HIGHWAY DEPARTMENT OPERATING BELOW BUDGET

States Waging War On New Bootlegging Gang

By E. E. Duffy Without the fifes and drums or the blatancy that goes with liquor bootlegging, another form of bootlegging has eaten its way into the public pocketbook. That is the bootlegging of gasoline which, claim the most conservative estimators, steals $40,000,000 yearly from highway funds, enough to build, at present low prices of labor and materials, some 1,500 or 2,000 miles of concrete highway.

That bootlegging of gasoline has existed for some little time has been known, but not until quite recently was it discovered that it has become so widespread that about one-fifteenth of all gasoline used in automobiles is sold in such a way that the prescribed gasoline taxes are not paid to the states.

Several states, when they became aware that many an unsuspecting motorist's dollar was making "successful" business men out of crooks, launched campaigns that have a two-fold purpose; the placement of bootleggers behind the bars and of gasoline tax money in the proper receptacle, the state treasury.

torist's dollar was making "successful" business men out of crooks, launched campaigns that have a two-fold purpose; the placement of bootleggers behind the bars and of gasoline tax money in the proper receptacle, the state treasury.

Gasoline bootlegging, which is found in nearly every state regardless of the size of the gasoline tax rate, can be stopped and at a profit. In Illinois, for instance, the 1931 July-October collections were $728,000 more than in 1930, even though less gasoline was sold. Further, 50 tax evaders have been indicted and more will be soon. Pennsylvania is also playing a winning hand. In September, 1931, that state collected onethird more gasoline tax money than in the same month in 1930. Pennsylvania has more than 600 gasoline tax evasion cases pending in the criminal courts.

To curb gasoline tax evasion states must co-operate with each other, and reputable gasoline distributors and dealers must work together even to the extent of forming combative organizations. In some case it will be necessary for states to tighten up laws. Fraudulent entries in books, the carting of untaxed gasoline across state lines, the operation of dummy companies, all can be eliminated.

At any rate, gasoline bootlegging can be stopped for gasoline can't be manufactured in the quiet of the kitchen or basement. It must come from large sources of supply, which makes it comparatively easy for government and private agencies to call a halt. Motorists have permitted themselves to be taxed for the reason that they benefit through road construction, therefore government is morally responsible for all gas tax money.

Highway Departmental Expenditures In Present Fiscal Year