F. PR! 14. 1937 qfllljl’. (‘HARLOTTETO\VN_ GUARDIAN rags THREE. $63,288 r is Budgeted For Deficit Un Current Acct. Tax Increases Include 2cts Per Galllon On Gasoline, $1. On Motor Registration Fees, Heavier Motor Truck Taxes, And I00 p. c. “Increase On Life Insurance Companies yellowing is the conclusion of the “., ‘ Speech by Premier crtmpbell inthe Legislature on Monday niShlii “Turning to the other side of’ the picture, we come lo consider the question of revenue for the year. The principal increase of revenue may be summarized as follows: "General taxation, an increased estimate of $15,000. ‘That includes income nnd personal property tax- atlon, land tax, corporation taxes, and general taxation of that kind. Life insurance companies, 1056, $6.091; estimate $12,000, sn in- crease of $5.000. That comes about ‘n this way. The present tax on lifc insurance companies is 1 per cent. per premium income. Look- lng at the situation we found that ln the other provinces they are paying from 2 to 3 per cent, and there seems to be no logical rea- sou why the tax should be less in this Province, because the under- ixtritcrs’ rates are fixed without regard to provincial boundaries. and we felt that taxation should ho fixed in the same way. we sllllll therefore introduce legisla- tion to increase the rate of taxa- lion on insurance companies from l lo 2 per cent, which ls esti- mated to bring an increased rsv- enue of $5,000. On Banks, an increase of $13,- 000. This is estimated owing to the improved conditions and in- creased business. Domicile companies. 1936. $70,000: estimate for 1937, $75,000, an in- crease of $5,000. In this connec- tion the Liberal party may say with some satisfaction that since these domicile companies were in- troduced here in 1931, the total revenue deriv by the province up lo the end 1m year amounted lo $256,000. succession duties. 1935, $19,836: i936, $42,010; ; estimate $45,000 an in- crease o1 $2,000. This increase is partly due in improved collection methods. partly to an equitable adjustment of exemptions which was made during the session o! 1038. In the opinion of the gov- ernment the succession duty is the fairest and most just form of taxation and those achievements in. exemption which we made in 1038 whereby people who were not members and dependents of the tcstators‘ family were put into a category where they received light exemptions. While we do not be- lieve it creates any hardship. it a-rjj as the years go on produce a considerably increased revenue to the treasury of the province. Amusement Tax Increase Amusement Tax: in 1936. ap- proximately 85000; 1930, $11,000: estimate $14,000. This increase is partly due to a slight increase in the rat-es. The government felt that if anyone in the province is irblc and Justified in paying an in- creased contribution to the treas- ury it should be those people who can afford to attend amusements and entertainments. For that roa- uon the scale of rates of amuse- mcnt taxes was revised and slightly increased. But that accounts for only apart of the increased rev- enue. The amusement tax stood forth as only another example of the lax and almost non-existent system in vogue in this province In connection with the collation of taxation. Any person who came along and offered to pay the treasurer an amusement tax was received with open hands. ‘The lax was taken and not turned 307m, but no systematic effort - ln fact no effort at all — was be- lnr made to collect the tax. And 5o by a systematic imnrovement in the method of collecting this tax. in addition to the slight increase in rates. we have been able to estimate for £14,000 revenue from sluice‘ Marv fl Canadian Legion Home Tonight at 8.15 FREE GAMES SPECIAL PRIZES , i ._._____. | Guard of llonour Training in Uniform at Drill shed Wednesday . "fight, April 14, 1937, at 7- pan. ' reduced by 25 per cent. 0.C. “A”, Coy. this slnsle source which should hurt nobody, as against approxi- mately $5.000 two years ago; or an increase of $2.400 over last year. Gasoline tax: in 1936, the amount collected on this item was $232,- 575~ For the present year we are estimating for a revenue of $300,- M10. an increase of $67,500. the de- tails of which I will go into 1n an. other connection. Motor Fees Increased MOM!‘ Vehicle > Registration: $111,810 last year; estimate for this year $130,000. This is partly due to the estimated normal in- crease of registration, partly to a $1.00 increase in the- registration fee necessary to provide a new System of registration whereby the driver's license of the automobile is separated and distinguished from the registration certificate. And in the third p'acc the increase is partly due to a general equit- able revision oi system and scale of taxation on the registration of motor trucks. This last mention- ed division is one which has caus- ed the government a considerable amount of study. It was obvious that the existing systzrn. based as it was on the weight of the truck alone, without any consideration of the load, was not only unfair but was depriving the government of a proper amount of revenue, and was depriving the roads of the province of a proper amount or protection. A great many trucks were registered as a ton and a. half truck, for $21 and were carrying loads up to six or seven tons. There was no method what- ever of checking on the weight of the load carried. And it is com- ing to be a generally recognized principle that the weight of the load is really the most important factor, that a light truck with narrow tires, inadequate whee! base and improper distribution of load, does more danusge to a road than a heavier type of truck pro- perly loaded, with dual wheels and wider tires and a better weight distribution. As a. result of an ex- tended study of this matter the system has been inforce in~ the province of Nova Scotla for some time, of basing the registration of trucks on the combined weight of tuck and load. New Brunswick last year had the system of re- glstratlon based on the weight of 10nd alone. Prince Edward Island had the antiquated system weighing the truck alone-not of weighing it, but of taking the figures given by the person regis- tering the truck. A conference of the officers of our government and the governments of Nova Scotla and New Brunswick was held lit Moncton. and after con- sideratlon of the matter it was unanimously decided that the only proper systematic method of regis- tering trucks was the method bas- ed on combined weight of truck and load. The three lvlaritlme Provinces therefore decided to accept that basis of registration. The same basis is in force in the Province of Ontario and I believe in ‘the Western Provinces. and it has been seriously recommended for adoption in the Province of Quebec. So that in this direction we are not merely following in lino with the system in which practically all the provinces have accepted, but with the only fair, equitable and adequate system. There was a considerable , dif- ficulty in fixing just what might be considered as an equitable rate. Aftcr the government had published a rate which we felt.- and which 1 still feel -- was ap- proximately proper and adequate. ws were waited upon by a dole!!- tion from a truck drlverssssocil- tlon. They admitted that the previous rates had not been pro- perly adjusted and had not been in any sense adequate, but they felt that the scale of rates which the government had adopted was too severe and radical a. change, at least for one step. After lis- toning to their representations the government in conference inform- ally with the members o! the cau- cus, felt that there was some merit 1n the representations of the truck drivers, particularly from the point of view that such a radical change at one step would cause a BT90‘ deal of dislocation of the present state of affairs in this direction. After this conference we were 51,19 to decide upon a final resd- "r .0 which is now in force, whereby for the present year the rstes which we had put in force, with a fow excePl-io - l" l0 h" We feel that this reduction and the ed017- tion of the new WW9!" "1 "35"?" tlon sooordins i0 cmlblmd - of truck and load. will Pmlllcl! I result of fairness as between the different owners and operators: yj ce s slightly increased revenue for the government. al- though that was not our primary object; and will a 8H0- wally incrensinfl arse-out w the umber of trucks running P.E.I. Hlghrs.’ I highways against an overly-in- creased n at random and without any ade- quate control or restriction. General Taxation "I mentioned at the outset that we were estimating for an in- crease in general taxation. In 1935 the amount of revenue on this item was $138,918. We felt last year that the situation in this respect was becoming alarming, that the amount of impald taxes throughout the province was hav- ing a serious detriment upon the administration of affairs. While there was some sympathy for those who through stress of the depression had been -unable to keep their taxes up, we felt that this was not the whole nor yet the substantial part of the difficult situation. We felt that the grow- ing increase and accumulation of arrears was due not so much to any temporary depression as to the negligence, or reluctance, of suc- cessive governments to attempt any systematic method or to make any systematic effort in the direc- tlon of tax collection. It was get- ting to the stage. Mr. speaker. when even the conscientious and. more or less well-to-do citizen was saying to himself and to the gov- ernment, ‘I am not going to pay any more taxes because while I have been conscientiously doing .my part in paying taxes, my neigh- bors haven't been paying taxes. and the government. has made no effort to compel them to do so. The situation became so alarming in this respect that we decided that some drastic step had to be taken, and with that in view we appointed a number of special tax collectors; one full-time man and two others, part time men. It was-the duty of these officials to go through the country, interview those whose taxes had got so far in arrears, finding out why the accumulation had piled up, mak- ing collections in whole or in part where possible, and-perhaps more important than anything - mak- ing complete and systematic re- ports to the provincial treasurer. Largely owing to this determina- tion of the government and the increased efforts made by the treasurer and by the special tax collectors in connection with the systematic cooperation of the re- gular collectors. the general tax collection of 1935. amounting to W"! ")0. vcs incrased in 1936 so $104,000. I think a very creditable showing for an increase in a single year. With that in view. and con- sldering the fact that a good deal of the work of the special tax col- lcctors last ycar wcs lorsP-iy groundwork and preparatory 9° actual collcctlon, we are making an estimate for 1937 in collection of general taxes amounting to ap- proximately $210,000. as against $138,000 two years ago. This col- lection, this increase, with in- creases in every classification of those general taxes, is not achiev- ed by a single increase in any of the rates of general taxation. The increase in the revenue from this item is solely due to increased ef- ficinecy of collection. Federal Collections “It is further proposed during the present yea-Y. if satisfactory arrangements can he concluded with the Department of National Revenue at Ottawa, that the col- lection of income tax should be handed over to be administered by that department; The difficulty has been that in this Province the provincial treasurer has no ade- quotc machinery for the collection of income taxes. The personnel is not sufficiently large. 1f we were to commence a systematic collec- tion of our income tax we should require increased office space which would mean moving out of this congested building. It would also mean additional machinery. and a considerable. additional staff. To meet that difficulty we feel that it is only right and expedient that we should accept the offer of the Dominion Government to collect our income taxes. We feel sure that this will result not only in a. greatly increased revenue from that item, but it will set free the machinery and personnel of our treasury department for a more active and more efficient adminis- tration of the other items of rc- vcnue. As I said before. we do not purpose to make a single increase nu any of these items of general taxation; no increase in land tux, no increase in personal property tax; no increase in income fax. In fact, Mr. Speaker. the govern- ment purposes-mnd a bill will be introduced to that effect-to pro- vide a. loliglfolt want in the ex- emption of a larger portion of the income of msrricd persons and others who have to support chil- dren or other dependents. This we feel will be of great advantarie to those taxpayers who have to support n family on a. small or limited income. "As I have indicated before, the government purposes to reduce taxation in another direction, namely by making to fishermen. farmers and other operators of stationary engines a full rebate of the gasoline tax. One section of the press editorially stated not long ago ‘that the government was tax mad. I submit, Mr. Speaker, that anyadjustments of taxation which we have made are against those who are capable of paying taxes; whereas these two reduc- um'II-flm relief cf married per- m“ wnh/familles and the relief of fishermen and others in the di- rection of gasoline taxes - are being made by this government for the purpose 0f relieving those classes of citizens who are least able to pay taxes and to contribute to the provincial treasury. The only persons who will pay an i11- ’ income tax are those who up to the present have been con- cealing the true state of affairs of their income from the provin- cial government. "Raving briefly outlined the sit- uation as regards revenue and ex- penditure, I wish to deal very briefly with r-c-ioosed capital ex- penditures f the year. Rights of way. $2,000; mrmanent bridges. 08,000; steel culverts, 015,000; renovation of the Law Courts building. $15,000. Law Courts Building "I think perhaps there is no sug- gestion which has so constantly and persistently forced itself on the attention of grand juries in this province as the condition of the Law Courts building in Char- lottetown. I utas speaking to an English gentleman the othernlght and he told me that he was a member of the grand jury in the year 1016. and the grand jury then brought in a recommendation that the government should do some- thing to remedy the deplorable condition of the Law Courts build- ing. Sinoe 1916 practically every grand jury that sits in that court has made its unavsillng recom- mendation that something should be done. An examination of that building shows that its unsatisfac- tory condition is not confined to the surface, but that substantial renovations are necessary. The fire insurance underwriters have wam- ed us that the building is a posit- ive danger from the point of view 0f fire risk. With all these things in vie-w, with the urgent recum- mendations which we receive every year from grand juries who sit there, the government finally came to the conclusion that the time has come when something must be done to remedy the state of affairs hazard and the electric wiring haz- ard which is there at the present; to make the building at least sightly and presentable; to make some minor adjustments among the various rooms and divisions cf the building which will bring it more up to date and make it more serviceable for its purpose. "Renovation of the Court House, Summcrsidc, $3,000. That building to the ordinary public view 15 1n pretty good condition. but an ex- amlnation of the exterior brick work shows that a great dcul of the mortar is in barl shape; that it is falling out in many places: that the bricks are losing their support, and that the strength of the structure is gradually being weakened and will greatly deter- iorate if it is not taken in hand at an curly time. It is also felt that the furnace in that building -a.u old antiquated furnace-is not giving adequate service; it lS using an unconscionable amount of fuel and not giving a proper amount of heat. -For these reas- ons it was felt that a new furnace must be puccd in the Court House at Summsrside, and that at least srrne mesure must be taken to protect the brick-work and mor- tar work on the exterior and parts of the interior of the building, ugninst the inevitable dilapldntlcn which will take place if it were allovzed to go uncared for. “Similar renovations have long been overdue to the Court House at Georgetown, for which we have an estimate of $1,500. “Renovations to the Souris Ex- hib"‘on buildings: I may say that the Souris exhibition buildings are the only exhibition buildings in this province which are owned by the Government. I had the plea- sure of attending the Sour-is Ex- hibition for the first time last full. An examination of the condition of the roof of the main building would indicate to anyone that it was going into a state of very ser- ious dllnpldation. In fact, as a gentleman observed, it was vcry fortunate that the day was com- paratively flne, as it is very diffi- cult fc imagine what could be done in that building if they hap- pened to have a. rainy day on the day of the exhibition. We have therefore an estimate for shingles and other repairs of $3,000. "Equipment and agricultural class-room, Prince of Wales Col- lege: a sum sufficient. National Park "National Park: a sum sufficient. It is anticipated that the Domin- ion Governmcut will shortly make the formal proclamation declaring the National Park of Prince Ed- ward Island to be opened. Mem- bers will recall that the part un- dertaken by this province is to furnish the land necessary for the establishment of the Park areas. The development of the Park areas is undertaken and carried out by the Dominion Government. While l-hc sltc has been chosen, the land expropriatcd bv orclcr-in-council, only a few settlements have been made and the great number of the settlements with the former own- crs of the properly still remains to be made. ,_ _ __ "Fisher-men's loans: o. sum suffi- cient. to be determined according to the terms which we are ableto arrange by agreement with the Dominion Government. I will leave the details to be enlarged on by the hon. President of the Exc- cutivc Council. who is in charge of lhe administration of this item. “Unemployment relief projects, in cooperation with the Dominion Government: a sum suificlenhalso dependent on on agreement to he entered into with fhc Dominion of Canada. In that connection 1 may remind the House tlfat a similar situation obtained last year. and that as a result of the efforts of the Government, several trips tui- dertaken to Ottawa by several of the members of the Government. with technical advlsors-Jpicnics’ as_thc nress is very often pleased to call them-and as the result, if I may say so, of n. considerable am ‘ of ingenuity on the part of the Government and its advis- ors in working out schemes which would meet with tho approval of the Dominion Government. we were able to secure from the Do- minion Government in 1936 con- tributions to our unemployment projects within the province of SEBJTII. This money along with the provincial expenditures forihe some purpose were expended on the completion of the paved high- way from Hunter River to Hustico. the building of a wooden bridge over the West River, the sub- lffldlng of a considerable mileage of trun‘; hitrhvmys. the improve- ment of loy-‘ying sections of road. Ind other improvements, which in that building, to remove the fire r or the glass type): making. Now GOOD T0 THE extended not only through every electoral district but through cv- ery polling division in this prov- ince. In all there were 53 unem- ployment projects, of which a great many were divided into a large number of subdivisions. "This Dominion money had to be supplemented by a considerable i expenditure of 1)l'0\'ll1CiBi money.‘ As we were able to get a contvib- ‘ utlon of $258,000 and tipxvnrds from the Dominion Govcrnmcnt. our share of the oxpmscs on those projects amounted to $237,000; and yet, Mr. Spcnkcr. with that coli- siderable expenditure mi more ori less pennancnt unemployment pro- jects, we were able l0 carry outi the ordinary administration of tho province for the your with a total , increase in tho provincial liabilit- ies of only $215,000 as against an increase in 1 35 of 5052.000. Paved Highways “In addition to those expendit- ures wc still have n demand — a constant nnd insistent. demand from cvcry part of the province. for paved highways. hardsurfnccd roads. As I have staicd before in this House, it is the considered volley of this Governlncnt that 1r we are to embark oun pvomnmmc of cxpcnsivc pavement. if wr- are even lo continue a programme of extensive standard subgradinr: nnd improvement of highways, tlicre must be some new source of rev- enue found. Our programme of balancing the blld-Eflt was limited to a; reduction of cxru-nclilurrs which would balance the budget at the present standard of public scr- vicc in fhc province. If the stan- dard of public service is to be substantially increased. eltlicr by acceding to fhc insistent (lctuzilld for hardsurfaccd roads or by a continual extension of tho policy" which we bcgnn last year of standard subgrnding, llicrc must bc new revenue. As the Monfrcnl Star said, it is n. vcry good plan to out your coat to, suit your cloth. “The question arises. if paving is to be undertaken, if stibgrad- ing even, is to be conflnuedwhat is to be the source of the neces- sary increase in rovcnuc? I don't sav the wholoof such expenditures 2 GRINDSL should be paid in the year in which the expenditures are made; YOU'LL FIND THAT THE NEIV DBIP GRIND MAXWELL HOUSE MAKES THE RICHESB SMOOTHEST ‘DRIP COFFEE YQU EVER. r TASTED. ERE’S grand news for those who prefer to make coifce by the drip method (either metal drip coffee maker You can now get the world's most famous coffee blend -—Maxwell House-fin the perfect grind for drip coffcc Ground to exactly the right degree of fineness-never coarse-never powdery-always uniform, the New Drip Grind Maxwell House makes superlative drip coffee- smooth and mellow, with a rich full-bodied goodness that you never tasted 1n drip coffee before. Why not get a tin of the New Drip Grind Maxwell House today? But if you prefer percolated or boiled coffee, get the Regular Grind, of course. but there should at least be a sinking fund sot aside to retire any borrowings during the period of permanency of the work construc- tcd. What is to be the source of such a sinking fund‘? There has boon a suggestion that an in- creased assessment should be pluc- crl on those resident lilXDilYPTS whose lauds adjoin the pavements. I lhink fherc is some merit in that suggestion. because undoubt- ccily tlicrc would be some increase of vnluo. But it seems to me that it would be ridiculous f0 expect that ilic tuxprrvci" who linppcncd to hc rcslcllnr: along the pavements sahould pay the whole or even a substantial part of the increased cost of constructing those roads; because if rvc ask ourselves tho question us to who is demanding improvcd iiiglnvnys. or wlio hone- flls chiefly from them when they are constructed, the answer ‘n every case is the same-the mot- orlst. He benefits not only from increased comfort and pleasure. but also by an actual saving which hc makes in the cost of his gaso- Rcvonue 1934 Road Tax S 46,300.00. Crus Tux 202,600.00 M. V. Reg. 100,870.00 $ 349,710.00 Less gas rebates 27,700.00 $ 322,070.00 Total revenue 3 years EXPENDITUR .: Maintenance roads 241,000.00 Maintenance bridges 47,000.00 Int. 8c S. F. Highway Bonds 1922-1032 80,000.00 Int. its 8.1“. Road Mach. Bonds 13,000.00 Int. d: SF. National Highway Int. dz Si‘. other Capital Highway imps. nnd bridges 34,400.00 $427,300.00 Total expenditure 3 years DRIP‘ GRIND AND REGULAR Foa Friendly Stimulation TURN TO THIS TRULY RDASTER-FRESH COFFEE When you’re feeling tired and jaded, try drinking a cup of Maxwell House. Sec for yourself how its friendly stimulation rc- vives you-—vlrccrs you——sierls you of! anew. Maxwell House is a matchless hlcnd of the choicest of coficcs—alwnys truly fresh because it is packed in a supcnvacuum tin -Lhe one sure way of bringing you coffee as fresh and wholesome as the hour it lcft the roaster. MAXWELL HUIISE COFFEE LAST DROP-VROASTED AND PACKED IN CANADA l»: lit-if linc. and his rcpairs. But the mot- Tux 1w rmlrhw] orlst comes back with the reply- and he is supporlctl bv tho prcss and others in his contention-flint if all of the moncy wr- nvo nmv collecting from ntotor \'(‘ill\‘iC sotir- ces were expended on the Yililii“ we could pavp the whole Irimiti , mom, “pr-thy, without any additional inxti-y in j n“ mo n ~' ~ order t0 answer that. contention I gjnkllytg have prepared a brief summary of] znilirit .t . t . the revenue and cxpcnditurr: iron } (p5 of yrxfiri my, rm; highway sources for the _vcnrs i034, i . U » 1935 unrl 1036 I have lukcii tlu- t H _ v thrcc items of roarl fax, gasoline i; lax nnd molor vehicle rcgistrnliuii. ‘ I have iclalled llicin and I horn ‘ also totalled the expenditure or Gris Wt: ivwn l.) " ' r {lac llltllml. fintilr‘ rind of all 4i, "As :1 vtvw‘ fli_\',~'l'~, .itnl taxi hour-lit v! fir; lilo-e llivr c ‘ rl itvw v, '1‘. flint, roads, bridges and high“ i v m. throughout tho provinrc zlut , ,-, rwrfly those yours. I have endeavored to - 1 r “,1; ho do this with morn than filll‘ll“-‘» l"i . t, 1g r-rqjtg the motorist. and I lizivc mn/lr- w . ,,,,,,,_ conservative cslimuic of tho iv ]_ -,,~,,-,»._, ., ,1 ,-,-,»,-p,r_,¢ {mm penciltures, nnd have included tiio may, _..(,,,,-,-,. "1 mu h.» lL-iid in ordinary maintenance 0n road» and bridges, the statutory lntcrcst nnd sinking fund on the highwny cnulilr‘ list‘ bonds issued bot-upon 1022 and‘ 1932. Tho flgurrs are :1.<'f<il‘.n~\.--». toss ' were $ 42,600.00 5 50-90mm .. s ivom‘ p’ olmc tux is 212,400.00 Zillljrtkliin fl. (‘rtvnii flit \ilil'lli'.‘lillilfi , ~'. ilt~ ilill l1 liiiit- 01' lilvr-i ‘A, 102,500.00 lilivitttu ‘l! L‘ shmzo‘ -—-"*""‘ """*"~" Q,-_,-.115iy~_ or p - l, ‘.1 S 35750000 f» 394,300.00 piflPFil m trio . . , 1“1"'l 3259900 ‘JLQDOjYJ vslinmlwl tor fiv- p- ' rtuv a‘ ___ __V__ _______ M $40000, :\.l'_'i ul-wlr it»! shows‘ s. s25 000.00 a soon on ""_ p ' fij',i.i'iii,i,ii,_ifi.i, _ u- -- 111,- H_ ~41 "iv ,. v.1 in! $1 00901004) 1hr‘ wlirvn- ill iltv tzunlttirl! your. i‘. ‘ ‘Fliilllillll 1"" tin ‘oi-hi .. " tlrrri _ , ilmi. cvcrv z-cnf of flu‘ im-iw-ri rd 338-0000“ 187-500“) lirxaiimi uliich h" uiil liuv 111i! 53,300.00 2120000 your and in <l\f'f"‘|"illl'.‘ your.- lv‘ . (if grislvino i‘1\', \"'ll 1:0 tot".- urrs 1hr‘ cviv-fnir-fltilt (if ilflfiiflil" 8600000 86mg“) ‘r-rr-rzi and imn wvl liiahwavs. 1 “Tho (lott- 13,000.0U lilfhiiitlil lll(iiill'l'\i in ‘it 1b" making unv h s whatever 0:: i. this ilrm. For rm‘ thing. I thin 3°'°°°-°° 3°'°°°°° u. ls prcliy clear tom. a l0 cent lax on gasoline in 1937 s noimlre than a‘ 5 cent its: an outing 4_ ‘(lug ton years ngo. or 1e P6080! “imam 6 m with the modern automotive con- >—'_"' structlon. automobiles d?!" I 355530000 $402,000.01: much greater ramm- on "is Ill- —-—-—*'"* i"1"-="~_:'LE '" ~ Cont! fled on e 5) $1,610,100.00 ‘ “ p“