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16 PAGE!

Sharp Division 0n Place Of 0ov't in' Business

By FORBES IIHUDI Press Business Editor

IIAI.-ITAX (CP)-Delegates dif- fered sharply Tuesday over the governments place in business as the Canadian Chamber of Com- merce dug into the first day of its annual meeting.

The opposed views were part of . panel question-and-answer dia- cusslon on "the future relationship of business and government."

said C. P. Fraser. economic consultant. Canadian Pacific Rail- way. Montreal:

"co-operation conveys a note of equality which is not consistent with the concept that the govern- ment is the servent. of the people.

"Any erosion of relations be- tween business and government is due to a misunderstanding on the part of both groups as to which is servant. and which is master."

"CAN'T DEAL AS EQUALS"

D. B. Mansur. president, central Mortgage and Housing Corporation onawa, a crown corporation, re- plied:

"Business and government can't deal as equals because government is the servant of the people.

”Even Mr. Fraser wouldn't ar- gue that the government is the servant of the big corporations in Canada."

other panel members were Mar- tel Faribault. secretary - general, University of Montreal; Capt. Joa- eph Jeffery. president. London Life Insurance Company. London. 0nt.; Maurice Lamcntagne. assistant de- puty minister. department of nor- thern affairs and natural resour- ies. Ottawa.

E. M. Fowler, president of the Canadian Pulp and Paper Associa- tion, Montreal. and also chairman of the cl1amber'a executive council. was panel chairman. and com- ments of the various speakers were in reply to a series of pre- pared questions read by him.

C0-OPERATED DURING WAIT.

Mr. Fowler said there had been unique co-operation between busi- .?-.n-n..n.:.ns:-

Predicts Return Of it-abor Gov't

NEW YORK. (AP) -- Herbert Morrison. former .1.abor foreign secretary of Britain. said Tuesday on his arrival from London he foresaw the possible return of his party to power.

"As things are there is a very real chance for the return of the Labor party after the next parliamentary elec- tions." he said. "Things are mov- ing in our direction."

Coming Events

"Barn dance St. Andrew's hail, Mt. Stewart at 1.

"Regular Dance Crapsudf Rink. Wednesday night.

"Dance. Koay Hall, Georgetown, Wsdnuday. October 6th.

"Cardigan Chicken supper. Oct. llth. Dance after.

"Hot Chicken Supper and Bazaar south Rustico Hall. October 27th.

"Buying and cleaning timothy daily. McGuigsn & Boyle

"Lot 65 Hall. Oct. 7. Dolron's teen.

"Bern Dance at Clair Dunphyks. Peakes station. Friday. October sin

"We are buying daily. Paying markct J. MacDougall. Vernon.

"um Paquet Jamboree in st. Cleorgele Hall. Thursday, October 7th.

going. I think

dance Thursday. Orchestra. Can-

Island grain prices. E.

"Concert and Dance in St. Peter's Bay I-fall. Thursday night. October 7th. Don Messers Island- era.

"Dance. West Royalty Hall. Wednesday. Rollie MacKenzle'a Orchestra. Canteen Service. 0.80 to 12.80 Standard Time.

"Dance. I-lowattb Warehouse. North Wlltshire. many. October 8th. Music by Rollie McKenzie Orchutn.

"Hear Colonel Johnstone talk and show slides on his old world tour in Long River hall Monday evenlng Oct. 11.

"Attention Farmers your sec- ond crop of red clover is valu- able for seed. Ibr information contact I. W. Johnatone. Ken- llntfon.

"Notice - Custom Grinding. Tuesday. iith and Friday eta oct- Obef. Following week shutdown for term. signed P. 1.. Morris. Feed ervice, Kinkora.

"Texas Ralph and his Augus- tine Cove Skyllners will be at Bonahaw Inn Thursday. Oct. 7 at 3130 9. . Dance after. Admission 40 and 25.

"Abegweit iv. B. 9., Kingston. Thursday. October 7th. ehenge of date to enable Iuv.'.f. It. skinner toattend a cordial invitation ex- tended to Pipette, and Bo.-deque Pfecgptiang, p 'i

Maxims of 5'

The mistakes of Ra humd

s

ness and government in Canada during the war. He wondered. as the country grew larger. if this relationship were weakening.

He wondered. too, whether busi- ness men got their thinking "a

little twisted" when they spoke of "government intervention." (Continued on Page 0 col. 1)

Is Re-elected

...lIN'I' JOHN. N.B. (CP) - Sir Brian Dunfieid (above). chairman of the planning commission at St. John's. Nfid., Tuesday was re- elected president of the Commu- nity Pianning Association of Can- ada. Two vice-presidents completed the executive elected at the as- sociation's fifth annual conference here.

They are J. L. McVi'ttie. I-Iailfax, director of the institute of public affairs at Dalhouaia University. and Charles E. Campeau. assistant director of the planning depart- ment of Montreal. It is Mr. Mc- Vittie's first term on the national executive. Mr. Campeau was re- elected.

Dr. Albert Rose. Toronto. chair- man of the Ontario division oi CPAC. said as nomination chair- man that this was the first time the national council oi the associa- tion his had two official delegates -from -each of the 10 provihbisi CPAC divisions. "I

With a full national comple-I merit. Dr. Rose told the 15. con. fersnce members. CPAC no"lnhger has the right to select its council members at large from the coun- try. This was the way it first ob- tained the servicm of Sir Brian. H. Newfoundland Supreme Courti justice.

MONTREAL (CF) --The long. awaited judgment in Montreal's sensational vice inquiry will be handed down Friday morning, it

i a

x-

The Guardian was advised last evening by Mr. D. A. MacDonald. chairman and manager of the P.

- E. I. Potato Marketing Board, that

at a meeting oi Board members yesterday it was agreed that the Board's proposed marketing plan for this season shall be held in a- beyance until such time as the re- sult of the Government's proposed plebiscite on the matter shall be determined.

"It was also agrz-ed." Mr. Mac-

LICENSING ON LAST YEAR'S BASIS BUT MARKETING PLAN .IN ABEYANCE

Donald slated. "ho price control of any kind would be exercised by the Board until the declared wishes oi a majority oi Island pro- ducers becomes known, because in the opinion of most of the Board members their proposed marketing plan is "the only alternative to no market price control at all.

"In the meantime," he added, "the Board's licensing programme on a similar basis to last year's

. Founded 1312- cnannorramwu. oaivana, wannasoay. ocronan o, 1954

'43;

erous fiscal agreements with day as likely from

with I federal suggestions

tax statute. .

A possibility. the prime minister indicated after the meeting. is that the federal government would cul- lect for the provinces income taxes levies by them. though this would

will he proceeded with without further delay."

not I ecessarily mean the taxpayer would be called on to pay more.

BECOME FULL PARTNERS

IN COIQMBO GROUP

By HAROLD MORRISON Canadian Press Staff Writer OTTAWA (CF) - The 14 Asian

and Western Colombo Plan power: Tuesday granted full membership. in Japan and Thailand, extendingl Hid economic plan's influence intoi a broad geographic are facing the' belly of Communist Asia. Opposition to Japan's ontry as a: donor country disappeared wheni Indonesia's foreign minister. Dr. Sunario. announced his govern- ment would not oppose.the move "because we like to show our good will in international relations." Thailand. nestling between Cam- bodia and Burma. has been an ob- server country since the six-year. 55.000.000.000 plan to industrialize. South and Snutheail Asia was con-I ccivcd four years ago. As an ob- server country FIN? ncitlicr rc- ccivod nor cxtcndcri aid to her neighbors. What she is to get. has 319! in be decided. The Philippines is the only other observer country.

TECHNICAL AID ONLY

It may all boil down in a need for increasing Wcstcin contribu- tions since Japan, as a donor coun- try, will initially grant only tech- nical aid. but no money. Canada provides a 325,400,000-a-year al- location used mainly to aid Ceylon, Pakistan and India.

The whole issue of Canada's aid

Japan, Thailand Join Plan

sent to Japan's admission afteritries.

speaking to his prime minister in

lie felt the war crisis in Asia-

Indonesia by long - distance f.e1- has definitely eased and as a tin

ophone. said he will urge the Co- and lombo Plan countries to support a might be able to

rubber producer. Indonesia increase her

further reduction in restrictions on trade, for example. with Red China

trade with the Communist coun-

.if the restrictions were reduced.

Satisfactory Progress On

The three sub-grading Jobs on the Trans-Canada Highway be- tween the Queen's-Arms and a point just. west of Bonshaw, which are rapidly nearing completion. constitute the heaviest earth movement cvcr undertaken in this Province mid mark an achieve- ment which rcflcrls much crdit on the--firms involved. - I

Thevlevcliing of I-hills and the buildlng..up of deep hollows. with the widening of the highway to standard, as required on this im- portant route ofutravol. has chang- ed portions oi the highway almost -bl-mild recognition.

In many places buildings have been moved baclg to new locations in order to make room for the broadened new,. highway and to eliminate turns. which would

and whether it should be increased likely will be taken up by the cab- inet today.

was announced Tuesday night.

Dr. Sunario. who gave his con-

Cheers of 10.000

By WEBB Mcl(INLEY

T9-IESTE (AP)-The cheers of 10.000 citizens massed in a great W'"""'0m I Ci u a r e proclaimed Tuesday that Trieste is Italian again.

The citizens gathered in Unity Square of this port. city to r joice over the announcem nt in L nclon that Italian and Y goslav diplo- mats had initialled an agreement VIIVIGIDK the disputed free territory of Trieste between the two coun. tries. The emotional outburst here carried a note" of relief that the ion: quarrel which sometimes threatened to draw Italians and Yugoslsvs into A ihooting war was over. "

In Rome. the Italian Senate stood solemnly as Premier Marin fcelba announced with deep Icel- ng:

"After 10 years. the Italian flag again flies over the tower of the city of Trieste.”

A singing. flag-waving crowd of young Italians paraded rinwn Rome's main street Tuesday ' hi. celebrating the settlement. SIC..- wiise. Italy remained surprisingly ca m.

REASONABLE COMPROMIDE

In Belgrade. President Marshal Tito's Communist government termed its agreement with Italy "a reasonable compromise" in the interests of improved Italian-Yugo alav relations and world peace. The Yugoslav people generally-as the semi-official news agency Yugo- preaa put it-received the settle- ment "without enthusiasm."

But the rejoicing among Trleste'a 200,000 residents. mostly Italian. was not restrained. Green. white and red Italian flags. includ- ing one 00-foot banner. decked the city in preparation for the arrival today of Mai.-Gen. Edmondo dc Renal. the new Italian military governor.

A message from Mal.-Gen. sir John Winterton. commander of the British-U. S. occupied zone A of the Trieste territory. announced to the citizens in Unity Square that the diplomats in London had fin- ally agreed. Their compromise gives Italy virtually all of zone A. inciudin this strategic city. while the ugoslava get zone B which they have been occupying.

Wfntorton said there would be a "short period" before the 3.000

American and 2.000 British occu-

Trieste Once More Italian City

. an eight-day session here today.

Citizens . Prociaim

potion troops pull out and before the Italian administration can take over fully. The changeover is ex-

pected to be completed by Oct." 1.

Winiertnn said he will remain in full command of zone A for the interim period.

TRY FOE TROUBLE

While most of the citizens cheered and waved flags. the Com- munists tried in stir up trouble. They distributed street pamphlets urging the people to ”continue the fight against partition of the free territory between Italy and Yugo- slavia."

The compromise settle in e nt hammcred out in London under the watchful eyes of British and Am- erican diplomats removes a ser- ioua source of trouble for Western defence. '

TORONTO (CF)-The 19th bien- nial conventior. of the ' United Lutheran Church in Canada starts

It will be the first time the group

otherwise be a menace to safety. All the curves and contours have been taken out in the Queen's Arms area along with the bottle- neck small bridge arrangement. and the whole brought to a level open space where the roads con- verge. Although the North River Road has been paved from Dou- sea' bridge to the Arms. a by-pass road through the east side of the Beach Grove area is being widen- ed in preparation for the traffic which will be diverted at this point while the new highway is being paved early next summer. This road enters left at Douses' bridge and skirts the new Drive- In Theatre. striking the highway again at the entrance thereto:

indicted For Manslaughter

NEWCASTLE. NB. (CPI - A circuit court Tuesday freed Ayimer Glidden. 50, of a murder charge but indicted him on a manslaugh- ter count. He was arrested after his 40-year-old sister. Mrs. Archi- bald Ruueli. mother of II chil- dren. died of a knife wound last June.

Glidden escaped from the county Jail her: July 22 and was captured after a two-day search. He was then lodged in Jail at saint John and brought back to Newcastle

has met here.

Saturday.

grand Jury in the Nor-thumberlandi

P.E.I. iiighway Projects

l From the Queen's Arms in the icauseway crossing of North River. ithe highway has been sub-graded iin readiness for paving when con- ditions warrant such finish being applied early next year.

Nonru iuvfm causawax

Probably the most, advanced step in modern highway construction is to be seen in the North River Causeway and the effect its suc- cessful completion will have .n

(Continued on Page 15 col. 2)

I Hurrltaiie Hazel Repiirled Tuesday

MIAMI; Fla. (AP) - Hur- ricane .I-Iasel, eighth of the season, blew up Tuesday near where the Caribbean meets the Atlantic. some L800 miles southeast by cast of Miami.

Reconnaissance aircraft lo- cated the hurricane about so miles east of Grenada and 00 miles north of Trinidad.

The storm had winds of 00 to 95 miles on hour within 25 miles of the north and cast of centre and guics about '15 miles outward.

If the hurricane continues its present course, a weather biir- eau spokesman said. it would pass near Puerio Rico. but at its present rate would not reach them until late Thurs- day or Friday. It now is some- 500 miles southeast of Puer- to Rico.

Killed En Route To .Brotl'ier's Funeral

HOULTON. Me. (AP) - A '10- yesr-old I-Ioiiltnn business woman was killed Tuesday on the way to her brother's funeral when her car plunged off a ferry into the St. John rivcr ht Fredericton. NB.

Officials here said they learned to! Mrs. Emma Boone's death from ilhe RCMP at Fredericton.

She drove onto the Kcdgwick fcrry at Fredericton and a few seconds later her vehicle shot overboard. Her body was recov- cred.

Everybody A

(By John LeBiano. Canadian Press Staff Writer) MONTREAL. (CP)-Federal proposals for more gen-

the provinces emerged Tues-

a meeting between Prime Minister Si. Laurent and Premier ,Duplessis which revealed a newly- modified Quebec attitude on its controversial income tax. From the closed conference came also an evident eas- ing of Ottawa-Quebec hostility on the tax issue and the likelihood of an early federal-provincial conference to deal expected to follow changes in the recently-enacted Quebec personal income

expected

.

This developed. Mr. St. Laurent said, from Mr. Dupleaais' state- ment at the two-man conference that he intends to propose amend- ments to the 1954 enactment im- posing a provincial income tax amounting to about if: per cent of the federal tax.

BASIS FOB. COMPROMISE

Up to now. the province has sought unsuccessfully to have the federal government allow the levy to be fully deductible from the taxpayer's federal liability. Mr. St. Laurent suggested Tuesday's meet- ing founded the basis for a com- promise solution ihat could be ex- tended to the other provinces.

The prime minister told report- ers he thought. Mr. Dupiessis' plan- ned amendments would let the fed- eral government propose some modifications in the tax - rental agreements generally. which now are in effect with all provinces ex- cept Quebec.

Any terms reached with Quebec. be said. would have to be ex- tended to all other provinces that wanted them. Mr.

agreed to that. .Premler Duplessis would not give details of his discussions-

saying he would report to his cab-

ing "cordial and very satisfying" and said it could lead to a fod- eral-prnvincial tax conference.

FEIIIDING FOR. YEARS

”Fr'iendiy and cordial." was the description of Mr. St. Laurent, whose administration has been at odds with the Union Nltlonale gov- ernment for years on tax and other matters and who opened fire on the Duplessis administration with an unexpected blast Sept. 18.

As unexpected as that attack was the sudden Sept. 30 decision of the feuding leaders to get to- gether personally after a lengthy period of long - range sparring.

(Continued on Page 2 col. 6)

Bob Hope To Quit Paramount Studio,

HOLLYWOOD. (AP)- One of Hollywood's biggest money-making co binatlons is about to split up.

aramount Studio said Tuesday Bob Hope": exclusive contract will end after one more film. Iiis ago-,nt. Louis Shurr. said the comic would not sign exclusively again.

During most of his 17 years of. Paramount. liope shared with his pal Bing Crosby the position of

"Pale-Face" and two of his "Road" pictures with Bing gross- ed 34,500,000 apiece in the U. S.

Duplesaia had!

the studio's big theatre draw. Hisi

Covers!-

Prince Edward Island Like The. Dow.

PRICE do

More enerous Tax Agreements With Provinces Believed Liltelyi

Finds Quebec

Quebec potatoes for sale in Island" stamped

Charges that are being offered "Prince Edward

bags have been made by Mr. E. II. Ellis, senior fruit and vegetable inspector, Department of Agri-

culture. Charlottetown Mr. Ellis. who for the past two months has been posted on "des-

tination inspection" at Montreal, states that he saw truckloads of allegedly Island potatoes being

distributed to the retail stores oi

.that city. when no potatoes had as gvet been shipped from the Prov- ince. Mr. Ellis explains that the law cailingiorthe use of new bags which applies in Prince Edward Island and New Brunswick does not apply in Quebec and that. buy- ers there are quick to take advant- age of this situation.

As a solution to the problem. Mr .Eliis makes an alternative of two isuggestloils: (1). That shippers re- ! frain from using stamped bags for . potatoes destined to Quebec points

and substitute plain bags with tags Ionly attached. (2.! That the potato :agencies in the Province employ a. iman who would be responsible for seeing that the Island product 1.3 not misrepresented in other can- adian centres. Another practice which met with the disapproval of the Island in-I lspector was the manner in which potatoes from PEI. were handledi in i'cgard to "condition" defects. developed in transit. : I "Potatoes." he says. "shipped to lMontreal from the Ontario or British Columbia market are con-I

inet today-but he called the mect- signed F'.o.l3. the shipping point.Immm concerned with such vim.

jwhile the general rule here is to ship them F.O.B. the destination.

.4;

IKaiser To Open Ar ilnaf Plants I

BUENOS AIRES. J. Kaiser signed a contract early Irueaday to manufacture can. atrucka and jeeps in Argentina in partnership with President Juan D. Peronis government. ,

The American industrialist will invest 310,000,000 worth of machin- ery, representing about one-third of the capital. in the new company. He will manage the manufacturing for the company. to be owned by and Argentine. private investors. himself. the Argentine government

For Kaiser. the deal permits him to manufacture automotive equip- ment in Argentina, which is starved, for cars and trucks-and with ma-! chinery he owns in the Uniiedi States. This machinery is useless to him in the U. s.. where the auto market is over-supplied and the independents are being squeezed by Ford and General Motors.

For Peron, the agreement repre- sents the first big industrial in- vestment under his plan to attract foreign capital. make Argentina industrially aeifoufficient. aid the country's lagging economy.

iAPi -- Henry

A potential market for Island farm products has been tapped in the Seven Islands and the iron ore area of Labrador, when during a visit of Hon. Eugene Cullen. Minister of Industry and Natural Resources to that area. he was able to contact several firms who will require Island potatoes this fall along with goods which this Province has to sell.

To carry out the Island's com- mitments. Mr. Cullen's department

has chartered from the Minna

NEW YORK (AP)- The Inter- national Longshoremen's Associa- tlon, which pulled its 25,000 long- shoremen off the docks Tuesday in an oldtime display of power. Tues- day night agreed to consider a new offer by the employers.

But the strike, which caught 71 ships in the world's busiest port, was not ended. although ILA pres- ident Capt. Wiiiiam V. Bradley said he hoped for a quick settle-