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THE PEOPLE’S ADVOCATE

March 31 ,1939 —

THE
PEOPLE’S ADVOCATE

Published Weekly by the Proletarian Publishing
Association, Room 10, 163 West Hastings Street,
Vancouver, BG. Phone TRinity 2019.

Qne: Year — $2.00 Three Months -_-- $ .60
Half “ears $1.00 Single Copy —-—---— $ .05

Make Ali Cheques Payable to: The People’s Advocate

Whose Taxes Will Be Cut?

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Fergus MicKean, Communist Party provincial
secretary, analyzes the Leadership League in
the following excerpts from a radio speech de-
livered over CKMO on Thursday, March 30.

Vancouver, B.C. Friday, March 31, 1939

The Gov’t is Responsible

Des of the 1939 city budget and
the move to cut the appropriation for the
General Hospital has given the daily press
and a number of Tory aldermen what they
believe to be an opportunity to discredit May-
or Lyle Telford.

Tt is interesting to note, however, that one
of the chief critics of the mayor is Ald. Fred
Crone, a hard-bitten business man who him-
self proposed during the budget debate last
week that water rates be increased, giving as
his opinion that most citizens would be more
interested in maintaining the city’s financial
standing (with his friends, the bankers) than
in worrying about paying a few dollars extra
for water.

The mayor is correct when be maintains
that upkeep of the General Hospital is a pro-
vincial responsibility, for it is a fact that the
city of Vancouver pays into the provincial
treasury some three times as much as it gets
back in the way of grants and social service

_ payments. It is also a fact that the city hasn’t
got the resources with which to continue
- meeting the growing costs of hospitalization.

But we have yet to hear of a proposal from
any member of the City Council on a real so-
lution to the budget deficit, thcugh there are
a number of concrete methods which could
be tackled.

Wo one has yet proposed a change in the
whole taxation system, which would give a
reduction, say, on properties assessed at $1500
or less, with a graduated increase on the more
valuable properties so as to place the main

burden on corporation holdings. This would
. immediately boost city revenues, yet lift the
burden from the small home owner and busi-
“Ness man.

Wor has there been any suggestion for a re-
funding of the debt structure so as to drastic-
ally reduce the tremendous interest payments
on bonds which are one of the biggest drains

on the city treasury.

These are immediate practical steps which

- would solve the 1939 budget deficit and obvi-

“ate future deficits. And what’s more, such

steps are realizable providing those 17,000

people who voted for a progressive mayor are

given the necessary leadership by a deter-
“mined labor and progressive movement.

To Resist it to Win!

Sa was added to the growing list of de-
mocracies betrayed to fascism by Cham-
‘berlain as Italian troops marched into Madrid
“and Valencia this week to bring a bitter end
to a brave chapter in a people’s fight for
liberty.

The end of the war came after nearly three
years of gallant defense against the combined
forces of Hitler and Mussolini. During that
period the Loyalist government, backed by
the overwhelming majority of the people,
fought bravely against great odds, saw its
legitimate right to buy arms and food. blocked
by Chamberlain’s infamous “non-interven-
tion” committee, received a stab in the back
with recognition of the puppet Franco by
Chamberlain and Daladier, witnessed the
final treasonable capitulation by a group of
traitors in a putsch engineered also by Herr
Chamberlain.

But the Spanish people’s temporary defeat
«was at the same time a splendid defeat. There
are people who will say that, in view of what
has happened, it was useless for Spain to
resist fascism. But they are wrong. It was
just as correct for Spain to resist as it was
for Austria, for Ethiopia, for Czechoslovika,
since such resistance has done more to weaken
the Rome-Berlin axis than any other event.

The Spanish struggle in particular proved
the truth of that. When Hitler and Mussolini
planned the army uprising in July, 1936, they
were confident that the struggle would be a
short and inexpensive one, and would hasten
their intention of encircling France. But in
the long run intervention cost the axis powers
close to two billions of dollars, a heavy loss
in manpower, and a complete dislocation of

their drive against France.

Actually, while the Spanish war costs the
lives of hundreds of thousands of anti-fascists,
it asved the lives of millions of French and
British people who would have been under
attack long before now.

It is to be hoped that this lesson, which was
given to the democratic world by Spain at the
cost of such suffering, will be understood by
our Canadian people and particularly by the
labor and progressive movement. For if we
accept our responsibility ot helping to forge
that bloc of democratic nations against further
fascist aggression, it won’t be long before the
Spanish people are the final victors against
fascist oppression.

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pee the past several weeks the people of Vancouver have
been bombarded with a series of radio broadcasts and
press statements propounding the theories and program of a
new political group, the Leadership League, which claims to
have a solution for the economic distress of the Canadian peo-
ple. The Leadership League has as its chief spokesman, Mr.
George McCullagh, one-time stockbroker and now publisher of
the wealthy and powerful Toronto daily paper, the Globe and

Mail.

Im view of the publicity the
readership League has received
it is necessary we Should examine
its program and aims. What are
the proposals of Mr. McCullagh
for improving the conditions of
the Canadian people? He says:
“The solution of our economic
troubles lies in the expansion of
private enterprise and industry
_.. this can be accomplished only
by arresting wild government
spending and making a substan-

tial reduction in taxation gener
ally.”

We further elaborates by
‘stating: “If our tax bills were
cut in half, natural spending
would create sufficient industri-
al activity to take up the slack
and the accumulated effect
would be the solution of our
unemployment problem.”

In other words, Mr. McCullagh
intends to solve Canada’s unem-
ployment problem by stoppins
what he terms wild government
spending and by cutting taxation
in half.

How would this program affect
us if put into operation? Again
Mr. McCullagh enlightens us by
stating: “| .. If we fulfil our func-
tion as vigilant citizens, pull im
eur belts and restrict our requests
on governments for costly ser-
vices, demanding a pay as you go
policy, we shall have something
for our children and succeeding
generations of which we can be
rightly proud.”

@

LEARLY, Mr. McCullagh be-
lieves the institution of his
policy of reducing government
spending, cutting taxation in half
and stopping costly services of
government will necessitate the
pulling in of our belts. But just
whose belts should be pulled in?
Boes he mean he will-pull in HTS
belt? Or does he perhaps mean
that of his associate, Mr. Wright,
owner of the Globe and Mail and
one of the largest shareholders in
the fabulously rich Lake Shore
Gold Mine of Ontario? I hardly
think so. Im 1937 the Lake Shore
gold mine paid in wages $2,800,000
to the hundreds of workers em-
ployed. However, the same mine
paid dividends of $12,000,000. In
other words, for every dollar paid
out in waegs, Mr. Wright and his
associates received three dollars

in dividends. Wot bad, is it.

Wet, according to Mr. McCul-
lagh, who is the Charlie McCar-
thy of Mr. Wright, this is sound
business. He says: “. . - The
ultimate basis for sound econoe-
my is activity backed by private
enterprise and regulated by the
law of supply and demand. . -”

So, private enterprise, regulated
by the law of supply and demand,
is the basis of sound economy-
Is $3.00 in dividends for every
$1.00 paid out in wages Mr. Mc-
Gullagh’s idea of sound economy ?
If Canadian private enterprise
were capable of overcoming un-
employment, why has it not done
so? Certainly it is in a sound
enough economic position. Im
1937 dividends and profits of pri-
vate enterprise were the highest
in Ganada’s history. As early as
1935 dividends were 16 percent
above 1929 while wages were 16.5
percent below the 1929 level. This
is how private enterprise reeulat
ed by the law if supply and de-
mand works out in practice. This
year dividends are about the same
level] as 1937. However, real wages
have declined and 978,000 people,
or one-twelfth of the population,
are living on relief.

S

Er Mr McCullagh and his

Leadership League wishes to
stop “wild government spending”
and cut taxation in half Wiat
does he mean by “wild govern-
ment spending’? Does he mean
reducing the interest payments
made to wealthy land holders by
the Canadian government which
gobbles up about one-third of the
national income of our govern—
ment? Wot at all; he is opposed
to interest reduction. According
to his own statement he refers to
“costly government services.” Ap-
parently what he really means is
social services and these are Main-
ly used for unemployment and
farm relief.

What would be the result of -
cutting taxation in half? Would
it restore prosperity? On the
contrary, a 50 percent reduction
in taxation would, in practice,
mean the cutting out of all social
services. The major portion of
government revenue would be
used to pay interest charges, the
purchasing power of those 978,000
people receiving povernment aid
would be almost obliterated, thus
drastically reducing the consump-
tion of consumers’ goods, causing

a further reduction in production
and more unemployment.

e@
URTHERMORE, Mr. MeCul-
lagh does not explain whose

taxes are to be reduced. The facts
are the major portion of taxation
is borne by the working people
while only about one dollar of
every three made by the rich is
taxed at all. Their taxable in-
come is mainly confined to their
living expenses, which are a mi-
nute portion of their total. Prac-
tically no taxes are paid on the
major portion of their income
which is accumulated as reinvest-
ed capital. For instance, our own
mayor, Dr. Lyle Telford, has
pointed out: “We allow public
utilities to take one and a half
million dollars away from us eyv—
ery year” in the city of Yancou-
ver. The profits of big business
continue to rise while very little
is contributed towards the cost
of necessary Social services.

On the other hand, our city is
virtually bankrupt, attempting to
meet the cost of necessary social
services by means of taxation of
the smali home owners. Big busi-
ness has seen to it that the cost
of social services is passed on to
the small home owners.

This is the reason for the pro-
posed imcrease in Vancouver's
mill rate, a charge for scavenging
services and the boost in water
rates.

Last year the sponsors for this
broadcast, the Grandview Section
ef the Communist Party, were in-
strumental in organizing a cam-
paign for the abolition of the evil-
smelling dump in that area and

FERGUS McKEAN

the creation of a badlyneeded
children’s playground. They also
aroused interest in the need for
slum clearance and rehousing in
the West End.

But the dump remains, the
slums remain and the children
still have no playground. There
is no money for these essential
projects they say. Still the
burden on the small home own-
er increases.

Professor G FE. Drummond of
the U.B.C. has pointed out the
burden of taxation on the home
owners would be relieved if Fed-
eral Unemployment and Health
Insurance were instituted, yet Mr.
McCullagh and his associates are
bitterly opposed to these mea-
sures.

HE division of the national in-

come is really out of all pro-

portion. In 1934, 84 percent of
ali Canadian workers earned an
average of $506. All farmers
earned an average of $474.

That is, 85 percent of the pop-—
ulation receive one and a half
billion dollars. The remaining 15
percent receive two billion dol-

lars. Of this 15 percent, 4,000
capitalists or one-tenth of one
percent, receive more income

than 1,617,000 workers who con-
stitute 65 percent of all wage-
earners.

This vast accummulation of
capital by the rich is not placed
back in circulation. It is this
disproportionate division of the
national income which deprives
the overwhelming majority of
the population of adequate pur-
chasing power that is largely
responsible for economic stag-
nation.

What Mr McCullagh really
wants is to prevent taxation of
the fabulous incomes of the in-
dustrial magnates. This, he says,
will restore ‘‘confidence’” to pri-
vate industry and create prosper—
ity.
es xery opposite is the case-

What is required is a just reform
of the system of taxation by dras-
tically lowering the taxes on the
people and compelling the rich
to pay their share. The people
require higher wages, higher
prices to the farmer, curbin= of
the monopolies, establishment of
social insurance and last but not

least the commencement of a

large scale government works

program to provide employment.
e

iE IS because the financial in-
terests wish .to block such a
program that they now launch
organisations such as the Leader-—
ship League. It has been Stated
on reliable information that Mz.
Vernon Knowles, public relations
lawyer of the Canadian Bankers’
Association, is the one who actu-
ally writes the speeches of Mr.

MeCullagh and his Weadership
League.

Zt is because Canadian Big Bus-
iness fears the elected represent—
atives of the people may place
legislation on the statute books
compelling big business to pay its
just Share of taxation that they
wish to abolish democracy and
parliamentary government in
Canada based on a full franchise.

According to Mr McCullagh,
geod men in Parliament are
Shackled by the votes of the
people and cannot do or say what
is really in the best interests of
the people because the people
might yote them out of office.
Speaking of R. B. Bennett, for-
mer Tory prime minister, he
states: (I quote) “Now that he
is no longer shackled by your
votes he can come out in your
interests and tell you the truth.”
And what did Mr. Bennett say
when he was no longer shackled
by your votes. He said this: (1
quote) “Democracy is govern-
ment by the less fit.”

And what does Mr. McCul-
lagh say through his paper, the
Globe and Mail? (I quote).
“Rather than submit to the al-
ternative of dictatorship it
would be preferable to restrict
the franchise until discipline
is learned, or surround it with
forces which will rule out de-
structive forces.” :

So, democracy must be dis-
ciplined, the right to vote should
be taken from the people. if the
people won’t consent to this the
alternative is a dictatorship. This
is the veiled threat of Big Busi-
ness.

e
HAT is the first step in Mc-
Cullagh’s plan. The second

step is, abolish the provincial
legislatures. “There is too much
government,” says Mr. McCul-

lagh. What is really meant is that
there are too many elected rep-
resentatives, too many opportun-
ities for the people to influence
government policy. So cut cut the
provincial legislatures. Cut out
the city councils and put in city
managers.

The provincial legislatures and
also the city councils are decisive
links in Canadian democracy,
providing a means by which the
masses of the people can in some
degree influence their own des-
tiny. Im this far-flung Dominion
the people of the different prov-
inces have governments on which
they can bring immediate pres-
sure. That is why Mr. McCullagh
wants to abolish them.

The third step advocated by
Mr. McCullagh is a one-party Na-
tonal government. It is the final
step to remove the influence of
the people over government
First, you take away the right
to wote. Then you abolish the
elected representatives of the
people in the municipalities and
provinces. Finally, you establish
a one-party National government.
Is it not the possible defeat of
party candidates in an election
that causes governments to give
consideration to the demands of
the people? Yes! Then abolish
this’ situation. Make it possible
for the government to carry
through the line of big capital,
completely ignoring the will of
the people, without having to
worry about the fate of party
candidates in an election.

What would be left of democ-
racy after Mr. McCullagh had
finished with his program for “re-
forming the political system?’’
Wothing! His remedy is a dose of
arsenic for democracy. And what
would we find in place of demo-
eratic Canada? We would find a
big business, fascist domain.

e

ET all Canadians who truly

stand for recovery, for de-
mocracy and for a united Canada,
make it their business without
delay to take up the fight against
this program and the deceit with
which it is concealed. In the
Mame of recovery, big capital
through McCullagh is advancing
its program of renewed crisis at
the expense of the people. in the
mame of democracy, they are
planning to undermine and de-
stroy the whole fabric of democ-
racy.

The Communist party will not
be found wanting in this fight.
We will take our place as a rela-
tively small group, alongside the
ereat democratic forces of the
Canadian people to defeat this
conspiracy.

But what is needed is unity of
the great masses of democrats
of all parties to push forward
quickly the fight for the program
of real recovery and real democ-
racy! et the hesitating demo-
erats of the old parties come for
ward fearlessly and take up the
fight and let the trade unionists
and farmers’ organizations step
to the forefront. Above all, let the
people unite for security and de-
mocracy. That will give Mr. Mc-
Cullagh and his fascist-minded
multismillionaires backers their
answer. They can and will be de-
feated!

SHORT JABS

A
Weekly

Commentary

By Ol’ Bill

G. E. R. Gedye, one of the
journalists who had to seek
One! refuge in the British Lega-

tion at Prague when Hitler’s
menagerie broke loose there, tells in his beok,
“Betrayal in Central Europe,” a story of Cham-—
berlain’s man-Friday, Lord Runciman. Wencel
Jaksch, German Social Democrat leader in GCzecho-
slovakia, flew to London to plead for visas for some

of the socialists in Prague who were threatened
with death.

Mark This

He called on Runciman and reminded that noble
specimen of how he claimed when in Prague to be
“the friend of all and the enemy of none.” Jaksch
told him of the desperate plight®of his friends and
asked for a4 little help such as Runciman had given
to the Henlinists. This is the answer he got, “I
understand the lord mayor is opening a fund for
you all and if he does you will certainly find my
name on the list of contributors.” For five shillings,

probably!

> In Nazi Germany’s drive for
Is It Gall? foreign trade, journals are sent
forth from the Piatherland advertising the variety,
quality, cheapness and desirability of Nazi goods.
One such booster sheet is The Export Market, pub-
lished at Poessneck, Berlin, a copy of which has just
come into my hands.

if the essence of the things were not so tragie
we could find a great deal to laugh at in the apolo—
Sia that passes for editorial writing in this Nazi
advertising medium. So, for instance, in Nazi
Germany, “Justice has~become Equity, and every—
thing is being done to encourage and create an at-
mosphere for confidence in the good intentions and
honesty of ‘my neighbour.”
: Also, “Germanys social order is dominated and
inspired by the same spirit of Equity and Fraimess,
with the amazing result that there are no such
things as strikes and wage disputes __ _ A strike
ane is unknown in Germany... contented work
people in good surroundi
Bai geces ings are always ready to

This political propaganda is imterspersed with
blurbs about the high quality and low price of
cuckoo clocks, harmonicas, paper collars, sacred

statues, police trunmcheons, firearms and other prod-
ucts of Nazi industry.

A Modern The “high” quality of Nazi goods
M th is a myth. High standards of

yrn. German workmanship belong to
the past, to pre-Nazi Germany, a fact which may be
demonstrated by the inspection of the Nazi-manu-
factured junk offered for sale on the counters of the
0 and 10 stores of any Canadian city. The low price
levels, however, are true and have an absolute con-
nection with the fact that “there are no strikes or
wage disputes in Hitlers Reich.

The operation of the Nazi government railroads
Deutsche Reichsbahn, provides ample evidence of
the truth of both of these assertions Wazi war-
mongers, in their party and armament imdustries,
during 1937, milked the railroads to the tume of 18734
millions of dollars, 30 millions of which went into
the coffers of the Nazi onganizations. The war con-
tractors got their share through a 30 percent reduc-
tion in freight rates.

On top of this a transportation tax is paid out of
the tariffs and fares collected from freight and
passenger traffic. In 1937 this tax amounted to 37
million dollars, 25 million more than was paid an-—
nually by the railroads when they were mortgaged
to the Reparations Commission.

Overcoming One would think that with such
an enormous burden to bear

A Deficit. there would be an ungodly defi-
cit on the operation of the railroads. But no; you
must remember The Export Market tells us there
are no strikes or wage disputes in Nazi-land. The
deficit was overcome by increasing the hours of
the German railroad workers. The speedup and
the stretch-out were instituted to place the load onto
the backs of the German railroadmen.

The 48-hour week was stretched out to 60 hours.
Wage cuts of 20 percent were imposed in many
branches. The staff was not increased to meet the
increased traffic caused mostly through the war
preparations, the fortification of the Rhineland and.
troop Movements. Men in the rumning trades had
their “night-rest’ decreased or eliminated entirely-

At the same time that the railroads were mobi-
lised in the service of the War Department, the ex-
penditure for rolling stock was reduced and obso-—
lete locomotives, soft rails and worn-out signal
apparatus kept in use.

Railroad Or What is the result of all this to

“the contented ~workpeople in
Deathroad? good surroundings’? Deaths of

railroad workers in railroad accidents haye in-—
ereased 600 percent since the Nazis seized the Ger
man people by the throat. Train wrecks have in-
creased in the same period by 450 percent. German
travellers have the pleasure of knowing that they
have a 1000 percent ¢reater chance of meeting am
accidental death while travelling today, than they
had in 1932 under the “hated” Social Democratic
Weimar Republic. :

Here are the figures of Die Reichsbahn (ctually
the Nazi government) and Der Internationale Misen-
bahnverband (intermational Railway Association),
for the first nine months of 1932 and 19387. In 1932,
143 trainwrecks occurred involving the death of 223
railroadmen and 59 passengers. In 1937, there were
514 trainwrecks bringing death to 1343 railroaders
and 1552 passengers.

The exploited German railroad workers might
well say, “The railroad has become the deathroad!”

So much for the Nazi claims! Yet this is precisely
what Sir Edward Beatty and the latest addition te
the fascist wranglers, George McCullagh, mouth-
piece of Big Biz, would impose on the Canadian
railroaders and the people who have toe use the
railroads to get about the country in doing their
business.

Mussolini was on the stump
From a z again wast Sunday. He spoke to
Pirate Lair. his bandit-pirate horde whom he
dia not lead on the march on Rome twenty years
ago. While they hoofed it from Milan to Rome,
Wauissolini rode in a Wagonlit (Pullman to you). He
addressed them as “Comrades Squadristii.” A slight
slip of the tongue; he should have said “sadisti.”
“Wadrid,” he said, “where the Leftists expected
the tomb of Fascism will be, instead, the tomb of
Bolshevism.” The fool, who has revived piracy and
the morals of the llth century, does not seem te
be aware that Madrid is already the tomb of Kas-
cism, for around Madrid have gathered the forces
that will wipe out Mussolini and his bastard philos-
ophy. “Believe, Obey, Fieht,”’ he told his gangster
mob but the people who think, who always win in
the end, are gathered around Madrid and what it
stands for. =

—-