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Ni oy ei tN ola Ne A a ie rage r-- For--short of mind reading on somebody's part--how else could a car have so many features you want? How else could it be so personally and particularly yours? ' That's what may well pop into your head the first time you curve your hands © around"the wheel of a new Chevrolet and drive, smoothly and smartly down the street. RTE Nin te THE STYLIST IN YOU will spark to the lovely lines and colors of that exclusive-in-the-field Body by Fisher. You'll appreciate and applaud the exquisite workmanship, the fine fabrics and interior fittings. Particularly for you, there are such special conveniences as the handy little cranks that control the ; by No-Draft Ventilation and the push- buttons that Jock the doors, » . for Chevrolet brings you BIG-CAR QUALITY AT LOW COST. YOUR PRACTICAL, PENNY-WATCHING SIDE- will give you the "go-ahead" when you discover that Chevrolet's the low-priced line that makes gas and oil go farthest. You can revel in Chevrolet's Big-Car style, comfort and performance 'with a - 'conscience clear YOUR INSTINCT TO PROTECT those you love will be gratified by all-steel safety and ease-of-handling of the new Chevrolet. Your gentlest foot pressure brings swift, sure response from the brakes, Steering is amazingly easy and shockproof... And you don't even have to take a hand off the wheel to operate Chevrolet's exclusive vacuum-power gearshift! to the Be wise! Keep your present car in-good running condition by bringing it to us for skilled service, today! - CHEV A PRODUCT OF Harold R. Archer Motor Sles now and at regular intervals, delivery of your new Chevrolet. Come in for a complete service theck-up BIG-CAR QUALITY AT LOW COST untit- you secure ROLET GENERAL MOTORS (. 15478 En LJ DOMINION-PROVINCIAL AGREEMENT (continued from page 1) Ontario editorials have praised this plan. We are gratified with such praise but deeply concerned that it is associated with the idea apparently held by some in Ontario that a portion of Manitoba's «debt retirement will be possible only because of the dollars "obtained from other parts of Canada through the Dominion-Provincial Tax agreement; and that Manitoba's debt will be paid, in a degree, with dollars originating in Ontario. It is extreme- ly important that the good people of my native Province of Ontario should know that this idea is quite incorrect. Having a Provincial debt of their own Lo. Se oS NR a Sa > to pay, they must be quite unenthus- istic, and rightly so, about helping to pay Manitoba's debt. We want them to know that the Manitoba Government has not in any way taken advantage of them in signing a Dominion-Pro- vincial Agreement which we think advances the best interests of every part of Canada. May I, therefore, Mr. Editor, with your co-operation, use the facilities of the free press of Canada to explain our position lest a wrong impression in Ontarié and Que- bec upon these points may be or be- come the basis of public policy which is against the best interests of Canada, On the surface--but only on the sur- face--it may appear as if Manitoba would benefit at the expense of Ontario _- and Quebec under ,the Dominion- ~ Provincial Agreement, One thing which creates this surface appearance is the way in which Dominion taxes are collected. Let us get below this surface appearance and examine th reality underneath. First let us note that the Dominion _ collects its own federal sales taxes, excise taxes and succession duties through its own federal revenue agencies in Ontario and Quebec from ~ manufacturers and. imperters in those provinces, - What the Dominion thus collects appear to be dollars originat- ing in these two provinces. In reality, however, most of these taxes are in- cluded in the price of the goods against which they are charged and are thus passed on to the consumer. On such goods consumed in Manitoba it. is the Manitoba™ consumer who ultimately pays these taxes, The "tax dollars which the Manitoba consumer pays originate in Manitoba. Let us take a'second example. In the current freight rates hearings be- fore the Transport Board of Canada, Exhibit 131 filed by the Canadian Pacific Railway shows that in the 10 years from 1936 to 1946 inclusive, 65.8% of the operating profits of the C.P.:R;- were made in Western Canada. Unfortunately no comparable figures ate available from the Canadian Na- tional Railway, The dollars repre- senting 65.8% of these C.P.R. profits certainly originate in Western Canada. But because they swell the revenues collected from the railway head offices by the Quebec or. Ontario revenue offices of the Domipion Government they appear on the surface to originate in these two céntral provinces. Let us take a third example, The last time we made a check we found that 50% of Manitoba provincial cor- poration __income X was collected from corporations with head offices outside of Manitoba and another 25% from corporations wholly owned out- side Manjtoba. The head offices and shareholders were largely in Ontario and Quebéc. - When the dollars earned by the Manitoba branches are taken; for example, to the head office in On- tario, and taxed there, they appear on the surface to originate in Ontario. But these profit dollars made by the Manitoba branches' of Ontario. con- cerns do not originate in Ontario. They originate in Manitoba. In: eb making of profits in Mani- < toba by branch offices and by corpora- tions owned by absentee shareholders, the usual social costs have to be in- curred. When to meet these social costs we of the Manitoba Government try to collect adequate provincial ra upon such profits we face insuperable difficulties. Most of the Shareholders live in Ontario and Quebec beyond our jurisdiction, We cannot tax them directly for a contribution towards the social costs of the 'profits in which they share. Constitutionally we have no power to tax them indirectly. We can only pile on heavy provineial cor- poration taxes. But if such taxes become too heavy we drive business out of our province. - With these limited taxing powers confined to Manitoba only, we can never recover adequate percentage of wealth created in Manitoba by corporate endeavour (except by some Balkan policy of "Manitoba for Manitobans"), But the Dominion Government with un- limited taxing powers effective in all parts of Canada can collect taxes on Manitoba created wealth no matter where in Canada it may be, For these and other reasons Mani: toba has never been able in the past to collect as much from its provincial corporation income and inheritances taxes as jt will receive in lieu of them under the' Dominion-Provineial Agree- ment. But because this is so, it does not necessarily follow that the Domin- fon is paying Manitoba under the agreement any significant number of dollars which originate in other parts of Canada. For when the Dominion, either through its Manitoba or Ontarjo or other revenue offices, collects federal taxes upon wealth originally produced in Manitoba and pays back to Manitoba a part of such federal taxes under the Dominion-Provineial Agreement, the Dominion is merely restoring to Manitoba dollars which originated in Manitoba, By such pro- + 4 + by Manitoba provincial taxation an| cess it certainly and obviously is not Manitoba dollars transferring to which originate in Ontario, amount of 12.6 millions which Mani- In the face of these figures it would be interesting to know whence and how ating in 'Ontario, ~~ . In the six years 1940 to 1945 the prairies produced net new wealth to the rate 926 million per year, © Yet before the Dominjon-Provincial Agree- ment was signed, such was the Cana- dian economy, such was the fiscal set- up between the Dominion and 'the Provinces, that the prairie provinces could not retain by provincial taxation upon the wealth which originated within their boundaries, sufficient revenue to maintain adequately their provincial services, That which, amongst other things, the Dominion Provincial Agreement does, is to assure that a reasonable part of this new wealth produced on the prairies remaihs in, or comes back to them, to support adequate provincial services there. True, we could retain what we needed for this purpose by other avail- able and less pleasant methods. So far, we as Canadians have rejected these methods as unhelpful to the unity and welfare of our country, We have favored the Dominion-Provincial Agreement as much the best method, Thus the object of this agreement is not to bestow upon Manitoba dollars originating in Ontario, Its object is . This not a theory. It is now a fact, During the four years, 1943 to 1946 in- clusive, the: Dominion Government collected in Manitoba Corporation, in- come and inheritance taxes which averaged over 66 millions per year, exclusive of any taxes on Manitoba' branch office profits, This 66 millions is over five times as much as the toba receives from the Dominion Gov- ernment this year under the agree- 'ment apart from statutory subsidies. Manitoba receives any dollars origin- the value of 6.6 billion dollars or at C-11 THERE'S MORE COKE ~ FORYOUNOW ° Ask for it either way . . . both trade-marks mean the same thing, Port Perry Bottling Works & I F you are entitled itled to repayment of the Refundablo Savings Portion of your 1942 Income Tax, AND-- Savings ) il You live at a different address, or have changed your name duo to marriage or other reasons since filj named at ng your 1942 Income Tax return, YOU SHOULD COMPLETE THIS CARD If you have not yet done so Please act now. ,, + All cards should be in the De Remember! There are complete details of delivered to cach household in Canada during recent weeks, any reason, you did , left at your address, not get. your card or Hon. James J. MoCann Minister of National Revenue partment by Nov. 30th what to do on the cards an insufficient supply was 80 to your nearest district Income T, office your local Post Office, where cards are available, hig Li If you have a change of name or addres It will assist in the proper delivery DEPARTMENT OF NATI Taxation Division . 8 to report do it now, of your cheque! to reserve out-of the large amount of the dollars which originate. in Manitoba wup' wqodjuviy uy sedjatos ofqnd =U0dd UBIPBUB) OY} Jopun oy puw fairm ded | Sf this modest measure of fiscal justice? Finally, it, is we Manitobans' our- selves who' are retiring our public ojunbope opiaoad 0} junows o[quuosea |debt. We are not asking our fellow- ® 'oaqendy pum opwjug 03 mo[y Awo|Canadians in Ontario and Quebec to pay our debt for us either under the Canadian will object to|agreement or otherwise. And we are - very anxious that they should know that this is so, through the medium of the Canadian - free press, including your own newspaper, : Yours faithfully, STUART GARSON, Premier of Manitoba.