In conclusion, New Mexico believes in and recommends the following: 1. Federal aid for road and street construction should be continued. 2. The present Federal-State cooperative relationships should not be changed. 3. Federal aid for roads should be apportioned among the States on the basis of a definite formula. 4. The proposed formula for apportionment based on one-half population, one-quarter miles of post roads, and one-quarter area is equitable for distribution of Federal aid in the first 3 post-war years. 5. Road construction should be done by contract. 6. One billion dollars per year of Federal aid for road construction is a minimum requirement for the first 3 years. 7. That additional funds over and above that proposed in the bill under discussion be authorized for the construction of forest roads. 8. That the necessary action be taken to make immediately available funds to permit the acquisition of rights-of-way so as to expedite the undertaking of actual construction. New Mexico likewise promises the following: 1. To provide State funds for matching the amount of Federal aid as contained in H. R. 2426 and S. 971, as originally introduced. 2. To be ready so that the required post-war road-construction program can be immediately started when the war ends. The CHAIRMAN. Thank you for your very splendid statement. Mr. WHITTINGTON. What is the gasoline tax rate in your State? Mr. HEALY. Five cents. Mr. WHITTINGTON. Any for relief or institutional aid? Mr. HEALY. None whatever. There is what you might call a diversion in the motor-vehicle registration that totals about $600,000, but that is actually not a diversion. Mr. WHITTINGTON. What is it called? Mr. HEALY. It is actually a property tax transferred to the general fund, and it is used by the counties for the purchase of rights-of-way and for county-road construction. Mr. WHITTINGTON. You mean your gasoline tax is construed a part of it? Mr. HEALY. That is not the gasoline tax. Mr. WHITTINGTON. I am just asking about gasoline alone gasoline and motor vehicle. Do you construe some part of that to be a property tax? Mr. HEALY. Yes; it was originally a property tax on automobiles. Mr. WHITTINGTON. Do you still have a property tax? Mr. HEALY. No; we do not. Mr. WHITTINGTON. Many States collect property taxes on automobiles and an automobile license tax at the same time. My question is confined to the generally effective taxes, gasoline and license. Do you divert any of that? Mr. HEALY. None whatever. Mr. WHITTINGTON. You don't do that? Mr. HEALY. No, sir. Mr. WHITTINGTON. What is the indebtedness against your highway program? Mr. HEALY. It is $20,250,000. Mr. WHITTINGTON. An indebtedness against your State? Mr. HEALY. That is right. Mr. WHITTINGTON. What is your general revenue indebtedness? Mr. HEALY. We don't have any other indebtedness. Mr. WHITTINGTON. And this $20,000,000 is payable out of your highway fund? Mr. HEALY. Yes, sir. Mr. WHITTINGTON. You have about 4,000 miles of first-class highways? Mr. HEALY. That is right. Mr. WHITTINGTON. And you only have $20,000,000 outstanding? Mr. HEALY. That is right. Mr. WHITTINGTON. You are in good shape then. The CHAIRMAN. Are there any questions? If not, the committee will recess until 10 o'clock tomorrow. (Whereupon at 12:15 p. m, the committee adjourned to 10 a. m. Saturday, March 11, 1944.) FEDERAL AID, FOR POST-WAR HIGHWAY CONSTRUCTION 1 SATURDAY, MARCH 11, 1944 HOUSE OF REPRESENTATIVES, The committee met, pursuant to notice, for further consideration of H. R. 2426 and H. R. 4170, the Honorable J. W. Robinson (chairman) presiding. The CHAIRMAN. The committee will now take up further hearings on H. R. 2426. The first witness to be called is from North Dakota, Mr. J. S. Lamb. Is Mr. Lamb present? Mr. LAMB. Yes, sir. The CHAIRMAN. Proceed. STATEMENT OF J. S. LAMB, STATE HIGHWAY COMMISSIONER, STATE OF NORTH DAKOTA Mr. LAMB. I have a prepared statement here, and I will just summarize that briefly. The CHAIRMAN. You may file your prepared statement, Mr. Lamb. Mr. LAMB. Thank you, sir. North Dakota's position on the legis lation pending before your committee can be concisely stated in seven short statements: First. North Dakota is more dependent on farm income than any other State in the Union. Second. In the past 25 years we have undergone four periods of economic upheaval which have not permitted of much highway construction. Third. North Dakota in the past few years contributed in excess of $1,000,000 per year in Federal highway-users' taxes over and above our returns from Federal aid for highway construction. Fourth. North Dakota is not as favorably situated on a matching basis as other States in the western half of the Union. Fifth. It will cost in excess of $150,000,000 to modernize the entire North Dakota State highway system. Reconstruction and modernization of the primary system alone will cost $86,500,000. Sixth. North Dakota will be unable to avail itself of Federal funds in any sizable amount if the matching ratio is greater than 25 percent. Seventh. Any highway investment made in North Dakota will be repaid many times over to national consumers of farm products and to highway users. With the committee's permission, I will allot myself 8 additional minutes in which to elaborate on our position. A complete copy of this statement, together with supporting data, is being left with you. Pertinent information which we feel your committee desires is contained therein. We will merely present a short résumé. 98217-44-vol. 1-24 365 North Dakota is more dependent on agricultural income than any other State in the Union. At least three-fourths of the total income of the State is derived from agricultural products. Since the inception of North Dakota's State highway laws and, in fact, since the beginning of the United States Federal-Aid Act-North Dakota has been handicapped in its highway work by various economic conditions which have prevented the State from developing its highways to the same degree as has been done in most other States. The North Dakota State Highway Department was started about the time of World War I, as was the Federal-Aid Act. During the first years of the highway department the Nation was at war, and therefore very little was done on highway work. After the close of the First World War, there was a very short period when the State was in good economic condition, but beginning with and extending all through the decade of the twenties an unprecedented agricultural depression retarded development of all kinds in the State. During this decade nearly 500 North Dakota banks closed their doors. At the first of the year in 1920 North Dakota had some 719 State banks with deposits of $128,000,000, and during the following 12 years a total of 561 banks closed up shop, so deposits dropped to $20,000,000. During the decade of the thirties the economic conditions in North Dakota were seriously affected, not only by the national and world-wide depression which began in 1929 but by unprecedented drought conditions which lasted throughout the thirties. When these drought conditions, as well as the general economic conditions, began to be alleviated in 1940, the Second World War had begun and largely curtailed not only the possibility of construction but also greatly curtailed the income of the department. Consequently, as a result of these economic conditions, North Dakota is, and has been, seriously in arrears in its highway construction. Summary of liabilities, North Dakota State banks North Dakota for the past 5 or 6 years has had a constitutional amendment prohibiting the diversion of highway users' taxes; hence every cent of State-imposed highway users' taxes is spent on our highways, and for no other purpose. Furthermore, in the past few years North Dakota has contributed in highway users' taxes imposed by the United States in excess of $1,000,000 a year over and above what the United States has contributed for highway work in North Dakota. |