The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-02-13
ROAD
OFFICIALS PUT
IN BAD Week
Probe Disclosures Help Bill
for Complete Change of
Highway Setup.
FAILS TO GET MILLIONS
Money Borrowed by Com
mission While Federal
Funds Were Unclaimed.

Every member of this committee
must agree that we have proved the
point, in the resolution asking in.
vestigation, that the Indiana state
highway commission did fail to
collect several millions in federal aid
while it borrowed money and went
into debt to complete their 1880
program"
This summing up Of activities of
the senate highway Investigating
committee was made today by SEN
ator Anderson Ketchum Dem., Bar
tholomew, Decatur, Franklin and
Uniom, who was in charge Of the
questioning of highway commits
sioners, division heads and Director
John J. Brown.
The inquisition closed Thursday
afternoon with Commissioner Jess
Murden on the stand.
Ketchum drew from Murden the
admission that the 1881 program
must be speeded up more than any
construction in department history
if the piled up federal aid is to be
collected. At present arrangements
have been made to collect but
$1,900,000 of the $1,000, 900 available.
Murden testified.
Strey Leads Fight
Senator Charles L. Strey (Rep.,
Kosciusko and Wabash is author
of the resolution asking the in
into failure to collect
federal aid and was made chairman
Of the investigation committe by
Lieutenant Governor Edgar D.
Bush.
Senator Strey is author of the
resolution asking the investigation
into failure to collect federal aid
and was made chairman Of the in
vestigation committee by Lieutenant
Edgar D. Bush.
Points regarded proven by the
testimony are as follows:
l. That the commission completed
enough mileage on the federal aid
system in 1880 to collect nearly all
federal aid, but permitted
more than 100000 to pile up by
the close of the fiscal year, Oct. /,
1890.
2. Although the biggest con-
struction program in the history of
the department was completed last
year, less federal aid was collected
than any time since 1928.
3. That one Of the reasons why
federal aid could not be collected
was that although the state had
more revenues, due to 1-cent gas
tax increase, funds we're transferred
to 'betterments" upon which federal
aid never has been asked.
Attorney General Ignored
4. "BettermentS" is black top
pavement constructed by the main
tenance division contrary to an
opinion from Attorney General
James M. Ogden which says all
construction must be under the con-
struction division.
5. The commission borrowed
$1,600,000 from the cities, counties
and towns share of the gas tax and
did not pay per cent interest as
ordered in another opinion from
Ogden.
6. In addition to borrowing the
gas tax the commission issued $780,
900 worth of certificates of indebted
ness, although the Constitution for
bids the state to go into debt, and
contracts were let with the agree
ment that payment would not be
made before April, 1881.
7. While the department was
broke and in debt, federal aid piled
up at Washington until more than
100000 was available by Jan. l,
1881, 100000 of which is an en-
fund which can be collected
100 per cent. The remaining nor
NAL federal aid must be matched
dollar for dollar by state funds.