Winnipeg Free Press (Newspaper) - August 21, 1948, Winnipeg, Manitoba FINAL EDITION VOL. 279 46 PAGES J g Free Press Winnipeg-: Cloudy this afternoon, otherwise clear Saturday and Sunday with little change In. temperature; winds south-west at 20 mph decreas- ing: to light tonight. Low tonight and high Sun- day 52 and 75. PRICE 5 CENTS; WITH COMICS lOc WINNIPEG, SATURDAY, AUGUST 21, 1948 Sun P4ses 6.27 a.m. Moon Rises 9.39 p.m. Sun Sou S.35 p.m. Moon Sets S.32 a.m. Forecast: Clear and Warm MOSCOW NEGOTIATIONS STRIKE SNAG Russians Kidnap More Germans ,_ BERLIN, Aug. 21. (BUP) Russian military police kidnapped four more German policemen from the western sectors of Berlin Saturday, and United States and British military authorities appeared to be preparing to resist any further Russian raids into Bakeries Cut Bread As Ordered Five leading Winnipeg and dis trict bakeries have announced roll-back in the price at their breac to the level in effect July 31. Th live Bread, Genera Bakeries, Western's Bread, .Marve Bakery, St. 'Vital, and Brown' Bread, that their ac tion is taken to meet the require ments of an order of the wartim prices and trade board issued Aug 19. In a statement issued Saturday the bakery firms state that, a] though they are immediately put ting the reduced price to the con turner into effect, costs of bread production have not been lessencc in any way by the governmen order. The statement also said costs o labor, materials and irtRredienL. used in the manufacture and distri bution of bread have increased greatly since September. 1947 bread prices in effect at July 31 were set. These are the prices to which the bakeries are now re- quired to return. The bakers' statement endec with an appeal to the dominion government to make a carefa of the situation now prevail- ing in the baking industry, to the that a policy be put into ef- ieet which would be fair to con- and bakers .alike. Labor Code Takes Effect September 1 OTTAWA. Aug. 21 The Canada Gazette Friday carried of- ficial notice that the federal labor code, passed at (he last session of parliament, will become effective Sept. 1. The code, revising machinery for handling disputes in industry under dominion jurisdiction, will control Jabor relations in such industries railways, communications, ship- ping and other Intel-provincial ac- tivities. The coile will be administer- ed by a ]0-imm Cnnadn labor relations board, bended by Sir. Justice G. B. O'Connor of the Alberta supreme ceMirt. Besides setting up machinery for Jiandlmg disputes in federally- controlled industry, the code also makes prpvision for transferring industries from provincial to federal jurisdiction where the provinces signify they want, this done. LOST: ONE LEG, WOODEN ROME. Aug. 21 (AP) Rome's municipal lost-and-found office re- ported that somebody could have his wooden leg back if he'd hop and get it. MONSTER MIXER This giant mixer, being used in construction of a super run- way at the Rivers, Man., joint air school, pours out one and one- quarter yards of concrete every 40 seconds. A 200-rnan cre-w is now nearly finished the first of two runways reported to be strong enough to take landings by any heavy aircraft likely to be designed in the future. Daily cement consumption on the job is bags. Ten inches of concrete is being laid over a prepared gravel and sand base 27 inches thick. Calling for twd 200-foot-wide landing strips and two taxi strips feet long, construction wil cost an estimated their sectors. Col. Frank Howley, U. S. com- mandant in Berlin, ordered three riot squads of American military policemen to duty Saturday in the area of. the border between Ihe Russian and U. S. sectors, where the kidnappings have oc- curred. The squads consist of about 25 men each, and all wil] be fully armed, plans (or entrenching the riot squads in the area, especially near the Polsdamer Platz, were drawn up at the scene bj' top mili- tary police authorities. A total of nine German policemen have been kidnap- ped by Soviet military Police from the American sector. Three have escaped, but the other six still were held. The two abducted Saturday were beaten and one was stabbed before being: dragged across the boundary. Two other German policemen were kidnapped Saturday from the adjoining British zone, and they too still are missing. British and American authorities sent violent commanders, protests to and the Russian British strengthened their military police precautions in line with American moves. Russian authorities mean- while charged that the American sector was a "gangster haven similar to (he old days of Chicago md said it "must and will be cleared of its Fascist and criminal clement." American authorities said roving iatrols of both American and Ger- nan police would augment the riot quads along the boundary. An air of tension prevailed its high British and American officers made inspections and disposed their while Russian soldiers' watched curiously from their side of the line, often only a few yards away. Hundreds of expectant Germans ined the streets to wait 'for the next move in the east-west man- itivcring, and American and Bri- isli police jeeps roamed the area during the waning hours of day- ight. Communist leaders in Berlin called for workers to attack the 'Fascist gangs" on the western borders in street lights. The west- ern German police chief said the Russians were seeking to create disorders as an excuse to march nto the western sectors. RANGOON, Aug. 21 (AP) Burmese president Sao Shwe 'haik Saturday declared a state of ;rave emergency in Burma and ssued a martial law act to com- iat the rebellion. The government r.riounced Friday night that it vill bomb and machine-gun all erritory held by rebels. Civilians vere warned to move out. The overnmenf has charged Com- munists with leading the rebellion. Western Powers Unable To Agree, Says Report MOSCOW, Aug. 21 Kremlin Germany have struck a snag by the temporary inability of tho rluvt: wesirni powers i.i amve on a united front toward Russian ir was reporved Saturday Nothing was scheduled for Saturday, and a meeting with V. M. Mololov, Soviet ioidfn mini- ster, appeared doubtful, leading to belief that the western envoys have boon fonvd to set-It instructions from their governments before asking for another Kremlin con ten-nee. Waller Soviet Envoy Bool Passage To Europe WASHINGTON, Aug. '21 consul-general, Jakob M. Lomakin, expelled by the U. S. slate department, has booked passage aboard the Swedish-American Jiner Stockholm sailing ne.vt Saturday. i The New York consul has made [reservations for himself, his wife 'and two children, the steamship line said. It said it could not disclos. when the dis-accredited envoy had booked his passage. The ship plies between New York and Gothen- burg. Lomakin was not available for comment Saturday but Soviet vice- j.consul Zot I. Chepnurnykh said he jknew a "couple of months ago" that Lomakin planned a trip back to the Soviet union. .Faced with VJ.S. charges that Lomakin "abused" Coalition Of Opposing Forces Welcome, Declares Coldwell Session On Controls Urged An immediate special session oJ larliament to reconsider adoption >f price control and subsidy legis- ation to meet inflation in the Canadian cost-of-living was urged Saturday at the 10th annual C.C.F onvention being held at the Furl Jarry hotel. An emergency resolution 1. ReTimposition of price controls on all basic necessities of life; food clothing and fuel, specifically, 'in- cluding subsidies on milk, butter eed grains, cotton and wool as wel as bread. 2. Renewal of an excess profits ax graded to remove past inequi- ies, to raise revenues sufficient to say for the price controls pro- ;ramme. 3. Closing of the Winnipeg grain See C.C.F. Page 9 Wage Act Ceiling Stays At OTTAWA, Aug. 21 eiling at which wage earners may ie insured under nsurance act will remain at vhen new amendments to the aei go into effect Oct. 4. Arthur Mac- s'amara, deputy labor minister, said iere Friday. In January this year, the wage eiling for employees paid othej han or. an hourly, daily, piece, 01 Tiileage rate, was raised from 00 to per year. There is no :eiling for other employees. STAY OF PROCEEDINGS TO BE ASKED Manitoba Prepares Formal Protest In Freight Case The Manitoba government will ask for a stay of proceedings on the Canadian railways1' appli- cation for an additional 20 per cent, increase in freight rates until principles and calculations un- derlying- the 21 per cent, increase of last April have been reviewed, Premier Stuart Garson said Sat- urday. The premier's statement came following con-elusion of meetings in Winnipeg this week of counsel and technical advisors from seven western and Maritime provinces opposing freight rate in- creases. "Following these Mr. Garson said, "steps have been taken to file Manitoba's formal answer to the application by the Canadian railways for an addition- al increase of 20 per cent., in freight rates which, when added to the 21-per-cent. increase already in ef- fect, would result in a level of rates 45 per cent, above the level April this year." Chnlleiig-c To Railways The province's answer to the application, the premier stated, will challenge the soundness of the railways' contention that last month's 17-cent-an-hour wage in- crease justifies a further freight rate increase. Mr. Garson noted that the rail- ways had had an increased volume of freight traffic, that "unduly heavy" depreciation charges had been allowed and that the railways were in a "very favorable" con- dition. Manitoba, he said, was "strongly of the view" that freight rate in- equalities should not be settled oy "any automatic formula" without regard to regional differences. Unless the formulae used as a fcasis for last April's 21-per-cent. Increase were challenged, new in- creases would "almost automatic- ally" follow. Four-Point Attack The Manitoba attack, Mr. Gar- son said, will be based on the fol- lowing four grounds: 1. Tlvat the railways have in- cluded "excessive amounts" for de- preciation. 2. That expenses allowed by the transport board included .mainten- ance items which "should not prop- erlv be allowed." Forecast: Ideal, Not Hot, Not Wet If weiithermun's, pre- diction comes true' it looks ns if the week-end will be some- tliiiifr outdoor fiends drenm about. There will be no blazing- heat ixnd no sudden showers According1'to reports. Apart from some cloudiness Saturday afternoon skies will be clear and light winds will waft their way over (toll courses, tennis courts and tool- halt fields. Outlook for Sunday shows some cloudiness with little chnnjrr in teinperninre. Expected high is 70 3. That the board allowed the Canadian Pacific railway to charge against Its railway operations "all fixed charges and dividends of the entire corporation when some part of those charges should properly have been borne by non-railway operations such as hotels, steam- ships and highly profitable invest- ments such as C.P.R. holdings in Consolidated Mining and Smelting corporation." 4. That the board allowed the C.P.R. a surplus of more than per year from railway operations over and above the items mentioned in "notwith- standing the fact that the C.P.R. had available to 'it earnings of some from its non-railway operations and investments." Mr. Garson said Manitoba's freight rate counsel had advised him these items' might amount to a year for the C.P.R. The whole matter, :he said, should be reviewed by a royal commission. MILITARY PtAN BUENOS AIRES, Aug. 21 The Argentine senate Friday voted a military construction programme to cost about Although secret arid open political coalition against it has reduced C.C.F. representation in pro- vincial legislatures, this is welcomed by the party, M. J. Coldwell, na.tior.ial. C.C.F: leader, told delegates to tlie party's 10th biennial convention banquet held in the Fort Garry hotel Friday night. welcome it because this is drawing the political line in a realistic fashion between the forces of privilege and reaction, and. those oi: social justice and progress, Mr. Coldwell declared. Introduced by Mrs. Gladys Strum, Qu'Appelle, Sask. only woman member of the fed- eral house, Mr. Coldwell said spec- tacular victories during the past year merely emphasized the trend towards the C.C.F. C.C.F. representation in parlia- ment and in the legislatures hac come mainly from the farms, he said, and added that it was worthy of note that rural members had fought for the rights of organized labor. The C.C.F. is now the official opposition in British Columbia, Manitoba, Ontario and Nova Sco- tia, he said. Forced Into Coalition More significant, still, he said, was the fact of Liberal and Con- servative parties forced into open and secret coalition in B.C., Mani- toba, and Saskatchewan. Touching on eight federal by- elections which have been held since 1945, Mr. Coldwell inter- preted total votes: "In the same constituencies we Liberal vote was find that, down 12 the pei- cent., the Progressive-Conserva- tive vote down 18 per .cent., and the C.C.F. vote.up 56 per cent." The election held in Saskatche- wan recently was the most import- ant, he said. "There, the move- ment was subjected to its greatest test." This election followed "remark- ible wins in three by-elections held in Saskatchewan, May 31, June 8 and. in the Ontario provincial elec- tion of June 17." He continued: "I say that the combination against the Saskatche- wan government was the strongest that could be organized. Every ser- vant of every vested interest was active against the C.C.F." "Despite this our candidates See COUDWELl, Page 9 Meeting Expected To Approve Of Butter Substitute The C.C.F. is expected to go on record as favoring the importation of oleomargarine into Canada. Although David Lewis, national secretary, refused, to be quoted on the subject Friday night, resolution No. 47, which will face delegates at today's stated that Tor- onto C.C.F.'ers at least; are in favor of the butter substitute. Several other resolutions ask for essentially the same thing, and the party's national executive is under- stood to have drafted a compromise motion covering those from the various parts of the dominion. The national council's resolution, it was learned, will advocate re- moval of present restrictions on the importation or manufacture of oleomargarine in Canada. Should the C.C.F. pass the re- solution, it will be the first major party in Canada to approve im- portation of a butter substitute. The convention is faced with an agenda resolution from British Col- umbia demanding a definition of C.C.F. policy on this question. The resolution, in addition to the nat- ional executive's compromise motion, is expected to bring the problem to a head at the national meet. ARMY WEEK OPEXS SEPT. 2ff OTTAWA, Aug. 21 (CP) The first army week to be held since the formation of the new active force in 1946 will be held in. the .veek of Sept. 20, army headquar- ters announced Friday. FOREIGN TRADE HITS HIGH Dominion Reports Gain In U.S. Trade Balance OTTAWA, Aug. 21 the value was ada's adverse trade balance with the United'States dropped sharply during the .first six months of this ear, when the value of the domin- on's foreign trade hit a new high, .he bureau of statistics reported Friday. The adverse balance for the half- ear period was com- pared with in the cor- period last year. Although there was an unfavor- able balance with the United States, Canada1 enjoyed a favor- able over-all trade balance of This compared with a favorable balance of in he first half of 1947 and of 000.000 in the first six months of 1946. With moderate guins in both and exports, the total foreijfn trade increased to in. the' first six months of the year. In the corresponding period lait year The half-year aggregate the highest ever recorded for the per- iod, comparing with the wartime peak of jn 1944. Figures released by the bureau showed that the adverse balance with the United States began drop- pirfg after import restrictions and excise taxes were imposed by the government last December to con- serve a dwindling supply of United States dollars. The taxes were re- moved July 31. The adverse balance in. No- vember last was Tn December it dropped to In the first six months of this year the figrnres were, with corresponding, fij- ures for last year in brackets: January, February March April, May S2S.700.000 June Douglas Says C.C.F. Taking Middle Path "The masks are off, the chips are Hon. T. C. Douglas. C.C.F'. premier.' of Saskatchewan, told delegates to the banquet ol the party's 10th biennial conven- tion Friday. Standing in the glare oJ! spot- lights which were the signal for the commencement of a national film board record and the broad- cast of his speech by the CBC, Mr. Douglas said, "The fight is on between the people and those who live off the people." A few moments earlier, C.C.F. executives called for a sight of C.C.F.'ers who had attended the Calgary inauguration meeting of the party in 1932. The call was an- swered by S.. J. Farmer, formerly C.C.F. Manitoba provincial leader; Miss Agnes McPhail, M.P.P. for York Ontario; Angus Macln- nes, M.P. Vancouver east and na- tional vice-president of the party; M.J. Coldwell, C.C.F. national lead- er; Clarence Fines, C.C.F. provincial treasurer, Saskatchewan; Walter Mentz, Edmonton. "Two ideologies are struggling for supremacy in the world. Com- See DOUGLAS Page D his official position by his rule in the Kosciikina cn.se, the Russians had no choice 1ml (o remove Lomukiu from his post. But. it was believed they Smith. f.S. am- bassador. carried out a series ot in- i tensive consultations with Fran'-c j Roberts. Krilish envoy, and ihe I French ambassador Yves neau Friday which streu-hed out I cm past midnight. j iiiiNMan-riMitrii-lled liiulin I Herliu said I In- negotiation., on Cerjiianv were altoul to hrealc up. The Soviet rout rolled AD.V news iiKi'iicy said (he western powers could noi reach asrce- ment on Sin-jet demands for a voic-c- in the Itnhr. Hadio Berlin officials later denied thai it had relucted tile Moscow talks would be broken might Joff. Tliev said unlv report accompany the action with a fresh jcarriod bv the radio was one ;rom blast against the American stand Goraia in the refugee teacher dispute. T-e'iov -VDV -v'- M Speculation in official woVn also takes into coiwleraliun two other possible Russian moves: 1. They may take some reialia- tory they usually do in such accusing an! The iii''le--ei-ei American official in the Soviet jdemands 'for v Union of improper conduct and or-ilnt. dering him out of that country. Then' w-is -lot They may reject the stale parlments recjuest for two letters! block in -I'Mre Mrs. Oksana S. Kosenkina wrote wosiern powers L-ap mid representatives a: Moscow failed tu come off because "of a (iillei eiiee ol opinion nniong ilio western le letters are reported lo explain her decision to remain in the Uni- ted States and possibly may throw further light; on her i.reatment at is- r bv, here In inrli- the Mumbling hut ii was bo- wilh rhe position Ijiiteil Stales and Lomakin's hands. President Truman is expected toiu.j sign early next week u formal re-j of Lomakin's credentials which the presi- dent, originally issued uerrnil linu There was a possibility thai Mol- olov rniHht call the envoys to tin- him to serve as consul in the Unit.'d States. it hem for a new hut this wa.s considered unlikely. A end lull .seemed in prospect new inst ruel ions troni the ern capitals sninild an ive suddenly. I Till-, western envoys were snid Macken z i e Ki n g Back In Ottawa OTTAWA. 21 Minister Mackenzie Kins returned to Ottawa Friday night after a secluded seven-day holiday in the United Slates. He said he had a "fine lime" during the seven 'days "visiting friends4' in Seal Harbor, Me. id to lie eunv'mreil that tin- evfra- iirilinriry ser.rery Mirrmi ii.liim- the scries ill tallis wilh Mnlo- lov is [inyitiK iliviili-niN in abili- ty to< talk witlionl neeessary in public de- bate-. confyrf-niri's urn rharar- tPrix.erl hy less palaver and rhetiirio and more discussion of drnvnrijjlit facts: and viewpoints than nny other iniporlant post-war infemn- lional one aulhoritmivq .source snid. EXCHANGE WITJI U.S. Ottawa Wants Return To Unified Arms Plan OTTAWA, Aug. 21 Unitr-d Stalr-s arc al- ready making scattered non-arms purchases worili millions of dollars in Canada, Ottawa Is seeking lo arrange wilh UK- U. S. for an integrated system of. armaments production .similar In that in force during the war. This, it was learned Friday, would allow the dominion to con- centrate on' a relatively few lines, to sell her surplus to the U.S. continued crop jn wake or tin- visit of lln- T.S. ilcl'cncc secretary, James 1'nr- rcslal. to Ottnwii last wrck. From WashiiiHIuii and Ottawa, and, in return, to be able to buy observers have reported from that country the things sheiulated that Canadian-Ainerii'.-in docs not make. That is one fact that emerged from a source. uinid the ctf reports BETTY JEAN FERGUSON WINS Halifax Beauty Chosen "Miss Canada" Of 1948 HAMILTON, Aug.' 21 .lean Ferguson, slendr-r Halifax blonde, Friday night: won the 194S Miss Canada crown over 35 other beauties from across Canada. An ail-male jury o.f five judged the 123-pound Miss Halifax the winner after watching the contestants go through throe routines in evening gowns, giving individual performances jtalks un v.'i'slcru di-fenc I a re on; DIM; the U.S. will j-pi-tid least here tliis jnn mati-rijils: thai Canada is pressing for orrirr or orders in kei'p her arFenals tofilrd tljat arms ion has become immediate. I-'ornistal snniinoni'il tin- I'ni- Icil Stiilr-s joint chiefs of staff Friday to a. highly-important week-end eonfi-renre at thr war collirge at Newport, R.I. They will a sumniiiiK-np of the Kf-rlin sil nation from Hoyl Vandenhurg, air force ehief of.staff, who reached here Friday from Germany. Forrpsta! also will r-port on his reeeiil talks wilh Canadian do fence singing or other talents, and parading in bathing suits. The judges evidently preferred i Blondes. Two other fair-haired j _irls took the runner-up positions Phyllis Williams, of Tor- onto and Ethel Valgardson, of Taher, Alta. Miss Williams, a 22-year-old nurse .placed second and the 23-' year-old Miss Valgardson took "third. With the crown, the, 20-year-old Miss Ferguson wins a trip to At- antic City to compete in the Miss America pageant. Last year's Miss Canada, blonde Margaret Marshall, of Toronto, placed first in the bathing-suit division of the Miss] America contest and third in the ill-around. judging at Atlantic i year ago. Wins Other Prizes Miss Ferguson, a talented singci who sang a medley of songs riurinf, her talent test, also gets a scholarship for whatever artistic studies she desires, a wardrobe, valued at S500, a S500 diamond ring, a S300 wrist watch and a ?200J :rown. Educational scholarships a singing student, was! from to S500 went to the. judged the most-talented entry in I first nine runners-up. (the pageant. Miss Avers. no crop damn .The 10.finalists included seven Toronto girls Miss Williams, Florence Ferriman. Tina Boddeh. Irene Ayers. Connie Laidlaw. Betty Jane Pike and Jean Rigby. Pearle Merrill, Fredericton, N.B., blonde, was among the other three, along with Miss Ferguson and Miss Valgardson. Wilma Eileen Porthouse, of BETTY JEA.V Severe Storms Halt Harvesting Torrential downpours nnrf storms whien struck scattered western Manitoba dis- ii ct: Thursday li-rnpornrily suspended harvesting but caused no serious lo flattened crops. Heavy grnin fields Brandon suffered whtat heads be- iDH down into th-ir .stockn, but slisjht damage will permit hnr- to br- resumed Monday farther Considerabli; tree damage hy high winds :it Dauphin was fol- lowed by as golf balls" which whlu-nccl (lie entire town. aKo dam- aced some buildings and dis- rupted power and IHcphoni- communications. a r v e s tiiiK operations will re.sunif' Uicrf shortly as Jittli- crop was done. Farmers at j., Thurs- brunette, won a silver trophy as [day's rain. "the girl wilh the must beautiful Serious jxiwpr disruptions occlir- hair." jrint; o.-i the Manitoba corn-- Miss Ferguson broke into tearslmiMion between M'.rden and. as she mounted the dais whereJBoissevain were put. in order by the golden crown was placed on Friday noon. her bead. She soon .regained composure, however .and stood ft more than an hour as photograph ers snapped pictures. Heaviest rnins during were reported at: Dauphin. 1.84 Rivers, !.6S inches: ar.-l .35 inches.