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August 14, 1940 - Image 2

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Michigan Daily, 1940-08-14

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Washington Merry-Go-Round

Grin And Bear It0. .

By Lichty

.. A r


Edited and managed by students of the University of
Michigan under the authority of the Board in Control
of Student Publications.
Published every morning except Monday during the
University year and summer Session.
Member of the Associated Press
The Assolated Press is exclusively entitled to the
use for republication of all news dispatches credited to
it or not otherwise credited in this newspaper. All
rights of republication of all other matters herein also
Eitered at the Post Office at Ann Arbor, Michigan, as
second class mail matter.
Subcriptions during the regular school year by carrier
$4.00; by mail, $4.50.
National Advertising Service, Inc.
College Publishers Representative
Member, Associated Collegi ate Press, 1939.40
EVditoriaL Staf f
Managing Editor .............Carl Petersen
City Editor.... .......Norman A. Schorr
Associate Editors..........Harry M. Kelsey,
Karl Kessler, Albert P. Blau-
stein, Morton C. Jampel, Su-
Su-zane Potter,
Business Staff
Business Manager ............ Jane E. Mowers
Assistant Manager ..........Irving Guttman

WASHINGTON - When those Democratic
leaders told Roosevelt at their White House con-
ference, "Keep Hopkins out of the campaign,"
apparently they meant it.
One of those at the meeting was Ed Flynn,
who succeeds to the National Chairmanship next
Saturday. And it was Ed Flynn who was respon-
sible for that Hyde Park announcement denying
that Hopkins would sit in on a political council-
of-war with the President and Henry Wallace.
Flynn read in the Tuesday morning papers
that Hopkins was to take part in the pow-wow.
He had no information as to the source of the
news report, but he strongly suspected Harry,
However, Flynn wasted no time in arguing
about the matter. He called up Hyde Park and
bluntly insisted that " Hopkins is out." And he
was. A half hour later, White House Secretary
Bill Hassett summoned newsmen and told them
Hopkins would not be present at the conference
between Roosevelt and Wallace.
Note - The Secretary of Commerce spent the
day whiling away his time in a nearby Pough-
keepsie hotel playing bridge.
WORKING at high speed behind the scenes for
his taking over the National Chairmanship,
Flynn has completely reorganized the Democrat-
ic campaign machinery.
The crux of the new set-up is decentralization.
Instead of the central headquarters occupying
four hotel roomns in Manhattan, which Farley
bossed, Flynn will establish a number of region-
al offices to be under the direction of local lead-
ers. Already decided on are the following:
Eastern headquarters, located in New York
under the direction of Flynn himself; mid-west-
ern offices, in Chicago, under Paul McNutt;
southern, in Birmingham, under Senator John
Bankhead; Rocky Mountain, in Denver, under
Senator Joe O'Mahoney of Wyoming; south-
western, in a city yet to be selected, under Sam
Rayburn, House Floor Leader and close friend of
Jack Garner; Pacific Coast, city and chief yet
to be chosen. Heading a separate campaign
group will be Mayor LaGuardia of New York,
who will carry the Roosevelt-Wallace campaign
among liberal and independent elements. The
LaGuardia organization will be known as the
Roosevelt Progressive Campaign Committee.
Flynn also plans a number of changes in Na-
tional Committee personnel.
Note - When Flynn agreed to become Demo-
cratic Chairman he did so on one condition only,
that he should have a free hand to clean up the
National Committee and run the campaign
without interference from White House inti-
mates like Hopkins.
A GROUP of ardent young New Dealers and
their wives held a weighty conference under
a lamp post. It was a Georgetown lamp post at
the corner of Thirtieth and N streets, and they
all lived near that corner, but they all wondered
how long they would live there.
That was the subject that weighed upon their
minds, but they didn't express it in the usual
political talk. Their talk was confined to leases.
James H. Rowe, administration assitant to the
President, whose house is right on the corner,
looked at Ralph T. Sewart, who lives in the fam-
ous "narrowest house" a few doors below. And
MVIrs. Seward looked at Mrs. Rowe.
Abe Fortnas, once of SEC, now Bituminous
Coal Division Councel, studied the face of Ed

Rhetts, Associate Solicitor of the Labor Depart-
ment. Fortnas was thinking of his house on the
opposite corner.
When thoughts found words, they were some-
thing like this:
"Are you planning to renew your lease?" ....
"Dunno, are you?" . . . . "Mine's up in October."
. . .. "So's mine." . . .. "Going to sign up for
another year?"
No mention was made of the name "Willkie"
-not a word, but presently someone said, "I
think I'll see what kind of cancellation clause I
can get, in case-"
The sentence was never finished. It wasn't
Let There Be Less Light
ONE OF THE IMPORTANT anti-trust cases
upon which the Justice Department is work-
ing quietly is an attempt of big utility compan-
ies to suppress the use of electric light bulbs us-
ing less current, and thus reducing the house-
wife's electric bills.
What the Justice Department has unearthed
is the fact that the General Electric Company
was exhibiting at the New York World"s Fair a
new flourescent bulb which generates the same
amount of light as a standard bulb on less than
one-third the amount of power.
However, some of the utility companies learn-
ed of this and asked General Electric to with-
revenue to the utilities. General Electric com-
plied with the request.
The utility companies also have issued instruc-
tions not to permit any promotion or advertise-
ment of this new type of light bulb, and one mag-
azine advertisement was rewritten in order to
comply with this policy.
Minton Vs. Holt
After Senators Minton and Holt had verbally
exchanged foul blows in the Senate debate on
conscription, a transcript of their remarks was
sent to each of them by the official reporters,
before printing in the Congressional Record.
This gave the speakers a chance to moderate
their strong language, if they desired. Both men
returned the copy sheets unaltered. And sitice
the official reporters take no liberties with per-
sonal remarks tossed about in the Senate, they
were printed as spoken.
Commented the official reporters: "We make
no changes in foul language in the Senate so
long as it's grammatical."
Henry Wallace Wear
For seven years, Henry Wallace, with his
tongue in his cheek, has studied the manners
of polite society in the nation's capital. He has
acquired an extensive wardrobe which includes
the proper costume for every occasion-from a
tennis match to a state funeral.
But there is one item of gentleman's apparel
which still has Henry puzzled. It is that waist-
band of Persian origin known as the cummer-
Henry encountered a cummerbund wearer at
a party given by Sumner Welles. He blinked
twice and said:
"In hot weather like this, I can't see the
point of wearing a thing like that around your
middle. But I must admit it looks pretty fancy;
it makes you look like a Venetian gondolier."

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All notices for the Daily Official
Bulletin are to be sent to the Office
of .the Summer Session before 3:30
P. M. of the day preceding its pub-
lication except on Saturday, when
the notices should be submitted be-
fore 11:30 A. M. .
The Michigan Dames will hold a
bridge party at the Michigan League
today at 2 p.m. for the wives of
summer school students. There will
be a ten cent charge to cover prizes
and expenses.
Doctoral Examination: Mr. James
K. Davis, Chemistry; Thesis: "Ad-
sorption at Water-Air and Water-Or-
ganic Liquid Interfaces. Wednesday
August 14, at 2 p.m., 309 Chemistry.
Chairman, F. E. Bartell.
By the action of the Executive
Board the chairman may invite mem-
bers of the faculties and advanced
doctoral candidates to attend the ex-
amination and he may grant per-
mission to attend to those who for
sufficient reason might wish to be
C. S. Yoakum

No Tim
For Profit Patriotism

. . .

for full speed ahead by Congress in
the enactment of a war profits tax and amorti-
zation provisions for the armament industry.
It is high time, since, according to Secretary
Stimson, the defense program is becalmed be-
cause of the uncertainty among manufacturers
as to what Congress will do in this field.
It is shocking to learn that $300,000,000 worth
of airplane contracts have been gathering dust
in War Department files for two months; that
contracts have been signed for only 33 of the 4,-
000 planes for which the moneywas appropriated
early in June. Certainly the country wants ac-
tion. It wants no more of he sort of delay which
the Boeing Aircraft Co.'s procedure is an exam-
ple. Its huge plants are running at only 40 per
cent of capacity and yet, the New York Post re-
ports, it "turned down a $31,871,349 contract be-
cause the company wanted to be sure Congress
would pass laws suiting it."
Granted that the Government has been partly
at fault in the delay over passing these laws. But
how far is it necessary to go in order to placate
a 25 to 40 per cent levy on excess profits. This
is extremely mild, when it is recalled that the
1917 law provided a tax running up to 80 per
cent, and in one year yielded two and a half bil-
lion dollars. The subcommitte would also sus-
pend the Vinson-Trammell Act's restriction of 7
and 8 per cent on the profits from warships and
war planes, another concession. Such terms may
be found advisable in order to speed up manu-
facture and stimulate initiative. But surely it
will be possible to take other steps, such as
tightening up the loose inheritance tax law, in
order to prevent undue accumulations of wealth
as a result of the defense program.
New factories will be required for producing
planes, arms and other defense materials. No one
knows how long these plants will be needed, so it
is. on natural for business men to hesitate t
build them under a law requiring that the cost
must be spread out over a period of from 10 to
50 years. They still remember how the Govern-
ment canceled billions in contracts after the
armistice in 1918.
The proposed measure sets a five-year period
as the limit. Wendell Willkie a few weeks ago
suggested even more favorable terms of from two
matter of profits, the manufacturers might stop
to three years. If the administration would make
up its mind firmly on this question, an on the
besieging Washington for bett'er terms and go
home and start making planes.
CONSIDERATION might well be given, we
think, to the development of Government-
owned facilities fo certain types of supplies and
equipment. The Government would then provide
a sort of a yardstick by which to judge prices
quoted by private manufacturers. Moreover,
since much of the plant invesment will be amor-
tized by government orders over a brief period;,
there is no necessity for making private industry
a gift of this equipment.
The excess profits tax should take advantage
of cetain obvious lessons implicit in our exper-
ience with this form of levy in the last war. Con-
siderablq revenue was lost then because no limit
was placed on such items as salaries and bonuses
and expenditures for advertising and good will.
For example, Eugene Grace was paid a bonus
of $2,887,725 in 1917-18 for his services as presi-
dent of the Emergency Fleet Corporation. Mr.
Grace is now leading the chorus demanding tTat
the Government finance the building of arms
plants for private firms.
Now that the Government is meeting the arm-
aments manufacturers at least half-way, it will
be wise for them to avoid quibbling too much and
*p+ hlnv

EConomist Henry H. Douglas Claims
U. S. Finances Japanese Aggression

For Evacuees
While the bill to permit American
rescue ships to go after British evac-
uee children awaits action in the
Senate, it seems appropriate to con-
sider a recommendation made by the
magazine, Living Age. This had to
do with the prospective handling of
the thousands of youngsters-their
housing and schooling-after trans-
portation to the United States.
The editors of the magazine point
out that the individual placement in
American homes is not the only way
of providing for the escape of these
chidren from the range of threaten-
ed bombing and devastation. Indeed,
they belive that to take over or set up
country school centers where groups
of the guest children could live and
study with matrons and teachers
mostly of their own nationality
would be much more suitable and
practical in many instances.
Suffer For Less
By such means, argues Living Age,
"the children will suffer far less Qf
the wrench and anxiety, introduced
to a foreign land, far from their na-
tive homes, than if they are intro-
duced, willy-nilly, into American
homes in which standards of living
differ, and introduced into our
American schools where the coitrast
with their own cannot be less than
frightening." A greater fairness also
is urged in that when repatriation is
possible British parents will not be
faced with unfamiliar, Americanized
adolescents, and foster parents in
the United States will not have to
give up youths for whom they have
a deep attachment.
The case presented is hardly reas-
on for abandoning or reducing our
efforts made to place evacuee child-
ren temporarily in foster homes, but
it does suggest a possibly very useful
supplement to that program or even
a substitute in some instances.
Schafer Amendment
One point is to be noted with re-
spect to the pending legislation. The
Schafer amendment, tacked to the
Hennings bill at the last minute in
the House of Representatives, would
prohibit any adults except American
citizens from accompanying the lit-
tle evacuees. If there is merit in the
plan for school centers, which might
in a measure resemble English board
ing schools, the Schafer amendment
would need to be struck off or modi-
fied in the Senate.
-Christian Science Monitor
He Who Gets Spanked
John Cudahy, our Ambassador to
Belgium has been proclaimed the
the bad boy of the American diplo-
administered a trans-Atlantic slap
on the wrist. And Cudahy has been
called to the woodshed behind the
White House for a taste of the
Presidential spank.
All this hubbub arose because, on
his arrival' in London, the envoy
gave an interview in which he
failed to follow the approved Bullitt
formula of being 100 per cent pro-
British and 100 per cent anti-Ger-
man. It seems that Cudahy's real
sin in the eyes of Mr. Welles was
that he offended the London propa-
ganda office.
There is no doubt where American
sympathies are in this war. Nonethe-
less, the State Department and the
White House have no right to ex-
pect that our representatives should
plead a special cause.


What Chance
Has Britain?
(Associated Press Staff writer)
England's "zero hour" for the
first invasion that has threatened
her in centuries seems near at hand;
but her chances of repelling it as she
flung back Spain's "Great Armada"
in 1588 are obscured to the outside
world because of unknown factors.
Now, as against Spain long ago,
sea power is Britain's mainsalliance
for defense, but in addition she must
now retain mastery of the air in
her home waters to survive. Without
it her sea fleet might be helpless to
prevent an invader from setting
foot in England.
For days Britain's ability to defend
herself in the air has been put to
a terrific test by German bombers
crossing the channel in endless and
increasing waves. Yet the results,
upon which England's fate rests,
are masked by utter uncertainty.
Both sides claim decisive victory in
each engagment.
The Germans say they have down-
ed as many as five British aircraft
for every Nazi plane lost. Britain
counters with contentions that the
loss ratio is four-to-one in British
favor. The aggregate of admitted
losses by both sides is relatively
negligible in comparison to the thou-
sands of ships engaged.
Which version is correct? Which
side is altering the grim statistics
of that furious and continuing bat-
tle of the air, much of which is
fought beyond the range of vision
of earth-bound spectators? Is it a
fact a standoff in losses, without
decisive significance?
The outcome of the battle of Bri-
tain would be clearly indicated to
anyone with accurate knowledge of
the real air casualties or the actual
damage wrought by the Nazi bombs.
Lacking that, distant observers can
only fall back on the logic of the
situation. It tends more strongly to
sustain the British accounting than
the German, so far as air casual-
ties are concerned.
Britain's Fleet Agile
Britain's air fleet, upon which she
must rely to beat back or deflect
the Nazi air attack, is wholly com-
posed of swift, agile ships, a major-
ity of them probably carrying only
one or two men. The German on-
slought, to be effective, must be
largely that of heavy and light
bombers, vulnerable to fighter attack.
Since four and five-man crews
are required for Nazi bombers, the
destruction of one of these craft
means a larger loss of personnel
than occurs when a fighter comes to
grief. It also is still an accepted
military axiom that the offensive
usually is more costly than the de-
fensive, even in the air.
Dogy Ban Relaxation
Asked InLansing
LANSING, Aug. 13.-(P)-Offi-
cials of the Michigan United Conser-
vation Clubs appealed to the State
today to soften a blanket dog quar-
antine which forbids training or us-
ing hunting dogs in 42 Lower Mich-
igan counties.
Prof. Paul A. Herbert of Michigan
State College, Association president,
and Harry R. Gaines, of Grand Rap-
ids, executive secretary, asked that
either the quarantine be lifted for
an indefinite, experimental period, or
that it be removed in counties which

Final Examination, Education B
195ds "State and National Trends in
Education," the 4 o'clock lecture
course, will be held in University
High School Auditorium today
August 14. The lecture origin-
ally scheduled for that day, "Group
Psychological Aspects in Education"
by Dr. Fritz Redl, was given on July
Prof. C. O. Davis
School of Education
Internal Combusion Engine In-
stitute Lectures, "Lubricants," by Mr.
E. W. Upham, Chrysler Corporation;
and "Producer-Gas Applied to Ve-
hicles," by Mr. R. T. Mees, Cater-
pillar Tractor Company, will be given
at 9 a.m. Saturday, August 17, in
the Amphitheatre of the Rackham
Choral Union Concerts. The Uni-
versity Musical Society announces
the following concerts in the Sixty-
Second Annual Choral Union Ser-
ies for 1940-41:
Wednesday, October 23-Marian
Anderson, Contralto.
Thursday, November 7-Rudolf
Serkin, Pianist.
Monday, November 18-Don Cos-
sack Chorus, Serge Jaroff, Conduc-
Sunday, November 24-New York
Philharmonic Symphony Orchestra,
John Barbirolli, Conductor. (Inter-
national broadcast over facilities of
the Columbia Broadcasting System.)
Tuesday, December 3- Richard
Bonelli, Baritone.
Wednesday, December 11-Boston
Symphony, Serge Koussevitsky, Con-
Wednesday, January 15-Vladimir
Horowitz, Pianist.
Tuesday, January 28-Minneapolis
Symphony Orchestra, Dimitri Mit-
ropoulos, Conductor.
Thursday, February 20-Budapest
String Quartet.
Tuesday, March 4-Georges Enes-
co, Violinist.
Season tickets, $12.00, $10.00, $8.-
00, $6.00. Subscribers of record to
Patrons' tickets ($12.00) for the 1940
May Festival may retain their seat
locations provided that their orders
with remittances to cover are receiv-
ed not later than September 1. All
other orders will be filed, and filled
in sequence beginning September 1.
Please make remittances payable
to University Musical Society, and
mail to Charles A. Sink, President,
Burton Tower, Ann Arbor.
The Automobile Regulation will be
lifted for all students on Friday, Au-
gust 16, at 12 noon.
Office of the' Dean of Students
The final examination schedule
as published in the complete an-
nouncement is incorrect. Below is the
correct schedule.
Hour of
Recitation 8 9 10 11
Time of Thurs. Fri. Thurs. Fri.
Examination 8-10 810 2-4 2-4
Hour of All other
Recitation 1 2 3 hours
Time of Thurs. Thurs. Fri. Fri.
Examination 4-6 10-12 10-12 4-6
Library Service After Summer Ses-
sion: In the intereum between the
close of the summer session and the
opening of the fall session the Gen-
eral Library will be closed evenings,
but service will be maintained in the
Main Reading Room, the Periodical
Reading Room, the Medical Reading
Room, and the Circulation Depart-
ment from 8 aim. to 6 p.m., with the
exception of the period from August
26 to September 2, when the building
is closed completely while extensive
repairs are in progress. Graduate
Reading Rooms and Study Halls both
within and outside of the main build-
ing will be closed until the opening
of the fall semester. All departmental

and collegiate libraries, with the ex-
ception of the Transportation Lib-
rary, are also closed during this in-

THE United States has not continued to send
immense quantities of war materials to Ja-
pan for the prosecution of her war on China, but
it may also be said that Japan's aggression has
been largely financed by American money.
The gold and silver purchases of the United
States Treasury have, in large measure, assisted
Japan in her war on the Chinese people and in
the financing of Japan's so-called "New Order in
East Asia." Many millions of dollars worth of
gold and silver have been converted into dollar
balances here and used to finance purchases of
arms and raw materials from the United States
and Europe, principally from the United States.
Not only have we furinshed Japan with the
means with which to buy these war materials,
but we have furnished them in unlimited quan-
tities, even to the detriment of our own defense
requirements. These war materials, in 1939, con-
stituted over 70 per cent of all our exports to
We have aided Japan by our gold and silver
buying policies, by our wheat and cotton subsi-
dies, by the acceptance of the Japanese valuation
of cotton goods shipped into this country, and in
many other ways.
The injury to China resulted from America's
buying policy which nearly doubled the price of
silver. Though Chinese silver stocks were ac-
cordingly boosted in value, our policy at the
same time raised the value, in China's silver
money. This increase in price made it that much
more difficult to sell China's goods abroad, with
the result that China quickly became a debtor
rather than a creditor nation, a factor which was
largly responsible for China's going off the gold
standard in 1935.
In other words, we not only completely financ-
ed Japan's purchases in this country during this
period, but for the same period we provided them
with a balance of $327,433,000.
WE HAVE also aided Japan in many other
ways, the difference being merely one of de-
gree. Some of the ways are briefly described in
the following paragraphs..
TUnder the stimulus of our cotton export sub-

raw fiber at prices about $7.50 per bale below the
domestic quotations, the American Government
paying the difference.
Anticipating the inaugaration of the American
export program, Japan, as well as other foreign
users of American cotton, reduced their old stock
and replenished their supplies at the reduced
prices offered under the United States subsidy
Not only did we sell this raw cotton to Japan
at reduced prices, but only by our tariff policy
we have been making it possible for the Japanese
to sell us the finished textiles in such a way as
to undermine seriously, eventually, our economic
structure and our standard of living.
N ADDITION to all the items I have already
enumerated, American arms, ammunition and
materials of war can no longer be shipped to
China on American ships, but they can be ship-
ped to Japan. The only ports of entry to China
are now through French and Indo-China and
British Burma, since Japan has occupied all the
Chinese ports, and the Neutrality Act provides
that American ships cannot carry arms to bel-
ligerent ports anywhere in the world. The United
States Maritime Commission also subsidizes
American ships carrying on trade between Se-
attle, Tokyo, and other ports.
The United States grants Japan "most-favor-
ed-nation" treatment, but does not grant the
same to China.
The United States allows tourists to visit the
isle of Japan and spend valuable U. S. dollars
there, but refuses tourist visas to China.
What has all this gracious assistance to Japan
gained us? Has it brought us increased good will
and a more solid basis for confidence? We have
another lesson in Italy. It has been reported that
one of the deciding factors in Mussolini's declar-
ation of war was the fact that the Allies failed to
stick to their original decision to ration his oil
supplies, allowing him to accumulate oil stocks
sufficient for many months.
Is the United States to continue this short-
sighted policy of giving unlimited aid to a nation

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