In handling its construction work direct, however, the Department has the advantage of not being required to make a profit on the work, neither has it to pay interest on the necessary moneys to carry payrolls and other incidentals, neither is there any loss in retained percentage. The State does not have to carry a construction bond and, in fact, there are many reasons why a state should handle its construction direct, cheaper than by contract. There is much to be said on both sides of the question, but the Department at this time does not believe that it is justified in attempting to handle all of the State work, believing that only under certain conditions where the State does not receive reasonable bids the work should be handled direct. The State Highway Department has many large construction jobs under contract at one time, and it is obvious, even to the layman, that an organization to handle all of this work with State forces is impossible under the present laws of the State of Oregon, and the Department recommends that force account be limited to such cases as are mentioned above and work for which the quantities and cost can not be closely estimated in advance of construction, such as maintenance work and light grading. STATE HIGHWAY FUNDS The funds at the disposal of the Highway Department are divided as follows: * * * * * =The State Highway Fund= provides for one-quarter mill tax on the assessed valuation of the State. This fund amounted to $219,690.98 in 1917; $232,151.39 in 1918 and in 1919 will equal $246,883.47. The money available in this fund provides a sufficient sum for the salaries and expenses of the State Highway Department, and the cost of maintaining State highways which have been constructed or improved. It is provided also, that with the proceeds of this fund, the Commission may enter into co-operative agreements with any County for the survey, construction, improvement or maintenance of any State highway upon such basis or contribution as may be agreed upon. The Bridge Department is maintained out of this fund and furnishes designs for structures desired by the counties. * * * * *