The Cook County news-herald. [volume] (Grand Marais, Cook County, Minn.) 1909-current, 1920-10-13

roads through Increased traffic and
trade. Traffic makes BUSINESS; good
roads spread prosperity. Railroad CEN
tiers become big cities az store on q
street where 10000 pass daily brings
more than ten times as much rent
ordinarily as the store located where
only 1000 pass each a ay. Property
values increase y. trade gains and as
sessment valuations rise and the UNI
changed tax rate yields larger
amounts ~ * III 34 Il r 4 4 ;ts: Il. ssEz
This applies equally to the metrop-
oils and it's great department stores
and mills and factories and to the:
crossroads community with its gen
eral store and 5blac ksmith 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:
VEL z ~ ~ >..&.- -
Bond Features Explained.
City property. becomes; more evalu-
able as it is made more accessible,
and farms are worth more when
reached by good roadside farmers
railroads. X;
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 tax payers. Twelve Wisconsin
counties last year issued more than
$5Q,0OG,000 of bonds to build roads and
many states are bonding for road i'm
provements.
Amendment No. provides that road
bonds up to $10,000,000 year may be
issued in the discretion of the legis-
lature, but that not more than $751;
100000 shall be outstanding at any
one time. Also, it provides that all
bonds must be sold at par or a premi-
UNI and that per cent shall be the
maximum interest rate: The latter
limitationG are the same as those
which prevent the sale of Minnesota
soldiers bonus bonds. So the bond
section of Amendment No. 1 now is
virtually of no effect.
When per cent bonds were being
sold, however, unexpected increases in
the numbers of motor vehicle licenses
caused officials to announce that the
license revenue will be ample to
finance the state highway system and
that i'm 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 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.
Advocates of the Amendment No. /
plan hold that the bond clause may
prove great advantage. For exam
pie, 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 slacken, bond money
might mean work for many 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.
Minnesota's motor vehicle license
fees now are lower than those of any
other state. Automobile owners of the
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