Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1946-11-07
People, After All Foot The Bills
For Sol Called Government Gift"
BY LYNN NISBET
Daily Dispatch Bureau

Raleigh. Nov. GA small group
of men the other day got into dis
cussion of the highway construction
program. and some one made the OBJ
Servation that substantial part Of
the money being spent in North
Carolina this year came from the
Federal government. Former Cover
nor J. e. b. Ehringhaus took mild
exception TO that statement. and
pointed out that neither State or
Federal governments have any
money except that paid in by citi-
ZenS through various tax lcvicS: and,
anyway, the Federal government COL
lects almost as much gasoline tax out
OF North Carolina as it turns back in
road money. That led to search for
information on the subject.
The State collects six cents GAL
lon on gasoline for highway pur-
poses, and the Federal government
collects one cent Il gallon. The State
also collects quarter cent gallon
inspection fee, about which more
will be said later. During the five
years ending June 80, 1916. North
Cardinals gasoline tax yielded Il
total Of Sl28.653 1897. The federal re-
ceipts for the same period on the
same gasoline were one-SiXth of that
or S2l ,442,3l4.
During those five years the United
States allOcated to North Carolina for
highway purposes the sum of SOB
937.9T2, which is approximately Il
million and half dollars more than
was collected in the state. But-Sl.-
322,648 of the total was carmarked
for access roads to military posts and
other federal installations. The fed
oral government paid entire cost Of
those access roads: but al the same
time it should be noted they were
of little service to the general citi-
Zenship of North Carolina. If the
amount spent on wholly federal ac-
cess road projects is deducted il will
be found that the federal aid To gen.
cral state highway construction was
practically the same as the amount
OF gasoline taxes received from the
state.
Advocating Gas Tax
For year by year breakdown on
Federal receipts, onc-siXth of the
States gasoline tax is used. and fig
urcs on ALLEGATIONS were supplied by
the state highway commission. For
the fiscal year ending June 80, 1912.
the federal government received in
gasoline taxes from North Carolina
S4.099,02l and returned for road
work Sc, 1853, 089. For the year end
ing June 80, 1943, collections were
S3,573 ,289 and ALLEGATIONS S5,O0l ,625.
For l945 the figures were S3,842,9lO
and 1894, l44, and for 1916 they were
S5,359,645 and Sl1,459,61O. (The 1914
and l945 ALLEGATIONS were for the
wholly federal access roads, and the
big jump for the past year tends to
cqualiZc ALLEGATIONS with collections
for the entire period)
II is conceded that these have been
unusual years. Construction was prac-
tIcally at standstill for the first four
of the five years covered. Gasoline
rationing had reduced consumption
and consequently cut the tax yield.
However. check back over the annual
figures shows that gasoline con-
sumption had not been cut as much
as many people had thought. After
the big drop from 1874 to 1912 there
has been constant upward trend
Is gasoline taxes, with the big Jump
coming during the past year after
the shooting war had ended.
Into General POTS
Federal and State gasoline taxes
go into general pots from which
ALLEGATION is made on prescribed
formula. roughly Il four-way distri-
button based on area, population.
road mileage and automobile regis
tration. Federal money is distributed
10 states on this formula and state
money 10 highway divisions and then
10 individual counties. That means.
OF course. many states and counties
get back more than they pay in.
while others get far less. No fair
minded person can object TO this
wealth of every other. and all coun-
tics have Il part in developing the
wealth that is concentrated around
Charlotte. Greensboro and Winston