Worcester Democrat and the ledger-enterprise. (Pocomoke City, Md.) 1921-1953, 1940-10-11
The Triple-A
Will Discuss
Road Finances

The overhauling of the road finances
of the states and the adoption of ur-
gently-needed reforms will be prin-
cipal topic of discussion at the 38th
annual convention of the American
Automobile Association, to be held in
Washington, D. c., November IA and
Is.
Predicting a record-breaking at
tendance of motor club delegates from
every section of the country, Thos.
p. Henry of Detroit, Michigan, Presl-
dent of the national motoring body,
declared that the convention would
feature sound programs for defense
purposes and civilian use as well.
"The time has come," said Mr..
Henry. 'sto bring fiscal order out of
the chaos that now prevails in the
important domain of highway finan-
cing."
While stressing the Importance OF
adequate highways as an integral
part of the nations defense scheme,
the A. A. A. President warned against
current efforts to use the defense
emergency to get the country COM
mitted to road programs that are not
justified and would place an undue
strain on the national economy, Mr..
Henry said in part:
eve can depend on the properly
designated authorities to tell us what
road improvements must be under
taken. We must not let ourselves be
led off the track by the tom-tom of
the expansionists who have no re-
sponsibility for the ultimate footing
of the bills.
"It is relatively easy to find out
what programs must be undertaken.
The difficulty comes when we look for
ways and means to carry these pro-
grams out. One main reason for this
difficulty is the thoroughly reprehen-
sible abuses that have crept into the
fiscal structures on which, in the
final analysis, sound continuing road
programs must depend. 1t is long,
sad story, but this is a good time to
put finis to it.
"For years the motor vehicle own
ers and operators of the country have
been assuming more and more OF the
road bill. In round figures, they are
now paying to the states at the rate
of a billion and a quarter dollars a
year for highways. Where does 1t
go? A lot of it has gone with the
wind! In 1888, for instance, more than
S15O,OOO,OOO was diverted by the states
and not square foot of pavement
or one culvert to show for it!
GIN the same year the states gave
S273,OOO,OO0 to local units of gov
eminent, that is, counties and munich
palities. A substantial portion of this
was also sidetracked from roads and
streets. And why? Simply because
only a handful of states have any
control of the expenditures of these
contributions to localities. One urg-
ently-needed reform is compulsory
audit by the state authorities of all
monies given to local governments.
Why, even in those eight states that
have adopted constitutional amend
ments to prevent diversion, there is
no assurance against local diversion,
unless there is an audit and control
by the state.
"While the motorist have been pay
ing more and more of the cost OF
highway construction and maintenance
and getting proportionately less and
less, other beneficiaries have been
gradually divesting themselves of re-
sponsibility. State property taxes, for
instance have virtually ceased to con-
tribute to state highways. This itself
is not so bad. What is bad is the
fact that at the same time property
tax support for purely local roads
and for city streets has shown a
startling downward trend. Clearly the
time has come to determine what part
of the road budget is chargeable to
property taxes.
"The indictment could go much
further, but believe enough has been
said to justify our contention that
reforms are in order"
EATT. TNCPECTTON OF