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‘VOL. LXXII NO. 30 |

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SKIPPER REPORTS CLOSE CALL

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CommonsDebatesHousing

several times after

(cP cP Phote)

After CCF Bid Rejected

OTTAWA (CP) — The govern- ™ent hopes to make National Housing Act mortgages a more attractive investment for trust companies and pension funds by insuring the full value of the loan rather than the present 98 per eent, Works Minister Green an- gounced Wednesday.

Mr. Green outlined. the plan as he sought Commons approval to introduce legislation provid- ing Central Mortgage and Hous- img Corporation with a further $250,000,000 to lend for housing eonstruction.

He said he sees another “‘splen- did”’ year for house construction in 1959 but he shied clear of fore- casting whether building will match the 1958 record in number gf homes ‘built.

The housing debate followed an wnsuccessful CCF attempt to have Mr. Green’s motion delayed while the Commons debated un- employment. Speaker Roland Michener ruled it out of order on grounds that unemployment was debated. last week <during the throne speech debate and could be debated again next Monday on @ government supply motion.

UNANIMOUS: SUPPORT

The proposed housing legisla- tion received the unanimous sup-

port of Opposition spokesmen.

Mr. Green also announced that last year houses started rose to a record 164,632 against about 122,000 in 1957 and ahead of the previous record in 1955 by more than 26,000. Number of comple tions climbed to a record 146,686 from 117,260 in 1957 and the pre- vious high of 135,700 in 1956. At year - end, 88,162 houses were under construction compared with the previous high of 79,339

The $250,000,000 sought for CMHC lending would raise to $1,000,000,000 the amount _pro- vided by Parliament for direct loans by CMHC. Up to last week, $677,956,248 had been committed of the $750,000,000 previousiy pro- rvided, leaving $72,043,752 in the lending fund.

Mr. Green said the proposed legislation will also make it pos- sible for CMHC, which has ac cumulated a large portfolio of mortgages, to sell these to in- vestors other than banks and in- surance companies. The mortg- age loans, however, would stil! be administered by OMHC afte: sale.

ATTRACTIVE INVESTMENTS

In this way and by guarantee ing the full value of the loan

instead of the present 98 pe:

cent, Mr. Green said, the gov- érnment hopes mortgages wil! become more attractive to in- vestors such as trust companies and pension funds that may not now be able to make direci mortgage loans oul would be willing to buy a fuliy-guaranteed mortgage.

The government aiso proposed to abolish the preseni $25,000,000 ceiling on the amount of mortg- ages that CMHC “can purchase from approved lenders.

Mr..Green said last year CMHC committed about $365,000,000 for housing loans while private _leud ing institutions such as Db put up $520,000,000.

About an equal amount was planned for this year by the private lenders, he said.

He shook his head to challenges from several sition mem- bers. to make a forecast of th number of housing starts in 1959 remarking he predicted 140,000 for 1958 with ‘trepidation’ and now was getting ‘“wisery every month.”

He estimated that the upsurge in construction last year as a re- sult of money put up by the gov- ernment and private lenders pro- vided about 400,000 jobs on con- struction ses plus many other jobs in allied industries.

tke Scoffs At Red Claims Of Knockout Blow Ability

By GEORGE KITCHEN Canadian Press Staff Writer WASHINGTON (OP) — Presid-

ent Eisenhower Wednesday scof- fed at any idea that the Rus- gians could knock the United States out with a sneak surprise attack and assured the ..wmerican people their defence forces are superior to those of the Soviet Union.

He also said Soviet claims to possess an intercontinental mis- sile with ‘‘pintpoint’’ accuracy gound like propaganda.

Replying to press conference questioning about the possibility that the Russians could immob- ilize the U.S. with a single blow, Eisenhower sai he wondered how many missiles Russia would have to “send off in one volley ali over this world to immobil-

ize us?”

NO SUCH CAPABILITY

“We just know,” Se went on, ‘that there is not that kind of tapahility existing in the world today.”

\As for the Soviet claim to: pos-

tess -an accurate ICBM. Eisen- hover weked reporters why they were “respectful” of that state-

ment when they themselves scof-

fed at other Soviet claims to have invented the airplane, motor car, the ‘telephone and vothér things.

“I don’t know what the words ‘pinpoint accuracy’ mean,” he said. “They sound to me like rather propaganda vords."’

The US., he noted, had just fired a long-range Atlas ICBM which ‘was “absolutely success- ful.’’

CONCEDES LOSSES

He conceded that forces, and possibly ‘the contin- ental United States itself, would suffer ‘‘some losses’ in a sur- prise attack. That was implicit in the rtunity that a dictator has to start a war himself and, for. that reason,’ the U.S. must be alert.

While Eisenhower was answer- ing reporters’ questions about defence and other matters, vari- oUS congressional committees were exploring~the military and space situations.

Defence Secretary Neil McEI- roy, back before the House of Representatives armed services committee, hinted strongly that the United States would use nuc-

lear wea @ & became in

the US.

volved in any future war similar to the one fought in Korea.

He said it would be ‘‘against our national .nterest if any in- ference were given the Chinese Communists that we would fight the Chinese Communists without general war weapons.”

The point arose in a discussion of U.S. capability to fight limited as well as general wars.

FAR EAST WEAPON

The Far East figured also in testimony. by nav: officers be- fore the House space committee.

Rear-Admiral K. S. Masterson, the navy’s guided missiles chief, gave his opinion that the navy Sidewinder missile—an air-to-air weapon—‘‘had a hell of a lot to do"’ with the Chinese Reds hold- ing back last year from an all- out assault on the Nationalist- fortified island of Quemoy.

On a broader aspect, Rear- Admiral John T. Hayward, the navy research chief, showed dis- pleasure with an approach in U.S. space work which he said finds “‘the military .... going down one street and the (civilian) space’ gency another "' Hayward called for’ a_ single national agency on space.

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illed, ‘Collapse Of

HAMILTON, Bermuda (AP)— A US. B-SO weather reconnais- sance plane with 12 men aboard lost contact with its base here Wednesday and is missing, the air force reported.

Kindley. Air Force Base offi- cials said it is possible the four- engined plane simply lost radio contact with the base while col- lecting weather data on a daily flight over the Northern Atlantic.

The officials said a Japanese freighter reported an aircraft crashed in the ocean this’ morn- ing at a point about 300 miles northwest of Bermuda. This is

the general area where the B-50 should have been at that time. The Japanese freighter, however, said the plane that crashed ap- peared to have been a single- engined craft.

LAST REPORT

The B-50 left at 6:45 a.m. AST, on its mission. It was last heard from at 8:22 a.m. The Japanese freighter radioed its report of a crashing plane at 8:40 a.m.

‘The weather plane had enough fuel aboard to last until about 11:45 p.m.

Two coast guard planes and

NEW YORK (AP) — Sixty-five

.|persons were presumed dead

The plane, flying non-stop from Chicago, was loaded to capacity with 68 passengers and a crew of five. Among those believed killed in the ‘crash was Beulah Zachary, producer. the Kukla, Fran and Ollie television show There was no indication any Canadians were aboard. PARENTS KILLED

Survivors included an eight- year-old Long Island schoolboy, whose family—parents and two sisters—was wiped out in the crash., Three crew members also were saved.

Many of the missing was be- lieved strapped to their seats, entombed in the tangled wreck-

into Lond Island sound by the river current.

A floating derrick was sent to the scene to raise the wreckage. There, on the surface of the river, bobbed grim mementos of the ‘tragedy—a woman's shoe, a dress, a baby’s glove, a packet of letters, a torn valise.

The four - engined Lockheed Electra—in service on American Airlines only 12 days—smashed into the river at 135 miles an hour, about half a mile short of the runway.

peer snd a onan satel

Trooper Gharles Butt of St.) John’s 15 strenaded by a Be-

2

65 Die |

Crash; 8 Survive

age at the bottom of the river.| S|Other bodies were swept

douin during a lunch break while|naissance Squadron of the on patrol ia the Sinai desert|Canadian Hussars which will be

n N.Y.

Said one survivor:

“Just as we were about to land there was a sudden jolt and then an awful lot of noise

.|and we were in the watér.”

The pilot had given no hint of trouble. Pending a fuller inves- tigation it appeared that he simply came in too low in the mist that enveloped the area. | Autopsy reports on victims disclosed the terrific force with which the airliner hit the water.

| Nearly all victims died of crushed

chests, broken necks or mangl- ing injuries. Drownings were few.

SECOND AIR TRAGEDY

M-was the second air tragedy neat La-Guardia in two years. On Feb. 1, 1957, a Northeast Airlines plane crashed into Rikers Island in the East River about half a mile’from Tuesday night's disas- ter-scene. That crash claimed @0 lives.

By DON HOYT Canadian Press Staff Writer HALIFAX (CP) — The Nova

Scotia government Wednesday partly unveiled its law - making plans at the opening of the 1959 legislature. The throne speech told little about government spending. No major works pro- jects were mentioned.

Help for municipal hospital con- struction programs will be in the form of loans and from a trust fund administered by the prov- ince but made up of contributions from the municipalities.

Certain changes in welfare sta- tutes and reduction of the munic- ipal share of relief costs during

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LUNCHEON MUSIC IN DESERT

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Rafah, Egypt a member of the Recon- 1/8

|American Weather Plane

Missing With 12 Aboard ©

two navy flying boats left Ber- muda this morning to search for the missing plane. The US. Coast Guard cutter Mackinac left at noon and was expected to arrive early today at the point where the plane last reported its position.

A coast guard aircraft from New York was sent to the scene. It reported rain and extremely rough seas there, with visibility between half a mile and a mile.

Macmillan And

Dulles Confer

LONDON (AP) — Prime Min- ister Macmillan and State Secre- tary Dulles conferred Wednes- day night on the eve of an ex- pected announcement that Mac- millan will go to Moscow for talks with Soviet Premier Khrushchev.

Dulles flew here from Washing- ton to open a round of urgent talks with the European allies on Western policy for Germany.

Macmillan is to speak in the House of Commons today and it is believed certain he will an- nounce he plans to fly to Moscow —perhaps as early as Feb. D— for talks with Khrushchev on eas- ing of East-West tensions.

FIDEL WANTS MOUNTIES

HAVANA (AP) Fidel Castro was quoted Tues day as saying he will ask Canada to send 10 ROMP instructors to help organize a similar police force in Cuba. The newspaper El Pais also reported that Maj. Duarte Oropesa, who will iHead: Cuba’s mounted police force, is planning a trip to Canada to study the organization of the

| February, March and

| RCMP.

April of this year will mean increases in some departmental estimates. But tax increases appear improb- able.

Most of the 72-point address, read by: Lieutenant-Governor E. C. Plow to the full 43-member House and packed spectators’ gal- leries, reviewed government ac- complishments.

It pledged the governmeny nd continue “close attention punemployment problems; . changes in the Workmen's Com- pensation Act as a result of a two - year royal commission

Trooper} replaced by the Royal Canadian

study; and to assist in develop- ing “‘smail’’ and safe mines near

Dragoons in February.

— Rebel chief |

. | borne”

Queen Mother Begins Tour

LONDON (Reuters) — Queen

The firet leg of the flight ts

Queen Mother is due in Nairobi at 8 a.m. EST.

Her tour includes a trip among Arab dhows in the old port of Mombasa, a baraza (gathering) of the Masai tribe and a night at the tree tops hotel near Nyeri

500 Acres Sells For $1,600,000

BRAMPTON, Ont. (CP)—Some 500 acres of the B. H Bal Far just south of this Toronto area town were sold Wednesday to a Toronto syndicate for a reported $1,600,000. The land will be used for residential, commercial and industrial sites.

OTTAWA, — (Special) — The federal goveramest plans te spend about $100,000 for impro- vements to the harbors at Point ‘Prim and-New London, both in

A joint announcement Wedpes- day by Fisheries Minister J. An- gus MacLean and Heath Mac-

Nova Scotia Gov't. Plans Quiet Legislative Program

disaster-ridden Springhill.

The basis of Liberal and CCF criticism may be a passage in the speech which said that de- spite unemployment ‘the econ- omy of the province as a whole inspires confidence.”

Liberal Leader Henry Hicks said before adjourning the debate that the legislature will have to consider many problems, ‘some more grave than usual.”

He said the co - operation of every member of the House is re- quired to assure “‘we discharge our responsibility’”’ to Cape Bre- ton’s 4,100 unemployed miners and their families.

The Liberal chief, who resumes his address today, paid tribute to the people of Springhill “for the fortitude with which they_ have two mine disasters in as Many years.

The throne speech said the gov- ernment plans to create a pro- vincially - administered fund to help municipalities defray capital expenditures on hospitals. The fund will be majntained by per capita contributions from munic- ipalities and distributed on a per diem basis among the 45 hospitals participating in the National Hos- pital -Plan.

NOT MENTIONED

The union.of Nova Scotja Mu- nicipalities has approved the con- tributions proposal but wants the province to care for the men- tally-ill. No mention of the stip- ulation was made in the throne

\

speech. Donald C. MacNeil (PC—Cape

; Breton South) moved the address

in reply to the throne speech. He urged the Nova Scotia govern- ment to co-operate with A.V. Roe Canada Limited in maintaining and expanding the province’s steel industry.

Mr. MacNeil said Nova Sco- tians were accepting “‘any annoy- ance or inconvenience” from a three per cent sales. tax because of the benefits derived from the National Hospital Plan. Tax rev- enues are being used exclusively to finance Nova Scotia's share of hospital plan “wm

Harvey A. Venfot ‘PC—Pictou West). who seconded the address, urged. the Nova Scotia govern- ment to re - examine domestic markets for the province's coal ouput.

(CP Wirephote from National Defence).

House standing is PCs 24, Lib- erale 18 and COF 1.

to Tripoli, 1,700 miles away. The | j

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Pt. Prim, N

of cribs and breakwater. Esti- mates of cost run to $60,000. Tenders close March 4. Con- struction will likely get. under way in the spring.

ARTIST TO INSTRUCT

HALIFAX (CP)— Gentile Ton- dino of Montreal has been retain- ed for the fourth year by the Nova Scotia adult education divi- sion to instruct in painting cour- ses at the 12th annual School of Community arts Aug. 12-22 at Tatamagouche, N.S. Mr. Tondino is one of Canada’s most promin- ent Artists.

TORONTO (CP)—The govern- ment is paying too much atten- tion to unemployment and not enough to inflation, Edward H. Ely, president of the Investment Dealers’ Association of Canada, said Wednesday.

Erosion in the value of the dcliar has continued, he added, “because of a fixed idea in Ot- tawa that we have to spend our way out of the recession.”

Mr. Ely—who is a vice-presid- ent of Wood, Gundy and Co. Ltd. —made his comments at a press conference held by the associa- tion for the discusSion -of invest- ment matters.

He .doesn’t think the govern- ment can balance its, budget in the fiscal year starting April 1.

BALANCED BUDGET

He suggested that the govern- ment aim at a balanced budget in 1960-1961 and, in 1961-1962, at a surplus which should be used towards paying off: debt now be- ing created.

This, he said, .would do more than anything else to restore confidence in government bonds.

He ‘doesn’t look for this year’s budget to be brought dows in

April, because he feels the gov-

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street to see what they could do. Some persons extricated victims snow and debris

Mrs. Alphonse Campeau, 538, Jean-Paul Genest, 31, Jean-Paul Labadie, 28, Miss Grigitte and Miss Claudette Lessard, respec- tively 20 and 17, sisters, and Mrs. Roland Morrissette, 49, all tof Quebec City, and Leon Demers, 16, of St. Etienne-de-Lauzon, Que., and Romain Falardeau, 29, Loretteville, Que.

Mrs. Gabrieille Lemay, 539, was able to return to home after treatment.

Mrs. Begin is the only person who is described as having suf- fered “serious injuries.”

Job Problem Over-Stressed, Inflation Neglected, Claims

ernment will wish te —_ a look at .the pourse re- age in the first three months. Inflation hasn't come suddenly, Mr. Ely said, “‘and it is not fair for everybody to be pounding the present government, when the- erosion is not all their fault— though lately it has been.”

DOUBTS FIGURES

He doubted that actual unem- ployment is as high as it appears to be in statistics.

Canada’s situation in regard to inflation, he continued, is much more dangerous than that of the United States, because of Can ada’s much greater dependence upon trade with other countries.

In regard to last year’s huge conversion loan by the federal government, Mr. Ely said:

“There is no doubt that it was an action that had to be taken. -

“The conversion was a good thing for the country and that will become more apparent when the government balances its bud- get

“The fact that the bond market wemt down after the conversios is no comment upon whether # was good or bad. Our marke can't do other than follow that of the United States.”