will have a contingent liability of approximately $47 million. The total amount guaranteed under this program in the preceeding statement was $244 million. Do I take it $197 million has been repaid?

Mr. STAFFORD. No, sir; the Government has had to pick up a goodly share of that.

Mr. BOLAND. How much of the $244 million has the Government already picked up?

Mr. STAFFORD. The Government has paid off $103,272,000 in principal plus $4,002,000 in interest. To date $4,446,000 has been repaid on these defaulted loans.

Mr. BOLAND. Has been repaid?

Mr. STAFFORD. Yes, by the railroads.

Mr. BOLAND. As I look at this statement the summary of outstanding balances on the defaulted loans, as of August 31, the total is $102,828,000. Is that correct?

Mr. STAFFORD. Yes.

Mr. McFALL. Mr. Steed?

GOVERNMENT CONTROL OF COLLATERAL

Mr. STEED. If I read this correctly, you have Erie-Lackawanna bonds in the amount of $23.4 million, and then $9,641 shares of stock all of which has a going value estimated today at $5.7 million. When you pay this $12 million, do you take any different control of these securities than you now have?

Mr. MCCORMICK. Sir, upon payment of the loan, the collection there is turned over to the Department of Justice by law. As I understand their practice, it is not to try to sell these securities at this time, but to hold them until the reorganization of the railroad is completed, then seeing how the Government fares. They may receive a different type of bond in exchange for the bond they now hold, or it is even possible they may receive capital stock. We really don't know until the reorganization plan is finally completed.

Mr. STEED. But the Government does in fact become the sole owner of these securities and is free to do as it chooses?

Mr. MCCORMICK. Yes, sir.

Mr. MATTRAS. Sir, the securities are physically placed in the hands of the U.S. Treasury; that is, he takes possession of them. They do belong to the Government, but, of course, the Government is limited in what it can do with them, by virtue of the court control of the reorganization proceeding.

Mr. McFALL. This is all involved in the reasonable estimate of the value that you were discussing earlier?

Mr. MATTRAS. That is right, sir.

Mr. McFALL. Any further questions? Gentlemen, we thank you very

much.

Mr. STAFFORD. Thank you, sir.

DEPARTMENT OF TRANSPORTATION

NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

WITNESSES

DOUGLAS W. TOMS, NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATOR

JAMES E. WILSON, ASSOCIATE ADMINISTRATOR FOR TRAFFIC SAFETY PROGRAMS

ROBERT L. CARTER, ASSOCIATE ADMINISTRATOR FOR MOTOR VEHICLE SAFETY PROGRAMS

DAVID B. BREEDON, ACTING ASSOCIATE ADMINISTRATOR FOR RESEARCH AND DEVELOPMENT, RESEARCH INSTITUTE

JACK L. GOLDBERG, ASSOCIATE ADMINISTRATOR FOR PLANNING AND PROGRAMING

LAWRENCE R. SCHNEIDER, CHIEF COUNSEL

ALBERT J. SLECHTER, DIRECTOR, OFFICE OF EXPERIMENTAL SAFETY VEHICLE PROGRAMS

WILLIAM J. HENEGHAN, JR., DIRECTOR, OFFICE OF BUDGET

OFFICE OF THE SECRETARY WITNESSES

WALTER R. BOEHNER, DIRECTOR, OFFICE OF BUDGET
ANGELO P. PICILLO, CHIEF, FACILITIES MANAGEMENT DIVISION

Mr. McFALL. The next supplemental request to be considered by the committee is that of the National Highway Traffic Safety Administration.

With us we have our friend, the Administrator, Mr. Douglas W. Toms, who will present a statement concerning the supplemental request.

STATEMENT OF THE ADMINISTRATOR, NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

Mr. Toмs. Thank you, Mr. Chairman, Mr. Boland, Mr. Steed, and members of the staff.

It is a pleasure to testify today in support of our requests for a 1973 appropriation for traffic and motor vehicle programs and an increase in the obligation limitation on State and community highway safety grants (S. 402 programs).

For traffic and motor vehicle programs, we are requesting an appropriation of $37.3 million to carry out activities authorized under the National Traffic and Motor Vehicle Safety Act of 1966. This request was reviewed in the hearings on the original 1973 budget submission, which were held in March 1972. However, action on the request was deferred since an extension of authorizing legislation had not been enacted at the time the regular 1973 appropriation bill was reported. An authorization for traffic and motor vehicle programs was approved (709)

by the House on August 15, 1972. The bill approved by the House (H.R. 15375) provided for an authorization of $37,461,000 to continue the program in 1973. An authorization bill for 1973 is currently pending in the Senate. So far in 1973, these programs have been carried out under the continuing resolution at the previous year rate of obligation. For State and community highway safety grants, we are seeking an increase of $35 million in the present 1973 obligation limitation of $85 million to undertake an intensified traffic enforcement effort, which will be complemented with related judicial countermeasures, to combat the worsening highway fatality trend. Based on fatality reductions recorded in areas where NHTSA has financed selective traffic enforcement projects, we believe that these countermeasures hold the greatest capability to cope with present fatality reverses.

TRAFFIC AND MOTOR VEHICLE PROGRAMS-$ 37,300,000

The level of financing sought in this request is $61,000 less than the amount of $37,361,000 originally requested in the 1973 Presidential budget document, as amended for increased pay costs. The reduction takes into account the fact that new positions requested for 1973 could not be filled as early as originally contemplated in recognition of a delay in appropriation enactment. The funds requested are needed for the development of motor vehicle safety standards and associated compliance procedures and research activities in support of motor vehicle programs.

The requested funding level provides for an increase of $6.1 million over 1972 adjusted requirements. The increase covers the addition of 13 positions over the level authorized for 1972. The positions are needed for the next stage of a phased staffing plan for our compliance test facility. Under the contract program, provision has been made for an increased level of effort for standards enforcement and defects investigation. In addition, an expansion is proposed for the motor vehicle research program area, required mainly to initiate a crash recorder program and to advance the experimental safety vehicle program to its next planned stage of development.

During the course of the Senate hearing on the 1973 appropriation request for the "Traffic and highway safety" appropriation, we were asked for an estimate of the additional resources that would be required to undertake an accelerated schoolbus safety program. In response to that inquiry, we provided an estimate of 20 additional positions, of which 11 positions were tentatively allocated to traffic safety programs and nine positions were assigned to traffic and motor vehicle programs. As a result of a Senate Appropriation Committee proposal and subsequent conference action, NHTSA was authorized 10 positions to accelerate its schoolbus safety efforts. These were positions which fall under the traffic safety authorization. Positions for the program which would fall under the traffic and motor vehicle authorization were not acted upon.

STATE AND COMMUNITY HIGHWAY SAFETY GRANTS (S. 402) PROGRAMS— $35 MILLION

For the State and community highway safety grant program, we are requesting an increase of $35 million in the currently approved obli

gation level of $85 million. The additional funds are needed to initiate an emergency program to combat a projected increase in highway deaths of intolerable proportions. Our latest assessment indicates there will be 57,250 to 57,500 highway deaths in 1972, compared to 54,700 in 1971. Under the emergency plan, NHTSA will utilize the additional funds to launch an intensive program of increased traffic law enforcement and related judicial countermeasures in State courts. The program intensification calls for an increase in both the number and hours of police traffic surveillance and enforcement in high accident locations, a procedure that has been consistently demonstrated to reduce the number of traffic accidents and resulting fatalities. It also encourages the devolpment of a statewide uniform stringent penalty relative to conviction of major hazardous traffic violations, concentrating on drunk and reckless driving.

As indicated in our 1971 report to the Congress, traffic deaths have decreased in spite of the fact that we now more cars, drivers, cyclists, and pedestrians on the roads. The report further indicated that the rate of death per 100 million vehicle miles driven has declined from 5.5 in 1967 to 4.7 in 1971, a 5-year decrease of 14.55 percent. Had the old rate continued, 65,000 persons would have died in 1971 rather than the 54,700 deaths actually recorded for 1971. These statistics for prior years reflected a very encouraging trend. Today, however, we are gravely concerned about the mounting deaths in 1972 which constitute a critical reversal in the fatality trend which could, if not checked, soon lead to an insufferable level of 60,000 annual highway deaths. In addition to the loss of human life, highway fatalities and injuries are also estimated to cost the economy $46 billion annually in lost wages, medical expenses, and insurance payments and other expenses. Our emergency program, therefore, will also operate to reduce economic losses. Under the operational plan conceived to cope with the fatality crisis, each State will identify high fatal crash areas and locations and determine the amount of manpower and resources needed to bring about a reduction of crashes in these areas. Emphasis will be placed on alcohol-related crashes and rural areas. In achieving these objectives, law enforcement agencies will utilize existing personnel on an overtime, days-off, or reassignment basis. States will establish State motor vehicle death reduction goals in the form of a monthly target of maximum fatalities. This program will utilize the latest experience gained under NHTSA-sponsored selective enforcement activities such as those in Flint, Mich., and Sacramento, Calif., where reductions have been brought about in fatalities.

Supplementing the law enforcement program will be parallel programs of public information and judicial countermeasures. Under the judicial program, emphasis will be placed on the establishment of a statewide uniform stringent penalty policy applicable to major hazardous traffic violations, concentrating on drunk and reckless driving. The public information effort will strive for maximum public awareness to obtain a positive citizen response to the fatality problem. The program will encourage statewide press conferences to focus on prospective increases in State deaths and descriptions of the countermeasure programs and other aspects of the fatality crisis. In addition, the facilities of civic, religious, and fraternal organizations will be solicited to assist in the effort to reduce traffic deaths.