The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-17
DUTY ON U. s. AUTOS
HARD ON BRITONS
English Dealers Say High rir.
urc Is a Threat to Their
Business.
DOUBT EFFICACY OF TAX
Special Correspondence 10 THr stv

Special Correspondence to TIM srv.
LONDON. Sept. 30.-Of the many pro.
tests raised against the new taxes ont.
stronger han that which has follows,
the announcement of a SO l-3 per cent
tax OH imported automobiles. American
cars are affected almost cAclus y.Iv
cars are no longer IN demand whils
cheap American automobiles are sell.
iry IN huge quantities both for pleas.
ure and commercial uses.
The Motor Trade Association. which
is one of the strongest organizations o.
automobile owners I'm the world. ha,
taken the matter in hand and is dc.
termincd to obtain at least q hearing
from the Chancellor Of the EXchcauer
before the new tax Coinc into effect.
A vast amount OF matter is being pub
Islled to protest against the new meas.
ure and no effort is 10 lie spared 10 90.
tain a redu ,tion Of the tax.
The chief argument advanced bv ,hs
vi VI NV sfi'ANl 4tNrbf IlD
is that a great British industry 70
threatened with extinction by the nov
taxation. 1t IL pointed out that $50.
V0O, 900 of British capital and the means
of livelihood of tens OF thousands OF
British subjects are placed In jeopardy
inasmuch as the mainstav of tho Brit.
ish automobile trade Just now is the
sale of imported cars. The ChAnc.,-
lor's argument hat the main reason for
the new taxation Is the conservation o.
bullion In the country Is dsSaileI by the
automobile owners. who assert that a.
the present rate OF exchange the Amer
lean manufacturers prcfcg to leave iha
money in British banks, The Motor
Trade Association advocates Il ieduy.o on
of the tax to 10 per cent.
Three Arg umcnts for Tny,
The Chancellor gave three REASONS for
his proposal: CD to restrict imports:
CD to reduce consumption and promote
economy; CD to raise revenue
Dealing with the first point the .tsso.
citation shows that the restriction Of
Import is ~palpably intended for rh,
conservation OF bullion. On the Chauc.l.
Tors " figures the money alleged 10
go out OF this country yearly would 30,
the merely nominal amount o. tbou,
slI,2o0,oto. Obviously, however. 4 q
50 l-j per cent. duty is imposed the de
or imported cars must drop rJasif-r.
ably. Assuming that the estimated ag.
ure OF 40 per cent. as given as the proc.
able drop III the sales by the leading
agents Is approximately accurate. this
brings the estimated export OF bullion
on imported cars to about $lU.yup.uvp
- another surprise Ar,tr.
Emily the Who'll" question OF the IRE ..
exchange as affecting the conservation
or bullion has been overlooked VA "
nay, the actual fact is that THIS c>,.
mated ten millions Is large An cNac.
~gcration. As the rate OF ~ hang. a. A,
present and as 1t has been FOR some
little time 1t suits some OF the .iweri.
can manufacturers better to l.N, their
money in TINS country.
IRON the mere figures 60 far ava lah,c
10 the Motor Trade Association. ~ his
hypothetical $4,000, 900 considerably
more than $4,000. goo belonging 10 A,uc..
lcan motor manufacturers is AZ p.,~nH.
and has heerTor some months--rpot
ing in British banks. Nj only that M,
sums to;aliIng moI than SIX figures ser.
ing OF this American money have been
round already specially .armar.~i f0-
me neNt British war loan. When tHs
rate or exchange * normal these ,ue-.
can hr'ns may -; CCurso dtuu'.l tue -
mlt'ance OF their money