Evening star., 1914-01-10

from would not be subject to taxation OF
any kind for any purpose The states
which wished to benefit thereby Wouid
appoint state highway commission IN
each instance. A great many OF the
states have already done so. and all would
want to take advantage of this federal
officer.
In order to properly apportion the fund,
the United States highway commission
would ascertain the total land area, the
population according to the last federai
census, the total assessed value OF al
taxable property and the total mileage
of public highways in each of the sew
crai states, and would compute the per-
centage of the total of each Of these four
factors possessed by each state. Then
would come a computation of the average
of the four percentages for each state.
This average would determine the per-
centage of the s1,0UOOo0.o00 of which
each state would be legally entitled TO-
If the bill We're to go through in l9l4, Tor
instance, these averages would give New
York s7s.o000o0. Texas $50 6oo'ooO * Fem nm
syIvania $56. 100000. Illinois $9. 4OO. .OO
California $35, 100000, Missouri $3o,JOo,UU
and SO on down to the little state of Del
aware with 81, ,40O,OO
Senator Bourne gives the following rea-
sons for determining the economic factors
as he has done: Area should be a factor
because of the greater necessity for more
or better roads In the newer or larger
states; population a factor because OF
whatever direct contribution Is made by
the people through the federal govern
ment is a tax on all the people; assessed
valuation of the property In each state a
factor because of the utilization of the
federal credit through the government be-
coming practically an indorser for the
states and because the taxable property
of the state must bear a large proportion
of the expenditure for road Improvement,
and hence the property of the states
should receive recognition in accordance
,,,;xt tha ioh ifNr cd ga n
roads already in use factor as recog-
milton of industry and efficiency of those
states that have already constructed
roads at their own expense.
Whenever any state should apply for
its share of the United States highway
fund, but not to
States REQUIRED exceed 20 per
to Deposit Bonds. amount in any
one year, it would have to deposit state
bonds equivalent to the amount asked
for. These bonds would have to pay in
terest at the rate of 4 per cent per an
mum, and be redeemable in fifty years.
Further. these state bonds would not be
acceptable II the total bonds of the
state, including the bonds issued to take
advantage Of this federal aid, exceeded
10 per cent Of the assessed valuation
of the states taxable property. These
requirements being fulfilled, the treasur-
er of the United States would proceed
to offer for public sale. and upon a pro
rata allotment basis. federal bonds at 3
per cent to the amount desired.
Thus, the federal government would be
paying out 3 per cent son its bonds and
| receiving 4 per cent on the state bonds
deposited with it. The act provides that
| the extra ! per cent shall become a sink
| ing fund, to be used from time to time
are used. An account would be kept
with each state that deposits bonds and
receives funds for good road purposes,