e 
 
 
 
 - 
 

 
seth fae arent 
 
 of His Excellency, 
 
 WESTMORELAND DAVIS 
 
 Governor of Virginia 
 
 AND THE 
 
 ION. ROSEWELL PAGE 
 
 Reema” 
 
 Second Auditor of Virginia 
 
 Before the Convention of the Virginia Good 
 
 - Roads Association, held in Richmond, Vir- 
 
 ginia, January 14, 15 and 16, 1919 
 
 t | RICHMOND 
 4 Davis Borrom, “SUPERINTENDENT PUBLIC PRINTING 
 
 etoty, 
 
 
 
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 in 2021 with funding trom 
 University of North Carolina at Chapel Hill 
 
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How to Get Good Roads in Virginia 
 
 Westmoreland Davis, Governor of Virginia 
 
 
 
 Mr. CHAIRMAN,, LADIES AND GENTLEMEN :— 
 
 It is always a pleasure for me to meet in conference with my fellow 
 citizens, but especially is this the case when I feel that we are to enter 
 upon a great work for the development of Virginia—the building for 
 her of a great. system of highways. 
 
 When I was asked to speak to you today upon ‘‘future highway im- 
 provement in Virginia,’ I readily accepted, as it seemed to me an oppor- 
 tunity for us to do a great work for our State and to sound a note of 
 enthusiastic endeavor, which will find its expression in roads built on 
 the ground rather than in rhetorical phrases recorded on paper. 
 
 When I offered myself as a candidate for Governor of Virginia, I 
 issued to the people a platform, which contained my pledges as to official 
 
 , action, if elected. To this, when questions of State present themselves 
 for consideration, I always make reference; for the pledges that I have 
 made to the people of Virginia and upon which I was elected are the 
 guiding spirit of my administration. 
 
 L have promised in my platform and in my inaugural address to the 
 utmost of my power to encourage the building of goods roads, and now 
 that the war is ended I feel that we should address ourselves seriously 
 to this important subject, 
 
 The aid offered by the federal government to the States is distinctly 
 unsatisfying, in view of the fact that the mobility of an army is dependent 
 upon the character of the roads used by it as well as by the fact that 
 heavy trucks are being used in the postal service for parcel post and 
 mail delivery. Indeed during this war enormous army trucks driven at 
 great speed in large convoys destroyed or did irreparable damage to 
 bridges and highways connecting military establishments as well as 
 jeopardized the safe and prompt movement of war supplies. A statesman- 
 like grasp of the proper relation between Nation and State in the ad- 
 ministration of the affairs of our people would suggest the building by 
 the federal government of these trunk lines for military and postal 
 service. 
 
 Virginia is sparsely settled, having over 10,000,000 acres of land not 
 under cultivation, and which can only be brought into use by the de- 
 velopment of such highways as will facilitate the transportation of farm 
 products and the easy access of farm population to city conveniences. 
 Such highways are of substantial benefit to the owner of motor vehicles. 
 It is estimated that upon an average yearly travel of five thousand miles, 
 the average automobile will save twenty dollars in the cost of gasoline 
 alone when good roads instead of dirt roads are used. The benefit de- 
 rived by the farmer from good roads is greater still. His teams haul 
 more auickly heavier loads with less wear and tear upon either team 
 or vehicle; he saves one-half the cost of hauling. his crops to market. 
 
 Good roads have great educational and social value; schools and 
 neighbors are ready of access and community centres are quickly de- 
 veloped. Improved roads increase facilities for marketing, add to farm 
 values and to the State’s economic wealth to an amount that will pay 
 many times the cost of the original road construction. Virginia is rich 
 in historic value and tourists will find in her natural beauties and scenic 
 
 Southern Pamphlets es 595848 
 
 Rare Book Collection 
 UNC-Chapel Hill 
 
4 
 
 effects wonderful attraction. These itinerant parties will scatter wealth 
 where they go as does the touring population in Vermont, New Hamp- 
 shire and Massachusetts in this country, and as in Continental Eu- 
 rope. Then too, there should be public works under construc- 
 tion in the State to aid the unemployed, and good roads are a condition 
 precedent to the successful placing of such of our returning soldiers 
 as may be seeking to establish for themselves homes on our farming lands. 
 
 Various methods have been tried in different States to secure funds 
 with which to build roads. Jn Wisconsin the counties bear the cost of 
 construction of the State Highway System, the State paying for the up- 
 keep. This plan would not be applicable to Virginia for the supervisors 
 of many counties might not care to bear the burden involved: nor would ~ 
 ‘they be likely to adopt the type of road which the heavy traffic of the 
 future will demand. In Kansas federal aid is combined with county aid 
 which is had by an assessment of benefits upon the adjacent land owners. 
 It is not likely that our farmers would be content to assume the cost 
 of highways constructed along this plan as with our lower values and 
 the high cost of construction our farmers would find the amount neces- 
 sarily assessed distinctly onerous, if not confiscatory. 
 
 There are really but two plans worthy of consideration, one the 
 issuing of State bonds after our Constitution has been amended, and the 
 other by paying for the roads out of the revenues of the State derived 
 from taxation. 
 
 A program of State highways adopted by the legislature in 1918, 
 and involves the permanent improvement of 3,740 miles of road. Pro- 
 vision has been made for maintenance of the system, and for State aid 
 for the construction and maintenance of county highways which serve as 
 laterals. 
 
 For the realization of this program the State has at present the 
 following possibilities: 
 
 a—A three-tenths of a mill tax equivalent to approximately $375,000 
 a year which is devoted entirely to construction in connection 
 with the State highway program. 
 
 b—A State appropriation of $510,000 covering the years 1918 and 
 1919 to meet federal aid on State roads. 
 
 c—-Federal aid which in the five years, 1917-21, inclusive, will 
 amount to approximately $1,500,000. 
 
 d—The income from automobile licenses which in the fiscal year 
 
 1918-19 will amount to about $670,000, the major portion of 
 which must be devoted to re-surfacing, construction and repair 
 of such partially improved roads as are already included in the 
 State Highway System and which total approximately 1,500 
 miles. At the discretion of the Highway Commissioner, a part 
 of this may be, but is not at present, devoted to the mainte- 
 nance of county roads. 
 
 e—A State appropriation of $300,000 per year to be devoted to the 
 maintenance of already constructed county highways and con- 
 struction in such counties as have not a developed highway 
 system in need of maintenance. 
 
 f—The use of between 1,000 and 1,200 prisoners for the mainte- 
 nance and guarding of which the State appropriates $250,000 
 and the services of whom may be evaluated at anywhere be- 
 tween $250,009 and $600,000 annually. 
 
 This gives a total of approximately $2,150,000 annually under the present 
 plan to be devoted to the construction, reconstruction, re-surfacing 
 and maintenance of the entire highway system of the State, includ- 
 ing the State and county programs. Of this sum approximately 
 
 5 $970,000, whieh includes $300,000 State aid to counties, and $670,- 
 
5. 
 
 €00 to automobile licenses, is devoted almost entirely to highway 
 maintenance and is probably inadequate for this purpose. 
 
 This leaves a maximum balance of $1,180,000, which may be annually 
 
 spent for construction of the State Highway System. It is estimated 
 that the average price of desirable road construction in this State’ 
 program is to cost $20,000 per mile. At this rate it would require 
 about sixty-five years to carry out the State highway program as 
 passed by the General Assembly in 1918, eliminating any increase of 
 that program made necessary by the development of Virginia’s 
 population and economic resources, and disregarding the fact that 
 the roads laid would have to be replaced several times during this 
 period. 
 
 It becomes immediately apparent that such a rate of road construction 
 
 is out of the question if the Commonwealth of Virginia is to keep 
 pace with its own needs and is to enter into successful economic 
 competition with other States, which are entering into large con- 
 struction programs. 
 
 It is impossible for anyone who has not given considerable thought, sup- 
 
 ported with an intimate knowledge of Virginia’s topography, dis- 
 tribution of population, and resources to make any complete esti- 
 mate as to the highway needs of the State. In fact, probably any 
 estimate made even through such special knowledge will be entirely 
 obsolete in a brief period of years owing to natural rapid develop- 
 ment by even the beginnings of a comprehensive highway system 
 and the impetus given this development. 
 
 It may be assumed for purpose of argument that the State Highway 
 
 The 
 
 The 
 
 System will involve only a permanent type of road construction varvy- 
 ing in degrees of permanency with the character of transportation 
 and the growth and change of transportation needs. It is possibly 
 fair to assume that such highways will on an average cost ‘$20,000 
 per mile for original construction. On this basis it would cost ap- 
 proximately $75,000,000 to construct the present State Highway 
 System in permanent form. This is too large a sum of money tc ke 
 considered at the present moment, but it may not seem so stupendous 
 in future years. 
 
 present problem then is to determine a sum of money which will 
 be adequate to develop the essential highways which go to make up 
 this 3,740 miles of a State Highway System. This again is a problem 
 for the authorities in charge of highway construction: in Virginia, 
 but it is probably safe to estimate that 1,200 miles of road con- 
 struction done in the immediate future would lay the foundation 
 upon which may be built a complete highway system in coming 
 years. 
 
 cost of these 1,200 miles would approximate $25,000,000. Virginia’s 
 problem, therefore, is to raise and spend a sum of $25,000,000 during 
 such a limited period of years that the public may notice an appre- 
 ciable inerease in their highway system, may benefit accordingly 
 from increasing economic values, and may be educated thereby to 
 the essential need of constructing a complete system. 
 
 Should it be determined to issue twenty-five millions of bonds, the 
 
 payment of interest and principal will have to be met by taxation. It 
 may be of interest to know what other States are doing, as reported by 
 the American Highway Association in the ‘‘Good Road Year-Book, 1917”: 
 
 State Bonds Area Population 
 Californin tis tak niece § 33,000,000 158,297 sq. miles 2,983,000 
 Florida (counties) .. 11,000,000 58,666 sq. miles 893,000 
 LTE ONS! Ra tars ke tae: ate 60,000,000 56,665 sq. miles 6,131,000 
 Marvid itd: set im ets + exe 18,470,000 P22 Sy sales 1,360,000 
 ING WoL OT Kya. sk cameuy> 160,000,000 49,204 sq. miles 10,366,000 
 
 Pennsylvania ....... 50,000,000 46,126 sq. miles 8,510,000 
 
26 
 
 In addition the following bond issues are under discussion: 
 
 State Bonds Area Population 
 Minnesotan if alice 100,000,000 57,980 sq. miles 3,074,000 
 North xCarolina iis se 23.0.000,000 . .69,127 sq. miles 445518000 
 Washinston * <u 40070003009 52,426 sq.-miles .—. 2,400,000 
 
 Michizane) gat pattem ts $ 50,000,000 84,682 sq. miles 2,265,000 
 
 These figures are hardly more than indicative. Many States not 
 enumerated have extensive systems of improved highways, which have 
 been built from annual appropriations, or by county bonds, or both. 
 
 It has been seen that bonds would be only issued after the amend- 
 ment of our State Constitution. and it is scarcely probable that construc- 
 tion of highways could be undertaken with the proceeds of the sale of 
 such bonds until 1923. and that this plan would entail a large outlay 
 in the payment of interest. 
 
 In Illinois, at the election in November, 1917, the issuing of sixty 
 million dollars of twenty year bonds for the purpose of creating a five 
 thousand mile road program was authorized, the entire.cost to 
 be borne by the automobile owners. This proposal proved immensely 
 popular with the voters, because a vast majority of them were not re- 
 quired to pay any direct cost of road construction. On the other hand 
 automobile owners in general were glad to assume the burden inasmuch 
 as there were distinct benefits far outweighing the cost. By this method 
 Illinois was able to raise ample funds to pay the principal and interest 
 on this large bond issue, and had practically as much more available for 
 other purposes from the same source. The idea has proved popular and 
 similar measures are being discussed in Minnesota and Washington. The 
 feasibility of such a program for Virginia may be decided only after a 
 study of automobile license revenues in connection with certain other 
 State revenues, inasmuch as automobile licenses are now segregated for 
 road maintenance. There is a distinct advantage to such segregation 
 inasmuch as it provides a constantly increasing fund for the purpose 
 of highway maintenance. 
 
 The present automobile rates on typical cars for a number of States, 
 as reported by the American Automobile Association, are as follows: 
 
 State Ford Dodge | Packard 
 INGWAUY-OrKe eee): eee $ 5.00 $ 5.00 $15.00 
 ORIO NY ee she eee FORA K) 5.00 5.00 
 LINDOIS.. lan ere eee 6.00 6.00 16.00 
 Pennsylvanias «meee: is 10.00 10.00 Lon00 
 MiChiSanset ee 2 .aeemanee 9.25 aba b SAS 23.00 
 WASCOUSIN =i a, oe ee 10.00 10.00 10.06 
 Wary Ledeen sti eet aa 13 20 14.40 28.86 
 Vireiniaie’,. seen soles. 8.80 9.60 19.20 
 TONTCSSEO. atten. tore 6.60 7.20 14.40 
 POUISIAN Ae ee caer ate: 5.50 6.00 12.00 
 LORS Wy) ee See een 500 5 
 
 . 00 15.00 
 
 An increase of fifty per cent in the automobile licenses in Virginia 
 would affect only a limited number of persons, who are probably most 
 able to bear the small tax, and if they knew that the sum was to be 
 used for the construction of highways, would be glad to pay the increase. 
 It is hardly to be assumed that any person in purchasing an automobile 
 would refrain because of the imposition of an annual State tax. It is 
 doubtful, if probable, purchasers would refrain from owning an auto- 
 mobile in Virginia, if the tax were even double the increased tax im- 
 posed. Under these circumstances and considering the limited wealth 
 
i 
 
 of the State, in proportion to its area, its undeveloped resources and its 
 needs of roads, it seems entirely feasible that a tax on automobiles should 
 be increased even higher than the rate prevailing in most States. 
 
 The incomplete return from automobile licenses for the year March 
 1, 1918, to March 1, 1919, is $648,454. Had the tax been increased 
 fifty per cent during this year, the return would have been practically 
 a. million dollars. 
 
 If bonds are issued, the use of licenses to meet the resulting finan- 
 cial obligations will not be necessary until 1923. At this date and fol- 
 lowing, judging from past experience, there would be a considerable in- 
 erease from this source in revenues. 
 
 Automobile licenses, as indicated by the books of the State Highway 
 Commission, have returned to the State in the past few years the follow- 
 ing sums of money: 
 
 Percentage of increase 
 
 Year Amount of tax over preceding year 
 ey £0 $ 20,669 
 
 1911 35,575 73 
 
 1912 51,245 44 
 
 zis is Bess 80,025 56 
 
 1914 116,188 45 
 
 1915 170,646 : 47 
 
 1916 271,610 59 
 
 Pouey 483,470 4 4 
 
 1918 648,454 32 
 
 Average increase: 50 per cent. 
 
 Evidence that a reasonable future increase in such licenses may be 
 anticipated is indicated by the table for a number of typical States, show- 
 ing the number of machines, total population, and population per ma- 
 chine: 
 
 Number of Machines to num- 
 State machines Population ber of persons 
 OL anew. aes 297,239 5,181,220 qh 
 NEWRY OF Knits sth. co 403930 10,366,778 1—30 
 DPT OF Seat ee die ca. oe 285,000 Galo luted 1—22 
 Pennsylvania ..... 254.735 8,510,515 1— 33 
 Wiseonsin ........ 142,980 Qe hl Oe 1—18 
 NETS TaN ems. a eae sone. 17,854 1,360,091 1—28 
 AVAtig2a halt Pee exe ape 44,550 2,186,768 1—49 
 Tennessee ....... 42,000 2,288,004 1—54 
 OUISIAT A occas Sere yt 06 1,829,130 1—72 
 Lat 29 a eee: Cie ee 17,065 433,267 1—25 
 NCCI ERA TY Bria, oo hens 189,000 3,074,560 1—17 
 
 The possibility of Virginia having the same number of machines in 
 proportion to its population as the States of Michigan, Ohio and TH 
 nois, is regulated only by the wealth of the people, and the roads which 
 the machines use. The roads themselves will directly affect that wealth. 
 
 For the purpose of calculating automobile licenses as a means of 
 financing a bond issue, it is assumed that there will be an annual in- 
 crease of only ten per cent. in the amount collected from licenses begin- 
 ning with 1920, and that only $20,000,000 of bonds will be issued. From 
 this estimated revenue is deducted the actual amount necessary to finance 
 $20,000,000 of twenty year bonds at four and one-half per cent. The 
 remainder is available for maintenance. 
 
8 
 
 Following is a table of anticipated revenues from automobile licenses 
 assuming an increase of fifty per cent. in the rate applicable in 1920, 
 with the amount necessary to finance $20,000,000 of twenty year four 
 and one-half per cent. bonds, and the balance available for road mainte- 
 nance: 
 
 Hstimated Required for Balance available. 
 Year revenue bonds for maintenance 
 LOS $ 675,000 None $ 675,000 
 1919 1,072,000 None 1,072,000 
 1920 1,179,000 None 1,179,000 
 192 1,296,000 None 1,296,000 
 uO22 1,425,000 None 1,425,000 
 1923 1,567,000 None 1,567,000 
 1924 17 23.000 $ 308,000 1,415,000 
 1925 1,895,000 616,000 1,279,000 
 1926 2,084,000 924,000 1,160,000 
 1927 2,292,000 1,232,000 1,060,000 
 1928 2,521,000 1,570,000 981,000 
 
 After 1928 the charges remain steady, while the amount for main- 
 tenance increases. Also, it may be reasonably assumed that the State 
 would be willing to augment this maintenance money by reasonable 
 taxation, if necessary. 
 
 The advantages of this plan are: 
 1—$20,000,000 is secured for roads without recourse to property 
 taxation. 
 2—The money at present received from automobile licenses is left 
 practically intact. 
 
 The disadvantages of this plan are: 
 j1—State bonds must be issued. 
 2—-Work cannot begin until 1923. 
 3—It breaks the precedence of leaving all automobile license reve- 
 nue for highway maintenance. . 
 4—-_Money must be raised in 1920-1922 to meet federal aid. 
 5—Imposes an unequal burden upon certain classes. 
 
 
 
 
 
 Should it be desired to issue $25,000,000 four and one-half per cent 
 bonds based upon an available assessment of $1,300,000,000, as of 1918, 
 this would require for a five year period, beginning: 
 
 Year Mill Issue 
 
 1924 a7 1L00 3,000,000 
 1925 32/100 5,000,000 
 1926 42/100 . 5,000,000 
 PO 27 68/100 6,000,000 
 1928 86/100 6,000,000 
 
 The rate would decrease at the end of five years with the increased 
 assessment. In 1942 all bonds would have been issued and paid for. 
 This includes provision for federal aid and maintenance, but federal 
 aid between now and 1924 has to be provided for by taxation. 
 
 Should the automobile tax be increased by fifty per cent, it is esti- 
 mated that this would lessen the tax rate to three-tenths of a mill. 
 
 Should it be desired to construct the highways without issuing bonds, 
 _the State could levy a mill tax as well as increase automobile licenses,. 
 
9 
 
 which would make available a sum for road construction which before 
 1928 would pass the amount to be raised by the issue of bonds and 
 would be available for work in 1920 instead of 1923. 
 
 It must be remembered that a mill tax is simply a tax of one dollar 
 upon the thousand dollars of assessed values, and considering our low 
 assessments of property as related to actual value, this would amount, as 
 a tax in Virginia, to less than thirty-three and one-third cents on the 
 thousand dollars of actual value. I have adopted the mill tax rather than 
 the mill and one-half, as I feel that provision must also be made for the 
 betterment of rural schools by the next legislature. 
 
 There follows a table of estimated revenue derived from a mill tax 
 and increased automobile licenses from 1920 to 1928: 
 
 
 
 
 
 Automobile Amount 
 
 Year 1 mill tax licenses _ available 
 1920 $1,447,000 $1,179,000 $2,626,000 
 Sone Wai 1,548,000 1,296,000 2,854,000 
 1922 1,625,000 1,425,000 3,050,000 
 1928 1,706,000 1,567,000 3,273,000 
 1924 15:79:38,000 1,723,000 3,516,000 
 1925 1,882,000 1,895,000 aoe .000 
 1926 2,013,000 .2,084,000 4,097,000 
 1927 2,113,000 2,292,000 4,405,000 
 1928 2,218,000 2,521,000 4,739,000 
 $16,345,000 $15,982,000 $32,347,000 
 
 It is assumed that the automobile license money will be divided be-- 
 tween maintenance and construction on the basis of two-thirds to.main- 
 tenance and one-third to construction, inasmuch as licenses are being 
 increased one-third for the latter purpose. On this basis the amount 
 from these two sources available for construction becomes available as 
 follows; from a one mill tax and one-third increase of automobile licenses 
 1920-1928: 
 
 One-third Available for 
 
 
 
 Year 1 mill tax licenses construction 
 1920 $1,447,000 $:73935000 $1,840,000 
 \1921 1,548,000 432,000 1,980,000 
 19.22 1,625,000 475,000 2,100,000 
 LOZSe 1,706,000 522,000 2,228,000 
 1924 1,793,000 574,000 2,367,000 
 1925 1,882,000 632,000 2,514,000 
 1926 2,018,000 695,900 2,708,000 
 LOT 2, 143,000 764,000 2,877,000 
 1928 2,218,000 830,000 3,048,000 
 
 $16,345,000 $5,317,000 | $21,662,000 
 
 In addition to the foregoing there are two other items which may 
 be confidently counted upon in estimating the means available for road 
 construction during the ensuing ten-year period. These items are fed- 
 eral aid and convict labor. If present federal aid is taken advantage 
 of, there will be approximately available from this source: 
 
 Sed MPSA a ee a on Sein. st gs We for, of taspiatior spe Sew. ate aes $100,000 
 pS am R i sete tes fata lockel ay sa. tis ciliate Sass ovine iok'a: aye git 200,000 
 PE eee re hh oles woh cis Chieioal tard Yo Metks aiSp tree a of eae Gen 8 300,000 
 Nog (Verran eet eke Ch an wien tt ameter a Sota tobe Sid tele a. 'eyall's ja am an 400,000 
 
ie) 
 
 It is believed that Congress will continue this maximum grant in- 
 definitely, and in some quarters it is expected that the amount will be 
 increased to at least $1.000,000 annually. 
 
 In addition, the State is at present working between 1,000 and 1,200 
 convicts on the roads at a cost of about $250,000 a year. Their value 
 may be placed at this figure, although their actual value to the State is 
 probably $600,000 a year. It may be assumed that one-half of this 
 service is devoted to construction and one-half to maintenance. On this 
 basis the following amounts are estimated to be available for construc- 
 tion in the years 1920-1928: 
 
 
 
 1 mill tax and Total 
 Year licenses Federal aid Convict labor available 
 1920 $1,840,000 $ 500,000 $ 125,000 $2,465,000 
 1921 1,980,000 500,000 125,000 2,605,000 
 1922 2,100,000 500,000 125,000 2,725,000 
 1928 2,228,000 500,000 125,000 2,853,000 
 1924 2,367,000 500,000 125,000 2,992,000 
 1925 2,515,000 500,000 125,000 2,140,000 
 1926 2,708,000 500,000 125,000 3,333,000 
 1927 2,877,000 500,000 125,000 3,502,000 
 1928 3,048,000 500,000 125,000 3,673,000 
 
 $21,663,000 $4,500,000 $1,125,000 $27,288,000 
 
 In addition the following sums are estimated to be available for 
 highway maintenance over the same period, exclusive of county appro- 
 priations: 
 
 Year Two-thirds licenses Convict Jjabor Total available 
 1920 $ 786,000 $ 125,000 $ 911,000 
 1921 864,000 125,000 989,000 
 1922 950,000 125,000 1,075,000 
 1923 1,044,000 125,000 1,169,000 
 1924 1,148,000 125,000 1,273,000 
 1925 1,264,000 125,000 1,389,000 
 1926 1,390,000 125,000 1,515,000 
 Lo27 1,528,000 125,000 1,653,000 
 1928 1,660,000 125,000 1,785,000 
 $10,634,000 $1,125,000 $11,759,000 
 
 It is probable that the exact amounts to be devoted to construction 
 and maintenance should be left for determination by constituted au- 
 thority. The combined amounts estimated to be available for construc- 
 tion and maintenance, exclusive of county appropriations in 1920-1928 
 are: 
 
 Year Construction Maintenance Total 
 
 1920 $2,465,000 $ 911,000 $3,376,000 
 102 2,605,000 989,000 3,594,000 
 1922 2,725,000 1,075,000 3,800,000 
 1923 2,853,000 1,169,000 4,022,000 
 1924 2,992,000 tego 00 4,265,000 
 1925 3,140,000 1,389,000 4,529,000 
 1926 Oro GB nOw) 1,515,000 4,848,000 
 1927 3,502,000 1,653,000 5,155,000 
 1928 3,673,000 1,785,000 5,458,000 
 
 $27,288,000 
 
 $11,759,000 
 
 $39,047,000 
 
11 
 
 The foregoing plan has these advantages: 
 
 1—The legislature meeting in 1920 can levy the one mill tax and 
 increase automobile licenses permitting contracts to be let and 
 work begun the same year, 
 
 2—The total amount collected and spent in construction in the fol- 
 lowing ten years from these two sources is $21,662,000, as 
 compared to $25,000,000, proposed issue of bonds. 
 
 d3—In 1928 there will be no debt outstanding, and the work can 
 be continued indefinitely if the public is so disposed. 
 
 4—-All money raised will go into actual road construction, while 
 in event of bond issue approximately $10,000,000 must b 
 spent for interest. 
 
 5—The increase in automobile licenses is approximately equal to 
 the one mill tax rate so that both parties pay for, and probably 
 benefit equally from the improvement. 
 
 Experience has shown that it is idle in these days of heavy traffic 
 to build lightly constructed highways and I have endeavored to plan for 
 a system that will prove a boon and lasting benefit to our State. If we 
 are to end the discussion of the benefits to be derived from good roads 
 and to enter upon their building, we must be prepared to pay for them. 
 I suggest that the next legislature be known as a “Good Roads Legisla- 
 ture,’’ and that candidates be asked to declare themselves upon the sub- 
 ject during the coming campaign; that the next legislature be asked to 
 levy a mill tax and also to increase the automobile tax which will start 
 the State at once to road building. 
 
 It is time the State was rid of its swaddling clothes, so far as the 
 Constitution inhibits the sale of bonds for road-building; the Constitu- 
 tion should be amended and the people should be permitted to say when 
 the question can be submitted to them, whether they prefer to continue 
 the policy which shall have been inaugurated, or to issue bonds instead. 
 
 I was elected Governor upon the promise that if permitted to do so, 
 I would give the State a system of modern, substantial, highways; I 
 renew that pledge and shall leave no stone unturned to accomplish that 
 end, which is fraught with happiness and prosperity for our people. 
 
 WESTMORELAND DAVIS. 
 
12 
 
 GOOD ROADS ASSOCIATION. 
 RICHMOND, VIRGINIA. 
 
 10 A. M., January 15, 1919. 
 
 The question is: 
 ‘“‘A State bond issue for the construction of the Highway Peyctent a 
 
 I deem it no small honor to address this association upon this sub- 
 ject. To understand the question, it may be well first ‘to inform you 
 of the present status of the State’s bonded debt. 
 
 On the first day of this month the bonded debt of Virginia was 
 $23,066,676.85, made up of the four items: 
 
 Riddleberger bonds, under act of 1882 (eee. $ 5,242,554.16 
 Century bonds, under act. Of918 92) Ghee 14,905,147.65 
 School and college certificates, act of 1892 ........ 254%67,605 2385 
 Old and unfunded, under*act’ of 191 Si eee 451,369.17 
 
 The first two items now pay three per cent. interest; the third item 
 pays six per cent., except a small portion which pays five per cent; and 
 the fourth item pays no interest until funded under the century act 
 above mentioned, when it pays three per cent from the interest period 
 succeeding such funding. 
 
 The Riddleberger debt is what remains unpaid of the funded debt 
 of 1882, called from Senator Riddleberger, the patron of the act in the 
 Virginia legislature of that year. The century debt called 2-3’s, because 
 it paid two per cent. the first ten years, is what remains of the funded 
 debt of 1892, called “‘Century,’’ because the new bonds were payable in 
 1992, a hundred years after date. The Riddleberger bonds bore three 
 per cent. and are payable in fifty years, or in 1932. The school and col- 
 lege certificates which are non-transferable, pay the original interest that 
 the old bonds, for which they were issued paid. The reason being that 
 the schools and colleges needed the higher rate of interest originally 
 paid to maintain themselves, a view which received the sanction of the 
 Debt Commission of 1892, as it had received the sanction of the authors 
 of the settlement of 1882. 
 
 Bear in mind, that the public debt of which I have spoken, has no 
 relation to, and does not affect the question of the West Virginia settle- 
 ment, about which we read so much in recent years. After the Civil 
 War in 1866, the interest on the public debt, which had been accumulat- 
 ing, was funded into principal, and about six millions of new debt added. 
 Interest was again funded into principal in 1871, and by the act known 
 as the consolidated debt act, an act which was the death of so many 
 political reputations—it was declared in round numbers that the public 
 debt of Virginia was about $45,000,000, and that as West Virginia had 
 gone off with a good part of the assets of the old Commonwealth and 
 should bear her part of the debt as she had promised to do on the face 
 of her first Constitution, West Virginia should take $15,000,000 as her 
 part of the debt, and Virginia should take $30,000,000 as her part. 
 
 This act was the Iliad of many of our woes. The $30,000,000 which 
 Virginia assumed was to bear interest at six per cent., making an annual 
 interest charge ef $1,800,000 per annum, when the total revenue of the 
 Commonwealth, taxed to ‘its utmost, with a new school system to begin, 
 was less than $2, 800,000. This annual interest charge, which left less 
 than $1,000,000 to meet the total demands of the State which had been 
 prostrated and dismembered was made tax receivable, and the coupons 
 
13 
 
 bore the fact upon their face. No criticism is intended for those gal- 
 lant souls who in order to maintain the credit of the State, attempted 
 the impossible. At the present time it takes about ten per cent of the 
 ‘State’s gross revenue to pay the interest and sinking fund upon the 
 public debt. In 1871, the legislature of Virginia devoted nearly sixty-five 
 per cent. of such gross revenue. 
 
 In 1879 the McCullough bill was passed, which proposed to reduce 
 the rate of interest to three per cent. for ten years, four per cent. for 
 twenty years, and five per cent. for ten years. The bonds were called 
 Ten-forties. This act retained the tax receivable feature. It was in- 
 effective. 
 
 In 1882 the Riddleberger bill was passed, which scaled the debt to 
 about $21,000,000, fixed the rate of interest at three per cent., and aban- 
 doned the tax receivable coupon feature. Under this act about $9,000,000 
 of the debt were funded, and for ten years the courts, State and federal, 
 were busy with litigation opposing, and defending the State’s action. 
 
 In 1892 the century settlement was made and affirmed by the Gen- 
 eral Assembly. This act which in the suit of Virginia v. West Virginia 
 has been declared to be a full and complete settlement between the 
 parties was in effect, as follows: 
 
 (1). The Riddleberger bonds already funded to stand and bear 
 three per cent. 
 
 (2). The rest of the old debt to be treated about on this plan: 
 for every twenty-eight bonds surrendered of the former issues, after 
 cutting off one-third for West Virginia, if not already done, there was to 
 be an issue of nineteen new bonds to bear two per cent. for ten years 
 and three per cent. for ninety years—the tax receivable feature of the 
 coupons to be eliminated, and such bonds to be free of taxes. 
 
 The Riddleberger act and all other funding acts were at the same 
 time repealed, and a sinking fund was established to begin in the year 
 1910, fixed at about $120,000 a year, until 1930, and to be about $240,000 
 per annum for the rest of the period that the bonds had to run. 
 
 Between October 1, 1893, and October 1, 1918, a period of twenty- 
 five years, the public debt has been reduced $7,202,034.37 from $30,339,- 
 639.32 to $23,137,604.95, and is being reduced more rapidly each year, 
 as in addition to the Sinking Fund already mentioned, as about $120,000 
 per annum, the State has applied to such Sinking Fund, interest on the 
 holdings of the Richmond, Fredericksburg and Potomac Railroad, which 
 amounts annually to about $79,000 per annum, an increase of fifty per 
 cent. within the last four years, and since 1906 has allowed the Board 
 of Sinking Fund Commissioners to collect interest upon the bonds bought 
 for the Sinking Fund, and which amount to about $70,500 per annum. 
 Such cancelled bonds are no part of the public debt and not included 
 thercin. With these three items, the Board of Sinking Fund Commis- 
 sioners, which consist of the Auditor of Public Accounts, the Treasurer 
 and the Second Auditor, have bought the State’s bonds on the open 
 market and throughout the period of the war have maintained the credit 
 of the State, and the stability of her securities. The century bonds are 
 selling around .80, and the Riddleberger around .88—the difference being 
 due to the fact, it is said, that the last named mature and will be payable 
 at par in thirteen years. No one can tell but by that time both issues 
 may Le at par. Last year the public debt was reduced $331,217, of which 
 $158,617 were century bonds, and $172,600 were Riddleberger bonds. 
 | . Of the public debt mentioned in the beginning of this address the 
 Literary Fund held as of October 1, 1918, $2,095,727.28, of which 
 $515,800 are century bonds, and $1,579,927.28 are Riddleberger bonds. 
 
 The Retired Teachers’ Fund held October, 1918, $95,1000, of which 
 $85,700 are century bonds, and $9,400 are Riddleberger bonds. 
 
 There were in the hands of the public, October 1, 1918, $18,027,- 
 690.15, of which $14,353,163.27 were centuries and $3,674,526.88 were 
 Riddlebergers. rs 
 
14 
 
 The bonds held by the Literary Fund and Retired. Teachers’ Fund 
 bear interest and are a part of the debt; but it is. interesting to know 
 how much of the public debt is in the hands of the public as contra-dis- 
 tinguished from what is held by the Brahe boards. Hence the last 
 table mentioned. 
 
 In round numbers it takes $840,000 a year to pay the interest ‘on 
 the vublic debt, including the interest paid the Sinking Fund. already 
 mentioned. The registered debt interest is mailed in January and July 
 to the holders as shown by the books of the Second Auditor’s office; and 
 the coupon debt interest is paid upon presentation of the interest coupons 
 at such office. Nearly eighty-five per cent. of the Virginia Public Regis- 
 tered debt is held in Virginia. And by analogy an equal amount of the 
 coupon debt is thought to be so owned. About twenty per cent. of the 
 Riddleberger debt, and about thirty per cent. of the century debt:is in 
 coupon bonds. 
 
 The State is meeting her obligations with promptness and ease, and 
 the provision allowing fiduciaries who invest in her securities to be saved 
 harmless is wise and salutary. Though the rate of interest is only three 
 per cent., there are no taxes or levies imposable. 
 
 i have given this account of the public debt of Virginia eet you 
 may know what the present bonded debt is as a guide for future action. 
 That public debt was incurred for the purpose in the main of internal 
 improvements. The State used to subscribe to two-fifths of the stock 
 of such companies, and sell its bonds to provide, the money so subscrib- 
 taking the stock of the company. The public debt reported January 1, 
 1852, was $11,971,838.30. On January 1, 1861, as determined in the 
 suit of Virginia v. West Virginia, it was $338, 397, 07 2:32 53 
 ; So that in the nine years immediately preceding the secession of the 
 State the public debt was increased $21,925,234.52. 
 
 The question of a bond issue for roads resolves itself into the fol; 
 lowing propositions: 
 
 (a)... The ‘wisdom. of it. 
 
 (bob). The method of it. 
 
 The same difficulties are involved in considering the wisdom of 
 a bond issue for roads as are involved in any bond issue by the State; 
 and indeed are more or less related to the issue of bonds by corporations 
 and individuals. There was once a theory that a national debt was a 
 national benefit, based upon the idea that no people would overturn a 
 government and thereby lose the obligations which the government had 
 assumed. 
 
 The arguments for a bond issue are obvious: The present needs; the 
 benefits to the present generation with the burdens distributed through 
 the years, so that the future which shall receive these benefits shall pay 
 its part of the burdens. The arguments against a bond issue are equally 
 obvious, if not so potent. Why tax the future and impose a burden upon 
 posterity in which it has no voice? Why run the risk of imposing a debt 
 when there may be improvements and developments that may render such 
 outlay an extravagant undertaking? 
 
 The vital questions appear to be ‘‘How well will the money be ex- 
 pended?” “How well will the work be done?” “How well will the 
 work be maintained when done?’’ ‘‘Will the work when undertaken be for 
 the public good, or will it be used for private advancement?’’ In other 
 words “will the undertaking be efficiently executed?” 
 
 Fortunately for us, no one can question the integrity and ability 
 of our Highway Commission. Its institution has been a blessing to the 
 Commonwealth. Road- building has become a scientific proposition in 
 which road maintenance is an essential element. The powers of the 
 Commissioner are sometimes regarded with suspicion by the local au- 
 thority who thinks it can, and often. can do a certain work cheaper and 
 better at a certain point. Let it be remembered, however, that the com- 
 ing of the Highway Commission was the coming of the scientific method. 
 While Claiborne Mason might build a bridge before the engineers com- 
 
15 
 
 pleted the “‘drawing,’’ the experience of mankind shows “drawings” neces- 
 say. Even now clay is piled up in the autumn upon roads which should 
 be left untouched till spring, and a mulch of leaves keeps the road moist 
 that water may abide rather than escape from the road bed. 
 
 (b). The method of a bond issue for roads in Virginia is a difficult 
 one. Our Constitution makers remembered the troubles that Virginia 
 had zone through with reference to the public debt, and provided both in 
 the Constitution of 1869, and in that of 1902, that no debt should be 
 contracted by the State, except to meet casual deficits in the revenue, tc: 
 redeem a previous liability of the State, to suppress insurrection, repel 
 invasion, or defend the State in time of war. ; 
 
 Some have argued that the exception in the 185th section of the 
 State Constitution of 1902, providing ‘‘nor shall the State become a 
 party to, or become interested in any work of internal improvement, 
 except public roads,’’ took roads out of the prohibition above referred 
 to; but such a position cannot be maintained, as the two sections must 
 be read together, and the provision in the latter section has for its 
 object to prevent the State from becoming a party to any work of in- 
 ternal improvement, except public roads. 
 
 To change the provision of the Constitution will require a vote of two 
 successive legislatures, and a vote of the people. So it is evident that 
 about five years must elapse before there could be any bond issue for 
 roads. And of course such issue would depend upon the wishes of the 
 people as expressed by two legislatures, and by their own voice. The 
 Constitution of Virginia has, as you see, some similarity to that of the 
 Medes and Persians. It changes not, until the people twice, by their 
 agents, the legislatures, and once by their majestic selves, have voted 
 therefor. 
 
 I think I have completed my part of the discussion, as it was sub- 
 mitted to me, with reference to the issue of State bonds for the con- 
 struction of the Highway System. 
 
 In spite of all the demands made by the great war, Virginia has 
 advanced her Highway System. She has attempted great things, and 
 accomplished much. In a free country where every citizen has the right 
 to express an opinion on any public question, it is always difficult to 
 establish a new system of any sort. Localities differ among themselves 
 as to the proper place for the highways. Self interest, often prevails 
 over the public interest, and selfishness over public spirit. Men away 
 from the highways as defined, feel themselves neglected. Communities 
 isolated, think themselves badly treated. Yet with such difficulties the 
 legislature of Virginia has not hesitated to grapple. With a strong 
 body of men who made a study of the question, and who had at all times 
 the aid of the Highway Commissioner, a proposition was submitted and 
 accepted, and laid before the people of Virginia for consideration. 
 
 Errors of detail may have crept in; but the study of the map shows 
 a wonderful plan—-a system. 
 
 When Rome ruled the world, from the mile stone in the forum 
 there ran a system of highways into every country which she governed. 
 Many of these roads survive as in the days when Caesar led his legions 
 in Gaul. Many of these roads have been destroyed in the late war. The 
 road is as typical of civilization as the school is. Hach is essential. Hach 
 needs constant care. Let this representative body of Virginians support 
 the Highway System. Let the hog wallow statesemen weep and lament 
 the days when a ten-foot lane with mud up to a mule’s belly, which his 
 influence had run on three sides of his plantation was his ideal of demo- 
 cratic liberty; but let a broad, well graded, well kept highway run 
 through his gravel fields, so that the school children and commerce-bear- 
 ing vehicles, and mail carriers and country neighbors and city friends, 
 and all the elements of society which make a happy land may pass and 
 repass, and the salutation ‘‘A pleasant day this”: shall, as in France, 
 mean, “A pleasant journey this.’’ 
 
 ROSEWELL PAGE. 
 

 

 

 
 
 
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