Evening star., 1932-01-22
MOTOR MAGNATES
TELL HOOVER TAX
WOULD HALT GAINS
Employment and Industries
Would Receive Setback,
Leaders Declare.
GRAHAM TO TESTIFY
ON SALES LEVY PLAN
Motor Officials Hold Session Here
to Draft Protest at Hearing
in House Tomorrow.

The administration proposal to levy
q per cent sales tax on automobiles
was denounced before President Hoo
yer this afternoon as restrictive" and
discriminatory" by seven leaders OF
the automotive industry.
Calling at the White House at the
conclusion of an executive meeting at
the United States Chamber of Com
merce Building, at which was drafted
a protest to be lodged tomorrow with
the House Ways and Means Commit
tee, the leaders told Mr.. Hoover the
proposed tax would seriously hamper
the industry in recovering from the
economic depression.
Alfred P. Sloan, president of General
Motors, said the delegation had told the
President their industry considered IL
unfair to impose such a sales tax at
this time.
Adverse Effect on Jobs Feared.
I'VE feel that we have made our con-
tribution," Sloan said through bet
tering our product, continuing volume
production and in many cases reducing
prices.
we feel definitely that such tax
would put the brakes on continued vol
DTne DTOQuCIlOll, Jllclcpy dlC1IlAlS oN
versely employment and the sales OF
industries allied with our own.
I'VE are willing to pay our part OF
any general tax But We feel that
per cent sales tax on automobiles alone
is discriminatory against our industry"
Those who talked with the President
were Sloan, w. c. Cowling of the Ford
Motor Co., Roy D. Chaplin, Hudson
Motor Co.; Alvan Macauley, Packard
Motor Car Co.; chairman of the Nation
al Automobile Chamber of Commerce;
C. w. Nash, Nash Motors; George
Graham, Rockne Motors, and Robert
Graham, Graham-Paige Co.
Graham to Testify at Hearing.
George Graham has been selected by
the group to represent their industry
before the Ways and Means Committee
hearing tomorrow.
The industry recognizes unemploy-
ment as the now isolated germ of de-
preston. according to these leaders, and
is subordinating consideration OF profits
for the time being to that OF giving
Jobs
A fair program of taxation, in their
opinion, will enable the industry to
carry out its plan for increasing en-
ployment, while discriminatory excise
ievies will increase automobile prices to
such point as to nullify application
of the only possible remedy for the
depression"
The motoring public will be repre-
sented before the Ways and Means
Committee by Thomas P. Henry presi-
dent. and Samuel Waldon, chairman,
American Automobile Association. and
J. 3orton Weeks. president, American
MotorisC Association.
NacTPr trea stlrpr National
Automobile Dealers Association, will
present the views of the dealers. many
of whom will be present from various
sections.
Allied industries will be represented
before the committee by j. o. Tew,
president, Rubber Manufacturers AS
sociation; T. w Litchfield, Litchfield
Rubber Co.; Harvey FireStone, jr.. Fire
stone Rubber Co.; F. B. Davis. jr.. vice
president. Rubber Manufacturers Asso-
citation: William O'Neill General Tire
g. Rubber Co., and w. H Lalley, Kelly
Springfield Tire Co.
Sloan Hopes to Restore Buying.
Voicing a sentiment corroborated by
his fellow motor magnateS, Maculey
explained this policy of the industry as
recognizing "the fact that We are only
as close to prosperity as we are to
relieving the distress of unemployment.
There is but one remedy for this de-
preston No matter how long we de-
lay its application, that remedy is one
of creating jobs"
That a restoration of public conf
dence is the vital need of the moment
was the opinion expressed by Chaplin.
I'VE have been talking a great deal
during the last two years about max
ing the most Of a bad situation" he
asserted. In the automobile industry
we have become convinced that this
is a profitless procedure. The thing
to do is to change the situation from
bad one to good one.
Tax Held Penalty on Industry.
Every unit of the industry has
sought to create confidence by setting
the stage for better conditions of en-
ployment-a project achieved by the
development of automobiles that those
who have money will want TO buy. Start
consumption on the part of those whose
capacity TO consume has not been re-
duced to a minimum and it will pro-
vide employment that will make every
body a consumer"
Cord and Nash contended enactment
of a discriminatory tax on motor We
hicleS, parts and accessories at thi,
time would represent a penalty upor
industrial initiative and courage.
Cowling quoted Edsel B. Ford as fol.
lows:
We believe that the automobile ha,
become so indispensable a part of Amer
ican life that tax on automobile own
ership in addition to the license anC
gasoline taxes now levied would con,
stitute a highly discriminatory actor
against millions of American citizens
chiefly of the working class