Page:Progress and Feasibility of Toll Roads and Their Relation to the Federal Aid Program.pdf/11

Rh Bonds amounting to $15 million were sold in 1946, at a net interest rate of 2.64 percent, to cover the estimated construction cost. Caught in a period of rising prices, however, the costs exceeded the estimates by a considerable amount and additional issues, one of $5 million and a second of $600,000, were sold to provide funds to complete the section.

When the road was opened, traffic volumes exceeded somewhat those estimated, but revenues at the toll rates originally scheduled proved to be inadequate to meet the higher costs. Eventually the tolls for passenger cars for the 47-mile trip were raised from 50 cents to 60 and later to 75 cents. Interestingly, the increase in the toll rates had no apparent effect on rate of traffic growth. Revenues have been ample to provide for all operating costs, necessary reserves, and interest charges. By the end of 1953, $806,000 of the $20,600,000 bond issues had been retired, an amount considerably less, however, than that provided by the sinking-fund schedule.

Nevertheless, prospects seemed to justify undertaking a 63-mile extension. The outstanding obligations of the original section were refinanced and combined with the financing of the second section. The bonds of the new issue sold at a net interest rate of 4.17 percent. Possibly significant in considering the prospects for future traffic on the original section is the fact that traffic volumes on U.S. 1 have already regained the level at which they stood at the time the turnpike was opened. It is reasonable to expect that as traffic in the area increases an increasing proportion of the new traffic will be attracted to the turnpike.

The Maine Turnpike is unique in several respects. It was the first modern turnpike to be financed without Federal assistance, and the first to be financed wholly with bonds secured only by the future earnings of the facility. As in the case of the Pennsylvania Turnpike, it possesses certain special features, although they are quite different from those that take the Pennsylvania Turnpike out of the “average” category.

The Maine Turnpike parallels U.S. 1, at a distance several miles inland. Both routes traverse and lead into areas of great attraction to summer vacationists. Consequently, turnpike traffic is predominantly a summer traffic, and is largely composed of vehicles carrying people who, because they are vacationing, were expected by many to be more willing to pay toll than those who drive for business or similar purposes.

Studies conducted by the Bureau of Public Roads in cooperation with the Maine Turnpike Commission and the Maine State Highway Commission reveal that drivers on vacation trips do use the turnpike in greater proportion than do those on business or similar trips. The studies also show, however, that drivers on long trips use the turnpike in greater proportion than those on shorter trips and that the proportion of those using it increases as the frequency of trips decreases.

Since vacation trips are usually long and infrequent, it is not possible to determine whether it is the purpose, the length, or the frequency of the trip that influences the driver most as to whether he will or will not use the toll road. Studies on other roads, however, lead to the belief that the length is probably a more important factor in the decision than the purpose. In any event, the fact that the Maine Turnpike is used to such a great extent for summer recreational