AMERICAN WAYS.

Auckland Star, Volume LXIV, Issue 25, 31 January 1933, Page 14

AMERICAN WAYS.

WAR AGAINST ; TAXATION. MAGNATES IN OPPOSITION. PROHIBITION" LAWS. DETROIT, December 23. Automobile manufacturers have declared war against a common foe— taxation. They- are battling against it on two fronts, both nation-wide in extent as affecting highway transportation in general. The main fighting line takes in the entire field of passenger and commercial car operation, says an American correspondent. Truck operation and the business structure of commercial hauling constitute the other. liast year owners of 26,000,000 motor vehicles in America paid more than 1,000,000,000 dollars in gasoline taxes, license fees and other State and municipal levies. The automobile magnates have taken arms against tax proposals now on the agenda of Legislatures in many States, and which, if would have an adverse effect on the livelihood of 4,000,000 persons who normally are engaged in the manufacture, sale and use of automotive products.

In Detroit the offensive is led by one of the biggest American companies, and a mass meeting of those concerned has been called. The company's leaders, in

a circulated manifesto, call attention to the critical situation facing highway transportation in general- when the Legislatures of 44 States convene for the 1933 sessions. They point out that some States already have passed bills regulating the weight and length, of hauling equipment and have placed on the law books tax restrictions which have all but put the trucks off the highways. < .

What was a critical situation has become acute because of anti-truck propaganda projected on a nation-wide basis and supported by publicity. The claim is made that trucks are not paying sufficient taxes to build and: maintain high ways; In answer, automotive leaders contend' that truck operators, which -include companies owning large fleets; already pay 27 per cent of the motor vehicle taxes, although they represent only 11 to 12 per cent of highway traffic.

Drastic restrictions are being recommended to compel reduction of truck weights. In contravention, the tests made by the U.S. Bureau*- of Public Roads are cited to prove that pneuma-tic-tyred. vehicles do ■ not cause injury to well-constructed pavement.

As an example of taxation already enacted and further measures submitted as bills, the situation in Alabama has been cited. In that State "a 12,0001b maximum gross weight for commercial vehicles was proposed, with no fourwheel trailers allowed. Later the gross weight was raised to 20,0001b, and the legislation went through. Other bills propose a mileage tax for both buses and trucks used as common and contract carriers, and a mileage tax on trucks used in the delivery of merchandise sold in the furtherance of any business enterprise.

On fuel taxation tie Alabama legislators are said to have brought forward a new bill calling for three cents more on each gallon of gasoline. The present State tax is five cents, with a Federal tax of one cent, and motorists in several Alabama cities pay a three-cent county tax in addition to a two-cent. city tax, totalling 11 cents on each gallon.

In Michigan companies that build trucks and commercial-vehicles fear attempts will be made to prohibit the use of four-wheel- trailers altogether, and that Kentucky's law requiring governors on all trucks may be passed not only here but in many other States