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our TELEPHONES For Examiner Want Ad Tele phone PA 84114 ill telephone number to call for the horrors or Editorial Dept ll PA 5637 Nth YearNo 56 VFLEMING ARRIVEé FOR BUDGET SESSION Pilots May Strike All Shipping Ports MONTREAL CPI meet ing of river pilots in TroisHivi eres Que today is expected to decide whether work stnpv page which has already tiedxup almost all shipping on mayor stretch of the St Lawrence river will be extended to ports across Canada Andre Fedard president of the Federation of St Lawrence River Pilou said Tuesday he has been informed by the Na tional Pilots Association of the Canadian Merchant Guild CLO that it is willing to join the 270 Quebec pilots in series of general meetings He said such meetings in ef fect work stoppages would tie up shipping from Halifax to Vancouver 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 meeting with Trans port Minister Balcer in Ottawa Monday He said these concessions in cluded the offer of threeyear 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 timaleds1zonoayear However Mr Balcer told the house Tuesday the pilots had made no move to modify tllcir excessive demands and had rejected his request for an end to the work stoppage He called for general in quiry into the whole question of pilotage matters Mr Bedard called remark by Mr Balcer that the shipping companies would continue to move their vessels with or with out pilots dangerous atti tude PAPER DELAYED An unscheduled power cut off at critical time in The Examiners production sche dule this morning has caus ed delay in service we regret that delivery of the paper may be late roiled ing this delay 33 SCHOOLGIRLS Rev Patrick OShea bare headed is joined by Dean of Girls Mary Lins at fourth storey window of Mission High school in San Francisco as they pleadwlth Gloria Isonto come off her precarious perch The girl stood on the ledge 45 minutes bcfore she was vrestl ed back to safety Gloria16p Barrie Ontario Gouda Wldnuday April ii i961 Uhc titanic Ex emitter LOCAL WEATHER Mainly runny today little warmer law tonight 30 my tomorrow as For completl summary turn to page three Not More Than per Copy24 Page BUSINESS BENEFITS MOST FROM BUDGET BUDGET HIGHLIGHTS Personal and corporation income tax rates remain In Forecast Budget Employment Spur OTTAWA CF No big tuxlncetlve carrots to spur industry to or increased sales and scientific research have been held out by Finance Minister Fleming The goals major increase In production and employment and switch by foreigncon trolled corporations from heavy dependence on foreign research ellorts The new approach was out lined Tuesday night in Mr Flemings budget speech He told the Commons that the de cline in unemployment rates must be pushed much fur ther and the slack in idle pro duclivc capacity taken up The budgets main comeon is in the form oi tax rebates of up to 50 per cent on profits re sultingfrom increosed sales by manufacturing and processing iilms thc industrial areas where employment would be most effective The second is what Mr Flem ing called new and power ful locenitvc to increased in dustrial research deductions lrcm taxable income of 150 per cent of increased spending by industry on scientific research As starter this program will run five years Mr Fleming also announced onavyear extension to the end of 1963 in another incentive program begun Jon 1960 the income tax provision allow ing double depreciation on new manufacturing investment spent to produce products new to Canada or for new plants in depressed areas And expressing concern that oil and gas exploration wont keep up with growing markets he provided new inccntives that will allow all companies and others to write off exploration costs against taxable income from oil and gas production The tax formula is complex There will be cancellation of so per cent of the income tax on the first $50000 of taxable profits resulting from increased sales with rebate of 75 per cent of taxes on profits exceed ing $50000 that are generated by higher sales Mr Fleming said companies with taxable incomes as high as $500000 could have 10 percent sales gain and still get the 50percent benefit The proportion of taxable in come benefitting from the new deal will be the same as the proportion by which sales rise TORONTO CF Ontarios education system came under fire Tuesday from both sides of the legislature Premier Robarts said the provinces elementary school system is not tough enough and revealed that some 50 per cent of Metropolitan Torontos mentally retarded children are kept in back bedrooms Liberal Leader John Winter meyer waded in with attacks on the provinces vocational guid ance program Mr Robarls turned on the critics of his new threepronged program for secondary schools The first stage of the pro gramcommonly referred to as the Robarts planis expected to be implemented in Soptern her The premier said the new scheme will allow pupils to choose one of three general courses suited to their talents ED who threatened to Jump said she had quarreled with her boy friend Ir want to die she said nobody loves me AP WlBEPleTO Education Comes Under Fire IV From Govemmént Opposition These are the arts business and science and technology He said the new scheme will help reduce the staggering number of dropouts under the present system Pension Plan For Municipal Employees TORONTO CmA govem ment sponsored pension plan aimed at providing retirement benefits for municipal employ ees in the smallest hamlets and largest cities of Ontario was an nounced today Municipal Affairs Minister Cass introduced hill in the legislature to establish the 0m tario municipal employees re tirement system It is to become law before the current session of the legisla ture endsprobably next week but will not go into effect un til Jan 1963 Eventually about 65000 municipal employ ees will be eligible to partic ipate Mr Cass said the plan will be financed by contributions from employees and employers with the Ontario government provid ing the money to organize the system RUN BY BOARD nineman board represent ing the provincial government the municipalities and the em ployees will manage the plan EOLPHTON Ont CPUTho atomic furnace in Canadas first nuclear power station went into operation here early today cul minating seven years of re nadiun scientists and engineers The successful start up of the nuclear reactor does not mean however that the $33000000 ex perimental station is producing electricity The start up repre sents one of the finol stages in the commissioning of the sta tion which is expected to pro duce its first electricity within the next few months The station known as Nuclear Power Demonstration is about onehalf mile from Bolphton on the Ontario side of the Ottawa River The location is about 160 miles northwest of Ottawa and some 12 miles upstream from the Crownowned Chalk River research centre of Atomic En ergy of Canada Limited search and development by Ca changed incentive rebates as high as 50 per cent on tax result ing fmm increased sales by manufacturing and processing firms income tax deductions for dependents increased by $60 to $300 for children receiving family allowance and $550 for other dependents removing 80000 from income tax list Tax deduction of 150 per cent allowed on increased ex penditure for scientific research in industry Deduction of all oreproduction expenses allowed oil companies Double depreciation for investment in new products and depressed areas extended for one year to Jon 1964 No mange in taxes on liquor and tobacco Budget deficit of $745000000 for 106263 on expenditures of 06525000000 revenues of $5750000000 Deficit designed to provide economic stimulus but not to endanger price levels Nonresident iron are companies exempted from special lSpcrcent tax on income of branches of nonresident cor porations Federal tax credit for On panics equal to twothirds of 10 per cent tario and BC logging corn provincial logging taxes up to Various sales tax exemptions msting treasury $2000000 year Predict At Convention VANCOUVER CF The feud between the Carpenters Brotherhood and the Woodwork crs union over Newfoundland loggers was expected to erupt today at the policy conference of the Canadian Labor Con gress Reliable informants indicated the showdown would be staged on the basis of the CLCs peace plan for oneyear ceasefire in the jurisdictional dispute plan rejected by the 000 member Carpenters union but accepted by the International Woodworkers of America The lWA seventh ranking union in Canada with 34600 members has charged the Carpenters with raiding its ju risdiction in Newfoundland and also with violating CLC policy if found guilty the Carpenters union second biggest in Can Raids ada would be suspended from the CLC and probably expelled International officers of the Carpenters are forcing show down by lnsisting on ruling The result is prickly dilemma that seems insoluble without one or the other of the big un ions dropping out of the central labor congress WANT FEWER HOURS The 1000 or so delegates voted Tuesday for declaration the CLC unions make every effort to secure shorter work weeks with the same or higher take home pay and more holidays in their next agreements The reduction in working time is aimed at meeting tech oological changes that make it possible for fewer workers to produce the lame amount of goods ThreeYearOld Boy Perishes lls Fire Guts Toronlollome TORONTO CF One child died today in downtown Tor onto fire which destroyod semidetached threeunit build flg Mrs Olive Oliver wife of truck driver William Oliver jumped to safety from second storey bedroom of the burning home Firemen brought out her threeyearold son Robin but he was dead on arrival at the Hos pital for Sick Children Three other Oliver children were at school An ambulance stood by for more than an hour while tire men wearing oxygen masks gropcd through thick smoke searching for another infant be lieved in the building Later fire The plant only one of its kind in the world was built as co operative project by Atomic Energy of Canada On tario Hydro and the Canadian General Electric Company Limited The atomic furnace in the station began burning uran ium and generating heat for the first time at 2540 pm The event was witnessed by 80 offi cials of the three companies in volved in construction of the project variety of commissioning tests will be conducted during the next few months beioro the reactor is brought up to its full heat output At that time steam created by this heat will be fed from steam generator intola turbinegenerator unit to pro duce electricity NDP will have an electrical output of 20000 kilowatts but will not produce electricity eco officials said they had estab lished that Mrs Oliver and Robin were the only two persons in the building when the fire started Cause of the fire has not been determined Busiamante Is Victor KINGSTON Jamaica Reut ersl Sir Alexander Bus mante today led his opposition Labor Partyvhack to power and promptly called for defence pact with the United States to protect us against foreign inva sion Not llpparent Election Bait Profit Rebate 0f 50 Per Cent OllAWA CPIA bluevplole special for the gage business man was scrved up nlcsduy night by Finance Minister Fleming in prc election budget spccch lasting an hour and 45 minutes ltloin feature of budget fore costing 106203 deficit of 3745 000000 and reducing the tax take by $130000000 was re bate as high as S0 pcr cent on taxes due on profits from in creased sales by manufactunng and processing firms Personal and corporate in come tax rates remain un changed If the budget was designed as votegatherel in advance of the general election expected in June it wasnt blazineg ap parent hf Fleming made modest bow in the direction of the individual taxpayer by lopping 535000000 from revenue in the personal income tax ficld RAISES DEDUCTIONS lie accomplished this by rais lng deductions from taxable income for dependents by $50 to $300 for children 16 and under andlo $550 for other dependents whether children or adults Mr Fleming said the tax in centive for increasing sales should result in cancellation of at least $50000000 in taxes in full year This is about four per cent of all corporation in come taxcs which will be paid this year The business mans budget also provided for another $85 000000 worth of incentives to the petroleum industry and companies increasing invest ment in scientific research for industrial purposes Mr Fleming forecast seven percent increase in the gross national product compared with last years 25percent rise and said the central purpose of his budget was the encour agement of economic growth SPUR T0 PRODUCE The tax incentives were de signed to spur increased pro duction and employment In brief these incentives are Cancellation of 50 per cent of the tax on the first $50000 of taxable income arising from increased solos 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 AFurnooe Is Burning At7New Power Plant comically However informa tion obtained through operation of the plant is expected to make it possible to build large eco nomic plants USES URANIUM The plant uses natural uran ium as fuel Heavy water is used as moderator to make the atomic fission process pos sible and to transfer heat from the reactorto raise steam Canada is banking on this system for the production of large blocks of economic nu clenr power number of co including IndioBritain and the United Statesare ex pressing growing interest in the Canadian system The station will be operated by the Hydro Electric Power Commission ofOntario which will pay Atomic Energy of Can ada for the steam fed to the turbine power station hn 3193 Deduction of 150 per cent of increased expcnditures on scientific research for industrial purposes when computing loo come for tax purposes Petroleum companies may deduct oll oreproduction ex penses including costs of rights exploration and drilling in computing income tax Mr Flcming said the inced lives will cost the treasury about $22000000 in the 196201 fiscal year which began April and $05000000 in full year Soles tax reductions would amount to about $2000000 Higher deductions for depend cuts would chop 110000 persons from the list of taxpayers flow over the number of personal income taxpayers this year ls estimated at 5150000 against 5100000 in 1961 APPLAUSE lNTERRUPTS Mr Fleming was frequently interrupted by applause from his supporters especially when he referred to such things as substantial and healthy expan sion rising prosperi and increased employment Mr Pearson made the mist of the 11 minutes at his disposal and jobbed away at the $745 000000 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 damn the government The defi cit in the 1961452 fiscal year was $791400000 peacetime record Mr Fleming said his forecast loses deficit will provide sound degree of economic stim ulus and at the same time will not endanger the price level during the coming year Employment had been ris ing rapidly and unemployment falling but we still have more unemployment than is consist ent with out national objeclt Lives Capital investment was plain ing up sharply but we need still more it is important therefore not to apply any fiscal brakes at this time by abruptly closing the gap between revenues and expenditures AIDS JOBvGIVERS Encouragement and incentive were being given to private in dustry to increase eliicienw expand employment improve Canadas competitive position andto keep abreast of the most advanced scientific methods rms AERIAL photograph shows Cpnadast nuclear 0nt whére theatomc furn ace went intooperation early ay The sttionknow as Powel Bemonytrn catch nd developme scionusts and engineers warning