1

\

Federal dAid 0n Fiscal Need Basis Urged By Mr. Bracken

Lustig- Sentenced To 4-year Tenn

___

NEW YORK. July i0 - (AM- Henry Lustig, president of‘ the Longcharnpl restaurant

a four year vlction on c urges of evddlns pay-

ment of $2,872,700 in federal income m

taxes.

Judge Harold Kennedy also Jned

Lustig 0115.000. E. Allen Lustig, nephew of the restawitenr,

o! New York, today was sentenced to_ rlson term on his con-

(By The Canadian Preu) OTTAWA. July 10—-(Ad.v Progressive

the Federal Govemn-rent/s propos- to establish new relations with e provinces on an _ basis. Such a policy. he said, would lead to iilwill and dis-imity. - Liberal Government also had failed to accomplish effective reconstruction and in budget had offered only minor tax duotiona which were but political propaganda as far as this Jan is concerned." Mr. Brack-

The lConservative Party on Dominion- Pmvincial relations was that there

drew a three-year should be ldflillflbe R0681 81d 0n

prison term and Joseph Sobel, chief the basis of flwel need w lhB

accountant for the chain, was sen- tenced to two years imprisonment for their part in the alleged con- rpiracy.

Lloyd Paul Stryker. chief defence counsel. gave notice of a peai and the defglilrliants remained rec under

Coming Events

"Talkies — Crapaud Saturday. "Talkies — Cancs Cove Friday. "Movie; Lt Victoria Sdnilhfl.

" , lbs-buns Hall. Friday. July 12th. Burke's Orchestra.

"Concert Kings... Hail, Fri- day. July 12th. If not fine. Moi-day.

Dance and box social Rowe's Hall Brackley Beach. Wednesday, July 17th.

"Our Feed‘ Wharehouse ‘will close every Saturday at noon. Mc- Guigan d: Boyle,

“Regular Rosin-till Dans

, Curl- ingRink, Montague ever euesds

and Saturday. b-xfi-tlThut .

"The Salvation Anny will corn‘ duct an open air service at Mur- rayMRiver Friday. July 12th, at S

“Expect cars whole Barley. S

CW Oats to arrive soon. Better stock . booking orders. Live- stock arketing Board. '

"All is-sesrIii m. upk Fredericton t nth on Friday. Jifilwlcflmgynt‘ for tie:

of cleaning in). N. S. J. urray, Secretary.

"Loading Hogs at M in march ennui’ - - n l7 i-BS-ths-ssi ti

...'.§“"°'“i....... ‘.‘.¥§i.."..'.’"5°.'..f‘i. Fraser Lid. Merlir; kw. "loading Hogs at Clffllfi! Sta- stati n Each Thursday tor via a. td Nqflnnn MOKBnITO. Car ' --..' q 3f... gar"! . Glob‘ . roe: 1o srfiiib n‘ Roadie Pr it < 1 ° I F“! , a-is-jis-fr-ne-sac

'9 July 11.x». “us, Sealants“ at. n. and sad

m‘ Gilly.

Qsilcntidt

There was need for

provinces. Government to

thc Dominion ‘modify its ‘sttitudf’ and to open the way for a settlement by further consults- | on.

Two Dangers

"The bdiinissr of Finance now indicates that the Dominion will approach the pepvin-ces one-by- onc." Mr. Bracken said. "There are two dangers inherent in this method. The first is that it. is a Balkmiization procedure. The oth- er is that it substitutes coercion

dor conference and dictation for

consultation. "One of its chief weaknesses is

i

P

strengthened by federal aid; policy in the economic field not -of rationed scarcity but of full lproduction of needed goods.’

. lvir. Bracken said there had been [failure to accomplish "effective weconstruction in Canada. _ ‘ The government's post-war Bd- ministration had failed to obtain ‘maximum production oi needed goods and had lessened incentive and destroyed initiative. Shortages ivere apparent everywhere.

;Protests Against I Gazette Editorial

. OTTAWA. July l0-(CP)— Benoit Michaud (L \ westtgouche-hfnda- waska) protested today in the Com- mons against an editorl-al ill ‘the Montreal Gazette which he said criticized members of Parlia- merit for absenteeism from the chamber.

Bishig on a question of prlwlese. .Mr. Michaud said the editorial. r9- lferring to speeches being made to

“empty seats” directed criticism at the members “without Justificnti-on." ‘He laid the newspaper's reporter apparently was not aware that ,many of the members on the occur- ion mentioned were attending a "very large and important" com- - mltteo of the House.

sat u,

fMilk Dealers May

, i-Q-thupsag u.‘

Loss iiuatcmers V

~___

By FRANCIS I. KELLY

WASHINGTON. Julv l0-iA.P)— By voting s1 to s1 to exempt milk and dairy products from price wri- trols-if and when they are re-

once)- Con- tcnimt criticized

individual

the recent "no thing

policy od the Progreslvc

"uncomprisingly rigid

The Pe ‘s ap Covers Prince Edward Island Like the

Read by Everybody

Dew

Budget Seared 0n Many Grounds In Parliament

By GEORGE KITCHEN Canadian Preea Stat! Writer O’I.'I.‘AWA. July 10—(OP)——A

flurry of Opposition charges that the government's budget policies would discourage farm output. handout! business and liamst

the pcssibilltiu o! employment today headlined an otherwise coi- orless Commons budget debate.

A quartet of Opposition speak- ers-two Progressive Conservative, one 0.0.1“. and one Social Credit -held the floor in the abbreviat- ed Wednesday sitting and bespoke criticism for the decision to tax co-operatives and the failure to do away with excess profits taxes and provide higher taxation ex- emptions for low-salary earners.

The speakers were John Diefen- baker (PC-Lake Centre). J. A. Ross (PC-Souris). T. J. Bentley lOCF-Swift Current) and Robert Fair (SC-Battle River).

Labor lvtlnlster Mitchell inter- rupted the debate briefly with the surprise announcement that the Government has appointed a con- troller to take charge of three steel plants threatened by strikes.

Earlier. Prime Minister Macken- zie King announced receipt of an invitation to the Government to send a Canadian delegation tothe peace conference in Paris July 29 and said he hoped to be able to make an announcement tomorrow on the delegation.

Justice Minister St. Laurent announced the flnal report of the Royal Commission on espionage will be ready for tabling in the House at: “a very early dile-

In the Budget debate Mr. Dief-

0n Price Ceiling

OTTAWA. July 10—(CP)—Lahor Minister Mitchell, in an a peel for" support from organized abor iin supporting price Controls. 10' day intimated indirectly that wage increases u to l0 centa-an-hour might he plowed without endin- gcring prices. ‘ The comment was contained in s telegram sent to Pat Conroy. chairman of the Canadian Con- gress of Labor wag-e committee, which Mr. Mitchell read to the Commons after announcing gov- nrnmcnt control of the basic sicel industry.

“It is the considered opinion of those bc-st able imparliullyio assess the present economic sit- uaticn in Canada that increases in wages beyond l0 cents per hour and in some instances less \vrll force a break in the price ceiling," Mr. Mitchell said.

"It will be appreciated that Can- ada at the present time is golnu through a very critical period. If there is too great a strain placed on wages It will have a disastrous effect on the whole price struc- ture."

He referred to the effect of ab- andonment of price control in the United States and reports that prices had advanced 12.7 per cent.

"Those in the bost position to judge state most empirati-cally that wage increases beyond em amount considered just and reasonable cannot be made effective if price control is to be retained," he said in the wire.

"It is my hope that all labor leaders should see the wisdom c-f using the machinery provided by the wage control order as revised rather than resort to threats al strike md strike action."

Affirmative Malerltiss in Polish Referendum

vived--tha United States Senate today attached t0 the Office of Price Control extension bill an- Qfiflwflhylflll-AOH to, President Tru- 'to the measure. , A couple st hours earlier it land

I "“".':£..."‘:1:i’“$i% °'

ducts

. ism poultry o pftlaubillihiesda yl

WARSAW. July l0 - (AP)- Semi-olficial returns from Poi- and's June

referendum showed today that submitted

ta three questions to the voters had been carried by affirmative majorities of more than two to one. Concerned principally wrth the Policies of the Moscow-born IE1; l

2. Do you approve of the pro- ‘vislonal government's nationaliz- aticnlcf ‘mule iaiduatfilloa l asraraa cosun srw c arse estates any: I911; up and psrcellsd .0 t to peasants

' v0 of the estab-

he's

he illd

F

Russia Opposed To Destruction 0f Germany‘

Mslstav list In Fsvar 0f Transformation 0f Belch into An Agricultural Country

- (By Joseph D )

PARIS. Jug IO-JKIPuTE-Forclgn Minister V. . Molotov of Russia tonight urged immediate creation‘ of central administrative agencies for Germany lookivng toward .1 cen- tral man government with which the Allies could sign peace treaty. and o posed any dis- memberment or ederallzation of tiara, Reich. an American informant

He declared Russia did not be- lieve erther in the destruction of Germany as a state or in its trans- formation into an rather than industrial country.

F°F9ign Minister Georges Bid- sult, of France, however. declared France would discuss centraliza- tion only after Germany's bound- sries have been fixed.

M. Bldauit also hailed as a bul- wark to European security the American-proposed fi-yesr treaty to insure German disarmament which the Russian minister critt- cized sharply yesterday.

MP- Molvtflv. in a three-hour debate within the four-power council on the German problem, said proposals for the dismember- ment. of Germany were based up- on an idea of destruction ‘of the German state which the Soviet Union could not accept.

The Allies had no right to im- pose these ideas upon the German people. and the Soviet Union did not believe that revenge was a 800d guide to policies on Ger- many and Russia did not favor rts destruction as a state, or the mak. in: of Germany into a mere agri- cultural gcou-titry.

as it was to say that the German people had no responsibility at all for Hitler. He, himself, was Oppos- ed to depriving Germany of such an important industrial centre as the Ruhr.

The Russian minister

urged a iQUF-POWer inter-allied

control

vent the revival of its war indus- tries and said the Soviet Union wanted to be certain that Ger- many remained completely @115- armed. both in a military and an economic sense.

_On the matter of a central ad- mmistratlc-n for a unified Ger- man economy, M. Bidault e. iterated French insistence Lint German boundaries should be settled before such matters were discussed.

There could be no question for the moment of a central German government. and "as for the cen- tral administrative agencies so widely discussed, the French gov- ernment as it has always said, is ready to discuss these as soon as the territory of Germany has been fixed."

He said a central government might be set up much later, but only after the various German states had been firmly establish.- eii-and then only as a confedera- tion of states rather than a fed- eral state.

Missiles Travel At iiigh Speed

STOCKHOLM, July 10—(AP)—- Shining missiles seen in the East 24 hours travclirng at great alti- tude and with high speed causcd speculation today by the news- paper Aftonbladet that Russians are conducting rocket experiments on Baltic bases.

The recent missiles were des- cribed by witnesses as "a greatl- lsh blue shining ball giving off a tall of light of the same color."

Similar sights two months ago were reported frorri about i0 places in Sweden and several places in Finis d

n HONOR FOR MOUNTBATTEN

vlboainiioa, Jug -!(Reuters)- sco oun a en ormcr

ream Allied Conumncier in Sofia: east Asia. toda received the free- dom of the Ci y of London-the highest qbésmr the civic Sir Charles Davis, presented

1.50 §~s$h£em$°'wi'°l~‘i1i.en.

agricultural g

over the industrial Ruhr to pre- U’!

heard at the next penis term.

Record Grops Forecast In i|.S.

WASHINGTO-Ejuly 1o ..(Ap) --A record corn crop and near re- cord crops of wheat. oats, potato"

rice were indicated by a ggv- erriment re ort which said today this year's nited States farm pro- duction outlook has seldom been suaxplasserl. e condition of all crops July 1 was the best in seven years "we?! for 1042. The combined "relic 0f all crops has been ex. 999050 Iinoe 1N2 only in the inst fee years. Further. the indicat- ed yields per acre of most crops are above average. mE"'...'"i§“°"°." °‘ Should final proldrugfitdgnoxturrrfczryfi as now indicated, produgflqn u; livestock products could be main. mien... e w 933 "0? Was indicated at 1 092.000 bushels, Compared 33.000000 forecast in mid- a record of 1,123,143,099 pm, "d 1m year. and a 10- ear “W753i? 01' 343.60Q.000. Despltenhg blimp" crop. wheat wi-li be in. $113231: ‘to greet both unrestrict- s c commitments fag-tails: 31nd “reign

feed grains

ear ahead.

Will m»: Recognize Russian Seizure 0f iiermanProperties f“

ray n. 5*“;- VIENNA. '...';".i*zi.*;'"sa.... Sfiatesajoifered today to renounce 0 m6 Germs-n- aasets in 411M118. and declared it would mt recognize Russian seizure oi Ger- man properti 1 h Ezlassiiiednbv E1516 xAllltesflfias “illiiééi ""5195 l0 the Germans.

thtit deni t-h sl right 01 k lldthtth Obie

§F§°€tnm11w§rg°te§§h3$§n§i§y'|w:n n" 318118;. on; taxation $121315Excerlecbrzfimiseda"sulfstagietial"

V‘ ' _L_ ‘fieldsvtIchiti-‘leuprovgcgs-l c d8 reductions in ‘taxation. butt

. . "... a no e n W“ th b dgt ma e apparen a

"Denice, Iona Hall. Thursday. today is a diflerent attitude by i-ii-“ji-i":

July lit-h. |the Dominion Government to- (Contlnure-l On Page 5 Cc 5 . 1t vmuldmq m" u “hm _ m United States stappgd 1.1m --- iwigrdg tnspreservation of our _ _ _ _ I Moloto ‘a? _ . - p1 t, f? Allfilflfllle-Rlliiilllpcorrtroversy - Aegean; -.J1,|1y. 17th (or Loelry¢¢§;g;rjystém _ a policy -not- of ' , - where“ manap e1 witn.mm,-L0VPP' JBPP-tst-ions even as Chan- Pl . - __~ wsurpmtibn‘ of fiovlnclsl rights by F t

—-_—~ coercion but of strengthening the flafs BB "Dance. Fort. ugusttm School. m“; pqflflon or the Provinces by Monday, July 15th. co-obemfliln. a policy not of w I "Dance in‘ Crapziud Hall, yrlaayffiftlefeg Eewcyentgagiffiaagonbutaxg‘; 3W? 13101- cfipilgi w- I- maximum provincial autonomy

cellor Leopold Figi Soviet Plan to seize a large share of Austrian industry in the Sov- iet zone as "German" reparations.

Th6 fillet-flan parliament voted 1514’ in support of the govers- mepts protest against Russian ac- quisition of German Dmperty 1n a Rusfisn zone.

B11. ark W. Clark in a, ngte to Dr- Flkl declared the United States would not recognize the transfer to Russia of properties falling 11100 U18 category of fgmgd transfers. as enunciated at the London conference in January. 1943. At that conference the Al- lies. including Russia. reserved the Fikht to declare invalid any prop-

Drotested the

erty transfers in German-occupied, Drilbostd $3.150 000.000 10in

areas. even though the ported to be legal.

The United stats; note supflforce upon Britain them/hat might entail pOULlclil chang- idess presented bv Chancellor Figures. including a coalition govern- to the extraordinary session of the "191"-

portcd almost completely

Parliament when he announced that his govym-ment was not pre- vaN-d to accent the Soviet inter- pretation oi’ German assets in the Russian zone. He said that virtu. ally the onlv nrooertv which could be claimed under the Potsdam uilreement as German assets was that which the Germans had own- {ad before i938. the year of ansch- uss.

Asks For Transfer To Penitentiary

MONTREAL. July l0 - (GP)- Fred Rose, Montreal-Carlin‘ nom- ber of Parliament now confined to Montreal jail ending hearing 01' appeal from hs conviction on a charge of conspiracy to communi- cate information to Russia, today wrote to Justice Minister St. Laurent asking for transfer :0 a Federal penitentiary to begin serving his six-year sentence.

Defence counsel for Rose ex-

lained that. if the appeal is re- Nled. time s ent in jail would not be app-lie against the Dilli-

tentisry term. The appeal is scheduled to t-e court of ap-

which opens next

September.

HOUSING SHOIITAGE

TORONTO. 1111x110 - (CP) _. Controller H. E. oCalhun and Frank Dearlove, city homing officer, said today there ls s b- liity the Canadian National Inrhib- ition buildings may have to be used to alleviate the housing shortage.

Finest Quality

CHARLOTTETOWN, CANADA. THURSDAY. JULY 11, 1946

MAXIMS ' can

4am; MANA

10

PLACED UNDER GOVT.

,.

Blames liitler w it For Defeat In Russia .

(B Tom Ii!‘

N 8&0. Germany, July IO-JAP) — Hitler's superstitions about names was one thing that beat him in Russia, i-n the oplnign of Col-Gen. Franz Holder. chief of the Wehrmacht emu-pl gtgff from 1038 to 104G an a constant critic of the Fuehrer. whose mill. {My iudgment he likened to that of a mediocre corporal."

Holder's version of the Russian campaign is contained in a confi- dential interrogatory obtained by intelligence officers after the fall o! Germany.

Here was the situation in 1941 as Holder reports it:- _

The German armies struck suc- Celfiflllly and ill three months smashed Budyennys southern arml-es, took Smolccisk and reach- ed Leningrad. Only Tlmoshenko had first class troops left in the field and these stood between Smolensk and Moscow.

Holder and Von Brsuchitsch wanted to attack and destroy these troops. Moscow would have fallen and the Russian rail system hingmg on the capital. would have been in chaotic condition. the Benersls believed.

Hitler insisted on taking Lenin. w"! and driving on to Stalingrad defililte the approach of winter. ‘Why? 36981159. Holder says, the names of the i-ti boll d Red Russia to Hiilerfzisndsxixxe‘ wcfild not be satisfied until

In

had taken them and given him the psychopathic delight of violet. l"! Lenin’ and "Stalin",

The generals insisted that Mos- cow was the place to go for. Then Hitler grudgingly admitted that he wanted ‘to avoid a campaign there-that he had a mystic ave.‘- Siflll Prflrmbted by Napoleon's fate.

Hitler had his way. but in n few weeks it became apparent even to him that a drive on Moscow was necessary. Then it was too laic, the snows had come and the Wehrmacht “took-As ten-lift: lacing befc-re the Russian capital,

___________

Failure 0f Loan Seen As Forcing Austerity Measures

Reuters PEI-fem Editor

LONDON, July ‘10- (Reuters)— Some of the most responsible men in London believe that. rejection

y were pur- I f‘!

‘doubt whatever about the auster-

—or even amendment-of the to by me United States of Representatives would an austerity

‘ltflln GU58

The argument is this: without the loan. Britain would be unwil- 1mg and perhaps unable to im- port. anything from the United states that she could forego or obtain elsewhere.

Under such circumstances short- ogcs of films and tobacco added 1C the present scarcity 0f fats and bread migiht cause a crisis.

A coalition government would not necessarily result-the Labor government seems able to take the gtraln itself particularly as an in- illai burst of unpopularity would not be directed against the ad- ministration-but there seems n0

liv.

Previously. one could will! m“ ratification or reiwtlofl 01' me loan would not. make much im- mediate difference. With the loan, Britain and other stcrlinfl area countries could not 11114001‘?- more goods than the United States u-ants to sell; without the loan they would not. 1901110011 1°55 than that because if United States producers of tobacco. films. cot- ton and so on. want to retain British markets they would find wava to finance such transactions themselves. for example by driv- ing credits or by accepting block-

li .

‘dnitir tiiogwever if the loan fails. Britain aupertrltly would reiect such offers by United states pro- ducers. The government feels it has been faced with s elm-cut choice: the unnmended loan or no imports fmm the United State! that possibly can be avoided.

Large Liquor (largo Arrives In ilanaiia

NTREAL. July l0-- iCPl-A rlg) packet of 30.000 C!!!" 0i etch whisky arrived from Glos- gow today on the SS. Norwegian. which slipped into her wharf here this morning with her no. l Ind I holds crammed with whisky. I"! rum and 154 cask: of aged ScotchQ constituting the largest carlc c spirits the port of Montreal has seen for many ye rs. . Some 22.000 cues of liquor are destined for Canadian consump- tiger, with 30o cares marked off for Quebec Liquor Commission stores in Montreal, and the others "ir- ii uor boards In Vancouver.

P's-Io n‘ cton, gum.“ to and

n . can!

no?‘ at Quebec Monday I

"stoppage of

PAGES

Subscription Daiivared ll-ll.

IanMMrothsrIreviacQIUJ-LSIJI.

CONTROL

Work Stoppage

Would Affect y Entire gantry‘

i.ahor Minister Fears Inflation If Wage

increases iirante Affeteii

\

d- Three Plants

i

OTTAWA. July lfl-lclfi-Labor Minister Mitchell bodily announ- ced in the Commons the appointment of a controller to fake charge oi three basic steel plants in which strikes are threatened.