SATURDAY, JUNE 30, 1956

Eisenhower Signs Road Bill

Weeks Allocates 1.1 Billion

By JOHN D. MORRIS
Special to The New York Times.

    WASHINGTON, June 29—President Eisenhower set into motion a record $33,480,000,000 road-building program today by signing the bipartisan authorization bill that Congress sent him Tuesday. Sinclair Weeks, Secretary of Commerce, immediately announced the allocation of $1,125,000,000 among the states for the first year of what he called “the greatest public-works program in the history of the world.”

    Mr. Weeks predicted that the undertaking would give the nation's economy a big boost, would save thousands of lives by safer roads and would ease traffic congestion.

    The Associated General Contractors of America looked for the program to get off to a quick start. It estimated that more than $l00,000,000 in contracts would be awarded by state highway departments within two months. By December, according to a survey by the organization, the figure will have risen to $400,000,000.

    In announcing that the bill had been signed, James C. Hagerty, White House press secretary, said President Eisenhower was highly “pleased.”

    The measure carries out the President's major road-building recommendations, but calls for increases in highway user taxes instead of special highway bonds to pay the Federal, share of the cost. All provisions are effective Sunday.

    The main feature of the program is a 41,000 mile network of limited-access roads linking 90 per cent of all cities with populations of more than 50,000. The Federal Government will distribute $25,000,000,000 among the states over the next thirteen years to meet 90 per cent of the cost.

    The bill also calls for a three-year increase in the regular Federal aid highway program and in construction of park, forest and other roads financed entirely by the Federal Government. Altogether, Federal appropriations of $28,057,000,000 are authorized. This is a threefold increase over the present annual rate. Matching outlays of $5,425,000,000 are required from the states.

    The tax provisions, effective for sixteen years starting Sunday, include a cent-a-gallon increase in the present 2-cent levy on gasoline and other motor fuels. Tires are to be taxed at 8 cents a pound instead of 5 cents. Excises on trucks, buses and trailers go up from 8 per cent of the manufacturer's price to 10 per cent. Heavy trucks and buses will pay a special new annual tax of $1.50 per 1,000 pounds.

    Mr. Weeks said he had directed the Bureau of Public Roads to proceed with all possible speed in the start of this program. The first projects, he reported are expected to be under construction within sixty to ninety days.

Peak Seen in 1960

    The Associated General Contractors, comprising most of the country's road, builders, said the program would reach peak levels by 1960 with total highway, road and street construction ranging between $8,000,000,000 and $9, 000,000,000 a year.

    This will require employment of a monthly average of 435,000 to 450,000 workers at the construction sites, compared with the present 300,000, the organization estimated. An equal number will be employed in mines, forests, factories, transportation systems and administrative offices to produce the necessary materials, supplies and equipment, it said.

    For the fiscal year starting Sunday, Mr. Weeks allocated $1,000,000,000 for the interstate system and $125,000,000 for the regular primary, secondary (feeder) and urban highway program.

    New York gets $78,871,222, with $70,893,783 going for work on interstate highways. New Jersey gets $24,278,783 and Connecticut gets $10,794,417.

From: The New York Times, Saturday, 30 June 1956, pages 1 & 18.