o

TEE-Kass

ctala feel the agreements no longer are required because there is no world emergency to Justify keelr lng the provinces from their con- stitutional rights of levying direct taxes.

LEVY DIRECT TAX

If the provinces agreed. here's how the plan might work:

1. The five-year federal-provln- clal tax rental agreements. signed with all provinces except Quebec and due to expire in March, 1967. would not be renewed. Instead the provinces again would be free to levy direct taxes on personal and corporation incomes and inherit- slices.

2. This could make for double taxatlon as exists in some cases in Quebec, but if the provinces

By HAROLD MORRISON Canadian Press Staff Writer OTTAWA (GP)-The cabinet will meet all day today to consider a irheme to ditch tax rental pacts and allow the provinces to re- enter the personal income and cor- ,.ni-ation tax fields without boost- mg rates to taxpayers. The plan. evolv by the cab- inet's brain trust. understood to have gained the strong support of Prime Minister St. Laurent. If the cabinet agrees. it will be prea- enled to the 10 Provincial pre- mlers at the historic federal-pro unrlal fiscal conference opening unnriay - Linked with the plan would be a federal offer of financial assist- anrc to the less wealthy prov- incess including Quebec- under

7729 Guardian

Covers Prince Edward Island Like the Dew

CHARLUITETOWN. CANADA, WEDNESDAY, SEPTEMBER 3, 1955

agreed to maintain uniform tax rates and exemption levels. the federal government would agree to guarantee them minimum rev- enues and make collections for the provinces. Thus. for the taxpayer. it still would mean filling in only one form with possibly a line or two added to show the provincial tax.

3. Cabinet economic advisers are t” king in terms of the provinces levying a personal income tax of, say. 10 per cent of the over-all collection and a corporation in- come iax of seven or eight per cent. if all provinces agreed. the federal gorernmentls share would be reduced by i " amounts so

"river there would be no double tax bill. Continued on page 2. Col. 3

”equalizltlon:' ...,, t which would bring their revenues. Drtr portlonate to populxtio . possibly on to that of Ontario. the wealth- iest province. It would be :- replacement for the system of federal-provincial lax rental agreements begun in wartime 1931 and continued in post-war years under two five- yser renewals. some federal offi-

Coming Events

Thursday

Road To Re

By ERNEST I. VACCAIIO DENVER. Colo? (AP) - Pres- ident Eisenhower made continuing. encouraging progress along the road to recovery Tuesday amid a growing belief he will retire to the role of "elder statesman” at the end of his present term. His condition was so improved that he spent several hours out of the oxygen tent this morning after a long. restful night's sleep and doctors and family found him "comfortable and cheerful."

Personal friends said privately it would be "unthinkable" to sub ject him to the burdens of a 1956 political campaign and another four years in the White House. At the same time they ruled out the possibility that he would even consider resigning before the ex- piration orhls present term in the absence of any complications that would block the "complete recov- ery" for which his physicians are hoplns.

PROGIIESB SATISFACTORY

A bulletin at 12:15 p.m. Tues- day said in part:

”The president continues to pro-

Bingo "Hope River night.

iiorse races at l-Iszelbrook. Oct. 1.

Hot chicken dinner to-night in New Glasgow Hall.

"Dance is Millvlew lsli every Friday.

"Regular Dance. Mt. Ryan Hall. every Thursday.

llnllulnr dance. Crapaud rink. Wednesday night. Burns orchestra.

Lobster supper served wean”.

day Sam. M at Sea shell Inn at Victoria. t

'Pdnll'y sale Sherwin-William-. Friday. 1 pm. Sept. so. Mt. Her- herl Ladies Aid.

llt'-cI'VE Monday P t ber Iotb. l'lcliiria United Church Anmnl Thanksgiving Turkey supper.

Eisenhower Appears On

covery As

Retirement Reports Grow

heart specialist. says is a "reas- onable prospect" within two months.

2. Decline to have- his name submitted for a second-term nom- ination.

3. Play a major role in the selec- tion of a 1956 Republican nominee in sympathy with his program in both domestic and international af- fairs.

4. Assume an almost unprece dented role of "elder statesman" in lending his invaluable prestige and guidance to his successor, whether Republican or Democrat. in view of his unquestioned stand- ing in world capitals.

Denies Red Influence is Expanded

CAIRO. (Reuters) - Premier Gamsl Abdel Nasser revealed Tuesday night that Egypt has

” Czechoslovakia lnlder e barter deal. but denied that the agreement represents an exten- sion of Communist 'luence in the Middle East.

Nasser dismissed any-sugger tlon that the purchase of arms from Russia or Czechoslovakia means extension of their in fiuence into Egypt.

Jet Si; Fawn In Freak Accident

LAS VEGAS. Nev.. (AP)- A high-flying target. the air force says. "shot down" a plane in an aviation freak Monday.

Th! F-86 Sabre jet came roaring in on the 20-foot. nylon streamer at 30.000 feet. The pilot. Lt.-Col. Walter E. Williams Jr.. laced the target in the sights an squeezed off a burst.

One of the .50-calibre slugs ricocheted off the metal tow line that fixed the target to the towing T-83 trainer. It caught the Sabre Jet in the nose. The engine began to fail but Williams had enough power to coax the plane in for a forced landing at nearby Nellis air force base.

Service For Weozy Drivers

AUCKLAND. N. Z. (CF)

themselves too well at a party can

to get them home without any risk of a clash with the law. The chauf- feurs. supplied by a private firm. arrive by motor

ment. drive the motorist home.

next call.

agreed to obtain arms from Com-

Drivers in Auckland who enjoy

now call up a chauffeur service

scooter. hook their conveyance to the rear bum- per of the car by a specia attach-

and then ride back to base on their motor scooters ready for the

MIAMI. Fla. (CF)-Scores of U. I. Navy planes and ships. with diminishing hopes for rescue. Tuesday night sought some trace of a navy hurricane hunter sir- craft missing in the wake of hur- rlcane Janet and carrying two To- ronto newspaper men plus a crew of nine.

Alfred O. Tate and Douglas Crank. a reporter and photog- rapher for the Toronto Star who were doing a feature story on how the navy keeps track of hurricanes from the air. were aboard the plane. a two-cmzinc P-2V Lock- hced Neptune bomber.

The last message from the plane came at 8:30 a. in. Monday when the pilot, Lt.-Cmdr. G. B. Wind- .ham of Fairfield, Ala.. messaged that he was ticommencing pen- ciration" of the storm's wall of winds at an altitude of 700 frrt.

Other messages. heard up to 10.15 am. may have been from the plane but in thc siorm's vi- olent static outbursts they could not be interpreted.

WILD WATERS

Whatever happened. the plane apparently went down inside the

With between six and seven thousand voices raised in the slug- iing of "Onward Christian Soldiers" -the National Crusade of the United lChurch of Canada was launched -last night in Charlottetown's beaut- lifui new Coliseum which was filled to capacity to hear the Moderhtor of the General Council of the Unit- ed Church. Dr. George Dorey; Dr. J. S. Bonnell of Fifth Avenue Pree- byterian Church. New York; Dr. H. E. D. Ashford. Secretary of the Missionary and Maintainance De-

By STEVEN V. DAVID NEW YORK (AP)AInveetors in search of bargains poured hun- dreds of millions of dollars into the stock market Tuesday, send- ing pricos up hi to 35 I share in

New York Stock Market, Rebounds After Slump

Monday's fnll. occasioned by

l .had suffered a heart attack. wiped nearly 313.000.000.000 from the imarket valuation of shares listed 'on the New York stock exchange.

news that President Eisenhower

Plirtment of the Church and other . noted speakers. The meeting vI&

Moderator of the Maritime Con- ierence. Dr. E- V. Forbes.

Prowse. Premier A. W. Matheson and J. David Stewart. Mayor of Charlottetown were in attendance. The Premier and Mayor Stewart spoke briefly bringing greetings to the distinguished visitors and best wishes for the success of the cam- pa-ign. The muslcalrportlon of the

under -the chairmanship of tin. N

His Honour Lieutenant Governor .;

Hopes Diminish Hurricane Planer Will Be Rescued '

most violent area of winds. Its survival would have been only a matter of seconds in the wild waters.

The navy laid out a search area 200 miles north and south and 150 miles wide south of Jamal and sent planes and ships on a search pattern over it. If the plane went down inside the storm. rescue was considered a remote possibility. navy officers said.

When last heard from. the miss- ing plane was in the general storm area some 400 miles from Guani- anamo bay. Cuba.

Tate. 44. worked for the old To- ronto Mail and Empire before joining the Star in 1935. Cronk is about 30. a free - lance photog- raphcr who has done assignment work for the Star since the Sec- ond World War. He is a native of California. Both men served with the Canadian Navy during the WET.

The two were making their sec- ind .--ttempt at the hurricane siory. They went on a similar chase after hurricane Hazel last October but the storm faded away before they could gather enough material.

Thousands Allen d Opening Of Crusade Service Here

ions from the same month in 1954.

Canada Grunts Recognition Te Argentine Gev't

OTTAWA (CF) - Canada has granted recognition to the new Argentine government. h was learned Tuesday.

An external affairs department spokesman said the Canadian em- bassy in Buenos Aires has been instructed to I cognize the new government there.

Recognition means that Canada considers the government of pro- visional president Maj.-Gen. Ed- uardo Lonardl holds effective con- trol in Argentina. Lonardi led the revolt which ousted dictator Juan Peron.

None of the some 120 Canadians in Argentina was reported injured in the anti-Peron rebellion.

in Midd

behind the Iron Curtain has

said here Tuesday night.

Ga.mal Abdel Nasser, were C

The fact that Moscow and Prague were prepared to barter i t ” of demanding cash like the West does for its arms. supported this view.

Exactly how the West will react depends upon the volume of sup- plies to be shipped to Egypt. To the Cairo government, acutely short of both dollars and British sterling. however, the receipt of only a few obsoiescent planes would be a major achievement.

TWO MAJOR PROBLEMS

COAL OUTPUT DOWN

EDMONTON ICP)-Alberta coal nines produced 246.964 tons of coal during Aug, a decrease of 26,519

the provincial director of mines an- nounced Tuesday. The bituminous field, led by the Crow's Nest area with 78.082 tons, produced 156.703 tons during August. Subbitumlnous

Egyptian contacts with the Com- munists confront the West with two major problems.

"The first is the possibility that the Communists may try to de- velop an arms trade throughout most of the Arab world and thus threaten to undermine the Western position in the vulnerable Middle East.

Arms exporters inevitably gain influence in the countries they supply because their customers. dependent on them for technical experts and spare parts. cannot afford to offend them.

The second is the disturbance of the delicate arms balance the United Satea. Britain and France

production totalled 90.156 tons.

Toll Now Plac

MIAMI. !'1a.. (AP)-Hurricane Janet ripped across Swan Island with 15 to 135-mile-an-hour winds Tuesday. then headed toward British Honduras and Yucatan.

At 6 p.m. AST, the year's 10th stern and one of tile most pow- erful. was centred 75 miles west of Swan island and 225 miles east of Belize, British Honduras.

Janet. with an estimated 110 dead in her winding w eke through the Caribbean sea. was

(By Itnnley Priddle) ' LONDON. (Reuters)-Egypt's decision to buy arm!

and put them in a serious dilemma, diplomatic source:

Officials took it for granted that the 'Russian and Czechoslovak offers disclosed by Egyptian Premier

rent Communist bid for Arab friendship.

Hurricane Janet's Death

PRICE5e

REDS IN ARMS DEAL WITH EGYPT

DilchingOl Tax Rental A Pacts To Be Considered C Today By Federal Cablnel

West Fears New inroads

le East

jolted the Western powerl

oncerted moves in the cur-

have maintained between Israel and ill. Arabs, still technically at war, since 1950.

LEAD TO DEMANDS

Whatever the size of the Com- munist contracts with Egypt the) will almost inevitably lead I Israeli demands for supplies ts restore the equllibrium- This dilemma would remain even if the Western powers tried to outbid the Communists by relaxing their stringent terms for sales to Egypt.

The Communist moves have presented the Western foreign min- isters now holding policy talks in New York with decisions more delicate than they have had to take for years in considering Middle Eastern affairs.

Egypt's decision hit like a bomb- shell ln Western capitals. especially since the United States announced only Monday it is prepared to sell arms to Egypt for cash. The Nas- ser regime earlier had requested U.S. arms.

Western diplomats saw Russia's offer as another stage in Soviet efforts to woo the Arab nations away from Western ties. Already Nasser has accepted an invitation to visit Moscow in the near future.

ed At 200

hours. The navy e:h-craft mated the lowest presusre Janet's eye at 27.70 inches.

REQUEST WITHDRAWN

WASHINGTON (AP) - Ecuador Tuesday withdrew its request for the intervention of the Organiza- tion of American States in its dis pute with Peru. Ecuador appealed to the OAS council Sept. 8. sayin that it was in imminent -' o

astio U

litllllllar dance at the Castle Dllnslaffnage. every Friday night Damn: from 9.30 - 1 a.m.

veil 7-.30.

llsll beginning lime Sept, 19th See Sloth. 11:30. sale of lunches. M.vei-s Store Stanley Br d-.v Sept zen; stock-taking.

South Rustico Hall. Music

Rollie MacKensis'r Orchestra. in

non ed from Sept,

flail. Eat-nscllffe W. I.

Come

ta

Next dance ednesday. chestra ltlanist.

axgortune Bridge. wi

Dance. West Raylty mu, Wednesday. Rom. .

Clifford Peters

Annual chlpkgn WI um," Em: C1g)inc3tl:i:h Chlgch. Well

. a s y . OM10”. I IV Oct

(lucken Supper Canoe Cove Hall Thl”'Sddlf. 39P3- Nth. Supper ser-

”'i”lt'" MIDDH. Grahamls Road at 5 p.m. standard

"Irish Millionaire" Stan- honr--Covehead Hall. Friday. Sept

idge wiu be closed Wednesday and Thurs-

Danclnll every Thursday night.

The Jamboree which was post- Bill. is to be held Oct. 3 in Cherry Valley

Dance Cardigan Legion Hall.

Thursday. Sept. an. Webster's Orchestra. P. A. system. Can- lml service.

"9" In Wthllllls entertainment '" ionu. instrumental music. etc.. lonshaw lall.. Friday Inlht. September so. In aid of -ehool. 0

Itll. . Mclweifs

M K Ill ofchestra. Canteen 9; M H.”

gross satisfactorily without com- pllcations.

"He remained out of the oxygen tent for a large part of the mom- ing. His temperature is normal. Ills blood pressure and pulse ro- maln stable and satisfactory." White House press secretary James C. Hegeriy told a press conference that the question of whether the president can dele- gate authority may not have in be answered.

At the prqcnt time. he said. there has been nothing reaching the Colorado vacation headquart- ers which has required his signa- ture and that the usual volume of White House correspondence is being handled by his staff.

FUTURE ROLE

Meanwhile. as the president's personal friends see the picture. his sense of duty will lead him to take this course" in the future. sl- way; b.-- -ring, of courne. com- plications that could develop: 1. Serve out his present term if he reaches the complete recovery which Dr. Paul Dudley While. 3

Humble Arab

LONDON (Eieutersi - An Arab fisherman who snatched a swim- mer from the Jaws of s maneat-lng shark Tuesday night was awarded- the George Medal-one of Britain a highest awards for bravery.

The name of humble Aden fish- erman Monammed Zald Othmln Areeki was included in a long list of awards to men and women who met the chliange of sudden danger with deeds of valor.

- so great that even on its outer rim

Awarded George Medal

the wake of Monday's sensational decline.

Tuesday's recovery retrieved al-

l most s3.2so.ooo.om of the loss. "mmm was ed by A mo ml"

choir gathered from all churches

TOKYO (Reuters)-Huge waves pounded the Japanese coast Tues- day nlght as typhoon Louise turned to menace central Japan and Tokyo after flattening the Amer- ican lllI' base at iwo Jime-

An cycwltnesa report said iwo .lims was "90 per cent levelled. M e a n w h l I e. torrential rains drenched Japan as winds began to gather strength. The typhoon s centre. with winds of up to H0 miles an hour. was hearing down on Japan at about 12 miles an hour.

This would give Japan 24 hours to batten down in preparation for one of the worst Pacific storms in its history. The lynhoon's radius is about 150 miles. its strength is

winds of more than 50 miles an

hour have been recorded. on Jiard-hit iwo Jima. it was

Fisherman

the Arabian peninsula.

The shark had severed part of

an arm and a leg and had ripped a gaping wound in the womens back. With his arm around her. the fisherman "fought off the shark with such determination that it was forced to release her mutilated the citation said.

The blood-maddened shark then turned on he fishermen. ll"

Typhoon Heads For Japan

in the Province. under the direc- tion of Rev. Lewis Murray. Ken- slnston. Mr. Royston F. Mugford, A.R.C.0. presided at a "Wurlitz- er" organ kindly loaned for the occasion.

REV- Dr. DOREY

"We are challenged as never be. fore to lengthen our ropes and

'rcporicd that air base colnmunder Col. Arthur Kingham narrowly es- caped death when he crawled into' lthe fireplace of his house for shel- ter and was nearly sucked up the chilnney. strengthen our stakes" said Dr. Ameican troops on iwo Jima Dorey- He was making reference look ghgnmv in me "me cave, f to the words of the Prophet Isaiah puscd by Japanese soldiers in their lVh0 35 ll leader Of I people dwell- -last-ditch defence of the island dur- ns in tents. realized the import- ling the Second World War. wince. not only of lengthening the 7 Eyewitness reports said air base "RP?! til Pmvlde for 3" EXP8ndlI18 flu.-adquartcrs was a shambles. Valli?" but l0 drive deeper the lPhotographs released in Tokyo '"'k93 "1"! mild the ropes. lshowed steel - girdered building: The Church Moderator recalled ilwmed mo mnplmn um pines llhe tremendous expansion that has squashed under collapsed hangars.l Continued 011 P833 13- COL 7

: v

MODERATOR SPEAKS

Rt. Rev. George Dorey. D. D. of a 'serles of meetings which .will Mode tor of the General Council be held across Canada- Rev. E.

of th

gathering of people at the inaugural seen to the left of Dr. Dorey.

United Church of Canada V. Forbes. Moderator of the Mari- ia seen as he addressed a large time Conference of the Church is

armed attack by Peru. and asked that the council call a meeting at foreign ministers.

moving west northwest of 21 miles an hour. She had hurricane force winds extending outward ii) miles from the centre with gales 30 miles in the northern and too miles in the southern semi-cirole.

Despite th e disappearance Monday of a U. S. navy hurri- cane hunter plane with two Tor- onto newspaper men and a crew of nine aboard. the navy sent an- other plane into Janet's eye Tuesday. The pilot of the plane. which returned safely. recom- mended that furlher reconnais- sance be made by radar instead of penetration.

Weather forecaster-s said Jan- et's winds probably reached 140 to 150 miles an hour in gusts after she built up in the open Caribbean sea during the past 24

TORONTO. (CPJ - Minimula and maximum temperatures: Min. Max. Dawson E Vancouver Edmonton .. Calgary Regina Winnipeg Toronto Ottawa Montreal Quebec Fredericton Saint John Monclon Halifax . ,. Chnrltvttetslwn . Sydney Varrnoiltll St. Johns

g:i'!'oi352538S?x2

523382332-3238SSSSt9-t

Come to :. dalbane United Armed only with an iron rod. the III! ping. and mod to force him HALIFAX, (cppn m glllgl:-h chicken and ham supper, fisherman replied to the llcrelllitq i;oll:et gulf l;i:MllIh.l'llldc0.:d:ldcIlI:II; mm M” "in h arelzggt 3 mm 9:453. SOIIMIIIDCT Ilth ears of a woman swimmer bong l- Cm move into our district Wednes-