Let's make our community more invitable for industry to land. because we are not going to get it any other way.

Senator NEELY. Mr. McCloskey, will you not tell us whether you are for the pending bill?

Mr. MCCLOSKEY. I am not for any bill that calls us a distressed area, because we would be licked gentlemen, remember that.

We are not a distressed area, and we would not come under any bill that goes through Congress to help a distressed or oppressed or depressed area. What I would like to see a bill do

Senator NEELY. Do you know of any distressed area in Pennsylvania?

Mr. MCCLOSKEY. Oh, yes; there may be some of them, but under this bill they could not qualify nor could we of the city here qualify, as we are free of debt, and the bill says on page 9, line 23, quote:

No such assistance shall be extended hereunder unless the financial assistance applied for is not otherwise available from lenders or other Federal agencies on reasonable terms.

So you see, Mr. Senator, that disqualifies we of the city here. Then page 10, lines 8, 9, 10, state:

All evidence of indebtedness purchased on all loans shall provide, in the judgment of the Administrator, a reasonable assurance of repayment.

I feel certain that they would eliminate small mining towns such as we have here from qualifying for a loan, as some could not give reasonable assurance of repayment. Therefore, Mr. Senator, I ask you again to realize, it is a grant that such places as we here in Johnstown and other municipalities that have surplus labor are entitled to, and we could then build public projects for the next 4 or 5 years.

The bill should read that the work shall be done only during the time of surplus labor. Thus, it would give us a backlog at all times. If we build our community more invitable for industry, the Government would be helping us to help ourselves.

If I were John Ghizzoni, local head of the United Mine Workers, I know what I would do.

I would put miners' lamps on all of those coal miners who are out of work in Pennsylvania and West Virginia and get you to help me, Senator. I would put miners' lamps on them and get them all to march to Washington or caravan them as Father Cox and I did with the jobless army, January 1932, and let Congress see how many are idle, as you are one Senator and Mr. Saylor is one Congressman who comes here, and you hear all this testimony, but you know that no one in here is so naive to think that those other Congressmen or Senators are going to have time to read what that gentleman is typing out on that stenotype.

You know better. We all know better. The only way you can do is march into Washington

Senator NEELY. The Chair must observe that he does not share your opinions, or concur in your conclusions.

Mr. MCCLOSKEY. Didn't I hear the same thing in Altoona about a year ago? Wasn't the same thing heard in Washington the last several weeks now here-tomorrow in Wilkes-Barre.

Didn't Van Zandt?

Senator NEELY. He in his telegram says, in effect, that there has been a 12-percent decrease in unemployment since our hearing was held in his city last year.

The subcommittee will take no part in a controversy between your community and that which Congressman Van Zandt represents.

Mr. MCCLOSKEY. But what I want to know is why shouldn't we have a bill to give these communities here the same right as you give to foreign nations? You give it to them. Why shouldn't we get it? If we, the municipalities, pay part and the State pays part, they, the Government, should pay part. We don't want any loans, as we are out of debt. We were put millions of dollars in debt before by bond sellers. We want to stay out of debt and we ask help, just 20 percent from us, 20 percent from the State government, and 60 percent Federal grant, instead of us going down there borrowing ourselves into debt again, which will do us no good.

But anyhow, thanks, Mr. Chairman. Will you return my letter to me now?

Senator NEELY. With pleasure.

Mr. MCCLOSKEY. I would like to have that. This is a letter I sent to them-your committee, addressed to Senator Douglas. I was supposed to be told when this meeting would take place, and given time to present Johnstown's side of our needs. I never received any word until I busted in on this meeting without an invitation to give it to you, Senator, and here it is, as dated, January 16. But it seems to me were to be shoved aside again.

Senator NEELY. That letter was not sent to me and it did not come to my attention until you showed it to me today.

Mr. MCCLOSKEY. It was sent to Senator Douglas. But you did read and hear that it said they would give it to you for your attention: the date was January 5 when I wrote it. It was answered January 16.

I will read what it says:

And will be brought specifically to the attention of Senator Matthew M. Neely, of West Virginia, who will quite likely serve as chairman of the subcommittee for hearings held in your State. Signed, Stewart E. McClure, Staff Director.

Senator NEELY. In any event, you have "had your day in court." Mr. SAYLOR. Senator, that concludes the witnesses that have been scheduled to appear before you today. I want to take this opportunity to thank you on behalf of myself, the people that live in these communities, on behalf of the men who appeared here, took their time to testify, because I know that they appreciate it.

You are taking your valuable time to come up here, and I sincerely hope, Senator, that a year from now we might, as a result of this bill, be in a position to report to you and to the country that we have done as much for this area as was done for Altoona in the hearing which was held a year ago.

Senator NEELY. Thank you sincerely for your generosity. The hope that you have expressed has my wholehearted concurrence. Let us trust that in the days to come we shall be working together, as we have in the past, to solve the problem of unemployment which is Scourging much of your State and mine.

For the unlimited hospitality which you and your constituents have most graciously extended me today, I thank you and them again and again.

This hearing is now adjourned.

(Whereupon, at 11:50 a. m., the subcommittee adjourned, to reconvene at 10 a. m., Friday, February 10, 1956, in the Federal courtroom, Post Office Building, Wilkes-Barre, Pa.)

AREA REDEVELOPMENT

FRIDAY, FEBRUARY 10, 1956

UNITED STATES SENATE,

SUBCOMMITTEE ON LABOR OF THE

COMMITTEE ON LABOR AND PUBLIC WELFARE,

Wilkes-Barre, Pa.

The subcommittee met, pursuant to notice, at 10:08 a. m., in the Federal courtroom, Post Office Building, Senator Matthew W. Neely presiding.

Present: Senator Neely.

Also present: Frank V. Cantwell, professional staff member.
Senator NEELY. The meeting will be in order.

The Subcommittee on Labor of the Senate Committee on Labor and Public Welfare has convened this morning in Wilkes-Barre to hear testimony from representatives of local government, labor, and industry. Senate bill 2663, introduced by Senator Paul H. Douglas, of Illinois, for himself and a group of other Senators, of which it is my privilege to be a member.

This bill proposed Federal aid for the economic rehabilitation of the numerous communities of the country which are distressed by unemployment.

Acording to the United States Department of Labor, 14 communities of the Commonwealth of Pennsylvania have substantial surplus labor.

Here in the world-famous anthracite coal region such traditionally prosperous cities as Scranton, Wilkes-Barre, Hazleton, Pottsville, Carbondale, and other towns are confronted with serious unemployment problems.

Notwithstanding the vigorous and praiseworthy efforts of these communities to help themselves, unemployment continues to afflict them. It is the object of the bill, and the purpose of this subcommittee, to help you and all others concerned banish unemployment distress.

Your distinguished, faithful Congressman, Hon. Daniel J. Flood, whom we have long and favorably known, has kindly consented to present the witnesses who are to testify.

Congressman Flood, will you please proceed?

STATEMENT OF HON. DANIEL J. FLOOD, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA

Mr. FLOOD. Thank you, Senator.

I want to begin by saying-and, as you know, I am very delighted that you have honored our community by coming here to preside at

this subcommittee hearing. I had the pleasure of serving in the House with you for several years, and my people here know of your distinguished service in the House of Representatives for many years in the Senate before, and as the governor of your great State. So. that assures us that you have a great breadth of experience and a deep sympathy and understanding, coming from West Virginia a you do, about the problems that are peculiar to our unemployment and the distressed economy of our area.

So, we feel that we are in good and friendly and highly competent hands.

Now, Senator, I testified to this bill, as you remember, at the subcommittee hearing in Washington. And under those circumstances, I won't burden the record further in speaking to the bill. We have here a number of witnesses who have been asked to report by your committee. And they are all here this morning, and this afternoon. So, I will simply say if you have no objection, I will present the witnesses and we can then proceed.

Senator NEELY. Congressman, your impressive testimony before the committee in Washington is well remembered. As usual, your words were "like apples of gold in pictures of silver."

It is a great pleasure to me to come here to hold this hearing in the congressional district which you most ably represent. Your constituents are fortunate in having you for their representative.

Will you please proceed.

Mr. FLOOD. I hope you speak for the majority.

Let me say I introduced this bill known as the Douglas-Flood bill in the House after Senator Douglas introduced it in the Senate, cosponsored by you and several of your colleagues. And I did that because you and I know we are so close to the problem.

So, Senator, the first witness we have this morning is a native of this community; that is, of this area, Luzerne County, Thomas Kennedy. He is known to us affectionately as Tom.

He is the vice president of the United Mine Workers of America. And I need not remind you of the importance of that organization and of his leadership to the economy of our area.

So, without further word, Senator, may I present a distinguished American and your very good friend, Thomas Kennedy, of Hazelton. Senator NEELY. Congressman Flood, may we not add that our good friend, Mr. Kennedy, is a most distinguished former lieutenant gov ernor of the Commonwealth of Pennsylvania. He is not only a former lieutenant governor. He is an outstanding American statesman and one of the great labor leaders, not only of your Commonwealth but of the Nation and the world.

Governor Kennedy, we shall be delighted to hear you.
Mr. KENNEDY. Thank you, Senator.

STATEMENT OF THOMAS KENNEDY, VICE PRESIDENT, UNITED
MINE WORKERS OF AMERICA

Mr. KENNEDY. I have appeared before your committee so often that I feel as though I am a member of it. I have a prepared statement. Senator, which I have very carefully gone into. And if there are no objections, I shall be glad to read it.