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p PAGES

Second Class Mail by the Post i
Department, Ottawa —

CHARLOTTETOWN, CANADA FRIDAY, SEPTEMBER \5, 1958

NOT MORE
THAN

FIVE CENTS

ah

Airman's

YONDON (AP) — Marshal of
Royal Air Force Sir John
sesso advised the West Thurs-

Tae not «agg war over the

it 8 oF one RAF chief but
pow retired, said “‘we certainly
ont not to allow our prestige

\ ad the possibility of major war
hang on to an attempt to de-
‘the indefensible.”

a addressing a London

g of the American Cham-

Comm <n said the Matsu

‘Quemoy Islands are indefen-

colony.

ody knows that Hong

could not be defended

amajor attack.

my mind, to go on trying

ain the situation in a tiny

on the doorstep of Com-

Don't Risk War,

View
well we only stay there as long
as Communist China says we

shall, is just as silly as Ameri-
can policy on Formosa.”

SUGGESTS UN ROLE

Slessor suggested Hong Kong be
made an international port under
United Nations guardianship and
given an international force to
keep internal security. -

rmosa, he said, should be put
under United Nations trusteeship
until its people could choose
whether to become an independ-
oe state or part of China.

essor summed up his philos-
ophy this way:

“We have to fight like hell on a
really important issue. But I’m
not for fighting on an issue which
is not vital and which is going to
enlist the uncommitted millions

‘China when we know very’

of Asia against us.”

y

own To

Loyd Matthews of O’Leary
flown to hospital: in Halifax
an R. C. A. F. mercy flight
om Summerside last evening,
receiving serious head in-
when struck by a car
6 p.m.

little lad reportedly was.
by a car proceeding west
iven by Malcolm Buchan-

ed O'Leary Boy

Halifax

ed beside the highway which
forms the main street in the
O'Leary village.

X-ray examination at O’Leary
Hospital revealed severe head
injury which included a fractur-
ed skull, and arrangements were
made to filly the child immedi-
ately to Halifax.

Lioyd Matthews, father of the
injured child. is the postmaster
at O’Leary, and there are. sev-
eral other children in the family.

O'Leary, as the child play-|

Tuck Driver Is

jthat James Nicholson, 63-

@ post mortem examin-
deceased, the late Mr.

JURIES SUSTAINED

tilese ies included: a frac-
tel et Jaw w, fractures of the
S four ribs on the right side,
fractures of the left humer-
aa leg. Damage to the

Ms Per millimeter in both the
pled urine, and 25.9 mil-

millimeter in the gas-
Would indicate, he said,

. | finm this opinion.

nolson Death On Highway

“was not intoxicated.’’ Evidence
introduced later tended to con-

Dake totes Gillis, a bre
TRane te tay ir ici ape

that he had spoken to the }
just as he was about to drive’

away. ‘ ‘

‘was not intoxicated, he said. He
from Charlottetown about 5:00 p.
m. that same day had observed
him taking one drink before sup-
per, but was not present when he
filled the flask found im his pocket
. One unopened quart and ano-
ther containing about four inches
of liquor were still in the house
the next day, Mr. Gillis testified.
As far as-he knew, the deceas-
ed was en route to visit a brother
who resides in Orwell at the time
he bacame involved in the acci-
dent, Mr. Gillis added.

Truck driver, John Lester Mac-

| Leod of Albany, testified that he

had seen the Nicholson car as he
neared the Kinross Road inter-
section. i;

DOING 40 M.P.H.

He was doing about 40 m.p.h at
the time, and realizing that both
vehicles would arrive at the junc-
tion at the same time he had
touched his brakes, and blew the
horn, but ‘the car came right out
in front of me.’”

Attempting to avoid the crash
he had braked hard and swerved
to the left, his truck finally com-
ing to rest on its side in the
ditch of the road:

Mr. MacLeod stated that he was

AWA (CP)—The eonsumer
Index at Aug. 1 equalled
8 previous record high of
With @ half-point increase
hee aaa
tee Se Was the third largest
he he fall of 1956. It brought
Phish, 1 index up to that of
Me 2 Set at last April 1.
Tyr, MIEX is based on 1949
equalling 100.
neguteau of statistics an-
“d Thursday, that the Aug.
tun showed a rise from 124.7
"a ¥ 1, which in percentage
pe mounted to two-fifths to
Per cent,

4
te 1, 1957, the index stood

g latest increase equalled a
t we Nise at June 1 last year
bes €xceeded by a rise of

€nths of a point at Aug. 1

Py? 2" 2nd of four-fifths of a
T™ & Oct. 1, 1956 ae

VS suicur Ruse

Breas Teentage terms, the in-
Ph of thi tween July 1 and Aug.
fi, Eg amounted to two-
ane € percentage point.
span’ food prices were mainly
sm sible,
Cent,

q
a

index went up by one

Onsumer Price Index Goes
To Equal Previous Top

lowing the usual seasonal pattern,

Shelter costs and miscellaneous
expenses also went up, while
clothing and household operating
costs eased slightly.

The index of average wages and
salaries at June 1—latest. avail-
able—rose to 164.7 from 168.8 a
month earlier, compared with
157.9 at June 1, 1957. This index
is based on (1949 wage levels
equalling 100. °

VEGETABLES DOWN

In |foods, between July 1 and
Aug. 1 most fresh vegetables
went down, but fresh tomatoes
went up instead of dropping as
usual. Apples, imported bananas
and oranges were up. Beef prices
were down slightly. Pork was up.
Eggs were down by four cents a
dozen. i

The shelter index rose from
.138.4 to 139.1, The clothing index
dropped to 109.6 from 109.9.

The household operation index
dropped from 120.6 to 120.5.

On the wholesale index—based
on 1935-39 prices equalling 100—
farm prices at terminal markets
dropped to 212 from 219.5 between
July 25 and Aug. 22.

Animal products dropped from
279.9 from 267.8. The field prod-

from 121.4 to 121.6, fol-

ucts index fell from 159.2 to 156.2.

a brother-in- |

(Continued on Page 2, Col. 5) —

Hotel In
Bermuda
Burning

HAMILTON, Bermuda (CP) —
Fire burned out of control Thurs-
day night in the Bermudiana Ho-
tel, threatening two hours after
it broke out to destroy the multi-
million-dollar structure.

Dozens of guests were evacu-
ated but none was reported in-
jured. However, several firemen
were overcome by smoke.

All the fire brigades in the
colony and’ brigades from two
United States naval bases fought
the blaze as smoke enveloped the
city. : ‘
he fire was said to have
started in the roof. :

Two hours after the start of the
fire the entire front of the hotel
fell victim to the mushrooming
blaze.

The fire was the colony’s big-
gest since the Hamilton Hotel was
destroyed at Christmas in 1955.

Parliament
At A Glance

By THE CANADIAN PRESS

ized at length by the Liberal and
parties. _ :

Finance Minister Fleming re-
enabled effective government d

Opposition Leader Pearson
urged ‘‘a real push” toward con-
vertibility of pound sterling be
‘made at the Commonwealth trade
conference. ed

J. W. Pickersgill (L — Bona-
-vista-Twillingate) led an appeal
for immediate payment of an ad-
ditional $8,000,000 in annual. fed-
eral aid to. Newfoundland.

The Senate amended the new
broadcasting act to make it more
difficult for the government to
fire the two top officers of the
publicly-owned CBC.

Five Married
Teen-Age Girls'
Held In Assault |

LYNN, Mass. (AP) ;— Five
married teen-age girls pleaded
not guilty Thursday to beating
and shearing the hair of Rose
Marie Gemma, 17, while she was
baby-sitting Sunday night.

Judge S. William B—Landergan
set bail at $300 each and re-
tmanded them until Sept. 11. All
were changed with assault and
battery. a

{n court were Mrs. Patricia
Lareaux, 17, Mrs. Elaine Lowe,
19, Mrs. Nancy Marino, 19, Mrs.
Sheila Malo, 18, and Mrs. Bar-
bara Maribito, 19. 3

Miss Gemma told police she
was minding Mrs. Lareaux’ baby
when the mother and five others
entered the apartment, one ac-
cusing Miss Gemma. of gossiping
about the morals of Mirs. Lareaux.

Miss Gemma said they beat
her, tore her clothes, sheared: off
her hair and smeared her scalp
with fingernail polish.

She also accused them of, de-
stroying the wedding outfit she
was to wear this Saturday in her
marriage to a private in the Mar-
ine Corps. The wedding has been
postponed. ,

Miville Given
Execution Stay

OTTAWA (CP) — Leonard Mi-
ville, sentenced to be hanged
early Friday for slaying an eight-
year-old Gaspe girl, has received
a stay of execution to Oct. 17,
the justice department ‘ said
Thursday. It gave no further de-
tails.

Miville was convicted of slaying
Bertha Labrie at Tourelle, Que.,
July 8 last year.

EARLY RETURN

TEL AVIV (Reuters) — Prem-
ier David Ben - Gurion told a
gathering of North and South
American Jewry Wednesday that
he is expecting ‘an early return
to the homeland’ of 4,000,000

Jews from Communist. countries.

The government's .$6,400,000,000)

Race Violence
Flares Anew In —
British Capital

by SEAGHAN MAYNES
LONDON. (Reuters) — Race
violence broke out anew in Lon-
don Thursday as Britain’s biggest
hatemongers may be: at work
again. : : :
The situation also began: stirr-
London’s Notting: Hill and Pad-
dington’ districts, scenes of big
Negro-white battles, earlier . this
week, had two similar outbreaks
this afternoon. © ¥

of the 8,000,000-member Trades
Union Congress meanwhile con-
demned the violence in a sstate-
ment asserting:

“Evidence is accumulating that
elements which propagated racial
hatred in Britain and E in
pre-war. days are once / more
‘fanning the flamies of violence.”
BLAME MOSLEY

The statement named no
names; Some newspapers have
claimed that. followers of Sir Os-
wald Mosley, Britain’s pre-war
fascist leader, have been whip-
ping up racial trouble. ;

Meanwhile, reports said that
demands here for restrictions on
immigration have caused alarm
in the new West Indies Federa-
tion, source of many non-whites
now living in Britain.

PREMIER. A.W. Matheson wel-
comes two new ministers to his
cabinet. He congratulates Alex A.
Maclssac, fifth district of Queens,
the new minister of welfare and
nault, first district Prince. (far

The representative of the fifth
district of Queens and the repre-

|sentative of the first district of

Prince were sworn in as mem-
bers of Premier A. W. Mathe-
son’s cabinet at ceremonies at
Government house Thursday.

‘Queen’s representative A. A.
MaclIsaac, was named as minis-
ter of welfare and labor while
Prosper A. Arsenault has enter-
ed the cabinet as minister with-
out portfolio.

Lieut. Governor F: Walter
Hyndman officiated at the
swearing in ceremonies, attend-
ed by Premier Matheson and
other members of the cabinet.

TWO RESIGN

At ‘the same time the Premier
announced that two. non-port-
folio members, Hon. E. P. Foley
of Summerside and Hon. For-
rest W. Phillips, a former min-
ister of welfare and labor have
resigned.

left) and Lieutenant-Governer F.
Walter Hyndman look on. Mr,
Arsenault will be minister witi
out portfolio, replacing Hon E.

Foley, Summerside, . who along
h ‘Hon: 4orrest Phillips, has}

ait Named
As Two Others Resign

Mr. Phillips held the welfare
and labor post until some mon-
ths ago. Premier Matheson fill-
ed in in the interim. Mr. Arsen-
ault' succeeds Mr. Foley.

The shuffle leavee, Queens with
four cabinet rs,‘ Kings
with three and Prince two.

From Queen’s are: Hon. Earle
B. MacDonald, provincial’ sec-
retary and treasurer; Hon: Dou-
gald MacKinnon, minister of in-
dustries, natural resources and
fisheries; Hon. Eugene Cullen,
minister of agriculture and Mr.
Maclsaac. -

Kings has Hon. M. L. Bonnell,
minister of health; _ Hon. Keir
Clark. minister of education and
attorney general Matheson.

From Prince there are Hon.
J. George MacKay, minister of
highways and Mr. Arsenault.

Mr. Macisaac, who is 51, ‘is
president and owner of the Is-
Jand' Tobacco Company, Char-

(Continued on Page 2, Col 3)

OTTAWA (CP)—The Liberal op-
position Thursday charged in the
Commons that Canada’s $6,400,-
000,000: conversion loan issue will
boost. interest rates, drive ‘the
country further into debt and
place a heavy burden on tax-
payers for years to come.

The bond issue’ to refund out-
standing Second World War vic.
tory bonds due to mature betwen
1959 and 1963 was described as
Fleming’s Folly by W. H. Me
Millan (L—Welland).

But Finance Minister Fleming,
biting back at his critics, said the
issue has stabilized the Canadian
bond market to the benefit of all
levels of government and private
business in the borrowings they
must undertake. It wotld enable
effective debt management by the
government.

“We have achieved a degree of
stability in the Canadian bond
market which is the envy of the
United States,” he said as he de-
scribed the opposition criticism as
harmful, mischievous and irre-
sponsible.

PEARSON LEADS ATTACK
The attack was led by Opposi-
tion Leader Pearson who said the
bond issue has boosted interest
rates on government borrowings
to their highest point in 25 years,
an abrupt reversal of the Progres-

sive Conservatives’ election cries

against ‘‘tight-money’’ policies of
the former Liberal administra-
tion.

CCF House Leader Hazen Ar.
gue joined the Liberals, describ-
ing the conversion loan as ‘‘a fi-
nancial blunder’ that would pre-
sent ‘‘a very huge windfall to the
big corporations and to the
wealthy of this country.”

The government’s plan was
making it more difficult for the
country to recover from the worst
“depression” Canada had known
since the 1930s.

The opposition’s attack on the
conversion program that started
July 15 and is to end Sept. 15
came during Commons study of
Mr. Fileming’s finance . depart-
ment estimates, one of the last
major items of the session ex-
pected to end today or Saturday.

Perhaps the sharpest critic of
the conversion loan was Mr. Mc-
Millan, a normally  soft-voiced
and genteel debater, who said it
would make the:rich richer and
the poor poorer.

NOSE. TO GRINDSTONE

“Tt will keep the taxpayers’
noses to the grindstone for the
next 25 years,” he said referring
to the 4%-per-cent bonds which
replace the three-per-cent victory
bonds.

Canadians would have to pay
higher income taxes to satisfy the

Liberals Attack Govt
Conversion Bond Issue

a
“‘sreed” of. bond. dealer s—
‘friends of.the government’’ with
whom Mr. Fleming had conferred
a whole weekend at Murray Bay,
Que., just before the conversion
issue was announced.

The higher interest: rates, Mr.
McMillan estimated, would add
$16 a year to each Canadian’s an-
nual income tax bill.

He said one bond dealer had
told him: “‘it’s a hell of a steal.”
This was a reference to the fact

that the cost of converting one

$10,000 threesper-cent bond to a
4,-per-cent issue was $350, ex-
cluding promotion costs.

MISLED THE PUBLIC

Mr. Pearson charged Prime
Minister Diefenbaker misled the
public about the purpose of the
conversion loan in«a national
broadcast July 14.

Mr, Pearson had quoted unof-
ficial estimates that dealers’ com-
missions would cost between $25,-
000,000 and $50,000,000. Mr. Mc-
Millan said some bond dealers
were ‘‘ashamed’’ that their com-
missions. were so big.

Mr. Fleming concluded a
speech of almost two hours .by
saying that succeeding finance
ministers, Liberal or Conservas
tive, would be thankful to the
present government for its ‘‘vi-
sion, courege and realism”’ in un-

dertaking the conversion scheme,

| against crossing it to help the Na-

12-Mile

By ROBERT TUCKMAN
TAIPEI (AP) — Communist
China drew a new sea border
around its coastline Thursday
and warned the United States

tionalist garrison on Quemoy.
The Peiping regime pushed its
territorial limits 12 miles out to
sea along the coastline, and also
declared the new limits applied
to the waters around Formosa,
100 miles off the coast, and the
Pescadores Islands, 30 miles west
of Formosa.

NEWPORT, RI. (AP) — The
United States warned Red China
Thursday that it will move in
with ‘timely and effective’ mil-
itary force — including possible
bombing of the Red Chinese main-
land—if necessary to save the
islands essential to Formosa’s de-
fence.

A top - level statement said
American acquiescence to ‘‘naked
force” would threaten peace
everywhere.

Negro Granted
Indefinite Stay .
Of Execution

MONTGOMERY, Ala. (AiP)—
Jimmy Wilson, the Negro ‘sen-
tenced. to die for robbing an el-
derly white widow, won an in-
definite stay of execution Thurs-
day. He had been scheduled to
die in the electric chair early this

The Alabama State Supreme
Court, which has upheld the death
sentence, said no decision would
son’s request’ for a rehearing.
That automatically put the execu-
tion off, since no condemned man
can be put to. death while his ap-
peal is still in court.

When the Supreme Court rules
‘on the rehearing petition, it can
agree to reconsider its previous
decision or let it stand. If the re-
hearing is denied, a new execu-
tion date will be fixed at that
time.

Wilson, who previously had
was convicted of robbing 82-year-
old Mrs. Estelle Barker of $1.95
at her home in Marion, Ala.,
July 27, 1957.

Under Alabama law, the. rob-
bery offence which is punishable
by death is defined as the taking
of money or goods of value by
force or threat of violence, with
or without’ a. weapon. ,

Mrs. Barker told the trial jury
that Wilson choked her, threat-
ened her life and tried to rape
her,

Storm Is Threat
To Coastal Area

CAMERON, La. (AP) — Cam-
eron Parish, devastated by a
deadly hurricane 15 months ago,
prepared Thursday for possible
evacuation asa tropical storm
threatened the Gulf of Mexico
coast again.

“We're prepared to evacuate
any minute,” said Sheriff O. B.
Carter. “School classes have been
cancelled. We have a fileet of
trucks standing by.”

Hurricane Audrey left more
than 500 dead or missing in the
parish (county) last year.

“It’s raining a little here but
we've had no squalls as. yet,”
Carter said.

Offshore oil operations had been
shut down in the Cameron area
and alll personnel had been moved
ashore. :

N.S. Blueberry
Crop Said Down

PARRSBORO, N.S; (CP)—An
exporting company here predicted
Thursday that Nova Scotia’s 1958
blueberry crop will be the poor-
est in 10 years.

A bulletin issued by the United
States. owned Nova Scotia Blue-
berry Exporters blamed the poor
crop outlook on frost that plagued
lower areas during June. Nova
Scotia usually produces about
5,000,000 pounds of. blueberries.
But this year’s output is expected

served two prison terms for theft, |

President Eisenhower and State
Secretary Dulles issued the state-
ment following a conference last-
ing an hour and 45 minutes at the

tion if Red China makes an all-
out effort to conquer Formosa
and offshore islands. *

Dulles, who flew here from
Washington to discuss what he
called a serious situation in the
Far East, at the same time said
the Communist bombardment of
offshore Quemoy is not necessar-
ily a prelude to invasion. He also
gave Peiping a chance to back off
by saying: se
EARNEST HOPES

“The president and I earnestly
regime will not.again, as in the
case of Korea, defy the basic
principle upon which world order
depends, namely that armed force
should not be used to achieve ter-
ritorial ambitions.”

Thursday’s Eisenhower - Dulles
meeting went the farthest the
U.S. has gone in expressing in-
tentions to halt Communist ag-
gression in the Formosa Straits.

The statement, which LHisen-
hhower authorized Dulles to make,,
did not mention specifically that
US. planes might bomb the Chi-
nese mainland. But a high official
who had a lead role in composing
it said, when asked if the bomb-
ing of concentrations on the main-
fand might be a part of the de-
fence of Formosa:

“Tt might become so, if For-
mosa was attacked or imminently
threatened from those airfields.”

This same spokesman, asked if
Russia wouldn’t come to the aid
of the Chinese Communists if the
US. intervened in the straits, r

.|Mosa but for “the securing

US Ready To Move Necessary
Force Into The Formosa Area

~Reds Draw New

Limit

This new, challenge to the
United States came as an Ameri-
can sabre-jet unit flew in to help
President Chiang Kai-shek’s Na-
tionalists on Formosa, who ai-
ready are equipped with Ameri-
can weapons.

The planes and three American
‘ships steaming here to join the
U.S. 7th Fleet in the Formosa
Strait presumably represent the

‘American aid promised the Na

tionalists' Wednesday by Vice-Ad-
miral Roland M. Smoot, chiet
US. commander here.

Eisenhower, Dulles Confer
| And Then Issue Statement

“They might or might not think
it was expedient to come to the
aid of China under those circume
stances.”

ONLY WHEN NEEDED

The Eisenhower - Dulles state:
ment, stressed that the U.S. gov«
ernment believes the Chinese Na-
tionalists can handle any present
threat to their territory and that

The statement referred te a
Joint resolution of Congress au-
horizingEisen ho wer to.-use
protection of such related posi-
‘tions and territories of that area
now in friendly hands and the
taking of such other measures as
he judges to be required or ap-
propriate in ensuring the defence
of Formosa.”

“The president,” the statement

the employment of the armed
forces of the United States is re-
quired or appropriate in ensuring
the defence of Formosa.

“The president would not, how-
ever, hesitate to make such a
finding if he judged that the cir.
cumstances made this necessary
to accomplish the purposes of the
joint resolution.”

CAUTIOUS ANSWER :

The. spokesman
who held the background briefing
after the statement was issued
gave a cautious reply when asked
about ‘a remark earlier in the
week by the American com-
mander in Formosa that U.S.
help to the Nationalists was on
the way. ,

| The spokesman said there is in
progress a strengthening of existe
ing forces “to make it clear that
there would be reality behind the
statesment”’ of policy announced

KILLED BY SHOVEL ‘
SYDNEY (CP) - Frederick Mil-
ley, 31, of nearby Sydney River
was. killed at Sydney Airport
Thursday when a section of a
steam shovel pinned and crushed
him, He was working on the shov-

el at the time.

OTTAWA (CP) — Steam-filled
toilet bowls and contaminated
water greeted the first employ-
ees in the new $16,200,000 govern-
ment printing bureau, a federal
engineer testified Thursday.

One worker got a “‘hot seat”’
as he tried to use toilet facilities
while another got a faceful of
sewage, said J. M. Kennedy, for-
mer workers department mechan-
cal engineer now heading the
| agriculture department’s building
installations branch.

He told the Commins public ac-
counts committee that excessive
steam from four plant boilers
loosened couplings of a sewage
pipe directly over a 300,000-gallon
drinking water storage tank. The
water became contaminated and
the system had to be shut down
for two weeks while the sewage
pipe was relocated.

He said: also:

1. The air conditioning system
designed by Montreal architect
Ernest Cormier could provide
only one-third the capacity re-
quired. Another $800,000 would be
needed for new installations.

2. Mr. Cormier’s wet ash re-
moval system. in the bureau’s
power plant didn’t work in cold

to total about 3,000,000,

&
at

Steam-Filled Toilet Bowls
Only One Trouble At Bureau

hired to haul the ash away while
a new $25,000 removal system.
was being installed. :
3. In 1955 he had examined the
building and listed 184 defects and
omissions, some of them ‘‘petty’”
but others ‘more serious.’

' While Mr. Kennedy testified un-
der questioning by David Walker
(PC — Toronto Rosedale), Mr.
Cormier sat nearby taking notes
after completing testimony ear-
lier in the day.

SAY FEE LEGAL

Replying to his own lawyes,
Mr. Cormier said he could not
have accepted less than his five.
per-cent architectural fee from
the government. If he had, he
would have been suspended from
practising in Quebec.

As for reports of water in the
bureau’s subterranean depths,
drainage had been provided by
sump pump in one corner of the
foundation. Mr. Cormier said he
didn’t know whether the water
gathered there because of a
nearby creek or because of some
old, unlocked sewage pipes, bul
seepage wasn’t uncommon. H¢
lived on ‘the slopes of Montreal's
Mount Royal and ‘he required g

winter weather, A truck had been:

sump pump to keep water eut of
his basement,