Resolution IL was then proposed by. Mr. W. J. Keswick, Chairman of the Council, seconded by Mr, 3. W. Car-hey, American councillor, for the adoption of the Council's recommen. ation for the imposition of the fur charge of land tax, Municipal Rates ad Special Rate and increase in licence fees generally. Yn proposing, the re Mr. Keswick said {inter alia:
"When the Budget for 1940 was in course of preparation, it was apparent that expenditure was on the appreelably higher level than income, The Council. accordingly requested you at the last Annual Meeting of Ratepayers {0 agree to increased taxation, The Increase, which took the form of a 50 per cent. surcharge, did not come Into effect until the second half of the year. It was, of course, realized that a substantial deficit would be incurred during the first fait of the year, but it was estimated" that reve-hue during the second half~of the: year 1940 would more or less balance expenditure and there seemed a rea. sonable prospect of achieving yeed budget in 1941 without fur-creased taxation. "During the ear, however, exchange depreciated, the local price level rose and there hag been a heavy increase in the cost of living. As a result, ordinary expenditure for 1940 is expected to. be some $7.600,000 in excess of the total Agure provided in the budget, Ordin= ary income, on the other hand, is approximately $4,000,000 greater than the amount anticipated, so that the final deficit for 1940 will be roughly $8,775,000 as compared with the incident and voiced their sympathy for Mr, Keswick and Mr. Okamoto, As the "most likely "suspect," Hayashi was being held for examina: tion by the Consular Police, they said, adding however that Mr. Hayashi could not be considered guilty until tried and convicted by a coun.
It was believed that an official of the Japanese Consulate-General, po haps Mr, Tatekl Horiuchi, Consul General, would call on Mr, Keswick to offer his sympathies, budget nyure of $573,200, These are estimated figures, but itis improbable {hat the Anal deficit for the gear will Bo" materially diferent from. the figures quoted have already stated that it was roped that income. and. expenditure for the second half of 1040 would more less bel once, By October, however, the High Cost of Living Alfowanee for the star had been twee {rsea from tne 40. percent, Tevel Sblarniag of the beginning of the pean, and the Rice Allowance granted Tine chinese. star not serving tinder Latter. of Appointment. had Shown a-stendy: inerease; in April far a2" in. October It was $1073, There had been substantial Increases inane cost of all commodities, and although revenue was coming in well, Mhad'not risen in the same proper: lon "as had expenditure," During October and. November the Council war working on a emall deielt. That This Weft way not larger was due the fact thai. the High Cost. of Living Allowances "granted to" the Hatt "wore stil Inadequate, In De= ember the Cotnell was compelled to {ace recount of this fact, "There was discontent. throughout the Manteipal "IL appeared to your Council that st was clearly in the Interests of rate= payers that they should be Invited to Ziart poying the bill at once rather {hen ave to face higher taxation by Golaying facing. the. situation "unfit the Annual Meeting in Apri hod delayed unlit Aprit Wwe should have had fo.asl you for a surcharge somewhere. inthe neighbourhood. of per cent, instead. of the 40 per ent surcharge for. which we are faking you today, A further 20 mil= lion Woilars has 18 be found, and the major portion of this sum must neces sarily come from General Munlelpal Rate and Land Tax. "Acne per cent. fate with the correlative, Lend Tax estimated to produce $1,400,000, and the 40 percent surcharge now re commended bythe Council should bring in $16,120,000, "There has been silting for some time past" Sub-Commitice of the Municipal Eeonomy. Committee ox-amining possible sources of revenue, 'A number of the recommendations of his. "Sub-Committee have alread been adopted by the full Economy Committee. and by the Council itsd The Interim report of this Sub-Comtnitiee as been published, "One nd-Vantage of the calling of this Special Meeting of Ratepayers is that mediate advantage can be taken of the majority of the recommendations of this Sub-Committee. in regard to Licence Fees, 'The Increased Licence Fees which i shall ask you to vote when 'T come to the next resolution fon the Agenda are estimated to pro" nce during' 2081 35,500,000 more than the sum received from these sources 1040. "This gives towards the 20 million dollar defeat @ total sum of $19,000,000, The Amendment Mr. ¥. Hayashi then introduced his amendment to Resolution 11 seconded by Mr. C. 'Fukuda, vigorously oppos= ing the passage of' the Resolution recommended by the Council. Among other things he said:
Representative of all the general opinion of all Japanese ratepayers, We hereby oppose Resolution 2. pro= posed by the Shanghai Municipal Council which provides for a 40 per cent. increase of surcharges on the and tax, the general municipal tox, and the special rate.
"At the time when, on behalf of the Japanese ratepayers, we acknow= edged' a taxation bill calling for 50 er cent. increases at the anintal rate: avers' meeting last April, our ap: Proval of the Shanghai Municipal Council's draft was conditional on tthe enlargenfent and active funetion=
Text read from the printed page and cleaned; old type leaves the occasional error.