THE PROPERTY TAX.

Globe, Volume XXII, Issue 1983, 2 July 1880, Page 3

THE PROPERTY TAX.

PUBLIC MEETING. A mooting convened by requisition to the Mayor for the purpose of considering the Property Tax Act was hold last night in the Oddfellows’ Hall. There was a large attendance, the hall being filled. His Worship the Mayor occupied the chair, and said that they would see from the paper that a requisition, signed by 192 ratepayers, had been presented to him, asking him to call a meeting to consider the property tax. He had considered it his duty to call the meeting, but he wished it distinctly to bo understood that ho was in no way connected with the movement. [Cheers.] He was there simply in his official capacity, and as feeling bound to call a meeting when so large a requisition hud been presented to him. As they would have seen from the papers, the Government intended to modify the proposals of the property tax, therefore no one could yet say what were really the propositions of the Government. Hence, until they had the proposals before them, he thought the calling of this meeting was premature. Like a thorough Briton, he was opposed to all taxation, whether property or income tax, and he said distinctly that there could be no more inquisitorial tax than the income tax—[Cheers] —and this was one which he should never be in favor of imposing, unless under severe pressure—no less than the anticipation of national bankruptcy. This, of course, was only his individual opinion. He would now call upon Or. Ayers, who had taken a prominent part in this matter, and he trusted that they would give a fair hearing to everyone, and assist him (the Mayor) in maintaining order. [Hear, hear.]

Or. Ayers said that there were others who had taken a more prominent part in this movement than he had, and he was somewhat surprised that after so influential a requisition the gentlemen signing it had not come forward and represented their signatures. [Hoar, hear.] He would, however, tell them in a few words what he thought of the property tax. The resolution he intended to propose was as follows: “That in the opinion of this meeting the property tax in its present form as sought to be imposed by the present Government is inquisitorial in its character and oppressive in its bearing upon the manufacturing and trading portion of this community, and that the Bill should either be so modified as to remove its objectionable features or be repealed and a more equitable measure enacted to provide the funds needed by the Government.” [Loud cheers.] His Worship the Mayor had said that the meeting was premature. If this were so, the whole of the meetings which had been held in other parts were premature. [Cheers.] "What ho said was this, that had it not been for the apathy of Christchurch they would never have had the property or any other tax. [Cheers.] They would still have had their provincial institutions, and be a prosperous and happy people. ["Cheers.J Ho further said that the i tax was an oppressive one, and that on a class which would feel it most heavily. Ho referred to the trading class. Ha had gone to the office and found that all the stock in their i shops, whether they sold it or not, was to be i taxed year after year, until really the whole \ of it would go away in Government taxes, i because there was no certificate of having i paid duty, but every year the Government would come and tax the stock on their shelves. Then again, their manufacturing , interests would bo taxed to an oppressive extent, and not only so, but also the very wages paid to their workmen. All the authorities on taxation said that they must not tax the springs “of local industry. If they did so they would find that the people would have no hope and would think seriously of leaving this country and going to one where a more liberal policy was in force. [Cheers ] Ho said that he was in favor of an equitable taxation, but he said this, that it was a waste of public time for their representatives simply to go to Wellington and abuse the Government which had succeeded them. [Cheers.] He was in favor of measures, not men, and he said that the land tax, if modified somewhat, would have been a very good tax. [Cheers.] The whole of the machinery for the collection of the tax was inaugurated and officials appointed—yet when the present Government came in they did away with it, and put the property tax, which was full of imperfections, in its place. In a young country like this indirect taxation was the proper system to go on. He did not moan that indirect taxation should bo made to bear the whole of their burthen. Part should be put on in the shape of a land tax, which was one of the fairest that could be imposed, because they had a number of political railways, and it was only right that land thus improved should pay for the increased value put upon it by works done. [Cheers.] Let them send members to the House not because they were influential or rich men, but because they wore men of common sense and education. [Cheers.] His great objection to tho property tax was that it would not reach those it should do. It did not touch the professional men, because there was no tax upon them such as ho had explained to them existed upon the trading community. The reason why they should have called upon the Government to reduce their expenditure was that they now had a perfect army of officers appointed under this Property Tax Act at salaries ranging from £2OO to £SOO per annum, They had now some hundreds of men perfect drones in the public service who were drawing large salaries and doing nothing. Lot them drive these people out, [Cheers.] Let the apathy of Christchurch be a thing of the past ; let them be up and doing, because even now their apathy was quoted against them in the House. [Cheers.] It had been said that they should sell their railways and their Crown lands. To tho first proposition he would say no, to tho second yes. He was in favor of selling the Crown lands of the colony, but not their railways. These would bo in a very little time, if well and carefully managed, a source of immense wealth to the colony ; but they must see that they were honestly administered by men who knew their business, and not men who were appointed merely as being the servants of or useful to the Government in power. [Cheers.] He said that all [honor was due to the Royal Commission who had gone through the country, and ho hoped that they would not leave their task until they had swept away all these abuses. [Cheers.] Now there was just one point upon which he wished to speak, and it was this. They had now amongst them a large quantity of men who were walking about tho streets seeking for work, yet he had read that the Road Boards of Canterbury had hoarded up in tho banks no leas than £300,000. Was it not a shamo—a burning shame —that such a state of things should exist, and that with this large amount available for works, a wail of distress should go from here to their mother country from those who had come out here with a view to better themselves. [Cheers.] Ho said that they should have an opportunity of keeping up tho dignity of labour which was tho characteristic of Englishmen. [Cheers.] Any Government who allowed those Road Boards to go on in such a way as this was not deserving the confidence or support of the people. [Loud cheers.] Mr Atkinson desired to ask Mr Ayers what wore his opinions as to the imposition of customs duties ? ; The Mayor said that tho resolution should • be seconded before any questions wore asked, i Mr Treadwell seconded the motion, and in a lengthy speech advocated tho imposition of

a land tax as against the property tax. The tax was really a stock tax, and taxed the people who improved their land and the working men’s wages. [Mr Treadwell went on to speak at some length as to the early history of Canterbury and the dealing* of Mr J. E. Qodloy with the squattersJ. Mr Briggs rose to a point of order, but was not allowed to proceed.

Mr Treadwell then went on to refer to the dealings with the squatters in the early days, accusing Messrs Hall, Moorhouse, and Ollivier of having robbed the working men, and to give a history of his personal dealings with pre-emptive rights. The Mayor said that if Mr Treadwell continued to detain the meeting with his personal reminiscences, he should vacate the chair. It was a meeting to consider the Property Tax Act, and not to listen to Mr Treadwell’s personal history. Mr Treadwell resumed, and went on at some length to' argue in favor of a land tax. Mr John Lee said that if Mr Treadwell now retired he would have the meeting with him.

Mr Treadwell said that the ten majority on the introduction of the Property Tax Act wore all professional men who wore not taxed under the Act. There wore men in that room, who perhaps were in receipt of £2OOO a year, who would not bo taxed because they had simply to allow their bills to accumulate, and then they would have their property exempt from taxation. Was that right ? He said No. [Mr Treadwell then gave the names of those voting with the majority in favor of the introduction of the Property Tux Act.] In Canada, whore the population was larger by far, the expenditure on the Civil Service was a great deal smaller. The two rulers of the United States got less than the salary paid to the Governor of New Zealand. If the property tax was imposed, at the end of the year there would still be a deficiency of £273,000 —or even worse than this, as in about eighteen months they would have to meet one of £700,000. The remedy for this was to go to the root of the infamous system of extravagance which had caused the necessity for taxation. ]Mr Treadwell then quoted from Major Atkinson’s speech in the No-Confidence debate.] He might say that when this resolution was carried he had another to propose. [Oheers.l The Mayor said that he had had a paper handed up to him signed by John Matthews, which was proposed as an amendment. It was as follows: “That this meeting is of opinion that an income and land tax is more suitable to meet the present deficiency than the Property Tax Act.” [Cheers.] He thought this was scarcely an amendment, but might go as an additional resolution. There were loud cries for Dr Turnbull, but he did not come forward.

Mr Hewitt said he came forward to oppose the ideas of the two last speakers. [Uproar.] Ha said this, that the income tax was far more inquisitorial than the property tax now proposed. [“No, no.”] The Commissioners appointed by the Government were of course interested in screwing out as much as possible. [“Question.”] He contended that this was the question. [“No, no.”J Well,he appealed to the chair. [Uproar.] The Mayor said that he thought the meeting should hear the gentleman, as they bad given Mr Treadwell considerable latitude, and that gentleman had referred to the income tax.

Mr Hewitt said that he knew what he was talking about, and he said this, that there was no more inquisitorial or objectionable tax than the income tax. As regarded the land tax, he said this, that it was a theory on the part of a man who objected to any man holding a piece of land except from the Crown. That was Mr Stout’s idea. [No, no, and a voice “It is a lie.”] He (Mr Hewett) had read Mr Stout’s speech, and he contended that it was so, [Renewed uproar.] The Mayor said he had every desire that the freest discussion should be had; but if such language as that just used by some one in the Hall was allowed, he should either leave the chair, or the person who made use of it should be removed, [Cheers.] Mr Hewitt continued to say that the land tax, so far from being a just tax, was an unjust one. [“ No, no,” and uproar.] They might remember that many persons had out up their land, and that persons carried away by the land fever had paid far more than they could ever hope to see back again. Yet they were to bo asked by a land tax to pay for the unearned increment of the man who had sold them the land, while they would never see back what they had paid for it. Was that a just tax ? He said no. The property tax, he desired to point out to them, would exempt the working men with their small piece of property, and even the traders would be exempt to a largo degree, as their debts owed by them could be put as an exemption. [Uproar.] Hence capital, as was right, would pay the tax. If a man had property, he said it should bear a fair share of the burdens of the State, that State which protected this property. Therefore, he said that the property tax was the fairest one that could be imposed under present circumstances. As to the imposition of increased customs duties, that simply meant that the rich man would escape. [Hear, hear.] He said that the time for the imposition of a property tax had come and that it would be imposed. [“ Ob, oh,” and uproar.]

Mr J. P. Oliver said that he considered the statesmen of New Zealand were not worthy of the name. They were worse than the schoolboys of the colony. The exemption of which so much had been made was merely the pepper dust thrown into their eyes by the Premier, which also served the purpose of concealing the rottenness of the measure. [Cheers.] The statesmen of this country had taxation on the brain, and unless they checked them they would have to bitterly regret it, as well as their children coming after them. [Cheers.] Let them look at what their Government—their contemptible Government — [cheers] —was doing. They were obliging the newly-arrived immigrant to go out under canvas in this inclement weather, and to ask their Government to allow them—fathers of families—to earn £1 5s per week, and then the Government proposed to take from them £ll per annum per head in taxation. This was charity as cold as the blood of their Premier. [Cheers.] He begged tho working men not to be led away by what was said to them under the lamp-post, [Hear, hear.] Thousands were pouring into America weekly and tho American Government would never answer their application. [Cheers.] What was there in America that was not in New Zealand. They had the richest country in tho world, and it was for them to develope its resources to make it a home for themselves and their children ; to make their laws. But he begged them never to desert their country, but to stand shoulder to shoulder and register their votes. [Cheers.] Let them then send men into their Parliament to represent them properly, not os they were now represented by sham representatives. [Cheers ] Did Mr Stevens represent them ? [“No, no.”] Could any man represent them properly who lent himself to tho introduction by stealth of a Bill taxing them for fire prevention, and who advised the Government to re-impose the duties on tea and sugar, which would fall on tho working man, [“.No, no.”] He said no. Let them then say to gentlemen such as this, who were doing what they should not do, representing themselves, that they had no further need of their services, and put in men who would represent them honestly and fairly, and stand up with their true friend, Sir George Grey. [Cheers.] He was opposed to tho property tax because it was inquisitorial, arbitrary, oppressive, and unnecessary. [Cheers.] What he said was this, that they should tax the money drawn from tho country by absentees, [or as suggested by a gentleman just now, by a tax on wool. [Cheers.] For these reasons he would support the motion of Or. Ayers. [Cheers.] Or. Ayers, in reply, said that ho should never object to pay a tax on active profits with pleasure. He thought it was not fair to tax stock which remained on his shelves for perhaps a year in dull times. Again, there were a number of houses in Christchurch the personal effects in which would be a fortune to many, and he would like to see this description of property taxed. He contended that tho property tax as proposed was most inquisitorial. It might bo that the Government wore going to modify the provisions of the Act, but that was owing to the pressure brought to bear upon them, and not from its own wisdom. He said that tho fairest tax was a land tax. [Cheers.] Let them look around them in Christchurch and see the numbers of sections of land in good positions lying idle. Why was that ? [A voice—- “ Because it’s church property,” laughter.] Well, it might be church property, but the reason of it was this, that it belonged to persons who could afford to let it lie idle in the hope that they would get a higher price for it, and they know very well that under a property

tax this would not be reached j but what would touch it would be a land tax. [Cheers.] He desired to take this opportunity of replying to a question asked of him some time before by his friend Mr Atkinson. [Hear, hear.] That gentleman, as he understood him, desired to know what Customs duties he (Councillor Ayers) would be in favor of imposing or increasing. Well, he would tell him he was in favor of taxing luxuries. (Cheers,s It was not for him to say what these luxurio were. That was for the Government to define. He again contended that the land tax was the fairest and most equitable tax ; far more so than the proposed property tax. [Cheers.] For the reasons he had adduced, he hoped they would carry the resolution he had proposed. [Cheers.] Dr Frankish said he came there that evening expecting to hear something on the property lax as proposed by the Government. The proceedings, however, had reminded him very strongly ot a theatrical performance, beginning with a farce. [Uproar.] He had something to say, and if they would listen to him he would say it. [Cheers and uproar.l The condition of the country was such as should receive from the people of the colony the most earnest consideration. He was not a Hallito or a Greyite. [Oh ! Oh ! and uproar.] Ho did not say who had brought the country to the state it was in, but the fact remained that from habits of extravagance they had got into a critical state, and the question came now, What was to be done in order to extricate the colony from the abyss on the brink of which they were ? The question before them was, that having lived as a people far beyond their moans, they must consider the methods ot getting out of the difficulty in which they now found themselves. [Uproar and cries of “Question.”] Ho would read the amendment, which was as follows—“ That in view of the deficiency in the revenue of this country taxation is inevitable, and this meeting pledges itself to support a property tax [“ Oh, oh,” and uproar], and invites the representatives of this city to assist the Government in imposing it.” [Uproar ] Well, if they were Englishmen, they would listen to both sides of the question. They must not repudiate their public debts. At all hazards they must pay their public debts. [“Question.”] This was the question, and he was going to show them that the property tax was the fairest that could be imposed [Uproar.] Well, he said this, that the Government who had come in showed the earnestness of their purpose by imposing a tax on themselves, and this was the property tax. [A voice :“ Go to Leeston.”] Well, what did they propose to put in its place. [“ A land tax.”] Let him tell them that if there was a more unfortunate class than the unemployed, it was the farmers of this community, and by imposing the land tax they were not only taking away the bread—for they had none —but the water which kept the unfortunate farmers alive. [Uproar.] He said that the property tax was the most just that could be imposed. [Uproar.] Well, what would they do to meet the deficiency? [“An income tax.”] Well, did they know what an income tax was ? [Uproar.] It had been said, put the duties on sugar and tea. Well, who would pay the duties ? Why, the working man. [“ No, no.”] He said it was so, and that under the property tax the working man escaped. [Uproar and “No, no.”] Well, if he came under it he could afford to pay it, as he would bo a wealthy man. [Uproar.] But a land tax would crush out the small landed proprietors. [Uproar], Mr Atkinson seconded the amendment.

Mr Pratt briefly addressed the meeting, contending that had an income tax been introduced there would have been a greater howl of indignation than now. Why he did not think that there was half a dozen in the hall who would contribute a shilling to the tax. [Uproar.] Hr. Frankish’s amendment was then put, and negatived, amidst loud applause, by a very large majority, about fifteen voting for it.

The original motion was then put, and carried by a still larger majority.

The Mayor declared the resolution carried by a very large majority indeed. [Cheers.] Mr Matthews then came forward, and moved—“ That this meeting is of opinion that a land and income tax is more suitable to meet the requirements of the present deficiency than the Property Tax Act.” He said that they should tax these large proprietors at so much per acre. Let thorn tax their Native lands and their Crown lands. Should they tax an industry such as that established after years of hard labor by Mr John Anderson. [“ No, no.”] Dr. Frankish had said that the working men would not be taxed. He said they would. [Dr Frankish—“ How ?”] The tradesman who was taxed for the goods on his shelves must recoup himself, and it would be levied on the consumer, tho working man. '[Cheers.] What had brought the country to its present state ? Why, absenteeism. There was a very large proprietor passing through Christchurch the other day (Lord Lyttelton); did he pay a shilling ? He said no. Then, again, there were over 11,000 Civil servants. Let them get rid of the drones and hangers on and impose a land tax, so as to get at the large landed proprietors. [Cheers.] The beer tax was one which would cripple local industries. [“ No, no.”] The poor man was as willing to pay his taxes as the rich man. [Dr. Frankish—“ They don’t have to pay them under this Act.”] He asked the meeting to approve of the principle of his resolution, which was the introduction [of a land and income tax.

Mr Treadwell seconded the amendment, and desired to contradict the statements of Dr. Prankish as to the property tax being a just one. Mr H. E. Nathan said that he had an amendment to propose, as follows : —“ That this meeting is of opinion that the best means of raising funds to meet the present depression is by reducing expenditure and imposing a tax of id per lb on wool exported.” His opinion was that there was too much Government. It was like the “ Pinafore,” there was always somebody wanting something for his sisters, cousins or aunts. [Laughter and cheers.] They had sent a supposed Liberal from the Port, but he had been buttonholed by some one or the other, [Cheers.] The fact was they had too many members of Parliament, and whether the Government was Liberal or Conservative they were all tarred with the same brush. [Cheers.] If they reduced the members of Parliament they could reduce their expenditure, as now there was one civil servant to every head of the population. That meant that seven men out of the population had to keep a drone and pay £l5O a year. He did not intend that wool used in the colony should be taxed, but that only the wool exported. If this wore done they would encourage local industries, and would have a number of woollen factories started amongst them. They would then keep the wool in the country. [Cheers.] But the real fact was that they wanted to reduce the number of members of Parliament, and then they would have less to pay them. [Cheers.] At the suggestion of Mr Treadwell, the amendment of Mr Nathan was incorporated with Mr Matthews’ motion, and put as a whole.

Dr. Frankish came forward, but was received with uproar. Mr Pratt said that there seemed to be an impression that land under the property tax escaped. Now it was not so at all. Dr. Frankish again came forward and suggested that the proposer of the original motion should not accept the amendment. [Uproar.] Mr Matthews said that the tax on wool would reach the large runholders who, under all the taxation, had escaped. [Cheers.] Let them remember that there were a number of men who tried to get these district railways palmed off on to the public, but they were defeated. He would approve of the wool tax, because it would give an opportunity to the poor men to live. [Cheers.] If they did not got justice, then they should go to America. They should have the land because the land was for the people, and the people for the land. This was the opinion of John Stuart Mill and other great writers. [Cheers.] Dr. Frankish again came forward, but was ruled out of order, the mover having replied. The resolution as incorporated was then put and agreed to unanimously. Mr Treadwell moved—“ That this meeting is of opinion that with a view to reduce taxation purchasers shall do their own survey under supervision, and that all demesne lands in New Zealand, except pastoral lands, be open on deferred payments without deposit, and that all pastoral lands bo leased in 5000 acre blocks and not sold ; that the present administration is corrupt and entirely wasteful; that it be at once broken up as far as possible and delivered with the lands to the localities, and the railways, post and telegraphs bo given to the districts, the whole to be worked on a modification of the English Local Government Acts, so as to prevent the £750,000

deficit admitted by the Treasurer.” [Uproar.] A number cf persons at this stEge of the proceedings got up and left the hs 11 , and there was considerable confusion. No one seconded Mr Treadwell’s proposition. Or. Oherrill came forward sed moved—- “ That His Worship the Mayor sign the resolutions passed at this meeting, and transmit the same to the representatives of Christchurch for presentation to Parliament. [Cheers, and a voice, “ To Sir George Grey and not to Richardson. ”] He desired to contradict something which had fallen from Mr Pratt, which, if allowed to go uncontradicted, would go far towards militating against the force of the resolutions passed that evening. He referred to Mr Pratt’s statement, that not half-a-dozen persons in that hall would pay the property tax. [A voice : “He ought to apologise.] To this he desired to give a flat contradiction. [Cheers.] There was just the other point he desired to call their attention to, and that was that the property tax would act most prejudicially against the establishment of local industries. Lot them take, for instance, pianoforte making. The manufacturers of pianos had to keep on hand a stack of wood for years, and yet under this Act they would every year have to pay taxation. [Cheers.] He strongly opposed it. [Cheers.] The motion was then put and carried, and the meeting terminated at 10.15 p.m. with a vote of thanks to the Mayor.