Summit Lake Eight Million in Telephone Line Watered Stock Good Prospect! in Beauharnois
Jolin A. Fraser, M.P. Intimates Political Parties Got Million Provision Will Be Made In and the Rest Went to the
Supplementary Estimates Friends of Promoters
SERVICE IS NECESSARY MAY WRECkT PROJECT
! REICHSBANK WILL
SEQUESTER FOREIGN
SECUKfiflES HELD
Berlin, July 2%.�To further improve the position of tbe banking system of the nation the government has issued an emergency decree-requiring all persons and Incorporate; companies holding foreign securities in excess of $5000 to surrender the same to the Reichsbank on or bfcfpre Wednesday next. .
ill Give Head of Waterway a Direct Communication With Business Centers �
j Committee's Report May Result in Creation of.Royal Commission on. Enquiry
That a start will be made this summer upon the construction of the telephone line to connect Prince George with JjJummit Lake is the hope held out in a communication which A. E Moffat has received from John A. Fraser, M.P. Tri'-s telephone Une does not involve a very formidable expenditure, the estimate, ~of cost beinc somewhat under $7,500, but the establishment of the line will be of �tremendous advantage.
Summit Lake is the present gateway into the northern reaches of British Columbia and -will continue in this relation until the hoped-for railway caii be provided, affording as it does a water transport to the northern country. There is less business going through Summit Lake this season than for some years, but this is largely due to the general depress'on which has squeezed much of the prospective values from the mineral discoveries of Ihc country. There is no reason to believe this depression will continue for any great length of time and next summer may see a restoration of traffic through the waterway which makes the securing of telephonic communication with Prince George so desirable. The linking of Summit Lake with Prince George is not a new pcp-'ect It hasi been advocated for a iiumber of years. Since it was first mooted some changes have been introduced in'the method transport; particularly in the employment of airplanes over great distances which formerly possessed no /avenues for traveL save those afforded by the waterways. This change, however, has but emphasized the importance of ^he telephone Une to Summit Lake, as this body of � water makes an ideal point from which to operate planes.
John A. Fjaser has consistently supported the' telephone line to Summit Lake and he holds out the hope that when the. supplementary estimates are tabled in the house of commons it will be found provision has been made for its construction. From the government reports it is shown the work involves tine erection of 33 miles of line along an established highway, which with an additional three miles for "legs." gives a total construction of 36 miles. There are 75 settlers in the district to be served, but it is anticipated the greatest revenue would come from transients .such as freighters, trappers, surveyors, mining men and tourists on 'their way in and out of the north country. It is estimated there would be at least seventeen subscriber^ for the service which would give a, fixed revenue of $510.00, -aside from tolls. The detailed estimate of cost of construction is given at $1,200. Respecting other work in this riding Mr. Fraser advises that improvement work on the Crooked River, which forms part of the northern waterway can be expected to get under way shortly. *
�.-----------o------:---------
SEN. MACDOUGALD KNEW NOTHING OF CAMPAIGN PAYMENTS
Benefitted by the Conference
to Meet German Requirements in Place of Loan
Ottawa. July ; 23.�The Beauharnois
enquiry ended suddenly ' yesterday, j ------�
much to the disappointment of those I Short Term Credits bv Powers who desired to trace the $700,000 which i creates Dy rowers
j it Ls alleged went to the campaign .
i chest of the Liberal party, and the \
I $i 25,000 intended for the Conservative
j war chest, but which John Aird, jr.,!
; says he retained for himself. The de- j
j cLsicn to close the enquiry was reach- �--------
j ed so suddenly that the suggestion was j United States to Make Propos-
al for Ship-Building Holiday
CRISIS IS NOW PASSED
tlcman's agreement" not to stf.r the unsavory mess further, but this was emphatically denied by Hon. W. A. Gordon, chairman. � Just what the next move will be Is a matter of speculation. There is a report in circulation that the investigating comm'it-tee will confer with the provincial
by the Three Powers
London, July 21�The conference of me powers immediately concerned in the worikng out of the details of President Hoovers moratorium on war debts and reparations payments made, con-
government of Quebec, before submit- siderable progress" yesterday, and as a vine its report, which is expected to , resnlt tnere has bem much improve_
make Its* appearance in parliament on ; ment ln the financial situation.
Monday. of the outstanding results of the con-
rt. O. Sweezey, president of the ; ference was the announced willingness
I Beauharnois company, who testified, of German Chancellor Bruening to
I to giving John Aird, jr. $125,000.' accept the advice of Premier Ramsay
in unregistered Victory Bonds, and in-'"- � �� � ��� �
tended to reach the campaign fund
of the Conservative party, admitted
One
Macdonald and withdraw his appeal for a loan of $325,000,000 to assist- in the rehabilitation of German finance.
that the directors of the company did I Instead of a direct loan the chancellor not authorize the campaign fund con- will make application for a continu-trlbutions, but ^hat they had later ap- ! ance to Germany of short time credits proved of them. The alleged contri- j to the extent of $125,000,000. The as-bution to "the Conservative funds | surance of the powers was given that seemed to interest the members of the j such short time credits would not be committee more than the larger contri- withdrawn so long as the powers were bution of $700,000 which it is said satisfied that Germany is making a were furnished to the Liberal party, genuine effort to extricate herself One thing sticks out painfully, and from her present financial difficulties, this is that political affiliations prom- ' The Daily Herald carries a story to ise to influence the members of the . the effect that the United States Sec-committee in their judgment. .. retary of State Stimson will make a -A F King testified that an audit j direct appeal to the finance ministers of the Beauharnois company's books J of Prance, Germany and Italy to agree disclosed the stock oi the company | upon the observance of- a ship-buiW-had been watered to the extent of i inc. holiday until after the approach-s7 379 000 As" less fhan $1,0,000- Is i ing "fflsarmament coftlhtsnce to be held said to have been contributed to the ' in February next, and there is said to political organizations, the Beauharnois ; be a,very good prospect that the pro-stands as the greatest graft- , posal Will receive favorable considers-l in. the history of the j tion: The inclusion of France and Italy in the ship-building holiday win make it more easy for the German government to comply as -it will savor less, of foreign dictation.
Mining Industry Holding Up Well in the Province
On Tonnage Basis the Output is
Held at 84% of That For
The Previous Year
LOW PRICES HANDICAP OPPOSE DISARMAMENT
Marked Revival is Shown in the I Contends Military Forces Have
France Giving Trouble at the Debt Parley
Resisting Efforts of die United
States and Britain to Reach
Settlement
Search For Gold Properties In The North
"Mining in British Columbia has withstood the shock of world depression and extreme low metal prices in a most satisfactory manner," is the comment of Hon. W. A. McKenzie, minister of mines, in issuing- h-'s summary and review of the industry for the six months ending June 30th, 1931.
'The figures show that for the period under review our mineral industry operated on an output basis of 84'/, of that recorded in the corresponding half-year of 1930�when high record quantity production of metals and minerals was made/While some falling ofi" has occurred in the development of base metal properties th's has been compensated by the widespread revival in gold-mining and the keen Interest in prospecting for placer geld.
"Attention in particular is directed to the fact that gold properties that have been dormant for years are now being developed and the financing of other projects is being attempted. Prospecting has been well maintained. Unemployment and the lure of gold� again a potent attraction�has resulted in many men going into the hills, with the result that more are so engaged than in the year 1930.
"It also is noteworthy that the value of structural materials is nearly as high in the half year of 1931 just ended as it was in the first six months of 1930. Building and structural work, therefore, is being carried on practically at a normal rate.
"Coal-mining has declined in common with the depression in general industry, but corrective measures, strongly endorsed and assisted by the government, are having beneficial results and, it is hoped, will re-establish the industry and assure its future expansion."
The gross value of the mineral pro-
dominion.
John Aird. jr.. had a rather trying lime upon the stand. His story was that the $125,000 was given to him for services rendered in connection with, the formation of the Beauharnois com- j^JrlllNA J
pany. That there was nothing said ; SERIOUS REBELLION about passing the money on to me �Vf vtAnTumM otrr-TrMvi
Conservative party, and that he had \ IN NORTHERN REGION
retained the entire amount for him- \ -------
en $700,000 xo the Liberals, and SJ25.000 to the Conservatives, and the value received for the same, has become one of the chief objects of the nvestlgating committee.
BRITISH COMMONS DEFEAT CONSERVATIVE MOTION OF CENSURE
London. July 21.�The Conservative motion of censure, on the Labor governments policy *ln connection with agriculture, was rejected by the commons yesterday on a div'sLon cf 230 to 278.
enquire further !nto the activities of; ------------o------------
the Beauhamois company. This it is j-jON. R. J. MANION
contended is the logical outcome. At i
present there Is no way of determining \
what public men have been tainted in-.
what is now conceded to be the;
greatest political scandal in Canadian j
history since the time of. the inception ;
of the Canadian Pacific Railway, the |
RAILWAYS SOUND
Been Reduced to Minimum
for National Safety-London. July 21.�Although the impression has been gathered that the crisis in the Geroian financial entanglement has been passed, the reports from the different capitals are conflicting' and bewildering. The outstanding, ieature of today's news appears to bs thjit France will make any concessions to Germany grudgingly, and that the Nationalist following in Germany will resist to the uttermost any concession in the matter of German pol'.cy proposed by Chancellor Bruening which savors of French dictation.
Parly in the day there was a report current that the United States government proposed to take the lead in the effort to secure a settlement of the German situation and that H. L. Stimson, secretary of state, had received instrucVons from Washington to proceed with the proposal for the abandonment of a_German loan, with stipulations for snort-term guaranteed credits for an indefinite period.
This move was not regarded with favor by the French representatives, and there were intimations that if the United States and British proposals were adopted. Prance would withdraw from the conference, as it would leave Frs-.nce with nothing in the way of a guarantee for the payment of German reparations. From the d'scussion at the conference today it is evident France stands alone in its insistence upon a German loan as against the institution of short-time crejdits. It is also regarded as likely that France "/ill prove troublesome in the effort which is being made to link up disarmament with the moratorium for war debts and reparations payments. France is now the world's greatest military power, and the sentiment of the nation, as expressed through its government, is that France must remain so. The ultimatum of France
ductlon of British Columbia for the on disarmament or reduction of arma-six months ended June 30th. 1931, is | ment is now fairly well known. It will estimated at $18,703,267 as compared | admit of litotle in the way of compro-
with $29,910,672 in the correspond1�? period in 1930.
This decrease of $11,207,405 or 37 per cent is due to lessened output of all metals' and minerals and much lower prices. Considering the utter demoralization of the metal markets and the severity of the world-wide business depression, it is satisfactory that British Columbia mining has made such a creditable record in the iirst half of the current year. Based on dollar value, production is running at 63 per cent of the 1930 rate but in i
mise, but will insist that the land, sea and air forces of France have been induced to the absolute minimum compatible with national security during the conditions at present existing throughout the world. This it is realized creates a situation which it will be difficult to bridge in Germany.
Berlin, July 21.4-Among the suggestions advanced bykhe German government to convince the powers that it will do its utmost to extricate Germany from its financial straits is one for a general increase of 10% in taxa-
quantity output it is run- j tion. and for the placing of the coun-k at 84 per cent of the 1930 rate, try upon a ration basis for food and
Ottawa, July 21�Hon, R. J. Manion, j^ister Of railways, in defending his
of the , department from sharp criticism in
ch"ef difference being that the .boot j tne nouse( today declared that Cana-this time is ou a different political; da-s iU*iv/ayS are sound, and that they foot. . . j will be able to pay their way with'a
Although there is not the faintest rPt,Urn of normal conditions.
suggestion that Premier Bennett is ------------0------------
involved in any way with .the alleged juz-yrjcp csunpa'gn. contributions to the conser-.j.rtt->U&ts vative party the disclosures have plac- . ed Mm in a very difficult position. It is asserted the credit of the Beauharnois company cannot fail to be m- affected and that difficulty I h flti of
Both these figures compare quite favorably with business indexes in many lines.
In common with the whole world metal-mining in British Columbia has been heavily affected by the current world ^depression. Low prices for all metals" except gold have caused curta'l-mf.nt of production, closing down of mines and nearly profitless operation for the industry. Considering however, that British Columbia is mainly dependent on world markets to dispose of its metals it is remarkable and highly satisfactory that production has been so well maintained. In recent years the principal output has been from the Sullivan. Britannia, Premier. Hidden Creek and Copper Mountain mines, and of these only the latter has been closed down. Practically all of the small silver-lead-zinc mines of the province closed down in
necessities. The fear that a consider-abh; number of the German people will see the driving hand of France in any plan to bring about the restoration of German finance is evidenced by the Nationalists, who have issued a' manifesto to the effect that they will not recognize any undertaking of the German government which savors^ of French dictation. This is taken to be a move to appeal to the people of Germany to declare in the first instance for a moratorium under the Young reparations plan, as a first step to repudiation of the war debt.
MUCH OPPOSITION IN SOUTH FORT GEORGE TO AMALGAMATION
Alex Cleland says there is more opposition in South Fort George to the
1930 and no change in this condition proposed school amalgamation than is to be expected until metal prices | would appear from the report of the
COMMONS NOT PREPARED FOR STERILIZATION BILL
London, July 21.�The bill to pro-
may be anticipated in the floating of j vlde for the sterilization of mental de-the company's $50,000,000 bond issue, - �� ........
in which event trouble might be ex-
MISSING PLANE REACHED
GRAND FORKS MONDAY
Grand Forks, July 21.�The plane which had been missing from the Canadian flotilla, making the flight from Hamilton bo Vancouver, arrived here vesterdav from t^tr-bridge. The i machine is being p-Jofed by Jack San-1 devson and George 3ennett. '
in which event t
pected if an appeal has to be made to the Canadian banks. ' Another complication :s presented with the demand Irom the labor organizations of Canada that the federal government meet the situation by caking over the Bcauhnrnois undertaking * and perform an act of simple justice by squeezing the water out oi th-p Beauharnois � stock. This it is asserted is the only method-by which the people of Canada can escape from paying interest upon approximately $8 000 000 expended by the company ior which it has received little or nc value This � proposal would doubtless meet'with favor but lor the fact action- along this line would invite a conflict between the federal and pro-\incial authorty as, to jurisdiction and could no- fall to Incraiserthe poli-
fectives was killed in the house today on a division of 89 to 167. Supporters of the measure asert it will be introduced annually until parliament adopts it.
DRY AGENTS SEIZE BREWING PLANT
IN NEW YORK
New York. July -21�The Phoenix Brewing plant, which for some t'me was ^he chief supply of the hundreds Df speakeasies of this city, was seized yesterday by dry enforcement agents. A large supply of beer was seized together with equipment valued at $2,-)00.0O0. 1
Weal complexion of the muddle, and
at- the sanie time furnish the disputants with a more savory battte ground.
move considerably h'gher.
Offsetting the depression in silver and base-metal mining, greatly renewed interest has been shown in gold-
annual meeting of the school trustees which resulted in the election of M. J. Kinney over Harry Avison. That the majority of those present at the
mining While product'on of gold I meeting favored amalgamation Mr. shows a slight decrease, this was:! Cleland :s prepircd to admit, but the caused mainly by lowered output,f rom ,. meet ing was not advertised and a tho Premier, the non-oi>eration of theT.large, number of the ratepayers dd Nickle Plate, and curtailment of cop- I not know the meeting was being held, pcr-mihing resulting In less by-product \ Since the meeting those opposed ..o gold j amalgamation have been busy in ths
ii i
g circulation of a petition against.amal-
Against these declines were incueas- circulation of a petition against.amal-ed returns from the Pioneer. Union j ^.naf.on. To this.' ^"L ^T"i n ; and' Reno mines. The healthy interest SS&^^S^S9^^ &�
ex p?ctecl more will be added, after which it is to be forwarded-to Hon. Joshua Hinchliffe, minister of education. .These opposmg amalgamation sa)V they have a much greater strength , than "those favoring the measure, and The principal sources of the slver ^ confident lhe amalgamation plan
produced were the Sullivan and Pre- will not be proceeded with.
mier mines, both of which were op- ' ____0 i____.
crating at a somewhat reduced rate
in gold-mining at che present t'me has' resulted in much further development of properties.- which is expected �ie result in greater production in the future.
as compared with the . first half of 1930. .Durine the period the Prosperity and� Porter-Idaho nvnes were closed down owing to the low price of silver. The closing-of-the Copper Mountain mine by the Granby Company and curtailed operation by the Britannia lowered the copper output, in accord-
ance with the g-eneral curtailment agreed upon by the principal world | ^U\paniedTby (Continued on pwf� 4.}] experien
ATTEMPT CROSSING OF ATLANTIC IN LITTLE
30-FOOT YAWL
York Harbor. Maine. July 21�W.'1!-Uam Bac^h, a lad o: nineteen, will ittempt the 'dressing of the Atlantic
n a 30-foo" yawl;. Bacon will be ac-