Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-05-21

Possibility that a new series Of
highway debentures, to be paid
back after current debentures are
retired, might be issued to assist
the state In matching federal funds
for highway construction during
the next three years, was the sug-
geStiOn most favOTably considered"
/ at a meeting of the state committee
on highway financing headed by
Harry ]. Kelly of KalispeI.
The committee met in Gov. Roy E.
Ayers reception room at the state
capital and elected L. j. Onstad of
Broadus chairman and George Shepard
of MisSoula, secretary.
Chairman OnStad said the suggestion
that new series of debentures be
issued seemed to be the most favor
ably considered proposal to be placed
before the committee"
The plan would be inauglrated by
an initiative proceeding at the general
election this coming November, he said,
and the first repayments would not
be made until 1912 or 1913.
The states present outstanding de-
bentures are to be paid back by Deem
Der, 1941
Issuance Of the new debentures
would bring new money to the high
way department and really would be q
form Of promiSSory note, providing for
1nstallment repayment to the plr-
chaSers of the debentureS," Chairman
Onstad said
He added the legality of the plan
had been said to be entirely proper.
The new debentures, he stated, would
be paid back out of the states gasoline
tax, which would be reduced from five
cents gallon to three cents a gallon
at the end of 1941. The three cents-a-
gallon tax would BE ample" to pay for
the additional debentureS, he said.
ANY increase in the present gasoline
tax lis absolutely out" Chairman On
stad said. He explained Montana al
ready has been criticized for having
hlgh-priced gasoline and any addition
al tax would lose thousands of dollars
OF tourist money to this state each
year
The chairman said it also was sue-
geSted that the matter of gasoline
freight rates might be investigated.
Some committee members appeared
70 FAVOR the establishment Of a ton
mile tax and passenger mile tax on
freight and passenger service in the
state, but the group as a whole felt
institution of such taxes would be
matters for consideration by the state
4ANC ACbC4AII1C H1du calls lOI an mi
Clatiye to be voted on at the general
election in November under authority
OF which up to 100000 in gasoline
tax anticipation debentures could be
issued. Federal aid credited to Mon
lana must be matched or 1t will be lost.
1t was recommended to launch an
immediate campaign to obtain the
necessary signatures for the initiative
oeCiClons, which, 1t Is said, must be filed
WIN the secretary of state by July 7.
Inc committee recommended an
other initiative through which $780,
lOO year OF income from liquor would
De diverted during the next biennium |
Dads.
Onstad named a committee consist I
ng OF Sen. Fred Robinson of Malta. 1
jeorge r. Shepard of Missoula and ;
". r. Church of Helena as q commit
ee 10 supervise the circulating of pe- !
ltions for the two initiatives. sigma I
ures OF 8 percent of the registered I
'oCers In at least two-fifths of the
ountles is required before an initiative ,
measure can be put on the ballot. It is :
AID about 1900 signatures will be !
equired.
The larger group, known as the COM
nlttee OF 81, met several weeks AGO.
Is 8 result Of this session Chairman
Helly appointed the committee of 10.
ne smaller group decided to submit
s recommendations by mail to the
membership Of the larger unit. If the
are approved the
anpalgn for signatures will bel
Lunched Immediately.