Evening star., 1940-08-06
Gas
Continued From First Page.)

writer's of certain Washington news
papers treated the proposed increase
in the gasoline tax. I want the bill
to be considered on its merits. Any
attempt to speak about hi -jacking'
or that the bill was asked for by the
oil companies or allied interests is
certainly going far afield. AS far
as know, no oil company has asked
for this bill"
Mr.. Randolph subsequently point
ed out his long service on the Dis
trict Committee certainly should
have proved he is friend of the
people of Washington. Then he
said:
Il resent the implication that the
bill is the act of a gentleman who
is against the District. That impli-
cation is beyond comprehension.
"Tness may be no merit in the
bill, but there is merit in the dis
cussion Of it. All I want to see is
thorough discussion"
Representative Seccombe, Repub-
lican, of Ohio at that point said he
resented the criticism OF Chairman
Randolph.
Il nope We won't start out with
two strikes on u.s." he added.
Representatives OF Oil companies,
trade and civic organizations and
motor clubs crowded the commit
tee room as the hearing began. Rep
resentative Poage explained the
meeting was called primarily to take
the testimony of Maryland and
Virginia officials, but promised to
later give residents Of Washington
an opportunity to express their
views.
At the same time Mr.. Poage ex-
pressed the opinion no attempt
would be made at the present ses.
sion of Congress to seek action or
gasoline tax increase legislation
unless the session runs far into the
fall of the year.
Mr.. Battle was accompanied by Ms
assistant, c. F. Joyner, and William
r. Shands, State director Of re-
search and drafting.
Mr.. Battle prefaced a prepared
statement submitted to the sub.
committee by explaining that vir.
ginia and the District had beer
good neighbors" for many years
and that his remarks were not to
be made in spirit OF criticism.
Twofold Problem.
Virginia faces a twofold problem
in which 1t Is compelled to seek
means for protecting both this
source of revenue and a section OF
its business which is being dam
aged" he said Unfortunately, the
remedy cannot be achieved in
ternally. Therefore, to meet this
situation, Virginia must have the
cooperation of its neighboring Dis
trict of Columbia. The request for
an increase in the District gasoline
tax rate is not in any sense an in
reference in the legislative func-
tions of a neighbor, but is merely
petition for assistance and CO.
operation in solving problem that
cannot otherwise be settled"
Mr.. Battle subsequently COM
planned that Virginia's loss in rev.
enue under the existing tax differen-
tial has been considerable" Some
indication of the loss, he explained,
is reflected in the tax returns OF
certain Virginia trucking companies
that purchase gasoline in the Dis
trict in order to obtain cheaper fuel
I'm many instances" he said,
"these carriers earn the major por-
ton of their revenue in Virginia on
Virginia highways, yet minor pro-
portion of their total gasoline taxes
is paid to Virginia.
"On the basis of miles Travelled in
Virginia, study was made of IL
carriers, and it was found that they
had failed to purchase during 1889
gasoline in Virginia in proportion to
mileage Travelled by 1851 1923 gallons.
The tax on this gasoline would have
been $52,600.9O, which has now, OF
course, been irretrievably lost"
Mr.. Battle also said a bus line
which operated 1864 miles in vir-
ginia last year failed to pay any
gasoline tax whatsoever to the State,
and another operated 260,42 miles
in the same period without paying
any tax.
"Virginia's loss in revenue would
be much greater" Mr.. Battle con-
tinued, ''if it were not for the fact