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President Eisenhower listens closely to a recording of his own voice as broadcast from
America's new 4% ton satellite
The Eisenhower’s
orbiting in outer space. broadcast of
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llSTENS TO OWN VOICE
Christmas peace message from the satellite was picked up at Cape Canaveral. It was re- corded tlhere, relayed to the Pentagon, then to the White House. There the President
Anni-riled II Second Class Mall b Department.
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“Covers Prince Edward Island Like The Dew”
CHARLOTTETOWN, CANADA,
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heard the playback of the mes- sage while seated in the office of Press Secretary James Hagerty. Associate Press Sec- retary Anne Wheaten stands behind the President.
al Product
_+Rises; But Not Volume
10-
By HAROLD MORRISON
OTTAWA (CPI—A price rise will boost Canada’s national pro- duction this year. But for the second consecutive year. there will be no rise in volume.
That was the prediction of“ the bureau of statistics Monday in a preliminary estimate which indi- cates the 1958 gross national product—avalue of all goods and services produced —— will touch 92.011X000,0m, up from a year ago.
; “DRAINAGE” ENDING
The two4per-cen’t rise would be entirely because of higher prices. I There would be no higher volume, a contrast to the average four- 3 per-cent rise in volume in post- war years and the peak increases of nine. per cent in 1955 and seven per cent in 1956. two highly prosperous years. But there was at least one
i For Nearly AII
BY THE CANADIAN PRESS Most Canadians can look for- ward to a white Christmas. With Plenty of snow on the ground, the V forecasters predict continu- ing cold weather and little chance of a thaw by Thursday. This month has been one of the coldest in years with below-nor- tnal temperatures in most prov- V mess and heavier - than - usual ‘ Cnowfalls. . Although temperatures have filmibtxi to near normal in the last few days. forecasters don't erDect the warming trend will ‘ u’l’blhe Christmas scene of its traditional winter-white. However, there are exceptions {1141 Calgary expects a green fes- tive season. The southern Alberta city has only a few patches of ‘11er snow on the ground and the forecaster said no fresh snow is In sight.
Royal Family . Norfolk Bound
LONDON (Reuters) .— Holiday c"(’st shouted “Merry Christ- “‘35” lo the Queen and her two children as they left London by “all! Monday for a Christmas
hdal’ at Sandringham, their 0"unify home in Norfolk.
The Prince of Wales. who in-
ed his right ankle in a fall at
“1100] and has it in a plaster cast for Christmas, hobbled cheerfully
hind the Queen along the plat- form.
Neal‘by camc Princess Anne. “1113 trouble with one of the royal corgi dogs, The crowd laughed as she finally pushed if “p the steps of the special royal coach.
The I‘0yal party. which Included the queen Mother and Princess argal‘el. for the first time used a regUlar scheduled train in "Old the complications 0“ run-
significant trend which seemed to point a stronger year for 1950. The drain on inventories—the eat- ing up of existing stockpiles of goods rather than adding to them —seemed to be at an end.
In fact there was a little rise in inventories in the JulySelptem- her period instead of the big chop-downs that took place dur- ing the first six months.
This drainage of inventories. together with smaller spending by businessmen on new economic ex- pansion, were the main causes of the 1958 recession.
SIGNIFICANT TRENDS
The housing boom and higher spending by consumers and gov- ernments helped take up slack. Industrial wages paid and farm earnings showed slight increases while corporation profits tended to rise after a decline earlier in the year. ’
, White Christmas In Store
Canadians
said the odds are against a white Christmas for this area and pre- dicted a cloudy Thursday With some rain.
Saskatchewan a nd Manitoba both expect to have “a good white Christmas with lots of snow on the grou-n ."
Ontario’s weather ls expected to be mild for the next few days, but normal for this time of year.
Cold weather is expected to continue in Quebec with temper— atures near 20 during the day and dropping to zero overnight. Snow flurries have been forecast Tues- day for Montreal and Quebec City. .
Prospects. are good for a white Christmas in the Maritimes. The weather was clear and cold Mon- day with forecasts for milder temperatures but also more snow. A snow cover of between six inches and a foot is spread over most of the Maritimes. Un- less a tha‘w occurs. Halifax and the southern Maritimes Will have their first snow for Christmas since 1955 and the second White Christmas since 1948.
STORES CROWDED
Meanwhile. Canadians crowded into department stores and. other shops Monday for late Christmas shopping. Many stores remained open at night and shoppers. cros- sed streets strung with brightly- colored lights and other decora- tions. I .
In many centres. the Civic tran- sit systems are running popular bus tours of Christmas lights.
FLOODS FATAL
RIO DE JANEI‘RO Welders!» Floods, and landslides caused the deaths of at least 40 persons here following an unprecedented all-- night rainstorm.
Police said thousands of others were injured and homeless. Most of the victims lived in flimsy hills on the outskirts of the city. Their
homes were crushed by fall; of
“ing a royal train th‘“‘l’3h a”
h°hdav traffic.
rock. and sand‘
Here are some of the signifi- cant trends of the JulySeptem- her period:
1. The gross national product was running at an annual rate of $32,388,000». up from $32,176.- 000,000 in ApriHune and $31,680,- 000,000 in the July-September pe- riod last year.
2. Canadian labor earnings edged ahead to 316.196.000.000 in the third quarter from 516.160.- 000.000 in the second and $16.- 048.000,00 last year.
3. Corporation profits, calculated before taxes. also rose to an annual rate of $228,000,000 from $2.216.000.000 in the second quarter but they still were down from 32.420.000.0p0 a year ago.
4. Net earnings of farmers showed a slight decline to u8 an. nual rate of $1,220,000.000 from $1,276,000.000 in the second quar- ter but they were strongly ahead of last year’s $1.092,000,000.
Dogless Head Tries To Drink
BERLIN (APl—An East Ger- man setter dog has been given another head by Soviet scientist Vladimicn P. D e mic h o v. says German Communist party news- paper, The experiment was car- ried out Friday in East Berlin.
The paper runs a photo show- ing the setter lying on a table, his own head between his paws. At- tached to his right shoulder is the head. chest and fore paws of a little puppy. The puppy is at- tempting to drink milk out of a pan.
Neues Deutschland says both the setter, named Fack, and the puppy, named Tap. were still alive Sunday. Demichov earlier carried out a similar experiment in Moscow, keeping the dogs alive for two days.
Cuban Rebels Press Ahead
HAVANA (APl — Rebel forces claimed Monday they have cap- tured the village of Seville and tightened their ring around San‘ tiago, the island's second largest city and a major Caribbean port.
A rebel broadcast said govern- ment troops were forced to with- draw from the village. near El Caney. the town of 1,300 that lies just north of San Juan Hill and four miles northeast of Santiago.
As the rebels of Fidel Castro kept pressing toward Santiago. a city of about 120.000, President Fulgencio Batista‘s government forces were reported stepping up defences. Batista ls said to fear the rebels might capture Santiago and make it the capital of an in- surgent government.
A report by the insurgent radio said two Cuban frigates shelled Caimanera. a town of 5.000 just outside the US. naval base at Guantanamo Bay in an attempt to rent rebels there
TUESDAY, DECEMBER 23, 1958
WEATHER
Cloudy with Intermittent snow; much
milder; southwesterly winds 20.
high 5 and 20.
18 PAGES
Seek Cause Of Explosion Fatal To 4
MONTREAL (CPI—Four per- sons died Monday in an east-end tenement w h en an explosion ripped the two - storey building building apart and flames swept through the ruins.
Three other persons were in hospital suffering from burns. One woman was reported in seri- ous condition.
Cause of the explosion was still
night. Crews from the Quebec
found no traces of gas.
blown out.
mashed. Three of the dead were chil- dren; the fourth an adult.
IDENTIFY BODIES
Civil defence officials identified the dead as John Racnkowski, 42. his daughters, Nellie, 5. and Danuska. 4, and Lucie Goralczyik. 2. Both families were immigrants from Poland, one of them re- cently arrived, said a spokesman.
Mrs. Raczkowski. Mrs. Goralczyk and seven - year - old Henry Goralczyk.
on the ground floor.
RUNS T0 BUILDING
ing and by the time he reached there flames were shooting from the ruins.
“I got inside and saw a woman lying with two wooden beams across her. I eased the beam 011’. She didn't want to leave, saying one of her children was in the
bundled her up and took her out." The woman was Mrs.
hospital.
Vote Strike Against Ford
WINDSOR. Out. (0?) — Em- ployees of Ford of Canada plants in Windsor and Oakville, 0nt.. have voted overwhelmingly in favor of a strike, the United Auto Workers union announced Mon- day. The union said the vote was 98.3 per cent in favor at Oakville and 96 per cent at Windsor.
UAW publicity director Gerry Hartford described the vote as “an overwhelming support of the union's stand in the negotiations with Ford."
No date has been set for the strike, the union executive hav- ing been left to decide this point. The contract with Ford expired Aug. 31.
French State Vastly Changed
PARIS lReutersi—France Mon- day began going through the mo- tions of handing over virtually supreme power to Gen. Charles de Gaulle as first president of the Fifth Republic.
Althouh the formal transfer will not take place until Jan. 8, outgoing President Rene Coty launched his series of goodbyes in meetings throughout the day with political leaders.
Final official returns from Sun- day's election showed de Gaulle captured 62.395 of the 79,471 valid ballots for president cast by a specially picked electoral collee. This represented 78.5 per cent of the vote in France and its over- seas territories.
Communist G e or g e Marrane gained 10.334 votes and left-wing university professor Albert Cha‘ telet 6,722. They were de Gaulle’u only opponents in the poll. ALTERS POLITICS
Since the wartime Free French leader returned to power last June 1 he has completely altered French politics. The l2~}’931"°1d Fourth Republic went to the gal- lows on Sept. 28 when the nallon voted overwhelmingly in favor Of a new constitution with a vastly more powerful executive.
under investigation early Monday Natural Gas said earlier they
Walls of the brick and wood building, on Gascon Avenue, were Rubble and flames were hurled in all directions. Two parked cars were damaged, one nearly buried by wreckage. The cementsblock wall of an adjoining multiple - dwelling building was
By HAROLD K. MILKS
MOSCOW (API — The Soviet government pledged Monday to boost its spending for industry, sci: I fic research and social “cl. fare in 1959 without direct new taxes.
Fresh attacks on discrediled former leaders, called the anti- party group, marked introduction of the budget for the new year— balanced in the black like all So- viet post-war budgets—before a joint session of lhc Supreme So viet.
Premier Khrushchev nodded support from behind the Speak-
er's stand as Finance Minister Arseny G. Zverev reeled off such budgetary news as:
Formal appropriations for de- fence will decline slightly.
CUT GOVERNMENT COSTS
Cost of running the government will be pared.
There will be increased funds For maternity benefits, education. housing. wclIare in general and agriculture.
Revenue in the coming year is est i m a t ed at rubles. an increase of 9.3 per
cent over 1338, and expenditures
at rubles. a rise of 10.8 per cent.
At four rubles to the dollar, the official rate considered reason ably accurate in the govern- ment's domestic dealings. that's an income of $11!).7'25.000.000 and outgo of $176.800.000.000.
No Western government ap- proaches those massive figures.
(In Washington Monday Presl- dent Eisenhower announced that the United States budget for the next fiscal year will be balanced at around with higher defence expenditures than
(Continued on page 5 Col. 51
In Notre Dame Hospital were Stanley
The building Wes occupied by the Goralczyk and Racakowski families, the Raczioowskis living
One report said Mrs. Raczkow- akii was going to the basement when the blast occurred. She had just opened the basement door and was hurled back. She waswmmcu, - taken to hospital in serious con- dition from second-degree burns.
Gerard Aiilbert, Ki. who lives neanby, said he ran to the build-
MONTREAL (CPL—AA spokes- man for the Dominion Steel and Coal Corporation and its parent company, A. V. Roe of Canada Limited. said Monday Sydney. N.S.. is "still very much in the forefront of all Dosco plans for the future."
Public relations director Arnold Patterson was commenting In the absence of executive director A. L. Fairley on a brief by the Cape Breton Labour Council pre- sented last week to Sydney oily
W.
The brief said there were Indi- cations that A.‘V. Roe intended to close its huge steel plant at Sydney.
Mr. Patterson said the labor
Pontiff Will Visit Prisons
wreckage. The fla mes were breaking out around her so I just
Goral. cayk. An ambulance took her to
VATICAN CITY (AP'—»Prece~ dent-breaking Pope John XXIII has announced that he .plans to visit the jails of Rome on the day after Christmas.
Vatican sources said they could recall of no other Pope in mod- ern history who has ever gone to Rome‘s prisons at Christmas .or any other time.
The Italian peasant's son who became pontiff of the Roman Catholic Church only eight weeks ago made his announcement cas- ually during a brief talk with 200 Rome parish priests.
It was also announced that Pope John will broadcast the first Christmas message of his reign at noon local time 17 am. ASTl Tuesday.
The 77 . year - old pontiff will speak in Italian for 20 to 25 min- utes from the Vatican Palace.
Recordings of the message will be broadcast later by stations in Canada and the United States
and thronghout the world.
brief followed speculation "we're going to build not only a cold rolled mill but also a hot strip at Contrecoeur. near Mont- real.
IMMEDIATE BENEFIT
He said that plans for the hot strip mill. now under considera- tion. would be of "immediate benefit" to Sydney 1! they mate- rialized. Slab from Sydney would be used in that mill.
The company would prefer to looate both new mills at Sydney, where the primary steel mill rep- resented an .investment of him- dreds of millions of dollars. and where a skilled manpower pool existed. But economic reasons ruled it out.
“The reason we're locating In Montreal is that the market is‘ln Quebec. Mr. Patterson said. “If we don't locate the mill here. our competitors are bound to. which would place us in a veg unfortu- nate position?
HIGHER RATES
“Freight rates on flat rolled products, being very much higher than the rates on primary steel. rule out the possibility of flat rolled facilities at Sydney.
“But the positive thing is that Sydney is still very much in the forefront of all Dosco plans for the future. Sydney is the centre of all Dosro operations and will continue to be. because that's where the primary steel plant 15." -
Mr. Patterson said that about 250 men had recently been laid
Predict 80 Are To Die
OTTAWA lCPI—The Canadian Highway Safety Conference has forecast 80 deaths on Canada's highways ove? the holiday period from 4 pm. Dec. 24 to midnight
Jan. 1.
Cpl. Douglas Chcnicr. Icfl. of Cornwall. Out... and Sgt. Bill McCarthy of Chatham. .\'.B., do some last minute Christmas shopping in Gaza. It is rumour- ed in the Canadian camp at Ra» fah. Egypt. that more my
LAST MINUTE SHOPPING
camels and camel saddles have been sent home by Canadian soldiers than there are camels
in Egypt. Both are members of No. 36 Signal Squadron. Royal Canadian Signals. serving with
the UNEF in the Middle East.
Sydney Is To Forefront In Dosco's Future Plans
off at Sydney. but thIs had no bearing on long~term prospects. The company was simply "fol- lowing its order book."
DE-ICING FLUID
NiAN'I'UCKE T. Mass. (APl Fred Smith noticed the wing of his plane was covered with tea as he prepared to make a abort flight.
He reached Into “walk case, pulled out a quart of whisky and wiped the wing with It. The Ice melted and Smith took 0“.
Demonstrate Against U.K. Missile Base
IDNDON (Reutenl—About an anti - n u c 1 ea r demonstrators. mostly London university stu~ dents. gathered outside Prime .linister Macmillan'; London res- idence Monday night to protest against the weekend arrest of Rev. Michael Scott and his sup- porters at an Anglo - American missile base.
Police blocked off the area and asked the students to leave. Some “clined and there wene a few m nor scltfles. Several demon-
raloed were arrested and charged with obstruction.
Scott. an Anglican clergyman who has championed the cause of colored people throughout the world for years, was arrested with 44 other; Saturday after a “non-violent" attempt to hinder workmen at the missile launch- Ing base.
He and several of his support- ers are spending Christmas in jail, having refused to stay away from the be» until their trial.
Storms Buffet Most Of Eumpe
LONDON (Reuters' — Nature welcome the Christmas season in Europe with a blast of bad weather Monday.
At least 12 persons were killed and 6.000 made homeless by storms which have swept across Spain in the last three days.
A 90-mile-an-hour gale sank several fishing boats In Malaga. Landslides blocked the Malaga- Madrid rail line. In Seville. 5.000 persons were evacuated when the river Guadalquivir rose 2! feet.
In Portugal. Crops were dam- aged and homes destroyed by floods brought on by nearly two weeks of heavy rain. Forty per. sons were stranded on the Ber- lengas Islands off the coast. LINER BUFFETED
Atlantic storms off southwest- ern England buffeted the Cunard liner Saxonia. bound for Soul - ampton with 400 passengers from New York and Halifax. The ship docked 30 hours late.
In southern France. families driven from their homes by week- end floods returned to take stock of damage running into millions of dollars.
The one bright. unseasonable spot in the weather picture was West Germany. Roses and apple trees were blooming in Cologne in temperatures of 50 degrees while in Sieburg. near Bonn. a gardener harvested five pounds d strawberries.
:
i ‘- day in
Stirs Su
By J.W. DAVIS WASHLVGTON IAPI — In a, double surprise. President Eisen- hower announced Monday he will submit to Congress next month a budget balanced at around $77.-
This is to operate the US. gov- ernment in the 1960 fiscal year, which begins next July 1. Eisen- hower said there will be no call, for general tax increases.
The big surprise was the total.. Most experts In and out of gov-‘ ernment had been guessing at a; budget of about 380.000.000.000l This year's spending is at the ratc‘ of about with a $12.fkl0.000.000 deficit expected.
Never before has there been a formal announcement of figures before they went to Congress. al. though it has been usual for them to leak out Informally.
James C. Hageny. White House press secretary. was asked why the administration announced its budget plans In advance this time. He replied: "We arrived at the figure, and thought we'd put it out."
"EDENT’S STATEMENT
Hagerty Issued a statement by the president which said: “The budget will provide higher expenditures than ever before in time of peace for national de fence. Some of our domestic non- defence programs will also con- tinue at record high levels. Other dancstic programs will be held at WM 1"“ consistent with the labile lm.
"Reductions In m1 mending will be achieved Input wrea-
Low-
rm“ FIVE CENTS
U.S.. Plans Defence Hike While Balancing Budget
Reds Claim Arms Outlay Cut InGianl New Spending Plan
Announcement
rprise
programs in agriculture. unem ployment insurance and housing.
“The budget will request in- creased receipts from higher poo tage rates and gasoline taxes. and some new user charges for gov- ermnent services. but will not call for general tax Increases."
A proposal to raise the gasoline tax has been anticipated for weeks. so that the expensive su- perhighway construction program won't throw the budget out of bal- ance.
Also. Postmaster General Ar- lhur E. Summcrficld has never let up plugging for higher postage rates r~ including a five — cent charge for a first-class letter. An Increase this year raised the first. clam lctlcr charge to four cents from three.
BIG DEFENCE OUTLAY
Eisenhower's statement that his budget will provide more than ever before In a peacetime year for national defence means that he is figuring on going about the estimated for the current fiscal year ending June I).
There has been talk of Increas- Ing the defence budget to $41,000,- MHXIO or
Democrats. for the most part. reserved comment until they could see more clearly what items Eisenhower proposes to cut. He didn‘t talk about raising any non-defence programs.
Quick praise for Eisenhower's announcement came from Com- merce Secretary Lewis Strauss and Senator Prescott Bush (Rep. Conn). Both m the tuna-
andthde
Fog Hampers
mummr. ‘CPl—Thm icev breakers moved cautiously Mon- the ice - clogged St. Lawrence River as fog curtailed visibility and hampered efforts to free 19 ocean<bound ships trapped by Ice.
Five freighters were cauth In the sluggish waters of shallow Lake St. Peter. 60 miles east of Montreal. The lcetrmaker d'Iber- ville was ordered to their aid. The d'IbervIlle had been cutting a channel through the Ice encrusted narrows near Quebec Bridge when fog reduced visibil-
ity. Meanwhile. two other federal Icebreakers, the N. B. McLean
and Ernest Lapolnte, continued to carve a narrow path through a massive Ice lam Just east of ’lontreal.
Low 0N FUEL
They were expected to reach Montreal east to free the Trans- ontario, Irmn in an Ice trap in the centre of the channel and run- ning low on fuel.
From there they have six miles of Ice between them and the 13 ships 51111 firmly held in Montreal harbor.
The preliminary hearing of John Henry Reid. a Dorchesler Street restaurant owner. open- ed in County Court last night. Reid pleaded not guilty to two separate charges of having possession of stolen goods knowing that the goods were stolen.
He elected trial by judge and jury when he appeared be- fore Magistrale Gilbert A. Gaudet in County Magistrate's Court on December 10. Magis- trate Gaudei also presided over last night's session.
The accused appeamd last night on only one of the char-
s: that of having in his pos— sssion 119 fifty-pound bags valued at $110 knowing that they were stolen.
I-‘our witnesses were heard by the crown before the hear- ing was further adjourned un- til Monday, December 29th at 7.30 pm. The adjournment came shortly before 10.30 p.
m. IDENTIFIES PHOTOS Corporal Gordon Humphrey. NCO in charge of the Identifi- cation Branch of the RCMP. Detachment in Chmlottbtown, 'dentified several photos which he took. Cpl. Humphrey special- zcs in photographic and finger- :i‘int work.
Included among his photos.
tance of a balanced budget.
Icebreakers
Cutting Ships Free On River
The Ice jam holding the ships fast in the bartror is also threat- ening residents of the south shore opposite Montreal with floods. The water level In the harbor rose 1% feet since Sunday to 52 feet, six inches. It remained at that level all day.
At about 54 feet, water spills over the banks on the south shore. where water pumping equipmcnt is ready and waiting.
The vessels stuck in Lake St. Peter are the Mada and Trans- michlgan of Germany. the Joli- ette of France. the Panamanian Perseverance Bay and the Ebba “Elbert of Denmark.
STILL LN MONTREAL
Still in Montreal are the Swedish ships Vaxholm. Rydbo— holm and Torsholm. the British Beaverford and Appledore. the Norwegian Elln Haven and Ogna County. the German Luise Born- hofen. C h r I s t a, Poseidon and Transontario, the Dutch Prim Frederick Hendrix and the Li- berian Kali L.
The British freighter Beaver- lodze remained at Trois-Rivieres. awaiting improved visibility to continue downstream.
Preliminary Hearing Begins In Co. Magistrate’s Court
exhibits in the hearing. were views of the new Gulf Potato Company warehouse in New Wiltshirc. It was from this building that the potatoes were- taken.
Oihcr witnesses heard were Jerome O'Brien. Mt. Edward Road. manager of the Gulf Potato Company: James Lewis Huahcs. Mr. Edward Road. warehouse in man of the three Gulf P0 are warehouses and Douglas George Docherty of Brookfield who is In charge of the warehouse in New Wilt- shire from where the potatoes were stolen.
Eleven exhibits were sub- mitted by the crown including two photographs of a one-ton Mercury truck; a view of the Gulf Potato Company ware« house taken from the North Wiltshire Station; a view of the front of the warehouse: a closeup picture of the center door in the front of the ware- house from where the potatoes were said to have been loaded; a closer picture of the same door showing hasp and staple that secure the door in a closed position and a length of wire that is passed through the hasp also a photo of the interior of the building showing the right hand side looking towards the front; a photo of the same area
tall of which were submitted as
(Continued on page 2 Col. 3)
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