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THE HONGKONG AUTOMOBILE ABBOCIATION
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Free Machanical Advice Associate Membership of the P. A. O, and A. A. London.
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P.Q. Box 116..
The 9/20 h.p. ROVER Car-1926
DEMONSTRATIONS OF THE SPECIAL COLONIAL
MODEL BY ARRANGEMENT WITH THE HONGKONG
- AND KOWLOON TAXI CAB Co., Ld.
TEL. C. 1036- 33-35 Des Voeux Road,
HONGKONG.
A Friend in seed is a friend indeed "and that's, what our EASY terms can mean to you.
Latest Models in Stock of
A. J. S.
TRIUMPH"
DOUGLAS
INDIAN
Cycles can be seen at No. 1A, Chator Road, Hongkong
AND
THE HONGKONG TELEGRAPH, MOTORING SUPPLEMENT.
AMERICAN PETROL.
PRICES LOWER DESPITE CONSUMPTION.
The American off-situation does. not appear to be as firm as it was. In my last report I stated that, with crude oil production rising, no further advances in crude oil prices should be expected. On July 9 the price of Pennsylvania crude oil was reduced by 25 cents a barre. In the Inst four weeks crude oil production in America has again risen slightly, though, it is still substantially below the level ruling at this time last year. It is curious, however, to observe that gasoline (petrol) prices in America have been steadily de- clining, while gasoline consump- tion has been rising. This pheno- menon is not new to the oil indus- try. It has generally been Brought about by the prospect of large supplies of crude oil following up- on now discoveries in the fields. This year it is due rather to the prospect of large supplies of gasoline following upon the ex- pansion of "cracking plants" at the refineries. Once again it is necessary to emphalse, the effect which this development is having upon refined oil prices.
NEW MOTOR
A TAX ON PETROL.
"THE CASE AGAINST ITS REIMPOSITION.
SATURDAY, SEPTEMBER 25, 1926.
vided into classes mainly in ne- cordance with the purposes for which they were used, and tho sub division of the classes indicated roughly the proportion of the woar In his Budget speech Mr. and tour the vehicles might cause Churchill expressed his convicto the roads. The tax was used tion that as between the different upon seating capacity for hackney users of the road a petrol tax was vehicles, unladen weight for com- more equitable than a vehicle tax, mercial vehicles, and horse power though as a sort of bounty, to the for other vehicles. The minority coal tar industry he was prepared report, by Mr. Stenson Cooke, the to exclude benzol from the tax. ecretary of the Automobile Asso- One of the well-known motoring ciation, recommended the continu associations serving the private ance of the motor spirit duty In motorist la now advertising in the spite of all the objections raised, press an appeal to its members, to and over since 1920 there have support the petrol tax "as a just been representations on behalf of tax" The interests of the privato the non-commercial, users that the motorists are not, however, always motor spirit tax should be reintro- the interests of commercial users duced. of petrol, and before the private motorist makes up his mind 'he would do well to consider from a national point of view the interests of commercial users and the upset that might be caused to trade by a change in the existing scheme of motor taxation.
First it should be realised that the petrol tax has already been tried in this country and has fail- ed. From 1909 to 1920 a 'duty on motor spirit was in operation. As originally imposed, the duty was n Customs duty on imported petrol and an Excise duty on home manu.
As a result of this persistent agitation the Ministry of Trans-. port, in 1923 referred the question of motor taxation back to Sir Henry Maybury's Committeo again. The Committee was asked to take into consideration the objection to the present system of taxation of mechanically propelled road veht- cles in the light of experiences gained and to report whether any morn antisfactory alternative method of taxation can be devised or the present system be modified." In 1924 this Committee finally, re- ported: (1) "We cannot find any D. E. Willis, well known auto-factured spirit amounting to 3d. a system of taxation capable of gallon, with a rebate of 50 per practical application under the ox- year the crude oil producing com- motive engir oor, is the inventor cent, in respect of spirit used for isting ciroumstances which we panies in America supplied the of a new type gasoline engine commercial goods-carrying vehi could recommend as likely to be refiners with 241,330,000 barrels which offers radical changes incles, hackney vehicles, and motor- more satisfactory than the system cara used by duly qualified doctors, of vehicle taxation now in force:" of crude oil, from which
gal- the method of introducing the and a 100 per cent, rebate in re-and (2) "The present system can manufactured" 3,759,605,000 lons of gasoline. In the corres-fuel into the cylinders. Differing spect of motor spirit used for purbe modified to mitigate to a sub- ponding period of last year. 223,- from the usual valves or sleeves, poses other than supplying motive stantial effect some of the objec In spite of this exhaustive in- 461,000 barrels were supplied to in the engine shown below, the power for road transport. In 1916 tions found to exist in practice.".
the duty was increased from 3d. refiners and 3,986,529,000 gallons of gasoline ware manufactured, gasolino vapor is admitted to the to Gd. with similar rebates, which quiry the Automobile Association, Both these totals include the na- cylinders by a device which finally included veterinary sur-through Mr. Stenson Conke,
commercial again raising an agitation for a geons. clergymen,
repeal of the existing scheme of tural gasoline blended with the Willis calls a "fuel distributor."
travellers, and relieving officers. "cracked" gasoline by the refiners. Instead of the conventional num-
This duty broke" down for the taxation. Regardless of the dif- The average gasoline recovery
bor of cylinders, the Willis engine following reasons. First, because tien on account: of the difficulties it was only partial in its applica-
For the Brat four months of this
were
from the crude oil was 35.18 per cent (14,754 gallons a barrel) last is built in fivo, seven and nine year, while this year it had risen
a
to $7.19 per cent (15,619 gallons other words, barrel). In 208,877,382 gallons of gasoline have been "saved" this year! through improved technique, which represents a saving of 14,156,763 barrels of crude oil, or
117,973 barrels of crude oil a day. This "saving" at the refineries is equivalent to the discovery in the field of a large flush producing pool.
In the first four months of this year the domestic consumption of gasoline in the United States amounted to 2,986,545,000 gallons, which was 14.8 per cent greater than last year, while the export demand amounted to 583,107,000 gallons, an increase of 85 per cent. The total gasoline consumption for the four months thus amount
cylinder designs,
GREATEST SPEED.
Johr. N. Mackall, chairman of Maryland State Roads Commis- sion, believes that the state maximum speed law should be supplanted with speed law and
2
ficulties of defining petrol, Mr. chemists feared to tread to give Churchill has rushed in where
to
revenue '19
is
-now
of defining what motor spirit was.his, bendiction on the petrol tax. The arguments which this Com- Under, the Finance Act of 1910 motor spirit was defined as any inittee found to be conclusive inflammable hydrocarbon or mix-against a 'petrol tax after its sec- ture of hydro-carbons which is ond. exhaustive investigation ap- capable of being used for provid-pear not only to hold good now more cogent. ing reasonably efficient motive but have become power for a motor-car; and the The main point is that whereas Commissioners of the Board of only a tax of 8d. a gullon on motor Customs and Excise were given spirit was necessary at the time. power to precribe tests for the when the Committee first made its minimum purposes of determining whether investigation, the duty would now slow-moving any inflammable hydro-carbon or have to be raised to at least
10d. if the Bame
be obtained veinioles should be barred from mixture of hydro-cartons was main travelled roads during hours motor spirit within the meaning of heavy traffic.
of the definition. No regulations realised by the vehicle duty. prescribing a test were ever made Moreover, in view of the expenses because the Government chemist incurred by the oil companies in was unable to devise one. So many the administration of the petrol
pay at least a ́ld, or 2d. a gallon ! increase of stocks since the first were the varieties of motor fuels duty the consumer would have to more. A petrol tax of 10d. to is. of the year and all of the increast and so many were the uses of from May 1, 1925, to. May 1, 1926.motor spirit for purposes other Since the gasoline stocks accumu- than as motor fuel that no satis- would be heavy enough to invite ed to 3,549,650,000 gallons, an in-inted earlier in the year are large factory test could be found. It evasion on a big scale, and evasion rol tax works in America because crease of 629,438,000 barrels, or ly responsible for the recent de- was decided eventually not, to tax would still be possible. The pet 17 per cent. In the first four eline in gasoline prices, the direct kerosene (lamp oil) or benzol it is only half to one cent a gal-
importance of months of this year the gain in the economic
the which were largely used for pur-lon. It is not worth anybody's poses other than motor traction while to attempt to evade it. number of motor registrations in "cracking" process is apparent. America was only just over 12 per The increased recovery of gaBG-on account of the upset which cent. The remarkable increase ia line from crude oil is not just a would be caused to the trades con- It was also decided to motor spirit consumption is.gen- development of the past year. It cerned. erally hailed as a reason for a nas been going on for the last five apply a simple specific gravity rise in oil prices. The increase, years, but the rate of increase in test under which the heavier however, loses much of its signi- petrol, recovery has become more liquid hydro-carbons were exclud- ficance as a market 'factor' when rapid, in recent months. A year ed from the duty. Under this ar- it is remembered that 54.4 perago, for instance, the increased re-rangement any spirit with a speci- cent of the additional demand for covery of petrol only accounted fic gravity of over 800 was to be petrol has been taken care of by, for 27.2 per cent of the inncreased delivered free of duty. This sim- the saving of 208,877,202 gallons consumption of gasoline, while plified the collection of the duty,
K'loon Motor Cycle Exchange effected at the refineries." Gaso this year it accounted for over but it allowed evasion. Motor
KOWLOON.
line stocks Increased by 278,399,- half of the increased consumption. spirit having a greater density 000 gallons in the first four In other words, the oil industry than 800 could be used as moter months of this year to 1,925,725,- in America is rapidly approaching. fuel with a little doctoring; "in 000 gallons. Thus the 208,877,382 the point, where, with favourable fact, the duty could not be admin- istered fairly as between one form:
Alex. Ross & Co. (China). Ltd gallons "saved" at the refineries crude oil prices, the refiners can of motor fuel and another.
BUSINESS IS SENSITIVE
accounts for 75 per cent. of the take care of the yearly increase in
Secondly, the system of rebates. motor spirit consumption without
The requiring additional crude oil proved costly and irksome.
examination of the numerous supplies.
Has the increase in "cracking claims of small users in particular plants" at refineries reached its involved the Inland Revenue in much trouble and oxperise and limit? No oil technician would caused friction. In spite of all suggest that the limit has been the care taken, the opportunities reached. It is generally admitted for fraud were humerous. Thirdly, that not only will there be more there was an "Imperial prefer- new "eracking" installations, but once" rebate on petrol produced in that there will be numerous im the colonies which proved unwork- provements in design which will able. result in a still greater recovery The dissatisfaction with this, of gasoline from crude oil. In ad-motor spirit duty caused the ap dition to this development there is pointment in October, 1919, by the proceeding a parallel development Minister of Transport, of a Com- in the recovery of gasoline from mittee, under the chairmanship of natural gas. It is estimated that Sir Henry Maybury, to inquire into for every barrel of crude oil pro- the whole question of the taxa- duced at the well there is nowtion and regulation of road vehi- manufactured two gallons of na- cles.. An interim report on the. tural gasolin. These facta sug question of tixation was presented, gest that until the crude, oil pro-on March 81, 1920, and the majority duction of the United States falls report which it contained recom again below the mark of two, mil-ended the introduction of the lion barrels a day no increase in prosent system of motor taxation vil prices can be expected. On The majority recommendations the other hand, I do do anticipate were adopted, and effect given to a serious decline in: refined oil them by the Finance Act of 1920. prices, if only because the rccent and the Roads Act of 1920. For the large mergers within the Standard Arat,time all, mechanically propell- Oll group of companies would ap-ed vehicles for commercial and poar top heavy if prices were al-agricultural purposes were brought lowed to fall. The of markets within the scope of a vehicle tax are, in other words, likely to be without involving any system of rebates, in respect of purposes of supported artificially."
use. Vehiclca were, however, di-
IT COMES WHERE IT IS INVITED AND STAYS WHERE IT IS WELL TAKEN CARE OF, SO WE INVITE YOURS.
AUSTIN SEVEN MOTOR CAR
20 Models 2-4 passenger
A. J. S. MOTOR CYCLE TRIUMPH
DOUGLAS
INDIAN
Alex. Ross & Co. (China), Limited. Bank of China Building No. 1a, Obater Road, Hongkong.
Beauty Unites
with Luxurious Comfort In Dodge Brothers "Sport" Touring Cars and "Sport" Roadsters, genuine beauty and lux- urious.comfort are successfully combined.
Body and bonnet are finished in brilliant pheas- ant green lacquer, set off by a single striping of partridge cream. The upholstery is deep and comfortable, in gray Spanish genuine hand buffed leather,"
Here is a car that appeals strongly to men and women who insist that their personal pos- sessions express good taste. Its appeal is made doubly strong because, with its distinctive beauty, there is the Dodge Brothers depend- ability, which is known the world over
Special equipment includes: Tam colored top with nat ural wood bows nickel trimmed, natural wood wheels; nickeled radiator shall and amblem, one place wind- shiold with automate efoaner, bumpers, tallet.shaped head and cowl lamps, roar view mirror and scuff plates. Doose Brothers.Inc.Detroit
THE DRAGON MOTOR CAR CO., LTD. 33 Wong Nei Chung Road, Happy Valley
HONGKONG
DODGE BROTHERS MOTOR CARS
Local Agents,
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THE MOST EXPER- IENCED MOTOR INSCE. OFFICE IN THE WORLD.
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Prince's Building.
There's finer Quality
in this Studebaker Coach
Studebaker Standard Six Conch £000
Phone C. 587.
The Fruits of One-Profit Manufacture
The Standard Six Coach is an excellent example" of the advantage secured through One-Profit Manufacture and Unit-Built Construction...
By making all costly vital parts-engines, bodies, steering gears, clutches, differentials, gear boxes, springs, brakes, axles, grey iron castings and drop forgings in its own great fac torica, Studebaker eliminates extra profits which all others (except Ford) must pay to outside parts or bodymakers. With these savings, Stude- bakar buys finer materials, employs costlier and better manufacturing practices and accurce finer workmanship.
Studebaker pays a premium for special steel of extra toughness used in this cach, It uses the finest hard woods in the body frame; wool up.
holstery; plate glass of crystal clearness and much extra equipment. Though its quality com- pares with costiler cars, its price is low.
In attaining a One-Profit basis of manufacture, Studebaker han also attained Unit-Built Con- struction. Every vital part is designed and manu factured under one. supervision. Every Stude baker, therefore, functions as a unit. This re- salts in years longer life, greater riding comfort, low.repair costs and high resale value, Because all phases of manufacture are directly under Studebaker control, Studebaker care are constantly kept up-to-date. Improvements are conthally made-not saved up for annual an noancements which maka cars artificially obsolete STUDEBAKER CORPORATION, South Bend, Ind
Full Particulars from the Garage Department
THE HONGKONG AND SHANGHAI HOTELS, LTD.
ILDERS OF
VEHICLES FOR 74 YEARS
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