Evening star., 1946-10-25
Business Group
And oil Men Hit.
Rise in Gas Tax
District Highway Unit,
Auto Association Back
PIon at Hearing
By John W. Thompson, Jr.

District gas and oil men and
the Federation of Businessmen's
Associations today attacked a
proposed 1-cent-a-gallon in
crease in the city gasoline tax.
Opposing them as witnesses at a
public hearing at the District Build
ing were the District Highway De-
partment and the Advisory Board of
the District division, American Au-
tomobile Association
Both said the tax increase is nee
essary to the postwar highway de.
of the city.
3-Pojnt Program Heard.
The hearing was called by the
District Commissioners on q three
point program of their Special Tax
Committee under Corporation Coun-
sci Vernon E. West to add an esti-
mated $1,500,000 to the highway
fund revenues. The proposals were:
l. A 1-cent- gallon increase to
bring the gasoline levy to cents a
gallon permanently. 1t now is 5
cents temporarily, and due to re-
turn to 2 cents in 1851
g To double the 50-cent annua!
automobile inspection fees.
3. To set registration fees of buseS
using fixed routes at one-half those
now paid by charter and sightsee-
ing buses using unflxed routes.
Fixed route buses pay an automo-
bile registration fee of $i2 a year.
Unfxed route buses pay 500
license fee and truck weight levy,
as well as personal property taxes.
Fixed route buses pay mileage
tax in lieu of the personal prop
erty tax.
Clash Over Expected Income.
Today's session was marked by q
clash between Highway Director H.
c. Whitehurst and Joseph E. Keller
of the District Petroleum Industry
Committee, over figures of expected
highway fund income during the
next two years.
Mr.. Keller. opposing the tax in
crease, forecast an increase in gaso-
line consumption which at the pres
ent tax rate would, he felt, provide
adequate money for major construc-
ton projects.
He charged Capt. Whitehurst with
using constant revenue figure in
his calculations of need and of not
allowing for sufficient increase in
gasoline consumption here.
Says Misses Are Seldom.
We've been in this business for
a long time" retorted Capt White
hurst, land it's very seldom we've
missed by very much in our fore
casts of revenue"
Capt. Whitehurst said that with
out the proposed increase the high
way fund would face deficit in the
next fiscal year of more than 81 ,500.-
900, if all necessary highway i'm
provements are made
He insisted that fixed and operat-
ing expenses could not be reduced
and that minor capital improve
ments consistent with the growth
of the city must be maintained.
This, he said, would leave only
the appropriations for Federal aid
projects or those for the South Capt.
tol Street Bridge to be reduced. To
cut the former. he pointed out,
would reduce the Federal matching
money being received by the city
and would not be good business"
Mason Emphasizes Need.
Earlier, Commissioner Guy Mason
l,n ha rxrffH thu
statement that 1t is essential. that
if needed improvements are to be
completed in reasonable time, ad-
ditional revenue must be obtained
for the highway fund"
All highway and traffic improve
ments and portion of police sal-
aries are paid from the fund.
Following Capt. Whitehurst to the
witness table, P. Y. K. Howat of the
Automobile Association Advisory
Board, indorsed all three of the
West Committee proposals.
Mr.. Keller, however, was sup-
ported by Harry Wainwright of the
Association of Retail Gasoline Deal
ers. who likewise predicted an in
crease in gasoline consumption az
new cars come upon the market.
Urges Delay in improvements.
For the Businessmen Federation,
j. M. Hiser opposed the tax increase
with the suggestion that capital i'm
provements be delayed until lower
building costs prevail.
The Board of Trade advised the
Commissioners it still is studying the
proposals and hopes to file an opin-
ion by the emo of the month.
Spokesman for thes Capital
Transit, Greyhound and Blue Ridge
bus companies strongly opposed the
plan to bring their license costs
into line with the relatively small
number of sightseeing and charter
buses.