’ MAXIMS

OIA

MERE MAN

“go is governed by laws

obedience to thele laws.

health and usefulness depend upon

Ind

Covers Prince Edward Island Like the Dew

MAXIMS

OIL

MERE MAN

The wlliolnstrlkousuhlll intoour inlntflhuolfdib rui.Ied1nt.holIIIltl.'

"’—-,,,,,.......;;‘:.::.;T;.:"...... ~ -_--.-.- -. - ---_--_ . _ _.._ _ _ - -um 0“-"“-' '°'-M '"'- Cl-IARLOTTETOWN. CANADA. WEDNESDAY, SEPTEMBER 13, 1939 8 PAGES t.:"i'.‘.'..5'.'.’.".'."'£‘°.':..‘3°"'...""....."*.‘.'. u . .....

,-

WAR TAXA TIONA BUDGET IS INTR

CDT/CED

l7Ol._AND :9 CAPITAL VAL iizi iiiviiiici *‘

B068 lIllIlN IN TIERCE BATTLE

Germans Intensify Pressure In Deter- mined Effort To

Swastika Marked Plane ls Sighted

BOSTON. Sept. 12 —(AP) — A mysterious plane, bearing markings contradictorlly describ- ed as I “Swastika" and a ‘‘Star.'' was reported today by on Am- erican boat as having circled low over a general area where in

Take Warsaw.

Bl'll.~\l’EST, Sept. 13— (\\'edncsday)—(A. P.) — An official Warsaw radio brondriist said early today nine German divisions had been diverted from the four- day Warsaw siege to the iI’estci'n European and Vis- iula fronts and that the Nazi invaders now are def- initelv “on the run."

I )( Sept. 13—(Wednes- dayi -—((‘l’)—A Reuters News lzi-iii-y dispatch quoting it "re- llahie source“ said today that illi‘, important city of Lodz had NPII rrrapirircd by the Poles.

This report said tliat the Pol- i\Il ar:n_v. which had been in iiiiiigrr of liclng cut off in the PM ill and Pomorze (Polish "n i'url regions has now con. ‘utrii the main body of Polish in s near Kuino and Lowlcz on i-st of Warsaw.

._.__.:_.______

\\':ii'.~:iw liegan the fifth day of siege with the an- nouncf-i"s statement that the lfl\.'l(l(3I‘S had been stop- lled and hurled back.

The official announce- ments said German pressure on the city probably had been decreased because of the iiiihdrawol of the div- isions, and that the Germans had I)(‘l’l'i driven back about six miles.

l‘lZll'lllll music hlared from

the \\'arsaw station la.-it night to tell Europe the il0L':1c!i defenders of P0-

iind‘_< capital clung to their I'lt‘il\'lI\' shelled positions. Cili .i:n Vaclac Ltpinski. Polish

'\ “ta” ~*1LN’l‘1‘. in a. broadcast de- c.a:':<:i inc German plan to run il'."»'\ll Warsaiv with tan-ks, and mo- iefj-“;]r<i troops "has definitely fail-

Gcrmans Mlscalculnled

The Captain said the Germans [High to reckon with Wnrsawks ‘“_i9j‘l " defenders.

mitt‘ will change ii mobile war We :'..l'.l(ll‘la.l'y warfare," he said. in in- nrciistonieti now to air raid: U(‘l‘nl8l'i bomzbs are badly Our cellars nrc safe. If the 1-. bring lZll"‘.‘T’l‘ forces here. . (lo likewise."

.- :7 : Q- "U 9. 5,. . 3' E =< 7 Z? 5. .

,._. at Lwow iLembcrg) in-

. §(h‘1‘I1iaii attack has intensified

‘ Warsaw, while the direct 7“? [mm the west continues.

W‘. \\.i::<avr's d-sifendcrs are hold- ;‘-:'V.r 'nlv to the gains they re- {_;IWi“:l in mashing German od- y:,|:m:‘mITC0l15 back from the city's F07.‘ Rcinfcrcements d-sicrmincd r‘u‘»hi0' 1*’-9 ill-E‘ll‘ cainital are being nu. .cr tn the defence through it 91;“ ’Win¢ lane from the south-

u:‘:fi|lIlll‘l‘ of the Warsaw radio -011 to continue news an- i_.

‘Continued ‘on1fl_§€“7.‘ ColV5)

Coming Events Me for Notigshol: in-is

3 Nntl per word. L

dn‘y‘Talkies--Murray River Thurs- L-785-9-12-21.

"'I‘al.kias—Eldon Friday. l.i- 85-9-12-2|.

W‘ of the giant inrt-cmckcri

over Georges Bank, 190 miles off this port, came from Cap- ‘lain Michael Shea of the Trawl- er Storm, which quoted one of

iicved the design to have been

1-England reached here simultaneously with the report. of the plane.

taxes reach into the kitchen of Canadia

hcrncs,

is all passed on to the consumer.

regular sales tax of eight. per cen To i-‘*9 housewife this will mean a addccl eight cents for every $1 wort

used.

.Tax t>!‘|izlnges lllt A Glance

A, se L. fiI$!)'1t:OrdAf|g’v'E ncwpwar budget tfixe

identified submarines off New almost

IWEARTTAX IN THEKITBHEN

orrnwn, "sent. -12-(CF)-New of the wartime budget will

Most apparent to the housewife will be the new lmpost on coffee and tea. which wi‘l raise the price by 10 cents a pound, or five cents for the I:unl half pound package if the tax

The sales tax was unchanged, but certain articles lost their sale; tax exemption and are now liable to the

of canned fish and sailed or smoked meats Household gas and electri- citv bills will swell by a straight eight per cent of the gas or current

12-lCP)_ I-fgelhel. made the splendid response which

‘MAN INS L

OTTAWA. septi. 12-(CP)-The man in the street faces a new array of war taxes which will affect his per-

tsonal budget, his business, his house-

t grin

;lr.a;1‘:; ‘lrvtlgd Ffmlguot Ilbllied‘; hold expenses and his spending

and seek" with New England’: .m°“ey-

fishing fleet. Luxuries such as “hard liquor" Word of the plane's flight will cost him about 35 cents more.

for a 26-ounce bottle and 50 cents more for :1 40—ounce bottle. His bcer may cost him several cents more for 303031 Quart bottle. and the excise

hi. i h had . sc;n”t.T'1't:.”(q:cr‘r-Tiasriaysrvlvgastilfa on on WI“e5 W1” be d°u‘bI‘«‘d- I {(5 wimm while another he. Smoking tobacco prices will be in- I

creased, but- almost impcrcc-ptablyfl,

a Star. as excise will be up only five cents The fourth report of the 3 pcund or about one_thjrd of ai activities of one or more un- gem an ,1 1o.cent pgckggg cigar-

ettes will cost. $1 9. l,000 more, or less than three cents on a 25-cent package.

A tax of two cents a pound on ' carbonated acid gas used to carbon- ate soft drinks will be negligible in the opinion of soft drink bottle-rs.

If a citizen is suibject to per-.ona.l income tax under existing exemp- tions, he will have to add in 2')-per- ‘ccnt surcharge on what he pays when he sends his cheque to the Government. I

Household bills will run a litiln. higher. since canned fish, salted and , smoked meats, and household T electricity and gas bills are now sub- n ject to an eight-per-Cent sales tax.

Coffee and tea will be taxed l0 cents a pound, or five cents on the usual half-pound package.

New Zealanders llally To Recruit Kin Special Force

h

LONDON. Sent. 12—iC'P)- The ministry of ll1f0l'ln3.L10n announced tonight that 2,110 men enlisted ml the special New Zcalariu l’llllil.hl‘§'I force today. lll(‘ lll>.i.‘ (lay of 1*:--‘ crumng for this contingent, winch will be used either 10 tietentl the dorniniorf or as an expeditionary force abroad.

This figure represented only on- lisiimcnts up to noon, it was added. , The force will consist of volunteers. enrolled for the duration of the war and one year after hostilities mase.I

“The men of New Zealand have

leverybody expected on the first day

5 ghmcgi ll t'l‘uesda ) that recruiting offices I A“ e')lCe‘sSll‘lt:‘;§ r(i)rr'1ntlZ:i°IdlSnotol)a:- Ionencd or the special military for- I Calm:-‘mt er)“ of go per cent of at ties.“ the miiiistry announced. I l 90 C 5 9 “Queues formed before the recruiting

excess L V 8” W .8 V hkhetiilllzsgrtifhuilatlcti scale l‘t‘-1181113 TN"

10 per cent fiLs in excess of five D91‘ Wm °“ capital used

Inzlivioual income taxes increa- r cent on

i the normal tax paid. beglnnlnil Wm‘

scd by a. siirtiix of 20 P9

I 1939 incomes. Corporation incomc tables

from 1'7 per cent to COll50ll(ll1.ix'(l returns.

‘ by $3 a proof gallon. i Beer taxes , about two cents on a quart bottle

Exicsc dutv cn ed by $1 r 1.000. , Exctsc utiy on tofico

by five con 5 per po H- Exclcp tax on all wlines doubled

from five cents to 10 cents a lJ0““‘I .

according to invoice PTA”-

Customs tariff on

- i over the avcralgg lpnmflézlswt; 2 starts were M their

to 60 per cent on pro-

... . . _ ov l -- i l‘.?IVllf“l‘l lC‘(’;ll(t),Vt:0r 1 Excise duty on spirits increased to an effect vc rate of cigarettes increas-

increased inrrcased i

coffcc increased lb)’ 10 cents a pound under all tax’-

Situaiion At A C-I8|1C€

LONDON-Prime Minister Chum meeting of British-’l-‘rench Supreme adier; will speak to Parliament WrdnesdIy-

PARIS-l"roneh motorized units If

Gcrmui army, drawing iron rink

porters. and by n noon today tliere ha been 1,300 en-

llstments ;n the south and 870 in Wellington. 4

“The complete returns for first, dav will not be available until; later in the week. that the number of men which runs into some

I I

raised ‘Will have been obtained within a:

few days, In the national military reserve. which was formed last Ma)‘ enrolments have risen since the war

broke out to 18000 and over " (Population of New Zcfilahd , 1-“

about 1.600.000 Dersons, incliidrrf:

80,000 natives I ‘

rrni:~r«‘ToW'r"EdT>TsTir Kym)

BLACKPOOL. England - (CT-’ —A firnman met an cniN'tz<‘YW.i/ T0‘ > whim he hail not iwr rm‘-iiedl ‘when he ci.coiintorc:i a 12-foot, python while cxtinrziiishiiig n lirc in an nrmwcmcnf booth. The ser- nent was czipfiired in a packinfi box.

(3, 1-1.. canadian Press)

I I berlain flies to Fmwc for 5°='°‘I War Council with Premier D-|-.

parka driving into suburb: of

around Wu-saw.

‘I __-:—j Dan , 0"‘ W11. Roll-es(limenltsBanl.‘l3§§Pg;f{';;L)§{ Bnrbrueoken, key to Slelffied “T”- 00 ji- i4iiPw°e' mm H“};.8;1.?_‘gff§_“,Y,; BERLIN--Claim .. ' pounds Poles on three fronts. muggcve mag?“ I-{dart-pvilla "saiooi . Ai‘l'llstr0lig,"K BUDAPI’-‘.S'l'—WIrsaw radio ll

""""“‘sdny. September 13th.

1.-rue-ii-13-ii.

A';ICnk.3 mlemam by Mum.‘ notice that Germany would not be permitted In H ' ~ 1’~ A. September 23rd. ‘ territory in new world. L-mm-13.“. ROME-—Brl an d Itall —— t

.;;.°."i..i:~:i..i.i:..°~".s:.i::iii;: ‘“ "‘ ”"‘~ - Bl.‘-we-9-12-ar.

“Dance Fat e In it ii-rid S°,[}“=mber l5tl'l. udurkesa orcnenlz.

l._'_m4_.q”4_llunilI|uda!lrIfaI-tvvolqyoby

lump.

Dance at Kozv Korner. Vernon.

from Capital.

day of recruiting.

WASilllNG’l‘0N—:‘.esiden|, Roosevelt ind In-vi

l’\1IOIll’|(‘

ly but definitely serves elze British or French

diplomats hold secret conferences.

wai.r.rNo'rorv—o.ooa enrol In New Zealand's mllitarY mm on first

BASE!»-German town of llornboch reported to be a. no-man's-

both hhxlnot and Siegfried Una.

rs Poles throwing Gt-rmanri, burl: ‘ I

,_..; ,_ a--__:_-T.

1.giiv?i*L Yg

Saar Mining Basin Capital Is Allied Objective — “Strong Enemy Reaction.‘

BULLETIN

(By Charles Foltz, Jr., BASEL, Switzerland,

Associated Press Staff Writer)

Sept.

l3—(Wednesday)—

(Ai’)—Rcports reaching Switzerland early today in-

dicated a great artillery duel began during the night in the eastern Moselle Valley between Germany's Sieg-

fried and France's Maginot Lines.

(By Taylor

lions of tlcrmz-.riy's Siegfried The French drive on the Vance

fortifications of the main Siegfried

Swiss observers expressed the opinion the British and French staffs were building up an actual assault ’on the Siegfried Line itself in the near future.

Henry, Associated Press Staff Writer) PARIS, Sept. 12—(AP)—French motorized units were

reported tonight driving into the

Saarbrucckcn, i'e;_:arded as the key to the

suburbs of industrial advance posi- Line or westwall.

city put a wedge into the ad- line at their

strongest point east of this capital of the rich Saar min-

ing basin.

French artillery pounded German lines the forest of Warndt, region I

the city from the heights in

surrounding

to the southwest captured by the French last week, and

the French were reported to have

“slightly turned" the

defences of Saarbruecken during the day.

Tonight's comm unique tcrsely

“Continued progress on

said:-—

the same front as yesterday.

Strong reaction from the enemy. notably his artillery.”

The area in which fighting took place _Ve1>'iUl'fla)'. according to last iiiglitls ccinznuiiiquc, was a 12 l-2- mile front cast of the Saar River.

iDispa:clies from the Swiss bor- cier Monday night. said the French lino. a<iv.11‘.c(*d toward Saarbrueckcn frc l the cast in a piiicliimz move- lll(.‘lli.)

Two Objectives

The F‘rcnch drive was concen- trated on Sraarbniecken for two apparent rea.sons:—-

1. Captine of the city and bridgclicad across the Saar River

would _forcc a wide bl"PZlCll in the

APP

advance system of blockliouscs and machine gun nests tluouglr which the F‘reilch could drive tovvartl

A5 a result of the collapse of llllu key city all the U(‘l‘ll‘i2ill positiom in no man's land between tilt‘ Siegfried and Magmot lliics ill Linn part of the front would have in be abandoned or risk being cr:isl-.- cd by a simultaneous a.itack from the front and flank_

2. The city's fail would give the French possession of the San: mining basin, V\\'lllCll for 1L5 siza-

‘_ViC}ont.imicd_on ‘p21ge_,Il_ Col 6i_

ointment Announced Of

New Lieutenant Governor

DE

p Ilmportant Key VIEW [IF NARI City Threatened

TAX AIIIIAY By French Units

their main obl<‘cti\~c—Llic SlC.§,'lrlf‘(l line

Many Sblirces Of

British Prime Revenue Tafiped

Minister Flies To Finance War

To ‘Frfie Tax Increases ‘Cover Wide Range ‘By H‘ ”"dv°v'r'1‘55r.>C”"°d"’” W” Of Commodities To Provide Extra $62 , (5)2 , 0 0 0 Annually.

0'l"l‘A\\‘.-\. Sept. l.'i——(\’\'ednesday) — ((.‘l’)—'l‘he Senate adjourned at 1:35 a. m. ADT today until 10:30 a. m., with several bills still unpassed. and held up the conclusion of the special war session.

OTTAWA, Sept. l2—(CP)—-Work of the special war emergency session was completed in the House of Commons at 11:45 p. in. EDT (12:45 a. m. ADT) to- night and it was announced prorogation would be at 12 noon tomorrow. The House adjourned until 11:45 tomorrow morning.

(By Frank Flaherty, Canadian Press Staff Writer!

OTTAWA, Sept. 12—(CP)—The House of Common; tonight wrote the Government's war-tax proposals into law with a despatch rarely seen in parliamentay poceed- ings.

Revenue Minister Ilsiey introduced his budget in the afternoon and early in the evening it was approved after a Social Credit amendment was turned aside by the over-

LONDON, Sept. 12-(OP Cable)- Prlme Minister Chamberlain who flew to Fraiice and back today for an irnporinrit meeting of the su- preme (lefcrico. council, will tell Parlianient tomorrow of the pro- gross of the 10-day war against Germany.

The Prime Minister, making his third airplane flight since he as- sumed his high officc, apparently brougiit back to England with him the material on which his state- ment will be based. Immediately after his return from his dramatic secret. flight in a Royal Air Force plane, he reported to the King. M.r. Chamberlain was expected also to tell the House of the British troops, now rushing across French soil to join the French divisions pounding away at the siegfrid Line, and to reply to opposition criticism on Britt-h censorship, which has resulted in a paucity of official news,

Tight Cemorship

I conferred with high French leaders,

IION. B. W. l.¢Pl\GE

i OfI'l‘I\WA.

l iiounccd b_V

I Kerizle King LePa

Prime Minister

cnan .-Governor of Prince Edwfifd 1.1: d. sHl‘]s1\l.”(‘(‘f‘(ls Hon, George D- De‘ Blois who was appointed on Decem- [her 23. im. but whose farm of 01- noo had been extended owing to

‘ t. 12--ll. was an- bm) Muc- today that Hon. B. W. had been avpvlnied Hem‘

the Royal Visit.

‘ orl nccesarv to fulfil orders

Mi‘.L4‘i'ng<* will take office on

October is llcn.

‘t. In-ndford William lx~l>nili‘

has been President of the EX4"C\lll\‘i‘ Cmmcil of this Province and first ‘ beefing a member of the Le8iS18‘\"" in 19

‘ of \}iQndso(x‘,Avvho _we_re repo

Just, how tight that censorship is was to be judged from the fact that Mr. Chamberlain left; titre country,.

whelming vote of 190 to eight.

Rene Peiletier (S. C. Peace River, sponsored the amendment which called for creation of a. committee to study ways and means of conscripting wealth and ensur- ing equality of sacrifice.

After Conservatives, Liberals, C. C. F‘. and Indepen- dent members banded together to defeat it, the House ap- proved the taxing resolutions in the budget and gave first. second and third readings to the implementing hills. These i amend the income War Tax Act the Excise Act, the Cus-

I toms Act and the Special War Revenue Act. The measures impose taxes designed to tap the pockets .of every Canadian for financial contributions to the cost

G E 8 of the war against Nazi Germany. i I

While announcing a “pay-as-you-go” finance policy for the duration of the war, Mr. Ilsley did not rule out the possibility of borrowing or of a small degree of credit ex-

O'I'I‘AWA Sept. 12—io1>)_ Com- pansion. The pay-as-you-go principle would be followed as i"“”°5 “'““'I‘ .’““k’-‘ "*0"? “Tan “V6 far as practicable. Additional sums would be borrowed per cent Dl‘0flL on capital invested , . .

(luring me war wiu Day a portion from the Canadian people and in the early stages of the "I 1‘ bfwk ‘0 We K°""“mem “Dd” .conflict some credit expansion might be in order.

the excess profits tax announced in . .

the budget today. The tax applies to The new taxes affect excess profits, incomes, tea, cof- Q\_Ii1§eb‘L‘I“955 1“°°*‘P°"W?d 0‘ °'-her‘ fee, liquor. beer, wine, cigarettes, tobacco and soft drinks.

;r1‘iLg m-mu of me busingss pr - No increase is made in the sales tax which stands at eight i t tax .ff~ tire during the first ~ » ' . . (Slim Vv(:‘u~f€~'i1l be on B gmdwmd ,per cent but the tax will apply to salted or smoked mints, scale ranging rronli 10 per (legs. on lcanned fish and eicctricity and gas used for domestic pui- G0 per cent or a fat rate of r . ' » ‘ _ _

mm on me exmss beyond me 35, poses, all of which have been hitherto exempt iour your average pl‘0llLS, which- I 7

and returned and the world knew nothing of it until an official com- munique told of the council meeting

“somewhere in France." Similarly the Duke and Duchess to

(Continued on page '1. Col 5»

"Grim and Serious"

I "We are engaged in a grim and serious business," said Mr. llsle-y. “Modern war is a conflict in whicn whole nations are pitted agarnsfl

ever the payer elects. ~ The iax Ls i)ayL2:u|ble1saftt>1r('1 i.hedc§r- noration income x pa an e-

ducted from profits. Decision as to

Lholamounrtl of ca ital usfid will be

more by t (2 mm soer revenue

nritlptlic inclomel tax giranch lis ex-V om gnome, The mue may be (16 port to in min stcr e new mpos ’

Under the first. alternative 5; bu.~i- gfmgebfilaglleufffif ncss will pay rt 10 r_cem. tax on; “nude and emdem {me of €03‘ profits in excess 0 five per cent. ,

. nomlc power and by the test of and not exceeding 10 pcr cent, on; n a human nerves me sue m of me nrofits in excess of 10 per cent but- Wm of 165- to ma t‘y‘l‘;I_de d not, exceefiillg 15 per cent, 20 perl 99°? ‘' “5 9“

r--ni; on pl'()llts exceeding 15 per +--~ — :-~ , it-iii. but, not exceeding 20 per i (Continued on page 7, Col 7! cent, 30 per cent; on profits ex- ROME _\~,.[,¢_ 1g_(,\p}_.1)|p. ..,_\ . . .

<'E"<‘(ill‘i5z 20 per cent but not cxceed- lvmam (.m.k.s lnnigh‘ pxprpgg-;

ll\'.‘. 26 psr rent. 40 per cent; on M Mu“. mm 3 mm‘ M "W

])l‘Ollt5 in cxCt‘.\s of 25 per cont of \_‘t pital, t‘;I.i icr (‘L‘llL,

This wou cl mean that ,on a pro- fit. of 525,000 on a capital of $100.- ilti0_ after coniorntion income tax l.\ paid. a company would pay:

On il\(‘ first $5,000, nothing.

mi lllv .\('Cnn(I $5.000, $500.

(in the third $5.0()(l, $1.000

On i.hc fourth $5.000. $1.500.

On the fifth $5.000. 52.000.

The tax «~:ii'nings of any companv fiscal year ends after Mnrrh 31. 10-

in ONLY PLACE IN (is

\NoaLo_ WHERE EVERY-

(HINC. Goes lg IN A

Ctocv. Stone V

“greatest. importance“ is afoot in conversaitlons bctwren (lrcat Britain and lln|.V- Some 0"- si-rvcr: went so far as kl 88? they believed the outcome of the w:|.r and the future of Europe may hinge on them,

The oonvvrsrilions have been going on for several days be- tween the British i\mlia.ssatlor. sir Perry Loraine. and Foreign Vlinistcr Count (‘iano. Diplo- mat: of other nations declined to guess what is l-rv-.\‘ng but nfflrmcd their cnnvi<‘ii0iI that they ore important.

The governor in council may provlflf‘ bv regulation for deprecia- lion and amortization of ncwgiiaiil .'lli(l equipment which mav be cc - for war

\7lll'])()5(‘S

Anv company whose profits are not in excess of five percent on cap- lilil and wliose nmiiis are not in- t‘l‘(‘f\‘T‘(l over the rivr-rage rate for‘ last four vears will be exempt from, inn cxrrsg profit inx.