The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1913-07-15

states. 1t contemplates the state
shdl pc permitted tc utilize his super
icr edit to an aggregate amount o
one billion dollars, the proportion as
signed to eac1 state being determined
by consideration of four factors-arei
population, assessed valuation anC
rosh mileage each factor being Civ
en- equal weight.
Up to the NIT of its appor-,on
ment, each state could deposit viii
the easurer of the United States It's
four per cent fifty.year bonds as col
lateral whereupon the United Sac;
treasurer would sell an amount OIL
Federal three per cent fifty-year bond
at par by popular subscription upon
a pro-rata allotment basis and pay ov
er the proceeds to the state. The mon
ey should be expended under the sup.
ervision of the state highway commits.
sion, which each state must have be.
fore it can take advantage Of the Fed.
eral aid When the states pay inter
est on their bonds the United States
treasurer would devote three-fourths
thereof to payment of the interest on
the corresponding Federal bonds and
deposit the other fourth in a sinking
fund which the Government would use
in its ordinary business, and upon
which it would allow interest at three
per cent compound annually; so that
at the end OF fifty years the sinking
fund would equal the face of the state
bonds and those bonds would be can
ce'ed and returned to the state with
out any further payment Of princip-
al
Good Business For the States
As future aid and incentive to the
the states the government would pay
20 each state annually an amount equ-
vi to two per cent Of the amount OF
state bonds on deposit--this money
to be expended, to gether with an eq.
ual amount OF state funds, for main
tenance of the roads that have been
constructed. Failure to expend the
maintenance money effectively would
result in discontinuance of the fedora,
payments.
The plan also provides for the es.
adjustment of National Academy OF
Highway and Bridge Engineering in
connection with Office of Public Roads
With a 2 year course students TO be
admitted by competitive examination,
enc from each congressional district,
and each TO be paid a specified sum
that will cover III travelling and
living expenses during the course.
Supervision OF the federal interests
the highway expenditures is left
to a commiss on rlade up of the chair
men OF the Senate and House Commit
ices on Post-Offices and Fost-Roaids,
and the director of the office of Pub
lie Roads who will appoint district
engineers to see that the Federal mon
ey has been expended properly.
anticipate there may be ques-
: on as to the extent of aid the superb
or credit of the Government affords.
Some of the states may saw can
sell our bonds at par on three per
cent basis. Why should we pay the
Government four per cent?" ! greatly
doubt the ability of any state to sell
bonds at this time on three per cent
basis. Yet II 1t could 1t would be bet
ter for the state to avail itself OF the
filtered opportunity, II my suggested
plan be adopted, and pay the Govern
ment four per cent on the amount Of
money received for a period OF fifty
years, rather than pay the purchaser
of state bonds three per cent for
period Of fifteen years and then be
confronted with the necessity of pay
ing che principal.
For illustration: Iowa, under my
Vlan would receive twenty-five million
dollars and would have to pay the gov.
eminent four per cent for 50'yesrs--
or a total Of fifty million dollars -
when her own bonds Of twenty-five
million dollars would be cancelled and
returned. Thus Iowa would escape
lirect payment Of the principal. But
II Iowa sold twenty-five million dol
lars OF three per cent state bonds at
oar in the open market she would
pay thirty-seven million dollars and
a half as interest On same during
period of fifty years, and then be con