Daily Kennebec journal., 1924-12-19


OF $1,000, go. Tor the bridge at Bath,
and two against the proposition.
1t was a most interesting confer
ahcs Throughout. The spirit Of CO.
operation prevailed and those in st.
fendance showed a desire to listen
70 all sides OF the various ighway
matters before votes were taken. The
kessfon was presided over by Perley
+. Ripley of South Paris and Paul
D. Sargent. chief engineer OF The
state Highway Commission, acted az
secretary. r. .zsy
Among those fn attendance in ad-
dffion to the members OF the state
Highway Commission were: Cover
rcr-eiect Ralph O. Brewster, VINO
was present as an interested obser-
yer: State Senator II. w. Carleton
Of Wooiwich, Senator Herbert T..
wadsworth of Winthrop. Senator
Uodgdon e.. BuzzelI OF Belfast. Rep
rescntative John w. Leland of
Dover-Foxcroft. Lawrence Putnam
Of Woolwich. Hugh J. Mckinnon OF
Richmond. Hiram r. Fjcker OF Po-
land Springs; William j.. Talbot OF
Eockland, George E. Wilcox OF Ban
gor. .. w. Tapiey of Ellsworth,
Philip +. DecTfng. Chester q. Abbott
ana tJb4ittb W.. JtObB6 Va ~ S'N@'H'f
Frank y. Nichols OF Bath. j. NJ.
Carroll Of Norway. Charles \. Hill
OF Belgrade Lakes, George Webber
of Augusta Secretary Of State Frank
w Ball and Judge Il. G. Smith. de
putty secretary of State, Chairman
&. s.. Stetson of fthe board or As
sessors and State Treasurer w. L.
Bonuey Of Howdoin ham.
Chairman peabody's Statement
Chairman Peabody OF the State
Highway Commission outlined the
points which III the jFIgment OF the
commission should receive the atten-
tlon of tho Legislature. In the first
place, Mr.. Peabody pointed out that
all State highway money so far
available has been obligated for work
that is now In progress and that no
moro state highway. construction can
he undertaken until the Legislature
provides further funds. In response
TO the suggestion of the conference
at its meeting on November q, the
Highway Department has prepared
tables showing present outstandinS
highway bonds, giving the anount or
these bonds that1must be retired each
year and the amount OF interest to he
paid each year. At the end of 1928
Of State highway and bridge bonds.
The last of these Will be retired in
1853, AMI from 1925 to 1853. inclusive.
tho interest on these bonds VIII
an,ount to s7.061 10000.
Three Schemes for Bond Issue
I Tho commission have prepared
three schemes for n $4,000. 10000 issue
ar highway bonds. bonds to he Js-
sued mt the rate OF $1,000, 10000 each
year for six years. one scheme calls
Tor the bonds to be retired serlally IN
Is years. the next scheme for bonds
70 be retired serially In 20 years. and
the third for tho same amount OF
eonds TO be retired scrially I'm %
fears. For $4,000. 100000 TO he retired
eerially during Is years tho interest
charge will he $2.7S0, 10000: during
20 years tho interest charge VIII be
$3.50, 100000: and IL the issue IL re-
tired through 26 years the interest
win he $4.6so, 100000. These interest
Gharges. compared with tho interest
to be paid on the highway bonds now
outstanding, show the very great
advantage and the decided economy
h having short term bond issues,
The Highway commission recon-
fnends tho bond issue to he retired in
j. years.
: Tho commission has also prepared
A table to cover n bond issue OF $2,-
500, 900 90 for bridges. this amount to
be issued MT the rate OF S60o,0O0.0 90
per year for onch OF six years and
the bonds to be retired serially
through 30 years. The cost of this
issue win be S2932, 900 90 '1or inter
est.
, The tables also show. hcst1es the
total cost of the present bonds and
each OF tho schemes for n highway
bond issue and for tho bridge bonds,
the total annual gross cost of the
Qlree bond issues combined, that Is
to say. tho present bonds. the new
Highway bond issue and the new
bridge bond issue. The tables also
show tho estimated revenue from tho
6egistration OF motor vehicles. from
Nhich source the retirement and in
tcrest payments on highway bonds
nrc provided by law. .
sThe commissions estimate OF in
crease In automobile registrations
Calls for gross revenue In 1881. dur
lag which year the interest and re-
thement OF bonds will be the larg-
est under any scheme proposed. $S.-
SOC. 10000. with n surplus after TAX
ing care of bond retirement ari In
terest payments, of $2,o9a, $4,000,
which will he available for mainten-
ance of state and state aid highways
and other charges against the fees.
Mr.. Peabody explained that after
tho commissions estimate of revenue
from automobiles had been made up.
Atty letters were sent to as MANY
business men in the State, asking
g.. (. kah faRdn 81 n ~
the probable percentage increase In
registrations from 1925 20 1881. In
elusive, Thirty-three replies to these
letters were received. The average
incrasc taken from the replies is in
excess OF the comnEsion's estimate
OF revenue. which would indicate
that the commission has exercised
conservative judgment in making up
their figures.
Emergency Financing Needed
81 In view of the fact that there will
he no funds available for state and
Federal aid highway construction
during 1925, uuless some emergency
financing is provided. Mr.. Peabody
stated that the commission Was
strongly in favor OF an increase In
the gasoline tax from one cent; 20
three cents per gallon. with the pro
Vision that gasoline not used for pro-
pclltng motor vehicles on the high
way should he exempt from the tax.
IL this legislation can be passed as
an emergency measure and the tax
can be taken for the whole season OF
1925. Il IS probable that the new
revenues viii provide not far from
ti,sse. .ooo 90. which could he put into
construction work during the sea-
son OF 1925 Il the law Is properly
framed. The commission feel that
such q fund could be usei to advan-
tara eNe~y xNar herea ar I'm re .