bond issues. New bridges on the State System of roads, are con-
structed from proceeds of the Construction funds.

In twenty of the twenty-three counties of the State, the State Roads
Commission of Maryland has been delegated the authority of perform-
ing all necessary functions in connection with the maintenance of
County Systems of Roads and Bridges. The cost of maintenance of the
County Systems of Roads and Bridges is charged to those funds allot-
ted to the counties and administered by the Commission for use of the
respective counties (Chapter 426, 1933, Chapter 465, 1935).

The cost of maintaining all existing roads and bridges on the State
System, first is reserved and deducted from the net income derived from
automobile license fees imposed and collected by the Commissioner of
Motor Vehicles and remitted to this Commission, together with the
net revenue derived from the two-cent (2c) gasoline tax set over to the
use of this Commission. After deducting the cost of maintenance of
the State System from the combined total receipts of the Commis-
sioner of Motor Vehicles and the two-cent (2c) gasoline tax received
by this Commission, the remainder of such fund is expended, for proj-
ects of reconstruction, betterments, and additions to the entire system,
or for costs of construction of new projects including those projects
constructed by Federal Aid funds, fifty per cent. (50%) of costs
being contributed by the Commission. Grade crossings are eliminated
by the expenditure of funds coming into the hands of this Commission
from the one-half-cent (1/2 c) gasoline tax, together with the contribu-
tion by the Railroad company.

The Commission, in 1934, issued the first of its series of Deben-
tures. The total authorized issue was $4,000,000.00 (Chapter 463,
1933), and an additional issue of $3,000,000.00 was authorized at the
Session of the General Assembly in 1935 (Chapter 563, 1935). The
proceeds of the sales of these bonds were used in conjunction with
Federal funds made available to Maryland under the National Indus-
trial Recovery Act.Public Works Administration, and used to con-
struct new roads and bridges on the State System of Highways.

During the fiscal year ended September 30, 19S5, the receipts of
the Commission, from all sources, were $14,497,470.81, and the expend-
itures $13,946,686.60. The expenditure of this sum was made for
the following purposes:

Maintenance of County System of Roads $ 1,009,013.18
Payments to Counties for Debt Service on Road Bonds 609,941.42
Construction of Roads and other Projects in Counties 3,158,085.37
Cash payments to Baltimore City, being 30% of the one
and one-half cent (1 1/2 c) Lateral Gasoline Tax and
Refunds to "Incorporated Towns," and Truck Li-
cense Fees and Franchise Taxes 976,245.11
Appropriations to Ferry Companies 33,600.00

Total disbursements for Counties and for Baltimore
City, from Lateral Gasoline Tax, County Bond
Issues, and Federal Revenue .. $ 5,786,885.08
Elimination of Grade Crossings 97,817.99
Reconstruction, Betterments, and Addition 3,110,019.37
Ocean City Protective Fund . 9,200.93
Roadside Beautification 5,232.58
Maintenance of entire State Roads System 1,886,882.64
Net cost of Asset acquisitions, after deducting deprecia-
tion thereon, chargeable to projects 357,823.09
Materials and Supplies - .. 31,574.10
Federal Funds Construction - 1,442,185.28
Bond Interest Paid - 154,600.00