Maxims of is More Mon 1,”: come, worst served.

-1-;7:A7;,.;5 CANADA. runsnax. it. r

0 Covers Prince Island Like the -new

x

'0'i'l'AWA. (SPECIAL) - Con- tinuance of the federal-provincial ux rental agreements with federal payments to the provinces revised substantially upwards was the sol- utlon put forward herb Monday by Prince Edward Island Premier Alex Matheson as one that would best meet the needs of'- hi! Pl'0' Vince. Tax rental agreements. he told the federal-provincial confer- ence on fiscal matters, were intend- ” to plgce provincial governments in a position to carry out their constitutional duties efficiently and independently and to plan for five years ahead. They also. he said. were intended to raise the livinr standards of the "have-not" pro- vinces to the average all-canadlan level. In Prince Edward Island the Premier said. they are not filling this function.

"Although we favor the continua- tion of the principles underlying the existing financial arrange- ments." Mr. Mathcson said. "We feel that under the present formula. we are not receiving a fair or adequate share. Our submission in- dlcal the necessity of and the right to substantially" increased federal assistance for the public services which the province has

Coming Events

Dancs cancelled. ionshaw Inn tonight. . '

Card party ionldst West Royalty Hall. I p.m. .

Bin at at Theresa. Oct. .lp.m.

Danae Forest lilll Hall. Wad- nesday, October I.

"Regular Dance. aapaud Rink

Frldliy.

sstra. ,. .- Special dance.

. L

g . 53 "Dance Lorna Tussdq sight.

estra.

Vslleulalewsls

spoeislsstunu .....ul...........i A 3- MII7's lslhylou-la. Tuesday. Oct. 4. -v'-'-'y'"1"ruu.l'3'.”'n.'ul'.”l't”.x'l..f.l.'-2 Orchestra.

P Frlt?ytf'g::dhsru7th.lms.t":"::..:

var WJ.

Vernon

souls Rustico Hall.-

-innual chicken and ham Der and dance Orwell cove. 3:: 901- Supper o.so-s.so.

D cu-dj. -..?l'.i'a'u. Wabst:s Hie. 5- System

Dsnstag every Thursday Illlt. south ltustloo Hall. Music by some hfacxeedds orchestra.

ouse ' n”" ...."lEt"..?. .1. l”....'l';.l."i'i' "Tall HUM”. Howard Nina.

when is-so Winsloe Station run every may um. -'ll;ac”Khale's orchestra. Dancing to

lease Fortune lall av 39345? ll-llht I:M - 11:8 orchestra with HIMI1

Vlad-

w-dn--uv nuhc.-

er ud -1"”

waster-. sus-

R rs J

sap. . Csntesa service. '- '

undertaken."

from federal policy and the pro- vince was obliged to provide them. If trade. commerce. tariff and monetary policy is

see that citizens of no area lall

Dr. Frank Macl(innon. Presi- dent of the Prince Edward Island Division. Community Planping As- sociation of Canada. presided at the opening meeting of the Sixth Regional Conference held at the Charlottetown Hotel yesterday morning. in exte " g a welcome to the 00 members present. Dr. Mac- Kinnon said that he was confident that the government was pleased that people were thinking along the lines being followed by those interested in Community Planning. Sir Brian Dunfield. President of the National Association who re- cently attended a National meet- in! at Montreal. said that while a big meeting was encouraging he thought that local Regional Con- ferences were more intimate. Lleut. Col. Ernest Johnstonc speaking on Rural Beautification on-P. E. island referred to a re- cent visit he had made to England and spoke in terms of apprecia-

E

to be dealt with Mr. Matheson continued. works to

nationally. he contended. it is the the duty of the nation as a whole to Prince

Control Areas & Other Proiecis Discussed Al Planning Ass'n Meeting

lino-vlucrs 5

Premier Says P.E. I. Not Receiving Fairy Sh-are Of Revenue From Agreements

below thenational average in the In many cases. the Premier said. matter of social and educational these public services were derived services.

POTATO INDUSTRY

Canada's overall trade policy,

great disadvantage of the Edward Island potato in-

Continued on page 2 Col. 6

my in time and money may fall on younger shoulders", Col John- stone said.

CONTROL AREA Mr. Claude Smith. Director of Town Planning believed that provision would shortly be made by the Government for a Control Area 300 feet wide on each side of the Trans-Cands Highway be- tween Borden and Wood Islands The area would be divided into two zones: one with a speed limit of 30 miles per hour and the other at a higher rate. Zone one would be practically on the same basis as the urban area around Char- lottetown.

The controlling measures would deal with sub-divisions. opening roads. road frontage. size of lots. and placing buildings and to some extent the type of structure and exterior finish. other features to be dealt with are delapdated build- lngs, parking areas and sewage disposal. In none two. so one will he allowed to build '

---Israal

..

Arms Deal is Denounced Iy lsroel

By JACK BEST Canadian Press staff Writer UNITED NATIONS. N.Y.. (CF)

Monday harshly de- nounced tha Iarsesnmt under which Egypt will receive arms from Communist Csechoslovakla. She warned that she might not stand idly by waiting for a de- cisive blow from the Arabs.

By implication. Israel's chief delegate Abba Eban appeared to place partial blame for the deal on Russia in his outspoken- ad- dress to the UN assembly.

The Arab answer was given by Ahmad El-Shukairy of Syria. who

" d Israel as a "spring- board of imperialism." He said that Israel "as a state has no room in our lands." El-Shukalry proposed that the Securiw Coun- cil set up a commission repre- senting the United States. Russia and Iran to settle the problem of 1.000.000 refugees uprooted in Palestine.

Dome Macleod Arrives In N. S.

srnrvdv (CP) - Dame Flora Macleod. world chieftain of the Scottish Macleod clan. arrived here Monday for a visit with Cape Breton Scots. A hundred pipers from the Gaelic College at St. Ann. 11.5.. were among the welcoming party at-Sydney airport.

PBOMOTES PILGRIMAGE Dame Flora returned earlier this year from a 30.000-mile trip to the United States. Australia and New ealand. Purpose of her world- his Journeys is to swell the 1: age of overseas Mac- Leods to her home. historic Dunvegan castle. The castle. perched on Skye Week festl ties. Dame Flora sends 10,000 Ch ist- mas cards each year to the Mac- Leoda and often works far into the night in the caslljs fairy tow- er. answering clansmen's letters. Created a Dame of the British Empire in 1053 for her social and -asrvlos in Sootlaxnt,-Dame Fleiii-'U &,lllll chief of the clan

OTTAWA iCP) - Retention of "tax rental agreements with a modification in the basis of fed- u'al.psyments to the provinces we suggested Monday by Pre- IIIII" lick: of Nova” Scotia to the fsthul-provincial conference.

Pldlnler Hicks proposed that the fa! Dotenlial of I province be taken into account es g factor in dOlUInlnl)Ig will! the federal lrnaury pays it direct taxation fields under the

ants.

At present. the rentals are based

population and production,

ill! kof ' offuattltlzw l"'"

, Eisenhower's

DINVII (AP)-A hoqital bul-

ayatemis continued.

Condition

I-w-Remains Satisfacfory

. micr- Refention Of

Pacts With Modifications);

r the lease of

& a combination d provincial

The Nova Scott: premier said that. whether or n V the rum tax poten-

of the president's heart with a half 1 al latlng the a pllcatlon of dollar reporter. line ctauiiiig statutes 0 the mm. 051' MOW-al bulletin. It, provinces to his or its income.

uses sail: ' , pru- "All this should not be discarded pm a

l:0a.m.

lsstn'i'r;to rlaa. nor all! the half hsllrfnln : -At Iatttnse tlon dnwsdah and lined

and the first-woman ever to hold up gvx .'”"a'-'F?'r

gesis Tax Rental

3..

ital factor should be used to.de- termlning” any future formula tor flscaharraagements between the febrai government and provinces. ranrlal. ACHIEVEMENT

"The tax rental agreements." Mr. Hicks said. "Partially achieved the objective of the fed- eral government to secure a min- imum standard of services for al the Canadian people. '

"The oblective will be substan- tially achieved if the tax rental payments are supplemented in the manner that I have suggested.

"The tax rental alreements. in my opinion. have been. favorably received by the Canadian people and should not be discarded up- legs some other plan will achieve the stated objectives in a way more acceptable to the Canadian

people.

"They have eliminated the prob- lem of determining for tax pur- poses the question of residence and domicile as between the var- ious provinces. They have elim- inated for the individual taxpayer and for corporations the problem

without the most serious eon- slderation."

SHOULD HAVE CIOICI Premier Hicks suggested that an

tlmore. Md.. who arrived in Char- lottetown yesterday on his sixth annual ten-day quest of good shoot- ing is planning to write a sports article on Hungarian partridge shooting which he regards as a highlight in upland game sport. With Wallace Rodd. (right) his host at Hlghfleld Court as guide Mr. Van Wyclt is looking forward

Mr.

. x

president I 1 the lteta

Marichsntst Association. retail sales for the 12-month period will be up four per cent over last year's

AUTHOR-HUNTER HERE

Mr. Van Wyck Mason of Bal- to a memorable experience while

here. based on his conclusion that "Wallle" has good bird sense? knows where they stay and how they act. Mason. who is a noted author, expects his latest novel "Silver Leopard". based on the First Crusade. to be released in New York on October 13- --Bnrter's Film Lab.

. V A . . mu...

'0 nu of aalQ..r. .month.o Ju l- creased Si!-per. cent in the'.;AFll.-

A.l-.r.c. Drive

3 Parties Clolm

Victory In Irull Voting

RIO DE JANEIRO (AP)-After a bitter campaign. Brazilians elected a new pt ident in'a re- latively , f ' atmosphere Mon- day. Dispatches reported only two killings.

Gen. Juarez Tavors of the Cent- rist National Democratic Union (UDN) took the lead in the first fragmentary returns.

A count of two boxes gave:

Tavern 728.

Adhemar de Barros. former gov- ernor of Sao Paulo, 694.

Juscelino Kubitschek. a coalition candidate. 407.

Plinio Salgado, of the Rightist popular representation party. 207.

A court "battle loomed to settle the final results.

Supporters of the three leading candidates proclaimed victory for their nominees but results will not be known for 10 days or two weeks. The count starts at noon today and eommunic tluun with remote inter- ior areas are poor.

IN'F'LA'l'l0N PROBLEM

The candidates seek election for a five-year term starting Jan. 31. The major problem for the now ya sident will be the country's in- flaiion.

TREATMENT FOR POPE

ROME (Reuters) - The Pope. who will he 80 next March. is ex- pected to undergo special treat- ment to strengthen his health this month. All u n o if ic t al Catholic source described the Pontiff's con- dition as "fair" but he shows weakness after prolonged work. He will receive a series of tonic in- jections.

Predicts Biggest Year In Mar-ilglme ,R.el-ail H is-fory

hoomlng-Canadian,, 1

The Marl 2 in.1il65 will chalk F5” A or to cu.-nnmcilm

W. ' time than hushercd ' oumgdicu Mrjdftla. alias.- Ill

',vis.sx-

' tations, the record of increases. The Ca-

per cent increase, 16 of die speci- flcd departments showing increas-

the largest gain for the nation for the month with an increase of 36.5 per cent.

lance prvonsinces-.'-eti,ilr.Inah1tainlng gig nsdian average for July was is M

ed sales. Major appliances showed to

E R EVEN

Prime Minister Shows No Sign

Of Yielding

(By Harold Morrison. Canadian Press Staff Writer) ' OTTAWA. (CP)-Prime Minister St. Laurent Mon-

day offered to allow the provinces to return to the direct tax field as an alternate to tax rental pacts. But he showed no willingness to yield to what now looms as the bigger and more critical fight: provincial demands for a bigger cut out of the federal cashbox. One by one, the provincial premiers demanded larger slices of federal revenue, either through direct tax levies or through higher federal tax rental payments.

But Mr. St. Laurent told the opening session of the federal- provlncial conference that though ”our job now is to plan for nor- mal timcs. good times." Canada still has to bear heavy defence costs.

The provinces would have the choice either of renewing the cur- xent tax pat-is which end in March. 1957, or returning to the pcrsonal and corporation income tax and succession duty field.

SAME DEDUCTIONS

But if they went back to direct laxing. which most provinces va- cated in Ottawa in 1941. the amount of federal tax deductions allowed for provincial levies would be only those which now exist: 10 per cent for personal income and seven per cent for corporations.

These are the deductions allow- cd for Quebec. the only province which has consistently refused to rent its tax field to Ottawa. Strangely. Premier Duplessis. while vigorously defending pro- vincial taxing rights. showed no

signs of wanting to make any fu.rther attack on the federal treasury.

He called merely for clarifying federal-provincial taxing powers, simplifying their collection and federal co-operation in reducing them.

But two other of the wealthier provinces-Ontario and British rnbia--pulled no punches:

wanted an opportunity to get back into the direction field

til the federal government yielding ground to prevent tax boosts under higher provincial

lls.

Both I. C. And Ontario propos- ed the central administration continue as the single tax col-

and about two per cent over the ltlssgpeak. He was addressing a special meeting of Island retail merchants in the City Hall last

night.

To back him up are the figures for the first six months of -1855 which point to a higher spending trend. There was a 5.5 per cent increase in all retail sales over the first half of 1954. - For the week ending September 10th. department stores of all types registered sales increases h the Atlantic Provinces of 29. per cent while the Canadian aver- age was only 14.8 per cent. This gain in sales was the second high- I in the whole nation. and was

ten only by the Province of

peat. Quebec sales increased per cent. Ontario - 18.0 per

Manllnbs - l2.l per cent

.,year. nstimated reail sales ial. Atlantic Provinces reached I, (.000. and furnlure. ease, and radio sales lead piride with a SIX months increa A

0! lltlper cont followed by gener

stores with ll per cent. motq Vehicle sales 7.7 per cent, depart-' mgng .19.-ct 76 nor cent. lumber and building materials 7.1 per cent, 'Nl1BlI5' Plnllllnz

Columbia 6.! per cent.

per cent.

aoounu-. SALES .. lerall salts are headed for I record 'and lion. Walter H

element of permanence-by injected Continued on -page I Col. 7

nuance minislrr. declares g M ,g ,-..-.....m--41

renco All

h I.

Alberta with an increase of 27-7 . tchewan - ml per cent an . A g the first six months of,'

appli- the "

3.7 per cent,- pocu-y and ('O!'lhlillllI()ll stores I

Is Planned

SAINT JOHN. N. 5.. (CP)-A membership drive for the Atlan- tic" Provinces Economic Council is being launched immediately. it. whlddsn Ganong of St. Steph- en told the Saint John Kiwanis Club Monday.

Mr. Ganong. president of the flaming tour-province organize. tion. traced its history and. out- ing its. objectives.

a organisation needs more business members to give active support to its aims and bloater

its nnsnolsl resources. be Is" . ltlmtt Nis toloin the four

, vlnces together in an economic unit working to raise the standkd of living in the

4-: ".r.:;.;:e:; no :3: - htr Jill

JOHN? N. 3..- o an Hallway ferry aervle illy of Fundy contlli Vlllh no change If resulting from a

' v irwttlt the Seafarerr

palilies Have Voice

Ottawa if

COIIC g between the '3' (-311 be MOM l- munlclvll '-'0" in . o rodmsllnrllllll xi!” 3.. on practice it 9 game; of the Canadian F d M pad mliliclpll ., as president.

M pig .1... I

of inmate! the APEC. Mr. i

from its Ottawa corrvsrlfwlmi "" Pearson's forlhcomin: Inn in MM ' . cow-the first ainre llhr pg rs ' ' g, . '".M W". by I fa;-gugn mvnlslor

c has a NATO P0)-l'CT"""l ””"'

dated in gm

yoieds closer rein!

in an enthusiastic address Mr. Gilbert termed Canada's outslandr int: crops of grain and produce ”just like money in the bank." Viewing the economic picture on a Canada-wise basis. he said that Continued on page 2 Col. 7

N. B. -Favors

OTTAWA

Ia- Flamming to

clal conference Monday. He also suggested a formula

III. their lack

Tax Rental Agreements

(CP) -- New Bruns-l Id wick favors retention of the part on the difference between 85 Dominion - provincial tax rental cats but with higher pay- ments for the provinces. Premier id the federal-provim

lccfion agency.

Here in a nutshell are some of the prcmiers' views:

Ontario A Federal tax deduc- tions allowed in provinces with pro- vlnrlalttolls are unrealistic. The deductions should be increased.

Retention .

He said this formula. based in

Quebec-Federal - provincial tax powers should be clarified. Central- izaiiou is always found in totalitar- ian countries. Nova Scotla-Tax rental agree- ments should be retained. Pay- ments should be revised with pro- vincial tax potential taken in as a factor. New Brunswick-Agreed that tax pacts should be continued. pay- ments shnuld be higher. Manitoba--Wants the pacts con- tinued but with "substantial addi- tional sums." Brltish Columbia-Put forward various proposals including direct provincial tax levies and reduc- mils and reductions in federal

s.

WANT HIGHER PAYMENT!

The "have-not" provinces- those with lower tax potentials such as Nova Scotla, New Brunswick and Manitoba fav- ored retention of the tax rental agreements but indicated they want higher rent payments. Mr. St. Laurent said that for provinces which went to continue current rental pacts. federal taxes wouldbeleftaatheyare and the central government would pay the provincu the es- timated yield of the standard rates.

Those provinces which

to get back into the direct

field would set federal Jets: those provinces reduced" by standard amount and the

vlnclal governments would (Continued on page 1: col. a)

l '5 EASY

to 'fllR0w Bntclts

But It was SKILL to

BUILD wm-l

wanted

?-all

per cent of the average per cnplta income in Canada and the per capita income in the 'nw-income provinces, would have yielded New Brunswick 310.500.0011 this fiscal year.

Monday. Pravdm me ,.,"i(.g.-,1 gmvrrnnlont newspaper carried a lnniz dlwildlllh

Svrnml

,an the suhirtti "'9 Ci"."'l ' mmuur will discuss with, ' leaders. , a suggested lllesc rmlzhl ions betuovnl

J30.

Prlvlh r sun as saying that

Ih gooey said: "Broad circles Canadian we-wlc retard the idea of strengthen- md widening political. busi- and cultural ties with the

bnotd the Vencntner

Pom-nM's visit benefit Soviet-

"inlngl treat in of

l Indaretandiul he- aed the wee."

E

. tho

mom and Wm M. iiurpoeen in Canada...cauain! I II

whereby the low-income ptovinces Mr. Flemming also suggested a Mg". 31”, would receive a "national adlust- comprehensive system of federal Dawson "mm". 24 40 meat grant to compensate them assistance to the provinces for Vancouver 51 99 p of taxable capacity natural resources development and Victoria ..... a 57 lst-rqact of these source: of rev- that Ottawa take over all com Edmonton 31 5 gang l ' to them. Continued on page 2 Col. 8 Calgary .. 3 55 - 4 Rgsina -. . 3 as . llinnipeg ” 52 - Toronto GI 82 r S O n I Ottawa 3. , Q Montreal : 01