VARIOUS DOMINION ITEMS.

Hokitika Guardian, 26 August 1921, Page 4

VARIOUS DOMINION ITEMS.

, TELEGRAMS.

[BY TEI.EOUAPIf —I’EH I’HESS ASSOCIATION] BUILDING TRADES UNION. WELLINGTON, August 23. Details regarding the proposal to unify all workers in the building industry in Wellington are still being considered. The proposal is that the various sectional unions, such as carpenters, bricklayers, plasterers, etc., should ho replaced by one trades union organisation, and that all artisans concerned should work under one common award. An immense amount of time has been expended by the executive of the Building Trades Federation in discussing the constitution of the proposed new body. The next step will be to take a ballot of all members of individual building trades unions for the purpose of ascertaining whether they are in favour of the scheme. Similar action probably will follow in other parts of the Dominion. SIR WILLIAM HER RIFS. WELLINGTON, Aug 23. While in England Sir William Kerries, who returned to-day by'the Rimutaka, took the opportunity of attending some of the meetings of the Imperial Conference. Sir William said ho valued very much the experience of meeting the groat statesmen of England and the Dominions. The attitude of English statesmen seemed to be to give all possible information to representatives of the Dominions. Even to sit in thi' ancient, well-known Cabinet-room in Downing street, with a. picture of Sir Robert Walpole looking down on the gq the ring of modern statesmen, was an experience in itself. He found everywhere that New Zealand was regarded as one of the most loyal of the Dominions. All people were loud in their praise of the New Zealand soldiers. He had had a good opportunity of meeting many of the principal men of political and financial circles, and with all of them he found a general feeling that Mr Massey had made good that lie was looked upon as a safe and sound man for the Empire. Mr Massey was looking very well when Sir William Herries left him, though he had had an exceptionally busy time. The other members of the Prime Minisparty were also in the host of health. INCOME TAX BURDEN. WELLINGTON, August 23. Protests against the high taxation inflicted on trading companies wore made to-day at annual meetings of Shairehold/Ts.- In both cases it was pointed out that the tax collator gets half the earnings. Addressing the sha'-ebobhvs of the Wellington Woollen Manufacturing Company, the chairman. Mr W. 11. P. Barber remarked: “What is termed the burden of taxation lias frequent quotation just now. Every joint stock company of any earning power feels that the present rate of income tax Ss !) .‘I-Td in the C. is an intolerable burden. Tt is not just to company shareholders that they should have to meet such an imposition. The so-called maximum tax of 8s Od '3-id is not the limit companies pay, as it is imposed on many charges rightly placed on the debit of profit and loss hv prudent business men. the total thereby being much increased. The Tax Department frequently draws more from a company than do the share-lndd ers. Whatever dividend is aimed at the amount of earnings to pay it must he doubled to meet income tax demands. Protests to th ( . Government have been numerous and will, no doubt ' continue.” The burden of taxation carried by the Wellington Meat Export Company ruder the adverse condition of the world's markets was the subject of strong comnient by the acting-chair-man, Mi .1. W. Marshall, at the share, holders' annual meeting. Mr Marshall made a suggestion for alternative methods of income taxation. “The incidence,” ho said, “of the present direc t taxation and the heavy burden now placed on all large trading and manufacturing companies is not realised he the shareholding public. We arc told that the cost of production must come down. We know it must if we are to live. \ very large proportion of tile increased cost of running is accounted for by the -heavy taxation of income of companies, one half of' the net profits. In other words to earn a dividend of 8 per cent charges have to be high enough to pay another 8 per cent in taxation. The Government which provides none of the capital, is now taking ns much of the yearly profits a* the shareholders who carry the risks of the business. It is grossly unfair that shareholders, the great majority of whom are small investors should have to pay the maximum rate of their holdings, v bile probably not 5 per cent of the shareholders pay the maximum rate- on their incomes Tin* strongest pressure ought to he brought on the Government to all it the present incidence from the companies to the individual taxpayer, who should he taxed in proportion to his real income.”

RAISING LOAN'S. WKLLIXGTON, August 2.T Tlic Government was severely criticised last session for not proceeding with the application of the conipulsoi'v powers in the Finance Act to enforce contributions to the soldiers’ loan. I| was Irightly pointed unit that many taxpayers; knowing of the power to enforce contributions up to three times the amount of their current income taxpayment, had not waited for tho demand, Imt had paid, whereas of!' who shirked the obligation appeared ! be getting oil. The criticism became all the more pointed when it was c, : dent that many public companies and large taxpayers had had to borrow from their banks to lend to the Govertimc at the lower rate of interest, ■‘There might be people who could have paid,” said the prime Minister when the matter was raised in the House. “I hear of people going about boasting that they could have paid, but were not going to do so; but the v are going to be compelled to pay, and the other people will be called upon later on.” This statement was made at the ( ,nd of March, 1021, during the short session when Mr Massey was aware of the difficulty in financing the extraordinarily heavy imports then coming to hand "Tt would bo simply criminal to press people at present,” was his opinion, but twice during his statement lie indicated an intention sooner or later to carry out tho compulsory power. Now the time seems to have arrived. Tim Income Tax Department has been going through tho tax schedules and steadily preparing the necessary notices. This process has been completed and the demands will be made. In view of the large response to a offers

on private debenture issues during tin* last four months, it is evident that a large amount of capital has been held for the golden opportunity, but tin* (lovcrnment is not going to allow unfair discriminalin by letting off financial shirkers who have been abb 1 to nearly double their interest elsewhere. Provision is made to cover cases cl hardship, and the Prime Minister in liis last recorded statement on l!’* matter, assured the House that he was not going to cause hardship.