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CHARLUFTETOWN. CANADA, THURSDAY, SEPTEMBER 2s, 1939

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, BRITONS HEAR

. MIND!

WAR

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ROYAL? NAAVY SDEFEA TS NAZI AIR MENA CE

’ (Strikes Deep

Info Pockets Of

, All Classes

Nation Shoulder-s Staggering Burden Cheerfully As Part

Of Three Year War” Policy Hitler’s Peace

“Win The Answers Pleas.

(By I. I. SANDERBON)

(Canadian Press Staff Writer)

LONDON’, Sept. 27-(0? Cable) -Adolf Hitler had his answer to- night from Great Britain to any peace plan he may be formulating -—A British budget which geared the fiscal affairs of the nation to the three year “win the war" policy pf the Chamberlain Government.

Sir John Simon, the Chan- cellor M tho Exchequer, brought gasps of astonishment from members of the House of Com- mons when he announced the heaviest tax burden ever shouldered by a free people to finance war against a common

on.

While staggered at the sacrifices demanded of everyone, rich and poor-and even the duds-the na- ticn tonight accepted it in that spirit of grim determination which has characterized Great Britain from the day war was declared.

‘Strikes At All Classel

Striking ruthlessly across the whole social and flonomic struc- iune of the nation, Sir John made drastic increases in income taxes. aurtax and death duties, added to the already high imposis on whisky. wine. beer. tobacco and sugar. and for good measure tacked on a 60 per cent excess profits tax to guard acninst profiteering.

Through taxation and borrowing the nation will be asked to raise £9. 000,00‘) 000 ($B.94U.000,C’l0) this yrar. Of that colossal sum 51 oer cent will be raised by taxation which is almost double the ratio of any fiscal year in the last war.

The Chancellor summed up his whole budget. his whole pkm to (no hidden cools of wealth and to hairless them to the war effort in these words:—-

"If the price of victory be Huh. it is a price worth pav- lwr. ‘It is i)“. v-rlcc o? our lib- crtv and all tl-"t makes We v-vwib Ii"‘"g in Europe and for nursclvcs." .

He described finance as "the frwth arm of defence" and said it is the prop first. su=‘ains "the \\""'c r-f our wm- effort."

The budget caved for a 35 oer rent basic rain-hon taxable income will n"xt lilnrch 31. ‘vhen (he fis- crl year ends. For 1040-41 (he rate w!" rise to 37.5 oer cent" until to- de" it was 27.5 no" cent.

Suricvrw r" lwnmes of wore tbcn P‘! "M ("l ""0 viere vaLvd sn that in 1040-41 th". "vii": of an imam" in excess of 230.000 will be tr""'l RS n" cent,

’l“*e bwrlen 0n the poor was in-

Coming Events

.-.0- Ihto for Notices in this column 8 cents per word,

"Tblkies—Eld0n lflidl .

creased by lowering the exemption marks at which taxation begins.

Britons Gasp

The averag: Briton gasped at the unexpeo dly drastic axation increases but the news shared

oud front-page headlines assert- me homo Fleet had scored s.- ga German warplanes in a sea engagement.

Essential portions of the budget became effective immediately when the House adapted them without a record vote.

Tax increases included: A penny on a pint of beer, two shillings to four shillings a gal- lon on wine, n. penny a. pound on sugar, a pm!!! and a. half an ounce on tobacco, taxes on estates and excess profits up to 00 per cent.

Si: John intimated the new tox- es would produce £l0'l,000,000 ($478,290,000) during the current fiscal year and fZ0850().000 (t1.-

,550,000) in the next full year.

The income tax in effect, he sold

“was to make the actual rate mount

(Continued on page ll, Col 6)

Gasofine Pflce Up 1-2

(Gent Per Gal.

TORONTO, Sept. 2'1 -(OP)—0ll company officials announced here tonight that effective tomorrow the fetail price of gasoline will increase one-half cent per gal- lon throughout Ontario, Quebec and the Marltimes.

The new price for a gallon of standard grade gasoline in Toronto will be 25 1-2 cents. Of this sum eight, cents goes to the Ontario Government as a tax.

Officials said exchange differ- ences bet-ween United States and Canadian currency was primaril responsible for the increase, whic follows the upward trend of other commodities as a result of the, war. (There is a 10 oer cent buying‘ premium on United States currency in Canada.)

Other factors were the increase of tanker rates and the high cost of o'er-risk insurance on cargoes frcm foreign ports, it was said.

Gallant Flier Describes Gity Under Siege

By Elmer W. Associated Press Staff

Peterson Writer

1.- ov-e-ar-ai. ' . -<.u=) - A ———— mffififsT Jfttébrai so» "TWP!" - MW“ Riv" Thum- a bomb- n. field in Warsaw and day. lrlM-ii-Tl-ii. m,“ w. a DUI-BBB of $1;- lig ooq a ibed o c .;.;....... air" "rniearairr- ‘T’ "‘° - m“ ‘lid Poe“ “P- . _ ck "Danes at MaoMillln House, “I351,” flfitflwfilnéfi toil‘; Wmww- “i”? "ilm- out or snow at down Monday. lrm-B-Il-IL rm make-mitt lone no puowd , "i" mode o safe lung somewhere in ‘Last Dance of Benson at Fior- Hung-yum w“ g mgdghjgwny time lie"- Ffldev- Btvéffllb“ ""h- oo Buds t. wool became of his Burkesorrchestro. Cl ford Peters, “no . a n om w n n does w. kn P1411!”- L-fllfi-v-fl-fl- m o fiosr told civilians mop rtsmsammmcinncciesi .. .,. °°“ “' '»‘»‘~=~,“‘,,,,“‘p ~ moms. , n-iea-n-zo-aa-ai. m w",,f‘fl,,',’f {fi- "M1315... ~nm~t or a mo» o nom- fidwfliélfl fifii . mat‘; Thursday nig t. Music b - K- of incessant marbling from besieg-

Y Dd his Oh l mm End. ‘ u. o L-fiwrhll-tfi.

"New Glasgow Hall ploy “The Poi-h Across Tho Hill" by Sesvlew Players, Friday. Sept. 39. - L-Biil-Q-Tf-Ii’.

” lngo, Dance and Pres Lunch in St. Patrick's School. Friday n ht §i"in"'d"§€.§'é“‘§n‘ if‘ “l” M?“ ‘i’

_. r . usp ncon J Lem-fl-

guns. e c ‘lanai rolomtlrtt a thick , never a over

s &y, growing blmohr 2?». day with new ires o dim t0 tho flames 0f Warsaw. _

In o. voioe which ot times sank to l. whis r he said: "Warsaw can not Ins forever - -but will for I while. Until Polish h satisfied. and onl then, will surmn. doo- be considered. Warsaw‘: ell-laps

Plane Sprays Hamlet With- Machine Gun

IJONDON, Sept. 2'! --(CP)— The British Press Association reported tonl ht that l. mystery plane twice odor hamlet of

number of bullets were picked up around the Ballachantuic

Hotel.

Bailrwhantnle is situated 10 miles from Campbcltown, Argyllohlro.

It is so small that it is not listed in most Garetcers. The hamlet is on the Peninsula of Klntyre which extends south- ward from the Scottish main- land toward the Irish Coast. Between the Peninsula and Ayrshire lies the Isle of Arron.

u. s. s u lP UPERATBRS i0|lGE_|fl_lilTEST M

See Reduction Of Business In Pend- ino- Neutrality Res- olution.

By Richard L. Turner Associated Press Staff Writer

WASHINGTON. Sept. 2'7—-(AP)— United States ship operators, fear- ing a reduction in their business under the pending neutrality resol- ution, protested sharply (today t0 congressional leaders in charge of that. measure.

Their requests for changes in the resolution were met. it was said with a firm "no" and a statement that the legislation was intended to keep the United States out of war. with other considerations secondary.

The congressional leaders further told the shipping DQODIe that if. by January. when congre=s meets regular session, the act should ap-

disadvanvnge, legislation could be enacted then for relief of the ship- pefi.

The protest cepie. it was said. from United Sin es lines. from (‘be "m" "M from firms oneratin" their nwn shins to imoort fr"'* IFFWH Fnv\‘\‘\ owl fl-vifral America and the islands M fhe Caribbean. and from Pan American airways.

Germans Glaim Surrender 0f Polish Gapital

(By Alvin J. Steinlropf, Associated Press Stuff Writer)

BERL N, Sept. ZV-(APJ-Beslegcd Warsaw, reported laid waste by bomb,_shell and fire, surrendered ilncaxiultlonauy tonight, me Nazi high command claimed.

The German communique report- ing capitulation oi the Polish cap- ital offer 20 clays, of msuern siege shared attention tonight with the expectation in informed quarters that a for-reaching German-Rus- slan accord would result from the flying visit of the Nazi Foreign Min- ister, Joachim Von Ribbentrop, to Moscow.

Warsaw probably will be handed over to the besiegmg Nazi Army Sept. 29, the high command said. General Johannes Von Blaskowitz has been ordered to arrange terms of surrender. .

(The Warsaw radio, which almost throughout the siege had been on the air with oxhortotione to War- saws citizens and soldiers to resist the invaders, was hoard in Budapest as late as 2:5 pm. today-OH!) am. A. S. T. its announcer insisted the city still held out and would resist to the last.)

The‘ surrender in the German view, marked the end of the short but, furiously-fought: “var which started 2'1 days o.

The German h h command, tor the first brie on cement, issued a second communique u fol-

wit...“ has oapitulaled uncon- dltionally. Formal surrender on the cit to the German Anny command will take place Sept. 29."

“It is established the military

garrison (Polish) occupying the cit exceeds 100.000 men." it was regarded likely the Ger-

mans have exacted effective guar- antee; lo prevent attack by tho cgvn n population upon the oo- cupy ng force, and have a military government ready lo enforce such measures, to remove prisoners, re- lieve distress and stamp out any

Nfllfi i0 IiVO AID." .

incipient épidemics.

HHVJHJHH‘

pear to be wonkimr to their serious With

(By TAYLOR. HENRY) . (Associated Press Stuff Writer) PARIS, Sept. 2'1 -(A.P)—Ado1f

Hitler was reported tonight to be speeding concentration of Noni troops on the western front

to an attempt to induce Great ri- tain and France to discus pro- posals he will advance as peace

terms.

Advices reaching Paris from Germany through neutral countries indicated I-litler was preparing make a formal offer of peace based on the status quo resulting from partition of Poland between Ger- many and Soviet’ Russia.

oth Britain and France are officially and repeatedly on rec- ord with the declaration there will be no peace until the Hit- ler regime has been destroyed and Poland's independence re-

stored.

Most military as well as diplo- matic signs. however, pointed to the possibility of a German offer- perhalps before the end of this w

eetk. It is for this reason that l-llt- ler was believed to have sent his

Foreign Minister, Joachim Von Ribbentrop, to Moscow today ostensibly to put the finishing

touches on the partition 01f P0-

Aotually Von Rlbbent ‘ was reported in Paris to be I! to persuade Joseph Stalin to sign, or at least flve the lm-_

.- 9

.HHkw Ihmoflmd Mass ing Troops As Peace ‘Pressure

presllon that he is willing to

sign, a Military Alliance which

Germany could use as s threat

against Britain and France un-

loss they were willing to end tho war on his tennl.

It was for the some reason that Hitler was believed to have issued urgent orders to his High Com- mand to break up remaining re- sistance in Poland quickly so there would be no semblance of resist- anoo left there to which Britain and Frame could point.

. Trains were lI-iff to be mov- ing in a stead stream across German)’. Poul‘ g more and more troops into the Siegfried fortifications. Squsdro after squadron of warplanes were rc-

orted shifted to the west. itary advices indicated these transfers of men. guns and planes now practicsil had been complet- ed under filters continuous de-

mands for . Operations on the western front

tonight showed German artillery

is -- trating its fire on the four main salient! which the

French have driven into Nazi ter-

tactics appeared to be to try to keep the French high command constantly aware of the immense German forces being held in re- serve as well as the ever-preach

lbiiiw that th might be firmed loose in a malor offensive.

increase Shown In Employment

UITAWA, Sept. 26 —-(CP) —Oan- mum industry increased its pay- rolls substantially during‘ August. it was disclosed today in e monthly employment, situation re ori; of the Dominion bureau of stat tics.

On Sept. l, viding employment for wankers, an increase of 20.247 over the number for Aug. 1 while on Sept. 1, 1938. there were 1.103.989 persons employed by 10,915 business establishments.

Employment in the Maritime Pro- vinces 8s a. whole showed improve-

in ment. The 820 firms had staffs ag-

gregating 85,972 persons compared

85,416 on Aug. i while on Sept. 1. 1938, the payroll of 598 firms to- talled 82.972 workers. Construction, shipping and communications pro- vided increased employment while maufacturing. logging and trade re- leased employees.

R. C. M. P. Constable Rescued Fro» l‘ ""1

FREDIZIRICTUN, Sept. 27- (GP) - After clinging to an overturned dory for twohmu-s R.C. M. P. constable R. K. Ackman was rescued from the Bt. John River at P per Gage- ttiwint yesterday, it was learned t0-

B

The constable was on solitary migratory game bird control when i-he engine of the police motorboat Grand Manon caught fire. He lsunchel a dory from the motor- boat but it overturned, Shore resi- dents finally saw his plight and (Jame to the rescue nfler he had drifted nlmost a mile. The Grand Manan burned to i-he water's edge.

.10."!- Til

Organize Defence llnit

27-60mm is- Royal

CYITAWA, Sept. sinner S. T. Wood of the Canadian Mounted Police announ- ced tonight that his force had re- ceived authority to “recruit and organize a unit for inclusion with the national defence forces for wsfservice."

The brief announcement of the commissioner added that “the unit will proceed overseas if and when required."

Labor Congress llrgeslissistance To Fishermen

I

LONDON O. T» Sept. 26 —(CP) —Two resolutions intended to im- prove the living conditions of At- lantic coast fishermen were endors- ed today by the convention of the trades and labor congress of Can- ada. Both were sponsored by J. A Sullivan of Montreal, president of the Canadian Seaman's Union.

Ono resolution asked that tho federal overnment assist fishermen in estab ishing co-operatives for the processing and sale of fish.

The other asked that freight rates for fish on government vessels and on lines subsidized by the govern- ment be cut aDDroximatcly in half.

l Situation At A Glance

.1

phone carrier and do

Baltic Sea, '

vanoo lines near Wlnembou [-

for civil populations of ,

BUDAPEST-wallow radiogsoyl asserts 3,000 civilians illlod in day's bombardment.

(By The Canldiln Proll)

LONDON-Great Britain imposes heaviest taxes In history to fin- once war: new budget hits all classes; Admiralty reveals German air attack on naval squadron; announced “no British ship was hit" and says one German plane shot down, another badly damaged.

BERLIN-High Command olahns unconditional surrender of War- saw; sir force reports raiding British fleet, "destroying" an unnamed air- a battleship.

capitol a' "destroyed inferno";

MOSCOW-Soviet Government announces torpodoing and sinking of Russian ship off Estonian oout; German and Soviet Foreign Min- gf- Hilton oonfor; reported unofficially Insole demanding oomessionl in

PARIS-Germany reported by French to bo speeding troops to western front to force discussion of pesos on status quo basis.

BASElr-Gennsn patrols reported to have broken into French od-

PANAMA-Urugusy fights ban on shipment materials destined nations.

WASHINGTON-Congressional leaders reject protests of ship oper- ators in framing neutrality legislation.

J

ritory. At the some time, the German i

i t‘

Goebbels Making Promises?

BUDAPEST. Sept. 27- (APJ-A Polish officer who flew here from besieged War- saw today told nswspaperlnon that on some "captured German prisoners we found smphletg promising them that by Christmas Propo- ganda Minister Goebbels would speak to them from London.” The officer was Rent.- Colonel Mateus Izyoh .

EHHHNVEIoHHfiHHVnHHHHHHHY

SUVIET i N A Z I TALKS MAY BE (FAR REABHIKE

May

Developments

Rival Non -A2‘g‘res-'-

sion Pact Is Belief Held In Some Quar- to".

(By w:'r'r HANCOCK) (Associated Press Staff Writer) Moscow, sem- WARP-The

soviet Government wnlSht "m" ounccd the sinkin-z (‘l R EJ155133 vessel off the coast of Estonia by an unidentified submarine as im-

portant German-Russian diplo- matic talks were opened at the Kremlin.

The announcement that the 4,- ooo-ton freighter Metallist had been torpedoed and that five 0f he!‘ (new of 24 were missinu came while the Soviet press sharply attacked Estonia, accusing the little Baltic nation oi’ harborlllS “will M995 r01‘ foreign powers.

Arrival of the Gannon Porelzl-‘l Minister, Joachim Von Ribbon- trop, for conferences with Soviet officials coincided with the comlnS of Estonia's Foreign Minister, Karl Salter, for a second visit here in three days. and with talk among diplomats (hat a Gennan-Soviet military pact might be in the mak- ing. .

The presence in Moscow of the Turkish Foreign Minister, Sukru Sa- ‘ , led diplomatic quarters to speculate that Rus- sia might spring another lur- prlse on war-torn Europe, fol- lowing the now-historic Rus- sian-German non - aggression punt signed Aug. 23 during Von Ribbentrop’! visit on the eve of

Germany's invasion of Poland.

(In Helsingfors, Finland, sources close to Estonian officials said the Baltic State was submitting t0 Soviet demands for transit rights across Estonia and commercial and naval concessions on the Estonian coast.)

Von Ribbentrop held the first conference of his second visit to

(Ccnifnucd on page B, Col 4)

German Patrols Gapture Rail Junction, Report

BASEL. Switzerland. Sept. 2'1 - (AP) -German patrols were re- ported in advices reaching Basel

night to have forced through French advance lines east of Wis- sembcurg to gain control of an im- portsmt railroad junction in that area of the western front.

These reports said the junction apparently concerned was the point where three rail lines -from Lauterbourg, Landau and Hagenau -joln before entering Wissemroourg.

The new positions, according to these advices. also gave the Ger- mans fire control over a network of highways and roads behind Wis- sembourg.

Military observers said the ob- jective of the Germans might be either to reach the strategic l-loch- wnld Forest heights southwest of Wlsscmbouzg or simply to cut un- der the Laute bour- defences in tho Rhine-Lou triangle,

The latter move, these observ- ers said. would bring the war down along the Rhine where reports ne- ceivcd here said increased military preparations were noticed on the German side.

Large bodies of troops were re- ported moving along this line. The elaborate Gcnnan preparations were llhflfi‘ way in full sight of Easels suburbs.

Driven

Fleet Describe

LONDON, Sept. hailed the Admiraiiy’s claim

force “successfully attacked North Sea, “destroying” an severe hits 0n a battleship.)

British iaciicians called

plete failure.” Naval circles

The British version of the en- gagement was given to the House of Commons by Winston Churchill, First Lord of the Admiralty. after an inquiry by A. V. Alexander, (Labor) as in the truth of a Ger- man communique claiming Nazi aircraft had destroyed a. British airplane carrier, swred "several severe hits on one battleship” and escaped unscathed,

Mr. Churchill said the home Fleet Commander, Admiral. Sir Chanes Forbes, reported .2’. ap- proximately a score of German planes attacked a squadron of British capital ships together with an aircraft carrier. cruisers and destroyers.

"No British ship was hit and no British casualties were in- curred," said Mr. Churchill. “One Germain flying boat was shot down and another was rs- poried badly damaged."

The House cheered vocifer- ously, and then he added that another German plane came down in the North Sea and with her crew of four was picked up by a. British destroy- r.

The Gennan attack on the Bri- tlsh Fleet was the second major engagement of the war between sea and air forces. On Sept. 5 Britain reported a. flight of its planes raid- ed German warships at Wiihelms- haven and Kiel, inflicting heavy damage by dive-bombing.

British accounts of the lat- est attack, 150 miles off the Norwelgian Coast, tho failure of the Germans to score hits to their leluctance to dive low in the face of Brit- ish anti-aircraft fire.