Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1924-02-11
Highway Financing

sibly any other state IN the
Union.
The North States highway
plans were perfected in 1927
and her efficient methods have
since attracted the notice of ev-
cry bodybuilding state.
Today North Carolina is link
ing every courthouse in the state
with paved roadways and be
cause of her progress is receiv.
ing favorable advertising from
one end of the country to The
other.
For the benefit. of our read
ers we quote in full a most il
Illuminating editorial from tht
Charlotte N.C.) Observer, ex
planning the plan of financing the
states system of permanent
highways. This plan shoulc
prove of interest to Georgian'
and is as follows:
North Cardinals plan for
financing and maintaining its
system of highways is panning
out much better than its most ar
dent advocates might have an
ticipated at the beginning, in
1921. The developed facts are
instructive, as we'll as interest
ing, We are going to give the
main points, not only for the in
formation of our own people,
but for the guidance of people
and legislatures of other states
having the North Carolina plan
under consideration. The more
we learn about the system and
the manner in which it is operat-
ing, the better we think of it. The
highway budget for the fiscal
year commencing July and end
ing with June 80, 1924, involves
q sinking fund from automobile
and gasoline taxes of $250,000.
The interest requirements are
81 100000, assuming that the
whole of the $5O,000,O00 bond
issue has been used which is not
the case. The sum of $25O,000
set aside for overhead expenses;
$8jo00,000 is applied to the
maintenance fund, making total
of $5,750,00a.
The approximate revenues for
the year will be $7,750,000,
which will leave unappropriated q
balance of 100000, which
may be kept, in the discretion of
the highway commission, for ex-
traordinary emergencies and to
be converted into the sinking
fund after the end of the fiscal
year
1.-The sinking fund of 100000,
derived, one-half from the auto
mobile and gasoline tax, and one
half from the general fund, will,
according to the calculation
made by the department of COM
illerce at the university, retire
the $50,000,000 of bonds in less
than 40 years.
We say it was intended to set
UP such a fund as would retire
them in 40 years, because it was
thought by the highway denart-
llaent and consulting engineers
that an appropriation of $500
per mile per year would keep a
hard-surface road in condition,
qfrtainly for 40 years, and prob
ably indefinitely. From the bud
get, mentioned, the reader will
see that there has been set aside
fqr maintenance, approximately
$500 per mile for practically eV-
cry mile of the state highway.
The same authority has figured
that the 100000 per year will
retire the whole $50, 100000 au-
thorized by the legislature in
4z,83 years.
l The legislature, however, did
not contemplate starting the
sinking fund for the SIS, 1000 900
authorized in 1923, because it
was not expected that any part
OF this authorization would be
actually spent, although contracts
might be left for it before the
1925 session of the legislature.
The highway bonds heretofore
issued are serial bonds, commenc-
ing to mature 10 years from the
date of issue. Nobody in the
legislature of 1921 expected that
we would be able to pay for these
bonds when due, but that thew
would be renewed. Taking the
surplus of 100000 from this
years emergencies, we should
have handsome sum left to put
into the sinking fund, and if
business. conditions continue as
good as at present, each year
? should show an increasing amount
available for sinking fund pur-
poses, so that we shall be able
to pay good many of these Sc
rial bonds as they mature.
1t seems to US that no PROPOSE
ton could be better financed than
the road program. There were
many who in 1921 felt that, in
the prospective conditions as
they appeared at that time, we
could not finance a large bond
issue. But they were wrong.
The automobile and gasoline tax
is not only paying every charge
that should be brought against
that account and taking care of