Mr. MCCLOSKEY. Excuse me, I thought you were Republican, but, Senator, wouldn't it be better if the Government gave us an outright grant? We have got to go through all the redtape and hire lawyers to spend it. Why should we have to borrow money when they are giving it to foreign governments? You are against too much foreign aid. I suppose, the same as all others should be, giving it all to them and getting nothing in return.

Senator NEELY. You are mistaken in believing that I am a RepubliBut let us hope that so far as the distressing problems of unemployment are concerned, we are all patriotic Americans, regardless of our party affiliations.

Mr. MCCLOSKEY. That is right. I concede that aid should be given some of them. Help especially the ones that buy here and all that, but I do remember that the first 5-year plan in Russia was put in about 1928 when Wall Street's capitalists lent the Russian Government money and our Government guaranteed the loan.

They bought steel mills, locomotives, and mill equipment of all kinds, and we sent our best technicians and engineers over to help Russia build their industries so as to check Germany. We are now suffering. We have built them into being our own competitor for world trade. We will soon have to go to war, I am afraid, to compete with them for our very existence.

Some Senators and Congressmen are still advocating building more competition in other countries by giving them loans which are really grants to build steel mills and factories. We boosted the stock market to a high peak in 1928, but we suffered in the crash of 1929, and we are about to pay for it again with more and more lives of our youth as we have twice paid in the Second World War and Korea.

Surely no Senator or Congressman will be so blind as to think of today only. It is the tomorrows that follow which will cost us millions of lives in fighting for our existence through the threat of communism.

The first 5-year plan was financed by us to give Russia help. That was the beginning of Russia to build up to compete with us, or they would be struggling yet. They are now on their sixth 5-year plan and fighting us for world trade.

So if you want to stop the residual oil from coming in here, why don't you vote it out. Quit talking about it. We here can't do anything about it. You are in Congress. You have a vote and if you, Senator Neely, and Congressman Saylor, are really against residual oil pouring into this country, get Congress to stop it. Inciting us in this manner isn't going to help.

This hearing is absolutely a waste of time and money, for I have been hearing about residual oil so long that I am growing tired of hearing about it, and most others feel the same. I repeat, there is no use coming here to incite us about it; we can do nothing about it.

Senator Neely, give each community in this district or any community that has a surplus of labor and will put up 20 percent and if the State puts up 20, let the Federal Government give them 60, and if the State don't go along with them, then the community puts up 30, let the Government put up the 70, and let all of us run a race to see who can get industry.

Let's make our community more invitable for industry to land, because we are not going to get it any other way.

Senator NEELY. Mr. McCloskey, will you not tell us whether you are for the pending bill?

Mr. MCCLOSKEY. I am not for any bill that calls us a distressed area, because we would be licked gentlemen, remember that.

We are not a distressed area, and we would not come under any bill that goes through Congress to help a distressed or oppressed or depressed area. What I would like to see a bill do

Senator NEELY. Do you know of any distressed area in Pennsylvania?

Mr. MCCLOSKEY. Oh, yes; there may be some of them, but under this bill they could not qualify nor could we of the city here qualify, as we are free of debt, and the bill says on page 9, line 23, quote:

No such assistance shall be extended hereunder unless the financial assistance applied for is not otherwise available from lenders or other Federal agencies on reasonable terms.

So you see, Mr. Senator, that disqualifies we of the city here. Then page 10, lines 8, 9, 10, state:

All evidence of indebtedness purchased on all loans shall provide, in the judgment of the Administrator, a reasonable assurance of repayment.

I feel certain that they would eliminate small mining towns such as we have here from qualifying for a loan, as some could not give reasonable assurance of repayment. Therefore, Mr. Senator, I ask you again to realize, it is a grant that such places as we here in Johnstown and other municipalities that have surplus labor are entitled to, and we could then build public projects for the next 4 or 5 years.

The bill should read that the work shall be done only during the time of surplus labor. Thus, it would give us a backlog at all times. If we build our community more invitable for industry, the Government would be helping us to help ourselves.

If I were John Ghizzoni, local head of the United Mine Workers, I know what I would do.

I would put miners' lamps on all of those coal miners who are out of work in Pennsylvania and West Virginia and get you to help me, Senator. I would put miners' lamps on them and get them all to march to Washington or caravan them as Father Cox and I did with the jobless army, January 1932, and let Congress see how many are idle, as you are one Senator and Mr. Saylor is one Congressman who comes here, and you hear all this testimony, but you know that no one in here is so naive to think that those other Congressmen or Senators are going to have time to read what that gentleman is typing out on that stenotype.

You know better. We all know better. The only way you can do is march into Washington

Senator NEELY. The Chair must observe that he does not share your opinions, or concur in your conclusions.

Mr. MCCLOSKEY. Didn't I hear the same thing in Altoona about a year ago? Wasn't the same thing heard in Washington the last several weeks now here-tomorrow in Wilkes-Barre.

Didn't Van Zandt?

Senator NEELY. He in his telegram says, in effect, that there has been a 12-percent decrease in unemployment since our hearing was held in his city last year.

The subcommittee will take no part in a controversy between your community and that which Congressman Van Zandt represents.

Mr. MCCLOSKEY. But what I want to know is why shouldn't we have a bill to give these communities here the same right as you give to foreign nations? You give it to them. Why shouldn't we get it? If we, the municipalities, pay part and the State pays part, they, the Government, should pay part. We don't want any loans, as we are out of debt. We were put millions of dollars in debt before by bond sellers. We want to stay out of debt and we ask help, just 20 percent from us, 20 percent from the State government, and 60 percent Federal grant, instead of us going down there borrowing ourselves into debt again, which will do us no good.

But anyhow, thanks, Mr. Chairman. Will you return my letter to me now?

Senator NEELY. With pleasure.

Mr. MCCLOSKEY. I would like to have that. This is a letter I sent to them-your committee, addressed to Senator Douglas. I was supposed to be told when this meeting would take place, and given time to present Johnstown's side of our needs. I never received any word until I busted in on this meeting without an invitation to give it to you, Senator, and here it is, as dated, January 16. But it seems to me were to be shoved aside again.

Senator NEELY. That letter was not sent to me and it did not come to my attention until you showed it to me today.

Mr. MCCLOSKEY. It was sent to Senator Douglas. But you did read and hear that it said they would give it to you for your attention: the date was January 5 when I wrote it. It was answered January 16.

I will read what it says:

And will be brought specifically to the attention of Senator Matthew M. Neely, of West Virginia, who will quite likely serve as chairman of the subcommittee for hearings held in your State. Signed, Stewart E. McClure, Staff Director.

Senator NEELY. In any event, you have "had your day in court." Mr. SAYLOR. Senator, that concludes the witnesses that have been scheduled to appear before you today. I want to take this opportunity to thank you on behalf of myself, the people that live in these communities, on behalf of the men who appeared here, took their time to testify, because I know that they appreciate it.

You are taking your valuable time to come up here, and I sincerely hope, Senator, that a year from now we might, as a result of this bill, be in a position to report to you and to the country that we have done as much for this area as was done for Altoona in the hearing which was held a year ago.

Senator NEELY. Thank you sincerely for your generosity. The hope that you have expressed has my wholehearted concurrence. Let us trust that in the days to come we shall be working together, as we have in the past, to solve the problem of unemployment which is scourging much of your State and mine.

For the unlimited hospitality which you and your constituents have most graciously extended me today, I thank you and them again and again.

This hearing is now adjourned.

(Whereupon, at 11:50 a. m., the subcommittee adjourned, to reconvene at 10 a. m., Friday, February 10, 1956, in the Federal courtroom, Post Office Building, Wilkes-Barre, Pa.)

AREA REDEVELOPMENT

FRIDAY, FEBRUARY 10, 1956

UNITED STATES SENATE,
SUBCOMMITTEE ON LABOR OF THE

COMMITTEE ON LABOR AND PUBLIC WELFARE,

Wilkes-Barre, Pa.

The subcommittee met, pursuant to notice, at 10:08 a. m., in the Federal courtroom, Post Office Building, Senator Matthew W. Neely presiding.

Present: Senator Neely.

Also present: Frank V. Cantwell, professional staff member.
Senator NEELY. The meeting will be in order.

The Subcommittee on Labor of the Senate Committee on Labor and Public Welfare has convened this morning in Wilkes-Barre to hear testimony from representatives of local government, labor, and industry. Senate bill 2663, introduced by Senator Paul H. Douglas, of Illinois, for himself and a group of other Senators, of which it is my privilege to be a member.

This bill proposed Federal aid for the economic rehabilitation of the numerous communities of the country which are distressed by unemployment.

Acording to the United States Department of Labor, 14 communities of the Commonwealth of Pennsylvania have substantial surplus labor.

Here in the world-famous anthracite coal region such traditionally prosperous cities as Scranton, Wilkes-Barre, Hazleton, Pottsville, Carbondale, and other towns are confronted with serious unemployment problems.

Notwithstanding the vigorous and praiseworthy efforts of these communities to help themselves, unemployment continues to afflict them. It is the object of the bill, and the purpose of this subcommittee, to help you and all others concerned banish unemployment distress.

Your distinguished, faithful Congressman, Hon. Daniel J. Flood, whom we have long and favorably known, has kindly consented to present the witnesses who are to testify.

Congressman Flood, will you please proceed?

STATEMENT OF HON. DANIEL J. FLOOD, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA

Mr. FLOOD. Thank you, Senator.

I want to begin by saying-and, as you know, I am very delighted that you have honored our community by coming here to preside at