Evening star., 1940-07-10
D. {. Officials
Oppose Hike in
Gasoline Tax
Young Points Out
That Fund Diversion
May Cost U. S. Aid

Any proposal for an increase in
the Districts gasoline tax to make
the burden comparable with that
placed on Maryland, and Virginia
motorists, particularly if the move
entails diversion of gas tax revenues
from highway purposes, will be op-
posed by the District government,
it was made clear today at the Dis
trict Building.
The revelation came after an an
nouncement yesterday on Capitol
Hill that Representative Poage,
Democrat, of Texas, chairman of a
special subcommittee of the House
District Committee, would invite
the Governors of Maryland and
Virginia to testify August 6 at a
revival of consideration of bill for
a District gasoline tax increase.
The bill of Chairman Randolph
of the House District Committee
which would increase gasoline by
cent, the tax raising it to cents
per gallon, is pending. The extra
money would go into the Districts
general fund instead of the highway
fund which is used only for specific
highway uses. This bill, con-
sidered by the Nichols Fiscal Affairs
C,,bro,,,y ~, IL taa of +ha ryo,e1 D;etr; ~
Committee, previously had been laid
aside.
Young Voices Protest.
Voicing sentiments held by other
District officials as we'll as by him.
self, Commissioner John Russell
Young said today:
Il can see no reason or logic in a
move to raise the Districts gasoline
tax unless and until it is determined
more money is needed to care for the
Districts highway program. Fur
thermore, it should be remembered
the District will face the loss of a
substantial portion of Federal grants
now being made to the District un-
der the Hayden-Cartwright Act-the
Federal aid road plan-if any of
the gasoline tax revenues are di-
verted to purposes other than those
of the highways"
Under the Federal act he referred
to, the Federal Government is au-
thoriZed to reduce the Federal
grants to any State or the District
up to so per cent of its normal al
lowance if there is diversion of gas
oline tax funds. This rule has been
invoked in the past, and inc one case
Maryland was penalized and later
changed its State road program to
conform to Federal requirements in
this respect.
District officials have maintained
number of times that the present
2 cents District gas tax is sufficient
together with other highway rev.
enues, to take care of the Districts
highway needs. They have pro-
tested against diversion of the gas
oline tax funds to general fund
purposes, declaring that such step
would mean the reduction of Fed.
eral road aid grants.
Suggests States Get Money.
In this connection it was recalled
that last year Era B. Whitman
chairman of the Maryland State
Roads Commission, suggested dur
ing discussion of a possible in
crease in the Districts gasoline tax
that a portion of the additional
revenue thus raised be turned over
to Maryland and Virginia for use
on their highway systems.
For some time there has been
protest in some quarters in Mary
land and Virginia against the fact
that while the Districts gasoline
tax was 2 cents a gallon, Maryland
was paying a State tax of cents
and Virginia 5 cents. District Of
flcials reply there was no need tor
high gasoline tax here, since the
District does not have comparable
road mileage.
In announcing he would ask the
two Governors to testify, Mr.. Poage
said his purpose was to get assur-
ances from them that if the local
gasoline tax is raised they would
take steps to improve the roads
leading into Washington.
TT is obvious that the roads lead
ing into the District from Maryland
and Virginia are not as good as they
should be-" he declared. Washing
ton is the trading center for a large
area in nearby Maryland and Vir-
ginia and the roads leading into the
city should be as fine as those other
States have constructed in the vicin-
ity of their principal cities
Information has been given Mr..
Randolph that 1-cent increase in
the tax here would add at least
100000 year to the gasoline tay
revenues