the program also available to private nonprofit bodies are presently pending in the Housing and Urban Development Bill of 1965. It would also overlap the proposed HHFA program of grants for sewer, water, and other community facilities, under that bill.

This Agency has basic responsibility within the executive branch for administration of community facilities programs. Any additional Federal assistance for such facilities should be administered through this Agency.

Mr. Chairman, I have some additional comments I would like to add in general, if you care to discuss this particular section. Senator BAYH. Fine.

May I ask a question, since you just touched on section 9?

We certainly don't want to get into a competitive situation in community facilities. But we are faced with the situation where the Farmers Home Administration, for example, can give to a nonprofit corporation or an unincorporated community, however you want to describe it, a loan for water facilities or sewage. Also, as you point cut, you administer certain grant programs for community facilities. We were confronted with a case, and I don't think this is a unique situation, where a sizable portion of the community is destroyed. It doesn't already have these modern facilities and the residents are not going to build back in the original community unless we provide the modern facilities which might be available in a larger area close at hand. We might say, "Well, so what; let them have free access to build where they want."

But, what about the remainder of the town? The businesses, and the tax base, the indebtedness, which is only going to be supported by half the community?

So, I think that it is best to try to get some sort of program; whether you administer it, or whether Farmers Home administers it, I don't care.

Mr. FISCHER. Well, Mr. Chairman, the proposal in the bill would, in effect, establish the type of authority that we have or will be granted under the present housing and urban development_bill. Senator BAYH. This is assuming that this measure passes? Mr. FISCHER. Yes; assuming that it passes.

Senator BAYH. Which I hope it does, but we don't know about that. Mr. FISCHER. But, insofar as our programs are concerned, they are certainly not restricted to large metropolitan areas or large cities. Particularly under the public facilities programs, we deal with many communities under 5,000, many under 1,000 population, so that the problem of a small community or small settlement that may be hit by a disaster would not fall outside the scope of our present responsibilities.

Senator BAYH. Can you deal with an unincorporated area now? Mr. FISCHER. We at this point can deal with public bodies, public agencies. For instance, the county may establish improvement districts outside of any incorporated city.

Senator BAYH. Where you have a situation where the county and the local community are not getting along, then you have a problem, don't you?

Mr. FISCHER. If an area outside of a local community-outside of the city-wants to avail itself of the benefits of the program, there

generally will be State legislation under which a special authority or a special district, involving property owners' participation, can be established.

Now, as I mentioned, under the pending legislation, we would also deal directly with nonprofit associations as well.

Senator BAYH. Thank you very much.

You said you had some independent comments, also.

Mr. FISCHER. I would just like to make a few general comments. I very much concur with the bill's and with the Budget Bureau's concept that States should assume some responsibility for assistance to provide relief to homeowners. The Budget Bureau proposal has the additional desirable feature of encouraging States to take measures to minimize future disaster losses by means of flood plain zoning and other necessary controls. This is something that we found extremely important in connection with the Alaska earthquake, where. by makeshift means, measures had to be taken to prevent the reconstruction of improvements in areas that were very obviously subject to further sliding and other earthquake-related damage.

And it would also, as I mentioned earlier, provide Federal-State aid to all affected property owners, regardless of the size of their equity and debt, which we think is quite an important feature.

Also, a comment was made in other testimony about Senate bill 408, which would authorize an HHFA study of an effective system of insurance or other means to protect against financial losses from floods, earthquakes, and other disasters. We certainly stand ready to undertake that kind of a study to explore further means of providing relief measures. There may be some important complementary provisions that could be provided to make the Budget Bureau's proposed program operable, and also to support some of the proposals in your particular bill.

Senator BAYH. Thank you very much. I apologize for interrupting your statement from time to time, but it seemed to work out very well, and to keep the record contiguous, so to speak.

Mr. FISCHER. Your comments were very germane, Mr. Chairman. Senator BAYI. And your answers were very specific and helpful, and I would like to thank you and the gentleman with you, and also thank all those down at HHFA who have helped in the consultations necessary before we put the bill together.

You have been extremely helpful, and I hope we can continue to call on your information and experience as we proceed.

Mr. FISCHER. Thank you, Mr. Chairman. We will be glad to assist in any way possible.

Senator BAYH. Thank you very much.

Our next witness is a gentleman who has come a long way to testify this morning, Mr. Woody Caton, the sheriff of Elkhart County, Ind. Sheriff, if you would join us, we would be extremely honored. Having had a chance to tour the tornado area, all of the tornado area, and the specific area in which you are the law enforcement officer, and having heard firsthand testimony on the part of the victims, and of the gratitude that they have for the extreme effort that you made, an effort which, because of the particular nature of this tornado coming in a sort of a double whammy type destruction, which subjected you

and your assistants to possible further tornado damage when the second tornado came through I think that the entire State-in fact, all of us-would like to go on record as commending you publicly once again, in addition to the many tributes that have already been paid to you, for your quick action, which kept the terrible disaster from being even worse.

STATEMENT OF WOODY L. CATON, SHERIFF, ELKHART COUNTY, IND.

Mr. CATON. Thank you, Senator Bayh.

I would like to say that I do have some pictures, if you would be interested.

I also would like to read a prepared statement, Mr. Chairman.

I should first like to say that it is an honor and a privilege to be asked to speak with you on behalf of the residents of Elkhart County. I am certain that the people in the stricken areas will appreciate the relief provided in the bill now under consideration. The appreciation will, however, necessarily be dimmed by the memories of the tragic hours which created the subject of this legislation.

I shall attempt to tell you about these events in Elkhart County, although, in my opinion, no person can adequately describe the suffering and devastation brought by a natural disaster; about the response and assistance immediately after the disaster; and about the lingering problems attendant to it.

April 11, 1965, Palm Sunday, was a beautiful day in Elkhart County. The temperatures were pleasant, neither too warm, nor too cool. There were intermittent showers, and the other niceties of an early spring day.

About 6:30 p.m., I heard on the police radio that a tornado had struck the Midway Trailer Court, which is on U.S. 33, between Goshen and Elkhart. When I arrived there, a few minutes after, I found twisted masses of steel and wood which had been homes. Throughout the area, which is about one-quarter mile square, the injured and dead were lying in and under the debris. We worked with all speed to remove the injured and get them to safety, and help.

As we worked, there appeared a massive black cloud to the west of us. It appeared to be bearing down on us. Workers began to flee the area, and seek whatever cover there was left available. We then saw that this tornado was passing northwest of us.

As many of us as could be spared raced to the area, and found indescribable conditions in an area which we knew had been residential. Those of the injured who were able to walk were staggering toward the emergency vehicles, bleeding and near hysteria. Throughout the rubble, the more seriously injured and dead lay, waiting for muchneeded assistance. Again, injured were removed as speedily as possible.

This covered a 25-square-block area, and there were over 300 homes that were leveled in this one area.

By this time, it was apparent that all normal public utilities, electric, gas, and telephone, had been so severely damaged that they were inoperative. Communications became an immediate problem for not only the loved ones who worried at their home about a friend or rela

tive in the stricken area, but also for the hospitals, where supplies for the injured grew short. Police radios provided emergency service, where the need existed.

The staggering number of injured glutted our local hospitals, and only the more severely injured people were admitted. If emergency treatment could suffice, the person was treated, and released. The Goshen General Hospital became so crowded that they used a dormitory of the adjacent Goshen College for the injured. The Elkhart General Hospital strained its facility, and accommodated the injured in the building.

As we later learned, the warnings issued by the Weather Bureau, and passed along by us, had been broadcast over the commercial radio and television stations in our area, and had provided a much needed margin of safety for many people in the areas which were hit. Most who had heard had heeded the warning, and taken refuge in the basements of their homes. Had these not been faithfully broadcast, the number of dead and injured would have far exceeded the staggering toll taken, which was 49 dead and hundreds injured.

I might add here that there were over 600 homes totally destroyed throughout the country.

A second look at the devastated areas, after the injured had been removed, revealed twisted bodies and frames of vehicles which had belonged to the victims. None of the vehicles could be used again. Food stuff which had been secure in the refrigerators, and freezers of the homes, lay scattered about the entire area, widely separated from the appliances, now almost unidentifiable. Open waste disposal systems seemed everywhere, and the immediate need for action to prevent rodents and disease from investing the area was apparent.

In the paths of the tornadoes was complete destruction, completely across our county. Anybody whose homes or property were in the paths lost not only the structures but also all his personal effects and transportation. Needless to say, this meant many, many homeless families, in dire need of the barest of necessities such as food and clothing.

After the injured and dead were removed, the protection of the few shreds of usable property in the paths became most important. The National Guard was activated, and established traffic control, and guard stations to prevent looting. Despite this, there were some reports of looting, and these, to date, resulted in one conviction.

Primarily, immediate relief was provided through local citizens, who donated food, clothes, and housing facilities for use of the victims. Kitchens at the service and civic clubs were opened, as were those of the volunteer fire stations. Thousands of meals were served to the victims of the disaster, and the volunteer workers.

Undoubtedly, the largest boost in morale and spirits came when the area was visited by President Johnson and his party. From this point on, the number of volunteered items increased, and cleanup operations were accelerated.

To attempt to assess and describe the loss to the public, I should like to say that people from every walk of life were affected directly through loss of life, limb, or property. Business in the county was at a standstill for almost 12 days.

Most acutely affected was the farmer. While the man who works for someone else, or had even a store, or small business damaged, may have lost his home, all personal belongings, and face a bleak future, his source of income is basically still available to him. The farmer, on the other hand, has lost not only the same things as the others, but has also lost his implements, livestock, storage facilities, and the use of the land from which he derives his income.

Most critical of the resources lost by the farmer was time. His land could not be tilled, or his already sprouting crops were damaged or lost. These are not simply replaced, because they must be grown in time, or the season is over, and there are no crops. Therefore, the farmer has lost his potential yearly income. This could deal a crippling blow, not only to the individual, but also the economy of an agrarian county.

Naturally, in the wake of such total devastation, economic pressures are applied to anyone who suffered loss. Even though insurance coverage was a factor, it could usually only satisfy mortgages already existing, or pay partly for damaged or lost personal property. Roughly half of the people involved were not insured, and are left to bear the financial load alone. Both of these considerations can pose a serious threat to economic recovery in the stricken areas.

Our experience in Elkhart County leads us to conclude, as have the Senators from Indiana and other disaster-ridden States, that there is an acute need for Federal aid in the event of natural disasters.

An incident which points up the need for adjusted loan policies involves Leonard Spigutz, who is the owner of the Midway Trailer Park, which was heavily damaged by the tornado. When Mr. Spigutz applied for Federal assistance for repair of his facility, he was advised that his credit status was too good for him to qualify for a loan at 3 percent. The result was that he was required to secure the needed funds at a 6-percent rate, thus increasing his costs, and decreasing his ability to successfully and completely recover from the damage foisted on him by a natural disaster.

I believe that the warning system which was used in this incident was functional and did, in fact, save many lives. I feel, however, that a better and faster condition could be achieved by having a radar installation at the South Bend Airport, by installation of a radar unit here, storm warnings for northern Indiana and southern Michigan could be pinpointed by an early warning to local police and citizens in event of severe weather conditions.

In conclusion, I would like to say that our experiences in the past weeks have made us keenly aware of the pending legislation. I have studied the copy of Senate bill 1861, which was provided to me, and feel that the provisions of it meet needs with answers and actions.

I should like to thank you for your kind attention, and for allowing me to speak with you. If I can be of help to you in any way, only let me know, and I will answer any questions, if you desire, Senator.

Senator BAYH. Thank you, Sheriff. Your description of the scene of the tragedy immediately following its occurrence, of course, is very touching.

You might, if you would, have Mr. Spigutz contact us. If you recall the testimony from the Small Business Administration indicated that this was not their policy, that perhaps we can still provide some relief