Daily News, 1957-09-18

              in
liOiiJWon & COMPANY L [• -IT- -,' \ I
■port Dollar Value Decrease-Less Borrowing
(IE USED CARS
I fQRCED SALE of every
■ mothine >
• own NOW ON
THE DAILY NEWS
Vol. 64.   No. 203 ST. JOHN'S, NEWFOUNDLAND,  WEDNESDAY, SEPTEMBER 18, 1957
ip,,,. 5 «„. Charles Hutton & Sons
And Reported caim]jnjon Qffjcja| Forecasts Vote
In Favour Of Seamen's Strike
Would Tieup
liter Bloodless Coup
I tAN(iKOK, Thailand—Reuters—Thailand was reported calm Tuesday alter
_. s roup led by Field Marshal Sarit Thanarat ousted pro-Western Pre-
p. rihulsonggram.
llihoiifli martial law was declared when the army struck Moniay night
,, pihiilsonggsam's refusal to resign, Bangkok went peacefully about iU
ar-old Pibhlsonggram was reported to have headed toward Cam-
Anotlicr former strongman, police chief Fhao Sriyanond, flew to exile
iv afternoon in a Geneva-bound plane. Another report said Pibulsong-
iose regime was re-elected by a slim majority in elections last Feb-
as fleeing in a fast car to Malaya.
^Demands for Phao's ouster made by an army rebel group led by the 44-
TrM Sarit brought on the coup.
Plbulsonggram to r e t u r
premier. These officials said they
expect no change in Thailand's
policies toward the West or the
Southeast Asia Treaty Organization, which has headquarters ln
Bangkok.)   '
Sarit said it might be necessary
to dissolve parliament tnd hold
new elections. An Interim provl-
Leaves
Canada
fcupps
or Montreal ..
i;!ity ol developing
:i> in the Ungava
.. northern Quebec.
f! meet   _ ebec Pre-
Canadian-
n   on to the
c conference at
*> Ocl. i-
!| go to Un-
e lo himself,"
. hc also is go-
porting ores to Europe li complicated because Ungava Bay 1:
open to shipping only two or three
development of Ungavi Bay u
mining  centra   would  b*  coi  .
and would hava to be backed br
iteady markets.
Ke said tha Iron Ore Company
oi Canada undertook a multi-mil-
lion-dollar operation south ot Ungava Bay only alter 11 American
steel companies guaranteed purchase ol 10,000,000 torn of iron ore
year for SS years.
The Manchester Guardian said
ist week that Krupp know, that
industries ln Europe will need to
import iron ore to keep their
steel planti running.
"Doubllesi ht would prefer to
invest in a country Ilka Canada,
which may ba eoniide ed politically a better risk than others >»
north and welt Africa," "--
Guardian laid.
i Suggests:
sory  Board  On
nmonwealth  Trade
.,    J) MORRISON
R»"«i Stall Writer
"MCP)-Creatlon of
""«* to help direct
1 ireaer flow of
'» U«i United States.
™»    SlS.000,000,000
corporations have
'mineral explora-
'• and put up
"' housing American
American Investors I
Hirer, sed Cana-
"t bonds but also
Radian firm,
J^e   lrectlon of
l»_,|ll_.«»   in    _<_m
6,7' ^"ladlan pl,
iL^ta deflcl
_l> i« * J "'"'rt' «l
ISm J*.r ««»"»>
l_ »«_ iUle'1 "P"'1
_P hi, ? Cm"rv»Uve
___ .Veiled «>•
___.«<-r?"P« An>«H
■ ^ I?*/1 d,'« Indus-
■ <**« and Invest
H hit JJ country.
■ H** »Uo ii,l
been a large foreign Investor but
the Second World War lapped
som« of ber financial strength.
In recent yeari her investment ln
Canada bai increaied. Last year
it rose to a post-war high of $2,-
«75,000,000.
Canadian authorities are hopeful that as Britain Increases her
economic strength, more of her
capital will move to Canada and
that this In turn will initiate
tiers for mort British goods.
Th* heavier the Sow of Canadian orders In Britain, the more
dollar* Britain will have for possible   Increased  purchases  from
j   But that, officials here feel, li
only  part of the problem.  The
Commonwealth is a vast but partially underdeveloped market.  It
holds   some  6SO,000,000  persons,
but many In the underdeveloped
— .as live at the edge of poverty.
t Is not just a problem of chanting capital to Canada but to
(Continued on page If)       |
sional government wai being considered.
Sarit said Thailand will 	
her alliances with tha West. He
sent emissaries to US Ambassador Max Bishop to te   him "
Thailand's foreign poll y will
Sarit said his group   till is <
slderlng the question of the coming session of SEATO, scheduled
to meet ln Bangko k in two days.
"There ihould be a overnment
to receive delegates but lt would
b* a pit; to postpone K
he added.
On* of Sarit's first acts wai
cable Prince Wan Walthayakon
New York to inform hm ht still |
is Thailand's UN representative.
Prlnct Wan, ttli country's foreign minister, la the retiring
president of tha UN General Assembly. He hat just been desig-1
nated the special UN representative to seek eompllanct with UN
resolutions on Hungary,
present crisis wai brought
 head by a dispute which
flared up Aug. U whan Sarit and
four other army men pull*. -■*'
of tht government in * row
Phao. Th* amy demanded  	
an edganb* the eiblnet oddrrrl
Plbulsonggram get rid of Phao
and reorganii* tht cabinet —
else resign.
Plane Crash
Only One
Reined
after landing to pick np Ihe
the  mining  twin-Jet B_7
The Irvine'reported the
had taken the SA-16 In tow
aad wai  remaining  in the
began tailing toward the converted minesweeper after
picking np the airman and
reporting ah* was not abl*
to take off.
The rescued man wai
Identified by the USAF Tue.
day night at First Lieut.
William Stevenion, JJ, the
copilot. Still milling are
Capt. Ray T. Cable, 31, the
pilot and Capt. Paul Pascal,
42, navigator-bombardier.
VERONA, Italy—A 450-pound copper angel Is gently lowered into place atop
the 190-foot church tower of Sacile (near Udinc) by a southern European Task
Force helicopter crew. The sixteenth century tower originally bore a wooden
angel which was destroyed by earthquake and bombardment. The new angel,
bought by contributions of devout townspeople, was mounted atop the tower by
an Army H-34 helicopter piloted by Capt. William M. Strawn, Jr., of Morgan-
town, W. Va., with First Lieut. Ramon F. Warner, and SF/C Richard L. Boyd,
inside the craft directing the workmen in the delicate task. More than 4,000 persons turned out to watch the operations—(I.N. Photo).
DOLLAR DIPS:
As  Canadians
Shave Borrowings
By  UAROL.    MORRISON
Canadian- Press Sta I Wrller
OTTAWA (CP) - The Canadian |
dollar has slipped from its
perch and perhaps no groi.
more relieved than the  govern-
But the  nature  of the premium's decline—by about two cents
in less than a  month—indicates
that it may be only temporary,
federal authorities sai   Tuesday.
For some weeks the meander-
ings   of  the   powerful   currency
have  been   watched   with  some
concern by cabinet officials. Main!
      _s that tl._   ..... . ...
ium would curtail exports—one on
the economy's major props.
Riding high ever since it
freed in 1950, the dollar last Aug.
21 reached a record $1.06
in relation to U.S. currency
porters   rejoiced.   Exporters
Then the dollar began drifting
downward, dropping to a 1957 low
of $1.03 25-32 last Monday. Tuesday it closed at $1.04.
' The decline was caused by a
variety of factors, offclals said.
They   had   noticed   thot   recent
Canadian borrowings in the U.S
were not as heavy as In the past
The high premium may have
frightened Canadian municipalities, provinces, corporations and
other organizations from the
American money market.
Another factor is the increased]
stability of the European _"
cial situation. Officials here said
one cause of the spectacular rise
of th* dollar last month was the
■flight" of some European ca
tal to Canada.
There   was   some   speculali
-alued tl
it the B
Apparently
temporary  scramble
get  their  fi
ire stable cui
the effAt of
ing the flow of foreign ci.
Canada. But Britain soon knocked
s in the devalual on rumors
perhaps some of this "flight"
capital was returned to the home
Local Shipping
OTTAWA—CP—A top union official said Tuesday he anticipates that employees of the Newfoundland steamship service operated by the CNR will
vole "overwhelmingly" for strike action next week.
W. J. Smith, nation-1 president, of the Canadian
Brotherhood of Railway Employees CLC, said, however, a strike will not be called until the federal
government has an opportunity lo review the dispute.
A walkout would bring about Uie most serious
disruption in federal transportation services since the
Progressive Conservative government took office on
June 20.
ference that he has authorized!
distribution of strike ballots to
start at midnight Friday. The result of the vote was expected to
be   known   within   the   following
The government-owned steamer |
service operates among New-1
foundland outports and links the |
province with the mainland It:
operates the 8,273 - ton William
Carson and 15 other vessels, pro-|
viding the only regular scheduled
o lhe rr
i and is
lated outports
ORDERED VOTE I
The brotherhood ordered a
strike vote Sept 13 among 424
employees after rejecting the majority report of a federal conciliation board which investi
gated a contract dispu e with the
Mr    Smith   added   "Ihcrc
CNR-operatcd ferr) operating between Yarmouth, NS, and Bar
Harbor, Me It also asked a $4 25
monthly company contribution for
each worker into a health and
welfare   plan
The company in negotiation.'
which started last Anni offered
a flat 10 per cent wage increase
and said it would pay 10 cent? a
day per worker   for   a    health-
For
l. the
involved, unliccnsc
The majority report of the condition board recommended a
lage increase of 13 per cent for
inhcensed personnel and 10 per
ent for engineers, pursers and
thers    It   proposed   a   company   j
plojccs ol the Newfoundland service and those on the Blucnosc
Hales of pay  and  wo/king  con-
The   contract   disoute   involves
termined  to  sec  that Canadians
engineers, pursers and seamen on
residing in Newfoundland receive
the same consideration as  other
other vessels.
Canadians working in that part of
The union h:d aske<   for wage
Canada," Mr Smith said
parity between ships, in the New-
Bulk of employees in the New
foundland service   are   residents
nose,   the   government  -   iwned,
of the island province.
IN BRITAIN:
Comment  On   The
Cabinet  Reshuffle
By ED SIMON
Canadian Press Stat Writer
Some observers in Britain h
predicted that Prim Minis'
Macmillan would produce a n
jor cabinet reshuffle to cope w
his party's   clouded  political   fu-
: little
the  cards,
ipatcd.    the   dy:
Lord Hailsham   was  freed
the education  portfolio  am
pointed   lord   president   oi
preparation   (or   his |
Strong Indications AVRO'S Will Buy Dosco
iday that A.
id Is well on
the majority of ,	
th« Dominion Steel and Coal Corporation to buy controlling interest in that hr- "--"■-- ■-•■- '
trial complex.
laid the,
majority of Doko direetori approved the offer and * "lubstan-
tlal number" of Dosco shareholders have already turned their |
shares over to transfer agents indicating their w-Ungnaii ti
--. t the stock trenifer offe
He also slid that Avro
pecta" te have the requir«
per cent of outstanding Dosco
iharti committed by the Oct
nld, of ct
ie, be e
I he laid.
The Avro ipokeiman would not
iy how many Dosco iharei have
et been committed but Alan
Armstrong, financial editor of
The Star, uld in his column
Tuesday that about 40 per cent
of the total now hat been accounted for and "acceptances
are continuing at a atlsfactory
rate."
NO CONWBMATION
Deiplt. newspaper reports in>;
Montreal that United States Inter-
would   attempt  to   outbid
MonlrUl.
A Dosco spokesman in Mont-1
real said the newspaper reports
were the first he had heard of
the American, interests.
The. Avro spokesman here said
he knew nothing whatever about
reports Americans were Interested in Dosco or that their representatives had met in Montreal
Monday, as the Montreal papers
reported.
' '. formal offer made Aug.
7 (o Dosco's board of directors
was 1V4 Avro shares plus $10.25;
for each outstanding Dosco com-
".. .' ind a slmiar trading
offer for Dosco convert hie deben-
MAJORITY APPROVE
After a Dosco directors meeting in Montreal Sept. 11, Dosco
president Charles B. Lang said
"a majority in number of the directors of the corporat on holding
or controlling a substantial number of shares and debentures had
expressed their intention of accepting" the .'vro offer. Dosco
has never said formally, how
—iy dire .rs actu.l y support
sale but The Star said here
Tuesday that "12 of the 14 Dosco |
directors have taken up the Roe
offer and this represents a substantial block of shares"
*" to.oppose the move are
idrey and F, H. Sobey,
Nova Scotia. They re-
| ported they sent letters to Dosco |
shareholders asking for authority
to represent them In votingl
against accepting the   ffer.
The   sprawling   Dosco   empire,
considered Canada's biggest industrial complex, empoys 30,000.
It operates Canada's most important coal mines in the Maritimes,
the world's largest submarine
Iron ore workings off-the co '' -'
Newfoundland, and In its
and fabricating plants across the
Maritimes produces a greater variety of steel products than any
other Canadian firm.
Dosco has authorized capital!-
ition of 5,000,000 common shares
I which 2,240,835 were issued at
Dec. Sl. Common shares closed
Tuesday on- the Toronto Stock Ex.
change tor $25.50. In addition its
I convertible debentures total SIB,-
000,000. "•
In a letter last week to Dsco
shareholders, president Lang described the  t"~) offer as  "fair
A. V. Roe Canada L
holding company which tlioi-.h
only 12 years old has become one
of the country's leading designers
and makers of aircraft In recent j
years It has spread its interests
Into production and sale of buses,
rolling stock for railways, forg-
ings, castings and many other
products. It was among a group
Including German and British interests which bought control last
April of Algoma Steel Cdrpora-
L-on. Avro is controlled by the
Hawker Slddley Group Limited of
London, England, which holds
t of Avro 1 sued com-
The other changes are aptly des- t
scribed by   The   Daily   Mail   as i
"lidying   up."    Geolfrcy    Lloyd. V
dropped  without  explanation  by1 {
Sir Anthony Eden two years ago, i
returns to the cabinet as educa- ,
tion minister and a series of mi- -,
nor  upward   moves  result from :
the retirement of the ailing Den- I
5 Vospcr as health minister. ,:
Paymaster • General Reginald jl
Maudling,   the  minister respora-
"lie   for   Britain's   negotiations
ith her prospective fellow-mem- j.
ers of the European free trade >'
rea, has been elevated to cabl- '
CHEEK LEADER '.
flamboyant   Hailsham '.
will   succeed   the   comparatively <
colorless  Oliver  Poole  as  party ?
liairman  has  excited  the  most
His dual role as a party func-   ;
onary   and  a   member  of  the   i
government is seen as an effort
strengthen  the   government's   !
with  Conservative  organlza?
s across the country. Crltie'i
he government have suggested
i he Is to be a cheerleader to'
Is ter  flagging   Conservative
While party spokesmen protest
that HaUsham's job 1, of consld-.
erably greater Importance, the
partv undoubtedly could use a lit;
Ue eheerleadlng ln thc wake of a
lone series of byelection etbac_lf
HaUsham's experience is a teler
personality -and vigorous,
speaker could go fqr toward filling the bill.