PETROL TAXES.

New Zealand Herald, Volume LXIII, Issue 19454, 9 October 1926, Page 10 (Supplement)

PETROL TAXES.

THE OPPOSITION CASE. Motorists iu England haye been almost unanimous for a petrol tux to replace the present horse-power rate. The taxes of £1 per horse-power have been yielding a road fund of nearly £20,000,000 "a year, and it is contended with some justification that the tax is inequitable for the simple reason that tho ordinary Ford car pavs £24 a year while the 21.6 h.p. Rolls-Royce pays £22, because it has been designed with a small bore in accordance with English custom. The British motorist points out that the duties of 33 and 22 per cent, on American and Canadian cars respectively are sufficient protection for the British product without imposing another handicap on American cars by levelling heavy yearly taxation. There aro two points of view for the manufacturer. On one hand it is contended that the tax is preventing British factories from design ing cars with powerful engines of the American type. The other view is that the tax is a good argument for the choice of a British car. In five years the owner of a Ford would have paid £l2O against the £55 for an 11 h.p. British car costing perhaps three times the price of the Ford. Considering all things, it would seom better to retain the import duties and give the British manufacturer a free hand to indulge in larger cars without the fear that sales will fall off because of the tax. Replying to the request of the majority of motorists, Lieut.-Colonel J. MooreBmbazon, Parliamentary secretary to the Ministry of Transport, says: "I maintain that, inequitable as the horsepower tax has been, it has had a very serious influence on the English manufacture of motor-cars, and that, had it not been for this tax the light car of low horse-power and high efficiency would never have come to have been the main product of this country and the admiration of the world. " The imposition of this tax caused the British manufacturer to produce a car which, in a large way, avoided tho tax and had a market unattacked by American mass-production vehicles. "Does anybody seriously contend that the Morris would have got to its present prosperity if the Ford had not, in this country, been carrying the absurd burden of £24 a year ? Had it not been for the horse-power tax, it might well have been that the American cars with their mass production would have swept every manufacturer off his feet in this country. " The horse-power tax may be very silly, you may riddle it scientifically, but it has been a goose that has laid the British manufacurers golden eggs, and they should think very seriously before killing the bird. But, in the words of the poet, ' the old order changeth, yielding place to new, less one good custom should corrupt the world.' It is indeed now that one must give thought to the question as to whether the British industry is strong enough—or, indeed, capable enough—to compete on even terms (except for .the tariff) against the large producers of the world without the stimulus that the horse-power tax has given to the home-produced small car." MOTORS FOR 1927. While certain American manufacturers are producing smaller cars for 1927, other long-established plants are holding to approved design and maintaining that the buyer wants tho largest possible car for the money. They do not think the average user is prepared to sacrifice seating capacity or footroom for the advantages of mobility and control in congested traffic.

Among those factories which will make j no radical change for 1927, competition will be intense. The large companies indulge in price cutting' and yet make huge profits. The moves of small groups of competitors are being closely watched. The most interesting group is that in which Buick, Nash, Studebaker, Chrysler and Hudson-Essex are striving to crowd one another. There is a tendency for American manufacturers to build more models than in the past. Chandler has now entered the market with three distinct chassis. Studebaker and IJash each build three sizes. Chrysler makes three sixes and a four. Moon builds three types, Hupmobile three and Overland three. Five years ago the popular policy was concentrate on one model. Identical chassis are also being offered in an increasing number of body styles. The 1927 Cadillac is produced in no fewer than 50 body styles, and the customer has the choice of scores of colour combinations. TYRES ON TERMS. A number of tyre dealers in the United States are selling tyres on deferred payments. Batteries are also sold for weekly payments of une dollar. As no interest is charged on the credit sales of tyres, a large number of motorists are buying on this plan. Popular makes of 30 by 3|in. tvres are priced at about 11 dollars, and the usual terms are one dollar deposit and weekly payments of one dollar. A 29 by 4.40 tyre costs under 14 dollars, and is obtainable for one dollar or about 4s 2d a weeki SIX-WHEEL CHASSIS. The latest development in British commercial vehicles is the six-wheel chassis. Several firms are turning out models for omnibus bodies. Six-wheelers of the trailer type have been in use for many years, but the new chassis are in no way similar to a four-wheel vehicle and trailer. The chassis is rigid and both pairs of back wheels provide the drive. Four and six-cylinder engines are being used. These vehicles are exceptionally useful for cross country work on account of the powerful drive. One of the latest designed for a 30 ewt. truck body has eight forward speeds. The lowest gear ratio is 81 to 1. and top is 7.2 t<f 1. An interesting feature is that steel chain belts can be carried on the vehicle and looped between the back wheols to provide a caterpillar track when necessary.