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TIME BOMB IS FOUND ‘ ABOARD BIG U. s.

New FreigII{Ral:es Hearing Held At Ottaw;

Deficit Forecast In N. S. Budget Speech; Sales Tax Hinted At‘

Resolution lie lobster ‘Season Being Considered

OTTAWA, April 1'] —- (Special) —I-‘isheries Minister Mayhew said in the Commons this afternoon that’his department is considering a recolaltion from the Prince Ed- ward Island Fisheries Federation seeking that the opening of the lobster season be advanced from May 1 this year to April 29. The statement was in reply to a ques- tion asked by W. Chester S. Mc- Lure. Progressive Conservative member for Queen's.

Mr. Mayhew expected to give a definite answer to the question to- morrow or on Wednesday.

During the question period in the House of Commons. Mr. Mc- Lure asked Resources and De- velopment Minister Winters if he had received a petition from the residents of Crapaud and vicinity asking‘ for consideration in the location of the Prince Edward Is- land section of the Trans-Canada highway. Mr. Winter's reply was in the negative.

‘JEWISH CEMETERY . DESECIATED

FRANKFURT. Germany. April l7 -(AP)-German police today re- ported that a Jewish cemetery at Goettingen was desecrated during the week-end. It was the second reported case in three days of vandalinn in Jewish cemeteries in West Germany. Jewish gravestanes at Pra.nflurt' were overturned last Friday night. Goettingcn is a uni- versity town in the British cone. its university is said to have a large number of right-wing stu-

dents. Goettingcn police said 15 gr:-svcatones in the Jewish cemet- ery were overturned and damaged.

I-IAiLl1"AX. April l7 —(CP) — Premier Angus L. Macdonald to- NBM brought down Nova Scotias 1950 Wdset. forecastins the first deficit in more than a decade.

' He predicted a deficit of 31.8%,. 497 for the 16 months ending March 3-1. 1951.

He said. too. the Province may have to resort to a sales tax if revenue is to keep up with mount- ing expenditure.

Budget is Surprise

The Premier. who is also Pro- vincial Treasurer, gave no names that he would introduce his bud- get tonight. Earlier in the session. he had said that no increases in revenue could be expected without new taxation.

l-la forecast total expenditures for the fiscal year of $49,490.906.9Zl with revenues of 347.655.609.10.

Revenues for the last fiscal year ——the ill months ending Nov. 30. 19-i9—'wera 03.404.211.03 with ex- penditures of $33.381,l65..'i3. leaving a surplus of $112,355.70.

The estimates were larger be- cause the current fiscal year will run for 16 months. the result of a move to change the fiscal year from Dec 1-Nov. 30 to April 1- March 31. The current fiscal year will run from Dec. 1. 1949. to March 31. 1951. ’

Mr. Macdonald said that one deficit "out of 11 years can not, justly, be regarded as alarming."

But “it requires no great mathe- matical sklll to see that if the present relation is maintained be- tween lncreases in revenue and increases in expenditure. we shall be faced in mid and 195:1 with even larger deficits than we show for this year."

No new taxes were announced.

consider sales Tax ’But "we gave very considerable thought to the imposition of a sales tax.” - __?____,_______.__._ .Continued on page 5. Col. 4

Reds Suffer Heavy Loss In Invasion Of Hainan Island; Battle Continues

By Spencer Moons TAIPEI. Mormon. April l7 - (AP)—.A nunvber -of C-. onlst troops got ashore on ‘ Hainan Is- land today after losing more than half their force in a night battle at sea. official Chinese National dispatches stated.

Fighting was still in progress to- night west of Holhow. the island capital. but most oi’ the invaders hliléo been killed. the accounts sa .

..'rha Nationaltstsreportedthe in- vaslon force of more than

203 the latest drive.

Junks.

Both sides had been predicting a full-scale Communist attempt to conquer I-lslnan. second on] to mimosa in importance as a at- ionalist stronghold.

The Reds had failed in a half- dozen small stabs at I-lainan in the last seven weeks. The biggest was Allrll 1. when they got ashore on five beaches. but the Nationalists said they were wiped out. with 5.- 000 killed and 2.000 captured.

Immediately prior to news of the Nationalist

tanks were intercepted sundgy press was full of reports of Red night in the in-mile-wide strait preparations for a his effort separctlltg the island from the against the 13.500-square-mile la- Lulchow peninsula of the main- ‘Ind

land.

Although no troop figures were given. the number of iunks would imply a force of at least 3,000 men.

The Nationalists said their navy rank more than half the Red

Coming Events

"Mall vour Films to Garnhum Photo Studio. Charlottetown.

"Call 1008-.) Evenings for Dry Wood slabs.

"Farmers now bookin seeds. Rush order. at Boyle.

Clover an a

“Dance Ovary Tuesday night in St. Peter's Legion Hall. curl Peters Otchtctfl. '

"Order Deeds from your Shut-Oafn Hill at It hero- on.

“Laughs _ also -Abbott and condo in us same" It Ilaaocnald Bros. Theatre tonight. flu Seth! and lboel. -

m I ' ‘flaw-hwy ‘flicks. order 9; for thy. now 32 cents “Oh ‘‘''..’,‘..':.‘‘‘’''‘'c'l'....'’‘'a'‘‘‘.....‘‘é’i‘y'‘

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Thcse reports depicted Luichcvw peninsula as swarming with troops while the Reds oom- msndeered everything that would float. from small wooden boats to ocean-going ‘ships.

" ’ advisers were said to be in a prominent. role, but there was no supporting evidence of this.

the

Commissioners Reserve Judgment -

OTTAWA. April 17-—(CP)—Act- lng with unprecedented speed, the railways and seven Provinces to- day fought out the issue of a new freight-rate increase in four hours.

The Board of Transport Com- missioners reserved decision after:

1. The railways argued they were entitled to another 3.4- per-cent IIICPEHIG IDECBUSQ OI I 37,600,000 "error" made by the Board in its last rate decis- ion March 1. .

2. The opposing Provinces- all except, Ontario, Quebec and Newfoundland— contended no such error had been made and. anyway. the 16-per-cent boost -awarded March 1 was too high. With a relatively-small amount

at stake—the $'l.600.000—ir was the moat-quickly ended scrap in the long series of battles over rate in- creases.

The only evidence was presented by one railway witness. and the remainder of the four hours taken up by capsule-type arguments de- livered by eight lawyers for the Provinces and the railways.

The railway claim for a further increase was based on the fact that in its March 1 judgment the Board had found that tho Cana- dian Pacific Railway-—"yardstlck" line for rates—had a 1949 financial "deficiency" of $29,971,000 but had awarded an increase only large enough to bring in $22,381,000 on the basis of 1949 traffic volume.

That increase was 16 per cent. a reduction from the 20-per-cent which was being sought by the carriers in an application filed in 1948. Today. the railways were ask- ing that this increase be boosted to the full requested 20 per cent. which would amount to 3.4 per cent over rates now in effect.

At that. said the railvvhyl. this would fail by about 81.000000 to meet the "deficiency" which the Board had found.

While the railways contended to- day the board was under the duty of setting rates high enough to cover the "deflciency". counsel for the Provinces were unanimous in declaring there was no such ob- ligation.

The so-called deficiency was worked out. on a formula laid down by the Board. which sets out what the C.P.l't. should have in operation income to meet re- quiremenis for fixed charges. divl-_ dends and surplus from rail in- come.

C. F. H. Carson. counsel for the Railway Association of Canada and the C.P.lt.. said that if the board's "error" were not corrected. the "most grave lnjustic " would be done the railways.

Wilson E. Mciiean. Manitoba counsel. argued that the compan- lea actually had got more than they were entitled to in the 16- per cent judgment.

Disabled Ship Towed To Halifax

HALIFAX. April 17 — (CP)-A chance shift in the wind saved the disabled 2.861-ton freighter Federal Trader from possible disaster on the treacherous. shifting sands of Sable Island which have already’ claimed more than 200 vessels.

"We were only 25 miles from the island and heading for danger

when the weather cleared and the '

wind changed." Capt. Donald Butterwick of Sydney. N. 8.. told reporters hers lonlght. His ship was towed into port by the ocean- going tug Foundation Vera after drlfting 19 1-2 hlhli

Crippled Boy Remanded On. Manslaughter Charge

CORNWALL. Ont, April 17 — (CP) — Charged with manslaugh- ter ll-year-old Maurice Leger will appear in court April 24 in con- nection with the fatal stabbing of his father.

The freckle-faced crippled boy

,was arraigned today before Juve- nils Judge T. C. larger-on. He was not asfld to plead. V The boy wal into a police ahtiois about two locks from his house Saturday night. He told the deck sergeant. David Ke- Craohn. that be had fought with his father and had "stabbed a butcher lotto into him."

Police found the father. Morris

- Lager. 87. dead in an upstairs had-

room. He had been stabbed in the loft side with an eight-inch. dagger-type butcher knife. they

’.'“':l.IO boy's mother said the mo- hlcg ended aeva-al arc of do- nisstlo strife. Ills as d the fail!!- '*‘° ."'.‘.'. .;':"‘ .‘li“l£"'....'.“::; vv 0 mm . ‘Its boy. whose last

_...—.....—___..._..__.._ leg has been deformed since birth. left his supper unfinished and went to a neighbors home.

The father left for tho mm‘. bor's place and returned with Maurice.

"As soon as they I“ ll the house he started at the again." said Mrs. laces. “la V t

the boy and they were all over the floor. I tore ms

was choking lfaurica again. 2 got them apart. "Then my husband said to me:

‘it you don't leave me alone. f1l kill him.’ I told the boy to get out. Before he could get away, his father went after him again.

“I didn't see what happened then. But my husband can I ter- rlbls groan and grabbed his side. ‘i saw that be had been stabbed.

Th be u d fsllmlust due. :1: ‘d‘id'n't talI.~lIst gasped‘ for

l.f.o was dead when a doctor ar- rived.

PILOTED MISSING PLANE

Lt. Howard W. Seechaf (left) and Lt. John H. Fette were co- pilot and pilot respectively of the U. S. Navy Privateer which is missing in the Baltic area. This

plane. carrying a crew of ten. is presumably the one the Russians say fired on a Soviet fighter over Latvia- Lt. Seechaf is from Ar- lington, Va.. and Lt. I-‘ette from Connollsville, P.A.

Labor Ministers Prepare For Snap Vote In_ House

U. S. chides Russia With Lack Of calmness

WASHINGTON. April 17 — (AP) — The United States to- day chided Russia for lack of "calmness and restraint" in dealing with the alleged clash of American and Soviet planes.

The criticism was in a formal announcement that the U.S. will delay its reply to Moscow's note until all pos- sible information about the incident can be collected and “the true facts determined by calm and thorough appraisal."

The statement said:

“This Government believes that this careful approach is- the only proper one in an im- portant and delicate matter of international relations and re- grets that the Soviet Govern- ment has failed to show equal calmness and restraint."

Russia protested last Tues- day that April 8 an American plane of the B-29 type flew over Soviet Latvia. It said the plane fired on a Russian plane ~ and that the Soviet aircraft returned the fire. V

New Drug Cures Many Types Of . ' Cancer in Rats

ATLANTIC CITY. April 1'7 — (AP) —- A potent new drug quickly cures many kinds of cancer in rats. two scientists reported today,

The cancers disappear compuls- ly in two to four weeks. The drug knocked out so to loo per cent of various types of cancers in tests on 250 rats. said In‘. xanernatsll sugiur. and Dr. C. cheater Stock of the Sloan-Kettering Institute for cancer Research. New York.

The described the new drug. named exam. to the American Association for canes Research.

Whether it will work against human cancers la._not yet known, they said.

It did not affect breast cancers growing spontaneously in the an- imals. It was effective only against certain types of tumors.

Once the cancer was cured. the animal couldn't be given that kind

ti cancer again. It because im- IINIIIO. cm Severely

Inl-«IIv_r_I_-sky

GOOSE BAY. Labrador. April 17 -—(CP)- Two-ysar-old Carolyn Kaayes. daughter-cf Mr. and Mu. it. C. Jfesyu. formerly of Frederic- ton. vvas reported improving in hospital tonight after being savers- ly bitten about the face and haad by a husky dog. -

The incident occur

til it ll ‘ 1 us’ can . ay t at n. aye gain but‘): to a son. Mr. is man r of the Hamilton r

Icot ub three mlisshoin‘ born.

I By FRASER WIGIITON LONDON. April 17 — (Reuters) -— Larbor Ministers tonight warn- ed their followers in Parliament to be ready to beat a possible t- tcrnpt by Winston Churchill to bring down the Government when Sir Stafford Crlpps introduces his budget in the House of Commons

tomorrow.

A high ministerial source said tonight that the Conservative Op- position might force an immedi- ate vote after the Chancellor of the Exchequer has completed his 150-minute budget speech.

His speech is expected to be- gin at 3.30 p.m. BS1‘ (10.30 am. AST).

The budget resolutions. which give instant effect to any tax changes proposed. are normally passed without dissent.

Government opponents reserve their criticism of the new meas- ures until they have had time to study them fully.

But this means they cannot at- tack any partlcular change until it has‘ come into operation when it is more difficult to alter.

Churchill is believed to have beeome increasingly critical of this procedure.

Expect Government to Survive

Prime Minister Attlee's Labor Government hangs on I precari- ous majority of four although Op- position absentees may make it nearer seven. If the. Conserva- tives won a vote on the budget Attlee's retignation would be in- evltable - and a new election would follow at once.

The fact that Government sup- porters have visualized the pos- sibility of a “lnap" vols tomorrow more or less guarantees that La- bor will not be caught napping.

Sir Stafford tomorrow faces a supreme test of economic states- manship. is Job is to hold the country to recovery policy based

(continued on Page 5 Col. 2)

onus Placed On Provinces For Hlgllway_liouies

OTTAWA. April 17—(CP)—For-

mal agreements providing for red- eral-prcvlncial participation in the construction of av'l‘rans-Canada Highway probably will be here next Monday. it was learned today. The Provincial Governments have been invited to send representa- tives to a meeting A rii as with Resources Minister rites: .and most of the Provinces have indi- cated that they will come. ‘

The signing of agreements was authorised by Federal legislation passed last year and by provincial legislation passed by the Legis- lstul-es.

The Federal Government has agreed to pay half the cost of a saoo.ooo.ooo hard surfaced two- lana highway stretching from St. John's. Nfld.. to Victoria and tak- ing in Prince Edward Island.

The highway route probably will be settled prior to the signing of the agreements. ‘The Federal Gov- ernment has taken the attitude

Fire hais Out In Suitcase Before Take -Off

LOS ANGELES. April 17—(CP)— A time-bomb plot to destroy a va- ited Airlines transport while it was in flight failed today when a bat!- gage attendant dropped a gasoline.- filled suitcase and it Caufiht “P9 just before the takeoff-

_'I‘hlrteen passengers and la crew of three were aboard-

As the fire started. John HEHTY Grant. 32. a laboratory technician. rushed to Los Anlzelcs I“l"““' tional Airport ticket window and shouted:

"Don't let that plane take off: I just put a bag on it full of gaso- line."

Grant was booked for investiga- tion of attempted murder.

Blames Heavy Debts

Detective Ned G. Logsden, who arrested Grant. said the man told him he was saddled with heavy debts and had instructed his Wife. Betty. to take out $25,000 in in- surancc policies at the airport on herself. and their children. Marie. 8‘. and Robert. 5. The three of them were aboard the plane.

"I wanted to end it: this was the only way I knew." police quot- ed him as saying.

Def. Slzt. Harry Donlnn said that Harold Mayer. ll baggage atten- dlmt. was placing a suitcase in the plane‘: baggage nit when he drop- perl one end. Flames flared up. slnglng,Mayer's eyebrows and hair.

Armed with extinguishers. atten- dants quickly doused the flames. In the suitcase was an inner tube filled with five gallons of gamline. an alarm clock and batteries. Don- lan added.

Def. Lieut. C. E. Ream said Grant told him that after the fire was put out. he grabbed the suit- case and ran to a parking lot. where Logsden arrested him.

Recalls other Cases

There was a startling similarity between today’: case and one of Canada's most macabre crimes. Last Sept. 9 a Canadian Pacific Airlines plane crashed in Quebec. killing 23 persons. Among the dead was the wife of .1. Albert Guay. in Quebec jeweller who later was brought to trial and convicted of the murder of his wife. in that he had blown up the airliner.

Less than a week ago another apparent aerial bomb plot failed. A British European Airways plane. over the Channel on the way to the continent. was badly damaged by an explosion in the lavatory. The plane immediately put back to England and a safe landing was made. B.E.A. officials said the in- cident was definitely a case of

Sweepstalre Sparks Hot Debate At Conservative Meeting

Huge Fire In Pembroke i lumber Yard

PEMBROKE. 0nt.. April 1‘! (OP) — A genera» alarm fire tonight roared through a mile- square pile of timber levelled two homes and threatened 100 others in the immediate area.

Farmed by a strong west wind, the blaze was still out of control four hours after its dis- covery at 4:30 p.m today. The lumber pile, more than 20-feet high, is owned by the Pembroke Shook Mills.

All available firemen and equipment from this Ottawa valley town, Petauwawa..Chalk River and Deep River were con- centrating their efforts in sav- ing nearby houses, many of them already abandoned. scores of troops from the Petawawa army camp and hundreds of citizens aided the firefighters.

Early estimates placed dam- age at many thousands of dol- lars. The two houses destroyed were at the east end of the lumber pile and about 16 feet from it. All occupants escaped injury.

Volunteers from the mills and nearby plants set of! dynamite to blast the tinder-dry lumber piles out of the path of the flames. Others were knocked clown by bulldozers.

T.C.A. Loclis For Traffic Increase

TORONTO. April 17 — (C.P)— Trans-Canada"'"‘Air Lines expects that more travellers will ride in its planes during fall and winter months of 1950 than during those wmfl1 Gregor, T.C.A. president, said to- day. He told the Canadian Club that T.C.A.’: management believes recent improvements in the stan- dard of airline service will help overcome seasonal decreases in traffic. Weather now lnterfleres less with flight than it did even

two years ago. he said. This has -

resulted from development ‘of pressurized aircraft cabins. which permit comfortable flying at above-weather altitudes. and gen- eral installation of modern elec-

(Continued on Page 5 col. 5!

tronlc aids.

Clarie Gillis On Nose Of

OTTAWA, April 17 — (CP) — Clarie Gillis. C.C.F. member of Parliament for Cape Breton South. doesn't like Communists.

He gave physical shape to his dislike when he smashed into is Communist aympathizer with both fists here Saturday night in the back-alley of a downtown hotel.

The way Mr. Gillis recalls the chain of events that led to the tussle was when he went into the hotel tavern fgr a bottle of beer.

At the table next to him sat a young man about 28 years old who hailed an elderly patron to come and have a drink.

When the older man joined hi.s host. Mr. Gillis could hear him selling the "old Commie line" to his guest and the older man im- mediately objected.

The Communist. angered. grab- bed his guest by the shirt and

called to waiters to throw him out because he was interfering with