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If it’s Good for the Island -

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- WEATHER

Mostly clear and colder; northwest winds 15, shifting in evening

to southwest; 20, 4

Low-high 13 and ee ; “Covers Prince Edward. Island Like Thé Dew” ¥ VOL. LXXV, NO. 20 RE ee end coe oa OWN, CANADA, WEDNESDAY, JANUARY 2%, i902 7 SOL MONT SEVEN CENTS id PAGES

PM TABLES COMMISSION REPORT |

Bold Blueprint Prepared _To End Transportation Ills

OTTAWA (CP) — The federal icy, said the report, should be| In this light, the commission -beenhanded-a—aimed at creating an efficient said that rail subventions on

government: has blueprint designed to solve

national. transport - policies ahd regulations. ” ,

Prime Minister Diefenbaker | tabled the commission’s second |

the Commons Tues-

last April the government now has the royal commission's

overall prescription for trans- portation. . In essence, the. commission

recommended: that Canada’s big wala be turned loose for a f or-all fight against trucks, . ships,, planes and pipelines. Old rules, out-of-date legisla- tion, restrictive regulations, tur-

: as normal busi- nesses, the report said. +. =

&

PROPOSE FORMULA

It proposed a new formula for setting freight rates based on ‘ailway eosts, which would atiol- ish the need for across-the-board stant sore. spot -with the’ prov- inces in post-war years.

The--six’+--man commission placed a comprehensive list of recommendations before the cabinet, including proposals for:

1. Creation of a new. national transportation council to help formulate transport policy.

2. Repeal o° several current transport subsidies amounting to more than $30,000,000 annu- ally.

3. Reappraisal of other sub- sidies, involving federal pay- ments each year of some $26,-

4. Special tax concessions for Industries — chiefly the grain- handling industry in Westérn Canada-—to ease the impact of railway branch line abandon- ments

5. Special aid for Newfound- land. to roads an? grain storage facilities.

COMPETITION IS ANSWER

Competition, not regulation, ls the answer to the troubles of transport in Canada today, the report said. .

Tabling the -report in thé Commons, Prime Minister Dief- enbaker said it would be. thor- oughly examined and consid- ered.

In effect, the report took up

.@ challenge sounded recently by

CPR_ president N. who said:

‘Throw us to the wolves. Let us see if we can run with the pack. If we can’t compete in an open market. then we should not exist.”

The blueprint calls for all non- statutory freight rates to be set free — -except those levied on traffic proved to be .‘‘captive” to the railways, ‘which would | come j rate formula. 3

It also urges that most old” railway rules be scrapped, free- Ing the railways to abandon by

: unprofit- able operations. :

WOULD STREAMLINE

R. Crump

transport system on land, in the | air and on water. i

Present transport legislation, regulations, federal subsidies, freight rates and all other as- | pects of transportation should be considered in the light of ef. ficiency, andamended accord- ingly. “ .

|

transportation spokesmen re- acted. cautiously Tuesday to! sweeping recommendations of | the -MacPherson. royal commis- sion on transportatioa. , |

“Seunds more realistic,” sad | Charles Moffatt of Sackville, | N.B., secretary of the Maritime | Motor Transport Association. |

«From our study of the com-|

mission's fifSt report we had a good idea what was coming and preliminary study of Tuesday's ; -report confirms our hopes.”’ The good news for Maritime truckers was a recommenda-

' eligible. : ™

Report Sounds Realistic, Truckers’ Spokesman Says

HALIFAX (CP) — Maritimes , tion that all freight carriers: re

| lantic provinces would be with- [

goods moved within the Atlan- tie provinces, except Newfound-

$10 Increase Rev For Old A

land, should be abolished. The ion remaining 30-per-cent subsidy Atlantic goods moving into cen- tral Canada should be continued and opened up so that all car- riers—chiefly trucks—would be ~

ceive subsidies on shipments to | central Canada from the Atlan-" tie provinces. Also, subsidies on ~ rail shipments within the At

drawn except in Newfound).

A. M. MacKary of

fax, chairman of the Mari- times: Transportation Commus- sion, said at first glance the commission has reached some “intriguing and interesting con clusions:”’ a Both Mr. Moffatt’ and Mr. MacKay withheld further com- ment until they-could study the

Long-Term

Improved For Farms.

BANFF, Alta. (CP) — H. H} Hannam, of Ottawa, president | of ‘the Canadian Federation of | Agriculture, said Tuesday he| sees no prospect for improved farm income in 1972.

Bub there was an improved | long-term outlook in the field of | farm policy, he added. |

“Definite gains have been! made in farm policies, : both |

domestic and inter. LS ee pew

US, Plan ror Cuba

e

PUNTA DEL ESTE (Reut- ers) — Argentina was reported Tuesday gaining support for a United States-opposed plan to postpone collective action by the Organization of American States against pro-Communist Cuba.

Informed sources sajd_ the plan, which would put off ac- jon at Té : peared to be winning wide- spread support from OAS for- eign ministers meeting in this Uruguayan resort. ,

plan has at least a fair chafice of breaking a deadlock—

4 2 _ LONDON, (Reuters) ‘— Brit-

a

report in detail. } )

Jutlook ~ | Be

Ya

#

the. benefits of these will show more distinctly as the programs | develop,’’ he told the CFA's 26th | annual meeting. . Among national policies, he said, the Agricultural Rehabili- tation and Development Act had the greatest significanee. | Its prospects for rural develop- ment were great. It improved theCoutlook of families on sub Marginal farms, could create ana i

THE 53 CHEV, in which 17- | year-old Leo Deighan of Freetown was killed last evea- ing when it collided with a

how the growth of the Common Market will injure or help Ca- nadian farmers, but’ sooner or : later we may lose much of the, han, 17, of Freetown —was -killed | advantage we have through | instantly last evening when the Commonwealth preferences.” car~ he was driving slammed He ‘proposed the CFA place | into the engine of' the Charlotte- “a competent representative of ’ our own appointment” near tae headquarters of the Common Market authority in Brussels for-a-few years “to watch over Canadian agricultural inte r- ests."

~ WASHINGTON (CP) — The! state department said Tuesday it considers Prime Minister Diefenbaker's proposed restric- tions on “non-Canadian maga- |

> . Smallpox Takes - Another Victim ain's smallpox outbreak claimed zines as neither proper not |

itsese venth victim’ Tuesday | Practical to foster developments amid growing demands-for spe ofa Canadign publishing indus

cial measures to combat the {ry :

disease, = : . The latest victim was Dr. N.——~ he reported plan of the Ca

J. Ainley, 37, a pathologist who nadian government for the dis-

allowanceof income tax deduc-

earlier had cared for another 2%! — Se 3 tions for advertising in Cana-

smallpox victim. -

which has prevented the minis-

«All this would mean the rail- ters from starting working ses-

: policies

-

ways would be streamlined into & main - line operation. with trucks filling the “branch line” tole_as feeder carriers. National transportation _pol-

Railways Have No Comment ~

MONTREAL (CP)—The CNR and CPR have no ‘immediate comment on the recommoenda- tions of the MacPhersen royal commission on transportation, | eee spokesmen said Tues- y. The commission’& report—ree- ommending -a ‘ sweeping — over- haul of federal transportation and regulations, was the Commons. Tues-

tabled in

~ day.

Spekesmen for the railways said the companies would have no comment until officials have had an opportunity to study the report and its recommendations.

Local Officials

Decline Comment

)

sions—over whether to take ac- tion’ now or in the future.

The American ition was reported stiffening. The United States has insisted on drastic action now against Premier -Fi- del Castro's regime.

Railways Make

|dian editions of foreign maga-

7 zines is of the same _ genera! Change Sought _

character as the 20-per-cent tax a previously imposed by the “a- In Riding Name OTTAWA (CP) Edmund

| madian government on the ad- vertising revenues of Canadian | editions of foreign magazines:” Morris (PC — Halifax) intro- duced Tuesday in the Commons a private bill which would

the state department spokesmats said in a statement commenting on’.the prime

change the name of his riding nouncement. f ! to Halifax, Dartmouth and The 20-per-cent tax, was 1m County, | posed by the former Liberal ad |

SUMMERSIDE — Leo Deig-:

| effective.”

train at a Kensington cross- ing, was turned around par- allel to the twin-engine ‘train before the train came to a

Freetown Youth Is Killed tenne ott sat ty. Collision Of Train-Car

town-Tignish train at the Vic- toria ‘Street East crossing’ in Kensington. .

The accident occurred at 6:35

‘p.m. when thé 1953 Chev, in

U.S. State Dept. Opposes Restrictions On Magazines _

ministration and repealed by the present government.

The state department spokes- man said the previous tax .was withdrawn by the-present ad- ministration as just and in-

In Ottawa there was-no im- mediate comment from the gov-

ernment. Qualified‘sources said | thé government would await an |

approach from the state depart- ment for an opportunity to pre- sent its views,

minister's —an-——

WHERE-TO-FIND-IT

Announcements, notices . 12 Births, deaths, ete., .... 2, 7 Classified. .......... 4, 12 Finance, markets ........ 10 Comics, features "veeeeees 6 Sport :

Editorials ............... 4 S’side, Prince Co: ........ 2 Kings, Queens, city ...... 3

ieéeee 5

| halt

—badly

~~

The front end of the vehicle, as seen here waa smashed by the im pact.

*

which the victim was driving alone, struck the front engine of a twin-engine train that was pro- ceeding towards Summerside. The crossing where the accident took place is on the road lead- ing to Margate and the car was proceeding up an inclined street when it”struck the train.

Dr. R. H. Kennedy was sum- moned and had the victim re- moved to Prince County Hos- pital.

The coroner Dr. W.E. Callag- han ordered an inquest after a jury was empanelied oy the RCMP. No date was set for the inquest.

Conductor of the train was John Court. John Egan was the engineer and Charles Deighan the fireman.

The youth is survived by his parents, Mr. and -Mrs. Charles Deighan, and by three sisters and one brother, all at home, Marina 19, Donna, 15, Carl 12 and Margaret Rose 10.

The boy’s father is a farmer and is not related to the mem- ber of the train crew by the same name, it was .

Members of the Summerside detachment RCMP. headed -by Cpl. Calvin Bungay investigated.

Members of the jury include: Bruce MacLeod (foreman), Stew- art Peppin, Clair Mayhew, Gor- don Kennedy, Lorne Glydon, James A. Ramsay, Charles Bea-

‘irsto, all of Kensington.

Surprise Offer In Union Talks

/

MONTREAL (CP)—Canada’s railways broke their long-estab- lished-custom Tuesday and pre-. sented, on the first day of con- tract talks, a series of pro | posals to. 15 unions bargaining | for the railways’ 110,000 non-

ion reaction to the proposals, = | No details of the proposals were made-public but they were , considered by some observers as likely:to include some toward matching the unions’ de « mands i

°

ge Pens

f na ros ue

U.K. Bans Arms To Indonesia

LONDON (Reuters) Britain has ciamped a ban on arms

shipments fo Indonegia until (ae dispute between ‘the Nettle. tands and Indonesia over Dutch held West New Guinea ig ‘‘clar- | ified,’ it was announced Tues- day.

Nfld. Woman Fatally Injured

ST. JOHN'S, Nfld. (CP) -Mrs. Emily Squires, 86, _ of nearby | St. Phillips died Tuésday of in- | juries and burns believed to | have received when she fell | down a flight of stairs at her home while carrying a lighted lamp. The lamp exploded, set- ting her clothing on fire. The house did not have electricity. :

Glenn Hopes Orbit Flight \ Goes Saturday

CAPE CANAVERAL. Fa (AP)—United States astronaut John H. Glenn Jr., checked his repaired space capsule for an hour Tuesday and apparently found all systems working pet- fectly.

Glenn's planned flight three times around the world through Space was postponed from Wed- nesday to at least Saturday by the malfunctioning of an oxygen supply system.

“It appeared likely now that Glenn would be launched on nis historic flight Saturday.

The moon-shot Mhown as Ran- ger 3, which was to have takea pictures of the moon and te have placed’ an instrument

be postponed until Friday after @ fuelling Mishap.

package on the surfacg_ of thi earth satellite Monday, had “to @nbaker, said the prime minis-

a

‘

ea ions

led

PM Outlines Details

|and could be raised to $75. ' Mr. Diefenbaker said the gov- ernment will also introduce leg- islation raising allowances for the blind and the disabled,, and old age assistance to needy persons fn the 65-69 age bracket “fon the same basis.” . The fed government pays all of t age pension but shares with the provinces the

+tost-of the-other_programs,con-

tributing three-quarters of the $55 blind allowances and half of the $55 disability and old age

/assistance payments.

Tuesday's anno uy e ment meant the governme: intends to add $7.50 monthly to the blind allowances and $5 monthly to the old age assistance and dis- ability payments, leaving it to the »rovinces to decide whether to add the other $2.50 and $5. respectively They can add more. ¢

FORECAST IN SPEECH The increases were forecast in the throne speech at the open-

session Thursday. It also said moves were under way to get provincial concurrence in a con- stitutional amendment for a contributory, portable. _retire- ment i supplement, and Mr. Diefenbaker made public a letter to the premiers on this subject Monday night.

» Mr. Diefenbaker recalled that the Liberals, who introduced the universal old age pension in 1952 at the rate of $40 monthly. payable to everyone 70 years of age and over, had raised it to

se of the new parliamentary

1 In Commons Speech

$46 in 1957 on the eve of that year’s general election

“The Liberals are the same old group now ‘as they were then, the same assortment that

said $6 was enough in 1957," he said. The ee Ney raised the rate by $9 to $5

when they took office in 1957

—he prime minister noted ‘hat the New Democratic Party had advocated a hasic pension=-rate of $75 a month. He quoted Mr. Pearson as saying that such an

amount was ridiculous and could not be provided Mr. Pearson jumped to his

feet to explain that he thought $75 a month paid to evervone 65 and over, rather than at 70,

~Wwas responsible at that time.” PREDICTS REACTION

Mr. Diefenbaker then turned

on Hazen Argue. suggesting the NDP’s parliamentary leader would call the increase ‘‘a_pit- tance’’—-words Mr Argue pused Jast session tn describe a Con servative farm aid program However, when Vr Argue spoke later, he said the increase to $65 was good. bu! too ‘ong delayed. He said the NDP plat- form called for a basic pension of $75, and a contributory med- ical care program for everyone. Mr Diefenbaker said he would speak further on pensions when ,a_ bill is presented to the Commons raising the hase rate

to $65 a month He made no mention of how the additional burden on the treasury would

be horne, or how large it would be

Offiet estimated earlier that a #10 increase would cost $120,000.000 without connting in-

creases in the other shared payments for the blind - dis- abled. and old age assistance

The latter are paid on the hasig of a means test

Hazen Arque Denounces Federal Gov't Policies

By ARCH MacKENZIE

OTTAWA (‘(CP)—New Demo cratic Party denunciation of government policies was capped Tuesday by a non-confidence ‘motion’ urging expanded export markets, full employment and a prepaid medical care pro- gram for all Canadians.

Hazen Argue, parliamentary leader of the CCF-New Demo- cratic Party group, moved the motion in the second day of the Commons throne speech debate.

It was defeated 155 to 49 Tues- day night—the Liberals backing the CCF-NDP. The Liberals’ non-confidence motion wil] -be disposed of later.

Earlier. Prime Minister Dief enbaker finished his lengthy contribution by announcing a $10 increase in the old age pen- sion paid all Canadians at age 70. It now is $55 monthly

Trade Minister Hees. mar shalling stacks of statistics as evidence of progress under Con- servative rule since 1957, said co-operation among goverpment management and ‘abour could make 1962 the wealthiest year in Canadian history.

Mr. Argye. following Liberal

er..Pearson and Mr. Dief-

ter’s speech had been his Jong- est yet and ‘‘most barren.”

JUDGING BEGINS TODAY.

»

~ Ry

City.

government inaction and drift. Canadians had been |ns- ing at least $40 to $50 annually since 1957 in income

Handle legislation :mmedt- ately and bring in a budget he

fore any general election § is called. Mr. Argue submitted. > Mr. Argue said the govern.

ment should move to assuage Quebec restlessness by bringing in bilingual cheques and hy bol- stering the province's —cabinet representation. Transport Min- ister Balcer, no special friend of the prime minister, was the only front-hencher in the Com- mons and the five other Quehber ministers held junior roles

Mr. Hees reviewed publishea figures by the Dominion Bur eau of Statistics in his claim that the Canadian economy is moving upward = substantialle That i indicated, he said, in the gross national product. per- sonal savings. total personal and labor income. exports and corporation profits

W. H. McMillan ‘J.—-WelJand) said the year 1961 had started and ended on a comic-opera

note —from the much publi- cized signing of the Canada U.S. Columbia River agree

ment te the cabinet shuffle that failed ® materialize at Quebec

a

Memorial Building Design

Will Be Selected From 47

TORONTO (CP) "A seven: man jury assembled here Tues- day to choose among 47 an

' submitted by Canadian arc

*tects for a Charlottetown cul- tural centre that will serve as the nation’s iirst permanent memoria) to the Fathers of the Confederation.

Examination of scale modeis and drawings in fhe $15,000 competition begins today in a Noth Toreate. elfige building. Jury members except to spend three represent ta will receive $7,500 and a con- ‘tract to supervise its full-scale jeonstruction im Charlottetown.

studyipg entries { sy al regions of Contite,

Second prize is $5.000 and third prize is $2,500. .

The prjfes will be presented next Tuésday at a dinner in “- tawa to be attended by Gover- nor-General Vanier and Prime Minister Diefenbaker

The competition was financede with a Canada Council grant of $230 000. ~ BUILD ON SIX ACRES

The memorial. containimg a 1,000-seat theatre. libraries. art

galleries and a museum, will stand:on a six-acre square in the centre of the Prince Edward Island capital.

It will be built beside the 11+ year-old Provincial Legisia'ure | Foundation

Estimated cos: of the projet Js Delu ra an )

000.008: The foundation hopes to gather funds. Meas and repre

sentative material from. afl parts of Canada

Professor Eric Arthur of [or- onto Universitys Schoo’! of Architecture, heads the jury as architectural adviser % ‘he Foundation

Professor John issel ot Manitoba University’s School of Architecture. Montreal arch itect Marcel Trudeau. lawver Eric Harvie of Calgary Domim ion archivist Kave Lamb of Ot

tawa and Dr. Frank MacKip- non, principal of Charlottetown's Prince of Wales (College. com plete the panel of judges.

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