THE CHAMBER OF COMMERCE, Hon. PAUL DOUGLAS, Senate Building, Washington, D. C.: The Carlinville Chamber of Commerce, as well as public spirited individuals, are seeking assistance in obtaining industries and/or activities to relieve the unemployment situation in Carlinville and the immediate area of Macoupin County. The coal mine in Carlinville has closed, and individuals employed there were unable to find jobs in their craft because of the closing of a major portion of all coal mines in Macoupin County. There has been a decrease of approximately $2,500,000, and the trend is still downward in the assessed valuation of the Carlinville School District No. 1. Also, there is a marked increase in the Macoupin County relief rolls from a monthly average of 276 in 1952, 308 in 1955, 328 in 1956, and presently 341. Many of our young people are required to seek employment in the industrial area of East St. Louis to Alton, Ill., and that market is saturated at the present time. Carlinville, as well as other communities in Macoupin County, have formed organizations which are trying every method known to induce small industry to come into our areas. One of the first requisites is to have sufficient building or buildings available to house the industry, and usually because we do not have a proper building available the industry seeks location outside this area. The citizens of this area feel that with some financial assistance from the Federal Government we would be able to induce industry to locate in Macoupin County, thus helping the unemployment situation. GEORGE F. COOPER, Secretary-Treasurer. STATEMENT OF MAURICE E. SULLIVAN, CHAIRMAN, GILLESPIE BUSINESS & PROFESSIONAL MEN'S ASSOCIATION It is with a great deal of encouragement that I have learned of the recent introduction into Congress of Senate bill 964. While the prime purpose of this bill, which is designed to assist areas of excessive and persistent unemployment and underemployment to recover their economic stability through self-help measures, may not be of importance to a lot of areas in this country, to us here in central Illinois, where mining was our chief industry, with four mines, all of which are permanently closed, the situation becomes quite serious. Conditions have not improved materially in this community since my last appearance before the Committee on Labor and Public Welfare. At a recent meeting of the Gillespie Business & Professional Men's Association, of which I am chairman, the members were unanimous in their approval of passage of Senate bill 964. The passage of this bill will be appreciated, not only by the members of this association, but by all the people in this community who are in need of some worthwhile legislation. STATEMENT OF ROY HOEHN, PRESIDENT, GILLESPIE, ILL., ROTARY CLUB I am Roy Hoehn, president, of the Gillespie, Ill., Rotary Club. In my report I am trying to summarize the high points and stress some of the most important reasons why our area needs assistance. Coal mines have closed. The largest were the 4 Superior Coal Co. mines which employed as many as 3,550 men and had a payroll of 7 to 9 million dollars and was the major industry of our area. When these mines closed our economic picture became very bleak and dismal. Some of the resulting consequences have been: 1. An increase in unemployment in the Macoupin-Montgomery County area which reached 13.5 percent in August 1954, and was still at the high level of 9.2 in February 1957. 2. A decrease of approximately $3 million, and the trend is still downward, in the assessed valuation of the Gillespie-Benld-Mount Olive area. 3. An increase in the Macoupin County relief rolls from a monthly average of 289 in 1952 to 505 in 1955. 4. A sharp decrease in real-estate values, in Gillespie alone, there are 20 empty buildings and offices and many homes are unoccupied. 5. An exodus of our people, hundreds are being forced to leave the area to seek employment elsewhere. 6. More than 60 percent of our male workers making round trips of from 80 to 120 miles a day to the Alton and Springfield areas to work. These men will be forced to leave unless industry can be brought nearer home. 7. The discontinuing on March 5, 1956, of passenger service by the Illinois Terminal Railroad, which is the only railroad furnishing passenger service to Gillespie and Benld, has further hampered the area. Families are suffering because the breadwinner is not employed, businesses are closing, school funds are curtailed, and the overall economic picture is bad. In the face of this disheartening situation the various towns have formed organizations, to induce industry to come into our area. Thus far we have not been successful because we lack water and buildings. We need assistance badly. We feel that a depressed area bill which would give us financial assistance and inducements to industry to come into our area is necessary to help us to help ourselves. GILLESPIE, ILL., March 6, 1957. Mr. J. E. WENZEL, Gillespie, Ill. DEAR JACK: The statistics listed below are the best I could do on short notice concerning the relief load in Gillespie Township and Macoupin County. In April 1953 the general assistance caseload in Gillespie Township was 14 cases with 29 persons. At the present time, March 1957, it is 23 cases with 63 persons, an increase of 64 percent in cases and an increase of 117 percent in the number of persons. For Macoupin County the only figures available are for the number of persons receiving general assistance. The earliest figure available is for August 1952 when there were 240 persons receiving general assistance, and the latest figure is for January 1957 when 448 persons were receiving general assistance, an increase of nearly 81 percent. In all other assistance categories the recipients are not considered employable, so I don't feel that any figures concerning them would be of any help to you in this matter. Yours truly, JOHN R. GIBBONS, Supervisor, Gillespie Township. STATEMENT OF JOE LONG, MAYOR, CITY OF HILLSBORO, ILL. Chairman Douglas and members of the Committee on Banking and Currency, I welcome the opportunity to make a statement for your committee and know that many persons throughout the area surrounding Hillsboro and Litchfield are watching with great interest the progress of Senate bill 964 which is designed to alleviate conditions of substantial unemployment in economically depressed areas. I have lived in Hillsboro, Ill., almost all my life and have had intimate knowledge of economic, social, and political conditions of this area, having served as a city commissioner for 8 years, and as mayor of said city for 14 years. During much of my adult life I have been employed in and around the coal mines of this part of Illinois and my present work as an inspector for the department of mines and minerals has given me an excellent opportunity to observe the slackening in economic activity which is slowly but surely stifling the economy of this entire region. I am reliably informed that Hillsboro had a population of about 6,100 persons shortly after construction of the 2 smelters in or near Hillsboro early in World War I, and that our industrial suburbs of Schram City, Kortkamp, and Taylor Springs had populations at that time of 1,100 and 750, respectively, or a combined population of 7,950 in the Hillsboro area. During the 40 years ensuing, Hillsboro has declined by about one-third to about 4,100, while Schram City has declined to 780 and Taylor Springs to about 600, leaving an area total of about 5,840 persons for a net loss of about 2,470 persons, or a loss of about onethird of our former population-and this loss has occurred during 2 of the greatest periods of boom, expansion, and prosperity ever recorded in this Nation following the 2 great wars. Having been connected with municipal affairs, one of the first things I think of in a discussion of the economic depression of this area is the constantly shrinking tax base which makes it harder for governments at all levels to func tion. As times goes by, more and more demands are made on government to that provide more and better services for the taxpayers, yet with economic activity on the downturn and with many people leaving the area to seek employment elsewhere, we find that the tax base is shrinking and before many years we will be in such a shape that we will no longer be able to help ourselves. In this connection, for example, the Hillsboro water system is now operating at its very maximum capacity, yet we are being constantly asked to provide additional water service for demands such as commercial and residential air condi tioning, and we are also being asked to commit ourselves to furnish large supplies of water in the event that new industries will locate in Hillsboro, or in the event of expansion of existing industries, and we find that we are unable to provide the additional expansion in service. We are told that one of our major industries in Hillsboro could be greatly expanded today if we were able to furnish the additional capacity of water necessary to their expanded operation. Another thing which is noticeable to me as a city official is the large amount of unemployment and the great number of workers who are forced to drive from 25 to 100 miles, round trip, every day in order to obtain employment in coal mines or factories away from Hillsboro and Montgomery County. In addition to those who have been forced to commute or to leave permanently to find employment, we have a large number of currently unemployed, many of whom are constantly besieging council members for employment by the city on its various construction and maintenance projects. I am informed by the president of the International Hodcarriers' Union, Laborers' Local 1084, that in 1953 the local had a membership of 112, most of whom were gainfully employed during most of the year, and that because of the general economic downturn there are only 37 members in the local today, and the unemployment situation is very serious. I am told further that only 8 of the 67 men are employed and that 4 of them are employed permanently by one of the utilities, while the other 4 are only temporarily employed doing construction work. I am very glad to say that it now appears that businessmen, city officials, laborers, and farmers throughout the Hillsboro-Litchfield area think alike and realize that ours is a community problem which was brought on largely by circumstances peculiar to this area. More than a dozen mines have been mined out or closed for reasons of obsolescence during my lifetime and that only the Crown Mine at Farmersville is operating. Many of the younger miners have been forced to commute to other mines located many miles away, or to employment in the East St. Louis-Granite City-Alton area at the large steel companies, refineries, and manufacturing concerns. A great many from Hillsboro and Litchfield work regularly at the mines in Pana or Taylorville or in manufacturing concerns in Springfield, a driving distance of 30 to 50 miles away. Because our problem is similar throughout this area, the solution must lie in the joint efforts of all of us to improve our lot, and I want to go on record in offering my help both officially and personally to the common cause of the dozen or more towns in the HillsboroLitchfield trade area. We have many of the natural resources required to attract both large and small industries, with large bodies of coal lands, many of the finest railroads and highways in the country, and an abundance of standby electrical power We particularly need to join hands in alleviating the water shortage which prevents any industry from investing large sums for plants in our towns. We know that a survey was made many years ago by the Illinois Planning Commission and University of Illinois which determined the feasibility of creating a large reservoir between Hillsboro and Litchfield by damming up Shoal Creek at Panama, and which could furnish water to all of the smaller towns surrounding. Such a reservoir could be relatively inexpensive in cost if the towns were able to jointly borrow the necessary funds from the Federal Government on a long-term basis. We feel sure that the money could be repaid from water revenues. Such a reservoir would be twice the size of Lake Springfield and about five times the size of Lake Decatur and would provide a tremendous area of resort sites as well as for industrial and municipal water supply. Members of the chamber of commerce inform me that such a lake will be necessary in order to attract a sizable industry to either Hillsboro or Litchfield. Of course, farmers would be greatly benefited by such a project through improvement in the rain cycle in the area and as a supply during periods of drought. The water table would undoubtedly be raised for miles around. From talking with Mr. Ernest Tuthill, the principal of the Hillsboro High School, I have learned certain things in regard to the employment afforded the pupils that are educated in the Hillsboro High School. I quote Mr. Tuthill in this regard: "During the last 10 years about 97 percent of the pupils who left our high school and finished 4 years of college, left the Hillsboro community to seek employment. "About 80 percent of the students who dropped out of college with less than 4 years of college, have also left the Hillsboro area. "About 60 percent of the pupils who actually finished high school and had no college training left the Hillsboro area for employment. "The class of 1956 graduated May 29, 1956. There were 105 pupils in that graduating class. There were 130 that entered high school in this class as freshmen; 25 dropped out of school. Of these, 9 moved from the community because of change in family employment; 7 quit to go to work; 6 girls were married. There is no information concernnig the others that left school. Of this number 6 are unemployed, 12 work at home, 14 are employed in Hillsboro, 5 are married, 30 are in college, 24 work away from home, 10 are in the Armed Forces and there is no information in regard to the others. "The class of 1957 will graduate on May 29, 1957. There are 113 mmebers in this class. There were 151 that entered high school in this class as freshmen ; 38 dropped out of school. Of these, 22 moved from the community because of change in family employment, 8 girls are married, 3 are in the Armed Forces and there is no information on the other 5. "The class of 1958, the present junior class has 116 members in the class. There were 150 that entered high school in this class as freshmen; 34 dropped out of school. Of these, 10 moved from the community because of change in family employment, 5 girls are married, 6 are in the Armed Forces, 3 quit to go to work, 7 quit and are unemployed and there is no information on the other 3. "The class of 1959, the present sophomore class, has 146 members in the class. There were 160 that entered high school in this class as freshmen; 11 have dropped out of school and 3 were retained. Of these, 4 moved from the community because of change in family employment, 3 quit to go to work, 2 are in the Armed Forces, and there is no information on the other 3. "The class of 1960, the present freshmen class, has 173 members in the class. There were 182 members that started in this class in September 1956; 9 have dropped out of school. Of these, 2 quit for health reasons, 2 dropped on reaching 16 years of age, 4 moved because of change in family employment, and 1 quit for no reason." In closing may I say that we will continue to hope for the passage of S. 964, because we see the real and practical need for such a program on which communities as ours may rely for help in relieving unusual economic distress. Mr. WENZEL. Mr. Imle and I have been invited to testify before this committee this morning as representatives of two adjacent counties in central Illinois-Macoupin and Montgomery Counties. These two counties make up an area hit hard by the abandonment of many coal mines, and at least one other major industry, as well as several minor industries. Within the past 5 or more years, at least 8 coal mines have closed in the 2-county area. Approximately 5,950 miners have been thrown out of employment in the 2 counties. Senator DOUGLAS. That is in the last 5 years alone? Mr. WENZEL. Yes, sir. Senator DOUGLAS. And prior to that time there had also been a slow closing down of the mines? Mr. WENZEL. That is correct. And although the statement does not give those facts, I remember them well. Approximately 3,500 men had been thrown out of employment in the 5 years prior to that time. 91201-57-pt. 1-21 So you have a total of almost 9,000 coal miners in the past 10 years have been thrown on the market. who Senator DOUGLAS. If I remember rightly, it was in the coal mines of Montgomery County that John L. Lewis got his start. Mr. WENZEL. That is correct; yes. Mr. IMLE. That is correct. Mr. WENZEL. In the closing of the one major factory of the area, the American Radiator Co., at Litchfield, Ill., approximately 550 persons were thrown out of employment. In addition to the American Radiator Co. closing, the General Canvas Co. abandoned operations, throwing 200 workers into unemployment, and the Litchfield Precision Co., with a high of 200 workers at one time, now employs 10 or 12 persons. Some of these factories had defense contracts during the Second World War, as well as during the Korean conflict. However, after the conclusion of the Second World War and the truce of the Korean conflict, these firms were unable to negotiate any defense contracts, and as a result of that failure were forced to give up all efforts at continued operation. As a result of so many persons being forced out of employment in the mines, as well as in the factories, the percentage of unemployment in the Macoupin-Montgomery area has increased enormously and at times has been as high as 132 percent for all employables in the area. The exact percentage of unemployment at this time is 9.2 percent, a percentage compiled as of February 15, 1957. Since last August, unemployment has been on the rise again, and the percentage of unemployed has been steadily increasing. Senator DOUGLAS. Mr. Wenzel, is it not true that a very large proportion of those who are employed have to drive long distances to their work in the Alton region and also in the Springfield region? Mr. WENZEL. Yes, sir. As a matter of fact, somewhere in the statement I believe Mr. Imle will show that our people have no industry at home. I think that the average distance per day is in excess of 80 miles of driving. Senator DOUGLAS. That is, 40 miles each way? Mr. WENZEL. Forty miles each way to the surrounding areas. As a result of this continuous high percentage of unemployment, neither of the counties has been able to keep pace with the normal population growth so evident in the State of Illinois as well as in the Nation. For instance, the State of Illinois in 1950 had a total population of 8,753,000. In 1955, to cover a 5-year period, the total population of Illinois had grown to 9,361,000. There was a gain in population for the State of Illinois of approximately 608,000 persons, or a percentage growth of approximately 6 percent over the State. Over that same period of time, our two counties actually showed a loss of population. In 1950, the total population of the 2 counties was 76,500 persons. In 1955, 5 years later, the total population of the 2 counties had dropped to 75,500 persons, an actual loss of 1,000 persons during the 5-year period. If the two counties had enjoyed the normal growth of the other counties in the State of Illinois, the 2 counties would now have a population of 81,090 persons, rather than the 75,500 we have. These figures are correct based upon a printed population report for the 5-year period prepared by the Illinois State Employment Service. |