maintenance, and the use largely of teams and smaller equipement on the road- we had to change all of this practice over to mechanical methods of maintenance. This large amount of surplus equipment put into the States just at that critical time, has resulted in building up a very effective maintenance system for the United States as a whole. I think that most of you will agree with the statement that wonderful progress has been made in a few years in building up the highways and keeping them in condition for service. Now it is true that there has been a very large amount of new construction work, but this added efficiency has come largely, in my judgment, not so widely from the new construction work as from the widespread and systematic maintenance of roads with new methods. I may say, Mr. Chairman, that we have made a very lengthy and detailed report covering the operations of the Bureau of Roads upon this matter of surplus distribution, from its beginning up to the 1st of last July. That report is available at any time that any member of the committees of Congress might wish it. It is too long, in my judgment, to publish. There are seven large volumes, but it is complete in detail, and you may have it at any time that any information is desired. When we left the question of the use of highways for transportation at the last session, there had been brought out the principles that were adopted at the transportation conference, which was held here in January, 1924, and in these principles the fact was clearly brought out that all transportation agencies now recognize highway transport as an entity in itself, and that in the future it is to be placed on a recognized footing with rail, waterway, and any other form of transport that may develop in the future. ༢༡ We find that in the attitude expressed toward highway transport by the steam railroads, and to some extent by the electric roads, and to a much less extent by those interested in the waterways, there are certain requirements that they think should be enforced with reference to this form of transportation as it develops. The first of these is adequate regulation. All the States now have regulations requiring motor-vehicle registration and the payment of license fees for the operation of the motor vehicles as such on the highways. These relate to the motor vehicle either owned and operated privately or as a public conveyance, but in addition there are 22 States which exercise a certain amount of control over the operation of motor trucks used as common carriers. That legislation has not extended to one-half of the States as yet. The State agency or board which has control or supervision of the operation of motor-vehicle common carriers is in most every State the public utilities commission or that tcommission which exercises regulatory.control over the railroads and public-service coporations. Control over property carriers: The District of Columbia and 21 States exercise a certain amount of control over the operation of motor trucks used as common carriers, viz: Arizona, California, Colorado, District of Columbia, Illinois, Iowa, Maryland, Michigan, Montana, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Utah, Virginia, Washington, West Virginia, and Wyoming. In most of these States the laws relating to the operation of common carrier motor trucks are very specific and pro vide for a complete system of regulation as to service, fares, routes, schedules, etc. Control over passenger carriers: There are 31 States which regulate the operation of so-called common carrier passenger automobiles. In addition to the above-named States which regulate common carrier motor trucks the following States regulate common carrier passenger automobiles but do not exercise any jurisdiction over common carrier motor trucks: Alabama, Connecticut, Maine, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Wisconsin. No control over common carriers: At the beginning of the year there were still 16 States which did not exercise any definite control over common carrier motor vehicles. The names of these States follow: Arkansas, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, New Mexico, North Carolina, South Carolina, and Texas. Certificates of convenience and necessity: Out of the 31 States which regulate the operation of either common carrier passenger motor vehicles or property motor vehicles, or both, there are 27 which have laws providing that before any common carrier motor vehicle can commence operation a certificate of convenience and necessity issued by the proper regulatory authority must first be obtained. These States are: Arizona, California, Colorado, Connecticut, Illinois, Iowa, Maine, Maryland, Michigan, Montana, Nevada, New Hampshire, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, Virginia, Washington, West Virginia, Wyoming, and the District of Columbia. This requirement that the operators of common carrier motor vehicles procure a certificate of convenience and necessity is taken directly from the provisions of the statutes covering the regulation of steam and electric railroads and of public utilities. The New York Public Utilities Commission uses this language: A public convenience and necessity exists when the proposed facility will meet a reasonable want of the public and supply a need, if existing facilities, while in a sense sufficient, do not adequately supply that need. Thus, it would seem that we are progressing, State by State, to meet those conditions which the railroads, for example, feel ought to be imposed upon the motor vehicles, when used as a common carrier, in that 22 States now have laws regulating the truck as a common carrier, and 31 States regulate the operation of so-called common carrier passenger automobiles. There are 16 States which do not exercise control of common carrier motor vehicles as such. Out of the 31 States which regulate the operation of either common carrier passenger or commodity motor vehicles, or both, there are 27 which have laws providing that before any common carrier motor vehicle can commence operation a certificate of convenience and necessity issued by the proper regulatory authority must be obatined. Fifty per cent of the States do not permit unregulated competition with the railwayṣ. Special franchise taxes: In addition to the license and gas taxes which the common carrier pays, there are special franchise fees which are charged by different States. I have here the fees of California, Connecticut, Illinois, Indiana, Maryland, Iowa, and Ohio, which are perhaps typical. [Reading:] (d) Tax on gross receipts-4 per cent on gross receipts less amounts paid as municipal fees and taxes. These taxes and fees apply to passenger and freight carriers. CONNECTICUT (a) Regular registration and license fees, motor fuel tax, and personal property tax. (a) Regular registration fees and personal property taxes. (b) Passenger carriers: A fee of $1 per 100 pounds gross weight; passengers computed at 125 pounds each. (c) Property carriers: A fee of $1 per 100 pounds gross weight. INDIANA. (a) Regular registration fees, motor fuel tax, and personal property taxes. (b) A fee of $3 per person of rated passenger carrying capacity. Class A. Weighing 3,000 pounds or less one-twentieth cent times seating capacity per mile. Class B. Weighing 3,000 pounds to 7,000 pounds, one-fifteenth cent times seating capacity per mile. Class C. Over 7,000 pounds, one-fifth cent times seating capacity per mile. PROPERTY CARRIERS Class X. Weighing 3 tons or less, one-fifth cent per ton mile. Class Z. Weighing over 6 tons gross, three-fifths cent per ton mile. IOWA (a) Regular registration and license fees. (b) Special fees and taxes: Pneumatic tires, one-eighth cent per ton-mile; solid tires, one-fourth cent per ton-mile. Estimates as follows: Passenger carriers: Ton-mile equal maximum seat capacity times 150 pounds, plus weight of vehicle times number of miles operated; sum thus obtained divided by 2,000. Property carriers: Maximum freight-carrying capacity plus weight of vehicle times number of miles operated; sum thus obtained divided by 2,000. The passenger carriers, for example, in Maryland, pay on the seating capacity. Motor busses weighing 3,000 pounds or less, onetwentieth of a cent times the seating capacity per mile, and a bus weighing 7,000 pounds or over, pays one-fifth of a cent per seat per mile. These charges are made whether the busses run full or empty. They are fixed operating charges per mile. And the motor truck pays, 3 tons or less, one-fifth of a cent per ton-mile, and over 6 tons gross three-fifths of a cent per ton-mile. Mr. ALMON. Before leaving that subject, do you care to discuss, or do you contemplate giving an expression of your views on matters of which you have just called attention, and to make any recommendation as the head of the Bureau of Public Roads, as to what further legislation should be enacted by the various States on that subject? Mr. MACDONALD. Yes; I am coming to that right now. So it would seem that we are approaching, through the action of the individual States, the time when there will be no unregulated competition of the motor vehicle as a common carrier, either of commodities or of passengers, with any other form of transportation. In order to obtain the privilege of operating, it will be necessary for a certificate of public convenience and necessity to be issued by a State agency having control. In general the State bodies which do have these matters in control are not the State highway departments, but the public utilities commissions or the railroad commissions; the same bodies that have jurisdiction over the railroads ordinarily have jurisdiction over the fixing of the regulations as to motor vehicles, and the administration of the laws as to their regulation. The most necessary legislation, at this time perhaps, is that of uniform motor-vehicle regulation between the States, not because of long-distance hauling, in the sense that the railroads operate across the continent, but because motor traffic is a shuttle traffic which disregards all boundary lines. There is now an intense motor traffic between nearby population centers, regardless of whether these population centers are in the same State or in adjoining States. I do not consider that the need is urgent for regulations for longdistance hauling, but because of this shuttle movement between industrial and between population centers; if the States do not put into effect uniform regulations, then the only recourse is to bring the matter, so far as the Federal-aided interstate highways is concerned, under Federal jurisdiction. In my judgment this alternative should be deferred until it seems impossible to accomplish the object otherwise. I do not favor the passing of Federal regulations at this time or at any time in the future if uniform regulations can be brought about through the cooperation of the States between themselves, perhaps assisted, so far as we can assist in bringing that about. If the States will coordinate their traffic regulations, I think it will be well for the control over motor vehicle use and operation to remain a State function, A second desirable condition proposed by those who have looked with some criticism upon the development of motor vehicle traffic is the proper adjustment of taxes and fees. There are complaints that the railroads are paying for the highways, and that matter has been discussed at some length in these hearings. It is true that the regulation and fixing of fees and of taxes is somewhat spotted, as concerns the States, but there is little question in my mind that some of the States are now taxing the motor vehicles up to the maximum, or very near the maximum, for the highways ervice that is being rendered. In other States that is not true. So in the same way as with the regulation of motor vehicles, there ought to be brought about more uniformity with reference to taxes and fees that are imposed upon the motor vehicle as Mr. White has previously stated for the record. In considering the rate of taxes paid by the railroad, it is not a fair criticism to say that the railroads are being unduly burdened to pay for the highways of the country. In the utilization of highway transportation it has been clearly developed that the life on the roads is a reflection of the life of the community, and so there are disappearing the terms which have been used, such as Transcontinental Highway, and Trans-State Highway, as opposed to farm-to market roads, and there is also rapidly disappearing the mistaken idea that has existed, that the farmer alone is interested in roads. It all depends upon the community and the character of the activities of the people, and the character of the improvement of the roads will be determined by the use which any com |