Winnipeg Free Press (Newspaper) - December 16, 1966, Winnipeg, Manitoba TODAY'S INDEX JUMBLE 34 Classified 32 to 41 Movies 29 Comics 30, 31 Sports 43 to 48 Deaths 11 Television 28 Finance 23 to 25 18 Final Edition First Section Pages 1-16 VOL. 74 NO. 68 PRICE lOc 15c DECEMBER 16, 1966 Sun RIMS a.m. Moon p.m. Sun Sets p.m. Moon Sits p.m. 20 and 35 Loans Roblin Admits Error Rates Reference By PETER RAESIDE Premier Duff R o b. 1 Ln stoutly defended tions of the Manitoba de- velopment fund Thursday and its principle of public credit for the lic In an impassioned 105-minute speech in the he upheld the secrecy surrounding the individual trans- And he blasted opposition allegations of irregularities in loans made by the fund to Churchill Foresl Industries Ltd. and Simplot Chemical Co. Ltd. But he admitted making an er- ror he told the house day that the fund loans money at VA per cent more than the government pays for it. The now pays 7% per cent. The accused ition critics of producing out of a hat in the last few days as if there has been a. dalous when there had been virtually no criticism in the last legislature when the powers were His often punctuated was a rousing reply to three days of opposition questions on the Saul Cherniack got the ball he disclosed in the house Monday that the fund had loaned Churchill Forest tries million at what be called a low interest rate of 6Vt per cent. The into a storm with reports that the fund had also loaned million to the Simplot Chemical fertilizer plant at seven per cent Premier speaking in Speech the opportunity for a wide review of the terming it a for industrial ment in the But he declined to elaborate specifically on the financial backing of the controversial dollar integrated forest industry to be developed near The by Churchill Forest a subsidiary A.G. Premier Roblin quoted from a report from the auditing firm of Currie and Co. which said the loans approved by the fund to date were in accordance with the act. hope the idea doesn't get currency the as. this will beyond doubt damage the of the he went on to list the questions asked before a loan is incuding the project's economic availability of markets and the investigation company's Please See Page 5 Act Changes Proposed crowd into the Royal Alexandra Theatre in downtown Toronto Thursday to their of claim at a meeting of the Prudential About are owed money by the bankrupt PRUDENTIAL FINANCE Creditors Learn Bad News At Stormy Curse Applaud Call For Lynching By KEN SMITH Canadian Press Business TORONTO In a stormy session that brought frequent and even a cry for a creditors of Prudential Finance Corp. Ltd. had their first meeting Thursday and learned that their position shapes up even worse than had been NATO Plans To Explore New Paths Belgian Foreign Minister Urges Galling In Outside Experts By ALAN HARVEY PARIS The NATO council agreed Thursday to take stock of 17 years of Atlantic partnership and study ways adapting the ance in the years Foreign Minister Pierre mel of taking up advanced by years called for a look at past developments as a future He suggested specifically that outside experts might whether NATO is the most suitable forum for developing East-West His proposals reflected the growing sense of trends in an organization whose members generally that danger no longer hangs so menacingly over External Affairs Minister Paul making Canada's contrit in Thursday's dis- gave a cautiously mistic analysis of Soviet tions and East-West Later he told reporters he will be surprised and disappointed if speedy progress is not made on a He gave impression he expected a result from disarmament talks in perhaps early next State Dean speaking for the United States in appeared to be a different said he could not at this time be optimistic about when such an agreement might i Please See NATO Page 12 of Co. for the told creditors that losses known stand at and more Warning that it losses Off In January OTTAWA Finance Minister Sharp confirmed day federal authorities were tipped off last January by countant William Gruber that something was amiss with Finance Corp. Mr. Sharp told the Commons that Mr. Gruber was formerly employed by the auditors for j will run between and When Prudential nance was first reported trouble a month it showed book of The by 800 rof the See PRUDENTIAL Page 12; Prudential Insurance Co. of America Friday emphasized that there is absolutely no connection be- tween their firm and the Prudential Finance tion or ithe North American General Insurance and Wentworth Insurance com- the Prudential He had been dismissed from his Prudential Finance three in- surance bankrupt in recent Please See TIPPED Page 5 House Gets Set Air Strike Confusion Reigns As House By VICTOR MACKEE OTTAWA Senator Douglas Everett appealed in the senate Thursday for the sion of the words and in the definition of under the proposed amendments to the Criminal i The newly appointed Manitoba j making his said he was concerned with the drafting of the section which dealt with that the special on hate in report referred to a Sen. Everett submitted that this was quite In the legislation before the upper house an meant any section of the public by race or ethnic The special com- talked about Please See Page 13 By MORRISS The Manitoba legislature recessed for the New but only after one of the weirdest procedural wrangles in province's One interpretation of the day's events was the throne speech debate was but a throne speech would con- Legislature Reports Final approval given to grants for municipalities Page 29. Education dum costs get royal assent Page 29. 0 Spending estimates to be revealed Jan. 19 Page 30. House recessed for idays after procedural wrangle Page 1. Roblin defends Manitoba development fund Page 1. Income tax legislation passed by house Page 1. No h a 1 d 9 In Prairie price probe Page 39. when the house 19. of the would decide whether house confidence in the Roblin government's proposals will be conveyed to the Here's how the series of events unfolded before the wondering eyes of the press .In the middle of the afternoon Mr. Roblin to the housed that the government wanted to go into committee of the whole to third and final reading for which i royal assent before the Christmas To dp so they had to have the concurrence of member in the J. Froese de- to give his He suggested they carry on with second reading of some other bills on the order paper then get on with the speech debate as he had something to Consternation r e d. Mr. Roblin then threatened that unless Mr. Froese gave in. the house would have to sit He even tried sweet reason suggesting that Froese 4-ConfinUfd Please See CONFUSION Page 13 VICTOR Ottawa The Com- mons will sit tonight all if to pass legislation stop air controllers striking Treasury board E. J. with tives ot 800-plus controllers again The talks were still in gress when the commons met at 10 a.m. Mr. one corridor in minute effort to negotiate the settlement of the wage The strike would ground all Canada's arid in- have to land in the United 'The has said it not such a to take v The legislation would give controllers increase the third in: -less than Benson has the government will recommendations of Judge John asked by the government to into the controllers He or said curb inflationary He also cut capital tures by the Mr. Benson explained today government held off Please See HOUSE Page 11 France rii lo stay in NATO By ANATOLE SHUB PARIS France Thursday indicated for the first time that it will remain in the North Atlantic Alliance after 1969 the in which members will be free to French Minister Maurice Couve de told the NATO alliance will continue after 1969, and we agree that it because it is an element for stability and political co-operation will continue among Mr. Couve statement to end months of speculation as to whether French President de Gaulle's government might choose to renounce the 1949 North which specified that after 1969' ber nations could withdraw on one year's France last spring from NATO's tary organization hut re- mained a of Mr. Couve de also outlined Thursday a French conception of the future which seemed in apparent with various recent American Political the ster not that we must define foreign That is not We did not emerge Please See FRANCE Page 5 says wage would mean a 40 wage Juke over two years tHe raises in e agreement last government says the raises would throw civiT service people of cannot afford Mr. v The emergency legislation provide a pay raise for the air traffic than the 40 per cent. The federal government came under heavy fine for to large increases in. salary disputes earlier ths Finance Minister Mitchell Sharp has insisted the ment must put an end tq such if it to 2 Views Collide On Welfare Tryout By BOB The one social worker to a family be says G. G. welfare director for the City of Hie results the provincial government's three-year ment fur the project as a model for future welfare he Mr. evaluation of the experiment conducted in the Lord Selkirk urban renewal area in north Winnipeg seems to contradict an appraisal made by J. B. Manitoba's welfare A1 two-page report has been prepared by Mr. Myers and will be submitted to Monday A recent press release by Mr. Carroll the program will also be Please TWO VIEWS Page 5 Extremists Under Fire In China Lin Piao Clique On Defensive As Army Grows Restless V By ELEGANT HONG KONG The extremist faction in the Chinese Communist power headed by Defence Minister Lin lias that it is now on the The extremists are question beset by workers an students under the control o powerful opponents at th summit of the It also appears that the face strong and active oppos tion from dissident units of th People's Liberation loya to their own commanders rather than Mr. a former fiel The admission came in editorial of the latest issue o Red t he Communis party's theoretical journal which has been released in Th editorial complained that the hospital for bumps and braises reactionary faction was the Chines masses and large numbers o students attacks into making on the It pleaded such actions See EXTREMISTS Page 13 Senators Shows OTTAWA programs about and the financ Indignant senators accuse the new CBC program Sunda invading home with obscene and dan gerous films and panel discus For three they bom barded Mr. Ouimet with barbei suggested tha Sunday producers be programming b more tightly by man The CBC president defended Sunday and said it would be im practical to have internal cen of TV has always been a consensus in that broadcasting should at free and He repeated his earlier slate meat that a Brit sh film shown on Sunday Nov 7 was a mistake and thai it have been But the lease See SENATORS Page 5 Inside Stories School Bylaw Defeated Czechs Eye No. 1 Spot EDITORIAL PACE 3 43 A New China Theory In The Evening Mr. In Joseph Kraft Christopher H ALL LOOKING FOR A GOOD USED This want ad under Autos for Sale PONTIAC 4-OR. Must be seen to Ph. is among the hundreds of gains in today's classified No matter what you shop and save in. Free want All that Was Left Barry W. and his brothers had Good for three a pair of three packages of cigarettes or a seal at a You'd use it without a second But Barry W. and his brothers have been saving it Barry is and picks up a few pennies for going to the cutting lawns and doing odd jobs for His even saved their nickels and There's no Daddy W. and Mom is on With four growing welfare doesn't include but Mom is doing a fine job with her have to give her anything for A pennies are hard-earned at that but so is a boy's and Barry is well on his He saved his money and the brothers bought their Mom a but a gift of They also bought FREE PRESS FUND each other an equally loving Mom doesn't wallow in self- pity and she doesn't allow her boys There are boys and she told any presents to Barry and his brothers had i would like .to give you this it can help in some We hope you all have a Merry Our Christmas the Christmas of many be merry indeed because that is just part of the bit of help being offered daily Free Press To help provide toys and clothing for the city's needy families and senior send money to 'the FREE PRESS CHRISTMAS 300 CARLTON PEG 2, or bring it to our ads 2 Lost As Ship Capsizes MONTREAL men were missing today after the coastal freighter Cabot of loading operations on the Montreal Nine men were treated at caused when the by the Clarke Steamship Ltd. of rolled over on its The two missing men were identified as Second Officer Ge- rard and Third Officer Marcel was a remote ity the two men were still where but there was no trace them after an Mr. Clarke's company began an investigation into the capsizing was DO cargo It looks sort of freakish right Mr. Hutcheson cargo doors of the were still open when the Please See SHIP Page 11 Head Named OTTAWA The ised federal into the West Coast ports tie-up will be conducted by Mr. Justice C. Rhodes Smith of the Manitoba Appeal Labor Minister Nicholson announced Mr. Nicholson promised the in a settlement formula that ended the three-week last The dispute centred on demands by foremen to form own collective Mr. Justice a former Manitoba labor will be by C. Terry of former president of Navigation Co. and Joseph executive vice-president of the Canadian Labor The commission will not only ook into the latest but will make recommendations de- signed to forestall such disputes u In his Commons Mr Nicholson also said the net has issued a directive to all stevedores eight holidays a year under he Canada labor standards Balmy But No Record The public forecaster says Greater Winnipeg temperatures anywhere near the record for this time of but probably won't matter at 11 in the face of the balmy 35 for both today and Temperatures are still 10 to degrees above normal for What's causing the relative is a general flow of air cross the middle of North from the Pacific The air usually flows in rom the Arctic Ocean at this me of bringing relatively older The temperature in Winnipeg as 31 at 11 a.m. with le wind An overnight low 20 is The record high for Dec. 16 as set in 1877, when it was 42; je record high for 17 was et in 1890, when it was 45.