
King Driven To Shelter
Turks Sign Pact
With Herr Hitler
BULLETIN
ANKARA, Turkey, July 25.-(')
-The Turkish Government signed
a $16,000,000 trade agreement with
Germany today while the national
assembly was voting $48,000,000 in
new defense credits.
Commercial exchanges with Ber-
lin, paralyzed by the war, were
resumed with the arrival of a Ger-
man cargo boat via the Danube.
LONDON, July 26.-()-German
bombers by the hundreds made the
English Channel a streak of flame
and death from dawn to twilight
yesterday.
The British pilots fought back, but
in one fight alone they were out-
numbered, 80 to 6.
The Germans came on a day when
Britons were told that nearly 3,000
of their troops and civilian compa-
triots had been lostin the month-
old sinking of a great and famous
troopshipyby Nazi bombers and that
a speedy German torpedo boat
BUCHAREST, July 25.-(P)-
Rumania tightened her grip on
vast British and French oil proper-
ties in the rich Rumanian fields
tonight by ordering expulsion of
12 French oil company executives
and promising greatly speeded de-
liveries for the Reich's oil-thirsty
war machine.
Reports circulated during the
day that the government would
requisition 60 British owned Dan-
ube barges to augment the river
fleet to make good big oil delivery
promises to Germany.
Wednesday night had sunk a plain-
ly-marked French ship loaded with
homeward-bound French soldiers,
drowning hundreds.
T'he British said that the masses
of German fighters which attacked
Channel convoys all day Thursday
had met a gallant and deadly resis-
tance and, that they did little dam-
age.
The Germans said their planes
had sunk 11 out of 23 convoyed ships
for a total of 43,000 tons and had
damaged other with their destroyer
escorts.
The London Admiralty did ac-
knowledge the loss of two naval
trawlers, but did not say where or
when they were sunk, or give the
casualty totals.
The announcement said the traw-
lers Kingston Galena and Rodino
"have been lost as the result of an
enemy air attack."
The Air Ministry said "20 enemy
aircraft, 11 bombers and 9 fighters,
were downed during the day and that
one British fighter was missing. It
said:
"Hour after hour from dawn to
late this evening Spitfires and Hurri-
canes roared into the skies to engage
a large force of Nazi bombers with
their protecting fighters which were

attempting to bomb convoys.
Late last night, German planes
were over Southwest England and
Wales.
The bombers, roaring swiftly
across the Channel that once was
Britain's barrier inviolate, drove
even King George to an air raid
shelter. They came in swarms of
eighty, to dive and blast at shipping,
harbors, shores and inland localities


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Whew! Heat
on Way out
wFor A While
(By The Associated Press)
The nine-day heat wave in the
Middle West began breaking up last
night, with rains and cool winds
forcing the temperature down more
than 20 degrees in some areas.
In Detroit, however, the heat wave
prepared for its departure by setting
an all-time high for July 25 of 99
degress at 2:15 p.m. Previous high
for this date was 96 in 1934.
Forecast for tomorrow was for
partly cloudy weather, with the ar-
rival of a cool air mass which was
expected to make the day's maximum
85 degrees, the weather bureau said.
Consumers Powe' Co. estimated
at least $50,000 damage to company
property after a 60-mile gale swept
through Saginaw, felling power and
telephone lines and uprooting trees.
Throughout the county wheat,
oat and corn were destroyed.
Argentine Hits
Pan-American
Solidarity Plan
Tells Havana Conference
Of Mandate Opposition
To European Possessions
HAVANA, July 25.-(P)-Leopoldo
.Melo, head , Argentine delegate, de-
clared tonight his country was op-
posed to Pan-American trusteeships
or mandates over European posses-
sions in this hemisphere.
The future status of those posses-
sions should. be determined by the
people involved and without outside
pressure, he told a press conference.
Thus Argentina, big question mark
of Pan-American solidarity, fulfilled
the predictions of most conference
observers that she was opposed to
the "collective trusteeship" idea ad-
vanced by the UnitedrStates,.Brazil
and other American republics.
Argentina's views were submitted
tonight to the secosd emergency con-
ference of American Ministers in-
cluding Secretary of State Cordell.
Hull.
It was expected Argentina would
refuse any economic plans too, if
there was a chance those plans would
jeopardize her future relatioss with
European commerce.
Linguist Meet
Scheduled Here
For Two Days
Prof. Sturtevant To Open
National Convention In
Rlackham Hall Today
Facing a crowded two-day pro-
gram that will be carried on despite
heat and humidity, several score lin-
guistic scholars will gather in Ann
Arbor today for the third annual
special summer meeting of the Lin-
guistic Society of America. The meet-
ing is held in conjunction with the
Linguistic Institute.
Prof. E. H. Sturtevant of Yale Uni-

versity is to appear as first speaker
at the opening session in the Rack-
ham Amphitheater at 2 p.m. His dis-
cussion of the Greek aspirated per-
fect will in turn be discussed by
Prof. Roland G. Kent of the Univer-
city of Pennsylvania.
Members of the society and their
friends will banquet at the Michi-
gan Union at 6 p.m. during an inter-
mission in the reading of papers. Tic-
kets for the dinner should be ob-
taind by 3 n.m. at the office of the

Are They Off To 'Over There'?

German Minister
Attacks American
Economic Policy
Reich Threatens Trade Lockout
Unless We Release Gold Hoard
BERLIN, July 25.-()-The United States was warned by Adolf Hitler's
Minister of Economics tonight that she must be prepared' to trade with
a victorious Germany on Germany's terms after the war or suffer a lockout
from the commerce of a whole Europe geared to Nazi economics.
The warning was couched in vigorous terms by Walther Funk in a
45-minute interview.
He said also that the United States must give up the idea of forcing
her conditions on Germany by a "united front" with the other American
nations.
If the United States expects to make any use of her gold hoard, Funk
said, she must revalue her dollar so it can flow out of America and goods
flow in.
"When you play marbles and one fellow wins away all the marbles

ports, political' observers maintain, in silent answer to Hitler's warning to this country last night.

Private Enterprise Depends
On Control, Sharfuman

Says'

By -HARRY- M. KELSEY
The survival of the system of free private enterprise is dependent upon
policies of social control calculated to make it work effectively, Prof. I. Leo
Sharfman of the economics department said yesterday in his lecture on
"The Development of Social Control" for the Graduate Study Program
in American Culture and Institutions.
We can perpetuate our institutions if they are worth perpetuating, he
asserted, and in the eyes of many they will be worth perpetuating if they
work effectively. It is the purpose of social control to make them do so, he
maintained.
Social control,s Pofessor Sharfman pointed out, may be conceived in
two aspects : as a substitute for the<

Party Platforms
Will Be Subject
Of Jamison Talk
Prof. Charles L. Jamison of the
business administration school will
deliver the fifth in the Summer Ses-
sion American Policy in the World
Crisis series at 4:15 p.m. Monday in
the Rackham Lecture Hall.
Professor Jamison will speak on
"A Business Man Looks at the Re-
publican and Democratic Platforms
in terms of the present World Cri-
sis."
In his talk Professor Jamison will
consider primarily the economic ef-
fects of the two platforms rather
than their political implications.
Previous lectures in the series
which is sponsored by the Summer
Session have been delivered by Prof.
Howard M. Ehrmann of the history
department, Prof. Lawrence Preuss
of the political science department,
Dr. Melchior Palyi, noted Germanj
economist, and Dr. William S. Cul-
bertson, chairman of the United
States Tariff Commission.

U. S. Answers
Germans With
Cartel Program
Says Plan Will Protect
All American Nations
From Nazi Domination
WASHINGTON, July 25. -(iP)-
Government officials declared today
the Pan-American meeting now go-
ing on in Havana was the United
States' answer to German economic
aims as outlined today by Walter
Funk, Nazi economics minister.
While declining to be quoted by
name, they said that apparently Ger-
many proposed to organize European
business in such a way that the com-
bined purchasing power of totali-
tarian areas of the continent could
be wielded against the trade policies
of other countries.
The "cartel" plan was proposed to
offset combined European buying
power by a combined American sell-
ing power. The idea is for all Amer-
ican countries to cooperate in one
central export agency, which would
be the only compaiy in the New
World authorized to sell goods to
Europe.
If this plan were adopted, offi-
cials reasoned, no one country would
be economically dependent upon Cer-
man patronage, and therefore na-
tions in this hemisphere would be less
likely to submit to Nazi political
penetration.

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system of free enterprise, resulting
in a totalitarian economics, a con-
cept which meets with great resist-
ance in this country; or as a means
of adjusting our economy to the de-
mands of changing circumstances
within the framework of a system of
free private enterprise. But methods
are widely used to obstruct the de-
velopment of social control in the
second sense, he indicated, which
might lead to a breakdown of the
existing capitalistic system and the
rise of a totalitarian system from
the resulting chaos.
Wide condemnation of social con-
trol has had a dilatorious effect upon
the equality of enactments and their
administrative enforcement, Profes-
sor Sharfman noted. The work of
pressure groups causes legislators to
lean one way or another rather than
consider all conflicting interests in
each case, he said.
He listed three grounds on which
social control has been condemned
as the notion that such policies nec-
essarily involve a destruction of in-
dividualism, the notion that the
powers of social control are revo-
lutionary and the charges of regi-
mentation, centralization and bu-
reaucracy.
Scholarships Given
To 157 Students
Renewals of 157 University alumni
undergraduate scnolarships were pre-
sented yesterday to students from
58 cities throughout the state. The
scholarship recipients successfully
maintained the high scholarship re-
quirement during the past year.
University authorities asserted that
the students had maintained the
confidence placed in them. Origin-
all Awards were based on scholarship,
character and need.
f'fni hart. ' T W jrw

Malone Substitutes
For Reeves Speech
The lecture on "The Origin and
Development of American Political
Thought" to have been given at 8:15
p.m Monday for the Graduate Study
Program in American Culture and
Institutions by Prof. Jesse S. Reeves
of the political science department
has been cancelled because of Pro-
fessor Reeves' illness,

the game ends," he said. "You must
then think of some new game. When
all the gold is in the United States
and it doesn't come out again the
world must think of some other me-
dium of exchange.".
Picturing a Europe in which all
other European countries will dove-
tail their production into German
needs and exchange largely on, the
brter system, Funk stated flatly
that the Reichsmark would be the
dominating currency on the con-
tinent--a strictly pegged currency.
Part of Funk's remarks were called
forth by the Pan-American Confer-
ence in Havana. He made it clear
he did not think much of the eco-
nomic plan advanced there by the
United States for formation of a
cartel to absorb South American Sur-
pluses.
Complaining that the United
States is deliberately discriminating
against Germany, he said the United
States' cartel plan in "reality" is a
proposed "bilateral economic system"
such as Germany is using in her
barter.
English To Send
Colossal' Sums
Here For Planes
Morgenthau Reveals Plan
For Building Factories
And Increasing Output
WASHINGTON, July 25.-()-
The British have decided, Secretary
Morgenthau announced today, to
pour "colossal" sums into the Amer-
ican airplane industry, building fac-.
tories which will expand the indus-
try's capacity "far beyond" 50,000
planes a year.
On its part, the United States has
pledged "every facility," Morgenthau
said, to enable the British to buy
3,000 planes a month here in addi-
tion to large orders already placed.
Officials declined to estimate how
soon such a production level might
be reached, merely confining them-
selves to saying the British hoped it
would be attained early in 1941.
A spokesman for the aviation in-
dustry privately expressed confidence
that the industry could produce 3,000
planes a month, if the British fur-
nished the money and assured the
necessary supply of machine tools.
He added, however, that present
capacity for the manufacture of
military planes is only 1,250 a month
and that the industry is working at
less than 50 per cent of capacity.


Conscription Plan Meets Opposition
As Senator Vandenberg Petitions

Draft Program Is
Sure Road To
Wheeler Leads

Called
War;
Battle

Has Million Signatures

WASHINGTON, July 25. -(IP)-
Vigorous opposition to peacetime con-
scription of the nation's manpower
broke out in the Senate Chamber
today as military committees of the
Senate and House sought to speed
action on a broad compulsory train-
ing program.
"Nothing is left except to pull the
trigger," Senator Vandenberg (Rep.-
Mich.) told the Senate, while Sena-
tor Wheeler (Dem.-Mont.) said the
draft proposal was part of "hysteria"
tending to goad the United States
"down the road to war."
"The American people will never,
stand for it," Wheeler said, recalling
that the recent Democratic conven-
tion adopted a platform opposing
participation in foreign wars,
No peacetime conscription plank

Sen. Vandenberg Files List
Of A Million Names;
Advocates Enlistment
WASHINGTON, July 25. -(AP)-
Senator Vandenberg offered today a
petition to Congress to keep this
country out of war which the Mich-
igan. Republican told the Senate con-
tained 1,000,000 names and would
eventually total 5,000,000.
Vandenberg sadi that the petition
came from a group known as the
"Committee of One Million" with
headquarters in Detroit, under Ger-
ald L. K. Smith.
Terming the petition the "most
powerful single exhibit" of the con-
stitutional right of petition to Con-
gress, Vandenberg said the signers
acted under the "common anxiety to
preserve the American system of gov-
ernment and above all keep this coun-
try out of war."1
"This is the voice of America," the
Senator said, explaining that one part
of the petition urged that Congress
outlaw all foreign "isms,"

Balkans Line Up
With Reich

Southeastern Europe's statesmen
are on their way today to Salzburg,
Germany, to hear Adolf Hitler's fi-
nal word on new efforts to snap the
rubber boundaries of the Balkans,
especially Rumania.
Hitler, who rested from his duties

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