Evening star., 1925-10-25
AUTO MEN PLEDGE
LOWER CAR PRICES
IF TAX IS REPEALED
Promise Buyers Will Get Full
Benefit From Removal of
S15O,OOO,O 900 Levy.
TOBACCO AND THEATER
INTERESTS ASK RELIEF
Both Agree to Pass On to Public
Any Reductions Made in
New Measure.
By the Associated Press.

By the Associated Press.
Promise Of automobile manufactur
ers to pass on to buyers, through
lower-pSiced cars, full benefits of
repeal of the $3.50 600, 900 annual Fed
eral tax levies against this industry
was pledged yesterday TO the House
ways and means committee.
Urging repeal of the Ievjes against
passenger automobiles, as well as
those on automobile trucks, tires and
accessories, the National Automobile
Chamber of Commerce reported il had
the signed pledge of every manufac-
turer that if the tax was repealed II
would be cut entirely from the buy
ers' purchase bill.
Lower priced cigars and theater
tickets also were promised by repre-
sentatives Of these industries il the
Federal tax on cigars and admissions
were reduced. Spokesman of the
Motion Picture Producers and Distrib-
utors of America declared benefits of
repeal of taxes on lower priced admis
sions would be passed on fully to pa
irons.
Appeals for Relief.
The committee. which will start
work week from tomorrow on the
drafting Of tax reduction bill. heard
appeals for relief from these taxes
from more than % representatives OF
national organizations.
Secretary Mellon, however. gave no
place for these reductions in his pro-
gram submitted earlier in the week
He suggested that the leYies on ad-
missions, netting about $4,000. 900 an
nually, be retained and those on pas
senger automobiles, yielding about
SOC. 900, 900, also be kept in return for
Federal appropriations for good roads.
! He did propose. though. that the tax
| on automobile trucks, tires and acces-
/ sories be repealed.
After hearing protests from the
Mortgage Bankers Association ard
! the American Farm Bureau Fedora
ton against Mr.. MELONS proposal
! to repeal the estate tax. Chairman
Green announced he favored repeal
of the Federal tax after period of
SIX years.
Favors Six-Year Plan.
Mr.. Green indorsed the plan sub
mitted Friday by Frederic DEMO. for
| the national committee on inheri-
tance taxation, recommending repeal
after six years with Immediate Inodf-
ftcation of the rates TO provide for
maximum tax on an estate to col
lect not more than Is per cent of the
entire estate. The report further
proposed that ihe credit allowed for
payments on an estate to a State be
/ increased FROM % to so per cent Of
| the Federal collection
Mr.. Green previously had opposed
/ repeal of the estate tax, but had
agreed to plan to increase the
credit allowed for payment OF State
! taxes. He said he thought the six
year period would give States oppor-
tunity to work out uniform in
! heritance tax laws to prevent eva
sion of the lew
Questioning representative Of the
automobile industry as to how much
Of saving actually would be given
buyers if the Federal levy were re-
pealed. Representative Trea dway, Re
publican, Mass, inquired if 1t would
mean actual cuts in the advertised
prices of cars or just elimination of
| the tax now added to these prices.
1t was admitted that only the added
tax TO the regular price would be
dropped.
Protest Auto Tax.
Protests against continued taxation
| of passenger cars, because it is easy
to collect" George c. Graham, CIeve-
land. representing the National Auto
mobile Chamber of Commerce, disput-
ed the theory of Secretary Mellon that
this levy should be retained because
of the Federal aid in road building
Automobiles, he said. already paid
their way on the roads in numerous
State and municipal levies
We believe that consumers should
ha nanolizoi
''and 1 have letters from the motor
vehicle manufacturers, from the indi-
vidual companies, pledging to lower
the delivered cost Of the motor vehi-
Gle to the buyer to the full extent of
| the relief as soon as these taxes are
| repealed
Oscar Brown, Syracuse, n. Y.
! speaking for the American Automobile
| Association, also assailed the stand
! of the Treasury for retention of the
! passenger car levy. Recalling that il
| was the policy of the Government tn
! aid in road construction many years
| before any Federal tax was levied or
! vehicles, he urged repeal of all auto
| mobile and accessory ieVieS. which he
! described as war emergency taxes.
| Appeals for repeal of these taxes
! also were presented b" E. P. Chal-
fant, Motor and Accessories Manufac-
| turers' Association: Davis Widman.
/ Automobile Body Builders Associa-
ton: F. o. Van Cleef. Rubber Asso-
citation of America; P. H. Kelly, Ma
tional Battery Manufacturers Asso-
,iation; F. Duncan Black, Automobile
!, Equipment Association of Chicago.
and Charles F. Butte, Automobile
Clubs of Rochester, n. Y.
Levy on Misfortune.
Representatives of the accessories
associations argued the tax on auto
mobile parts constituted levy on
misfortune, by penaliZing the motor
| st who had hard luck.
Presenting the appeal of the Motion
| Picture Producers and Distributors Of
America, Jack Connolly and Charles
C. Pettijohn of this city, argued the
admissions tax lis in a very real.
sense a tax on a necessity
THE amusement tax was excusable
in the beginning" Mr.. Pettijohn said,
'only because it was an emergency
war measure. The conditions which
made it a necessity are now definitely
things of the past and it ought to be
abolished as soon as conditions will
permit"
| The tax was described by A. Julian
~ ~, ( 4