Revenue in advance for franchises to be secured by nonnegotiable bonds to be used by franchise purchaser to pay his yearly percentage, bonds to be interest bearing Corporate setup, should be a nonprofit organization, with seven or more trustees as directors of entire procedure to complete the United States Monumental Highways. The board of trustees of the United States Monumental Highways shall appoint officers and directors in each State as outlined: Section 1. Board of directors The business of the United States Monumental Highways shall be managed in each State by a board of directors. Section 2. Quorum A majority of the authorized number of members of the board of directors shall constitute a quorum for the transaction of business and the act of a majority of the directors present at any meeting at which there is a quorum, when duly assembled, is valid provided that a majority of the directors, in the absence of a quorum, may adjourn from day to day but may not transact other business. Section 3. Term of directors The directors shall serve 1 year and until their successors have been appointed and qualified. Their term of office shall begin immediately after election or appointment by the trustees. Section 4. Vacancies Vacancies on the board of directors shall be filled by the board of trustees, and such person or persons shall hold office for the unexpired term or terms, to be filled, and until their successors have been appointed and qualified. Section 5. Power of directors The directors shall have the power to: (a) Call special meetings of the directors when they deem it necessary, at any time, upon the written request of one-third of the members. (b) To appoint or remove, at pleasure, all agents and employees, prescribe their duties, fix their compensation, and require from them security for faithful performance. (c) To conduct, manage, and control the affairs and business of the United States Monumental Highway in their respective States, and to make rules and regulations, not inconsistent with constitutional rights, Federal laws as set forth provided in and by the Constitution of the United Sates of America. (d) To establish such departments and official positions as they deem advisable and necessary and to provide for such salaries and compensations as they deem advisable. (e) The board of directors shall have full authority to act in all matters and things as to them may seem best, and they may delegate such authority to departments, department heads, committees, and individuals as they may deem advisable, having full power of appointment and removal, substitution and subrogation, all, of course, in conformity to the general and special plans and methods of procedure that the board of trustees may decree, it being specifically provided that the board of trustees should constitute the basic and final authority and control at all times. Section 6. Removal of directors The board of trustees shall have and possess the right and authority to remove any and all members of the board of directors for cause, that is to say, if any member of the board of directors shall prove disloyal to the United States Monumental Highway; if he shall fail or neglect to act in conformity to the established or directed will of the board of trustees; if he shall do any act or things regarded as detrimental to the best interests of the United States Monumental Highway, or if he shall so conduct himself as to meet with disapproval of the board of trustees at a meeting called for the purpose of passing on such a matter, and at which meeting the director or directors involved may be present and entitled to be heard; however, the will of the board of trustees shall be final. Section 7. General duties It shall be the duties of the directors: (a) To cause to be kept a complete record of all their minutes and acts and proceedings, and present by mail a full statement the third Wednesday in each month to the board of trustees, showing in detail the assets and liabilities of the United States Monumental Highway in their respective States, the general condition of affairs, and such other information as may be desired by the board of trustees. (b) To supervise all officers, agents, and employees, and see that their duties are properly performed in accordance with the directions of the board of trustees. (c) To enter into contracts and agreements with corporations and individuals to same extent as could a private individual in conformity to these bylaws, constitutional rights, Federal laws as set forth, provided in and by the Constitution of the United States of America, and the authority in them vested by the trustees of the United States Monumental Highway, deemed necessary or expedient in the premises. Section 8. Regular meetings Regular meetings of the board of directors shall be held on the 4th day of each month at the hour of 10 a. m. If any of said dates fall on a Sunday or legal holiday, such meeting shall be held on the next succeeding business day thereafter. No notice need be given of such regular monthly meetings. Section 1. Officers OFFICERS OF THE BOARD OF DIRECTORS The officers shall be a chairman, vice chairman, who shall also be the State coordinator, a secretary, and a treasurer, which 2 officers shall be appointed and hold office at the pleasure of the board of directors, but always in conformity to the final control of the trustees. The compensation of all officers of the directors shall be fixed and determined by the board of directors, and the board may appoint such officers as it may deem necessary, all, of course, subject to the general and special instructions of the trustees. Section 2. Chairman The chairman of the board of directors shall preside over all meetings of the board. He shall sign as chairman of his respective State, all contracts and other instruments in writing which have first been approved by the board of directors, and shall countersign all checks drawn on the treasurer. No officer or person of the United States Monumental Highways shall be authorized or empowered to create any obligation against the United States Monumental Highways without the general or special approval of the board of trustees, and no promises or statements shall be made by any officer or person that is binding on the United States Monumental Highways or the trustees thereof until and unless the same has been approved by the trustees' general counsel. Section 3. Vice Chairman The vice chairman, who shall be State coordinator, shall, in the absence or disability of the chairman, perform such other duties as the board may prescribe. As State coordinator, he shall act as between the United States Monumental Highways and with such corporations and individuals as may be deemed necessary or expedient to properly coordinate the various functions of the United States Monumental Highways in its transactions and operations throughout the various sections of the State to the end that the whole may be harmonized and work as a practical unit. The secretary's general duties shall be: (a) To keep a record of the proceedings of the board of directors. (b) He shall keep the State seal of the United States Monumental Highways, fill and countersign all necessary entries, and affix the State seal to all papers requiring same. (c) He shall keep proper account books and discharge such other duties as pertain to his office and as may be prescribed by the board of directors. (d) He shall serve all notice required, and in case of his disability or refusal or otherwise to serve, the board may direct such services by any other person, or unless the board so directs, the chairman shall direct the same. Section 5. Treasurer The treasurer shall receive and account for all the funds of the United States Monumental Highway and pay them out only on the checks of the United States Monumental Highways signed in the manner authorized by the board of directors. All money received shall at once be deposited in the designated bank to the credit of the United States Monumental Highways. Section 6. Other officers The board of directors, under such authority as may be granted unto them by the board of trustrees, may establish such additional and further offices and departments as they may deem for the best interests of the United States Monumental Highways, and which may include all of the following and additional ones: Engineering department with chief and assistants; executive committee; comptroller; supervisor of employment; legal department; office personnel manager; public relations; publicity department; auditing department; general manager; finance committee; educational department. Gentlemen, I have given this corporate setup outline to show that the United States Monumental Highways are free for service to keep our Nation free. Industry can, if it will, put on a system of roads that would be superior and cost less per mile for construction and maintenance, and increase National and State wealth and income in very large measure. Industry must not become engrossed in or engulfed by partisan political affrays. Government ownership is the weak link in our national armor. Industry must guard against any further Government ownership if the freedom of our Republic is to be maintained. The unmistakable trend to decentralization of industry would find fullest benefit. Every student of economics knows the really big centers of population have outlived their usefulness. Industry has kept abreast and met our needs as they arose, and has pioneered many innovations in time- and labor-saving devices. Volumes of congratulatory comments could not adequately express our debt of appreciation to these unsung industrial heroes. Their great vision and "know-how and doing it" of seeking new products and new methods which has built this land of opportunity. 1072 The launching of United States Monumental Highways would absorb uncounted millions of workers of all age brackets, of both sexes, of every degree of skill, of every race and creed. The benefits would extend to every corner of the Nation. Businessmen in all fields are interested in more business. New frontiers is the key for a perpetual economic security for the next century, with consumerspending dollars in circulation. Only then can dividends be earned through labor and invested capital and increased Federal taxes be paid. RIGHTS-OF-WAY By purchase, condemnation proceedings, or other lawful manner, the United States Monumental Highways is authorized to acquire tracts of land adjoining rights-of-way, and these tracts of land may be improved by the United States Monumental Highways and sold, leased, or otherwise disposed of, as will in the judgment of the trustees, best aid in the proper distribution and use of such avenues and in the most equitable administration. The redemption of the bonds held as security to assure the liquidation of the highway currency, and as provided by the United States Monumental Highways, is guaranteed from franchise revenues. Revenues received will be sufficient to retire bond issue for money designated as highway issue. Each State could and I am certain they would be forthcoming with rights-ofway in exchange for the concession to give the States better roads. The United States Monumental Highways already has one right-of-way in Elmore County, Ala., granted by the county commissioners. A copy of form is herewith attached. Each State would participate proportionately in the revenues and under the liquidation of all liabilities of the highways, all interest therein shall revert to the Federal and State Governments and their several agencies through which land was acquired as resolved by the Treasury. LABOR All labor employed in the construction of the United States Monumental Highways would receive the prevailing scale of wages. However, only Federal de ductions for social security and withholding tax would be made, and 5 percent of the annual earned sum would be credited to workers as a gift to apply to purchase price of any land or home along the highways owned by the United States Monumental Highways. This bonus continues for a period of 10 years. However, all such benefits earned shall be canceled if worker deems to strike. Whenever the elements do not permit work, worker shall receive 30 percent of his weekly earnings. The United States Monumental Highways is more, far more, than just another road-building project. Its comparison to the average boulevard is that of a leaf to an entire tree. This vast self-liquidating enterprise will absorb uncounted millions of workers of all age brackets, of both sexes, of every degree of skill, of every race and creed and political party. It cannot become engrossed in, on engulfed by, partisan politics. The benefits extend to every corner of the Nation. Modern homes-the fundamental basis of life and of living-will be encouraged. Churches, schools, libraries, hospitals, and airports are all part of the United States Monumental Highways. Monorail shall be constructed, owned, and operated by the Almagamated Railroads. Mr. William Randolph Hearst, Jr., through and by virtue of his publications. has given you the green light for national economic security and prosperity. Our Nation now is in the hands of our industrialist, business, civic leaders, and citizens to propel the boat without National and State politics. Detailed information regarding military advantages, construction, acquiring right-of-way, mechanical function, as well as national and State corporate operation, is yours for the asking. S. W. KNOBLOCK. SUPPLEMENT TO STATEMENT OF MR. JAMES J. NANCE, PRESIDENT, AUTOMOBILE MANUFACTURERS ASSOCIATION In the course of the appearance, before the Subcommittee on Roads, of Mr. James J. Nance, president, Automobile Manufacturers Association, members of the committee asked that certain additional information be supplied. The first request was for the figure on gross national product for 1953, for comparison with the 1954 figure of $357 billion shown in our chart on national economic growth and Federal revenues. The 1953 gross national product was $364.9 billion, according to the January 1955 Economic Report of the President (H. Doc. No. 31, 84th Cong., 1st sess., p. 138). Since our chart put all gross national product figures in terms of 1954 dollars, the proper figure for 1953 on this basis would be $368.5 billion. For the first quarter of 1955, the gross national product was at an annual rate of $369 billion, according to Economic Indicators, April 1955, page 2 (Council of Economic Advisers). The second request was for an explanation of the method used by our association in estimating that lack of a modernized interstate highway system now costs the Nation's motorists $1 billion yearly in traffic accidents that would not occur if needed improvements were made on this system, and in estimating a $700 million yearly accident cost penalty for lack of improvements on other roads and streets. As we pointed out in our statement, the Interstate System now carries 14 percent of United States traffic but would carry 26 percent of traffic if it were fully modernized. Our association studies show that urban interstate routes would carry 11 percent of United States traffic, and rural interstate routes 15 percent (the rural sections including routes in cities below 5,000 population to conform with urbanrural primary system definitions contained in the Federal-aid highway legislation). The United States Bureau of Public Roads agrees with us that these are reasonable estimates of the traffic volume which would exist on a modernized Interstate System. Because 1954 traffic amounted to 557 billion vehicle-miles nationally, this means that urban interstate routes would have carried 61 billion travel-miles in 1954, and rural interstate routes would have carried 83.5 billion travel-miles, had the system been improved. From National Safety Council data on accident costs per vehicle-mile on various types of roadways, we estimate that accident costs on rural interstate routes now average 0.75 cent per vehicle mile, or $626 million for 1954. From records of modern rural highways using design standards planned for the Interstate System, we estimate at least a 75 percent reduction in accident rates on the rural system-or a saving of about $470 million yearly in accident costs if the rural interstate system were now modernized. For the urban interstate system, we based our estimates on some very comprehensive studies of urban freeways by the University of California's Institute of Transportation. These studies indicate an accident cost of 1.5 cent per mile on existing arterial streets, and a reduction of more than 80 percent in accident rates on urban freeways. Thus the lack of a modernized urban interstate system now penalizes motorists about $915 million yearly in accident costs, and a potential saving of $732 million yearly is possible upon modernization of the urban part of the system. Adding the urban and rural accident cost penalties, we get a total of $1.2 billion yearly. We have reduced this total to $1 billion because of the fact that some small part of the Interstate System now is already modernized. In arriving at the estimate of $700 million yearly as the saving in accident costs that would result if other needed road and street improvements were made, we were forced to take into account the fact that there is markedly less opportunity to reduce accidents on routes which, because they carry sharply fewer vehicles daily per mile than the Interstate System carries, cannot economically be improved to safety standards that approach those of the controlled-access expressway. If our road system were fully modernized today, the primary system would carry 27 percent of United States traffic, according to our association estimates. The secondard system would carry 14 percent of traffic. Rural roads outside the Federal-aid systems would carry 13 percent of traffic, and city streets outside the Federal-aid systems would carry 20 percent of traffic. We estimated relatively little safety benefit from improvements of routes outside the Federal-aid systems, since such improvements pertain mainly to surface betterments and such routes carry relatively small daily traffic volumes per mile. Yet these routes, when improved, would carry 33 percent of all traffic, and they account for 77 percent of all United States road and street mileage. Similarly, we could not foresee any really considerable safety gains from modernization of the secondary system, which now averages 460 vehicles daily |