That is why we think it is important to try to build back the construction industry. I think one of the most important things that the Government can do is to try to stimulate the construction industry in all its fields.

NEED OF ADDITIONAL APPROPRIATION FOR EMERGENCY ROAD PROGRAMS

Mr. SANDLIN. When will this total of $400,000,000 be allocated? You said about 90 or 91 percent by the 1st of April, did you not? Mr. MACDONALD. Yes, sir; under construction. It is all allocated, Mr. Chairman.

Mr. SANDLIN. When will the balance be under construction?

Mr. MACDONALD. This diagram runs out to nothing; that is, the money is entirely used by the end of December. Actually there will be a tapering off, but if there is no continuing of the appropriation our employment on roads will begin to fall rapidly by the 1st of September, possibly a little before that if we have an advanced spring. The work is set to go now at a rate that will give us a big bulk of employment through the 3 summer months. But we are going to be seriously up against the problem of an additional appropriation to carry the work through the months of September, October, November, and December and provide a program for next year. think we need one more emergency road program to tide us through next year, and then taper off on the regular Federal-aid plan; in other words, return to normal conditions.

I

Mr. SANDLIN. What appropriation do you think will be necessary? Mr. MACDONALD. $30,000,000 per month. That will be about 15 months. We might do with a little bit less than that. It will take about the same amount again.

Mr. SANDLIN. That will carry you

Mr. MACDONALD (interposing). Through this fall and next year. Mr. HART. It would be about $400,000,000.

Mr. MACDONALD. Yes, sir. Mr. Chairman, the work is well organized now. We had a period when the States had dismissed employees from their highway departments and were not in a position to go ahead with the work.

Mr. SANDLIN. But they are now able to go ahead?

Mr. MACDONALD. Yes, sir; they are in first-rate condition now, and they are going on all right. Of course, it took sometime for all the States to get started, but now we have a great deal of certainty about the rate of progress.

SUPERVISION OF P.W.A. FUNDS

Mr. SANDLIN. Has your Department supervision of these funds? Mr. MACDONALD. Yes, sir; they are just the same as the regular Federal-aid funds; except there have been set up under the law a number of new regulations, such as the 30-hour week and various other regulations have been imposed having for their purpose the division of the work among as many individuals as possible.

Mr. SANDLIN. What do you do with reference to county roads, or farm roads? Does your department have anything to do with the building of those roads, or with the supervision of them.

Mr. MACDONALD. Twenty-five percent of this fund of $400,000,000 is setup for secondary roads, and those roads are built under the direct supervision of the State highway departments. Except for adjusting the standards to a smaller amount of traffic, they are built under the same supervision as the main roads are.

We do not have anything to do with Civil Works projects. There is no general statement I can make as to that. That work in all the States is administrered through the Federal Relief Agencies in each State. The Federal Relief Agency in each State was made the directing organization for the C.W.A. work. In some States they are operating a part of their work through the highway departments. The Bureau of Public Roads does not have any part in that. The Bureau of Public Roads does have supervision over some relief work that was undertaken in special drought areas through a combination of relief funds and Public Works funds. In those States the Bureau and the State, in cooperation, have supervised the use of Federal funds for relief purposes. In those States all of the work has been done on a hand labor basis insofar as possible.

STATUS OF PUBLIC WORKS HIGHWAY PROGRAM

Mr. SANDLIN. Have you a statement of all the States in the Union where contracts have been let for road building?

I have a statement

Mr. MACDONALD. Yes, sir; of all the States. to file as a part of the record showing the extent to which contracts have been awarded up to January 27.

Mr. SANDLIN. We will be glad to have that for the record. (The statement referred to is as follows:)

TABLE 1.-Status of Public Works highway program as provided by section 204 of the National Industrial Recovery Act as of Jan. 27, 1934

TABLE 1.-Status of Public Works highway program as provided by section 204 of the National Industrial Recovery Act as of Jan. 27, 1934—Continued

Force account work included in advertised. P.W.A. funds, $20,999,000. Estimated total cost. $21,398,000. Number of projects, 868.

TABLE 2.-Status of Public Works highway program as provided by section 204 of the National Industrial Recovery Act Jan. 27, 1934

TABLE 2.—Status of Public Works highway program as provided by section 204 of the National Industrial Recovery Act Jan. 27, 1934-Continued

Mr. MACDONALD. The statement includes $295,000,000 worth of work approved. Our statement, as of to date, will show that work has been awarded, or placed under force account, covering $257,000,000 of which $237,000,000 comes from the $400,000,000 fund.

Mr. SANDLIN. That work is under contract?

Mr. MACDONALD. Yes, sir. It is actually under contract. The statement also shows the amount approved and now being advertised. That brings our commitments up to $271,000,000.

REGULAR APPROPRIATION FOR FEDERAL AID HIGHWAY SYSTEM

Mr. SANDLIN. We have been talking about the $400,000,000, and we will now talk about the $11,000,000, coming down a little.

Mr. MACDONALD. Mr. Chairman, with reference to the changes that are proposed here, they consist of omissions of language that are no longer necessary.

Mr. SANDLIN. You have a statement covering this work, and that statement can go into the record.

Mr. MACDONALD. Yes, sir. I suggest that we incorporate this statement in the hearings covering the work done during the last year.

(The statement referred to is as follows:)

FEDERAL-AID IMPROVEMENTS

During the fiscal year 1933, 13,255.3 miles of improvements on the Federalaid highway system were brought to completion. These improvements, together with work done in previous years, bring the total mileage of improvements completed with Federal-aid funds to 107,868.8 miles up to June 30, 1933. By January 1, 1934, the mileage of improvements completed had been increased to

118,532.4 miles and additional projects, including the Public Works program, under construction or approved for construction brought the total mileage of improvements completed and authorized with Federal aid on the Federal-aid highway system to 125,669.4.

Three classes of improvements are included in this mileage-initial, stage, and reconstruction. Initial construction is considered the first work done on any project with Federal aid and may be first stage or the ultimate construction considered necessary for present and expected traffic. Stage construction is supplementary improvement of a project previously improved to a lesser degree with Federal aid. Most of the stage construction projects involve a deferred surfacing of roads previously graded and drained. Reconstruction is the rebuilding of an improvement that has become inadequate through an unanticipated increase or change in traffic, or made necessary by the wearing out of an originally adequate surface.

The three classes of improvements completed in the fiscal year 1933, by miles and types of construction, are shown in the following table:

Mileage of Federal-aid roads completed and final payment made during the fiscal year 1933

UNOBLIGATED BALANCES OF FEDERAL AID FUNDS AVAILABLE FOR NEW WORK AS OF JUNE 30, 1933, AND DECEMBER 31, 1933

The last authorization of regular Federal aid was for the fiscal year 1933. The funds were apportioned on October 15, 1931, and, under the Federal Highway Act, are available for obligation until June 30, 1935.

On June 30, 1933, all but $15,190,331 of Federal-aid funds had been taken up on specific projects by the States. By December 31, this balance had been reduced to $3,955,534.

The table following shows the unobligated balance of regular Federal-aid funds available for new work in each State as of June 30, 1933, and December 31, 1933.