• THE MOTOR TAXATION INQUIRY.
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A " Thin " Time in the Taxi Trade. The Evidence of the Chemists Employed hy the Oil Companies.
MR. J. A. THOMAS, the Chairman of the Joint Committee of the London Motor Cab Trade, gave evidence before the DepartmentalCommittee on the Taxation and Regulation of Road Vehicles at the Middlesex Guildhall on Tuesday last.
Mr. Thomas claimed that the societies he represented included the interests of the owner, of one cab up to the largest owners in the trade. He considered there was great objection throughout the country to the present method of taxation, and a return to the principle of a fuel tax-would he welcome& by the trade. The task Of collecting a tax on imported motor spirit undoubtedly presented difficulties, but he thought that the difficulties could be surinounted by a technical Advisory Committee. Evasion by mixing non-taxable fuel was not seriously to be feared' Under the present system a proprietor having paid the full annual tax had rio relief, even though the cab might be off the road. Answering Mr. Shrapnell-Smith, Mr. Thomas said that, generally, his evidence favoured a petrol tax of threepence a gallon, with reduced annual tax.
Asked whether upon the shilling a Mile baths the taxis paid better' witness said he did not think the question of profits could possibly help theta in considering any scheme.
Mr. Shrapnell-Smith: Well, is the cabtrade prosperous?
Witness: It is not. It is 'having a thin time, but, like others, we are hop;ng for better times.
Answering further questions, witness said that, rather than pay more than threepence per gallon,. they would put up with the rebate system in order toget the difference" back.
In reply to Mr. Frank Pick, witness admitted that his proposal for taxation was not equivalent to the present basis. He was prepared to accept the Principle of the basis of taxation being approximately on the ton-mileage basis, reserving, of course, the question-of preferential treatment for trade vehicles. He considered that the taxicab should pay less than a private ear because the taxicab was an implement of trade and was not oat for pleasure.
Questioned as to who he considered should pay more than they did at present, the witness mentioned that chars-it-bancs,certain motor lorries, and, perhaps, the London motorbuses were rather well treated and ought to pay a little more. Witness thought the owner of the RollS-Roycee who paid £42, Would not be hurt if he paid mare. 'He did not think the bulk, of private cars were used for utility purposes.
Mr. H. Bundy. Parliamentarysecretary of the NationalFederation of Hackney Carriage Pi-eyrie tors, gave similar evidence, and astded that there Was no reason Why London and Liverpool should pay more than the rest of England.
Questioned as to the positionof the private cars, witness said a man did not buy a Rolls,Royce for business purposes. •
Evidence of the Oil Experts.
Mr. Kewley, chief chemist to Shell Mex, Ltd., gave evidence at the request of the Committee, and stated that any specification for motor, spirit which might meet the. case to-day might be useless in the near future, as eventually engine design must follow the composition of the fuels available.
Answering questions, the witness said the primary object of fixing a flash-point for motor spirit was for' customs purposes. The Committee adjourned until the next day, when Mr. J. Kewley was further Answering questions, the witness said the primary object of fixing a flash-point for motor spirit was for' customs purposes. The Committee adjourned until the next day, when Mr. J. Kewley was further
examined on the specification for motor spirit and explained that what he meant to convey was that the ekisting motor spirit as sold in this country could be split into two portions-90 per cent, dutiable and 10 per cent. non-dutiable. The key to any system, by which customs and excise duty was effective must absolutely be the declaration by the consumer. The revenue -Would clepead upon the declaration, but if they had a declaration by the userhe did not.see that any definition for motor spirit was at all necessary. A-great deal of splitting of motor spirit could be done at practically negligible cost. If there were to be any bonding of motor spirit it would have to take place at the .350 depots in the country. There was no objection to the payment of duty on epiritleaving the refinery, and there would be no practical difficulty if the excise authbritiea took up the position that the owners of refineries could do as they liked in them and pay on the spirit going out.
Engines That Would Use Kerosenes.
Mr. Kewley eaid that he thought engines would be developed which would use spirit of a higher boiling point. The difficulty at present depended on the lubricating oil troubles and condensation, That would have .to be got over by variation in engine design and the development of a suitable kerosene carburetter. He had driven about the streets of London in a Ford car on kerosene without any difficulty. In the course of time motorcars would use heavier oils, and if a declaration were not enforced special kerosene would he marketed. There was a tendency for motor fuels to he heavier. It was utterly impossible for motor fuel companies to pay the tax under the euggested scheme. •
The chairman said it was not unlikely the Committee would he advised to drop all questions of flash-point. On this, witness was asked how he
• would proceed assuming that no flask-point `was specified at all?
Witness replied that a specification or definition would have to be made which would discriminate between kerogenes, motor spirits, and border-line materials. If a specification were' made for kerosene. it would have to cover all possible kerosenes, and there would be no objection if the specification were made broad enough.
Dr. A. E. Dunstan; chief research chemist of the Anglo-Pereian Oil Co., gave evidence, at the request of the Committee, on definition, the possibility of evaeion, and difficulties likely to be met with by refiners and distributors. The progress of research, he said, would inevitably bring substitute fuels into the market, and in order to bring these into line the definition might be altered, he suggested, by leaving out the words c! mainly hydrocarbon," and in the specification the words " hydrocarbon " and " hydrocarbons." Little importance is to be attached to a flash-point for motor fuel, seeing that for easy startimr, a low flash-point was imperative. There was no advantage in making a specification for kerosene. If the system of declaration were adopted, he said, the possibility of evasion was strictly limited to clear and systematic dishonesty. but if there were no system of declaration the mixing of Aviation spirit and kerosene was certain to take place. The difficulties for refiner and distributor would include duplication of tanks and lines on sites frecsuently incapable Of expansion, the holding up of tank vessels while analyses were being made,, confusion in the excising of material, and the allocation of losses. Mr. W. A. Woodrow, chief of the Anglo-American Oil Co.'s laboratory, also gave evidence.