Show fiNA FLANGING CING OF BETTER HER ROADS Problem Is Discussed By Chief of Federal Read Bureau By nr THOMAS TT It ALD Chef of V U S Bureau n of wul It-wul Hn Let us u briefly the tho th prin principles 01 o Ot highway In Inthe Inthe the first t place t srn sr- sr n to te mo too that theto are only three sources fi u cs of ef revenue nd and what whatever whacker er money le Is needed must mt come corn from one on or moro more of thorn One Ono Is the tho th road user from whom hom revenue may be b derived t In the form of automobile fees fe or a tax the th second II I prop prop- property erty real erty real or p on personal on on which a direct tax tat tn may my be collected and the third Is Income Inome Then Th n there are aro just two methods method of expending the th money der ed from front those thos sources either by the th you pay PO go planor plan planor planor or the be Ch deferred payment nt plan moans means a bond Issue Now No It seems seem to me m that It ft is I entirely possible by following certain well known principles to finance a pro pro pro- pro pro program gran of highway hl hway im- im improvement Im Improvement provement which will still be b acceptable to till all parties The Th first of ot those these th princles la Is I this That the th total expenditures s In each state tte for or highway purposes 1 shall be bo considered I i a-i the th annual highway budget Wo Ye ar ate a e building state tat road roads And county roade road and local road roads rOade and the money mony to pay pity for Cor all of them themIs themis themIs Is derived finally from the th same people This Thle being the th ease ca unless wo we consider the tho financial needs neds of all 11 classes of roads road In preparing our ay budget We ire are ar sety I el y apt to pile up an expense which It will be b Impossible to meet with WIth- WIthout without without out excessive taxation The like business sty lily Iy to pro pro- proceed proceed pro Is le to recognize at the Ui outs outset t this first principle of successful financing bet tet up a comprehensive budget which Ill it co corer the th murk ork for tor to te t o year tar ear on all classes classe cluse of roads and which hh will still be b adjusted to tho thos people s a ability to pay For the th purpose of securinG of- of ef efficiency all expenditures expenditure on all 1111 Systems systems tem should be b correlated under engineering and economic super super- supervision vision Islon and the th order arder character and extent of tho the nade Inde upon the th bOver l systems should depend upon the th relative r future traffic requirements The attainment ot of these objects Imp lea tos leathe the creation of a n bUdgetary author author- authority authority ity Hy to Ise all high ay elp n In the state ind nd such a at authority should hould In my opinion be created There Ther 1 Is I th this Is fact also th that ne must constantly bear In mind That the expenditure for tor highways I Is only a portion of the th necessary public expenditure We Yo cannot take ta e all tb the Income from public rt and de denote ate It to highways There TheN Aro educational Institutions to bo be b maIntained and there ther are ar other othor public function functions that require money for their proper performance and It may therefore be taken as IlS en 0 other in-other other fundamental principle that the annual high ay budget adjusted to the tho relative needs for tor other purposes es The Tho Th revenues derived from rom h the must mut mu t be b sufficient to cover all these nods needs and nd the portion allotted to highway lm- lm Improvements Im must not bo be out of pro pro- proportion pro to the relative need for s But Dut In this connection It should be b addid that all revenue from motor chicles or users should be set aside ald for foru u n iv ny ay purposes purpose Now If 1 the th highway program and administered as a I hate e entails tan inn expenditure ILter than can be met stith cur ctr- clor- clor ent funds without diverting money rom other necessary purposes the recourse recours Is to Issue bonds bond for forI I will remind you n agn that to tall 0 prosecute the stork ork ork of hIgh a v ement as rapidly as physical ph skol limitation will permit Is merely to the tho th Inescapable expense In n he form of greater creater operating cots costs or a form In which It wll Wil 0 greater than If It It le Is I assumed LS a road construction cost cot Exactly what hat pait pat t of ot th the cost of at be program cah cab properly be bo de- de I Is perhaps a debatable que- que Ion That la 8 to say y there thero Is I a de de- de middle ground here It is 19 to define d the th policy that be b pursued with nith Ith propriety Is no question that certain of the th construction cost nay may be b deferred without reasonable ob- ob ob ob objection tor for example the th coots cost coot of i the tho grade rado and anil drainage e structures whIch aro ar practically permanent emente On tho the other hand h I there thero Is 11 no question that maint nl nce charges chane as a they thoi are aro ordinary defined should hould not bo be b met will wiLli borrowed money mone But In between these hese two fixed points of ot poh policy Y there thore Is I doubtful ground W lt wherein ItIs ItIs It Is difficult to Juar juaB offhand as to the tho soundness of deferring pay py payment pay mont ment The Th principal 1 doubt over the financing of the th cost of the payment and It seems sem to me m that the solution of this doubt rests rits en- en en entirely Irely with character of tho the main main- maintenance tt nanc I tt-nance tt It 11 Is I probably the mer- mer merest mer merest est eat platitude to say day that th t unless unite mer-I mer the tho roads rands are ar year by year It It matters not how well they thy are I the built th investment In thorn them will gradually lly bo be b dissipated and the rods roads themselves thoms lve will never n ne er glue give I the service that they should bo be expected to give PerfEct on the other oth- oth I or er r hand absolutely guarantees the Int integrity of th the or ort n investment assures continuous service converts what could Duld Iso l b be bea ba a liability Into an asset Tn Th tate of ot New row York h has ha been beon b severely criticised by A a great ireat many people because It L several years ago aco In bonds bond Yet I am convinced convince that t the th high high- wan we wa purchased with the borrowed money are Aro now worth twice In actual replacement val val- value val val-u u ue I 1 think that Is I a aery ery very conserva- conserva t th the e statement nt and In addition the people popl of the tho th rote ante eat have hv had the service of the tb roads road all these years A lot of these thes roads are ar now being be- be beIng b Ing rebuilt and It I Is e true truo tru that the tho bonds Issued have hav not been retired but that does do not m mean m-m n that the tho of tho th stats elate will continue from now on to pay PV for tor an Im- Im improvement provement that no longer exists as aha has been beon erroneously stated The grades remain Intact and much even Ten of ot tho the surfacing surfacing- material m re re- re remains r mains to tD form the th basis of the tb re- re renewed re renewed Dewed surface For example on their macadam roads road originally oris twelve to fourteen feet feel In width they are reshaping the th material drawing It toward to tn center cinter to form a strip six to eight feet foet wide and adding an eight foot toot strip of concrete on t each ach aide ld to form II a pavement twenty twenty-t t twenty so 0 to t four t enty four feet wide w de dc and ond the cost of the finished construction has ha been ben just ju about the th average a 11 cost coot co t of an eight eight- toot con foot eon concrete road So Bo I repeat that whether you are aro to proceed on ona ona a 0 pay as policy or with funds derived from a 1 bond Issue is 10 absolutely dependent dep nt upon the tho degree of protection prot you give Iv the tho Investment by maintenance Thus far tar I haM base e not referred to the distribution of the financial burden more than to suggest C t the sources from which fond funds may bo be bodel del h I hav have havo preferred to deal with the tho th problem In throe three distinct parts part to avoid the tho th contusion confusion which arises when oro undertakes to dis- dis discuss dis discuss cuss methods method of payment and sources of revenue at th the sam same time Ume I 1 have haTO shown hown First that the trunk line at 1 least leat should be completed as a rapidly as possible po regardless of the thO tn method of ol pay pay- payment payment ment adopted or the th from which the th funds are ar anti And that It should be he limited only by bytho bytho bytho tho factors factor of labor and material available Ke e second ond that the method of deferred pym payment nt mt Is the resort whon the tho fund funds necessary ne- ne ne-cs ne ary to carry crry on the th requisite program are greater creator great r than may be obtained without undue undu burden from current tax tai collection collections I Now I am going to add dd that those the points of f policy will remain I unchanged regardless of the th I dis- dis dis distribution of the Whether funds are Itro ar obtained d b bf taxation of I property or uso users s should not affect t the th rat rate of Improvement notI at I for trunk lino IIno roads and It has nothing to 10 do with aith Ith the th method payment adopt 1 I The decision tolon I as to whether to pay-as pay you you-go or defer the th payment Iv I dependent I I I I only upon tho th relation of the th necea- necea sary ary rate of re to the tho rate ralo at which It Is 10 expedient l ent to attempt attempt at- at tempt to raise the money by taxa- taxa taxation lion tion regardless of the kind of tax tax- taxation tax taxation atlon Now vi view Inc Ing It tt problem ot of raising money IlS as a a separate matter matterI I ii ono one on very definite principle that will aid old In determining upon a 0 ItI wise policy ly Concis-ly stated It ItI itis I I Is this That the tho th cost of building I land and m an n adequate ays- ays s-I s torn tern of hl highways h should be b I In equitable relation to the benefits derived I The o property Is well wn understood and the th benefit to road users Is direct and obvious I 1 Now I will add Hill Ihl That aU all these benefits benefit must bo be taken int consideration In makIng the tho assess assess- r ment for the th and nd main maln- maintenance of tho the roads roAd It Is I not fair to lay upon any one on cIa class clas a part of the th cost disproportionate to the It re Os I nn |