The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

OTTAWA Foreign Spending Growing Problem She Oshawa Times Published by Canadian Newspapers Limited 86 King St. E., Oshawa, Ontario T. L. Wilson, Publisher WEDNESDAY, DECEMBER 15, 1965 -- PAGE 4 More Stringent Action Need To Enforce Safety ? The tragic toll of deaths in this month's "Safe Driving" campaign could well leave the Canadian High- way Safety Council with a dejected "what's-the-use" attitude. Statisti- cians counted 76 dead in accidents during the "safe-driving week". It was a particularly black week in Ontario with 34 killed in traffic ac- cidents. In hard-hitting comment, The Sudbury Star lists poor traffic en- forcement, lenient traffic laws and reticient of courts to "throw the book" at violators as some of the reasons for the poor record. The administration of the traffic laws in Ontario, and their enforce- ment can hardly be lauded as a de- terrent. The traffic accident figures prove otherwise. And it is no ex- cuse to plead that the increase in the number of motor vehicles is the reason. To hide behind this excuse is also to admit an increased num- ber of flawless drivers, because it is proper to say there would be few accidents if drivers observed the law. Authorities. charged with the drafting, enforcement and admin- istration of traffic laws can take off the blinkers and come to grips with the real problem--the con- tempt of the driver for the law. The driver who shows contempt for. traffic laws knows that the odds against him getting caught are all in his favor. The drinking driver is well aware that no policemen are going to be watching outside beverage rooms and cocktail bars at closing hours to check his con- dition. The careless and dangerous driver knows that highway police patrol is spread out so thin that that only the "bad luck" of an acci- dent is likely to bring him to police notice. In cities and towns, as well as on the open highways, the law- less driver knows it is a game of "catch me if you can" before. he can-be charged under the "sum- mons-on-the-spot" law. The invita- tion to death, injury and damage is written into this "escape" law in Ontario's traffic law books. Police chiefs and traffic policemen have found only a deaf ear at Queen's Park in their appeals for repeal of this law. : It seems a sad commentary that the common sense approach that carelessness and indifference on the roads can cause loss of life and in- jury is not sufficient deterrent. With the evidence so strongly to the contrary, the advocacy of more stringent action by lawmakers and enforcement officers carries much weight. News And Its Meaning A newspaperman's newspaper- man has outlined anew the course it is necessary for daily newspapers to follow if they are to serve suc- cessfully. Speaking at the conference of the Commonwealth Press Union in Trinidad, Gillis Purcell, general manager of The Canadian Press, said the newspaper that carries out its prime job of giving people all the news, "without neglecting to give its meaning and human inter- est," will continue to enjoy success. As the working chief of the co- operative newsgathering agency operated for and by Canadian news- The Oshawa Cimes T. L. WILSON, Publisher R. C. ROOKE, Genero! Moneger C. J. MeCONECHY Editor The Oshawa Times sar ogg. | The Oshawa Times (esteblished 1871) and the Ihitby Gazette and Chronicle estoblished 1863) is published daily Sundays ond Stetutory holidays excepted). Members of Coenadian Daily Newspaper Publish- am. Association, The Conodion Press, Audit Bureau Of Circulation end "the Ontario Provincial - Deities Association. The Caonadion Press is exciisively entitied to the use of republication of ali news despatched in the paper credited to it or to The Associated Press or Reuters, and also the local mews published therein. All rights of special des Betches cre also reserved. Uffices; Thomson Buliding, 425 Universit Avenue, Toronto, Ontario; 640 Cathcart Str Montreal. P.Q. SUBSCRIPTION RATES Delivered by carriers in Oshawo, Whitby, Ajox, Pickering, Bowmanville, Brooklin, Port Perry, Prince Albert, Maple Grove, Hampton, Frenchman's Boy, djverpoo!, Taunton, Tyrone Dunbarton, Enniskilien, Orono, Leskard, Brougham, Burketon, Claremont, Manchester. Pontypool, and Newcastle not over SOc, per week. By mail in Province of Ontario cutside carrier delivery crea, $15.00 per yeor, provinces and Commonwealth Countries, 18.00 per yeor. U.S.A. and foreign $27.00 per year. papers, Mr. Purcell has long played a key role in assuring the material is available for member papers to fulfil their vital function. In these days when we are prone to lament the outside influences on our af- fairs we tend to overlook the impor- tance of The Canadian Press. Oper- ating with quiet efficiency it pro- vides a daily budget of news for Canadians. Reliability has always been one of the keystones of its national coverage. Currently it has been extending its scope more and more into the field of international news, In keeping with Mr. Purcell's con- cern for giving news meaning and background, Canadian reporters employed by The Canadian Press have been writing eyewitness back- ground accounts from the merging nations of Africa, from South America, from Russia, The articles from Africa particularly have pro- vided most timely interpretations of the complexities of developments in that still largely unknown con- tinent. What newspapers do with the re- ports provided. by The Canadian Préss is of course their own. busi- ness. Those taking advantage of the comprehensive coverage of the competent and conscientious staff- ars of CP have wide opportunity to succeed in "giving all the national and international news and_ its meaning", Pea ie OEE TARA TEP SM TTA FEDERAL - PROVINCIAL TALKS... By PATRICK NICHOLSON OTTAWA--During 1964, a rec- ord total of $1,370,000,000 was invested in new plants and equipment in Canada by com- panies controlled in the United States. The government is rubbing its hands for joy at that figure. It represents many well-paid ' jobs for Canadians in the build- ing and machinery industries, and the new plants will offer continuing employment for more Canadian workers. But one former member of the Liberal governmept is not rubbing his hands, Forgotten in the obscurity of his self-imposed retirement to the back benches, former finance minister Walter Gordon is anything but joyful as he contemplates those fig- ures. In fact he is shedding genuine tears for Canada. For Walter Gordon it was, alone among the Liberal cabi- net, who urged that Canadians should buy Canadian industry back from its U.S. owners. He instituted financial policies to encourage this, And look how he got clobbered by his Liberal colleagues, by other politicians and above all by the business community and the press of Canada. Yet Walter Gordon--heaven bless his memory--was right It was his chosen methods which were wrong. HAS STRANGLEHOLD Walter Gordon's former col- league, and probable successor as minister of finance, Trade Minister Mitchell Sharp, ad- mits that Gordon was right. In the Canada Handbook for 1965-66, just published. under the auspices of Mr. Sharp, there is a short section deploring Can- ada's consistently adverse bal- ance of international financial payments. This is caused by Canadians spending more on goods and services bought from other countries than we sell to those countries. We have paid for that continuing national ex- travagance, not in cash, but by selling off a part of the old homestead each-year. In the last 15 years, foreign investment in Canada has in- c sed by over $15,000,000,000. "That is about $1,000 for every man, woman and child in Can- ada," says the Canada Hand- book, which goes on to warn ominously that Canadians have to pay dividends on that foreign investment. Last year the net income of U.S.-controlled com- anies in Canada rose to a rece 'ord figure of $1,240,000,000, "Some of the effects of the massive imports of non-resident capital have yet to be fully felt," threatens the handbook. What that means is tha' Can- ada would be economically crip- pled if we had to pay out those dividends. Much of it now is being reinvested in Canada, so that it in turn will earn divi- dends next and every subse- quent year. Thus the evil day is merely being postponed; but with each postponement, the pain is being aggravated. SPAWNS WEALTH The great mistake Canada has made is in allowing foreign cap- ital to come into Canada in the form of equity capital, rather than in the form of bonds. The latter is a fixed debt, which can. be paid off; but the former is a permanent shackle which cannot be paid off--it can be bought out only at the option of, and at a price fixed by, its owner. Furthermore, equity capital spawns its own growth year by year. Thus of the expansion by $1,370,000,000 in U.S. investment in plants in Canada last year, only $126,000,000 or less than one tenth, represented new cap- ital imported from the U.S, The balance was retained profits and depreciation allowance, plus about one-third of the total which was borrowed from Ca- nadian banks and other Cana- dian lenders. Thus U.S. come panies are wisely doing in Can- ada exactly what Canada should all along have been do- ing in the U.S. -- borrowing money rather than. permitting permanent equity investment. Walter Gordon set a modest target that Canadians should try to buy back one-quarter of the equity capital of each U.S. company in Caneda. Not much, but it would have been a start. Else -- whither Canada? "Wither" is, I fear, the oper- ative word. Ranks Of Jobless Shrink While labor Unrest Rises By BEN WARD OTTAWA (CP)--Declining un- employment and mounting un- ion unrest dominated the Cana- dian labor scene in 1965, Both situations are likely to spill over into 1966 with possibly dra- matic results. The buoyant economy pro- duced record employment lev- els and shrank jobless ranks to an eight-year low. Skilled work- ers were in heavy demand in every region and acute labor shortages developed in key in- dustrial cities. But coupled pith this was a notable rise in union militancy, sparking some of the highest wage demands in more than a decade. Most of them were met, but not without a sharp increase in strike activity In the first. nine 1965 the time lost through---strikes and. ..lockouts totalled 1,967,970 man days. This compared with 904,790 man days in the same period of 1964, Where only two years: ago wage gains of 10 and 15 cents an hour were the rule, many new union contracts in 1965 were in the 50-cent bracket. A wave of construction industry strikes early in the year pro- duced gains of up to $1 an hour spread over two or three years. Early in November the major railways were presented with hefty demands by their 100,000 non-operating employees. They months of to industry ranged from 55 cents to $1.32 hourly. In their last round of bafgain- ing in 1963 the non-ops settled for 21 cents, bringing their average hourly earnings to $2.21. This time railway union leaders have said a much larger settlement will be required to avert strike action. A crisis will develop in the railway dispute in three or four months when the whole prob- lem will undoubtedly be tossed to the federal cabinet. The big question is whether it can be resolved without a_ crippling strike. In many cases the militant attitude of labor has swelled up from the rank and file. Union leaders have been forced to adopt tougher attitudes at the Baiganin?. table to put down discord. Wildcat strikes in sev- eral key industries were symp- toms of this trend. The new federal labor code was approved by Parliament in the spring and became law July 1, setting a minimum wage of $1.25 hourly and a 40-hour work week with a limit of eight hours on overtime SOUGHT DEFERMENT Most of the federally-con trolled industries covered by the new code applied for exemp- tions, however, and thereby gained automatic deferment un- til their applications are dealt with. . OLD DAYS GONE FOREVER Period Of Retrenchment In Prospeci By MICHAEL GILLAN OTTAWA (CP) -- Federal- provincial conferences are un- likely to return to the old days when Ottawa told the premiers what they were getting and that was that. The era of co-opera- tive federalism has progressed too far to turn the clock back. But as government leaders prepare for a multi-billion-dol- lar poker game sometime next year, there are indications that a period of retrenchment might be in the offing. In his plea for a majority government in the recent elec- tion campaign, one reason given by Prime Minister Pearson was a need for a strong position from which to bargain with the provinces. Trade Minister Sharp spelled this out in a campaign. speech when he. said the Liberal gov- ernment would have to face in negotiations. provinces repre- sented by majority govern- ments "T don't want to see the fed- eral government at a disadvan- tage."" he said. "We also want on.' t respond m surcien é bo this' piea; and the government was re turned with 131 seats--thres shy of a working majority. « The Liberals perhaps can take some consolation in recent statements by three provincial premiers--John Robarts of On- tario, Ross Thatcher of Sas- holding the country together, the provincial their responsibilities for paying and other costs. The Pearson government mounting education sponsible for progress and for- ward national cies. "Once we permit provinces to develop empires we are going economic poli- "to help the katchewan and Duff Roblin of Manitoba--which may he inter- preted as an invitation to the prime minister to be tougher, particularly with Premier Jean Lesage of Quebec. The premiers' alarums at this time are significant because, of the scores of federal-provincial conferences held at the official and political level during the last three years, the heads-of- government session expected mid-way through 1966 is one of the most important t-must-draw-up a new fives year agreement on how the fed- eral and provincial governments will share tax revenues to re- place the existing agreement which expires on March 31, 1967 ' It will also map out. a new system for contracting-out of new shared-cost programs, and work out equalization payments less-wealthy prov- vintes How. the money pot is. shared t how shag all gov+ ernments can do their jobs the federal its task of promoting e/onomie development and & turned over some extra money to the provinces: about two years ago. This and the appoint- ment of a tax structure _com- mittee helped q uieten the clamor for money for the time being. Officials from all govern- ments have been compiling mountains of facts for the com- mittee to hand to the political leaders to use at the bargaining sessions. Some of the policy studies have been completed and others are in preparation, WANT OTTAWA STRONG With so much money at stake the premiers might be expected to unfold their demands now. They-may yet,-but three of the premiers at least are talking a different line They are talking about strong central government, a unified government and strong national policies--all concepts requiring spending on the part of the federal governme ont potential strong unified central govern- ment which will be directly re dangers if there is no to be in trouble nationally." He named no names. But Mr. Lesage apparently thought the finger was being pointed in his direction because he responded quickly, criticizing the Ontario leader's views as be ing "too far towards centralism.' The Quebec premier said he favors a strong federal govern- ment "provided that it is strong within its own jurisdiction." While Mr. Robarts was call- ing for strong national eco- nomic policies, Mr. Lesage said regional planning by the prove inces is the only possible way to tackle poverty. problems ef- fectively. Mr. Thatcher told'a Montreal audience that if provincial gov- ernments continue to seek more money from Ottawa it will threaten confederation, 'STOP RAIDING' He said all Canadians require minimum living, education, and this can be accomp ished only if Ottawa retains adequate taxing powers, CANADA'S STORY Ships Speeded Rails By BOB BOWMAN Salt water sailors sometimes look down on those who sail on fresh water. It might be won- dered how the captains of Cana- dian Pacific ships felt when they were reminded that their service started on the Great Lakes. Although the yellow funnels and red and white checker board insignia of CP liners and freighters are familiar sights in most harbors of the world, the service was from Owen Sound to the Lakehead. The company was organized on December 15, 1883. TODAY IN HISTORY By THE CANADIAN PRESS Dec. 15, 1965... The United States Bill of Rights, the first 10 amend- ments to the constitution, was adopted 174 years /ago today--in 1791--after being ratified by a majority of states. Intended to increase constitutional guarantees of civil liberty, the 10 amend- ments lay down the right of citizens to bear arms and prohibit establishing any state religion. The most fa- mous amendment is the fifth, disallowing self-incrim- ination, and the most cons troversial the 10th, reserv- ing to the states all power not _ specifically. transferred to the United States govern- ment 1899--The Boers defeated General Buller at the battle of Colenso. 1919--The U.S. Supreme Court upheld prohibition. First World War Fifty years ago today--in 1915--Gen, Sir Douglas Haig succeeded Sir John French as commander of British forces on the Western Front; Italians landed troops at Valona and elsewhere on the Albanian coast. Second World War Twenty-five years ago to- day--in TM0--Sheffield was heavily bombed by the Luft- waffe for the second time in a week; the Italian submar- ine Naiade was announced sunk off Sidi Barrani; HM submarine Truant sank an Italian tanker off the Cala- brian coast; Fit. Lt. J. A. Kent of Winnipeg was awarded the Virtuti Militari, the highest Polish decora- tion YEARS AGO 25 YEAR SAGO December 15, 1940 Col. R. S. McLaughlin laid the foundation stone for the new Sykes Memorial Wing of the Oshawa General Hospital in a ceremony presided' by T. K. Creighton, president of the Board of Trustees. Miss Mary Bourne, Reg. N., joined the staff of Oshawa Gen- eral Hospital as assistant super- intendent and director of nurs- ing. 40 YEARS AGO December_ 15,1925. A students' council was organ- fved at Oshawa High School, pat- terned after the Students' Ad- ministration Council of ,Cana- dian Universities, A.W city relief offi- 4 par Brown for work and re lief, a com- pared with 2,200 for the previous year. The ships were to help speed the building of the railway around Lake Superior, one. of the most difficult sections of the entire transcontinental service. Sir John A. Macdonald was put- ting pressure on the directors of the CPR to get this work done more quickly, otherwise Ontario members of Parliament would be reluctant to grant the railway any more loans. The CPR ordered three ships from Scotland, and had them built in such a way that they could be cut in half when they arrived in Canada. This enabled them to get through the small canals that detoured the rapids on the St. Lawrence River, and the Welland Canal which wasn't nearly as big as it is today. These three ships were the forerunners of the Empress and Duchess liners, and Beaver freighters that became famous throughout the world. OTHER EVENTS ON'DEC, 15: 1858--Halifax to Truro, N.S. railway opened 1871---Liberals under Edward Blake won Ontario elec- tion 1891--Honore Mercier, Premier of Quebec, dismissed ow- ing to campaign fund scandal, Later acquitted of charge 1896---Canadian Northern Rail- way built from Gladstone to Dauphin, Manitoba 1920--Immigrants refused entry to Canada unless having $250 plus $125 for mem- bers of family 1925--Agreement government transportation immigrants with British reduced rates for yogis te itt TNT a Que. To Accentuate 'War' On Crime Syndicates In 66 By CY FOX QUEBEC (CP) -- Quebec's crime - chasers, who focused their 1965 efforts on arson- smashing and came up. with several lime-covered bodies in the process, say they will be out to get "upper echelon' racketeers-in the-coming year. This applies to fraudulent bankruptcy as well as to the arson rackets, the law men say, They estimate that experts in phoney barikruptcies have been bilking the provincial govern- ment and public of millions of dollars. "An all-out war against or- ganized crime" is how one spokesman for the Quebec jus- tice department described that department's efforts. He said the war "will be accentuated in 1966 to the point where all crime syndicates throughout the province will be severely af- fected." The findings of the 1965 crime investigations' have been most sensational--and grisly--in the area of arson. There the Quebec inquiries reached a climax with the Oc- tober announcement that at least seven men had been killed in what Justice Minister Claude Wagner called an underworld attempt to throw a blanket of silence over illicit fire-setting. PARADE BEGINS During the weeks following the announcement, a flock of Quebecers began filing through the courts to face arson charges --the result of a massive fire investigation by the Quebec Fire Commission as. well as by the justice department and the pro- vincial police. Four bodies from among the seven men known dead were found buried in desolate swamps south of Quebec City. Identified despite the corrosive effects of the lime, they were linked by police with arson but not with any cases of bankruptcy fraud. Authorities said, however, that such fraud frequently was found to go hand in hand with arson. And it had connections, too, with crime rings beyond the borders of Quebec Mr. Wagner, with this factor in mind, made a trip to Wash- ington for talks with the United States attorney + general. The Quebec minister organized a provincial -fraud-° and arson- fighting commission which he be a mode! for co- arinaies action by public and private agencies on a national 2. Some observers wondered whether the. government inves- tigators would push their in- quiries to cover powerful king- pins of arson and fraud or whether official. ardor would cool. As 1965 ended--and though Mr. Wagner was still convalesc- ing from a gall bladder opera- tiori--the justice department re- sounded with declarations that the inquiries would be followed up relentlessly wherever they might end. "There will be no pulling of punches in 1966," said one spokesman. "Not a single racketeer will be spared." Catching the small fry was all very well, went the departmen- tal refrain, but they were only stepping stones to the big oper- ators who must be brought down too, -Phoney bankruptcies were said by the Quebec department of revenue to have cost the province $1,500,000 in taxes every year from 1959 to 1965. Honest investors were being victimized too. Racketeers often moved in on shaky companies with prom- ises of financial backing. Once having taken over such firms, they used their good names, plus false bank statements or doctored credit ratings, to buy supplies on credit. -- The supplies ~were sold to other racketeers: The company premises sometimes were in- sured after removal of the sup- plies. The premises then! were put to the torch and the racket's takings multiplied. Finally would come the declaration of bankruptcy. yore ney Canal Plan Disruptive, But Helpful TORONTO -- The wprell-laid plans of mice and men some- times can be disrupted for ev- eryone's good, including that of the mice and men. There has been talk about the enormous plans the federal gov- ernment has to reroute the Well- and Canal at Welland. First reports would have had it that the province had its nose out of joint. It was said the project would undermine the provincial proe gram to put tunnels under the canal, would cost it money, and create confusion in planning its future roads program in the area, NEGATIVE REACTION When you talk to the powers that be, however, you don't find any such reattion. They are happy at the prospect of the new canal. But there will be some inconvenience, Three tunnels are to be built along'the canal, at a total cost of about $40,000,000. One is at St. Catharines, the second at Thorold and the third at Welland. The new canal won't have any effect on the first two-- both of which now are under construction. But it will hold back the Well- and tunnel for a while. And it means that money spent on de- sign and engineering for this Pe, will have tobe written off. But the viewpoint here is that the project is for the common good It wilt eliminate a--nuisance,; and mean that Welland, for the first time, can plan its streets in accord sith a good traffic pattern. So of what account are some dollars out of pocket? An incidental consideration is that now, when it is proceeded with, the Welland tunnel will probably cost less. It will be built at the same time the new canal is being built. Under these conditions construction should be less costly. At present, for instance, the most important work on. the other tunnels can be tackled only during the three months a year the canal is closed. Illustrated there is one of the lessons of government and poli- tics. Initially there will be some objections fo nearly anything that is proposed, BIBLE No man can serve two mas- tes. . . . Ye cannot serve 'God and Mammon.--Matthew 6:24. Divided loyalty means half- hearted service! Neither God nor the Devil will settle for less than complete dedication. The choice is yours, SAVE $ $ ON AUTO INSURARSE S608 5 DIAL 728-7567 If you are an 'Abstainer you 4 ve up to $26.00 on your auto insurance, JOHN RIEGER 597 KING ST. E., OSHAWA