Steel Strike In U.S. Has Canadian Industry Worried

By FORBES RHUDE janadian Press Business' Editor

Canada can take a short United States stcel strike without major .train. but a long will cause iistrcss.

This seems to be the cross- -ountry concensus-gathered by Janadian Press bureaus - but nth most observers saying it is no early to make a definite as- icssment.

A.relatively p a i n l e s a strike .iould be one in the range of two ACEKS. After that it we” start ,0 pinch, a month would hurt for sure, and much longer might mean-in the words of one ob- server-"an approach to catas- irophe." ' I

Canada gets about a fifth of her .-tcel supplies from the United -itaies and even if the tie up ended today it would cause some

pain. ONE-MONTH DEIAY

The shut-(' ll! of the furnaces. ii is stated. means that deliveries tllll automatically be delayed one month.

Even tho se most optimistic about the immediate future say a In('I( of a few vital items can put a bad crimp in production.

The strike comes in the midst of an already world - wide steel St'2lFCliy and Canadian plants are already working above rated cap- acity and don't make many of the itcms imported.

Major items imported include tilde - flange structural steel in-ams. big pipe, and plates- int-Iuding plates for automobile bodies.

A shortage of wide-flange steel beams would hit the. heavy con- struction industry, including of- fice b u I I d i n g s, power plants, bridges-and even the expansions of Canadian steel plants designed to make Canadians less depen- dent on imports.

MAY AFFECT PIPELINE.

Trans-Canada Pipe Lines Ltd.. now embarked on its 574 mile na- tural-gas pipeline from Alberta to Winnipeg. says it has on hand or within sight about US miles of 34-inch pipe-the size to be used on the Prairies.

It expects to have two crews laying pipe within a fortnight at the rate of two miles a day. The two crews would thus use up the present pipe supply in about 80 days.

The automobile industry seems in good shape so far as its 1956 models are concerned and may get along without major difficulty until the fall. About two-thirds of the steel in the average automo- bile is imported.

The St. Lawrence seaway and power project, using large sup-

plies of Canadian-produced rein- forcing steel. is understood to be in satisfactory shape. Its heavy demand on reinforcing steel. how- ever. will make it difficult for other construction work to shift from structural steel to reinforced concrete, at lsast in eastern Canada.

RAILWAYS IN G0lD SHAPE

Neither the Canadian National nor Canadian Pacific railways expect immediate difficulties.

Whatever the strike's length. steel will soon cost more-already oue United States company still producing has raised its price w a ton and any settlement will be at higher wage levels.

There will be much ”scroung- lng around" for what steel may be available. Brokers. who even before the strike were offering at premium prices steel which they had collected somewhere, may call for higher bids.

Effects will Ixtend at least into next winter. Iron-ore shipments from American points. already below normal because of a suc- cession of navigation difficulties through the Great Lakes water- way. now are stopped for the .r”ike's duration and are piles may be low six or seven months from now. .

Not much relief is expected from Canadian ore because of the complicated nature of steel making.

CAUTIOUS COMMENT

For the most part. cross-coun- try comment was cautious.

In Halifax. H. L. Roper, vica- presldent of Brookfield Construc- tion Company. said jobs now under way in Nova Scotia prob ably will not be affected because their steel quotas have already

been received. A long strike weuld affect future jobs and these might have to try to substitute reinforced concrete for steel. I

In Saint John, N. B.. John Flood

of John. Flood and Sons, said steel for major projects now under construction has already been de- ll zred but would be hard to get for '-iture jobs. 'A spokesman for Saint John Dry Dock Company. commenting that steel has been scarce for several months. added:

"The difference now is that we don't know when new steel orders will be delivered. Before. we had a rough indication. Some Jobs have been delayed several months but none has been can- celled so far."

In Quebec a provincial public works spokesman said a two-weak strike wouldn't affect the prov- ince's current public-works pro gram. but a long - term strike would probably seriously delay steel scbed ' d for delivery late this summer. and such orders might not be filled until next spring.

The Quebec Hydro Commission has supplies on hand or en route for this season's Dfolram.

In Montreal some construction men are thinking of switching to reinforced c o nc r at e or timber beams-in such projects as apart- ment buildings-although timber is also reported scarce.

L. A. For-syth. president of Dominion Steel and Coal Com- pany. said:

"The strike shouldnlt affect us much at this stage but pressure on our mills might get pretty strong In three or four weeks. Buyers will be shopping around for substitut "

Demands Tax Cuts Now From Fat Budget

OTTAWA (CF)-A Progressive Conservative spokesman says the government's fat budget surplus calls for tax cuts now instead of next year.

Donald Fleminlz said in the Commons Tuesday the govern- ment has no right to continue levying high income taxes when it will end the fiscal year next March 31 with a huge surplus

The membe for Toronto Eglin- ton said the basic tax exemptions on, personal income-i.000 for single persons and 2,000 for man ried taxpayers - should be in- creased. He also called for an in- crease in the 20.000 income level at which corporation income tax

changes from I 1)-per-cent rate to 47 per cent.

He spoke during debate on the government's bill to enact a series of minor changes in the income Tax Act. announced in the March 20 budget of Finance Minister Harris. with a 551,700,000 deficit.

Mr. Fleming said the federal treasury ran a surplus of 3274.- 200.000 in the first two months of this fiscal year, compared with a !l36.600.000 surplus a year cari- ier. A large surplus for the full year was assured.

The government's tax bill was finally given second reading-arr proval in principle.

Presentation To Mrs. H. H. Hardy

On Monday evening. June 35. the congregation of Highfield Un- ited Church met at the home at Mr. and Mrs. Ralph Gay to bid farewell to their minister and his wife. Mr. and Mrs. Heher Hardy.

Mr. Stillman Frizzell called the gathering together, and after a few chosen remarks called on Mr. Bently Crecd to read the address.

Mr. Stillman Frizzeil presented Mr. and Mrs. Hardy with a gift on behalf of I-Iighfield Congregat- ion. Mr. and Mrs. Hardy in their pleasing manner thanked every one for their kindness.

The singing of favorite hymns. was enjoyed by all. and following this Voilon and piano selections were rendered by Norma and .la Gay. A delicious lunch was served by the ladies.

Following is the address:

Dear Mr. and Mrs. Hardy:

As the time for your departure draws nearer. we realize more and more fully how deep our friendship and fellowship has grown during the four years you have been with us.

We do not attempt to assess the value of your work in the Winsloe Charge; but we believe the results will be evident for many years as a monument to your earnest labors in the Mast- er's service; and that our con- gregational and individual lives will be richer because of your freindship and example

Farewelia are seldom pleasant but we are happy that you are leaving us omld so much evid- ence of good will and respect. and, on your part with the knowledge of work well done. We hope your furure location will make it pos- sible for us to meet occasionally and continue the friendships for- med during your residence here.

We hope and trust that you will be happy in your new field. and that your labours will be fruitful.

And now we would ask you to accept a little parting gift as a token of our friendship and es- teem. May God be with you till we meet again.

The Congregation of Highfield United Church.

W ThuE"r so

The Guardian Page 13 ,

.n

Receiving instruction from Cpl H.S. MacDonald from Charlotte- town P.E.I. (centre) during an ad- vanced Diesel electric course at No 1 Technical Training School RCAF Station Aylmer. 0nt.. are Cpl. George Carlow tleftt from Langford, Vancouver island. '1.C. and RCAF Station Whitehorse and Cpl. A.o. Sandy Genatly (right)

DIESEL TECHAICIAS

from Winnipeg Manitoba and RC AF Station Mat-Donald. Manitoba. The Diesel electric course. giv-

en lo tradesmen who are quali-. fied Mobile Equipment technicians i

in an advanced course on Diesel electric generating sets. Highly trained SDC('lali5l.S like these RC AF personnel are an integral part of the Air Defence of Canada.

School Grade

System Now

Under Fire From Educators .

FLIN FLON.'liian. tCP) -- An experiment designed to help weak students by doing away with grade failure and clever students by enabling them to go through their work at a fast pace will be tried here in grades I to ill in the school term starting this fall.

The present grade system, based on yearly quotas of work and inn of equal ability,

CANADIAN PLAYS ONLY

TOROTO (CF) A play- house to be devoted exclusively to production of Canadian plays is to be opened here next season. the New Play Society announced Friday. it is believed to be the first theatre to produce only Ca- nadian plays for an entire season. It is to be supervised by J. Mavor

VICTORIA (CF) - The seismtr graph at the Dominion astrophys- ical observatory near here rec- orded a sharp earthquake at 3:59 p.m. PDT Thursday. Attendants placed the centre of the quake in the Pacific Ocean about 470 miles

northwest of here off the northern tip of Vancouver island.

has dominated the school system for several generations and has been under fire from some edu- cators.

it has been mainly criticized because it offers no leeway to the weak student who may have to repeat a grade from the be- ginning. or to the bright pupil who must slow down to the pace of the average.

Several ways of breaking with the one-grade-a-year system have been tried. Among them have been segregation according to ability. enrichment of the curricu- lum for the clever and the unit system. The latter is the one which is to be given a trial in

Fiin Flun.

This unit system has already been tried in Windsor, Hamilton and York County. Ont. if it works out in Flin Flon it utll be ex- panded tn Include grades l to Vl.

Under this system three leveis' of attainment will be establishedi for each grade in the key sub- jects of English, reading and arithmetic. When a child reaches. the level of attainment in one di- vision he is promoted to the next higher one. After one year of this accclcratinn pupils are provided with curriculum "enrichment" in- stead of further acceleration w they will not advance too far ahead of their social age group.

it is felt that unit promotion will affect about 20 per cent of students.

STORE BALE! UP OTTAWA tCP) - Canadian de-

CW1.

partment store sales increased 10.5 per cent in May to an esti- mated Sl02,884,000 from 393.071.-3

000 a year earlier, the bureau of statistics reported Friday. l

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