Biltaink runaway couple, Do- mute Elwes and his heiress
both, the former Tessa . Ken-
OTTAWA (CP) -- Deputy CCF leader Stanley Knowles accused the government Wednesday of dealing unfairly with the country by not disclosing its future policy on. federal-provincial fiscal ar- rangements.
In the absence of‘ a clear state- ment, Mr. Knowles said, there is the suggestion that the Progres- sive Conservatives apparently will follow traditional policies and abandon the principle of equaliza- tion of provincial revenues.
He spoke shortly before the Commons gave final approval to _a government bill increasing to 13 per cent from 10 the provinces’ share of federal personal income tax revenues and providing 0 $25,000,000 a year in special . mints to the Atlantic provinces. . The proposal, made to the prov- lneu Friday night in telegrams from Prime Minister Diefeui-baker , M annoimced in the Commons Saturday, cleared the House after athree-day debate this week and , now goes to the Senate. DIFFERENCE IN POLICIES
Mr. Knowles said the Conserva- lives’ traditional policy" was to . Share tax revenues with the prov- , lnces. with the result that the , large central provinces with/big llllmlations and many corporation head offices would get the bulk Vi tax revenues and the other .l0'0Vimces little or nothing.
nedfihoneymoon in a swankyl
X l E -‘The CCF, whose policy was fol- s i t
By JOHN EARLE
ANKARA, Turkey (Reuters) — .319 United States Wednesday Ilnoothed away some of the ten- ‘.‘P" of an American-Iraq rift with a $10,000,000 donation to the gglsttlem members of the Baghdad
C .
_The American grant, which still
111385 on congressional approval, ‘."3S_made toward a joint com- munications project by Iraq, Iran. Pakistan and Turkey. - Awni El Khalidy, secretary-gen- *31_of the five-power pact, said » _Wlll be spent on a telecommu- nications network linking the cap- lals and chief cities of member -countries.
The United States, although not _‘. pact member, made a do- nation of $12,500,000 to the alli- ‘M9 last year. Britain is the only 13:‘-mber from outside -the pact
ea
\
‘-1- 9;‘ 5.‘ ‘Q
State Secretary Dulles’
‘Admits Hacking .Coupl,e To Death
‘ ,NEW YORK (AP)——A 23—.Ve3r' Jobless gas station worker “may admitted hacking to death ‘. Wealthy shipyard operator and 5 Wife when the couple awoke 1'“ Caught him ransacking their “ll house, police said. Inspector Walter F. Henning ‘Entitled the youth as William °EWan. H°_ quoted I\1cE\\'an as sayiii: Intended to burglarize the .me of Oscar ltamberg, 50, and 31.3 Wife, Anna. 55, but became gighiened when they woke up and 90 them_ . ambefg and his wife were ,°““d dead Thursday night on the .007 alongside a double bed in men" $40,000 Brooklyn Beach “file. Each had been stabbed ul 15 times.
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HAVANA IS GRETNA GREE-EN
/
Havana hotel after their mar- nage in the Cuban capital this
week..'Elwes, 26-year-old son of, a British society painter, and hisi bride, 19. flew to Cuba from Bri-l
CCF Speaker Critical Of Gov"r Deal With Provinces
lowed closely by the Liberals, Mr. Knowles said, called for agree- ments with the provinces where- by the Canadian tax pot could be distributed fairly to all sections of the country in order that all Canadians could obtain a stan- dard level of services.
J. W. Pickersgill, former Lib- eral immigration minister, said the country has a right to know whether the principle of equaliza- tion payments, devised by the for- mer Liberal government, will be adhered to by the present govern- ment. Equlization is an attempt to distribute Canada’s wealth more evenly across the country
through special fed al payments
to “have-not” provinces.
The government “is quite con- tent to~be judged in what we have done,” Finance Minister Fleming said.
Mr. Plckersgill retorted that the Conservatives ‘intend to give Ontario “the lion’s share" of tax revenues. The Conservatives “be- lieve they can pay off their friends in Ontario nad forget the rest of the country.” .
NOT TELLING COUNTRY
Mr. Knowles said that despite last year's election promises and an unfulfilled pledge to reconvene last au-tumn’s federal-‘provincial conference early in 1958, the gov- ernment is preparing for an elec- t.-ion without telling the country
tain after Tessa‘s father obtained court writs toprevent the mar- riage in Scotland or England without his consent.
(AP Wirephoto)
ments policy w-ill be.
Mr. Fleming replied only that “the bill carries forward the equalization principle further than ever-before.”
Mr. Fleming said it had been impossible to call a new federal- provincial conference this month as planned because of the pro- t r a c te d parliamentary session and because provincial treasurers now were engaged in preparing their budgets.
The interim measure was needed quickly to enable the pnovinces to plan their spending programs for the coming year.
Jean Lesage, former Liberal re- sources minister, said the in- creased share of federal income tax should be offered to the prov- inces in a way that would not leave open the nisk that a decline in the tax revenue woule result in e dectine in payments to the provinces.
conceivably, be said, a sharp decline in federal income tax rev- enues could eliminate any bene-
Nfld. Gov’t To
S'I‘. .lOl{.\l’S, .\’f1d. (CP,\—Wel- fare Minister Abbott announced in the legislature Wednesday the Newfoundland government plans to spend almost $3,000,000 on a 192-unit apartment project for St. John’s workmen.
He said 46 units will be built in the centre of the city where slums have been removed. They would contain two, three or four bedrooms and be rented to fam- ilies earning between $1,200 and $3,600 a year.
The rent‘ would be approx- imately 20 per cent of the ten- ant's income and would not be based on the size of the family or the amount of room needed. A family earning $1,500 would Pay $2 a month.
Cost of this project was esti- mated at $675,000.
More than $2,000,000 would be
spent to build 146 units near the
By ED SIMON Canadian Press Staff Writer The British government's re- jection of a request by London’s bus drivers for a committeeof inquiry into their claim for a wage increase bears a direct re- lationship to the recent resigna- tion of Peter Thorneycroft as chancellor of the exchequer.
In their anxiety to‘ heal the breach in Conservative ranks caused by the departure of Thorn- eycroft and his treasury asso- ciates, government leaders have pledged themselves to continue his tough financial policies aimed at curbing inflation and safeguarding the value of the pound.
If the government had given any sign of willingness to count- enance a pay increase for; em- ployees-.‘ of a nationalized indus- try, it would have run into a new storm of protest from the substan- tial number of its own support- ers who sympathized with Thorn-
~ eycroft in his bid to burb expend-
iture of public funds.
OTHER HORN
But outright refusal to discuss the matter with the bus drivers is likely to thrust the government onto the other horn of its finan- cial dilemma.
The transport and general workers’ union is known to have had considerable difficulty per- suading the drivers to agree to forgo the regular strike-vote pro- cedure in favor of a committee of inquiry.
Taken on its merits, the driv- ers’ claim to a pay rise is far from incontestable. But the indi- cation that the government in- tends to fight all wage increases without regard to the issues in- volved is unlikely to encourage the trade unions to exercise mod, cration in labor disputes. _ In arguing for a rigid ceiling on government expenditure at its present level, Thorneycroft relies
fit the provinces get from the in- creased sharing.
Mr. Fleming said if t-hene is any such decline in payments to the provinces, -the fault is not with the present government’s new proposal but in the Liberal-cre- ated tax-sharing formula. There was no floor written into the for- mula guaranteeing the provinces
what its long-term fiscal arrange-
Yanks Smooth Rift iA’r A - Ankara With 10 Million
announcement of the donation helped cool ruffled tempers after a heated exchange between the United States and Iraq at a closed meeting Tuesday.
Conference sources said Dulles and Gen. Nuri Al Said, the leader of the Iraqi delegation, became involved in a stormy argument over Nuri‘s demands that Israel be forced back inside the borders laid down in 1947 by the United Nations. _
But Dulles flatly rejected Nuri’s arguments, the _sources said, de- claring the problem should be settled by the United Nations and is not a matter for discussion at the pact meeting. _
Dulles held private talks with
Will Name New Chairman I-n Rail Dispute
OTTAWA (CP)—-A new chair- man will be named for the federal conciliation board inquiring mi‘! the contract dispute between the railways and 140.000 I}0X1-0D€I‘.<'it- mg employees following union protests, it was reported reliably Friday. _
The unions have oblecied to Hon. Charles P. McTague of To- ronto, former Ontario Supreme Court justice and former chair- man of the National War Labor Board, because of his business connections. . V
informants said Mi‘. Mcfague is withdrawing from the chair- manship in the light, of the ‘i5 unions’ complaint to Labor Min- ister Michael Starr.
An announcement to this effect was expected .\londay. ‘
Meanirliile. there was no infor- mation on a possibly successor. and one well-posted source said none has been chosen.
set payments.
the delegates of Iraq and Turkey
rift. But Iraq was expected to press for the inclusion of the Is- raeli problem in the pact’s clos- ing communique today.
The pact’s ministerial session ended its formal work Wednes- day but delegates continued their lclosed meetings, analyzing the (international situation. The con- ference will end with an open meeting this morning.
Khalidy quoted Dulles as say- ing that Western aid to Middle Eastern countries is actually sev- eral times greater than aid from Russia. He said so-called Russian low-interest rates are unreal be- cause the Soviet Union fixed’ arti- ficial prices on its goods and the actual cost of its aid is much higher than Western loans.
Soviet figures also included trade exchanges, which were not announced as aid by. Western governments, Dulles said.
Khrushchev Would Agree To Talks Delay
LONDON (Saturday) (AP) -- Nikita Khrushchev is quoted as saying Russia is agreeable to postponing a summit meeting If the date proposed by Moscow—- within the next two or three mon-ths~is too soon for the West.
But the secretary of the Soviet Communist party says‘ he does not like the idea of having a pre- liminary meeting of foreign min- istcrs. Some foreign ministers are like “midwives who are not in- terested in ensuring the birth of the child," he comments.
Khrushchev"s remarks are con- tained in an interview with Ive- vach McDonald, foreign editor of the London Times. published Fri-
Wednesday in a bid to heal the-
day-
Spend 3
Million On Housing Project
city's modern Elizabeth Avenue
section. 1 There would be 40 foul‘-bedrooml
units, 76 three-bedroom units, 10 two-bedroom units and 10 one- bedroom units.”
The one-bedroom units would
out children. All would be rented to those in the $1,800 to $3,600 j_n. come bracket for about 20 per cent of their salary.
Both projects would be carried out under a federal -provincial partnership agreement with Cen- tral Mortgage and Housing Cor- poration.
“It is hoped that bids for con- stnuction can be called immedi- ately so that work can commence early in -the spring of this year,” Mr. Abbott said.
Since 1949 the govermnent has helped build 400 dwellings for workmen.
INTERPRETING THE NEWS
British Get-Tough Money I Policies Bring Protests
on the contention that wage in- creases must be accompanied
either by increases in production ‘
or by compensating economies in operation. KILLS HOPE
Applied to a productive indus- try, the case is virtually unan- swerable. But its rigid applica- tion to millions of non-productive workers-—public servants, railway workers, office staffs, members of the armed forces, doctors and nurses—leaves them helpless to cope with rising prices.
Coupled with controls on public and private investment, it curbs expansion and effectively kills the hopes of many productive work- ers to improve their economic situation.
Prime Minister Macmillan’s re- ply to Thprneycroft’s resignation speech was a plea for flexibility in the application of his policies. The two factions have tempo- rarily healed their breach but the basic dispute between them remains unresolved.
Jobs Provided For 270,000
TORONTO (CP)—Labor Minis- ter,-(Starr said Thursday night the
Progressive Conservative govern-
ment has provided jobs for
270,000 persons who might other-
wise have been laid off this win- ter. ' He said the government pro- gram against unemployment in- cluded the slowing down of immi-
gration last July, an extra $300,-
000,000 spent on housing which brought an 87,-per-cent increase by December of last yar com- pared with December, 1956, cash advances for grain and subsidies to the Britannia mine in British Columbia.
Mr. Starr said in a speech re-1
Halifax, Sydney, Charlottetown, Moncton, Saint John and Fredericton now join ‘the existing network extend-
ing as far west as Lethbridge, Calgary and Edmonton,
Mon_Feb1'uary, 3.1958 The Guai-di-in Page 11 l Vehicle
Starts P. M. Reminiscing
OTTAWA (CP) —— Prime Nnll-,‘ ister Diefenbaker started to rem-* inisce when he saw the red and
wagon-sleigh pull up in front ofl Parliament's Peace Tower.
“It must have been built before 1890,” he said as he examined the yellow printing on the blue tail-i
be for older married couples with~ gate’
The inscription read “G.. M. Diefenbacker, b u i l der, Hawks-l
grandfather of the prime minis- ter. .
“It must be more than 65 years old," he said. ‘‘It was built before- the old man dropped the ‘C’ from the family name——about the time of the death of Sir John A. Mac- Donald.”
The sleigh was presented to the prime minister by Tom Bell, MP for St. John-Albert, N.B., and na- tional president of the Young" Pro- gressive Conservative As-
-
of the Dalhousie Law School, president of the Progressive Con- servative Student Federation.
Mr. Diefenbaker said he wasn’t quite sure what would be done with the sleigh, but he hoped it would be preserved in a historical museum.
The vehicle was found after the 1957 federal election on the farm of David Bauman, near Elmira, Ont., by Kingsley Brown of the Hamilton Spectator.
, wmow GETS ALL
..NEWPORT, RI; (AP) —Robert R. Young, rail magnate who was a Newport summer resident, left all his property valued at more than $6,000,000 to his widow, An- ita (O’Keefe)_ Young, according to his will filed in probate court Fri- day. The will of the New York Central Railroad chairman, who shot and killed himself last Sat- urday in his Palm Beach, Fla., home is expected to be probated Feb. 13.
blue “prairie schooner" type of.‘
ville, Ont." The builder was the. -
sociation, and Peter McDermaid '
CHARLES
Charles Starkweather, right, accused of murder, is led out of the Converse County sheriff’: of-
STKWEATHER ArESTED
fice in hand cuffs by Berle Kar- nopp. sheriff of Lancaster County, Lincoln, Nebraska. Starkweather
is being returned to Nebraska by automobile to face murder- charges. (CP Wirephoto)
CARACAS, Venezuela (AP)—A Venezuelan airline pilot said Fri- day ousted dictator Marcos Perez Jiminez flew in Cuban showgirls for entertainment at his luxurious La Orchila Island hideaway.
The pilot, Capt. Ramon Castillo
. Mena, took reporters to the island
100 miles northeast of Caracas to see the $4,000,000 resort. The lay- out includes 23 modernistic red- wood b u ii g a l o w s, swimming pools, beaches, a casino, three dance floors and huge dining rooms.
Castillo Mena said about a dozen pretty women were flown in repeatedly from Havana to en- tertain the fallen dictator and his aides. The pilot said he \trans-
ports that Canadian and U.S. fi- nancial contributions for the Lib- eral party campaign chest are be- ‘mg sought constitutes “a start- ling and alarming thing."
He added: “I should think it is a very bad practice for any party to a c c ep t contributions from
Says Cuban Showgirls Flown In To Entertain Jiminez 0
sources outside the country."
Yestercly, February
I.’
_ . . . marks the joining of the Maritime Microwave
network with the Trans-Canada microwave network.
ported some of the show girls after their arrival Caracas.
Venezuela’: new ruling junta has seized the properties at La Orchila and stationed a guard on the island.
A naval investigating commis- sion headed by Capt. l-Iector Ab-V delnur reported the facilities at the resort included a fleet of ex- pensive automobiles, huge stocks of the finest foods and liquors and extensive wardrobes for women.
GIRLS BY PLANELOAD Francisco Vitale, one of the
I
HFC solves over ‘/2 million;
More people borrow from _ HFC than any other con- sumer finance company. Reason: HFC has an 80- . year reputation for. helpful advice on money manage- ment and prompt, friendly service on loans. You can borrow up to $1,000 from HFC with repayment term:
Modern money service backed ‘-
employees on the island, said, “airplanes filled with women and, men in the former president’s, confidence landed almost weekly" at La Orchila.
A ii o_t h e r worker, Profeta Eisack, said the celebrations at the island usually ended in “great drunken brawls on the beach.” He said Perez Jiminez feared be- ing poisoned and brought in his own chefs from Caracas for the parties.
.’~‘.*
1 . 2ncl..
by 80 years of experience you choose_
I17 Queen Street. e 5 e e b o’ n e . e . Telephone 7395 l50GreutGeorge Street . . . . . . . . Telephone 8517
CHARLOTTETOWN
This forward step by The Island Telephone Company
Limited increases Long Distance telephone facilities for
all telephone users in Prince Edward Island and also pro-
’a E 3
Canada.
The Island Telephone Company
vides facilities for Television programs
Completion of the network marks another advance as 67 the‘Telephone industry keeps in step with the growth of
money problems ayear 1 _u