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DEBATE IS WARM, WITH FEW PRESENT Despite the pleas and protests of Hon. G. H. Ferguson, Conservative Leader, and H. H. Dewart. K.C. (Southwest Toronto), the Provincial Government carried through second reading in the Legislature yesterday its amendments to the Corporation Tax Act, which alter the assessment basis of independent telephone com- panies, impose a 5 per cent. tax on all wagerings at Ontario race tracks, and impose a $15,000 per annum tax on_§ll_ltquor export companies. With the "rake-oft" plan through second reading, a race against time will now be staged to get the meas- ure on the statute books in time for the tax to be collected from wagers made at the Woodbine meeting. which opens on Saturday. It is ex- pected that the amendments will go to committee this afternoon. back to the House tor third reading and final approval on Wednesday, and be given Royal assent on Thursday. Any hitch in this program will come perilously near exempting this year's Woodbine wagers from the 5 per cent. tax. Voices of Hon. G. H. Fer. guson and H. H. Dewart Are Only Ones Raised in Serious Protest as Hon. Peter Smith's Taxation Amendments Are Given Second Reading The expected "filibuster" to talk the proposed rake-oft 131331171732 Outside of the arguments of Messrs. Ferguson and Dewart. not a word ot opposition to the measure was voiced. An is usual on Mon- days, there were comparatively few members present, but the Govern- ment absolutely declined to accept that as a reason for postponing discussion until Tuesday. The At- torney-General saw even less merit in another suggested reason for one, day's postponement of eonsidera- tion-that of the doubtful constitu- tionality of the clause referring to the tax on race-track betting. The Government's position in re- gard to taxation of race-track wager- ings was placed before the House by Attorney-General Haney in a few brief sentences. He scouted the sus- gestion that it was inconsistent on the part of 0. Government "boasting of high moral standards" to par-tici.. pate in the proceeds of watreringr at the race tracks. When legitimate industry was being taxed, he asked. why shouid an industry regarded in some quarters as unsavory escape? "Partners in Crime." lf, as the Conservative Leader had declared. said the Attorney-General, this measure involved Government partnership in crime, then it was also much more true of the Whitney Government, which originally passed a law taxing the race tracks of the Province. "The difference," he said, "between tho partnership in crime then and now is this: In those days there were four front-benchers on the Government side of the House. two of whom afterward became Cab. inet Ministers. who were directly in- ttfi,',",',',','.'"' in the profits' of the Jockey c u B. death'ldid no; materialize yesterday, "This. at all events," he proceeded, "is an honest attempt to raise rev- enue. The revenue that this Govern.. ment has been drawing from this source for the past two years has been an honest attempt to raise rev- enue. This, is not a licensing sys- tem; this Province is not licensing race-track betting houses., .. L TUESDAY, MAY 16. "Race-track betting houses were imposed upon us. The Province taxes legitimate industry. Shall the Province be prohibited from taxing an industry that is not In the full) sense legitimate? The industry of speculation on race-tracks is legiti- mate by grace of the Criminal Code" of Canada." The Attorney-General proceededl to refer to Mr. Ferguson's previous' allusions to Abe Orpen, and his connecting of Mr. Orpen's name with that of the Attorney-General of, the Province. Mr. Haney said Ite; had known Mr. Orpen for many years. and gave him credit for being the one frank "sport" who admit-, ted he was in the race-track andi betting business for what he could. get out of it. "He (Mr. Ferguson) alleged that Mr. Orpen has been the benefiaiary of favors from me since I have been Attorney-General." said Mr. Haney. "That statement and the imputation I characterize as false, as malicious.. ly and deliberately false. and I chal- lenge him to bring a charge to that effect." When the bill was first called Mr. Dewart arose to request a day's postponement in view of the can. templatod caucusing of the Liberal party on the measure, and in con- sideration of the sparse attendance. There would be no difficulty, he said. in getting it through this week in time to apply to the Woodbine meet. Not Constitutional. Mr. Ferguson also counselled a day's delay, but he argued from an- other angle. He cast doubt: upon the constitutionality of the Provin- cial Government passing a measure to compel the Jockey clubs to collect 5 per cent. tax and 3 per cent. rake- oft, when the Dominion Criminal Code 'rpeciftcany stated that on wagerings of $50,000 and over the club should not deduct and retain more than 8 per cent. He expressed that view very strongly. in spite of the AttorneyoGeneral'a assurance, and that ot the Provincial Treasurer, that legal opinion had already been secured on the point. Informal discussion on the mat- ter waged back and forth across the floor until the Government ap- parently began to suspect a. block- ade. and the Attorney-General de- manded a ruling from the Speaker as to how many times Hon. Mr. Ferguson and Mr. Dewart could address themselves to the point. The two members having protested that their previous remarks had been in the form of questions. and not state- megts. the Speaker ruled that they were both at liberty to speak upon the principle of the bill. Stand Over for Day. Before Messrs. Ferguson and Dew- l art made their speeches. however, W. F. Nickle. ICC., Kingston. arose to express his belief that the meas- ure was constitutional. differing on the point from his Leader and from Mr. Dewurt. nut the member for Kingston was also of opinion that, in view of the doubts expressed by the other two oppositioniets. the bill ought to stand a day, to give the Government an opportunity to sub- mit to the House the legal opinions upon which it based its assurance of constitutionality. Hon. Mr. Ferguson then address- ed himself to the principle of the measure, twitting the Attorney-Gen- eral at length upon his excursion into tcpartnerahip of crime with the race-track' proprietors, and recall- ing all he had said and written in denunciation of race-track gambling. He challenged him to submit to the courts the question of whether 0n- tario could reduce the number of days in which racing could be car- ried on. Wipe It Out Altogether. "Are you in earnest?" he asked, and sat down to await, reply. _ ikrritG%C--.i am seriouil in want-