an addition was built. I talked to Mr. Anderson, superintendent of the plant, and he states that they now have 136 employees, nearly all Indians. They expect to employ more soon. The starting salary now is $1 per hour. It is a busy little factory; everyone comes to work at 8 a. m. Some bring their lunches with them and others eat at the local cafes. They also have some bus service and others drive their own cars to work. "We have about 5,000 Indians living on the Turtle Mountain Indian Reservation. Before the jewel plant started, we had all sorts of trouble. The things were unorganized and nearly all the Indian families were on some type of welfare help either through grants from the Indian agency at Belcourt or through the county welfare program. This was all being done to keep them in existence, but the homelife among the people was getting to be a critical situation. There was nothing to keep the family together and because there was no work in the immediate area, the husband or wife could leave the home at any time. No one had any responsibilities in providing necessities for the home. Many homes were broken up this way, therefore it caused hardships to the children and quite naturally, it did not help the juvenile delinquency problem. "I have personally visited the homes of these people, both before and after their employment at the jewel bearing plant. I find that the homes are now more stable because of self-support and hard work. Although the salaries are not large, planning in the home is fairly good. They manage with what they get. For instance, the families take their children to a show once or twice a week and possibly to some other social gathering once or twice weekly as well. A certain amount of security has now come into the homes. I absolutely think there is less drinking among those who are employed, because they have their jobs to think of and they know they have to get up early to get to them. If, as in most cases, the wife works, the husband has to gather wood and take care of the household while his wife is away for the day. This works out fine. Before, the children were left alone a good deal of the time. Much drinking and dancing were carried on in the homes until all hours of the night. The younger people saw all this and naturally followed the same routine and, as a result, they would be constantly missing school. "I have noticed that since the plant was opened, the homes are in better condition and the people have better furnishings in their homes. This all has a lot to do with juvenile delinquency inasfar as the parents now have taken back the responsibility of their families which, in my estimation, was their biggest problem to begin with. "The Indian people have received too freely from the different welfare agencies, and for this reason they have lost their sense of responsibility. I fully realize that the welfare agencies are doing a fine job in helping those who are in need of their services; but the point is this: When families are receiving assistance, a case worker is sent to their homes to survey their needs, to arrange for any medical program that might be necessary for different members of their families and, in short, to solve all their problems for them. In these cases, they no longer have to think for themselves and that is why I feel that they had lost their sense of responsibility. "After these people become employed in places such as the jewel bearing plant, they have the satisfaction of earning their own money and they learn to manage with what they have. Therefore, they take over the responsibility for their families and create more secure homes. This has proven very helpful in controlling juvenile delinquency in this area. "I have been here over 3 years and have experienced what I am writing. Thank you. "Yours very sincerely, "CLARENCE JOHNSON, "Sheriff of Rolette County, Rolla, N. Dak." There is reason for real encouragement from Sheriff Johnson's observations. A better opportunity and life for Indians, a better break for their children. Bulova deserves credit for its taking a chance and pioneering in bringing industry to the Indians. The Indians on the Turtle Mountain Reservation have proven overwhelmingly what they can and will do when they have the chance. So here is an achievement-a guide as to what can be done on other reservations. Carl Beck, of the Indian Service, is working hard and efficiently on trying to secure other industries for Indian reservations. He and the program deserve the support of all of us in Montana, and particularly in the communities near Indian reservations. Indians and whites alike will benefit greatly from continued development along this line.. (Whereupon, at 1:45 p. m., the subcommittee adjourned, to reconvene Wednesday, March 28, 1956.) AREA REDEVELOPMENT WEDNESDAY, MARCH 28, 1956 UNITED STATES SENATE, COMMITTEE ON LABOR AND PUBLIC WELFARE, Washington, D. C. The subcommittee met, pursuant to notice, at 10:08 a. m. in room P-63, United States Capitol, Senator Paul H. Douglas (chairman) presiding. Present: Senators Douglas and Neely. Also present: Stewart E. McClure, staff director John S. Forsythe, general counsel, Michael Bernstein, professional staff member. Senator DOUGLAS. The subcommittee will come to order. Senator Chavez and Senator Anderson have submitted statements which will be placed in the record at this point. (The statements of Senator Chavez and Senator Anderson follow :) STATEMENT OF SENATOR DENNIS CHAVEZ Mr. Chairman, and members of the committee, both the witnesses from New Mexico and I will be addressing ourselves today to the aims and the specifics of Senate bill 2663. This particular proposal has created more interest in New Mexico than any particular bill in recent months. This interest is sufficient for us to bring before the committee two men whose agencies would be most responsible and concerned with any program like that of S. 2663. With the permission of the chairman and the committee, I would like to make a few remarks as a prelude to the hearings and then, as is congressional custom, step aside for the statements of my colleagues in the Congress from New Mexico. We can then follow with Mr. Fred Barron, who is executive director of the New Mexico Employment Security Commission and Mr. Berl Huffman, who is executive director of the New Mexico Economic Development Commission. By arrangement, Mr. Barron will concern himself with the unemployment situation today with a look back and a projection forward of the State's unemployment trends and possibilities. Mr. Huffman, the managing director of the State agency, the Economic Development Commission, should be able to tell the committee how this official State group might cooperate with the Federal Government on the employment program idea of Senate bill 2663. There is one witness, Mr. Louis Cottam, who is chairman of the Taos County Economic Development Committee. Mr. Cottam has come some 2,000 miles to present the story of a small Rocky Mountain town in these days of full employment. I am extremely pleased that he came, and the committee ought to give him some special recognition in that the expenses of his trip are borne by just freewill donations from the interested people in Taos who wanted to present their story to this subcommittee. I am sure the committee has been subjected to vigorous opposition from those who believe the Federal Government has no particular business in these fields. On the contrary, I think Senator Douglas and members of the committee are to be complimented for trying to build now the framework of a Federal program which might be very, very useful in another year in the not far distant future. The United States of America weathered one severe deperssion. I suppose we could weather another, but we would all want to avoid that if there is any way out. I see in Senate bill 2663 a program, the light of a stronger beacon, through which we might recognize, and ward off, many local whirlwinds which would be only warnings of the engulfing storm to come. The United States rose out of the last depression not through States' action, and not through that of local municipalities, but through a strong Federal direction. I am quite sure the efforts of any State would meander into hopeless and fruitless attempts. I do not believe we have a separated economy any longer. We are all one and too many weak points are a danger to this whole. I must frankly admit that I am not aware of the unemployment situation in all States. I would suggest, however, that if any State in the Union had a county such as we do, wherein unemployment is consistently ranged from 15 percent to over 25 percent, and if it were from a big Eastern State the Federal Government would have heard of it and the administration would have recognized it. We have in one county in New Mexico a current unemployment of 19.3 percent. This is an official figure of the Employment Security Commission. We have another county, Rio Arriba, wherein unemployment is 18 percent; a third Sandoval, wherein unemployment is 15.8 percent, and three more, Guadalupe, Harding, and Taos, with another 12 percent; and a seventh, Colfax, where unemployment is 10.7 percent. Thus, with reference to section 6-a, New Mexico could qualify 7 counties under the 9 percent figure and 10 counties under the 6 percent figure. I would like to suggest to the committee, and you may care to question Mr. Huffman about it when he testifies, some modification of section 7 might be advisable to include State agencies such as our Economic Development Commission. This would permit a tremendous local savings and yet give the Federal Government one official State agency with whom to deal in these matters of local problems. One of the more important sections of the bill is section 11-a, which directs the procuring agencies of the Federal Government to buy from these depressed areas to the maximum practicable extent. For example, the National Defense Establishment could recognize this 19 percent unemployment in San Miguel County and award a contract to the Jayval Manufacturing Co., of Las Vegal, since it would mean a tremendous amount to this town and county. Jayval is a parachute and fabric manufacturer and has employed 350 women on a steady basis until recent months. This one section 11 could mean a payroll of more than 300 people with a resulting reduction of this unemployment and no Federal capital outlay would be required. I have previously written to the chairman that under the standards devised by the Office of Defense Mobilization and the Department of Labor, it would be virtually impossible for States like New Mexico, Arizona, and the other Rocky Mountain States of less than 1 million persons to qualify. The requirement for a depressed labor certification today is a working force of 15,000 persons, exclusive of agriculture. Senator Goldwater can tell you, as I can, aside from the larger cities like Albuquerque, Tucson, and Phoenix, we do not have towns or even counties with that kind of a working force to permit us to meet the minimum qualifications. Yet, I am sure that we are humanitarian enough to realize that an American family is an American family, whether they live at Brockton, Mass., or Taos, N. Mex., and that it is possible for a person to get just so hungry and just so desperate, no matter where he lives. I have asked in the past, as some of the members of the committee will recall, for Mr. Flemming to recognize these sparsely settled States in this criteria. He has always refused to do so on the theory that his list may get too big. I fail to see where the size of the list has anything to do with the need, but perhaps that is an overall part of the expendable philosophy of some of those in the administration today. I am sure it has worked to the advantage of many of the communities in Senator Kennedy's State, as well as those in the big eastern States, but it has constantly discriminated against New Mexico and here is how: If the military has a big procurement, they can set aside a small amount for small business, a small amount for the use of economically depressed areas and leave a remaining amount on open bid to anyone. Well, obviously, we are going to fall into the small business category since our plants always have less than 500 people. This means that we are eligible to compete against one-third of the procurement. We cannot compete against the depressed areas because that is set aside for them and obviously, we could not compete against the truly economical and big industries who might take on these small contracts purely for reasons of their own. I think the program outlined in Senate bill 2663, which would apply uniformly to the 48 States, is the answer for New Mexico. I think we should have a Federal program that would operate through the States as well as through the local communities. But whatever kind of a program it may be, it should treat all alike. And now, in conclusion, I should like to submit for the record of the committee proceedings, the following: First, a letter to me from Dr. Thomas C. Donnelly, president of Highlands University in Las Vegas, and chairman of the New Mexico Economic Development Commission. In it, Dr. Donnelly says the unemployment figures do not begin to tell the story of unemployment in the area and in which he declares the economic conditions are parlayed into the education of the young men and women of the area. Second, a letter from the Las Vegas city school nurse, San Miguel County school nurse, and the Las Vegas city schools' visiting teacher. They volunteer their services to help the committee in any survey desired. Third, a letter from the post commander of the American Legion at Las Vegas endorsing Senate bill 2663. Fourth, a letter from Fred Harris. Mr. Harris picked up fallen pine cones there in the mountains and has turned it into a small Christmas-wreath business. His problem is one of finances. Fifth, a letter from Mr. John C. Rainer, Governor of the Taos Indian Pueblo and chairman of the 18-Pueblo All Pueblo Council, endorsing Senate bill 2663. With this letter is one he wrote to Senator Douglas. I concur with his remarks. Sixth, a letter from the chamber of commerce at Mountainair, N. Mex. This letter recounts the diminishing economy of the area and asserts that businessmen have left their wives in charge of the business houses and gone elsewhere to seek work. Seventh, a letter from the Tucumcari Chamber of Commerce endorsing Senate bill 2663. Eighth, a similar letter from the Albuquerque Chamber of Commerce. And ninth, a letter from the Chamber of Commerce of Santa Rosa, This one may interest the committee in particular in that it reports the average weekly wage is $37.95 and estimates that at least 10 percent of the population of the county is unemployed at any given time of the year. I think, Mr. Chairman, that the New Mexican congressional delegation and our three witnesses from New Mexico might cover other points of interest and of necessity. I offer my pledge of support and vote on the floor of the Senate when the bill is reported by the committee. GALLUP, N. MEX. Senator DENNIS CHAVEZ, Washington, D. C.: New Mexico Commission on Indian Affairs in meeting March 26th voted unanimously favoring S. 2663 for aid to economically depressed area. We urge you support this bill in hearings Thursday and insert our stand in the record. New Mexico Indians need and favor such economic program and should be included therein. NEW MEXICO COMMISSION ON INDIAN AFFAIRS, |