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

Weather Report Cloudy with few light snow- flurries or showers of light rain today, clearing tonight. Low tonight, 30. High to- morrow, 42, Home Newspaper' ' 'Of Oshawa, Whitby, Bowman. ville, Ajax Pickering and neighboring centres in Ont- ario and Durham Counties. ay FORTY-EIGHT PAGES 10¢ Single 5Oe Per Week Home VOL. 95 -- NO, 61 4, OSHAWA, ONTARIO, WEDNESDAY, MARCH 30, 1966 livered USACE sia NAAN WALTER GORDON'S CUT LASTED LESS THAN ONE YEAR MANY LOSE LAST YEAR'S 10 PC TAX GRANT OTTAWA (CP)--Finance Min- ister Sharp Tuesday night snatched away from many Ca- nadians the 10-per-cent personal income tax cut granted last year by his predecessor, Walter Gordon. The cut lasted less than a year --from July 1, 1965, to June 1, 1966, or 11 months. Mr. Sharp in his Commons budget speech didn't cancel the reduction, however, for those in the lowest income brackets, In fact, for them, he made it big- ger. The result is that from June 1 those of 1964. Taxpayers in the lowest brackets will pay slightly less than they do now. The finance minister accom- plished all this by doubling the reduction as of June 1 to 20 per cent from 10--and by throwing in a hooker. The hooker is that the maxi- mum deduction allowed is only $20. In Mr. Gordon's budget last April, the maximum was set at a he income tax rates for 1966 will be a meld of Mr. Gordon's 10-per-cent cut to a $600 limit for five months of the year and Here's how it works: Take a married taxpayer earning $3;500 a year with two children eligible for family al- lowances. If Mr. Sharp made no changes, this taxpayer in 1966 would have paid a 'net federal income tax of $58. He now will pay $53 be- cause he will get the full benefit of the 20-per-cent reduction--for the last seven months of the year. But the $20 maximum cut takes effect between annual in- comes of $4,000 and $5,000. A married taxpayer with two chil- Gordon's tax rate had remained unchanged. WILL PAY $554 A taxpayer with two children earning $7,500 a year will pay $554 instead of $519 and the one earning $10,000 will pay $987 in- stead of $916. How the blend of Mr. Gordon's and Mr. Sharp's rates will look on the next income tax form doesn't have to worry you yet. You don't need to fill it out until the January - April period of 1967. Mr. Sharp said however, he the trouble to which taxpayers maybe subject in preparing their returns." For single taxpayers with no dependents, Mr. Sharp's reduc- tion will be a benefit to those with incomes up to $2,500 a year. At $3,000 income, you start paying more. A married taxpayer with no dependents pays less up to $3,000, more at $4,000 and up. Mr. Sharp said his change will bring in additional revenue this year of $140,000,000 or $210,000,000 in a full year. The change, he said, 'is de- budget speech in the House of Commons Tuesday night. His 10,500 word budget FINANCE MINISTER Mitchell Sharp raises his glass after reading his first taxpayers in the average above-average tax brackets revert to rates slightly below speech was delivered in both French and English. --CP Wirephoto "JUDGE RAPS CROWN ATTORNEY Mistrial Halts Case For Denis Sharp OTTAWA. (CP).-- A mistrial,the Lucien Rivard affair begins abruptly halted court proceed-|afresh here next week. : Judge Frank Costello of Kitch- ings against Raymond Denis to-| - 2. declared the mistrial on the day and the legal aftermath of{31st day of hearings. Denis' $1,- 900 bail was continued. Judge Costello informed the jury of 10 men and two women that his reason for ending the trial related solely to Crown evi- dence about a $60,000 trust com- pany deposit slip given by Mont- id salesman Guy Masson. e was critical of Crown at- torney John Cassells and assist- ant Crown attorney Robert Vin- cent for several "improper" procedures, including efforts to "cross - examine" Mr. Masson. Although the charges against Denis come up at the ses- sions of the peace here nday, Judge Costello said he expects defence counsel Louis Assaly will have no difficulty in get- ting a postponement. A grand jury. returned a true bill against Denis on two counts but Judge Costello at the start) of the trial accepted a defence) motion for separate trials. | The court began hearing evi- dence Feb. 14 on the first--that Denis. corruptly offered a sum of money July 14, 1964, to rs ol real lawyer Pierre Lamontagne) oppawa (CP)--Finance Min- to have Mr. Lamontagne agree|ister Sharp said after present- to release on bail narcotics), A ing his budget Tuesday night his smuggler Lucien Rivard. tax changes were intertded to 'The second count of the indict:ihe a signal to all segments of ment charged 'that Denis at-lthe economy to exercise "mod- tempted to obstruct justice by| eration and reasonableness." trying to dissuade Mr. Lamon-| yr, Sharp said in a post- tagne from opposing bail for) budget briefing session that all Rivard, who now is serving a) he intended to do was '"'take out 20-year prison term in Atlanta,|the excess" spending capacity Ga. lin the economy, without putting At the time, Denis was execu- on the brakes too strongly. tive assistant to the federal im-| Mr. Sharp was asked how he migration minister. Mr, Lamon-| arrived at the figure of five per tagne was lawyer for the United|cent in his refundable tax on States government which was | corporation cash incomes over seeking to extradite Rivard for| $30,000, and why he hadn't used for trial in Texas on the dope|a higher figure. smuggling charges. He said his purpose was to Explains Budget 'US. Air Force Has Open Mind 2 sor cu'tcttpment, JUDGE COSTELLO WASHINGTON (AP) -- The U.S. AirForce said today it has an open mind about unidentified flying objects and makes no at- tempt to hush talk about flying saucers. A spokesman, asked about al- legations that the air force tries to squelch UFO reports, said: "In the first placé, we'd be utterly foolish to try to keep peo- ple from telling about something they've seen with their own eyes. Our job is to explain what is seen -- not 'necessarily to ehange anybody's mind." The air force has a special | public relations office which an- jswers thousands of letters a | year from inquisitive persons. | Last year it turned out 3,717 The count for January and Feb- ruary already has run over 800 requests for information of ex- | planations, and scores are being RAYMOND DENIS About Those Flying Objects {replies to letters about UFOS. | jgive a signal to the business jcommunity of government feel- jrather than to exercise more | | powerful restraints. | Speaking of the budget as a} + whole, the finance minister said| received in the wake of recent|his biggest problem was to pro-| Michigan sightings ;pose measures that constituted } i \"'a reasonable amount of re- | DON T SEE SPACE SHIPS | ctraint" and "a moderate| | Based on the bulk of its find-| amount of restraint." | | ings, the air force has decided that most people do not see in- terplanetary space ships but| STORIES ON | bright stars, balloons, satellites, | | comets, firebaiis, aircraft, mov-| jing clouds, vapor trails, mis- THE INSIDE |siles, reflections, mirage s,| searchlights, birds, kites, spuri-| For additional stories on ous radar indications, fireworks; Tuesday night's Federal bud- | or flares. : | get please turn to the follow- | The answers the air force has| ing inside pages 2, 3, 19, 29, {been able to turn up have led! 21, 26 and 27. lit to these conclusions: | Reaction stories from busi- | 1. No UFO has ever given any| "ess Jeaders and from mem- |indication of threat to U.S. na-| bers of the opposition in the | tional security, House of Commons will be 2. There is no evidence that} semee on. Daap. §) eeeuee | 6 4 , with the story on the new pied: repr eeeot technological! pudget's effect on charitable | evelopments or principles be-) oy ganizations. including yokd present day scientific churches i knowledge. "s GENERAL - SECRETARY TITLE RESTORED Russ Study Era Of Stalin and will a $20 maximum months. HIGHLIGHTS By THE CANADIAN PRESS Personal income tax in- creased by varied amounts on medium and upper income brackets, reduced slightly on low incomes, effective June 1. Changes add $140,000,000 to personal income tax revenues in 1966-67 fiseal year -- just over six per cent. Six of 10 taxpayers to pay more--up to 14 per cent on full-year basis. Charitable donations deduet- able from taxable income only where charitable organ- ization files annual returns with government, effective Jan. 1, 1967. "Don't do it now" meas- ures encourage business to postpone capital outlays, stretch out economic boom. Special refundable tax of five per cent on corporation cash profits above $30,000, payable for 18 months begin- ning May 1. Sales tax on _ production equipment and machinery drops to six per cent from 11 at April 1 next year and is eliminated April 1, 1968. No changes in 11-per-cent sales tax on building materials. Salee.tow of 11 sor -cent ree moved immediately on pro- duction machinery and tools used for shaping and mould- ing materials. Federal departments to postpone 10 per cent of con- struction program intended for 1966-67 fiscal year. Non - resident withholding tax of 15 per cent withdrawn on interest payments by all levels of government on bonds issued after April 15. Capital cost tax allowances reduced for next 18 months on most building and ma- chinery items. FBI Nabs 40 - Draft - Dodge Mr. Sharp's 20-per-cent cut up to for dren earning $5,000 wil! pay $205 net federal tax instead of the $199 he would have if Mr. seven ernment's hopes the provinces will con- tinue to follow the federal gov- lead to "minimize signed to reduce moderately the rate of increase of consumer expenditures." HHT mr nugsanat TAXES TO RISE FOR SIX IN TEN 'Brake Boom Sharp's Goal in the Commons at Ottawa. Mr. Monteith called it a pro- crastination budget. (CP Wirephoto) J. WALDO MONTEITH, Conservative financial cri- tic comments on the federal government 1966-67 budget brought down Tuesday night Full Enforcement Is Proposed In Imprisonment For Life BROCKVILLE, Ont. (CP) --,leased in six or seven years for Arthur Maloney, prominent Tor-| good behavior. ony criminal lawyer, said Tues-| He said his committee is. not day night that if the death pen-|sympathetic towards murder- alty is abolished in Canada the 'ers. life imprisonment penalty| 'We do not have sympathy should be enforced fully. for any person who goes out and Mr. Maloney, president of the|T@pes a child and commits mur- a j ders," he said. 'But we do Society for Abolition of Capital think a life sentence would ena- Punishment in Canada, told a|pje scientists.to study the mur- Brockville service club meeting|derer and come up with an an- that prisoners convicted of capi-/swer regarding the reason for tal murder should not be re-!such a murder to occur." MOSCOW (Reuters)--The So- viet Communist party confirmed today that a new look at the Sta- lin era is under way, and moved to bring back the title of gen- eral secretary used by the Rus- sian dictator at the height of his power, The surprise proposal to re- store the general secretaryship for the first time in 32 years was made by a high Commu- nist official at the party's na- tional congress. Y The idea was thought certain to be accepted. Leonid Brezhnev, 59, now the party's first secretary, seemed certain also to become the first post-Stalin general secretary, a change bound to enhance his personal stature. While exact significance of the move was unclear, marty ob- servers said it was bound to re- kindle memories of Joseph Sta- lin. But they recalled the title was first sanctioned by Vladimir Le- . nin, founder of the Soviet Un- ion, and said the change may just be an attempt to restore the party's Leninist image. Tuesday Brezhney announced plans to change the name of the party's ruling body from presi- dium back to politburo, another term used by Lenin and Stalin. Confirmation that the party is re-evaluating the 29 years of Stalin's rule came from Nikolai Yegorychevy, Moscow city leader, who proposed restora- tion of the 'general secretary- ship. Yegorychev told 5,000 dele- gates on the second day of the Kremlin congress they must fight against attempts to smear the Communist party. He de- nounced what he called fashion- able attempts to look for signs of Stalinism in the country's life. His statement followed persis- tent reports that the party was planning to tone down the slash- ing indictment of Stalin made by former premier Khrushchev 10 years ago. Yegorychev appeared to be rejecting Khrushchev'sthesis that Stalin's rule was dominated by purges and repressions, thus hindering Russia's progress. But he still pledged there will be "no return to the past.' His remarks were reported by Tass, the official Soviet news agency. Western correspondents have not been admitted to the congress. Brezhnev's speech Tuesday, which took four hours to read, indicated little change in Rus- sia's foreign policies. He called for talks with the Chinese Communist leaders, who are boycotting the conference, lashed out at, United States ac- tion in Viet Nam and proclaimed Russia's continued support for peaceful co-existence. 'Scheme Seen | NEW. YORK (AP) agents arrestel almost 40 men in swift daybreak raids today in | She New York metropolitan area jand in Cleveland and charged them with participating in draft dodging schemes. More arrests pvere expected in the schemes,+ federal officials said. By mid - morning, agents had jarrested 33 men in New York and five in Cleveland. An official said some of the men paid up to $5,000 for false | statements about an individual's | military status. The scheme had taken in up to $80,000 since 1963, officials said. In Cleveland, officials said a | national guardsman handled pa- | per work for phoney enlistments FBI COMPUTER MAGIC Arlene Gotkin, 19, and $3 last year to Operation Neal Bitran, 23, both of New Match for a computer's se- York, agree with the com- lection of people who would puter that said they would be compatible dates and be a compatible couple and turned up on each other's in an engineers battalion in sub- 'urban Garfield Heights. » plan to be married next lists. eh September, They each paid --AP Wirephoto might in a budget he said is de- OTTAWA (CP)--Finance Min- ister Sharp raised the personal income tax levy on six out. of 10 Canadian taxpayers Tuesday signed to brake, but not break, the sizzling economic boom, He also imposed a refundable tax of five per cent on corpora tion cash profits over $30,000 and offered a host of benefits to business firms that put off capital investments and thus help to stretch total income tax. For example, a married man with two children who earns $4,000 a year will pay $97 in federal income tax this year in- stead of $100. But the other 60 per cent face increases that will just about wipe out the tax cut introduced last July 1 by former finance minister Walter Gordon. TAKE EFFECT JUNE 1 The new income taxes take effect June 1 and will add $140,- 000,000--or about six per cent-- to what would have been raised on the former rates in the fiscal year starting April 1. Mr. Sharp, 54, who took over the finance portfolio three months ago following Mr. Gor- don's resignation, told a press conference following his Com- mons Budget speech thai luis aim is to place "a moderate amount of restraint' on the economic expansion and curb inflationary pressures. But he added that he will not hesitate to introduce a "'baby budget" later in the year if the boom, now entering an unprece- dented sixth year, shows symp- toms of becoming bust. The personal income tax route in order to protect the provincial share paid via fed- eral tax forms. Mr, Sharp left the basic rate unchanged from what it was 'be- fore Mr. Gordon introduced a cut equal to 10 per cent a year. | He withdrew that cut and madg- Gordon provided a maximum annual reduction of $600 for any one taxpayer, Mr. Sharp set a $20 ceiling. The net effect was to reduce payments by low-in- come groups only. Among the incentives for bus- inesses to put off capital out- lays were these: The tax on corporate cash profits, taking effect May 1 and continuing for 18 months, This tax will be frozen in a separate budget account and paid back, at interest of five per cent, within three years. --A cut in the sales tax on production equipment and machinery to six per cent from 11 at April 1 next year. It will disappear entirely April 1, 1968. --Reduction in capital cost tax allowances on most build- ing and machinery items, ef- fective immediately and for the next 18 months. Mr. Sharp said these steps are intended to encourage a de- lay in industry's investment plans this year. He estimated it would postpone about $330,- 000,000 in spending on buildings and equipment. No changes were proposed, however, in the 11 per cent sales tax on building materials, Continued On Page 2 change followed a complicated LEAD STORY congressman's charges that with anyone they want,"' the NEWS HIGHLIGHTS US. Embassy Denies Charges SAIGON (AP) -- The U.S. embassy today denied a it misinforms and misguides visiting congressional delegations on the situation in Viet Nam. Asked to comment on the complaints of Representa- tive Richard L. Ottinger (Dem. N.Y.), an embassy spokes- man said that naturally visitors are kept from areas where they might be in danger from Viet Cong activity but they are taken to many trouble spots and are free to see what they want. "They can go where they want to go and talk spokesman said. ALAMO LS Police Seek East End "'Molester Bowmanville Tax Rate Increase TO Ann Landers--14 City News--13 Classified--28, 29, 30, 31 Comics--34 Editorial--4 Financial--33 Binoy tl --e _..In THE TIMES today... 'ae, 13 d--P. 5 Obits--17 Sports--10, 11, 12 Theatre--20 Whitby News--5, 6, 7 Women's---14, 15, 16 Weather--2 it 20 per cent. But where Mr. ~*