Today's Weather omorrow s Tides (I A.M.) Prince Rupert Clear, northerly mmm High 0:20 a.m. 19.9 ft. wind, six miles per hour; barometer 12:34 p.rir. 20.2 ft. 30.26 (rising); temperature, 26; Low 6:36 a.m. 4.9 ft. sea smooth. 18:49 p.m. 4.7 ft. NORTHERN AND CENTRAL BRITISH COLUMBIA'S NEWSPAPER xxvii., no. 7i. PRINCE RUPERT, B.C., TUESDAY, MARCH 29, 1938. . . price: cents " noer Spy Sensation In Russia nnn nrlrioH tn (Vi -net nf mnt.er- "The Increase of all operating ex- - . . I v,uvu,wv ...... - i Ji. - mmm mmm mm i ma mrm mm mr , mm .wr v nauiaii ncuiuiicu uauwaYS Annual Report Is Presented; Improvement Shown In Affairs OTTAWA, March 29. Notwithstanding increases in i i ; r l ; 1 ii . r i r t i . y-in n n 11 fi rif iu f i i tii iniiriii n n i vi n f i 1 n w ix i n 1 J ' - ' v v w w Railways in rJd nandied traiiic at a lower operating tin than in 1936. said S. .J. Hunirerford. chairman and . . 1 TT il 1 j 1 , n f - thn n m lcn nr i nmmnnc rnr air nr rno mitiicTQ rr Illt'll 111 W - VUllliliUUO WUMV kT VltV lllllllOLVl Ul rating revenues were i..- SETTING A PRECEDENT n 7RR RS8. Alter payment of all operating enses," says the report, "the net ..iini. rfivumiA nf thp rnllwflv the year 1937 was $17,607,750, Increase of $2,474,951 over the vloua year. After payment of taxes, rentals, 4 J nil nhornAt rf AVPrV crlptlon, excepting only capital 1 1 ahanrirrnmontt arsed to proprietors' equity, the income available for interest alnst the Interest on funded debt p tr the nubile and interest on iency of $42,345,867 as compared th tu 503.393 in 1936." m 1937 the government adopted . .Ail.,, nt nl1iflnv frnm the fltay in cash Interest on loans r tiDltal purposes and the report tfsthat. had that change in pol- flot taken place, the .deficiency r 1WI would have been $40,681,114 start nt H2 34S r7. This change as maae lonowing iiie uasc j p Partltnl Rpvllnn Art 1937. After plaining the provisions of that act - & 1 1 . ttrrt. n 4 1 ti c f cnts authorized by the act were tirely confined to the relatlon-lp between the government and e railway and did not deal In any ay with the larRe funded debt of; e system In the hands of the pub sales tax of approximately $4,- 0, i For the first time in the 124-year history of the Royal Phll-harmonlc Society, one of its famous concerts was conducted by a woman. Mme. Nadia Boul-angert pictured during rehearsal, was the feminine musician so honored. She conducted a presentation of Faure's Requiem Mass at Queen's Hall, London. GAINS BY CHINESE Advances On All Fronts III Southern Shanshi rrovincc Arc Claimed ' HANKOW. March 231 CP)Thu Chinese military command last In prices of materials accounted night reported further advances r sun nnn tv n rnnrn vi tj rhA l a ra nnsp iivkiikim uii ' m. ..v- r- "ri"""" . hiiu j liiuuvi -- - cj a rone tn n nr Amiin-. chinanq rnn -rrA. rnn lv wcii: tiiab iciit oi wnicn Will De rciiecvcu m DaCK tue uapaiicac ntpnnnnt iron n T?nuinmAn t ro. m a irnnr. in n n;ii,iie iui ecu- . .i. . . . . t 11H1R1 1 1 . t wnmn rni rnn in. ti t n trim 1 1 1 i i . ' 1 1 1 - " . . . v. i l iguikLU ..lilt, w . . v, ... t COMMISSION or 4.9 Increased IS SNUBBED (Jovernment of Alberta Not nep resented Edmonton Commerce Chamber Presents Case I . . I I lltl 114 . iiH'v'"v" " " . - ' ii i II Lm. mtn Ink A i u J UU,UUU( ilKlV ' - " ill UI nil""" ' n in i inn in nvi-tAM cAa 11 n 111 i i if wkntnen a i m t i ' i . i nihiiit. minofUH - , : '"viwm VJi Hie UlltiilMlvJ v" Uef maintenance-of-way program WiNlPKi WHWT P $1,015,00 and flood damage. Snow Itmnval pnclo n,ar soo nnn Jfian in loift Property Maintained wtmmtpf.o. arch 29: (CP) Winnipeg wheat futures were 2c :to higher yesterday, May clos- "The property has been efficient- at $1.18. iHiuin.ninpn nnvinir riMmrn lu dlllP rami wimnnl. frntrc lhA fA- ' EDMONTON, March 29: (CP) The provincial government of Al berta was not represented at the opening session of the Rowell roy al commission on interprovlnclal relations yesterday. There is possibility, however, that a case may ,be presented by the government as the question of doing so is to be brought up again In the Legisla ture today. The Edmonton Chamber of Com- ; merce, in making representations! to the commission, urged the taking over by the Dominion of a number of functions now in con-' trol of the province. The Edmonton Chamber of Com merce, in its brief to the commls-islon, explained that it had In cluded a number of matters of general provincial interest because of the understanding that the provincial government would not make any submissions. It submitted, among other things, how the Brl- J tlsh North America Act, as at pres- lent Interpreted, was inadequate to the present needs of the people. It submitted that the allowance from the Dominion to meet the needs of : the present was inadequate. It al so submitted that the province had to"buy lri a protccted market where- as products of the province were almost without protection This wast J a severe handicap. I Transportation also was a source' j of complaint. Alberta suffered in almost every case over other points ' on a ton mile basis. As an example' of the manner In which Alberta J claims to be handicapped, it Is pointed out that the freight on a carload of 400 boxes of butter shipped from Edmonton to Toronto amounts to $764.82, exclusive or icing charges. On the same weight of Ontario condensed milk, another dairy product, shipped from Aylmer, Ontario, a slightly longer distance, i.to Edmonton the freight rate is $467.46. Complaint was. also made of the interest charges on farmers of the' province which were maintained in spite of the depreciation of the dollar, i The chamber pointed out the high cost of education and the loss of j revenue resulting irom encroacn- ments of the Dominion on provirt-; clal fields of taxation. It submitted j that banking, companies, fire In-j surance, rajlroads, manufacture of: farm Implements and department Ontario, The chamber asks for cancellation of debts incurred for relief and the orderly refunding of the debt of the province at a low rate of interest by means of federal guarantee. So far aj possible it would have taxes collected by means of visible rather than hidden taxes. Slap at Aberhart The Edmonton chamber asks in Its brief for disallowance of any v.-v ... 11.111 "vm mt aHiUniuiii UK.HB- j tAnnnn a nf snper.h. freedom of assembly. S In waep rntPQ nnrt nrlrPS nf ma- Income Of hotels lncreastu . -r- - , .,th nr i frppnnm oi reuKious wuisiiiu, ncc- 9MnM.. . . j 1 l- - .... nm'G irrn!s rpvt?iiuco "vvuiv ir. tyiiiv no rrti pn rnar. rmN-s iiih avattui o ' roads of the United States with the low point reacnea in iwoo w. n r, i.. 4.,.,- -.o i., in 1037. the rerwrt conun- .1 n i , . n m . ,, nr t r i ,'xuri.LE.u i . . jj " - "iuc 111 cu u. u.-. uw, - ntorlfll. "ivittuu in iiami; ui u.u ui i.c, o--- . w.,e Yviui un increase in eAcuac uuwns States chip H-1 UCIlt. IIICM The Increase In the cross operat- class 1 railroads. hit . rn npiiM.il access to tne courts ana jects to restrictions on movement from one province to another of citizens, money, goods and services. It asks for such constitutional changes as will give the Dominion; ' Government the right of legislative ! authority over labor legislation,' f the such as hours of labor, minimum w w wuua . 1 I untlinai HIII1 WUlMliril A in nuj a. d4 a a . i ii. . i Hj r oi r n aireciui- i rp ii ii a ui v -. - the.board ui;.uoiu . nmcnerts t on: unem to ii,jo,ii owr .---.,. unemployment insurance, un- '"-nng year. Freight revenues. system on " "'rt nrH' pmnlnvment relief, nubile health.' pi-inj i . ... ,.n rnnirman nu"s r.-.- . r - o.ouo.uji oi u.i ,1,Tm.rilate outlook for old age pensions, allowances ior wi- nt Passenger revenues Increased .continues, immcaun b d jall3 and reformatories, truck 2 .021 or 11.3 per cent. Com-; railway royenucs s .ea tle ' tmn'p0rtatinn ard regulation of; "fClal telPDrnnli Incrons. snveral factors, pi '- ' I rovonnn t a ftrt fr V I rt tiff tin $475,682 nr ins ...,.of p,n (Continued on i r- v u ,u ijv, l i,v.ii u liA u t, L,uki ' ' . Coal And Petroleum Board To Be Appointed; To Take Action On Public Utilities As Well VICTORIA, March 29: (CP) In a public address last night, Premier T. D. Pattullo announced that a one man board would be appointed to regulate coal and petroleum industries in the province of British Columbia. Dr. W. A. Carrothers was the intended commissioner. The board would have full control of coal and petroleum within the provincial boundaries from production to sale. The Premier further announced the intention that a public utilities act would be introduced at the next session of the Legislature. Dr. Carrothers had agreed to serve as commissioner under that act also. Mr. Pattullo disclosed that he would shortly be making another trip to Ottawa with a view to pressing a more expansive road program and obtaining increased federal aid for public works projects. He much hoped, he said, to be able to make progress in the east toward the construction of the proposed British Columbia-Alaska-Yukon highway. The Premier further stated that renewed efforts would be made to have the Pacific Great Eastern Railway taken over by the Canadian National and Canadian Pacific Railways 'and operated on a joint basis. Railroad facilities, said Mr. Pattullo, should be extended to the Peace River where there was every indication of oil possibilities as great as in the Alberta fields. If the Pacific Great Eastern was extended from Prince George to the Peace River, both Prince Rupert and Vancouver would be served. BULLETINS INSPECTOR STRICKEN Inspector John A. Fraser, provincial police, suffered a slight stroke late yesterday afternoon and is now confined to bed at his home. He was reported this morning to be doing as well as could be expected. VANCOUVER EXTORTION VANCOUVER The home of Kapoor Singh was under heavy police guard today as detectives probed what the wealthy Sikh lumberman said was an extortion plot backed by threats on his life. Kapoor told police that a fellow countryman pointed a revolver at him Monday afternoon and handed him a note saying: "Drive me to the bank. Give me $10,000." SILVER SLASHED AGAIN WASHINGTON The United States Treasury shaved another cent off the price for foreign silver today, cutting it to 43c per fine ounce. This action makes it more difficult for Mexico to sell its silver abroad. Today's reduction apparently confirmed fears of London silver speculators that United States was withdrawing its support from the world price. The New York silver price today was 425ic. LIONS WIN TITLE VANCOUVER Vancouver Lions downed Seattle Sea, Hawks by score of three to nothing last night to capture the Pacific Coast Hockey League champion ship for the second time since the league was revived five years ago. 11 UNGERFORD HONORED MONTREAI Word has been received from Paris.Frahee, of the appointment of 8. J. Hun compensa-j gerford, chairman and president of the Canadian National Rail ways and president of the trans-Canada Air Lines, to an honorary membership in the Scien tlflc Institute; of Studies of Com-munlcations and Transport. PALESTINE DISORDERS Eleven Known Dead as Result Of Fresh Outbreaks in Holy Land JERUSALEM. March 29: (CP)- Fresh disorders during the la.stl twenty-four hours in Palestine arej known to have resulted in eleven! persons being killed. Four .were' slain when bandits attacked a pas senger car. DEAL FOR CANNERY Nelson Bros. Lease Massett Canners riant for One Year with Option To Purchase Announcement is made of the lease with option to purchase of the Massett Canners salmon canery at Old Massett, Queen Charlotte Is lands, to the Nelson Bros. Fisheries Ltd. of Vancouver. The plant Is K!lng taken over by Nelson Bros, for operation this year which Is due to be one of the heavy cycle run season? for pinks in Massett Inlet and vicinity. The Massett Canners plant was MAYOR HAS SUCCUMBED Frank L. Sugden, Chief Magistrate Of Armstrong, Passes After Brief Illness ARMSTRONG, March 29; (CP)- i Mayor Frank L. Sugden passed away here yesterday after a brier illness. He was manager of the. Armstrong Co-operative Society Dr. Otto Schmidt, One Of Soviet's Heroes, Is Accused By Dictator Former President of One of Asiatic Republics One Nineteen Persons Who Have Ikcn Put to Death For Plotting Weather Forecast established In 1927 by a Prince Ru- VFurnuiiPd throuzh the cr-uru-sy o' . ,iit, TVin nv'hhnvn ti, Dominion Mr"loulcal Bureau t pen, tumyawjr -in. ....... j victoria and Prlno Hupfrt. This as manager, u nas operaueu ularly each year that the fish ran. LERIDA, Spain, March '29: (CP) Battle lines of the oncoming insurgents are drawing close upon this strategic key city on the road to the provisional loyalist capital of Barcelona. The rebels are bringing up their ar tillery -and aircraft with .a view to laying an intensive siege which General Francisco Franco anticipates will result in an early capture. On the other hand, the government is rushing forward reinforcements of men, guns and airplanes with a view to bolstering up the defences. Lerida, in the opinion - of observers, may mark the final phase of the civil war. Internatioal brigades of the Spanish government army moved to the front today in the effort to check the insurgent sweep into Catalonia. The insurgents were massed on the west bank of the Chinca Riyer along the central frpnt. The Spanish government, with "we must hold out" as its watchword, published a lengthly report of German and Italian armaments and men being sent to the insurgent army. Franco Answers Protest LONDON, March 28: (CP) General Francisco Franco, insurgent commander-in-chief in the Spanish civil war, has answered protests against ihv bombing of civilians with the expressing of regrets that inno. cent lives should have been lost hut explaining that Barcelona is such an important centre from a military standpoint, on account of its factories and munition stores, that it has been necessary to attack it. reg- C(t l rompIlM from obvpraatlon fa- lien at S a.m. tola.v and covers th 30 hour .period enlns S p.m. tomcrrowl Prince Uuncrt ana tyueen Char-j lotte Islands Moderate to fresh j rorthw?t winds, mostly fair and; colder at night. ! LONDON GOLD PRICE LONDON, March 29: (CP) The London price of bar gold was up lc yesterday, closing nt $34.96 per fine ounce. Lieut. Commander F. O. Hart R C. N. sailed yesterday afternoon by the Princess Louise on his r and had held the office of chief (turn to Esquimau after spending magistrate for some years. a few days here on naval business. of MOSCOW, March 29: (CP) Soviet Russia broke two new espionage sensations today. The Northern Sea Route Administration, headed by Dr. Otto Schmidt, one of tne greatest oniciai.ouvieu neiuety w tuuoeu uj. uuu-5v.nl onti'.Cnin'ot orfiv?Hr" A nrnvinninl tipvvsnanpr rfi- iiiai aiin-uuntu c v n . . . L j ported that nineteen persons had been shot after a trial, ami nuw UNDERWAY Lines Being Drawn for Crucial En gagement In Spanish Civil War ranco Answers Protest at Alma iii. unuug tuvm was v. Kazakhstan, who was accused of plotting to make his middle Soviet republic the colony of an undisclosed nation. No Danger Of Conflict Now PRAHA, March 29: (CP) President Edouard Benes of Czecho-Slovakla said last night thai there-was iw Immediate danger of conflict with Ger- many. On the other hand, there was possibility of a friendly accord on the subject of the German minority wnicn t which has been agitating in- tprnnf.lnnal neace. A com- nmmise is expected to be r - reached. HARBORS REVENUE Increase Shown in Income During Past Ycaj- Despite Lower Grain Exports OTTAWA, March 29: (CP) In spite of a greatly decreased wheai movement, Canadian harbors com ,'ng under tne wauonai naiuoio '.Board showed an increase in opei-latlng revenue during the past year lllon. Clarence D. Howe, minlstei I of transport, announced yesterday The Increase In operating Income I over the previous year was $468,000. VOTE IN Victoria II?ars That Provincial Tiy-Election May Be Held on May 1" VICTORIA, March 29: (CT) "here are reports In well-informei carters here that the provincla v-elnctlon in Dewdncy riding m&y called for May 17. The seat was nade vacant through the recent leMh nf Dr. Frank Patterson, Leader nf the Conservative Opposition. There will be at least three candidates In the by-elcctlon Liberal, Conservative and Co-operative Commonwealth Federation. Card of Thanks David McCullough and family wish to express sincere thanks and appreciation to their many frlend3 who were so kind to them during their recent bereavement, -