your statement that in spite of the fact that there has been a 4.5 percent increase in labor rates, excluding fringe benefits, and a 6 percent rise in the cost of steel, your rise has been only 1.9 percent.

Mr. MILLER. That is true.

Mr. SCHWENGEL. I think that is commendable and I think that is something that we need to remind ourselves of, that this is happening in an atmosphere of free enterprise. I have a feeling that there is really more free enterprise in the contracting area than almost any other area of our economic life.

Mr. MILLER. You are so right.

Mr. SCHERER. There is a greater risk, I daresay.

Mr. SCHWENGEL. A greater risk, but in spite of that they are still willing to make sacrifices and work and find shortcuts and ways to continue the program without causing inflationary tendencies.

Mr. MILLER. I would like to say a part of that saving is a reflection of the terrific job the various State highway departments are doing in planning this work. Our industry has been amazed at the terriffic job they have done in such a short time, and that is reflected in our bids quite materially.

Mr. SCHWENGEL. It has been an especially interesting study of mine for several years, ever since I have been here, and it is for this reason I introduced legislation to make it possible to offer even lower bids with the introduction of my bill, H. R. 10332.

Mr. MILLER. There cannot be the slightest doubt but what that will decrease costs, because financing has become a problem as the size of the projects grows.

Mr. SCHWENGEL. Contractors in my State indicate that could be between 2 and 5 percent. Is that right?

Mr. MILLER. Yes. Two percent very readily, and in carryover jobs it could run as much as 5 percent.

Mr. FALLON. Mr. Stauffer.

Mr. STAUFFER. No questions.
Mr. FALLON. Mr. Byrne.

Mr. BYRNE. No questions.

Mr. FALLON. Thank you again, Mr. Miller.

Our next witness will be Mr. Richards. Mr. Richards represents the National Municipal Association.

Mr. Richards, would you give the reporter your full name and position? We all know you are commissioner of public works of Detroit, Mich.

STATEMENT OF GLENN C. RICHARDS, COMMISSIONER OF PUBLIC WORKS, CITY OF DETROIT, MICH., CHAIRMAN, COMMITTEE ON HIGHWAYS, AMERICAN MUNICIPAL ASSOCIATION

Mr. RICHARDS. Thank you, Mr. Chairman and members of the committee.

Mr. Chairman and members of the House Committee on Public Works, I am Glenn Richards, commissioner of public works, city of Detroit, Mich. I am appearing today as I have before this committee and other congressional committees for the past 14 years on behalf of the American Municipal Association, as chairman of its committee on highways.

I miss our good friend, Congressman Dondero, but I see he is honored by having his picture behind us there. For many years as our chief Representative from Michigan, he has been a great proponent of highways for the Nation, and we miss him. I saw him a couple of days ago, and he still has his heart in highways. He attended one of our very important highway meetings in Detroit, where we honored him for the work he had done in the past.

I also miss Congressman Machrowicz, who is not on the committee any more. I am sorry that Michigan does not have representation any longer on this Roads Committee, but I am sure you gentlemen can well represent us along with the rest of the country.

I understand, Congressmen, that we are limiting our discusison at this time to the ABC roads. I might state the ABC roads are just as important, and probably more important, to cities than the Interstate System. We in cities, of course, under the present bill, do participate in our network by Federal aid on the urban, secondary, or primary. Quite often we have not gotten too much of these funds, but we are eligible for them. So we certainly think that the feeder roads and connecting roads to the Interstate System are just as important to cities as the Interstate Sysem, and much more important to many of our cities, because there are thousands of cities which are not on the Interstate System, and the only help they get in solving their traffic problem are the ABC funds.

The American Municipal Association is the national association of municipalities in the United States with nearly 13,000 member cities throughout the Nation.

The cities of America have, of course, a tremendous stake in Federal highway legislation. Probably no other Federal-aid program can have or has had such a pervasive effect on the growth and development of the Nation's urban areas.

The inadequacies of the existing urban thoroughfares have become increasingly apparent as more and more rubber-tired vehicles have invaded municipal trafficways.

As the expanding urban population has settled in sprawling suburbia, municipal streets have had to absorb traffic originating well beyond the limits of the cities themselves. To an increasing extent, these traffic problems have ceased to be those of the municipalities alone and have more and more become metropolitan problems, and problems of interurbia-of large urgan regions which more often than not transcend the boundaries of the States themselves.

Problems of coordinating urban, suburban, semirural, and intercity highway facilities daily become more acute. Increasing population migration into metropolitan areas and the concurrent increase in the number of motor vehicles in use in these areas make it mandatory that Federal resources-both technical and financial-reflect the growing seriousness and immediacy of the overall transportation problem facing these areas-and the Nation.

As we have already intimated, in our judgment the most formidable and immediate of our transportation difficulties exist in and around our urban areas. And let me point out here that, in speaking of transportation, we are speaking of the movement of both people and goods. In urban areas the movement of goods is as important or perhaps in some instances more important than the movement of people. Our city, county, State, and Federal economy depends, to a very great ex

tent, on the efficient movement of goods and people through our heavily populated urban areas. It is our belief that the Federal Government and the respective States must devote a larger share of their efforts and resources to the solution of urban transportation problems. I would like to point out that I do not look at this highway program as an aid, or a giveaway program, or whatever we used to call it. It is a cooperative program and a recognition by Congress of their responsibility in the overall network of streets and highways of this country, and the overall importance of highways to our national economy. It cannot be compared in any way to the WPA programs, where they were make-work programs. These are must programs. We recognize that the eventual solution of these pressing matters will depend, to a large extent, on action taken by our respective State highway departments. We have gone on record on numerous occasions-both before this committee and through our State municipal leagues before the State government-urging greater emphasis toward developing solutions of urban highway and transportation problems. Because we believe it is important for the Members of the Congress to know precisely how the Nation's municipalities are reacting to local, State, and Federal roads programs, and because we consider it pertinent to the matter now before you, I should like to quote several sections of our national municipal policy on desirable State action in the development of adequate highway systems to serve all of our people.

I would like to call attention to our new national policy adopted at our meeting at San Francisco the first of December. I would like to read one section of it, because I think it tells you how we go about establishing policies by and for cities.

The national municipal policy is the vehicle through which the 12,530 municipalities affiliated with the American Municipal Association move forward together toward the goal of better local government.

The policy sets forth the aims and purposes of municipalities. It suggests broad areas of responsibility for municipal, State, and Federal authorities on matters affecting localities.

Formulation and execution of national municipal policy is a democratic process. Starting in midsummer each year, the membership is polled for policy suggestions. New and previously approved statements are then carefully reviewed by officials of member cities, the 47 State leagues of municipalities, special committees, and finally by the resolutions committee. Those which are approved by the resolutions committee are submitted for consideration by the policymaking body which consists of the voting delegates to the annual American Municipal Congress.

Once adopted, the policy becomes the foundation around which municipal officials, acting through their State leagues of municipalities and the American Municipal Association, build their legislative action programs in city councils, State legislatures, and the National Congress. It is being distributed to representatives of all levels of government and others to promote increased understanding and support for these programs which vitally affect the great majority of our people.

22. HIGHWAYS, ROADS, AND STREETS

Motor vehicle traffic in and around cities threatens to choke the economic life of these areas. The terminals for highway traffic-passenger cars, trucks, and buses-are in the cities. The same urban centers are the hubs of State, county, and Federal highway systems. Accordingly, traffic density is high in urban areas so that now more than half of the vehicle mileage is on urban streets. These streets, highways, and expressways within the cities and in

corporated areas cost several times as much per mile as rural roads. Municipal street and road problems are critical. We therefore resolve:

(The document referred to is as follows:)

THE NATIONAL MUNICIPAL POLICY 1958

Municipal Association Movement

The municipal governments of America should represent the public interest in matters of State and National policy affecting the lives of the citizens. Without intending to arouse a conflict between public and private interests it is apparent that private interests make their impact in State and National affairs through their associations. It may be said that the Congress and the State legislatures represent the public interest, but they also represent the private interests as well, since they were selected by the private citizens and not by some other public body. Therefore State associations and a national organization of municipal governments may appropriately represent the public interest at the State and National levels in matters which are generally the local responsibility of municipal officials. (1956.)

American Municipal Association, Washington and Chicago

NATIONAL MUNICIPAL POLICY OF THE AMERICAN MUNICIPAL ASSOCIATION The national municipal policy is the vehicle through which the 12,530 municipalities affiliated with the American Municipal Association move forward together toward the goal of better local government.

The policy sets forth the aims and purposes of municipalities. It suggests broad areas of responsibility for municipal, State, and Federal authorities on matters affecting localities.

Formulation and execution of national municipal policy is a democratic process. Starting in midsummer each year, the membership is polled for policy suggestions. New and previously approved statements are then carefully reviewed by officials of member cities, the 47 State leagues of municipalities, special committees, and finally by the resolutions committee. Those which are approved by the resolutions committee are submitted for consideration by the policymaking body which consists of the voting delegates to the annual American Municipal Congress.

Once adopted, the policy becomes the foundation around which municipal officials, acting through their State leagues of municipalities and the American Municipal Association, build their legislative action programs in city councils, State legislatures, and the National Congress. It is being distributed to representatives of all levels of government and others to promote increased understanding and support for these programs which vitally affect the great majority of our people.

PATRICK HEALY, Jr., Executive Director.

A SUMMARY OF FEDERAL LEGISLATIVE AND POLICY OBJECTIVES FOR 1958 (Details will be found in the complete statements following this summary.) Census Institution of a quientennial census of population. Adequate funds for the completion of the 1957 census of governments. Civil defense: An adequate program with the Federal Government assuming 75 percent of the administrative costs of recognized civil defense agencies and full financial responsibilities for the purchase and maintenance of all equipment for civil defense.

The establishment of a civilian Department of Civil Defense with a Secretary of Civil Defense.

The development of a nationwide system of shelter protection against effects of nuclear explosives.

A broad program for the training of State and local civil defense personnel. Depressed urban areas: Federal assistance for those communities which suffer persistent unemployment.

Disaster insurance: A Federal plan for natural disaster insurance.

Municipal bonds: Federal authorization of commercial banks to underwrite revenue bonds.

Broaden the market for municipal bonds by permitting investment companies to distribute the interest on such bonds without loss of the tax exemption. Payment in lieu of taxes: A broad system of payments in lieu of property taxes in State and local governments.

Tax avoidance: Prohibit private contractors doing work for the Federal Government from being exempt from State and local taxes normally imposed on private persons engaged in similar operations.

Permit States and local governments to subject persons to liability for payment of property taxes on property located in Federal areas.

Tax withholding: Provide for the withholding of municipal taxes at Federal installations on the same basis as such taxes are withhelld by private employers. Hospital construction: The Hill-Burton Act for hospital construction should be extended for an additional 5 years with construction grants being made directly to metropolitan areas.

Public housing: Put greater emphasis on the specialized needs of the large family, the senior citizen, the fatherless family, and on the need to integrate public housing into the normal total community.

FHA programs: A thorough administrative and legislative review of the FHA 207, 213, 220, and 221 programs.

Provide for a federally insured debenture to promote the financing of new rental housing.

Intergovernmental relations: A permanent national commission on all phases of Federal-State local relations.

Juvenile delinquency: Establish a National Advisory Committee on Juvenile Delinquency, provide grants-in-aid to State and local governments to combat juvenile delinquency and to train personnel in the field of juvenile delinquency.

Libraries: Extend the program of Federal grants to rural library systems to cover metropolitan library systems.

Federal aid to metorpolitan areas: Recognition of the metropolitan areas in the earmarking of Federal grant-in-aid funds.

Radio communications: Appointment of a radio study group similar to the 1944 Radio Technical Planning Board.

Social security: Extension of optional social-security coverage to municipal police and firemen in all States.

Surplus Federal property: Sale to State and local governments of Federal surplus property at private or negotiated sale.

Airports: Aid for airorts to be continued on a long-term authorization basis. Civil Aeronautics Board: Legislative investigation should be made of the apparent inability of the CAB to process route certification with reasonable efficiency and in a reasonable amount of time.

Highways: Amend existing legislation so that secondary as well as major city streets within the corporate limits of municipalities are eligible for Federal aid in the same proportion that Federal aid is available for roads outside of the cities.

To provide that any further increases to the interstate mileage be equitably shared with the urban areas on the basis of need.

To prevent any diversion of highway funds from the relocation of privately owned utilities.

The Bureau of Public Roads is urged to authorize the inclusion of plans and specifications for mass transit accommodations in the planning of interstate highways.

Mass transit: Establish a Federal lending agency in the transit field to assist transit companies in providing needed capital for improvements.

Urban renewal: The President is urged to appoint a new Advisory Committee on Urban Renewal.

Increase the Federal share of net project costs from two-thirds to four-fifths. Authorize a 10-year urban renewal program with annual authorizations of additional capital grant reservations of $500 million a year.

Provide for a greater share of the program's resources to redevelopment for commercial and industrial purposes.

Permit acquisition of project land at an earlier stage than is now possible. Authorize URA to accept certifications of local public agencies as to local actions taken.

Allow capital improvements to become eligible for prior approval as local noncash grants-in-aid.

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