May 24, 1930

CON

Arthur Edward Ross

Conservative (1867-1942)

Mr. ROSS (Kingston):

Has this road any

connection with any other road in the United

States?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
Permalink
LIB

Thomas Alexander Crerar (Minister of Railways and Canals)

Liberal

Mr. CRERAR:

I am not at the moment

prepared to say what traffic arrangements it has with any other line in the New England states. As hon. members know, the old Grand Trunk had an interest in lines in the state of Michigan and in other western states, and this is a part of the system to carry goods from Chicago down to the New England states, those goods being carried over the Canadian National system through the province of Ontario.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
Permalink
CON

Peter McGibbon

Conservative (1867-1942)

Mr. McGIBBON:

Are there any profits

over and above the operating expenses and bonded indebtedness?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
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LIB

Thomas Alexander Crerar (Minister of Railways and Canals)

Liberal

Mr. CRERAR:

I cannot give that information at the moment, but as I recall, Sir Henry Thornton made the statement before the special committee that based on the showing of last year the road would be able to pay the interest on its outstanding securities and show a very fair return on the common stock held by the Canadian National Railways.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
Permalink
CON

Richard Burpee Hanson

Conservative (1867-1942)

Mr. HANSON:

The road has never paid

anything, but there are great expectations.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
Permalink
LIB

Thomas Alexander Crerar (Minister of Railways and Canals)

Liberal

Mr. CRERAR:

That is quite right.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
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Section agreed to. Sections 2 to 9 inclusive agreed to. Bill reported, read the third time and passed.


WAYS AND MEANS

SPECIAL WAR REVENUE ACT


The house in committee of ways and means, Mr. Johnston in the chair. Resolved, that it is expedient to introduce a measure to amend the Special War Revenue Act chapter one hundred and seventy-nine of the Revised Statutes of Canada, 1927, as amended by chapter fifty of the acts of 1928 and chapter fifty-seven of the acts of 192y, and to provide:- 1. That section eighty-six of the said act, as amended by section three of chapter fifty ot the acts of 1928 and as amended by section fave ot chapter fifty-seven of the acts of 1929, be amended by providing that the rate ot consumption or sales tax be reduced to one per Ce 2! That schedule III to this act be amended by changing the numbers of customs tariff items as follow Tariff Tariff Tariff Tariff Tariff Tariff Tariff Tariff Tariff Tariff Tariff



item 410 to read 406a. item 410a to read 406b. item 445 to read 409d. item 445a to read 442. item 445b to read 442a. item 446 to read 409b. item 446b to read 409c. item 446c to read 409k. item 447 to read 409n. item 447b to read 409j. -renO 409a. 409c. 409e 409f. 431a. 409g, 409j, 409o. Tariff item 449 to read 409i, Tariff item 450 to read 431. Tariff item 453b to read 411, 411a, 411b. Tariff item 453c to read 4101. Tariff item 453d to read 464 Tariff item 453e to read 440k. Tariff item 456a to read 391a. ;tmn dfin +r* rpnrl 410m. 410n. 410o, 410p, Tariff item 460a to read 410q. Tariff item 460b to read 410b, 410z. Tariff item 460c to read 410g. Tariff item 460d to read 410k. Tariff item 461 to read 410f. Tariff item 461a to read, iron or steel pipe, not butt or lap welded, and wirebound wooden pipe, not less than thirty inches in internal diameter, for use in alluvial gold mining. Tariff item 466 to read 476. Tariff item 466a to read 476a. Tariff item 469 to read 410d. Tariff item 469a to read 410e. Tariff item 469b to read 410c. Tariff item 506a to read 480. Tariff item 591 to read 439c. Tariff item 591a to read 439d, and that section eighty-eight of the said act be amended by changing the numbers of customs tariff items as foHoavs : Tariff item 86 to read 85, 89a, 89b, 89c, 89d, Tariff item 105 to read 105e. 106a, 106c. Tariff item 105a to read 106b. Tariff item 106 to read 105, 105d. 3. That any enactment founded on paragraphs one and two of this resolution shall be deemed to have come into force on the second day of May, one thousand nine hundred and thirty, and to have applied to all goods imported or taken out of warehouse for consumption on and after that day, and to have applied to goods previously imported for which no entry for consumption was made before that date. Hon. CHARLES A. DUNNING (Minister of Finance): These sections of the resolution concerning the Special War Revenue Act relate specifically to the sales tax. They provide, as indicated in the budget, for a reduction of the sales tax to one per cent. The changing in the resolution of the item numbers is done in order to bring the numbers into



Special War Revenue Act conformity with the numbering which is contained in the tariff provisions. Certain items in the Special War Revenue Act under the sales tax provisions at the present time take only one-half the regular rate of sales tax and in order to carry that forward it is necessary to change the numbers to make them apply to the same items in the new tariff. Sections 1, 2 and 3 agreed to. On section 4: 4. That section fifty-eight, as enacted by chapter fifty-seven of the statutes of 1929, sections fifty-nine, sixty, sixty-one, sixty-two and sixty-three be repealed and provision made that there shall be imposed, levied and collected upon every change of ownership consequent upon the sale, transfer or assignment of any share of^ stock of any association, company or corporation, or any bond, debenture of debenture stock other than a bond, debenture or stock of the Dominion of Canada or of any province of Canada, an excise tax as follows:- (a) Three cents for every one hundred dollars or fraction thereof, of the par value °t ® bond, debenture or debenture stock; (b) Five cents for every share of stock sold or transferred at a price over one hundred and fifty dollars per share; (c) Four cents for every share of stock sold or transferred at a price over seventy-five dollars per share but not more than one hundred and fifty dollars per share; (d) Three cents for every share of stock sold or transferred at a price over fifty dollars per share but not more than seventy-five dollars per share; (e) Two cents for every share of stock sold or transferred at a price over twenty-five dollars per share but not more than fifty dollars per share; (f) One cent for every share of stock sold or transferred at a price over five dollars per share but not more than twenty-five dollars per share; (g) One-quarter of one cent for every share of stock sold or transferred at a price of one dollar to five dollars per share, but not more than five dollars per share; (h) One-tenth of one per cent of the value of every share of stock sold or transferred at a price less than one dollar per share; that the said tax shall be payable in excise tax stamps by the vendor, transferor or assignor; that every person liable to collect or pay the said tax shall keep records and books of account; and that any enactment founded on this paragraph four shall come into force on the first day of July, one thousand nine hundred and thirty. Mr. HANSON; The minister might be good enough to give the committee the reasons for the recantation in connection with this tax, just what happened as a result of the legislation of last year and the reason for the change.


LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

The tax as introduced

last year produced during its period of operation quite a substantial revenue, but it became apparent in operation that it bore more

heavily upon low value shares than upon high value shares. Representations were made during the year by those interested, and the department made a careful investigation, having in mind that what was done last year was done in an effort to arrive at a method of levying the tax which would be practicable. It will be noticed that in order to reach the point where the low value shares are equitably taxed, it has been necessary to adopt both methods in part; that is, partly the method which was in effect prior to one year ago and partly that which is in effect until the budget becomes effective. For instance, on the small value shares it will be noticed that the percentage method is applied in these proposals in order to get the tax small enough to bear any reasonable relationship to the value of the shares which are being dealt with. That was the system which was formerly objected to as applied to the whole list, and which last year was done away with, but which, on being changed, produced the situation that the low value shares were taxed proportionately more than those of high value. The grading in this manner is contended to be far more equitable.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT
Permalink
CON

William Alves Boys

Conservative (1867-1942)

Mr. BOYS:

Could we have opposite the

various paragraphs numbered from (a) to (h) the figures showing the tax which prevailed before? For instance, in paragraph (a) the tax is now three cents. If we could have opposite that the previous tax and so on down the list, we would at once see what was being done.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT
Permalink
CON

John Anderson Fraser

Conservative (1867-1942)

Mr. FRASER:

Could the minister indicate

what amount of revenue was collected under this tax to the end of the fiscal year?

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT
Permalink
LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

I am embarrassed at the moment because I have under my hand nothing more than what my friends have. I have sent for my material.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT
Permalink
CON

Richard Burpee Hanson

Conservative (1867-1942)

Mr. HANSON:

Would the minister then

let this stand and go on to the next resolution relating to the Income War Tax Act?

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT
Permalink
LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

We could do that if it

suits the convenience of the committee. I am sorry I have not under my hand the material required to answer the question.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT
Permalink
CON

Alexander Duncan McRae

Conservative (1867-1942)

Mr. McRAE:

Would the minister at the

same time ascertain the approximate expense involved in checking up this tax in the various brokerage houses throughout the country, the cost of superintendence?

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT
Permalink
LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

I can give that so far as

the government is concerned. I think I shall have that information available when I get my material.

Section stands.

Income War Tax Act

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT
Permalink

May 24, 1930