viously applied, will be available to the Counties, Baltimore
City and the State Roads Commission for road construction,
betterment, and additions, from the State Funds.

Federal Appropriations to the State Roads Commission for new con-
struction, during 1939 and 1940, will be less than the appropriations
made in previous years.

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 Com-
missioner of Motor Vehicles and remitted to the State Comptroller for
the use of this Commission, together with the net revenue derived
from the two cent (2c gasoline tax set over to the use of this Com-
mission. After deducting the cost of maintenance of the State Sys-
tem from the combined total receipts of the Commissioner of Motor
Vehicles and the two cent (2c) gasoline tax received by this Com-
mission, the remainder of such fund is expended for projects 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 percent. (60%) of coats
being contributed by the Commission. Funds for Grade Crossing
Eliminations are provided by the one-half cent (1/2 c) gasoline Tax,
together with contributions by the Railroad Companies and from
special Federal Appropriations.

The Commission in 1934, issued the first of its series of Debentures.
The total authorized issue was $4,000,000 (Chapter 463, 1933), and
an additional issue of $3,000,000 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 Industrial
Recovery Act..Public Works Administration, and used to construct
new roads and bridges on the State System of Highways.

During the fiscal year ended September 30, 1940, the receipts of
the Commission, from all sources, were $14,555,354.97, and the ex-
penditures, $13,063,504.33. The details or receipts and the sources
from which they were derived:

From the Commissioner of Motor Vehicles, including

Truck License Fees and Franchise Taxes ........... $3,371,775..39
Two Cent (2c) Gasoline Tax, State Roads Commission's
distributive Share, including .0014 of the Tax. . .... 4,048,929.43

One and one-half Cent (1 1/2 c) Lateral Gasoline Tax,
State Roads Commission's distributive share, for use
of the Counties. .................................. 2,912,490.81

One and one-half Cent (1 1/2 c) Lateral Gasoline Tax,
Baltimore City's distributive share. ............... 1,261,084.84

One-half Cent (^) Grade Elimination Tax. ......... 1,123,060.14
Proceeds of State Bonds used for Flood Relief. ....... 42,333.63

Proceeds of County Bonds and Advancements by
counties ....................................... 85,742.57

Receipts on account of Federal Appropriations, in-
cluding Grants.................................. 1,444,729.46

Receipts from the State of West Virginia, being their
share of Bridge Construction.................... 25,221.47