WANT ADS Buy or Sell Everything Phone LO 4-2441 The Only Daily Newspaper Serving North-Central British Columbia WEATHER FORECAST Low 30, High 50, Showers Crown Life Insurance Co. Wm. J. Shockey District Representative Phone LOgan 4-2441 Vol. 4; No. 63 PRINCE GEORGE, BRITISH COLUMBIA, WEDNESDAY, MARCH 30, 1960 7c a Copy BY CARRIER 35c PER WEEK FEDERAL REVENUES, EXPENSES BOTH REACH ALL-TIME RECORDS Deficit for 1959 $405 Million OTTAWA (CP) � A federal budget deficit of $405,800,000� second highest in peace-time history�is indicated for the fiscal year ending Thursday, Finance Minister Fleming reported to day. Government revenues in the 1959-G0 year climbed at twice the rate of increasing expenditures, to slice one-third off the previous year's $609,300,000 deficit, Mr. Fleming said in a white paper tabled in the Commons. Last April he forecast the do-ficit would be $393,000,000. The document, a detailed accounting of how the govern merit and nation fared, is a preliminary to Mr. Fleming's mid-gel speech Thursday night when he will chart the government's tax and financial course in the 1960-01 year starting April 1. � Budget revenues, buoyed by economic growth and by higher taxes imposed last year, climbed by 12 per cent to $5,-301,000,000 from the 1958-59 total of $4,754,700,000. Expenditures rose six percent to $5,706,800,000 from $5,3G4.-000,000, with major increases concentrated in public debt charges, hospital insurance and provincial t a x-s haring payments. Both revenues and expenditures were at all-time highs. The white paper said $10,000,-000 of the rise in the deficit can be attributed to a new electronic machine that handles income tax returns in Ontario. Its speed meant tax refund payments before the year. The upsurge in tax collections was due not only to last year's tax boost but also to the new muscle in Canada's economy as production growth got back or the track after two bclow-nor srial years. White Paper Highlights Budget deficit estimated at $45,800,000 for fiscal year endin? March 31, compared with previous year's peacetime high of $609, 300,000. Revenues climbed 12 per cent to a record $5,301,000,000 from $�1,754,700,000 in 1858-59. Expenditures rose six per cent to a peak $5,706,800,000 from $5,364,000,000. Defence remained the largest expense item, but cash outlays declined $105,700,000 to $1,528,300,000. Personal income taxes, up $201,500,000 to $1,555,000,000, pro vided 29.3 per cent of revenues. Public debt charges, hospital insurance and provincial tax-share payments accounted. for $288,200,000 in added expenditures. Net national debt climbed $403,500,000 to $12,081,900,000 equal lo $vhi2.50 for every 'Canadian. Gross national product rose six per cent to a record $34,593,-000,000 in 1959 after two years of below-normal growth. Labor income increased eight per cent to $17,700,000,000 and corporation profits 14 per cent to $2,836,000,000. Unemployment declined to an average 5.6 per cent of labor force in 1959 compared with year-earlier 6.6 per cent. The white paper's economic review of the 195S) calendar year reported a six-per-cent rise to $34,593,000,00 in gross national product-value of all goods and services produced. Two percent of the rise was due to higher prices, and (he four-per-cent volume gain "was the first significant gain in real output since liiuG." *\ Labor income rose almost '"eight percent to $17,717,000,000, and corporation profits a.healthy 11 percent to $2,8313,000,000 before taxes. With consumer prices rising only about one percent, "there was a substantial increase in total real income." Hit By Floods KANSAS CITY, (AP)�Early spring floods menaced broad areas of the midwest United States today following one of the most severe winters in years. Hundreds of families are temporarily homeless and others marooned. Some farms are isolated, with thousands of acres inundated. Flood waters from scores of swollen and ice-blocked rivers and streams have spilled into dozens of communities in a zone stretching across Nebraska, Kansas, Iowa, Missouri, Illinois, Wisconsin, Minnesota and the Da-kotas. WEATHER Mostly cloudy today and Thursday. More frequent showers Thursday. Not much change in temperature. Light winds. Low tonight and high Thursday at Prince George, Quesnel and Smithers, 30 and 50. Pence River Region Cloudy and cold Thursday. Snow flurries early Thursday. Light winds. Low tonight and h i g h T h u r s d a y at Grande Prairie 10 and 20. liiist 21 lion rs Lp Hi Precip Prince George.. 31 -13 .07 Terrace 33 42 .11 Smithers ........ 25 42 .12 Ouosnel 2!) 50 __ Kamloops ........ 35 56 � Dawson Creek 5 13 .32 Fort St. John.. I 12 .35 Fort Nelson .... -1 8 .01 Whitehorsc- .... 3 l'J � Though Canadians paid more in direct taxes, they had more left to spend and save than in 1958. More people were at work. Unemployment dropped to an average of 5.6 percent of the labor force from G.G percent in 195S. Gross public debt rose by tS746.60O.000 to $20,996,500,000 during the fiscal year � the result of a $312,700,00 rise in un-matured bond debt and a $433,-900,000 increase in other liabilities. But a $313,100,000 gain in net assets left the net debt at $12,081,900,000, an increase of $-103,500,000 in the year. This rise in net debt was equivalent to the budget deficit, less an adjustment for prior years' transactions. MAIN SERVICE Personal income taxes continued to provide the main source of budget revenues � 29.3 percent of the total�as they rose to $1,555,000,000 in 1959-00 from $1,353,500,000 the previous year. C p r p o r a tion income taxes, yielding 21.5 percent of revenues, climbed by $119,400,000 to $1,140,000,000. Sales taxes brought in $737,000,000, a gain of �12,500,000. and customs tariffs yielded $529,000,000, up by a similar $42,500,000. . Income and sales tax figures do not include the special three-per-cent levies earmaked for the old age pension fund. 1>KKKXCK AT TO I' Defence remaind the heaviest spending item � 27 percent of the budget�but cash outlays declined by $105,700,000 to $1,-528,300,000. The figure includes defence production and civil defence outlays as well as the defence department. Second largest cost item was public debt charges � 13.8 percent of the budget. They rose by $13S,100,00 to $7S(3,100,000 under the impetus of increased borrowing and higher interest rates. Subsidies and lax-sharing payments to the provinces climbed $55,000,000 to $522,000,000, while population growth pushed family allowance payments up S1G,-500,00 to $491,300,000. Ottawa's 50-per-cent share of national hospital insurance costs jumped $95,100,000 to $119,800.000. The insurance plan wenl into effect July 1, 1958, in five provinces. In the 1959-60 year it covered nine provinces, all but Quebec. No Tax Relief Sighted OTTAWA CP) � No major tax relief for Canadians is expected from Thursday night's federal budget to be presented by Finance Minister Fleming. The minister's lax plans will be kept a closely-guarded secret until about 70 minutes after he starts his budget speech in the Commons at 8 p.m. EST. CUT SPENDING But virtually all of Mr. Flem ing's recent public speeches have emphasized the need to end the government's deficit spending, which produced a probable budgetary deficit of around $400,000, 000 in the fiscal year ending Thursday. Most signs indicate that the current economic upswing should produce enough revenue lo balance the government's books. But if Mr. Fleming has decid ed to budget for a sizable surplus after three successive annual .deficits, all indications are that this would require higher taxes. ADDED REVENUE ' In last spring's budget, Mr. Fleming decreed a broad round of tax increases to produce an added $352,000,000 a year. Much will depend on how much of an impetus is given to future tax collections by expansion of the economy. The government has not disclosed its forecast of the expected rise in gross national production. Private economists have estimated a gain of five or six per cent in 1960, which would put the gross national product at $36,322,000,000 or better. Last year, it was $34,593,000,000. BALANCED BUDGET The authoritative Canadian Tax Foundation, a private organization, has estimated that present tax rates would produce a balanced budge,t, or even a small surplus of $121,000,000, in the 1960-61 fiscal year. There have been few big demands on the government for tax cuts. The recent brief of the Canadian Chamber of Commerce said this year it would favor federal debt reduction � requiring a budget surplus � as against a general tax reduction. The Canadian Manufacturers' Association asked only that taxes not be increased. LABOR ASKS CUT On the other hand, the Canadian Labor Congress bid for an easing of income taxes4 coupled with a large increase in government spending at home and abroad. Prime Minister Diefen-baker's reaction to this was that it would cost "a king's ransom." Bulking large in Mr. Fleming's budget planning is a coming increase in federal spending to record levels. The government's main budgetary spending estimates for 1960-61 total $5,740,-168,920, and non-budgetary old age pension payments will boost this to $6,330,168,920. The total will be raised still further by the inevitable supplementary estimates later on. ONLY THE BURNER was left standing after a $200,000 blaze levelled the Shelley Sawmill Tuesday. Citizen photographer Hal Vandervoort was on the spot to get this picture of the still-burning ruins. Workmen said the mill was engulfed in flame minutes after the fire started. (See story on Page 3). Backing Up Stadium AT UNITED NATIONS Many Sided Debate Expected on Racial Violence 25 Members Join Jaycee Youth Band The Jayc.ee Youth Band, which it was planned would swing into operation with 100 members, will be formed with only one quarter that number. First practice session will take place Friday at 6:30 p.m. in Duchess Park school. Bandmaster Eugene Bates said today that he will strive to increase band membership above the current 25 but practices will continue each Tuesday and Friday from now on. Most of the band members lave not played instruments before and Mr. Bates said he doubts if the band will be ready for public appearances before Christmas. The band was given a shot in the arm by donation of about a dozen instruments formerly used jy the now defunct high school band. CARIBOO MEN HURT CHILLIWACK (CP) � Leslie Vliller of Lac La Hache and Jack Hiekel of Williams Lake were in satisfactory condition in hospital here' following an accident Tuesday on the Trans-Canada Highway near Rosedale. Three other passengers in the same car were unhurt. .UNITED NATIONS, N.Y. ICP)� The United j Nations Security Council was called into session today for what is expected to be a many-sided debate on racial violence in South Africa. South African racial turmoil is an old subject at the UN, but the fatal clashes that began March 21 have given the problem new and sharp urgency. Ambassador Bernardus Gerhar-dus Fourie is expected to reiterate South Africa's oft-repeated assertion that the country's racial policies are an internal affair outside the scope of the UN. But the Afro-Asian stales have referred lo the South African action as "mass killings" and contend it is "a situation with grave potentialities lor international friction." ASK TO SPEAK Ceylon � which succeeded Canada Jan. 1 as a Common- Taken To Task OTTAWA (CP) � Ontario and British Columbia were taken to task in the Commons Tuesday for failing to complete their portions of the Trans-Canada Highway before the original deadline. Liberal Leader Pearson, noting thai both provinces appear to be in good financial shape, confessed to surprise that they are among those not expected to be finished by Dec. 31. Mr. Pearson was speaking on a government resolution to extend government participation in the national highway scheme by three years to Dec. 31, 1963. It also calls for a three-year extension to March 31, 1964, in the period during which federal payments may be made to the provinces, and fixes the maximum federal contribution at $400,000,000 -- S50.000.000 more than now authorized. Debate was adjourned. wealth member on the council � and Tunisia are the only Afro-Asian council members, but, Ghana, Guinea, Ethiopia, Pakistan,. India and Liberia also have asked to speak. Their representatives were expected to follow Foure who, as is customary, has the right to be heard although South Africa isn't a council member. The five permanent members � Britain, France, the U.S., the Soviet Union and Nationalist China � and others will also give their, *oews. The South African racial problem has been before the UN General Assembly year after year despite South African boycotts. Last November .a resolution was passed expressing deep, regret at the Commonwealth country's refusal to end its apartheid policies, but South Africa boycotted thai debate too. Following issuance of an injunction Monday against two unions and three of their representatives, work on the Quesnel River bridge resumed today under normal conditions. Injunction was issued by Judge C. W. Morrow after receiving an affidavit from Ray Cunliffe, vice-president of Bcnray Bridge Co. Ltd., a subsidiary of Ben Ginter Construction of Prince George. The order restrained United Brotherhood of Carpenters and Joiners of America, Pile Drivers, Bridge, Dock and Wharf Builders and Victor Midgley. Guy Canning and Kenneth Callis from interfering with workers employed on the job. The 18 workers involved are working on the 715-foot highway bridge spanning the Quesnel River. Dispute arose over laborers who were working on the bridge itself last week. Midgley, a Carpenters Union representative, allegedly advised Workers to remain off the job, claiming the laborers should not be there in the first place and that they were working in excess of 40 hours. The company objected to the union's actions on the grounds it had no collective agreement or contract with either of them. Company also claimed laborers were not supplanting bridgemen or carpenters on the project. Midgley was in Williams Lake today and was not available for comment. Details of Alweg Railway Expected Known In Week VICTORIA (CP) � The Times says details of a proposed railway from near Prince George to the Yukon border may be announced next week. Indications are the developing company, expected to be named Alweg Railway, will be established, the newspaper says. Although no development company has yet been formed, the provincial government has an agreement with the Wenner-Gren interests that a start be made on the railway before the end of June this year. The newspaper said Wenncr-Grcn executive Einar Gundersori is travelling to New York to meet with two signatories of the original agreement, Bernard Gore and Berger Strid. A reliable source said Mr. Gun-derson and perhaps the two other officials will return to Vancouver next week and will meet later with provincial Railways Minister Lyle Wicks. Defendants in an injunction may apply on one day's clear notice for an order dissolving the injunction. No application for a dissolution order had been made today, a company spokesman said. UNITED NATIONS, N.Y. (CP)� South Africa's United Nations representative withdrew from the security council table today after warning that a debate here might incite new racial strife in his country. The 11-nalion security council earlier had decided to debate the question' of violence in South Africa. CAPETOWN (CP) � More than 30,000 Negroes staged a spectacular demonstration before the guns of a Capetown police station today seeking release of newly-arrested leaders, then headed back frustrated to their native settlements. Prime Minister Hcndrik Ver-woerd announced the. collapse of the demonstration. The chief of government, env broiled in perhaps the greatest racial crisis in South Africa's history, told parliament the armed forces will be used if necessary to maintain law and order. The government proclaimed a state of emergency � near martial law � while the Capetown outburst and two flarcups in other towns heightened tension through the country. Tool Box Theft Theft of a full tool box from the back of his pickup truck was reported to police by Frank Vik-ner overnight. . Danny McKechnie's bicycle was stolen from Duchess Park school-1 grounds while he attended a Jurf- j ior Foresl Warden's meeting. ' On America Get Out 01 OTTAWA CP) � In the Commons debate raging over the Bo-marc anti-aircraft missile, the central problem of Canadian air defence has barely been touched on. Only Prime Minister Diefen-bakcr came lo grips with it Monday, and then only briefly. The choice for Canada is this: Either continue to rely on American weapons or get out' of the air defence business altogether. The choice has been forced on Canada because it can't afford new weapons systems of its own. When the government cancelled the arrow, jet interceptor 13 months ago � 100 of them would have cost $781,000,000 on top of the $500,000,000 for development � Canada retired from the major Prince Christening LONDON (Reulhers) �Prince Andrew will be christened April 8 at Buckingham palace by the Archbishop of Canterbury, palace officials announced today. Mayor Garvin Dezell said today Ilia council will "take a long, hard look" at the sports stadium proposed by the Rotary Club before giving the project the green light. He said council, which discussed the proposal in a closed meeting, was "actually not bucking it, but we want to know where wo stand and how much thei city would be committed for." His Worship stated he, personally, was "not shelving it but I'm backing up from it a bit." He said the city had to consider carefully where it spent its money and council would wait more details before making a decision. The mayor said he wanted the deal "ironed out before I get my neck into a sling for something like $100,000." NEED ABOUT 95,000 The Rotary Club claims it will need only about $5,000 from the city, however, in order to have a $20,000 stadium in operation on the Vanderhoof Highway by July 1. Aid. Harry Loder, promoting the deal for the club, cxpross-.-d confidence today that aldermen would approve the project after serious consideration. The mayor agreed that councillors were generally, in favor of the project but had to watch city purse strings closely. BINGO REVENUE DROP The stadium, proposed for city park land between the curling club and the auto race track, was first proposed two years ago but hung fire ever since due to various difficulties experienced by Rotary, latest of which was dropping off of bingo revenue. The club said it will'put $7,500 towards the project, to buy lumber for bleachers which would seat about 1,000 people. And it expects other materials and labor "~>; to be donated. According to Mr. Loder, the only thing holding up development of the stadium is a commitment from the city. WATER NEEDED The $5,000 sought from the city would be in the form of a $1,100 foot water line from the curling rink. Water is needed to establish a grass infield, necessary to keep down dust because of sandy soil conditions. Rotary doesn't feel it can bear this expense. Besides asking the city to supply water the club is seeking to have the Civic Properties Commission run the stadium. And Mr. Loder said today CPC manager Bill Woycik appeared in favor of this. But council's decision on supplying water is the one which will mean ''stop" or "go" to the . project this year. If council doesn't move to have the commission run the stadium another arrangement would likely be made on that point. Offers of material and equipment for the stadium would put its value at about $20,000 this year. And Mr. Loder said other organizations would be expected to pitch in in future years to improve the stadium. Giscome scored three goals in overtime last night to defeat Rockets 0-4 and take a 2-1 lead in the best-of-five Commercial Hockey League final. ���* * � Gerry Melnyk scored early in the overtime period to give Detroit a 2-1 victory over Toronto and 'tie their Stanley Cup semi-final at 2-2. Montreal blanked Chicago 4-0 to lead that series, 3-0. * * * Bantam Division of the Minor Hockey Association decided their champion last night but the 'B' league of the Peewee Division are still trying. Now Hear This... Bootleggers in the north country 'round Burns Lake, Wisteria and (area, says Omineca MLA Cyril Shelford, are letting the cream of the liquor business. He wants grocery stores in small isolated places to bo allowed to oblige people, lcgal-like, with control board stock. Partition off a small room and stock it with liquor to scotch 'em, Cyril advocates. Locks and partitions would have to bo good to hold such a cafihe . . . City Hall stiffer Mrs. Kay Jones begged off Kvhen challenged by Mrs. Billie Boyt to model in the Canadian Legion Women's Auxiliary fashion show April 6. But she agreed to model shoes and hosiery. Which may be the crowning blow to Betty Grable's claim to the world's most beautiful legs . . . With steelhead being caught these days in northern streams, our sympathy goes out to that king of the anglers, Chuck Ewart, who is reported kicking at the walls of a hospital ward . . . Should be interesting to watch the scramble in May when Shrin-ers arrive. Estimates place the total guest list at between 2,000 and 3,500. Which leaves a heck of a large leeway for a city this size . . . Local store which sells goldfish is honest about their chances. Sign beside counter warns that due to lousy condition of PG water the management won't guarantee fish to live. Which is about the same as for humans . , .