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3. The setting up of a new governmental goal of combating present distressing slum and housing conditions by lifting the burden from real estate with sound economic policies. Predicta Third Surplus. increasing the revenue of this Prov. In the fourth Budget presentation Tce. that w.il1 compare W'th the since he assumed in 1934, the dual iIvestttye.r!.t 1n modern highways. role of Premier and Provincial The Middle Red, alone, from To- Treasurer. Mr. Hepburn yesterday .ro.nto to Hamilton will probably informed a crowded Legislature by": two million dollars trt trtMio- that not only had his new 83,000,000 line tax next year. .He.re we have surplus been achieved after passing exchanged our wealth m the form back to the people 81tr000,000 in of dollars for e.rtita1z-that is, wealth benefits. but that sound, sane. care- producing additional .wealth -and ful administration would insure for will undoubtedly enjoy 8 very the year ahead a third successive profitable return on our invest. surplus. of S2tW000-this. notwith. ment." In the fourth Budget presentation since he assumed in 1934, the dual role of Premier and Provincial Treasurer, Mr. Hepburn yesterday informed a crowded Legislature that not only had his new 83,000,000 surplus been achieved after passing back to the people 818,000,000 in benefits. but that sound. sane. care- ful administration would insure for the year ahead a third successive surplus, of 8288,000--this, notwith. standing the mounting obligations to which his Administration was committed. In ordinary revenue the Govern. ment collected 591845.752 for the year closing on March 31. Ordinary expenditure. exclusive of 89,T25,000 for unemployment relief and the administration thereof, which is again charged against ordinary ac- count. totalied 385107.050. For the year ahead, revenue collections (as forecast) will be $99,592,330. as against 399303.652 for expenditure. In actuality. the situation resulting falls Just a few hundred thousand dollars short of "the hundred mil. lion dollar Budget" so lustily con- demned recently by Opposition Leader Leopold Macaulay as a con. dition with and from which the public would sodner or later, he said. grow tired and demand re- ease. The gross debt of Ontario/during the past twelve months. the Prime Minister reported, has mounted by $25.221.519-althoutm the highways extension program. accountable for the increase, cost approximately 835,000,000. Roads Called Investment. "In expending 835,000,000 for this construction," Mr. Hepburn explain- ed to the House, "we have not burdened the Province. but rather we have put her in a favorable po- sition. In my considered opinion there is no investment that this great Province can make in ma- terial things that will yield the re- turns by way of attracting tourists. Py improving the living conditions of farmers. by increasing the value of their farms. and by improving transportation facilities. as well " BURDEN ON REAL' ESTATE TC) M LIFTED Expanded Agriculture Program Also Promised liy Hepburn as He Predicts Still Another Surplus in Coming Year - Municipal Subsidy fo Be Continued With No Further Taxation Flushed with the triumph of in 83,000,000 operating surplus for the current. fiscal year-the second outstanding surplus in a row-- Hon. Mitchell F. Hepburn announces: 1. The continuation of the one-mill subsidy to the munici- The text of Premier and Provincial Treasurer Hepburn's Budget speech In the Legislature yesterday is pnnted on Pages " and I9. Increase Planned In School Grants, Aid to Sanaforia palities: 2. A marked and expensive extension of activities in three of the main departments ot administration. Agriculture. Education and Health, without the imposition of a single cent of additional taxation; What of the future, to which the Prime Minister points with unflag- sing confidence and optimism? 'What about the tarmer-"the man on the back concessions?" How is I he to be looked after? The present l minimum requirement of three (standard farms per mile for rural Ipower delivery will be reduced to I two-tt move that will play a prom- i inent role, it is understood lin the 1,800 miles of primary lines l to be built in 1938 to accommodate l 12,900 additional customers. 3 Farm Aids Extended. T.BAree areas will be definitely extended. Through intensive re- search and experimental work in institutions and upon the farms losses from bangs' disease and parasitic ailments common to cattle, sheep and swine will be lessened. An Animal Nutrition Laboratory will be installed at the O.A.C., Guelph. Low-grade cheese produc- tion will be checked and improved through employment of competent instructors. The present better- seed-growing campaign will be ex- tended. Fruit and vegetable grow- ers will be aided in production and marketing by trained men located strategically across the Province. Establishment of a new branch of the Agricultural Department to as- sist co-operative movements is un- der consideration. And last, but by no means least. there will be undertaken an educational program to build up the quality of Canadian bacon to compete on the overseas market with the best that Denmark, for instance. can otter. March itil In the field of education (the Premier asserted) provision is be. ing made for the appropriation for public and separate school grants of $475,000 more than was paid dur- ing the current fiscal year. That meant, he said, that grants paid to the elementary schools of Ontario In 1938 would exceed by $1,000,000 those paid in 1936. Substantial in- creases in grants to high schools and collegiate institutes, and also to vocational schools, would also be authorized. A two-fold purpose was behind these increases, said Mr. Hepburn. "The first, that the bur- den of local taxation on real estate may be lightened; and the second, that the cost of education may be more equitably distributed by in- creasing the grants payable to those districts which, by reason of their small assessments, are least able to provide for the financial support of schools." Sanatoria Share Assumed. Assumption by the Province of the municipal share of the care of tuberculosis patients was one big item of a varied program which the Health Department, said the Pre. mier. was contributing "to the preservation and development of the human resources of the land." "No Government," he stressed. with the proper conception of its duty, considers for a moment that the sole business of government is to produce surpluses and to run on what might be termed a profit and loss basis. The duty of a govern- ment is to ensure that every child born within the State is assured of equality of opportunity and is en- couraged and helped to grow up to make the most of his or her lite, and to have the helpful influence upon the lives of all citizens who make up the organized society of which he or she is a member. This is my firm belief, and with this convic- tion as my guide. I intend to chart the course of this Administration." Slum conditions were admittedly bad. said the Prime Minister. "Hous- ing conditions, both in town and country are primarily the result of Bad economic policies," he added, "and I long for the day when it will be possible to lift the burden from real estate, so that it will be profitable for a man to own his own home, and for the man, with money to invest, to build homes, which may be rented at reasonable prices; also for those with surplus funds. to advance money on build- ing loans at low rates of interest. That, Mr. Speaker," he asserted amid applause, "is the sure road to ii' soiuti/n of the housing problem in this country." Spending to Offset Surplus. It might be asked. declared Mr. Hepburn, why, in the face of the fact that the Province had again balanced its budget, further as- sistance in the way of reduced taxation and "other blessings of good government" had not. been provided the people. In reply, said he, he would point out that the in- creased expenditures in agricul- ture, health and education would probably equal the budgeted 8288,- ooo surplus. - p D I "But apart from that entirely," he said, "we must recognize the fact that at this very time the Rowell Commission is investigating Dominion and Provincial relations with respect to taxation and as- sociated economic problems, and until such time as the findings of this Commission are made known to the respective jurisdictions and dealt with, it. is not deemed ex- pedient to break any new ground with regard lo the financial rela- tionships between the Province and the municipalities, although it is our considered judgment and firm intention that every assistance possible should be given our muni- ieipalities." -'riiti1rnirur to the road along which the Government climbed to its second successive surplus, it