this committee would give special study to the Washington County area. Civic leaders in the Biddeford-Sanford area believe that Federal assistance could be most effective in two ways: (1) Available risk capital that could be loaned to industries that would like to locate in that area; and (2) special concessions for Government contracts for the firms that Sanford civic leaders have been able to get into the once-vacant and haunted, abandoned mill buildings. Civil leaders in Washington County have expressed the belief that Federal assistance could be most effective by giving preference to any local manufacturer in that area capable of producing goods suitable for use by the Federal Government. This is from the standpoint of immediate concern. As the chairman and members of this committee know from my constant talking with them on the subject, I have been pushing for the Quoddy overall survey to determine if the generation of electricity from the tides of this area can be made at an economically feasible cost. As you know, the proposed Passamaquoddy project is in the eastern part of Washington County. The Senate has been generous in twice passing a resolution to authorize this study, and I hope this year the House will also pass it. While my prime concern about the potential of Quoddy is from the standpoint of national security and national strength in the development of a huge and unfailing source of water power, I am also interested in the possibilities that it offers in bringing considerable benefit to New England and to Maine. The proposed overall survey would bring some temporary economic relief to that area, and if the economic feasibility should be proved and construction of the project realized, the economic benefit would be permanent and great. For example, some interest has been evidenced under those conditions in locating an aluminum plant in that area. Obviously, some of these aspects are matters not within the scope or purview of this committee, but they are of interest to you as individual Members of the Senate, and they do have a relation to and bearing on the problems to which you are so admirably devoting your time and attention. I relate them in the thought of giving you a greater perspective of the conditions and the potentialities of these troubled spots of Maine. I commend this committee on its work on this matter. I have conferred with the White House on this subject and am gratified that an administration bill will be offered early in this session with perhaps a Presidential message sent to Congress as early as Friday. I should like, Mr. Chairman, to place in the record of your hearings, along with my statement, expressions received from civic leaders in these areas, and again, I want to thank you and the committee very much for permitting me to appear. (The material referred to follows:) SANFORD-SPRINGVALE CHAMBER OF COMMERCE, Senator MARGARET CHASE SMITH, Senate Office Building, Washington, D. C. DEAR SENATOR: In reference to your letter of December 21 regarding your appearance before the Senate Subcommittee on Labor on the bill which you have been conferring with Senator Paul Douglas on, I herewith give you the feeling of myself and our local chamber of commerce on suggestions that we have thought over here. Incidentally, we spent some time with Mr. McTigue and he left us a digest of the Douglas depressed areas bill. This bill seems to cover just about everything in the way of help that a distress area could ask for and we here in Sanford are strongly for it, even though it may not help us as by the time this bill is passed, we sincerely hope to be back on our feet again. We were very pleased here at the chamber in your sending Mr. McTigue to our section of the State and appreciate the interest you have shown in the past in helping the town of Sanford. The situation in Sanford is very evident and the needs are very easy to write of, but hard to accomplish. In our case, we lost our entire industrial base, as you know, throwing 3,500 people out of work. There are approximately 3,000 people in the Sanford area available for work now. Many of our people are commuting long distances in order to get work so that they can retain their homes here. Unemployment checks have now run out for most of these people. The additions, as I see it, that could be very helpful to our area are: (1) Available risk capital that could be loaned to industries that would like to locate here. The SBA has been very cooperative and very helpful on the three loans that we applied for. One was turned down which was probably very rightfully so; one for $55,000 was passed for a firm now located here in Sanford; and one for $65,000 for a company which we lost through a union in New York. However, it took 5 to 6 months to process these loans. (2) Special concessions for Government contracts for the firms that we have already in our mills. At present, we have had no Government contracts for our new companies, even though they have made some bids. If we could have a special depressed area administrator who could have one of his personnel contact our companies to find out just what they could make that the Government could use, we certainly could put our people back to work much faster. As far as food supplies are concerned, the Department of Agriculture has been very liberal with what food articles they have had available. As I said before, I really feel that it covers just about everything that could be asked for by a depressed community. I might add, however, that if the Government is planning on building any atomic projects or other such plants, that a depressed area should be picked if the location is anywhere near suitable to the Government. In fact, I wonder if you could possibly make contact with the Atomic Energy Commission and ascertain if they would build an atomicenergy powerplant in Sanford for Maine and New Hampshire areas on an experimental basis. I hope that this helps you in some way in your testimony before the Senate Subcommittee on Labor and we here in Sanford wish you a very happy and prosperous New Year. Sincerely yours, Ralph, RALPH M. LOVELL. January 1954: Sanford-Springvale Chamber of Commerce organized. July 1954: Burlington-Mills, Inc., merger with Goodall-Sanford, Inc. August 3, 1954: Burlington-Mills. Inc., takes control of Goodall-Sanford and immediately starts liquidation. Mill B put up for sale in package deal. September 1954: Kostis Fruit Co., Sanford, purchase mill warehouses for company expansion program. October 1954: National Consolidated Shoe Co. purchases Minerva Mill for their Springvale operation. October 1954: Labor survey taken by Main Employment Security Commission. December 2, 1954: L. Grossman & Sons, Inc., Quincy, Mass., purchases entire mill property which is put up for sale by units. December 30, 1954: Seamloc Carpet Co. formed. carpet division. Will make "Seamloc" carpets. Holdover from the Goodall February 2, 1955: Purchase of 250,000 square feet of mill property by the Wasco Flashing Co. of Cambridge, Mass. New operation called Wasco Chemical Co., and will make plastic skydomes, "Wascolite" building materials. April 1955: Compron, Inc., purchase small mill building in Springvale, for the manufacture of powdered metals, auto wax, and plastic heels for women's dress shoes. April 13, 1955: Rollins Solution Co. formed. Came about through Seamloc Carpet Co. Rollins Co. now doing work for other new companies. August 2, 1955: North Star Woolen Co., manufacturers of North Star blankets, move entire operation to Sanford mill property from Lima, Ohio. August 2, 1955: R. Kolodney Co., Hartford, Conn., expands operations to Sanford. Sanford Dress Co. manufactures Betty Hartford dresses. September 22, 1955: Colonial Aircraft Corp. purchases space for manufacture of their amphibious plane, the "Skimmer." September 1955: Prevore-Sanford Dress Co. leases new building built in Springvale for manufacture of inexpensive dresses. November 10, 1955: Sanford Plastics, Inc., purchases mill property for manufacture of plastic sheeting. December 1955: Nasca, Inc., moves to Sanford. Will manufacture sweaters from llama wool. The total employment for new companies is 471. Senator DOUGLAS. Thank you, Senator Smith. I notice that in the telegram from the Washington County Chamber of Commerce it states the coastal towns of Washington County from Jonesport to Robbinston should be classified as a distressed area. It states that the almost total failure of sardine fisheries has left hundreds of families there destitute and with no other employment available. Is there any explanation as to the relative failure of the sardine plants these past years? Senator MARGARET CHASE SMITH. I think there have been several reasons. I don't know that I can go into details, but one is, the run has been very slow this year, the run of fish up there. Secondly, of course, the imports interfere with the selling. There hasn't been as great a demand for sardines as in previous years. Senator DOUGLAS. I have heard reports that the temperature of the ocean has increased by 1 or 2 degress and that this seems to have had its effect on the fisheries; is that true? Senator MARGARET CHASE SMITH. I don't know that. Senator DOUGLAS. The industry of Washington County in the past has been largely based on fishing, has it not? Senator MARGARET CHASE SMITH. Fishing, lumber, and blueberries. There has just come to me a special delivery letter from C. Arnold Brown, president of the Washington County Chamber of Commerce which I would like also to include in the record which is his report on the economy of Washington County, which may help on some of these questions. (The information referred to follows:) WASHINGTON COUNTY, MAINE, CHAMBER OF COMMERCE, INC., Senator MARGARET C. SMITH, Senate Office Building, Washington, D. C. Woodland, Maine, January 1, 1956. DEAR SENATOR SMITH: Glad to have this opportunity to furnish you these few facts relative to the economy of Washington County. Also attached is a copy of the economic report prepared in 1954 which covers conditions here very well. We sincerely appreciate your interest in the economic condition of Washington County and are hopeful that some results may be obtained from your efforts. Sincerely yours, C. ARNOLD BROWN, A REPORT ON THE ECONOMY OF WASHINGTON COUNTY, MAINE In the years prior to 1920 the economy of Washington County was sound and there was employment for all who desired it. The county population during this period numbered about 45,000 people employed in the long lumber mills, the granite quarries, coastal and ocean shipping, fisheries, wooden-boat building, small-farm agriculture, logging, and numerous other small enterprises. Since 1920, with the passing of many of the above industries, the economy has changed, and the population has dwindled down to about 35,000 people. Most of the present population is dependent on seasonal industries for their livelihood, and, were it not for unemployment benefits, many would rely on the municipalities and the State for support. Long distances from the markets of the United States, high freight rates, and the lack of abundant electric power are the main factors which have discouraged new industry from locating in this area. Washington County has plenty of good labor, willing to work, and anxious to share in the prosperity enjoyed by other sections of the United States. Here are some of the possible answers to the economic problems of Washington County. 1. The United States Government should set up a definite program of economic aid in this area, as they have done in the South, the Northwest, and in other areas of this country and throughout the world. 2. Encourage and build, either by the Government or private capital, the Passamaquoddy tidal power project, so that Maine and New England will share in like manner to the Tennessee Valley, Columbia River Basin, and other areas where similar projects have been built. 3. Assist our seaport towns in the construction of harbor and docking facilities similar to what Canada is doing for the seaport towns of the eastern Provinces. 4. Go ahead with the proposed St. Croix Island memorial project which has been planned for some years. 5. Make more credit available through the Federal Farm Loans Bureau to encourage more extensive farming and poultry production. 6. Take the Princeton Airport, upon which the United States Government has already spent $1,500,000 and make it part of our chain of defense bases. 7. Some agency of the Federal Government should place a research group in eastern Maine to explore the whole economy of the area and find out what can be done to give the people a sound economy. NOTE.-Attached to these proposals is the economic report of Washington County prepared in 1954. Conditions have deteriorated somewhat since this report was issued due to a very poor sardine packing season and a poor blueberry егор. WASHINGTON COUNTY CHAMBER OF COMMERCE-ECONOMIC REPORT AND RECOMMENDATIONS FOR WASHINGTON COUNTY During a part of 1953 and in January 1954 there was widespread publicity concerning alleged distress in Washington County and suggestions were made that relief be applied for from the State and Federal Governments, in forms not specified but presumably in the nature of grants and gratuities. These suggestions were rejected by responsible Washington County spokesmen as not being warranted by the facts, and as not having been adequately sponsored or authorized. The Washington County Chamber of Commerce thereupon called a countywide conference of leaders in all fields of economic activity in the county, together with representatives of all State and Federal agencies concerned, to determine the actual economic condition of the county, and to propose a recovery program based on self-help, with only such aid from outside sources as might be accepted without unfavorable implications. This conference was largely attended, and a series of reports by panels of it, representing all major industries and interests, showed that the economy of Washington County was basically sound, but that remedial action was desirable in special fields. After checking carefully on changes since the conference was held, certain recommendations have been approved for submission to the Governor, former Governor Cross during his term of office, having indicated a desire that this be done; and to the Maine delegation in Congress, at the suggestion of Senator Margaret Chase Smith. There are still others constituting a program for promotion and implementation by our own people. The reports to the Governor and the Maine delegation in Congress have already been made, and it remains only to report to the people of Washington County the present status of their economy and what they may do to improve it. It has been encouraging to find that the losses from poor seasons in the blueberry, sardine, and forestry industries in 1953 were largely, if not entirely made up by improvement in those industries during 1954. Agricultural activities showed little change, except for some expansion in poultry and strawberry production. Recreational establishments suffered somewhat, especially in the first half of the season, from the cool, late and rainy spring weather. Shore fisheries were hard hit by the depletion of the clam flats and by the hurricanes and blowy weather of the fall months. In general, however, overall economic conditions in this county have shown substantial improvement during the past year. Savings deposits continue at or near an all-time high; activity in commercial banking increased sharply; tax collections were good, and as in 1953, every municipality had paid its county tax, in full, prior to December 31. The relief load was no greater than it was in 1953 in most towns, and smaller in some. Per capita ownership of homes and automobiles continued at about the average for the State. Nevertheless, these facts remain: That Washington County has lost 10,000 population in the past 50 years, for one reason and only one, its economy has not been able to support more than the 35,000 people it now has; that the per capita income here is probably not equal to that in most Maine counties; and that many of our resources lack adequate development. For these reasons, a development program is obviously necessary, and we submit the following as a basis for discussion and promotion if found desirable and practical. GENERAL RECOMMENDATIONS Early completion of modern highway construction eastward along Route 1, at least as far as Calais. The unsatisfactory condition of this main line in and out of the county has always constituted a serious handicap to every one of our revenue-producing activities. Reduction and rationalizing of freight rates in and out of the county. Unjustifiably high transportation costs and differentials passed down from decade to decade have, like poor highways, been a major load on our industrial, agricultural, recreational and other development. Adequate publicity, while subordinate to good roads and more favorable freight rates, is basically essential to any effort to interest outside people and capital in our agricultural, industrial, fishery, forestry and recreational attractions. More intensive use of State and Federal agencies in the development of our agriculture, animal husbandry, fisheries, and forests is obviously desirable. These agencies are equipped to make powerful contributions to the progress and success of all these activities, and they have shown not only willingness but eagerness to help. They need however and should have, more encouragement and cooperation than they have received thus far here. They in turn might well try to integrate their programs more closely with those of local chambers of commerce. SPECIFIC RECOMMENDATIONS AS TO INDUSTRIES Agriculture. (1) More attention to the extension of blueberry production. There is a ready cash market for this crop, and plenty of land is available for cultivation. Nonemployment of this land is a direct economic loss. (2) Promotion of poultry production and strawberry culture, for both of which this country is particularly well suited. (3) Promotion of beef production, not as a main dependence for any farmer but as a profitable sideline. (4) Formation of more cooperatives to help farmers with equipment, fertilizer and more especially with their most difficult problem, marketing. (5) Efforts to avoid further frequent changes in the important office of county agent, every change here, where a good man is concerned, is costly, in time, acquaintance and results, until the new man gets established. Manufacturing: (1) Promotion of the Quoddy Tidal Power Project. (2) Efforts to assist and procure expansion of manufacturing plants already located here. (3) Efforts to secure the establishment of new factories, in lines for which local conditions are favorable. These include, specially, woodworking plants, using our abundant hardwood and competent labor; and boatbuilding enterprises, for small boats in particular, for which we have plenty of material and skilled labor. (4) Promotion of at least one additional pulp and paper mill for which we have favorable sites and satisfactory supplies of wood. |