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W. Prince Edward Island like Ihe Dew ‘ WJ- blalw

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Not over 7c single copy- Member Audit Bureau of Circulation- PAGE 4 TUESDAY. FE-BRUARY 25. 1964

“An Amazing Authority"

It is surely reasonable t.o expect that a loophole which favors the tax collector will be plugged with the same despatch as one which favors the tax dodger. Parliament is re- eponsible for seeing that such loop- holes do not exist in the one case any more than in the other. It is to be hoped that the publicity given to a recent estate tax case in Char- lottetown, in which the full amount of a married couple's joint bank account was found taxable at the death of the husband. will bring about a reappraisal of this particu- lar piece of legislation.

.In this case the chairman of the Tax Appeal Board. Mr. Cecil L. Snyder, was obliged to rule reluct- an-tly that the terms of the Estate Tax Act of 1959 enabled the Rev- enue Department to include the whole amount of the couple's joint bank account in the taxable estate.

In commenting on the chair- man’s statement as reported in The Guardian of February 4, the Tor- onto Globe and Mail notes that the fact that Mr. Snyder felt compelled to take issue with Parliament on what he called “an amazing author- ity" given to the department by the act. indicates that the act con- tains I serious flaw. It notes. also. the board chairman's remark that. to many. the case might have the appearance of being an arbitrary ex- propriation of the life savings of an elderly couple.

The Toronto paper also quotes the Canadian Bankers‘ Association. in its submission to the Royal Com- mission on Taxation. as saying that it seemed unjust that so little cog- nizance was taken of the part that the wife played in making possible the accumulation of what was. in fact. a family estate.

The bankers commented: "In many cases, especially where there are children. the husband's death

will mean .1 severe curtailment of the family's standard of living and it is contended that their mutual savings should not. at the time of the husband's death. be taxed to the point. of adding to the widow's already difficult circumstances".

Our Toronto contemporary ar- gues that the succession duty has never been a soundly based tax and that the Charlottetown case is just one more reason for revising its arbitrary provisions. Unfortunate- ly. there is little hope that even if Parliament acts promptly in this instance. its ruling will be made retroactive.

The Fall Guy

Under the above heading. I commentator in the Toronto Tele- gram notes how easy and political- ly fashionable at Ottawa it is to criticize Ontario Premier Robarts for his stand over the Canada Pen- eion Plan. while softpedalling the much less co-operative attitude which the Quebec Premier has taken in the matter.

For the best part of I year now. the Conservative Premier has had to face angry accusations that he. 1I out to “scuttle" the federal plan. ltlllt he's in league with private in- enrance companies and that he's being completely unreasonable about. the whole business. All this bemuae he keeps insisting that the pen- sion plim proposed by the Pearson administration contains I number of {flows which should. Ind can, be ruioved before It's coming into force.

Ottawa has never rightly explain- ed\vhyQuIbecaanborroutwtthout e 'u'uuuI.ur--Iilliholllll t_l||l‘°'l ‘

“'q..i

wldeb held suspicion that it's be- cause Prime Minister Pearson needs the political support of Prem- ier Jean Lesage. So it’s Premier Robarts that has to be cast in the role of “fall guy".

But it. was Premier Lesage-— wasn't. it '.’—-who insisted, at the last federal-provincial conference, that convtributions for the federal scheme be doubled to bring it into line with the premiums that will have to be paid by Quebec residents for the province's nwn pension scheme. Un- less this was done, he said. Quebec would not agree to a constitutional amendment which would allow the federal scheme to include coverage for widows. orphans and depend- ents. Ottawa promptly bowed to this pressure and said widows and dependents would not be covered.

Premier Robarts wants the federal plan to include these people —but in Ottawa eyes it is he, and not Premier Lesage. who is the villain. And, of course. his back- ground-—a corporation lawyer from London. the home of insurance com- panies-—-is ideal grist for the Liberal propaganda mill. When he ex- presses concern over what will happen to the millions of dollars already invested in private insur- ance schemes. it's easy to say he’s working hand in glove with the insurance companies.

But as suggested in these col- umns yesterday. it won't be so easy to frame any adequate federal plan without Ontario's co-operation. The “fall guy" idea won't help. except as an alibi for failure to obtain such co-operation. And a pretty.’ sorry one it will be. in view of the hopes held out in the platform on which Mr. Pearson and his colleagues were elected to power.

Audit Office Handicapped

In his current report to Parlia- merit. Auditor General Maxwell Henderson reviews more than 50 cases where pointed questions could be asked about government proced- ure. Most dramatic was the in- crease in costs of the Montreal In- ternational Airport from $11,000,000 to $30,591,000, due to an attempt to speed completion by starting con- struction before planning was com- pleted.

While other incidents involved smaller amounts of money. thev added up to a formidable total and indicated that public servants are not always as meticulous in the handling of public funds as they should be.

What is more disturbing. how. ever, is the Auditor General's com- plaint in the introduction to his report that he has been unable. due to insufficient staff, to do his job as thoroughly as he wants to and as he is charged by Act of Parlia- men-t to do. He says that a. short- age of staff limited the scope of his work for this report and still hinders it during the current fis- cal year.

Why, with the spate of officials at Ottawa, should this particular department be shorthanded? The Public Accounts Committee has had this problem u n d e r examination since 1960 and has recommended that appropriate steps be taken to authorize the Auditor General to recruit and manage his own staff. As no action had been taken by the Government to implement the recommendation. in whole or in part. by the time the reconstituted committee opened its 1963 meetings on November 8. the committee ask- ed the Auditor General and the chairman of the Civil Service Com- mission to “explore the problem further and report back to the com- mittee.” This was done. on Nov. 22. with some modifications in the orig- inal proposal.

Mr. Henderson expresses the hope that. following implementa- tion of this arrangernent. the Audit Office will be in 3 position to im- prove the scope of its work with respect to the fiscal year 1964-66. In the meantime. however. his department will remain handicap- ped. and the public interest will Inf- fer In consequence.

EDITORIAL NOTE

The Dominion Bureau of Static- tics reports that in 1963 deaths caused by traffic accidents in Can- ada rose to I record high of 4.200. This. notes In exchange, is more than all of the people lost in all of the air. rail and Great Lakes disaster: In Canada’a history.

As fringe benefits have in- creasingly formed a portion of the remuneration of workers. in place of straight cash. the tax- gatiherer has increasingly been losing out.. rernments have levied taxes of 15 or 20 per cent on cash incnmc. and that has proved easy to co".lecl. Bu‘.

ow can 8 government collect 15 or 20 per cent on the fringe benefits of a staf

company cal?

To simplify the problems of employers and employees. and to try to boost his take without raising cax levels. I-Ion. Jack Garland. Minister of National Revenue. has issued an informa- tion bulletin dealing with em- ployees‘ liringe benefits. This ilsts the most common types such benefl -. and explains whether or not their estimated cash value should be included

f canteen or .- casual week-end enjoyment of I i

In the calculation of the em- l ployee's Income. 4 UNTAXED BENEFITS : some employee benefits are ‘ exempt from taxation, so their value does not ave in be in- cluded in an employees income for taxation assessment. These include the following: 1. Discounts on merchandise

5 which are commonly a".lowed to

in retail stores when ver.

1 given to an employee and his

vehicles

change made is nominal.

4. Distin-ot.i\'e uniform-.s or protective clothing supplied for employees to wear while

wnr .

5. Tuition fees for lal training or study cniirses de- signed to improve the em-

PUB-LIC

FORUM

CAR INSURANCE Sir.— Please allow me space interesting column to wholeheartily agree with the writer from Eastern Kings on car insurance. Feb. 22 issue.

Why should we truckmen pay

to eight hundred on a tractor trailer for the privilege of meet- ing in a cuttiing a car with no Insurance. when the driver, nine- teen years or over (with a good

re

$100,000 for a premium as low as $65.

Let us see

s can do on

terof protection for everyone

what our elected

without the embarrassment of: cancelled license due to finan-,

cial difficulties. 1 am. Sir. elr . R A ROSE

Lakeville. P E I.

LIQUOR AND TOURISTS S1'r.—Just. another word re- garding the petition of certain restaurant keepers to sell liq- uor. Theiiir specious plea is the ' In amendtle

s to an uncertain percentage of summer visitors who want liq- uor. Should not equal consider- ation be had for that other un- certain percentage of visitors

for whom the absence liquor-

at is a principal at- traction to our province?

access to liquor would create for the sake of

wishes of an uncertain number of summer visitors? We seem to have about as many summer visitors as we can entertain. Why jeopardize our present at- tractlons?

I am. Sir. etc.

REV. RH. BAXTER West .

SEEKS PEN FRIENDS

Sir.-— I would very much like I pen friend in your port. 0 Canada. I am 30 years old and married nine years. I work as telephonlst for a large oil com- pany Ind my the Immigration Department. We live, In a Sydney suburb right next to the ocean. but were brought up in I counry town 400 miles to the north.

We are both Interested In the scoul movement. having help- ed run Cub Packs for I2 years. We are also interested In travel and In 1953 did I 216 years work- ing trip to Europe working in Iaoiidoii and visiting the contin- ent wfienever time and money permitted. We also like garden- ing and photography.

I would very grateful if you could help me by publishing my name. I guarantee to anew- er any letters.

am. Sir. etc, MRS. GWEN ARMSTRONG 4 Elizabeth Piece. Brookvele. N.8.W.. Auetxalla.

UNIVERSITY PROBLEM 8lr,— I was very much inter ested in I letter which appear- ed in your paper recently entit- led (“A University or P.E.I" The India‘. who am hlinull

l varsity. As such the teachers :1‘:-no ‘ player,‘ aummobim

phasis is laid on the doctrine 3 and teaching of the church. and cord) could protiect us up to ‘

this maL- I ‘ these? I hardly think so. It

.“Re&list". advocates the marz- lng of Prince of Wales College

and St. Dunstan‘s University in form a "University of ' Edward Island".

He puts forth a very plauslhle argument but there is point he avoids mentioning St. Dunstan's is a sectarian uni-

mainly clergymen. Great.

the whole atmosphere is sym- bolic of the Roman Cath ollc

' religion. If the merger IS achie- : ved. does that mean that

S l. Dunstan's will surrender any of

difficult to see how a merger of PWC and St. Dunstan's could be achieved that would be fair to students of other faiths

Much has been said in lh i ii column about broken promises. Last year large headlines in the

‘Island paper announced that.

steps would be taken at the sit- ting of the Legislature to ele- vate PWC to university status. Then. just one day before the closing of the House. an Incon- splcuous notice appeared. tuck- ed away in an inside page 0. the paper, announcing that for the present at least. no action would be t en. No valid reason was given.

"Realist" thinks one should use good judgment. and common sense in dealing with the prob

. Is it common sense to a - vacate I policy that will be un- acceptable to epproidmatel y one-half of the cum? We trust that at the present session our Premier and his honorable members will justify the trust that has been placed In them by raising PWC to university stat- us and thus give all students on P.E.I. equal educational op- portuoltles.

NO!‘ GOOD FOR CANADA

Sir,— A statement has been made recently to the dlfecl. that Queen Elizabeth II should not visit the City of Quebec when she comes to Charlottetown nexi October. In connection with lne Centennial celebration.

That is something unpreced- ented In the history of our rela- tionships with the M other C

Such I thug ll repulsive to

the mind of every true Canad-

ian. Canada ls made up of lo Ind thmdsoe

(I

W0 . . exp:-onions and actions of any one province. In the eyes of the world. fieflecta upon Canada Is I

whole. It is I Ierloua matter to thin

air. W D.

Montague. P.E.Il

canteens - unless th e ,

9 . of the employment.

one.

.5! 5. Holiday

"4-

cziéofioeiovi/N Musisu/vi BUILD NG gT_TAWA REFORM Patrick Nicholson Employees’ Fringe Benefits Listed

lployeefs usefulness to his em- I pic-yer

6. Free or subsidized school- _ ing for the children of employees

located in remote or unorganiz- ed areas.

. Transportation from pick- up points to the job site at which. for security or other rea- sons. private vehicles are not welcome or not pinactlcal.

8. Loans advanced by an em-

plo_\ner to his employee at low 1 interest rate or free of interest. i 9. Recroationa‘. faculties pro- vided free or at nomiinoal ohiarge y an emp yer; incidental board and lodging. as for ex- ample at. I summer hotel or ‘ hunting lodge maintained by the l employer. must. however be re- ! garded as a taxable benefit. A 10. Removal expenses of at l employee's family and 3' hold effects Int-ldeintal l ployment.

I l CLASSED AS moons l In ‘ ‘on to these non- taxalrle pi-ivi-lezes. there are certain common "fringe bene- fits" se . ’ ; value must bear tax. These in- ; elude: l 1. Board and lodging re- gulsiriy provided as I porquisite as in the . case nil‘ hotel employees and gdomestic and farm help. whe- ther tree or charged at below cost or fair market value. 2. Rent-free or low-rent hous- - lng provided by an employer. 3. Personal use of an em-

house- them-

l 4. Gifts in cash or ldnd. in- . eluding Christmas and wedding

gifts. except when these do not I exceed 31-’. in value or when the

employer does not clarlm hhelr I cost as an expense when coni- . putim; his own taxable income. trips. expense- ‘ paid vacations or similar prizes. 5 in cash or kind. awarded in an .’ employee for long or meritori- ous service.

The above general rulings apply only when there is I dir- ect eimployer-ernployee re.-l-af:ion-

holder or a relative of tfne

owner of the business.

Our Yesterdays

(From the Guardian Flieat

TWENTY » FIVE YEARS AGO (February 25. 1939)

el

uual meeting of the Royal Ed- ward Chapter. IODE held this afternoon in the Cba-per Room in the Royal Canadian Legion. Mrs. George D. DeBlols la hon- orary vilce- president willie Mlle: Blanche I-Iavlla was elected honorary regent.

South African War veterans were guests of the Charlottetown Branch of the Canadian Legion at I dinner It the Queen Hotel - this evening as the 39th anniver- ‘ ally of the Battle of Paar-deberg iwns celebrated. Eighteen Boer i War veterans answered the roll ca i.

TEN YEARS iFcbrDll'.V 23. 1954) Stewart Wright. senior field- man of the Provincial Depart- ‘ ment of Agriculture was elected lpresldent of the Dominion Pro- fvlncial Agricultural Conference . It the final session of the meet- ing held at Birch Court today.

The Potato Marketing Board has been advised by M. Rand B. Matheaon of the M I r ltlmee Transportation Coinmileaton that competitive freight rates on po- tatoes enjoyed by Island Illin- pen for the past few in I. will be continued until I 14th.

V1511‘ 3.0. PRIME

UITAWA (0Pi—Andi-e Lane- endeau and Davidson Di: mission on Dlllngiiallsus Blcuiturellcm. will visit inter Bennett In Victoria March 2. it was announced Thirlday. In I telegram received by tho. contnluloisere Wednesday he f.'lt1|dhh.e

capital.

lb VIII. VIICOIIVIT

Modifying The Humcin Cornea

by Dr. ‘Theodore It. VIII Dallel

Eye surgeon may be Ible to correct refractive e 1' re 1' I by g the curvature of the

modlfyln

or polishing machine. But don‘t to throw away

be in I hurry your specs II. to date. the me- t.hod has been uled only on em

male. The procedure was work-

ed out by Dr. Jose I. Barraquer of Bogota. Colombia, one of the world'I leading ophthalmolog- ists. '

The cornea is the transparent membrane covering the front part of the eye (pupil and iris). Dr. Barraquer dluects away the outer layer of the structure. quick- freezes the tissue then grinds Ind polishes the inside surface to the desired contour.

near and far slghtcdneas.

The Colombian ophthalmolo- gist has an alterate method in which I cornea II removed from I volunteer. shaped like I lens. and inserted behind the come: of the patient. These procedures sound fantastic and we wonder whether they will be practicable. The eyeball curva- ture tends to change over the years and it II much easier. to g with new lenses than to have a second or third grind- ing operation.

Nearsightedneu. uess. astigmatism.

farsighted- and

changes in near vision th I I come with the passing years (-presbryoplal are the most fre-

quent types of refractive er- rors. They are corrected easily with glasses. The myopic II nearsighted be- cause the rays of light converge front of the retina. This oc- curs when the eyeball is too long or the lens too convex in shape. As I result. the rays bend so sharply they converge In front of the retina. Farsight- edness is the opposite condition. as the rays locus behind the rat- lna. Appropriate lenses bring the rays to I focus on the retina. Most of us develop preabyopia after age 40. It is part of the ag- ing process and It becomes more and more difficult to read without holding the book farth- er and farther away. No other condition responds so readily to glasses. At first. specs may needed only for reading: they are removed when the person ks at someone across the table or in the distance. Bifoc- Ils or half-glasses are needed when this chore becomes I nui- Iance.

M.- S. writes: How long does '

it take to recover from bronchi- lisf‘ REPLY

An acute attack usually lasts seven to 10 days. Chronic bron- chitis may last I lifetime. Much depends upon the cause Ind the nature of the irritation in it it whether lung damage is irrep- arable or can

valved In mononucleosis? REPLY

Yes. in the majority of pa- tients. But special tests would be needed to demonstrate invol- vement. Now and then, hepatit- is severe enough to discolor the skin and the whites of the eyes (jaundice).