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THURSDAY, JULY 15, 1948 THE DAILY TIMES-GAZETTE PAGE THIRTEEN All Rail Services At Normal As Strike Settlement Reached Elmbargoes Lifted, Resume Schedule; CPR AsksRateRise By George Ronald Canadian Press Staff Writer Ottawa, July 15 (CP)--Trains whistled and telegraph keys clicked as usual today. There was no railway strike. Labor Minister Mitchell yesterday announced settlement of the union-management wage dispute, less than 15 hours before the strike deadline. It was to have started at 6 a.m. (local time) today. The railway unions, whose ori- ginal demand was for a 35-cents- an-hour increase, settled for 17 cents, retroactive to March 1. It will go to 122,000 members of 18 international unions, 28,000 mem- & > bers of the Canadian Brotherhood of Railway Employees and 20,000 non-union workers. N. R. Crump, Vice-President of Canadian Pacific Railway, said in a statement the C.P.R. should get a freight-rate boost to cover the $27,200,000 which the wage award adds to the C.P.R, annual operating costs. It is estimated a 15-per-cent increase would be needed, he said. Officials of Canadian National Railways made no comment on the freight-rate question, Bound to Boost Prices The award was bound to boost prices, Mr. Crump said. That would mean increases in railway operating costs. "I believe that the Canadian Pacific, having assumed the respon- sibility of taking the only course that could avoid a general railway strike, should receive an interim increase in freight rates pending a final determination of the merits of the case by the Board of Transport Commissioners," he said. Mr, Mitchell's announcement--at 3:10 p.m. EDT--was made to news- paper men waiting on the sun- splashed lawn of Parliament Hill. Emerging from the last of a five- day series of unoin-company-gov- ernment conferences, he said: "It's all right--there will be no strike." At 1:31 pm. The Canadian Press had reported that a 17-cent settle- ment had been reached, provided agreement could be obtained on the date the increase would come into effect. The March 1 date was de- cided at an afternoon Cabinet meet- ing. All Embargoes Revoked Without delay the companies re- voked embargoes on freight ship- ments, announced train schedules would not be cancelled, said there would be no interruption of service at the 17 big railway hotels. The unions flashed code words to their locals across the country, con- firming that the strike was called off, The settlement ended a long dis- pute which started last December and came to a boil here late last week. Mr. Mitchell summoned union and company representatives to Ot- tawa last Thursday after direct negotiations broke down in Mont- real, The award means a $76,500,000 addition to the railways' annual payroll: each cent of the increase is calculated to total $4,500,000. In an unusual move, Prime Minis- ter Mackenzie King called a press conference at which he outlined the government's feelings about the settlement. He said happily it was "tremendous relief and joy" to have the dispute ended. "I doubt if the public will ever know what it has been saved," he added. Freight Rate Not Discussed The freight-rate question had not been discussed by the government during the negotiations here, he said. The Cabinet had made "no commitments, direct or indirect." Although the 17-cent hike is less than half what the unions first de- manded, their leaders were obvious- ly pleased. "Don't forget," said Frank H. Hall, chairman of the negotiating committee of the International unions, "this is the biggest Cana- dian railway wage increase since 1920." Biggest company offer before the Government stepped into the dis- pute was 10 cents. Prior to that, conciliation boards headed by Mr. Justice J. C. A. Cameron of the Ex- chequer Court had presented major- ity reports recommending a seven- cent boost. Minority reports -- by union - nominated conciliators urged a 20-cent increase. Company and union officials who commented publicly on the settle- ment said a big factor in the dis- cussions was the knowledge that a strike would seriously affect the na- tional economy, Mr, Crump said that the strike threat was so ominous that the CPR. "had no alternative but to accept the 17-gent settlement." John Bracken, Progressive Con- servative leader, said the strike would have been "a disaster which would have produced more human misery and loss than Canada has ever experienced at any time in the past." Visiting Minister Robbed of $400 Toronto, July 15 --(CP)--Rev. William R. MacDonald of Prince Edward Island, 37, was assaulted and robbed of $400 early Wednes- day while walking through Queen's Park here, police said. Mr, MacDonald told police he was accosted by, a man who grabbed him and punched him several times, knocking him to the ground. His assailant then removed a wal- let containing $400 while Mr. Mac- Donald lay unconscious. 'Muskoka Barn Disappears After Storm Gravenhurst, July 15--(CP)-- John Kress, a Muskoka farmer has lost his barn. He got up Tuecday and look- ed out his window and the barn was gone. Horses were roaming the farm. And his big pine tree was missing too. He found the tree, stripped of branches, 30 feet from where it should have been. It had been uprooted and whisked away by a freak storm which hit some parts o fthe Northern Ontario vacation area, during the night. He hasn't found the barn yet but pieces of it are littered about his fields. EGYPIAN PHYSICIANS The ancient Egyptians are said to have performed amputations and various operations on the eye. 30 Forest Fires In North Ontario Blind River, Ont. July 15--(CP) --Ontario Air Service planes, car- rying fresh crews of firefighters deep into the northern bushland, Wednesday were guided by pof= table radio transmitters set up at Shoepack and Rawhide lakes. x The Rawhide lake fire, some 60 miles north of here, now covers 1,000 acres and is the largest of the 30 in the district. More than 200 men are fighting the flames which are fanned by high strong winds. District Forester Arthur W. Leman predicted the outbreak would be brought under control by daybreak. - New smudge fires broke out in the Mississagi area and eight more blazes were reported at Peshu and Seabrooke Lakes, west of the Chapleau fire. While most of the fires are small, lands officials said they feared further cutbreaks. Temperas ture si in the 90s and lack of rain has increased the hazard. 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