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•A 253

PREFATORY NOTE

This series of field hearings, under the title "Developing the West Through Small Business," consists of six parts, as follows: Part 40: Kalispell, Mont., July 24 and 25, 1944.

Part 41: Seattle, Wash., July 26 and 27, 1944.

Part 42: Portland, Oreg., July 28, 1944.

Part 43: San Francisco, Calif., July 31 and August 1, 1944.

Part 44: Los Angeles and San Diego. (Hearings scheduled for Los Angeles on August 2 and 3 and for San Diego on August 4 were canceled, Chairman Murray having been called to Washington by pressure of legislative duties. Statements and papers prepared for submission at these places are incorporated in pt. 44.)

Part 45: Phoenix, Tucson, and Prescott, Ariz., August 7, 8, and 9,

1944.

Witnesses representing Government departments and bureaus during the opening hearings at Kalispell presented for the record various studies and documents which have a basic pertinency to and were reintroduced either in whole or in part at each of the other hearings. Publication of this material has not been repeated in subsequent parts, but references have been made to it at the places where the relationship is apparent.

III

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PROBLEMS OF AMERICAN SMALL BUSINESS

FRIDAY, JULY 28, 1944

UNITED STATES SENATE,

SUBCOMMITTEE ON COMPLAINTS OF THE

SPECIAL COMMITTEE TO STUDY PROBLEMS OF

AMERICAN SMALL BUSINESS,
Portland, Oreg.

The subcommittee met, pursuant to adjournment, at 9:30 a. m., Multnomah Hotel, Portland, Oreg., Senator James E. Murray (chairman) presiding.

Present: Senators Murray and Wherry.

Also present: Senator Cordon, of Oregon; and Congressmen Angell and Ellsworth, of Oregon; W. C. Broadgate, technical consultant, and Scott K. Gray, special counsel.

Senator MURRAY. Gentlemen, the conference will come to order. We have with us today Mayor Earl Riley, of Portland, who will make some opening remarks. Mr. Mayor.

OPENING STATEMENT OF MAYOR EARL RILEY, OF PORTLAND

Mayor RILEY. Senator Murray and gentlemen, my purpose this morning is to extend welcome and greeting to you, and the members of your committee and staff that are accompanying you in the conduct of these hearings, and to say that we are grateful to you and that we appreciate your including Portland in the itinerary of your hearings. That is putting it mildly.

This area prior to the war was principally engaged in the lumber industry, the stock-raising industry, the fishing industry, and grains and cereals. The war has materially depleted our timber stand; the war has brought its tremendous impact to us in the expansion of old industry and the development of new industry. We feel that during the next 2 or 3 years our ports, our cities, and our State are going to be taxed to the maximum. We feel that an additional impact will be brought upon this port because of the expansion of industry and the development of new industry, which is going to be very trying to us in the periods of adjustment. We feel that we have done everything we could possibly do to cooperate with and assist the National Government in this great war effort; and we feel that during the war in the Pacific we are going to be taxed to capacity to meet the challenge that the Government has placed in our laps.

We know that when the war is over, all this material, commodities and men, that are sent out from this coast will have to be returned through these ports; we know that the manufacturing plants we have here at the present time will be crowded to maximum capacity to meet the requirements of government during that period. We

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