The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1911-06-29

example, 1t will be necessary to take
typical farm in some portion Of the
central west, and apply the two plans
to that farm. AS the figures are at
hand, the writer, selects an average
farm in the corn belt of Illinois.
There is no reason why this farm
should be taken in preference to a
farm in any other state, except that
more complete data Is at hand, hence
it will be used. The same plan will
apply with slight variations to other
farms in other states, the owners of
which, by getting the assessed valua-
ton of their township and state, can
figure out and ascertain each for him.
self just what the effect will be upon
his farm.
The assessed valuation Of an aver
age 100 acre farm in the corn belt of
Illinois is about $4,000. Suppose the
township, of which this is part, has
an assessed valuation Of, say, $780,
900 and is out of debt. BY the old
plan, suppose there is an annual tax
levy for ten years Of 60 cents on one
hundred dollars. This will produce
$4,000 per year, and in ten years will
total $4,000. This money spent I'M
der average local conditions means
that about half of it will be wasted,
and the farm in question will have to
pay each year sixty cents on thirty
hundred dollars or $500 per year.
The net result of this expenditure
will be the paying out Of $4,000 du-
ring ten years, and probably will pro-
duce not much over $4,000 worth Of
roads at what they ought to cost.
Suppose the new plan is adopted, by
issuing bonds to the full constitutional
limit of per cent, paying the same
off in installments spread over TWEEN
ty years, and letting the next genera
ton, who will use the roads, help to
pay for them. The bond limit on the
township in question is 100000. of
which exactly $4,000 rests upon the
farm in question, to be paid off one
twentieth each year, or $3.50 on &C
count of principal each year for
twenty years. Interest of course will
be paid annually, but will decrease as
the bonds are paid Off The first years
interest will be 5 per cent on $4,000,
or $3.50. Add $3.50 on account Of
principal, and the first years payment
on this farm for good roads is $500.
The tenth year one-half of the bonds
will be paid off, and the interest will
drop to $685. so that that year the
tax will be $11.25. The last years
payment will be $3.50 on account OF
principal and SO cents on account
Of interest, making total of $7.sS.
Thirty thousand dollars of bond is.
sue will build far more and far bet
ter roads on general contract, than
$4,000 spent in ten years on a patch
work plan, and the cost to the tax
payer will be considerably less as
we'll.
Now, let us suppose that Illinois
had, as it surely needs, an up-to-date
state aid law whereby one-half the
amount required for building perma.
nent roads should be paid from
state tax levy. If this condition OBJ.
tanned, then the township in question
could after raising 100000, draw $780,
600 more from the state, and expend
100000 upon highways in their town.
ship. In Illinois less than one-third
the property of the state is represent.
ed by farms, so the state tax will be
spread over an immeasurably greater
amount of property. A tax of ten
cents on one hundred dollars for the
state, will produce nearly $2,50O,OOO a
year, and the state aid tax upon the
farm in question will be $500 per year
in order to raise the second 100000.
This state tax would add $500 to the
tax bill of the farm in question, so the
maximum amount per year. if 100000
were expended upon the roads of the
township would be $500 per year
less than IL cents per acre per year,
and take 1t for series OF years, any.
one who can figure at all, will see that
the cost to that community, spread
over series of years, will be even
less under the bond contract plan, and
that they can get, by the new plan,
about three times as much road as
they would upon the old. In handling
road building in this big way, 1t will
give an early and practical solution Of
the good roads problem, vastly better
and more effective than to pass the
hat, get up an entertainment and
wear oneself out to raise the money
to build a little hit Of road