has the carrier contract awarded to the Camden yard of the New York Shipbuilding Corp. broken the persistent drought to a certain extent, but defense establishments located in the city keep laying off workers in spite of the city administration's protestations.

Some of the causes of this entire situation are typically urban problems which have not yet received the national attention they deserve. People in growing numbers have settled around its core in a completely unplanned way.

The central city, which should furnish a variety of business, professional, and distributive services to an ever-increasing surrounding region, is hemmed in by obsolete industrial structures and the general congestion of the city with its growing traffic and transportation problem.

Crowding and lack of space for expansion do not permit industries to grow as they should, nor services to be accesible as they must be. All this makes the ungainly metropolitan area even less attractive for businesses and for gracious living. The diversity and potentialities of a city make it harder to find single remedies, but for that very reason more imperative.

Philadelphia has done a great deal on various fronts to combat these ills over the last 4 years, as former Mayor Joseph S. Clark, Jr., points out in his testimony before this committee. My administration is committed to careful economic studies of the causes of and possible other remedies for our economic plight. Plans for economic and industrial renewal are being laid. But Philadelphia cannot accomplish the feat of pulling itself out of this precarious situation entirely by its own bootstraps. As economic problems continue, they become cumulative and harder to solve. Over most of the last 18 months we have been a substantial labor surplus area. It would not take too much more to push us the added step into becoming a depressed area.

You will, I am sure, permit me the suggestion that Senate bill 2663 should somewhat broaden its definition of "depressed area." The requirement of section 6 at least 6 percent of its labor force have to be unemployed for at least 3 years is hard to meet. It is particularly difficult for areas which badly need the aid provided under this bill to help them out of a situation which in 3 years may be an almost insoluble major problem affecting, in Philadelphia's case, over 3 million people. It seems unfortunate to have to wait through 3 years of consistent misery before remedial action can be really effective. Also, an area with diversified industry might improve seasonably which is not too meaningful when the long run is considered. (In spite of the average unemployment percentages mentioned above, Philadelphia was taken off the "substantial labor surplus area" list by the Department of Labor at the end of last year and will now have to be put back.) It is therefore suggested that an average percentage of unemployment over the specified period be the prerequisite rather than a continuous one. And it may be that this committee will feel that for areas beset with peculiarly urban problems, the specified time should be reduced to 18 months at 6-percent unemployment.

The specific remedies of bill S. 2663 would be an infinite help for Philidelphia if it could qualify for them. Section 9, which provides for the construction of public facilities, is particularly applicable. Philadelphia has a carefully worker out 6-year capital program of improvement projects which, if speeded up, could materially help the economic situation. Many of these projects create employment directly, as well as indirectly after completion. Yet the city does not have the funds to move them ahead of their schedule.

If eligible under the bill under consideration, Philadelphia could present immediately detailed proposals to the Depressed Areas Administrator for consideration under section 9b. Likewise, the requirement of a "local committee" in section 7 is in line with the way in which this has been handled in Philadelphia, as representative committees of prominent citizens have been called in every time new problems are being approached; this was done, for instance, in connection with putting our urban renewal plans into effect. The city's plans, for example, to use city-owned land for industrial development has been concieved in this fashion.

Not only the number of unemployed workers in the city but their composition seems to require greatly increased training, rehabilitation and careful counselling. Many are unemployed because their skills have become obsolete. Others have never held jobs in modern industrial environments, and need a great deal of special advising, training, and vocational education as prescribed under section 15. Better coordination of and strengthening of the services of the State employment bureaus would be most beneficial, as would be the payment of supplementary unemployment compensation (sec. 16).

Beyond that, it may be suggested that some of the remedies proposed in the Report on Low-Income Families of the Joint Congressional Committee on the Economic Report, published 6 months after the introduction of the bill under discussion, be incorporated in this bill. In particular, Philadelphia's small businesses have suffered badly and would need technical assistance, financial advice, and credit aids. Failures of small businesses, and the inability of the city to attract sufficient struggling new ventures which eventually grow into large employers of labor, may be responsible for Philadelphia's long-range economic problems to a larger extent than is usually realized.

Philadelphia is struggling hard to get out of the squeeze between economic conditions which require financial help and substantially increased services, and a steadily decreasing tax base. Many metropolitan areas, in which millions of our people live, suffer the same kinds of problems. They are unable to furnish all the means to prevent their slipping deeper into economic difficulties. It is most encouraging that the Federal Government realizes its responsibilities with regard to deeply depressed areas. I am respectfully submitting that unless the urban economic problem is also recognized as a Federal responsibility today. Washington may be requested to help at a time when it will be much harder to improve the situation.

Mr. FLOOD. The next witness, Senator, is Mr. Thomas W. Morris, commissioner of Greater Pottsville Industrial Development Corp.

Senator NEELY. Please proceed in your own way, Mr. Morris.

STATEMENT OF THOMAS W. MORRIS, COMMISSIONER OF GREATER POTTSVILLE INDUSTRIAL DEVELOPMENT CORP.

Mr. MORRIS. On behalf of the greater Pottsville Industrial Development Corp., and the people of the greater Pottsville area, I wish to thank you, Senator Neely, and the members of the Subcommittee on Labor for this opportunity to express our views on Senate bill 2663. Ours is a depressed area, as described in the bill.

Senator NEELY. We know about them in West Virginia. We have had more than a dozen of them in our State during the past 2 years. Mr. MORRIS. According to the most recently released figures of the Bureau of Employment Security, there are 13.975 persons unemployed in our labor market area, and that represents 16.7 percent of our total civilian labor force.

This condition is a chronic one and dates back into the 1930's. It was temporarily alleviated during World War II, but it came back in full force immediately on cessation of hostilities. Our area, too, is one of those which has been and is continuing to be engaged in positive efforts of self-help through industrial development programs. There is a chart attached to the prepared statement which I provided the clerk which will give you our history, but I brought along this bar chart to summarize it for you.

You notice here that about $588,000 of community-subscribed funds have created 5 industrial projects which are employing close to 1,500 people, and there is a projection of close to 2,200 potential jobs from these projects.

This money again, which was primarily at least three-fourths of it-given in outright gifts to the industrial development corporation, has created close to 350,000 square feet of manufacturing floor space. The other thing I would like to point out on this chart is that our banks have been very cooperative in our efforts. In a total cost of these projects of a little over $1,800,000, they have participated to the extent of $1,095,000 in the financing of the costs of construction.

With that, I would like to skip over our history. This gives you an idea of what we are doing.

Currently, community funds that have been raised are committeed in these projects. So, now we face the situation where new moneys or new credit must be obtained to be able to continue a vigorous industrial development program.

There is growing evidence in our region too that our banks are rapidly approaching the limits of bood banking practice in the making of industrial real estate loans.

Now, in the bill, perhaps the section that seems to us of greatest importance in our program, is section 14 concerning rapid tax writeoffs. We feel that in making these available to all new industries and not just defense industries, industry will be provided with an advantage in locating in our area which will help offset some of the geographical and topographical disadvantages that we face in competition with other areas seeking new industries.

We feel very definitely that this would improve the competitive position of all depressed areas as compared to those which have conditions that are pretty generally good-where natural inducements to industry are perhaps better than they might be in the depressed areas. In connection with this feature, we strongly recommend that the number of years approved for rapid tax writeoff in each instance of a lease-purchase agreement be identical with the tenure terme of the lease.

Our thinking here is that we do not believe that any industry should receive the advantage of this feature in, say, a 5-year period and hold a lease with a purchase option at the end of 15 or 20 years.

Of equal importance to us are the provisions in section 9 referring to assistance to public facilities. In the light of the reduced base of taxation resulting from the decline of the anthracite industry, such assistance would materially help our local governments to undertake to provide public facilities which would make our area more attractive to new industry.

Sections 7 and 8 are also pertinent to our need in that a new source of credit would be available to us. We urge that these provisions be made to specify that loans for construction of industrial facilities shall be limited to supplementing or replacing commercial lending agency participation in the financing of industrial development projects, and, further, that these loans be made only when such participation is not sufficiently available on reasonable terms and when there is also participation by community and private money.

Sections 15 and 16, pertaining to vocational rehabilitation and training and the extension of supplementary unemployment compensation to those undergoing such training, are likewise important to our local situation. These provisions would assist our local schools which have been most cooperative in providing facilities for this purpose.

The procurement provisions of section 11 may prove to be the explicit policy statement needed to channel more Federal contracts into depressed areas.

We of the greater Pottsville area do not seek Federal handouts. We shall, however, appreciate businesslike Federal loan assistance to help up help ourselves. Accordingly, I appreciate, again, Senator,

they may

this opportunity to have expressed these views to you and trust that be of help in the consideration of this legislation. Senator NEELY. They doubtless will be helpful to the committee. We thank you for them.

Mr. FLOOD. Mr. Chairman, I would like the record to show that Mr. O'Hara, executive director of the Pittston City Chamber of Commerce, a community situated equidistant between Wilkes-Barre and Scranton, was and is here and requests permission at this point in the record to insert a statement in support of the bill. And at the same time there is and was present in behalf of the Nanticoke City Industrial Fund its president, Peter Sulinski. Nanticoke is a city a few miles south of here on the Susquehanna River. He likewise at this point in the record would like to insert a statement in support of this legislation.

At the same time, Mr. Chairman, I will submit for the record the names of a group of officials of districts 1, 7, and 9 of the United Mine Workers of America who have been in attendance for the purpose of indicating their support of Mr. Kennedy's statement and of the bill. Their names are as follows:

From District No. 1, of the United Mine Workers of America: Frank Cardona, Leonard Statkewicz, Garfield Lewis, Peter Rutz, Lester Thomas, Harry Welley, and John Coccodrilli.

From District No. 7 of the United Mine Workers of America: Martin Brennan, president, and the following representatives: Pete Flgzik, Con O'Donnell, Joe McCluskey, James Tolerico, and Edward Lazur.

From District No. 9 of the United Mine Workers of America: John Eagan, vice president, and John Reddington, Pete Mahalage, Victor Mareta, and Joe Novadomsky.

And I would also like to include Thomas F. Holleran, vice president, bureau of maintenance and way employees, of Kingston, Pa.; and also Mr. J. M. Crosby, executive secretary of the Greater WilkesBarre Chamber of Commerce.

Mr. FLOOD. I will submit their names and take their statement.
Senator NEELEY. Thank you.

Congressman Flood, have you anything further to say?
Mr. FLOOD. I have nothing further, Senator.

Senator NEELY. Ladies and gentlemen, before reluctantly saying goodbye, please let me sincerely thank you all for the surpassing hospitality you have most graciously extended to me during my first visit to your picturesque city of unlimited charm. To your public officials, the witnesses who have testified before the subcommittee, and the host of courteous people met here today, my gratitude is much greater than my power of expression. Long life and green old age to you all. And last, but not least, a 24-gun salute to the Sterling Hotel for having supplied me a night and a day of comfort, courtesy, and entertainment as delightful as I have ever experienced in any other hotel in the world. When you come to West Virginia or to Washington, please grant me the privilege of at least striving "to do unto you" as you have most magnanimously done to me.

With an affectionate farewell, this hearing is now adjourned. (Whereupon, at 2:05 p. m., the committee adjourned.)

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