The Commissioner of Public Roads is authorized to enter into agreements with the State highway departments for the making of surveys and plans and the acquisition of rights-of-way. His approval of any such agreement shall be a contractual obligation of the Federal Government for the payment of its pro rata share of the cost thereof when the funds provided herein are made available for construction.

SEC. 3. The sums authorized in section 2 shall be apportioned among the States in accordance with the provisions of the Federal Highway Act of 1921 as amended and supplemented, except that such apportionment shall be based as follows: One-half population, one-fourth area, one-fourth post-road mileage.

SEC. 4. The sums apportioned for each year shall be available as follows: Onehalf for projects on the system of Federal-aid highways and one-half for projects in urban areas and for secondary and feeder roads. The division within any State between projects within urban areas and secondary or feeder road projects shall be made in the proportion which the population within urban areas, and rural areas bears to the total population of the State according to the latest available Federal census.

SEC. 5. The Federal share payable on account of any project provided for by the funds made available by this Act shall not exceed 75 per centum of the cost thereof plus a percentage of the remaining 25 per centum of such cost in any State containing unappropriated and unreserved public lands, other Federal lands, and nontaxable Indian lands, individual and tribal, exceeding 5 per centum of the total area of all lands therein, equal to the percentage that the area of such lands in such State is of its total area.

SEC. 6. If the Commissioner of Public Roads shall determine that it is necessary for the expeditious completion of projects undertaken pursuant to this Act, he may advance to any State from funds heretofore or hereafter made available the Federal share of the cost thereof to enable the State highway department to make prompt payments for work as it progresses. The funds so advanced shall be deposited in a special trust account by the State treasurer, or other State official authorized under the laws of the State to receive Federal-aid highway funds, to be disbursed solely upon vouchers approved by the State highway department for work actually performed in accordance with plans, specifications, and estimates approved by the Public Roads Administration under the provisions of this Act. Any unexpended balances of funds so advanced shall be returned to the credit of the appropriation from which the funds have been advanced.

SEC. 7. There shall be designated within the continental United States an Interregional Highway System not exceeding forty thousand miles in total extent so located as to connect by routes, as direct as practicable, the principal metropolitan areas, cities, and industrial centers of each geographic region of the United States with metropolitan areas, cities, and industrial centers of like importance in all other geographic regions of the United States, and to connect at suitable border points with routes of continental importance in the Dominion of Canada and the Republic of Mexico. Within each geographic region the routes of the Interregional Highway System shall be initially selected by joint action of the State highway departments of the States comprising the region. The routes initially selected shall be reviewed by the Public Roads Administration and such revision as may be necessary to provide for the interconnection of the routes initially selected at the boundaries of geographic regions shall be prescribed by the Commissioner of Public Roads after consultation with the State highway departments of the regions affected. All highways or routes included in the Interregional Highway System as finally selected, if not already included in the Federal-aid Highway System, shall be added to said system without regard to any mileage limitation.

SEC. 8. The Commissioner of Public Roads is authorized to cooperate with the State highway departments in the location, development, and construction of offstreet facilities for the parking of vehicles and the construction of highway facilities to give access to and between transportation terminals, and all such facilities shall be considered to be highway projects. Where provision is made by any State for the permanent prohibition of parking of vehicles within the roadway or street portion of any through highway over which the State has been legally vested with traffic control, and which forms a section of the system of Federal-aid highways, funds authorized by this Act are hereby made available on the pro rata basis provided by this Act for the location, development, and construction of off-street vehicle-parking facilities to serve the area where parking on such highways is so prohibited, and for facilities to give access to and between

transportation terminals, including the cost of acquiring the land necessary for any such facilities.

SEC. 9. By agreement with the State highway department of any State, such new or additional rights-of-way, lands, or interest in lands in such State as may be required for any project authorized by this Act, may be acquired by such highway department or by any political subdivision of such State, and the Commissioner of Public Roads may advance or reimburse the share of the cost (including title evidence, plats, appraisals, consideration to landowner and property damages, and any fees incidental thereto) of such acquisition payable by the Federal Government: Provided, however, That if the highway department of any State shall submit to the Federal Works Administrator plats, descriptions, appraisal data, and title evidence relating to lands or interest in lands required for the right-of-way for any project under this Act, including a statement as to the efforts made to acquire the same and to obtain possession and right of entry thereto, and if the Federal Works Administrator shall find that the highway department or political subdivision of such State within which is located the road for which such lands or interest in lands is required after proper effort under the laws of the State is unable to obtain possession and the right to enter upon and to use the required lands or interest in lands, improved or unimproved, with sufficient promptness, the Federal Works Administrator is authorized to acquire, prior to approval of title by the Attorney General in the name of the United States, such rights-of-way, lands, or interest in lands as may be required in such State for such project, by purchase, donation, condemnation, or otherwise, in accordance with the laws of the United States (including the Act of February 26, 1931, 46 Stat. 1421) and may enter upon and take possession thereof, and expend public funds for projects thereon, prior to approval of title by the Attorney General (without regard to the provisions of sections 355, 1136, and 3709 of the Revised Statutes, as amended, and without regard to State, municipal, or local laws, ordinances, or regulations). The costs incurred by the Federal Works Administrator 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, plats, advertising, appraisals, the consideration to be paid for such lands or interest in lands, including property damage, and any fees incidental to such acquisition, and shall be payable out of the funds available for paying the cost, or the Federal share of the cost, of the project for which such rights-of-way, lands, or interest in lands are acquired. The Federal Works Administrator is further authorized and directed, by proper deed executed in the name of the United States, to convey any lands or interest in lands acquired in any State under the provisions of this section to the highway department of such State, or to such political subdivision thereof as its laws may provide, upon condition that such highway department or political subdivision will accept the same and will maintain the project constructed thereon without cost to the Federal Government.

The CHAIRMAN. I will ask the clerk to read the report on this bill from the Federal Works Agency.

The CLERK. The report is written on the letterhead of the Federal Works Agency, Washington, dated May 29, 1943, and is addressed to the Honorable J. W. Robinson, chairman, Committee on Roads, House of Representatives [reading]:

DEAR MR. ROBINSON: Careful consideration has been given to the bill, H. R. 2426, transmitted with your letter of April 17 to the Administrator, Federal Works Agency, with request for an expression of the views of this Agency thereon. This bill would authorize an appropriation of $3,000,000,000 for a post-war program of highway construction to be undertaken by the Federal Government in cooperation with State highway departments on a basis very similar to that provided by the Federal Highway Act. The sum authorized to be appropriated would become available at the rate of $1,000,000,000 a year for each 3 successive years following the end of the present war. This authorization of appropriation appears in section 2 of the bill, and it is believed desirable to insert in such section, line 21, page 2, after the word "each" the words "of the first." The reason for this suggestion is that the language now appearing at this point is not clear and might be construed to cover a period of 9 years, whereas it is believed that the intention was to cover the period represented by the first 3 successive post-war years.

The funds authorized to be appropriated would be apportioned among the States in accordance with section 21 of the Federal Highway Act, except that the factors

of apportionment would be changed so that the funds would be apportioned onehalf on the basis of population, one-fourth on area, and one-fourth on post-road mileage. This change preserves the factors of apportionment in existing Federalaid road legislation but gives greater weight to the population factor in recognition of the more densely populated States where congestion of traffic is greatest. The second, third, and fourth paragraphs of section 2 of the bill, beginning with line 23, page 2, and ending with line 20, page 3, are somewhat ambiguous and indefinite, and it is doubtful if their present language will accomplish the purpose intended. It is believed, therefore, that these three paragraphs should be revised and consolidated into one paragraph, to read as follows:

"The authorization for the first year shall be apportioned among the States within thirty days from the passage of this act and shall be available for the making of surveys and plans and for the acquisition of rights-of-way immediately after apportionment and shall be available for construction upon the termination of the present war emergency as declared by the President, or on such earlier date as the President or the Congress may direct. The authorization for the second year shall be apportioned among the States within thirty days following the termination of the present war emergency or within thirty days after such earlier date as the President or the Congress may direct, and the authorization for the third year shall be apportioned among the States one year after the date of apportionment of the authorization for the second year: Provided, That the authorization for the second year shall be available for the making of surveys and plans and for the acquisition of rights-of-way immediately after apportionment, and shall be available for construction one year after the date of availability for such purpose of the authorization for the first year; and the authorization for the third year shall be available for the making of surveys and plans and for the acquisition of rights-of-way immediately upon apportionment, and shall be available for construction one year after the date of availability for such purpose of the authorization for the second year: And provided further, That the Commissioner of Public Roads may enter into agreements with the State highway departments for incurring obligations for projects in accordance herewith, and his approval of any such agreement for any project shall be deemed a contractual obligation of the Federal Government for the payment of its proportional contribution thereto."

The bill (section 4) provides that the sums apportioned for each year shall be available as follows: One-half for projects on the system of Federal-aid highways and one-half for projects in urban areas and for secondary or feeder roads. Section 5 of the bill provides that the Federal share payable on account of any project undertaken with the funds to be made available shall not exceed 75 percent of the cost plus a percentage of the remaining cost as now authorized under the Federal-aid legislation in States having more than 5 percent of their total area in unappropriated and unreserved public lands, other Federal lands, and nontaxable Indian lands, individual and tribal. It is believed that these provisions are desirable.

Provision is made in section 9 for lands necessary for rights-of-way to be acquired under certain conditions by the Federal Works Administrator, if the States cannot after proper effort acquire such lands with sufficient promptness under their own laws and procedure.

It is believed that legislation of this character should be enacted in order that plans may be prepared for the post-war period. Favorable consideration of the bill, therefore, is recommended.

This report has been referred to the Bureau of the Budget and that Bureau has returned it with the following comments:

"You are advised (a) that the provisions of sections 5 and 8 would not be in accord with the program of the President; (b) that the provisions of section 1 insofar as they change the definition of the word 'construction' would not be in accord with the program of the President; (c) that the provisions of that portion of section 2 which provide for surveys and plans and the payment by the Federal Government of a pro rata share thereof, would not be in accord with the program of the President; and (d) that there would be no objection to.section 9 of the bill relating to the advancing of money for rights-of-way or using the Federal Works Agency authority to condemn property provided it does not involve the assumption on the part of the Federal Government of any part of the cost of such rights-of-way."

ALAN JOHNSTONE,
General Counsel.

The CHAIRMAN. For the benefit of a number of people who are here I will say that some of our committee are ill this morning, and one or two are out of town on other business, so that our committee necessarily will not be all represented.

However, as you know, the purpose of these hearings is to make a record, and this will be done very fully and very completely in every way so that we will have the story before us when we close the hearings. It is anticipated, or thought, that these hearings will extend over a period of several days at least, possibly several weeks, and we are anxious to hear from everyone who is interested in this particular class of legislation, to have his story and his analysis of the bill. We want to hold full and complete hearings and we desire to have all sides of this question thoroughly discussed and analyzed. After that is done the committee will go to work on the problem and we have hopes that we will be able to get out a bill that will be satisfactory and that we hope can be endorsed by everyone.

I will say frankly that this bill is prepared largely by the American Association of State Highway Officials, and it was their thought that it represents about the type of legislation that should be enacted. It was introduced by me.

There is nothing sacred about this particular bill. We are anxious to attack this problem in a fair, honest way and solve it. I am sure the committee will be very happy to hear any ideas, thoughts, or suggestions you people here have.

The bill in its present form has been endorsed by the Associated General Contractors of America, and at this point I wish to submit for the record copy of a resolution adopted by that organization.

The Associated General Contractors of America, in the twenty-fifth annual meeting in Chicago, Ill., February 7-9, 1944, urge that the Congress and the President approve legislation to provide a post-war highway construction program along lines recommended by the American Association of State Highway Officials. The association points to the tremendous volume of war construction which has been executed at unprecedented speed by the industry, and reports that the industry will have adequate capacity to carry out the proposed program. The association urges further that the highway construction program be undertaken through the contract system, which provides the greatest value for the money. The association reaffirms its confidence in the Public Roads Administration, under the direction of Commissioner Thomas H. MacDonald, to administer the post-war highway construction program in cooperation with the State highway departments.

Copies of this resolution shall be sent to appropriate committees of Congress. This morning we have the chairman of the American Association of State Highway Officials, Mr. Hadden, who has done considerable work with reference to this legislation. And I am very glad to note that we have present one of our highly respected and older Members of the House from Mr. Hadden's State. So I am going to take the liberty of asking Mr. Ludlow to introduce Mr. Hadden.

STATEMENT OF HON. LOUIS LUDLOW, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF INDIANA

Mr. LUDLOW. Mr. Chairman, ladies and gentlemen. This is a great honor, Mr. Chairman, you have conferred upon me in inviting me to present Mr. Hadden to this audience. If I had in any way anticipated this honor I would have prepared a good "impromptu" address for the

occasion.

Mr. Hadden, I am proud to say, is one of my prize constituents. He has lived in the city of Indianapolis for 23 years; his family has grown up there; his children have been educated there.

He is the first Indiana man to receive the distinguished honor of becoming president of the American Association of State Highway Officials. Mr. Hadden is known in our State as a sound thinker and a straight thinker, and I am sure that in his testimony today he will present some food for thought.

Certainly there is no greater problem facing us in the future than the problem of post-war construction, and in relation to that problem the highway departments will certainly have a most prominent and important part. It is my pleasure and my privilege to present my constituent, Mr. Hadden, and I thank you in advance for the courteous consideration that I know you will give to him and his associates in their testimony before your committee.

The CHAIRMAN. Thank you, Mr. Ludlow. Mr. Hadden will you stand up?

STATEMENT OF SAMUEL C. HADDEN, PRESIDENT, AMERICAN ASSOCIATION OF STATE HIGHWAY OFFICIALS, AND CHAIRMAN OF THE STATE HIGHWAY COMMISSION OF INDIANA

Mr. HADDEN. Mr. Chairman and gentlemen of the committee, first, of course, I want to pay my respects to my own Congressman, Mr. Ludlow.

You know out at Indianapolis we say that Mr. Ludlow is not just a Congressman, he is an institution. My own experience with him has long since convinced me that he is a magician. He has gotten things done that I knew were impossible.

I would like also, as a matter of personal privilege, to introduce my good friend, Congressman Springer. I want my good friends here to know our Indiana Congressmen.

The CHAIRMAN. Will the Congressman stand up and let us all look at him?

Mr. SPRINGER. Since we only see each other every day, that is probably unnecessary.

The CHAIRMAN. Well, there are a number here, Congressman, who probably do not see us every day.

Mr. HADDEN. Now, this statement I have prepared is double-spaced and occupies something less than 14 pages, so it will not take very long to read.

The CHAIRMAN. It will be the purpose of the committee, unless there is some objection, to let Mr. Hadden proceed with his paper without interruption, and then after he has concluded we will start the questioning with the majority members of the committee first. and then go to the minority ranking member, and then on down the committee. Is there any objection to that procedure? If not, it will be followed.

Mr. HADDEN. Thank you, Mr. Chairman. It is only 4 days short of a full calendar year since the highway officials representing the 48 States, Hawaii, Puerto Rico, and the District of Columbia appeared before this committee in support of the enactment, at that time, of a measure authorizing the appropriation of funds for a great