3. HIGHWAYS

Transportation has been and is today one of the great pressing needs of Appalachia. The system of highways that have been selected by the Appalachian Regional Commission especially as they pertain to Kentucky merit our approval and endorsement.

It is the hope of the people of Jackson County that such U.S. highways as 421 will be considered for upgrading and development. U.S. 421 serves as the main artery of traffic for the entire central section of southeastern Kentucky. At McKee, during the year 1963, the average daily traffic on U.S. 321 was 1,630 vehicles, while at Manchester, 28 miles south of McKee, the traffic rose to a peak of 4,450 a day.

The highway at the present time is narrow and contains many blind turns and dangerous curves. An exceedingly high percentage of accidents occurs on this highway at the present time.

A better road would serve as a major factor in acquiring industry as well as a greater volume of tourist trade. These two items would substantially aid the economy of the county.

4. WATER RESOURCES

To all who are familiar with Appalachia, water is one of the great blessings as well as liabilities of the area. While abundant rainfall is present, there is no way to control its runoff.

Flooding in the winter and spring coupled with drought and lack of water in the remainder of the year have constantly plagued the area.

The people of Jackson County are deeply interested and highly recommend the emphasis given by the Appalachian bill to an expanded water control program.

Parkers Creek-Rockcastle River Dam

Of particular concern to the county is the development of the Corps of Engineers project on the Rockcastle River above Livingston, Ky. This would create a lake that would substantially affect Jackson County and bring the backwaters of the lake to within a few miles of the county seat at McKee. Considerable planning and hearings have been conducted on the Rockcastle River Reservoir and an expenditure of $56,000 has already been allocated for this purpose. It is hoped that the passage of the Appalachian bill will materially increase the possibility of this reservoir being completed in the near future.

Conservation Lake-McCammon Fork

A conservation lake of between 100 and 200 acres has been surveyed by the Department of Fish and Wildlife as well as the Department of Natural Resources for Jackson County on McCammon Fork. Such a lake would be an ideal addition to the natural resources of the county. While the cost factor is high the overall benefits, especially viewed over a length of time, would make such a lake a vital asset to the county and the surrounding area.

5. PASTURE AND FOREST MANAGEMENT

Jackson County is a comparatively large county. It has 330 square miles or 216,000 acres. Two aspects of the Appalachian bill would be of particular value to the county and they are the pastureland improvement section and the forest management section.

Forest management

There are 156,000 acres of Jackson County forested. This represents 72 percent of the entire area of the county. At the present time, about 5 million board feet of lumber are cut annually. Yet a survey taken in 1962 indicated that 118,604 acres of woodland needed some type of reforestation and timber management. This work should be undertaken as soon as possible.

Pasturelands

There already exists many pasturelands that support both dairy and beef cattle operations. Milk plants and stockyards in neighboring counties depend heavily on Jackson County for their supplies. According to the survey quoted above, an additional 25,328 acres of land should be put into grassland production if it is to reach its highest potential.

The county heartily endorses these features of the Appalachian bill and actively strives to take its rightful place in the implementation of these programs.

RECREATION

One of the great assets of Appalachia in general and Jackson County in particular is the natural beauty of the area. It could become quite a tourist attraction because of the recreational value of its geography.

The Forest Service has already developed two areas into picnic and tourist attractions. These are the S Tree Recreation Area and the Turkey Foot Recreation Area. Other areas, such as Wind Cave and similar scenic sections of the county, could be developed.

Fishing could truly take its rightful place in the economy of the area, especially if the Rockcastle River Reservoir and the conservation dam go into operation.

Deer hunting as well as all manner of small game make Jackson County a real choice for the hunter.

The people of Jackson County feel that this Appalachian bill would give great impetus to the tourist industry which could become the biggest factor in the economy of Appalachia.

It is the hope of the people of Jackson County that this bill passes and that it ushers in a new spirit of cooperation between the Federal, State, and local agencies. It is also hoped that this bill will be expanded as time goes on to implement the work which it endeavors to bring about.

This is the beginning. A good beginning, true, but one which must grow if it is to make a significant contribution to the people of our land.

STATEMENT OF HON. E. L. BARTLETT, A U.S. SENATOR FROM THE STATE OF ALASKA

It is my hope, since I will be unable to testify before the committee, that this letter in support of S. 3, to provide assistance to the Appalachian region, may be made part of the hearing records.

The reasons for my support of the bill before the last Congress have not been diminished, and I was thus happy to cosponsor Senator Randolph's bill when it was offered on January 6 of this year.

We are dealing here with the principle that what aids one section of these United States aids the whole country. If the human and natural resources of one region are not utilized to the full, harm is done not only to one section of the Nation but to the whole. Congress has recognized this repeatedly. Every time appropriations are made for the construction, for example, of a power project or a dam or a reclamation facility, and especially with the successful Tennessee Valley Authority, the economic and social well-being of this country is enhanced. There are few today who would deny this.

S. 3 embraces the same principle. The area which this measure seeks to help contains something like 15 million people and covers an area of 165,000 square miles. The region has come upon hard times, and for three basic reasonsinsufficient highway and rail structure; underutilization of water resources; and inadequate use of potential coal, forest, and agricultural riches.

The bill before the committee carries a design for a substantial Federal-State effort to meet these three challenges, through authorization for construction of new highways, an extensive flood control and water facilities development program, development of marginal farmlands, plus timber development and marketing, and many other worthy features.

This program will succeed and the costs will be repaid many times over in increased tax revenues, in the use of salvaged manpower talent and skills, and in the overall increase of market demand which the revitalized economy of the region will engender.

What can be said about the Appalachian region can be said with equal force about the State of Alaska. We in Alaska have a special reason, therefore, to support S. 3, and also support the contention that what assists one section is good for the whole Nation. We are a single nation, a nation of the whole.

Certainly, the administration's Appalachian program, so far as a regional concept is concerned, is not new. After the earthquake struck Alaska last March 27, the President created a temporary Federal reconstruction and development planning commission for Alaska. After the major reconstruction program had been blocked out, the temporary commission was abolished. On last October 2 President Johnson by Executive order established Federal development planning committees for Alaska in recognition of the fact that the Federal Government and the State "continue to have a common interest in assuring the most effective use of Federal and State programs and funds in advancing the long-range progress of the State" and since "such effective use is dependent upon coordination of Federal and State programs which affect the general economic development of the State and the long-range conservation and use of its natural resources and upon cooperative Federal and State effort with respect to the planning of such programs."

Thus it is that President Johnson has recognized in Alaska-as in the Appalachian region-the importance of a Federal-State partnership for the benefit of all America.

STATEMENT OF HON. EUGENE J. MCCARTHY, A U.S. SENATOR FROM THE STATE OF MINNESOTA

I appreciate the opportunity to present a statement to the Committee on Public Works at your hearings on S. 3, the proposed Appalachian Development Act of 1965. I am a sponsor of the bill, and I believe it is a reasonable and responsible program for meeting the needs of the people in this economically depressed area of our Nation.

I also urge that the committee give consideration to approving the amendment offered by Senator Hart, which I and other Senators have joined in sponsoring, to provide for the establishment of an Upper Great Lakes Regional Development Authority.

It is may view that the regional approach is best adapted for meeting the problems of certain geographic and economic areas which require special attention. Appalachia is one such region. A comparable one is that of the some 80 counties in northern Minnesota, Wisconsin, and Michigan. This area once had a prosperous economy but for many years it has experienced severe economic distress resulting from the decline of industries related to its two major resources: timber and high grade ores.

The skills of many citizens of the area are now outmoded or no longer in demand. It no longer can offer sufficient employment opportunities for its youth, and its rate of unemployment during some periods has been higher than that in Appalachia.

In many respects the upper Great Lakes area is different in background and resources from Appalachia. Its need is not for a massive program such as that proposed under the Appalachian Development Act. It has traditions of work; it has established communities and schools. The need is for a specific regional authority to provide planning for development and coordination of local, State, and Federal efforts to stimulate business and industry.

The amendment offered by Senator Hart would make this possible. The appropriations for an Upper Great Lakes Regional Development Authority are very limited compared to that required for the Appalachia program. The estimate is that $10 million would be sufficient for the first fiscal year.

Many studies of the common economic problems and potentialities of the upper Great Lakes counties have already been made. Plans to introduce legislation providing for a regional authority have been under discussion for many months. I believe it is consistent with the Appalachia proposal, and I again urge consideration by the committee of approving the Upper Great Lakes Regional Authority as a provision of the Appalachian Development Act.

STATEMENT OF HON. WALTER F. MONDALE, A U.S. SENATOR FROM THE STATE OF

MINNESOTA

I was honored to cosponsor Senator Randolph's bill to provide public works and economic development programs for the Appalachia region. In my judgment, we can no longer ignore the pressing needs of the people of that region, but must proceed with dispatch to give them an opportunity to join the floodtide of economic and cultural richness sweeping our Nation.

The needs of Appalachia are not without parallel in my own State, the State of Minnesota, and in the States of Michigan and Wisconsin. For that reason, Senators Hart, Nelson, McCarthy, and I have sponsored an amendment to S. 3, to promote development of the economic potential of the upper Great Lakes region.

I strongly urge that the Committee on Public Works give favorable consideration to our amendment. Northeastern Minnesota, once one of the richest and most productive areas in the world, has in recent years suffered a severe economic decline. Many businesses are failing and others are existing on a marginal basis. Unemployment is high and the resulting losses in human and economic values has given rise to a situation that the State of Minnesota cannot longer tolerate without substantial adverse effects on its own economy and the entire economic structure of the Midwestern and Great Lakes States.

Northeastern Minnesota, and this is true of the other Great Lakes States included in the amendment, are caught in a vicious squeeze between a rapidly declining tax base and spiraling governmental costs. For example, State and local taxes expended for welfare purposes in northeastern Minnesota only 2 years ago totaled over $23 million, and this figure is substantially higher today. The iron ores of the Mesabi Range in Minnesota through two wars supplied a substantial proportion of the armorplate and steel needed for tanks, guns, trucks, airplanes, and essential military materials. Minnesota ore has also contributed to the industrial expansion of this Nation in peacetime. Now that the high grade ore in Minnesota is for the most part gone, the Nation must not turn its back on these people who are beset by severe economic hardship. Employment in iron mining has dropped over 25 percent in the last 4 years—the general rate of unemployment is nearly three times the national average. In some especially hard-pressed sections, more than a fourth of the workers are without work. And these figures do not begin to reflect the numbers of men who are working short weeks.

All of the Minnesota counties in the present version of amendment 1 (along with many adjoining counties) are classified by the Department of Labor as being areas of “substantial and persistent unemployment."

Consider St. Louis County, for example. According to the Department of Labor, the average annual rate of unemployment in this county, which includes the city of Duluth, has been at least 50 percent above the national average for 3 of the last 4 years. And on the iron range section of the county, the average annual rate of unemployment has been 75 percent above the national average for 2 of the past 3 years.

Part of the cost to this region, and to the State of Minnesota, is calculable in dollars and cents. I would estimate that northeastern Minnesota has cost employers more than $50 million in unemployment compensation benefits for the past 5 years, and this may be a very conservative estimate.

But the total cost in terms of human values cannot be determined by any scale or slide rule known to man. We cannot know what it means to a man to rely on governmental assistance to feed his children and clothe his family. The Great Society certainly cannot exist in such homes and in such communities.

It is clear that the people of the region are doing all they can to restore their area to economic health. It is up to all of us now to put forth equal efforts. Senator Hart, McCarthy, Nelson, and I have pledged our personal support for the economic betterment of those depressed areas. I know Ispeak for them when I ask this committee to give serious and full consideration to amendment 1 to the present Appalachia bill. The upper Great Lakes area has a substantial, common identity of interest with Appalachia, and it would be highly appropriate for this committee to take favorable action.

Before I joined this body as a Senator, I was attorney general of the State of Minnesota. Our great Governor, Karl F. Rolvaag, appointed me to lead a “task force for economic recovery" in northeastern Minnesota. No one knows better than I the problems of that a:- and I respectfully urge that the time to act is now, before a further serious decline in the potentialities of recovery there necessitates radical and expensive countermeasures. Swift action now can help the citizens of the upper Great Lakes region to work with State and local governments, backed by the assistance of the Federal Government, to bring back the economic prosperity they once enjoyed.

STATEMENT OF HON. JOSEPH D. TYDINGS, A U.S. SENATOR FROM THE STATE OF MARYLAND

Between my election on November 3 and taking the oath of office on January 4, I met with county and State leaders from areas in Maryland directly affected by the Appalachian program. I was again impressed by the need for legislation to help stimulate economic activity in the depressed areas of Allegany, Garrett, and Washington Counties.

The roads program, stressed by many as one of the most important provisions in the program, will open up western Maryland and its beautiful recreation areas, its hunting and fishing preserves, and its lovely scenery to many thousands of Marylanders and other visitors reluctant to travel over the antiquated highways leading west.

Improved highways that will allow trucks to travel in safety along these routes will encourage greater industrial activity in areas that have been inaccessible up to this time.

The conservation aspects in the Appalachian program will prove particularly beneficial in developing watershed projects, preserving the precious topsoil of Maryland, reforestation, antipollution measures, establishing wilderness areas and sanctuaries, creating wildlife habitats, increasing game and fish supply, and maintaining safe hunting zones.

Resort areas can be developed to provide facilities for physical activity so sorely needed by the residents of overpopulated urban areas. Western Maryland can offer the tourist or sernity-seeking Marylander an excursion into the earliest history of our Nation and provide a gateway to hunting, skiing, hiking, fishing, and boating.

With economic aid from the Federal Government, as a foundation, an industrial rejuvenation is foreseeable in jobs and job opportunities to residents of western Maryland and other areas affected by the Appalachian Regional Development Act of 1965.

It is important for planning to get underway immediately at the State and National levels to channel new sources of employment into depressed areas such as western Maryland where there is a stable and vital labor force.

It is necessary for the economy that a strong emphasis be made on education of the residents most directly concerned with this program. Training and retraining programs must be established to provide the unemployed with productive skills to take advantage of new opportunities. As our automated technology swiftly swallows up unskilled jobs it becomes important that our work force be equipped with the specialties and technical training demanded in private industry and public works projects.

Western Maryland, along with the rest of Appalachia, stands on the threshold of opportunity. It is the responsibility of the National Government, along with local authorities, to make sure that the opportunities are developed and that the people are prepared to take advantage of the opportunities.

STATEMENT OF ANDREW J. BIEMILLER, DIRECTOR, DEPARTMENT OF LEGISLATION, AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL ORGANIZATIONS Mr. Chairman, my name is Andrew J. Biemiller, I am director of the department of legislation of the American Federation of Labor and Congress of Industrial Organizations.

The AFL-CIO wishes to record its support of S. 3, the Appalachian Regional Development Act of 1965. Organized labor likewise endorsed the proposals of the Appalachian Regional Development Act of 1964, which passed the Senate but failed to receive House action in the final days of the 88th Congress. I am attaching to this statement for the record, the policy resolution on regional and resources development which was adopted by the AFL-CIO executive councial on November 24, 1964. This statement reiterates labor's support for the proposed Appalachia program and similar regional planning programs expanded to other areas of the country. I also wish to call to your attention that the AFL-CIO has formed a conference of our 11-State central labor bodies in the area to assist in revitalizing the economically depressed Appalachia area. I am also attaching to this statement, the AFL-CIO news release describing the makeup and proposals of this committee.