The midland journal. (Rising Sun, Md.) 1885-1947, 1941-10-17
WHY NEW 1912 MODELS
By ]. E. Jones

Washington, D. c., Oct. 13--Some
may have wondered why the auto
mobile industry is bringing out new
models at this time, why it didn't
Just continue with what it was pro-
ducing There are good and suffi-
cient reasons--one being that work
on these models was we'll advanced
long before the automobile plants
were called upon to fill their i'm
portant role in national defense--but
two not generally recognized
angles, discussed recently by two
automotive executives, deserve at
tention.
One of these, c. l.. McCuen, Vice
President of General Motors in
charge of engineering, throws this
light on the subject: 1--WE could not
have effected the savings in the ma
terials needed for the defense pro-
gram without important design
changes. The magnitude of the job
may be appreciated when you rea-
lie that, considering only nine
critical materials, these design
changes, together with the curtail-
ment in volume of cars produced,
effected a saving of 100000
lbs. of material This put our engin-
GERS, technical staff and manu-
featuring divisions to real test but
the quality is ih every way equal to
that of any previous models, with
many Improvements and refinements
as WE'LL.
Another G.. M. Vice President, r.
H. Grant, offers another illumin-
ting sidelight: eff we are stopped
from building reasonable number
of new cars, the damaging effect to
our economy and to the efficiency
that is needed during this defense
effort does not fall upon the new
car buyers. It falls down below, upon
the used car buyers. We could dc
more unwise things in this country
than to let individual transporta-
ton run down to point where ii
would interfere with defense work
ers in their ordinary mode of life
and they can have no other mode OF
life and be efficient. They must have
individual transportation.
Having ample proof of the ire
mendous part General Motors and
the entire automobile industry are
playing in the national defense pro-
gram, one cannot construe these ex-
plantations as selfish utterances;
they ring with logical and economic
soundness.
Plain Tax Facts
A study of taxation made under
the direction of Fred A. Eldean, of
the Tax Foundation, New York, dis
closes important and serious real
tiles. In a Is page booklet entitled
Tax Facts and Figures, it is point
ed out that:
cat the beginning of the World
War in 1914 Federal, state and
local governments were collecting
slightly more than So billion in a
year in taxes. In 1910 we contribut-
ed SAY billion in taxes toward the
cost of government and even then
only partly Offset total expenditures.
The ratio of taxes to national in
come was 20% as compared with
only SO in 1919.
The record high-times ''are not
high enough to match the spendings
by Federal State and local govern
ments", says the publication, which
also states:
"Since 1913 aggregate govern
ment expenditures have multiplied
nearly seven times-from slightly
under So billion to almost $40 bill
lion in 1910.
This high level of spending can
be attributed largely to the expand
ing domain of government. In the
past, governments duties consisted
of such primary functions as ma
tiOnal defense, education, the erec-
ton Of certain essential public
works not in competition with pri-
vate enterprise, and police, fire,
health and allied projections. But
now government has assumed new
or expanded old functions. For ex-
ample, the assumption of social SER
vices and welfare responsibilities
has greatly increased the costs of
government.
THE ultimate effects Of such vast
governmental spending are prob
lematical. An evaluation of these
however, is all important. 1t is
certain that any nation, if it is to
survive, cannot ignore the effects of
such spending on the productive
mechanism.