Evening journal., 1914-06-23
S1,OOO,OOO,OOO ROAD.
BOND issue FAVORED
Securities Issued by States
to be Guaranteed by Fed
eral Government

WASHINGTON, June 2s.-one bill
lion dollars to be raised in the course
OF term Of years by the sale. Of
State bonds guaranteed by the
Federal Government, will be spent for
good roads if bill which will be
fayorably reported to the Senate by
the Postofice and Postroads Com
mittee this week is passed.
Casting aside the Shackleford bill
which has already passed the Houze
Of Representatives, the Senate Post
reads Committee, it was learned to-
night. virtually has agreed 10 report
out measure along the lines pro
posed by eX- Senator Jonathan
Bourne, Of Oregon
Despite the scoffing at its financial
methods, the plan has won the ap-
proval of Senator John w. Weeks, Of
Massachusetts. formerly a member Of
the big bond selling brokerage house
Of Hornblower & Weeks. and OF many
other Senators on the Postroads Com
mittee, among whom is Senator
Bryan, of Florida. a prominent mem-
ber Of the Senate Appropriations
Committee.
Shackleford Bill Unfair.
Decision to approve this bill was
reached through the constant objec-
tion that the Shackleford bill was not
fair to the States which have already
spent millions to improve their roads
Senators from these States, particu-
larly Senator MARITIME, of New Jersey,
which has spent millions in construc-
ting a wonderful system of highways,
urged that their States should not be
taxed to build good roads in other
communities. The Shackleford bill
appropriated $25 100000 out of the
National Treasury for the building of
roads AS a compromise, Senators
on the Postroads Committee offered
TO cut the amount to S5,000.000 and
report the bill favorahly. Flushed
with their victory in the House, ad
vocates of the Shackleford bill re-
fused to accept such a compromise.
cnly to be assured that the Shackle-
ford bill will remain buried in COM
mittee, certainly for this session and
probably forever.
In commenting on the bill, which
his committee expects to report this
week, Senator MARITIME. of New Jer-
sey, said no State which did not wish
to avail itself of the Governments
credit in improving its roads would
be forced TO come in. In such case
its only contribution to the national
cause would be that it would share
in the guarantee Of the bonds.
Each States share Of the billion
dollars Of bonds would be determined
upon the basis of area, population,
assessed valuation and road mileage.
Low Interest Charge.
Should the State issue its bonds
without the Federal guarantee" Sem
etor MARITIME said, 1T would have TO
gay about 4 per cent interest, while
/ am confident that the Government
can obtain the money by placing its
guarantee on the bonds. at from two
and half to two and three-quarters
per cent. On $1,000 100000 the diff
ference in interest charges would be
enormous. I am convinced that there
is plenty of money seeking an abso-
lutely safe investment in the country
TO take up such an issue of bonds at
those interest charges"
lnuef tne pldn Dl ulstIiputiuu
among the States of the amounts
which the Government would guar
antee under the bill, New York could
issue SIS, 100000 of bonds guaranteed
by the Government; Illinois, SS9,400,-
600; California. S35, 100000; Connec-
ticut sS.700,000; New Jersey, S17700,-
900. Massachusetts,, S27300.000
Pennsylvania, S5O,50O,0OOi and Geor-
gia, S240500,000.