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The People's Paper

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‘v Read by Everybody

MERE MAN‘

Our own faults chief concern for these we can cor-

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should be our

The Church exists not upon dol- ~ Ian merely but upon men and ‘ women. ‘ ‘ rect. ' i ‘d’ ' "i Covers Prince Edward Island Like the Dew ulurlottetowntluurdlun Two Cents Annual Subscription Delivered 55.00

Iqfnlfll , Founded ltlfl

CHARLOTTETOWN, CANADA, MONDAY, JANUARY 3, 1938

8 PAGES

B! Mull-PJQL. $4.00; Cunudu llld U.F. M.”

PLANE L OCA TES FAMISHED BA TTLE

BUNFLTBTING nouns run BATTl-EFilllNi

Government Denies Capture 0f Strate- gic City By Insur- gents.

(A. P. by Guardian's Special Wire)

IIENDAYE, Jan. b-Spanlsh Government and Insurgent ad- vices indicated tonight the criti-

cal battle for Teruel still raged with undimlnished fury despite earlier Insurgent reports the city i was captured. i Two feet of snow covered the i battlefield as an estimated 200,000 men fought on in freezing- winter wcathcr for control of the city whose fate might determine the ‘i outcome of the ll-months-old civil i war. i Dispatches indicated Government i trorps held at least the eastern i 1001107! of Tcrucl, 135 miles cast l’ of Madrid, and preparing a coun- I tor-attack to recapture the strate- gic heights of La lllueia, l l-Z i miles southwest of the city. Government artillery was re- , ported pounding Insurgent forces i entrenched there along s llnc sep- i arated from Tcruel by the wood- ‘ ed valley of the Turin River. i Conflicting Insurgent and Gov- ernment dispatches. obscured the exact progre-‘s of the fighting. Though the insurgents reported they completed occupation of the city, Government sources asserted they still held Teruel and that count r tta lcs had "permitted

ftticntlraued on page 7. 001x07

COMING {VENii

DcSablc, now

"Dixons M117. L-4Bl-1-3-1i.

grinding wheat.

"Bingo and Loticry Dance, Web- ster's Orchestra in Cardisfm H811. January 4th. L-434'12'31'1'3-

"Buying dressed chicken and fowl daily untl March. Cofriici

' (it .0 . Lei htizcr Co. m‘ ng e0 g L-l9ti-l2-21-ti.

"Card party tonizlht B90000" at home of Mr. and Mrs. Frsnk MacDonald. IPQOZ-

"Borden Line Club loading h0g5 lambs, caves every Tucsdof- HWY‘ 12 to a. L-348-l2-M-2-5-tf.

"Meeting P. E. I. Poultry Assoc- iation, Agricultural Hull Monday. January 3rd, 8 p. m. L493-

"Mecllxig Milton Junior League

will bc held at rink tonight. L499.

“Buying dress-bi. chicken and fowl duly, correct grading, top prices. Island Cold Storauc Com- pany. L-475-l2-(l0-tf. "KINKORA HALL, bingo- ium-li and dance in Klnkorn Fri- day evening January seventh.

L493.

"Livestock Marketing Board loading livcrtock at. Rrllwoy stock pens Monday afternoon and Tucs-

dov foreseen January 3rd. and 4th. 1.490.

"Book your orders for corn rc- quircmcnts from our first cor for 1938. Off-car prices will prevail while we are ulfiuding.‘ Livestock Marketing Board. 1:496-

"Notice-Ibur Branch Fnrmers institute meeting Tuesday eve-flirts. January 4th. Searlctown Hall. Seeds and new Fertllzer discussed. Come and Join us. H. Myers, Secretary.

L-4B2-1-3-1i.

"loading live hogs Thursday. January 6th Summcrsldc uniii 2 P. M. Kensingtcn some date until .1 P. M. Nicholson Bros. Hunter Rive: Friday, January 7th lmtl noon McEwen 6r. Campbell.

LY-487-1-3-2i.

"Hog growers should which their step, on a rising market, and select the best marketing methods available. co-operatlve mcrkctln! is the best method yet devised and we recommend lt. Livestock Mar- kettng Board. L490

"Raising hogs to proper mantr- llv. and economic feedlnB has M much to do with hog profits as 800d salemanship. We are reslwn" slb'e for "salesmanship" when yo“ entrmt us with selling. but the

FOR TER UEL RA GES

Nations

AerialArmament

(By Devon Francis) (Associated Press Aviation Editor)

At least 30,000 military airplanes ready for duty the world over em- phas zed today the start of the fifth year of international rear-m- ament.

The number of military machines on six continents is estimated to have been increased ‘i5 per cent or more during 1937.

A quarter of the increase, how- ever. went toward replacement of obsolete equipment. The net gain for the 12 months, based on rc- pcrts of factory production. appear- ed to be about 12.000 machines.

A; of Jan. 1,1937, the powers were estimated to have had on hand more than 20,000 warplanes divided among the catcgores which have growl up since the Great War —pursuit, a t to. c k, observation, bomblnn. photographic, training, corsta‘. patrol and transport.

Date from foreign capitals show- ed aerial rearmnixicnt probably was neared to a higher production sci ciuie, in EHYCIJD at least, than a y other branch of the fighting serviccs.

An United States airplane equ'p- mcnt manufacturer calculated world iarqductiopuof airplanes for i937 in

ilfwvrlirsnlv

R E B E PTIUNS WElL IlTTENiiEii

Hundreds of citizens attended the New Year's Day receptions held

. Saturday afternoon by His Honour

the Lieutenant Governor, His Ex- cellency the Bishop of Charlotte- town and His Worship the Mayor. At Government House the guests were rct:ci\'ed by Lieutenant Governor Dc-Blois and Nirs. De- Blois. His Honour was attended by his aides LleuL-Col G. E. Full, Major Rowland Paton, M.C., Major W. J. McDonald and Lt. H. A. C. Scarth and his private secretary, Mr. M. Alban Farmer. _ Presiding ovcr the coffee cups ivcre Mrs. ltlurclocl; MacKlnnon, Mrs. R. L. Cotton.

The gilesfs wcrc ushered into the dining room by Mrs. Noel H. De- Blois. Mrs. G. n. Full.

Assisting in serving vrerc: Mrs. H. L. Palmer, Miss Iphigenle Arseuault, hfrs. J. H. Paton, Mrs. M. R. McGulgan, Mrs. G. H. Bun- tuln, Mrs. R. 1i. ltlorxis, Mrs. P. D. Williams, Mrs. F. I. Andrew, Mrs. W. E. Cotton, Mrs. T. B. Rogers, Mrs. R. It. Bell, Miss Lena MacLure, Mrs. John Ausion, Miss Norah Longwortli, Miss Edith Ings. Miss Virginia SCJIiil, Mrs. R. T. Holman, Airs. J. David Stewart. Mrs. Benjamin Rogers, J12, Mrs. M. A. Farmer, lvlrs. W. J. MacDon- ald. -

At the Canadian National Hotel, guests were received by His Worship lvfuycr Turner and Mrs. Turner. Tau was poured by Mrs. G. W. McLeod. lillrs. J. A. Webster and ltirs. A. A. Iicnncsscy cut. the iccs Serving wcrc Airs. Heath MC- Inlyrc, I\lrs. it. C. Chandler, Mrs. Harry LklpiilOYilt’, Mrs. H. S. Van- Irlcrstluc, Mrs. ll. A. Mcsservey and Mrs. W. A. Smith. Mrs. E. A. Foster, owing to illness, was re- grettably absent.

At the Bishop's Palace, His Ex- ccllcncy Bishop O‘Sullivau was as- sisted in receiving by Rev. Dr. McMahon. Rev. Father Dougan. Rev. Wilfred Kccfe and Rev. George McCormuck.

Finance

(C. P. hv Guardian's Special Wire)

OTTAWA, Jan. LL-Prc-scsslonal work of the Government will open this wrck with a meeting of Cab- inet Cnuncll 'I‘ue.<.'idy at-Whitil l9 is cxpcctcd plan: will be laid for 4hr- Govcrnmentfls prOSFRm ‘if meetings prior to the opening of Parliament Jan. 27.

A largo section of the Govern- mcnt left Ottawa for the Christ- mas and New Year holiday-i hi" a quorum remained in the capital and the absent ones will rein") durlntt the WM!!!-

DEEg-lng the llPTiOd of less than a month rcmrinlnt! 501°" Pa?’ liament meets its is anticipated five Senate vacliu-‘Ps Vi" be flllcri and lf there is to be any rc- n-xnauizcilon of tho cabinet, as

responsibility for proper feeding and maturing is yours. L-497-1-3-2i-

i

f ucntl rumcrcd. that also will igccqcompieted before i110 0179111118-

" General Chlang

____._______.._.:_‘_ L .

Expand

excess of 20,000, four-fifths of which would be warplanes. Later, in revising figures on axmourwed production, he surmised that. many of the machines were being put. in “cold storage" against emergency.

Miltary aircraft production in, Great Britain probably is higher‘ than in any other European coun- iYlI. The Empire as a whole is es- timated to have between 4,500 andi 5.000 airplanes ready.

Most notable among the new dis-

ciples of rearinament in the air was Japan. heartened by performance, of its fliers in the oonffct w'th China.

The biggest tmknown element; in- the international military picture is the Soviet air force, estimated to have as high as 4,500 airplanes.

Italy and Germany have con-E centrated the r energies on the avl- » atfou branch of national defence. Military observers say Premier Mus- solini could count on 10,000 first- llne pilots in emergency.

Germany's air force, regular and; reserve, is described as between, "$0,000 and 110,000 men” but the figures may be subject to discount.‘ .1n first-line airplanes, the Un‘t'-‘, ed States has less than 2,000 ‘n the ‘ army and navy. but the buildingi program is heavy.

Young Pastor Dies At Fredericton, N .B.

FREDEHIICTON, N. B., Jan. 2 - Rev. Myron Donald Oliver, young pastor of the United Church of Canada at Marysvlllc, died of pneu- rnonla in hospital here today. He, was born at Trenton, N. 5., a son ol Mr and Mrs. H. M. Oliver, grad- uated from the Mount Alison school of. Theoivs! and "in 1931 graduated from Pine Hill Divinity Hall, Halifax.

Ordained at Sackville during the 1931 United Church Maritime Con- ference, he took his first charge at Waweig, N. 13., and in 1035 was call- ed to Marysvilic. .

BiiIANB iililii’ PR EMIERSHIP

Will Devote More Time To War Ac- tivities. ' SHANGHAI, Jan. 2—iA P)—

Kai-Shel: has

given up the premiership of the Chlnee National Government to

MYRSEFBA biaatag Says Budget Not T0 Balance

devote all his time to prosecution of the conflict with Japan, it was announced today.

The announcement, from Chung- king, far in the inland and one of China's emergency capitals fol- lowing the fall of Nanking, said Dr. H. H. Kung had accepted chiougs pcst as president of the cabinet in a reorganization that merged the railway and communi- cations ministries and changed the industrial ministry to the ministry of economics with brcadcned pow- era

The navy ministry was abolish- ed temporarfy, general Chlang combined the navy with his ad- mlulstratécn of mllitmgv iiffifrs.

Chinese hsrc took the reorgap- ization as an indication of the Government's detennination t0 continue resistance.

Chinese said the change brought the Conservative element into greater prominence, drlsprovlng rumors the Govcmment was tak- ing on a radical hue.

Meanwhile it is expected there will be early announcement of the steps the Government proposes to take regarding unemployment in- surance which received a slight setback when Quebec. New Bruns- wick and Alberta declined blan- ket agreement pending full de- tafs of the Government's plans.

sum speculation was removed from the budget forecasts when Finance Minister Dunning. in s. New Year statement, indicated the Prairie Province drought had made such inroads into the treasury that s balanced bud-get this year would be impossible.

Mr. Dunning did not promise t0 balance the budget this year but expressed a hope in his last bud- wet address that the deficit would be within 885000.000 and that it

would be balanced next your.

H. H. Stevens, leader of the Re-

AR t GUELPH, O:1.t., Jan. 2—R€V. i‘ unc of the most widely: kumvn; short illness. i , _ q N e w s p a p e l, _ Presbyterian Church in Guelph

J. MacGillivray, 70, former moder- iclcrgymen in the Dominion. dicdi For E years minister of Knoxi ' Dr. MacGllllvray, was recognized, m"'.l Killed On Ter-

i ' . i mo!‘ of the General Assembly of the Presbyterian Church in Canada and . ' in the Guelph General Hospitoli NOiCd A. P. W 1' 1 i; 6 r i Saturday, 1m death folowed ai And Two Otheri as one of the leaders of the church: he served for more than four rle-i

cades and his work on various

“e1 Front’ church boards and committees: ‘A- P- by Gordon's sow-l who iiiiiiihtfiflbTnfaiide °°““°°i°“ ZARAGOZA. Spain. Jen- 2- Born near Port Elgln, our, Dr.‘

Edward J. Nell, Associated Press war correspondent with the insur- cent armies. died today at the Red Cross Hospital of shed wounds he received New Year's eve on the Teruel civil war front.

Two of Neil's newspaper com- panions were killed and a third slightly wounded when a 75 milli- metre shcll struck their automo- bile at the village of Caude. five miles from Tcruel. 'I‘hcy were re- porting the insurgent offensive which resulted in recapture of Terucl in the greatest battle of the civil war.

Nell was with E. R. S. Sheep- shanks of Reuters News Agency, Bradish Gaillard Johnson, Har- vard graduate and correspondent of the mngczine “Spur" and "News Week", and Hurry Phllby of the

MacGilllvray was educated at Rldgetown High School and the i University of Manitoba. l-Ic rccclvczl his Master of Arts degree at Prince- ton University and graduated from the Princeton Theological Seminary.

JNIIFFIELIJ is RlllSEIliil Rilili or viscouu

i

LONDON, Dec. 31—Onc new Vis-

Time-s 0f London when the shell count, five 1311113115, three Privy‘ Diflllghcd into the front of the Councillors, five Baroncts, 59‘ automobile. Knights Bachelor, and one C0m-‘

Johnson was killed outright. panlon of Honor lead the long llsti

of those whom the King honors on New Year's Day.

Baron Nuffied. whose lliliiall- throples are counted in the m llions sterling, is elevated to the Vis- coiultcy. _

The five new peers, each with the rank." of Baron are:

Field-Marshal Sir William Bird- wood, fonner Commandcr-fn-Chicf of the Army in India. Thc pCorngc is conferred for public servicss since the Gicat; War.

Sir Leonard Campbell Brnsscy, former member of Parlamcnt for the northern division of North- amptonshlrc: for political and pub- lic services in the Midlands.

Sir Francis Ganzohl, M’. P., for Ipswich. His elevation to the peer-

Shecpshanks. also taken to Zara- rzozn, died F’rlclay night. Phllby was only sliszhtly injured.

Neil was given one blood trans- fusion on the bntfcfleld before being taken tolthe hospital at the insurgent base here. 100 miles‘ north of ‘Feruel Other trnzisfus- ions followed and he seemed out of danger until complications de- veloped. He died at 12:15 a. m.

The tall white-haired Neil. who would have been 38 years old Jan. 17, first became. known to North American sports fans for his col- orful accounts of heavyweight championship fichts and other big sports events. His oilistandlng war stories-first in Ethiopia and later

in Soain-Avere written in the a . ~ , ge will mean a bye-e ection. same iiranhic SM”; Sir Henry Lopes, charman of the At death Ncll was surrounded Devon 0mm“, councu

by felow journalists, officials ot’ the insurgent prcss department and specialist surgeons who had done their utmost to save him. Neil he'd silffered fracture of one leg and other wounds to his legs and abdomen-Bi in all.

The masque informing the As- sociated Press of Neil's death was sent by Licut.-Col. Lambarrl, an insurgent press officer. It said:

Sir Percival Perry, chairman of Ford Motors and a director of the National Provincial Bank.

The new Privy Coimclllors:

Sir John. Euderson, former Gov- ernor of Bengal.

R. S. Hudson, parliamentary sec- retary to the department of over- seas trade.

lord-in-waithrg to the King.

"Deeply grieved stale léldélle Nell died at 12:15 p. m. o ay ' complications a-rlltslng spite yes- Bo- Parhgment . terday's two lie ood rans- msmm OM mo“ “were m“ Conciu es Sessions dmemes". womvmns. N. s.. Jan. 2 -

Two days before the shell of a. condudmq $65550!“ of ‘he Mnflhmo

Government barrage struck the ‘ ‘ v __

newspapermenis car Nell filed 71ml“ QPdUQfiETlF-‘S from Caude what was to be his "- Acad“ n "its Yvimsce Wtw_1__ - 5E 8mm lutlm New Years eve, c.tp_. . i . 9 ' ‘ the leader oi’ the oppostion as

In it he told bow with glasses from thc edge of Caude he could sec the Tcrucl Seminary where the bclcriircrcrl insurgent garrison of Teru~l and civilians in their carc had withstood l0 day; of at- tacks by the Government forces that held the city.

He rcportcd how "foreign news- papermcu (“rcuiatlnc freely on] thLs insurgent front" were wit- ne ing an assault on Govern:

deputy premier.

Glendon Vincent of Saint John, was named New Bnmswick rte-ist- ant on the. Upward Trail. the pm’- ilamehtfis official puhbcatinn. and Earl Inard of Cascnmcec, Print" Edward Island's assistant.

Neil Canter of V/cndrtcck. N. h. minjgtpv- of n-Tzst-lvaiuny was unlit- ed leader of the ‘Pccnusiv-iw-i-wii party. w'th Lawrence Ho" of Frid- erlctou. minister of wor'd brother- hood, ss alternate.

Premier Allison London of Saint John, was elccted sneaker for n. zt year's sessions. and Robert. Blots of Ffalfax. mhilstcr of phvslcol af- fairs. was named to aticvd the leadership training camn at Chlo- vnan, N. B.. next summer as par- liament representative.

Efrvotian Premier Proromles House

CAIR/O, Jan. 2—'I‘he Government of Mohamed Mahmoud. new prem- fer. confronted by a Wafdist (na- tionalist) party majority. decided‘ today to proroguc parllamcnt for one month starting tomorrow. |

(Continued on page 7, Col. '1)

Stevensdacks Fishermen

HALIFAX. Jon. 2 -(OP)—Hon.

construction Party in the last. Canadian eiection suggested here Saturday the presidents. directors and managers of the Nova Beetle. fish firms which relfuscd to raise their prices. should go out on the

chooners and trowlers and "stay on m L the m ,1,“ m ; ‘mm the! “wk” a wtiiement", time epgrgiritted ‘under thendundii- i The officials thus would ‘get “mom ~

some knowledge of what the fish- ermen are up lsainst." Mr. Stev- ens said.

(The Lunenbu g, N. B. fishing tleet_wa.s ordered tied up by the Fisherman's Federation last ‘Ihursday when the buyers de- clined to rnect the Fishermen’: request of 1-4 cent per pound in- crease in thepricc of haddock.)

‘The former Canadian Minister of ‘Prado and Commerce in the Bennett Administration termed the refusal "absurd." He sailed fcr England aboard the Steamship Montclan Botuxdiu

Mahmoud, appointedJast week to succeed Premier Mllstnuhn i Nahas Pasha as a result of o quarrel between King Farouk and; the former Government. had been; reported intending to mil for new,’ elections to gain legislative sup-i port.

BUTLER, Ind. Jan. 2 — Seven young persons. a'l of high school, age were killed tonight in this, northeastern Indiana town as tho automobile in which they were Yifi-E imz crashed through cross m: not .1’ into the side of a speeding passen- ~ m train t

Brig-General Earl Luoan, former -

, acrial

SURVEY

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Pug“ |]EE p Desperate Plight‘

; Isolated 39 Daysufri- Frozen Muskeg i ‘Country Near Ontario-Quebec

liiifl SHANTliiiG

Advance On T h r e e Fronts —— Terrorist Reign In Shanghai Fearced.

SHANGHAI, Jan. 3—(Monday)— ‘ ‘ 'l‘.vo Jupailcsc columns drove deep

into the lit-art, 01 rich Sliautung Prcilncc on the Ycllov; Sea today, vutiul; oli the westwalri avenue 0i

' pull-om lilC important port of '1‘. lgiil‘) lll'.\;ll'(i which a third army atlvnuccd.

Thc itllilil\\'£t.l'd advancing col- iillblln r r" capture of Tuiun, .1 the Clkczitsl Pukozv flllcl‘ a bilicr defence by larg. Lil {H140 luicc. Japanese Sfllfi dcfcndrrs retreated Jlihlfl to Ycnchoiv, a

nth of

At . . . ‘in: S r ilfxii'(2f.Ollt, the. Jap- an ‘ .qucrors fcarcd a CiliHESO ca palm of terror was developing

ag nst thcir efforts to consolidate control of the city.

A spo sscd the Jap- aucsc m ‘s incrrna. q concern at the alfu on Japanese and Chin- cse (‘Ofljlflliliiflff with thcm. He ex- prrs-scd zipprcc atinn of the emer- gcncv measures takcn by authorities .0.’ the Tntcrrmiionnl Settlement to ital‘. violence but indicated the Jnpnnosc fall they should have been mo": rlrrwiic.

‘Thc terrorists claimed another victim lorlav when Chang Hsin, a Piuncso l?C\\'."-',)3l)t’l‘m3i1, was found shot to rica‘h. Thc hand believer] responsible for his death warned ncwsprrpcrs they would kill anycn" _rii.*‘c0\'f‘l‘t"rl llai-‘ng (innings with the Jnnnrzrsc. Tficv accuser] Chang of espinnnqo for thc Japanese.

Lo Pair-Hone. lender of the Shanrhal ciiizcils’ association and one of China's greatest phian- ihr~p s. was assaxslnateci Thurs- cause it was believed he favnrcd cooperation with Japan.

A homc-marle bomb yesterday was throivn at the homo of Ku Shins. the second most important member of the association, but did no damage. Japanese also dis- closed a bomb was thrown into the garden of the Japanese Con- sulate-Gszlcral in the French con- cession but failed to explode.

Thousands of Chinese refugees were turned back to Tslngtao by the Japanese drlvc. from Tsingtao said many foreign- ers equipped their homes ‘with shotguns and revolvers in the event of an out-brook of lawless- neas.

Sposumdlc looting continued, lmiklllg! the streets dangerous from intermittent firing. The Chinese police, their ranks depleted. oper- ated under the emergency civilian uovernmcnt.

Wolfvliie Store And Warehouse Burned

VJOLi-‘VILLI-T. N. 5., Jan. ‘J-Third fire ‘u Wolfvlllr- in lea-s than 3f) ho’ " n blur.‘ Non" Year's day dr- md w archouse nwu- ' Snlrmrri. Dumzrzc was r-llmutcd at $2.000.