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"Covers Prince Edward Island Like The Dew" CHAiu.o'r'rE'rowN, CANADA ERIDAY, MARCH 15. 1957

INCREASED FREIGHT RATE SUBVENTIONS

Claims Marilimes Failed

To Meet P.M.'s Challe

"We are losing our case in the lliaritimes by default." said Wil- liam Acorn, Liberal, First Kings, speaking on the Draft Ad- dress yesterday. Mr. Acorn was the last House member to speak on the motion of the Address in reply to the Speech from the Throne.

The Opposition amend- ment charging the Government with indifference and inertia in its presentation of Island claims at Ottawa was defeated by a vote of 24 to 3. Mr. R.R. Bell, the Leader nf the Opposition was back in his seat after two days of illness.

Mr. Acorn said nothing had been done regarding Prime Min- ister St. Laurent's challenge to come up with some Maritime pro- ject at which time he would con- sider giving ald to such a project. "Our fiscal needs have not been fulfilled," he said.

NEED FIVE MILLION

He felt the Island in order to get its just share was entitled to five million dollars more from the Federal Government. He based his opinion on the fact that the Government is budgeting for n 52,000,000 deficit while the debt charges amount to a million and A half. At the same time he felt the island should participate in the National Health and Insurance plan which in turn would cost an- other million and a half.

Comparing the Maritime eco- nomic situation to that of the rest of Canada. Mr. Acorn referred to a recent newspaper editorial in which it was stated that Prince

N. B. Legislators Get Pay Boost

FREDERICTON (CP) - New Brunswick legislators Thursday tnted themselves a 3100 pay boost raising the total individual remun- eration to 33,600.

Previously they received a 82.- 500 sessional indemnity plus 31.- 000 for expenses and 3500 for con- tingencies. Under the new setup ll11'.V will receive I 32.400 sesslonal lnlemnlty plus 81,200 for ex- penses. Salaries of cabinet min- asters remain unchanged at 37,500.

Edward Island was spending li.6 per cent of its total revenue for debt charges; New Brunswick 10.6 and Nova Scotia 14.1 while the average in Canada was only 6.9 of its total revenue.

The editorial went on to say that Newfoundland at the time of Confederation had 866,000,000 of its 372,000,000 lifted by the Fed- eral Government and at the same time was allowed to keep a 345,- 000,000 war surplus. In Alberta where the Province is almost free of debt they were allowed to can- cel a 55,000,000 relief debt that had been loaned to them during the de- pression while the interest of 35. 000,000 on another loan was also cancelled.

STRENGTIIEN CLAIMS

”It is the duty of every member of the Legislature to bring forth as many suggestions as possible to our Premier so that he along with other Maritime premiers may have his hand strengthened when the next claim is presented at Ottawa," said Mr. Acorn.

The Souris member noted that the Atlantic Province Premiers were in complete agreement on the need for better roads. a cause- way and reduced fr-eight rates, "I notice that the Gordon Commis- sion recommended the use of more trucks, on the Island. They didn't tell us where we were going to get the money to pay for the roads for the trucks to travel on," he observed.

Mr. Acorn noted that a current press report revealed that the Can- adian National Railway had finish- ed l956 with a 322,000,000 surplus and that the Railway was budget- ing for s 87,000,000 surplus for this year. "I would think that with figures of this kind there should be some relief from the exorbitant freight-rates we are being asked to pay." said Mr. Acorn.

EAT MORE FISH

"Now is the time to advocate in- creased consumption of fish," said Mr. Acorn who noted that out of a population of 16,000,000 Canada consumes only 13-14 lbs. of fish per capita. He also noted that the cold storage fish holdings were fairly substantial at the present time and so long aI'there'was fish

WILLIAM ACOR.N.. M.L.A.

in storage in large quantities. there was very little hope of see- ing an advance in price.

"If we were to raise the con- sumption of fish by 54 pounds per person it would eliminate all the stocks in storage and if this were accomplished it would be one of the greatest shots in the arm the Maritimes has ever had." said Mr. Acorn.

To accomplish this greater con- sumption of fish, Mr. Acorn sug- gested that Ottawa use the Gov- ernment owned Canadian Broad- casting Commission to put on saturation program from coast to coast emphasi X the value of fish from a protein standpoint along with a number of selected recipes for tasty fish dishes.

I00 PER. CENT PROTEIN

Mr. Acorn said fish was almost 100 per cent protein and in com

cheaper. On the basis of five pounds he said eggs would cost 81.98; poultry 81.32; meat 81.06 and fish 38 cents.

"If the price could be raised two cents per pound." said Mr.

Acorn, "at present produgglon in (Continued on Page ll, )

School Visits Planned By Education Committee

A visit to city educational insti- tutions this morning will he the first task of the recently appointed Select Standing Co 'wc of the Legislature on Education.

The Committesunder the chair- manship of Frederic A, Large Q.C held its first meeting yesterday morning to discuss matters of pro cedure. All members with the ex- ception of Mr. Leo Rossiter were present.

Considerable variance of opinion VII Gllirassed as to how wide VG"! 01! Powers of the Committee with Messrs. Morley Bi.-ll nnd nnn. vey Douglas expressing the feeling that they would be cnnnnen go the terms of the resolution which was presented to the Wgljtum "Hill! for the appointment of the Committee. Mr. Bell felt the Com- anittec should not go out seeking eta as its powers were confined I” "'9 hearing of presentations.

ME Douglas believed the power; yvere wider than this but thought urther instructions on their duties should be received from the Pre- mkr.

At that point Premier Matheson, an ex officio member of the com. miltee, said the mcmbe !I were fr,:e to e ' the subject in it atever manner they pleuod nnd lip "10! wished to visit various ;diools to see for themselves what a(lIlllE3 were available and what rnnditions of teaching actually migrthen It was so much the

I'l.EDGES C0-OPERATION

He also promised the members """Pl9l9 f-'00Deratlon of the Gov-

member asked how long they were to continue holding meetings. Dr. L.G. Dewar quoted from Beau- chesne's "Parliamenta y Rules and Forms" a, passage which sta- ted that no commlttee may sit after prorogation. The reason given is that the House might re- solve itself into a committtee of the whole House and sit indefinitely during recess and thus invade the

right of the Crown to prorogue. Premier Matheson quoting from the House Journals of 1952 showed that a similar Committee had con- tinued to sit during recess and that it had long been the custom here to do so.

However, he promised that he would investigate the matter thoroughly and if necessary would

(Continued on Page 11. Col. 8)

parison to other foods was far:

Fcirm Bloc In U. S. ' House Gels Setback

WASHINGTON (AP) - House farm leaders sought Thursday to reunify the once invlnchle "farm bloc" after defeat of efforts to enact new subsidies for growers of corn and other feed grains.

The House of Representatives, dlVldinB along political and sec- tional lines, dealt a virtually un- precedented setback Wednesday to moves to channel far-rn sub-1 sidles into both the surplus -glutted l midwest corn belt and other; areas. 5

Every proposed subsidy pro-, gram was rejected as the House: ignored administration requests, for relief to corn growers as welll as rival Democratic proposals to expand payments to include allt producers of livestock feed grains.

CITY MEN GANG U P T

Gauging up on all proposals to increase present farm subsidy payments were big city members whose constituents are grocery storey customers.

Republicans so far have stood fast for limited aid to the corn belt. Democrats Just as adamantly have stood for a "last chance" compromise to enlarge farm sub- sidles to benefit cotton, rice, to- bacco and wheat farmers who have diverted their acreage to feed grain crops.

The result of the Wednesday vote was no legislation to meet what President Elsenhowe has termed "emergency" needs of the corn belt for new laws to stabilize commercial corn prices and end price - depressing corn gluts.

With the planting season at hand. it is unlikely any legislation passed at this session can now in- fluence this year's plantings. 1

lice Moves Off Nfid. West Coast

CORNER BROOK. Nfid. (CPI The transport department Thurs- day reported the ice barricade onl the Western Newfoundland coast

as moved offshore and ice in the, dilly of Islands is thinning rap- I Y

A spokesman for the Cornerl Brook station said mild tempera- tures and rain have made ice in the hay unsafe for cars. At the winter's height. the boy was cov- ered by as much as 30 inches of ice and was used as the short cut by many motorists. Snu post was forced to close this winter for the first time Alice 1951.

Two Are Killed

In Collision n

CHESTER, N.S. (CP)-A head- on collision of two cars at nearby East Chester Thursday night killed two persons and sent two others to hospital with critical in- juries.

Dead are Derrach Terry Thomas and Mrs. Roland Frank. both of Halifax. Reported ser- iously hurt in hospital at Halifax are Vera Legary of Halifax and Holden Stevens of East Chester.

n The collision occurred at I curve on Highway 3, the main south shore route between Hall- fax and Yarmouth. t

"Farms in the Maritime Pro vlnces are entirely too small to be economically organized. I sug- gest that the ideal set-up for P.E.l. is a two-man farm of two to three hundred acres." said Mr. R.C. Parent, superintendent of the Charlottetown Experimental Farm, in an address delivered to the 09th annual meeting of the Central Farmers Institute held In the Clover Club yesterday after- mm.

Mr. Hudson Lowfher, president of the Institute presided. Mr: J. Lincoln Dewar acted as secretary. After disposal of the minutes of the previous meeting. the pod dent named the following consult- tees: Resolutions, R.A. Prolltt

Freetown: Earl Inga. ht Herbert; and Frank Jar-dine. Wtlmot Vallq

cutive of the Central Institute were re-elected unanimously. These are President - Hudson Lowther; vice-president - Alex Hamilton; secretary - .l.L., Dewar; director to the Federation of Agriculture- Irving Hsslam; directors: Kings: P.A. Mclsaac, Alex Hamilton John W. MacLean: Queens: Sam Hume. Earl lngs. Irvin! HID- lam; Prince- Derrlll Plcketts; H. bowther, Hudson Prldharn.

Reports were presented from only three of the branch institutes represented in the organization- tdeque, Dunk River. and Tlgnlsh.

ck of a credit policy in the 0?- eratlon of these farm organisat- ions was seen as a contributing factor in the decline apparent in Farm Institutes.

Suggests Larger 2'-Man Farm is Most Economical

turlst showed two charts to his audience. These had been included in the Gordon report and indicat- ed the trend the Commissioners? expected our farming industryl whlld take - large farm units.- fswer operators, and more inIcn- slve cultivation, plus raising twice as many livestock.

NERD 1'0 EXPAND l Mr, Parent noted that other re- ports Indicated a reluctance evi- dent In the Maritime Provinces to: branch out or go into debt by, means of capital expenditure, ad-l full "in the more enterprising; :13: farmers were not afraid of e ."

"that a lot of our trouble sfeml from the fact that many farmers

Harris Announces Moves

To Aid Atlanjj

LIGHT TAX CUTS

Higher Old Age Pensions And Family Allowances

By JOHN LBLANC t

Canadian Press Staff Writer

OTTAWA (CPI - The federal government Thursday night lad- lcd out a miscellaneous helping of light tax cuts and higher social benefit payments while holding ba- sic tax levels changed in its preelection budget.

Finance Minister Ilarris' tax- setting document had something- in greater or lesser degree-for just about everyone from the re cipients of family allowances to the old age pensioners, and not omitting the bubble gum set.

While he ,left unchanged the rates of personal and corporation income taxes-the treasury's big money itcms-he gave taxpayers a break on deductions for super- annuation payments and whittled away at several other taxes, all

to the tune of about one per cent t

of his total revenue. The budget also boosted the uni- versal old age pension for those

over 70 by S6 a month to 846. It

lprovided the same increase as a

maximum for those getting needy assistance in the 65 - 69 age bracket and for the blind and dis- abled, and jacked up war pen- sions and allowances for "burned- out” war veterans.

MAKES CAUTIOUS FORECAST

The higher benefit payments were estimated by the government to add up to a maximum of 393,- 000,000 for the new fiscal year that starts April 1 and for 3133. 000.000 ayear later. The new baby payments start Sept. 1, and the othcrs July I, so they will be only partly effective this year.

The tax reductions were esti- mated to be worth 855,000.(l(l0 in the coming fiscal year and 5128.- 000,000 a year later.

with these changes, Mr. llarrls pmnde a cautious forecast of a budget surplus of s152.000,000. pre-n ldicting revenues almost un-

changed from that of the year that ends March 31.

His revenue estimate was 35, l70,000.000 against expenditures of s5,018.000,000, the former an all- iime high and the latter a peace- time record.

GROCERIES TAX OFF

The budget announced that the government will boost by about l2,000,000 a year the treasury sub- sidy on the movement of Marl-

zimes freight and will assist Nova l icotia and New Brunswick in the levelopmelll Of D0Wer plonts in l an immediate review of Maritime.

hat area,

58108 tax of 10 Per Cefll 0". I forward pA0pOS8IS as soon as ten- variety of groceries -- including ll 531,19, ns recommended by thel (ca. Coffee and COCOH-ls Y9m0V9d 2 Gordon royal commission on Can-:

anmetliately.

The special excise tax of 10 per cent on soft drinks, candy. choco-I confectionery and chewing

late, gun is repealed immediately. But taxes on liquor. beer,

Continued on page 2, Col. 3

c Provinces y

to-

lWould Have Beer & Wine

Served In Summer Hotels

The sale of beer and wine in the hotels of the Province during the summer season was advocated in the Legislature yesterday by A,A. Maclsaac, Liberal. Fifth Queens, He was speaking on the Address in reply to the Speech from th e Throne.

Mr. Maclsaac said the social

use of alcohol as a beverage had i

been accepted in all other parts of Canada and he felt it would be greatly appreciated by tourists who visit hene each summer. The Charlottetown member said he was merely expressing a personal opinion and any thoughts he had on the matter did not in any way reflect the opinion of the Govern- ment or any other member of the House,

He felt certain hotels could be designated by the Government and the sale would be under Govern- ment supervision.

WIDER DEVELOPMENT

In regard to the tourist industry generally. Mr. Maclsaac felt an attempt should be made to develop it on a wider scale. He thought there were areas in both Prince and Queens County that could be made attractive to the industry if proper accommodation could be provided. "The tourist industry is

third in importance on the Island but we haven't accepted it for its importance and potential." said Mr. Maclsaac.

R.R. Bell: "We need a cause- way... '

Mr, Maclsaac: "Of course we will have a causeway."

The fifth Queens member said the tourist industry was increas- ing from year to year. He noted that during the Centennial celebra- tions it was thought the peak had been reached but 1956 showed an increase over the previous year.

ADVERTISING GRANT I Mr. Maclsaac congratulated the

lFederal Government for its grant of 3300.000 for advertising the Marltimes in the United States. He also referred to the "triple trip" plan being advocated jointly by the Maritime Provinces. This plan requests visitors to make the three provinces a part of their tour. i ”Thcre is no doubt of the im- yportance of a causeway to the tourist industry. The traffic to the island would increase three told if we had this connection with lthe mainland," he said. That greater care be exercised ; in the removal of sand from some I of the beaches on the south shore

A,A. MACISAAC. M.L.A.

not the Island was urged by Mr

;Maclsaac who s replace itself as quickly as l (Continued on Page II, Col. 6)

WEATHER

Cloudy with little change in tempora- turo; light winds. low-high at Char- lottetown 28 and 30..

PRICE 5c

Ottawa Prepared To Assisi N.S.-Ni.B. With Power Needs

OTTAWA (CF)-Two measures Harris said. designed to stimulate the economy It was therefore of the Atlantic P,-ovinces were an. p provide for this. increased rate oi nnnnc-ed Thursday night by F1n.:subventlon. Additional annual cost ance Minister Harris in his bud- 1 10 V-he ll'e35Ul'Y Will benabout 52-' gel speeen, p000,000. In the coming fiscal year.

The federal government win . this will bring the total to about pay an additional 52,000,000 an-',5l5.0g00.000. ThEV20'P9l'jC9m y5"lT nuaily in freight rate subventions. Vemwn 0)! "lmC.m0V1nByWllhlll on goods moving out of Maritimes the M8l'lUm9-S W1" l'9m3"l l1"' into Central Canada markets. ;Chantled-

It is also prepared, if New! ,

Brunswick and Nova Scotia agree. ' BUILD NEW PFANTS to provide the main intercunnec- M5 Harris Sam Such 3 Challge will go only part way toward

tiun facilities within and betweenl . . tiie two provinces for integration meeting the transportation prob lem of the Atlantic area. But be-

of their electrical systems. It n

would also build and operate ther- I0” making luflhef DF0l30S3l5- the

mat prams to meet the pow-5, government would have to deter-

nceds of industrial development. "fell"? 9 5 f5 9 " l I 3 I "'3"5p0rl3l

Mr, Harris said the federal gov- non needs. in thegreglon. .

The minister said a number of

ernment also intends to launch proposals have been put before the government to try to solve .the problem of high power costs. The government had not yet "been able to satisfy itself that .any of these projects are both ally sound and at the same time tion could be taken immediately beyond the financial capacity of to alleviate the special dlfficult- the PPOVIQCIQI 80"9V"0I”m tc ies of the Atlantic provinces the PTgVluCl81 Z0Ve1'1lmem 30'” caused by railway freight rate in- 1C9Fn9d- creases in the last decade. l However. EXPBNS had 5ll8S95lBd . that Nova Scotia and New Bruns- PROVIDES WCREASE wick would receive advantage! These increases, Mr, Han-lg i from interconnection of their elec- said, have fallen more heavily on lriclll SYSlem5- 11 WW” l'9d"c' tra'fic moving from the Atlantic requirements for standby capac- region to Central Canada than on ity and Permit "'9 "lost ldwmr rail movements within the cen- tageous location of thermal Pllnll ti-at provinces. and building larger and more ef-I As a consequence. the competi-

ficlent thermal units. tive position of Maritime producta

proposed to

transportation problems and put

ad.-its eco lc prospects. But in the meandme, some ac-

To help reduce the differential in the Montreal area and points in cost of power between the two provinces and other parts of Can- ada, the fe deral government would be prepared to provide the main interconnection facllitlu within and between Nova Scotla and New Brunswick and build and

west had been adversely affected.

A study of the average increase in freight rates since 1947 on this traffic ompared with the increase in the rest of Canada showed that higher subventions paid under the

aid the sand on the Northumberland side did not

operate large thermal plants to replace existing ones or meet the requirements of growth and indus- trial development. i

RENT POWER LINES Under this scheme,'the trans mission lines would be rented on a non-profit basis and glie power (Continued on Page ii, Col. 3)

nm Maritime Freight Rntos-Act were justlded.

"That is, an increase in the sub- vention from its present m-per- cent level to a level of 80 per cent in the case of outbound traf- fic will restore these rates to the position they occupied in relation to other Canadian rates at the end of the Serond World War," Mr.