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Weather Forecast Fair and somewhat colder, with low est temperature about 94 degrees to night; tomorrow partly cloudy and slightly warmer. Temperatures today— Highest, 52, at 1 p.m.; lowest, 44, at 7 a m. Full report on Page A-2. Closing New York Markets, Page 14. i_ First in Washington— First in the news coverage that builds public confidence—First in circulation and advertising that reflect public confidence. (A*) Mean* Associated Press. G£fVi TP AT? QJ. Entered as second class matter OOU1 JL JlixA-Xi. 1>0. post offlcef Washington, D..C. WASHINGTON, D. C., TUESDAY, DECEMBER 6, 1938—FORTY-TWO PAGES. *** THREE CENTS. I Franco-German Friendship Pact Signed Ribbentrop to Drive Bargain for Points Outside Treaty BACKGROUND— Carrying out agreement be tween Chancellor Hitler and Premier Daladier at Munich. France and Germany today signed a pact of friendship agree ing to submit future disputes to arbitration. The pact carries in writing Hitler’s often-repeated oral renunciation of a claim on Alsace-Lorraine and that France recognizes that Austria has van ished and that Czecho-Slovakia Sudetenland is now German. B» the Associated Press. PARIS, Dec. 6.—France and Ger many today signed an accord, widely termed a "war renunciation pact,” which pledged them to amicable discussion of difficulties instead of resorting to armed force. The agreement declared the two governments recognised as definite the present boundaries between them and that no French-German territorial question exists. It said the governments were con vinced "pacific relations and good neighborliness" between them con stitute an essential element of "con solidation of the European situa tion" and the maintenance of gen eral peace. Foreign Ministers Georges Bonnet of France and Joachim von Ribben trop of Germany signed the agree ment on cream-colored sheets of vellum containing French and Ger man texts. On his arrival from Berlin unusual guard precautions were taken on be half of Von Ribbentrop, who after signing the accord, began diplo matic conversations with French Statesmen. New Era of Relations. The French government has main tained that the signing of the ac cord, which occurred this afternoon in the famous clock room of the foreign office, would open a new era of European relations favorable to the solution of acute existing prob lems. At the same time France appro priated about $686,000,000 for 1939 military and naval needs, increasing such expenditures $280,000,000 over 1938. The pact provided that France and Germany were resolved "under the reserve of their particular rela tions with third powers to remain in contact on all questions inter esting their two countries and to consult mutually in case future de velopments of these questions should risk leading to international diffi culties.” The three-minute ceremony began at 3:42 p.m. (10:42 am. E. S. T.) end was enacted in the presence of the two foreign ministers. German and French delegations and German and French newspapermen. Arms Not Ruled Out. Circles in close contact with the government warned that the sig nature of the accord should not be taken as an instant and complete modification of the European situa tion. They explained that the agree ment does not rule out a resort to armed force but simply means that when a dispute arises the two par ties will try to settle it through con sultation. These circles held that the great est benefit to be derived from the accord is a general improvement of the atmosphere for dealings between Berlin and Paris. The newspaper Le Temps, which frequently reflects government views, said Italian hopes that the accord would open the door at once to a discussion of the colonial ques tion or a quick solution of the Span ish problem were in vain. To Drive Hard Bargain. The ceremony took place in the same room where, 10 years ago, the Kellog-Briand pact for outlawing war was signed, the famous Clock Room of the foreign office. German informants said Von Ribbentrop expected to drive a hard bargain, however, for specific points outside the treaty. The official French text of the accord read: “Bonnet, minister of foreign af fairs of the French Republic, and Von Ribbentrop, minister of for eign affairs of the German Reich, acting in the name and under the order of their governments, are agreed to what follows, during their meeting in Paris, the 6th of Decem ber, 1938: “The French government and the German government share fully the conviction that pacific relations and good neighborliness between France and Germany constitute one'of the essential elements of the consolida tion of the European situation and of the maintenance of general peace. "The two governments will use in consequence all their strength to as sure the developments in this direc tion of relations between their countries. The two governments state that between their countries no question of a territorial order rests in suspense and they recognize solemnly as the definitive border between their countries such as it is actually established. “The two governments are re solved under the reserve of their particular relations with third pow ers to remain in contact on all questions interesting their two countries and to consult mutually in case the future developments ol tSee PACT, Page A-3.) Paris Editor Dies PARIS, Dec. 6 Paul Morize, 64, editor of the newspaper Le Matin, died yesterday of heart dis ease. He had been connected with the newspaper for 30 years and in addition was the author of nu merous plays and operettas. 4 » President Summons Advisers To Confer on World Situation Ambassadors Wilson, Phillips and Bullitt Among Those Called for Talks By the Associated Press. President Roosevelt today called a midafternoon conference with State Department officials and American diplomats for what was de scribed as a general discussion and exchange of views on the international situation. Those invited to attend were Acting Secretary of State Sumner Welles and Hugh R. Wilson, William Phillips and William C. Bullitt, | Ambassadors, respectively, to Ger many, Italy and France. The conference was arranged shortly after the President arrived from Chapel Hill. N. C. In an ad dress there late yesterday he de clared the United States was "not only the largest and most powerful democracy in the whole world, out many other democracies look to us for leadership that world democracy may survive." Mr. Roosevelt conferred with Am bassadors Wilson and Phillips dur ing his two weeks’ vacation at Warm Springs, Ga„ on the persecution of Jews and other racial and religious minorities in Germany and other totalitarian states. Mr. Bullitt, who interrupted a Bahamas vacation to join the Presi dent during the last few days of his Warm Springs stay, rode back to Washington with Mr. Roosevelt's party. The President also arranged to McKesson & Robbins Security Trading Halted by Suit Stockholder Alleges Waste And Mismanagement, Asking Receiver Bj the Associated Press. HARTFORD. Conn.. Dec. 6.— Trading of all issues of McKesson <fc Robbins securities was held up on the stock exchange today following Federal court action by Vincent W. Dennis of Hartford, a common-stock holder, who alleges waste and mis management. Mr. Dennis, an attorney, yester day filed an equity receivership action against the company. Judge Edwin S. Thomas of the United States District Court here named Attorneys Thomas J. Spellacy, who is also Mayor of Hartford, and Abraham S. Weissman of New Haven as temporary receivers after Mr. Dennis submitted affidavits purporting to substantiate his alle gations concerning the $87,000,000 Maryland Holding Co. The litigation. Mr. Dennis ex plained, in no way reflects upon the solvency of the corporation. Frederick Wingersky. head of the McKesson & Robbins. Inc., legal department, said he believed there was “a grave question” as to the legality of the appointment of two temporary receivers for the cor poration in an equity receivership action. He asserted that McKesson & Robbins had received no advance notice of the action and had had no opportunity to be represented by counsel. The company manufactures and distributes drugs and cosmetics and distills spirits. Wingersky said immediate plans by the company called for a confer ence to determine "on what basis the receivers were appointed.” In the action, Dennis asserted that he holds some 2,000 shares of common stock. He added he was bringing the action in his own be half and that of other stockholders who may join him. The action will require establish ment as fact the allegation that the corporation in its last statement included a non-existent asset. Welch Resigns Post As American U. Coach Gus Welch, athletic director and head football coach at American University for the last two years, today announced that he has re signed his post. Although he said A. U. officials had been informed of his intentions, no public notice had been made until Welch announced his resignation at the weekly luncheon meeting of the Football Writers’ As sociation today. Although he declared that his as sociation with the university had been a pleasant one, Welch inti mated that the school was not ready to support a major football program in the manner which he had been given to understand it would when he accepted the position two years ago. Welch said he hoped he would continue to be in Washington next year, but whether connected with either high school or college he de clined to say. The coach, who was one of the famed Carlisle Indians in the first decade of the century, now operates a boys’ camp near Natural Bridge, Va„ and it is because of his desire to keep his residence here that he would accept another post in the vicinity, he said. Although Welch’s coaching at American University has resulted in no outstanding success on a victory basis, the Indian brought A. U. national publicity when he attempt ed to use a kicking co-ed in one of his games during the 1937 season. After the story circulated all over the country, A. V. officials vetoed the plan. No announcement of Welch's sue cessor has been made. Train Kills Pour COLO. Iowa, Dec. 6 W»).—Four Newton, Iowa, Mexicans were killed last night when the Northwestern Railroad's streamliner City of Den ver plowed into their automobile at a grade crossing here. The train was traveling 92 miles an hour, offi cials said. :•-— day to confer with Secretary of Labor Perkins and Chairman War ren J. Madden of the National Re lations Board. Members of the board have stated they were opposed to any attempt to amend the labor law. Secretary Perkins recently said she saw no reason at this time for changing the act. but this was up to Congress, which created the board. The only other engagements the President set for his first day in Washington in more than two weeks were with Secretary of the Interior Ickes and Secretary of the Treasury Morgenthau. A press conference was scheduled for late this after noon. Rested from two weeks of rough ing it at his "other home” in Georgia, the President paused briefly j in Chapel Hill to reaffirm his belief in a liberal government, alert to I (See ROOSEVELT, Page A-6 > Spending Reduction is Believed Aim Of Treasury Conservative Policy Opposes Views Of Eccles By the Associated Press. A usually well-informed person indicated today that the Treasury was urging a conservative spending policy on President Roosevelt for next year in opposition to the spend i ing views of Chairman Marriner S. ! Eccles of the Federal Reserve Board Secretary Morgenthau hinted at ; this disagreement yesterday when asked about a speech in which Mr : Eccles advised against premature i reduction of Federal expenditures, j "Gov. Eccles is chairman of the j Federal Reserve and I am Secretary I of the Treasury, ’ said the tail ; "gentleman farmer" from New York. Would Cut Deficit. A person close to Mr. Morgenthau, | however, disclosed that the Secre | tary, while not expecting a balanced | budget next year in view of the projected national defense program. I wants to reduce the deficit which is scheduled to reach $4,000,000,000 this fiscal year. The Treasury head and his new tax adviser. Undersecretary John W Hanes, a recent recruit from a j Wall Street brokerage house, are : known to believe that steps to wipe out the deficit would help business i by heightening "confidence.” Say Time Not Ripe. Mr. Eccles, a one-time missionary who became one of the leading bankers of Utah, argued in New York Friday that it was too soon to cut down the extra public pur chasing power created by deficit spending and that a premature ex penditure reduction might cause another business relapse. He said one of the causes of the recession, which started late in 1937, was the sharp decline in the Fed eral deficit after 1936. when the soldiers’ bonus was paid. When national income rises from the 1938 estimate of $65,000,000,000 to about $80,000,000,000, he asserted, the budg et would balance itself through in creased revenue. ■-w Australia to Increase Defense Program B>- the Associated Press. CANBERRA. Australia, Dec. 6.— The government of Premier Joseph Lyons today announced further in crease of Australia’s three-year defense program, spurred by Japa nese imperial expansion and Italy's possible threat to Mediterranean communications with Great Britain. Defense Minister Street said de fense expenditures, already fixed at £63,000,000 i $315,000.000), would be increased by £19,00,000. Last month Australia ordered 50 planes from the United States as part of her program calling for 198 first-line planes, including long range bombers. 14 Known Dead In Nova Scotia Mine Accident Coal Cars Break Away And Crash in Pit; Many Injured BULLETIN. SYDNEY, Nova Scotia. Dec. 6 W’i.—Five of the 45 injured who were brought to the surface in the colliery disaster here today died later in hospitals, bringing the death toll to 19. SYDNEY, Nova Scotia, Dec. 6 (Canadian Press.).—Fourteen men were known to have been killed and many others seriously injured today in Nova Scotia’s worst coal mine disaster in 20 years. Fourteen bodies had been brought to the surface two hours after a string of 26 mine cars carrying 250 workers broke loose and plunged out of control down a mile-long incline into the wall of the main deep. Mine officials said they believed only the 14 were killed, although rescue workers feared more bodies remained in the wreckage at the bottom of the pit. Forty-five seriously injured were brought to the pithead, where doc tors and nurses had gathered. The tragedy occurred in the Prin cess Colliery of the Nova Scotia Steel & Coal Co . as a shift was riding down to work. A haulage cable snapped as the string of cars, known as a riding rake, was going down a 10 pier cent grade. The cars gathered momen tum rapidly, but some men were able to jump in the first few sec onds. Most of these escaped serious injury. Rescue workers brought out the 14 bodies and returned to the pit. They said it was impossible yet to say how many more bodies might still be in the wreckage. Shaft 11 Feet in Diameter. Survivors and miners from other 1 shafts took the lead in rescue work. The roar of the crash echoed through the shafts and slopes that level off at a depth of 1.480 feet, far below the waters of Sydney Harbor. The shaft through which the cars plunged is only 11 feet in diameter and many men who 'were thrown from the cars were seriously nurt. The crowd at the pithead grew rapidly as news of the tragedy I spread. Each time a rescue squad appeared at the mine mouth there was deep silence among the crowd as they waited for the tragic ldenti | flcation of bodies. Rescue Crews Sent Below. All available doctors and nurses i were sent to the pithead. Rescue crews descended as soon as news of the accident reached the surface. The accident, one of the worst in Nova Scoiia s long coal mining his tory, came just a year after three miners had been killed and two in jured in a similar accident in the same colliery. In that case, a run away string of 14 cars struck the group as they were walking back to the surface after their shift was over. Tunisia Demonstration Is Staged by Students Bj the Associated Press. ROME, Dec. 6.—Several hundred Fascist students, after an unsuc cessful attempt to reach the French Embassy, demonstrated in the streets of Rome today in support of Italian claims to French-con trolled Tunisia. The students deserted classrooms of several Rome schools and trooped through the streets shout ing. “Tunisia is ours.” Their path to the French Em bassy was blocked by strong police guards, established on the surround ing streets. Turned back, the students marched to the Palazzo Venezia, where they called for Premier Mussolini and sang Fascist songs. II Duce did not appear. The crowd then made a second attempt to approach the French Embassy and again ran against the adamant police line. The Italian cruiser Raimondo Montecuccoli, which had been in Adriatic waters for the past 15 months, was called back to the Mediterranean today as the Fascist press intensified its demands for French-controlled territory. Summary of Today's Star Page. Page. Amusements, C-4 Obituary ...A-10 Club News, Radio_B-12 B-10-15 Sports _C-l-3 Comics_C-8-9 Society _B-3 Editorials ...A-8 Santa Story C-5 Financial _ A-13 Woman's Page, Lost & Found,C-5 B-14 Foreign. Von Ribbentrop in Paris ready to sign pact. Page A-l France and Germany sign friend ship pact in Paris. Page A-l German good-will plane sinks in Manila. Page A-l Japanese occupy another port, tight ening grip on Canton. Page A-5 National. * Production is resumed at Fisher Body plant. Page A-l Roosevelt Is home pledged to liberal domestic program. Page A-l Morgenthau and Eccles seen differ ing on spending. Page A-l Patent law provision hit by Senator I Borah. Page A-2 I Dies group calls for suggestions on I “Americanism.” Page A-l Friends of Garner to launch presi dential boom. Page A-2 T. V. A. “overlooked'’ Congress edict, Walverton charges. Page A-6 Washington and Vicinity. Retrial of Warring tax case Is or dered. Page B-l * Editoriol ond Comment. Editorials. Page A-8 This and That. Page A-8 Answers to Questions. Page A-8 Letters to The Star. Page A-8 David Lawrence. Page A-9 Alsop and Kintner. Page A-9 G. Gould Lincoln. Page A-9 Jay Franklin. Page A-9 Della Pynchon. Page A-9 Sports. Eastern sector paces U. S. in in creased grid attendance Page C-l T. C. U. leader, "Irish” fifth in final grid vote. Page C-l Griffs sell Pitcher Hogsett as new deal is begun. Page C-l No sweeping Redskin revisions due, says Coach Flaherty. Page C-l Pairings assure brilliant football in big bowl battles. Page C-2 Boyd’s win in fine scrap with Everett marred by referee. Page C-3 Armstrong to enjoy rest after T. K. ©. win over Manfreda. Page C-3 United States vote to back Finland for 1944 Olympics. Page C-3 Miscellany. Vital Statistics. PageB-2 Nature’s Children. Page B-2 City News in Brief. Page B-« Bedtime Story. PageB-8 Cross-Word Puzzle. Page C-8 Letter-Out. Page c-s Winning Contract. Page C-9 Uncle Ray’s Corner. . Page C-9 $ FROM ahd Production Resumed As Fisher Strike Is Settled Workers Ratify Proposal To End Walkout On Conditional Basis BACKGROUND— Homer Martin and General Motors officials announced early Monday morning, after a 12 hour conference, that the strike at Fisher Body Plant No. 1 had been settled. Members of the local, however, only redoubled their pickets until the action was ratified by the local union. Keeping the plant closed Mon day threw additional workers out, for Buick was forced to close because of a body shortage. By the Associated Press. FLINT, Mich., Dec. 6—Production was resumed today at Fisher Body | Co Plant No. 1, which had been 1 shut down since last Friday by a strike involving a wage dispute. Directly or indirectly more than 25.000 workers were affected by the strike as result of the closely geared production machinery of various General Motors Corp. units. The Fisher plant force here, di rectly involved, numbers approxi mately 6 400 men. Buick operations were soon curtailed, however, and 14.000 of their workers became idle. The interruption finally extended yesterday to 600 Fisher Body Co. plant workers in Pontiac. Mich., and today to approximately 5.000 Pontiac Motor Co. men in Pontiac. All except the Pontiac Motor Co. workers were expected back on the job today as Fisher Body No. 1 swung into near normal operation. At the Fisher plant superintend ent's office it was estimated it would require about 15 hours of production here to put Pontiac back in opera tion. Pontiac to Resume. “We expect to be operating at normal by the time our night force goes on this afternoon,” said a : spokesman for Fisher No. 1 man | agement. “By tomorrow Pontiac Motor Co. should be able to resume.” At 9:30 a m. it was announced | that the Fisher No. 1 plant was operating at 90 per cent of normal and that Buick was operating normally. A settlement of the strike was ratified on a conditional basis at a meeting of Local No. 581, United Auto Workers of America (C. I. O ), which continued for a lengthy period last night. The local de : cided to call a new strike if the present wage dispute is not settled by Friday. Three Hours of Argument. A settlement was announced Sun day night, subject to ratification by the membership of the Flint local Monday night. The ratification came in conditional form after three hours of argument within the local. Some complaint was voiced be cause officers of the local had not been permitted to 4ake part in the negotiations with General Motors Corp. officials. International U. A. W officers, including President Homer Martin, spoke for the union. Mr. Martin said the dispute in volved the question of changing from piece-rate scale to day-wage rates in certain departments. He added: “The union recognizes that any change from piece work to day work must be made on a sound and equi table basis and that it is necessary to negotiate an understanding as to the method and process of making these changes.” Will Appeal at Once. Mr. Martin said the union’s agree ment with the corporation provided for appeal from decisions by plant managers to higher officials of Gen eral Motors and that a “misunder standing” on this point caused the strike. “This particular case wiU be appealed immediately,” he said. Negotiations were to start Wed nesday. It was understood pickets would be withdrawn at once at the Fisher pladt here. Fire Hits Resort Town OAK BLUFFS, Mass.. Dec. « UP).—Fire whipped by a strong east wind consumed three business sec tion buildings here today. Firemen reared the loss might run as nigh as $250,000. The four-story Island House, one Of the oldest hostelries on the Island, off Cape Cod, was slightly damaged by fire and water. 1 Nazi Good-V/ill Plane Sinks in Manila Harbor By the Associated Press. MANILA, Dec. 6.—Unable to hold altitude after three of its four motors stalled, the big oerman Condor monoplane made a forced landing and sank in Manila Harbor today as it neared the end of a non-stop flight from Tokio. Its crew of five and one passenger were uninjured As the plane began settling in shallow water about 200 feet off shore the six men clambered out on the wing and were rescued by natives in small boats. Heinz Junge. director of the Focke Wulff airplane plant and passenger aboard the ship which recently completed a good-will flight from Berlin to Tokio, was brought to Manila in a commercial amphibian plane sent to the scene. He refused to discuss the mishap except to say the plane encountered fuel line trouble. The plane had flown from Tokio . in 10 hours and 53 minutes. The German Condor monoplane which sank in Manila Harbor today was of the same four-motored type as the Brandenburg, which flew from Berlin to New York and return last August. Pour of the Condor crew were aboard the Brandenburg on the United States trip. They are Alfred Henke. Rudolf von Moreau, Paul Dierberg and Wal ter Kober. The name of the fifth, a mechanic, was not announced when the plane left Berlin for the Tokio hop—an 8.375-mile good-will journey which started November 28 and ended November 30 with an elapsed time of 46 hours and 41 minutes. The journey, returning a visit of the Japanese plane Divine Wind to Germany in April, 1937, was called a manifestation of the cultural bond between Japan and Germany. —--«. London Detectives Guard Prince on Way Home P? the Associated Press. LONDON, Dec. 6 —A strong squad of Scotland Yard detectives saw Prince Paul of Yugoslavia off for home today. At the same time, a spokesman at the yard denied flatly that the regent had cut short his visit in London because of a reported warn ing that Croatian terrorists wqre en route from New York to “get'’ him. A London newspaper said last night Scotland Yard had been warned by “Washington police” that a band of Croatian terrorists were on their way to London un der oath to assassinate Prince Paul. The yard's spokesman said the regent s plans to depart today had been made some time ago. More than a half dozen spe cial Scotland Yard inspectors and numerous railway police and detec tives were at Victoria Station when the prince departed on a boat train. It was said at the offices of J. Edgar Hoover, director of the Federal Bureau of Investigation, that G-men have no knowledge of reported warnings to Sootland Yard about a plot on the life of Prince Paul of Yugoslavia. There has been no communication between the F. B. I. and the London police agency regarding such a matter, it was stated. The Metropolitan Police Department also denied any know ledge of the case. Paul Y. Anderson, Writer, Dies After Collapse in Home 'I'm Going to End It All/ He Had Told Her, Maid Asserts Paul Y. Anderson. 45. widely known Washington newspaper cor respondent and magazine writer, died early today in Emergency Hos pital shortly after he was taken there by Sam A. O'Neal, an associ ate in the St. Louis Star-Times bureau here, who was called to the Anderson home at 4980 Quebec street N.W. by an alarmed maid. Mr. O'Neal said Mr. Anderson evi dently had taken a fatal dose of sleeping tablets after telling a maid, Ollie Fields, "I'm going to end it all. my usefulness is at an end." Mr. O'Neal said the maid told him she was awakened at 2 a m. by Mr. Anderson knocking on the door of her room and saying. "I just wanted to tell you good-by.” The maid told Mr. O'Neal that Mr. Anderson then went to the garage and when she reached there he was sitting in the car with the motor running and a hose extend ing from the exhaust pipe through the window. She persuaded him to return to the house, where he went to the library. From an adjoining lavatory, she told Mr. O'Neal, Mr. Anderson took some tablets and then rushed upstairs to another room and took some more from another bottle. The maid then called Mr. O'Neal, who rushed Mr. Anderson to the hospital, where he died at 3:50 o'clock. The maid said Mr. Anderson ar rived home at 9 o'clock and went to his room. Mrs. Anderson was away, visiting in Chicago, and at the time there was no one else in the house but the maid. End of Brilliant Career. Mr. Anderson's death ended a long and brilliant career in newspaper work here and in St. Louis. He represented the St. Louis Post Dispatch here for 23 years until last year. Since February 28. 1937, he has been with the St. Louis Star Times. He was the 1928 winner of the Pulitzer prize for reportorial work in connection with his coverage of the oil scandals. In 1924, he had been publicly praised by the late Senator Walsh of Montana for public services in connection with the Teapot Dome exposures. Mr. Anderson covered many im portant stories, including the Loeb Leopold case in Chicago in 1924. the La Follette campaign in that same year, the Scopes trial at Day ton, Tenn., in 1925, and more re cently the La Follette committee's civil liberties investigation. At early as 1917 he was commend ed by a congressional committee in connection with his work in the race riots in St. Louis. In 1926 evidence (See”ANDERSON, Page”A~1oT) Berengaria Makes Last Voyage—to Scrapyard Bj the Associated Press. SOUTHAMPTON, England. Dec. 6.—The liner Berengaria, once one of the finest and largest ships afloat, today sailed on her last voyage—to the scrapyard at Jarrow. All shipping in Southampton docks joined in a mournful salute as the 52,101-ton liner'put out to sea. Lavish Program to Be on Air Tonight as Part of Yule Drive A lavish program or radio enter tainment will be put on the air to night over Station WMAL as part of the Christmas campaign being conducted by The Star, Warner Bros, and the National Broadcast ing Co. The broadcast begins at 8 o’clock and closes at 8:30. The program will come from both the WMAL studios in the Trans Lux Building and from the Shore ham Hotel. Songs, orchestra music and specialty musical numbers will feature the show, and during it Mrs. Walter B. Fry, president of the District Congress of Parents and Teachers, will explain the pur pose of the Christmas campaign. Mrs. Fry’s organization and the Metropolitan Police Department are the chief distributing agencies for the gifts collected during the campaign, whi is designed to in sure toys, food and clothing for all the city's needy families on Christ mas Day. Tonight’s program opens with t£e music of Maxim Lowe’s Shoreham Hotel Orchestra, Bamee directing. Then from the studio will come the voice of Dick Foran, the singing cowboy, now on the Earle Theater stage, who will sing the number he made famous, "My Little Buckaroo.” Johnny Broderick, Earle Theater [Pianist, will play “Trinklets” and I “The World Is Waiting for the Sun rise.” Earl Lawrence, a Rudy Val lee protege, will sing from the Shoreham. The "Noteblenders,” a quartet in the "Secret Ambitions” act at the Earle, will present three numbers. Bill Crago. announcer on the Washington N. B. G. staff and, this (See CAMPAIGN, Page A-5.) * Incentive Tax Is Opposed By Edsel Ford “Favors High Wages As Best Profit Sharing Plan By the Associated Press. Edsel Ford told the Senate Profit Sharing Committee today that a reduction in Federal taxation would be “as good an incentive" to busi ness as anything the Government could do. The slender son of Henry Ford testified he believed incentive tax ation to encourage plant expansion, purchase of equipment and regular ization of employment “might lead to consequences difficult to handle." “You feel, then.” said Senator Vandenberg, Republican, of Michi gan. “that incentive taxation might create more problems than we could solve by it?" “I feel that is right,” Mr. Ford replied quietly. High Wages Favored. He said the Ford Motor Co. be lieved in profit-sharing through high wages. He added that he be lieved the high wage scale had pre vented any "serious" labor troubles in Ford plants. “We try to be more than fair to our employes," Mr. Ford said. "We try to pay just as high wages as we can and produce at as low a cost as possible, thus creating volume pro duction." Mr. Ford said his company had paid $77,565,000 in profit sharing, in excess of the established wage scale for the motor industry, from 1914 to 1919. inclusive. In 1920. he ex plained. the company changed to a system of cash bonuses, paying out $6,750,000 in bonuses for 1919 and 1920. The company instituted a $6-a day wage scale in 1920. The Ford Co. now maintains. Mr. Ford said, an investment plan by which all employes may deposit a percentage of their wages. They re ceive a guaranteed interest of 4'2 per cent, plus special returns paid semi-annually. These special re turns. the witness said, have reached as high as 10 per cent. Since 1920 employes have received from this source a total of $2T.800 - 000. of which $15,500,000 was in guaranteed interest and $12,300,000 in special returns. Mr. Ford re lated. Believed Less Paternalistic. He said he believed the company's , system of sharing profits through | high wages was more simplified. i more workable and less paternalistic : than other profit-sharing plans. “We have paid our men as well as we could and have felt that they were more able fo take care of their own needs than we were under some sort of. a paternalistic system,” Mr. Ford said in explain ing why the company had estab lished no hospitalization plan such as put into effect in other industries. He said the company began pay- ' ing its employes wages in excess of the going rate in the motor In dustry when it instituted a $5-a day minimum in 1914. He said the going rate of 34 cents an hour was raised an additional 284 cents an hour to make the scale $5 for an eight-hour day. In 1920. he said, the Ford com pany advanced its minimum wage to $6 a day, where it has remained most of the time since, except that it was reduced to $4 in the depths of the business depression. Williard H. Dow, president of the Dow Chemical Co.. Midland. Mich., also opposed incentive taxation to encourage profit-sharing. “We would hate to see that become the beginning of a Government trend of telling business how to de velop a bonus or profit-sharing sys tem.” Mr. Dow said. “Each of these profit-sharing plans mast fit the in dustry itr serves. I don't know that I understand how Government could : put in a broad form of incentive taxation without dictating the form ula to be conformed to.” j Declared “Psychological Handicap.” L. M. Giannini. San Francisco banker, testified yesterday that he I believed present Government tax | policies were offering a "psycholog | ical handicap" to business expan j sion. The president of the Bank of i America National Trust & Savings ! Association urged their revision. Mr. Giannini and other members of the powerful San Francisco banking family have supported most New Deal policies. Talking to reporters after his tes timony, Mr. Giannini said he saw little chance of any reduction in taxes in the near future. “We’ve got to have enough taxes to balance the budget,” he declared. “I believe that it can be done under present rates when the national in come reaches $85,000,000,000 or $90, 000,000,000 a year. There is no use talking about reducing taxes with the present problems of Govern ment financing confronting us.” Mr. Giannini said he believed some tax credit should be given to business firms which share their profits with employes or set aside a portion of them for plant expan sion. This might be done by giving a credit on the amount set aside, he said. Declaring he did not want to ap pear to be unduly critical of ad ministration policies, the banker said he felt present high tax rates killed individual initiative in business, par ticularly in the high income brackets. Chinese Ambassador Suffers From Fatigue the Associated Press. NEW YORK, Dec. 6-Dr. Hu Shih. Chinese Ambassador to the United States, was resting today at the Harkness Pavilion of the Pres byterian Medical Center, where he was taken last night from the Hotel Ambassador. A spokesman for Dr. Shih said he was suffering from fatigue. Ha was expected to return to Wash ington after a few days’ rest. %