some thing and might be the very next step toward preventing the inflation that all of us fear. Senator HRUSKA. I have one other instance to bring up in that connection, General: I know of one State in which 80 percent of its revenues are earmarked for particular purposes, leaving in the general till about 15 or 20 percent of the revenue to do its appropriating from. I do not mean to suggest that the Congress of the United States is going to get into that sort of thing, but is this not a possible start in that direction, to a point where Congress will be a very nominal body, insofar as appropriating general revenues is concerned? Senator GORE. Will the Senator yield there? Senator HRUSKA. Yes. Senator GORE. Alcoholism has become a great problem in this country. We might earmark the liquor tax for a home for alcoholics. Our veterans' benefits are big, tremendous. Hospitals are overcrowded. I receive calls and telegrams almost daily pleading for assistance to obtain admittance to some hospital that is overcrowded. Surely we could find some course that we could earmark for veterans' benefits, and, as you say, pretty soon the Government would be operating and not in one straitjacket but many. We have one now, which is the national debt. It is within the power of Congress to raise that national debt. I would prefer one straitjacket to many. Excuse me. Senator CASE. Mr. Chairman, would the Senator yield to me at that point for a very brief observation? Senator HRUSKA. Yes, sir. Senator CASE. The senate committee did not accept the linkage provision that was in the bill as it passed the House last year. The Senate struck that out. It is true that the Senate in the Highway Act of 1954 in the Congress did say, not formally in the act, but in our explanation of it that we were now providing for Federal aid in an amount approximately equal to that which the Federal Government was collecting from the gasoline tax, and the motor fuel tax, and lubricating oils; however, we in striking out the House provision, definitely developed last year that to dedicate the Federal gasoline tax as such to highway uses would be to impose upon the purchasers of gasoline who used it for nonhighway purposes a tax to be dedicated for road purposes. The suggestion in this bill that we make a definite linkage by appropriating the specific revenues derived from the taxes imposed by certain sections of the Internal Revenue Code-to wit, those on gasoline and diesel oil-is responsible, I think, for the bill that Senator Carlson introduced the other day; and I frankly state that it is partly responsible for the bill which I introduced which proposes that the Federal gasoline tax collected on gas used for nonhighway purposes be refundable. Most of the States refund gasoline taxes for use on farms and in tractors and for other nonhighway uses. I think it is manifestly impossible to expect that the Congress, when it recognizes the situation, will ever approve a dedication of the Federal gasoline tax to the building of interstate roads. The only way the rural sections of the country would accept a dedication of the Federal gasoline tax would be if that dedication includes the servicing of construction of farm roads as well as the Interstate System. There are too many great open spaces where the Interstate System offers nothing to the people who pay gasoline taxes or use gasoline for nonhighway purposes. Senator GORE. Without objection, one additional question, and then we will have to adjourn. Senator THURMOND. General Clay, I believe you testified that from the standpoint of protecting the national defense or promoting the economy of the country or conserving lives and preventing injuries and property damage, that you felt this system of roads was essential; is that correct? General CLAY. Yes, sir. Senator THURMOND. I presume in making that statement that your committee is not necessarily bound or wed to any particular method of financing on the question of reimbursing toll roads, if the Senate should deem some other system is preferable, is it? General CLAY. As far as our committee is concerned, Senator, we would like to have a highway program that would complete the Interstate System. We think that is vital and essential to the country. When it gets to the question of the toll-road reimbursement or the reimbursement of the States, our committee made that recommendation in full conscience. We would certainly not want to see you destroy the opportunity of having an Interstate System completed within the next 10 years, and as far as the financing is concerned, it was our view that the method which we recommended was the most conservative method in which this program could be built. There again we would not want, at least I would not want to see the question of how this road system was to be financed prevent us from having a completed Interstate System in the next 10 years. I think it is absolutely vital that we complete that system. Senator GORE. General, would it be convenient to you at some future time to return for further questioning, if the committee should so desire? General CLAY. Yes, any time. I am at your service. Senator GORE. Thank you very much. The committee is adjourned. (Thereupon, at 12: 10 p. m., the committee was adjourned, subject to the call of the Chair.) NATIONAL HIGHWAY PROGRAM MONDAY, MARCH 14, 1955 UNITED STATES SENATE, COMMITTEE ON PUBLIC WORKS, SUBCOMMITTEE ON PUBLIC ROADS, Washington, D. C. The subcommittee met at 10:10 a. m., in room 412, Senate Office Building, Senator Albert Gore presiding. Present: Senators Gore, Thurmond, and Kuchel. Also present: Delegate Bartlett of the Territory of Alaska. The committee is pleased to have before it this morning Mr. James L. Bossemeyer, representing the National Association of Travel Organizations. STATEMENT OF JAMES L. BOSSEMEYER, REPRESENTING THE NATIONAL ASSOCIATION OF TRAVEL ORGANIZATIONS Mr. BOSSEMEYER. Gentlemen, my name is James L. Bossemeyer. I am executive vice president of the National Association of Travel Organizations. Our association has headquarters in Washington, D. C. We appreciate the privilege of appearing before your committee to express our views concerning the steps needed to meet the crisis in transportation caused by our inadequate, outmoded, and unsafe system of highways. Our organization is a nonprofit corporation. The key groups of members are the more than 40 State and territorial travel promotion offices and more than 60 regional and metropolitan travel promotion organizations. These nonprofit organizations supported by public funds represent taxpayers throughout the Nation. Also affiliated with us are nearly all of the important segments of the travel industry. For example, the American Hotel Association and many State hotel associations are members. Many leading resorts and travel attractions are members. Membership also includes the Air Transport Association of America and a number of airlines; four regional railroad passenger associations and a number of leading passenger carrying railroads; the American Merchant Marine Institute, Inc. and some of its individual shipping lines; the National Bus Traffic Association and leading buslines, and a number of its affiliates. The American Automobile Association and a number of its affiliates and some independent automobile clubs are members. More than a hundred magazines and newspapers which feature travel advertising and travel articles are members. The list also includes oil companies, automobile manufacturers, travel shows, travel agents and other cate gories of firms and organizations engaged in the promotion, sale and servicing of travel. There is common agreement that to quote from the President's Advisory Committee's report-the existing highway system is inadequate for both current and future needs. It must be improved to meet urgent requirements of growing population and an expanding economy. We wonder if, in spite of the universal agreement that something must be done, very many of us realize just how imperative it is that immediate, decisive and adequate action be taken. The transportation system in the United States of America is something special. There is nothing like it anywhere else in the world. Our transportation system is one of the things which set this Nation apart as the greatest, most productive, most prosperous Nation in the world. Compare our transportation facilities with those of any other nation and you will find that the comparison between transportation facilities and general economic status is closely related. High economy-fine transportation. Low economy-poor transportation. In spite of our highway crisis the United States presently has a long lead in transportation facilities. By the same token, it has a long lead in general prosperity. Thus it becomes apparent that whatever the difficulties and whatever the cost, we cannot afford to neglect our highway system. We want to point out that all roads, streets, and highways are important-from the most remote rural lane to the busiest sector of the Interstate Highway System. We want to point out that adequate highways of all types are as essential to the survival and effectiveness of the railroads, airlines, and marine shipping lines as they are to the automotive vehicle users, because no movement of persons or goods is complete until the final destination is reached. The beginning and ending of almost every shipment of goods and almost every movement of travelers occurs on rubber tires on roads, streets, or highways. We want to point out that the people of the United States spend nearly $22 billion per year on travel at home and almost $2 billion abroad for purposes of business and pleasure. We define travel as those movements of persons involving overnight stops away from home; 85 percent of the domestic travel moves via the highways. If you add to this sum spent by those engaging in travel involving overnight stops away from home, the money spent for the myriads of purposes involving less than overnight trips of persons, and then add the money spent in transporting goods in the United States, some idea of the vast extent to which the welfare of our economy depends. upon the efficient transportation of persons and goods may become clear. Of the $22 billion spent each year by United States citizens for domestic travel, almost $13 billion is spent on interstate tourist travel. The rest is spent for business travel and intrastate tourist travel. All but four of the States have official State offices whose function is to attract tourists from out of the State. Every State wants and needs its share of this travel money. It is important. It is new money brought in from the outside to bolster the local economy. The tourist has become one of the great distributors of wealth in this Nation. He needs all types of roads and highways to get to the countless objectives which attract him. But, most of all, he needs the Interstate |