The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1929-01-11
UNIFORM GAS TAX
URGED BY BAbCOCK
SAVE MONEY BY BONDING, HIGH
WAY COMMISSIONERS RECON-
MENDS IN BIENNIAL REPORT
TO GOVERNOR CHRISTIANSON.

An increase in the gas tax and a
$20,0O0,0OO bond issue are recommend
ed by G. M Babcock, commissioner
of highways, in his biennial report to
Governor Theodore Christensen. No
fixed rate for the gas tax is named
Mr.. Babcock simply recommending
that 1t conform to other states" and
adding that -four cent gas tax will
merely give the trunk highway fund
the equivalent of two and two-thirdS
cents, yielding that fund approx
mately the same amount in 1929 as the
two cent tax yielded in 1928, and an
increased amount in future years.
This increase would not make posi-
BILE any large amount of paving or
other new construction, but it would
prevent curtailment of the program
Whatever tax rate is agreed upon"
he continues, I'VE can get greater re-
suits with the same money by issuing
bonds than by using only current in
come for construction. With the in
come from $20,000,000 bond issue and
some current income the gas tax and
federal aid, we could pave 1000 miles
of the most heavily travelled routes
I am confident that by so doing we
could effect a saving of at least ST.
100000 year in our maintenance bill
If the bonds were issued for a fifteen
year period, either serially or on the
sinking fund plan, the net interest
would be $6,140,000. The difference
between the interest payments and
the saving in maintenance would be
$8,860,000 in Is years.
This saving would be well worth
while If the matter were considered
from the standpoint of highway
finances alone. But the saving in
road maintenance is a small item COM
pared to the savings to road users.
Careful estimates of the savings in
gasoline consumption, tire wear and
repairs show that our pavementS pay
for themselves in less than three
years. But a still greater advantage
is that they are disable every day of
the year, while many of the unpaved
routes with heavy traffic are out of
commission during prolonged rainy
periods, sometimes for several weeks
during the spring breakup. The loss
to farmers, merchants and other in
dustries through impossible roads
cannot be estimated"
MIR. Babcock points out that sinking
fund and interest needs have first
claim on motor vehicle revenues, and
since the amount needed to finance a
$20,000,000 bond issue would be less
than one fifth of the annual license
receipts, there would not be the
slightest danger that a bond issue
would affect general taxation.
Neither is there any danger that
we will be handing down heavy debt
for future generations to pay" he
adds. IF the bonds are issued for
fifteen years, they will be paid before
a child born today can legally drive
motor vehicle. Instead of passing
on debt to the next generation, we
will be giving our children perman-
ent system of highways, debt free, and
good for many decades of service.
Since nearly every county in the
state, including st. Louis, issued some
bonds for work on roads which are
now part of the trunk highway system,
statement from the Highway depart
ment showing the status of the reim-
bursement bonds may be of interest