If t's Good-

For The Island

The Guardian Is For It

VOL. LXXVIII. NO. 98

Two Small Boys UVrowned SR: Above N. River Causeway)

Two small boys drowned terday when they went t shore ice about one quarter of a mile up river from the North! River Causeway.

Dead are four-year-old Tho- f the Charlottetown RCMP De- yards from. the nearest house.

+

mas Bertram Keith Walsh. son of Mr.

(Temmy)

River. and George Joseph Fred-

es-\erick (Teddy) a ae son of Mr. and the river shore. Boards. were

Arsenault, also

Mrs. T. Gerald Arsenault, North) | River.

The bodies “were ‘during noon hour by members

tachenent. “Police were{, called to the

and Mrs. scene by a brother of one of the tragedy and decided that an in- , Donald -Frederick Walsh, North deceased. Thomas Gerald Ar- -quest into the fatalities will not’

16, who noticed holes in

< — ‘ f ™ < . — s - 6! ( , e : 4 < _WEATHER Cloudy» scattered showers: light winds becoming northerly 15. Low-high 35 and =» 45. Wednesda l y: cloudy and colder, sores we 3 “Covers Prince Edward Island _ Like The Dew” i a _— CHARLOTTETOWN, CANADA, TUESDAY. APRIL 27, 1965. sor MORE SEVEN CENTS 14 PAGES

‘GROWTH BUDGET

the river ice about 3 feet from

Reduced 1

2

Lt ae} ee Gee

occurred is ume hundred

Coroner L.E. Prowse, MD., was called to the scene of ‘the

ibe necessary.

US. Carrier And Transports Patrol Off Dominican Republic

SANTO DOMINGO ‘AP) A

UjS. Navy aircraft carrier and unity. The station went off the: the carrier ie

transports with 1,500 marines aboard were understood to have moved in close to Santo Do-. mingo late Monday as. rival Do- minican military leaders waged: a see-saw struggle for power.

Army rebels put weapons in the hands of thousands of civil- ians to support the revolt staged | to bring exiled ex-president Juan D. Bosch back to power,

Late’ in the day, air force pilots opposed to Bosch's return here from Puerto. Rico strafed the transmitter of Radio Santo Domingo outside the city just after provisional president Ra- fael Molina Urena, a Bosch lieu-

' proposal

senault,

tenant, broadcast an appea! for air.

Twelve persons, six-year-old girl.

including a were reported

killed during the day in attacks

by planes and in a gun fight across a bridge. A rocket-firing lane shnt a hole. in a wall of presidential palace. Air force dissidents broadcast an appeal for a military junta to serve until elections in De- cember. Bosch and Joaquin Be-| laguer, another ex-president in exile, would be allowed to parti- cipate in the elections. The army. rebels apparently ignored the broadcast repeatedly from an air force base.

t

naval force—~ two marine- carrying transports, a destroyer |

A six-ship US | Deficit

and- two -other vessels—was un- + Health, welfare’ and social se- derstood to be operating just out _curityincluding veterans

of sight of Santo Domingo. One| ‘fits, 24 cents.

purpose of the-'U.S: naval pres-| | Defence,. 21.

ence could be tg evacuate U.S. civilians if they are endangered. There are about 2.500 US. citi-}

Public debt charges.

_| . Transportation, communica-- \tiens and public works, 13.

zens ee Dene none vv Dessetees and industrial de- s claimed support velopment, 9

navy and air force | i Payments ‘to provinces and

for one dissident thunicipalities, 6.

throughout -this Carfthess eote- ecoun- Other government services,

try 24 hours aftér they toppled 13.

the 19-month-old civilian junta Where

installed to succeed Bosch im comes from:

1963. Personal income tax. 27 cents.

Senate Retirement Issue~ Debated In. Commons

OTTAWA (‘CP)—The ancient issue of Senate reform arose once more Monday as the Com- mons tackled the massive legis- lative program fo? the new

session after a 10-day,. Easter ale

- & tthe first measure to come up

for debate was a proposal to amend the British North Amer- ica Act in order that future senators will retire automatic- | ally at ‘age 75, as judges do, in- stead of serving for life.

Present members of the ap- pointed uppet chamber who are 75 or more—they number 40 out of %—would not be required to retire. j

However, the new bill would permit them to retire voluntar- ily on an $8,000 annual pension, a pay cut of $7,000 a year.

Opposition Leader Dief- enbaker called the legislation a

“sham’™ and New Democratic MPs, who are pledged to the abolition of the Senate, said

they will * fight the bill every inch of the way.

The legislation could be side- tracked . Thursday, six-day budget debate opens.

Mr. Diefenbaker said the Lib-

when thei

21.

|

Fiscal Highlights

Another healthy increase —seven per cent—forecast for gross national product

+——-$—~

tributory pension plan ture senators, similar

erals have been, promisijg Sen- te session bel never was de- 4 dae’ tabi than. tek

ate reform in every election bated. Stiff criticism is ex- . . lowing 8:

since their 1919 leadership con- | pected in the sate. re- | 1 a y ongstis oggentlie erry Mon- e im 1964, a matting a tion, but instead had ap | sumes 5. May 4 #| ter. a holds speech night to presen: nis “1965-- Saal aeneageai . 7 ‘

propriated a majority {month-long recess. |} aloft‘as he entets the-Com- 66 budget. (CP Wirephete) — ures. Given | Canada warned it can't

for their followers in the senate. | Stanley Knowles, NDP bi depend indefinitely on for- (Liberal senators now. out es her a was From Ple scite eign —e to finance ex-

sor nie es S Soe cone ms Two-Bit Bui Get |or Potato Plan | ar sa ==

There are two independents a

one independent-Liberal.) that something had béen. done | tional payments. .

MAKES PROPOSAL

Mr. Diefenbaker said the gov- ernment should appoint two or three senators to the cabinet and introduce more govern- ment legislation in the Senate to make the upper chamber more effective.

Government Housq Leader Mcliraith said ¢ legislation

‘provides for a separate con-

|to reform the Senate.” What the ‘government was suggesting

The margin in favor of the, marketing plan which the. [P.E.1. Potato Marketing Board | Ease Ot op 50 SNS 8, lonly six polls left to be

yesterday

wasn't worth the time it would take up in debate.

Mr. Knowles has a private member's bill on the order pa-

Nowlan Charges |

Primary objective now | “a healthy rate of sustained

per calling for the abolition of OTTAWA (CP) — Comserva- duction machinery that was in from Wendall Mac-| economic growth.’

the Senate. treduced in the 1963 budzet. Soe achat atone for the :

__ Frank Howard (NDP- The whole country had ex- province. General review of tax law Skeena), an outspoken critic of pected some easing in this tax," j¢ is expected that the final| deferred until royal com- the Senate, called it "a haven at least on its application to recut will he available Wednes-| mission on taxation reports for .broken - down political production machinery. This day afternoon when the return-| this autumn:

Winds Increase Flood's Threat

EMERSON, Man. (CP) to 785.34 feet above sea level— Strong winds aggravated flond about six inches below the an- conditions in this border town ticipated crest level.

Monday .as the flooding Red Jim Bewett, civil defence of-

River climbed slowly toward an ficial and Emerson school prin- |

anticipated peak expected over- cipal, said some residents ex- night or Tuesday. |pressed fear Monday that if the

The brisk easterly winds—the | water remained in the town. for first strong wind since flooding | much longer, the frost would go

started in the town of 930 early last week — whipped the two feet of water in the business sector into waves breaking against the sandbag dikes.

Mayor Leonard Careless said. however, it was unlikely the waves would break through the dikes in the town.

The level of the muddy -river rose .11 of a foot in the 24 hour period ending at 8 a.m. Monday |

out of the ground and cause seepage problems in basements.

At least one person above the flood level had to clear a base-

ment Sunday because of seep-

age. Mr. Blewett said all school buses completed their routes

Monday morning although some

from north of Emerson had to,

travel about 20 extra miles. to skirt flooded roads.

hacks’ He suggested it be made an elective body with 10 ;members from each province. Creditiste Leader Real Caovette said senators should be drawn from more walks of life than at present and su- gested an age limit of 70.

| S‘side Firm

Has Contract = se"

Reffering to the budget speech by Finance Minister CAPITAL BUREAU Gaiden.

OF THE GUARDIAN he said: “Never were OTTAWA — A Summerside * ™4ny words used to say so

Construction | little."

ister C. M. Drury. The company will supply and pected.

install metal windows in a bar- rack block at the RCAF Stat-/ S#ES DEFICIENCY

ion, Summerside. Value of the Mr. Nowlan said the most contract is $17,428 glaring deficiency in “this al-

It. is one of 148 unclaisified |Mged budget” was its faflure to defence contracts for $10,000 eg Teduce the 11-per-cent tax

' more awarded during March.

] Per Cent Increase Forecast For Gross National Product

By JAMES NELSON OTTAWA (CP) — seven-per-cent increase in Can- ada's total output of goods and | services in 1965 was forecast by | Finance Minister Gordon Mon-, day night. This. would bring the. Gross National Product to more than $50.000,000,000 for the first time.

The GNP, a measure of the economy's over - all strength. was $47,003,000,000 in the 1964 calendar year, an increase of 8.9 per cent over. 1963. This rate of climb was the greatest on record and far outstripped the finance minister's forecast sac 5% per cent a year ago. |

“We can be confident the re- |

“cent rates of economic growth | will continue well into the sum- | mer. although the outlook for | the latter part of the year is

Commons. In other parts of his speech,.

before heading into an outline

A robust of domestic tax policy, he said: | 44a’s tax structure still must

—Canada cannot depend indef- | initely on foreign capital to fi- nance expansion and must avoid excessive international payments deficits

—British exporters are ex- panding their markets in C71 ada, which in turn must find |

—A general review of Can-

| await publication of the de | layed report of the royal com- mission on taxation next au- tumn. —It is evident more needs te | be done education just what should be done and) in what way are unresolved |

new markets in the United States. \ stions. —Federal-provincial fiscal ar- | 4! rangements must be reviewed INSIDE TODAY in the next 18 months and a new formula devised for me} Classified .......... 12, 13 | fivevear perted carting im) Births, deaths ........ $13 | Se Combes «-..--.seeseess ~ performance in 1964 and said: | Ww s eee eee ree eee ee ~ “After a long period nt tronhble. Shetlate eee eee eee eeee 4 & . deficits the nation’s fi Editert : : nances now are under firm con- Semen icc pises. Queens, CMY ---- 3 in national product im 1965, he + County . ‘ isaid, will see increases of five | (Continued on page 14. col. 1) ;

wr”

would have done more to de-

officers court will be set up, |

velop the economy than any taut results to date have defin- | other measure Mr. Gordon itely established that the margin

could have introduced.

Another glaring ‘omission was the lack of any new support for education. Greater federal aid in this field was long overdue.’

The Conservative MP chal- lenzed Mr. Gordon's reference to the economic expansion of the last two years. Finance depart- ment experts had said 1964 was the fourth year of the economic upswing and thus it went back to the years of the former Con- servative administration.

Actually. the Liberal" govere- ‘ment was boosting the economy with a continuation of Conserv- ative policies.

Mr. Nowlan sald cofporation income * taxes haven't been re-

“duced a cent though Canadian

éasts must be kept competitive with Canada® test trading rival, the United S

Mr. Nowlan said he would ' deal later in an “organized manner” with the budget. The

Liberals applauded.

in favor of the plan is far in ex- cess of two t6 one. '

The actual percentage is ap-~ ‘proximately 72.1 in favor to 27.8 against.

The 1,938 votes are from a to- tal of something like 5,500 avail- ‘able voters.

Klansmen Make | Not Guilty Plea

HAYNEVILLE, Ala. (AP)— Three Ku Klux Kilansmes; pleaded not guilty in state court Monday to first-degree murder indictments in the night-rider Slaying of a white civil rights worker. The trial of one was set for next Monday.

The three are Collie Leroy | Wilkins Jr.. 21, of Fairfield, ‘Ala., and William Orrville Ea- lon. 41, amd Eugene Thomas, 42. both of Bessemer. Ala.

Circuit solicitor Arthur E. Gamble Jr_ said Wilkins would be called to trial first on the

which under state law bring the death penalty or life imprisonment.

The three will be tried sepa- rately for the slaying March 2% of Mrs. Viola Liuzzn, 3. of De- troit, after she tonk part in a Negro civil rights march in Ala- bama. |

Further action needed on financing higher education in Canada but just what and how still unresolved questions 5

Federal - provincial fiscal arrangements to be re- viewed © next 1% months and new formula devised ‘for five-year period . start- ing in 1967.

British exporters finding new markets in Canada which in turn must increase sales to the United States.

Half a million new jobs created since 193 and un- employment last month 3.9 per cent of Labor force compared with 7.7 per cent im first quarter of 1961.

Floods Hit Alta. Town

HIGH PRAIRIE, Alta. ‘CP)— Fleod waters inundated almost half this northwestern Alberta town during the weekend, forc- ing 150 persons to flee their homes.

Government officials eased the flooding when they dyna- mited two log and ice jams on the West Prairie River. a tribu- tary of the South Heart River, which flows into Lesser Slave Lake.

Tiny Ont. C To Honor Lucy Maud

Prince Edward Island's most famous native is going to be honored by people of the tiny Ontario community where she

~~

ommunity

the life of Lucy Maud during years she lived there and many of her old acquaintances era have been found and

|March 31 ‘in millions lars): 1965-66 ites | Revenue | Expenditures 7.450 7219 cut

$3 come tax next. July 1, How a dollar of tax revenue So. pat. nets

i

Personal Income Tax . Per Cent

Cut Effective = On July First

t

By JAMES NELSON: im the basic personal in-| designed

spending money in taxpayers’ pockets in every province, was announced Mon- day im Finance Minister Gor- don’s 1965 “growth budget.”

It will be fully felt by every- one with incomes up to and in-. cluding $20,000 a year. Above that it will be limited to a flat cut of $600 for a full year or $300 this year.

The 58-year-old chartered ac- countant and economist, deliv- ering his third budget speech in the Commons, again forecast a deficit: $300,000.000 in the fiscal

the budget dollar year ending next March 31. A

year ago he had planned a $455,000,000 deficit but this was cut to $83,000,000 by last years

| record 8.9per-cent increase in ; the gross national product.

Mr. Gordon said the GNP

jtotal value of all goods and

services produced in Canada—

| Should. grow by seven per cent_

'

| raise $1,000,000,000 from gov-

‘in 1965. and more as a result

| the ‘aa

ary effort ies this year and

$7,350. $7,136 OTTAWA ‘CP)—A 1@-per-cent make room for payment of

Canada Pension Pian contribu-

tone starting next Jan. 1.

‘Gordon also announced ill go. ahead with a top election promise to create a Canadian Develop- ment Corporation. This $1,900,-

000,900 corporation will give everyone an opportunity to buy . shares at $5 each in a huge government -. inspired mutual fund investing in Canadian in- dustry... °

TO SELL POLYMER Polymer Corporation, and perhaps some other profitanle

{Crown companies. will be sold

to the new holding company which will be privately and publicly owned

He indicated the govern- ments willingness to drop the ll-per-cent sales tax on drugs if a_parliamentary committee recommends it. But he made ne change in other important sales, excise. corporation profits or inheritance taxes.

As a powerful dcunnait

.of the income tax cut. Canadian—~publications—

It is designed to spark the

— “to renewed expansion-

their ownership to foreigners, ‘ Continued on page 3, col. 6)

Budget Highlights

| By THE CANADIAN PRESS

Personal mcome tax re- duced 10 per cent effective duis 2: Nentind 05, 000-ma-

retirement savings plan and ‘deferred profit-sharing plans required to report annually te tax authorities.

mum, annual cut for individ~ = Fast tax write-offs for ma- ual. -ehinery and equipment pur- Corporation income tax, | ©#a5¢S by Canadian - owned

‘sales fax and special old age security tax unchanged.

Establishment of Canada Development Corporation to

| ernment and public for invest- |

| shares $5 each.

ment in industrial expansion;

Taxpayers wholly ‘ sup- ported nieces or nephews to

| qualify as income tax deduc- |

tion on same basis as depend- ent children.

Deductable allowance of $550 if uncle or aunt depend- ent on taxpayer for support because of mental or physical infirmity.

Full deduction of trade un-

ion dues allowable without af- | fecting standard $100 deduc- |

tion as formerly.

Taxes on liquor. beer, wine and tobacco unchanged.

Maximum deduction ‘for pension or retirement fund

| contributions raised to. per

' newspapers disallowed as de-

_ sion fund or -similat,,sa

cent of income from 10 with

$2,500 ceiling continued. _ Costs of jsing in for-

eign - owned magazines and

ductible business ex pe nse after Dec. 31, 1965.

Canadian editions of Tne and Readers Digest to be exempt from magazine adver- tising legislation.

Deficit of $300,000,900 fore- cast for 1965-66 fiscal year mm revenues of $7.350.000.000 and expenditures of $7,650.000,000.

Lamp - sum payments on termination of employment to he classed as_non-taxable if transferred to pension. _retire- ment savings or deferred profit-sharmz plans.

Trustees of pension funds, |

jing

firms extended to end of 1964 from old expiry date of June 13, 1965.

Grants ‘equalling 25 per cent of increased outlays for indus- trial scientific research to re- place current 150-per-cent taz deduction. effective in 1967; grants automatic on up te

| $50,000 annually and by

| prior agreement for largef

| amounts. - j Industries allowed 5)-ner-

cent tax deductibility on capt: tal costs of projects aimed at reducing water pollution by wastes. :

Full deduction allowed costs of investigating factory or power development sites, landscaping business property cancelling a lease or. obtain- ing a licence, franchise of trademark.

on

‘

Tax write - off period for grain storage facilities built between May !. 1965, and. Dec 31,. 1964, shortened to four years from 2 for wooden structures and # for masonry buildings.

Farmers allowed to dednect costs of clearing and draining

| farmland.

Federal sales tax on drugs continued but likely to be re- moved if Commons food and drug committee recommends it.

Gross national product te grow more than seven per

| cent in 1965 as a result of tax

changes Customs Act amendments te remove discriminations

against goods imported from Britain

Companies mecorporated m Canada prohibited from, mov- incorporation abroad. for tax-evasion purposes

Effective Dates

nouncetl in Monday night's bud-

Umion dues fully deductibie Maximum deduction for pen- sion plan contributions raiscd @ per cent from 10 with $2.00 ceiling continued. & ‘Lump-sam payments on ter- mination of employment non- taxable if transferred i i~ geal

Deductibility * €osts of clearing and draining farmland, reducing pollution by industria! wastes and for other specified business costs.

May 1. 1%

Tax write-off .period for aram

storage . facthties shortened to!

Personal income tax reduced

, aet 10 per cent, limited to $600 max- Retroactive te Jan. 1, 1965. imum annual cut for individ- Income tax deductions far tax-. uals.

payers with dependent uncles, Dec. 21, 1985 aunts. nieces or nephews Costs of advertising in for-

eign . owned magazifies and newspapers disallowed ag de. ductible business expense

Extended te Deo. 31. 1966

Fast tax write-offs on ma- chinery and equipment purch- ased by Canadian - controlled companies; was to expire June 13.

Te be enacted

Canada Development Corp. te

Fase $1,000.000.900 from zovern-

ment and public for investment in industry

yak of Customs Act dis- ion. against goods - im- ioe “Britaim,

Re ‘of ri

fi