Maxims of a Mere Man

i I Know when to

speak.

14 PAcif:s

Lleut. Lewis MacDonald. B.A., ther. O.B.E., Legion educational committee and Mrs. was received through Lleut. Col. will probably apply the scholar- J. A. MacDonald of Cardigan, ship to further his education by representative to Dominion Com- attending Dalhousie Medical Coi- mand. Lieut. MacDonald. who is iege.

was presented at the Armouries last evening with the Dominion Command L e g i o n Educational Scholarship. The award was made by Lleut. Col. L. T. Low-

PRESENTED WITH

sc

OLARSHIP

chairman of the a son of Lieut. Col. W. J. and

MacDonald. Charlottetown.

(Guardian Photo)

FATHER AND SON ON BOAT

Tignish Fishermen Safe After Battle With Storm

Two Tignish fishermen. at sea in a raging storm for 24 hours. made port last evening none the worse after combatting strong gates and high seas which kept all boats ashore on P. E. 1. yes- terday.

Arthur P. Gaudet and his son Francis left Tignish Run Sunday

evening in their 38-foot boat to "drift" all night for ' cl. A severe north east storm. which

blew up during the night. made entrance to their home port ex- tremely dangerous. Their first try at eight o'clock yesterday morning almost proved disastrous and they were forced to turn in the face of a strong out-going storm tide and sail out to sea where thye rode at anchor until 4.30. At that time a signal flag was raised on shore to indicate that wind and tide conditions were more favorablrwand the boat made its way safely. into harbor before darkness set in. Fortunately they have a null bow cabin and carried a good supply of gasolene.

At the height of the storm it was feared that their boat might be unable to keep afloat and R. C. A. F. Search and Rescue were notified. A helicopter was in read- iness at Chatham to attempt a rescue if necessary when weather conditions improved. Members of

Coming Events

Legion dance in Afton Rail June lat.

Rummage sale Orange Lodge Room Tuesday. May 39 at 2.30.

Picnic Immaoulat conception zhhureh grounds. Wellington, July

Dance. Lorne Valley I-fall. Wed- nesday. June 80th. Webster's Or- ahestra.

Hunter River stores closed Wed- nesday afternoons until further notice.

Dance. New Glasgow Rail to- night. Sponsored by Junior Farm- ers and Fire Department.

New Glasgow Stores will close at noon Wednesday. beginning May sols.

Fsnningbrook Varicty Concert. St. Theresa's Hail, Friday. June lat. Dance after.

Weekly Dance. Fort Augustus Hall every Wednesday night. Burkes Orchestra.

Dance Mt. Stewart Memorial Hall Tuesday night. Rollie Mac- Kenzle's Orchestra.

Dance. " T Inn. Tuesday night. Burns' Orchestra.

For best results book your clover seeds with us. McGuigan It Boyle, Hunter River.

Dance, West Royal Hall. Wed- nesday. Rollia Mac ensle's or- tltiziestra. Canteen service. 9.30 to

:30.

The annual meeting Westmore- land Cemetery will be held Wed- nesday. May 30 in the Church at 0.3!) p.m.

Kelly's Cross Players present their play "Aunt Abby Answers An Ad". in the parish hall. Tues- dly. May 10. Curtain 9 o'clock.

All taxes due Pleasant Grove school must be paid by June 4th. otherwise they will be handed in for collection without further notice. By order of Trustees.

Attention farmers -- Timothy Md clover seeds in stock. Get ulur requiremeutg now. P. L

oi-rls. lhur-Gain Feed Service. llniiors. aarlottetown and sum- nserstde. '

' "moderation" in Greece's IIIIINM

the Alberton detachment of the R.C.M.P. and Fishery Dept. offi- cers at Tignish stood by all day to help with rescue operations if needed.

The storm is expected to cause heavy damage to lobster gear in the area. Inshore traps were washing up on the beach between

Tignish and Alberton last night. Full extent of the damage will not be known until boats are able to overhaul their gear.

Reports from the eastern end of the Province last night indi- cated there was a possibility of considerable damage to the gear of inshore lobstermen.

Cyrus Eaton Fights Tax Bill

WASHINGTON (AP) - Lawyers for Cyrus S. Eaton Monday charged that the United States government's 31,500,000 tax claim against the Canadian-born indus- trialist abrldges the U.S.-Canada tax treaty.

It also jeopardizes the interests of "hundreds" of firms with Cana- dian investments. they said as the hearing of Eaton's appeal opened before Judge Ernest H. Van Fos- san of the US. tax court.

Eaton. a native of Pugwash Junction, N.S.. is a Cleveland banker and also board chairman of the Chesapeaie and Ohio rail- way. '

The Internal Revenue Service contends Eaton owes 3l.572.000: that his associate. William R. Daley. owes 3388.000 and the the Canadian corporation they con- trol. Premium Iron Ores. Ltd.. owes 52,336,000 on income earned from 1943 to 1949.

The cases were combined for the trial but Abe Fortes. counsel for Eaton and Daley. said the IRS had taken an "inconsistent posi- tion'. It is trying to collect from the Premium firm and from Eaton and Daley on the same income, he said.

"We are not sure which horse the IRS commission's lawyers in- tend to ride in this proceeding. but we're quite certain they cannot ride both," Fortas said.

NOT SUBJECT TO TAX

Fortas also contended that the income was earned by a Cana- dian corporation. was subject to Canadian taxes and was "subject to the benefits of the Canadian- U.S. tax treaty designed to avoid double taxation."

The case has aroused consider- able interest in Canada. where several ncwspaprs have said editorially that if anyone is en- titled to taxes it is the Canadian government. A c t u a i l y. Can- ada waived the taxes as a matter of policy. because the enterprise involved the launching of a major C 4' mining enterprise. Steep

Rock Iron Mines Ltd.

A spokesman for the Eaton interests has described the tax claims as an "lmpudent invasion of Canadian internal affairs by the American tax authorities."

However. James F. Kennedy Jr.. IRS lawyer, asserted in his open- ing statement that Premium Iron Ores Ltd. is a "resident foreign corporation" and is "taxable on all income earned in the United States."

"We disagree that it involves a lot of companies," K edy told Judge Van Fossen. He said there were special facts in the Eaton case which would prevent it from becoming a general precedent.

Kennedy said also that there is no double taxation because the income was not taxed in Canada. BARGAIN RATE STOCK

Most of the income was in the form of stock in the Steep Rock company. delivered on the Pre- mium firm at a bargain price. This was in compensation for serv- ices in financing Steep Rock's suc- cessful attempt to obtain ore from difficult deposits lying under Steep Rock lake.

Premium paid only one cent a share for the stock. The IRS con- tends the market value was 31.67 a share. It said Eaton should pay taxes on 80 per cent and Daley on 20 per cent, on the basis of their proportionate ownership. Eaton and Daley have contended they had no personal rights to the stock, because it was obtained by Premium.

Daley testified at length on the activities of himself and Eaton and of the Cleveland brokcrage house of Otis and Company. At the time of the Canadian deals. Eaton was board chairman of Otis and Compan, and Daley was president. The firm was trying to assist Sleep Rock with its financ- ing. Daley said. and these efforts led to the establishment of the ra company in Canada as a financing agent and also as a

sales organization to handle the

Cl-IARLOTTETOWN, CANADA. TUESDAY MAY 29 1956

Premier Takes Brief Holiday

Premier A. W. Matheson accom- panied by his wife and famll are on a motor trip to Montre . 0!- tawa and other Canadian centres. They will be out of the Province for about two weeks. During the Premier's absence. -Hon. Doug- aiii MacKinnon will be acting Pre- m er.

Heavy Fine Slapped On Two Villages

NICOSIA. Cyprus (Reuters)-A fine of 536.000. the heaviest since the Cyprus terror campaign began. was imposed Monday on two "sil- ent villages." Pano and Kate (upper and lower) Zodhla. whose population refused to talk after recent ambushes and attacks car- ried out in their streets.

Demolition of houses used as cover for the attacks on security forces is also under consideration. an official statement said.

From these villages. 22 miles west of here. there have been re peated acts of sabotage on power lines.

The fine brings to 1229.000 the total levied on Cypriots in collect- ive punishment .

Three days ago. Army patrol vehicles were ambushed in the area. Machine-gun fire came from the direction of the Greek Orthodox Church.

At a public inquiry, the villagers were asked to give anonymous information about the terrorists. There was no response.

A British soldier was killed in an ambush Sunday night near Polls. western Cyprus. when two other security men were wounded.

This Ittack followed the worst week of violence since the Cyprus emergency began in April last year.

Flying Wood Knot Kills Mill Employee

STRATI-IROY. Ont. (CP)-Hum- phrey Graham was killed Monday when a wood knotflew off the main saw in the J. M. Hawkins Lumber Co. Ltd. sawmill and struck him.

The saw bit into the knot in a piece of timber and flung it 40 feet to where Graham was stand- mg.

McIclNNlS ASKS RETURN TO SANITY

OTTAWA (CP)-The Commons Pal-wed briefly Monday in its tumultuous pipeline battle and lis- tened quietly to an Opposition member's plea that both sides get together to "wipe the slate clean of what has happened and get back to sanity. get back again to Par- liamentary procedure."

The words were spoken by Angus Maclnnis, 71-year-old CCF member for Vancouver Kingsway.

Mr. Maclnnis --ose after Prime Minister St. Laurent made an unexpected announcement concerning the tangled course of debate on the government's bill for temporary financing of the trans- Cnnada natural gas pipeline.

Mr. St. Laurent said debate could continue "all this week" on remaining stages of the measure once the House adopted a motion by Trade Minister Howe to cut off -debate on the third clause of the seven-clause bill.

Similar motions by Mr. Howe cut off debate on the first two clauses of the bill. now before the Com- mons committee of the whole.

Mr. St. Laurent said debate

could continue on the final four clauses.

O TERMED "INSULT"

Mr. Maclnnis said Mr. St. Laur- eut's statement was "an insult to the House."

"It is intolerable that free men should come here and be told what they may or may not discuss on the word of the prime minister or anyone else."

Opposition leader Drew and Stan- ley Knowles tCCF Winnipeg North Centre) declared that Air. St. Laurent had made no conces- sion whatever. Both said that. even without hi statement, thcl government could use closurc to force the bill through its remain-

ing stages e on committee of the whole and third reading-by the end of the week. i

These were other dvelopmcntsi as the Commons moved into the third wttek of its pipeline fight:

1. Actual debate on the bill fill-. ally resumed after three days of disorderly infighting on procedural points. M.r. Howe's motion to post- pone debate on the third clause

0 77:9 Guardian

was carried 124 to 53.

2. Opposition leader Drew was ruled out of order on his motion to adlourn normal business to debate what he termed the government's subor inaiion of the office of Com- mons chairman "To serve the partisan interests of the govern- mcnt.' He had said Friday he would scek to have chairman W.A. Robinson censured following the lfnrjrary suspension of Donald Plcmm: IPC-Toronto Eglinton) for .ciusing Mr. Robinson's re- peated orders to sit down.

Ci. Speaker Rene ucaudoin said hc will seek to have his record as spcake. referred to a committee com.osed entirely or Opposition members. He said he would abide by the committee's decision on vi ether he has acted fairly.

LESS UPROAR

The day's sitting, opening to packed galleries. proceeded with less of the uproar and bedlam which marked the last two days of last week.

The bitterly-fought pipeline bill would pro Ilde for a loan of up to

Covers Prince Edward Island Like the Dew

Calls St. Laurent's Otter An Insult To The House

380,000,000 to Trans-Canada Pipe Lines Ltd. to cover 90 per cent of the cost of building the Prairie section of the S375.000,()00 line from Alberta to Ontario ant' Quebec.

It also would establish a crown company, financed by the federal and Ontario governments. to build thr s1l8.000.000 northern Ontario section and lease it to Trans- Canada.

The gov: 'nmenL's deadline for passage is June 743 week from next Thursday. If the deadline is not met, Trans-Canada is released from its agreemnet to complete the Prairie leg by Dec. Ill.

The government already has ap- plied the A Yely-used closure wea- pon to limit debate on the iirsl'

two stages of the bill's passage"

through the Commons.

There has been non debate on the first three clauses of the bill.

Prime Minister St. Laurent. re- plying to Mr. Maclnnis, said he had not tried to say what clauses of the bill would be debated. He said he had hoped members would try to discuss the bill instead of points of procedure.

PRICE 5c

Mr. lvlacinnis said the govern- ment imposed closure-not after extended debate-only because it had set a time limit on the bill's passage and h it anticipated obstruction. - g "The freedom of debate has died in this House during the last two or three weeks. . .I submit that the government and Opposition leaders should get together to see if we cannot wipe the slate clean of what has happened and get back to sanity, get back again to Parl- iamentary procedure. get back to rules of order that cannot be changed from day to day accord- ing to the majority of those sitting on the other side of the House."

FIEF DISORDER There was a brief flurry of dis- order vihe.. chairman Edward T. Applcwhaite, who Monday took Mr. Robinson's position in he chair. called for a vote on Mr. Howe's motion to cut off debate on clause three. Davie Fulton (PC- Kamloops) tried to move an amendment to (Continued on page 5 col. 2)

Fires Spread In Alberta

EDMONTON (CP) - Firefight- ers in northern and central Alberta renewed their, efforts Monday as strong winds c a u s e d further spreading of 22 uncontrolled brush and forest fires.

"It wasn't a good .. ' said T. R. Hammer. chief super- intendent of forest protection. "Winds were strong and you can assume that fires that were out of control still are."

A fire near Whltecourt. 100 miles northwest of here. spread Sunday into the Edson forest protection district to the south. The fire was reported to have jumped the Atha- basca river but was still 30 miles

sin

from a railway line and scattered settlements in the area.

OTTAWA (CPI-Canadian farm- ers' net.earnIngs rose by 8264,- 400.000 in l055 but the increase was made up mostly of unsold grain on Prairie farms. Actual cash income dipped slightly.

Total net income for the cal- endar year rose to 31.454.300.000 from the six-year low of 51.189.- 900.000 in 1954. though it was some 3700.000.000 below the record 32,- l54,500.000 in 1951, the bureau of statistics estimated Monday.

Net income is what remains after the farmer adds cash income to unsold products on farms and deducts operating expenses and depreciation. Cash income dipped to 042,700,000 to S2.352.600000 from 02.305.800.000 in l954. It compared with the record of 812.849.300.000 in 1952.

Added to the over-all drop in cash income were such other head aches as a rise in operating ex- penses. Farmers ended 1955 with a lot more grain in their bins and larger holdings of livestock. These eventually will boost their earnings-if and when sold.

Saskatchewan's net income more

Flods Follow Rains In Illinois. Indiana

CHICAGO (AP)-Floods loosed by torrential rains covered some roads and thousands of acres of farm lands in the central sections of Illinois and Indiana Monday.

The downpours gained up to nine inches in Illinois during the week- end. Streams went over their banks and water rolled across fertile fields along the Sangamon river and Kickapoo and Salt

output of the Steep Rock mine.

creeks.

NEW GREEK FOREIGN MINISTER

Opposes British Policies

ATHENS Reuters-A man who has actively demonstrated his strong feeling against British pol- icy in Cyprus Monday took over the helm of Greek foreign policy.

evangelos Averoff. former agri- culture minister returned British medals as a pro- test against the ” ing of a young terrorist gunman in Cyprus. was sworn in as foreign minister.

He replaced Spiros Theotokls. who had offered his resignation in the face of continued attacks from political opponents of his policy of

with Britain over Cyprus.

who recently poll

to obtain the "liberation of Arch- bishop Malrarios." head of the Cyprus Greek Orthodox church who as exiled by Britain for aileged support of Cyprus terror- ism. He said he would continue the government's current foreign CV. RELATIONS AT LOW

Greek-British relations already have hit rock-bottom in the dis- pute over the Mediterranean coi- ony. which the British govern- ment clalms it must maintain as a Middle East base.

Deputy Premier Andreas Apos- tolides succeeds Avei-off as agri-

mu ,,,m., Mm, Thei N Tn. Grad oaths ofmtbeir dewniiiiiiciizdibafg the : Tire:-x lineuon . WlllCnwmmgl;Cll8n" w'7Nu”mc,""" us use use in his statement. G..........."'k cl."'.'.'.iil.T:i'm'.'d1nm"u'f ug"us."s'.”'d.u.nsby it nvfweeswmi one he had been eag.qn"w'...u."" Amotrnoidinst-ossgnssths Q. seas: "My resignat' is is nova-us-sssdsuugggg sosiassiassisl vvllhsuuneuuuuainucuus-t

ence and a lack of understanding of Greece on the part of bar allies."

Political quarters here Pre- mier Constantine Karaman de- cided to sacrifice Theotokis for two attacks :on his ”'”';.':;.'

s s icy and to maintain the tion of the Cyprus church ethngf. chy. which has led the attack on Theotokls.

The opposition Athens newspa- PET 0" HUI the resignation will wpakegi the uj0VG;n.l'llIl:gn um um. " e isnip on gown; has darted." mm

Farmers' Net Income In 1955 ' Higher Than It Was Year Ago

than doubled to s321.800.000 from Sl4l.Il)0.000 in I954; Alberta's in- creased to S2l3.900.000 from 3196.- 500.000; and Manitoba's to 395.80- 0,000 from 74,500,000.

Net income for other provinces with 1954 figures in brackets: On- tario 8428.-010.000 (s396.6o0.00o); Quebec 5293,-100.000 (S276.S00,000); Prince Edward Island SI3.700.000 03,300,000): Nova Scotia 521,500,- 000 i321.400.000); New Brunswick 321300.000 i530.500.000): British Columbia 338,400,000 ts39.400.000).

N.S. Murder Trial To Begin Today

LUNENBURG. N.S. (CP)-Le- roy James Llewellyn. 44-year-old woodsman from Mill gvillage. about 30 miles south of here. will go on trial today for the murder of a 76-year-old farmer.

William Cross died. April 17 after being beaten in his home at Italy Cross. about mid-way be- tween here and Mill Village. Mrs. Cross was also beaten but she recovered.

OTTAWA (CP) Commons Speaker Rene Beaudoin Monday offered to submit his record as an impartial mediator of debate to a committee of Opposition members under Stanley Knowles. He asked that at the first oppor- tunlty the question of his "speak- ership" be placed before the Com- mons committee on privileges and elections and that the committee be composed exclusively of 0p- position members. '

At Mr. Besudoin's suggestion that the, CCF member for Win- nipeg North Centre, an acknowl- edged expert on House rules and

eedlngs. be chairman of that committee. Mr. Knowles said: "That would deny me of the right to speak."

Mr. Beaudoin later told a reporter that it would do no such thing. He said committee chair- men frequently speak on matters under consideration.

DEBATE RESUME3

Speaking as the Commons re- sunied its unpredictable natural gas pipeline debate, Mr. Beaudoin said:

"I do not like what has hap- pened and what has appeared in the press any more than any hon- orable members do . . .no doubt something will have to be done."

He made the statement after Colin Cameron (CCF-Nanaimo) read an editorial in Monday's Montreal Gazette. which the mem- ber said was a reflection not only on Mr. Beaudoin but on all mem- bers.

Mr. Beaudoin said that during the weekend he checked and rechecked all the rulings he has made since the pipeline ieglslatoin first went before the Commons.

He had decided he was wrong in accepting without notice a motion by Opposition leader Drew which sought unsuccessfully to

SUGGESTS KNOWLES AS CHAIRMAN-

Speaker -Wants Record Submitted To Committee

Also. in accepting a motion from Mr. Knowles to adjourn debate. Mr. Beaudoin ha d speculated whether it was in order since another motion was already before the House. He had decided his speculation was wrong. A motion to adjourn was always in order.