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2 THE OSHAWA TIMES, Wednesday, July 27, 1960 'Premiers To Discuss Constitution Change By ALAN DONNELLY be made before another confer- Canadian Press Staff Writer [ence expected later this year. OTTAWA (CP) -- The federal STIRS DISPUTE and provincial governments, oC-| Tuesday's meeting was marked | cupied by big money talks on tax- hy a heated dispute stirred up by sharing, have taken time out to| premier Smallwood of Newfound- set their sights on an historic|jand, who charged federal repud- {move--the final step to complete | legislative autonomy. Prime Minister Diefenbaker told the 10 premiers Tuesday he| will call an initial Dominion-pro- jation of the 'solemn, moral" obligations involved in his prov- ince's 1949 Confederation agree- ment with Canada. His fiery oratory flamed up vincial meeting this fall on ways| over the federal decision to pay| FIREWORKS FOR BLOOD This a display celebrating the col- | The organization aims jection of 2.000 pints of blood | 10,000 pints by Aug. 26. ; downtown Montreal is part of | py the Red Cross in Montreal. (CP Wirephoto) rocket bursting over Idea Of Firm 'Terrible Joke' CP)--B e and his |given to Metropolitan Toronto Mr. Blunden said he Chairman Fred Gardiner, a | member of the Metro licensing revoked the Roberts car a 350-pound friend. In Chicago, where he is look- ing in at the Republican conven- wh Kelsc commission licence of les. Kelso-Roberts| Mag 1d to reflect on, mission a| Tuesday TORONTO rred from Sa using nam because it was them any good to advertise me I will not be in the least upset." Despite withdrawal of the firm's licence last June, the firm te C. A. Thoburn, com- vice chairman, said night Joseph Roberts Blunden little] the » have for | - |chewan's Premier Douglas both inces in the current year. of Canada amending its own con-| only until 1962 a special $8,000,000 |stitution, if they agree to the annual grant recommended by a talks. [royal commission under the There seemed little doubt this|terms of union. He claims Ot- agreement will be forthcoming tawa is honor-bound to pay the |for the proposal, broached Mon- grant indefinitely. |day by Quebec Premier Lesage ogg IMPROVEMENTS |in calling for a move to end the 'rhe conference has heard all {last "'vestige of colonialism" --| 4 oor but one--Premier Man- {the need to refer constitutional | ping of Alberta--demand sizable amendments to the British Par-|jm 5 ovements in the present tax- liament. | share plan. The proposal has been sup-| "mue ourrent five-year arrange- {ported by all but two premiers,| mont provides provinces with this and those two have merely re-| uctandard tax" share of the three served judgment. i told 1 ¥ Mr. Diefenbaker said the next Siroet Bx eu per fen of step, once Canada has this full cant of corporate profits and 50 constitutional autonomy, could be per cent of succession duties {Joint talks on a constitutional bill| Tic 13.9.50 formula works out to of rights binding in both federal| 2,0u¢ one.seventh of personal in- and provincial fields. come tax yield, one-fifth of cor- | poration income tax and half of succession duty. There has been general ap- proval, however, cof the principle of equalization payments to less- wealthy provinces to help them | provide a 'standard level" of basie services to their people. These federal payments, under the present scheme, bring the percapita yield from the "'stand- THE PRICE TAG | This development--shaping up| since Premier Lesage's surprise speech Monday -- almost over- shadowed happenings in the fi- nancial talks at the Dominion- provincial conference where Fi- nafe Minister Fleming ruffled) some premiers with his price tag on what it would cost to imple- ment their proposals. | Mr. Flemir 000 the total cost of provinci demands for more tax revenues : |and federal aid which have been |the top provinces. voiced during the first two days| GREATER YIELD {of the three-day conference. | The tax-shgre plan, plus equal- Ontario's Premier Frost--who|ization payments and an income- 9) . 2. the level of the average yield in made the biggest fiscal demand stabilization factor mean an es-| lof any premier -- and Saskat-|timated $802,300,000 to the prov- An- disnuted the figure. other $389,000,000 goes in federal The conference today spends payments for shared - cost pro- lin the big Commons railway|ance, highways and social wel- committee room. fare. | Constitutional reform has been, Mr. Fleming said these figures added to its heavy agenda which|{mean a return to the provinces tion Mr. Gardiner said "if it does spans the whole field of federal-|of 37 per cent of the total take|tax prosecution in the U.S. provincial financial relations. from the three direct tax fields. Mr. Fleming's statement, to-|/The new provincial proposals, he gether ®%ith the prime minister's estimated, would push this to description of provincial demands more than 80 per cent. as involving "fabulous sums," Premier Douglas challenged licence ig still operating, Mr. Blunden obviously did nothing to buoy the him to give a breakdown of the concealing the profits through a which Ottawa had urged on the provinces. Later, at a press conference, Premier Lesage said it would be much less because the Ontario and Quebec tax-share proposals envisage the provinces taking over sole responsibility for the shared-cost programs, ONTARIO DEMAND Federal informants sald $1,600, 000,000 of the total is represented |by Ontario's demand for a 50-50 | split of the income tax fields. The rest of the $2,000,000,000 was made up of various other pro- |vincial demands for greater fed- eral payments for shared - cost programs and other benefits. Mr. Fleming's statement con- tained a fresh indication the fed- eral government itself isn't happy over the joint fiscal arrange- ments with the provinces. Ottawa, he said, has to stand {between the taxpayers and the !provinces, levying taxes and handing over a share to the prov- inces. Boys Saved From Boat On Lake SARNIA (CP) -- Two young boys were plucked from their weather - beaten rowboat Tues- day after it drifted 10 miles off shore in the choppy waters of Lake Huron, : A 30 - foot cabin cruiser owned by William E. Connors of Troy, Mich., spotted George Will, 9, of London, Ont., and Ross Huddle- sion, 10, of Indianapolis, Ind., when they were more than 10 miles from the northeast shore of the Kettle Point Indian re- serve, 20 miles northeast of here. Mrs. William E. Roberts, of .|Livonia, Mich., a passenger on the cruiser, spotted the boys. They were sitting and crying because they were so glad to be found, Mrs. Roberts said. The cruiser circled the oarless rowboat but could find no way to fasten a line to it. Mr. Roberts swam to the row- boat and carried the boys through the water to the cruiser. WARTIME WHISKY NEW YORK (AP)--The United States government filed suit in federal court here Tuesday to re- | penalties and interest it says is Vancouver on the profits of a wartime whisky deal. The complaint c har ges that McLennan filed no U.S. income [tax returns for the years 1944 through 1946 when he allegedly made the profils. Canadian Sued For $9 Million claimed that the huge profits re- sulted after the defendants re- ceived a price order from the of- ard taxes" in all provinces up to|cover nearly $10,000,000 in taxes,|fice of Price Administration in 1944 permitting the sale of |Ontario and British Columbia,|0Wed by Albert L. McLennan of whisky in the United States "at a price greatly in excess of what which should have been granted by the OPA under the then-exist- ing regulations." Although the elvil complaint filed by the government Tuesday Joey, Ott Stick To By KEN KELLY Canadian Press Staff Writer OTTAWA (CP) -- Newfound- land and Ottawa appear no closer to settling their two-year- awa Guns ment fully honored the terms of the union negotiated between the former Liberal government and | Newfoundland. He made an apparent gesture old dispute centering on special|toward conciliation by saying assistance for the island prov-|that Newfoundland could tie her ince after March 31, 1962, claims for special assistance to Now they seem to be headed|the terms of union or any other toward a fete - a - tete, outside basis and raise them at this con- the Dominion - provincial confer-| ference or wherever it is conven- ence, to thrash out their prob- ient. em. Later, Premier Smallwood told Premier Smallwood of New-|a reporter that Mr. Fleming's foundland demonstrated to the statement leaves his position un- conference Tuesday that helchanged He would continue to | McLennan was among nine|did not allude to the 1954 case, | men indicted May 11, 1954, by allt was as a result -of those deal- federal grand jury on charges of| ings that McLennan made the partner chose the name to honor jis final day behind closed doors/grams such as hospital insur-|eonspiring to evade more than|Profits on which the government $17,000,000 in income tax pay-|nOW seeks to recover taxes, as- ments. At the time, treasury of-|Sistant U.S. Attorney Paul Mead- ficials said it was the largest|ers said. amount ever listed in an income| Three men were found guilty in 1955 on the 1954 indictment, | McLennan is being sued for|/two were absolved and one had $9.962,053.34. died in the interim. The three | He was among the four prinei- others -- McLennan, George W. Ipals said to have been involved Norgan and Isidore J. Klein, all lin selling whisky in the U.S, and| hasn't budged an inch from his contention that Ottawa failed to honor the spirit of the terms of union under which Newfoundland became Canada's 10th province in 1949. He refused to have the ques- tion become part of the tax-shar- ing and other discussions be- tween the provinces and the fed- eral government, claiming it was a matter to be settled solely be- tween his government and Ot- tawa. On the federal side, Finance Minister Fleming was as un- yielding in maintaining the Pro- gressive C on s ervative govern- Shipowner Sues Paper LONDON (Reuters) -- Setile- ment of a libel action brought. by Greek shipowner Stavros Niar- chos against a British newspaper was announced in the High Court here Tuesday. Court was told the defendants, proprietors and publishers of the Birmingham Post and Mail Lim- ited apologized to Niarchos about a statement concerning him which appeared in an article pub- lished July 8. They also agreed to indemnify Niarchos in respect of costs. The lawyer for Niarchos said the article contained a reference to the first tons of Soviet crude oil reaching Cuba. It said about 100 tankers had been lent to the Russians by Ni- charos who was "obviously un- troubled by the niceties of inter- national conduct," the lawyer said, He said the statement was wholly without foundation and clearly implied that Niarchos had deliberately and with com: | of Vancouver -- could not be ex-| plete disregard of the interests of|sales taxes at the retail level. tradited from Canada against/the United Stales and her West-| Several have such taxes but they participate in conference discus- sions on other matters but would insist on a separate meeting with the federal government on New- foundland's claim for special as- sistance. The Liberal premier indicated that a "convenient" time would not be this year, which would leave the two governments about 15 months to reach agreement before the $8,000,000 - a-year special assistance payment ex- pires, Mr. Smallwood's contention is that a royal commission -- ap- pointed in 1957 under Term 29 of the terms of union to set a figure for special assistance -- intended the $8,000,000 to be paid annually for an indefinite period. He also argues that the fed- eral government is honor-bound to make the payments in per- petuity. Items Added At Conference OTTAWA (CP) -- The state of the economy and the unemploy- ment problem, along with the question of an indirect sales tax imposed by provinces, were among items added Tuesday to the agenda of the Dominion-prov- incial conference. Also added to the agenda, ap- proved in closed session Tues- day, were items covering con- stitutional questions, capital fi- nancing and stabilization pay- ments. Imposition of indirect sales taxes -- hidden taxes at the manufacturer's level -- falls en. tirely within federal jurisdiction. An amendment would be re- | quired to the British North Amer- |ica Act to give the provinces sililar power. Provinces may levy only direct 5 |$2,000,000,000 cost estimate, and system of dummy corporations in the federal fi-|said it unfairly included pay-/Cuba and Panama. In 1954, the government o/under the name Big Daddy. said he would go to jail before premiers' hopes. 's a terrible sort of joke," {his company is forced to stop| Informants said 1 der the n : conspiracy although they could|sia in her plans to supply Cuba amount of the tax is added to the their will to face the charge of|ern Allies; agreed to assist Rus-|are unpopular because the be seized on entering the U.S. | ame of an article. with Russian oil. operating. nancial proposal in reply won't'ments for cost-sharing programs' "OSHAWA'S MOST POPULAR STORE HOURS SPROULE"S--King at Ritson THURSDAY - FRIDAY - SATURDAY OPEN 'TILL 10 O'CLOCK SPROULE'S--Simcoe at Mill Open Thurs. and Fri. Nights SPROULE'S--Simcoe and Colborne ® Best Value for your Food Dollars ot SPROULE'S ® AMPLE FREE PARKING eo DELIVERY AT A NOMINAL CHARGE Side ORANGE, LEMONADE, TR Exira Large Watermelon LIMES FRESH FLORIDA TOMATOES ONTARIO OUTDOOR NO. CONCENTRATE 521.09 POTATOES FRESH DUG LOCAL ONTARIO CUT FROM RED BRAND BEEF SWIFT'S PREMIUM FULLY Cooked Picnics SWIFT'S EVERSWEET SLICED Round Steak Roast 79: n45. 1-LB. PACKAGES wn 50. Swift's Bacon Burgers =. 49- Family Food Store"! nl ; SWIFT'S PREMIUM GRADE "A" OVEN READY Butterball Turkeys 4-8 LBS. n. J Qe § i STOCK-UP NOW FOR THE HOME OR THE COTTAGE! OPICAL PUNCH, GRAPE--REAL GOLD 6407. 35 ¢ TINS SAVE 8c--HEI DEL MONTE RED & WHITE FULL OF FLAVOR 99+ 6-QT. BASKET we 89° 25-18. BAG | TOMATO JUICE SAVE 8c--PREM LUNCHEON MEAT 4 for 1.00 HEINZ COMPLETE ASSORTMENT BABY FOODS 10 ... 1.00 BRISLING CLUB DES MILLIONAIRES SARDINES DRINK PINEAPPLE GRAPEFRUIT 3 PEANUT BUTTER 3 3c OFF--E. D. SMITH'S PURE STRAWBERRY JAM CULVERHOUSE CHOICE GREEN PEAS NZ TINS 4 TINS TINS HOMOGENIZED JARS 4' 15-0Z. 48-0Z. 16-0Z. 9-0Z. JAR 0-0Z, TINS = 1.00 NPONUS BUT 1 dar Red & White Prepared MUSTHRD for only lc SWIFT'S PREMIUM FRANKS [ with the purchase of sack of ot Reg. Price 7 1.00 1.00 1.00 CANADA BRAND White or Cider VINEGAR, gal St. Laurence CORN OIL, 25-0z. tin .... 55¢ York BEANS with PORK, 20-oz. tin 3 for 49¢ DR. BALLARD'S Champion DOG FOOD, reg. 15 oz. tin 4 / 49¢ Nabisco SHREDDED WHEAT, 18-oz. pkg. 27 Nabisco Shredded Wheat, 18-0z. pkg. . 27¢ Aylmer CATSUP, 11-o0z. bottle, .. 2 for 35¢ Burn's BEEF STEW, 15-o0z. tin PLAIN OR STUFFED GATTUSO OLIVES, 8-0z. jar ......... 19¢ SARAN WRAP, 25'roll . . . . .. Brant SERVIETTES, pkg. of 250 . jug .... 73¢ cv... 2 for 59% $ 29¢ 69° S-Lb. Bag of with the purchase of Johns: RAID, HOUSE AND GARDEN BUG KILLER 12-0z. Bomb at reg. price. CHARCOAL for only Ic | ons