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SEEN AT RECEPTION given Board of Trade members by

Maritime Central Airways are left to right, Carl F. Burke, gen- eral manager of M. C. A.; Wil- liam Hayward, newly elected president of the P. E. I. Board of Trade; Ralph C. Pybus, presi-

dent of the Canadian Chamber of Oomrnerce; Ernest D. Reid retiring president of the Mari- time Board of Trade. Mr. Pybus was the guest speaker at a din. ner meeting of the Board held last evening at the Charlotte- town Hotel. During yesterday

M. P. B. T. DELLETGATES TOLD

Canada's Resources To Decide Future Pattern

A note of optimism was sound- ed by Ralph C. Pybus, president of Canadian Chamber of Com- merce who said last night “Ca- nada is a land richly endowed with great resources’ which in time will be required by many nations.” Mr Pybus addressed -a dinner meeting of the Maritime Provinces Board of Trade here.

The national president felt that sane and level headed leadership

V will prevail in bringing about the 2 future development and building

‘ of the nation. “Our vast energy

, . 1;‘ -' T,

Ieamsiers

President Acquitted

NrEiW YOIRJK (AAP)-Teamsters president James R. Hoffa wa's acquitted Monday night in a sec-

r ond trial on charges of wiretap- ‘ ping the uuion’-s Detroit head-

I

quarters.

Two other defendants, Owen B. Brennan, president of Detroit Teamsters Local 337, and Bern- ard Spindel, professional New York wiretapper, also were found not guilty by a jury that had the case nine hours.

The three were accused in a conspiracy count of wiretapping the union headquarters in 1953 so Hoffa could eavesdrop on union émployees. The penalty under the federal statute is a maximum five years and $10,000 fine if con- victed.

The jury got the case at 11:35 am. Em‘ after a month-long sec- Ond trial. The first trial ended late last year in a hung jury.

resources of coal, oil, gas, hydro- electric and uranium assure us of a great industrial expansion and above all else, we are a re- sourceful, a skilled and a. hard working people with a growing population adding rapidly to our work force and our home mar- ket,” he said. K

CAUTION SIGNALS

Mr. Pybus however added a note’ of caution when he stated the greatest challenge to the bal- ance of stability of the economic structure of Canada is “the con- tinuing pressures of our cost in- flation, the cost price squeeze.”

“We are a. trading nation,” said’ Mr. Pybus, “and our ability to re- tain our prosperity and high stan- dard of living depends on our abi- lity to produce“-in qnalirty--‘and’ art costs which will allow us to sell in this changing world, with its highly competitive markets.”

“Continuing inflationary costs, costs of increasing wages and taxes against lowering prices, in deflationary markets seem to de- fy all economic laws, but in a free world we know that sooner or later the producer must bow to the buyer and we know we can price ourselves out of our mar- kets.

MORE INDEPENDENCE

“We Canadians must resist the popular urge to turn to Govern- ments for more and more be- cause this simply means more and more taxes which must be

written into costs. We expect our

afternoon the Island Board of Trade brought in the following slate of officers: Past president R. Earl Taylor; President, Wil- liam Hayward; vice-president, C. R. Hunter; Sec’y Trera«s., A. Welthen Gaudet; Council, A. H. Holman, Morton Dew, C. F.

Government to -guide and direct and to care for those unable to care for themselves but surely it is the duty of every able citi- zen to support and provide for himself and his family.”

“Government security and wel- fare is no stronger than the wealth of our country and our wealth is our capacity to pro- duce, and production depends on our ability to set" said Mr. Pybus.

“And as with taxes, so our con- tinuing year by year unrealistic wage demands must be restrain- ed,” Mr. Pyfbus said, “Better self-restraint but restraint there must be, or the spiralling costs will play havoc with our public and private social welfare and with our economy. The desire for more is a worthy incentive. but it must be in keeping with the size of the pie, our economic wel-libein.g.”

VICIOUS CIRCLE

“When wag-es increase at a faster rate than increase in pro- ductivity, the result is increasing costs and higher con_»sumer pric- es, showing -a loss in the pur- chasing value of our dollar. Do- minion Bureau of Statistics re- ports tell u-s this is happening. Mr. Pybus said that profits are part of prices and excessive pro- fits are just as damaging as un- realistic wages and high taxes.

According to Dominion Bureau of Statistics reports the latest

(Continued on page 2 col. 4)

yesterday.

have fallen from a moving trac-

tor.

Ecrrnsclitte Chi-Id Killed In Accident With ‘Tractor

Alba-n Morrissey, I 4-year-old His parents and several young son of Mr and Mm Aflphonsus brothers and sisters survive.

The funeral will be held from

M ° 1' 1' i 5 '5 9 3'' Eamscmfe’ met his parents residence Wednesday death as the result Of an aflcident morning to St. Joachim’s Church

Vernon River, where service will

Th . rt. ‘~ reported to commence at 9.30 am. e youngs er 1s I Interment will be in the Church

cemetery.

Gov't Exhortations To

Hold The Line Criticized

OTTAWA (CP) — Government exhortation-s to labor and indus- ill’ to hold the line on wage and Price demands were attacked Mondayby a CCF critic in the Ommons. Erhart Regier, Burna~by-C:o-quit- H . said the government is “°Fh'inrg but the larckey of big usmess,” Employers, he said during the dget debate, “charge all that ille traffic will bear." But work- Ers seeking pay raises to offset h“°1‘eas-ed living costs not only had to contend with employers across the bargaining table but also with Prime Minister Diet- embarker and Finance Minister min: who had urged them to 1d the line on demands. «Iii would require more than “W5 appeals” to business to hull down their prices. Among smessmen it was considered a Weakness to respond to su-ch an appeal. bMT- Regier said the June 17 ..“d8et of Mr. Fleming was °°ml>1etely bankrupt" of pro- p°9a1S to meet the nations Dmblfims. He was “profoundly §£°‘°k9<I” at the extent to V hrich .3 government had lost the con- denche of those who voted for it 31

Pm ' %0MISED N0 SUFFERING musnnrg the election Csampraigfl

Diefenbaker had promised

that no unemployed person would suffer. But some unemployed had been Without jobs since last fall. if the government thought‘ that unemployment insurance for six or gerven m.om~hs prevented suf- fering, some of the ministers should try it. ' _

J. M. Ma-cdonnell. minister without portfolio and former Pro- gressive Conservative financial critic, praised the budget as a “compound of constructive real- ism and consvtructive courage.”

The member for Toronto Green- wood, referring to criticisms of the budgetary boosts in tariffs on imports of British wool cloth, said the changes as a Whole Were “extremely small a nd badly needed.”

Some were up, some down. ‘It wasn’t clear, taking the full pic- ture, whether there was any net rise in tariffs at all. They amounted to a “sirrnrP1i1°i*C3ii°11 and modification” of regulations, and they had all been presented to c,a.nad.a’s partners in the Gen- epal A,g1-eement on Tariffs and. Trade (GATT) as a “bralarhced pckage.” ,

The Progressive Conservatives had always s-u'pPr0T’f9_d GATT- Even the “most convinced free trader” would find it hard to get excited about the budgetary pro- posals.

Referring to the Common-

wealth e -c o n o mic conference scheduled for Montreal starting Sept. 15, the 73-year-old special- ist in economic affairs said prep- aration for the meeting are be- ing pursued by the government “with the greatest energy.” The government was taking the con- ference “in a most serious way.”

Mr. Macdronnell said the chief Liberal financial critic, William M. Benidickson, Kenora - Rainy River, seemed to think more spending was needed to perk up the economy.

But if all the proposals and promises the Liberals h-ad made before the March 91 general elec- tion were added up, the deficit of $648,000,000 forecast in Mr. Fleming’s budget would have been swollen by some $400,000,- 000. Guy Rouleau (L-—lVIontreal Dol- lard) said the budget repeated the “same old Tory principles.” The proposed measures for fight- ing the recession were com- pletely inadequate.

“Let the government cure "he sick one,” he said. “If they don’! know the remedies we will be happy to prescribe them.”

Action was needed immediately and it had to be radical and ur- gent. He appealed to the govern- ment to seek new markets in Britain, in the Commonwealth and elsewhere."

" hr hrrotrdinu

"Covers iPrince Edward Island Like The Dew"

Bentley, Willard Burke, W. R. Brennan, D. I. Sinclair, B. B. Jones, P.M. Simmonds, Brian Cudmore, A. D. Cameron, How- ard Douglas, G. G. K. Peake, Henry Macwilli-am; ex-officio Mayor Edwin C. Johnstone.

I3 C?N'R Freight Cars De-roiled

SYTDINIEY (CiP)--'I‘h-irteen cars of a 61-car freight train hurtled off the track on the Canadian Na- tional Railwarys main line to ll/Ion-cton at Christmas island 33 miles from here, Monday. No one was injured.

A broken axle on one of the cars was blamed for the mishap which tied up the line until it was cleared late Monday night. About 200 feet off track were torn up.

The train, No. 409, left here for Moncton at 1 p.m. ArDil‘ Mon- day.

Eight of the derailed cars were empty. Four contained steel rails and one, fish meal.

BLOOD SUPPLY LOW

TORONTO (OP) — Officials of the Toronto Red Cross said Mon- day they are worried about their blood supply for the Dominion Day holiday, when demand usu- ally soars because of accidents. Pledges for the coming week have fallen for short of the week’s. quota, 1,500 pints.

By HAROLD K. MILKS

MOSCOW (AEP) —- A Russian crowd in a vicious mood attached West Germany's embassy with stones, sticks and ink bottles Monday in revenge tor the as- sault on the Soviet Embassy in Bonn last week by demonstra- tors protesting the execution of Hungary’s Imre Nagy.

Mn. NICHOLSON

Given .12-Month Educational Leave By Dept.

Research officer in animal husbandry at the Charlottetown Experimental Farm, Mr. James W. G. Nicholson, has been grant- ed a 12-month educational leave by his employers, the Dominion Department of Agriculture.

During this time he will study for a Rh. D., at Cornell Univer- sity, Ithaca, N. Y., returning to his present job at the end of the course.

A son of Mrs. Nicholson and the late John L. Nichol-son of Crapaud, the 27-year-old agri- cultural research scientist gradu- ated from Prince of Wales in 1949, and then entered MacDon- ald College, St. Anne de Belle- vue, Quebec.

In 1951 he graduated from that institution with a Bachelor of Science degree, and later that year entered the employ of the federal government. .

He was granted his first edu- cational leave in 1954. f01‘1‘0W1Ilg which he enrolled at Cornell and two years later was awarded a Masters degree in Science.

Mr. Nicholson, his Wlfe, the former Betty Nisbet of Tyne Val- ley, and their son. reside 111 West Royalty

CHARLOTTETOWN, CANADA TUESDAY, JUNE M, 1958

FEED DIVERSEION PROPOSAL

Gov't Otters Bag For P.E.. Potatoes

LOWER EXPORTS, LESS STOCKPILI'NG

Record Spending But Economy Is lagging From Other Causes

0’l'l‘AWrA (CfP)—Canadian con.- surmers are spending their money at a record $2.0.000,000,000«a~year

pace.

But despite this rise along with heavier spending by governments and more outlays on housing the economy has geared down from its high run, feeling the impact of lower exports and business in- vestment and a drop in stockpil- ing.

This is the story the bureau of statistics told Monday as it es- timated the gross national pro- duct—value of all goods and serv- ices produces —— at $7,l05,000,000 -fort he first three months of 1958 or an annual rate of $31,676,000,- 000.

This was actually higher than the $31,4r60,000,000 annual rate in the last three months of 1957, the $31,252,000,000 in the first three months or even the over-all 1957 average of $31,443,000,000.

But the rise was based on higher prices and an arbitrary estimate of what the grain crops will produce later this year. Physical production was in fact down two per cent from the first three months and one-half of one per cent from the last three months of 1957.

DEFICIT MAY RISE

F in a n c e Minister Elem-in-g’s June 17 budget was based on I: gross national product of $32,000,- 000,000 for 1958. It appears there will have to be a pickup in the economy this year or his fore- cast deficit of $648,000,000 may turn out to be a bit higher than

Moscow Crowd Makes Attack On West Germany Embassy

As the window-smashing dem- onstration raged, a handful of So- viet police raced back and forth, fruitlessly blowing whistles and shouting. Finally, Soviet mounted police broke up the demonstra- tion two hours after it began.

a pile of gzasolrine-soarked rags was thrown through a vrdndow, starting a small fire that was put out by em/ibassy workers. For- eign correspondents, including this one, were roughed up and shoved around -as they attempted to take pictures.

West German Ambassador Hans Kroll said he has delivered “the strongest possible protest" to Soviet Deputy Foreign Minis- ter A. V. Zakharov. He said he tried to see Foreign Minister An- drei Gromyko but failed. Kroll said he demanded an apology, full compensation for damages and assuran~ces that the incident would not be repeated».

Starting out with about 500 men and women, the crowd swelled quickly to 1,500. The Russians smashed almost every window in the two-storey building with a barrage of sticks and stones. Then they crashed in-k bottles against its grey walls, turning the front almost completely blue.

The damage seemed greater than that resulting from an as- sault on the Danish Embassy here last Friday.

that. »

On the whole the bureau found production relatively stable. De- spite the rise in winter unemploy- ment and a slight decline in pro- ductivity, labcr income rose to an annual rate of $15,932,000,000 in the January-March period.

This compared with the 1957 average of $15,825,000,000 and in- dicated a source of plenty of spending power that found its way into Canadian shops. Con- sumer spending on goods and services rose to an annual rate of $20,432,000,000, compared with last years average of $19,768,- 000,000. Part of the 1958 rise was due to higher prices.

Compared with the last three months of 1957, more money was spent on food and clothing, pas- senger cars, home furnishings, furniture and appliances. Spend-

ing on fuel dropped while outlays for alcoholi-c beverages remained unchanged.

BUSINESSMEN CAUTIOUS

But businessmen were making l-ess profits and were cautious, stoclapiling less and thereby re- ducing factory orders. Inven- tories were liquidated at tht an- nual rate of $460,000,000 in Janu- ary-March.

Corporation protlits dropped to an annual rate of $2,256,000,000 from the 1957 average of $2,505,-

W-hile outlays on housing in- creased to $1,688,000,000 from $1,- 424,000,000, spending on com- mercial construction dropped to $2,952,000,000 from $13-,233,000,000 and on new machinery and equip- ment to $2.460.000,000 from $2,- 732,000,000.

100 Brazilians Injured In Fire

SAO SALVADOR, Brazil (AP) More than 100 Brazilians were re- ported killed and 340 were in- jured Monday in two great chain reaction explosions in fireworks stores.

The fireworks were being pre- pared -and vended for the tradi- tional Ju-ne celebrations of saints days.

Faced with -the twin disasters in Bahia _, state, the government took steps t6 ban all fireworks.

Reports from Santo Amaro, 15 miles north, said about 100 were killed and 300 were injured in a single blast there. A broken elec- tric power line was blamed for the original ignition.

SPEAKES TODAY Douglas V. Gander. vice-presi- dent and general manager of the Atlantic region of the Can- adian National Railways, who will address the annual meeting of the Maritime Provinces Board of Trade at the Charlottetown Hotel here today (Tuesday).

Hammarskjold Hopeful In Views On Lebanon

CAIRO (Reuters — Secretary- General Dag Hammarskjold of the United Nations Monday night expressed hope Lebanon’s civil war “will be settled soon.”

Hammarskjold spoke briefly to Egyptian reporters following two days of talks here with United Arab Republic leaders. He re- turns to Beirut, the Lebanese capital, early today.

Upon setting out on his peace- making mission last Wednesday, Hammarskj old emphasized he would refrain from public state- ments that might inflame the sit- uation. Monday night’s rem-ark represented all he would say about his four-hour talk Sunday night with UAR Pres~id-ent Ga-mal Abdel Nasser and two meetings Monday with Foreign Ministei Mahmoud Frawzy.

Egyptian newspapers repeat- edly have warned against Anglo-

American armed intervention in Lebanon even if President Ca- mille Chamoun’s g o v e r n men-t asks for such help.

In New Delhi, the UAR ambas- sador to India, Abou Richer, said if the United States and Britain intervened, the struggle would becom-e international and volun-. teers from “eastern-‘bloc coun- tries” presumably would come to the aid of the Lebanese rebels. DON’T WANT OBSERVERS

Richer also said the UAR would not permit the stationing of United Nations observers on the Syrian side of the Lebanese bor- der.

The UN observers were sent to Lebanon by decision of the Se- curity Council to ensure there is “no illegal infiltration of person- nel or arms across the Lebanese border.” This decision followed Lebanese charges of “massive in-

Kil-Ied, 340 works Blasts

A similar fireworks blowup in Feira de San-tan was reported to have killed seven a-nd injured 40. Santa Amara official-s sent out urgent appeals for medical aid, dis-apatches said. Some deaths were attributed to lack of im- mediate medi-cal attention. Rains were hampering rescue efforts.

NOT MORE THAN

WEATHER

Clear with a. few cloudy intervals; littlc change in temperature; light winds. Low -high at Charlottetown 50 and 68.

FIVE CENTS

5 Cents

Horkness. Says Delay In Plan Not Ottawa Foult

OTTAWA, (Special) The Fed- eral Government offer of 45 cents a bag assistance payment for potatoes used under the pro- posed feed diversion program in P.E.I. still stands, Agriculture Minister Douglas Harkness said Monday.

Any delay in payment to Island growers “is not due to ‘any failure on the part of the Feder- al Government." Mr. Hnarkness said.

He said in A statement issued in Ottawa that “-notwithstanding ‘extended negotiations, no agree- ment has yet been reached to provide assistance for those Prince Edward Island Potato growers who have been unable to market a fair proportion of their crop."

The official statement follows:

On May 20th, the Stabilization Board recieved representation from representatives of the Prince Edward Island growers, at which time the problem" was outlined and assistance requested.

On June 3rd and 4th, at the in- vitation of the Stabilization Board, discussion were held with repres- entatives from the Provincial Government and growers, at -whi-ch time the Federal Govern- ment offered assistance in the form of a feed diversion program equal to what is being provided to New Brunswick growers on a starch diversion program.

A starch diiversion program in factories operating in the Pro- vince the stabilization board estimated that the feed value of the potato was approxi- mately 80 cents a bag. The Is-

land representatives submitted that for varying reasons, this estimate was too high and. there

fore, the assistance was not sa=trisfa~ctory. In’view of these representa-

tions, offer for cash assistance ‘from the Federal Government swas increased from 30 cents to 45 cents a bag (75 lbs.) for feed diversion on the farm.

This offer of assistance is still available and any delay in tak- ing advantage of this assistance

part of the Federal Department.

Two Fishermen

Are Drowned

SYDNEY (CP) -- Two Nova Scotia fishermen drowned Mon- day while lobstering out of Four- chu, 30 miles southeast of here.

The capsized boat of Stewart MacLean, 32, of Sydney and Sid- ney lVflacDonald, 42, of Frairview, N.S., was found d-rifing in the At.- lantic. Police said the boat was swamped by a wave.

Loses Life In Abandoned Pit

GILACLE BAY, N.S. (CP)—Rod MacDonald, 35, died Monday af- ter being buried beneath piles of dirt in an abandoned coal pit here. His body was recovered af- ter two boys noticed a hand pro- truding from beneath a heap of

dirt.

WIl\l1N:I‘PEG (CP)—«Duff Roblin, whose Progressive Conservatives won last week’s Manitoba gen- eral election in the party's first big test since he became leader Monday accepted the call to form a new government Lieutenant-Governor J. S. Mc- Diarmid announced he had ac- cepted the resignation of Premier D. L. Carmrpibell and his Liberal- Progressive government and that Mr. Roblin had agreed to -form a cabinet. -

Mr. Roblin be sworn In as premier June 30.

The announcements ended a week's speculation on the even- tual outcome orf the June 16 elec- tion in which the Conservatives won 26 seats to become -the larg- est group in the 57-seat legisla- ture, though without an over-all majority.

Only 19 Liberal - Progressive members were returned. The CCIF held the balance of power with 11 seats. One independent also was elected.

CCF CAUCUS

Speculation reacherl its peak during the weekend when -the CCF held a two-day caucus. Early Monday CCF leader Lloyd

ing a seven-point legislative pro- gram as the price of that party’s support for a minority govern- ment by either major party. It repeated the partyfs determina- tion not to enter a coalition.

Three hours later, Premier Campbell said the CCF would not commit themselves to support the governments program and announced he would resign. His resignation a-nd the calling of Mr. Roblin followed.

Mr. Roblin, in an impromptu press conference after he was in- formed by reporters of Cam.pbell’s decision to resign, said a Conservative party caucus would be called after he is sworn into office as premier.

He repeated his campaign promise that an early session of the legislature would be called- “sometime in the fall to imple- ment the essential points of our platform."

The premier-elect, who became party leader in 1954, indicated the makeup of his new cabinet would be announced shortly after he of- ficially takes office. MUST FACE FACTS

Asked whether he expected an early election to be called,»Mr. Roblin replied:

“We’re not anxious for another election but we must face the facts that history and experience have taught us—that it is not in the best interests of the province to have unstaible political situa-

terference” by the UAR.

Stinson issued a statement ou.tlin- I

P.C. Leader Accepts Call To Form Manitoba Gov't

is not due to any failure on the '

DUFF ROBLIN has good rea- the largest number of seats in son for the broad smile. Leading M‘3n1i0‘Ua’S general election Jun! the Progressive I Conservatives 16 and me f°m°Wi“‘g day he °°1°'

for the first time, his party won mated his 41st bilgifidzibiairephom,

The Liberal - Progressives had year, they held 34 seats in the dominated M a n 1 t o b a politics legislature. T h e Conservatives since 192?. They governed in co- had 10, CCF 5, Social Credit 1, a-ht1on‘w1th the Progressive Con- Independents 3, Independent-Coir servatives from 1940 to 1950. servative 1, Labor-Progressive 1

tion last indefinitely.

{_r«“

Art dissolution on April 30 this and two were vacant.