TARIFF CHANGES

New Zealand Times, Volume LIII, Issue 12424, 19 April 1926, Page 6

TARIFF CHANGES

CANADIAN MOTOR INDUSTRY AMERICAN COMPANIES AFFECTED FACTORIES CLOSED DOWN By Telegraph—Press Assn.—Copyright. Reuter’s ’’’-’'—ram. VANCOUVER, April 16. The Qsliawa (Ontario) plant of the General Motors Corporation, employing 3000 men, suspended operations on Friday. A notice was posted stating: “On account of the tariff changes, the entire plant will he closed indefinitely until the company is able to arrive at an intelligent conclusion as to what future course may J>o considered advisable.” MUST TRANSFER TO U.S.A. (Received April 18, 5.5 p.m.) OTTAWA, April 16. Toronto reports that motor factories, in general are continuing their operations temporarily, but “many of. them will find it imperative to begin transferring the important parts of their operations from Canada, and to increase their imports, both of motorcars and materials, frbm the United States.” This statement . was made by Mr T. A. Russell, president of the Automobile Industries Association, following a meeting to-day at which the j automobile'manufacturers discussed the reductions of the duties on motor-cars, announced in the Federal Budget on Thursday. TORONTO FACTORY CLOSED (Received April 18, 5.5 p.m. ) OTTAWA, April 17. The Canadian automobile plant of Dodge Brothers, at Toronto, announces that it will close on Saturday, as the result of the reduction of the tariff on automobiles. Six hundred men are affected. It is announced that the General Motors Corporation, which closed yesterday, will resume operations on Monday. The suspension was necessary in order to make readjustments in prices. FORD STOCKS DECLINE i (Received April 18, 5.5 p.m.) ' NEW YORK, April 17. The stocks of the Ford Motor Company of Canada suffered severe declines on the kerb market here yesterday, and to-day dropped 100 points in the two days. The sellers acted under the belief that the reduction of the Canadian tariff would largely wipe out tho advantage of American companies operating in Canada. OUTLINE OF NEW TARIFF The Canadian Finance Minister, in presenting the Budget, announced, inter alia, that the duty on automobiles of a retail value of not more than 1200 dollars and on motor trucks had been reduced to 20 per cent., general tariff 17i per cent., and intermediate 12J. British preference on automobiles valuecl at more than 1200 dollars, general tariff, had been reduced to 27J, 25, and 15 per cent. To encourage the Canadian automobile industry a drawback of 25 per cent, would be paid on materials used in manufacture, provided at least 50 per cent, of the cost of the finished articles was produced in Canada. FORD WILL CARRY ON (Seccived April 18, 11.5 p.m.) WINDSOR (Ontario), April 17. The Ford Motor Company on Saturday announced its intention to continue its operations in the face of the tariff reduction. “We believe it is th* duty /of all patriotic citizens to carry on, and do the utmost to build up Canada,” said Mr Wallace Campbell, vice-president of the company. “We have definitely decided to discontinue the manufacture and assembling of Oakland; Cadillac, Oldsmobilo and-G.M.C. trucks immediately, and to import these cars completed from the United States,” said Mr R. S. McLaughlin, president of the General Motors of Canada, on Saturday. Within 90 days the manufacture of Chevrolets will cease, and thev will be im. ported completely finished. The manu- | facturo of McLaughlins may be con- I tinuod on a close margin of profit.