Evening star., 1933-02-12

With reference to loss due to damag'
to a car maintained for pleasure, thu
Internal Revenue Bureau states: "a
loss occasioned by damage to an auto
mobile maintained for pleasure wherl
such damage results from the faulty
driving of the taxpayer, but is not due
to his willful act or negligence, may
be deducted In the computation Of thu
net income of the taxpayer Where
damages to a taxpayers automobile re-
suit from the faulty driving of the
operator of an automobile with which
the automobile Of the taxpayer collideS
the loss occasioned by the taxpayer by
such damage is likewise deductible
The amount of loss, however, be reduced
by the amount Of any insurance ol
other compensation received and by the
salvage value, If any, of the automobile.
It is pointed out by the A. A. A. that
loss sustained from the outright sale
of an automobile does not apply to cars
traded in for new cars to be used in
business of the taxpayer. On this point
the Bureau of Internal Revenue states
when an automobile used solely ir
trade or business of taxpayer is traded
in as a part payment on another auto
mobile, no gain or loss is realized. In
determining the basis for subsequent
depreciation computations and the COM
putation of gain or loss where exchanges
of this kind occur, the purchase price
of new machine should be decreased
or increased, respectively, according tc
whether the trade-in value of the old
machine Is greater or lesser than the
deprecated cost Of the old machine"
Diversion Protested.
Another motoring organization this
week adds its protest to the diversion
of motor vehicle taxes.
Economic recovery of the United
States will be seriously retarded un-
less immediate halt is called to the
indefensible practice of motor fund di-
version" warns j. Borton Weeks, presi-
dent of the American MOTORISTS As
sociation, in urging the country's motor
vehicle owners to unite IN opposition
to diversion Of such funds to other than
highway purposes.
"Unless united and determined &C
ton Is taken," said Mr.. Weeks. the
country will be strewn with the
less workers will take their place in
detected bread lines and important
industries will be forced to curtail out
put or close down altogether.
"In nearly all parts of the country
diversion hysteria' appears to have
lawmakers in its grasp. Highway
funds, contributed by motor vehicle
owners through registration fees and
gas taxes, are pounced upon like mamma
from heaven and distributed with a
lavish hand to the unemployed, al
though in the process hundreds OF
thousands of gainfully employed work
ers are thrown out of work, causing an
widening circle of those looking to
the state for food and shelter.
1.-THE economic loss resulting from
curtailment or halting OF highway
building is incalculable. It has been
demonstrated beyond question by the
United States Bureau of Public Roads
that 80 cents out Of every dollar spent
in highway construction goes to workers
in wages or salaries. More than 800.
600 workers are employed either directly
in road building or find livelihood In
transportation, material, equipment and
other related lines. Their continued
employment depends upon use Of motor
lists funds for the purpose intended
the construction and maintenance OF
highways.
There Is no Justification for i'm
position of vehicle fees and gasoline
taxes unless the money is to be used
for Improvement of highway transpor-
tation. Diversion, for any purpose
whatever, is an indefensible breach OF
faith amounting to public betrayal"
Federal Aid Wanted.
Warning that withdrawal Of Federal
aid In road building will Immediately
prove costly to motorists and taxpayers
and will throw the highway system OF
the Nation into such confusion that II
will not recover for years, was issued
today by H. P. Gillette, editor of Roads
and Streets, and leader In the good
roads movement.
He was commenting on recent Wash
ington dispatches in which members OF
Congress and other officials were quoted
In favor Of eliminating the Federal
highway appropriation.
Creation of the vast highway net
work Of our country almost in a single
decade has been the most rapid and
velopment," Mr.. Gillette said. Meth
DDS Of commerce and industry and
modes Of social life have changed AZ
rapidly as the road system has grown
New highway mileage and adequate
maintenance Of the old each year arr
necessities.
"The Federal Government from It's
inception has felt a responsibility fol
the extension Of means of communica-
ton and trade. 1t has improved and
watched over our waterways. It helped
to push railroads across the continent
1t is aiding and supervising our all
traffic development. Federal aid anc
supervision are just as necessary in the
development Of the Nations highway
system.