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TIM CANAflT&N STATIISMA.It OWMA1rVILLE. ONTARIO CLMTWO _______________ IM9 Dowmenfflie News, Th@ Newcastlo laleliendenttand Thse Orono News 93 VeuTout einon S ervic e i.The T.wn et no*manffleo ad Durham Couaty. Authorluol « second claieMail pont Office Departmneft, Ottawa. AINDEPENDENT NEWSPAPEÉ Nembor Audit Dureasu -è *et RMe:tio: < Canadisa < Weeklv NewmBiitU SUESCRIPTON RATES 83.50 a Tear, trlctly lnadavanee. $3.00 a Tear la the. United States - OZO. W. JAMES. Editor :Official Audiior s Report Critical 0f HousingProjeci W. E. Johnson, Toranto, the offiçial auditor for the Town of Bawmanville who was author- '$zed ta examine the records pertaining ta the Municipal Housing Projet has made his re- <prt. In order that the public may get a cern- .-,plete picture of the whole situation the report Is published in full in this issue of The States- .jman. It will be noted that the report is critical of several aspects of the contract let ta the Tor- ,1ýonto Construction Corp. and the manner in ,.which the work was carried out. The auditor ýjoints out that he had ta rely ta sorne extent on verbal "information and explanations" ta arrive jat bis conclusions. SIt wiil be seen that the original contract called for the erection af each unit at a cost af 1$3,737.50 and the final cost was $5,635.38 with ':ome interest charges still ta be added. With the j.selling price fixed at $4,000 per unit, the loss on eeach was therefore $1,897.88. The total deficit, kconsequent]y te be made good by the ratepay- Î',rs amounts ta $34,161.84, but there will- be a :ý1urther interest loss until the whoie matter has l been corsolidated and 'the difficulties af sale ~agreements have been ironed out. iý The chief increase is laid ta advanced costs r f labor and materials and changes made in the original specifications. These changes were 1 riticlzed as having been made on an oral basis rwvith no records kept. Failure ta complete the kontract on schedule was also noted as a factor :~creasing ultimate costs. Then again it was Womnd impossible to separate labor costs from !,bther contracts going forward at the sarne time. ;But in the main the labor costs an housin*g ap- opear reasonabie. SA more seriaus item is the assertion that it ~was found that the dealings between the spe- &cial council committee, the building inspector [and Toronto Construction Corp. were seldom W.-ade a matter of record and the auditor could ýDnly reiy upon the merneory of those involved. ýThis is a grave departure from business prin- kiples, particularly in vlew of the huge las., ïlainly roliing up. The public and the council sa whole were kept in the dark. eFinally the report states that the tender of Woronto Construction Corp. was made at a price ýiower than the contract could posslbly have been executed; that there was carelessness on the kart of ail parties connected with the housing ~roject. No proper repart was made an changes in design;ý no direct or constant supervision af fthe project was made, nor was there any evi- Sence on the part of the construction cornpany in eeeping costs ln lin. with original estimates or Sf inforrning the committee about rising costs. The entire criticismn plainly shows a failure àto apply business judgment in the first instance î nd deplorable carelessness ail during construc- ýion on the part of ail cancerned with the actu- ýlprogresai the project. The 1946 council 3which let the contract was seldorn cansulted as k whole. New members cf the 1947 council had kothing ta do with the arrangements and none .was on the small managin.g committee. And it is due te the insistence of the new members that crops. that helps the lumberman buy equip- ment and psy his men. Here are the dollars tliatenable the bank ta melce mare than 500 p ersonal loans every business day cf th* year to men and wornen who need rnoney ta meet eýiergen.-ies and take advantage ai apportuni- t es.le T'he statement is alzo brightened cansider- atly'..by the addition of littIe thumbnall sketches tiâroughout, and the use of simple, everyday lïoguage in place cf the mare formaI financial tetms usually found in bank reports. For ex- asiple, bank assets are referred toaua "Wbat the Bkof M Has ta Meet Utn Obligations," whle lia- biities are simply "What the B nf M Owes tn OCb crL." Likewise, the explanatory notes under e#ch sub-heading are clear and ta the point. Tgrn ta this advertlsement now, found an an- ottier page, and see for yourself the rnany ser- vlre,. rendered by a barik ta its more than a mi]- Hécri danadians, as revealed in ils annual repart. Several Towns Advocating Civic ManagerAppoiniment Factd with many prewar probierns arising frorn industrial expansion, demobilization, scar- city af materials and iabor, postponed services and public finance, many municipal corporations are now debatrng tht proposition af hiring bramas and experience for the transitional period. The job, generaly termed "City Manager" is net a new conception fer the scheme had a vogue particularly in Western Canada foilowing aver expansion in the boom period. It met with auccess in many cases and Municipal Acts were amended ta permit local counceils autliority ta ernploy a manager. But there bas been much opposition to the schemne. Essentiaily the job is ane af coordinating the whoie structure af municipal administra- tion just as a general manager is empioyed ta direct the aifairs of private industry. Bath theory and practice are completely sound. That is, a capable executive advocates a program for subrnission to a board oi directors. In municipal procedure the local council acts as the board ai dîrectors with compiete autberity over general policy. Tht ratepayers are the shareboiders in the latter case. In the case of public administration the press acts as liaison in stating the recemmnenda- tiens of tht civic manager, a fact cf sorne im- portance when tht council gets down te busi- ness in the matter. So as we say, it is not sur- prising that many towns, having experienced urnecessary financial loss in recent times, art considerîng tht employmet of high executive abiiity to advise thteiected representatives. Boards oi Trade generaily are reported in favor cf the plan. Exchanges reveal that this ques- tion is on the agenda for'nomination meetings at many points. It might be useful te have some discussion on tht matter at nominations te- morrow nigbt in the town hall. Premier Garson, Manitoba Proves Ability as Press Agent Under date of Nov. 14, 1947, Hon. Stuart Garson, Premier of Manitoba, writes tht editor a thrte-page letter settlng forth tht position ai Manitoba under its plan te retire its whole pro- vincial debt over a period of 35 ycars due to ac- ceptance of tht Dominion-Provincial Agree- ment effected separately from a generai confer- ence. Wt have since found among exchanges that this letter, whicb bas ail tht appearance of intimate correspondence, was circulated gen- erally te tht eastern press. Mr. Garson thus proves bis ability as bis. own press agent. Tht point he brings out is that taxpayers in the industrial east are misled in beiieving that dollars originating in Ontario will be drain- ed off under the Dominion Agreement to help liquidate tht Manitoba debt. Ht contends that collection oi federal sales taxes, excise taxes and succession duties in tht east, eriginate gerkerally in tht west and are collected from head offices ]ocated east oi tht great lakes. Hence Manitoba justly receives a portion of these taxes under Tht agreement, Another example is raîlway profits an trans- portation of ireîght originating in the west and accruing to head offices in the east. Further- moré a great proportion af corporation incarne taxes are collected fromn firms owned by ab- sentet sharehaiders. Sa as Mr. Garson peints auqt, under the agreement the Dominion is mere- ly restoring to Manitoba some of the dollar>s which ariginated in Manitoba. And under this new setup Manitoba is now able toecffect long- range plans te liquidate its debt. Mr. Garson quotes figures te make a con- vincîng case for Manitoba and tht Dominion's scheme cf forcing separate agreements. Un- fortunately many papers cannot fi d space at their own expense to prînt the letter in detail. The public will have in the points above mnen- tioned, sufficient to understand Manitoba's con- tention. Tht rural press bas to depend on the dollars originating in its community for tht service it renders and hence is restricted, un- fortunately, in using a great mass ai dttailed information sent in weekly as "fret readers" by niany astute press agents. Trade a N D l lTrgss ily wait for tht announcement oi the Gencral Agreement on Trade and Tarifis reached at the Geneva Conierence. But tht whole story will came out under lire w~hen parliament meets Dec. 5. Meantime we shahl begin to get accus- tomtd te a new austerity and a new trading set- up., In tht confusion we have seen a fiurry ai excitement over domestic vegetable prices ai- ter iarm su.pplies had passed out ai their con- trol. In other cases farmers will stili have ta speculate on haw they' will coeo ut uinder tht new trade arrangements. Tht tariff on Cana- dian wheat enterîng the U.S.A. bas been reductd frem 42e ta 21c per bushel, but little can be marketcd at higher U.S.A. prices while tht Bri- tish agreements rempin in effcct. While Chi- cage wheat touches $3.00 a bushel, tht bulk ai Canadian wheat goes ta Britain at $ 1.55 until Aug. 31, 1948. then rises ta $2.00. And while tht quota of beef cattie eligible wo enter the U.S.A. bas bceii alornst c'oubled, tLe Canadian gavernrncnt stili retains ils cm- bergo prevtnting a single head crossing the border. Roughly live iinished steers bring $35.00 a cwt. on U.S.A. markets and only $16.00 ln Canada. Hence the new policiez, wl-te atudied witb much interest by Canadian farmers. Sa in sarne respecte the crisis is net ended for a very important element in the realm ai Canadian pro- duction, narnely, Canadian agriculture. Give Generously Citizens To Chrisimas Seal Plan During tht war this country set up a record in giving unlimited iunds tao rganized appeals for the relief ai wartime sufiering and ta save livcs from tht disease and wounds occasioned by the struggle with tht enemy. It was spcn- taneous giving because tht reality ai the whole thing was right before us day by day. Press and radia place d tht vivid picture constantly before the entire nation. But we are stili dealing with an enemy on tht home front, tht encmy cf disease and suf- iering wich, unfortunateiy, seldom commands headlines, but outstrips war in the number ai lives taken. In tht battit witb tubercuiosis we have been siowiy making pregress. Fifty years ago 200 people out cf 100,000 died oi T.B. Now tht figure is down ta about 47 ai the 100,000. At present the annual drive for iunds for tht Canadian Tuberculosis Association is undcr way through tht sait ai Christmas Seals. It is sponsortd localiy by tht Lions Club. So as Christmas approaches let us aIl give generously as we have given before and rcnew tht front- lune iight against this dread disease. Let Christ- mas Seais hcad tht iist oi aur gifts at this season. The Reasons for- Higher Cost of Goods. and Higher Prices In their effort to browbeat Canada's gov- ernment into restoring price cantrol and sub- sidies, tht communists are arguing, in efiect, that costs can rise without prices going up. Be- i rg as smart as paint, even if as unscrupulous as Stalin, thc-y know better , They know that the seller's'ineçme is tht buyer's eutge. That cnt man s incarne is another man's expense. Tht first nuit ai baok-keeping (not capitalist or se- cialist book-keeping, but any boak-keeping) is that a credit creates a debit. The unions in which the communists art n'ost influential are among tht unions whose -leaders have been demanding contracts invelv- iltg more pay for less work. If there is ont, th-ing on which praiessional economists appean to agret, ft is that wages and ather payments for actual work dont (such as tht iarmer's incarne, for example) make up at least eighty-five per cent of the cast ai goods. If wage rates are up fiity -per cent since 1939 (and if and when tht farniers and such like get an equally good break) tht average costs are likely te be up tba-t ruch. Some are much higher that that. Some are nat s0 high.* Incarne f ram invested money is the ont portion, a minor partion, of the national in- carne wbicb is conspicuously lower (bath in per- centage and amount) than in 1939, Only 5.6 per cent ai tht national income in 1946 was classiiied as "'Investment Incarne."t Higher pay, shorter working heurs, higher costs oi materials used and higher taxes are the reasons for higher cost ai goods and bigbtr prices. TIME FOR DECISION NEW SERIES, ARTICLE 7 In a period when employment is-at a high level and people in general bave an accumulation afi base money in their pockets, few pay mucb attention te the question of whetber actu- ally they enjoy prosperity. But the rapid rise in the cost ai living wbicb is making great inroads on wartime savings is changing the public viewpoint. FARM OPINION These articles bave already sbown that Canadian farmers are becoming acutely aware that they have net been enjoying real prosperîty under the constantly changing gavernment pal- icies. Wbat tbey may have saved under wartime restrictions, if used for rehabilitation ai land and equipment, will be coin- pletely absorbed and farmers remain the only "saciaiized": body in the nation. GROWING RESENTMENT - The new trade and dollar policies naw announced by the government have increased the growing reseutment of Canadian Iarmers. Wbile the U.S.A. bas consented te Important down- ward revisions in tariffs and quotas, Canadian farmers are ici t in a peculiar position i respect ta two surplus farrn producta, wheat and live beef cattît. The position is anc that continues an uniair imposition. CLOSED WHEAT MARKET The U.S.A. has reduced tht duty on Canadian, wheat from 42e a bushel ta 21c a bushel which opens the U.S.A. market rang- ing around $3 per bushel. But Canadian wheat là eat-mirked under the British Agreements fer delivery at $1.55 until late next year before a maderate advance cames into effect. Sa this U.S.A. concession means very littie but is played up as a great boon. And the British cantract runs until 1950. CLOSED BEEF MARKET Ail ectîng an even greater number oi Canadian farinera waa the U.S.A. concession ta almost double the quota cf live beef cattie permitted entry te U.S.A. markets. The price at Chicago ranges about ý35 per cwt. compared wlth about $16 in Canada. But here again Canadian farmers are blocked off. The govern- ment at Ottawa retains its embargo and nQt a single âteer can b. shipped ta the U.S.A. FARMERS DEAR LOBS This anornalous and cynical situation deprivea the Can- adian fariner ai an expancled open market and the huge'loua oc- casianed must be borne by Caziadian farm' p1toducef, not the Canadian people as a whole. And at the sanetUnie Ottawa compiles and circulates statistici which aeek ta persuade farinera that tbey are enjaying "unprecedented prosperity." «To permit them U.S.A. markets would be toa much. BRACKEN POLICIES In contrait to these Ottawa policies, John )Bracken, leader cf the Progressive 'Conservative party, ha. eonaitèntly opposed the unfairnesa af the British Agreernenta ta Canadian fammers and bas repeatedly urged the rernovavi of the embargo on Canadian cattie entering the U.S.A. Farmers wiUl hav;e ta decide at the caming election wbether they shail elect Bracken or continue undcr the present Liberal regime. Hence this ioa:a'Tirne for Decisian. Grow More Feed Grain-Advice of Crop Improvemeni Ass'n. The province of Ontario will have te graw more ai its own feed graine in 1948 and for some years foilowlng if it hopes ta continue auccessful livestock production. This was the unaniznius decision of a group representlng ev- ery Caunty Crop Improvemetit Association In the province et a recent meeting. The objective set for 1948 la an increase of 50 million busheis cf feed grains over the. lest 10 year average. This is the figure adVocated prevlously by Honm T. L. Kennedy, Ontario Minister af Agriculture. The canierence wasted no tirne in discusa- ing the Dominion gavernment's removal of feed grain price ceilings that put Ontario farmner& rlght on the spot. It realized that a new situa- tion had ta be met and that direct action by Ontario fariners and the Ontario government was the only solution. Figures produced gave the total af freight assiated western% feed grains coming ta Ontario fram the west In 1947 amounted ta 57 million bushels. Hence an in- crease af 50 million bushels in 1948 would just about f111 the bill in saving bath millions cf dol- lars and the Ontario llvestock industry. The plan ai increased production suggested two main consideratians: The breaking up of a great acreage of land that bas gone out of pro- duction during the war, except marginal land and using every means cf getting greater yiclds per acre. Then grewers shouid follow the ac- cepted principle of crop rotation in the follow- !i yeara until Ontario agriculture returns ta an even keel. There will be many difficuities of eùursc due te shortage of labor and farm ma- cbinery but with the wartime experience ai greatly increased production, it is confidently believed the objective can be met. Since the lifting ai feed grain ceilings and the sharp upswing of prices on western feed grain, much damage has been done ta Ontarîo's livcstock industry. This is particulariy true cf hogs and ponitry. but the proposed advance in miik prices rnay hait the decline in dairy herds. Increased quotas for beefentering the U.S.A. mean little while the border remains closed. The only thing te do in the meantime is te stick te it and plan definitely along the lunes advocat- ed by the Crop Improvement Association and Ontario's Minister of Agriculture. The Planners Are in Trouble "Thi s is not a party matter, iii the sense that one party is right and the other wrong, and there are few, if any, sections of the public that can afford te point the finger' ai scerri. But since the Labour Party is in office, it is the fate of tht Labeur Party that is primarily at stake. Ministers and mhembers are beginning to realize ae they have often been warned here, that a storm is orewing that couid blow tbem eut ai the pages of political history. But sometbing more than the Labour Party is at stake. the fate ai an experiment te whicb many people who are not Socialists had attached their hopes, the effort ta assert man's contrai ai bis econornic environ- men t. For uniese. the pianners make haste te p]an for rcalisin, the blind forces of economic nature will take over-either because sometbing snabs and the people revoit against controls, or through the massive growth of black markets. It is the pianners' iast chance-From-The Ec- onomist, Lonidon, Engiand. TMUNDAY, NOV. 211h. 194? receive the grcatcst possible benefit adcom fort from your crtatc, your Will must embody airlan which works out well -and smoothly i practice. Estate planning is a matter to whkch this trust ropay as devoted special. thought and Consuit our officers and avail attention. yourself of their broad practical experience. .THE TORONTO- GENERALTRIJSTS CORPORATION Head Office; 23'3 Bay Street, Tororite E S TA T E S MA N A G IN G S1N C E 1 88 2 -E Tubercuiosis is ne respecter cf, persans. It strikes down nich and poar, humble and great. Yet ail may do their part ta combat this disease by buying Christmas Seals. Aget3VCIN <, An àO0006FRIENO LM£z Tm family doctor, Canada Life represefltftives get an intimate picture of the lives of scores of men, women and children in each comnlunity. Sometimes- sorrow and tragedy visit the homes they know. Often they sec happiness prevail, becauie families have planned for the years to corne. Because of broad experience, thorough traini ng and sympathetic under.standing of human probiems, the Canada Life representatives are weli equipped to study your individual requirements and to recommend the type* of financial protection best suited to yoiur needs. They are the type of people you will like to con. suit. You'I1l ind.them good citizens, good friends. CANADA LIFE' JAMES MARSHALLW, District Manager S. R. JAMES '4 i. t- Â'. - wé-W ýr-î4- sSyournearestC.G.E-offiS. r Ji Co CANADIAN GENERAL ELECTRIC LTD --------------- 1