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Oshawa One reason you can't take it with you, is that it. generally goes before you do. Aldermen Given $300 Pay --6« She Oshawa Time , Boost -- Page 13 WEATHER REPORT Mostly cloudy tonight and Wed- nesday, with a few showers or thundershowers, a little warmer. VOL. 92--NO. 107 OSHAWA, ONTARIO, TUESDAY, MAY 7, 1963 Authorized as Second Ottawa and for. payment Class Mail A naan. en cok é CHILDREN PICKET SCHOOL Negro children carry picket signs outside the predominant- ly white Cleveland school in Englewood, N.J., yesterday protesting alleged de facto se- gregation in the municipal- ity's school system. They planned to repeat yesterday's action where children bypass- ed the school principal and sat unregistered in sixth grade classes. --AP Wirephoto 'Bank Loan Rate Cut To Assist Expansion OTTAWA (CP)--In a move heralding easier credit, the Bank of Canada Monday cut its lending rate to 3/4 per cent from four. It was the fourth reduction of the bank rate since it was Pegged at six per cent last June as part of the former govern- ment's austerity program. The rate, the country's lead- wimg indicator of the cost of it yenerally, now is at its point since May of last Governor Louis Rasmin- said in announcing * Monday night that it was "to continue to en- cy Loned omic expansion." 300,000 in that month. thelwere in a sharp decline that became critical in June, touch- ge credit conditions that]! *jilitate sound domestic eco-| Pank rate was fixed at six per 'eent as part of an effort to en- He also noted that in the last six months there has been an improvement in Canada's cur- rent balance. of international payments and that the foreign exchange reserves position had "developed in a_ satisfactory way." RESERVES JUMP Last week it was announced that the foreign exchange re- Serves reached a record $2,671,- 400,000 in April, a jump of $71,- A year ago these reserves ng off the austerity drive. The Cleanup Proceeds In Flooded Areas YELLOW KNIFE, N.W.T. (OP)--Cleanup operations pro- ceeded today in two northern communities in the wake of ma- jor floods and a third settlement red for what was expected be one of the worst inunda- tions in its history. Water and ice have retreated 'rom the island settlement of Tay River at the mouth of the fay on the south shore of Great Slave Lake, 500 miles north of Simpson, N.W.T., built on an island at the con- fluence of the Mackenzie and Liard Rivers, 130 miles north- west of here and 625 from Ed-| monton, the threat of flooding) eased, though about one-third of} the settlement remained under| water Monday night.' | .More than 400 miles down- river from Fort Simpson, air| patrols of the northern affairs) department kept watch on the, level of the Mackenzie at Akla-| vik, a settlement of about 550 persons, mostly natives. CHECK AT INUVIK Meanwhile, a check was started of accommodations at Thuvik, N.W.T., a centre built by the federal government for its people because of the annual) spring flood problems at Akla-| vik, which lies on a vast delta! at the mouth of the Mackenzie,| about 1,600 miles northwest of} Edmonton | | | ae The first group of 49 women blocked by broken homes, side-| walks and debris, Officials said decontamination of the island will take about three weeks. Till then children would be allowed in the main section of town only to attend school at the St. Paul Separate School, scheduled to re-open next week. At Fort Simpson, S. W. Han- cock, town administrator, said while clean-up operations had Started, re-entry into the town would not start until all flood threats had vanished. Bob Styra, a river expert, kept a watch on the river Mon- day. He reported a buildup of water continued upstream. Mr.' Hancock said about 75 men had started work on tent courage an increased inflow of foreign capital which had been drying up. Prior to being pegged, the bank rate was a: floating one which varied with.the demands of the money market. It was set at .25 per cent above the interest rate paid on the weekly sale of treasury bills. The week before pegging, this floating rate was 5.17 percent. The fixed rate of six per cent was dropped to 5% per cent in September, five per cent in Oc- tober and four per cent in No- vember. A good rise in foreign exchange reserves preceded each reduction, The period of the old floating rate began Nov. 1, 1956. It held around the three-per-cent mark until 1959. In January of that year the rate was 3.25 but by August it had streaked to 6.16, a record high. After that it rose and fell in the three-to-five range. Actually, the bank rate has little direct use. It. applies as a minimum charge on the in- frequent loans' made by the Bank of Canada to the char- tered banks. But it is an im- portant barometer of money- market conditions. YOU'LL FIND INSIDE... GM April Sales All-Time High ... Scrolls Presented To 3 Officers City Names Industrial Commissioner ... . Page 13 City Still Seeks Operations Director Page 13 130 Vehicles Visit +» Page 13 platforms near an airport on the mainland, 12 miles from the town. Safety Lane Page 13 Hes | 4 MOSCOW (Reuters)--British businessman Greville Wynne and Russian scientific o fficial Oleg Penkovsky today con- fessed to spying against Russia for the United States and Brit- ain. : Both Wynne, 44, and Penkov- sky, 43, pleaded guilty to all charges against them as their double trial--the first major spy trial in Russia since the Gary Powers case--opened in the So- viet Supreme Court. Asked if he pleaded guilty, Wynne answered: "I do with certain reservations which I will make in my statement." Penkovsky, who had acted as a liaison officer between Rus- sian industry and Western busi- nessmen, admitted that he had given Wynne information about Soviet rockets for the U.S. and British intelligence services. Wynne's wife, Sheila, was sit- ting only 20 yards away as her husband, looking pale and nerv- ous, pleaded guilty to the ] Dead, 25 Hurt As TCA Plane Suffers Jolt EDMONTON (CP) -- An el- derly man died and 25 other passengers were injured when a Trans-Canada Air Lines plane was rocked by violent air cur- rents high above the Rocky Mountains on a flight from Van- couver to Ottawa Monday. A TCA spokesman said Mon- day night four of the passengers remained in hospital, none of them seriously injured. Others were released after examina- tion or treatment. A passenger said the plane dropped sharply, perhaps about 800 feet, and another said he was lifted from his seat while trying to fasten his seat belt. L. M. Schmidt, 77, of Cud- worth,' Sask., a retired store- keeper returning from a_ visit with his sister in Woodburn, Oregon, was dead on arrival at hospital in Edmonton. A TCA spokesman said an autopsy was performed Monday hight to determine cause of death and results would be known today. | In hospital were Stanton Mooney, TCA district sales manager from Victoria, Lee Davis of San Jose, Calif., Mrs. Marion Klemmer of Rosetown, Sask., and Mrs. Walter Wood lof Biggar, Sask. Canadian Living Costs Hit New Peak April 1 OTTAWA (CP)--Canadian liv- ing costs, rising in March un- der the pressure of higher prices for clothing and medical care, hit a new peak April 1. fon 1949 levels equalling 100, is computed from a survey of firms employing more than 15 persons in a wide range of in- jdustries. It represents an aver- and children was to return to| The bureau of statistics saidjage of total wages paid. Hay River today from Yellow-|today that the consumer price| The clothing index rose one- knife. A task force of 180 men| Monday began to rebuild aj) eauseway linking the island and} the mainland and it was to be! finished today. The causeway was lost in the flood, which in- flicted more' than $1,600,000 damage, about two-thirds of the property value of the settlement 'of 1,800. Hay River's main Mackenzie Driver -- was typical of the desolation in the down- town area, declared a contami- nated area Saturday. Silt cov- ered the street and it was street--) index rose two-tenths of a point in the month to 132.3 at April 1, compared with 132.1 at March 1. The index--a prices yardstick based on 1949 levels equalling 100--was 1.5 per. cent or' two points above the April 1, 1962, index of 130.3. In 'the month, increases in the clothing and health and personal care indexes outweighed de- bacco and alcohol indexes. The unchanged. WAGES GO HIGHER The index increase followed a rise in salaries and wages in February. The index of average industrial for March 1--latest date avail- able--was 192.7, compared with a year earlier. The wages index, also based tenth of a point to 115.7 at April 1 from 115.6 a monthe arlier. Higher prices for men's, and children's wear _ outweighed \lower prices for footwear and ipiece goods, with the prices of women's wear remaining un- changed. The _Alth and personal care index advanced sharply, rising \2.2. points to 162.1 from 159.9. jand optical care as well as medical care. The personal care Leste of the index was up only slightly: MEAT PRICES LOWER | The food index was unchanged especially month - being below levels. Other pork, earlier few items, including powdered skim milk, bananas, grapefruit, cabbage, tomatoes and celery. These declines were offset by higher prices for oranges, or- ange juice, apples, shortening, than bread, sugar, jam, soft drinks and chocolate bars. hold. operation costs holding steady, the housing index was unchanged at 136, In. household operation, lower prices for ap- pliances, electricity and domes- tic gas balanced higher prices for furniture, floor. coverings jand household supplies. The trasportation index de- clined to 139.2 from 139.6, re- flecting lower prices for new lcreases in the transportation,|The increase was caused by|Passenger cars. Laberge eet recreation and reading and to-\higher fees for doctors, dentists\Were UP 1.3 per cent, the firs break in price declines since food and housing indexes were/higher premiums for prepaid|June,- 1962. An increase of two) {cents a gallon in gasoline taxes jin Quebec was a major factor. | The recreation and reading in- dex dropped to 148 from 148.6, due mainly to lower prices for television sets and radios. How- wages and salaries|at 128.9, with most meat prices,;ever, the tobacco and alcohol jindex eased to 117.9 'from 118 jas liquor prices were 'adjusted 190.7 a month earlier and 186.7|price declines were limited to a}\downward to erflect the federal |government's removal of tariff surcharges. With both shelter and house-| charge of espionage against him. Both men face possible death penalties for spying. The charge said Penkovsky began spying in April,'1961, dur- ing official visits to London and Paris and that Wynne, a fre- quent visitor to Communist countries, helped establish his connection with the U.S. and British intelligence networks. It said he delivered cameras, films and espionage instructions to Penkovsky during his trips to Moscow and that Penkovsky U.S. Launching More Needles For Space CAMBRIDGE, Mass. (AP)-- The controversial "needles in the sky" experiment' whereby millions of tiny copper wires are orbited around the earth will be revived by the U.S. Air Force in the near future. Lincoln Laboratory of the Massachusetts Institute of Technology said Monday it;will again conduct the tést ch was first attempted in October, 1961. The band of orbiting wires was supposed to provide a jam- proof method of global radio communication. That experiment failed when the mechanism that was to re- lease the tiny copper dipoles failed to function. Instead of scattering they remained in a mass. At that time various scientists protested against the test. repeatedly met American and British agents at secret rende- vous to give them top-secret economic, political and military information. Wynne was arrested last fall in Budapest during a business trip and turned over to the Rus- sians by Hungary. Penkovsky was picked up a few months later and linked by Russian papers to officials in the United States Embassy in Moscow. Among the Western spies he met, the charge said, were Wynne and men named "Chis- holm" and "Carlson." (Rodney W Carlson, former assistant agricultural attache at the U.S. Embassy, left Russia voluntarily last Dec. 14 after charges that he was connected with Penkovsky were published in the Russian press and denied by U.S. officials. (A Roderick Chisholm was second secretary and head of the visa department at the Brit- ish Embassy from May, 1960, to August, 1962.) CLAIM 'DEGRADATION' The charge saia Penkovsky, a grey-haired man who was deputy head of the foreign de- partment of the state commit- tee for scientific research and co-ordination, became an agent of the imperialist intelligence Service as a result of "moral degradation." Russian newspapers had al- ready accused him of being a "twist-lover and seducer." The charge said Chisholm's wife, Janet-Ann, was a member ofBritish intelligence and main- tained espionage contacts with| $200 Penkovsky through Wynne when the latter came to Mos- cow. OTTAWA (CP)--Prime Min- jister Pearson presides today at 'a meeting of his full cabinet, jfacing important domestic and international . decisions. Key among them, to be con- sidered today and more likely to be decided in later cabinet sessions, is the role Canada should play in any multinational nuclear force. The top domestic problem pressing at the moment is fed- eral relief aid for the flood- stricken northern communities of Hay River and Fort Simpson, N.W.T., where residents had to be evacuated during the. emer- gency that arose while Mr. Pearson was in London last week, On the international scene, Mr. Pearson is expected to re- port to his ministers on his con- ferences with Prime Minister Maomillan and to discuss his forthcoming visit to Hyannis Port, Mass., to talk with Pres- ident Kennedy. No firm decision on the nu- clear club question is likely to be made until after the' Hyannis Port talks. However, Mr, Pear- json said Sunday on his return |from London that the role Can- jada should play would have to be decided before the question comes up in the NATO minis- terial council meeting opening here May 22. two sets of his ministers on his Rocket Blasts Off With 2nd Telstar off today in an effort to send a second Telstar satellite into or- bit as-another step toward a world-wide space communica- tions system. The slender 90-foot. rocket blazed skyward at 7:38 a.m. II cradled in its nose. The satel- lite was aimed at a wide looping orbit ranging from 575 to 6,559 miles above the earth. Mr. Pearson Monday briefed! CAPE CANAVERAL (AP)--A| three-stage delta rocket blasted Cabinet Facing Nuclear Problem London conversations. He pre- sided at cabinet committees on defence and on trade, econom- ics and employment, No an- nouncements were made, as is usual after cabinet committee meetings. Detailed plans were being worked out, meanwhile, for Mr. Pearson's trip to Hyannis Port Friday. He met Monday with United States Ambassador Wal- Ritchie, to Washington, who came here to. help. \ Haitian Chief Said Ready To Ease Rift PORT AU PRINCE, Haiti (AP)--Despite unconfirmed re- ports of Haitian troops moving toward the Dominican Repub- lic's border, President Francois Duvalier was reported ready to- day to remove a chief source of tension threatening war with the Dominican Republic. Haitian Foreign Minister Haiti. will be released "'little by lit- le" after a routine investiga- tion of their backgrounds. forts to head off a threatened May 15 revolt. Haitian troops bassy in an attempt to get at 22 there, and President Juan Bosch of the Dominican Repub- 1). s |lic dispatched ships, planes and EDT with the 175-pound Telstar|thousands of troops to the bor- der 30 miles northeast of Port au Prince. He threatened to or- |der an invasion unless the refu- PULITZER PRIZE The late William Faulkner won the 1963 Pulitzer Prize for fiction for his novel '"The Reivers". He died last July in Oxford, Miss. --AP Wirephoto Two Arrested At Gunpoint In Ajax AJAX --Two King- stom men were charged with armed robbery wae, earn Nor Archie Cameron, 29, and James Berkinshaw, 40, were ar- rested at gunpoint by Pickering Township and provincial police at a road block near Ajax, 15 miles east of Toronto. Police said two men held up the sub post office about 9:15 a.m. and got away with about Cameron and Berkinshaw were arrested about two hours jlater after a high-speed chase along Highway 401: The chase began when a"po- liceman in the eastern section of North York Township saw a car answering a descriptionof the car used by the holdup men, ton Butterworth and C. S. A.) pews Canadian ambassador) | Rene Chalmers said his govern-| j }ment will permit all opponents of Duvalier who took asylum in foreign embassies here to leave// Chalmers said the refugees] » More than 100 persons took| refuge in nine Embassies, fear-) ing reprisals in Duvalier's ef- invaded the Dominican Em-|® Cobourg Approval For Cocktail Bars COBOURG, Ont. (CP)--Din- ing lounges and cocktail bars were appoved in a. plebiscite held Monday in this otwn 32 miles east of Oshawa. More than 50 per cent of the town's Wer IGHAM, Ala. (AP)-- Birmingham's jails are jammed with Negroes almost to the bursting point today, and lead- ers of a massive desegregation drive pledged more demonstra- tions. "We will definitely have more demonstrations starting about noon," said Martin Luther King Jr., president of the Southern Christian Leadership Confer- ence. s King's comment followed the arrest Monday of a police-esti- mated 1,000 marchers, including Negro comedian Dick Gregory. The vast majority of those ar-' rested for parading without .a permit were school children or other teen-agers. Many skipped classes to join in the campaign. King said the goals of the de- segregation drive are: 1. A fair policy for hiring Ne- groes for jobs. 2. Desegregation of all down- town public facilities, including lunch counters, restrooms and water fountains. 3. Establishment of a bi-racial committee to study broad steps toward desegregation, including the public schools. 4. Dropping of all charges pease el all Negroes arrested for pi , parading and other demonstrations. were denied on grounds it would cause a disturbance. More than 2,400 now have been arrested since demonstra- tions started Thursday. An additional 200-plus, includ- ing King, were arrested in ear- lier phases of the. integration drive which began April 3. Po- lice officials said at least 2,000 declined to post bond and re- mained in the crowded jails and detention quarters. -""When the sun goes down to- day, there'll be so many Ne- groes. in jail that the people of Birmingham will hate to see a Negro," said another Negro leader, Rev. James Bevel of Cleveland, Miss. "We could have had 2,500 ar- rested yesterday, but we got tired." Gregory arrived by plane to join the demonstrators and within three hours was arrested at the head of the first group of marchers. LEADS A CROWD The entertainer led the crowd of teen-agers almost a block eligible voters turned out. from a Negro church before cy caceas eaders have sought permits to parade. They TWENTY-TWO PAGES NEGROES FILLING JAIL PLEDGE MOR Spying Against Reds Admitted By Two Men Most Arrested e Children they were halted by police of- ficers, : An official asked Gregory # he had a parade permit. ' He answered no and the of ficer told him to turn arourtil.-: "No, we'll stay here," Gre gory said. The officer said such acti violated city law and also a state court injunction. The of- ficer turned and said: "Dick Gregory says they not disperse. Call the wagon. Rev, Wyatt Tee Walker, oné of King's top lieutenants, was asked whether there were ang plans to post bond for Gre: "No, not at this time," W: answered. 'When I talked with him, he said he planned to re main in jail for the duration."'* NegroChildren Spend Night At Fairground BIRMINGHAM, Ala. (AP)-- Hundreds of Negro children-and teen-agers, some of them crying to go home, spent the night in improvised quarters at a state building. % nstrations the last five days have pushed total arrests to about 2,500. Hauled to city jail in school buses, teen-aged Negro boys and girls had to wait for hours in a fenced enclosure while of- ficers processed them, Some got soaked by rain before they were shuttled into a hallway. "We got them in as quickly as possible when it began rain. ing," said an officer. New mat tresses were purchased, he said, in order to provide for the pris- oner overflow. 500-600 juveniles were processed through juvenile court and officials worked until after midnight. Sandwiches and milk were given the children as they waited for processing. Then they were again loaded in buses and taken to the ad- ministration building of the state fairgrounds, There, mat tresses laid on the concrete floor served as beds. A group of 316 Negro girls, arrested Thursday, were lick- ier, They had bunks; But- some cried, matrons reported, hee cause they wanted to go home after five days confinement, Pair of Dominican Army machine gunners are loaded down with their equipment as they move into their quarters gees were released. at Fortaleza El Rodeo @ short LOADED FOR. WAR distance from the southern border town of Jimani, They are anong the more than 1,000 Dominican soldiers who were moved up into this area Sun- day. Buildup continued Mons day in' the central part of the island along the 241-mile-long frontier between Haiti and the Dominican Republic. --AP Wi