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CHARI-OTTETOWN. CANADA, TUESDAY, JANUARY 1o. 1950

PROVINCIAL narelrrs GATHER FOR usr

Read by Everybody Covers Prince Edward Island Like the Dew

Truman Budget a ls

Damaged U. S. Ship" Sends Appeal To State Department ~

before a hit was scored. rm be-

(AP correspondent Wayne Rich- ardson, who started on home leave from Chins by signing aboard the nying Arrow u a crew member, is the only newspaper man aboard.)

I7 WAYNE RICHARDSON

Aboard the American freighter Flying Arrow. Jan. 9 -- (AP) — Extensively damaged by 30 to 40 shells from a Chinese Nationalist gunboat, this American blockade- runner lay at anchor tonight in international waters oif the ap- proach to the Communist port of shanghai.

The Nationalist naval -vessel continued to stand guard nearby.

Cnrpt. Da\'id Jones, 31, declared the Flying Arrow unseaworthy and demanded that the United States State Department take steps to provide safe passage into the nearest port for repairs, in accord with international practice for dis- abled ships.

The nearest port is Shanghai. for which this ship sailed early Saturday from Bong Kong in de- fiance of the Nationalist naval blockade and the danger of mines.

Jones said the attack occurred 19 miles oii shore, clearly outside territorial waters.

None oi the crew of 40. includ- ing this correspondent. and the 12 passengers, including seven women, was injured.

The Flying Arrow. however. was hit in many places and set afire. The Royal Navy sloop Black Swan, which was patrolling near- by, helped subdue the flames in a hold and on the nitcr deck in a three-hour struggle. ’

(A Nationalist navy spokesman in Tapiel. Fhnnosa. said the sheil- ing was done by the gunboat Wui- ing. Such a ship usually is armed with no more than three-inch guns. plus smaller six-pounders and machine-guns.

(The Nationalist spokesman said the shelling was intended only to disable the Flying Arrow to save her from complete destruction by plundering into mines planted in the Yangtze estuary).

The master oi the Black Swan reported by blinker that it is “un- derstood" there are at least 20 mines in the estuary.

Venture Began Saturday

‘llhe Flying Arrow venture began at Bong Kong shortly after mid- night Saturday nrorninir. Jan. ‘l. when this freighter sailed with an assorted $10,000,000 cargo for Communist shanghai.

Fearful oi the mines the Na- tionalists said had been planted, i1 oi the crew were given special State Department permission to sign off. Britons and other Na- tionals replaced them.

About 9 A.M. Monday. as the Flying Arrow started to anohor in e. spot Captain Jones estimated was 19 miles off shore, a Nation- alist gunhoat appeared and be- gan making blinker signals. _

"They bllnkororl that mines were bcllig laid." and ‘you must not now enter.‘ Cir-pt. Jones trans- latcd the flashes.

The Flying Arrow did not an- swer. and in a few minutes shells started screaming over the ship. Firing continued for 2Q minutes.

Thirty-eight rounds were fired

Coming Events

.____

“Mail your Films to Garnhum Photo Studio. Charlottetown.

"Como to Card Party at I‘ J. Trainer's tonight, Lot 05.

“Card Party and Dance It hiring Valley HAIL Januari 10"» starting at a r. M. and Dance Vtmfln

"Aucti on Millvlew O irch-

Iali January 11th. tetra.

"Annual meeting of More“ Canadian Legion at rink. Jan. 11th. Pull attendance requested.

"cl-sinus District Lodge. maeu Tuesday, January 10th. at 2-30 P. ‘M. In Argyle Lodge. M8119 Shore.

"Annual meeting oi New Wilt- shire District Lodge will be held at Hunter River, Jan. 11 2.30 sharp,

“Brldlbnne tonight m." Boyd Is "Hooelflnl 9"-

v

at 8J0. foaturinl

n“ quickly 1n the “I20 Di cotton. rubber and caustic soda.

British Answer can

Cflllt. Jones then ordered a n. i110 call for aid to all American and British naval vessels.

(It is not known whether Am. erican naval craft are anywhere in the vicinity.)

"The Black Swan was the only ship to answer. She hove into sight 30 minutes later, giving all mm. "n" Peqilireci which we re. quired very much."

Th6 irilnboat had ceased firing

by this time. The Black Swan came within 60 yards and her wmmalldfl’ "WEB-Dhoned. "I cannot take part in this war, but ii you cannot extinguish the fire with your own resources. we will board and help." ‘This offer was accepted. and a British boarding party helm-d ex. tin-guish the fires in three hours. Capt. Jones estimated 85 per cent of the cargo was saved.

(Nil-mes of the passengers have been withheld. RiChardson said earlier they included two British women and five French and other nationalities en route to join their husbands in Shanghai.)

Appoinimeni To Ciiy Police Force

Lloyd K. Archer. Charlottetown. was appointed a constable on the Charlottetown Police Force for the usual term of probation on a split vote resolution at the regular monihly meeting of the City Coun- cil held in the City Hall yesterday evening. His Worship Mayor B. Earle McDonald presided.

Council members voted iour lo two to adopt the resolution. Coun- cillor M. A. Farmer, Chairman o! the Police Committee. objected on

been reached at the last meeting to give all those who made ap- plrlcation an interview so that all could be looked over. Coun. C. M. Cox voiced his ap- proval of the appointment. stat- ing that Mr. Archer had had his application in for quite a while. Coun. Farmer asked if the man had been examined and ii there were a report before the Council. He stated that he ‘W85 opposed to M.r. Archer's appointment only on the grounds oi fairness. adding "He may be the best man we could ge-i."

Mayor McDonald said he underr-

(Continued on Page t Col. 4') ____________

Former P. E. I. Man Dies In Alberta

CAIGARY. Jan. 0 - (CP) — Walter Dempster MacLenn, 64. consultant architect ior Govern- mcnt House in Regina and a res- ident of Alberta since i904, tiled Saturday. He was born in Char-

lhe ground that a decision had »

lottctown where his father. QA- MacLean, was a foundry owner.

To Resume

OTTAWA. Jan. 9 —(C P) -— With the United Kingdom market declining Canada has decided to allow her pork producers to ship bacon to the United Slates for the first time in a decade.

The industry likely will be told within a day or two that export permits will be made available for shipment of surplus looked or cured pork to the U.S.

The permits will not cover (hi9- monis of iresh pork or whole piss either in live or dressed form.

'I‘hl.a change in policy follows the recent announcement that the U. k. will buy only 00,000,000 pounds or top-quality bacon from Canada this year at a reduced Pr“?! 0i 99 cents a pound.

last year Canada sold the U. K. 100,000,000 pounds A Wiltshire at 36 cents a pound. The drop in price sparked demands that the Federal Government re- open the us. mantel. closed early in the Second World War when the U. K. placed contracts for the shipment of as muoh as 700.000.1700 pound: of Canadian bacon in one year. The U. s. market bad to be cut oii to send every available

W111i aidy." nga lw gm Austin in pel- aau g - ~- - ' '

4

pound of baoon lo the U. K. vWQQIOH-I-AU%MI@"

Expect Bacon Trade

Given Mixed Reception

liepublicaTrs Begin Flood 0f Criticism

Dy DOUGLAS B. CORNELL

WASHINGTON, Jim. 9 - (AP) - President Truman today sent an unbalanced bud. get to a United States congress clamoring for economy.

Unless Congress cuts the bud- get or gives Truman the “moder- ate" tax increases he wants, the Government will live 315.133.000.000 beyond its income in the fiscal year starting July l.

Clerks in the Senate and House oi Representatives read in relays through the W7.000-word budget message longest presidential message in American history.

Long before they were through. Republicans began pouring out criticism and raising cries of “spendthrlft socialism," "juggling," "economic ruin." and "bankruptcy." They promised to fight for spend- ing slashes.

On the other hand. repre- sentative John McCormack, House Democratic leader. call- ed the budget message "sound- ly conceived" and said that in view of the intemationnl sit» uation large spending for na- tional delence is necessary.

._..

Truman insisted the budget is one of soundness. prudence and restraint. He called it a financial expression o1 steps the Govern- ment ought to take now “to re- build toward economic growth and the expansion oi human freedom, in our own country and in the world."

That $5,133.000.000 deficit in sight for the coming fiscal year is the difference between 'Tru- man's spending figure and a. fed- eral income he estimates at $37,-

The budget included billions for military and economic help to non- Conrmunist countries.

But national defence continued in be the biggest expense in the new budget, as in years past.

Fresh Water From Salt

And there was a new proposal. tn spend $1,000,000 to start hunt- lng a way to change "salt water into fresh water in large volurnc at economical costs." Water shortages, the President explained. are a threat in some parts of the country,

The President still was silent on joist what kind of tax increase he wants.

The budget message predicted a "downward trend in expenditures" in the years ahead. and increased revenue ii congress gives him that moderate tax increase. This, he

Premier MrNair, the once, was sent this afternoon.

Protests Violations Of N. B. Elections Act

s-r. STEPHEN, N, a, Jan, s_

(CP)—-Dalton K. Camp, director oi political affairs for the Progressive Conservative Party in New Bruns- wick, said in a statement tonight that he had sent a telegram to Premier McNalr demanding "full investigation oi the gross abuses and violations of the Provincial Elections Act."

He was referring to administra-

tion of today's Provincial by-elec- tion in Charlotte County. Th9 Lib- eral candidate, William N. Camp- bell. Progressive Conservative, 5,54’? to 3.156 with only two small polls un- reported.

defeated Douglas Everett.

Mr. Camp said the telegram to in Ottawa for Dominion-Provincial confer-

He released its text as follows: "The Government has disrnally

mismanaged the administration of this tion. The proclamation of notice of grant of a nor issued in accordance with the instructions under section 48 of the act respecting elections to the Legislative Assembly.

Charlotte County lay-elec-

poli was not posted

"Polling stations have been mov-

ed as late as polling day without rlue and proper notice being given to the voters. Ono polling station was moved on polling day to a house situated within the bound- aries oi another polling division, contrary to section 49 (1),

“By its lack of responsibility

the Government has impinged up- on the rights and privileges of the voters of Charlotte We protest the complete inade- quacy oi for this election as defined in the

‘Liberals Retain Seat In N. B. By-

County.

Government preparations

llowe To Press Piiprop Sales

OTTAWA, Jan. 9 —— (CP)

Trade li/Iin-isicr Howe told a Mari-

time clelcgaiiun today he will im-

mediately opch personal discus- sions with the ment with a view to getting or- dcrs for the collapsing Maritime

British Govern-

pliiprops industry.

The 25-mau delegation headed by Premier McNair oi New Bruns- wick had told a Cabinet commit- toc under Mr. Howe that loss of the British market for pltpr0pS— timber used for shoring mines — had created a serious unemploy-

SB-ld. W111 lend toward a balanced mcnll. situation in the coastal budget provinces. Yet Truman erected caution New Brunswick is hardest hit by

signals. With an obvious nod at Russia, he warm-d that "the threat oi aggression still exists." He asked for more cash - he didn't say how much — to make atom bombs.

Britain's decision to shift the $8,- 000,000 a year purchase to non- dollar countries. That province obtained about $6,000,000 irom this source in 1949.

After the conference. Mr. Mc-

10

nln still

To Open This Morning

ByDSQnryUDonneI

OTTAWA. Jan. 9 - (or) _ Heads oi Canada's 11 governments will gather around a conference table in the Commons tomorrow to discuss plans ior giving Canada power to amend its constitution on matters under provincial juris- diction.

The conference will start at 10:- 30 a.m. EST.

There was some speculation in political circles that the opening will be marked by a wrangle over procedure. The Federal Govern- ment has not drafted an agenda and u s, result matters other than the constitutional amendments may’ be interjected into the dis- cussion.

Provincial Premiers. arriving throughout the day irom their various capitals. said that since no agenda ‘has been prepared they did not know what procedure will be followed.

REPORTS CANCER. FIND - Dr. Irene Vorey Diller. above, of

the Institute ior Cancer Re- search. Philadelphia, has re- ported to the American Associa- tion for ‘the Advancement of Science the discovery oi fungi- tiny invisible p1anls—-gro\ving in cancer. The discovery is said to be one of the most startling med- ical finds oi‘ this century; how- ever. says Dr. Diller, a "great deal of work" remains to be done in the field.

Provincial Elections Act. We de- mand full investigation of the gross abuses and violations oi the Provincial Elections Act."

election

ST. STEPHEN, N.B.. Jan. 9 — (CP) — Election oi William N. Campbell, Liberal candidate ill the Charlotte provincial by-elecilon, was reported by the Canadian Press at 7.23 p.m. A.S.T., an hour and 23 minutes after the polls closed. At that time 31 polls out of 78 gave him 2,489 votes against 1.141 for his only opponent. Douglas Everett, Progressive Conservative.

The Liberal Party thus retain- ed the seat, one of four in Char- lotte County won by Liberal can- didates in the general provincial election of June, 194B. The re- sult restored the standing in the New Brunswick Legislature to the totals of the i948 election: Lib- erals 47, Progressive Conservatives five.

Thie vacancy was caused by ap- pointment of Hon. J. J. Hayes Doone, Provincial Secretary-Treas- urer, to the Senate last July.

To day's successful candidate lives at Si. George. Mr. Camp- bell is a pulp and paper company superintendent and has been ac- tive in community work.

National defence. heaviest cost Nair indicated there was still Mn Everett an agent a. 5L in the budget, was figured at $13: Smile h°P° that ‘he Maflfimes Andrews. contested Charlotte for 545-°0°»00°' might “esume pmducuo“ m“ Wm" the Progressive Conservative Party

FARM LANITS WORTH

The average value oi occupied fanm land in Canada was estimated at $36 an acre in 1947.

With U. S.

ed barriers against the move- men-t oi pork products between the two countries.

Through these barriers trickled: little U. S. fat-back bacon to till demands in Nevrioundland. On- tario and Quebec.

Recently. the U. 5., with a large surplus oi standard-quality pork. has been trying to increase its market in Canada and the embar- go against the U. 5. uct worked to the. advanlale 0t Can- adian producers. The U. S. product would have sold at a low- er price in Canada than the Can- adian product.

Now with the British market re- duced and prices lowered. there have been repeated demands that the Federal Government support the price at bacon and reopen the U. B. market.

n his recent ancuncernent of the Anglo-Canadian bacon contract. Agriculture Minister Gardiner said the embargo likely would be lliied next July when the support price oi 32 ii oenis a- und for Grade A Wiltshire ls wit drawn.

Canada then would have to eon- sider removing the embargo against U. B. pork. What effect

this would have on Canadian prices 1 l ' ‘ ‘ l

ter for 1950 delivery to the U.K. Members of the delegation in- cluded four other members oi the New Brunswick Cabinet, members of the N. B. Legislature and Corm-

mons members from the Province,

representatives of the Maritime Pitprop Association, ofilicers of New Brunswick and Nova Scoiia municipalities and members New Brunswick boards of trade. The delegation presented the Cabinet group with a brie! con- taining what it termed an "urgent appeal" for immediate assistance.

|.l.-Gen. Simonds Sounds lljrmlng

TORONTO. Jan Gen. Guy Simonds, oi the National Defence College Kingston, Ont., today Canadian Club here

Unless Western

chance oi success. urged military preparedness.

Gen. Simonds, administering n verbal spanking to "wishful think- coid war with Russia can be won by means

srs." who believe the

other than "our own efforts." said "We must face up bani facts of life that

and cult own of

dancer-tic civilisation une will dwend on our forts."

l-Ie ww no evidence the belie! that might collapse

internally

A

o!

9 —(CP) -—Lt.- commandant

told the that Russia aims to destroy "our way of life." democra ‘s: keep on their toes in economic and military matters, Russia had every he said. I-le

to the cold msjnten- once and salvation o: our waster-n

to Justify Russia eventually or through popular revolutions an- wean by; "

in 1948, when he was one oi the four losing candidates.

With only two small polls unre- ported — Pleasant Ridge and Wood Island —- when counting ended for the night. Mr. Camp- bell had 5,547 votes, a majority of 2.391 over Mr. Everett's 3,156.

The turnout was light —— a lit- tle more than 50 per cent of the approximately 15,000 eligible to

vote.

Nearly 11,500 voted in the 1948 election. when Mr. Doone led the polls with 6,635. a purallty oi 1,. 862 over his highest opponent. Mr. Everett received 4.733 votes in that election.

Nfld. Legislature To Open On Feb. ‘I5

IT. JOHN'S, Nfld.. Jan. l-(CP) -—'l‘h| second session of the first Newfoundland Legislature will open Feb. 15, it was announced today in the Royal Gazette.

Freighter Adrift Off Newfoundland

HALIFAX. Jan. 9~(CP)— The 7.2864011 Norwegian freighter Grey : County is drifting helplessly in heavy aeaa oii Newfoundland. own- ers of the rescue tug speeding to her aid said here tonight.

The tug Foundation Josephine put out from Si. John's today and ll expected to reach the side oi the crippled vessel sometime to- marrow.

The Grey County lost her rudder 800 miles southeast of Cape Race. Nultouadlend’: southeastern up.

A number oi the Premiers were cautiously optimistic that some measure of agreement can be reached. But they indi- cated they ieel agreement may hinge on a reconciliation oi the constitutional views of Premier Duplessis of Que- bec and Prime Minister St. Laurent.

Mr. Durplessls holds that the British North America Act-—the basis oi Canada's constitution-As a pact that cannot be changed xvithcut the consent of all the Provinces. Mr. St. Laurent holds that Parliament has the power to amend the constitution on mat- ters under Federal jurisdiction.

Until the last session of Parlia- ment. thc power to amend the con- stitution on Federal matters resi- ed with the United Kingdom Par-

liament. Mr. St. Laurent spon- sored legislation transferring the power to Canada. Additional leg-

islation wiil be required if the Provinces agree to transfer power as far as Provincial matters are concerned.

Should such agreement result from the conference. a. formula. for making constitutional amendments will be drafted.

With Open Minds

Premier Macdonald of Nova Scotia told a Canadian Club luncheon in Montreal that he was coming to the conference with an cpen mind. He said there were some sections of the B.N.A. Act whose amendment could be left solely to the Dominion Govern- rnenl.

‘Pliers were some sections which could be agreed upon between the Dominion and specific Provinces concerned; there were still other sections he thought needed agree- ment by a majority oi two-thirds 0r three-quarters of the Provinces. and finally. there were other scot- ions so important that they might be considered to ccnne under the heading oi "the compact" and would seem to need unanimous con- sent

Premier McNair of New Brims- wick said his delegation was “most anxious to sce (he conference succeed in its objective."

“We are here in the spirit oi co- operation and in the hope of ar- riving at general agrcenront," he added.

I-lon. W. E. Darby, Attorney General oi Prince Edward Island, said representatives oi his Govern- ment had arrived at Ottawa with open minds and a willingness lo

co-operate in working out a method oi amending the con- stitution "consistent with proper

safeguards ior provincial interests."

By sumo nrnatnr

WPNNIPEG, Jan. 9 — (CP) - M.J. Caldwell, national C. C. F. leader, said today that in the last parliamentary session the Domin- ion Government failed to face the vital Canadian problem of loss of foreign markets.