The midland journal. (Rising Sun, Md.) 1885-1947, 1937-03-19
MARYLAND HIGHWAY SYSTEM
GASOLINE TAX DIVERSION

GASOLlNE ian DIV ESS1ON
Observation-Disclosures is on the
fence as far as the future of her high
way system is concerned, according
to Willard T. Chevalier, president OF
the American Road Builders Associ-
alton, Washington, d. c. "A push
to the left and the pitfalls of diver
sion will SWALLOW up all vestige oil
hope that she may now have of re.
pairing and rebuilding her roads to IL
point where they can cope with the
complexities Of up-to-the-minute
highway travel.
"A pull to the right by those forces
in opposition to the presently propos-
ed legislation to divert the gasoline,
motor-oil and motor vehicle taxes 10
uses far removed from the building
and upkeep of highways will, at this
time, bring victory to the users OF
Maryland's roads. They have been
The losers SO many times in the past,
oy all reckoning, entitled to one time
out on top. Not even the gamblers
law of averages has been on the
side of Maryland's motorists to pro-
.ect them from the pick pocket of the
highway taxes"
Four other states recently found
themselves, like Maryland, on TIL"
fence, and just as recently enacted
constitutional amendments outlawing
inversion. THE handwriting ON the
wall" contained in Section 10 of the
Hayden Cartwright Road Act was all
100 clear to these legislators. They
anticipated the serious intent of the
United States government to inflict
he penalty provided for in this act
On the states that would be foolish
enough to continue to divert. That
penalty alone would prove a serious
handicap to the highway program of
any state. Section IL of the Hay
len-Cartwright Road Act, approved
~ Congress June Is, 1884, reads as
follows:
"Sec. ~. Since 1t is unfair and
Unjust to tax motor-vehicle transpor-
alton unless the proceeds of such
axation are applied to the construc-
ION, improvement, or maintenance of
highways, after June 80, 1896, Fed
raj aid for highway construction
jhall be extended only to those States
hat use at least the amounts now
provided by law for such purposes in
Zach State from State motor-vehicle
registration fees, licenses, gasoline
axes, and other special taxes on
notor-vehicle owners and operators
# all kinds for the construction, i'm
provement, and maintenance of high
ways and administrative expenses in
connection Herewith, including the
retirement of bonds for the payment
of which such revenues have been
pledged, and for no other purposes,
under such regulations as the Secre-
larry of Agriculture shall promulgate
from time to time: Provided, That
in no case shall the provisions of this
section operate to deprive any State
Of more than one-third of the amour,
20 which that State would be entitled
under any apportionment hereafter
made, for the fiscal year for which
the apportionment is made"
This simply means, in other words,
hat If Maryland shall divert from It's
gas tax or motor-vehicle revenue
more money, or a higher percentage
of money than she was diverting on
June Is, 1894, then Maryland will
be penalized up to one-third of tn
amount of her grant from the federal
government. Can Maryland under
these conditions continue to divert
funds from her gasoline tax
If legislation pending in the pres
emit general assembly proposing TO
divert the highway taxes to purposes
unrelated to road construction and
maintenance is consummated, Mary
land automatically places herself in
line for this penalty.
From 1917 to date Maryland has
received $25,54O,S10.6O in feredal
aid. II the state had been divertins
during these years as she will in fu-
ture do, providing the presently pro-
posed legislation is carried through.
and the penalty Of Section IL of the
Hayden-Cartwright Act had been in
force. the loss to the state would
have by this time reached the stag
"a .