The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1920-10-08


tiers become big cities. A store on a
street where 10000 pass daily brings
more than ten times as much rent
ordinarily as the store located where
only 1000 pass each day. Property
values increase: trade gains and as
sessment valuations rise and the un
changed tax rate yields larger
: amounts.
I This applies equally to the metrop
oils and its great department stores
and mills and factories and to the
crossroads community with its gen
eral store and blacksmith shop or ga
rage. The state and community moves
only so fast as the people can move.
Good roads are used more than poor
roads. Road betterments increase ira
VEIL -. W..
i h Bond Features Explained.
City property becomes more valu'
able as it is made more accessible,
and farms are worth more when
reached by good roadside farmers
railroads.
Fear is expressed that the legisla-
ture may permit the sale OF large
amounts of bonds and thus shift the
cost of good roads largely to the gen.
eral ax-payers.> Twelve Wisconsin
counties last year issued more than
$4,000, 900 of bonds to build roads and
many states are bonding for road i'm.
proven nts. ~ ~
Amendment No. 1 provides that road
bonds up to $10,OO0,O00 year may be
issued in the discretion Of the legis-
lature, but that not more than $75,-
100000 shall he outstanding at any
one time. Also, it provides THAT all
bonds must be sold at par or a Epremi-
UNI and that s per cent shall be the
maximum interest rate. The latter
limitations are the Same rs those
which prevent the sale of Minnesota
soldiers bonus bonds. So the bond
section of Amendment No. l now is
virtually of no effect.
When per cent bonds were being
sold, however, unexpected increases in
caused officials to announce that the
license revenue will be ample to
finance tho state highway system and
that in all probability no bond money
would be needed.
Special Safeguards Provided.
Should the bonds become salable,
special safeguards are made. The
sinking fund is created before any
bonds are issued and it can be used
only to pay bond interest and princi-
pal. With a definitely determined
sinking fund, the legislature can de-
eide how many bonds may be issued
without requiring a tax levy. as cas-
lily as businessman can find out from
his bank book how much money he
has on deposit. Otherwise, the bond
provisions are. the same as all Others
governing Minnesota issues. .-...... Il, >
Advocates of the Amendment No. !
plan hold that the bond clause may
prove a great advantage. For exam.
|ple, they point out, should credit be.
come easier and material prices drop,
some good roads bargains may be Sc
|cured. Again. they add, should the
demand for labor slachen, bond money
might mean work for unany and avert
hard times in Minnesota. They main.
tain that in no event can the bonding
authority work harm and it may prove
of great value should the bonds be-
come marketable. And under the sink,
ing fund plan and other safeguards,
the cost Of the good roads plan will
be paid for almost entirely with motor
vehicle license revenue, federal aid to
be added also.
State System Outlined.
/ NIinnesota's motor vehicle license
fees now are lower than those Of any
other states where higher license
funds are used for road betterments
generally are willing to pay further
increases upon finding out what big
returns they receive for their money
Seventy routes designated in the
amendment make up the proposed
state system of trunk highways. They
are described in the amendment
which soon will be published in full
in this paper. The routes were select
sd by the legislature of 1919 after in.
designations and public hearings and
it is generally admitted that every
county and section was given fair con
sideration.
The original system may he added
to when necessary to touch new coun'
ty seats, the amendment provides. and
also in the discretion of the legisla.
ture after the original system is Is
per cent improved and necessary
funds are available.
"Every Road Good Road"
The good roads plan is designed to
link together the more important cities
and towns and to make every Mime
sofa farm accessible by roads equal