The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1920-10-29
MANkATo FREE PRESS

heavier and better type Of road be in
stalled to NEE. the requirements.
The Objections Raised
The speaker said that objections are
heard from people living six. eight or tel
miles from these proposed trunk high
ways. that they are not interested. be-
cause they live so far away from the
main roads. Under the present system
of road building the majority OF the roat
money Is spent on main highways, which
highways or feeders to tHs trunk true d iiaes
II the amendment carries 1t will leave
ell OF the money available from present
sources of taxation for the so called
lateral or feeder roads. and while the
state is building this trunk line system
of main highways. necessarily must be
of heavier type than tho ordinary
township roads because of the heavier
tarvel over them, the county adm town.
as many miles Of graveled roads In their
own nook and corner of the county.
Section 2 the speaker said provides
for fund known as the trunk highway
sinking fund: which fund shall consist
of proceeds from a tax imposed upon
motor vehicles. The moneys thus collect
ed shall be used for the payment Of the
interest and principal on any bonds. II
stated that in his opinion and the opin-
ion of the trainers Of the amendment
that no bonds viii have to be issueu, put
he stated that he would come to the
bond issue later on. Mr.. Holman said
necessary to care for the interest and
principal or the bonds is to be transfer
red to the trunk highway fund. He also
called the attention to the proposed sink
ing fund provision as a safe. sane mea-
sure. That il the bonds were issued, 1t
would guarantee the people buying the
same that the would be assured Of the
interest and principal when the bonds
matured.
The Section Three
Under section three, Mr.. Hohmann ex-
planned that the legislature Is authorized
to provide by law for the taxation OF
heavier basis than on other personal
property and that such tax shall be in
lieu of all other taxes. In explaining
that an amendment to the state constitu-
rs cort had rsd tbat tine imat
struction of roads and bridges Is an act
of internal Improvement and that under
the constitution of the state of Mime
sofa the state as a state. cannot engage
cannot engage in road and bridge build
ing. 1t was $50 explained that the state
license fee, which today is the lowest Of
any state in the union. should be raised
to such an amount, say SIS or $40 per car.
This would become tax, however, and
II It became tax the money thus de-
rived from the license fee would go into
the general revenue fund instead of the
road and bridge fund. and instead OF adj
ding to the road and bridge fund, would
be taken away from that fund. Here
the speaker said that under section three
he would explain what effect it would
have upon the taxes by taking personal
property tax off automobiles. A state
ment had been given out that there
would be no increase in the general tax
es. This statement the speaker stated.
ov.I f,y ~
be either an increase in the taxes Of
Blue Earth county not to exceed one half
Of one mill or it will be decreased at
least one and one tenth mills. 1t was
lected in Blue Earth county on autos
is a little over $4,000 which is approxi-
.mately one half of one mill. OF the 95
miles Of road in Blue Earth county that
amendment No. 1. and the county COM
missioners can spend nearly $4,000 on
lateral roads. Whether an increase Of
one half of one mill or a decrease of one
and one then mills rests with the county
Effect In Blue Earth County
If they decide to spend that amount.
or the $500 they spent last year on
will be taken over under the Babcock
plan. on the lateral roads, then they will
have to increase the taxes one half Of
one mill to cover the amount lost from
auto taxes a.aSs sc. the county
amount on other roads. then they need
levy S49. 600 less for road and bridge pur-
poses, minus the 5000 lost on auto taxa
ton would leave g saving Of $4,000
mill. This same section also provides
that the Legislature may issue not to ex-
coed $40, 000, 900 of bonds in any calendar
of bonds shall be outstanding That the
bonds must be sold at par. and will bear
five percent interest and tat II the high
way sinking fund Is not sufficient to pay
the interest and principal Of the bonds,
the legislature may tax all Of the prop
erty of the state to meet the deficiency.
Mr.. Hohmann stated that the word
bond Is big bugaboo, and many are
afraid Of the proposed bond issue. but he
iatnre will never have to avail lit it's '' self
of the provision of this section. and issue
bonds. because there will be enough
money available froTa auto taxation to
tenn. The speaker eaid that when Mr.
Babcock first took up the plan there were
approximately 100000 registered autos
and motor vehicles In the state. and fig
Yield an a revenue revenue Of 800. ooo. At " that
time there was no federal aid available
Since then, however the number of autos
has Increased by leaps and bounds till
today there are over 100000 registered
he state. 1t is proposed to levy
an average tax of SIS per car and fig
uring 100000 cars at present this would
yield a revenue of s5.400, 900 per year.
The Federal Aid
Added to this would be the federal aid,
IL the amendment carries adding to the
amount s2840.000 which would make
available for the first year sS.24o.0o0
sibly spent in the first year. 1t was al
SO stated that 1t Is reasonable to figure
that the number of autos will increase
in the next three years or four years to
100000 which at SIS per year for each
car would yield a revenue of $7.200.000
with the federal aid added would bring
in 100000 which the authof of the
bill had in mind would be all the state
would want to spend in any one year.
derived from the cost, horsepower and
the weight of the cars. so that man With
little Ford would probably be taxed
ten to twelve dollars q year, while the
paries with heavy cars and heavy trucks
would have to pay heavier tax. By
January first Of next year there will be
availab BILE. to the state of Minnesota fed
eral aid amounting to $685. 900, provid-
ed amendment No. 1 carries, and II 1t
gether with all federal aid in the flu
ture.
In concluding his remarks. Mr.. Hob
mann referred to many advantages of
Minnesota, and stated that he did not
think. nor any one present could look in
to the future ten or fifteen years hence
and see what this amendment will mean
to the people of Minnesota. For that
reason he hoped that every voter will
Renefifs "a Re Darjved