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PAQE POURTEEN e---------- EEA Le THE DAILY TIMES-GAZETTE Ea os LL THURSDAY, DECEMBER 27, 19 Government Battle To Curb Inflation Feature 0f Year Of Rising Costs Ottawa (CP) -- Canada's ex- panded labor force boosted its earnings by about $1 billion in 1951, but inflation fattened itself on part of the increased purchas- ing power. The era of prosperity and in- creased economic activity brought with it one of the most rapid in- creases in prices and one of the most discouraging climbs in living costs Inflation, developing on the sud- den, sharp speed-up in world re- armament, boosted the cost-of-liv- ing index by about 10. per cent. The index, based on 1935-39 prices equalling 100, in December hovered close to the 200 mark, the highest in history. TRIPLE 1950 INCREASE The 10-per-cent increase was al- most triple the 3.5-per-cent in- crease during 1950, and Cana- dians, wondering when the rise in prices would end, besieged the gov- ernment with requests for anti-in- flationary measures. Steps were taken by the govern- ment to stiffen restrictions on con- jumer credit, to cut down bank loans and increase interest rates to discourage borrowing -- but still the price climb continued. The government brought in le- gislation with a view to ending the practice of manufacturers or Sup- pliers setting the price at which their goods are sold to the general public. It was hoped this would stimulate competition among Tre- tailers and tend to lower some GLOOMY OUTLOOK But at the year-end the prospects of coping with inflation appeared as gloomy as they did at the start of the year. While inflation ate at some of the purchasing power, business generally was buoyant with the exception of reduced sales of cigarets, some household goods such as refrigerators, washing machines and electric stoves and automobiles, caused partly by the government's increased tax. Earnings by the labor force dur- ing the year increased to an esti- mated record $9,200,000,000 from $8,200,000,000 in 1950. Income by factory workers rose to $3,198,0,- Retail sales soared. They climbed to $10,200,000,000 for the year -- a billion-dollar gain from $9,100,000,000 in 1950. The total value of all goods and services for the year jumped $3 billion to a record $21 billion from $17 million. Foreign trade, stimulated by the world demand for Canadian strate- gic goods, expanded by, more than $2 billion -to a record $8,50,000,- 000. Exports, however, failed to keep pace with imports, and Can- ada ended up with a deficit of about $250 million. INFLUX OF CAPITAL This was more than offset, how- qe by the powerful flow of for- eign capital to share in Canada's economic - expansion. The value of the Canadian dollar, cast free more than a year ago, strengthened on the world market and Canada's reserves of gold and United States dollars totalled about a near-re- cord $1,700,000,000. Hard-hit by the inflationary forces and the fixed price of their product were Canada's gold pro- ducers. They urged the govern- ment to'seek a better price than the $35 per ounce (U.S. which Canada obtained from official mar- kets. The U.S., however, refused to in- crease the price, and Canada, fin- ally, obtained permission to allow her producers to sell gold on the world's unofficial or industrial markets where the price some- times was $5 and $10 per ounce higher. But those who agreed to sell on the free market were cut off from government subsidies to aid marginal gold producers. Not many producers were willing to sacrifice federal aid and at the year-end the bulk of them still were selling to the government at the fixed official price. HUGE SURPLUS Canadians, during the year, com- plained of the high taxes, imposed to help pay for Canada's three- year, $5 billion rearmament pro- gram, and the complaints grew as the year-end showed that the gov- ernment's budgetary surplus would be far greater than estimated by Finance Minister Abbott. He had estimated a surplus of about $30 million for the year and by December the surplus was closer to $600 million. Mr. Abbott admitted that he had miscalculated and estimated that by the end of the fiscal year next April the sur- plus may total about $300 million or $350 million. However, with the mounting number of complaints, the outlook appeared bright for slightly re- duced taxation when the next budget was brought down, some- time next March. (End advance for pms of Tues- day, Dec. 18) -- note future date. B.C. Development Makes Great Strides By DAVE MCINTOSH Canadian Press Staff Writer Vancouver (CP) -- "Staggering" is the word for British Columbia development. Finance Minister Herbert Ans- comb used that word the other day in saying that gross production in B.C. -- now a good deal more than $1 billion a year -- will eventually outstrip Ontario's and Quebec's. The minister went on to say: "We are in a position today that B.C.'s resources are in such de- mand that if a depression came elsewhere, it couldn't apply here because of the demand for those resources." Big developments came thick and fast in 1951. Aluminum Company of Canada started its $550 million project in the northern wilderness. First step was construction of a diver- sion tunnel to carry the Nechako river around the site where a power dam will be built. The dam, when completed, will back up lakes and rivers against the eastern face of the coast range. Work has started on a tunnel through the mountains which will build up a powerhead for a hydro- electric plant. Transmission lines will carry the power 50 miles over the mountains to tidewater, where the aluminum plant will be built, It will be another three years before aluminum production starts. HUGE POWER PLANT Consolidated Mining and Smelt- ing Company at Trail started pre- ¥minary work- on 'a $30 million hydro-electric plant on the Pend d'Oreille river, 12 miles from Trail. Brought into production this year were a $35 million cellulose plant near Prince Rupert, a $19 mjl- lion sulphate mill near Nanaimo on Vancouver island. Still under construction is a $40 million newsprint mill at Duncan bay on Vancouver island. This month the two companies building the mill announced a new $21 mil- lion pulp plant is planned for the same area. Another $11 million is being spent for newsprint plant ex- pansion at Powell river, On Nov. 1, the first oil was' dis- covered in B.C., near Fort St. John in the Peace River district. Other wells are being drilled. A few weeks later, Premier By- ron Johnson said trans-mountain oil pipe line company, subject to approval of the Board of Transport Commissioners, will build a 693- mile pipe line from Edmonton to Vancouver, It will cost $82 million and be completed by the end of 1953. Vancouver refineries are plan- ning to increase plant capacities. Besides the dam, Consolidated started spending $35 million for plant expansion as the world de- mand for base metals and chemi- cals increased. NEW COMPANIES The company, biggest lead-zinc- chemicals producer in the world, appeared ready to start a basic steel industry in B.C. Cellulose Company of B.C., build- ers of the Prince Rupert plant, were reported about to start a $75 million pulp project in the in- terior Kootenays. Twelve new base metals mills are being built and old mines were re-opened during the year. Preliminary estimates show that all records were smashed in the four basic industries -- forestry, mining, agriculture and fishing. Forest production last year was worth $468 million. This year the figure will be around $525 million. Total value of the four industries will approach $935 million com- pared to $821,745,000 in 1950. Limit of Taxes By Joseph Lister Rutledge It is a well-established law that You can push even a good measure so far that the returns begin to diminish rather than increase. We admit that taxation, if not what we would call a pleasant thing, is still a necessary feature of an or- ganized society. But we must also admit that this tax power is lim- ited by the natural law that says if you fry to get to much you may only succeed in getting too little. It was recently discloseds that be- tween April 1--about the time when Mr. Abbott decided to increase the tax on cigarettes--and October 30th, some 8,000,000 American cigarettes had been seized by Federal authori ties. That seems like a lot of cigar- ettes. But the Flue-Cured Tobacco Marketing Association, that has a definite interest in the matter, and has been doing some investigating on its own, suggests that for every truck of contraband cigarettes that is stopped a hundred get through. If this approaches the truth--and it probably does--and if you add the petty smuggling that goes on, the total would mount up to a notice- able percentage of Canada's Cigar- 'tte business, which pays 25 cents + tax out of every 42-cent sale. It ould seem that here is a notable instance of a case where both the public who buy the cigarettes, and the government that taxes them, are bound to lose. These 8,000,000 seized cigarettes, which, if the Tobacco Association is correct, might represent one per cent of all smuggled cigarettes, com- prise a total that would pay nothing into the Canadian treasury. They are made by American labor from American tobacco. There was that much less demand for Canadian tobacco, which certainly does pay a tax. There was less business for the manufacturer and retailer who also provide a comfortable return in tax- ation. All this is in the column of the ledger reserved for imposed taxes that we don't get. But there is another column of definite debit that doesn' appear at first glance-- not what we don't get, but that we actually pay to lose. We are spend= ing a lot of time and money catch- ing people who are.organizing to break our laws, We are encouraging them to think of this as a fruitful field for such lawbreaking. That is bad' enough and wasteful enough. But still worse, if we only recogniz- ed it, is that we are encouraging our own people to be a party to law- breaking, by pushing restrictions beyond what they can accept as rea- sonable and right. It might be well to run a careful eye over other taxes to see how many of them have advanced to a place where they occasion resent- ment among reasonable men. A law defied is a grave public danger, and ROOM AND BOARD By Gene Ahern IM ANXIOUS TO MEET THAT ~ - VALET THE EARL BROUGHT BACK WITH HIM FROM ENGLAND/ HM: ++ MAYBE I CAN ENTICE HIM AWAY FROM THE BIG. OAF, TO SERVE AS MY MY WARDROBE AND SARTORIAL NEEDS / : VALET AND LOOK AFTER) TH' FIRST THING HED GET YOU IS A PAINTERS DROPCLOTH TO DRAPE OVER ANALYSIS OF EVERY= THING YOU'VE EATEN THE PAST MONTH ! Famed British Comedian To Tour Canada on Behalf Of Variety Village Work Toronto (CP) -- A major part of the Canadian entertainment world is cooperating to bring Tommy Trinder, famed British comedian, to Canada for a six- week tour in February and March. The tour will be under the auspices of the Variety Club of Toronto, with proceeds going to "Variety Village," the club's voca- tional training school for crippled children. Both the Famous Players and Odeon theatre chains are making their motion picture theatres avail- able in the majority of cities of the tour -- wherever they are needed. Thé Variety Club announced that Trinder will. have with him a troupe of top-ranking British variety stars, including Joseph Locke, Irish tenor; and the Cana- dian dancers, Alan and Blanche Lund. After opening at Toronto's Royal Alexandra Theatre Feb. 11, Trin- Ontario Spotlight CHRISTMAS CALM Toronto (CP) -- Christmas good- will killed crime in suburban New Toronto and Long Branch -- at least temporarily. New Toronto's police blotter was spotless from Dec. 21 to Dec. 26. A lone drunk was arrested in Long Branch. 47 SHIPS AT KINGSTON Kingston (CP) -- This Lake Ontario port now shelters a winter fleet of 47 vessels, larg- est on the lakes. Last year 60 ships tied up here to wait out the freeze-up. KIWANIS ACTIVE Toronto (CP) -- The Kiwanis club, with the largest service club boys' and girls' work program in the world, gave $145,290 to com- munity work in this city in 1951. Their own K-clubs for 3000 chil- dren between seven and 17 years cost the Kiwanis $93,440. SENDS NOVEL GREETING Peterboro (CP) -- Det. Sgt. W. A. Clarke of the city police is sending novel greetings to summer visitors form Cahgrin Falls, Ohio. They'll be receiv- ing disc recordings of a song written by Sgt. Clarke, "A cot- tage in the heart of the Ka- warthas." U.S. TRIP EXPENSIVE Windsor (CP)--Arthur Williams, 49, tried to save $4.10 by smug- gling a bottle of whisky and half a case of beer into the United States. A jedetef Sand. jury in Detroit indicted hi yesterday for assaulting the U.S. customs officer who discovered the bottles in his car. Maximum penalty -- three years and a $5000 fine RIPS SERGEANT'S STRIPES Toronto (CP) -- Christmas. Eve, Clifford Trew, 27, scuf- fled with suburban Weston's newest police sergeant after a minor traffic accident. The police officer -- Sgt. William Manuel -- had his brand new gold stripes ripped off his sleeve. Trew was charged with driving while his ability was impaired and with assaulting a police officer. SELLS ALL, THEN WINS Windsor, Ont. (CP) -- Walter Gunzo Humeniuk, 22, sold his automobile to pay for a serious operation for his sister, Mary, Later the former Windsor Spit- fire trainer joined the United States army and was sent to fight in Korea. On Christmas Eve he was declared winner of a $3150 car on a raffle ticket purchased here in October before he left for overseas. \ RECOVER LAKE NETS Port Stanley (CP) -- Four fishing . tugs forged through Lake Erie ice barriers yester- day and recovered nearly all their nets. Weather condftions steadily worsened after Dec. 16 and for the last week tug operators have been trying to isa up their season on the ake. DIES OF CRASH INJURIES Toronto (CP)--Joseph Matt, 22, of Virginia, Ont., died in hospital yesterday of injuries suffered in a Christmas day motor-car collision south of Sutton, 20 miles southeast of Barrie, before the safeguard of diminishing returns can make itself felt, de- fiance has begun. | der will take his show, to be known as the 'Royal Command Music Hall Varieties' to St. Cath- arines, Hamilton, Kitchener, Lon- don, Brantford, Kingston and Ottawa in Ontario; and to Mon- treal, Winnipeg, Brandon, Man., Regina, Saskatoorf, Edmonton, Cal- gary, Vancouver and Victoria. The Toronto Variety club is composed of people in the film, stage, radio, concert, sport and other branches of the entertain- ment world. Its present - '"'chief barker," as he is known in the club's circus terminology, is R. W. Bolstead, vice-president of Famous Players Canadian Corporation. The club is affiliated with Var- iety clubs International, which has "tents" in various cities of the United States, and in London, Dublin, Tokyo and Mexico City. The London "tent," of which the Duke of Edinburgh is an honorary member, recently held a benefit show which raised $54,000 to help restore the bombed-out children's playing fields in Britain. Trinder was well known as an entertainer of Canadian troops in the Second World War. *" I'm retired now and one of the big kicks | get out of life is meeting people.. There are plenty of timely topics these days and it is in- teresting to hear new opinions and ideas. | make many acquaint- ances who heip to pass the time most enjoyably while travelling about by bus-- and that is the really friendly way to tra- vel." FARES ARE LOW ROUND TRIP (Subject to' change) PITTSBURGH ....... 18.95 CHICAGO ieee. 24.30 WASHINGTON ...... 26.30 NEW YORK ......... 24.05 Tickets and Information at Gray Coach Lines 14 Prince St. Dial 3-2241 Canada in 1951 Took Initiative With Plans On St. Lawrence Scheme By JOHN LEBLANC Canadian Press Staff Writer Ottawa (CP) -- Canada in 1951 took the biggest strides this coun- try or the United States has made toward building the St. Lawrence seaway in the last half century. But there are still many hurdles to be overcome before the power- navightion ditch is built. 4 It will be years before the 2,200,000 horsepower of hydro energy starts flowing from the Long Sault Rapids of the river and deep - draft ships start mov- ing through the waterway between Montreal and Lake Erie. Despite all the acceleration Can- ada has put into the $700 million project in the past year, the mini- mum i$ four years for power and six years for navigation. How much more time might be involved depends on what blocks are thrown into the undertaking on the United States side, where opposition has held it up for decades. This opposition is ex - pected here™to continue unabated. On this side of the border, Can- ada made history by taking the big: step of deciding to go ahead alone with the seaway without the financial aid of the U.S. govern- ment. She took this decision after 10 years of 'waiting for the U.S. Congress to ratify a 1951 treaty signed between the two govern - ments for a joint construction of the navigation and power project. TWO DEVELOPMENTS Two almost - immediate out - comes of the decision were: 1. An agreement between the federal and Ontario governments authorizing Ontario to develop the Canadian end of the power in the intérnational rapids section of the river, in conjunction with the appropriate U.S. agency. This agreement was ratified by parlia- ment. 2 . A measure, adopted by parlia- ment, setting up a St. Lawrence Seaway Authority to build and operate the navigiation channe between Montreal and Lake Erie for the federal government, with or without the cooperation of the U.S. government. Under these proposals, the fed- eral government would spend be- tween $250 million and $300 million on the channel while Ontario would put up $200 milion for the powerl development in the rapids. have to put up $200 million to match the Ontario figure. The big question mark develops on the U.S. side. It has not yet been decided what agency -- whetuer New York state or some federal body would be the U.S. authority. Tha can result in a long fight. MAY CHALLENGE TRUMAN Then, it is expected here there will be some challenge to the power of President Truman to give the go - ahead to Canada over the head of the long - delaying Congress. The president told Prime Minister St. Laurent last fall he would do this if congress held up the joint scheme much «longer. The deadline is regarded here as being in early 1952. \ The expectations here are that a presidential green light will be fought strongly before the federal power tommission of the US., through the courts there, and per- haps up to the Supreme Court. That would be even before the case got before the International Joint Commission, the body that rules on the use of boundary waters bétween Canada, and the U.S. hearings before the IJC might take months more. So in official circles here, there is no great optimism for an early start on the seay, much as the government might be inclined to push it. One bright spot they see in the delay is in the matter of materials and manpower. At this moment, they would be a problem. But by the time actual construction starts, authorities here are confident there will be ample labor and materials. This may be in any- | thing up to two years' time. The estimate here is that it will take an average of 15,000 men to do the job, with somewhat more than that needed in the final | stages. Full output of 2,200,000 Some U.S. authority also would | seni Older Boys Parliament At Port Hope Port Hope (CP) -- A parliament unhampered by politics opened here yesterday. It's business: Pro- moting Christian living. The 31st Ontario Older Boys' Parliament began: its five - day session at Trinity College School. The 90 members, representing 5042 or church youths from six pro- iy J Ssyomitalions, heard their - r - old premier Victor Shimizu, tell them: *"'You are to vote independently. Do not just vote for the MCL Jneunt. Do not ee] undet the obliga- of party loyalty. Think eve issue pl Yourselves = d y Ami e pomp and ceremony of the opening of the federal and provana houses, finance minister udget calling for an expenditur: of $14,800 in boys' work. : Boys parliament, begun in 1917, is an outgrowth of the Tuxis move- ment- a mid - week activity in several protestant churches to pro- horsepower from the international rapids .is expected in four years from the start of construction, with the navigation end of the seaway taking two years more. mote spiritual, physicial, intel ual and cultural development. It functions - as do the federal ar provincigl houses. Strict parlia inmate ohn a ht oar Dar: en! i vinces. ; . | While the accent is on religion, the emphasis is on practicality, | The speech from the throne expressed the premier's concern over the spiritual well - being of youth, and introduced such legis- lation as the boys' work support act, the conference act supporting Christian youth convention pro = grams and the finance act. ai Poney called for in the the boys their own communtiies, mn A new feature this year will be eight g committees. They will present short briefs to parlia- ment on, among other 'things, the! problem of drinki- °, the national athletic contest sponsored by the boys' work board and the work of their 28 camps. { In addition are a 12 - hour course in leadership training, a Bible study class and a series of lectures on rural and urban boys' work, SUCCEEDS WHITAKER Ottawa (CP) -- Brig. James A. Roberts, DSO, 44, Toronto, has| been appointed to command the! 3rd Infantry Brigade, reserve! force, army headquarters| last night. He succeeds Brig. W. D.' Whitaker, DSO, of Hamilton who! has been transferred to the supple' mentary reserve. i Our Field Rep DIESEL-TRACTOR : HEAVY EQUIPME ive is now NT and Heavy Equipment. operation and maintenance of all tyes of Diesel, Tractor If you have the desire to advance in this industry, study now and forge ahead. Write for information, include full address and phone number te TRACTOR TRAINING SERVICE LIMITED, DIV. 24, 2 WILLINGDON BLVD, TORONTO 18, TORONTO. or BOX 204, TIMES-GAZETTE Year=End Sale of Dresses ® Smart for Now and Later ® New 1952 Styles Featured ! SIZES: 38 to 44 SIZES: 14 to 20 SIZES: 38 to 44 11 to 17 PLAN TO SHOP FOR THIS FEATURE-VALUE! ZELLER'S LIMITED i simcoe s. - shone 3.2294 RAYON SPUN DRESSES DON'T DELAY , .. COME TOMORROW FOR YOUR SHARE of this super-bargain in daisy-fresh "Sun Valley prints! 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