New-York tribune., 1916-01-16

OF cent ghllon OF easVi04-0 "''N
cents q horsepower on automobiles. II
was hsld that the adoption of these
eax measures would mean that the
average automobile owner would be re-
euirsd 70 pay an additional charge OF
sl7.bo, or q total tax Of sSs.6l, for the
privilege Of owning and operating g
car. Local and nstionsl motoring or
v.n,xstions. as we'll az the associations
Identified With tho trade and industry
soined IN the protest sgainst this dis
elimination. Il Is due 20 this general
complaint that the statement from Sec
retsry McAdoo WAS Issued
The statement was issued In com
pliance 20 q request from Senator Gore
Of Oklahoma, that an estimate be made
bv Secretary McAdoo Of the probable
revenue which would be raised should
the proposed tax on automobiles, tea
and sugar he levied. In his reply, Sec
retsry McAdoo fixed the amount at
sIso0oo, 900. simultaneously with this
ne gave out the following statement;
Secretary McAdoo's Explanation.
"The suggestion that tax on the
horsepower Of automobiles and other
internsl combustion engines might be
considered by the Congress seems 20
he misunderstood in many parts Of the
country. A circular Just issued by the
California States Automobile Associs-
tion and signed by ID. L. Watkins, sec
retsry,' illustrates this. This circular
says that federal tax Of 90 cents on
the horsepower Of motor cars and 1
cent per gallon on gasolene
." means 70 you each year
nearly twice as much tax ss you
"We now have mer at Washing
ton fghting this bill. and are bad
ly IN need Of financial support
"Will you not Join this club and
help US defeat this unjust meas
ure? II you 60 not feel ike you
can contribute eight dollars $500
for membership. then send Us one
dollar $500. or whatever amount
YOU will.
Nov Is when we need your sup
port, so please give Us All early
response.
THE suggested tar on horsepower Of
motor cars refers entirely 20 a tax on
the automobile before II leaves the fac
'OI0, ~ DC bntA ~ blAf manu- @tAe va -
and paid once only, 10 tho Federal gov
ernment. For instance, an automobile
With g 20-hoTsepower engine would be
taxed t10 in the hands of the manu-
fscturer. No yearly taxation of auto
mobiles and motor cars similar 70 the
license taxes Of states and municipali-
ties Is contemplated, nor has II, az any
time, been suggested that Federal
tsx be imposed on automobiles already
in use by private owners
Federal Gasolene Investigation.
While Secretary McAdoo's statement
clarifies the horsepower tax situation
as far as the individual automobile
owner is concerned, the proposed tax
OH gasolene and Federal investigation
% the increased cost OF this necessary
fuel are still subjects OF paramount I
terest In motordom. The virtual pro
hibitive price a. which Casolcne is now
sold is effective throughout the country,
though the rise IN price during the nine
months ended December 81 last IS
moro marked in the East than iu the
South and Middle West On the Pacific
Coast the increase during this period is
hardly appreciable when considered
alongside Of the wholesale prices IN this
IA section Of the country. This IS illus
trsted IL the accompanying table, COM
. piled BY Petroleum Age
At the present time gasolene IS selling
wholesale in New York City st twenty
two cents q gallon, which represents an
increase of more than So pcr cent over
the price quoted last April. The gen
ersl practice Of the garages IN TINS city
10 TO charge consumers five cents above
the market price, but in several OF the
larger establishments the automobile
owner is required 10 pay thirty cents a
gallon for his gasolene. Last April the
Wholesale price was twelve cents d gal
lon, and al retail gasolenc could be OBJ
tanned at from seventeen 90 twenty two
cents.
No Evidence Developed.
According TO the "Horseless Age. tho
Department OF Justice has not as yet
instituted prosecutions on behalf Of the
government based or the increased
price OF gasolene, because no evidence
has been developed which would JUSTIN
charge that the increase IS due 90 any
action in violation Of the Federal law.
"This, IN effect, is what Attorney Gen
eral Gregory has told Chairman /. y.
Webb, Of the House judiciary Commit
tee, in response 20 q resolution intro
duced In the House by Representative
Steenerson. calling upon the depart
ment for information as 20 any action
or the high price Of gasolene.
"A letter from the Attorney General
says, further, that as the Federal
Trade Commission has authority to
cover that subject. no investigation has
been organized by the Department Of
Justice for that purpose. Still further,
the letter says, the district attorneys
and other Investigators throughout the
country are required 70 scrutnize
closely all increases in the prces OF
stable commodities and 20 report
promptly any evidence tending 70 show
thst such increases were brought about
nv agreement or combination.
"The Federal Trade Commission mas
already undertaken an exhaustive III,
yestieation Of the gasolene prices ana
tho attitude of Congress, II is now sara,
ia 20 permit this inquiry TO proceed
without embarrassment or interference
which a second investigation might
bring about. ....;,,o EpI-
"A resolution by Representative Fui,
lar OF Illinois, calling on the h0uso
Interstate and Foreign Commerce Oom-
m;,tee 10 enter upon an investigation
~ Tho casolene situation, has not as
70. been acted upon by that DOdy. ia
view OF the inquiry under way Dy l"
Fcderal Trade Commission u may no.
do so. The Fuller resolution says III
part:
Hints Of Proposed Tax influence.
"In order 20 raise the necessary
revenue for the support of the govern
ment IL has been proposed, among other
things, TO levy q tax on gasolene. Inc
producers Of that article of universal