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FISHERIES, PUBLIC WORKS, ES TI

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Cabinet Rank For Army, Navy And Airforee Heads.

BERLIN, Fob. 3-—-Chanuelior mm; was reported today to have "proved a Cabinet rear nlaatlon u up solution to n cris facing tho Nazi party.

twill-informed circles said this pinion would mean absorption at the vanished power oi’ Marshal Warner Von Blomberz, resigned Minister oi War. by General Her- mann Gocring. the No. 2 Nazi.

Lhhinet rank would he given

in the fiends oi’ the army, navy: War I

uni nirforcc, allowing the Ministry to disappear with Vun Iiornberg, now on a honeymoon from which he is not expected to Itiilfll

In the new cabinet, Gooring eclu2icaliy' would be listed as air uinistcr rdulong equally u.th Gm- irai Werner Von Frllscn, wnmrnud- r-ln-cliioi‘ of the Army. us war ninturr dud ilrlmiiwdl Erich Ruedar b navy minister.

But as liners right hand man ind head oi‘ epnomic defence brutal, G<erlng's position as co- ordinator oi milatgry and indust- rial economy would give him the dominant wlce in National de-

fence.

In connection with this plan there wa= some talk of removal of General Lydvlg Back as ‘chief of staff to quake room for General Welter Von Rein-henna. armyccips commander, mcnticircd previously is successor to Von Blcmoorc.

It was a‘so possible Von Fr-itsoh might be replaced later by some

neral not directly involved in he ccnircvcrsy between the nnnv and Nazi political leaders that broke with the rolgnatlon of Von Blcmberc.

Von Fritsch acted as army spokesman surrzcsiing that Von Emmi"! rcsltm over his marriage l0 ‘ltlnvcnr-old Erika Gruhn, a Jlaughtcr.

COMING {VENll

'..\Ilillllill4'l'llli'Ili4 are lnuorircl In ililn column at 2 eontn per word Llqcilrj llltYfl|I|fl_ in mlvnnoc._

to- -3*l20 "Huskies Vs. Hornets. Milton Rink tonight. Game starts 8 o'- clock. 1,3421

"Come to the lecture and dance ln W1 tshlre Hall tonight, sale of lunches. 1,4413

“alliance in Sea View Halli’

. "East ‘Royalty Vs. West Royalty,

East Royalty Rink tonight, skate "W. L-iit 7

"Hockey wnirht at New Gins- IOW Junior Maple Leafs vs. Wild- cats. L-3425.

"Buvlniz dressed chicken and fowl dnilv. Correct grading. Ton lliiccs. island Cold Stnraszi: 4Com- WL L~4i5-l2-30-tf.

_"H0ckev Match Victoria. Friday fllllht. Victoria Unions vs, Kenslng- ioh nu Stars. Tickets ‘zs cents.

L-3300-2-3-2i.

"Cake Sale

at. Prowse Bros. Saturday Feb. 5, auspices Catholic Womens League. L—33'14-2-3-3i.

“Dance, Colman Bonn Monday. 7th.‘, Mclnnis hOrchestra.

Ill! rng lune . L-3400-I-l-1l.

"Buying live hogs, Alden Moose. Kemlnston. Monday. Lemuel Crasweu. Hunter River Monday, “Id Tuesday forenoon. L-3419

"Hockey in Sea. View tonight, Gfilhflm“. Monarchs Vs. Sea View M0010 Leafs. If not fine Saturday “lsht. 1.3420

"Emma races on New Glasizow Riv" Saturday. February 5. at 2 géflm. sharp. Three classes. Every-

l’ welcome. L-ssifi-S-a-iii

"Come u» the Carnival at Hlwh- geld nun: Saturday February 5th. 0 prim awarded to cgumes “It, have taken prizes hem-e in llhfleld Rink. Ii-Mfl-wi-lli.

Ewuontlrcvtlflianog willl be hgig ill B En G , U1 Q3" alybllebmary 9th. llwlyat 2 P. M.

MacEwoml rot . - - a rl-qaao-a-a-si. "Pvwnai Hooko ma; m- m? 4th.. m. Albion vi.’ mu-

Pownni Garage caries. Bat- moccaaln or overohoe dance. 8 till 10. ahtinl

1.- 4-1-31

"All we...‘ School Dlatriclln lad cog? w the can. M 0° m‘ 00 ltetinn at

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{Plato-let No. M

APPROVES 11v l N421

IAPFURBES PllSll iiiRWAR

Foreigners Urged To Leave War Zone.

SHANGHAI. Ebb. 3-—lFI'lEl2l,_Y) — tAPl—JLk[7dil(‘:6 columns smn. hed iiicir why nearer to Chitiois rall- vvay nerve centre today after Jap-l anme commanders urged for: an- ers leave a war zone of nearly “r0,- 000 squares units in Central Chine.

'l‘hc request that foreigners clear the Wtty for land and an.‘ attacks Bglllll-‘ll. General Chian-g Kai-Shah's stubbornly resisting troops ajong the Lamghal and ‘lientsln-Punlrow Railways was issued yesterday by the Juparrc-c Embassy at Pelping.

'.f‘hc.y were asked to mark their properties to save than from aerial ‘bombardment. About 511 tuwns wig-tin the drsignatcd area. are siio= of forelgn mission-a.

Reports of Jnpiznese victories in

the Pczxopu areu were denied by Chinese sources. Chinese declared the Japanese icst at least 3.500 dead and wondrrl in the post wsrk of fighting and. while admitting their c-wn hcnvy losses, in fated the TicnLsin-Pnkolv defence had not wetakencd, North of Suclzow the Chinese said giterilia drirnzirrs wore very nctivc, both cast and west of the Ticntsiu-Pukoxv line.

When and if Bucnow is taken and the Chinese crnt-rnl front broken. the invaders are cxprctcd to pause for consolidation of their conqued: of north China and 1n the Yangtse Yallrv bcfcre trying to use the Lunuhni line for a thrust weat-

ward. Se! a clad

Montreal As Locale For i940 Legion Convention

FORT WILLIAM, Ont, Feb. 8 - (CPl-Montroni was sciertcd today as the locale in 1040 of the Dom- inion Ccnvention of the Canadian Lesion.

The deliberations oi’ the "War Veicrnns‘ Parliament" closed on a note of appeal for unity among all ex-rcrvlre men 1n Canada.

The work confronting the Can- fidlflfl LPSlOH u; u. force operating in the best interests of thccnuntry was something which needed the co- operative effort of all who had ser- ved. Colonel W .W. mm, Dom- inion President told the Convention. He praised the delegates for the work they 11nd acoomptshed, and congratulated-them on the “splen- clld spirit." in which they had con- ducted their deliberations

OLDEST CRICKET BLUE

HEMlNGI-‘ORD ABBOTS. Eng- land — Emiandkz oldest cricket blue. Rev. A. H. Winter. died at his home here. Mr. Winter who ma: 93. played for Cambridge in tho late 60s and later for Middle- sex.

err-awn. Fob. a-(Ol-“l-A m6 trade area. for the Prairie Pro- vinces where tnreléfiinwtlllllgldiéllg-e l: L2,§m§g§“§§€§ by Gordon Rosa (LilgroiocQll/ke tariffs, the But-film)!‘ swan free trader said, war; in; glroverishing western Cana a.

a name time Eastern Canada be; lleved tariffs were both M19311 ‘c:

cesaary. The only 108W" "m Y was to impose a system of regional tariffs-permit the east to retain them and leave the PIIIYM l h“

market. ., _

“The west demands Jl-utlfier fir!” ‘claimed Mr. Rosa at t ch80” oluaion of a general onslaug m“ ti» p lnolplc of protective I - "We emu a free triade can flu three Prairie PM! M";

The nddreu debate continued all

_ gwwart afternoon wit)h Hon Hugh “m.

14-8892-2-4-21.

(Oops. "l"

Campbell Governme Financing Subject Of y Toronto Press Commenti

Premier Reveals Progress Otf FurtherBondNegotia- . tions In Statement Denying Accuracy Of Finan- cial Post’s Allegations Re $400,000 Issue-—30 Day Option Given Pitfield And ‘Co. Limited.

Details ‘of further bond negotiations by the Camp- bell Government this time concerning an issue of $400,- ,Vtl00, are revealed in a state- ment issued for publication ‘by Premier Campbell in reply to allegations made in this weck’s issue of the Fin-

ancial Post, Toronto. 'l‘he Premiefs statement fol- lows:

"I am informed that the following statement appeared today in a well-kirown Can- adian financl i publication:

“Prince E ward. Island has rejected bids for an issue of 5400.000 of bonds. While n0. public announcement has been made by the Provincial Gov- ernment in regard to prospec- tive flnnnclng, several weeks ago tenders were called for privately one $400,000 issue. Several investment houses were asked to submit alter- native bids for different. ma- turities. Reasons for rejection o! the bids have not been made public.

“The Financial Post is in- formed that one of the diffi- culiles encountered by the in- vestment dcalers in making ‘ds was the inability of thi. Province to provide a detail of'finanoial results for the year ended Dcccm-ber 3i. 1937. The latest available report is for the your 1936.’

"The above statement is en- tirely inaccurate tn practical- ly every respect.

“In the first place. no ten- dcrs were called for.

"In theseoond place, no in- vestment houses were asked by the Government to submit bids; Apparently acting noon a suggestion appearing ‘some vlcaks are i‘: the same finan-

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Apology Accepted By United States

WASHINGTON. Ebb. 2- (AP) -Once more the United States indicated its eagerness to avoid trouble with Japan by accepting toda the Far Eastern Govern- mcnlls “ rcfound regrets" for the slap-fn-tie-farle administered by a Japanese sentry to John M

Ilson, American Diplomat. at. Nanklng. Though satisfied with ti I

prompt a ology, State Department officials eollnad to list the cident as "closed." any more than the apdogy for the sinking of the American gun-boat Panay termin- ated that affair. SUGGESTS "ISLANDS" BE GIVEN U. S.

WABHINGTON, Blob. 2—(AP)—— Senator Lewis (Dem-Ill) suugatod to tho Senate today that lfiurflpflan nations. now asking Asher-icon ao- operation in aiding Ohma age-tuit- Japa. turn over in the United Btalca some of tthdr island b08965" sfons as naval and air besBJ.

1mm these not-tens new ewe tlhe United Stated $1ll.000.000.00) in Great War debts. The hl-ands, he added, would be tranaferrfd in DW- menligfjhe debts.

Regional Tariffs And F.C.A. Act Repeal Urged In House

had come when theAJai-Imarug C editors Aflllflflllenl? 5 °

par rendered inc rattve. It might be wlae to alocep no more applica- tions under its terms and leave ti. 4n apex-alts: clinly long éll0ll%ll fr:

cleiailrnupe lath hawatkfil. _ m ‘mo, a A - {lion in certain provinces, gr unlbt

ithdrawlm its application. w a former minister of public works made the a Atlon - canoe o. number 0f Inner: have

they believed the opera- olflghe act, while bcnellatn and ul mom provnos of Ontario. has practical _ the limit u, umfuln and they have to!

l in the randy loans. m o ly vocalp l

me that. in their opinion it is stand- ol their receiving do they ad- la repeal or that reason anal n!

but. thll! rovlneial moratorium laws alone {he some lines

_,_._..,..__.v

vestmcnt houses approached the Government with the sug- gestion that they might be allowed to submit bids. The Government agreed to this and received bids from three syndicates.

"In the third place. the bids were not for different matur- ities, but all bids were for the some term and as far as the Government. was concern-

ocl no other maturities were contemplated. "in the fourth place. al-

though reasons for l'f‘_li3(‘l.l0ll of the bids have not. been made nubile. the syndicates which put in bids were informed of the reason. namely that the Government did not consider their bids sufficiently high. Alter the bids had been ten- tatively YGJGCLCCl, the company which had submitted the hi h- ast bid, namely W. C. Pitfeld and Com-puny Limited, asked leave to submit s, bid on an option basis, at. a. figure con- siderably hlgscr than any of the firm bi received. This

ucst was ranted, and an colon nus even. to. Mass-ri- Pitficld and Company Limita- thirty days.

In the‘ fifth place, the o1?- vious reason for the Provin- ccs‘s inability to provide a de- tall of financial results for the December 31,

ed“ for

counts for l9 been completely complied and audited. A statement was made. however. to the cam- petimz investment houses to the effect that. the Budget for 1037 had forecast a deficit of 300.000, and that this forecast would notbe far astray in either direction.

"It. ls obvious that it would he quite impossible for the Provincial Government: to issue any (lefltiite statement regard- ing the cietails of the Public Accounts for 1937 until t 6 report of the Provincial Aud-

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“Miss X” Frustrates Attempt Of Foreign P 0 w er To Gain British A r m s Sec- rets.

IDNDON. Feb. 3—-A slim, blond secretary disclosed today how she turned spy and foiled an "alleged plot to smuggle British arms sec- rets to a foreign power.

A trim figure in black, the wo- man counter-espionage agent was identified only as “Miss X", un- folded her romantic stun’ in an- cient. Bow Street police court n: n. hearing for four men accuscu of copying plans smuggled out oi Woolwlch Arsenal.

The defendants, arrested under the official secrets act, were rc- mandod to Fob. 7 when "Mim X" corroborated the prosecutionstoi; of the alleged plot, which involv- ed a. mystery hrouricd coupic named "Stevens" from Moscow’.

The accused quarteitc were P. E. Gladin , until 10228 an employee at the oolwlch Arsenal; Albert Williams. former armament ex- aminer at: lvoolwich; George Who- mack, assistant foreman of the Arsenal's gun section; and C. W. Munclay, assistant chemist.

“Miss X" told of having zlvcu up a secretarial job in i930 to come to London to do part-time work for the War Office Intelli- gence Department.

Aided Plotters 5hr‘. told cf meeti,

Glfldiilg.

r the chief defendant, a tcr joining

"The Friends of the Soviet. Un- ion“, an organization (inscribed as an “anti-war movement." Ginding. she said. hagi an office in the same building as "The Friends."

Eventually, she said, she gain- ed Gladingb confidence and learn- ed photography so she could copy documents.

A "special mission" was tinder- takcn for Giading. she testified. and in February. i937. she rcntcri n London ilai tmdcr" ‘his rii"~'lcn. udiere the photographic was done.

During this period “Afis. in constant touch with Office and phoned

ilm War officials the night before Glarling was; arrest- ed.

Will 16......

ltor is completed and tabled Si“,

hospital Flown To llome In Montague

Ifljavy pmgrilgfii‘ traffic zroni the nzaiu and was rcptnlcci by Qan- aciian Airways cflicznls last night. Two twin motored Dragons were used on the Moncton. Summit-r- side-Charlottcioirvn service lust: ev- ening carrying ten pasrngers. Pilot. H. S. Jones was at the con- trols of one machine while Pilot Gordon Gray piloted the other. Ono of the passengers included Mr. Hncldou M. MucLcan of_ Montague. returning from Hospital in Bostfln. Mr. MnnjLean, who ls $101151}! 111. was accompanied bl’ his sister. Miss A- M. MucLcan, formerly of Montague and a. nurse. Miss Millie MacDonald, R. N . also of Mont- ague. The patient and those ao- com nylng him were fiown to the loss County Town by Pilot Jones who landed the bl! twin ‘motored craft on Manta/ill‘: Riv" ce.

Two flights to the Magdalen Is- lands are scheduled for today l! weather permits it was announced

last night. The bod of illard Collins, four-vear-ol son oi Mr. and Mrs. Wilma Collins, who died in hospital here yesta: will

be taken to his home in the ag- dalen Isands for burial. The boy

flight by a. Canadian Airways piano early last fall. Pilot. Jonas a the controls of twin motored Dragon landed on the beach at Grindsinne xsihhu to pick “n the boy suffcrlngiromwflbibfllldigtiai

WES I-IOWII hBfE 0T1 Bil EIIIETEGIIOY ‘

Naval Reserve In Canada

UITAWA, Feb. 3.—-tGPl-~U=11l- aditms with seafaring cxprrirncc Will be enrolled in a new old-wh- catiun in the Naval Re-iutm under a policy adcptcd by the dcnmlulcn‘ of na-lloual defence and mm atoll when the estimates wrrr‘ iliblrd in the I-Iouze cf (Jomiumr; tonight.

Eirroiiment will ltpjnlxc n» training and no pay. it w,» 1t .ll".."ll There will be no cxirnse ‘tn the government except compilzng of a. lls-t of names and adrcsszs of men physicaiy fit for naval scr- vloe in case of need.

The pIFO-Wil-t» Naval Rmcrvc is composed of men who itudcrgo short periods of, trninzng in vnrlvrts parts of Canada. Some of them are engaged in Maritime occitpntinns and some are not, Some ir-slcln in centres far removed from the sea.

The nmv clc.=s‘f'crr‘i'rrl wli in- clude yntchsnren nnd (ithu-s. who have Maritime experience and who are willing nnd n-blc to enter the naval service should occasion a- rise.

A statement from the depart- ment or National Defence tonight said: “the naval reserve is i0 _bc augmented by a new classlfhatlvn of seafaring Canadians whose per- manent. hcmrss are in Canada.

sicaily fir. for naval service.

e a range will be from 1s to 351m the period of enroFment five years.’

Details of the new plnn have not been worlged out. and will pro- bable be enunciated by Hon. Ian Macgenzic. Mlnialer of National Defence. when the estimates for the department, am before the

TIA

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House.

Eoeryltup a delight

lN. CPreCmier Bases Claims t On Fiscal Need

‘Claims History Supports Con- tention That This Is Dominant ..;.Y;_»_,_.A.;‘ Factor In Granting Provincial

Subsidies.

(By (‘ARL REINKE) (Canadian Press Stuff Writer) HALIFAX, Feb. 3 (OPP-Frank recognition of fiscal need as the basic factor" in determining pro~ vincinl sitlnirllos was urged by lPrcmier Allfzlls I. McDonald to- ‘day as the Nova Scotiu Govern- tmcut began its submission before the Royal Commi-slon on Domin- -i(lll-Pi‘0\'ill('l.’\l Relations

"Fiscal rv-crl of the Provinces ni- wnys has been the riominntrt fac- tor in prauilii‘: Proviilcial subsid-

ins.“ Prcinici“ Nf-at-Ilonu rl ifs-cried. “in spilt‘ ni llu: fact. the Federal Parunuicnt has refused to recog-

exprcss tcmis,

1211a:- tlmt rule in ‘lustory supports our contention in i every example."

The Premier traced the list of ‘subsidy adjustments since Confed- eration, holding that each was ‘promised on a consideration of hfaritirnc needs tit the time ‘of the adjustment. ‘The question today nstill was whether local revgnufl murccs were adequate to carry on the services devolving upon a community such as Nova Scolla in a r-untry such as Canada, he said.

Premier MacDonald's vigorous stand for recognition of theact- ual basis in the granting of sub- sidies closed the ii-st day oi’ the Nova Scctio presentation in which the Gnvcrnmcut proposed a ser- lcs of nnicudmenhs to the Brit- ish North America Act turning over tdthc Dominion several pow- crs currcritiyr administered Pro- vinclallv.

Basically, the Province urged a rrntlj fitment of national tariff illlll frciruit mic policies to reduce

llvll‘ zcoimmit: tliqrhjjlticg Qffpctiijg ti)? Maritime Provinces. Where iim could not be conrplctrvly cor-

"tcclicd, tho Provinci- advocated ad- dcri sulwlrlics awarded by a. Fod- rrni Grant: Commission slmllrir to thr‘ Ausfrnlizm model.

The Province wqs prepared in

lf§ill~l°l‘ tn the Dominion ex- r-luslm jurisill-iiorr nym- nrarkct- Lfl bu" Le 1 t ion. Old

. lvfnlhors’ aiowauccs ‘cc. In com vensntinn to f-c Dsminirm. it. was 3.50 ready l0 llll"ll O'\"‘l' lllCDlllf‘ HIV‘; fllld sucr-cssioir duitcs now collected by the Province.

The Province was not prepared to commit; iisclf to giving the Dcminii-n jurisdiction over mini- mum ungr- ."l'lflll0l1. although it rc-tfi-i umr fc nntrol of Unhm- ptnvmcui. 111:» ico and Employ- mrut. (Wwllilvliftvs, u'n:n;_..and_hows and weakly day of rest

Justice“ ‘iliinister Reserves 5i e p ly

Qnltlvd. Feb a iCPw-Justlce hi: -.t.er Lapointe, in the House of Commons today, reserved reply to n qtltlzllflll from C. C. F‘. Loader J_. b. Woodswortil. asking if the COHJFlllllCllt would take any act. ,ron with respect to certain classes 0f military organization m Can. ada.

_Mr. lvoodsxvorth referred go a Picture in n Montreal Ilellvsllaper shorting a. formutloir of

_ men in Fascist uniform with hands up- raised in salute and said to be

“T9008 under former army offic- ers. He asked if this might be in- vestigated under the provisions of the Criminal Code, or orders in

Council nos-ed to forbid such movements. Mr, Lapointo said he would an-

saver _ tomorrow.

SAN P1110110. Calif" Feb, (AP) -—A mid-air night, crash which destroyed two giant sky bombing (Patrols, took its 11th life today an raised the death toll to l8 within four wcclcs in sen man- oeuvres of the United States Navy's newest. sk wcupon.

In the midst o the night battle ererctse; '70 miles at sen. during a heavy rain squall inst. night, bat- yiioshlp and destroyer officers saw ‘two of the worlds most powerful sky cruisers collide. One burst. into llamm. The other fell in splinter-

3

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Eleven Die In Crash Of US. Bombers In Battle Practice

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; (barlottctmvn Requiwinezits mired in Pvlziiir ids- timaics 'l‘olilccl Yes- terdny.