North Carolina Newspapers

.'t THIRD SECTION PAGES 1T0 THE WILMINGTON DISPATCH MEDNSDAY, AUGUST 7. 1918. Address of Hon. D. M. Clark, Greenlle, N. C, Before South ern Appalachian Good , Roads' Convention. 4 t IN Uniform Road Emaiiciii Next to preserving self from the , wolf of poverty, t am Interestd In the Improvement of all roads, wlfether they.b4 highways or byways, of na tional of township importance. There fore, it is not only an honor to have bei invited by your distinguished president to come out from the old mother state of North Carolina to speak to you in the interest of our common causa, but a distinct pleasure as well. ' On this subject "Uniform Road Fin ancing" much of importance might be said, and I am embarrassed by reason i of paucity of information, but of such' 'as I have I gladly contribute to the greatest potential factor of progress 'and prosperity. The time has now. come when every one, be they progressive or conserva tive, .must admit that good roads are thelife arteries of our industrial and social intercourse, but 'this fact has , only been recognized in our country ; during the last few years. In fact, until comparatively recent ly we tolerated mud, ruts, steep hills and practically impassable roads rath er than give up the old public road system borrowed from England, but long since, discarded by the lender. That system which conscripts labor by legally compelling every male person . between the ages of eighteen and f or- ' ty-flve years who resides in the rural districts, to work on the public road a certain number of days every year, was created by the wealthy landed classes for their own special benefit and convenience and because it taxed only certain individual s labor who be loneed to the lower, less fortunate classes. And for practically the same reasons it was adopted in America aur ,i ine our early history and has remain : ed with us ever since, although thanks to progress it ' is becoming more ana more a relic of antiquity. Iniustice of Old System. The iniustice and especially the in efficiency of such a system gradually dawned upon our people as automo biles became a reality and increased marketing demands were made on the public roads. Hence the advent of the bond issue , and tax Ivy f6r construc tion and maintenance. But in the im provements of roads, as in all other public mattera. necessitating bonds and taxes, progress - was slow. And even where there was-road building in the wealthier more progressive communi ties and trade centers-Jt was done with the view . of the - development -of the immediate' section and without ;re r:-, gard to. the state as.a whole. In some instanceMatate3 ..nave waea m- suction of certain Important high- This fact is the nucleus of the -whole system-which" bears- my name. ' Every detaiL has, ben worke4 out to a;.mathe matical certainty, and the law contains complete machinery for the operation' of the .plan- ; in brief, the system adopted in North Carolina is this: The state borrows money at, 4' per cent interest,' loans the same to coun ties and toWnshins at K terest, payable . semi-annually, of which 4 oer cent is used to nav tho Interest on the state bonds, and the extra 1 per cent is carried to a sinking f ' '' HENRY B. VAUKER president of the North Carolina Good Roads Association. ceived" in-a measure, the" assistance, of th nnitttA States eoverhmeht; But under this plan there is a lack of unity, an while one section is developed, an other Is neglected, which is caused of mil rue. hv fcertaln inequalities in wealth, .personnel and geographical location. Thus under tne existing sys tern general development ds necessar ily slow. Therefore the need or a method of national and state financing whrebv a uniform system, of con ur.tine roads could be built by every state, county and township, however remote, and at the least possible cos tn tvi individual tax payer It ,was to supply this necessity in Vnrth Pnrolina. that the- measure known as the "States Aid Road. Bill," which I will discuss, was passed aur Ing the last session of our General As The act is based upon the funda- ia tnat nublic road improve ment is predicated upon the fact that the public road is one of tne iew gred.t instrumentalities of community lire rvith which the government -is direct ly concerned. That the functions -of a government are to secure peace, prosperity and happiness to its citi zens, for the hapipness of a people de pends primarily on the prosperity of that people; and the prosperity of a people depends directly on its indus try; and the industries of a state or nation cannot reap their full reward until the government utilizes all of its instrumentalities for their full and free development. For improvement in no public facility will give returns in dollars and cents more quickly than improvement in roads- As our public roads involve the transportation .problem, affect the cost and pleasure of living, the exchange of commodities, the valuation of prop erties, the social and educational wel fare of citizens, and even the thought of a people, they become the greatest instrumentalities of community or, na tional life. Therefore their develop ment is a governmental duty neces sary to the progress and self-preservation of the state or nation, and the peace, prosperity and hapiness of ouH peoplet"5" As the state and nation are the direct beneficiaries whenever public roads are developed in any section, however remote, then state and na tional governments- should ze the agen cies through which the uniform de velopment of our entire public road system is financed. I do not' mean that the national -government or-the state should build the roads or pay for them, although' it is only fair that the public road system, as it 'concerns inter-counties, inter-states and through highways, should receive the same financial as . sistance as is given to canals, .creeks, rive'A, harbors, and railroads. But what I do mean, 'is that the state and national governments should be the agencies through which the money borrowed for construction, Is secured There are several reasons' why this X should be so. but nrinciDally because of the fact that thestate has a better i borrowing credit than a township or VV1 OX z5n fund that retires the state bonds in 41 years. The . system costs the state nothing,-for the state of North" Cara lina has an almost unlimited borrow ing' credit off rom Z i2ti j4' per cent, ana me exirse-Jf pep ;cenjn9oBgjipa,y& off the bonds, when duC but also nro- vides a surolus scufficient to nay. ; f or4 any extra clerical assistance necessary. The law in detail provides' for the issuing semi-annually, of 4 per cent state bonds, to run for a period of forty one years, the initial issue not to exced $400,000. The funds provided in this way are made available to such counties and townships as shall evince their public spirit and progressiveness by voting in the usual manner to tax themselves for the purpose of build ing roads. The act provides of course, the machinery for petitioning the county commisisoners and holding" the election. . Bie Saving to Counties. When a county or township votes for good roads under" this law, the county commissioners issue no bonds to be sold on the market at 5 or 6 per cent, as is often the case with the less fortunate localities, but merely eives to the state its certificate of in debtedness for the amount loaned to the county itself, or for one or more of its townshiDS. and the county is to collect annually from the whole county if the county has voted for the loan, or from suph township or townships as have voted for the loans from the state, the 5 per cent interest, as it col lects other taxes, and pay this over to tlie state. This 5 per cent interest is' all any 'county or township ever had to pay for the- loan, as the extra -1 per cent difference in state and county interest provides the principal and retires the state bonds at matu rity, and the county's or township's certificates of indebtedness are de stroyed or returned to them to be can celled. - V In every particular the state is am ply protected from loss by the most stringent safeguards. The bond or certificate of indebtedness given by the no e.nnritTr fnr tVio loan, obli- siaic CLQ acvui.j , gates the county to payMo the staxe treasurer. 5 per cent interest per an num payable semi-annually on the first days of December and June or each year for a period of 41 years. As a penalty for the failuhe'of any county to pay the 5 per -cent interest when flue, the act provides for the state ltreasurer to collect in addition there to one half of . one per cent or tne amount due,, for every day the same remains unpaid. One half ''of sucn penalty shall be paid by the county ahad the -other half by the sheriff of such delinquent county. In addition to this it is alser'provided that if any county or township obtains a loan from the state under the bill and shall fail or refuse to pay the interest due on such loan for a period oi ju aays, the amount due, together witn tne penalty, shall at once become due and payable, and the state treasurer is authorized to proceed to collect the same from such delinquent county or township., - CrmiTniaslnnCTs Must Make Ijevy. - Criminal liability is also imposed in the following' language: "If any board of county commissioners whose duty .it is to levy-any tax or taxes under the provisions" of this act, shall ail or re fuse to make such? levy, or.; to - make such ra ta r - lew as " is - required :, by this act, they and each of the members thereof shalKbe sruiltir of a misde meanor, and, upon conviction, shall be f 1 J' ant plat: Engage Pearls, .7criderful brilliancy, beautif ull3r cut, radi :tviater, mounted by expert craftsmen, in A - , inum and 1, 'jDlain and exquisitely carved mountings. ment an c presejatation gifts. iamond3- c gems of ?tite : Rubies; ar. J3apphires, Birth Stones and Dinner Rings ; ixi.Filagree Patterns. - 1; Art Silv Lad erware in i;riaI Lfieats, Liitt oets and Separate f leces. and Ger.;;.:sris-Watches in all makes and styles . .. Watches for :ho Soldier in Camp and "Over There' Clocks of all dcccrt",:ofi period timepieces of graceful designs 'gt.l .Vcrkmanship Clocks for :lf u'trikand office i04Nc:'AF: : C TXTnmirn Tin i mm "mM i 1 19 - ' ' w in mi nil . .-. . 1 A . V . Wm - m vm. mMm f a H,AT1flr M MIIIirLri I I 111 TTWI Mill 111 III KIM I W VY aFLrfT a basv-aL I liim use. etos' fEnzrc: 'nz arid. Expert Repair Work. . ' r v Wilmington, N. C. less than $200 each,, nor more than $1,000 each, or be imprisoned rot ex ceeding one year, in the discretion of the court." As a safeguard to the state against counties or townships borrowing more money than their responsibili ties will justify, thus rendering them inenivpnt tHfi a t jjrovides "No county shall be allowed to borrowmoney un- amount whieh, added to other bond ed indebtedness, exceeds six per cent of the assessed valuation of the prop erty of the county." The commissioners of the counties securing loans under the .act are re quired to levy in addition to the five nar nt ititftrest.an amount sufficient to cover the cost of collection and dis bursement, and the penalty to wnicn the county is subjected,: in case such penalty is incurred, and an amount sufficient to provide the maintenance fund which is to run for the duration of the indebtedness. In this way the state is protected against any possible loss, although the money is provided for the construction and maintenance of a statewide system , of modern pub lic roads, at a most to the counties or townships of only 5 per cent, plus the maintenance cost, but with no prin cipal to be repair and no debt o be passed on to the future generations. ; State Issues Bonds. As lias been stated, ,to provide the funds for the operation of this system 1 .t,t. tr9inmr is directod to is.ue 000 in 4 per jcent bonds, provided counties and townships have voted to tax themselves for good roads, and have made applications for loans un der Jhe plan amounting to the full is sue of $400,06$ If less than $400,000 has been applied for by the counties and townships, bonds are issued only for such sums as is actually applied ,for,but if more than t,hat sum has been applied for, the issue does not exceed $400,000 but is apportioned prorata among the applicants,' the full amount of the loan applied for to be made out of the issue six months la ter. In- this way the state issues no more bonds , than there are applica tions to take up, but a tthe same time gives to each cbunty and. township equal opportunity to receive a part of the money as it becomes available and avoids scrambling as to what coun ties and townships shall be first ben efited. It is left to them to make the move and thus select for themselves, the result of Which will be that the most ... progressive and wideawake counties and townships, those mat feel, most the need of the- good roads system, will be the first to profit by the opportunities thus made possible. It will not be left .as in he past, with us in North Carolina,, for. those commu nities which have theinost influence in the legislature to i obtain f priority, but successively, each county - and township will come ih.1 iri the i order they 'themselvos create, maKing even tually a uniform stateWiue roaq, sya If the state issued $400,000 in bonds semi-annually for 41 years it would amount to $32,800,000 for the full pe riod, a sum rather- large to contem plate, but not as gneat by any means as the counties and townships in North Carolina would issue their indi vidual bonds for during that period under the old system, .the .principal of which yould have to be paid at matu rity, or the bonds refunded by act of the legislature and the interest there on continue to run until such time as the locality was able to pay off the indebtedness. In proof of which state ment I cite the fact that North Caro lina has, this year, spent for road im provement alone, the sum of $5,510, -000. But under this plan the state does not issue $400,000 m bonds semi annually, although that sum is always available semi-annually if or the stip ulated purposes. The reason is, there is a surplus income of one per cent which goes to the sinking fund, and the sinking fund is invested in a loan to othei counties and townships as they subsequently come un'der the ?ys-- tem and make applications lor loans. So that, after the first $400,000 is tak n iit. bonds are issued only for an amount added to the semi-annuall sinking fund, -ffamcient to. total the next $ 4 0 0,0 0 0 . 'Semi-annual . loan. Thereby each subsequent bond issue is reduced the amount of the sinking fund created by the one per cent dif ference in 4 per vcent state bonds and 5 per cent county or townsnip oonas. sinking fund is secured and semi-an nually reinvested. How the Law Works. ; ' As an example of how the plan works, suppose op the first day of January, 1918, North Carolina should issue $400,000 4, per cent bonds, in ex change for $4Oj,OO0, 5 per cent coun ty and township bondsv On July -1 of the same year, just six months later, the 5 per cent interest due on the county and township bonds would be $10,0,00, whereas the 4 per cent inter est due on the ; state bonds would be $8,000, leaving a surplus of $2,000, representing the 1 per cent sinking funds. Then on the next period 'of the semi-annual issue which would be July 1 the state would issue only $398,000 in bonds which added to the $2,000 surplus would make' up the $400,000 semi-annual loan fund. In this way the bond issue, is reduced every six mtnths in proportion to the income from the 1 per cent surplus or sinking fund. And on July 1,'1958, the last semi-annual period under the plan, the state would issue only $2,701.48 in bonds, which sum, added to the accumulated 1 per cent sinking fund of $397,298.42 would make up the semi-annual loan fund of $400 000. ... ' . . If this plan was put in operation en January 1, 1918, the principal of the first $400,000 state bonds would be come due and payable en January 1, i99, at. that time.' if every semi-an- nuat $400,000 loan .fund had been ex s-1 5 per cent couhlj u& 11 wnuo. u wn $ 1 w,v v vivau 1 iwu c.v. -. . counties and townships, there would be a total income from the 5 per cent interest paid by the counties and townships of $820,000, at the same time 4 per cent ' interest , due on state bonds would amount to $312,755.48, leaving a balance- on hand of $407,-, 244.52, out of which the first bond, issue of $400,000 would be retired, and still leave on hand the sum ofi $7,244.52 surplus-, with which any ex- ! tra clerical assistance made neces-' sary .in tie state treasurer's office couldt be paid. This surplus of $7,244.52 per year runs through the entire maturing period, so that if the . extra clerical assistance did not ab-j sorb the entire amount or should not be necessary, the state would be ac tually earning under he system, $7,-i 244.52 each year after the maturmtr of the bonds had-begun. The saving feature of the plan, . which will amount tb millions of dol lars, is made very apparent by the fol- ! lowing illustration of an, actual factj under the present system of putting " bonds on the open market: In 1870 Mecklenburg county, North j Carolina,' issued $300,000 in per: cent bonds to run for a period of 29 ( years." In 1890 when these bonds ma tured, the county had paid out $3C0 000 in' interest; but did not have the, $300,0.00 with which to retire the bonds, so by acjv cf the legislature the ' - - . Continued on Pago Thretk I :ir.V: