Evening star., 1934-01-28
Special Legislation Exempt
Ina New Cars From Taxes
Speeds Buying.
Special Dispatch to The Star.

abolishing all taxes on passenger cars
built after March / of this year. He
has urged German motor manufac,
turers to form a closer organization and
to refrain from unfair competition. he
has patronized a new company formed
for the purpose of building network
of first-clasS roads all over the Reich
for the exclusive use of automobiles.
On the basis of present statistics the
manufacture Of automobiles in Ger
many has been doubled as compared
with last year by the German law ex-
empting new cars from automobile
taxes. These imposts have weighed
very heavily on motor car owners IN
many prospective buyers from getting
car However cheap an automobile
might be, the German owner was ap-
palled by the thought of the operation
and maintenance costs he would nave
to bear.
Exemption Helps.
The tax-emption law promulgated
on April 10 has changed this feeling OF
diScouragement. It was followed by a
rush Of German buyers to their car
dealers, anxious to turn in their old
machine and to acquire new one. For
they had to pay taxes on their used
cars, while the new ones were tax ex.
empt. With this inducement few could
resist the temptation to buy a new
passenger machine.
The Hitler automobile law exempts
from all taxes all new passenger cars
and motor cycles registered for the first
time after March l. This act, be 1t
noted. does not apply to motor trucks,
which has hurt American exporters,
since large proportion Of the declining
number of American cars sent into the
Reich are lorries. The Nazi govern
ment explained that the wear and tear
on the roads by trucks was much
greater than that by passenger cars,
and since the purpose of the automobile
tax was to provide funds for the main
tenance of the highways the lorries
could not we'll be exempted. On the
other hand, however. it is only fair to
note that American passenger cars
shipped into this country benefit by the
provision of the tax-exemption scheme
as much as the German.
Exemption Is Indefinite.
The exemption has validity for an
Indefinite period of time, and is not re-
stricted to the first proprietor. The
status of the car registered originally
after March will not be changed by
sale or transfer.
Some automobile dealers have filed a
noisy objection on the ground that the
privileged position Of the new cars has
resulted in a considerable depreciation
In the value Of secondhand cars. As
1t Is figured that in at least four cases
out of five the German car buyer turns
IN his old machine in part payment for
q new one, 1t can easily be seen that the
dealer has some justification for raising
Z protest.
On the other hand, the law creating
the Federal Automobile Roads Co. has
been received with applause on all
sides. The project, when completed,
will give Germany something that no
roads extending all over the land for
the exclusive use of motor cars. This
measure was first announced by Adolf
Hitler in his Labor day speech on
May / at Tempelhof Field Berlin, as
part Of his scheme for fighting unem-
ployment. The law itself, promulgated
by decree on June a. provides for
gradual construction Of vast net Of
special motor vehicle highways branch
ing out to every corner OF the Reich.
Cyclists, pedestrians and horse-drawn
vehicles will be forbidden the use OF
these new roads, so that the motorist
will be able to realize the dream of his
life and speed as fast as his car can
carry him.
Finest Roads Sought.
These roads are to be constructed of
the finest materials and to be so rugged
that the heaviest trucks can rumble
over them without affecting them All
the known safety schemes are to be
used and the roads will be laid out by
engineers practically "as the crow
flies" All grade crossings are to be
eliminated by bridges or subways and
the motor highways will be fed by only
a limited number of crossroads, ex-
cept at the main tra tic arteries. The
cost of maintaining these highways
will not be provided for from the pub
Lie treasury, but will be met by special
fees to be levied by the company on
the motorists who use them.
The German Automobile Roads Co.
Is created by law branch Of the
German Railways Co., but 1t is to oper-
ate as distinct entity But like
railway company. the new automobile
concern has the possibility Of expro-
priating property under the right OF
eminent domain. The financing Of the
highways corporation is to be separate,
too, from the railways company It
will have its own capital, although 1t
is reported that the German Railways
Co. will own 100 per cent Of the COM
mon stock. The administrative council
of the German Railways Co. voted on
July to advance the affiliate concern
50,000,000 reichsmarkS, so that 1t
could commence operations at once.
Used as Work Stimulus.
Why is Hitler so interested in this
project? First of course, it is as he
said, profitable way of finding work
for thousands of his countrymen now
jobless. Since it is estimated that it
will take years to finish this vast sys-
tenn of motor roads. the unemployment
problem should be considerably allevi-
ated by this device. Secondly, in ere
ating this corporation the chancellor
probably aims to create unified trafdc
control and to eliminate unfair and
unjust competition for the hard-pressed
German railways by co-ordinating rail
and highway traffic.
But one may we'll surmise that the
far-seeing Nazi leader has not over
looked the military implications Of
this project. Germany learned and
applied during the World War the i'm
portance of having an adequate net
work Of railroads and highways under
one central control. Military strate-
gists argue that this Is especially nee
essary for a territorially small and
compact nation like Germany, where
troops may have to be shifted sudden
ly and quickly from one sector to an