FRENCH PREMIER VISITS WASHINGTON "

Nlw YORKEI-trench Premier national Airport Monday on way Mollet, who was accompanied by left, and Richard C. Patterson. am ilivllcl, Center, wearing glas- to Washington. D.C-. for talks with Foreign Minister Christian Pinesu Jr.. head of New York Mayor

u . mi-.s lineup of micrphones on President Eisenhower about Mid- right. were Herve Aphsnd. French Wagner's reception committee. a; ..u-rival at New York's Inter- die East crisis. On hand to greet Ambausfor to the United states.

Judgment Favors Mining Co.. In Municipal Tax Question

i'.lll()NTO (CP) E An Ontario 5'. . Court judgment in a tax I pure between International M iii Company anti a Sutlbury r'l I:'lt'i tuwnsliip was termed "sig- ru Willi to mining in Canada" by J 'l' Weir, Q.C.. of Toronto, the Cl inp.'iny's solicitor.

'llw case, decided in INCO's I.'”ul'. concerned a new plant in ll.irrs 'F(lti'iisli11). near Sudliury, iizrli uses it new process ti re- mrr iron in commercial quanti- lw (rum hitherto vnlucless orc. It was rcgnrdcrl by the com- as 2: ”r-oncentrntor plant." I" mnu properties on which these p..l:'S are built are exempt from l.liIiIt'II)i'II taxation under the As- . .ncnt Art of Ontario. 'i(ill.VSilIP VIEW

ii A inch. solicitor for Waters I-Illiillll, .'if'LllI0(I before Mr. Jus- x.. Ililiillil wells that the new ,..

I u1-. not it f-oii('rntrator but I ni IIii' inilu.xIri.'iI tlccllon of '1 ,.mi thus normally subject In wvnnt-iiml tnx

iuvr hcnring testimony of two

expert witnesses and legal argu- ments. Mr. Justice Wells ruled that the iron plant was a concen- trator and th eassessments made on the property for the last two years must be struck from the taxation mils of the township.

The 1955 assessment. including a 60 - per - cent business tax, amounted to S4&l.000. The 1956 as- sessment, with business tax, to- talled t2.880.000.

Mining companies in Ontario are required to pay taxes to the pro- vincial government on profits from mining operations.

The Waters Township case was based on the contention that the province collects mines profit taxes only on that portion of 1NCO's operations from the mine up the concentrator. The town- ship wanted to tax the remaining operations which it termed lin- dustrial."

RULl'-JD FOR COMPANY

Mr. Justice Wells said: "The ore obtained by INCO contains many metals. nickel. copper. iron

mixed with sulphur and some quantltities of gold, silver and platinum.

"In the concentrator the ore from these metals is separated. but it was not possible to recover iron in a profitable form until the new method was put into opera- tion in waters.

"The purpose of this plant is to produce an iron oxide comparable to iron ore found naturally in the ground and has the same func- tion.

"By the new development oi chemical research it is carried on ir the plant in question.

"In my opinion that is not manufacturing iron ore. It is simply taking ore and removing impurities to a point wher alt can be sold. There is no market for ore when it is a nickel-bearing iron sulphide is to encourage

"The purpose of this section of the act (Section 38. subsection to perfect the ore. That is why I believe concentrators are exempt from taxation." Mr. Justice Wells said.

INDIANAPOLIS (AP) - Mr! Elia Una Belles. 90. an aunt by marriage of British Prime Min- later Macmillan. died in hospital Tuesday.

Britain Plans Nuclear Sub

LONDON (Reuters) - British plans to build a nuclear-powered submarine similar to the United States Navy's Nautilus were an- nounced Wednesday.

The Vicirers Nuclear Engi- neer Company said they are en- gaged on an admiralty project to design and develop nuclear ma- chinery for installation in a sub- marine.

The company, formed by Vick- ers Armstrong. Rolls Royce and Foster Wheeler. said it in develop- ing a propulsion unit based on a pressurized water reactor.

TEETH TAKE PRECEDENCE FRESNO, CALIF., (AP)-A pas- senger train was delayed 20 mm- utes Tuesday because the engi- neer sneezed ao hard his false teeth flew out the cab window. The Southern Pacific's San Joan- quin daylight was moving up- grade. Engineer William J. Franey. 60. Los Angcles, ground the train to a halt. got out and hunted in vain for his wayward teeth.

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Iy ronnns IIIUDE from Inaiaeas

Editor

would it be possible to work out

a formula for avoiding both inna-

tion and depression by a system

of compulsory savings at rates

that would go 'up and down with the cost of living?

This thought arises after read- ing an article by Prof. Walter 3. Harvey of the University of West- ern 0ntsrio's department of pout- ical science.

Prof. Harvey reviews some of the pros and cons concerning the cause of inflation and conclude.

"In a free-enterprise economy the only way a great investment program could be carried through without inflation would be if peo- ple would save an amount equal to the total amount being invested.

"if we saved the increase in our incomes. if we spent no moire on consumer goods than we used to. the demand for consumer goods woud not increase and prices would not rise.

"And the increased savings would be avaiiabe to pay for cap- ital goods which could then be it- nanced without an increase in debt. i.e., without the creation of that extra monetary purchasing power (new money borrowed from banks) which permits inflation. CONSUMER RESPONSIBLE

"Who then is to blame for the rising cost of living? Not labor and not the business man as such.

but an of us who buy unnecessa ,- consumer gooda instead of sev- ing."

In advocating saving - IPPII" ently on a voluntary basis-Prof. Harvey backs up the advice of our monetary authorities and char- tered banks.

However. he puts a more defin- ite tag on spending as the cause of inflation. and saving as a pre- ventlge. than do most others.

Let us. for the moment at least. accept Prof. I-iarveyis premise.

Then we may ask ourselves, can a formula be devised by which savings would automatically rise when prices rise. and savings be freed when prices drop or a re- cesslon threatens?

FORMULA POSSIBLE

Such a formula might indeed be envisaged. It could even be ar- gued that it might be a logical per- manent part oi government bud- getting and have a softening effect on the operation of other govern- ment monetary controls.

It would. however. probably in- volve compulsory savings-a sys- tem used in wartime - and the cost-of-living index.

Given compulsory savings. such a formula might provide that for every point-or so many points- that the cost of living index went up. the rate of compulsory saving would be automatically i ': and for every point - or so many points-that the cost-oi- Iiving went down. these accumu- lated savings would be automa '- cally freed. Probably a once - a - year adjustment would be suffi- cient.

Carrying the idea further, if de- flation or recession or depression developed to the point where the country's money supply became abnormally low. one could even envisage the government giving money to the taxpayer at certain levels rather than collecting it.

This would be using deliberate and direct inflation to combat de- flation. It would be putting pur- chasing power into the hands of the consumer directly. rather than indirectly as was tried with doubt- ful success during the depression of the 1930s.

COMPULSORY SAVING!

I-iowever-because we do not ex- pect depression Just now-let us roturn to compulsory and auto- matic building up and freeing of savings.

The most apparent manner in which this could be accomplished would be through the income-tax structure.

Many will think this is a hor- rible idea and perhaps it is.

However. there are other hor- rible ideas which are more than theories. -One such is called "siph- oning oif" of buying power. Under it, the authorities of the day any. in effect. to the taxpayer:

Report Shady Practices In Flour Exports

OTTAWA (CP) - Federal trade officials said Wednesday they have reports that some Canadian flour exporters are filling orders with low - priced United States flour packed bin. sacks carrying Cana-

dian .

They said this practice. alleg- edly then ever the year. is interfering wt of Cana- dian-msdo flour. Exports of Cana-

Prci. Harvey Says Should Equal investment

frornyouthanweneedbutwe must continue to collect from you because if we let you

keep the money you will hurt the country and yourself."

Thursday. Feb. 3.1957 The Glnrdlan Page 18

rm toheaveasisIIotrollefwburadiobaminT&i. D "9 Ru” the W-foot raft. the Tahiti Nui. PARIS (Reuters) - A Pgng Cllbtained by Eric 49 Ilsocbqp. druggist with a home-built rldla Wvearold French sea adven- trsnrmitter and receiver is keep-I "INF. reaches the Valparaiso ing daily track of a bamboo raft! co-It early next May after I voy- driftlng eastward midway in nu: age from Papeete. Tahiti. South Pacific with five men. two; For the last month. because of "15 Ind I J71! aboard. bad atmospheric conditions. Ja- Ken The chemist. Andre Jacob. saidi cob's messages to the en the Wednesday he will be the iirstlhave been relayed through

'Kaope Track Of

Saving

"We are collecting more taxes

them

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