1 Transfer to State General Fund from gas tax for cost of collection. To M. V. Department for cost of operation.

NOTE.-Generally, these data are for the 1941 calendar year. Because of lags in time and because of changing balances in the various funds through which the moneys pass, totaling the disposition of these funds will not exactly equal the motorist's contribution. Although not exact this table traces the motorist's contributions quite accurately.

1 There was no information immediately available concerning the collection of these taxes.

2 First sale of Federal Motor Use stamps was in February 1942.

8 Transfer to State General Fund from gas tax for cost of collection.

4 To M. V. Department for cost of operation.

North Dakota is not as favorably situated on a matching basis as many other States in the Union. Of the 22 States lying west of the Mississippi River, 13 States have a more favorable matching basis than North Dakota. This is due to the amount of Federal lands located within these States. Of the 9 States, including North Dakota, having a 50-50 matching basis, 8 of them are much better financially situated than North Dakota and have an income from more diversified sources. As stated before, North Dakota's income is almost entirely from agriculture. These other 8 States include such highly industrialized and otherwise diversified States as Texas, Minnesota, Missouri, Iowa, and so forth. The matching basis of the 13 States which get better than 50-50 ratio runs all the way from 53 to 87 percent Federal funds. This does not give the complete picture of the matching basis either, as naturally these States which have a low matching ratio contain considerable Federal lands and of course, all construction on these federally owned lands is done 100 percent by the Federal Government.

Sliding-scale rates of Federal-aid participation in public-land States, as provided in sec. 11 of the Federal Highway Act, effective Feb. 1, 1940

1 Area data furnished by Department of the Interior in letters dated Nov. 1, 1939, and Dec. 12, 1939. 2 Does not qualify less than 0.0500.

A survey of the cost of construction on the North Dakota State highway system, to bring it to a modern and needed standard, shows that on the primary system, alone, consisting of 4,010 miles, 2,642 miles are obsolete or deficient in some respect and should be reconstructed. The total estimated cost of the reconstruction of these 2,642 miles is $86,584,000. In addition to the 4,010 miles comprising the primary system the North Dakota Highway Department has under its jurisdiction 3,200 miles of secondary highways, practically all of which are in need of construction or reconstruction. This is estimated to cost $65,000,000. Thus the cost of modernizing or bringing our entire State highway system to a necessary standard of safety and utility would be in excess of $150,000,000. Well over 2,000 miles of the roads on our primary system are from 10 to 20 years old, as well as 1,800 miles of our Federalaid secondary system. These roads were constructed at a time when the need for handling the present highway loads was unthought of. It would, therefore, seem obvious that North Dakota is greatly in need of the funds that would accrue to it from the enactment of H. R. 2426 and S. 971.

North Dakota State primary highway mileage, Jan. 1, 1944

Federal-aid secondary highway mileage on State highway system, Jan. 1, 1944

Tabulation of mileage on State primary system in need of reconstruction, North Dakota State highway department

Our State would be wholly unable to match any appreciable amount of Federal money on any matching ratio larger than a 25 percent contribution by the State. North Dakota has had great difficulty in past years in matching regular Federal aid. For several years this difficulty was recognized by Congress and the Public Roads Administration. Federal aid was therefore made available to North Dakota in those years on a 100 percent Federal basis. If a 25 percent or less contribution is required of the State, North Dakota will undoubtedly make every effort to contribute its share of this matching money. However, if the ratio is higher than 25 percent it is very doubtful if North Dakota could match the Federal money in any sizable amount.

From all of the foregoing it is not to be inferred that North Dakota does not want to contribute its just share toward reconstruction of roads within the State. However, attention is called to the fact that traffic counts on trans-State roads in North Dakota show a very high percentage of interstate or trans-State traffic. Much of this traffic contributes very little to the upkeep of roads in North Dakota. State is willing to do everything within its power to do its share in constructing its roads and to participate in all other activities for the

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