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THE FUTURE OF SMALLTOWN AND RURAL AMERICA:

THE IMPACT ON SMALL BUSINESS

HEARINGS

BEFORE THE

SUBCOMMITTEE ON SMALL BUSINESS PROBLEMS

IN SMALLER TOWNS AND URBAN AREAS.) United States. Congresis. SELECT COMMITTEE ON SMALL BUSINESS.

HOUSE OF REPRESENTATIVES

OF THE

House.

NINETY-SECOND CONGRESS

SECOND SESSION

PURSUANT TO

H. Res. 5 and 19

RESOLUTIONS CREATING A PERMANENT SELECT COMMITTEE TO CONDUCT STUDIES AND INVESTIGATIONS OF

THE PROBLEMS OF SMALL BUSINESS

VOLUME 1

WASHINGTON, D.C., MAY 2, 3, AND 4, 1972

Printed for the use of the
Select Committee on Small Business

U.S. GOVERNMENT PRINTING OFFICE

78-617 0

WASHINGTON : 1972

KF27

5 56762 1972

SELECT COMMITTEE ON SMALL BUSINESS

JOE L. EVINS, Tennessee, Chairman TOM STEED, Oklahoma

SILVIO O. CONTE, Massachusetts JOHN C. KLUCZYNSKI, Illinois

JAMES T. BROYHILL, North Carolina JOHN D. DINGELL, Michigan

FRANK HORTON, New York NEAL SMITH, Iowa

J. WILLIAM STANTON, Ohio JAMES C. CORMAN. California

JOSEPH M. McDADE, Pennsylvania JOSEPH P. ADDABBO, New York

MANUEL LUJAN, JR., New Mexico WILLIAM L. HUNGATE, Missouri

JAMES D. (MIKE) MCKEVITT, Colorado
FERNAND J. ST GERMAIN, Rhode Island
CHARLES J. CARNEY, Ohio
PARREN J. MITCHELL, Maryland
BOB BERGLAND, Minnesota

HOWARD GREENBERG, Staff Director
MILLARD V. OAKLEY, General Counsel
HENRY A. ROBINSON, Deputy General Counsel
LESLIE R. PENNINGTON, Printing Editor
MYRTLE Ruth FOUTCH, Clerk
John M. FINN, Minority Counsel

SUBCOMMITTEE ON SMALL BUSINESS PROBLEMS IN SMALLER TOWNS AND

URBAN AREAS

JOHN C. KLUCZYNSKI, Illinois, Chairman JAMES C. CORMAN, California

FRANK HORTON, New York
CHARLES J. CARNEY, Ohio

J. WILLIAM STANTON, Ohio
DONALD B. Roe, Subcommittee Counsel

John M. FINN, Minority Counsel

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MSW20072

CONTENTS

Hearing dates:

May 2, 1972

May 3, 1972.

May 4, 1972

Testimony of -

Arnett, Alvin Jones, Executive Director, Appalachian Regional

Commission

Brown, Philip, Director of Information, Rural Housing Alliance.

Cochran, Clay L., Executive Director, Rural Housing Alliance.

Prepared statement..

Conroy, Jerry, General Counsel, Department of Commerce.

Gavin, James A., Legislative Director, National Federation of Inde-

pendent Business-

Graves, Clifford, Director, Office of Planning and Management Grants,

Department of Housing and Urban Development.

Hammerschmidt, Hon. John Paul, a Member of Congress from the

State of Arkansas.

Ingraham, Page L., Intergovernmental Programs, Appalachian

Regional Commission.

Jackson, Samuel C., Assistant Secretary for Community Planning

and Management, Department of Housing and Urban Develop-

ment.-t

Maffin, Robert W., Executive Director, National Association of

Housing and Redevelopment Officials.

Prepared statement..

Mooney, Prof. Eugene L., Coalition for Rural America.

Motley, John, congressional liaison, National Federation of Inde-

pendent Business

Paul, Robert, Director, Division of Urban Growth, Department of

Housing and Urban Development.---

Podesta, Robert A., Assistant Secretary for Economic Development,

Department of Commerce

Raphael, David, Assistant Director, Rural Housing Alliance.

Rockefeller, Hon. Winthrop, executive vice president, Coalition for

Rural America.

Sebelius, Hon. Keith G., a Member of Congress from the State of

Kansas

Silverman, Jane A., National Association of Housing and Redevelop-

ment Officials ..

Troilo, Art, Director, Office of Environmental Standards, Department

of Housing and Urban Development.

Wagner, Aubrey J., Chairman of the Board, Tennessee Valley Au-

thority -
Whitaker, Constance, National Association of Housing and Redevelop-

ment Officials -

Whitehead, Donald, Federal cochairman, Appalachian Regional

Commission..

Wilson, Miss Augusta, associate director, Coalition for Rural Amer-

ica.

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THE FUTURE OF SMALLTOWN AND RURAL AMERICA:

THE IMPACT ON SMALL BUSINESS

TUESDAY, MAY 2, 1972

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON SMALL BUSINESS PROBLEMS
IN SMALLER TOWNS AND URBAN AREAS OF THE
SELECT COMMITTEE ON SMALL BUSINESS,

Washington, D.C. The subcommittee met, pursuant to notice, at 10:10 a.m., in room 2359, Rayburn House Office Building, the Honorable John Kluczynski (chairman of the subcommittee) presiding.

Present: Representatives Kluczynski (presiding), Corman, Conte, and Stanton.

Also present: Representatives Bergland and Hungate of the full committee; Donald B. Roe, subcommittee counsel; John M. Finn, minority counsel; and Myrtle Ruth Foutch, clerk.

Mr. KLUCZYNSKI. The hearing will come to order.

The Subcommittee on Small Business Problems in Smaller Towns and Urban Areas today commences hearings on the Future of Small Town and Rural America: The Impact on Small Business.

Under the very capable leadership of our full committee chairman, Representative Joe L. Evins of Tennessee, our subcommittee has been able to continue its work in the field of rural America. Chairman Evins has been one of the most able and forceful spokesmen in the Congress to improve and enhance life in our countryside.

Our hearings today represent an effort to determine the future of Small Town America. The impact on small businesses in rural areas is, of course, directly related to the question of whether small towns are able to continue in existence.

The problems of rural areas have too often been ignored at their expense and that of the big city. Having the honor and privilege to represent the 5th Congressional District of Illinois (Chicago), I have a deep commitment to resolving the plight of metropolitan areas. Like many of my colleagues who also represent big cities, it is evident to me that the dilemmas facing the countryside must be properly dealt with before we can adequately stem the difficulties of metropolitan areas.

Reports have reached us that the Federal Government is lessening its efforts to aid and assist Small Town and Rural America. I hope this is not the situation, and we look forward to testimony from federal officials resassuring us that the Government is actually increasing its efforts to provide Americans living outside of metropolitan areas the kind and quality of help that is so desperately needed.

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