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at this time I would earnestly recommend that immediate action be taken by the Legislature in making this emergency appropriation, as the payrolls for the day labor camps and the general office payrolls will be due and payable on the 15th of this month, and unless provision is made to meet these payrolls by the 15th it will be necessary to close down all day labor camps and we would be unable to pay off the men.'

Respectfully yours,

GEO. W. P. HUNT,

Governor."

ARIZONA HIGHWAY DEPARTMENT.

Phoenix, Arizona.

January 12, 1923.

Dear Sir:

Attached hereto please find report of the financial condition of the State Highway Department as of January 11, 1923, and also copy of letter to me from Mr. Thomas Maddock, former State Engineer, dated December 30, 1922, in which he enclosed a list of funds available for 1923, copy of which is also attached.

The State at the present time is carrying on construction work both by contract and by day labor, Section 1 of the report attached shows the estimated cost to carry on the work under contract only to July 1, 1923.

Section 2 of the report shows the estimated cost of carrying on the work under both contract and day labor to July 1.

Section 3 of the report shows the estimated cost for January, including loss incident to closing day labor camps, and shipping equipment to Phoenix February 1.

Section 4 of the report shows the emergency appropriation necessary to carry on the work until March 1, 1923.

Owing to the fact that our funds are entirely exhausted at this time I would earnestly recommend that immediate action be taken by the legislature in making this emergency appropriation, as the payrolls for the day labor camps and the general office payrolls will be due and payable on the 15th of this month, and unless provision is made to meet these payrolls by the 15th it will be necessary to close down all day labor camps and we would be unable to pay off the men.

In the second paragraph of Mr. Maddock's letter above mentioned, in which he refers to the attached list of funds, he states:

'Items 1 to 9, inclusive, should provide some $840,000 cash during the next 60 to 70 days. Items 10 to 16 should provide an additional $600,000 of ready funds.'

I find in items 1 to 9 only $565,291.74 which I consider can be relied upon to be available within 60 days, as follows:

25% fund on hand January 1.....

Federal aid received to January 4:

Deposit to 25% Fund

-$108,888.91

47,017.83

Estimated Federal aid to be received to March 1.. 200,000.00

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We find that all projects listed under item 8 are not completed. In items 10 to 16 I find the following available to July 1:

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The above amounts are for specified projects only.

In the next to last paragraph of Mr. Maddock's schedule, the $2,016,000 Federal aid, I take it, is the Federal aid now requested on the projects shown in Section 1 and 2 of my report.

The $723,701.69 shown in the paragraph of Mr. Maddock's schedule is Forest Highway Funds which are expended entirely by the United States Bureau of Public Roads, and over which expenditure the State has no control, as I understand it.

Relative to the paragraph in Mr. Maddock's letter with reference to increasing the imprest fund from $50,000 to $150,000, the records and the operation of the Department clearly evidence the necessity of this increase, and I would earnestly recommend that same be made.

Yours respectfully,
F. R. GOODMAN,
State Engineer.

To Hon. G. W. P. Hunt,
Governor of Arizona,

Phoenix, Arizona."

"Mr. Frank R. Goodman,

Phoenix, Arizona.

Dear Sir:

Attached please note a list of funds available for 1923 State road construction.

Items 1 to 9, inclusive, should provide some $840,000 cash during the next 60 to 70 days. Items 10 to 16, inclusive, should provide an additional $600,000 of ready funds.

During the last 30 days we have cleared up all the old accounts that could possibly be handled, so that $250,000 will probably more than cover all the outstanding accounts

at the present time, including payments for labor and supplies, and estimates due contractor, etc., including road work done during December.

Our monthly expenditures are approximately $250,000. The State Imprest Fund is $50,000 but $150,000 is really needed for this purpose.

We average between $300,000 and $400,000 in Federal vouchers in transit. The temporary carrying of both the State and Federal road expenditures is a very difficult financial problem.

All of the Federal Aid allotted to Arizona has been applied for. In addition modified project agreements can be submitted July first, 1923, on projects 64 to 74, inclusive, raising the FEDERAL participation from 25 to 61, which will take up two-thirds of the Federal Aid already authorized by Congress, which will be available on the date.

Complete inventories are being submitted of office, laboratory, shops, warehouses, yards, also construction camps, etc. The material, equipment, supplies, etc., assets of the Department, are worth approximately $3,000.000.

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Automobile Fees for 1923, approximately

250,000.00

Due from Counties, Cities, Salt River Valley
Water Users' Association, etc., for equip-

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Pledged from Apache County Highway Com mission on St. Johns-Springville, etc....... Pledged from Coconino County Highway Commission on Flagstaff-Winslow

100,000.00

15,000.00

Pledged from Graham County Highway Commission on paving program

135,000.00

Pledged from Maricopa County Highway Com-
mission on Marinette-Wickenburs
Balance available in Maricopa County accord-

ing to Highway Commission and Board of Supervisors for paving East of Mesa 4 miles, North of Marinette 4 miles, Buckeye to Hassayampa 9 miles, and construction Hassayampa to Yuma Line Yavapai County on Wickenburg-White Spar, Prescott-Ash Fork agreement

165,000.00

375,000.00

210,000,00

Yuma County balance for extension of Aztec

to County line 7 miles

July 1st 25%, $87,500% this calendar year....

July 1st 75%, $262,5001⁄2 this calendar year..

Federal funds to match above at maximum

ratio of 61 to 39% already authorized and

applied for

Federal funds authorized by Congress, avail-
able July 1st, 1923

B. P. R. Estimate Forest Aid Flagstaff-Angel....
B. P. R. Estimate Forest Aid Prescott-White
Spar, approximately

912,600.00

273,701.69

450,000.00

Project.

F. A. Florence-Superior Sec. F

F. A. Geronimo-Solomonville

F. A. Holbrook-St. John-5

F. A. Holbrook-Winslow Sec. 1, 2, 3 and 4..

Phoenix-Yuma, Arlington Bridge.

F. A. Phoenix-Yuma

F. A. Prescott-Ashfork (61)

F. A. Winslow Paving

F. A. Yuma-Phoenix, Wellton-Aztec

Rio Puerco Bridge (Holbrook-Lupton).
F. A. Nogales Fairbanks-Patagonia Bridge
F. A. St. Johns-Springville

Holbrook-Lupton Bridge
Allentown Bridge

Apache Trail Bridges

F. A. Prescott-Jerome

F. A. Mesa-Superior (Black Top)

F. A. Geronimo-Solomonville 63

Geronimo-Solomonville, Mathews Wash to Central.

F. A. Prescott-Ashfork (62)

Total

Est. maintenance to July 1st

Est. General Office and Engineering to July 1, 1923.

75% Fund

Senate Bill 51

FUNDS AVAILABLE.

Auto Tax, estimated

Rent of equipment due

Gasoline Tax, estimated

Federal Aid, estimated to July 1st

Federal Aid, Eng. and Conting, estimated

Apache County Pledge

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