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THOUGHT FOR TODAY. It's wise to remember that bores are not trouble at all if you can monopolize the conversation. She Oshawa J nes WEATHER REPORT Mainly sunny today and Thurs- day. A little warmer, winds light. VOL. 9I--NO. 86 Price Not Over 10 Cents Per Copy fe) SHAWA, ONTARIO, WEDNESDAY, APRIL 11, 1962 Ottawa and for payment Authorized as Second Class Mail Post Office Department, of Postage in TWENTY-EIGHT PAGES Municipal Pensions Proposed TORONTO (CP)--A_ govern-;by merely applying for partic- ment - sponsored pension plan ipation,'"' the minister said. aimed at providing retirement' Because the plan is attractive benefits for municipal employ-|enough to induce almost every ees in the smallest hamlets and| municipality to join, there will largest cities of Ontario was an-|be uniform pension provisions nounced today. across the province. Municipal Affairs Minister; The municipalities will be gi- Cass introduced a bill in the|yen an opportunity to review legislature to establish the On-'{he plan and suggest changes, tario municipal employees re- jf necessary, during the coming tirement system year before the plan takes ef- It is to become law before the fect. current session of the legisla «tnder the proposed system, ture ends--probably next week a normal retirement pension of --but will not go into effect un- two per cent of career earnings til Jan. 1, 1963. Eventually,! wij) be provided at 65," Mr about 45,000 municipal emplo Cass said ees will be eligible to partic- "In addition, our retirement ipate. ate 7 - ae hae Mr. Cass said the plan will be rrr Pho ayeg aele Bee financed by contributions from) of career earnings to date of employees and employers, with) disability; a widow's pension of the Ontario government provid 2 dy the m » to organize the 50 per cent of normal retire- ii bere 8 z ment pension subject to certain sys sie ss adjustments; immediate vest- RUN BY BOARD ing of the employer contribu- A nine-man board 1 represent-|tions; and refund of employee ing the provincial government,! plus interest, on ' | contributions, ployees will manage the plan, |*e?mination of service before yees plan. | notiy, " The municipal employees'|"@trement.' plan will advance its accumul- ated funds to the province at five-per cent yearly interest Mr. Cass said this provision will give the province needed cap- ital while providing the fund with a stable and favorable in- terest rate The question of municipal pension plans has been a thorny one for several years. Of the 976 municipalities Ontario re Fert pecan Piss | education system came under au 20-year- }4 = a ae te ac of tion which permits such plans a paper tag both sides of is regarded as too restrictive. '© '©8'Siature For hundreds of municipali : ; : ties with only a handful of em-/Provinces elementary -- school ployees, the cost of setting up|S¥stem 1s not tough enough, and administering an individual,@d revealed that some 50 per pension plan is too high cent of Metropolitan Toronto s PLAN NOT COMPULSOR mentally retarded children The government : 'sponsored pl tal og a , plan, while not compulsory, will Liberal Leader John Winter- give every municipality a meyer waded in with attacks on chance to provide a "complete the province's vocational guid range of pension benefits at ance program. reasonable contribution rates) Mr. Robarts turned on the TORONTO (CP) Ontario's Premier tobarts said are Laborite Victory | In Jamaica Vote | KINGSTON, Jamaica (Reut-} The 77-year-old Bustamante, ers) Sir Alexander Busta-/known as Busta to Jamaicar mante today led his opposition|told a questioner "Our choice Labor Party back to power andlis democracy'? when asked if promptly called for a defence|Jamaica would follow a neutral pact with the United States '"'to!line after independence protect us against foreign inva sion." The Laborites made their He also declared: "We have a good police force but we have comeback in a general bch hepa scamps in it. If it became Tuesday that ousted the Pai co to. confine 'the. police esda jto barracks and put the army ple's National Party of Premier] jn charge I would do it." 5 Norman Manley, which has I P : rulkd tha feland for seven n the election, the final re- years. turns gave the Labor 49.73 per The official result today gave Cent of the vote to 48.91 for Labor 26 seats and the PNP 19|Manley's PNP Seats in the 45-seat House of} Eight Independents and the Representatives. newly-formed People's Political After' the result was an-|Party were swamped by the nounced, Bustamante pledged|two major parties, which be- himself to fight any Communist!tween them captured all thé attempt to infiltrate into Jam-|seats. a. -- Lf less than 100° At dissolution the PNP held miles south of Communist-ruled!s> .6.i1< Labor 15 and Indepen- Cuba. govern- dents three. jondary jschools by 1970--last year there NS.!were 260,000 Rafe's Chasm, one of the scenic attractions of Boston's North Shore, has new addition to landscape today. The auto- mobile (1960 Consul) was stolen and apparently pushed | his new three-pronged ry schools the pro referred to as critics of ram for seconde first prog 1 gram--co stage ¢ nonly e to be implemented in Septem- ber the new general said three The choose premier one of courses suited their talents The are the arts, business and science and technology He. said the new scheme will help reduce '"'the staggering number of drop-outs' under the present system to se "The program will be flexi- his attack against "the current 2" aggressive exporter: ble. Grade 9 will be treated as to decide only in the specific courses to follow," he said. will have Grade 10 they want Mr. Robarts also that long-term forecasts con- ducted by his department show that there will be 500,000 sec pupils in provinci education of de Turning to | Robarts said some} fectives, Mr 50 per retarded children in Metro Tor onto '"'are tucked away in back bedrooms and places of that nature," He announced 71 schools for defectives have been opened in Ontario since the government Cezanne Paintings Recovered Today | MARSEILLE, France (AP)-- Police today reported the. re- covery from a parked car of eight paintings by Paul Cezanne stolen last August from the Aix-en-Provence Museum. cent of all the mentally| | Tax Concessions Please Business @ Canadian ROCKS off cliff bordering Atlantic Ocean since police could find no evidence of injury to driver. --AP Wirephoto Both Sides Of House Hit Education System decided to grant these institu- tions $5 a day for each pupil He rejected a suggestion by Vernon Singer (J--York Cen- direct .con depart- under the the education brought trol of ment Mr. Robarts said that the, present system parents of retarded children take an ac- tive part in running the schools." "It is a form of cation for them as Said Mr mental edu well," Wintermeyer launched accent on vocational training jan exploratory year and pupils!in education circles." He claimed pupils should re- ceive only one year's voca- tional training as industry was practical experience | STEEL PRICE UP under Tax concessions to encourage production and _ re- search were widely welcomed in initial reaction to Tuesday night's budget. While political opponents gen- erally condemned the budget as inadequate, most business spokesmen appeared content to say "thanks" for what they got. But some were disappointed --including manu facturers of radios, television sets and rec- ord players, who had hoped for relief from the 15-per-cent ex- cise tax they still have to pay, despite removal of the tax from most other products. F. D. Mathers, president of the Canadian Manufacturers' | Association, said: "With steep deficits fore and aft, an election on the horizon, and little room for manoeuvra- bility, Mr. Fleming steered a fairly predictable and realistic course." He added that, 'moderate as the concessions are, they are a move in the right direction and should definitely spur develop- ment of the whole economy." Ronald Robertson, director of | the the Robarts plan--is expected tre) that these schools should be|the Canadian Tax Foundation, Stated "The budget may appear un- spectacular from the individ- ual's point of view, but there are a number of things in it that may be very helpful to Cana- dian production." Other comment following: S. J. Randall, president of General Steel Wares Ltd., and "The increased sales will prompt industries to in- crease their efforts to break into foreign markets." J. D. Campbell, included the incentive for president, revealed geared to give them the needed Canadian Westing house Co. Higher Car Price Result Foreseen | DETROIT (AP) Automo- bile industry observers in- dicated today that an upward adjustment in car prices--preb- ably in the next model year-- will result if the $6-a-ton 1n- crease announced Tuesday night by U.S. Steel Corporation spreads through the steel indus- try. There ment. The auto industry made its last general across-the - board was no official com- Steel prices, of course, have an effect on prices in the auto,| construction and appliance in- dustries, all big steel users The increase came less than a week after U.S. Steel and 10 other big firms signed new two- year labor contracts with the United Steelworkers to take ef- fect July 1. Showdown InCLC expand and help to employment." Ronald W. Todgham, presi- dent, Chrysler Corporation of Canada Ltd.: "Anything that is an incentive to industry cannot help but be a stimulation to the economy." Earl K. Brownridge, presi- dent, American Motors (Can- ada) Ltd.( "Our company is on a strong growth pattern and this will be a good thing for us."" These spokesmen were com- menting chiefly on budget pro- visions for reduction in taxes on profits from increased sales; a One-year extension of the pro- gram allowing double deprecia- tion for new manufacturing in- vestment in depressed areas or for new-product manufacture; and for deduction from taxable income of 150 per cent of in- creased expenditures in scienti- fic research F While the research concession was widely greeted, some firms that already have big research programs gave it a wry look. This is because they won't get concessions on their already large programs, except to the 4 extent that they may increase them; while newcomers to re- search will benefit. On the whole, however, the concession was regarded as one that may stimulate Canadian firms to more research, encour- age foreign firms to do more research through their Cana-j dian subsidiaries, and help keep| Canadian research talent at) home. Hugh Montgomery, president) of the Canadian Construction Association, said. extension of sales tax exemptions to all sew- age and drainage materials will lower the cost of housing. A long-felt grievance in the old industry was at least par- tially met. Canadian companies} oo oe ot aa ee objectives stand out in the bud- comparison with American- get Fa csnilapees Finance Minister owned companies operating in er delivered Tuesday able American tax laws, Under, ORe is to give new incentives| the budget provisions compa-|'? Canadian business to expand,) nies and individuals wll be al-\create new jobs and more lowed for tax purposes to de- prosperity, and work harder to duct pre-production costs from|™eet foreign COM Penwdn. pee income for oil or gas produc-|.. The other is to give Conserva-| tion, H. H, Somerville, Alberta's|!Ve party campaigners a handy | deputy mines minister, said this|POCket - sized summary of five! will be a help to the industry. years of Conservative rule in a A provison under which 'On-|form_ suitable for use in the tario and British Columbia log- election expected in June. ging companies will get a tax, It is generally conceded credit to offset two - thirds of|/#™0ng politicians that an elec- speical provincial taxes wil]/tion year is no time to increase save Ontario logging firms @%¢5- about $900,000 a year, Ontario Mr. Fleming did not increase Treasurer James Allan said domestic taxes. At the same ~|time, he had little elbow room in his .pre-election budget to re-| duce the tax bite appreciably. | Altogether, the: cost of the treasury' of Mr, Fleming's list} increase DONALD FLEMING By JAMES NELSON ; OTTAWA (CP) -- Two main \of INDUSTRIAL SPURS IN DEFICIT BUDGET Deductions Up For Dependents OTTAWA (CP)--A_ blue-plate special for the go-go business- man was served up Tuesday night by Finance Minister Fleming in a pre election budget speech lasting an hour and 45 minutes. Main feature of a budget fore- casting a 1962-63 deficit of $745,- 000,000 and reducing the tax take by $130,000,000 was a re- bate as high as 50 per cent on taxes due on profits from in- creased sales by manufacturing and processing firms. Personal and corpotate come tax rates remain changed. If the budget was designed as a vote-gatherer in advance of the general election expected in June, it wasn't blazingly ap- parent, Mr. Fleming made a modest bow in the direction of the individual taxpayer by lopping $35,000,000 from revenue in the personal income tax field. RAISES DEDUCTIONS He accomplished this by rais ing deductions from taxable income for dependents by $50 --to $300 for children 16 and under and to $550 for other dependents, whether children or adults. Opposition in- un- Leader Pearson, 4 referring to the sixth deficit in a row since the Conservatves took office, said Mr. Fleming's deficits now totalled nearly $3,000 ,000,900. He said the budget could be Budget Speech's ' Main Objectives | personal income tax exemptions for dependents. Repeatedly through his speech Mr. Fleming referred to the government's desire to stimu- ate Canadian enterprise to new effort and new peaks of achieve- ment. His theme was: What's 'good for business is good for Canada. With last year's: deficit of $791,400,000, the'government has accumulated deficits in the last five years of $2,192,400,000. In the same period, Mr. Fleming emphasized, the gov- ernment's increase in contribu- tions to provincial treasuries and payments to various insti- tutions in the provinces have amounted to $2,568,500,000. The "enormous" increase in assistance to the provinces had helped them and their munici- palities. The cumulative in- crease in these federal contri- butions to the provinces in the last five years had "given rise described as *'Vote later."" Mr. Fleming said the tax in- centive for increasing sales should result. in cancellation of at least $50,000,000 in taxes in a full year. This is about four per cent of all corporation: in- come taxes which will be paid this year. Teh business man's budget also provided for another $35,- 000,000 worth of incentives to the petroleum industry and' companies increasing invest- ment in scientific research for industrial purposes. Mr. Fleming forecast a seven- per-cent increase in the gross national product --- compared with last year's 2.5-per-cent rise --and said the central purpose of his budget was "the encour- agement of economic growth." SPUR TO PRODUCE The tax incentives were de- signed to spur increased pro- duction and employment. In brief, these incentives are: 1. Cancellation of 50 per cent of the tax on the first $50,000 of taxable income arising from inreased sales by manufactur ers and processors and cancel- lation of 25 per cent of the tax on any additional income aris- ing from. increased sales. The increased sales will be calcu- lated. on the dollar value of gross sales this year against those in 1961, 2. Deduction of 150 per cent of increased expenditures on scientific research for industrial jpurposes when computing in- }come for tax purposes, 3. Petroleum companies may deduct all pre-production ex- }penses, including costs of rights, exploration and drilling, in computing income tax. Mr. Fleming said the incen- tives will cost the treasury about $22,000,000 in the 1962-63 fiscal year which began April 1 and $85,000,000 in a full year. Sales tax reductions would amount to about $2,000,000. Higher deductions for depend- ents would chop 80,000 persons from the list of taxpayers. How- ever, the number of personal income taxpayers this year is estimated at 5,150,000 against 5,100,000 in 1961. Mr. Fleming was frequently interrupted by applause from his supporters, especially when he referred to such things as "substantial and healthy expan- sion," 'rising prosperity' and "increased employment." Mr. Pearson made the most of the 11 minutes at his disposal and jabbed away at the $745,- 000,000 deficit. Mr. Fleming had been wrong every year in predicting the in- crease in the gross national product, Mr, Pearson said. By their votes, Mr. Pearson said, Canadians would soon con- now, pay The masterpieces were val-/Price increase in 1958 -- the ued by officials at $2,000,000. time of the last major steel The haul was. the biggest in the price increase. At that time car | tax changes added up to|to federal budgetary deficits" $130,000,000. He expects part ofjand had, in fact, been greater this to be covered by increased|than the cumulative budget def- demn the government. The defi- cit in the 1961-62 fiscal year was $791,400,000, a peacetime Bustamante's new ment will be charged with guid-| Jubilant election through crowds pa- ing Jamaica to complete inde-|raded Kingston Tues- wave pendence from Britain Aug Until then the self-governing is- land is guaranteed protection from Britain §. day night carrying an effigy of Manley and a miniature coffin, chanting a silent home.' "Manley has gone to of art thefts that swept Western Europe and_particu- larly the French Riviera in 1960 and 1961. 5 Pilots' Walkout May | Extend Across Canada MONTREAL (CP) -- A meet ing of river pilots in Trois-Rivi- eres, Que., today is expected to decide whether a work stop- page, which has already tied up almost all shipping on a major stretch of the St. Lawrence river, will be extended to ports across Canada. Andre Bedard, president of the Federation of St. Lawrence River Pilots, said Tuesday he has been informed by the Na- tional Pilots Association of the Canadian Merchant Service Guild (CLC) that it is widling to join the 278 Quebec pilots in a series of general meetings. He said such meetings, in ef fect work stoppages, would tie up shipping from Halifax to Vancouver CITY EMERGENCY PHONE NUMBERS | | POLICE 725-1133 FIRE DEPT. 725-6574 | HOSPITAL 723-2211 ude, Mr, Bedard said he would recommend the inclusion of the merchant guild pilots in the meetings if he does not receive an answer to what he described as "'major concessions' made during a meeting with Trans- port Minister Balcer in Ottawa Monday. EARN $12,000 YEARLY He said these concessions in- cluded the offer of a three-year freeze on pilots' tariffs and sev- eral other matters dealing with work conditions and revenues Revenues are the main point of dispute. The pilots earn an es- timated $12,000 a year. | However, Mr. Balcer told the ! house Tuesday the pilots had made no move to modify their 'excessive' demands and had rejected his request for an end to the work stoppage He called for "a general in quiry into the whole question of pilotage matters." Mr. Bedard called a remark by Mr. Balcer that the shipping companies would continue to move their vessels with or with out pilots "'a dangerous atti t if We Mr. Balcer said the shippers have told him they are prepared to accept a prolonged work stoppage "in their own long- range interests." He said the shippers had also flatly refused to meet with pi lot negotiators until the men re- turn to work. *'I urged them not to take an obdurate attitude Mr. Chevrier, a former trans- port minister, maintained that the pilots seek higher rates be- cause of the increased tonnage of the ships they handle. WELL TREATED The minister replied that the ts have never been so well ated as in the last three years re Douglas Fisher (CCF -- Port Arthur) said an investigation should be made of pilotage op erations in the St. Lawrence and the whole Great Lakes system as far as the Lakehead He urged Mr. Balcer to the help of the Canada labor re lations board, even in an unof-' ficial way, to settle the current! didpute even if it is not a legal | get Strike. prices went up about two per cent, or $50 on a $2,500 car. PITTSBURGH (AP) -- The giant U.S. Steel Corporation, a leader in one of the basic United States industries, in- creased its prices today. The price raise, announced Tuesday a few hours before it took effect, added an average of $6 to the cost of a ton of steel, which ha: been selling for a little more than $150. What effect it will have on the prices of other steel firms was not immediately deter- mined. But U.S. Steel, bigyest producer, customarily sets the price pattern for the rest of the industry. Hambly Second In Auto Rally WINNIPEG autos long cross-Canada auto rally set (CP) -- The 35 remaining in the week out from here early today for Saskatoon, via Regina, after a long, 706-mile' haul from Sault Ste, Marie, Ont., Monday Peter Ryan with Mike ty as co-driver was at the head of the pack at Winnipeg with a loss of nine points and 100 test points. The Toronto men were driving an Austin. In Second place was Trant Jarman of Rochester, Mich., and Don Hambly of Oshawa They lost 13 poirts and were awarded 86.8 test Pyints driving a Chevy II. Expected Today VANCOUVER (CP) The! produce feud between the Carpenters) goods. Brotherhood and the Woodwork-| Labor Minister Starr spoke ers union over Newfoundlandjabout a similar subject. in a loggers was expected to erupt)speech to the CLC's policy today at the policy conference|convention. Pledging federal of the Canadian Labor Con- government support, Mr. Starr gress. called on labor and manage- Reliable informants indicated|ment to tackle the problems the showdown would be staged stemming from automation. on the basis of the CLC's peace| "Automation is not merely plan for a one-year cease-fire in'technological advancement it is sacs | the jurisdictional dispute -- aa _ revolution," he said. "We plan rejected by. the 64,000--must show ourselves to be member Carpenters union but masters of automation and its Teacher Strike | accepted by the International human and social conse eac. er Stri e Woodworkers of America quences."" rienine's Ln New York The IWA. seventh ranking, Finance Minister support from . ® Starts Rioting union in. Canada with 34,600 budget got little members, has charged the | CLC officials. William Jenoves NEW YORK ers strike for more pay dis-! Carpenters with raiding its ju-/of Toronto, a CLC vice - presi- rupted school operations revenues resulting from his fore-! cast of a seven _per-cent in-| of Crease in gross national prod-| uct this year. The net effect} was to increase the expected} deficit by $50,000,000 to $745,-) 000,000. | TO HELP ALL His. problem was to. spread ax concessions where they} would have the most impact. He chose incentives to busi-} ness and a modest: increase in| the same amount (AP)--A teach- labor congress risdiction in Newfoundland and dent, said it offers "very little also with violating CLC policy.|improvement" for the working If found guilty, the Carpenters|man of Canada. union, second biggest in Can-|----~-- - ------ ada, would be susnended from ; | > CLC 4 ahs geht | throughout New York City to- gg, Bnet ye ' se ae Jury Deadlocked day and led to a student riot at) Carpenters are forcing a show- . a school on Manhattan's lower down by insisting on a ruling In Murder Trial east 'side aes face The result is a prickly dilemma See ; " The: disorder erupted at_ the that seems insoluble without, LOS ANGELES (AP)--A jury Seward Park High School. Row-| one or the other of the big un- trying ex - gambling kingpin diness broke out among 2,300) ions dropping out of the central Mickey Cohen and four others Students who had first gathered on murder and_ conspiracy in the auditorium charges reported itself dead-. They began throwing papers WANT FEWER HOURS locked Tuesday and was dis-Out the wnndows and were or- The 1,000 or so delegates voted missed. The case was set over dered from 'the:school when 15 Tuesday for a declaration the to April 18 for a new trial or Non-striking teachers and four |CLC unions "make every effort other disposition policemen were unable to con- jto secure shorter work weeks! Cohen, 48, and his co-defend- trol them, }with the same or higher take-jants will remain at liberty on As the' students reached the! jhome pay and more holidays, in| bail of $50,000 each Streets, about half-a-dozen boys! their next agreements." The five were indicted by a began swinging wildly at each The reduction in working grand jury in connection with)other as hundreds of others time is aimed at meeting tech-|the 1959 gun slaying of Jack| mille ipabout. Police waded in nological changes that make it|(The Enforcer) Whalen, a gam-|to hay the battle while rein- possible for fewer workers tobling debt collector. |forcements were 'summoned icits by $376,000,000. record. COME TAX BITE BIGGEST