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 mu Arctilvit of Nova soMb 
 
 rjirinnjruxrinanxiJiruTru\njxnjinjTru\njTn^ 
 
 DISCUSSION 
 
 BY 
 
 The Halifax Board of Trade, 
 
 ON THE 
 
 TAX REFORM, 
 
 PROPOSED BY THE 
 
 HALIFAX TAX REIORM ASSOCIATION. 
 
 
 HALIFAX, K B.: 
 
 PRINTED BY WILLIAlll MACNAB, 3 PRINCE STREET. 
 1892. 
 
 a^ru^^J^^u^J^rlru^r^^J^rlI^rlnJ^J^^uvl^ux^l^^ 
 
NMc Wci^ «* ^* 
 
 
BOARD OF TRADR 
 
 . Halifax, N. S., March 28, 1892. 
 
 The Board of Trade met at 3 P. M. 
 
 Mr. PlCKFOHl), president, said that this ineetini:^ wa.s called 
 to afford an opportunity for some members, who are also 
 members of the Tax Reform Connnittee, to place their views 
 before the Board, after which he would be very ^lad indeed 
 to hear the views of other mendjcrs of the Board. He then 
 called on Mr. W. J. Stewart, of the firm of M. S. Brown & Co. 
 
 Mr. Stewart said : Mr. Chairman and Centlemen. In 
 bringing this matter of tax reform before the Board of Trade, 
 I would say at the outset, that while the tax reform commit- 
 tee to some extent have been a separate organization, there 
 are a great many members of the" Tax Reform Association 
 who are mendiers of the Board of Trade also. It might be 
 well, before the discussion opens, to review the history of the 
 tax reform. 
 
 About a year ago a number of business people who felt the 
 injustice of the present scheme, decided to hold a meeting, and 
 recjuested his worship the mayor to call a meeting for that 
 purpose. A meeting was called in the committee room of the 
 City Council Chamber, and there was a very large attend- 
 ance. The matter was brought before the meeting, discussed 
 at some length, and several ideas were thrown out : chiefly, 
 that the merchants of Halifax were laboring under a great 
 disadvantage as compared with Montreal and other cities in 
 
Canada, cliiefty on accoUiit of tlie system o^ taxation, wliicli 
 was oppressive to the merchants of this community. At that 
 meeting a committee of fifteen was appointed with power to 
 look into the matter, and, after lcx)kin^ into tlu* various 
 systems in Canad'i and the UnitcMl States, to re[)ort hack a 
 schetne which they thought would be effective in carrying out 
 a reform in Halifax. That c(jmmittee, although appointed at 
 random, was a representative connnittee. It has been thrown 
 out in different (juarters, that that connnittee was compose<l 
 simply of wholesale people who were endeavoring to get ch;ar 
 of their taxes, and to " unload," as was said in the City Coun- 
 cil, on other meml)ers of the conuiuuiity. It also happened 
 that that connnittee represented real estate as well as personal 
 property. That committee represented some $700,000 of per- 
 sonal property and just about the same amount of real estate. 
 It was simply a representative connnittee, embracing mend^ers 
 of the leading firms and i-epresenting a very large nund^er of 
 business houses in the city, both wholesale and retail. It was 
 not a movement of the wholesale people any more than a 
 a movement of the real estate owners or retail merchants. 
 We reported back in pamphlet form, going over the ground 
 carefully, stating reasons and giving figures and facts as to 
 the manner in which the reform could l)e carried out. We 
 shov/ed that at the present time the city required for civic 
 purposes $341,000, and real estate paid in the vicinity of 
 $225,000, leaving about $115,000 to be made up out of other 
 sources. The connnittee endeavored to bring l)ack a scheme 
 that would in no way interfere with the present adjustment 
 of real estate. The real estate assessment had been discussed 
 and revised in the year 1883, after a great deal of considera- 
 tion had been given to it by Mr. Mackintosh ; and Mr. Mack- 
 intosh in submitting his scheme, which he carried in the City 
 Council and the House of Assembly, stated that one chief 
 object was to take personal property at a market value and 
 to make the taxes a lien on the property ; that was carried 
 out, and Mr. Mackintosh then stated at that time, in reference 
 
3 
 
 t<) personal property, that it should he assessed on its actual 
 value, and that the taxes should be a lien. 
 
 The first object of that retonn has to some extent been 
 realized — that is real estate. Real estate has been assessed to 
 its whole value, but in the nmtter of the I'eforni »vs related to 
 personal property, expectations have not been realized. Per- 
 sonal property in Halifax, as well as in other cities, has been 
 found very difficult to be reached by the tax ju«;sessor. It is 
 something like the matter of income. All the people who have 
 Uiade taxation a study — political economists and other's — while 
 admittiTi(( that in theory income may be defined, practically it 
 cannot be defined. So with personal property, and while in 
 theory antl by law it is su])posed to be all assess(>d, it is really 
 only such pei-sonal property as reaches the eye that is assessed. 
 I think this can l»e verified in each case. In the City of Halifax 
 to-day there are only four and one half niillions of personal 
 projTerty that is taxed. Now, any one who is familiar with 
 the personal property in the City of Halifax must know very 
 well thei'e must be seven times that amount. When you take 
 into ' consideration all cash, stocks in banks and otherwise, 
 everything in the line of personal property, and you learn 
 that only four and one-half millions is assessed out of some 
 thirty millions, you realize how imperfect and unjust the 
 present .system is in its operation. Consequently this Reform 
 (jonnnittee looked about for a redress in this respect and to 
 bring about an adjustment which would not bear heavily on 
 any class in tlie conununity. In doing so we have gone into 
 the assessment schemes of Canada and the United States. Mr. 
 Bishop, the Secretary', wrote to various cities, and in most 
 cases received replies. We found that in a great many cities 
 similar agitations were going on, and especially in cities where 
 they had a tax on personal property. In repoi'ts from Toronto, 
 Ottawa and Hamilton, they all pointed to the fact that they 
 were bringing about an adjustment on the principles laid down 
 by the Montreal Assessment Act. That led us naturally to 
 look into the Montreal system, and we found that it has been 
 
in force there for twimty years, ami wa« satiNfactory. There 
 will be a number of letters read here this aftern(M)n to show 
 that the people of that city are satisfied with their jihschh- 
 nient law. We found in the State of Maine, that they 
 thoiight the Montreal plan a satisfactory system o** taxation. 
 F'or that rejison we based our adjustment on the Montreal 
 system. The Montreal system ia extremely simple, and that 
 is one of its ^>reat merits. They have first a tax on all 
 real estate limited to one per cent, on the assessed value. 
 We find that in the City of Halifax there are some five 
 millions of dollais of ival estate that would be subject to 
 a busi'iess tax as in Montreal. They next have a business tax 
 based on the value of the premises in which the people *do 
 business, so that every store or orfice in M(jntreal is subject to 
 a business license. Then their system provides for the taxa- 
 tion of a lar^e class in the community such as insurance com- 
 panies, telephone companies, auctioneers. We are cavryin<^ 
 the systen) out and adaptin.'^- it as far as practicable to Halifax. 
 In making this report or- whole object was this — it was to 
 present to Halifax a scheme of taxation that would not be 
 oppressive. The present system we claim is oppressive. 
 The system of taxation here is not peculiar to the City of 
 Halifax ; it is peculiar to other old cities, in the New England 
 States especially, although the conditions are better carried out 
 than in Halifax, still they exist : and the nature of the personal 
 property tax is such that a man is not taxed on the premises 
 he occupies ; he is not taxed on his income ; he is simply taxed 
 on the amount of personal property he requires to make his 
 living out of. 
 
 Now, I think that every gentleman here will admit that 
 one of the greatest disadvantages that the Halifax merchant 
 is labouring under is the assessment on his stock. The stock 
 in the first place represents an amount of interest, whether it 
 belongs to the firm or is borrowed from the banks, a man has 
 to admit that his stock represents a certain amount of interest. 
 It next represents deterioration and a great many other things 
 
() hIkhv 
 
 HHHOHH- 
 
 i thay 
 
 , in the handling which are pfreat di sad van tapes to people doinp 
 hu.sine.sH witli stock, and st(x;k is not an end, it is simply a 
 means; it is really the machinery, or the earning power of a 
 man's husiness, and we claim that it makes very lit Me ditt'er- 
 ence to the city of Halifax whether a ston; has #5,()()() or 
 $10,000 in it; a man's l)usiness should not he handicapped 
 hecause he is compelle<l to carry a snuill or a lar^e amount of 
 personal property to <lo his husiness with. When the present 
 scheme of taxation was first intnxluced into the city of Hali- 
 fax some 50 yeai^s ago, the whole condition of affairs wjis 
 different, competition was not keen, and the city of Halifax 
 had a monopoly of all the trade of the Pi-ovince. It is well 
 known hy the ()ldei* mend)ers of the connuunity that profits 
 were larger than they are now, consecjuently Halifax had this 
 personal property tax and bore up under it when the people 
 were making large sums of money, hecause there was no out- 
 s\i\e competition. Then again, the}' ha<l this advaiitage pre- 
 vious to the year 188.S that the stocks were not taxed any- 
 thing near their value ; the chief assessor had his ward asses- 
 sors appointed by the City Council ; the valuation depended 
 upon these gentlemen selecte<l to assess the goo<ls, and they 
 were business men and understood the necessities ot business. 
 But w^hen the law which Mr. Mackintosh advocated came into 
 force it changed this state of affairs. Permanent assessor's 
 were appointed, and the first thing they di<l was to go roun<l 
 the city and assess a certain amount of personal pr )perty, 
 stocks and all, then fix the rate of assessment. The amount 
 of assessment was soon increased, and they kept on increasing 
 it until they in time compelled most of tlie wholesale people 
 to appeal and declare the value of tlujir stocks, and so stocks 
 of the wholesale people are to-day assessed to a fraction of 
 their full value, and for that reason the people who feel that 
 burden have begun this agitation. It is a real burden ; it is 
 not an imaginary one. It is necessary to compete with larger 
 cities, and, in order to keep our business establisliments alive, 
 we were compelled to agitate for a reform. In the Council 
 
 / 
 
we were met by a body of gentlemen who have a perfect right 
 to petition the CVmncil as we have, but they met \ih om groiindH 
 that we consider unfair. They were not large tax-payers ; 
 they did not go there as tax-payer.s of personal property. 
 The whole amount of taxation paid by them on personal pro- 
 perty does not amount to much over one half paid by one 
 firm I could name in the city. The reform wjih not an etTort 
 to unload '.>n their shoulders. It Was simply a movement to 
 adjust taxation ho that every (me of the conununity would 
 pay their fair amount. Why, to-day I know of one firm in 
 the city doing (|uite a large business, employing some ten 
 teams, and that firm contributes only the amount of SI 5.00 on 
 pei*sonal property, while their business is larger than some 
 other firms who ar«' paying as nuich as #500 on personal pro- 
 perty. This is just an example. It is not an example from 
 the retail grocers. It is simply an example that might be 
 used against them. A great many of the gentlemen engaged 
 in small lines where they turn their stock over very fre- 
 ((uently are nt)t compelled to carry large stocks. The present 
 system allows them to go free on a small taxation, while those 
 merchants who carry the same amount of stock all the year 
 round liave t<.) pay large amounts. We say that it is unfair. 
 We say that the city shoul<l regulate the tax on the frontage 
 or the value of the buihling. The city is in no way interested 
 in the color or class or the value of goods in the inside of a 
 building. The city has the responsibility of keeping the 
 streets in order, of Imilding sewers nnd adjusting theafifairs of 
 the city tm the frontage, and not on what is in the interior : '> 
 a store may be used one year by a merchant or a firm that is 
 canying very little personal property ; it may be only, say to 
 the amount of $1000, in that case the city would only receive 
 $14.90, while next year it may be used by a merchant carrying 
 $10,000, and the city would receive $149. This is not based 
 on any equitable system of taxation. We take the case 
 again of a gentleman in the West India business. We have 
 known of large cargoes that have only been in the city two 
 
montliH which have been jisHeased for taxes for the whole year, 
 while other cargoeH which ha<l been in the city from eight to 
 ten months and sold out before the date of assesHment were 
 not jiHsessed at all. Why should a merchant be jissessed upon 
 a cargo of goods which is only in the city for two months, 
 while another merchant who has a cargo here ten months in 
 the year goes scot free. (Hear, hear.) We take each of the 
 different classes of Vjusiness and we propose in our scheme 
 to do away with taxation upon property that does not cost 
 the city anything for its care. The city should have their 
 assessment on some fixed principles. 
 
 We say with regard to ships that it is to the interests of 
 Halifax to have ship-owners in the city, to have steamships 
 registered here, and to encourage people to go into that class 
 of business. But under the present system of taxation it vir- 
 tually says to wharf owners here if you build, buy or own 
 ships here we will niake you pay for them, and we would 
 s<K)ner have the stranger come here than that our own mer- 
 chants should own the ships. Now that is the system against 
 which we nre fighting. 
 
 Messrs. Pickford and Black, we all know, pay large sums of 
 money on steamships. We propose to do away with the taxa- 
 tion on tliuse steamers and make that and similar firms pay a 
 tax on business premises. I think our chairman is with the 
 Tax Reform Association. I think I am .safe in saying that 
 there are merchants in the city to-day who are not paying as 
 much under the present system as they would under the new, 
 It woiild V)e to their advantage to have a fixed rate. 
 
 A gentleman here said that at one time he thoi\^ht of going 
 into a speculation and the goods he wanted would have to l)e 
 brought to Halifax. It was at the time the assessors were 
 going around and tlie assessment Wv)uld have been very large 
 upon the same. He decided not to touch the matter, and 
 Halifax lost the handling of those goods and every advantage 
 in connection with the transaction. 
 
 We all admit that since Confederation we have been iq 
 
8 
 
 v 
 
 I 
 
 P'^ \ 
 
 direct conipeiltion with the larger cities of Canada, with 
 Montreal in particular, and Montreal han a system of taxation 
 which enables its merchants to do a large business with very 
 little expense, because the whole amount of taxation is dis- 
 tributed ove" the whole business community. In conversation 
 with a gentleman the other day. (just to bring the thing to <i 
 point before the meeting, a gentleman who pays out 8^50,000 
 a year in wages, and who does a very large manufacturing 
 business, he said to me, " I would like to know my rate of 
 taxation and have it fixed. I am in this unfoi^tunate pasition 
 t!iat I have to compete with Montreal ; the class of goods I 
 make are made by large manufacturers in Montreal, and the 
 enterprise is almost new in Halifax. I am compelled to make 
 my goods up early for the sunnuer trade, and it is necessary 
 to import the cloths here in the fall so that the goods may be 
 manufactured and delivered to the customers early in the year. 
 But under the present system I order my goods ahead in the mills 
 of United States and England and tell them to wait for a cable 
 before shipping them, and when the assessors pass my doors I 
 have the goods shipped to me. In the meantime I have to 
 discharge large numbers of men and girls to my own and their 
 disadvantage, because I throw them out of employment during 
 this time waiting for the assessors. If 1 had the full amount 
 of goods here when the assessors came to assess my stock my 
 taxes in the City of Halifax would be almost eijual to the rent 
 and taxes in Montreal. Now, Mr. Chairman, that is a nice 
 state of affairs in Halifax. A man who pays in wages $00,000 
 a year in the City of Halifax has to contribute to the city 
 directly for taxation as much as he would in the City of 
 Montreal for taxation, and rent as well. There are so many 
 examples that can be used. We take a street and you will 
 find one store, a very small retail store, from the nature of the 
 business carried on it is neces.sary to have a stock of the value 
 of $10,000 on which $150 will have to be paid as v privilege 
 for doing business. One small firm on Granville St. luus to pay 
 $150 ; his next door neighbour, who is perhaps doing twice a.« 
 
much businesH, paying $30 ; and along further you will find 
 a grocery store paying a sort of random ansessment on 
 S800, and so on, which clearly shows that even if the prin- 
 ciple is not wrong, it is not effective and is mast unjust. 
 
 I would just like to refer to the item of real estate. 1 hold, 
 and many of the connnittee hold, that real estate is different 
 in quality and is distinct in character from personal property. 
 In the first place, real estate recjuires an amount of money to 
 be expended to build streets and sewers, — and the funded 
 debt of the city to-day is largely made up for the w^ork on 
 streets, — consequently, when you go out into the suburbs in 
 the western part of w^ai-d two, the city, before you can erect 
 a house there, has to borrow^ a lot of money — and the interest 
 has to be paid every year — in order to construct streets and 
 sewers. Personal property can be brought here in thousands 
 and tens of thousands of dollars, and can be kept here year 
 after year or month after month. It might be claimed that 
 it requires police and fire protection : — we say, the cost of that 
 charge is out of all proportion to the rate of the tax. It is 
 necessary for this personal property to be tored in re^U estate, 
 and if it did not come and make use of the real estate, how- 
 much value would the real estate have ? It is the business 
 which is done here that makes real estate valuaVile. The real 
 estate pays taxes which include those for fire and police, and 
 it is unfair to make the personal property pay the same tax 
 over acrain. For that reason we think it unfair that the real 
 estate ow^iers should take any exception : and I claim that if 
 the real estate owners would look into our scheme thoroughly 
 that the reform suggested wt)uld bring about ji, great benefit 
 to real estate. It may lie said, How do you know :* How can 
 you base figures without facts ^ Just as surely as the City 
 Council has a base or which to levy a rate on household ufiects' 
 and other personal property, so we have the same data upon 
 which to make up a business license. We fin<l, in the city, 
 that five millions of dollars of real estate would be subject to 
 n household tax, that would be eleven nn'llions, leaving nearly 
 
10 
 
 five millions that would not be subject to either tax. The 
 househokl tax is a tax which was decided upon by the City 
 Council. We approved of it ; so we have ascertained facts to 
 go upon, and in the report which will be presented later you 
 will see, Mr. Chairman and Gentlemen, that our scheme is not 
 a scheme on paper cmly, but it is a scheme based on facts, and 
 all we want is the fullest discussion. If there are any items 
 in reference to the present scheme we can supply, we will be 
 happy to give them. 
 
 E. G. Kenny, Es(|. : Mr. Chairman and Gentlemen. After 
 the very full and lucid explanation which Mr. Stewart has just 
 given us of the situation it only becomes necessary for me to 
 reiterate what he has said, and I do so very cheerfully. It 
 seems that under the present system of taxation, tis is well 
 known to everybody here, about 50 firms in Halifax are pay- 
 ing one-half the taxaticm on personal property. It is conse- 
 (juently presumed by the city assessors that 50 firms own one- 
 half of the personal property in the city of Halifax. Now, 
 that is a supposition which anybody in this room knows is 
 incorrect. It is thoroughly improbable and not true. Take 
 the city of St. John, which has a population something like 
 our own, though not so wealthy. I understand that they are 
 taxed on nine millions of dollai's of personal property, a very% 
 large amount escaping. It is fair then to assume that with 
 our p;)pulation and wealth here that (^r personal property is 
 of greater value, and that it is probably in the neighbourhood 
 of some 25 millions of dollars. Now, under the present sys- 
 tem, Halifax is only taxed on four and one- half millions of 
 personal propei-ty, so that we may say 21 millions of dollars 
 of personal property annually escapes taxation. I think and 
 believe that if that 21 millions was taxed, as it should be, 
 that is to say, if we were all to contriliute alike on our pro- 
 perty in the city there would be very little cause for complaint, 
 but owing to the manner in which the present Act is carried 
 out, or rather is not carried out, it seems that the only pro- 
 
/ 
 
 11 
 
 perty which can possibly be taxed to its full value is the stocks 
 of merchants in the city. Now, as you know, these stocks are 
 held chiefly by the larger linns in the city who give a great 
 deal of employment. They require a great number of em- 
 ployees to look after these stocks, retiuire a number of people 
 to move them, employ a good number of truckmen, wharf- 
 men, &c., handling the goods. In this way they give so much 
 more assessable property to the city as represented by these 
 people whom they employ. So that you may say indirectly 
 they help the city very materially in its taxes on real estate 
 as well. Besides this, as Mr. Stewart has pointed out, they 
 themselves are large real estate owners. In olden times the 
 ({uestion of taxation was one which did not enter very mate- 
 rially into the minds of business men here. In those days 
 profits were large, and the innumerable expenses of a business 
 were not so closely watched as they are now, and they were 
 very much less. 
 
 In the wholesale trade of to-day we have the expense of 
 travellers, and as you all are aware travellers are well paid, 
 very much better than clerks were paid in the old days ; their 
 expenses on the road are heavy. In this way it forms a large 
 expense and is a necessary appendage to the business of to-day. 
 Upon examination of the expenses of any business in this 
 city to-(^ay, you will find one of the largest items is that of 
 taxation, and in this respect it bears very hard on the whole- 
 sale merchants, as they are taxed on every dollar of old or 
 new stock in their premises, ami we think for this reason that 
 the merchants have a very serious grievance. They are taxed 
 — and I can say it for our own firm — up to the handle. We 
 have appealed from our assessment in the courts twice. Once 
 we were over-taxed $11,000, and on another occasion $5,000. 
 I have no hesitation in saying that 50 firms in Halifax are 
 bearing one-half the taxation yn personal property in this city, 
 while they probably own only one-eighth of it. Now it seems 
 that the present system of taxation is so unsatisfactory to out- 
 siders that men, having come here with the idea of starting busi- 
 
\ 
 
 12 
 
 ness — (I know of two concerns.one a wholesale stationer and the 
 other a wholesale boot and shoe firm), and inquired into the cost 
 of taxation in this city — found the taxes so unsatisfactory and 
 heavy on their different lines of business that they were obliged 
 to go elsewhere ; one went to Moncton and the other to Que- 
 bec. So you will see that the present system is driving busi- 
 ness fioni Halifax, and I think all will recognize that the only 
 chance of success for a community is its connnercial pras- 
 perity ; and if the commercial prosperity of Halifajc is to 
 hinge on this system of taxation, — and it does, — then it needs 
 redress [.nd should be altered. It seems to me that the pres- 
 ent system tends rather to grind down a few with heavy 
 taxes while the many escape ; and what we want is a redis- 
 tribution of the taxes in fair proportion. I do not see why 
 one class in tlie community should pay for everything in their 
 stores while others should escape. The opposition to the 
 reform in the City Council was largely, I think, from a class 
 of gentlemen who, under the present system, are not paying a 
 fair proportion of their taxes ; and I think, if they will only 
 look into the scheme as proposed by the Tax Reform Associ- 
 ation, they wdl see that they will have to pay less than they 
 should under the present system ; so that if a redistribution 
 of taxes took place, and all paid their fair proportion, there 
 would be very little grievance. I do not kncjw that there is 
 much more that I can say, Mr. Chairman and Gentlemen, but 
 I would wish to impress upon the merchants here present, 
 that it is in the interests of the retail as well as the wholesale 
 men that some reform should take place, not necessarily the 
 reform as specified by the Tax Reform Association verbatim, 
 but some measure of relief should be given to the oppressed 
 wholesale trade. 
 
 Geoffrey Morrow said : Mr. Chairman and Gentlemen. 
 We came before you to-day so that we might get the citizens 
 generally interested in this scheme and endeavour to explain 
 as far as we were able how it w^ould work. It is impossible 
 
13 
 
 by writing in the press to get our scheme fully before the 
 public, so we thought it a good plan to move it before the 
 Board of Trade so that it would be fully discussed and engage 
 the attention of the citizens all over this ciiy. I was going to 
 apologize for taking up so much time, but we condsidered that 
 there is no need for any apology. This subject of tnx reform 
 is one of the most important things that has ever been brought 
 up in the City of Halifax for years. (Hear, hear.) It affects 
 everybody in the connnunity, and when the members of the 
 Tax Reform Association who are in favour of this thing come 
 before the public at first sight it looks as if it was only in their 
 own interests. It n»ay be said, if you look fully into it, you 
 will see that nearly all these people are working to have their 
 taxes reduced. Now they are working to have their taxes 
 reduced because they have to meet competition from other 
 cities which are not labouring under such unfavourable cir- 
 cumstances It has also V)een urged against this Association 
 that they are speaking for theniselves— as I said before they 
 speak for everybody — wholesale, retail, manufacturers and 
 others A reduction in the am<junt of taxation of wholesale 
 merchants is asked because they have to meet the keen com- 
 petition of other cities, which they cannot continue to success- 
 fully do if further subject to the burden they now bear. 
 Wil^hout labour there is no production, and therefore there 
 would be no consumption of food, so I say that houses doing 
 business which are interested in imports, exports and manu- 
 factures, are concerns from which the business of the city 
 comes. I am sure you will agree with me. 
 
 I have written down a few notes of various things to be 
 brought before this meeting. We want to impress upon the 
 people of Halifax that the present system of taxation is not 
 only unjust but with respect to a large class of the community 
 it is impossible for it to be carried out in the way intended by 
 those w)io framed it. If the present system could be carrie<l 
 out, as has been said before to-day, we would not have as great 
 a grievance as we now have. We went to the City Council 
 
14 
 
 and discussed this matter and were received very kindly and 
 we went fully into it and appointed a connnittee, and this 
 committee reported hack to the Council, ami when it was up 
 before the Council one gentleman said he acknowledged that 
 a great many people had a grievance, but if they did not like 
 it they could "get out." Now, Mr. Chairman, if they did get 
 out the whole city would be done ; there would be no Halifax 
 worth menticm — a skeleton of Halifax — and these people 
 who are opponents of this scheme would be left in more ways 
 than one. One reason why we urge this system t)f taxation 
 upon the people of Halifax is l)ecause it has been adopted in 
 Montreal for some time and it has been found to be easily 
 worked. The present system of taxation is impossible to be 
 carried out. It is impossil)le to get at personal property. The 
 assessment books show that it cannot be got at. We are not 
 blaming the assessors, although we are blaming the system. 
 If you take up the system of a business tax instead of one on 
 personal property it would be a very easy thing to go through 
 the city and assess every building where a business is done. A 
 great many buildings are occupied as shops and dwellings. The 
 whole of that building would not pay a business tax, only that 
 part which is used for business purposes. The other pjii't 
 would pay a household tax. With this business tax we would 
 increase the value of real estate, because the wholesale trade 
 are obliged to import large stocks of goods. They will import 
 larger quantities because they will not be called upon to pay 
 one and one-half per cent, on their value. Under the pi'esent 
 system in some cases the taxation makes it impijssible to specu- 
 late in some instances. Now, if the wholesale trade was not 
 handicapped they could import all the goods they wanted. It 
 would give a great deal of employment to labor, and all those 
 engaged in labor would have more money with which to trade 
 in various ways with the retail businesses in the city. It 
 would also increase the value of real estate. There is a great 
 deal of real estate in the city to-day very little used, and there- 
 fore the assessors do not value it, and, justly so, very highly 
 
15 
 
 but if this real estate caliie into use it would pay the business 
 tax, and therefore tliere would be a great deal more real estate 
 to pay the taxes than there is now. 
 
 Now, I may say that the Retail (irocers' Association have 
 attacked our scheme vigorously, doubtless they did so with the 
 best of intentions, Init I am sorry to say that they have V)een 
 misled. They Iwuse their arguments largely on circumstances 
 which do not occur. 
 
 I have taken the trouble to gt) through the City Assessors' 
 books from ward one to ward six, and have taken a nund (er of 
 businesses in each wartl, not wholesale businesses but ordinary 
 retail shops in every line. I took twenty-eight examples 
 without any reference to what the result might be. I made 
 up what tliese different places of business would pay, what 
 the owners of these different lines of Imsiness would pay undei- 
 the new scheme and what they paid under the old, and foi- 
 convenience I used the rate of one and one-half per cent, in- 
 stead of 1.4f) p. c. : it did not make nmch difference. I was 
 astonished to find that under the proposed scheme that the 
 twenty-eight lousiness estal)lishments under the new scheme 
 would only pay S28 dollars more taxes. I know from the 
 books of the assessors that there are a large number of small 
 business places which are assessed at a ridiculously low rate 
 for the stock they carry — and as I said before we are speaking 
 of the city as a whole — there is a greater portion of the per- 
 sonal property in the city untaxed and always will be under 
 the present system. 
 
 A proposal made V>y the Retail (Irocers' Association, which 
 is dangerous to the business of the City of Halifax, and 
 which should be vigorously opi)osed, is that every vessel 
 coming into Halifax to sell products of all kinds shouM be 
 subject to a tax large or small as the case may be. Now, sir, 
 the whole business of the city of Halifax depends on these 
 coasting vessels landing produce here, and, after landing their 
 products, buying their necessaries from city merchants. If we 
 say to them, " Before you come here you must pay us $25 for 
 
 i 
 
16 
 
 the privilege of coininfj here," — why, .sir, the world would 
 lau^h at UH ; it is monstrouH and ridiculous. But, I would 
 like to point out to the Board, that the system >ifl proposed by 
 UH is in force in the city of Montreal, and has been for some 
 year's, and it ha.s been found to be very successful in its work- 
 ing. In Quebec it is in successful operation. In Ottawa they 
 have made an attempt to adopt it, but the movement was 
 defeated in the City Council. I wouM ask the members to 
 read page 25 in the tax report which is now submitted to you 
 in reference to Ottawa. The city of Detroit is adopting the 
 same system, and, to show how it is looked upon in Ontario, 
 I may mention that at the last session (^f the Ontario Provin- 
 cial Legislatun; a Bill was passed authorizing all nuniicipali- 
 ties to adopt the scheme of the business tax in place of the 
 present system of taxati<m on merchandize and machinery. 
 In Ontario, each city does not have to go to the Legislature 
 and pass a Bill to use this system, all they have to do is for 
 each municipality to pass a by-law and it gives them power 
 to put the scheme in force. Now, Mr. Chairman, if M(mtreal, 
 Quebec and Ontario can ailopt this thing and find it a good 
 scheme, surely Halifax can take the benefit of the time and 
 attention which has been given to it by these places and their 
 experience, and adopt it. Of course, we do not want the 
 people to adopt it without looking at it carefully and dis- 
 cussing it, and that is the reason we came before the Board of 
 Trade to press upon the people to look at it in an impartial 
 manner and study it fairl3^ 
 
 Robert Pickford, Es(j., said : That the present system of 
 taxation needed an equitable readjustment such as this pro- 
 posed. It is demanded in the best interests of the city, and, 
 he said, I therefore trust that you will give it your full and 
 hearty support. 
 
 Mr. T. K. Jenkins said : I- most emphatically approve of 
 this agitation cm the part of the Halifax Reform Association, 
 and I may add that, although not taking a prominent part in 
 
ir 
 
 this movement, that the house I represent is very seriously 
 taking into consideration the present taxation in this city. 
 We have been imposed upon both on mil estate and pei-sonal 
 property. They are takin^r into serioiis consideration whether 
 they shall remove from the city and close up what interests 
 they have in it, and I may say that they have considerai)le 
 real estate, and all will be absolutely closed unless scmie remedy 
 IS affected under the present system of taxation. I complain 
 of the present taxation in this city and feel we have a very 
 real grievance. Assuredly the time is very near when "the 
 shop at the corner " may retire to another city where they 
 can enter into business without a severe handicap. 
 
 THE FIKST RESOLUTION. 
 
 T. K. Jenkins then moved the following resolution :— 
 
 That the Halifax Board of Trade, recognizing the fact that 
 the present system of personal taxation is unfair in operation 
 u ' 4 "^'"*^* <^<> the connnercial prosperity of the city of 
 Halifax, recommends a readjustment of city taxation. 
 
 Mr W J. Clavton seconded the resolution, and said that 
 he was strongly in favor of the new scheme, not so much on 
 account of any reduction in the amount of his taxes as from 
 the fact that there would be a detiniteness in the amount to 
 be paid. His firm had to carry goods from 18 months to two 
 years, and the first year his stock M-as taxed as raw material, 
 then as the manufactured article. If the system worked well 
 elsewhere we should have something equally good. Montreal 
 was our great competitor, and we should be placed on a fair 
 footing with that city. 
 
 The resolution was then put and carried unanimously. 
 
 Mr. Robert Tavlor said that in^ reference to the cost of 
 manufacturing that he could go to Montreal or Quebec and do 
 three times the amount of business at three-quarters the tax- 
 ation. That statement was not founded on mere heresay, but 
 was based upon known facts. There had been much' opposi- 
 
18 
 
 tion to the Hchenie from the corner ^roceix, but out of the 
 S70,000 dollars per year which h(? paid out, it is pr<)l»al)k' that 
 u dozen of them are maintained, and yet tliey cry out against 
 any r(;lief from nnjuMt taxation. The present system was 
 utterly unfair and calculated to drive business from the city. 
 If it were not that his i-eal estate tied him to Halifax it would 
 be to his interest to remove his business to Montreal. 
 
 Mk. Stewart said he would like to add a few words to 
 what h(? had already said. The matter of inconu^ has been 
 discussed to some extent, and wlien this Association was first 
 formed they had some idea of reconmiendin^'' it. I can ^ivo 
 you the names of firms who are payin(( ten per cent, of their 
 net income to the City of Halifax for the puipose of doing 
 business, and I can give you the names of other firms j)aying 
 twenty per cent of their income, <me-fifth of their net income 
 for the privilege of doing business, and when 1 say that, it is 
 in addition to the real estate tax. Tt has been urged against 
 ua that we are simply merchants representing personal pro- 
 perty, and in a letter written by James Thompson, Escj., he 
 mentioned three firms — I would just like to menticm this to 
 show the injustice The three firms that James Thompson 
 mentions in his letter pay on $191,000 of real estate, the indi- 
 vidual members of the firm themselves $200,000 on personal 
 property. So you can see, Mr. Chairman, that this effort is 
 not from the business people alone. 
 
 George Mitchell spoke of the obligation due to the mem- 
 bers of the Tax Reform Association for the information they 
 had obtained and the work they had done. Any man who 
 had any idea of business in Halifax and of the way taxes are 
 levied, cannot come to any other conclusion than that the 
 many escape while the smaller number bear the burden and 
 heat of the day. It is" the most enterprising who are called 
 upon to shell out. He characterized the treatment of the 
 scheme in the City Council as disgraceful. The talk of the 
 " poor man's friend " was all rot. The membei-s of the Tax 
 
19 
 
 Rt»form AHwociation were the real " pcxir iimn's frieiul." Per- 
 hajjK the moHt uiijuHtly taxed in tlie city are the matinftioturers- 
 They who (1<» no much for the city ai'e the most hardly (U'alt 
 witk He moved the following resohition : 
 
 That the Halifax Board of Trade approves on the, wlioh^ of 
 tlie re-adjuHtment on a new Itjiwis proposed by the Halifax Tax 
 Reform Association, model«'(l after the system that luis been 
 for A l<in^' time in satisfactory operation in Montreal. 
 
 Mil. William Cuowe said tlwit he had much pleasure in 
 seconding the rest)lution. " After listening tt) the hist few 
 speakers there is very little else to say. As one of the smaller 
 retail men of the city I am very nnich j)leased indeed to 
 endorse the work which has been done by the Tax Reforui 
 Association, I <lo not like the sentiment thrown out that the 
 work has been done by a selfish few. We have plenty of 
 infonnation before us to warrant them in bein^ selfish. I 
 think the interests of the city depends more on the manufac- 
 turei*8 than on the retail grocers. As con<hicting one of the 
 smallest retail dry goods or fancy g(H)ds houses in this city I 
 think I may state without fear of contradiction that I pay 
 more taxes than any five of the retail grocers put together, 
 and I guarantee that I do not do one-ijuarter of the business 
 they do in the year. I have a stock which happens to be in 
 the store when the assessors come round to Jissess. I cannot 
 gauge my imports to suit the assessor. I have had to take 
 them year after year. However I do not second the resolution 
 or endorse the Tax Reform Association from that selfish view- 
 In our mode of taxation Halifax is a long way behind other 
 cities. The amount of labor an<l effort that the I'ax Reform 
 Association has gone to voluntarily to elucidate these things, 
 to bring this matter before the citizens of Halifax for some- 
 thing better, more honourable, just and ecjuitable, is deserving 
 of the close and careful attention of the business people of this 
 community, and the way it was treated in the City Council 
 may be accounted for from the fact that there is a civic elec- 
 tion near at hand. I will close by simply stating that I have 
 much pleasure in seconding the resolution. 
 
20 
 
 Mr. MfciiAKi, DwYKK Huid : Mr. Cluiiniiiin, no much Iuih heoii 
 Haid on this <jueHtion tluit it is not lU'ci'SHaiy for me to suy 
 imu'h. Mr. Sttfwart stated wlicii he HrHt addruHHcd tin- iiujut- 
 iii^ thai the agitation coimncuced Jihout twelve montli.s a^o. 
 Well, .sir, I know that it has exiHted, and mens niinils have 
 been agit:ited on the Hubject for many yeai*.s pjiHt in thi.s com- 
 nnmity. I met on a committee several times down in the old 
 police bwildin^ to see if we could adju.st the existing taxation, 
 jis it was opjnT.ssive to the wfiolesalt? people of this city. On 
 that connnittee was another wholesale mei'chant and we pro- 
 posed a schenu!, a very liberal scale of licenses. The su^f^os- 
 tion was considered a very wise and ^ood one, but it .so 
 happened thrt on the comnnttee were two wholesale merchants^ 
 one of whom had a very large amount of property stored in 
 Pryor's warehouse the year before, in which he had paid very 
 heavy taxes. It was pointed out that unJ^'r the new system 
 of licenses that the.se very wholesale men of the connnittee 
 would get off with .some three, or four oi- five hundred dollars 
 less than they paid the year before. Then the connnittee were 
 accused, as the wholesale merchants are to-day accu.sed, of 
 selfishness in making the change. Now, sir, the gentleman 
 wh'j was acting with myself unilerstood the bu.siness wants of 
 the eonnuunity. He stored large (juantities of goods, and 
 when he found he had to pay large amounts on those goods 
 he refrained from importing them and from doing so after- 
 wards. We were actuated solely in the interests of the city. 
 We felt that the present system of taxation was a clog on the 
 commercial interests of the city, and I say, and I challenge 
 contradiction, that the connnercial interests are the great 
 interests of the city, and without commercial prosperity in 
 this city what have you got ? Where is your real estate and 
 what is going to keep it up ? We felt that the system of 
 espionage, visiting doors, getting clear of large stocks before 
 the assessors came around, was a great clog to the commercial 
 prosperity and enterprise of the city of Halifax. We had to 
 dissolve the committee. We were met by those arguments 
 
81 
 
 that wo were actuated by .selfiHhne-HH, an.l we had to .HhhoIvo 
 the coimnittee, and could not effect anythin^r. But I did feel 
 at that time that the time would come when the merchants of 
 Halifax would ri.se uj) a^rain.st the present Hystem and cry out 
 for a chancre, and the tinie Iuih come. IJnleHH there \h a change 
 made you will have no conunercial prosperity \u this city. 
 Those ^'entlemen who oppo.sed us talktid alH)ut the wholesale 
 men hein^r actuated hy .selHshne.s.s, an<l that they were trying 
 to unload their taxes upon otht^-s. Take any commercial city, 
 an<l take its conunercial house.s out of it and what have you 
 got ? You have iK»thin^r l,ut the skeleton. Take your whole- 
 sale houses out of any city, and you would have nothin^r but 
 deprecijited real estate and sta^rnation. And [ trust that tho 
 ^'entlemen who oppo.sed this .scheme of readjustment will really 
 ^dve the wholesale men of the city of Halifax— the wholesale 
 mercluints of this city who are identified with its prosperity, 
 and who are liere to remain — that they will ^'ive them credit 
 for something besides pure selfishness. 
 
 Arthur P. Silver said this .subject is one that should 
 deeply concern this Board of Trade whose duiy it is to .safe- 
 guard the commercial interests of Halifax, for it deeply con- 
 cerns our wholesale dealers who carry valuable stocks of 
 merchandize, our manufacturers who make use of expensive 
 machinery, our West India merchants, our owners of sJiipping 
 —in short, that important class of our connnunity that beats 
 off' the keen competition that comes from abroad, and meets 
 the rivalry for trade from other Canadian cities and ports, 
 which is every day growing sharper. This business class of 
 our connnunity, employing capital on a large .scale in business 
 and manufacture— this class that stands up manfully to beat 
 back competition from abroad— from abroad ; this class whose 
 enterprise employs labor, distributes wages, enhances the value 
 of real estate, feeds the growth of the city and the .sources of 
 taxation— complains that our present method of assessment 
 unduly and .severely burdens them in meeting their severe 
 
22 
 
 competition, and demands a more equitable system of taxa- 
 tion that shall allow them to meet that competition on equal 
 terms. 
 
 The Tax Reform Association iintl fault with the present 
 method of assessing all the property of the citizens, both real 
 and personal, at a uniform rate, because the assessment of the 
 personal property is utterly defective. Were all the personal 
 property existing in th^ city reached by the assessors, the 
 rate would fall below one per cent.; thus those who escape 
 paying their share on personal property, as defined by the 
 Act, throw on those who do pay a burden of fifty per cent, 
 more than is proper. 
 
 The Act assumes that all personal property is assessed 
 before the rate to be imposed is fixed ; it is only after asses- 
 sing all the property in the city liable to avssessment in the 
 possession of the citizens, that the Act gives jurisdiction to 
 the Board of the City Council to fix the rate. Therefore, as 
 it is a notorious fact that only a small part of the personal 
 property existing in the city is actually assessed, the rate 
 that is arrived at — one and a half per cent. — is not the rate 
 contemplated by the statute ; is not therefore the legal rate. 
 
 It can be proved that there exists in Halifax to-day up- 
 wards of $15,000,000 of personal property. There is probably 
 a vast deal more, some say in the vicinity of $30,000,000. 
 Now were $14,000,000 actually reached for assessment, we 
 would have real estate $15,000,000, personal property $14,000- 
 000, total $29,000,000. To raise the amount at present pro- 
 duced from the taxation of real and personal property, viz. — 
 $285,287, a rate of under one per cent, would be all that was 
 required. This means that if personal property were reached, 
 not in its entirety, but in a reasonable proportion, that real 
 estate ownere, merchants, in fact all rate payers would be to- 
 day paying at the rate of under one per cent, instead of at 
 the actual rate of one and a half per cent, and there wcmld be 
 no complaints. It is a fact that the ratepayers under the 
 present system not only bear their own share of taxation but 
 
23 
 
 bear the taxation on the pei-sonal property of ownere who 
 escape or evade assessment. The gross injustice of the present 
 state of things is therefore conspicuous. 
 
 • The Tax Reform Association believes that while there exists 
 a great deal of personal property that might be reached for 
 assessment that is not reached, yet that there is a viust deal 
 in an occult form— for instance—" moneys invested in public 
 or private securities, moneys in the custody of a bank or other 
 party," (See 300 Amended City Charter) which humanly 
 speaking, it is impossible for assessors to reach. 
 
 The Tax Reform Association have made diligent enquiry 
 concerning the operation of our present system in other 
 cities, and from every quarter where a uniform rate is im- 
 posed on all property, have heard nothing but long and loud 
 condemnation of this system, and disgust and dissatisfaction 
 at its arbitrary and unjust operation The inadecjuacy o* 
 even the most severe and stringen| measures to discover and 
 estimate personalty in its recondite shapes is abundantly 
 proved by many States of the American Union, where even a 
 listing system with tremendous fines and penalties for wilful 
 misstatements has failed to elicit the existence of property 
 that can be eflectively concealed. In spite of oaths and enor- 
 mous fines, a large proportion of personalty escapes all taxes, 
 wherever such a tax exists. It has been found to work disjis- 
 trously wherever tried. Its mistaken principle has long since 
 been recognized throughout Europe and Great Britain where 
 it has been entirely abandoi.ed. It has ever failed to reach 
 occult forms of property and therefore throw undue burdens 
 on property in tangible and visible shape: it has always 
 proved detrimental to business prosperity. For example: 
 the law committee of the Philadelphia Council reported 
 concerning the adoption of such a tax, "That it would 
 injure the business interests of the city and stop or retard the 
 growth of our industrial establishments." They proved that 
 the absence of a personal property tax had made Philadelphia 
 the largest centre of manufactures in the country. " Capital, 
 
24 
 
 business and industrial establishments," they stated, "alone 
 give value to the city real estate. With it the real estate can 
 be made to produce revenue and maintain or increase its value. 
 Without it comes depreciation of values and want of occupp,- 
 tion for large classes of people." They tirmly insisted that a 
 personal property tax would seriously imperil the acknow- 
 ledged commercial supremacy of their city. The Tax Reform 
 Association, deeply sensible of the impossibility, as proved by 
 the experience of all other cities that have tried the system in 
 operation at Halifax, of ever making this system effective in 
 practice and ecjuitable in operation, have recommended to the 
 City Council the al)olition of the tax on personal property, and 
 they presented to their consideration a carefully prepared 
 system, modelled after that of Montreal, based on the value of 
 rentals, a system that has stood the test of long experience, 
 has given great satisfaction, is in accord with the spirit of the 
 times, recjuires a proportionate and et^ual sacrifice from every 
 business man, and which vt-ould without doubt cure the evils 
 that now result from an undue taxation of capital employed 
 in industrial and commercial enterprise, and the consequent 
 harm to the city. The City Council threw out this measure 
 by a majority of only two adverse votes. It is believed that 
 some were misled by erroneous figures, and that, if the pro- 
 posed measure were clearly understood, and its operation 
 grasped in detail, that it would be acceptable to all classes of 
 citizens. The Tax Reform Association wish to be assured that 
 they carry public opinion in their favor Vjefore they proceed 
 further ; when the people ot Halifax are convinced that they 
 are asking for a salutary reform, they feel that then, and only 
 then, will their cause be won, and they recjuest this Board of 
 Trade to give their verdict on the subject. It is of no avail 
 to talk about abolishing taxes on personal property, however, 
 iinless something is substituted that is etfective, workable and 
 fair in operation. 
 
 Professor Ely (Professor of Political Economy in the John 
 Hopkins University, etc.), a recognized authority the world 
 
25 
 
 over on taxation, page 322, "Taxation in American States 
 and Cities," thus refers to the mode of taxation in effect in 
 the City of Montreal on which the scheme proposed by the 
 Tax Reform Association is based : 
 
 "The City of Montreal lays a tax on business which is 
 " a percentage on rent, and it works very satisfactorily. The 
 " percentage is seven and one half, and merchandize is exempt, 
 " and the system seems to give very general satisfaction. Real 
 " estate owners do not complain because they realize that it 
 " helps to bring business to the city and that that raises the 
 " value of their property." 
 
 Next, from many letters in our possession, expressing the 
 general satisfaction with the civic assessment of the City of 
 Montreal, let me read to the Board the following strong 
 expressions of approval : — 
 
 Montreal, January 15th, 1892. 
 
 Gentlemen,— We have much pleasure in answer to vour 
 enquiry for information in stating that in our opinionVhe 
 system of municipal taxation in the City of Montreal has 
 worked satisfactorily, that it is generally accepted as an equita- 
 ble system, and has not been complained of by any section of 
 the citizens. 
 
 H. Shorey & Co. 
 
 D. MoRRicE, Sons & Co. 
 
 Gault Bros. & Co. 
 
 Jas. Johnston & Co. 
 
 Duncan Bell. 
 . H. A. Nelson & Sons. , 
 
 Jas. Corristine & Co. 
 
 H. & A. Allan. 
 
 N. B.— With the exception that we are opposed together 
 with a large number of ratepayers to exemptions of any kind., 
 
 To the Committee of the Merchants Tax Reform 
 A S80ciation, Halifax, K S. 
 
 } 
 
26 
 
 Office Montreal Board of Trade, 
 
 Montreal, February 17th, 1892. 
 Dear Sir,~As requested, I submitted to the Council of thi. 
 Board your leuers of 16th and 26th ults., with the re Jt tt 
 
 I am, dear Sir, yours truly, 
 A. P. Silver, Esq. ^^^"^'^ ^'^'' ^^''^"'^^^' ^'''^^^ry. 
 
 . {0/the Committee of the Merchants' and 
 ! Manufacturers' Tax Reform Association.) 
 
 Quebec, January 30th, 1892. 
 A. P. Silver, Esq., Halifax, N. S. 
 
 Dear Sir,~We send you by concurrent post to-dav a eonv 
 of he Annual Report of our City TreasuL fW 89O.I89T 
 
 tax tfon 'The7: -^ ^'""^^^ ^^ ^^ «^«^- ^^ --i S 
 
 We are. Sir, respectfully yours, 
 
 (S^d.) G. R. Renfrew & Co. 
 
 I; 
 
27 
 
 TELEGRAM FROM SECRETARY QUEBEC BOARD 
 
 OF TRADE. 
 
 Arthur P. Silver : 
 
 Our system municipal taxation (juite satisfactory ; no coni- 
 plaints ; particulars mailed. 
 
 N. Levasseur. 
 Quebec, Marcli 22n(I, 1802. 
 
 LETTER FROM JOHN BEATTIE, MANAGER OF THE 
 • CENTRAL AGENCY, TORONTO. 
 
 Toronto, January Oth, 1892. 
 Mr. Alex. Leslie, Halifax : 
 
 Dear Sir, — Your telegram is received, and for the informa- 
 tion of Mr. Siher, I now beg to say that the working of the 
 business tax and the system of municipal taxation in the City 
 of Montreal generally is (juite satisfactory. 
 
 Trusting that this may furnish the necessary information 
 required by Mr. Silver, 
 
 I am, yours truly, 
 
 John Beataie. 
 
 EXTRACT FROM LETTER FROM GEORGE E. AMYOT, 
 MANAGER OF THE DOMINION CORSET MANU- 
 FACTURING CO., QUEBEC. 
 
 Qi^EBEC, January 30th, 1892. 
 Arthur P. Silver, Esq., 
 
 Halifax, N. S : 
 
 Dear Sir, — Yours of the 2()th is received, and complying 
 with your request, I will indeed with much pleasure, give you 
 an idea of our system of taxation. It is very simple and 
 justice is rendered. 
 
 My kind regards, and believe me, yours truly, 
 
 (irEO. E. Amvot. 
 
 % 
 
28 
 
 The proposed reform is not a venture on an untried path,, 
 hut it is found to he most .-.atisfaetory where it has ]>een tested 
 hy the actual experience of a long term of years. I will next 
 proceed to give in detail a statement of 
 
 THE READJUSTMENT IMIOPOSEI) BY THE TAX REFORM 
 
 ASSOCIATION. > 
 
 Real Estate Assessment on $15,068,000, at 1.50 per 
 cent 
 
 Business Tax, hased on value of I'eal property for 
 husiness purposes as per assessment hooks on 
 !*5 ,080,275, at 10 per cent on value of rental . . .? 
 
 Household Tax of ] of 1 per cent on ahout $7,529,000 
 to yield at moderate estimate, houses at rentals 
 under $125 a year to he exempted 
 
 Banks as at present j^ of 1 per cent paid up capital . 
 
 Licjuor Licenses as at present 
 
 Insurance Companies 
 
 8 Guarantee Companies at $100 
 
 1 Telephone Company 
 
 2 Electric Light Companies at $1,500 
 
 1 Gas Light Company 
 
 Street Railway 
 
 2 Telegraph Companies at $500 .' 
 
 2 Cable Companies at $250 
 
 2 Commercial Agencies at $100 
 
 Incorporated Companies 
 
 Auctioneers and Clerks 
 
 Private Bankers, Brokers, Commission Agents 
 
 Professional Men, $10 each in cases where taxes 
 
 otherwise do not amount to this sum 
 
 Pleasure horses, 300 at $6 each 
 
 Horses kept for working purposes, 400 at $5 
 
 All other horses, say 200, $3 
 
 Dogs 
 
 Ice Carts, 10, at $10 
 
 $225,870 
 
 50,802 
 
 16,000 
 
 16,143 
 
 10,000 
 
 12,000 
 
 300 
 
 1,000 
 
 3,000 
 
 4,000 
 
 2,000 
 
 1,000 
 
 500 
 
 200 
 
 1,000 
 
 700 
 
 1,000 
 
 500 
 1,800 
 2,000 
 600 
 500 
 100 
 
29 
 
 CircuseH, Theatres, License Fees 
 
 Pedlei-s '^^'0 
 
 Tug Boats. ......"".'' 250 
 
 Fines in Police Court," average '.'.■. J,^ 
 
 City Marslml's Fees ^'^^^^ 
 
 Rents of City's Property*. "."'.* . ^''^^ 
 
 Interest as at present '^'^^^'^ 
 
 \ 4,000 
 
 S864,115 
 
 acldeZ h"' r"'"'; ''"' ''" Connnitteeof the City Council 
 added to the aln^ve scheme an income tax, "to be impased ,. 
 a 1 persons in receipt of annual salaries, wages, fix -"en us 
 and mcon>es to the amount of $500 and upM ards "(i Z^ 
 take effect on incomes of less than $500.) " The' rate oT 
 comes fron. $500 to $2,000 to be one per cent On th '" 
 
 W $2000 to $5000^ 
 
 the excess. Such income tax only to come into effect when 
 a person s other taxes fall below the amount that h : uh b 
 labe for under this form of tax, and all other taxes na n 
 be deducted from such income tax." Sul.iect to 1^^. H V 
 and a few minor modifications, the C , m te ^V '''"^• 
 recommended the above method to U^ C^'c Lc^'^^^^ 
 was lost by a majority of two votes The Tax plf a 
 
 ^i^^on have therefore not su^este;i ^^^iJZ^Z ^ 
 ^aTitX^"^ '' '' ''^'''' '''^ ^« ^-">^ the occasion i^ 
 
 It will be apparent from the statement I have given th-tt 
 the proposed re-adjustment will yield a snrnln. . , 
 
 of $20 000 or 0S29 non ^ ,u ^ f^uiplus, say roughly 
 
 'a'^yj,yjv\j oi ^dZ,0{)l) over the amount of «!*^di 'toq <. 
 
 eoleetea f.™ rato-p.,e...,. I„ „„,., \f^^ '^J"^ 
 native is. to ...uee the rate ol tlj C^ ta"!: 1^ 
 
30 
 
 of the Montreal Itusiness tax. The latter alternative is 
 strongly ree()nunen(le<l for two renHons, — 
 
 1. The rate of 10 per cent, on 10 per cent, of aHHessed value 
 of premises is much in excess of the Montreal rate of 7J of 
 7^, the proportion bein^ 100 to 5()|. This means that, 
 although the Halifax business class will be greatly relieved 
 by the proposed change, that their taxes will still be much 
 heavier than the Montreal ratepayers. It is desirable, there- 
 fore, to reduce the business tax if possible, and make it level 
 with that of Montreal. 
 
 2. The small retail dealers are opposed to the change on 
 the ground that theii" taxes will be increa.se<l. Were the 
 present law impartially carried out against this class, they 
 would in many cases find the business tax Jis proposed a 
 relief: but, as a nmtter of fact, a reduction of from 50 per cent, 
 to 60 per cent: is con)monly made by the jtssessors off' the 
 actual value of the stocks of small dealers, wliile a reduc- 
 tion of not more than 20 per cent, is made off* the actual 
 value of the heavy stocks of merchants. A reduction in the 
 rate of the business tax would still further tend to disarm 
 the aversion of small tradesmen to the proposed change who 
 really have no sound reason for their alarm. 
 
 In regard to the business tax, it has much to recommend 
 it. As a general rule, with few exceptions, a man's busi- 
 ness is conunensurate with the store or warehouse that he 
 occupies, and its extent is indexed by his rental. There is 
 also no sound reason why the occupant of a spacious building, 
 carrying on an important business without merchandise, 
 should not contribute the same taxes as a neighbor occupying 
 a similar building where from the nature of his business he 
 , requires to store goods of value. The city furnishes the same 
 advantages in each instance — the same police protection> 
 streets, lights and business facilities. Hence under the pro- 
 posed reform a basis is arrived at which would diffuse taxa- 
 tion equally and e(|uitably among all business men. This 
 form of tax cannot be shirked or evaded and does not 
 
IS 
 
 31 
 
 a<linit of aVmNCM, favoritiKins, and exemptions, as the pei-sonal 
 property tax. Moreover, it is easy to fix and collect, and 
 would admit of economical administration. 
 
 In regard to the household tax, it is desi^ied to replace 
 the present tax on furniture, just as the business tax replaces 
 the tax on merchandise and machinery. 
 
 The same points may be alleged in its favor. A man will 
 usually reside in as good a house as his income will warrant, 
 and hence a sound basis is arrived at. At present one house- 
 holder is often assessed on his furniture for twice tlie amount 
 jis his next door neighbour, who has an etjual amount of 
 furniture. Such irregularities and unfair mode of at 
 random tissessment would be corrected. This tax is also 
 a certain one, does not admit of evasion, abuses or deceit, 
 is easy *to fix, and cheap to collect. It would distribute 
 taxation e(|uitably among all householders. It is pro- 
 posed to exempt all househoMers from this tax who occupy a 
 house at a lower rental than SI 20 per annum in the same 
 manner as it proposed to exempt small shopkeepers whose 
 rental falls below #50 a year. 
 
 It is estimated that the combined proceeds from the busi- 
 ness tax and the household tax will amount to the sum 
 that is <lerived at present from the personal property tax. It is 
 claimed that it will correct the present abuses that undoubtedly 
 exist, remove the disabilities that capital employed in business 
 and manufacture at present labors under, and difiTuse the bur- 
 den of taxation equitably and fairly. 
 
 A feature in the new system is that individuals and cor- 
 porations who use the public streets should pay an adecjuate 
 remuneration. It is deemed fair that street railways, electric 
 companies, telephone and telegraph companies, that make use 
 of the public streets for their advantage and often make the 
 streets unsightly and inconvenient, should pay an adequate 
 remuneration for their privileges. Then horses, it is con- 
 sidered, should be made to contribute some adequate revenue. 
 The tax on professional men is very light, only $10, and is not 
 
82 
 
 intended to be collected where taxes to that anionnt or over 
 are already paid by him, and any taxes otherwise paid are to 
 \)G deducted from tluH amount. 
 
 Auctioneers are to be raised in some decree to a figure pro- 
 portionate to that of most other cities. A tax of Jii>50 is 
 proposed on commission merchants, private bankers, an<l 
 brokers. A tax of $25 is also proposed on tu^ ])oats, excur- 
 sions boats, and other steamers for hire at $25 each. A tax is 
 proposed on pedlers. 
 
 In regard to special taxes, however, the Tax Reform Coni- 
 mittee, while proposing to tix the tax upon a few of the more 
 important objects of taxation, propose to leave the others to 
 the regulation of the City Council, under a general provision 
 in the charter enabling that body to deal with the subject by 
 by-law, subject to the approval of the (jlovernoi'-in-Council. 
 The Committee suggest that there sliould be one Chief Asses- 
 sor appointed, a supervising head to the Tax Department, an 
 officer of ability and intelligence at a salary commensurate 
 with his important duties. 
 
 The Merchants' Tax Reform Association submit their pro- 
 posals to the consideration of the Halifax Board of Trade. In 
 the words of their report, they firndy believe this change 
 would give the city of Halifax a system of taxation, sound 
 and defensible in theory and just and efficient in practical 
 operation, to replace one which is wholly incorrect in princi- 
 ple, inefficient and unjust in operation, and that the proposed 
 system, while making no radical change in the taxation of 
 the mass of the connnunity, would correct the inadequacy of 
 existing methods to discover valuable interests, and the conse- 
 quent injustice that is damaging to public morality, and would 
 relieve capital employed in industrial enterprises from the 
 imminent danger now existing of being driven abroad, and 
 with it all the manifest benefits that come to our city from 
 its expenditure in our midst. It meets the danger that is now 
 threatening Halifax, that the higher order of business will be 
 diverted to other cities with fairer municipal arrangements ; 
 
/ 
 
 Mr. Silver read u *..i, 
 "^'•--tiosw,Wc:,^ j I;":' ;;- ^-'- '-1 lotto, fro... 
 personal property tax 3^"'^.*'*" ^'"*""^''^« tux inste.ul of the 
 tI.o change. ^ ^'^^' ^'»r»--.s.ng co,..plete satisfaction with 
 
 THE LAST KESOLL'Tloy. 
 
 Mr. t. (;. ,s,„it| 
 '•'■PU<liate,l any ,„ 'tivo of „",« n '^'"' '"■"^'"y"'-" "*' "'" -'ty. 
 
 irnpaf /7^„;.._ /• ., *«voi of jf f.-oiM .> .. 
 
 «>rne,,t desire for the welfare of ! '■'"" " ''""P ""'' 
 
 "to puWic were aware of If. rt'-''' '";''/''' ''"""™' "'"' 
 ;v. h the .ulvocate, of ta.x rel™ „ ''" "^ ^■""''' '^ 
 Hallulay .seconded, thefonowi;!,"^:'"''''' ""'' •'"'"- 
 
 w.th a view of a bVter SStTo? h 'T ""^ ^'"^ ("""■ "S 
 the Tax Reform AssociaticTrnZ '"^ '"■"P™"'' ''y 
 
 eon.d.ation „f the whele^^j^^^rof :il!ie"SC ' " - ' 
 
 The Resolution „p„n,«i„,p„tw,.p..ed„„„ni„.„„..,. 
 
84 
 
 / 
 
 APPENDIX. ^ 
 
 QUEBEC SYSTEM OF CIVIC TAXATION. 
 
 Yielding, 1890-91 
 Real Estate Household Tax, 15 per cent on value of 
 
 rental .* $U)9,277 
 
 BuMinjsH Tax 12^ per cent on value of rental of busi- 
 ness premises 47,194 
 
 Poll Tax payable by every man over 21 yeai-s of age 52,70G 
 
 Horses and Vehicles 5,691 
 
 Proceeds of licenses to ferrys, boats, butchers, ped- 
 lara, street railways and revenue from all other 
 sources of taxation 275,500 
 
 S550,3G.S 
 
 COMPARED TO PROF^^SED TAX REFORM FOR HALI- 
 FAX, WITH BUSINESS TAX AT 7A PER CENT 
 OF 7i PER CENT OF ASSESSED VALUE 
 OF BUSINESS PREMISES. 
 
 Real Estate, 1^ per cent, $15,058,000 $225,870 
 
 Household Tax, ^ of 1 per cent, $7,529,900 16,000 
 
 N. B. — The present Real Estate Tax, with the pro- 
 posed Household Tax, will make the rate of 
 these two forms of taxes 17| per cent on 
 value of rental (assuming rental at 10 per 
 cent of real value). Quebec rate is 15 per 
 cent, and there is a proposal on foot to make 
 it 17| per cent. 
 
85 
 
 BuHineNM Tjix 7 J per cent on 7 J per cent of assoMHe*! 
 
 value of hiiMineHH prenuHCH, $6,080,275. 27,077 
 
 Banks HU4a 
 
 Li(}Uor LiconHeH 10,000 
 
 luHurance ConipanicH 1 2,000 
 
 GaH Company 4,000 
 
 Pr(x;ee«l8 from taxes on horseH, street railway, auc- 
 tioneers, Electric Light Cos., Telephone Co., aiui 
 
 all other sources ... '^ • .000 
 
 Total ^S42,090