WELLINGTON NOTES

Hokitika Guardian, 30 April 1923, Page 1

WELLINGTON NOTES

AJTXICIPAF ELECTION'S. UNUSUAL INTEREST. [Special To The Guardian'.] WELLINGTON. April 20. The municipal elections are in full swing to-day and are attracting more general attention from the public than lias keen the case for toil or twelve years past. There arc three candidates for the mayoralty, thirty-live for tlic fifteen seats on tho City Council, twenty-seven for the fourteen seats on the Hospital Board and eight for the four seats allotted to the city on tho Harbour Board. In addition to these elections there are votes to be taken on the proposed purchase of the Kelburn tramway by the municipality and upon proposed water and drainage schemes at Karon and Onslow. Ihe voters, thus, will have four ballot papers to mark in ouneetion with one or another of tho polls. So far the officials employed at- the booths have found the voting proceeding slowly on account of the number of papers to he marked, and already there has been more or le.-s congestion at some of the central booths, but otherwise the polling is progressing without any unusual incident. beyond the very pronounced activity of the canvassers specially associating themselves with the mayoral contest. At times these enthusiasts have displayed an amount of zeal that has been distinctly entertaining. CIVIC HOSPITALITY.

During the last week or two. Mr Peter Eraser, the Labour candidate for tho mayoralty, has been subjected to a good deal of heckling over his probable attitude towards distinguished visitors to the city in the event of his being elected to the chief magistracy. He lias not been particularly happy in dealing with the innuendoes cast against him in this respect, appearing to have at the back of his mind a suspicion that some of his waterside iriends would resent any concession he might make to the amenities of society; hut one of his ardent supporters discussing the matier to-day laughs at the suggestion that “Peter” a- mayor would be le.-s courteous to the King or to any ether distinguished visitor than either of his onpnents would he in the same position. “A lot of silly nonsense has been talked on this subject.” he said. “The members ot our party have just as much personal regard for the- King as the Reformers or the Liberals have, and probably far more tor vi-itors who are really distinguished. Anyway Peter will be representing the citizens of Wellington in such matters and lie knows what they want as well as Mr Wright and Mr McKenzie do.” Society, therefore, need not take fright if Mr Eraser happens to be elected. DOMINION FINANCE.

Even the newspapers here have been too busy with the municipal elections to take much notice of the "1- iiiancin! Statement” issued by the Prime Minister from Oamarn. Such criticism as the mass of figures has drawn forth, has been shaped rather by the party predilections ol tin- particular critic than hv any very tangible fact the figures disclose. Mr H. F. Holland, the Chairman of the Parliamentary Labour Party, was early in the field with the reproach that Mr Massey's U1.31-j.083 surplus had been obtained by the umlor spending of Public Works votes. Ol course the Minister has replied, quite correctly that neither the over-spending not the under-spending of Public Viorks votes lias anything to do at all with the matter. A surplus or a deficit is the difference between the pubic- expenditure and the public receipts appearing in the ('onsolidated fund, which stands altogether apart from the Public Works’ fund. A surplus has been described as the amount by which the Uovernmeul over taxes the loimii.'. and when in Opposition, even Mr Massey himself, applied this definition to the balances hi- predecessors brought forward. Circumstances alter cases and the Prime Minister is not singular in revising his interpretation.

ECONOMISING AND ACCOUNTING. People a little more acquainted with the public accounts than Mr Holland is. and no more favourably disposed towards Die Government, are directing their evitcism of Mr Masseys figures, not against the surplus, hut against the large increase in the Customs' duties and the alleged saving of some two millions odd in administrative expenditure. The Customs revenue during the year .increased by £93(i.83(i compared with that of Die proceeding twelve mouths and the < ritics hold Dial a huge part of ibis was due to the infill which Mr Dow) lie Stewart brought back ill Ills pocket from Australia. In any ease, they say, it is not creditable to the Government, while reducing the intome tax of wealthy individuals and tiio land tax of large property owners to impose additional burdens upon less fortunate people. Ihi-.. ol <oiiis . i an old lino of attack.* As for the alleged savings the critics poke tun at Mr Massey's item of £•!!(>, (KM. nicliiood in the increased revenue, which be explains" is a nominal increase only, wit u, the amended system of accounting. Then, what of the oilier Rems? MORE ABOUT TAXATION. EXPERTS disagree. WELLINGTON. April 27 To the layman, at any rale. Mr "• I). Hunt appears to have got the better of his argument with Mr G. Slimelilfe concerning the operation and effect of the company income tax. Mr Muni and Mr Shirtcliffe wc-rc members-of the Taxation Commission set up bv the Government last year. . r Hunt being Chairman ami Mi Shirtcliffe a substitute representative the Chambers of Commerce. 1 m main, difference of opinion among the members of the Commission had to do with the company income tax. one

section holding strongly that it was impolitic, as well as inequitable. lo phiee companies on the same looting i m. individuals in the gradation of tlic i tax and the other section taking the | opposite view. The members of the | Commission were unanimous m urging that the maximum gradation should not exceed os in the pound, but on tiio other point they wore sharp!;. »ivided. Eventually two reports came from the Commission, a majority report headed by Mr Hunt recommending that the lax should be collected from the shareholders according to their dividends and their liability as individuals, and a minority report urging that the present system, taxing the companies as individuals and leaving the dividends untouched, should be maintained. EXPEDIENCY. Had the members of the Commission been unanimous in recommending a readjustment of the tax along the lines indicated by the majority, probable the Prime Minister would hate given effect to their view.- He previously had expressed the opinion that the companies in particular needed relief. But with the Commission di-

vided on the ~on he deemed it desirable to leave the matter as it stood, and so t'pe bone of contention between tho experts has; remained. A little while ago Mr Shirtcliffe essayed in general ana somewhat loose terms to demolish some casual statements made by Mr Hunt at intervals in regard to the point in dispute. That the champion of the minority was not very precise in his promises nor very sound in liis conclusions may he judged from the extracts from Mr Hunt’s reply to his effort already published in this column and from the fact that he practically abandoned tbem to their fate when they were challenged. But on Monday lie returned to the attack with another sel of assertions, announcing that ii would be his hurt effort and to this Mr Hunt replies in the “Dominion” today. CLINCHING THE -MATTER. Here there is space f>” only a passage or two from Mr Hunt’s presentation of tlie case. “Mr Shirtcliffe says 1 am unfortunate in my reference tn insurance companies,” one passage runs, “and quotes life insurance concerns. . . . But the question being discussed is the rate of interest that large companies subject to the 7s -Id in the pound tax are compelled to charge when they lend money. The life insurance concerns doing business in New Zealand are not companies at all. They have no shareholders and they pay no dividends. It is beclouding the issue to bring into the argument concerns Hint are not companies and are not subject to the tax that companies have io pay. When I said insurance companies T meant companies and not other organisations. The companies 1 had in view were the large lire and marine insurance companies which formerly were large lenders on mortgage to fanners, hut now are being driven out of the business liv the 7s -Id in the pound tax.” Mr Hunt adds in reference to life assurance associations that though taxed at a verv much, lower rate than companies the taxation they have to bear is driving them out of the mortgage business, and leading them to register in Australia rather than in New Zealand. PASSING IT ON.

Mr Shirtcliffe had expressed a fear that a change in the system of taxation on companies would eliminate the private trader. “It lias not eliminated them in Britain, Australia and other Dominions.” Mr TlunL retorts. "Companies and private traders each have got their places. Certain services to the public can be bettor rendered by companies and others can he supplied only by companies. Oil the other hand, there are other services that can he given host by private traders. It must bo obvious that money will not lie pitt into companies unless the special company tax can be passed on the public. Those that require the services of companies. must therefore, pay the tax. The I net is that, the New Zealand system of iaxation converts the large companies into merely tax-gathers for the public. Those companies so situated that they cannot pass the tax on will simply go into liquidation and return their capital to their shareholders.” Mr Hunt goes oil to explain that the passing on process being inevitable it continues from hand to band lilt it ultimately reaches the farmer and the consumer in the shape of increased cost and charges. New Zealand alone retains i Ids blighting system.

“Oot your health in order.”—Genefolder. You can enjoy (ompletc immunity from winter chills and ills by taking Baxter's Lung Preserver, lis unique penetrative properties are invaluable for rooting out long-standing coughs, colds, bronchial and other troubles. Easy and plen'sani lo take—always dependable.

“Baxter's” is also unrivalled as a splendid building-up tonic. Obtainable at all clu-mists and stores. Price 2s fid large hot He.