The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1925-04-02
Most Counties In the State
Gain By Reimbursement
Average County on List of Eighty
Three Pays In Less Than Road
Bond Issue

, StearnS county Will pay only 9AoA,-
1900 of motor vehicle taxes into
the state trunk highway fund toward
paving off at maturity the outstand-
ing highway reimbursement bonds, OF
which S348,7O0.00 were issued by
and expended in this county.
Under the same laws, Hennepln,
Itasca, Ramsey and st. Louis coun-
ties issued an average of $2,967, l49
but will pay in an average OF $5,-
576,O7O each in motor vehicle taxes
toward the total for redeeming the
bonds. A general tax levy for the
purpose would compel the same four
counties to pay an average OF 30
867,565 or an extra $29l,495 eacn.
Official figures yielding this addl-
tional evidence that the highway
program favors the smaller and less
wealthy counties and particularly the
farming sections are given in a high
way bulletin this week as quoted by
good roads leaders in the senate to
show that the pending bond refund
ment plan works out to the SAINT;
effect.
Figures for the SO remaining coun-
ties of the state show averages OF
S261,846 of bonds issued, about
S232,5OO of motor vehicle taxes to
pay toward the liquidation fund, OF
only $218,452 for the payment OF the
principal if with general state tax
levy. The figures were quoted to ex-
plode the contention that conversion
of the county bonds into state issues
would favor the larger, wealthler
counties. However, it was insisted
that the prospect of a state tax to
retire the bonds is extremely remote.
A substitute financing plan for that
of the highway department recently
was presented by group of senators
who insisted that it would provide for
all bond maturities, interest and sink
ing funds, without refundments, al
so maintenance and leave $7,350,OOO
a year for construction or improve
ments during 1925 and 1926. The
department plan, with refundments,
would yield only about $5,OOO,OO0
annually for construction, or less than
half the average amount available IN
past years. Commissioner c.. M.
Babcock announced that the proposal
if worked out as represented would
be more than satisfactory, but asked
a positive guarantee in legislation as
a condition to its approval.
Then close comparisons brought
out differences between the two plans.
The substitute proposal placed motor
vehicle tax collections at 100000
a year, although bills introduced by
some of it's sponsors would greatly
reduce this income. 1t placed the
gasoline tax revenue at full $4,000
900 year, when some pending bills
would afford no gas tax revenue this
year and prospects of test litigation
may prevent actual use of such money
on the roads even next year. 1t en-
tirely omitted $150,000 year al
lowed by law for administration ex-
penses of the department. 1t put
only 81, 235, 900 a year in the sinking
fund reserve, against $2,000,000 to
$2,250,000 listed by the department
at the direction of the state public
examiner. Finally, it ignored the
government requirement that federal
aid be matched dollar for dollar with
state construction funds. The result
of the miscalculations and omissions
was the $7,35O,000 annual construc-
ton total.
When corrected, the tabulation
showed $2,200,000 year for con-
struction all told-$1, 100000 of fed.
eral aid allowance unmatched
the exact total shown on departments
figures without adoption of the re
funding plan