Ua i 0 Daily VDeliyery Phone 81 p.i:v:::::al list-?, 113 NORTHERN AND CENTRAL BRITISH COLUMBIA'S NEWSPAPER Published at Canada's Most Strategic Pacific Port "Prince Rupert, the Key to the Great Northwest' VOL. XL, No. 84 PRINCE RUPERT, B.C., TUESDAY, APRIL 1Q, 1951 PRICE FIVE CENTS M lull R L o)fo) uzu Lb) zn r n O lnKrAT(HED ( Tonight l II III! Big Timber Firms Merge ? - " I . J get is J piing Up Further Reduction In Living Standard Under Latest Budget Income Tax Raised to Almost Wartime Level . Other Imposts Bigger Age Pensions LONDON (CP) Britons, who have undergone 11 years of austerity, were told today by the Chancellor of the Exchequer, Hugh Gaitskell, that they must be prepared for "some reduction in our stand r-7 f "1 v t -. . v ft t. 4&t A':tf i.'V ,k FLOOD DAMAGE Combined aux Trembles on the western out into the St. Lawrence as. were $250,000. dmithers Etadio ard of living." assatiit of flood water and ice crushed these homes In Pointe tip of Montreal Island. Several of the wooden houses floated 125 families were made homeless. Early estimates of the damage i To be Installed This Week VANCOUVER (CP) H. R. Mac-Millan Export Co. Ltd. and Bloedel, Stewart & Welch Ltd. today announced they will merge into a company to be known as MacMlllan & Bloedel Ltd. ) For the time being each company will continue to operate under its present name. The merged companies will employ 8,000 workers and new projects will create 400 to 500 new jobs in the next two years. Died on Way To Hospital C. P. "Curly" Collins, middle-aged employee of the Barney Ray Logging Co. near Claxton on the Skeena, was brought to the city early this morning but died before reaching hospital. Brought to Port Edward by boat and met by ambulance, deceased was to be admitted to the Prince Rupert General Hospital but was dead upon arrival. After contacting next of kin, funeral details will be announced. Speed limit on Second Avenue A 15-mile an hour speed limit zone has been requested for Second Avenue in front of the Civic Centre, Civic Centre Association, asking for the reduced speed zone from city council last night, held that all traffic now diverged on Second Avenue from McBride St. and represented a hazard to children-attending th Centre. . Te request was referred to traffic and licensing committee with power to act. Insists on Free Hand Not Reprimanded, United Nations Commander-in-Chief Makes It Clear TOKYO (CP) General Douglas MacArthur made it plain today to his superiors that he intends to keep right on fighting for a freer hand in the Korean war. He authorized a spokesman to deny sharply reports that Secretary of the Army Frank Pace Jr. had reprimanded him for recently published statements deemed to be verging on politics. In Washington, one highly-placed Congressional source said no drastic action against Mac- Arthur was in prospect. He said President Truman might reprimand the general but had not yet made a decision. I The White House maintained silence on any possible presi- idential rebuke for MacArthur. Lcbor Uneasy Controls Demanded! OTTAWA (CP) Trades and ' Labor Congress of Canada, call ing lor immediate price controls,1 told the government today that the alternative would be a labor drive for big wage increases. j "Canada's biecest labnr hnriv 1 its membership Is 500.000 said failure to halt the cost-of-living rise may lead to "widespread unrest and serious production delay." The Trades and Labor Congress also called on the government for Immediate action towards comnrehenslve snciil security, saying the cost of mili tary aerence should not sidetrack such a program. Foresters Gathering It will be a "gathering of the clan'' when on Wednesday, Thursday and Friday of this week Prince Rupert district forest rangers hold their annual conference here. There will be 30 visitors from outside points, including forest officials from Victoria, who, with 15 local officials and rangers, will discuss field problems, fire protection and forest management. From Victoria will be F. S. Mc-Kinnon, forester in charge of management; R. G. McKee, forester in charge of operations; W. C. Spause, mechanical superin tendent; Dr. R. E. Foster, Dominion science service; E. Druce, forester in charge of public relations, and D. McLeod. F. Hollinger, mechanical inspector, will come from Prince George. Visiting rangers will be: C. L. Gibson, R. L. Brooks, J. J. Keefe, and A. L. Tourand, all of Burns Lake; L. G. Taft, . R. Gilmour, R. G. Benson and J. H. Willan, Hazclton; D. R. Smith and J. F. Munro, Houston; W. H. Campbell, I. Benoit and S. G. Cooper, Terrace; H. B. Hammer and W. C. Lindstrom, Queen Charlotte City; W. A. Antilla, D. S. Cooper and P. J. Piche, South-bank; J. A. Willan, A. C. Mac-Pherson and Chris Dahlie, Smithers; J. Mould, Topley and A. A. Antilla, Ocean Falls. Local foresters attending the conference will be M. W. Gorm-ley, M. O. Kullandcr, J. P. Mac-Donald, J. C. Payne, J. B. Scott, L. B. Boulton, C. V. Smith, F. Geortzen, M. Johnson, I. Martin. S. T. Strimbold, D. Selkirk, R. W. Corrlgan, H. Bancroft and Jack Eastwood. New Brigade For Korea LONDON (CP)Britaln is withdrawing one of her two brigades in Korea for a rest, and replacing It with fresh troops, the War Office announced today. The Twenty-Seventh brigade, in the thick of Korean fighting since arriving there 1n August of 1950, will be relieved by the Twentv-Eiehlh brigade. The Twenty-Seventh will be sent back to Hong Kong for a rest. Announcement said first battalions of King's Own Scottish Borderers and the King's Shropshire Light Infantry will relieve First battalions of Argyll and Sutherland Highlanders and the Middlesex regiment respectively. Grain States Being Flooded CHICAGO (CP) Flood waters spilled out today over thousands of acres of land in Minnesota, Iowa and South Dakota.maklng more than 12,000 persons homeless. Property damage is estimated at $3,000,000. A (CPi-TonlRht is the Canadians rearn now laxps are going up. Minister Douglas Ab-i ing down his 1951-W the House or tom-from government : is a foregone con- t he is going to an-ries of tax boosts. nsive the increase will re they will be made late secret until Mr. ,ents his budget. Nome speculation that fc pr of Finance may i-ome new government l-mbat the high cost of i budwt comes In the hk Commons debate essiiy of reimposlng iiher controls. $il revenues which the jr: will draw from bud-i.npes this year are fl i'lp finance the three- ijlW.OOO defence pro- !ada And (Arthur l (CP) The Canadian lus told, the United f'.ernment what It $.1 the latest of Oen. t i statements on Ko-f ;al Affairs Minister . 1 today in Commons, f ted. the government I intend" to make Us at this time, f Tcyko reports that st ir President Truman t.e general to stop I political pronounce-iKorea were read with I interest in official latitude of public re'l-t the global clamor t' tteral has been com- o the House by Mr. reply to a Question mbers. t jldup lied 4 WCR-Three shots f'oday during a hold-f on a jewelry shop !' gnn-whipped pro-ineri with an un-'(Wsserby to capture ) hospital with head iw Louis Abram-'H of Lewis Jewellers, yas handcuffed and J'W headquarters af-f nclered when he lost -scuffle with the two Iday's 8. 1. AN(OrvKll ?! Standard 6.05 33 Quartz 120 03 I 'HCOt '. .07ia 52 21'j 2.20 t 22 'Donald lO'a f 4 30 04 J'fk 1.63 "mier 38 "r 06 '2 i-ola 13 . 'Hi.. 03 !,,y ... -ndarri 04 'i Irani, .,"' 245 1- 75 645 41 1.22 1 12.00 305 15 2- 60 .r'iitov 1.50 Gets ooster originally planned for the area was meanwhile installed at, other points in Canada where low power transmitters were badly needed. The 20-watt transmitters will give good coverage within an area of approximately 10 miles In diameter. They have been successfully used for several years at a dozen or more points in the province The transmitters will carry the complete program service of the CBC's Trans Canada network. Installation of the Smithers transmitter wilt be directed by F. B. C. Hilton, CBC regional en gineer. He will be accompanied by Fred Wilson of the corpora tion's engineering staff. Fisheries Protection OTTAWA (CP) The Fisheries Council of Canada said today two Latin-American countries have shown discriminatory tendencies against the Canadian fishing industry. Ttia Pi,nnll Viae aclrorl (Tmiorn. ment to intervene. The countries I are Trinidad, a British possession, and Brazil. Action by officials in both countries, said the council in a statement, is working against Canadian export of salted fish, a vital economy of Eastern provinces. ' JAPANESE Council also has urged the government that: 1. In any general peace treaty with Japan, action be taken to guard against possible encroach ment of Canadian fishing areas k,. (i.k.., Thi. a problem before the Second World War. 2. In any system of priority controls, fishing industry should get high priority on materials essential to the Industry. 3. Steps should be taken to guard against destruction of valuable fisheries resources by hydro-electric developments in British Columbia. Co-operation between the province, federal government and power agencies should be increased. J. Dyson of the Department of Fisheries leaves tonight for Bute-dale on the Camosun. Another department official, M. Hough- j ton) wU1 go Bella Bel!a. , . .. J . I 1 i iftli' liiim w M House Talk In Private City Council Goes Into Closed Session After Flare-l'p The city's housing situation and plans to be presented to housing officials arriving Thurs day were discussed in closed session last night by city council. Press and public were excluded but not before a lively debate flared up between the aldermen. "I don't see why we (should have a closed session on this. It is a problem of vital interest to the public," Aid. George Casey stated when motion was made by Aid. H. F. GJassey to discuss the matter as a committee-of-the-whoie. " "I don't think anything of public interest should actually be excluded from the public," said Aid. H. 8. Whalen, "but this may be in the public interest. . ." , "It's not in the public inter est," Aid. Casey thundered. Councils or courts In camera where the press and public are barred always have something to hide. "What have you got to hide?" he demanded of the aldermen. -Mayor G. W. Rudderham said the council could go into closel session when it so desired, to which Aid. T. B. Black said: There are many things which snould be discussed by the coun- ell first and a decision mad. Then, of course, the decision should be made public." Aid. Whalen and Casey were voted down. The council went into camera while the press and public were asked to leave. City Finances Show Surplus Annual report of last year's 1 ciiv unances snow a revenue surplus" of $12,912.15, Aid. T. B Black, finance chairman, told city council last night. But this "Is not a cash surplus," he explained, saying it was actu ally the difference between ac counts payable and accounts, receivable. The city, however, had been operating "In the black and this was due mainly because estimates of 1950 revenue had been "conservative," he said. Further-breakdown of the re port will be given at a later date, he said, as the report had just been received and there had not been time for the finance com mittee to review it In detail. Council voted 150 copies of the report be printed for public dis tributlon. what, wa sav. Canadian relations with the United States are closing closer, d0 not like or do something which they do like." No Zest in Guessing British Budget Was Uncertain Quantity This Year By ALAN HARVEY Canadian Press Staff Writer LONDON (CP) Britain's favorite guessing game what's going to be In the budget? lacked its usual zest this year. Financial experts admitted they're stumped. "He would be a bold man who would deduce confidently whether a harsh or a lenient budget is in prospect, writes the financial editor of the Independent Times "The shape of the 1951-52 bud get is more than usually difficult to calculate," says the Conservative Yorkshire Post in a frontpage story. Why all the hedging? One reason may be that Britain's planners haven't been able to decide how the country's frail finances will be affected by re armament. More guns mean fewer pats and pans, and UjaJt means Inflation. But rising prices cut down personal spending. So Britain's business-page edi- tors, usually free with their fore casts of budgetary things to come, weren't making many predictions about the secret which was unfolded in the House of Commons on budget day today. The experts had reason to be cautious. A while ago they were saying the budget would surely bring certain charges for the national health service, such as a shilling for prescriptions. But the Labor minister, who Introduced the service, says he would not remain a member of any government which imposes such charges. . (The service now is free in the sense that patients do not pay a penny to the doctors or for hospital treatment. But It costs the country 400,000,000 a year, larg ely financed through indirect taxation on such things as cigarettes and beer.) Some critics were convinced Hugh Gaitskell as chancellor of the exchequer will resort to fresh taxes to help pay for rearmament. Others say the saturation level has already been reached in a country which claims its imposts are the world's highest. Galtskell's main problem, in this his first budget since h took over from Sir Stafford Cripps, was how to provide for the 750,000,000 new spending to which the government is committed in the new financial year. He covers approximately one-third of this through the over-all surplus of 248,000,000 disclosed In the latest treasury returns because Sir Stafford had not bud-getted for an over-all surplus He could get another third by higher returns from existing tax rates. The remaining third would have to come from new taxes unless the chancellor decided to budget for an over-all deficit. Few concessions were expected. One possible exception was elderly pensioners, who find the purchasing power of their fixed incomes reduced by rising prices. The government admitted some relief may be proposed. Only one thing seemed certain it would be a big budget. The finanoiH yeftr will have 369 days instead of the usual 365 because 1952 is a leap year. A. Van Snellenberg, mechanical superintendent of the Canadian Fishing Co. Ltd., who has been installing machinery at the I company's plant on the local waterfront, leaves for Vancouver on the Camosun tonight. In his first budget spoech, Gaitskell proposed expenditure for 1951-52 of $24,197,000,000 ($12,381,150,000), the highest in the country's peacetime history. Defence spending alone will cost $1,490,000,000. Mr. Gaitskell announced that the income tax will be raised to nine shillings sixpence in the pound from nine shillings in the pound. Tax on distributed profits will Increase from 30 to 50 per cent as of January 1; the purchase tax on automobiles will be increased from 33 13 per cent to 66 23 per cent; the tax on household gas and electrical appliances will be 'increased by one-third. The income tax will be within a few cents of the wartime rate of ten shillings ($1.50) in the pound I $2.95). The price of gasoline and heavy oils will be increased by four pence and half a penny (about 6 cents) a gallon. The present price of gasoline is three shillings and three half pence per gallon. The tax on movie seats will be increased, according to price, ranging from one penny to five " pence. " Old age pensioners are almost tter o,,.. are to get a few more shillings a week. Pensions will be increased to thirty shillings for single persons and fifty for married persons per week. Food subsidies will be unchanged and there will be no extra duty on tobacco or beer. Not Stopped By Dam Break TOKYO (CP) Allied troopj reached the southern shores ot sprawling Hwachon reservoir today but heavy Communist mortar fire stopped them short of the big north Korean dam and hydro-electric plant. Water behind the dam Is still about 200 feet deep. The Reds had opened ten of the reservoir's flood gates Monday in an attempt to halt the Allied drive but the water quickly subsided to near-normal levels in Pukhan River, outlet of the reservoir. American units paced the assault on the dam. The Communists answered back with a steady barrage of mortar shells. TheWeather Synopsis Fine weather continues over southern British Columbia and will persist for the next two days although some thin cloudiness is expected to spread into the southern interior tomorrow. A weak disturbance moving over the northern part of the province has brought cloudiness and light rain or snow to those regions. Cloudiness will persist over the northern coast but clearing is expected tonight over the northern Interior. Forecast North Coast Region Cloudy today and Wednesday. Occasional light rain along the mainland this morning. Little change in temperature. Light southerly winds. Lofts tonight, and highs tomorrow at Port Hardy, 34 ami 48; feandspifc and Prince Rupert, 38 and 50. TideS Wednesday, April 11, 1951 High 3:45 19.5 feet 16:48 16.2 feet Low 10:31 5.3 feet 22:13 9.6 feet VANCOUVER The first of five low power transmitters designed to bring CBC programs to listeners between Prince George and Prince Rupert will be Installed this week, according to an announcement by Kenneth Caple, regional rep resentative of the corporation. The initial unit will go to Smithers. CBC plans call for additional installations this summer at Vanderhoof, Burns Lake, Hazel-ton and Terrace. The program was held up pending negotiations for line rights. Equipment which had been RED TROOPS ARE MASSED WASHINGTON, DC Russia and her satellites have ten million men under arms and could sweep through Europe, Asia and Into Africa, said a military survey released here today. Among other things the survey says that Russian troops are massed across Bering Straits from Siberia. No Controls Says Howe OTTAWA (CP) Trade Minister Howe told Commons last night, on the eve of the federal budget, the government is not going to put general price controls Into effect now. The minister, stepping into a debate on living costs and inflation, said the greatest contribution Canadians can make against inflation is to avoid panic buying and to produce more goods. "The government is not going to put Into effect controls that would do more harm than good," Mr. Howe said in re sponse to a series of opposition demands for government action to halt the rise in cost-of-living. He spoke in an all-day dis- cusmou on uie regressive uon- servative motion of non-confi-. dence In the government because of higher living costs. Motion of George Drew, PC leader, called for. "immediate consideration" by . the government of "adoption of appropriate measure to hold down the I cost of living and to halt in-! nation." stocks Johnston Co. Ucl.) Bcattie .52 Bcvcourt 46 Bifcjo 13'2 Buffalo Canadian 25 Consol. Smelters 142.50 Conwest 2.45 Donalda 51 Eldona 22 East Sullivan 8.40 Giant Yellowknife 6.85 God's Lake 38 Hardrock 18 Harrlcana 11 Vi Heva .12 Jacknife .05 Joliet Quebec 65 Lapaska - 05 Little Long Lac -69 Madsen Red Lake 2.20 McKenzie Red Lake .51 McLeod Cockshutt 2.75 Moneta .34 'a Negus 82 Nnranda 7900 Louvicourt 20 pickle Crow 1.70 San Antonio 2.50 Senator Rouyn 19 Sherrlt Gordon 3.40 Step Rock 8.30 Sturgeon River 14 Silver Miller 1.75 08 Vi Upper Canada 1.70 .27 Golden Manltou 6.75 Canada is No U.S. Echo - IiCster Pearson Outspoken j TORONTO (CP) External Affairs Minister Lester Pearson, in a speech today to the Canada I Club, was critical of Washington's disregard of Can- (h".1lt5" . ,"dJ2iada and Canadian advice. Mr. Pearson said that Canada; and the United States will get ! aiong better if the United States ! Pearson said, but he added It reallze, a"Zes Canada Canada 15 u not not willing wiuin8 to to'was "disconcerting to have the united States notice Canada be merely an echo and takes when we do something they rental discussion have been re ceived at the Daily News office. An editor's rule is that all letters for publication must bear the signature of the writer. The name does not necessarily have to be published, although it is prefer- able that it should be. j more notice of Canada's war j : record and "what we do and1