Evening star., 1955-07-31
VIRGINIA
More Looms
Seen for
Toll Roads
BY ALEX r. PRESTON

BY ALEX n. PRESTON
Recently the Federal Re-
serve Bank at Richmond,
which services Virginia and
four other States, predicted
an expansion Of toll-road
financing In this section Of
the Nation.
Virginia is about to enter
this field for the first time.
But. because of the conser-
vative pay-as-you-go prin-
ciple written into the State
constitution. Virginia could
assume the obligation of re-
paying only about $50 million
Of about 5000 million esti-
mated as needed for three
turnpikes In widely scattered
areas.
Consequently from " to i
per cent higher interest rates
will be paid than If the faith
and credit Of the State were
pledged behind the bonds.
This already has been DEM
onstrated in the $95 million
bond issue now being used to
construct the Hampton Roads
tunnel and to refinance other
tunnel and bridge projects In
Tidewater Virginia.
I'm North Carolina, road
bonds are included in the gen.
eral obligation debt of that
State. but they are backed by
specific gasoline and motor
vehicle taxes distributed be-
tween State and county
roads," the Federal Reserve
Bank says. "The State Turn
pike Authority is empowered
to construct and operate turn
pike projects, subject to the
approval, as to location, Of the
State Highway ! and Public
| Works Commission. The au-
thority may issue revenue
bonds, and neither the State
nor the authority is obligated
to pay the interest or principal
except from these revenues"
Once an Advantage
Virginia has accomplished
much under its pay-as-you-go
system adopted in 1928. In
the depression years when
other States were plunging in
to debt or letting their high
ways go to pot-as Maryland
once did-the Old Dominion
was the envy of the Nation.
It's highway system was rated
good and 1t was all paid for. :.
But the imminence Of per-
haps three major turnpike
projects in Virginia has
prompted some to explore the
feasibility of the States either
abandoning or modifying its
strict pay-as-you-go policy
at least as far as foil high.
ways are concerned.
It is argued that the savings
in interest charges over 40
years-the usual period Of
f1nancing-might make such q
move worth considering.
The toll highways are un-
dertaken only after extensive
engineering and economic sur
veys to make certain that they
would be financially feasible.
Rapid progress is being
made on planning these three
turnpikes in widely separated
sections Of Virginia:
/. The Old Dominion Turn
pike, stretching for 10 miles
across the Southwest section
to connect with the existing
toll facility in West Virginia
and a proposed superhighway
in North Carolina. Virginia's
portion of this chain would
cost about 500 million.
2. The Richmond-Peters-
burg turnpike. This 35-mile
strip would run from north Of
Richmond to south of Peters
burg, eliminating major bot
tlenecks now existing on the
parallel stretch of U. s. Routes
/ and SOL. The cost would be
about $67.5 million.
3. The Virginia Coastal
Turnpike, which. in co-opera-
ton with a similar toll road
authority in North Carolina,
would provide a superhighway
between two leading seashore
resorts in the two States-vir-
ginia Beach and Nags Head.
Studies Still Pending
It will not be until fall be-
fore studies are complete to
make certain the Old Do
minion Turnpike would be a
financial success. Among fac
tors found are that the link
from West Virginia to the
North Carolina border is over
about IS miles of free roads
with an average travelling
speed of "a miles an hour.
The toll facility would be
70 miles long and designed for
sustained speeds Of so miles
an hour.
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