ined as federal aid may be employed for the engineering
and inspection costs on federal aid roads. The above mentioned funds
are required to maintain the state highway department. In addition,
the departments have supervision of the expenditures of construction
funds which can be used for road construction and maintenance, and may
not be expended for salaries or other overhead expense.

In a number of states, automobile license fees are set aside for
financing road construction and maintenance, and the work paid for
from the fees is carried out under the supervision of the state
highway department.

In a number of instances, state bonds have been issued for road
construction, and the expenditure of the proceeds of the sale of road
bonds has usually been supervised by the state highway department.

All federal aid funds allotted to a state must be expended under the
direction of the state highway department.

=Federal Administration.=--Federal authority in highway work is vested
in the Bureau of Public Roads of the United States Department of
Agriculture. The official head is the Secretary of Agriculture, but
the administrative head is the Director of the Bureau. In this Bureau
are the various instrumentalities needed for carrying on
investigations and furnishing information to the various states on
highway subjects. The Bureau also supervises the construction of
federal aid roads in a general way through district engineers, each
of whom looks after the work in several states.

Funds for the support of the Bureau of Public Roads are obtained from
congressional appropriations to the Department of Agriculture and from
a percentage of the funds appropriated for federal aid.

Federal aid is money appropriated by Congress to be distributed to the
various states to stimulate road construction. It is granted to the
states on the condition that the states will expend at least an equal
amount on the projects involved. The states in turn usually give a
suitable part of the state allotment to each county. There are various
limitations as to the amount of federal aid per mile of road and the
type of construction that may be employed, but these are matters of
regulation that change from time to time.

It will be seen that each of the administrative authorities, except
the Bureau of Public Roads, is to some extent subservient to a higher
authority, and the Bureau of Public Roads is supervised by the United
States Congress. Con