The Carbon County news. [volume] (Red Lodge, Mont.) 1924-1931, 1931-04-30
REFERENDUM IS MEETS|
WITH GENERAL FAVOR
People Regard Measure ~ Good
Investment to Assure Gas
Tax Benefits.

On May 5, the voters OF Montana
will go to the polls to determine
whether the state will be allowed to
issue $1,500,000 per year for the
next four years and in 50 DONG
save approximately $7,5OO,OOo OF
federal money for highway con-
struction purposes.
Reports from all parts OF the
state indicate that the measure
known as Referendum 35 is meet
ing with much favor. Doubts which
at first existed on the part OF some
as to whether the measure would
affect the states five-cent gasoline
TAX or the refund to the farmers
nave been almost entirely dlspelled
by the statements and assurances
from Governor Erickson, Attorney
General Foot, the leaders and
members of the 22nd Legislative
Assembly who voted more than
ten to one in favor of the measure,
the State Board of Equalization,
the State Highway Commission,
and other authoritative sources.
The people of the state realize
chat the state legislature could
have increased the gasoline tax or
abolished the refund through Its
own action, making vote OF the
people unnecessary. 1t was because
these alternatives were not desired
and utterly unthinkable that 1t was
necessary to submit Referendum
| 35 to vote of the people.
Reports from counties of the
state indicate that the people I'M
derstand the measure and realize
the Importance of its passage to
| the state.
The favorable sentiment is based
on the fact that the federal-state
highway building program IS Of
immense benefit to the state, that
it has saved the general taxpayers
millions of dollars for highway
construction, and that Referendum
So provides an opportunity for still
further benefits and savings.
Under the Federal-State highway
program, also known as the 7 per
cent system, nearly 5000 miles of
main highways providing main
roads through the state and con-
Meeting all county seats are de-
signated as federal aid highways.
For building these highways the
federal government puts up Sc
cents of every dollar spent; the
state supplies the other Al cents.
To insure the states A per cent,
the people in 1926, by an 10000
majority, voted for three-cent tax
on gasoline. Because this did not
raise enough money to match fed
eraI funds the rate was increased
to five cents by the state legisla-
ture in 1929. In 1881 the legisla-
ture extended the operation of the
f1ye-cent tax to l94I.
The last session of congress in
creased the appropriations for
highway purposes, raising Mon
tana's share from 81, 100000 to 3d.
100000 and also provided some
emergency money. Since govern.
ment funds can be used only fol-
construction, portion of the five
cent gasoline tax revenues of the
state must be used for maintenance
and other purposes. Montana las
year collected nearly $4,000,000 If
gasoline taxes, refunded about ST.,
100000 largely for agricultural
purposes, used more than $780,,
900 for maintenance and other pur.
: poses and had enough left to mattel
the $1,500,0O0 of government
money for new construction. Will
the increase in federal appropria
tion, this means that Montans
must lose about $1,000,000 yea
of government money as well a
the emergency appropriations I'm
less means are provided to mattel
the additional federal money, whicl
e will amount to about $7,5O0,0OO il
S the coming four years.
G Therefore, the people will vot
on Referendum 35 which will per
NIT the state to issue warrant
: against future tax collections.
,The approval of the measur
!. will provide enough additions
money for the coming four
year period to complete Mon
r tana's 5,000-mile main highwa
system. Payments on the warrant
start in 1884 at the rate of 1858,
n 900 per year. The final paymen
! Of $852,000 will be made in 194(
5 The money to pay the interest an
:. principal on the warrants will com
from gasoline tax collections i
! the years that the payments ar
4 made.
: Relief of unemployment, increas
; in tourist travel, removing severe
hundred thousand dollars of e,
e pense annually from counties fc
?. upkeep of unfinished parts of tn
federal state system, permittin
Improvement of more county road
y are among the reasons that max
u Referendum IS generally favore,