The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1942-02-20

The industry is certain TO be run
on rationing basis. Cars, buses,
| trucks, tires and retreading are al
ready rationed. When present stocks
are sold, that will be all.
From this point on, the troubles
being to spread. Nine out Of 10 deal
ers and their employees may have to
find other work.
Their troubles are passed on to
, the real estate operators who hold
the leases of the automobile dealers
who go out of business. These land
lords must find new tenants. The
| tenants must find ways to ternlin-
ate any long-term leases. Parking
lots are included in this business,
too.
Banks or insurance companies
holding any mortgages on the rent
ed properties face a loss OF interest
while the premises are vacant
Banks holding commercial paper
from the leases may have to look
to their collateral for settlement if
they avoid heavy losses.
Finance companies which carried
the car owner during the purchase
period will collect their last install
ments and then have TO look else
where to invest their money.
USED CAR TRADE
MAY BOOM
One new field may open up here,
the financing of used Car purchases.
There is a possibility of some turn
over and some new business in the
used car market, though what may
happen here hasn't developed clear
". Owners of old used cars may
create buyers demand for better
used cars just to acquire better
tires. If that happens, watch first
for price ceilings for used cars as
we'll as new, and watch next for ra-
tioning of used cars. Yes, it's pos
sible you may have to get permission
to buy a secondhand jallopy. You'll
have to prove you need 1T.
So, until restrictions are put on
the used car market. there is the
possibility that the finance COM
panies, which once scorned a loan
for used car purchase, may get into
the secondhand car business.
1t is to ease the financial burdens
Oh all these upsets to normal bus
mess that Reconstruction Finance
Corporation may make available
some $3.50 million to tide the dealers
over the war period by loans that
private banks can't make.
Your chain of consequences leads
next into the fields of taxation.
Last year, Congress passed whole
new flock of automobile taxes, figur-
ing this source of revenue would
yield another $245 million to help pay
war costs. But all these taxes were
calculated on normal car use. With
production of motor vehicles chan
neled into war, these taxes are cut
day down.
Furthermore, state and local auto
mobile tax collections face a drop.
The total of all automobile taxes
federal and local, has been estl-
mated by the American Automobile
Association at $500 million year.
The net indicated loss of auto and
gas taxes for next year is about
$3.50 million. This means that $3.50
million in war taxes will have TO be
raised some place else.
HITS THE ...
HIGHWAYS
Drop in auto taxation, drop in au-
tomobile use means also decline in
state funds for highway mainten-
ance since most Of the money for
this work comes from gasoline taxes
and license fees. The roads you ride
upon, therefore, won't be as good as
the roads you are used to.
In the whole motoring world pic
ture there is only one really bright
patch: there is no gasoline shortage
yet. The quality of gasoline has
been reduced a little, rating of 30 and
u octane grades having been drop
ped to rs and GO because of a lead
shortage and in order to increase
production of 100 octane gas for air.
craft.
Tanker diversion, increased sink
ing of tankers, might affect the
supply in some areas. And gas might
have to be rationed just to save rub
Der later on. Secretary Ickes was
Matching rationing plan during
the gas shortage scare last summer,
and this egg might be pulled out of
the Ickes henhouse as an emergency
measure if the crisis demanded.