Evening star., 1932-06-18
TAX RUSH" BUYING
HELPS INDUSTRIES.
Many Lines of Trade Bene.
fitted by Sudden Rush
of Orders.
BY BRADLEY w. TRENT.

NEW YORK, June 1e-With the
excise taxes going into effect en- June 81,
numerous industries affected have re-
celVed a supply Of rush orders, both
from ultimate consumers and retailers,
IN an effort to anticipate such taxes.
rms tax rush" has caused some in
oustrles to work day and night and on
Sundays.
In some instances department stores
and dealers plan to add the 10 per cent
tax to their present inventories and
thtls pass the increased costs along to
the consumer, but in other cases-local
TIRE dealers. for example, with more
than four months supply on hand-the
tax VIII nct be added until the dealer
peglns to sell goods on which he will
nave to pay the tax.
MAKEUP on Tires.
From Akron comes news that a mark
up OF 10 to IS per cent on tires is
planned by rubber manufacturers. This
would more than offset the excise tax
The tax is assessed On the basis of pa
cents pound on tires and 4 cents a
pound on tubes, which means that the
actual rise in tax excise alone on first
line tires will approximate 5.85 to 7l3
per cent. Inner tubes may be lifted Is
per cent, second and third line tires
1922 per cent and truck tires 10 per
cent.
From Chicago and Cincinnati comics
the information that business of leading
Scapmakers the past week has been
unusually brisk because of the excise
taxes on toilet soap. Although neither
Proctor & Gamble nor Lever Bros. have
yet decided how they will handle the
tax situation, Colgate -Palmolive-Peet
Co. has advised customers that the new
tax will be added to the present price
list. JobberS and retailers have been
accumulating toilet soaps for several
weeks. Retailers here in many in
stances plan Immediately TO add the tax
cost on their present inventories and
pass along the higher prices to con-
Sumers. But soap, like tires, has plenty
of competition.
Ships are steaming to this port with
copper cargoeS, because after June u
there will be in effect a new import
,, duty of cents a pound on the rec
metal. Foreign producers therefore are
hurrying not only enough copper II
cover orders sold for delivery this year
but as much additional metal as pos
sible. The import duty is nominallJ
imposed for a tWo-year period With
lluBC tOppcl SLO~hS Oh IldllQ Tie u--s-
, mate consumer merely yaWnS when il
| is suggested that he might stock up il
, advance of the tariff because 1t i
| recognized that copper demand vii
have to improve considerably befor'
the way will be paved for higher prices
The theater tax applies only OF
tickets selling for more than 40 cents
so this permits all bat the larger thea
| tCrs to escape the tax. In the larger
cities the average motion picture thea
ter admission is 35 cents. Just now the
motion picture business is trying t
eliminate excessive Indebtedness eithel
mortgage or bond and high production
costs.
Impost on Oil.
! The general practice of the legitimat,
| theaters here is to add the tax on al
tickets bought after next Tuesday. A.
I a result. some Of the cheaper seats foI
! the popular hits are being disposed o
/ several weeks in advance at tax-fret
prices. On cut-rate tickets the tax vii
| be imposed at the rate of the admis
! sion charge on the face Of the ticket
not at the cut-rate scale.
Pennsylvania oil refiners have stepped
up production to meet rush order:
placed in anticipation of the coming
excise tax of 4 cents gallon on do
mestic lubricating oils and cent /;
| gallon on gasoline. One company hac
to employ extra men to fill the emer.
| gency orders as many of its customers
| tried to utilize all available storage
space. Another company booked 95t
drums of oil from a concern that nor.
mallv only buvs 70 drums every two
| months. Locally the demand for spo
gasoline has improved considerably
within the last week as iobbers. retail
ers and users are filling all availabl
storage in an effort to anticipate taxes
tCopyright, 1892