Evening star., 1932-04-18
AUTO SALES TAX
FOUGHT At HEARING
AS DISCRIMINATORY
Talk of General Impost Re-
vived in Testimony to
Senate Group.
COMPARATIVE FIGURES
ASKED BY COMMITTEE
Industry Sicker Than Ever, Head
of Rockne Motors Tells
Probers.
BY the Associa ted Press.

By the Associated Press.
Talk of general sales tax was re-
vived before the Senate Finance Com
mittee today by opponents of the pro-
posed levy on automobiles
Committee members asked that COM
parative figures be supplied to show
the estimated income from the tax on
automobiles, trucks and accessories now
in the bill and from pa and ~ per
cent general sales tax
A little earlier George M Graham,
head of the Rockne Motors Corpora
tion had led group of opponents of
the automobile sales tax in a concerted
drive against that levy. They said they
favored a general sales tax, excepting
food and clothing, to one which they
contended Disseminated against their
industry.
Sees Blow at Wages.
The automotive industry, through
Graham, told the committee the pro-
posed motor vehicle excise tax would
be "a direct blow at the Nations
wages"
Our chief concern here today is the
American pay roll" Graham said
Every other consideration is unim-
portant. What the country needs is en-
ployment, wages. These are the only
factors that can bring permanent re-
covery.
Balancing the budget is, of course,
imperative, but there can hardly be
any dissent to the principle that this
must not be done at the cost of taking
a job from the man who has one, or
of keeping idle the man who seeks
employment.
1T is the duty of the automobile
industry, and of all industry, to make
every effort to expand employment.
I'VE oppose motor vehicle excise taxes
because We believe they are direct
blow at tn Nations wages. We are
certain that presentation of the facts
will establish our contention"
EdseI Ford Present
As he opened his appeal for elimina-
tion of the taxes of 3 per cent on pleas
ure cars, per cent on trucks and !
per cent on tires, parts and accessories,
which were voted BY The HQuse. ham
introduced leading ng mes III Che auto
mobile industry who were Feated here
and there in the crowded committee
room.
Among them were Edsel Ford, Walter
Chrysler and Alfred P. Sloan, jr., presi-
dent of General Motors.
With emphasis, Graham told the
committee that the automotive indus
try is "Sicker than it has ever been
since its start"
Earnings. he said, fell from $3.50, ,00O.-
600 in 1929 and $155, 900 900 in 1880 to
$1,000 900 in 1881, the figures not in
rluIipo fha Ford noy,,nonu
only the courage and optimism of
our manufacturers" Graham asserted,
''has kept the business going.
"On the present volume, few auto
mobile manufacturers will be paying
dividends by the end of 1882. The au-
tomobile industry, famed for its mar
velous conceptions and constructions, is
lower than it has been since it started
Its great upward climb.
Volume Drops Sharply.
'"Our volume fell from 5,35s,00o We
hicles in 1929 to 2,389, 900 in 1881, a
reduction Of approximately SIS per cent.
Even worse has been the start for
1882. The five-year average for March
is 323. .604 cars, as against 116,076 cars
this year. decrease of "a per cent
We have fallen off 40 per cent against
March OF last year, when We shipped
1s2,l18 cars"
Graham emphasized that what his
industry "resents" Is discrimination. -
Pointing out that the estimated revenue
from the tax is S56,o00,0 600, he asserted
"the returns do not justify the hazard
He said that if the tax is imposed,
I'VE have no recourse from adding the
net amount to our delivered prices"
Questioned by Senator Couzens, Re-
Continued on Page 2, Column So