Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1931-04-30
REFERENDUM IS MEETS
WITH GENERAL FAVOR
People Regard Measure "a Good In.
vestment to Assure Gas
Tax Benefits.

On May s, the voters of Montana
will 20 to the polls to determine
whether the state will be allowed to
issue 81, SOC, 900 per year for the next
four years and in so doing save ap-
proximately $7,500,000 Of federal
money for highway construction pur-
poses.
Reports from all parts Of the state
Indicate that the measure known as
Referendum IS is meeting 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
farmers have been almost entirely
dispelled by the statements and As
from Governor Erickson, At
torney General Foot, the leaders and
members Of the 22nd Legislative As
sembly who voted more than ten to
one in favor Of the measure, the State
Board of Equalization, the State
Highway Commission, and other au-
thoritative sources.
The people of the state realize that
the state legislature could have in
creased the gasoline tax or abolished
the refund through its own action,
making a vote Of the people unneces-
sary 1t was because these %alterna-
tives were not desired and utterly I'M
thinkable that it was necessary to
submit Referendum IS to a vote Of the
people.
Reports from counties Of the state
Indicate that the people understand
the measure and realize the import
ance of its passage to the state. p
The favorable sentiment is based
on the fact that the federal-state
highway building program is of i'm
mense benefit to the state, that it has
saved the general taxpayers millions
Of dollars for highway construction,
and that Referendum 35 provides an
opportunity for still further benefits
and savings.
Under the Federal State highway
program, also known as the sever
per cen system, nearly 5000 miles of
main highways providing main roads
through the state and connecting all
county seats are designated as feder-
al aid highways. For building these
highways the federal government puts
up Sc cents Of every dollar spent; the
state supplies the other a. cents.
To insure the states ID per cent,
the people in 1926 by an $4,000 major
ity voted for a three-cent tax on gas
cline. Because this did not raise
enough money to match federal funds
the rate was increased to five cents
by the state legislature in 1929. In
1881 the legislature extended the op-
GRAFTON Of the five-cent tax to l941.
The last session of congress in
creased appropriations for highway
purposes, raising Montana's share
from 1900, 900 to $4,000, 900 and also
provided some emergency money,
Since government funds can be used
only for construction, a portion Of the
five-cent gasoline tax revenues Of the
state must be used for maintenance
and ether purposes. Montana last year
collected nearly $4,000, 900 in gasoline
taxes, refunded about $1,000, 900
largely for agricultural purposes,
used more than 81, 300, 900 for main
tenance and other purposes and had
enough left to match the 81, 800, 900 of
government money for new construc-
ton. With the increase in federal ap-
preparation, this means that Montana
must lose about $1,000, 900 a year of
government money as we'll as the
emergency appropriations unless
are provided to match the ad-
ditional federal money, which will
amount to about $500, 900 in the
coming four years.
Therefore, the people will vote on
Referendum IS which will permit the
state to issue warrants against future
gasoline tax collections.
The approval Of the will
provide enough additional money
for the coming four-year period to
complete Montana's ~5,0OO-mile main
highway system. Payments on the
warrants start in 1884 at the rate Of
$858,000 per year. The final payment
Of 1852, 900 will be made in 1910. The
money to pay the interest and prin-
cipal on the warrants will come from
gasoline tax collections in the years
that the payments are made.
Relief Of unemployment, increase in
tourist travel, removing several hun
dred thousand dollars Of expense an
nually from counties for upkeep of
unfinished parts Of the fsderal-state
system, permitting Improvement Of
more county roads, are among the
rAasOna that maka R~nfernpAu~ OK