Page images
PDF
EPUB

POST-WAR PLANNING

THURSDAY, FEBRUARY 3, 1944

HOUSE OF REPRESENTATIVES,

COMMITTEE ON PUBLIC BUILDINGS AND GROUNDS,

Washington, D. C. The committee met at 10 a. m., pursuant to adjournment, in caucus room, House Office Building, Hon. Fritz G. Lanham (chairman) presiding.

The CHAIRMAN. The committee will be in order.

STATEMENT OF HON. EARL WARREN, GOVERNOR OF THE STATE OF CALIFORNIA

The CHAIRMAN. The Honorable Earl Warren, Governor of the State of California, has sent a letter and a statement to be incorporated in the hearings. They will be placed in the record at this point.

(The letter is as follows:)

The Honorable FRITZ G. LANHAM,

STATE OF CALIFORNIA,
GOVERNOR'S OFFICE,

Sacramento 14, January 28, 1944.

Chairman, Committee on Public Buildings,

House of Representatives, Washington, D. C.

MY DEAR CONGRESSMAN: In my wire to you of December 27 I told you that I would submit a written statement in response to your invitation to present to the Committee on Public Buildings and Grounds a statement concerning the post-war economic and social problems which will confront the State of California. It is enclosed herewith.

The material has been prepared under the supervision of Alexander R. Heron, director of the State reconstruction and reemployment commission. I wish to urge that the problems of California be given sympathetic consideration by your committee.

With kind personal regards, I am

Sincerely,

(The statement is as follows:)

EARL WARREN, Governor.

SUMMARY

1. The State of California faces problems in the transition from war economy to peace economy which are unique in nature, and greater in magnitude and intensity, than similar problems facing the United States as a whole.

2. The State, counties, and municipalities of California are planning for public works in the post-war period with primary consideration to need for the proposed construction. They are currently planning for the financing of such construction by the accumulation of reserves, as well as by future provision through taxes, bond issues, or grants of Federal aid in accordance with established policy.

3. Where population increases through assignment of war activities has created permanent demands upon the public facilities of the community, beyond the ability

or proper responsibility of that community to provide them, the National Government should participate in the financing of such facilities and expedite their construction as rapidly as materials and manpower can be made available.

4. Neither the State of California nor its counties and municipalities can undertake the financing of any public works program sufficient in size to constitute a major device for relief of mass unemployment.

5. Early determination should be made of Federal policy on the specific question of the use of local public works as a device for the relief of unemployment. If such use of local publie works is made a Federal policy, Federal participation in financing the works must be on a large scale, and will be most effective if carried out through channels similar to those established for the distribution of Federal aid for highways.

6. The entire question of Federal policy as to local public works, and Federal participation in such local public works, as a factor in the transition from war economy to peace economy, will be best conceived if determination has first been made as to the policy of the National Government on other more important phases of the transition; specifically, on plans to provide for orderly liquidation of war industries and industrial plants.

A. REQUESTED PRESENTATION

1. The Governor of California was requested to appear before the Committee on Buildings and Grounds of the House of Representatives on January 26, 1944, with others, to "acquaint it with their views as to the post-war economic and social problems which they believe will confront the United States and their sug gestions for a solution of these problems, particularly as to the function and degree of participation of the National Government in the construction of Federal and local public works."

2. Because of the inability of Governor Warren, of California, to appear before the committee in person, the chairman of the committee, Hon. Fritz G. Lanham, advised Governor Warren that the committee "will be grateful for your written statement and glad to see that it is incorporated in the record of the hearings."

* *

**

B. POST-WAR ECONOMIC AND SOCIAL PROBLEMS

1. No presentation is offered as to the general nature and magnitude of the problems which will confront the United States. Attention is respectfully invited to the unique incidence and magnitude of certain of those problems which will confront the State of California.

2. The share of the war production task which has been assigned to and undertaken by the State of California is entirely disproportionate to its pre-war population and industrial facilities. The result has been a dramatic increase in population, in labor force and employment, and in physical plant.

3. Those unemployed in California prior to the initiation of the defense program have been almost totally absorbed in the defense and war production activities. A large addition to the work force has been made from local sources, including persons younger and older than normally found in the work force, and women not normally seeking employment. The induction of pre-war California residents into the armed forces, however, has withdrawn from the local available work force more than 500,000 men. The work force has also been augmented by in-migration from other States. Many of these in-migrant workers have been accompanied by members of their families who are nonworkers. The total net migration into California from April 1940 to January 1, 1944, is variously estimated at 1,000,000 to 1,400,000 persons.

4. The shift of population to California represented by this in-migration has been supplemented by intrastate movement of population from the rural areas and interior cities. Both the in-migrants and the shifted population of the State are concentrated principally in the San Francisco Bay area, Los Angeles area, and the San Diego area. These three centers contain over two-thirds of California's population. This concentration has created major problems of housing, transportation, public facilities, and public protection. The critical demand for manpower in the war industries has intensified these problems by withdrawing large numbers of workers from the normal activities in the communities. The earnest cooperation of Federal, State, and local governmental agencies, of organized labor, war-production employers, and nonessential employers has mitigated the hardships to some extent. However, the people of California, particularly in the three industrial areas indicated, are working and living under conditions of

stress duplicated in few areas of corresponding size elsewhere in the United States. 5. The demobilization of war industry and related activities will produce displacement of workers in numbers which have been estimated for the United States as a whole. Such estimates on a Nation-wide basis, however, give little indication of the relative magnitude of this displacement in California, because of the concentration of war-production activities as well as military activities in this State.

6. On the basis of preliminary studies, estimates can be made of the number of in-migrants who will elect to remain in California after the termination of the war-production jobs on which they are now employed. Similar estimates can be made of the number of persons abnormally included in the work force who will withdraw from the labor market after the war. The number of prewar California residents now in the armed services who will return to California after discharge can be forecast with reasonable accuracy. The post-war work force available for employment in California after the war, on the basis of these estimates, could exceed the number employed as of April 1940 by more than 60 percent.

7. Major changes in the physical plant located within the State of California have also created problems which must be faced in the post-war period. These changes include the creation of manufacturing plant for shipbuilding, new and expanded plant for aircraft production, totally new plant for basic production of steel and several of the light metals, and the erection of nearly 100,000 units of public emergency housing facilities.

8. California agriculture has been drastically affected by war activity. It has been called upon to expand its production, in certain crops, far beyond its normal production or marketing capacities. At the same time it has suffered a shortage of manpower created or intensified by several distinct factors. Among these must be counted the removal of all the Japanese population, which had been the major source of manpower for certain agricultural crops; the migration of workers from rural areas to the war-production centers; and the normal depletion of manpower by induction into the armed forces. The manpower shortage in agriculture has required drastic action, such as urgent campaigns for the enlistment of school pupils and housewives, and the importation of Mexican farm labor under terms of a special international agreement.

9. Other important commercial and industrial activities have been disrupted, some to the extent of substantial liquidation, but in no important instance does this disruption represent a problem which is unique to California.

C. GENERAL PLANS FOR SOLUTION OF THE PROBLEMS

1. The legislative session of 1943 took action in a number of specific measures in preparation for the post-war period. These measures included a number recommended by the Governor of the State as well as authorization for several important interim studies by committees of the legislature.

2. On the basis of study by a special citizens' committee appointed by Governor Warren, a fiscal program was recommended to and adopted by the legis lature, directed toward the specific conditions of the war period and probable conditions of the post-war period. This program included a substantial reduction in tax rates during the war period, the application of rigid economy to the normal activities of State government, and the impounding of substantial portions of current revenues for postponed public works to be undertaken in the post-war period.

3. Several measures were enacted providing types of assistance to California veterans of World War II, chief of which is the submission to the electorate of an initial bond issue of $30,000,000 to assist such veterans in the purchase of farms and homes. Similar assistance following World War I, in the aggregate of $90,000,000, demonstrated its value.

4. For the general correlation of activities which may be classified as post-war planning, the legislature, upon the recommendation of Governor Warren, created the State reconstruction and reemployment commission. The authority, duties, and organization of this commission are described in chapter 631, Statutes of California, 1943, a copy of which is attached hereto as exhibit A. The commission has been organized and is engaged in the activities set forth in the law. These include programs for public-works activities, for the creation, development, and expansion of industrial trade and service activities, as well as studies of population and of resources of every nature.

5. Trade, industrial, and commercial associations; industrial and commercial corporations; municipal and regional governing bodies; city, county, and regional planning commissions, are devoting effort and funds to consideration of post-war problems, to the extent that manpower can be made available for such studies without interfering with war production and related activities.

D. PARTICIPATION OF THE NATIONAL GOVERNMENT IN THE CONSTRUCTION OF FEDERAL PUBLIC WORKS

1. It is assumed that the construction of Federal public works is primarily a matter of concern to the National Government, with due consideration to the needs, advice, and desires of States and communities, and that accordingly such construction will be executed rather than participated in by the National Government.

E. PARTICIPATION OF THE NATIONAL GOVERNMENT IN THE CONSTRUCTION OF LOCAL PUBLIC WORKS

1. Plans for post-war construction of State public buildings in California are being developed on the basis of needed structures, rather than for the specific purpose of creating employment. Plans and specifications are actually under way for a State building program of approximately $33,000,000. For construction of this program, funds have been earmarked by action of the legislature, but are subject to future legislative action in the form of specific appropriations. In addition, preparation of plans and specifications have been requested for an additional program of approximately $55,000,000, but to date funds for such work have not been authorized by the legislature.

2. By action of the legislature in 1943, an appropriation of $1,500,000 was made available to California counties for the preparation of plans and specifications for highway construction to be executed in the post-war period. A corresponding appropriation of $12,000,000 was made available to the State authorities for the preparation of plans and specifications, and for the acquisition of rights-of-way, for State highway construction estimated at approximately $70,000,000 to be carried out in the post-war period.

3. Public works to be undertaken in the post-war period by the county governments in the State of California are being planned essentially in terms of the needs of facilities and with consideration to the availability of funds. Under the special legislation authorizing such practice, a number of counties are impounding funds from current revenues to create reserves which will partially finance such construction.

4. Plans for post-war construction by the cities in California are proceeding along lines parallel to those described in the foregoing paragraphs for California counties. However, plans of the larger cities include a number of major improvements, such as construction of freeways, expansion of sewage-disposal systems, and similar projects, for which financing must be subsequently provided. In most instances, the local financing of such projects will involve the voting of bond issues.

5. School districts of the State are planning for needed construction and reconstruction, to be financed both by reserves currently in process of accumulation, and by future taxation or bond issues.

6. The performance of the duties assigned to California in the war effort, with the enormous shifts in population required for such activities, has overstrained the public facilities of many California cities. This is particularly true in the three areas of concentration of war production mentioned in paragraph B4.

7. The performance of these duties by California communities has been recognized as a proper contribution to the war effort. However, it has created problems of providing necessary facilities to a degree not common to most communities in the Nation. In one sense, the specific assignment of these wartime duties by the National Government to these California areas carries with it a responsibility of the National Government, comparable to that which exists towards a particular class of the population, such as that selected for military duty.

8. Aside from any consideration of national policy toward the use of local public works as a device for the relief of unemployment, there is both a national interest and a national responsibility in the provision of adequate local facilities in these specially situated communities. Where the concentration of war production has overstrained the public services of the community, and where the consequent concentration of population is likely to remain, there is urgent need

for expansion of public utilities, buildings, and services, such as sewers, streets, schools, hospitals, and health, fire, and police-protection facilities.

9. The reception and retention of hundreds of thousands into the population of the municipalities and the surrounding areas has not increased commensurately the financial ability of these communities to provide the necessary public facilities. The sincere attempt of the National Government to supplement local revenues available for public facilities and services in a number of California communities has been generally inadequate, and has applied chiefly to the current operating expenses of such facilities, particularly with respect to emergency housing areas.

10. Utilities such as water supply, sewage disposal, schools, and roads have in many instances been expanded with Federal assistance to meet the emergency requirements of both industrial and housing projects. Such expansions have been of an emergency nature, both as to location and quality. They have been planned to meet the minimum requirements of wartime conditions. In many places they will not contribute to the permanent needs of the community. Moreover, in congested areas heavy wartime use and lack of adequate maintenance due to shortage of materials and manpower has accelerated the deterioration of public facilities, particularly streets and highways, necessitating major repairs or reconstruction at the earliest possible date.

11. Certain communities in California and elsewhere which must serve a suddenly increased permanent population, diverted to such areas as part of the war program, cannot provide adequate public facilities and services during the years immediately following the war from their own resources alone. It, therefore, seems as logical to consider a part of the cost of such facilities as a national responsibility, as is the acknowledged responsibility for rehabilitation of injured veterans.

12. A program of participation by the National Government in the provision of adequate local public facilities, in the circumstances described in the preceding paragraphs, should be adopted at this time. Such a program should be implemented by careful appraisals of the extent to which these conditions have been created by the war program in the various communities of the Nation.

13. In addition to the responsibility of the Federal Government for participation in meeting the accumulated needs for municipal public works, consideration should also be given to expediting projects that will further develop land and water resources in California to meet the needs of the suddenly expanded population.

14. The total volume of public works which can be completely financed from State and local sources in the post-war period, while impressive in the number of dollars involved, will not be impressive as a factor in providing work in relation to the number available for work.. Such construction would have a minor impact upon mass unemployment of the proportions indicated as possible in paragraph B6 above.

15. If the construction of local public works included those which can be classified as urgently needed, but not within the possibility of complete local financing, the program would be measurably larger but still not a major element in the creation of employment.

16. In the opinion of State, county, and local public officials, adequate planning for public works as an element in the post-war readjustment cannot be made until determination of one primary aspect of Federal policy; namely, whether public works are to be used as a major device for large-scale unemployment relief; and if so, whether public works are to be located primarily on the basis of the location of unemployment, or to be located elsewhere with adequate provision for drawing off surplus population and work force from the areas of major unemployment.

17. It is the unanimous opinion of public officials in California that a combination of the resources of the State, counties, and municipalities will be insufficient to undertake any local public-works program on a scale sufficient to meet a major unemployment crisis. Therefore, if the use of local public works as a device for unemployment relief becomes the policy of the National Government, it will be necessary for the National Government to participate heavily in the financing of such programs.

18. Attention is urgently invited to the necessity for deferring conclusions as to the financial ability of States and municipalities. Preliminary conclusions based upon the financial position of States and municipalities, in terms of aggregate bonded debt, or the ratio of bonded debt to assessed valuation, require careful restudy and analysis. The consolidated statistics for States, or for States and

« PreviousContinue »