Military supply contracts in labor-surplus areas and industries, July 1, 1955 through Dec. 31, 1955 -Continued [Dollar value of net procurement actions of $25,000 or more "] 1 Data cover the period July 1, through Dec. 31, 1955, except that those areas and industries which have been designated as labor-surplus areas subsequent to July 1, 1955, include only contracts awarded after the date of designation, and those areas whose surplus designation have been withdrawn include only contracts awarded prior to the withdrawal date. Contracts awarded prior to July 1, 1955, are summarized in preceding issues of this report. 2 Data are on a net basis, representing the value of new awards and contract increases minus the value of contract terminations and decreases reported by the military departments, 3 Prior to Jan. 1, 1954, the date of Office of Defense Mobilization approval. Beginning with Jan. 1, 1954, this is the date the Department of Labor designated the area as an "Area of substantial labor surplus"; which was called group IV through April 1955, but beginning in May 1955, is included in groups D, E, and F. Net value of all procurement actions for the period of time each area was a designated labor-surplus area subsequent to July 1, 1955. $ Department of Navy includes contracts of $10,000 and over. Contracts awarded to the textile industry are excluded from the data on contracts awarded in the geographic labor surplus areas. Source: Office of the Assistant Secretary of Defense (Supply and Logistics), Mr. BATT. This is the extent of this program-the success of this program for the year 1955. It has resulted in $23,400,000 in procurement going into labor surplus areas as a result of preference alone. This is not the total; but as a result of preference alone. And if yo assume that each-if you assume that the $10,000 provides the raw materials for one man to work on for a year and the pay for him, divide that figure by $10,000, you will find that it has provided 2,343 jobs in the past year. Stacking that up against our 150,0 that we need, this is a useful tool, and I think we ought to keep it. Senator DOUGLAS. May I ask: Are these figures which you gave for the last year, or are they the entire period through the 15th of March 1956? Mr. BATT. No, sir. These figures that I have given you are for just the net procurement actions for the first 6 months of 1956 and the last 6 months of 1955. Senator DOUGLAS. Thank you very much. Mr. BATT. I would like to point out, Senator, that this accomplishment was much more impressive back when the Government procurement actions were much more numerous and when Government defense spending was higher. And I would like to point out also that this was achieved at no cost to the Government. Section 12 on Technical Assistance: This, of course, is most inportant. To help areas help themselves. It is an extension of the point 4 principle to our own people. Perhaps this section could be strengthened by adding the $1 million. in grants for technical assistance which is section 106 of the Smith bill, to strengthen section 12. Section 12 is not as strong as I would like to see it. Senator DOUGLAS. Nor as strong as I should like to see it. Mr. BATT. It says, in effect, that the Administrator shall make what is already available to these areas. Well, we already do that after a fashion, and there is not enough available. It is awfully thin. Section 14 on Tax Amortization: This is a most valuable provision: $217 million in new plants creating 11,311 new permanent jobs have resulted from the present Government program, Senator. And I got from ODM yesterday a cumulative list of all the plants that have gone into labor surplus areas. As a result of this program there have been 58 cases with a total investment of $217 million. And this is not an estimate now. This is the actual figure attested to by the companies involved-11,311 jobs. Senator DOUGLAS. Would you make those a part of the record. Mr. BATT. Yes, I would like to. And I know this resulted too IL large part from the application of the special tax amortization provi sions because I put a couple of them in there. (The document above referred to follows:) |