MAXI MS

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$3.0m thought and lm

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ttotowl Candida Two. deny "l1

ANNIJIINBES ADIIITIUNAL TAXATIUN

income Tax Boosted T0 25 Per Cent. New Profits Tax Intro- duced.

LONDON, April 20-(0? Cable) _Britaili‘s first budget since the Government decided to rearm for defence on a vast scale today call- ed for new taxation amounting to !i5,i50,000 ($74,235,000) as the tax- psyrs‘ additional contribution td- ward approach to “our goal of saf-

eiy‘.

Neville Chamberlain, Chancellor '0! the Exchequer, frankly stated that armaments would overshadow the budget for several years as he pictured a financial situation of buoyant revenues and increasing business with new money required to meet defence needs.

lie increased the income tax to l6 per cent-Jive shillings in the pound instead of the four shill- ings ninepence now prevailing. Then he sprang a surprise on the ilouse by announcing a new tax on prosperity to be known as a. national defence contribution.

REPORTS SURPLUS

The fiscal year 1936-87 ended~ with o. surplus oil’ £7,530,000 ($37,- 017,030), he said, without allow- ance for debt redemption which imlrbed 1713000000 ($03,700,000), raking an actual deficit of £5,470,- im ($26,652,400). Existing taxation would produce l deficit of 214,808,000 for 1937-38 and e planned to convert this into surplus oi £52,000 by rais- ing 915,150,000 through new taxa- tion. He timated revenue at MXMOODOO and expenditure at $02,048,000. (In dollars these sums are $73,100,200; $12,348,000; 574,-‘ M000: 54.220,190,000 and $4,227,- 965,300.) While the budget secrets were closely guarded, not being revealed to the cabinet until last night, the increase in income tax had been widely forecast by observers who conceded the Government must uiise new funds.

Came As Surprise

But the new profits tax came as s complete surprise. It will be levied on growth of profits by iri- dividuals, firms and companies en- caged in industry and commerce. Ii there is no large growth in profits there will be no tax. The businessman is protected to the extent that he may make £2,000 more money during the coming Zyear than last without coming un- der the tax. -

This new source of revenue is expected to bring the Goverrunent around £2,000,000 this year. -It is illiiicctcd to increase in scope next

ll

, Three In Halifax

Mayoralty Contest

K32. By Guardian's Special Wire) HALHPAX, A-pril so - A thru- cornered fight ior the Halifax Mayornlty emerged today 1mm iliimination proceedings, but May" E. J. Cragg, President of the Can- ldian Mayors Association was not one oi the contestants.

Three alderman, W. A. Gatea. J- W. Mccrlriliy and Walter Mitchell. filed nomination papers today i0 lick election April 28 as may‘)! 01' this eastern city. Iviayor CYBSB. hi"- liiil served a three year term. W88 prevented by customary procedure from offering for re-electlon.

only one contest for six vacant oouncil seats will be held. No can- llldrm offered for Ward one. while four others were elected by I001“- motion, Mrs. M. T. Sullivan. only woman on the Halifax City Coun- iii- was one of those receiving el- ‘milii by scclsmation.

COMINCHIVENIS

“Buying live lrcgs Albany mura- ¢ly 32nd, mierald 23nd until noon. 0- c. Green. i-aon-i-w-i-o-w-t-ti.

"Riiihmase sine st PM" Btilooroom Saturday, my 1st- at " "iwk- a-lm-s-zi-il.

M23071!“ Line Club load‘ new. bl. calves every Wednesday st

Wfi/ ///»

,. The People's Paper Covers Prince Edward Island Like the Dew

CHARLOTTETOWN, CANADA, WEDNESDAY, APRIL 21, 1937

BRITISH FREIGHTER cIFTMBEFAINTScLTEs

Read by Everybody

MAXIMS

OFA

MERE MAN

Butler, i! you must; do not quar- rel wlth the dear Lord's appoint- ments for you; only try. i! you are to suiler, to do it splendidly.

10 PAGES

Annual Subscription Delivered Q By loll Canada Quill-ll.”

“ARMS

i ____i_.___-

BUDGET”

Civic Estimates Submitted At

Council Meeting

Councillor GN-VT-McLeod Bud- gets For Small Deficit — Un- finished Business Transacted.

Cilim- 390989 W- M01000. Chairman of the Finance Committee, bud- geted ior a deficit of $3,402.70 last night when the civic gstmmws rm- 1937 were adopted at a special meeting o! the council. Adoption of the esti- grxaoes was moved by Coun. McLeod and seconded by Colin. R. C. Chand-

A summary of estimated expenditure and revenue io1lows:-_

EXPENDITURES Maintenance of Streets Street lighting "l; $ §§3§fi~33 .‘:.°:*.f.:‘..?:"“ - elm-l» _ .. 3,1523“)

Assessing and collecting .

Board of Health ..... _ City Government . . 3’8u‘0o Interest and dscount 10010500 Striking Funds ....... . ' 2500500 Building and electrical inspection ' {T500 Market House ........ ' (1391),; Public Library ' ' '8.9'00 City Hall " 1925 Vizztoria Park . ' llwogo” Clysqiiares ' ' Government Pond and Roadway .. ' 1115000 Fire Department 669mm, Pouc- Deparuuent .. " 1 "w Miscellaneous

$270,421.50

IEVENUI Real Estate .....- $5 .45

.564 Personal Property , 32,5333

moans: o 256% szolspsilo less 15% 30,693.61 $175,060.80

Poll Tax

13,910.00

less 50% 6,955.00 6,955“)

Miscellaneous receipts A" 54,000.00 em 34,000.00

70.01 .

less discounts a 8 8o

3,000.00 267,018.80 ._.i_______

The finance committee had Riven the matter of the estimates i‘ V"! Brest deal of consideration Coun. McLeod said. The mgttgr had been Bone into in eo-operlition with the various committes and they did what they could to make a Just and honorable showing ior the City. "There is very little we can do to change the estimates of the various committees. All are working to get expenditures down as low as they pessibl can," the speaker said.

Last year the finance commit —e, taking charge of affairs, hid gone into the finances as fully as it could and estimated for a small deficit. At the end of the year there was a deficit considerably greater than estimated for. Never- theless it was not as great as the pgegeding year or the years before

a .

Coun. McLeod then read over the estimates in detail.

Vote for Band Suggested

Under the heading miscellan- eous expenditures Coun- E. A. Foster suggested that the Council should put aside a. certain amount of money for the band. "We can't do without a band very well," the Councillor said. Tile City used to give a $300 grant but in the last few years it had been out out. The Only thing that was done was to give the band o. smelly room in back of the fish musket and ro- quire that ior rent the baud play two free concerts in the Soul-N each year. He hadn't been asked

33w, Al!!! BD-(APJ-Th! hump hi! 40th

lute. aquarium a warplanes mired overhead will! 3'75 "Mm" “n” rumbled pen the reviewiol WM under the trees-of tho 114N119!“- There were 000 motorised ml»- chines in the line of march and illoo homes. ‘Iliousarais oi citiwul plfnd ion . “nvevdliilliw the flrlllN of military dimlay gave hell to the hood o: gtate, there were n90?" i-hl Hitler intends to write a book em-

._.h7:* >

Deficit

s‘_a.5io2.'lo

he had seen the report 1 u, Piper yesterday morning“ an‘? thought it was a shame that the band should disband. . -

1 Coun. McLeod and Coun. Chand. H’ agreed with the suggestion

(Continued on page 3)

Gives Budgets

byarwoffliebsndslnonto; Ill onsilmnauim

Hitler Reviews Army In 48th Birthday Celebration

The bookwould beoseoret docu- mm; m mgpii-ation and guide to leaders of the Reich when Hitler is gone.

When today's celebration ended late in the aitemoozi it was an- nouno: Htlereshéi; left for his Bowl’! sgaderi -

‘llhe crowds dL, rsed to contin- ue oolebnting on their own.

s, ight they gathered again at the qioria Palast. where Robert Ley, trade un'on commissioner, re- cited the Nazi creed: »

"We believe on earth only Adolf Hitler.

“We believe in God in heaven who guides us and has sent us Adolf Hitler to lead us and the

llEPBllRN ills EARLY illllll SETTlEMENT

Receives 0 s h a w a Delegation Favor- able To Proposals Advanced By Com-

i pany.

(C. P. by Guardian's Special Wire)

TORONTO, Aprlil 20-An early move toward a settlement of the l3~day-old General Motors strike at Oshawa was expected by Prem- ier Mitchell Hepbum tonight as an outcome of a conference in his oi- iice today with a dozen ‘Oshawa

be made tomorrow by this group of employees, he said.

The delegation, many of whom were unionists, claimed to repres- ent from 1,000 to 1,500 of the strikers who were ‘ready to accept General Motors’ terms of settle- ment. For an hour they discussed the situation with the Premier. They may return tomorrow.

"They said most of the strikers want to go back to work, but they can't get a secret ballot on the question," the Premier reported. “They realized they lioodwlnked by these American ag- itators and lead up a blind alley.

“If they could take a. secret bal- lot, at least 90 per cent would vote to go back to work."

Reports of a postponed meeting between strikers and company of- ficials at Oshawa this a-fiemoon

_ were described by the Premier as

"merely propaganda from one side." He understood there had been “some misrepresentation."

“I will be in on any conference," the Premier declared, "and there will be no recognition of the C. I. O. There will be no negotiations with paid organizers of the C. I. 0."

Asked whether in dealing with the local union the Company was not indirectly recognizing the C. I. 0.. with which the United Auto- mobile Workem oi America was affiliated, he agreed there was a technical point, then added, "we won't deel with them as members of a local but as a. committee of the men. who may be members of the local."

Regarding unionization of North-

em Ontario miners. Mr. Hepburn said he had reason to believe three mine presidents “wererrt fooling" when they announced they were prepared to close their mines in- deflniteiy if the C. I. O. attempted to intervene there. "The gold's been in the ground millions of years. A little while longer won't hurt it," raid the Pre- mier. “Some mine owners tele- phoned me today saying they had canvassed their men and they did not want to strike; they were sat- isfied with their present wages and working conditions. 'I‘hi.s fiasco in Oshawa is having a quletening effect all over the province."

Ahllcy Ceremony glichearsal Held‘

l

(or. Cable, By Guardian's special Wire)

IDNDON, April 20—-A two hour rehearsal of parts of the Coron- ation ceremony was held in West- sninster Abbey today with Lady Rachel Howard. sister o! EB" Marshal the Duke of Norfolk. re- presenting the QUEER-

Four Duchesses who will hold a canopy over the Queen at the anointing, the mistress of the robes. the Queen's six train bearers. 1b barons of the cinoue wrin- wii 11 standard bearers. or their 100mm‘ tatives. attended.

A dummy ca-‘novv and dummy standards were used.

Agreement Reached In Montreal Strike

(C. P. by Guardian's Special Wire) MONTREAL, April 20—-An scree- ment bringing 2,000 oi Montrealb 5,000 s ‘ L = back to work was announced tonllht by representatives-oi’ the workers and of insurgent members of the Montreal dices manufacturers‘ guild. The accord would provide recol- nition of the Intemationai India‘ Garment Workers’ Union, higher pay and other concessions from the group 0t employers. said by i" rpokes to numbe 40 0i

whole glorious Germs-n

.._i...l'.

people to- more than ol- is Kern/u... ._ . _ _ _ ,»_

strikers. Some further move would ‘

Princess \ Elizabeth Will CelebrateBirt/lday Today

was accompanied by a big card

Dates For Maritime Exhibitions Set

AlldI-HBRST, N. S., April 20— Dates for Class "A" exhibitions in the Maritime Provinces were set today at a meeting of the Maritime Exhibitions Association. Charlottetown?» Efxhibition will be held Aug. 16-21, Saint John's from Sept. 4-11: Fredericton, Sept. 11-18; the Nova Scotia Provincial, at Halifax, Sept. 27-Oct. 2. Date for the Maritime Winter Fair wa". set tentatively at Nov. 6-11. The St. Stephen, N. B, fair will be held between those at Charlottetown and Saint John.

C. F. Bailey of Fredericton was reelecte’ president with E. Frank Lordly, Halifax, vice-president and A. W. MacKenzie of Truro, N. S., secretary-treasurer.

Others present included: C. S. Cypher and Roy Smith, Frederic- ton; R. M. Robertson and G. W. Frost. Saint John, N. B, Col. D. A. MacKinnon and J. W. Boulter, Charlottetown; W. W. Baird, Nap- pan, N. 8., and C. E. Boulden, Truro.

Increase Shown ln ' Canadian Exports

GITAWA. April 20—-An Axicreasc

of more than 24 per cent was shown in domestic exports to Eimpire countries during the fiscal year ending March 31, the Dominion Bilreau oi’ Statistics reported today. At the some time exports to foreign countries were up almost 26 per cent. Exports tn Empire countries were worth MN,598,106 against $399,311,- 470 in the preceding fiscal year and those to foreign countries were vul- uod at $665,588,801 compared with 0440718338.

‘Into-l domestic exports were worth 01.001.101.008 compared with 089N041’! the previous fiscal year.

The United Kingdom was the best customer among Bnpire coun- trim, taking goods worth 8407.096,- 008. an increase of $86,489,900 or 360 Der cent. while the United states lsd foreign countries at $436,014,544. a gain of 30.7 per cent compared with NMJOIACG.

AAAA‘

NOTICE

All members of the Iloly

WINDSOR, April 20—(A. l‘.)—'l‘he Duke of Windsor sent a birth- day gift today to little Princess Elizabeth, heir presumptive to the Throne which be abdicated. The Prince will he 11 tomorrow.

The iarxe sealed parcel bore the label of a Vienna. sports shop and

Jgned “Uncle David"

Kin: George’: gift to his daughter was understood to be a saddle Ind riding crop. The Princess now has her own horse, "SnowllalP. A M1118 rwlwt. and novels by her favorite author, sir Waller swig, an,

other presents she will rec_e_l_vie_in the blue morning room tomorrow.

BIRTHDAY PARTY

The crowning event of the day will be on afternoon birthday party in the drawing room of Windsor Castle, where the royal family is Billing- Queen Mary is to be among the score of guests who will watch the Princes". cut a pink, white-iced cake with 11 candles in silver sconces.

There will be no day!

But since “Uncle David" abdi- cated last December, bringing her a vital step nearer the throne, the little princess‘ training has been intensified a: a possible future Queen and Empress of India.

There are les‘ons daily in read- ing-, writing, French, scripture, arithmetic and English history- irom her Scottish governess, Mar- ion Crawford. Lessons in deport- ment and court etiquette iollow, and then play.

Was Native 0f Bellevue, P.E.l.

WATER/TOWN, Mass, April 20— Mrs. Annie MacKenzie, 86, a na- tive of Bellevile, P. E. I., died at her home here yesterday. The body will be forwarded to Harisville, near her birthplace, for burial and will be accompanied by a daughter, Eliza- beth, and a. son, Daniel MacKerizie, oi Quinccy, lviass.

Formerly Miss Annie MacPher- son she is survived by four other children: Mrs. George MboCrassen. Monclare, Muss; Mrs. Robert Hun- ter, Boston; Mrs. Newton MacL-eod Quinccy; and John D. MacKenzie, Bcllevue.

Alex MacPherson, Hyde Park, Mass. and John MacPherson, Belle- vue, are brothers and Ma's. Angus MacDonald of Valleyiield, P. E. I. is a sister.

lessons that

Government

Towards Teruel Iron Mines

WITH GO TROOPS with machine-gun and rifle fire.

NEAR. Tlllwml, Spain. Avril 20—- Spanish Government troops drove a bitter, two-plunged attack into the heart. of the Teruel iron mines today, executing s pincer-like man- oeuvre in an effort to wipe out ‘ ‘ “ _ Insurgents between two columns.

The Air Ministry announced Government planes had made 15 attacks on Insurgent concentrat- ions, bombing a railway station and warehouse, and raking Insur- gent lines with a steady machine gun fire.

Only 1o miles separated two Government armies converging on the toirn oi Celadas. near Teruel. their first objective. Insurgents

.ilflll

R uzvs REBEL BL OCKADE

Reache”; Bilbao

With Cargo Of

Food Supplies

Britain May ReTi-isider Policy In Regard To Shipping In The Bay (Egiscay.

LONDON, April 20--(AP)—The British freighter Seven Seas Spray ran the Insurgent blockade of besieged Bilbao today, bearing 4,000 tons of food supplies to the starving city, as 27 nations ringed Spain with an embargo to halt arms and men bound for the civil war.

Jubilant Basques cheered the ship's arl'ival in Bilbao and hastened to unload the food cargo, valued at between $125,000 and $150,000, which was expected to last the city a week.

The vessePs owner, A. J. Pope, was elated.

“I hope the Spray has blazed a trail and shown other shipping the way home-to Bilbao” Pope said. Other food ships are waiting at St. Jean de Luz, France, from which the Seven Seas Spray sailed on its successful voyage.

cllllllllllloll colllllliilll REAllY_T_ll sill

Prime Minister Mac- kenzie King Wil Head Long List 0

BLOOKADE INEFFECTIVE?

ue authorities interpreted the freightefls arrival as evidence of ineffectiveness of the Insurgent blockade which had warned ior- eign vessels away from the Biscay- an capital.

The Seven Seas Spray was the last ship to enter Bilbao without being required to give notice to the Non-Intervention Patrol seeking to control munitions and volunteer shipments to Spain.

British warships escorted the Seven Seas Spray to a mini 1° miles from Bilbao. (The Basque seaport lies seven miles up the Nervion River, open to ocean ves-

sels). . First n. comply with neutrality P a 1' l 1 a m e n t a 1' J rules was Captain J. “Potato"

Jones of the British ireighterSar- asione who sought tentative per- mission frolm non-intervention of- (C. P. by Guardian's Special Wiroll ilcials to sail ior Bilbao with his OTTAWA, April 20-50 mam: cargo of potatoes, onions, and Senators, Cabinet Ministers and wheat. members of Parliament will be in the United Kingdom this summer! The Sarastone anchored at Bor- that a regular nwegmg or m; 0981K. FY3309. 0"" "5 first at‘ House might be almost be held ill tempt to reach Bilbao was turned historic wesgmjmm; The gar-on. back by the Insurgent biwkiliie- ation and Imperial Conference have combined to draw the biggest com tingerli, of Canadian parliamentar- ians in years. perhaps in history.

ians To England. f

AWAl TS 0RD ERS

Capt. Jones awaited orders from the ship's owners ibeiore steaming toward Bilbao with a neutrality observer aboard.

Capture of the Norwegian steam- er Fagerstrand. loaded with snlt, was reported in Oslo dispatches. The Norwegian Government pro- tested to the Insurgent regime of l General Francisco Franco and i asked damages. v

non-interventionalists patrolled the

frontiers was taken over by 205 officers of the British, Danish, Swedish, Dutch, Belgian and Tur- kish armies.

MAY RECONSIDER POLICY

LONDON. April 20-iCP-Havzl.s) --Britaln’s refusal to give naval protection to its merchant vessels within Spanish territorial waters will be reconsidered if the Insur- gent blockade proves ineffective. the Government advised the House oi Commons today.

Sir Samue‘. l-Ioare, First Lord oi‘ the Admiralty. reiterated the Gov- ernment's intention to give British shipping full protection on (he high seas and declared:

“We shall follow the situation from day to day and if we came to the view that the sci-called blockade was not. effective, we would be the first to accept the new state of affairs. While we will continue to accept the pro-

(Continiled on page 3)

Troops Drive

MADRID. April 30—(A.P)-—Gov- ernment guns tonight bombarded the principal Insurgent gun em- plaoements on Gsrabitas HiLLwest. of Madrid, retaliating for a nine- day Insurgent shelling of the cap- ital that has killed more than 1i!) Mndrtlenos.

Ten more deaths swelled the casualty lists today duringa morn- ing bombardment that littered the Gran Via, Madrid's main thor- oughfare, with shattered masonry and glass.

During the afternoon, however, only a few shells fell in Madrid.

While more than 60 vessels of i‘: '"'

Spanish coast, control of the land lfifr?" '