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because it is quite a paramount issue in my State. That is regarding the Clay recommendations, so-called, for special credits to be given to States that operate toll roads. Have you reached any conclusions on that particular recommendation?

Mr. ('URTISS. For the reasons indicated by Mr. du Pont I do not think it would be appropriate for me to comment officially on that.

Senator NEUBERGER. Can you give me your personal opinion?
Mr. CURTISS. I am afraid not.
Senator NEUBERGER. Thank you for the information you did give.
Senator GORE. Senator Martin?

Senator MARTIN. I am very appreciative of the information the Commissioner has given us. On this matter of giving the States credit for toll roads I have been very much confused. The chairman and I have been discussing it. I wonder how a State can be given credit because these toll roads are owned by the bondholders until they are paid in full. So I am just wondering. I have great admiration for both you and Mr. du Pont. I have given a lot of study to it and I cannot come to a satisfactory conclusion myself.

Mr. Curtiss. I think, Senator Martin, that that is one of the questions that will have to be given very serious consideration and further discussion.

Senator Martin. As I understand it you and Mr. du Pont will both be available for other meetings of the committee. I am just not sure about the thing myself. I am a great believer in the toll-road system. We had the original toll road in Pennsylvania and it has been a very satisfactory thing.

But the thing that this committee and all of us have to give very serious consideration to is that there are only about 8,000 miles in the United States on the Interstate System that would be self-liquidating. There have been a few toll roads already started, I am told, that have gotten into financial trouble. So it is a matter that is going to have to have very careful consideration by all of us. It is a fine way to build roads if there is traffic enough to liquidate the indebtedness. But just because we have a desire to do it I think there is a magnificent road between Washington City and Philadelphia that is alreaty built that could be taken over in some way and tolled. Of course there would be great objection to that. That I think would be self-liquidating. I hope we could build one from here to Harrisburg, Pa., but I am afraid there is not traffic enough to support it.

This matter of toll roads is a big problem. How to give a State credit for a toll road which the State does not own is a matter to which I have given serious consideration.

Senator GORE. Does the Department think the Bureau will be able to enlighten the committee further on toll roads?

Mr. ('Ukriss. I think the Department will be in a better position after the message comes up to discuss it with the committee.

Senator GORE. As of now--and it is drawing close to the time for the Senate to meet-you think the basic formula of allocation as between secondary, primary, and urban, is sound?

Mr. ('URTiss. Yes, sir.

Senator Gore. And you think the amounts recommended for those categories of roads in S. 1019 are needed!

Mr. CURTISS. Yes sir.

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Senator GORE. And that construction facilities and materials are available for that type of program?

Mr. CURTISS. Yes, sir.

Senator GORE. As I understood—I am trying to summarize your statement and I wish you would feel perfectly free to correct me you think that the matching formula on the interstate should reflect the maximization of the Federal interest in those roads, though you do not wish to say whether it should be 2 to 1, 60 to 40, or larger?

Mr. CURTISS. Yes, sir.

Senator GORE. Do you think that the $500 million suggested by S. 1048 for that purpose is needed—but you suggested that, it might not be sufficient?

Mr. CURTISS. Yes, sir.

Senator GORE. Is that a fair summary of your statement with respect to S. 1048 ?

Mr. CURTISS. Yes, sir.
Senator GORE. Senator Martin, do you have another question ?
Senator MARTIN. No.
Senator GORE. Senator Neuberger?
Senator NEUBERGER. No, sir.
Senator GORE. Thank you, Mr. Curtiss.

The committee will stand adjourned until 10 a. m. Wednesday, when the committee will have a further meeting.

(Thereupon, at 12 noon, the subcommittee was adjourned, to reconvene at 10 a. m., Wednesday, February 23, 1955.)

NATIONAL HIGHWAY PROGRAM

WEDNESDAY, FEBRUARY 23, 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, Symington, McNamara, Case, Bush, and Kuchel.

Also present: Senator Kerr.
Senator GORE. The committee will come to order.

The committee has before it today the Federal-aid highway bills per:ding before the committee, being S. 1072, the codification bill, and S. 1048; also S. 1160.

(S. 1160 is as follows:)

[S. 1160, 84th Cong., 1st sess.) A BILL To create a Federal highway corporation for financing the construction of the

National System of Interstate Highways; to amend and supplement the Federal-Aid Road Act approved July 11, 1916 (39 Stat. 355), as amended and supplemented ; and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SHORT TITLE

Section 1. That this Act may be cited as the “National Interstate Highway Act".

OBJECTIVE AND POLICY Sec. 2. It is hereby declared to be in the national interest to foster and accelerate the development of a modern, adequate, safe, and efficient system of highways deemed essential for the expansion of the economy and the changing concepts of the military and civil defense of the United States. It is further declared to be desirable that the development of such system of highways be continued through the cooperation and joint efforts of the Federal Government, the States, and local subdivisions thereof. It is hereby found that those essential highways are in fact inadequate to meet the needs of interstate commerce and the national and civil defense, and that the most important portion of such highways are, or should be, located on the National System of Interstate Highways.

Accordingly, it is the objective of this Act to complete the construction of the National System of Interstate Highways within the next ten years up to such standards as will produce safe highways adequate to handle traffic needs for at least the next twenty years. This objective will be reached only by means of a program which will presently assure the financing of the system as a whole, and provide for prompt acquisition of necessary rights-of-way. It is hereby declared to be the policy of Congress to continue or to impose such taxes as may be necessary to meet this objective.

Sec. 3. This Act is divided into titles and sections according to the following table of contents:

TABLE OF CONTENTS

TITLE FEDERAL HIGHWAY CORPORATION
Sec. 101. Creation of Corporation.
Sec. 102. Management of Corporation.
Sec. 103. Duty of Corporation.
Sec. 104. Corporate powers.
Sec. 105. Corporate financing.
Sec. 106. Services and facilities of other agencies.
Sec. 107. Misappropriation of funds.
Sec. 108. Report to Congress.

TITLE II-CONCERNING THE DEPARTMENT OF COMMERCE
Sec. 201. Cancellation of authorizations.
Sec. 202. Interstate system.
Sec. 203. Standards.
Sec. 204. Expenditure authorization.
Sec. 205. Distribution by States.
Sec. 206. Scheduling of construction and participation by States.
Sec. 207. Credits for existing roads and toll roads.
Sec. 208. Right-of-way acquisition.

TITLE III-MISCELLANEOUS
Sec. 301. Definitions.
Sec. 302. Without compensation employees.
Sec. 303. Amendment to Corporation Control Act.
Sec. 304. Construction of this Act.
Sec. 305. Effect on present law.

TITLE -FEDERAL HIGHWAY CORPORATION

CREATION OF CORPORATION

SEC. 101. There is hereby created, subject to the direction and supervision of the President, a body corporate to be known as the Federal Highway Corporation. As hereafter provided in section 303, the Corporation shall be subject to the provisions of the Government Corporation Control Act. The principal office of the Corporation shall be located in the District of Columbia.

MANAGEMENT OF CORPORATION Sec. 102. (a) The management of the Corporation shall be vested in a Board of Directors (hereinafter referred to as “the Board”) composed of five members. Three of these members shall be public members appointed by the Presi. dent, by and with the advice and consent of the Senate, without regard to political party affiliation. The President shall designate a full-time Chairman of the Board from one of the public members. The remaining two members shall be the Secretary of Commerce (hereinafter called "Secretary") and the Secretary of the Treasury, or their representatives. The Board shall meet at least four times a year, or more often, at the call of the Chairman.

(h) The Chairman of the Board shall receive compensation at the rate of $17,500 per annum. As Chairman, he shall preside at meetings of the Board and be the Corporation's chief representative. He shall be responsible for general supervision of the activities of the staff of the Corporation. He shall also maintain liaison with the representatives of the States with respect to the policies set forth in this Act. The Chairman in the conduct of his functions as chairman shall act in conformance with determinations of the Board.

(c) The public members of the Board (other than the Chairman) shall receive no compensation, but may receive a per diem of $100 in lieu of subsistence, plus transportation expenses, in accordance with the standardized Governraent Travel Regulations, when proceeding to and from their homes or regular places of business to the headquarters of the Corporation and when engaged on assignment by the Board or the Chairman in the business of the Corporation.

(d) In addition to managing the Corporation, the Board is authcrized to resolve divergencies of views concerning the interpretation or application of the policies under this Act which it considers will have significant effect upon the program, excluding (1) divergencies between two or more Federal agencies. Within this limitation, the Board shall have the right to determine the matters which it shall consider and act upon, under such rules and regulations as it may prescribe.

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