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I just got my Brass ***** License Plate Holder in Black Finish that mounts to the rear axle bolt. Right now it's super tight already and I can barely get the pin in into the axle bolt. This is current without the plate holder. I figure with the plate holder there is no way. Do they make a longer axle bolt or should I machine the axle spacer on the outside about an 1/8 of an inch to make up for the thickness of the Plate Holder...
Can't you just have the License Plate Holder take the place of the washer? That washer is only to prevent damage to the frame and give more equal/wider distribution of the forces working on the bolt.
Post up a pic of the mount portion. Some of these I have seen take the place of the left spacer and some are made to mount on the outside of the frame.