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She Oshawa Times 86 King St. E., Oshawa, Ontario T. L. Wilson, Publisher SATURDAY, FEBRUARY 2, 1963--PAGE 6 U.S. Statement Could Arouse Old The U.S. state department's heavy-handed intrusion into Can- ada's nuclear arms debate has been described as a "bombshell", and it is all of that. It could very well provide the central theme of an elec- tion campaign -- a campaign that would, unfortunately, be more emo- tional than rational, stirring up old rancors and prejudices and having, probably, the exact opposite of the effect desired by the U.S. author- ities when they made their ill-timed statement. . It has been clear for some time that the United States has been in- creasingly irritated by the uncer- tainties of what passes for Canada's defence policy -- but no more irri- tated or confused, it must be pointed out, than a great many Canadians. The confusion was increased during the past week or so when Defence Minister Harkness undertook to "clarify" statments made in the House of Commons by Prime Minis- ter Diefenbaker. Under the circumstances, it was natural that the United States, ad- ministration would want to present its point of view, particularly when it did not agree with information given Parliament on the progress of Ottawa-Washington discussion on C tition Vompeftitl * Graham F. Towers has been in a preferred position to observe the interaction of taxation, monetary policy and economic development. For 20 years he was governor 'of the Bank of Canada, and is now the chairman of the board of Canada Life Assurance Company. More than once, in recent years, he has pointed to the depressing effect of taxation on Canadian growth, and discussed the subject again this week at Canada Life's annual meet- ing. | © In his address he cast light on an aspect of taxation that is frequently forgotten. He noted that competi- tion among federal, provincial and municipal governments for the tax- payer's dollar gives rise to more acute difficulties in Canada than are found elsewhere; provinces and municipalities, like all governments, are constantly under pressure to in- crease their spending, and have no difficulty in finding things to do when every proposal is prefaced with the clause of economic myth- ology, "Canada is rich enough to afford this" he said: "Quite understandably, they feel little or no responsibility for the national interest, which is regarded Prejudices the Canadian contribution to North American and Atlantic defence. But the method chosen for the presen- tation of the American viewpoint was, as T. C. Douglas commented, a blatant intrusion into Canadian affairs -- so blatant that it can only have been deliberate. The Kennedy administration may have decided that this was as good a time as any to force a nuclear decision on Canada, just as it de- cided to force a nuclear decision on Britain by abandoning the Skybolt program. But the decision about Canada may work against larger U.S. interests as did the decision about Britain, which undoubtedly fortified de Gaulle's opposition to British membership in the Common Market. Some devious political minds are already suggesting that Diefenbaker hoped that American impatience would provide him with a first-rate election issue. However that may be, it would be difficult for any Canadian politician to reject its obvious possibilities, particularly since brave defiance of "Yankee in- terference" has been quite a good vote-getter in the past. And the interference this time comes partly on the heels of Conservative talk about "made in Canada" policies, For Taxes as the concern of the federal gov- ernment. The unhappy effect of the scramble for taxes by three levels of government was one of the reasons for appointment of the Rowell- Sirois commission 26 years ago. We now appear to be back just where we were at that time, with one important difference -- the level of government expenditures is relatively much higher than it was a quarter of a century ago, and therefore, has a greater economic effect for good or evil." There was a note of warning in his reference to U.S. proposals to cut taxes: "A very strong view is developing in the United States that their taxation, particularly direct taxation, has the effect of choking off recovery and stifling expansion. Yet the expenditures of their gov- ernments represent some 29 per cent of gross national product com- pared with about 33 per cent in Canada. It now appears that a cut in personal and corporate income tax rates in the U.S. later this year is well within the bounds of possibi- lity. It might mean that Canada would be in the position of offering less reward for enterprise and ini- tiative than the United States." Not Worth The Bother The federal government might just as well have not bothered to do anything about the protection of Canadian magazines against unfair U.S. competition. Its latest proposal would not touch the magazines' main competition, but would cer- tainly add to the growing number Of petty irritants in Canadian- American relations, '. The report brought down by the O'Leary Commission, which investi- gated the magazine situation, sug- gested strong medicine for the ailing Canadian periodicals. The main re- commendation was that money : T. L. WILSON, Publisher : C. GWYN KINSEY, Editor The Oshowe Times combining The Oshawa Times festablished 1871) and the Whitby Gozette and Chronicle (established 1863, is published daily "Sundays ond statutory holidays excepted). : « Members of Canadian Daily Newspaper Publish- 'ers Association. The Canadian Press, Audit Bureou 'of Circulation ond the Ontario Provincial Dallies *Association, The Canadian Press is exclusively 'entitied to the use of republication of all news itched in the paper credited to it or to The 'Associated Press or Reuters, and also the tocol 'news published therein. All rights of special des- . 'potches cre clso reserved. * Offices: Thomson Building, 425 University Avenue, Toronto, Ontario; 640 Cathcort Street, Montreal, P.Q. SUBSCRIPTION RATES * Delivered by carriers in Oshawa, Whitby, Ajox, Pickering, Bowmonville, Brooklin, Port Perry, Prince "Albert, Maple Grove, Hampton, Frenchman's Bay, Liverpool, Taunton, Tyrone, Dunbarton, Enniskilien, Orono, Leskard, Brougham, Burketon, Claremont, Columbus, Greenwood, Kinsale, Raglan, Blackstock, Monchester, Pontypool ond Newcastle, not over 45c per week. By mail (in Province of Ontario) outside carriers delivery areas 12.00 per year. Other Provinces. and Commonwealth Gountries 15.00, USA. and foreign 24.00. spent by Canadian firms for adver- tising in the so-called "Canadian editions" of U.S. magazines not be deductible for tax purposes as a business expense. It was a reason- able proposal, because the "Canadian editions" have largely been "split runs"; the American magazine finishes its press run for a big US. circulation, replaces one or two pages with material slanted to Can- ada, and that is the "Canadian edi- tion" -- a very cheap product, be- cause almost all the cost has already been covered by the American edi- tion. It is a dumping process, and Canadian-produced magazines can- not compete on a cost basis. The O'Leary Commission found that two magazines alone had cornered 40 per cent of the funds spent by Canadian advertisers in magazines. And these two, Read- er's Digest and Time, are- not affected by the government's cur- rent proposal, because they are printed in Canada, even though their editorial content is largely paid for and processed in the Ynited States. Last year the gov- ernment proposed to act along the lines suggested by the O'Leary Commission, but was interrupted by an election. Now it has produced a much weaker scheme. -- so weak, indeed, that it is not worth the bother. -: RUSSIAN COSMENAUT ForovicH SAYS HE HAS INVITED Some CUBANS "To FLY THROUGH THE Cosmos'-- hare int, NOT SUCH A BAD IDEA, AT THAT WHAT OTHERS ARE SAYING Tragedy If Unity Dream Wrecked By French Move Hamilton Spectator: The startling news out of Europe is the bitterly ironical develop- ment of France tightening a union with her ancient foe, Germany, as some kiad of third power, while rejecting her friend and ally of the last two world wars. It is the more dis- turbing because the United States, having almost violently, and for all time, rejected her historical isolationism, had pressed for Britain's entry into the Common Market for a wider Atlantic community. That trend could not only be a great force in itself but an example to a world that has found sur- tender of national sovereigaty the most obstinate hurdle on the road toa more peaceful era. It is almost impossible to' be- lieve that the Common Market ideal is dead which, in its broad sense, it would be if Britain is kept outside. Strangely now, on our ears fall the words of France's Jean Monnet, found- er of the Common Market, and the most consistent sponsor of its ideals. He looked far ahead. "When America and Europe," he said, "have made it clear to everyone that the West is chang- ing by its own will from within but caanot be changed by out- side pressure, that it is consoli- dating its unity on a long-term basis, then the conditions will be created for a lasting peaceful settlement between East and West. It would be a tragedy if de Gaulle triumphed over the ideal of his countryman who launch- ed such a marvellous campaign for a more hopeful world out- look. The tension of the mo- ment can only bring smiles. to the enemies of the Western dem- ocratic ideal. Financial Post: When the Minister of Finance proposed a production tax incentive in last April's budget, there was a good deal of hope that the move would encourage an increase in output and exports. But this hopefulness has since turned to disenchantment. Note this comment, for ex- ample, from a widely respected .- chartered accountant in the tax field, Writing in the journal of the Society of Industrial and Cost Accountants of Canada, F. Gerald Townsend says: "What presumably started out as a simple proposal to give re- ductions to companies increas- ing sales, has ended up as a mass of Jegalistic rules which will most certainly result in in- equities and misunderstand- ings." Townsend further points out TODAY IN HISTORY By THE CANADIAN PRESS Feb. 2, 1963... The Dutch incorporated New Amsterdam now New York--310 years ago today--in 1653. The Dutch had possessed the island of Manhattan, on which New Amsterdam stood, since 1626 when Peter Minuit, di- rector of Dutch colonies in America, bought the entire island from the Indians for $24 worth of beads and rib- bons. Today Manhattan is the most costly piece of land in the world. 1908 -- One-time world heavyweight boxing cham- pion John L. Sullivan died. 1848.-- Mexico ceded Texas, Arizona and Califor- nia to the United States. that the tax reductions avail- able are relatively insignificant (only $11,275 on a sales increase of $1 million, according to one example in official comment on the Bill). It's unlikely that many companies will take any dynamic steps to increase sales to get such a very slight reduc- tion in over-all taxes. Biggest increase in activity will more likely come not in production and sales, but in use of sharp pencils and in legal footwork -- to find ways of in- creasing the tax credit, This misdirection of talent and ener- gy is, unfortunately, the usual development spawned by foggy or complicated tax laws. Canada urgently needs new tax incentives designed to spur industrial growth and to re- ward the hard working. But; there are grave doubts now that 'the present complex. sales "'in- centive" will do either. The intention may have been in the right direction, but inten- tion alone is not good enough. What's needed is a simple, forceful tax incentive that will give a boost to production and employment and not just pre- tend to do this job. Kitchener Record: In the log jam of more pressing bus'ness facing Canada's Parliament, it isn't likely there will be any Present action on a suggestion made this week by the Fisheries Council that this nation adopt a 12-mile limit for coastal waters. But it is something which should be noted for future ac- tion. The present three-mile limit was the product of a Brit- ish-U.S. agreement late in the 18th century. It represents the range of coastal defence cannon of that era. Based on coastal defence weapon range, even emplaced cannon, it would be logical to set today's limit at 30 miles. But this would be just as impractical a standard of measurement as the 1790 - vintage cast - iron weapon yardstick. Canada's fishing grounds need some protective law. The 12- mile limit has been applied by nations as small as Iceland. We should have little hesitation in following that lead. London Times: Every year in the United Kingdom about 300 "young eyes'"' are lost as result of injuries caused by arrows, airguns, catapults, and _fire- works, and an additional 60 to 70 young people are partially blinded. This is an estimate put for- ward by the author of a report in the Lancet, based on an an- alysis of 610 patients, aged one to 16, admitted to the Wolver- hampton and Midland Counties Eye Infirmary during the 10 years up to December 1960. In the opinion of the author of the report, "too many injuries were due to lack of parental supervision'. In addition to in- creased parental supervision, it is recommended that "bows and arrows, airguns, and catapults should not be sold to children any more than fireworks or knives. If sold at all they should be sold only to responsible adults with printed instructions emphasizing their dangers. "The proper place for airguns (or pistols) and bows and arrows," it is pointed out, "is a range. Here young and adult alike can learn the rudiments of gun lore and archery without danger to themselves or others," and the suggestion is put for- ward that "there may be room in existing clubs for sections de- voted to juniors." QUEEN'S PARK Tough Reporting At Liberal Rally By DON O'HEARN TORONTO--Some of the worst reporting this newspaperman has ever seen came out of the Liberal policy rally, And this time, at least, the reporters don't get much blame. The rally was one of those im- possible things to cover. instance, was reviewed in com- mittee for more than six hours. And most of the other com- mittees that didn't meet this long went at least four hours. MEMBERS' PAY Members here are casting a hopeful eye at Ottawa. There is a move to increase the ind ities of the federal In addition to plenary there were 13 separate commit- tees mecting. All of them were making news. And the "working papers" alone swamped the men trying to write a coherent report of the two-day session. Thus when one reporter wrote that the Grits would pay 50 per cent of the cost of the Toronto subway, you had to sympathize with him rather than criticize him. At present the province pays up to 50 per cent of the cost of municipal roads. And the patty's stand was that munici- palities should be able to devote a part of this to public trans- poration if they desired. Even when another reporter wrote that the convention had "pubber-stamped" the . resolu- tions you went along with him, realizing he didn't really have a chance to know any better. Actually the various resolu- tions were given more work and study than this observer has seen at any previous political convention. The proposal on medicare, for members. If it goes through we can ex- pect an increase here. And it is needed. Our members here now get $7,000 a year ($5,000 indemnity, $2,000 expenses). This compares to $10,000 at Ottawa. If an_ out-of-town member does his job conscientiously he will show a sharp loss at the end of the year--or have lived on bread and milk. The member here who lives at a Toronto hotel for three months, takes care of the chari- ties in his riding, probably shep- herds a few delegations to town and takes care of the other po- litical necessities, doesn't have much left out of $7,000 to pro- vide for his regular living ex- penses. And his outside income is se- verely curtailed by his attend- ance at the legislature. However Ottawa members spend a lot more time on their jobs, and we won't put through an increase here until they act. Otherwise the pay might be too close, and would look bad. UNITED KINGDOM OPINION Preservation Of Unity Labor Party's Concern By M. McINTYRE. HOOD Special London (Eng.) Correspondent For The Oshawa Times LONDON -- Regardless of whether George Brown or Har- old Wilson is elected the new leader of the British Labor party to succeed the late Hugh Gaitskell-, the one great objec- tive of the party's members of parliament is to maintain the spirit and reality of the unity which Mr. Gaitskell was able to achieve in the last year of his life. At the moment of writ- ing, the list of nominations is still open, but it seems a cer- tainty that there will be only two candidates on the ballot, Mr. Brown and Mr. Wilson. The expectation that either of these two men will be chosen as leader is seen in an informal but binding pact which they have made with each other after a long discussion. In it they express their determina- tion that the preservation of the party's unity, in the face of a coming general election, must be given first priority. So they have agreed, in the first place, that neither will engage in per- sonal canvassing for the votes of their fellow Labor MPs, PLEDGE OF LOYALTY Other points on which Mr, Brown and Mr. Wilson have made a solemn pledge are: (1) In the event of either be- ing elected, the other will pledge his absolute loyalty and support. (2) The same assurance will apply should a "third man" be successful. (3) Above all, both the ap- pearance and the semblance of unity must be maintained, so that the party can face the electorate as a viable alterna- tive government, Meanwhile, the other possibil- ities for nomination are fading out of the picture, Sir Frank Soskice, and Patrick Gordon- Walker have made it known that they are not interested and would prefer a two-man fight. James Callaghan has said nothing as yet, but he, too, senses that the great majority of the Labor members would prefer a s'raight vote between the two leading contestants. Although at this stage, so soon after Mr. Gaitskell's death, leading Conservatives are not inclined to speculate openly on their party's election chances with a new Labor lead- er opposing them, one can sense what their feeling is. The general opinion, with the party ranks> so far as it can be as- certained, is that the govern- ment will stand a much better chance of winning the general election against a Labor party led by either Mr. Brown or Mr. Wilson 'han it would have had against Mr. Gaitskell. Some Conservative MP's are also convinced that the Labor party will be easier to beat under one of these men than BY-GONE DAYS 40 YEARS AGO Mrs. G, Conant Myers was chosen by the County Council as their representative on the Oshawa Board of Education. J. H. McNab spoke on The Immortal Memory of Robert Burns at an anniversary ban- quet held by the local Scots in honor of their poet. Oshawa was faced with the acute situation of lack of school accommodation. The question of building a technical school in conjunction : with the High School was being considered. Fred C. Palmer tendered his resignation to the Oshawa Board of Health as sanitary inspector and assistant board secretary. Lionel Conacher and Herb Patchell, both of Toronto, were scheduled for a boxing bout in an opening tournament, under the auspices of the Oshawa Amateur Athletic Association. F. L. Fowke chose Education as the subject of his address at a meeting of Centre Street Home and School Club, in the school where he received his early education. The Oshawa Railway' Com- pany took into consideration the making of extensive alterations to the town station, car barns, freight sheds and other build- ings connected with them. ; Edward Henry was elected Grand Comptor at a conference of Tuxis Boys and leaders held in Port Hope. A. T. Hicks, manager of the Hydro Electric Power Commis- sion, Oshawa branch, was elect. ed president of the Association of Municipal Electric Utilities of Ontario. Statistics showed that Osh- awa's population had increased 289 per cent from 1901 to 1922, being an increase from 4391 in 1901 to 12,700 in 1922. Tom King was elected presi. dent and Walter Howarth secre. tary at the annual meeting of the Oshawa Football Club. A. E, Lovell was elected pres- ident of the Oshawa Board of Trade, while J. A, McGibbon and C. N. Henry were re-elected secretary and treasurer respec- tively. under one of these men shrewdly enough, they are not making known publicly their views on this point, To name the man they would prefer to see elected leader, from their own A produce the wrong result as they see it. ELECTION PROSPECTS Recent statements made by Prime Minister Macmillan are giving rise to speculation that the general election might be. called earlier than had been . Speaking at Liver- pool, he claimed that un- employment could be traced to uncertainty about the outcome of the next general election. This is the second occasion in re- cent weeks that he had made an assertion of this kind. At Liverpool, however, he was more specific when he said: "Let us. not be mealy-mouth- ed. When the only alternative governmen: is a party wedded to widespread nationalization, high taxation and inflationary policies the prospect of an election is bound to cause hesi- tation. Nor do people find the possibility of a minority govern- ment, with the Liberals hold- ing the balance of power, er the balance of impotence, any more attractive." This is the sort of talk which usually means then an election is in the offing, since it smacks of sheer election propaganda, and observers are now ponder- what might lie behind the prime minister's statements. AT CAMBRIDGE f Ian Binnie, 23-year-old Cana- dian, has become p! of the Cambridge Union, and has lined up an impressive list of speakers for its season's bates. His major political bate will discuss the independent nuclear deterrent, with Denis Healey, MP, de fending the motion that the de- terrent is neither British nor bs: the a of bg = independent. Oppos: lighter side will be a debate on the topic 'This house would fiddle while Oxbridge burns," with Canadian Bernard Braden and Osbert Lancaster on oppos- ing sides. Other speakers : ing the term will include Erskine Childers, Lord Altrin- cham, Dungle Foot and Roy Thomson. READERS' VIEWS Dear Sir: The alleged interference of the Americans in Canadian af. fairs, through the U.S. State Department's criticism of Can. ada's shillyshallying on the question of nuclear weapons, is not interference at all but a salutary reminder that Canada cannot go on indefinitely dodg- ing its international obligations. If Canada did not want nu- clear weapons, the time to say so was when the acquisition of Bomarcs and interceptor air- craft was being discussed. Can. ada could then have stated, with honor, that its role was to be one suited to conventional weapons. This is what Norway did,. and no one has d FREEDOM OF CHOICE Dear Sir: Your story on Board criticizes Press Stories is of great inter- est to many people, because it shows we need more freedom of the press to tell all the facts of both sides of every story to the people. Ratepayers are told they may examine school rd books upon request, that they are al- ways open to the public. T feel a complete itemized ac. count of the spending of the taxpayers' money printed in the local newspapers would serve both the school board and the taxpayer, and by this method the trustees would soon know if fhe school board honestly earns the confid of the rate Norway of bad faith. But hav- ing agreed to the Bomarcs and the interceptor program, which is useless without nuclear war- heads to be carried by the mis- siles and aircraft, Canada must either accept the weapons or be guilty of bad faith. The only possible alternative is to abrogate the Norad and NATO agreements, take the de. featist road of neutrality and stand condemned for lack of courage and conviction before the whole free world. It is as simple as that. The statement of the U.S. State Department was only a necessary reminder. of these facts. FOR HONESTY Oshawa NUCLEAR VIEW Dear Sir: Attention, Mr. Pearson: Tonight at one o'clock, I'm going over to the Jacksons' and set their house on fire. I already have a supply of kind- ling, matches, and coal oil cagh. ed nearby, There's an enclosed space under their back porch where the flames should get a nice start. A good wind is fore- cast. It isn't likely the Jacksons will ever make it downstairs, but, if they do, my pals, Butch and Bull, will be waiting at the door with their axes. Don't get us wrong -- Butch and Bull and I don't approve of fire and axes in general, but the Jacksons have different politics from us, and they haven't any religion at all. They just aren't the kind of citizens that. should be around, We're sorry in a way, but we can't quit now. We've promised each other. And so we are. HONORABLY COMMITTED Oshawa. POSTAL THANKS Dear Sir: Field reports concerning our recent Christmas operation show that Postmasters are con- sistent in their praise of the co- operation and assistance re- ceived from the communica- tions media-assistance which, I am sure, is closely related to the ever-improving Christmas service which we are able to provide for the public. The outstanding public service contribution of your community- minded organization has been specifically drawn to my atten- tion. Without this. help our cam- paign for early mailing and for the bundling and labelling of | cards would mot have been the success it was. Without the practical help resulting from these two campaigns, our work would have been immeasurably more difficult. On behalf of the Post Office and of the mailers who benefit- ed so greatly, please accept my thanks. Ottawa W. H. WILSON Deputy-Postmaster General payers. Freedom of democracy is not being carried out to the benefit of all people living in Canada and I know this to be true, be- cause I am fighting with the help of several Whitby citizens to try and regain our freedom of choice. A government which throws caution aside and gives permis- sion to municipalities to allow a council to put the poison drug sodium fluoride in our public waters, or gives permission to electors to vote and add this drug to the public water supply of the people who do not want, and do not need it, this govern ment which takes away our. freedom of rights to choose for our children and for ourselves needs to look up our freedom of rights and make new legislation guaranteeing to purify the pub- lic waters with chlorine only, and to keep the public water supplies free from all other chemicals and drugs. Keep printing the truth of both sides to every story for the peo- ple of Canada. It is morally and ethically wrong to deprive the people of pure water, It is wrong to continue to con- taminate our lake waters with fluoride which goes back into our lakes from sewerage .. . About % of 1 per cent of all water used im the cities and towns is used for drinking. This makes a waste of 99% per cent of fluoride. This is expensive isn't it? Parents can have pills, drops, children's teeth painted, all by -- of choice. Whitby REPORT PRAISED Dear Sir: The Round-Up of the United Church AOTS Men's Clubs of Oshawa Presbytery on Jan. 19 was reported very well in, the Times amd the executive re. quested that I send you our thanks. In the speech by thé Crossroads Africa Student, Johr Isbister, he made statements that if taken out o f context and reported could have sounded at least unkind. We wish to thank the young lady who attended our Round-Up and reported on it for you for her judicious choice of quotations from the talks pre- sented. WARREN BEATTY Secretary-treasurer Oshawa District UCAOTSMC Oshawa CARPET COMPANY 282 King wa 728-9581 BROADLOOM, DRAPES, TILE, PAINT AND. WALLPAPER 135 SIMCOE ST. NORTH @ RESIDENT PARTNERS " Gordon W. Richt, G:-A., R.1.A, Burt R. Weters, ©.A. Gordon W. CA. RA. Robert W Monteith, Monteith, Rich! & Co. Chartered Accountants @ TELEPHONE: { PARTNERS: Hon. J. W. Monteith, F.C.A., M.P. A. Brock Monteith, B. Comm. CA, George E. Tretheway, C.A. Burt R. Waters, CA. OSHAWA, ONTARIO Oshawa-Bowmanv 728-7527 id Ajox 942-0890 Whitby 668-4131