May 3, 1926

CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Yes, but it is due as well

to patents and a thousand other things. It is due chiefly to the fact that Mr. Ford controls a market in the United States of 110,000,000 which he is supplying with 2,000,000 cars of a standard size every year. In addition to that he has the advantages of mass production, so that he can undersell any competitor or raise or lower his price as he sees fit. But if the Canadian government were to impose a proper excise tax upon the Ford company in this country it would stop the profiteering complained of. I would impose such a tax as would prevent that $6.000 000 from reaching the pockets of Henry Ford. I would put on such a business tax as would make it unprofitable for him to charge the consumers of this country a price higher than would yield him a reasonable profit.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
LIB

Charles Gavan Power

Liberal

Mr. POWER:

Does the hon. member wish to return to the business profits tax?

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

We have a business profits

tax in this country at present. Whether we might amend that provision or levy a special excise tax I am not suggesting at the moment.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
LIB

Charles Gavan Power

Liberal

Mr. POWER:

A tax based on profits.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Based on undue profits. I

would take away the extravagant profits from industrial concerns which make use of the

Canadian tariff for the purposes of profiteering. I would discharge my public duty to the consumers of Canada by thus dealing with the ten per cent or five per cent of the factories that make that improper use of our tariff. We are, I believe, sufficiently intelligent in this country to devise ways and means of preventing profiteering to any undue extent, and certainly we can devise means of limiting the profits of a company such as the Ford.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
LIB

Charles Gavan Power

Liberal

Mr. POWER:

The moment we applied any such excise tax, does the hon. member not think that we should hear a wail from certain towns and villages in which these concerns were situated to the effect that we were putting them out of business?

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Possibly, but I am not dealing with wails of that kind.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
LIB

Charles Gavan Power

Liberal

Mr. POWER:

What have you been doing

all evening?

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

That is a fair retort,

although I think it is a discourteous one. However, I accept it as courteous.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
LIB

Charles Gavan Power

Liberal

Mr. POWER:

I am sorry if the hon. member thinks it was otherwise.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

We are living in proximity

to the United States and for years we have been endeavouring, Liberal governments as well as Conservative, to induce large producing manufacturing industries across the border to come into Canada and establish branch factories here. They have come in and given employment to thousands and tens of thousands of our people; new towns have been built up; new municipalities and cities have been established with all the various forms of municipal and civic life. Now we find one man profiteering unduly, and the only remedy that the Minister of Finance can suggest is to reduce quite materially the tariff which safeguards that industry. If carried to its logical conclusion that tariff reduction will result in the destruction of the automobile industry in this country, enabling the parent Ford industry in the United States to supply all its products to this country at prices which Mr. Ford may choose to fix.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
LIB

Charles A. Stewart (Minister of Immigration and Colonization; Minister of Mines; Minister of the Interior; Superintendent-General of Indian Affairs)

Liberal

Mr. STEWART (Edmonton):

I am interested to know how my hon. friend arrives at the conclusion that interference with the tariff here will affect the fixation of prices in the United States.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

I am dealing with the Ford Company, which is charged with undue profiteering. Mr. Henry Ford can fix prices in Canada just as he sees fit if the tariff is removed.

The Budget-Mr. Cahan

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
LIB

Charles A. Stewart (Minister of Immigration and Colonization; Minister of Mines; Minister of the Interior; Superintendent-General of Indian Affairs)

Liberal

Mr. STEWART (Edmonton):

Why should the tariff have any influence on the fixation of his prices either up or down on the American side? I am referring to the American prices.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Hon. gentlemen have said

that allowing for the extra sales tax and for the fact that every man in this country pays 25 per cent of his entire income from productive activities to the federal, provincial and municipal governments by way of taxation-

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
LIB

Charles A. Stewart (Minister of Immigration and Colonization; Minister of Mines; Minister of the Interior; Superintendent-General of Indian Affairs)

Liberal

Mr. STEWART (Edmonton):

I take issue with the hon. member on that point. However, that is not what I am getting at. How does my hon. friend argue that our interference with the tariff can affect prices in the United States?

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Hon. gentlemen are saying

that, making allowance for everything in his favour, Mr. Ford is profiteering and charging an unreasonable price for his automobiles manufactured in Canada. You meet that by reducing the tariff. I say that has certain disadvantages to this country which I have enumerated, such as lack of employment and the transferring to the United States of the manufacture of the Ford car. Hon. gentlemen may laugh-

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
LIB

Charles A. Stewart (Minister of Immigration and Colonization; Minister of Mines; Minister of the Interior; Superintendent-General of Indian Affairs)

Liberal

Mr. STEWART (Edmonton):

I am laughing because that is not an answer to the question I asked my hon. friend. I am interested in his argument that the lowering of the tariff would permit Henry Ford and other American motor manufacturers to fix whatever prices suited them. I want to know what particular effect the tariff would have on the price of the car manufactured in the United States.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Either I am very stupid

or the hon. minister is not stating his case very clearly. I do not say that it has any effect upon the price at which the car can be manufactured in the United States; but Henry Ford can fix any price he likes, either in the United States or Canada, his company will manufacture the car in the future in the United States, possibly assembling the parts in Canada, and he will fix the price in Canada within any reasonable limit that he sees fit.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink
LIB

John Power Howden

Liberal

Mr. HOWDEN:

Does the hon. gentleman

suggest that the Canadian price will be greater than the American price? If so, why?

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
Sub-subtopic:   FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
Permalink

May 3, 1926