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Mr. B. tes. But the facts are that we are paying today twice as much for the transportation of crude oil and gasoline, and light oils from the oil fields to the eastern seaboard than we would have had to pay through the pipe lines.

Mr. KELLER. Well, Mr. Chairman, I am not informed on that, but I would be glad to get what information I can on that.

Mr. BATEs. Please do that, and give it to me personally, and see how it checks with the information I got from other sources.

Now, Captain Whitehurst, do you wish to be heard again?

STATEMENT OF HERBERT C. WHITEHURST, DIRECTOR OF HIGH

WAYS, ENGINEER DEPARTMENT, DISTRICT OF COLUMBIA Mr. WHITEHURST. Yes, sir. I have some documents that I would like to leave with you, and in addition, I would like to have you hear Mr. Harrison.

Mr. BATES. Yes, sir.

Mr. WHITEHURST. First, Mr. Chairman, I would like to file with the committee, so that there will be no misunderstanding of them having it, this statement which gives, on page 68, the immediate program and the postwar highway program which runs to 1949, together with the detailed list, and other schedules to the future, and attached on the last two pages, marked Exhibit A, is a list of projects beyond the post war years which we have labeled “1950 to 195.3.”

(The document was filed for the information of the committee.)

Mr. WHITETTURST. We also would like to file with the committee directly this statement of the Highway Department showing all of its financial transactions with a forecast of estimates including revenues and expenditures, through the year 1955.

Mr. BATES. This gives your estimates?

Mr. WHITEHURST. Yes, sir, gives everything in there. There are several additional copies of this.

(The document was filed for the information of the committee.)

Mr. BATES. I think you have probably provided us with the information, and it got into the hands of the Senate Committee, and I sort of lost track of it.

Mr. WHITEHURST. We would also like to file the action the Commissioners have taken on April 4 with respect to this highway program.

I would like to leave two copies of that also. (The document was filed for the information of the committee.)

Mr. WHITEHURST. Now, while Mr. Keller and his associates seem to be excellent figurers, I am prone to say that I do not think that they thoroughly understand the situation.

He referred to not having taken a holiday during the war years in certain minor capital improvements, and the fact that we had so much money appropriated.

I would like to say to you, Mr. Chairman, that the reason we had these balances that we carried over that Mr. Keller spoke of, was due to war work, which was authorized and directed by Congress in a supplemental estimate in 1941 and 1942, and the Highway Fund was in the red to the extent of very nearly $2,000,000. On paper, of course.

We deliberately canceled the majority of the local improvements that Congress had authorized in the 1942 and 1943 appropriation bills

in order to get this fund back into the black, and to be able to go through with the necessary war work.

The reason that we had the balances, we canceled over $700,000 contained in the 1943 act by specific items.

And when I say “canceled," I mean we did not actually perform the work, so that the money would be carried forward.

Now, Mr. Keller and his associates have very kindly undertaken, over a period of months, to tell us just how we should put our budget together, how we should make our revenue estimates, what kind of a budget we should have, but we do not think that the petroleum industry knows what is needed in Washington nor what the people want.

However, as time went on, I rather lost confidence in the figures. He has read the fourth statement here today.

That is based on this same thing. The first statement that was put out by them came to us prior to the Commissioners' hearing on the increase. After we got hold of it, we marked it up with red figures which showed our official records as compared with what he had used.

For instance, he used, in 1946, $4,200,000 as the gas-tax income. Actually, the fiscal year having been completed, we knew exactly what we collected. We collected $3,684,925.

He showed under the registration fees and carrier fees $1,600,000. The actual was $1,161,858.

Well, prior to the public hearing, they revamped their statement and presented a statement in the public hearing which mathematically as to additions was very good, but we discovered, in analyzing it, that they had left out items over the 3-year period amounting to $7,250,000.

Well, quite naturally, they showed quite a substantial balance.

Now, this last statement that Mr. Keller so kindly furnished us several weeks ago—in effect, what they say is this: If you will hold your fixed expenses, your maintenance and operation, your minor capital improvements, at your 1947 level, there will be enough money left for major capital'improvements. We do not deny that. But the fixed expenses have gone up mainly because of wage increases, coupled with the fact that the Commissioners and the Congress have authorized an enlargement of the personnel of the Office of Director of Vehicles and Traffic, long overdue.

We all know that maintenance expenses have gone up.

And while I speak of operations, I do want to bring this one point in—that there has been no increase in the statutory force of the Highway Department in 10 years, except for the new positions that we are carrying in the 1948 bill in order to enable us to cover the projections that we have projected and will have under construction.

Now, maintenance costs have gone up more than any other cost. They have gone up to such a startling amount that we are right now in a very extended study, to see what we can do to combat the situation.

So that these two statements are naturally a little odd. Until I thoroughly explore them, I do not have much faith in the figures, and you can do anything with figures that you want to do with them, depending upon how you set them up..

Now, to take the current situation, which is probably the most enlightening, we talk about the gas-tax increase or the gas-consumption increase.

We used, as a basis of our estimate for 1947, 160,000,000 gallons of gas. Up to the first of the last day of last month, we were running at a rate of less than 145,000,000. Now, if we do not exceed 145,000,000, our revenue estimate for 1947 based on the 3-cent tax, will be $450,000 short of what we anticipated. That is one thing we are face to face with right now.

There is a great deal more, Mr. Bates, that could be said and information I could furnish in detail.

I have read a prepared statement before your committee; I have filed various documents with the committee; and I am prepared to file any other information that the committee wants in a break-down of cost, personnel, need, or to discuss the various projects that are included in the postwar program or in the projected program.

You will find in one of those documents justification and the reason for the inclusion of each and every project that is in there. It may be that the committee, in time, will want further statements in regard to that.

But the statement that was furnished us quite recently—when the petroleum committee put this information out to the gas stations, and by mail and otherwise—Mr. Keller very kindly furnished us with a copy of his statement. The pamphlet that they distributed showing all these figures, and so on, a copy of which came into the hands of Commissioner Mason—and he turned it over to Mr. Harrison, who is here today, and who is in charge of our Finance and Administrative Section of the Highway Department; he has had these things analyzed—and the statement they put out had 13 reasons why the gas tax of the District of Columbia should not be increased.

Well, we only found 2 of the 13 statements to be totally correct. There is one other that may be true. The verbiage used was an inference that made it incorrect.

However, I would like to have Mr. Harrison present this, because I think it is important.

Because Mr. Keller has left the impression here—endeavored tothat the District Highway Department has been extravagant and careless in its accounts and does not know exactly how to put its budget and its revenue statements, and so forth, together.

I might call the committee's attention to the fact, before I turn it over to Mr. Harrison, that the question of gas-tax increases has been up his winter in 22 states. Just what the status of all this legislation is, I am not prepared to say, except in connection with the State of Maryland, where they have increased it from 4 to 5 cents.

I would like to file with the committee for their information the latest statement of the Public Roads, which is for 1945. The 1946 statement has not come out yet. This shows the gas-tax rate in all of the States of the Union. This is the State rate and does not include the Federal rate.

I think maybe someone might want to refer to this. It is in the first column, Mr. Chairman.

in order to get this fund back into the black, and to be a through with the necessary war work.

The reason that we had the balances, we canceled over contained in the 1943 act by specific items.

And when I say "canceled," I mean we did not actually the work, so that the money would be carried forward.

Now, Mr. Keller and his associates have very kindly un over a period of months, to tell us just how we should put ou together, how we should make our revenue estimates, what ! budget we should have, but we do not think that the petro dustry knows what is needed in Washington nor what th want.

However, as time went on, I rathér lost confidence in the fi
He has read the fourth statement here today.

That is based on this same thing. The first statement that out by them came to us prior to the Commissioners' hearin increase. After we got hold of it, we marked it up with re which showed our official records as compared with what he

For instance, he used, in 1946, $4,200,000 as the gas-tax Actually, the fiscal year having been completed, we knew exac we collected. We collected $3,684,925.

He showed under the registration fees and carrier fees $1 The actual was $1,161,858.

Well, prior to the public hearing, they revamped their st and presented a statement in the public hearing which ma cally as to additions was very good, but we discovered, in ai it, that they had left out items over the 3-year period amou $7,250,000.

Well, quite naturally, they showed quite a substantial balai

Now, this last statement that Mr. Keller so kindly furn several weeks ago-in effect, what they say is this: If you w your fixed expenses, your maintenance and operation, you capital improvements, at your 1947 level, there will be enoug left for major capital improvements. We do not deny that. fixed expenses have gone up mainly because of wage increa: pled with the fact that the Commissioners and the Congre authorized an enlargement of the personnel of the Office of ] of Vehicles and Traffic, long overdue.

We all know that maintenance expenses have gone up.

And while I speak of operations, I do want to bring this oi in--that there has been no increase in the statutory force of th way Department in 10 years, except for the new positions that carrying in the 1948 bill in order to enable us to cover the pro that we have projected and will have under construction.

Now, maintenance costs have gone up more than any oth They have gone up to such a startling amount that we are rig in a very extended study, to see what we can do to com situation.

So that these two statements are naturally a little odd. I thoroughly explore them, I do not have much faith in the and you can do anything with figures that you want to do wit] depending upon how you set them up.

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