Business: Colorado’s Billing

Colorado’s Supreme Court decided in May that the privately owned retail outlets of Gamble-Skogmo, Inc. (auto parts) were not a “voluntary” chain of stores and therefore fair game for the State’s chain-store tax. Right then U. S. motormakers began to anticipate trouble. Last week to General Motors, Colorado sent a bill for $234,655; to Ford went one for $102,470; to Chrysler, Hudson, Studebaker, Nash and Packard went others totaling $193,995. Grand total: $531,120, billed to the seven motormakers for four years’ chain-store license fees ($2.50 to $300.50 a store). Grounds: their licensing and supervision of dealers made them members of a chain.

Auto manufacturers saw more trouble ahead: 19 other States with chain-store taxes may take the cue from Colorado and submit their own bills for license fees. If such taxes can be made to stick they will play hob with the entire system of automobile distribution, not to mention other articles similarly merchandised.