Evening star., 1928-06-03
BY J. A. FOX.

With the automobile trade freed of
a burden estimated at $66, 600, 900 an
Y1ually by the removal of the purchase
tax in the past session of Congress, q
new target Is bobbing UP for the guns
of the industry-ancient seizure laws,
under which cars may be arbitrarily
taken by the Government when detect
.ed in Illegal liquor enterprises, despite
the innocence Of the owner or henor
of any offense.
It Is an angle of the business that
presents two clear-cut issues. Not only
are there the thousands of individual
cases in which innocent parties are the
sufferers In seizures. but there Is also
the effect on the industry as whole,
for as result. 1t is contended that
finance companies maintain their rates
on a high level as protective measure
IN lnstallment plan buying, much as
Go insurance firms in prescribing rates
for bad risks" in other lines.
Losses Passed On.
This, in the final analysis. means
that the losses, placed at millions an
rually, are passed on in part at least
to the general buying public, and If a
saving can be effected by remedial
legislation, the public Is promised, in
turn, bEle resultant Deneut.
Toward the closing days of the recent
session of Congress, a subcommittee Of
the House judiciary committee held
hearings on a bill introduced by Repre-
sentative Bachmann, Republican, of
West Virginia, to amend the laws
responsible for the present situation.
and witness after witness, representing
the various branches of the motor world
appeared to urge enactment of this
measure to allow an avenue of redress
where rightfully due.
In testimony and through written
briefs 1t was pointed out that the ques-
tion was one that had long been hang
Ing fire. and that conditions were pro-
gressiveiy growing worse. and that even
IN the long run the Government itself
Is a loser
A good outline of the case which the
automobile men, the principal losers,
naturally, are attempting to establish
In seeking the legislation was present.
ed By Joseph @. MyerSon, representing
the Commercial Investment Trust of
New York City, which finances INSTALL
ulent purchases Throughout the United
States, Canada and Europe, handling
about 100000 cars annually in this
country.
AS be explained, there are three
statutes under which the Government
may proceed TO confiscate a motor
vehicle for illegally containing liquor
the national prohibition act: section
3450 Of the Revised Statutes, which
Is an internal revenue section, and
certain sections Of the tariff act of
1922 having to do With customs viola
tons. It Is the last two that are uf1-
der fire, for the prohibition Law gives
adequate protection To innocent owner
or henor, and. Ia addition, provides
that there may be no corfiscatiof1
where there is no conviction,
Limited Recourse Provided.
Even under customs seizures where
the charge Is made that the car was
used to eTade payment Of duty, there
Is some limited recourse. Myerson
pointed out but where cOnfScat3on Is
made Under the internal revenue sec
ton. which sets UP for its case that
the operator Of the car was c0f1cealIfag
OF conveying liquor for the purpose Of
cDncealing it to eTade payment OF an
internal revenue tak, there Is no re-
dress Nia3eysg i the Government wins
It's case.
TO show how far-reacEing Is the sp-
plication Of this Law, q decision OF the
United States Gupre1le Court was
brought Up where, In Q seizure case,
rendering dissenting opinion, Justice
Butler cited asax1 Illustration that If
a car happens 10 BE- parked III the
etreet and pegson comes along and
drops pint Of liquor Ia it. and the
put there 70 eFade the tax, the owner
Of the car would ioSe 1t, despite the
fact that he was entirely innocent Of
the Tsfanae 7FprsfsosF1
The added seriousness Of the eatu-
alton was emphasized By the witness
IL the fact that IN some sections of
the country only the internal revenue
section now Is being invoked In setz.
ures. He admitted that there are
c2ses where II is not possible 70 do
Otherwise than institute proceedings
undeg this section, but insisted that
wherever internal revenue Or customs
Laws we're Enyoked. the innocent should
be projected
Cites Government Position.
Citing the burden that IL also placed
On the Government. MyerSon said
the finance companies have 10 fight
for seazeo cars IS matter Of principle.
tsZSs this may tie them ap for tSo OF
three years. stCrsge charges, which the
Government n1iigt pay. continue 10
raogat, and Id the end the Government
may have 70 pay bsli Df 500 or $500
for q single cax and get anywhere from
SIS - $50 for II when sold.
Testimony along this line was given
Dy @. e. Eas3ch. general manager of
the National Association of Finance
Companies, embracing 27s companies
which handle automobile paper He
r1a6e clear tpe poant, also brought osat
by MyeTBon, thai 10 matter what care
IS exercised Ia allowing credit, cars fab
into ti2s hands of the Iawiees. lie. too,
emphasized that Il is not only the
laenogs vino sa9eF. but owners from
whom care may be stolen, Or even bor-
Owed ancer false representation.
He figured a. q rough estimate that
Tf2e Government NaE eo1hScatlng cars
yearly with a Ysl5e of $500 900 an6
that 3 god part of this Tas dead ioss.
either 10 owner or Iaes1ey II was
Eszneh WIG brought up the question of
fnascsng rates. declaring
The fact should never be overlooked
tast the gossex sne expenses caused by
egnAAezts0ns zte In large measure
PISSED es3 III the 400 go c3tlzegas who
bsy rev O. used cars ezeh yesr.
Many Cary Insurance.
HauY e9fspanles carry z special
fl1@ n insurance known ~ Three
Z & --1gl.seigs1, CONVERSION enc cogfls-
cS3lgsg. & Feeaett08 III the losses die
- oQEfAscatk31 ei1oulc De fellowed By
,gBeTlng q hEssnesng charges, and thus
. ceefeaae IN The price of ears Gol6 On
1F1ets .2Ienls 81 EBge fEaa3 analysis, en-
actmeF4t 81 this Dssl VIII benefit directly
as2c indirectly the z2G0g 901 owners of
Fypgog Yebicles ip tits country"
Cseogge r.. Eargiaeaosnsg, secretary "
ts3s ktH9sgz3 Motors hDeepaz1ee Cggps.
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