Federal-aid highway legislation. There shall be deducted from such original cost an amount equivalent to 10 per centum thereof. The result shall be the credit to which the State is entitled.

(d) Any State for which a credit has been established, whether for a toll or a free highway, shall be entitled to use the same for construction of projects on the Federal-aid primary system, subject to the conditions that all Federal-aid highway funds apportioned to a State under Federal-aid highway legislation have been expended within the meaning of said legislation, and all funds allocated under this Act have been contracted as provided under this Act. Whenever a State constructs such projects with funds, received as a result of a credit under this section, all procedures and steps shall be taken in the same manner as though such funds had been apportioned under Federal-aid highway legislation. Any State for which a credit has been established on account of a toll highway shall be entitled, at its option, to use the credit for payment of any outstanding debt on the highway, which highway shall then become a free public highway.

(e) The Secretary jointly with the Corporation shall establish such reasonable rules and regulations as necessary or advisable to carry out the purposes of this section.

(f) Whenever the Secretary determines that a credit, pursuant to this section, should be made available to a State he shall notify the Corporation. The Corporation, within a reasonable time thereafter, shall make such credit available to the Secretary for use by the State.

RIGHT-OF-WAY ACQUISITION

SEC. 208. (a) If the Secretary shall determine that the State highway department of any State is unable to obtain possession and the right to enter upon and use the rights-of-way, lands or interest in lands, improved or unimproved, including the control of access thereto from adjoining lands, required for any project on the interstate system with sufficient promptness, the Secretary is authorized, upon the request of such a State, prior to approval of title by the Attorney General, and in the name of the United States, to acquire, enter upon, and take possession of such rights-of-way, lands, or interests in lands, including the control of access thereto from adjoining lands, by purchase, donation, condemnation or otherwise in accordance with the laws of the United States (inIcluding the Act of February 26, 1931; 46 Stat. 1421), and to expend funds for projects thereon. The authority granted by this section shall also apply to lands and interest in lands received as grants of land from the United States and owned or held by railroads or other corporations. The cost incurred by the Secretary in acquiring any such rights-of-way, lands or interest in lands may include the cost of examination and abstract of title, certificate of title, advertising, and any fees incidental to such acquisition; and shall be payable out of the funds available to the Secretary for construction of projects on the interstate system to the extent of 95 per centum of the appraised value of such rights-of-way, or of the actual cost, whichever is lower. The Secretary is further authorized and directed by proper deed, executed in the name of the United States, to convey any such rights-of-way, lands, or interest in lands, including the control of access thereto from adjoining lands, acquired in any State under the provisions of this section, except the outside five feet of any such right-of-way in States unable or unwilling to control access, to the State highway department of such State or to such political subdivision thereof as its laws may provide, upon such terms and conditions as may be agreed upon by the Secretary and the State highway department, or political subdivisions to which the conveyance is to be made. Whenever the State is able and agrees to control access, the outside five feet may be conveyed to it.

(b) Whenever rights-of-way on the interstate system are required over public lands of the United States, the Secretary may make such arrangements with the agency having jurisdiction over such lands as may be necessary to give the State or other person constructing the projects on such lands adequate rightsof-way and control of access thereto from adjoining lands, and any such agency is hereby directed to cooperate with the Secretary in this connection.

(c) The Secretary may adopt such regulations as he deems advisable to protect fully the interests of the United States in the acquisition of rights-ofway. He may take such action as necessary to carry out such regulations.

TITLE III-MISCELLANEOUS

DEFINITIONS

SEC. 301. As used in this Act, unless the context requires otherwise(a) The term "interstate system" means the National System of Interstate Highways as authorized to be designated by section 7 of the Federal-Aid Highway Act of 1944, and includes those routes heretofore designated by the Commissioner of the Bureau of Public Roads by the attestation of a diagrammatic map, copy of which is hereby made Appendix A to this Act, as well as routes to be hereafter designated. The mileage so designated as of June 30, 1954, is thirty-seven thousand six hundred miles. The mileage of the routes so designated is calculated by stating the mileage of the most traveled highway between control points. Such mileage so designated as of June 30, 1954, with respect to each State is contained in a schedule hereby made Appendix B to this Act. The mileage of the entire system is limited to forty thousand miles. (b) The term "Corporation” means the Federal Highway Corporation created by title I of this Act.

(c) The term "Secretary" means the Secretary of Commerce.

(d) The term Federal-aid highway legislation means "the Act providing that the United States shall aid the States in the construction of rural post roads and for other purposes", approved June 11, 1916, as amended and supplemented.

WITHOUT COMPENSATION EMPLOYEES

SEC. 302. The Corporation and Secretary are respectively authorized, to the extent deemed necessary and appropriate, in order to carry out the provisions of this Act, to employ persons of outstanding experience and ability, without compensation, and are further authorized to provide by regulation for the exemption of such persons from the operation of sections 281, 283, 284, 434, and 1914 of title 18 of the United States Code and section 190 of the Revised Statutes (5 U. S. C. 99). Persons appointed under the authority of this subsection may be allowed transportation and not to exceed $15 per diem in lieu of subsistence while away from their homes or regular places of business, pursuant to such appointment.

AMENDMENT TO CORPORATION CONTROL ACT

SEC. 303. Section 101 of the Government Corporation Control Act (59 Stat. 597), as amended, is hereby further amended by adding thereto the words "Federal Highway Corporation."

CONSTRUCTION OF THIS ACT

SEC. 304. If any section, subsection, or other provision of this Act, or the application thereof to any person or circumstance is held invalid, the remainder of this Act and the application of such section, subsection, or other provision to other persons or circumstance shall not be affected thereby.

EFFECT ON PRESENT LAW

SEC. 305. All provisions of Federal-aid highway legislation shall remain in full force and effect, and shall apply to the required actions to be taken, and payments to be made, by the Secretary under this Act in connection with the interstate system with the same force and effect that said provisions of the said legislation applied to such actions and payments in connection with the interstate system prior to the passage of this Act, except that the provisions of this Act shall supersede any provision of the said legislation which conflicts with a provision of this Act, except that section 13 of the Federal-Aid Highway Act of 1950 shall not be applicable to the interstate system, and for the purposes of section 12 of the Hayden-Cartwright Act, the allocations made under this Act shall not be deemed an apportionment.

Mr. FALLON. In a special message to Congress February 22 the President proposed this legislation based upon a report of his Advisory Committee on a National Highway Program, of which Gen. Lucius D. Clay was Chairman.

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This committee fully appreciates the need for expanding and strengthening the Nation's highway system. The problem the committee will have to decide is how these bigger, better, and safer highways may be obtained within the financial capacities of Federal, State, and local governments.

It is understandable that the proposals set forth in these bills have not received unanimous support, especially with regard to the method proposed for financing. But there is general agreement that something definite must be done to make the Nation's highways adequate and we are grateful that a start has been made.

We intend to get the advice and recommendations of the Nation's highway experts during these hearings. We also have available the reports submitted by the Secretary of Commerce and the Bureau of Public Roads on the needs of the highway systems for the period 1955 to 1984, on the feasibility of toll roads, and on public utility relocation, as a result of studies made pursuant to directives contained in the Federal-Aid Highway Act of 1954.

The committee expects to hear representatives of interested Federal and State agencies, representatives of labor and farm organizations, and spokesmen for trade associations, and others. At the conclusion of the hearings the Subcommittee on Roads will endeavor to report a bill which will warrant the support of the full committee and the Congress.

Our witness for today is Secretary of Commerce Sinclair Weeks, who is accompanied by his special consultant on highways, Mr. Francis V. du Pont, and his Commissioner of Public Roads, Mr. C. D. Curtiss.

Mr. Secretary, it is a pleasure to welcome you here and to receive your statement on this very important subject and have you give us your advice on how to get this highway program through the Congress. I understand that you have a prepared statement on this very important subject. If you care to read the statement you may do so, or you may proceed in any way that you care to handle it.

STATEMENT OF HON. SINCLAIR WEEKS, SECRETARY OF COMMERCE, ACCOMPANIED BY LOUIS S. ROTHSCHILD, FRANCIS V. DU PONT, AND PHILIP A. RAY, DEPARTMENT OF COMMERCE

Secretary WEEKS. Thank you, Mr. Chairman.

May I first apologize for being late? I am not usually late to these hearings. I had an appointment with Speaker Rayburn and Majority Leader McCormack, and Mr. Priest and it ran a little longer. So I do apologize for that. I did not want to keep anybody waiting.

I appreciate being here, Mr. Chairman, and appreciate very much the fact that you could make this day available for me to present such testimony as I have because of your knowledge that I am leaving town for a brief period tomorrow on a European venture.

I have a statement here that I would like to file for the record. I will not read it at all, but I will refer to it and read some portions of it. I would like to go back to last summer, when the genesis of this whole project began, when the President talked to the Governors conference last summer in New York State, following which Governor Kennon, the chairman of the Governors conference appointed a com

mittee under the chairmanship of Governor Kohler, of Wisconsin. That committee proceeded with a study and later the so-called Clay committee was appointed and the legislation there proposed is now before you.

By and large there is very substantial concurrence on the part of the members of the Governors conference with the legislation embodied in what is before you today, which is embodying the Clay committee's suggestions.

There is no question, Mr. Chairman and gentlemen, about the need for roads. The question in everybody's mind is how do you do it and what is the Federal responsibility. We will discuss here mostly the Federal relationship to the Interstate Highway System; that is, the 40,000-mile system which was set up in the 1944 act.

The objective of the bills to immediately undertake the construction and completion of an interstate system of highways within a period of 10 years justifies unusual procedure and credit financing. In order to complete such a system it is essential at the outset that the program and the financing thereof be assured. It is necessary that the financing be provided, and that the legislation include control of standards which would assure uniformity of necessary design characteristics throughout the Nation.

H. R. 4260, 4261, 4364, and 4518 place the major responsibility for the financing of the interstate system and urban extensions thereof on the Federal Government because of the overall importance of this system of highways to the national economy and defense. At the same time, regular Federal aid is continued on the other systems with the exception of the reduction in the urban funds from the amounts set forth in the Federal-Aid Highway Act of 1954, which reduction is compensated by the urban road construction involved in the interstate program. The authorizations in the Federal-Aid Highway Act of 1954 are, incidentally, the highest in our history and substantially exceed the authorizations of the Federal-Aid Highway Act of 1952. Under H. R. 4260, 4261, 4364, and 4518, regular Federal aid would continue except as noted above, and the Federal Government would in effect augment the present program by enlarged grants to the 48 States of approximately $212 billion per annum for 10 years, in accordance with their deficiencies and needs, in order to bring the interstate system up to adequate standards. The matching amounts for the interstate system would be the same as provided in the FederalAid Highway Act of 1954, and would aggregate $116,666,000 per year. There would be no change whatsoever in the procedures for the construction of this interstate system, nor in the subsequent ownership, operation, and policing of the completed facility.

The Clay committee suggested that the financing of the program be so designed that the objectives could be attained within the present tax structure and without pledging the Federal credit. The method employed is quite similar to that employed by many of the States where the motor vehicle fuel revenues or a portion thereof are specifically pledged to service bond issues, and constitute the sole basis for interest and amortization payments.

The job is important from every angle, and particularly from the defense angle. I would like to point out when we are talking about the total figures of $25 billion that in the last 10 years business in this counrty has put about $205 billion into plant construction, and it ex

pects to invest about $27 billion this year. In other words, business will put into plant construction as much approximately in 1 year as this 10-year program contemplates.

That to me is a little bit demonstrative of what this problem is. This highway system in this country, if we do the job and do it right in this 10-year program that I am talking about on the interstate highway system, will mean that we are in effect doing what business is doing in the way of plant expansion in 1 year.

Under the Federal-Aid Highway Act of 1954, I was instructed to make an evaluation of the highway needs throughout the United States and to report thereon to the Congress. This study and that of the Clay committee cover not only immediate highway deficiencies, but the needs for the future as well. In evaluating the interstate highway problem the estimates are based on bringing that system up to standards which will be adequate for at least 20 years after the completion of any given section thereof. In obtaining the detailed estimates, the Bureau of Public Roads was dependent on the cooperation of the 48 States.

On the basis of these estimates, the total cost of the completion of the 37,600 miles of the interstate system now designated is estimated at $23 billion. Provision has been made in the statute for completing the designation of the balance of the system, namely, 2,400 miles. This mileage is being reserved for the extension of the system in the urban areas. H. R. 4260, 4261, 4364, and 4518 require the allocation of these 2,400 miles promptly, and the States have already been asked to submit their recommendations. For these extensions an estimated figure of $4 billion has been provided, making a total of $27 billion for the entire interstate system and the extensions thereto. Of this $27 billion, States and local governments would be expected to contribute $2 billion, which leaves a balance of $25 billion to be provided under these bills.

A word about the necessity of the problem here.

It is estimated that there will be 81 million vehicles on the road in 1965, 40 percent more than at present. In the next 10 to 15 years our population will, it is estimated, increase about 30 million. Our roads are a vital part of our programs for commerce, trade, transportation, and defense. The basic issue before the Congress is the need to obtain in 10 years an interstate system adequate for the next 20 to 30 years. To the extent not needed, the program involved in the pending legislation can be automatically adjusted downward. We believe the need fully exists, and that these bills provide a sound way in which it can be accomplished with a minimum of uncertainty in planning and engineering.

We believe these bills represent the best practical way to finance this program on a long-term basis out of gasoline and special motorvehicle fuel-tax revenues. Based upon the assumption of a $48million annual increase in the revenues from gasoline and special motor-vehicle fuel taxes, the Treasury Department estimates that the aggregate revenue from these taxes during the fiscal years 1957 through 1988 would be approximately $37 billion over and above the amount of $623 million per year needed to continue other highway aids at the present levels. Thus it appears feasible, through the medium of the proposed Federal Highway Corporation, to allocate these revenues as provided in the bills.