The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-12
REEVES PROTESTS
AUTO TAX BOOST
Says Industry Is Already Dis
eliminated Against by U. s.
Government.

strong protest against an increase
In taxation OF the automobile Industry
either by State or Federal law was made
by Alfred Reeves, general manager OF
the National Automobile Chamber or
Commerce, at the luncheon wednesday
OF the Automobile Dealers Association.
Mr.. Reeves showed that the industry Is
now paving s143. 0O0,0 0e annually to the
Federal Government, with State fees OF
s64, 600 900 and other fees OF 5O.Oo0.ooO.
or total OF s257, 600, 900. Although car
rying this annual burden of more than
quarter of a billion dollars, Mr. Reeves
says suggestions are made by Secretary
Of the Treasury d. IL. Houston In his
report issued Wednesday which will add
& 100 per cent. increase in taxes on the
motor car dealer and manufacturer.
MIR. Reeves spoke enthusiastically or
the coming national automobile shows In
January, under the auspices or the Ma
tional Automobile Chamber OF Commerce,
as having a successful influence. lie
said the expositions both in New York
and Chicago were expected to bring
about a keener resumption or ouyinsI
and that the automobile industry would
as n result show return to period or
activity that would augur well for the
future.
The New York show which will open
in Grand Central Palace January will
give prospective buyers wonderful OPP
portunity to look over motor cars. with
several hundred models on the floor the
display will be one never exceeded In
the history of the automobile Dealers
are looking forward to the show to prove
the buying public has again entered the
market for cars. and there has been FOR
the last month an optimistic feeling as
regards the show.
News that further tax Is proposed on
the automobile owner has caused dealers
to give this matter serious thought The
dealers are loath to believe that an In
dustry just about to show recovery from
a period OF heavy depression would be
burdened in such manner. and they are
strongly against the tax. Mr.. Reeves
| in hts address to the dealers said:
1.-THE automobile industry Is paying
heavy taxes and wants to pay heavy
taxes to cover the expenses OF the war
and the present needs of our Govern
ment Just now ii is not alone paying
taxes along with other industries, but
a great many discriminatory taxes
1 against the modern method of transpor-
tation by motor vehicle.
Unfortunately, a great many people
In talking taxes on motor cars think In
/ terms Of limousines. forgetting that II
per cent. of the cars in use sold origi-
4 nally at less than $1,000, list price. Not
! alone do some think that more taxes
should be placed on the car owner be-
/ cause he has vehicle which increases
his efficiency but they would go as far
! as to add taxes on the motor truck
which by the widest stretch Of the
/ Imagination could not be considered
! vehicle for recreation.
Secretary Houston wants to increase
taxes 100 per cent on cars. parts and
| accessories He would then add fifty
| cents per horse power on motor vehicles
| and two cents per gallon on gasoline to
! obtain s290,000,0O0 more from car
/ owners, making our total taxes more
/ than one-half billion dollars This would
| mean that our industry would be asked
! to bear an amount equal TO one-half OF
/ the pre-war budget of tho United States,
whereas many other industries not
nearly 40 important remain untaxed.
why should the largest manufacture
/ ing industry be thus penalized?
This would mean an additional $50
on every buyer of $1,000 car. besides
present sales taxes. registration fees and
property taxes.
Most of these taxes now fall on the
farmers and the small town business
/ men, because the farmers own one-third
of the 100000 passenger automobiles
in the country.
"Unfortunately. the singing out of the
automobile has been On the assumption.
true ten years ago, that the car was a
( luxury to be enjoyed only by the rich.
The fact is overlooked that more than
/ 100, 900 doctors own automobiles and
that they are an essential part OF the
equipment of statesmen. contractors and
hundreds Of others whose time is Of I'm
! pOrtance."
Mr.. Reeves also said that the motor
car business was now running at less
than a so per cent. basis except in the
case OF two or three factories, although
the full year would exceed all records,
approaching 100000 cars and $4,000
| trucks.
Motor car mileage last year exceeded
twenty-five billion miles, with a total
passenger mileage, averaging three pas
sengers car. in excess of sixty-six
billion miles. Official figures show rail
road passenger mileage TO have been
only forty-six billion miles.