MAXIMS ' MAXIMS. - or A 1' or A. MERE MAN , p ' MERE MAN: --.- ' if - V - ' , . I l K ---””i'-' W" "'-"""'4"'”" "" , 0 . A . , A Readtwtveryhcdy .. ...l.”i..':'."7...l”i.'.'.i i.:..-:::

.7 ' Covers Prince Edwii? Island I.ik'e'the Dev? gjimg,-um ','::-,,:",,.,".','- CHARLOTTETOWN. CANADA, T DAY. SEPTEMBER, 7, 1950 16 PAGES --"'33:;-,:",,,'-,3-,4 :0-,,,-;i-.33,-3

ll

UITAWA. Sam. 0 - (GP) - canadlans will be told tomorrow hcw much Federal taxes -will be boosted to help meet increased de- fence costs.

At 0 RM. l.D.T. F'nanee Min- lster Abbott will present a "baby budget" to the Commons and out- line the tax changes proposed to mu-r defence expenditures, at a record-breaking high for a peace- ume year.

iitr. Abbott made it clear yester-

Coming Events

"Mail your Films to Glrnhum Photo Studio. Charlottetown.

"Reserve September 14th, Chicken Supper in Me shfleld Hall.

"Provincial Plowing and Horse Show, September 27th and 28th.

"Dance, Iona Best School. Pri- iay. September 8th.

"show. Moreil. every Tuesday. Friday, Saturday. Show starts &30 o'clock.

"Dance at Gordon Dodge every Friday night. Dancing from 9 till 1 liluslc by Western Ramblers.

"Reserve Monday, October 0th. United Church Thanksgiving Sup- per. Victoria Hall.

"Regular Dance. East Royalty Rink Hall. Friday. Bus leaving Bus Terminal 9.30 and 10.00.

"91""? Sale at B. A's.. Sutur- ..V- 9”'i!.': ' - PM 7-v'i3l'l..d." Fhe order of the rip '

"Dance. Sir Andrew's School. Wednesdav. September 13th. Re- freshments. Good music.

Jcake Sale at Moore & McLeod. Saturday afternoon. September 9th. at 2.30. Sponsored by West Covehcaci Y. P. U.

"Regular Dance in. Holy blame Hall at st. Peter's Bay. Prlday. Sciltember ath. Chalsson's Orch- estra. Door prizes.

"Well Baby Centre will be held

in the Town Building. souris. on

gllday. September 0th. Hours from 0 .

4"Sand.v's Theatre Under the stars-shows every Wednesday and Friday nights. Car service, sandwiches and soft drinks.

, "Hear Father llugene Murray scture on his trip to Rome. in Lot 15 Hall. Tuesday. September 12th. it li.lii P. M. Also other specialties.

"Have car Old Sydney Coal (Princess) to arrive soon. Order low. for prompt delivery. Ruuell Dnscoii. Mt. Herbert.

"A meeting of those intarseted in staging a Ploughing Match will behold in rownal Hall. Friday. September ath, s P. M.

ffNew Glasgow tonight at 8.46. ;”i0.V 3 seed laugh by seeing Jo- mlirown in "Wide -Open Paces"

0 'Donald Duck" color cartoon.

I "Bis attraction. Bud Athott and B-gu Costello in "Meet the Killer mils Karloff". root-th Rustloo l-lI'l.

div and saturiiay at no r. M.

P"A meeting of shareholders of '1. E. I. Plowing Match and A ric- itural Fair Association wil we held in hall, an nday. Seiiteinber 11th. at a p.

a

ll.

"Unloadinl car bulk wheat at at Wlrehouse Water Street West. mmmerside. Thursday. Saptunbar

hand. Also buying feed 1-. Morris. xlnkora.

"aoxlnsl New mas. lawn, Th reds hm a.so".....”& ""'

, d. llgls i .- - - allsfdyam sin

n hafnplon P.l.l. ill ii- and

roacasrwiih arm-

Scheduled

day that he is not going to allow

defence expenditures to run him

into the red during the current

fiscal year. ending March 81. 106:. No Deficit Planned

'1 think I can properly say at this time that am not planning a budget deficit for this year. despite the large increase in defence ex- penditures."

1-le made that statement in pre- senting an 08.50.000.000 appropria- tion bill to the Commons to cover .4 m , . . .. I” and arms-aid to Europe. But his statement was not interpreted as meaning that the Government planned through new taxes to raise enough revenue this year to meet the total appropriation.

Possibly not more than 8200.000.- 000 or t300.000.000 will be spent in the remainder of this fiscal year. The rest will be spread over the next couple of years.

This could mean that the tax in- creases wlll not be extensive or large. at least for the moment.

Income Tax Unchanged

some observers believe that per- sonal income tax will remain un- changed. Others predict that they will be increased as from next Jan. 1. There is a general belief that there will be increases in taxes on corporations and on luxuries. such as automobiles.

some of the taxes are expected to be more of an anti-infiatioaiary than of I. revenue-producing char- acter.

Mr. Abbott in his budget speech March 20 last estimated he would end this fiscal year with a surplus of 020,000,000. At that time he es-

,vgt"e2. . .,.

tnut reports from) the Treasury Board have indicated that reven- ues have been. greater than antic- ipated. In the first seven months of the fiscal year the surplus total- led more than 000,000,000.

Some. but probably not all of that amount. will be needed to cover bills that are paid only toward the end of the year. The remainder could be applied against the new defence expenditures along with the additional revenue from in- creased taxes.

OTTAWA. Sept. 6 --(GP) -The nature and scope of Canadas mil- itary obligations both under the United Nations charter and the Atlantic Pact now are esnerslnu. External Affairs Minister Pearson told the commons today.

To date. he said. Canada's oo- llgations do not go beyond a pal- itical charter. She has no specific military commitments. But meet- ing: this month of the U. N. Gen- eral Assembly and the Pact': Council of Foreign Ministers might well spell out war obligations.

In the first instance, Canada hoped to see her own example in fonmlng a special army brigade for U N. service copied by other countries to give U. N. its first

Dy laymen: Topping

SAIGON. Indoivhlnl. Sellt. 0- (AP)-Thia pivotal Southesat A-sla county is the softest point alone the Western PGFIMWP 1" another Russian thrust similar to that in Korea.

There is danger that the tram- lin through the flatness. commun- ists may try to exploit the rebell- ioa in tndo-china to open a sec- ond international. but

localised. con- flict in Asia. The objective of such a

more would be Oocununist control of mdc-Uhina which, in effect, would ushinge the whole defence for louthaast Asia. A min- bog down ixthae Wbstaerl military strength without diractlr iavvlvina Russian

forces. . no political groundwork for such an offensive may have been

'OUhlIIlml

oumimiaiu-us vutmina occupation of

1-ran , 'iisnrmmmua

pshefpafstbls guru OH nsuhiihd

timated, revenues at 52.430.000.000 - - "' onooco--

lirging Speedup in Coiislruciion A Of Ch lawn Bldg.

OTTAWA. Sept. 6--(Speclal)- Co-incident with the discussion in the Commons today of the new defence appropriation bill to meet Can-Ida's expanded defence pro- gram and the Korean situation, the Trea-WW Board has instructed de- Plflmenis of the Federal Govern- ment to cut expenses sharply. It has 3150 D1-iced I ban on new civil projects for the duration of the current national emergency clustd by Iuresslon in Korea.

This ban. The Guardian learned l9diY. will not apply to construc- tion and building projects already begun or those for which money has been voted by Parliament. on this account. both J. Lester Doug. las. Liberal member for Queen's and his Progressive Conservative colleague, W. Chester S. McLure. aresaiisfled that the new Federal building at Charlottetown will not be delayed by reason of the pres- ent lnte-rnatlonal emergency.

At the some time. apprehensive that "things may get worse before they get better" in Korea, Mr. Douglas and Mr. McLure today both urged the Minister of Public Works and his top officials to do their utmost to speed the long- pledged building.

Mr. Douglas today was in con- ference with Works Department officials on the subject of how contracts for the new structure are to be let, including contract for the demolition of such bulld- ings as have already passed from their former owners into hands of the Government.

The Liberal member for Queen's discussed with Federal architects and engineers the relative merits of a single general contract for .the...uih0JA...bullil,i'nx I051 .ae'DIrate. contracts for specific construction work. Both types of contract are used by the Department and both are operative on new Government buildings b-ing erected in the Ot- tawa area at the present time.

Mr. MeLu-re as well as Mr. Douglas, has an appointment with Works Minister Four-niier to dis- cuss features of the new Char- lottetown Federal building. as sug- gested, by constituents whose ierest the new structure

will

SGYVB.

House Continues Debate On Defence Position

1-----jtj; military strength to combat ag. grcsslon.

in the second. he and other rbr. eign Ministers of the 12 Pact pow- ers would consider plans drawn up to write into military terms the political obligation to treat an attack on one as an attack or. all Committees had been considering plans so that each member would know what it would do.

Both Mr. Pearson and Trade Minister Howe made it clear that. in war. Canada's activities would embrace the dispatch overseas of both men and materials.

Barrage or Questions Their statements came in reply

to a barrage of Progressive con-

(Continued on Page 15 col, 4)

See Indo-China Ripe For New Red Thrust At West

functions actively in large areas.

The Soviet diplomatic coup meant that the communist countries no longer recognised French admin- istration in Indo-china. Moscow and Peiping were thus prepared to argue that they are legally free to co-operate on any basis with the Ho Chi Minh regime.

It seems improbable that Chinese Ocnxnunist intervention in Indo- china would produce the some un- animity of counteraction by the united Nations as in the case of Korea or an invasion of nearly da- fsnceloss nunna. Certainly. there would be hesitation among the As-

laid Iran when the Soviet bloc rscogniud the at-controlled resistance and

,gsrnaisntinViotmsahsadsdlu i -cousins 'tti

LAKE SUCC&S. N.lf..rSept. 6 --(AP) .- Russia tonight vetoed a United States proposal calling upon all countries to refrain from aiding the North Koreans and to use their influence to prevent the war from spreading.

The action took place in the United Nations Security Council after five weeks of bitter wrang- ling over the issue. The veto was Russia's 44th. it does not affect the previous U. N. decisions to repel the Korean Communists by force.

The Council rejected a Soviet resolution calling for the with- idrawal of all U. N. forces from Korea. Only Russia voted for the proposal. Egypt and Yugoslavia abstained. ,

The Council earlier had wit- ncssed these developments:

1. Konstantin E. Zinchenko. assistant secretary-general. at the request of Soviet delegate Jakob A. Mallk read a note acknowledging that a Soviet bomber had been shot down off Korea and charging that the action was unjustified. The note said the plane was . on a training mission.

2. Nationalist China's T. F. Tsiang charged that two Chinese Communist divisions are fighting with the North Koreans.

,No other delegate took formal notice of Tslang's statement. but a spokesman for the U. S. delega- tion said the United States had no confirmation of the charges. Both Gen. Douglas MacArthur and Alti- tin had reported earlier, however.

the they were seriously concerned by

unusual activity along the Man- churian-Nortb Korean border. '

Austin said that the Korean ag- gression question is certain to come up in the General Assembly -which r.r,ie.at.s,5.snt. ll-,,-... .

The vo'te"cn tlie'7li.'-3. 1-fbbru-' tlon was 9 to 1 with Yugoslavia abstaining.

The U. S. and Russian proposals had been before the Council for five weeks but had been caught up in the bitter: procedural blockade imposed by .Mallk dur- ing his month as Council pres-

. resolution was de- signed primarily as an appeal to Russia to call off the North Kor- eans and end the war. It call- ed specifically for efforts to pre- vent the war from spreading. It also condemned North Korea for defying the U.N.'s ders.

The Soviet proposal was offer-

er received any support except from Malik himself.

Quebec Bandits Gel 324.000

BINBROOKE. 0nt.. Sept. 0 - (GP) -- cash and bonds valued at between 324,000 and 028,000 were stolen today by two armed. masked bandits who blew open the vault of a bank here after forcing an elderly businessman to open his private safe in his home adjoining

the bank.

The gunmen. armed with two sawed-off rifles, ordered imple- ment dealer George Beer from his bedroom to open his safe down- stairs. They left him tied with ripped-up bedsheets before blowing the vault of the Bank of Com- mares.

Beer, who is more than 00, lay helpless for six hours before he was able to crawl to a window and attract the attention of a neigh- bar.

The bandits escaped with 810.000 in negotiable bonds from -Beer's safe and at least 014,000 in cash from the bank.

mnbrooke is 11 miles south of Hamilton.

Beer was not harmed.

Bermuda Aleried for New Storm

HAMILTON. Bermuda. Sept. 6-- (OP)--'11iis holiday island, paasivi by one thraaioglla hurricane dur-

igug goimtnag, ing the week heard of an-

.:.w.r.:r m ge.::,-::.- .::.i-,, in we W. '."”"'........."ii""....t:."i'.i.i..

F ",2 ad has damage to Antigua. hm wsrd ds. a few days ago was 300 miles southwest of Bsntnuda.

-Planes-froin the United states base at xindiey Plaid flew over

"W the hurricane ans minim winds

at the centre at in miles an hour. Ally nsrincda wasislsttad to pre- gars for tliutoau and planes-from a base were lulu evacuated.

, .

Russia Vetoes U. 8. Proposal Re Korea

cease-fire or- ,

ed as is counter-measure but nev- ,

lfsissia Charges Soviet fBomber Down By Euiadians To Learn Of A Tax Increases Today;

.Baby Budget

ARRESTED IN BURMA-Dr. Gordon S. Seagrave. 53. known throughout the world as "The Burma Surgeon," is under arrest in Rangoon on suspicion of aiding Karen rebels. U. S. embassy of-

Yanks

U. S. Considers incident One For . United Nations

By THOMAS P. WHITNEY MOSCOW, Sept. 6 - (AP) Russia claimed tonight that a Sov- iet bomber shot down in Korea Bay Monday was the victim of an un- provoked attack by 11 American fighter planes. It said three Rus- sian fliers lost their lives.

A soviet note to the United States Government broadcast by Moscow radio "said the Russian plane was on a training flight and canted "neither bombing nor tor- pedo armament." It did not say .the plane was unarmed. but said it. did not fire on the American planes or: even approach American war- ships, -

U. S. Ambassador Alan 6. Kirk declined at the Foreign Ministry to receive the note on grounds that the incident was a United Nations matter, the radio said, but the Russians later sent a. copy to the U. S. Embassy.

The note said the two-engined craft was shotidown in flames five miles south of Haiyang Island (Hal- Yun-Tao). The island lies about '15 miles north of the 38th parallel. 87 miles west of the riearest. Korean coast, and about mid-way between Korea and the soviet naval base of Port Arthur in Manchurla.

Warning of the possibly "serious consequences" of such incidents, the note demanded:

1. An investigation,

flcials viewed the arrest of Dr. Seagrave as "a serious matter."

Sees Increased llaw Fur Prices A

PRINCE ALBERT. Saslr-. Sept. 6-(GP)-Refusal of Unit- ed statea stevedores to handle shipments of Russian furs may create a strong demand 101' North Ame ican pelts, a Bask- atchewan o flclal said today.

Adam cook. manager of the Saskatchewan Fur-Marketlris service, said that a continued boycotting at the parts would likely result also in increased prices for raw fur: and higher price tags on fur coats i.n re- tail stores.

New York stevedores recent- ly refused to unload Russian- produced furs worth 37.000000.

...-........

Algerian Man Claims Age 120

PARIS. Sept. 8 - (Reuters)- Berejka Mokhtar, who joined the French army more than 100 Yen" ago, today celebrated his 120th birthday.

Now blind and almost deaf. Berejka lives at Wadi El K-sour. near Harrouashla. MKeI'iR- H0 was 13 when he donned the dash-

short blue Jacket and baggy red trousers - in 1848.

He fought in the Crimean War. and helped defend Par-is against the Prussian: in 1871.

He went to Tonkin, Indo- Chlna. with -the victorious expedi- tionary force in 1383. and was the oldest soldier in the capture of Tananarive. Madagascar capital. in the 1895 campaign.

New Drug For

. Korean War Zone

LONDON. Sept. 6 -- (Reuters) -A new British-made drug claimed by its manufacturers to be an improvement on penicillin - is on its way to the Korean bat- tlla zone, it, was announced to-

ay. i The drug. named dlataquaine G and developed from penicillin re- search-by a Iritiali drug firm. is said to have "limitless medical possibilities and a high military value. 0

(The firm is Distillers Company liocheinieall of Liverpool.)

A comlginst on of niciilin with a local a I little nown as pro- calne, dis uses 0 is laid by its

makers to , .lessfpalnf'ul on in- jection C Illrdinnggabilclllln. Asinglrm iscll tohave a

greater l g effect 1

24-hour period than in”, his- iration of as. does" ,psni- siiiin every so or fear

flu

ing uniform of the Zouaves -i

(Continued on Page 5 Col. 17-

Successful Exhibition Held Yes,l9.ld.0.Y,

m...-

The fweniyxfourth Prince Couri- ty Exihibl-lion at 'Alberton was of- ficially opened yesterday afternoon by His Honor J. A. Bernard, Lieu- tenant Gov rnor of Prince Edward Island. in t e presence of one of the largest crowds ever amembled in the history of the fair.

Lt.-Governor Bernard was in- troduced by the new president of the Association, Mr. Lester Wal- lace. Governor Bernard paid a mbing tribute to the work of the former president, Mr. A. D. O- Brion, who through his zeal and energy had placed the exhibition on a sound substantial basis. His Honor said that the people of the district owe much to Mr. O'Brien and to his faith in the eventual success of the enterprise when the ou.-tlook was not so promising and for the manner in which the fair had been conducted at all times.

”Your fa-'.r," he said. "wihiich has done so much for the people of this district. has ever been regard- ed as one of the best in the Pro- Vince. It is educational. instruct- ive and helpful and therefore it is instrumental in bringing to your exhibitors advanced ideas in ag- ricultural and other pursuits. Without it I venture to say that there would be a void and a de- pression that would surely be re- flected in backward conditions in our midst.

"To you, the exhibitors, who are the backbone of this fair. I

FENDERS OF TAEGU DIG FOXHOLES IN IMPERILLED C TYS 0

:Red Tanks Push U. s.

Seven Miles

B! WELMAN MORIN

TOKYO. Sept. '1 - (Thursday) - (AP) - Defenders of irnperllled Taegu dug foxholes in the city to- day while swarms of United Nu- tions planes attacked Korean Oom- munist mountain positions within sight of that keystone supply base.

The planes, which shot up near- ly 40 tanks Wednesday. went after Reds who had pushed the U.S. lst Cavalry Division back two miles on the north to within seven miles of Taegu.

Disregnrdlng soaring losses in men and armor. the Reds exploded new power drives today toward Taegu and at the southern end of the battle perimeter.

But the Reds were taking a beat- ing in the Changnyong sector. 23 miles southwest of Taegu. There U. S. marines and 2nd Division iii- funtrymen, who have killed or wounded an estimated 7,300 Retis in a week. pushed I. large force of Communists back to the banks of the rain-swollen Naktong River.

Don Huth. Associated Press cor- respondent, reported that marines and infantrymen seized two dom- inating heights in fighting so close that rifles were used as clubs. Am- erican casualties also were reported heavy. ,

The Americans were eating up a Communist bridgehead which a week ago extended east of the Nak- tong for Sta miles.

Moving in fresh reinforcements Wednesday night. the Communists attacked in force this morning against the U.S. 25th Division near the south coast. The attack. which achieved a slight penetration in its sarly stages. was made at the con- fluence of the Nam and Naktong Rivers, more than 35 miles -west of the lifeline port of Pusan.