Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-03-23

when ~ was put III the EESi time bA
I those Interested in good roads the iutcn-
! ton was this That it was simply L,
! raise the borrowing capacity of the stat,
for this specific purpose, that is, fo'
the purpose of hundiue roads, to th,
! amount of I've million dollars Just tI,
! same as boy the Constitution the borrow
| ing capacity Of the state is limited t.
| three hundred thousand dollars nov,
which is Inadequate for the public need
of q modern state OF this size.
New MI Chairman, ! cannot commit
myself Tor the other members OF the mi
uuriiv party because do not think ii
has been Il matter of consultation he
that party. but | believe the minority
party is to u man in favor of legislation
of tHtS Kind but, rs ! say. While not be
ing able to commit the minority party. 81
seems to me they would favor the idea
at SET forth by the gentleman from
NorridEewoes and the gentleman from
WesthrooK, that the bonded indebtedneSs
which is 10 be taken care of by the au-
tomobile proceeds, and which is to be-
used for the Improvement of our pcr-
manent highways, shall at no time in the
future until the Constitution may be
subsequently amended. exceed tho
amount of two million dollars. 1T seems
to me there win have to be some fur
Their amendments made 10 the amend
meHt offered by tie gentleman from
Houlton in order TO bring that about. |
have not drawn any amendment because
tins matter came up quite unexpectedly
il seems To me, however. that we nught
to get together and agree on an amend
pacftv of the State 10 be increased 10
that extent to the amount OF two million
dollars or whatever amount we may
agree It shall be; not that the State may
issue two million dollars or less at any
one time OF that our bonded indebted
ness may be taken up and perhaps in
thirty-fve years from now be only five
hundred thousand dollars Perhaps We
may need our two million dollars moro
as much thirty-fve or forty years from
now as we do now. II that is the ease
/ think we all agree It is a straight bus
mess proposition, and what We want is
to bring about a wording Of this pro-
posed amendment SO that it will be ellen
to the laymau as well as To the profes-
sional man that we mean that the boz
rowing capacity of the State shall he
limited to the sum of two million dollars
or whatever sum we see fit to make It
during the ferty-one coming years.
MI PETERS OF Ellsworth: Nj. Chair
man. ] don't think We disagree about the
natter and l suggest to the gentleman
from HoultoH chr Hersey1 thaat we
leave the section exactly as it was AMI
add these words, which il it meets with
Tie views Of the various gentlemen might
take the place of the amendment already
offered
Provided however that bonds issued
under the authority of this section shall
never exceed two million dollars in the
aggregate" That Will leave the author
ity Of the State free to issue bonds not
exceeding two million dollars at any
time. but never in the aggregate To eX-
eeed two million dollars.
Mr. HERSEY: MI Chairman, my IN
Outstanding, as far as ! have discussed
the matter. is that the State is to have
authority to issue two million dollars ia
hnosd for the purpose of good roads.
and the state Is to have forty-one wears
in which to pay what THAT two million
dollars. If we keep Issuing bonds for
two million dollars at every session of
the Legislature of course we would in
crease our indebtedness. Now it seems
TO me We have foTty-one years in which
to pay that Indebtedness and only one
bond issue. otherwise it seems TO me that
we cannot keep our borrowing capacity
at the extent of two million dollars for
good roads, otherwise forty-one years
won't pay the debt ! think the forty one
years in there means that we have forty
one years in which to pay any indebted
ness on the two million dollars raised
on new bonds to take care of the new
bonds l will withdraw my amendment,
Mr. Chairman, and further Oh during the
course of the matter we can probably
get together and agree on something
that Will make it plain so that We Will
all understand IL alike.
The CHAIRMAN: The gentleman from
Houton withdraws his amendment
Mr.. PETERS: ar. Chairman, ! Will
offer an amendment which may possibly
meet the situation.
Mr.. SCATES of Westbrook: Mr.. Chair
man I would like to state just one mat
ter further This was brought to my
mind by the remarks of the gentleman.
from Houlton. OF course in that the
State must pay those bonds within forty
one years; they may pay them sooner.
The whole proposition which has been
up to the people OF the state is this.
That this automobile money shall be
used for the interest on those bonds.
Without any question OF doubt the re-
ceipts from the automobiles this year
will amount to approximately $4,000 or
s120,00o as near as the secretary of state
can estimate it. That tax will increase
each year and the amount of the in
crease will depend in a great measure on
the condition OF the roads. Now, S1l5.100
will pay the interest ON two million dol
lars at per cent. and redeem the prin-
eipal in . Years. that is according to
tue figures which have been made out,
Sl20,000 . year viii pay the interest on
two million dollars. and if the bonds are
serial they should be- it will pay the
entire principal in . years. | simply
want to make that fact plain.
Nj. BISBEE Of Rumford Mr chair
man. [ would like To ask the gentleman
from Westbrook, through the ChaH-1
don't know. and I have not heard much
about thus hut in the bill it only speci-