New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-07-16
WHAT SHOULD WE DO
WITH THE ROAD BONDS

That states, counties n
palities have come to a realization
of the difficulties of the situation
as to public improvements that in
yolve vast expenditures is becoming
increasingly apparent. says the
Taxpayers Association of New
Mexico.
In California, the Automobile Club
of Southern California and the Cali
fornia State Automobile association
have Joined in asking Governor
Stephens to bring about a suspen-
sion of highway construction. Ger
tainly absolutely necessary sections
are to be completed and mainte-
nance provided for. II is urged
however that there be a curtailmeni
of overhead expense by decreasing
the state highway forces as rapidly
as possible.
In its letter the Automobile Club
states that at present prices the
$0,0O0,0O bond issue voted Jul,
|. 1919 will build only half the mile
age contemplated at the time of the
election, and that a higher rate Of
interest must be paid to sell the
bonds at this time. The bonds a
the rate of interest they bear, ~
per cent, are unsuitable, and tc
market them at a higher rate Of
interest. say six per cent must be
paid, a difference that would
amount to $60O,OOO.OO a year. Vigor'
Gus statements urging 'curtailment
of road work in California have also
been issued by Chief Engineer
Fletcher, of the Highway Commiss'
ion, State Controller Chambers ant
State Treasurer Richardson, ap.
proving the proposal on the ground'
that high costs make it impossible
to go ahead with the work As orr.
ginally planned.
The Ohio Highway commission
states that transportation Difficult
ties has caused at leas fifty pei
cent curtailment of the road pro-
gram in that state. The Michigan
commission gives farm labor short
age as the principal problem inter.
fer,ng with road building ir places
and the transportation problem in
others. In Kansas, because of the
shortage of transportation and de-
probation in the value of bonds, Z
serious situation has a~riseni land
only half the proposed program will
be carried out this year.
The Illinois commission contem-
plated awarding contracts for l,Ut
miles of highway in 1920 and hoped
to complete half this mileage. Prac-
tically the whole program has beer
abandoned because of labor ano
transportation conditions and pre-
vailing high prices, Iowa report,
that contracts for bridges, culverts
and paving have been reduced to z
minimum. The Missouri amour
cement is that the labor situation
shortage of transportation, short
age and increased cost Of material
have greatly retarded highway con
struction."
1t will be recalled that Oklahoma
defeated the $50,0O0,000 bond pro
posal last year, partly because OF
the tremendous amount of interest
to be paid that would increase the
cost of the road building so pei
cent. The state of Vermont con.
sistently refuses to issue bonds for
road building purposes. In New
Mexico the people last year de-
feated the proposal to give power
to the legislature to issue bopds for
highway construction without sub
hitting the question to a vote OF
the people.
Next November the voters of this
state will be asked to vote upon the
question of issuing 100000 in
thirty year bonds at q per cent in
terest. The proceeds of these
bonds are to be expended in the sew
raj counties of the state according
to their assessed valuation of pro-
perty. If roads are to be built
that will outlast the period of the
redemption, $4,000 a mile is a mod
J crate estimate of the cost. On this
basis only 100 niles Of permanent
road can be built in the whole state
or less than an average of five miles
to the county. and this takes FEEDER
al aid of 100000 into consideration
1t should also be kept in mind that
upon the principal indebtedness OF
100000 the state will pay at
least $2,0OO,00W in interest thus
making the roads cost 100000 per
mile. If the bonds are sold at q
per cen discount the total mileage
will not amount to more than 100
miles of permanent roads, less than
an average of 81 miles to the
county. with federal aid funds.
What shall New Mexico do as
to the proposed bond issue under
conditions as they are? is the ques-
ton for the earnest consideration
of taxpayer, throughout the state.
Bulletin OF Taxpayers Associa-