1931-03-14 — Page 14

THE › HONGKONG TELEGRAPH, MOTORING SUPPLEMENT. SATURDAY, MARCH 14, 1831.

FUELS FOUND IMPROVING.

Bootleggers of Petrol Profitting: Misuse of U.S. State Tax Receipts.

Better fools and lubricnute, with cent. of capacity to provide these plenty of both, if not too much.

stocks and at only 75 per cent, of The koonest competition known capacity to provide for any normal to the businam world, plus the increase in demand. Demand for exportation of little, if any, in-early 1931 has been estimuted at trease in demand, keeping prices only 12 per cent, higher than that at reasonable levels, if not bolow, of 1930, as compared with the yearly increase of 7 to 9 average writes Victor H. Scales, Assistant Holatians, Amerlenn Petroleum A Instituto.

cent.

The 39.36

40

whether the oll reserves of the and ravenuo pyramidod, of income United States are five times distributed and dissipated, until billion barrel or twenty times a the motorist has taken on hla billion barrels, the supply is shoulders the burden not only of limited and cannot be increased. meeting more than half the cost of Even the most generous estimates roads but of contributing his place the date at which our ollaharo if not more, to the education reserves will be practically de- of the young, the conservation of pleted, under present rates of con- the oyster, the erection of Stato the purchase of State

sumption, in the comparativelygteranods, the propagation of

near future."

gin of

12

RUB #political" and temporary improvement of "er through the the service provided for patrons. Increased to 4 or 8 cents per gul- :

ronda.

Probably h reason for the fish, the reduction of other taxei motorist's apparent thoughtless-and the building up of reserve nens as regards conservation, and and general funds to be used for his scorn of economy, has been any purpone. his fond belief that whenever his The gasoline bootlegger, fuel tank run dry he could coast numbers and profits, appears to be into a filling station. There are growing. In fact his racket has anbatantini

for grounds

hie nesumed the proportions of a pros- theory. It โย Estimated there are perous business,

if

an income of thia country alone more than Reveral million

a year 18 dollars a Director, Dopartment of Publicportiful supply of gasoline is kämego filling stations and 700.000 infleative

of prosperity. assured because the refiner con-gasoline pumpa. That means setivity in based on the fact that, Cheap fuel, increased travel and atantly is increasing the percen-abost one station for every 80 while the established gasoline a growing, unprotesting anotoring tage obtained from crude oil sobicies and one pump for every dealer has an average profit mar- public encouraging legislators to

per cent. rasoline yield forty.

cents per gallon and the gasoline tax rates to unreason af 1920 probably crossed the The trend is also for gasoline States levy gasoline sales taxes of able lovela.

per cent, mark in 1930, not only marketing companies to operate from 2 to 6 conts per gallon, the Construction of many miles of through further development of their own stations and ao control retai! profits on gasoline can be

permanent highways; of strutght-run, but also

pro The business of fueling and lubrilon simply by evading the tax. opor "pod the improvement of cesses whereby it is possible to eating motor vehicles has become There are other bootlegging many more miles that should have obtain gasoline quantity from one requiring training, experi- schemes. The harbours and baya hoen permanent, with the matorist the heavier products left after ence, ethics and business judg-of the coastal States afford execl- paying more than half the bill.

straight-run distillation. But ment. Marketing companies have lent facilitter or bootleggers Strife between cities, counties continued production of these

ecome convinced that they have operating tank ships, or rebuilt. and States as to which should get heater products presents another not only an interest in, but a tank vessels, lu and deliver

land the lion's share of gasoline tax problem. Out of 11 12-gallon responsibility for, making certain fuel with small chance of detec- income or which should spend it.barrel of crude oil the reiner that their patrons are supplied Lion. Shipping gasoline in tank Further diversion of tax nancy obtains 16.63 gallons of gasoline, with petroleum products nunpled cars labeled "distillate," which is that the motorist thinks he is 2.4 gallons of kerosene, 19.05 to their particular needs; that non-taxable, is an oid scheme, but paying for ronds to such com-gallons of gas and fuel oll and there products properly are re risky. Less risk attends the prac mondable but quite unrelated pur-1.46 gallons of lubricating oil, presented and sold, and that the tice of using such low-grade fuels BOREs as education of the young, with some wax, coke, asphalt and necessary service is correct, and as distillate to "water" and consc

Тоан. Thus

meeting in congervation of the oyster, pru-

the

complete. Practices not only quently increase the contents of ugation of the fish, reduction of

derund for gasoline the refiner unsound,

and unethical

ungasoline storage tanks. Nor does the general tax rate, erection of

has to nuke and try to market economic, but unsafe and out-moving bootleg gasoline by night State buildings upkeep of State these other products, Growth in actory from the motorist's point in trucks involve great risk. departments, purchase of water-popularity of domestic and indus- of view, came into being with the There is little doubt but that in shed and al other chemica na

trini off heating is helping him rapid increase in the number of some thinly settled sections it is may be devised for distributing

to dispose of fuel oil. "Hydro-service stations, and in order to trucked by day. genation," revenue collected ostensibly for it

These are not isolated instances a supplementary re free the retailing of petroleum single purpose,

fining process, through which it is products of the unfair and of gasoline bootlegging. but only hoped to squeeze still more gas thical competition by which both a few of the many schemer given Dne from the heavy products left industry and public suffered more or less prominent mention by straight-run distillation and National Code of Practics for in the daily press. Nor are

gaso- "Cracking," promises further aid. Marketing Relined Petroleum Pro-line bootleggers few in number. Its sponsors claim a 100 per cent,

Tuets was put into effect.

In Cook County, Ill., presa production of gasoline, which, if Rising Costs of Production to be show that *

grand jury established

indicted in actual practice,

thirty-eight peraons would fargely eliminate over-

accused of evading gasoline tax production of the residues. A

With these newly developed payments by some such methods. methods of distribution in opern- was estimated that the loss to tion, it is believed that the indus- the State in the Chicago area ly will, to s degree, be able to Indiana, the State was called upon

alone exceeded $2,000,000. meel steadily rising costs of proto investigate the activities of Gusaline Filling Stations on Every Corner.

duction. And there is no doubt to

gasoline marketers who had been chat from field to market press importing from Illinois tank cars Quantity being assured, the ion als have been rising. } date, after a study of the etumiemotorist is interested in quality. Forty years ago a 1,000-font well of gasoline labeled "distillate." A Home- situation in the period between Keen competition has seen to the was a "deep hole," and twenty Back Laxes of $10,000 were obtain-

with years ago 1.500-foot wells were ed from une company. October 1.1989, and April 1, 1931.matter of quality, Alan,

filling stations on a large per the average.

To-day wells of what similar case, involving some

back

taxes and Cofiners may have difculty in

the of

net | 1,000 and 6,800 feet in depth in $125.000 in meeting that figure because It rentage

to have been by occupied

penalties, appears being approached. Driller costs,

settled for $20,000 enak and a means rurtailing activities.

courses, it would be

Folly for Lominally $500 day, increase settle company intending stay in insicurously as the drill sinks to to all infurior gasolin the lower levels, and the compara- Furthermore, the United States lively few days, or weeks, once With 85 per cent, of the world's areas of Mines makes a serai-necked

complete refining capacity in the United annual survey of gasoline sold in engthen Into months. Machinery States and the 400 refining plants the open market, purchasing smelt ul tools must be stronger, more secured to continually increasing fuel at various and sundry filling war is required, and unusual production to meet the liberty stations throughout the country. arth conditions in the form of constantly growing demand, the

Thy conservation board

ins high temperature, high water, gas tenderry is to overalint the mark, explained, is primarily to delay prestures and the like often are Potential daily capseity of these the coming of the day when encountered. refineries ix arousi 3,700,000 || jeyending shortage of prude ail barrels, or 157,000,000 gallons, | will cause a radient advance in and it is estimated that they arel | the prices of refinery products the le operate only at 50 In 80 per } public buys.

This is the mutoring picture for 19:11, as pr. ded in gasolines and olla,

"There should be available on April 1, 1931, whon the motoring season opens, some forty to fifty

of barrela

gasoling million (1,680,000,UND L 2,100,000,000 gallons), or enough to fill the fuel tank of all the muter vehicles in the nation for a whole month. Stocks of this magnitude bave

the to hoon recommended Industry Detroleum

by the Federal Of Conservation Boyd's Volunteer Committer on Petroleum Economics as suitable for the

•

More Emclent Production in

Refineries.

number of refiners have been

licensed to use the "hydrogena tion" prozess.

THE

corners

miniatures

matters

MOTORUNION

INSURANCE Co [

Incorporated in England

(Under the auspices of the Automoblie Association)

GRANTS SPECIAL. PRIVILEGES TO MEMBERS OF THE H.K. A. A.

For full particulars apply to:- THE UNION TRADING Co., Ltd.

York Building.

Phone 2778.

RIDE

Met by Industry.

to

h

well

Bootlegging has come into the caroline business, inrgely through the hereuse in competition and in wasoline tax rates. In both cases, The objective is greater profits, and both, to the public as well as to the industry, nitan greater losas.

CONTENTEDLY

ON MICHELINS

Distributors:

"Bootleg gasoline" is of two kinds.

One is gasoline brought nto a State, usually under cover of darkness, for the purpose of vading the gasoline antes tax. The other is "gyp" gasoline, often inferior in quality and sometimes harmful to automotive power plaats. unlawfully substituted in dispending devices bearing the trade-mark or

brand name of established companies.

bc It ma

|

In

STUDEBAKER

Utilize momentum - - - save operating expense by free wheeling

STUDEBAKER engineers have per fected a simple meth of harness- ing the natural force of m. rentum. The result is literally a new kind of motor- ing. Free Wheeling with positive gear control permits these new Studebaker Eights to glide ahead smoothly and silently, unfettered by engine drag. It

allows the engine to rest two miles out of every ten makes possible a saving of 12% to 20% in petrol, oil and tyres. In these new Studebaker Eights 1/5 of your motoring is free! Yet Free Wheel. ing is only one of many major improve- ments you will see here in any one of these champion new Studebaker Eights.

THE HONG KONG HOTEL GARAGE

and at STUBB'S RD.

25, Queen's Road Central.

The Hong Kong & Shanghai Hotels, Ltd. (Incorporated in Hongkong)

ONE TO EVERY FOUR.

'IMPORTANT AUTO LAW.

380,000,000 FOR ROADS. promise to pay $5,000 additional

It was There is one automobile for

Eighty million dollars has been A motorist, charged with reck- within a specified time. estimated that bootleg operationa avery 4.23 persons in the United apportioned to the states by the loss driving so as to endanger life involved more than 3,000,000 gal-States, according to the American Federal government in its Federal- and property, is entitled to trial lons in Northern Indiana alone. Motorists' Association. The figure aid rond construction programme by jury, according to a recent for 1929 was one car to every 5.3 for 1931 to relieve the unemploy- lccision of the U. 8. Supreme Diversion of State Gasoline,

Court. mont situation,

Tax Revenues.

Somewhat akin to tax evasion, is the mailer of diversion of gase- line tax revenues. In Kny Statea, such diversion of funds complies with the letter of the law, if not with its spirit.

From the conception of the gasoline tax in Oregon In 1919, the funda- mental purpose has been to finance the construction, maintenance and But improvement of highways.

sa popular has been the levy, and so painless its collection, until rates of 4, 5 and 6 cents per gal lon were reached. it was only natural that legislators should come to look upon it as a bounti ful source of limitless revenue. Evidently, it has been too great a temptation to dangle before the eyes of hungry Legislatures. Al any rate, in 1926, seven years after the tax first was levied, Usually it IM marketed at cut $9,074.466 of the gasoline tax prices, move to meet compet income was diverted to purposes ion in a business that measures other than highways, and some of ts profits per gallon by the cur- it to purposes quite unrelated to rent quotations on postage highways. Two years later, in gasoline 1928, the amount diverted to mis- hastily แฟ estelessly manufac-cellaneous purposes had climbed tured, a menace to any motor to $18,491,754. In 1929, tax because of the danger of damage revenues diverted, reached from lack of proper volatility or $24,485,027, and the total diver- the presence of corrosives, such sion for 1930 probably will be as sulphur. Again it may close to $30,000,000. A compari- good gaseline, but "cut," or adul-son of the tax income and tax terated,

by blending with some Income and tax diversion each cheaper product, such as kerosene, year clearly indientes that 6 per to increase the quantity and meet cent, or full interest on the money

of the requirements bargain the motorist supposedly counter prices.

ing for highways, is spent, partly Such gasoline is not to be con- on city streets, but mostly on fused with that marketed at "dis-other projects.—Exchange. trees ante". who has produced too well but not wisely as regarde quantity

Įstamps.

he

sale" prices by some refluer

A. GOEKE & CO. and must move his product to

4th Floor,

China Building.

Depot

FIAT GARAGE

Tel. 22231. Tel. 21821.

MICHELAN

avoid the high cost of storage. Nor must it

confused with un- bo identified fuel, that is, lacking n brand name, marketed by

reliable dealers. But buying "gyp" gasa- line is a riak, because the

pur- chaser faces the possibility of damaging his motor, and he seldom gets a bargalo, because the product is poor and cannot give good results. Normally the

risk may be avoided by exercising averngo caution and by trading with astablished dealers known to handle reputable goods,

Gasoline Bootleggers' Schemes for Evading the Tax.

The story of gasoline bootleggod to evade payment of the gasoliuo tax is morely the introductory chapter to the whole story of the growth of what is probably the grontant sales tax known to his tory. It is the story of tax rates,

80

NOTICE

TO

ADVERTISERS:

All advertising to ba inserted in this Motor Supplement, must be delivered not later than 2 p.m. on the Wednesday of the week of publication.

pay-

persons.

SMOOTH, QUIET PERFORMANCE

There is an element of restful luxury in the quiet efficient manner in which the new Nash glides through avenue: traffic-noiselessly and without effort.

It is a luxury made possible by Nash engineering. It is smooth, powerful performance as only Nash Twin-Igni. tion, Valve-in-Head engines with 9-bearing crankshafts can supply. It is the quay of riding comfort which seta Nasa farzbove its rivals in engine

flexibility and travel smoothness. Nash. Twin-Ignition Straight-Eight performance is available in the Eight- 90 series, represented by the smart Limousine pictured, and the Eight- 80 series. The latter is the world's first Twin-Ignition Straight-Eight in the moderate price class! -

Demonstrations of these remarkable new Nash Eights may be arranged at our showrooms at your convenience.

The Oriental Motor Co.

THE

3^3, Henorasý Road, Hongkong.

NEW NASHO