The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

ll BARR mu mhmAY DEC How Will Voters React In 1962 non anwmoar OTTAWA CIDPolitical re percussions of Ottawas deal ings with the provinces will be felt far into the future but more immediately in 1962 when federal general election is eat pected How will voters react for ex ample to the new federalprov incial tax revenue split whidi has been blamed for tirele perccnt sales tax in Ontario and opened the doorii in creases in personal and corpora tion income tax rates in Man itoba and Saskatchewan Will voting reflect Prime linA lster Diefenbakers intention to write federal provincial Bill once agreement on the recently announced formula for amend ing the British North America Act has jelled into legislation Bound to be regional factors in balloting are Ottawas sparv ring with the Britsih Columhai government over the Columbia River treaty the federal atti tudc toward the Quebec separ atist movement and decisions affecting economic tldes in the Atlantic provinces ISUIT ADJOURNED One thorn was removed from Ottawas side Newfoundland adjourned indefinitely its dam age suit against the federal gov ernmcnt for alleged breach of contract in not sending re quested RCMP reinforcements during the island loggers strike in 1959 Seldom in history have so many federal provincial issues been crowded into one calendar year All are grist for the poli tical mill One of the biggest gains dur lng the year was the publica tion Dec of the proposed for mula draitcd by the federal and provincial attorneys gen oral for making amendments in Canada to the BNA Act the step necessary before it can lie comc Canadian statute The formula would give Par bamcnt the power to make three kinds of changes in this basic document of the constitu tion Changes in sections affecting basic provincial rights it all provincial legislatures agreed sections affecting only few provinces if those legislatures approved any other sections if there were agreement by legis latures of two thirds of the provinces having 50 per cent of the Canadian population at the last census FACES HURDLES All of this still is just pro posal however The provincial attorneysgeneral must submit it to their governments and some if not all will seek the con sent of their legislatures Then Parliament must agree and finally London The principle of unanimity for changes in provincial rights has been described by Justice Miii istei rulton as solid guavan tee for Quebec But in the 01 tawa conferences leading up to the draft formula Saskatche wan objected to including this veto power Another stumbling block is that some provinces Quebec among them have indicated they may not sanction the rith formula until 1949 amendment to the bNA Act is deletedrhe one giving Parliament the power to make changes affect ing matters not assigned excru sivcly to the provinces Despite these complications ltfr Dicfenbakcr has said he hopes for the consittutionat transfer to Canada during the present Parliament After trans fer he said the first step would to write in the Bill of RigbLs The 1960 federal Edi mum would be embodied in uIL pro posed constitutional guarantees which Mr Diefenbaker said would also obtain an terms of discrimination including denials of hotel accommodation or club memberships to lndiidiuals be cause of race This plus the overall formula requiring it mous consent for changes in provincial rights such as education and language would give Ottawa an important counter to the apparently small but vocal separatist movement which seeks Quebec secession Yet in Ottawas relations with Quebec one key issue is out standing How to deliver federal university grants to that pmv lnce without making it appear they are direct handouts imply ing federal interference in edu cation In the old taxvrental agree ment scrapped this year this was done by Quebec imposing an extra percentage point of tax on taxable corporation incomes to raise money equal to the uni versity graan Ottawa then re bated that extra tax to the cor porations NEED NEW PLAN However this system was not written into the 1961 legislation which changed the whole tax shoring method It remains for Ottawa and Quebec to come up with substitute and Ottawa argues that the next step is up to Premier Lesage In the broader picture the end of the taxrental system means the end of payments to the provinces of 13 per cent of the yield from personal income porale taxable income Instead the provinces are re quired to levy their own per sonal and corporation income taxes though in most cases the fdcral government will act as central ollection agency Starting Jan Ottawa will withdraw progressively from the personal income tax field 16 per cent in 1962 rising one percentage point annually to 20 per cent by losethus leaving the provinces free to levy cor responding or greater tax The federal Eovernmen also will reducc its corporation in come tax rate by nine percent age points the top rate will go from 50 to 41 per cent of tax able incomewith the provinces free to levy their own taxes SOME TAX BOOSTS Some of the provinces have protested that these changes were forced on them by Ot tawa Yet all have fallen in line with the tax statutes to take up the space vacated by the federal government While most have stuck to the firstyear 16 per cent of per sonal income tax there are two key departures Manitoba and Saskatchewan both have raised their own per sonal income tax levies to 22 per cent from the lonercent leeway left by Ottawa and also have put an additional one per centage point of tax on corpor ato income This means double taxation in both provinces Manitoba says it needs the extrarevenue to reduce hos pital insurance premiums and Saskatchewan seeks the added tax income to help finance its new health insurance plan The opposition parties are contending that Ontario had to impose its threepercent sales tax last fall because of failure to get What it had hoped for in the new tax deal This is con tentious point in province that is one of the key battlegrounds in any federal general election Prospectors Flock To Central India To Follow Diamond Strike By RUKMINI DEVI Canadian Press Correspondent BOMBAY CPIA sleepy vil lage in central India has be come the focus of national at tention It is Panna whcre diamonds have been found attracting hundreds of prospectors who hope to strike it rich overnight 500 square mile area around Panna is estimated to contain diamonds of total weight of 3000000 carats The Madhyt Pradcsh state govern ment has let it be known it would like as many diamond seekers as possible to converge on Panna Rosy newspaper ac counts have also whipped up hope in many poor home For just one dollar the state pubides Hie licence and allots 25squarefoot plot for the prospector to tryhis luck All that he needs now is shovel plus patience Digging with the shovel the prospector hits red gravel only few feet from the surface The gravel is collected washed and driEd in the sun It the gods are kind rawdiamond maysparkle from the heap Otherwise he goes on digging with prayer on his lips Theoretically it is hopeless business There is just fine part of diamond for every 3410001100 parts of ore andto land two carats of raw diamond pros pector harto mine as much as 20 tons of earth Hot Indian villagers are in apired by the example of 25 yearold Rasul Mahomed and his pretty wife who found 48 carat diamond worth nearly $50000The dramatic find has made Mahomed rich and re spected man overnight Then there is the case of Halki who owns and renb donkeys to the prospectors He found diamond within days of taking out licence FOUND NOTHING There are also men like Nathu who have been mining for months and have landed nothing To date nearly 5000 licences have been issued by the state government The lessees are mostly poor farmers and land less agricultural laborers The state has also entered the search 30squarcmilo area has been leased out to the government sponsored Na tional Mining Development Corporation team of Rusian experts were also invited to give expert advice on mechanis ing the shallow mines Fandit Atmn Ram village priest is also in the business He has no licence himself but sells lucky talismans to pros pectors at prices ranging from 20 cents to $8 The costlier talisman the more prayers it contains NATURAL RADAR bat using sound as method of finding direction and prey can omit up to 200 beeps 53 second from its tlny larynx taxes and nine per cent of cor VICTORY KISS Mrs Clair Kirkland Cas grafn first woman to be elec ted to the Quebec legislature gets victory kiss from her South Pole Was Different Dangers Now By FRANK CAREY AP Science Writer SOUTH POLE STATION AP The original conquerors of the South Pole might flip their fur parkas if they could see some of the goings on down here these days ltlcn like Norways Roald Am undsen whose expedition reached the pole on Dec 14 1511 the British Capt Ilobcrt Scott who was beaten by Amundsen only by month and even Admiral Richard Byrd the American who first flew over the pole might be aghast to find Movies every other night at the lonely station Hi fi music in some of the buildings An ice cream macblnc in the mess galley and huge aircraft dropping supplies by parachute or letting down on an ice can once sacred to growling husky dogs It took Amundsens party of five explorers just short of two months to make the 350 mile overland journey from the Bay of Whales on the coast of the treacherous Ross Sea to the pole even though their tough Eskimo dogs sometimes made as much as 50 miles day QUICK TItIIS Today huge US Navy Harc nles jet prop ski equipped planes carry cargo and person nel to the pole from McMurdo lSoundan amine distance of 730 milesin less than three hours And great air force Globcmaslers make non stop roundtrips between the two points airdropping tons of cargo on each trip Amundsen and his early fol inwars would still find the ex treme cold of the worlds most frigid spotwith temperatures ranging down to 110 degrees be low zero And theyd sea men working outdoors in them At the station the old timers would find complex of build ings as well heated and almost as well lighted as big city apartmenta far cry from the tents Amundsen and Scott used for shelter But theyd find these same modern buildings buried be neath up to eight feet of drifted snow with the sharedup roofs already weakened in many places one structure already collapsed and another so weak ened its use has been con demned Theyd even find dangers they themselveshad not faced FACED DEATH Amundsen and Scott and many of their early followers faced death and danger on the trail its true ln fact Scott and his four companions all died an the trail on their return trek from the pole But at the modern pole stai tion men could he killed by ac cidental explosion of hydrogen gas used to inflate weather bal loons Mazes of electronic gear needed in weather communica tions glacial ogy and even space travel re searchpresent arconstant fire hazard About an eighth of mile away is flag pole marking the South Pole itselfand about20 feet from this is still another Dugpole 1helatfer is used to accommodate foreign visitors who might want to raise the flags of their own countries and have their pictures taken for the folks back home Two tunnels lead to the bur ied living and other quarters When you leave the surface the outside summer tempera ture is 47 degrees below zero Down along the streets of the buried camp its still about degrees below Amosr casuatrr COPENHAGEN Reuters Copenhagens 100 foot high Christmas treeralmust became honfire Tuesday when drunk set fire to lt Bystanders put the fire out with ow husband Phillippe Mrs Kirk landCasgrain won the seat for Montreals Jacques Car tier riding in byolcction in December 1061 ALGERIAN STRIPE GROWS ALGIERS Reuters Four locn persons were killed and 19 others injured in 31 violent at tacks throughout Algoria Tues day military officials said here early today The attacks were carried out by both Moslem in surgent and European extrem ist groups Klsf isiavailahle In the popular Soft Coal Industry Lost Ground Despite Its Comeback Efforts PllISBURGH AP The troubled US soft coal industry lost ground in 1961 despite de termined efforts for come back general economic slump in the early months weakened coals markets Business later improved modestly but not enough for the industry to over come its slow start Coal men anticipate better showing in 1961 And they hold hopes for real resurgence in the years beyond The main goal of coal produc era is expanded demand to off set inroads of fuel oil and natural gas To help achlere this the iris dustry has formulated plans for an ambitious research pro motion and marketlpg program to capture new customers PREDICTS RISE Stephen Dunn president of the National Coal Association predicted output will climb to $00000000 tons annually in the near future In 1960 rela tivoly good year productlon was about 416000000 tons The association estimated 1961 bituminous output at 399000000 tons it expects 1962 production to hit $00000 tons Domestic consumption for the year was set at 365000000 tons compared with approxlmately 330900000 In 1960 and 366000 000 the previous year The NCAloolLs for 1562 consumption of 382900000 The electric utility industry sottIeoals No customer took some 1780000300 tons as against 174000000 in 1960 iooooooo ton increase is seen for 1962 longch trend of ever increasing mechanlration cork tinned in 1961 The industry employed an average of about 13100 miners compared with 1571 in 1960 Twenty years ago the mines employed more than isoooo UKs First tilSub Delayed LONDON tCPl Completion of HMS Dreadnought Britains first nuclear submarine may be delayed until 1963 because of strike by 50 fitters now in its third month The sub was launched in 1960 and original plans called for her to he at sea now But previous labor troubles and alv ready advanced the target date by five months The delay is lmposinga strain on Droadnouglits ll officers and TI ratings some of whom have been training since 1958 They are hdtcted near the Bar row Shipyards where the sub is being fitted out The holdup is depriving them of operational experience and interruptnig their promotion schedules To avoid going stale they have been teaching others as many technical duties as possible The strike has also disrupted the admiraltys longterm plilll ning it had hoped Dreadnought would by now be contributing practical information for guid once when and if Britain adopts the Polaris undersea missile Economy wag Still Improve TORONTO CF Improving economic trends of 1961 can be expected to continue into and probably through 1962 hlilner president of the Invest ment Dealers Association of Canada says in year end statement Continuance of serious un employment problem combined with lhe likelihood of federal election suggest that monetary policy may contlnue to be ex pansionary and that the empha sis on fiscal policy will be on the expenditure side These policies should rein force eeonomic trends and on gender growth of five to six per cent in the Gross National Product next year compared with this ycars estimated growth of about two per cent hfr hlilncr president of Mills Spence and Co Ltd said the rapidly increasing concentration of population in the iotalsycar age group suggests that can sumcr spending will be of grow ing importance over the next few years But as most houses were purchased by the ZSIudtl year group housing would not likely be dynamic in the period immediately ahead INTEREST RATES UP Capitol spending by industry and government during the last few years has been approxi mately constant Improving con ditions in 1962 could inducc modest increase Demand for funds by indus try and government in Canada superimposed on the likelihood of higher interest rates in tho United States suggest firming tendency is likely to occur in our interest rate structure as 1062 irogrfises Canada continues tomaiotain good relationship with foreign Investors and to provide sound and stable climate for invest ment lttr llfflner said litany expressions conlai nationalistic overtones togc with the British Columbia ernments expropriation of the RC Electric Company without arbitration have shaken but not shattcrrd fo no confidence The healthy rise in self crilt cism is fostering broad reap ptalsal of Canadas position and should be encouraging to inves ore BUDGET EFFECTS The baby budget of last De cember had presented measures to discourage foreign borrowing and the June budget made direct assault on fhti cxchango value of the Canadian dollar and interest rates The reduced value of the lar is already tending to crease imports and reduce im ports The interestrate policy assisted by rapidly expanding money supply has reduced the spread between Canadian and US interest rates and thereby tended to discourage foreign inlt vesting in Canada These poli cies if they can be mainlalned can greatly assist Canada in making the required adjust merits Funloving people of all ages love Kisf Kist adds to the fun mode flavor olwo hit your thirsty spot These sparkling beverages with the fresh Refresh fast And with Kist you get the some true flavor every time wherever you shop because Kist is mode from natural true fruit ingredients and is qualityaontrolled So try the better soft drink soon The whole family will love it Your favorite store has your favorite flavor Orange Km Kin Lemonleo Kisf Grop Kin Grearn Soda Km as near Kist Collins Mix Festival Dry Ginger Ale For Real Convenience Look forKIST Beverages in KIST nines Musxofll new cleanser in 00 bottles séioiiiecarioiis and in the an oi family size