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Show MESSAGE FROM' GOV. MABEY URGING BONDS FOR ROAD BUILDING " i 1 1 1 Indebtedness of Road Budding of Last Administration to Be Paid Out Of New Road Bonds, Says Governor. SALT, LAKE. Feb. lB.Authorl-satlon lB.Authorl-satlon of a $1,600,000 bond Issue to moot tho state's liability to complnto roads now under construction and the repeal of the $1,000,000 bond Issue Is-sue authorised by the Thirteenth legislature leg-islature for soldier settlement purposes, pur-poses, la urged by Governor Charles It, Mabey In a special message sent to the legislature this afternoon. Tho new bond issue Is urged to meot tt Indebtedness Incurred by the last id-mlnlstrntlon id-mlnlstrntlon In constructing and on trading for roads without having fis necessary revenue. Of tho $1,600,000 Issuo $1,000,00!) Is to bo used In payment of thj state's portion of road contracts already al-ready lot and for further raalnhn-anco raalnhn-anco and construction of roads. Tlio other $600,000 Is to bo applied against the general fund deficit X $984,9117.65, according to tho governors' gov-ernors' message The message reads as ollorrs: "I respectfully call your attention to tho financial statement In tho executive ex-ecutive budget as transmitted to your honorablo body January 30, 1921, which Indicated that tho stato gen eral fund will bo confronted with a deficit on April 1, 1921, the begin-, nlng of tho period covered by tho budget of $984,967.05. "It has slnco been brought to my attention In a report of an Invostl- gating commlttco appointed by mo, that, In addllon to thin deficit against tho general fund, thero Is a liability totaling $844,997.25, resulting from contracts entered Into by tho previous pre-vious administration for construction and mnlntonnnco of roads. "Whllo this liability of $844,997.26 Is not a direct one ngalnBt tho general gen-eral fund of tho stato, this amount must nevertheless bo mado available If the state la to avoid repudiation of contracts entered Into for road construction con-struction purpose. "You will observe that the appropriation appro-priation asked for In the budget for maintenance of state government for the ensuing blennlum total $8,638,-050.20. $8,638,-050.20. Unfortunately, It Is Incumbent Incum-bent uaon us to provide, In nddltlOv to this, tho sum of $806,930.96 to meot deficits incurred during th. 1919-1920 blennlum. Tho two amounts am-ounts mentioned total $4,345,061.1 which sum exceeds tho estimated rov-cnuo rov-cnuo for tho next blennlum by $403,-027.85 $403,-027.85 "It is evident, therefore, that by practicing tho most povero and Btrl'e economy it will bo Impos&Iblo to meet tho obligations out of tho general fund and in addition meet tho regular regu-lar expenses of tho stato government during tho ensuing blennlum. "Although I am earnestly opposed to tho croatlon of any now bond Is-buo, Is-buo, I find no other relief from tho existing situation other than to Issue bonds for ono nnd a half millions of dollars. Tho disposition of the proceeds pro-ceeds of this bond Issuo I would re spectfully propose bo mado as follows: fol-lows: "One million dollars to bo used in payment of tho state's proportion of road contracts already agreed to and for further maintenance and construction, con-struction, for which purposo thero aro no funds provided. "Fio hundred thousand dollars to eb applied ngalnst tho goneral fund deficit of $084,967 65. "Tho total Issued bondod Indebtedness Indebted-ness at this tlmo Is $8,410,000 and thero are sinking funds on hand for redemption of these, bonds In the amount am-ount of $56Q,000, which would leave net bonded Indebtedness of $7,360,-000. $7,360,-000. It will bo Incumbent on the stato to leavo a borrowing margin of approximately $1,000,000 for temporary tem-porary loan purposes, which would bring tho total Indebtedness to $8,-860,000. $8,-860,000. "Our constitutional limit of Indebtedness In-debtedness of ono and ono halt per cent on a valuation of $700,000,000 Is $10,600,000, which atlll leaves a margin of $1,640,000 for which bonds can bo lognlly Issued. "Tho thirteenth legislature authorized author-ized tho Issuing ot $1,000,000 in hnnrtn for tho soldier settlement pur poses but tho said bonda have not been Issued for the reason that tho federal government has not enacted tho necessary measures providing for cooperation with tho stato. Tho authorization auth-orization should therefore, bo repealed, repeal-ed, If your honorablo body authorizes author-izes tho issuance of bonds for road purposes. "Itoad building In this stato Is sec ond In Importanco only to education and In order that our progress In thli activity may not bo rotarded I earn cstly recommend tho authorization o this bond Issue." |