very timely. During this last month I have had the opportunity of making an inspection of the Wayne County highways in connection with the survey made by the Chicago Regional Planning Association. We found that Wayne County is going into the three-lane type of construction to some extent. Mr. Hines, the President of the Wayne County Highway Commission, pointed out to us the great benefits of the three-lane traffic. Really it did not enter my mind at the time, and I did not hear any discussion on the possibilities of accidents. They have established widths of 20, 30 and 40, starting out with 20, and adding another 10 when the three-lane traffic is necessary. They so marked their highways to distinguish beyond question of doubt the three lanes. Chicago-rather Cook County and the other counties surrounding Chicago, which some day we are going to reach out and grab—are considering this matter very seriously at the present moment. It would seem to me that this should be given very careful thought. I fully agree with the remarks of Mr. Blanchard and Brown; I fully agree that it is dangerous. But apparently the Wayne County Highway Commission must have made a very careful study of this before they launched out into this particular system of highways. I am wondering if Professor Blanchard could give us any enlightenment on the reasons for their conclusions. No doubt the highways that he has passed over are some of the Wayne County highways. Most of the football players, you know, come from Chicago or Detroit. (Laughter.) MR. BLANCHARD: The question asked by Mr. Craig may be answered in a very few words. It is evident that a difference of opinion exists. Judging from the number of three-lane twoway roadways which have been constructed in Wayne County, it may be assumed that its Road Commission believes in the efficacy of this type of roadway. The speaker, on the other hand, has expressed the opinion that, as the middle lane may be designated as a traffic hazard and as its use constitutes a cause of accidents, the three-lane two-way roadway should not be used. By Chester E. Rightor, Chief Accountant, the Detroit Bureau of Governmental Research, Detroit, Mich. The report of the committee is confined primarily to finances, which of itself is an ambitious enough subject. A review of the Proceedings of the Society indicates that finances have not borne a very prominent part in the conferences and certainly they have not been over-emphasized. Importance of Public Finance As engineers engaged in various phases of governmental activity, we must concern ourselves more and more with public finances. Indeed, our interest is two-fold-first, in our official capacity, and second, as citizens and taxpayers. Failure to express our plans and work in terms of dollars and cents, whether through aversion to figures or merely through neglect, is a handicap to the engineer in public life. Instances are numerous of geniuses as producers and organizers who are wholly lacking in a practical business sense, based largely upon finances. To know how to read and interpret a balance sheet, an income statement, and a profit and loss account is no disgrace, and today in public life is being found more and more essential. War and post-war conditions have brought to the forefront governmental finances to an unusual degree. This interest has arisen primarily because of the tremendous increase in public expenditures and debt, and secondly because of the large number of people who, for the first time, through subscriptions to Liberty Loans, have become investors and holders of governmental securities. Prior to the World War, the Federal debt was slightly less than one billion dollars; today it is approximately 21 billions. Similarly, before 1924 our Federal expenses were slightly less than one billion dollars; expenditures now total over three billion dollars annually. Further, our states and cities have a total net indebtedness estimated at $10,500,000,000, or over $100 per capita, and are issuing bonds at the rate of about $1,500,000,000 annually. Expenditures of states and local governments (including cities, counties, school districts, etc.) are $4,300,000,000 each year. How are these large payments met? The national income is estimated at $65,000,000,000 per year. Accepting this figure, the Federal and local governments require somewhat over 10 per cent of the national income of every man, woman and child for their purposes. It might be added that the wealth of the nation is estimated at $320,000,000,000, of which approximately one-half is assessed for purposes of taxation. The foregoing statistics serve to indicate the relative importance of governmental activities as reflected in total figures for the nation. When comparisons with ten years, or even five years ago, are made, the growth of public services is clearly shown. Demands for Improvements It is equally manifest that the tendency of governmental activities is toward further expansion. Year by year the budgets of our states, cities and other local units increases, not only in total amounts but also in per capita expenditures. As the reports of the Census Bureau show, the expenditures are increasing at substantially faster pace than the population. This is a natural situation as respects governmental costs. These increases are the result, ordinarily, of popular demands, and so far as they truly represent the duty and opportunity of the city to function more adequately for the welfare of the community, the services must be undertaken. In a recent survey by the Detroit Bureau of Governmental Research, it was disclosed that the city of Detroit was rendering nearly 200 specific public services to its citizens. In 1900 that the city had 102 activities, at a cost of $3,500,000 in taxes; by 1910 the number had increased only to 114. Thus, during the last fifteen years the number had nearly doubled, with an increase in the tax budget from $7,000,000 to $56,000,000. Similarly, Wayne County, with Detroit as the county seat, reports sixty distinct services. Analysis in any city, while not attempted by your committee, would disclose a condition paralleling Detroit's. Federal vs. Local Governmental Costs President Coolidge has pointed out recently the reduced Federal expenditures and costs of government, and wins almost universal approval with his suggestion that states and city governments should follow the Federal example of economy and retrenchment. With all due deference to the President and Budget Director Lord, your committee believes that this Society should have a full and non-partisan understanding of the facts. Thinking groups of citizens everywhere must bear in mind the fundamental differences between the Federal and our local governments. The services to the individual by the Federal Government are indirect and remote; those of the state and local governments are more direct and intimate. It is believed by your committee to be wholly unreasonable to expect a reduction in cost of local government corresponding to that of the national government. It is true that, compared with war days, the present cost of the Federal Government is substantially lower; compared with pre-war days, however, the nation has a long way to go. Debt and interest payments by the Federal Government are reducing the total budget. For local units, the levies for debt service are increasing by the very nature of their material expansion and development. These facts were brought out forcefully by Governor Smith, of New York, at the Governors' Conference at Poland Spring, Maine, in June. In this connection it may be predicted that when Comptroller-General McCarl, who occupies a position of unsurpassed financial power, fortified by a 15-year term in his freedom from presidential and congressional pressure, really begins to function in his task of investigating the "application of public funds," drastic moves toward economy will result. The benefits of the Federal Budget and Accounting Act of 1921 are recognized. The President has a greater control over appropriation bills; estimates of appropriations are subject to as many as eight separate reviews before submission to Congress; appropriations may be correlated with the finances of the nation; and through the General Accounting office an independent audit of executive accounts is provided. Dr. Edward B. Rosa, when with the Bureau of Standards in 1921, made an exhaustive analysis of the government's finances, according to basic functions of protection, commercial, and development. He reported that, for 1917-1920, 93 per cent of the Federal expenses were for protection, war and the effects of war. Today, military functions cost approximately 80 per cent of the total Federal expenditures. This is a condition which does not permit of comparison with local governments. Demands upon the Federal Government are diminishing, except sporadically, while upon our local governments they are multiplying. Growth of City Government It is well to inquire into the causes for the expansion of city and local government. Invention and discovery have made for an intense congestion of population, which added to local governmental services as traffic control, street widenings, heavy pavements, fire protection, street lighting, water supply, etc. Higher standards of living compel cities to provide added educational facilities, maintain parks, etc. Increased humanitarianism prompts better prisons, care of the sick, playgrounds, etc. Scientific development compels the technical and expensive administration of public health, disposal of wastes, water supply, etc. Thus we find local government has had to spend more for schools, highways, protection of life and property, institutions, sanitation, etc. The present-day tendency is for a further demand for more and better governmental service, operation and regulation. In your respective fields of endeavor and your own city, each of you could cite numerous instances of such demands. Probably these are foremost in the educational field, but those services with which most of the membership of this Society are concerned are also affected by varying degrees. |