Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-07

problem Is that of finance, and that Is
particularly true Of the Latin American
countries which are planning great
highway systems which will be linked
to the magnificent roadways OF the
United States and Canada to form a
vast network Of smooth paving for the
motor traveller the length and breadth
of the Western hemisphere.
The countries to the south of us pre-
sent problems of no small magnitude
In terrain and climate, but these are
matters that in most instances the
highway engineers have already sur
mounted and the countries are now
awaiting only the necessary money to
push to completion the ambitious high
way projects which will be given thor
ough discussion at the second Pam
American Highways Congress, to be held
at Rio de Janeiro August Is to 81, this
year.
This principal problem of finance will
be taken up, with the American experts
Of. highway construction and finance
playing Leading role in advisory and
technical capacities.
Problem Facing the Congress.
One of the principal aims of the con-
gress will be to develop a more uniform
and fundamental plan of highway
financing for the many countries, small
and large, which constitute the Cen
trail American Peninsula and the South
American Continent. Something adapt
able to all of the countries involved is
needed, they all agree, and that will be
sought by the foremost highway author
tiles Of two continents
The present course of funds for roads
in Mexico and South America range
from q head tax that may be paid in
cash or worked out in individual labor
on the roads, a practice once common
in the United States but now obsolete,
to the gasoline tax, that Is known in
the United States to the tune of 2,
3, 4. 5 and even cents q gallon. These
sources Of bodybuilding revenue in
clude taxes on agricultural products,
alton, liquor taxes, premiums on ex-
change. registration of mineral claims,
local and foreign bond issues and for
eign loans and many other forms Of
revenue.
Mexico Expends $4,000, zoe.
During the six-year period ending in
1884, Mexico will have spent approx
mately $4,000 900 on new improved
road systems, under the present high
way plan. In Mexico the funds for
highway building come only from spe-
cial forms of assessments, none of the
general taxation going into the smooth
surfaces over which automobiles will
travel BY presidential decree the 8
centavos q liter tax on first sale Of
gasoline. was established in 1925 and
this year was raised TO 4 centavos q
liter. During the first ten months Of
1928, the government collected 5,4S8,-
$50 pesos in gasoline taxes. Figures are
not available on the tobacco tax which
also is used for road building and main
tenance, except for the year 1925, when
that tax wa set aside for road build
ing In 1925 the government collected
6,087,778 pesos. At first glance it would
seem that there is much with which the
Mexican Highway Commission can
work toward better roads for that
country. but the money is not collected
by the commission, but rather goes into
the Federal Treasury. The President
then decides what should go toward
road building. Due to military needs,
very little of this money Is going into
roads at the present time. In some In
stances the Surcharge assessed by the
federal government on all import
duties is also used for roads and. of
course. fines and license fees collected
by either municipal or State govern
ments are supposed to 60 into road
building and maintenance.
Stumbling Blocks in Guatemala.
The bugaboo of insufficient funds,
AUGMENTED by lack of a definite high
way program and competent engineers
are proving the stumbling blocks in the
development of the road system OF
Guatemala. There is really no adequate
system for raising funds for road work
in that country, although every adult
male In the Republic is assessed road
tax, The poorer classes pay 8:
cents a year, while the richer foil
are assessed s1.66 q year. The money
thus collected constitutes only {
small portion of that spent for roads In
the republic, and for the greater part
the money is appropriated directly from
the republics general revenue funds FOL
highway projects. The money collected
in vehicle fees is not directly applied u
road building by law, nor has the coun-
try ever attempted foreign loan OF
bond issue for roads.
Honduras Has Big Program.
For 192e-30 Honduras expects TO spenc
S450, 900 for highway construction anC
1t is reported that the President of TIT
republic intends to present TO the Con-
gress this year a proposal FOR appro'
priation of 81 ,oo0, 900 annually for roads
Little seems TO have been done about
roads in that country. There is an In
tricate road financing system in force
which has proved a backset to severa
road-fnancing schemes by foreign con
tractors.
In 1925 Salvador started S12 ,0oo, 00C
| road program, embracing a system o.
SEQ miles of improved highways and thu
money for this project Is beng derived
from federal and departmental fundi
taken from the general revenue; specia
taxes for the promotion of highway con
struction, with graduated assessment
on all residents of the country hxed &C.
cording to their liquid capital, salary OF
income; state and local bond issues.
In Nicaragua about $4,000 annually
is being spent on roads.
Costa Rica Proposes Bond Issue.
Costa Rica this year started a roac
program to cost So, 250, 900, to be financed
by a recently authorized bond issue
Liquor, sugar, gasoline imports, vehicle