APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965

THURSDAY, JANUARY 21, 1965

U.S. SENATE,

COMMITTEE ON PUBLIC WORKS,

Washington, D.C.

The committee met at 9 a.m., pursuant to recess, in room 4200, Senate Office Building, Senator Jennings Randolph presiding.

Present: Senators Randolph, Muskie, Montoya, Cooper, Fong, and Boggs.

Also present: Ron M. Linton, chief clerk and staff director, Richard E. Gerrish, assistant chief clerk, and Richard B. Royce, professional staff member.

Senator RANDOLPH. The hearing of the Senate Public Works Committee will open today with our colleague, Philip Hart, of Michigan, giving to us his counsel on an important section of our country which has many problems similar in part to the problems of the Appalachian region.

STATEMENT OF HON. PHILIP A. HART, A U.S. SENATOR FROM THE STATE OF MICHIGAN

Senator HART. Thank you very much, Mr. Chairman, and members of the committee, for letting me come in this morning. I know how hard your schedule is, and am therefore doubly appreciative.

Mr. Chairman, first, those of us far beyond the Appalachian Range are indebted to you, Senator Randolph, and to your colleagues on the committee, for the energy and vision you have given to evolving a pattern of national legislation to meet serious problems of regional economic deprivation.

The path that has been broken by the Members of Congress and State and local officials, who so ably give leadership to the Appalachian program, guides all of us who represent States where particular areas are bypassed by the growing, vigorous national economy.

President Johnson, in his forthright state of the Union message, gave full endorsement to these challenges when he said:

I propose we carry out a new program to develop regions of our country now suffering from distress and depression * * *

We can help insure continued prosperity through:

A regional recovery program to assist development of stricken areas left behind by our national progress ***

So it is, Mr. Chairman, that Senator Nelson, of Wisconsin, Senators McCarthy and Mondale, of Minnesota, and I bring to you this morning our proposed addition to the pending Appalachia bill, S. 3, which is to initiate in an 80-county, 3-State area in the northern Great Lakes

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States of Michigan, Minnesota, and Wisconsin, the beginning of a regional program to meet the economic distress and serious neglect of this part of our Nation.

The upper Great Lakes States region has a continuing unemployment rate that is some 20 percent higher than that of Appalachia. A few of the indicative regional statistics:

Unemployment for the region averages 8.9 percent;

Between 1950 and 1960 U.S. population grew 18.5 percent; the population of the three States by 18.8 percent, but the region's population by only 1.2 percent;

Between 1950 and 1960 the region's labor force dropped by 1.1 percent while that of the Nation increased by 15.4 percent;

Wholesale sales for the same period increased nationally by 54.2 percent, the 80 counties by only 22.1 percent;

The value of farm commodities increased nationally by 68.4 percent in the same period, but in the 80 counties only by 13 percent.

As one looks at the problems and opportunities confronting Appalachia, there is a striking similarity with those of the upper Great Lakes

area:

We find that both have been bypassed by major transportation arteries and have been essentially isolated from the commerce and economic growth of other regions in these States.

Both Appalachia and the upper Great Lakes have suffered substantial outmigration of population-especially by the young people-to the point that in our 80-county area there has only been 1.2 percent population increase while the Nation increased 18.5 percent.

The overall educational attainment in the upper Great Lakes counties is substantially below that of the Nation and adjoining parts of the three States.

Our economy was largely based on the exploitation of vast timber and high-grade iron ore resources. Today, the high-grade ore deposits are in most instances uneconomical. Some progress is being made to utilize the lower grade ores, but much more resource and technical improvement is needed.

The timber resources are significant, but we find the need to stimulate new timber utilization programs and new wood-using industries.

Public and private recreation development may offer the single most important opportunity for this region, but here too the investment of the Federal Government in new projects and public works is a critical factor.

There is a need to step up funding of small watershed programs, forest campsite construction, Corps of Engineer harbors of refuge, recreation and park areas, wildlife preserves, forest access highways, scenic parkways, and the many other Federal and Federal-State programs that are also so important to Appalachia.

Natural disasters affecting the fishing industry have left a deep mark. With expanded lamprey control programs and increased technical and financial assistance, a major fishing industry can be reestablished.

It is my understanding, from the testimony here on Tuesday, that the administration will recommend a $50 million supplemental appropriation to on-going Federal programs authorized in the Appalachia Act of the type just outlined. This is an appropriate approach to regional distress, and should be supported.

There is equal justification for such pinpointed investment in the upper Great Lakes region, where similar projects are "ready to go." One of the first responsibilities of the Authority authorized in our amendment will be to work with local and State agencies in identifying those that should be accelerated.

To review some of the work in the region and here in Washington preparatory to submitting this proposal to the Congress, in the early days of the area redevelopment program some of us urged that this entire region be treated as one unit for the purposes of ARA planning, analysis, and project location. It was unfortunate that this was not done.

In 1963, Secretary Freeman joined with Governor Rolvaag of Minnesota and others to call a land and people conference in Duluth, Minn. Several hundred citizens representing public and private groups, State and local agencies, came to Duluth. They heard President Kennedy pledge his support for the

beginning of a bright new era for the upper Great Lakes-an era in which the Nation's growing population looks to this region more and more as a major recreation area *** as a major source of the lumber, paper, and paper products which modern industry consumes *** as a great producer of taconite *** In the achievement of these goals, I pledge my full support and the support of every Federal agency

***

I would like, Mr. Chairman, if I may, to file as a supplement for your record the record of the proceedings of this 1963 Duluth conference.

Senator RANDOLPH. That will be made a part of our record.

Senator Hart, you are not interested that that be a part of the actual hearing record?

Senator HART. It is a very full document.

Senator RANDOLPH. That the committee may have the value of the study of such a document, it will be made a part of the record for the committee's consideration. It will be on file for our use.

Senator HART. I would ask, Mr. Chairman, that the very brief summary that was prepared from the resources and recreation study be made a part of the record at the conclusion of the testimony. Senator RANDOLPH. Without objection, it will be entered in the record.

(The report referred to follows:)

RESOURCES AND RECREATION IN THE NORTHERN GREAT LAKES REGION

A DIGEST

[The original report on this subject was a result of Secretary Freeman's request for an analysis of the potentials for economic development in this extensive forested and lakestudded region. It brings together the substance of other studies and information generously provided by agencies of the Minnesota, Wisconsin, and Michigan State governments, by their universities, and many individuals who have been giving thoughtful consideration for a long time to resource development in this region. The Task Force acknowledges and expresses appreciation for this help.]

INTRODUCTION

The report is about opportunities for rural area development (RAD) in the northern Great Lakes region. It highlights ways for people to help themselves, to work with their neighbors, to use services now available, and to draw on State and National services to reinforce local efforts.

THE SITUATION

The northern Great Lakes region is one of the most opportunity-laden regions in the Nation. Its wealth of natural resources, particularly suited for outdoor recreation, is the potential for a growing economy.

The 81-county area of northern Minnesota, Michigan, and Wisconsin contains 56 million acres of land and water, with four-fifths in forest and 3 million acres in water. Forty percent of the land is administered by public agencies; 60 percent is privately owned. The area is abundant in wood, water, and recreational opportunities.

It contains a population of 1,600,000 people of whom only 560,000 compose the working force.

Inde

New directions of effort are needed to rebuild the widespread breakdown of human welfare and community stability. A more effective blend of the natural and human resources can supply the urgently needed revitalization. pendent action cannot provide a long-term economic growth. Real progress will come from the integration of local, State, and Federal endeavors. Applying the concepts of multiple-use management will greatly assist the effort.

The first step is to agree on local objectives-to relate the needs of all the people to the uses of the resources. From this will grow broad policies, management direction, coordination among large private, industrial, and public landholdings, the farms, and small forest areas of the region. Then policies must be put into action. This calls for designating areas where broad use integration is possible. It also demands the specific designation of areas where multiple-use coordination must recognize special situations.

This approach requires teamwork. There are no established methods to stimulate multiple-use management. There are no clear-cut authorities, systems, or assignments of responsibilities for the coordination job that must be done. Greater leadership must come from the principal landowners, public or private. These land managers and local community leaders are the team to deal most effectively with the task.

OUTDOOR RECREATION POTENTIAL

A wide array of outdoor recreation activities is found here. Participation is high. Major activities are driving for pleasure, swimming, fishing, and boating. Water-oriented activities are numerous but the recreational use of water has not received the full attention it deserves.

The need is paramount for an inventory of all waters related to industrial and recreational opportunities. There should be standards established for water use based on types of use and quality of water available.

There is a need for proper zoning of lake- and stream-frontage areas in order to preserve their many values. Public access and public ownership should be improved and preserved. Self-conducted motor tours are recommended and attractive signing is encouraged.

Professional people should be given the opportunity to manage fish and wildlife habitat. Necessary is an educational program by them to direct residents' efforts toward proper management. Opportunities include: commercial trout ponds; fish-bait production; permit hunting for a fee; selling special maps; holding special contests; and open-and-close-of-season festivities. The reimbursement of landowners for use of their land for hunting and fishing by the public is encouraged. Attention is called to the need for an increased quality of overnight accommodations. The development of recreational centers should assist the tourist and the area economy. Commercial campgrounds are opportunities to increase income. Logging operations, ore mining, and Great Lakes shipping offer major tourist attractions and should be promoted as such. There is a need for low-cost and well-dispersed accommodations for young adults, such as youth hostelers.

AGRICULTURAL DEVELOPMENT

Outdoor recreation will become more important on farms but agriculture itself offers great opportunity. Dairy farming should continue as the important farm enterprise in many areas where conditions are favorable. And, within each farm unit, lands should be used for production of crops-field crops, forage, trees, and wildlife-suited to the limitations of economics and soil productivity.

Beef cattle production can become a significant economic force in northern Great Lakes agriculture. A shift from dairying to beef is already underway in some areas. The western ranch-type grazing could be adapted to many parts of the region.

There are other enterprises, such as the cranberry industry in northern Wisconsin, and fur farming in all three States. Wild fruit and nut production present opportunities. Farmers may charge visitor-pickers to harvest wild fruit crops as an adjunct to the main farming enterprise.

A farm recreation enterprise that boards guests during the vacation season offers attractive opportunities to tourists in the right locations. Here again, multiple-use development blends recreation potential with agriculture for increased income.

FORESTRY

There is a need to speed the gathering of timber-resource data on quantity, quality, and location for use when needed by industry.

Intensified forest management on all lands is stressed, but small private ownerships have the greatest need for better wood-product-marketing arrangements and management assistance.

Attention is called to developing opportunities for the products which can be expected soon from the larger forest plantations. There is opportunity to market special forest products, such as Christmas wreaths, charcoal, sphagnum moss, pine cones, and maple sap.

In many areas there is competition for wood procurement by various industries. In other parts good raw materials go unmarketed. This occurs because landowners' groups are generally not well organized to solve their marketing needs. Marketing organizations have been successful in some cases. In others, brokers have furnished the needed service. In many cases landowners are better organized to secure farm supplies, electric service, special crop sales, purchase and sale of animals, and other farm-type services.

A key element in marketing assistance for the small owner is a market that permits him to sell his raw product for the highest value use. Concentration yards for rough forest products permit sorting his product for kind, grade, and highest price, and also help stabilize the flow of raw materials. Many opportunities exist for such group-marketing techniques.

TRANSPORTATION-A KEY

Today's developing economic conditions call for considerable revision of existing transportation systems in the northern Great Lakes region. Access to the lakes, streams, and scenic spots is inadequate for the best use of those resources. The parse population, discontinuous agriculture areas, fragmented ownership, extensive public lands, and the nature of the terrain have deterred development of a swift transportation system throughout the region. Transportation is one of the keys to greater development.

The recreation resources cannot be transported. People must be brought into the region. The use of railroads and boats has dropped steeply in all parts of the country. Nearly 9 out of 10 recreationists come and go by car. Time and distance are major factors. Eight States south of the region contain nearly 50 million people, all potential users of the recreation resource in the region, and a market for its other products. The central and southern parts of this market area are well served by major trunkline highways, railroads, and airlines. The northern part remains to be tied to this network.

Expressways shrink distances (in terms of time) and draw the region's markets and resources closer together. Some relocations of this type are already taking place. The impact of linking Detroit by high-speed freeway to the Mackinac Bridge is already reflected in new summer homes, winter resort construction, and roadside service. Comparable north-south freeways are vitally needed in Wisconsin and Minnesota. These and many other opportunities for improving transportation need sustained local leadership.

There is a high potential for scenic pleasure driving through the outstanding parts of the region. Present highway economics and public works policy are not geared to this situation. Conscious management for scenic needs can improve recreation potential as well as provide economic benefits.

LANDOWNERSHIP INFLUENCES

Fragmented ownerships in the region reflect to some extent a lack of specific goals in ownership. Splitting and resplitting land, without development or improvement, lessen the possibility of good returns from resources. The situation may stem from a low land value (often leading to speculation) or a lack of under