It is estimated that three-fourths of the population of the United
States is so located with respect to the Nation's Capital, that this
large number of citizens of the country is compelled to pass through
the State of Maryland to reach Washington.

The General Assembly, at its Session of 1937, authorized the State
Roads Commission of Maryland to formulate a comprehensive plan
for the construction of bridges over rivers and navigable waters, and
authorized the issuance of Revenue Bonds of the State, through
the State Roads Commission, and the collection of tolls for the pay-
ment of such bonds and the interest thereon.

By an Act of Congress, passed in April, 1938, the State of Mary-
land was authorized to construct, maintain, and operate a bridge
across the Susquehanna River, from a point in Cecil County, at or
near Perryville, to a point approximately opposite in Harford County,
at or near Harve de Grace; and a bridge across the Potomac River,
from a point in Charles County, at or near Ludlow's Ferry, to a point
approximately opposite, in the State of Virginia, near Dahlgren and
Colonial Beach.

In May of 1938, the State Roads Commission engaged the services
of Coverdale and Colpitts, Consulting Engineers, New York City, to
prepare a traffic survey and report in connection with the determin-
ation of prospective revenue from tolls. At the same time, they en-
gaged the services of J. E. Greiner Company, Consulting Engineers,
Baltimore, Maryland, to prepare an engineering report and later to
perform engineering services in connection with the construction of
the two bridges.

In October, 1938, the State Roads Commission petitioned the United
States of America, through the Public Works Administration, to
allot approximately 45% Federal Funds to assist in the construction
of the Susquehanna River Bridge and Potomac River Bridge. The
Grant of funds by the United States of America was approved.

In order to provide funds required by the State for construction of
the bridges, the State Roads Commission, at October 1, 1938, sold
and issued $6,000,000 of State of Maryland Bridge Revenue 3 3/4 %
Bonds, Series A, secured by a Trust Indenture given to Safe Deposit
and Trust Company of Baltimore, Trustee.

The work of constructing the Susquehanna River Bridge was begun
on December 5, 1938, and the bridge was formally opened to traffic
and began the collection of tolls on August 28, 1940. The work of
constructing the Potomac River Bridge was begun December 27, 1938,
and it was completed and opened to traffic and the collection of tolls
begun on December 14, 1940.

Because the joint income from the Susquehanna River Bridge tolls
and the Potomac River Bridge tolls exceeded the estimated traffic
and revenues, the Commission at June 1, 1941, called for redemption
$6,000,000 of State of Maryland Bridge Revenue 3 3/4% Bonds, and
issued $6,000,000 State of Maryland Bridge Revenue Refunding Bonds,
at a net interest cost of 2.08%.

The initial toll rates established and applying to traffic transactions
on the Susquehanna River Bridge, were greatly reduced at February
1, 1941, and special commutation rates were placed in effect so as to
benefit the frequent users of the Susquehanna River Bridge.

SUSQUEHANNA RIVER TOLL BRIDGE

The Susquehanna River Bridge is an essential part of the modern
dual highway, United States Route No. 40, between the City of Bal-
timore and the Delaware State Line, the dual highway having been