Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-02
NEW BUDGET HITS
CANADIANS MOST
Number of American Prod
ucts Affected by Changes
Proves Small.
BY CHARLES LYNCH.

Special Dispatch to The Star.
OTTAWA, Ontario. June 2.-Premief
r. b Bennett presented his first budget
to Parliament yesterday. and what he
did to the United States manufacturer
was mild in comparison to the wallop-
ing the Canadian taxpayer received.
Mr.. Bennett surprised every one with
his budget. He altered only 200 items
in the tariff against the United States
manufacturer, although he was expected
to boost several hundred items. Gus
toms duties were raised on anthracite,
oranges, furniture and higher-priced
automobiles.
U. S. Investors Hit.
Americans with investments in Ca
madam companies were nipped by MFR.
Bennett, who ordained that, beginning
next July, an income tax of Q per cent
will have to be paid by all foreign In
vestors receiving dividends from Cana
dian companies.
Mr.. Bennett spoke for two hours and
half in presenting his budget. The
galleries OF the House Of Commons
were crowded with dignitaries. foreign
Ministers and conSulS, politicians and
business men. The Countess of Bess-
borough, wife of the governor general
Of Canada, listened intently.
A deficit Of 100000 was an
nounced by MFR. Bennett. New taxes
will be required to meet it. The i'm
posts he plans are increase In the sales
tax from l per cent to per cent, re-
introduction of Scent postage. increase
of the income tax on corporations ana
stock companies from to 10 per cent
and a new special excess tax Of l per
cent on all imports.
Sees One Bright Spot.
The only bright spot In Canada $
financial picture, Mr.. Bennett stated,
was the fact that the Dominions con-
version loan OF $3.50 900 900 has been
subscribed up to $639, 816,500. He en-
phasized that during his regime no
fewer than rs American manufacturers
had established plants in Canada, and
made it clear he was sticking close to
his Canada first" attitude. His con-
clusion brought a great ovation from
his followers. -.
For duty purposes, automobiles are
Sl 200 In value. from $1,201 to $4,000,
and above $2,1o0. On the first. there
are no charges in duty: on the second,
the general tariff is increased from 2712
Der cent to 80 per cent; and on the third
the intermediate and general rates are
increased to sc and 40 per cent, re-
spectively. Drawback of duty for home
consumption will no longer apply on
automobiles within the latter class,
while drawback in respect Of the other
two groups will not be paid on spe-
cited list Of made-in-Can parts.
Entry of used automobiles Is pro-
hibited unless as settlers effects or trav-
elers' vehicles.
Coal Rates Raised.
Duties of 40 cents and 81 ton, re-
spectively, are imposed upon anthracite
coal and coke under the general tariff !;
the rates on bituminous coal and
screenings are raised to rs cents, gen.
eral tariff and rates on charcoal are
set at $3.50 ton.
The leather schedule secures increased
rates under all tariffs, the alterations
affecting kid upper feathers, sole leath-
ers, East India kips. betting leather and
betting, glove leather and leather gar
mentS.
American magazines and periodicals
are made subject to a specific duty
of IS cents a pound under the gen.
eral tariff, except in the case Of such
as may be placed on an exempted list
by the government.
Increases under the intermediate or
general tariff, or both, are made on
agricultural and other food products.
The more notable are live hogs, fresh
meats, bacons, hams and shoulders.
she'll eggs, cheese, hops, powdered
milks. peas, Indian corn, hay, f1eld,
root and garden seeds: canned fruit,
vegetables, raisins and oranges.
Iron and Steel Included.
Tariff changes affecting iron and
steel include increases on steel plate
wire netting. machinery, safes and mis-
cellaneous manufactures Of iron and
STEEL with decreases on green saw
ctrixa skAal for Hnlfl