118 200,000, that 10 percent of 75 percent would be earmarked for Illinois. Since provision is made for $100 million in loan funds and if $75 million were placed under allotment, 10 percent of the $75 million would mean that $7,500,000 would The remaining 25 percent could be dispersed within be assured to the State. the discretion of the Administrator. This would supply sufficient lattitude for the administrator and at the same time assure every depressed area that funds up to a given amount would be available for the purposes of the bill. 10. The same formula could be used with respest to that provision in the bill which provides for assistance to public facilities. There is a provision under which $100 million would be made available for loans and grants to deThis would, of pressed communities for the construction of such facilities. course, include schools, airports, hospitals, and similar facilities, and to them the same apportionment formula could be applied. 11. One of the great institutions in Illinois is the University of Southern Illinois, which has made great progress under the capable leadership of Presi dent Delyte Morris, and I envision the day when it will be one of the truly great institutions of learning in the United States. It is growing year by year. I have found particular delight in working with different people from the faculty, including the president of the university. All of them have a keen sense of appreciation of their particular responsibility to the area where the university is located. At this institution there is a wealth of brains and talent for utilization in connection with this problem if Congress will but make it possible. I know of nothing that would pay greater dividends than to authorize the Administrator of the Depressed Areas Act to make grants of funds available to the university so that this talent can be utilized in finding an adequate solution Already in the case of the University for the problem in that particular area. of Southern Illinois they have done notable work in the forestry and timber utilization field. I am confident they can do equally good work in still other fields, and especially where the natural resources of the particular area are involved. This hope deserves every encouragement and consequently some of these funds should be made available for that purpose. 12. It may also be necessary to make some provision for housing in the comOne of the first things munities where new plants might be constructed. which a plant locator explores in addition to water, fuel, transportation, and other resources is the availability of housing. Already workers in the lower reaches of the State are driving a great many miles to their places of employment, but when an industry is brought to a town it must be possible to provide housing for the workers and a provision would be supplementary to provisions already carried in general housing legislation which is now on the statute books. I have some other suggestions in mind and have already reduced all of these to amendment form so that they might be ready for consideration when the committee has completed its hearings and is prepared to take action on the pending bill. I am deeply interested in the pending proposals and want to be sure that if legislation is reported to the Senate floor that we will have a bill which represents a determined and wholehearted approach to this problem of depressed areas. Senator DOUGLAS. We are also honored to have here our colleague, the senior Senator rom Montana, Senator James Murray. Senator, I hope you will proceed in your own way. STATEMENT OF HON. JAMES E. MURRAY, A UNITED STATES Senator MURRAY. Thank you, Mr. Chairman. I am wholeheartedly in support of S. 964, which I cosponsored with the distinguished chairman of this subcommittee and other Members of the Senate. There is growing support for area-redevelopment legislation in Montana. Of particular interest to many Montanans are the provisions of the bill to permit a grant and loan program for Indian tribes and to encourage industries to locate on or near Indian reservations. But C a great deal more needs to be done, and passage of this bill would be a step in the right direction in the stepping up of this program. Indians have proved to be able and conscientious industrial workers at plants like the Bulova watch jewel-bearing plant at Rolla, N. Dak. Many Indians in Montana want to work near their homes rather than in distant cities. Enactment of this bill would probably permit many of them to obtain employment at or near their homes. The Montana State Planning Board recently expressed an interest in this bill, and its members are now studying it. Representatives of Indian groups in Montana have told me that they wished to testify in support of this bill, and I understand that the subcommittee plans to devote a full day of hearings to Indian witnesses next month. Senator DOUGLAS. That is correct. Senator MURRAY. I appreciate very much the subcommittee's recognition of the value this bill can be to this country's first citizens. I was advised this week that the Business and Professional Women's Club of Great Falls, Mont., is now raising funds with which to send an Indian witness to Washington to testify in support of this bill at one of your subsequent hearings. This witness, who will appear before your subcommittee, is a resident of the infamous Hill 57 near Great Falls. Hill 57 is a povertystricken suburb of Great Falls, where many landless Indians, whom the Federal Government refuses to recognize as wards of the Government, live in crowded shacks. In other communities in Montana there are similar areas where Indians live in slum areas. They leave these slums to find such seasonal work as they can but, because the employment opportunities are limited, they return to Hill 57 and the other slums. Many of these people would be willing workers if jobs were available, and many Montanans are hopefully and prayerfully looking to the Congress, and particularly to this subcommittee, to approve the proposed area-redevelopment bill. Only yesterday I received a letter about the need for Federal help for these Indians from Milton Colvin, assistant professor of anthropology at the Montana State University. He tells how these Indians have been shortchanged by the Federal Government. I would like to have that letter appear at this point in my testimony. Senator DOUGLAS. That will be done, Senator Murray. (The letter referred to follows:) Senator JAMES MURRAY, Senate Office Building, Washington, D. C. MONTANA STATE UNIVERSITY, DEAR SENATOR MURRAY: Now at the time when appropriations for the Indian Bureau are under consideration, I should like to urge you to see to it that the Federal Government assumes its responsibility vis-a-vis the Indians of Montana. In particular, it is the so-called landless Indians who have been and are being shortchanged right down the line. You have done so much to help Indians in the past, I may hope that you will continue to aid them by insisting that Indian rights are not to be brushed aside as not really counting. Sincerely yours, MILTON COLVIN, Assistant Professor of Anthropology. Senator MURRAY. The other members of the Montana congressional delegation also urge favorable action on S. 964. Representative Lee Metcalf and Representative LeRoy Anderson have introduced companion legislation. Congressman Anderson plans to appear before your subcommittee this morning, I believe, in support of this legisla tion. Senator Mike Mansfield, who is also a cosponsor of S. 964, is unable to testify before your subcommittee this morning, but he asked me to present his statement for the record in support of S. 964. Senator DOUGLAS. Thank you very much, Senator, and we will make Senator Mansfield's statement a part of the record, following your statement. Senator MURRAY. Senator Mansfield develops the point that this bill will be of great help to several communities now facing the specter of mass unemployment. I thoroughly agree with my distinguished colleague from Montana. I commend the study of his fine statement on this problem to the members of this subcommittee. Thank you. Senator DOUGLAS. Thank you very much. We are greatly honored, Senator, by having you come here, and we appreciate your help, and are very glad to have your support. Senator MURRAY. I hope the bill will go through, because it is really a worthwhile piece of legislation. (The statement of Senator Mansfield follows:) Hon. PAUL H. DOUGLAS, UNITED STATES SENATE, March 6, 1957. Chairman, Subcommittee on Production and Stabilization, Committee on Banking and Currency, United States Senate, Washington, D. C. DEAR MR. CHAIRMAN: During recent years a general prosperity has prevailed throughout the United States; however, there are a large number of industrial communities, rural areas, and Indian reservations which are not sharing in the Nation's prosperity. The continued existence of these conditions tends to stifle the economic life of these areas and eventually will undermine the basis of our entire society. The responsibility of the Federal Government to aid these areas is commonly acknowledged and is no longer a matter of partisan controversy. The provisions of S. 964, the area redevelopment bill, one of two bills being considered by the subcommittee, will help to meet the needs of low-income rural areas and the distressed industrial areas. As you so ably stated when you introduced this legislation, "This bill proposes no easy handout. It holds out the prospect of work, of new jobs, of increased production, of expanding business and commerce, of more healthy community life, and above all, of a fuller utilization and development of the Nation's most precious resources, its human resources." The provisions of this bill, which I cosponsored, are well-known to the members of the subcommittee, therefore I will limit my observations primarily to the need for this legislation in the State of Montana. The Indians in Montana and neighboring States would derive a great deal from the provisions of S. 964. As you will recall, S. 2663, which passed the Senate last Congress was amended to include provisions for Indian tribes and I am pleased to note that this provision has been retained in the legislation now being considered. There are seven Indian reservations in my State and several of them are faced with acute poverty and in general there is a lack of opportunity for advancement. This problem also exists in a number of Indian settlements on the outskirts of some of our cities in the State. Hill 57 in Great Falls is probably one of the most pathetic examples. There are a number of reservations in the Nation that have made great advancements but there are far too many instances of poverty and suffering among Indians, both off and on the reservation. The provisions of the area redevelop ment bill would be of great assistance in rehabilitating and improving the living standards of these Indians. There are several reservations in Montana which are operating on a sound basis, they have their own operative government and their funds are supplemented with moneys from oil and mineral leases, sale of lands, and other enterprises. In general they take care of themselves rather well. However, on too many of our Indian reservations, conditions are deplorable. Reservation lands are not productive enough to meet the increased demands of the populace. There are very limited employment opportunities. The majority of the Indians lack the proper education to enable them to leave the reservation and to seek out an existence elsewhere. The local sources of income other than Federal aid are limited and there is no industry. Until recently Indian reservations have seldom been thought of as sources of manpower for new industries. The new Indian industries program being carried on by the Bureau of Indian Affairs has made some progress but it needs help to make any great strides. Poor education standards, the increased delinquency among Indian children, and malnutrition are directly attributed to the economic factors of the reservations. The location of Federal and State works in addition to private industry near these reservations would be of inestimable value to the Indians' welfare. The location of an additional source of employment near a reservation would act as a stabilizing factor. Legislation being considered today will provide the things the Indian reservations and communities need-the incentive needed to bring industry into depressed areas such as the Northern Cheyenne Indian Reservation in Montana. The bill would set up a reasonable loan program to assist construction of facilities. New industries would provide the areas with employment of a permanent nature. In addition the Administrator of this program will be able to initiate programs of public facilities construction without local contributions. The vocational training and rehabilitation provisions of this bill are something the Indians also need badly. My interest in this legislation is not limited to its benefits for Indian reservations and settlements. The program of assistance to depressed areas as set down in this bill would do much to relieve the poverty and suffering in many areas of the Nation. Montana is no exception, we have several communities and cities which are faced with an unstable economic future. The city of Red Lodge, Mont., is finding itself in such a position. It is a beautiful little city of approximately 3,000 people, having an assessed valuation of $4 million and is situated at one of the scenic highway entrances to Yellowstone National Park. At present its greatest source of income is the seasonal tourist trade. Originally the economy of the city and surrounding area depended on the mining of coal and chrome; however, the coal mines were closed because they could not compete with diesel fuel and gas. The chrome mines shut down at the end of the World War II emergency program, and have not been reopened despite the persistent efforts of the local people. The town of Roundup in central Montana is in a similar economic depression. The community has a history as a thriving coal-mining center. But like so many coal-mining communities today, the mines are being closed because of the dwindling market for coal. Small communities like Red Lodge and Roundup have been unable to fill the vacuum left by coal mining. The provisions of this bill will help to replace what was once a thriving industry. Exploration and drilling for oil in eastern Montana in recent years has provided an economic boost for a number of cities and towns, but the activity has leveled off and they are beginning to look for new sources of income, particu larly in agricultural communities where the farmer and the rancher's income has declined in recent years. The enactment of this legislation, as provided in S. 964, will bring stability to the Indian reservations and other depressed areas of the Nation. They will have the means to improve their living standards, education, productivity, and welfare. Until this is done we can never truly boast of America being the land of prosperity. I understand that my distinguished colleagues, the senior Senator from Montana, James E. Murray, and the Representative from Montana's First District, LeRoy Anderson, will present testimony in behalf of this bill. I want to take this opportunity to associate myself with their very able oral testimony. Due to other congressional business I am unable to appear personally before your subcommittee in behalf of S. 964, but I do appreciate the opportunity to express my views and ask that my letter be made a part of the printed record on the hearing on S. 104 and S. 964. With best personal wishes, I am MIKE MANSFIELD, Senator DOUGLAS. Now we have other congressional witnesses. I have here a statement signed by Senator John O. Pastore, junior Senator from Rhode Island, in support of this measure. That will be printed together with a letter from the Northern Rhode Island Joint Board of Textile Workers Union of America, AFL-CIO, which will be printed following Senator Pastore's letter. Also, I may say that the same letter was sent to United States Senator Theodore Francis Green, senior Senator from Rhode Island, so that it will be understood that this letter is being inserted at the request of both Senators. (The statement and letter referred to follow :) Hon. PAUL H. DOUGLAS, UNITED STATES SENATE, Chairman, Subcommittee on Production and Stabilization, Senate Committee on Banking and Currency, United States Senate, Washington, D. C. March 6, 1957. DEAR SENATOR DOUGLAS: With your kind permission, I am submitting to you as chairman of the Subcommittee on Production and Stabilization of the Committee on Banking and Currency of the United States Senate, the following statement in support of S. 964, the proposed Area Redevelopment Act, which statement I respectfully request be inserted in the record of the hearings and made a part thereof. As you well know, I am a cosponsor of S. 964, the area redevelopment bill which was introduced by you. The proposal is straightforward in its attack on one of our greatest domestic problems. I feel it has the power to attain its stated purpose to alleviate substantial persistent unemployment and underemployment in certain areas without reducing employment in other areas. Unfortu The measure is the successor to your proposal of last year. The need for the measure was thoroughly documented. It was highly endorsed and soundly supported in the Senate as indicated by our approval on July 26, 1956. nately, the element of time prevented the House from reaching a vote on it. The present bill is improved by ideas contributed from last year's discussions. But the situation has not improved. The need for the measure has not waned. The need is even greater. The statistics will establish that. We have seen the charts classifying the Providence, R. I., area as a laborsurplus area 28 times out of 28 reports. The principal or other source of economic distress is indicated as the shrinkage of our textile industry. But stronger than statistics can be the fears in the personal mail we get from home of jobs that have disappeared or about to disappear. These are the human statistics of men and women and their families, the basic strength of our communities, worrying and wondering how they are to maintain that strength. They are aware of this very measure which is before us and they grasp at the hope that this may be of help to them. At this point, I call your attention to a letter I have received from John W. Laporte of the Textile Workers Union of America, AFL-CIO at Woonsocket, R. I. This is illustrative of the serious situation. That letter is attached herewith, and tells a very human story. Now, we in Rhode Island do not run away from our problems. Our State and our civic, our community and our bank-supported commissions and committees for business development are doing a real job. The pages of testimony the committee heard last year make a record of the courage and competence and the dollars that go into doing something about this matter in Rhode Island. But they can't control all the causes of depression and disappearance of busiThe causes are usually beyond the State line. Rhode Island suffers when ness. |