The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1923-03-16
Totals, --$12,463,OOO $13,463,OOO


Totals, 12,463, 900 $13,463,0 900
Offering advantages briefly re-
flected in the above figures, pro-
posals for first issues of state trunk
highway bonds have been formally
recommended by Charles NJ Bah
cock, state highway commissioner
to the legislature. Prompt intro
duction of bills in the house and
senate is expected to follow.
''The proposition is concisely pre-
sented in the summary" said Mr..
Babcock "The> state can go on, as
now, setting aside in the sinking
fund enough to pay country re-
fundments and reimbursement bonds
and interest, using excessive sums
for endless repairs and the remain
ing funds for betterments. But /
believe the members of the legislat-
ure will see where the funds can
be better used by putting more in
to lasting improvements, reducing
the maintenance expenses and in
creasing the sinking fund. allow
ances-the latter meaning provision
for bonds and interest necessary to
afford temporary working capital. :"
L TIC COIlllulSSlOicI ShpldlhCu IhdC
tables of alternate uses are based
on the same annual income, and the
total on the last column is $1,000
900 larger, only because h t
amount is added both in the sink
ing fund and improvements items
in each of the 20 years covered,
representing the proposed $20,000,-
600 of bonds.
Recommendation for bonds. the
commissioner indicated, carry to
the legislature the responsibility for
financing the state highway pro-
gram for the next two years and
longer. The same funds under the
bond plan, he emphasized, will give
highway users more good roads year
for year and especially in the next
five years than can be afforded
without issuing bonds.
The statement accompanying the
bond recommendation gives all fig
ures in detail, together with other
information relating to highway de-
velopment.
'The figures show how possible
savings on maintenance can be
turned into permanent improve
ments-how earnings of the i'm
provements through reduction of up
keep expenses will pay out under
the bond plan," continued the COM
missioner. "But there are other
savings far bigger than the earn
ings.
"Greatest returns will be those to
highway users, including the auto
mobile owners who will pay all
direct taxes going into the fund.
"At present auto tax rates, Min
nesota will have an average of $12,-
100000 year to use on the trunk
highways. The bond plan will give
the use of good roads which easily
will save car owners an average of
$23,750,000 year-much more
than will be possible otherwise. 1t
will divert money from constant re-
pairs to lasting improvements with
the result that at the end of the
twenty years the highway system
will be worth $98,154,000. while
without bonds the total will be only
$4,000, 900"
The foregoing statements, it was
explained, are based on a conserva-
tive premise that with bonds, the
highway betterments will cut one
tenth or 1-cent a mile off the cost
Of operating motor vehicles. Fur
Their, that the number of cars will
average 467,500 during the period
and each will be driven an average
of 5000 miles a year. Thus the
savings would average $23,750,000
year, against $12,463. 900 used
on the trunk system. All proposed
bond funds and 40 per cent of
each years disbursements going in
to permanent improvements, the
cumulative value of betterments will
be $98,154,000 under the bond
plan, against $92,604,000 without
! bonds, and all from the same aver
age outlay.