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because the definition of these facilities should be made by people with knowledge.

Mr. Chairman, this is the end of my remarks. If there are any questions

Mr. SPENCE. That is the second quorum bell, Doctor, and we have to go to the floor. We can recess for a few minutes.

Mr. WIDNALL. Mr. Chairman, the witness has said that he ended his statement. I actually have no questions for him myself.

I have one request to make in connection with the record, before you close the hearing. I understand he is the last witness. If you have questions you want to ask him, I will come back with you.

Mr. SPENCE. I would just like you to insert in the record, Doctor, the list of diseases that are transmitted by polluted water. Would you do that?

Mr. MATTISON. I shall be glad to, sir.

(The data requested above is as follows:)

1. Amebic dysentery.

2. Bacillary dysentery.

3. Cholera.

4. Leptospirosis.

5. Tularemia.

6. Typhoid and paratyphoid.

7. Undulant fever (brucellosis).

8. Yellow jaundice (infectious hepatitis).

Mr. WIDNALL. Mr. Chairman, I have just one request.

Yesterday, a witness, I think for the first time, particularized a number of towns that he said could not obtain adequate financing for water plants or sewage treatment plants, and I think he named about 24. My request is to enable the Community Facilities Administration to furnish the committee with their record as to whether or not any applications have been filed with them on behalf of these towns, and, if so, when they were filed and what the record is with respect to those applications.

Mr. SPENCE. That may be done.

(The data requested above is as follows:)

HOUSING AND HOME FINANCE AGENCY,
COMMUNITY FACILITIES ADMINISTRATION,
Washington, D.O., May 7, 1959.

Hon. WILLIAM B. WIDNALL,
House of Representatives,

Washington, D.C.

DEAR CONGRESSMAN WIDNALL: In the absence of Commissioner Hazeltine I acknowledge your letter of April 30, 1959, addressed to Administrator Norman P. Mason, Housing and Home Finance Agency. You refer to a statement attributed to one of the witnesses who appeared before your subcommittee hearings on the community facilities bill that 24 towns in Kentucky were unable to obtain financing in the present market for water and sewer facilities.

I have checked my files and find, of the 24 communities referred to by the witness, 3 have made application for public facility loans to help finance public works projects. The enclosed statement reflects the activity of other communities under the program, and where no comment is contained under "Remarks," my records do not reflect that such community has made inquiry, either to our Atlanta office or the Washington office.

If additional information is desired, I will be pleased to communicate with you.

Yours very truly,

PERE F. SEWARD, Acting Commissioner.

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1 Taken from the 1950 census. Towns of Camargo, Flatwoods, Greenville, and Mount Washington not listed in 1950 census, therefore population was taken from 1959 Rand McNally Atlas.

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1,312

563 1,351

929 2,000

953

383

1,466

On Apr. 30, 1958 the Housing and Home Finance Agency furnished
Senator Thruston B. Morton with informative material.

On May 22, 1958 the Housing and Home Finance Agency furnished
Congressman Frank L. Chelf with informative material.

On Nov. 4, 1954 our Atlanta office furnished informative material.
On May 14, 1957 the Housing and Home Finance Agency furnished
Senator John Sherman Cooper with informative material.

1 1950 census.

Mr. SPENCE. I just want to ask you one question: The Hill-Burton Act provides only for grants?

Dr. MATTISON. Yes, sir.

Mr. SPENCE. This would not conflict with the Hill-Burton Act in any respect?

Dr. MATTISON. I am sure it wouldn't, sir.

Mr. SPENCE. The Hill-Burton Act doesn't provide for renovation or extensions of hospitals; it is for construction only, is it not?

Dr. MATTISON. I believe there is some provision for renovation, but that is very rarely used because it is low on the priority list and they never get down that far.

Mr. SPENCE. We thank you very much for your testimony, and I will be glad if you would insert what I have asked you to insert in the record, or give it to the clerk.

Dr. MATTISON. Thank you, very much.

Mr. SPENCE. It has been argued that the bill H.R. 5944 is not needed because our cities and towns can obtain financial aid for needed public works from the private bond market. While this might be true to some extent in the case of general obligations, which are backed by the credit of the city which issues them, it is not true of revenue bonds.

Our local communities, particularly our smaller towns, simply cannot market revenue bonds at a rate they can afford to pay. At the same time they are forced by constitutional limits of various kinds to turn to revenue bonds to finance needed projects. I have asked the American Law Division of the Legislative Reference Service of the Library of Congress for a list of States which impose such limitations. This list follows:

MEMORANDUM TO HON. BRENT SPENCE, FROM AMERICAN LAW DIVISION, THE

LIBRARY OF CONGRESS

States which impose constitutional limitations on municipal expenditures, indebtedness, and tax rates

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Mr. SPENCE. Before we close, I want to ask permission to file some statements, letters, and other things, all of which are pertinent to the hearing, if there is no objection.

(The documents referred to are as follows:)

[Excerpt from "Planning for Public, Works," prepared under the direction of the special assistant to the President for public works planning]

THE NATION'S NEEDS: PRESENT AND FUTURE

Only 20 years ago, Americans were told, on good authority, that their age of expansion was coming to an end. Few expected the extraordinary decade of change through which we have just passed. Forecasts made in the 1930's predicted that our population would never exceed 160 million people and that it would decline after 1975. Our economy was believed to be "mature"; even after World War II, many waited for a depression that never arrived. Now in its place we have a gross national product of over $430 billion, more than 171 million people, and a forecast of over 228 million by 1975.

Since few expected the past 10 years of growth, few prepared for it. Particularly in public works, preparation was inadequate. In almost every category of public works, severe shortages have arisen. Our highways, water and antipollution facilities, hospitals, transit systems, school buildings, and other have fallen, on the average, below minimum acceptable requirements. For State and local governments alone, using 1954 data, conservative estimates reveal that these governments require $204 billion worth of public facilities in the succeeding 10 years. Even then, the Nation's public works program would not be completed; our population growth will continue; it will rise at least 38 percent between the years 1955 and 1975 alone. We can be sure that the rate of public works construction should at least keep pace with this growth. It may even need to exceed it substantially.

These estimates deserve close attention. Essentially, they reveal three demands which spell trouble if public facilities are not expanded efficiently and in orderly fashion.

First, the Nation faces a lost ground demand, representing the accumulated backlog of construction which has been postponed during the past 20 years. In the thirties, most governments lacked the financial resources necessary to keep their public works plants up to date. During most of the 1940's they lacked the materials, equipment, and manpower. Consequently, the rate of construction was low and the number of deferred projects increased steadily. Even today few governments have been able to make sizable reductions in the backlogs. The public works program to meet the lost ground demand alone would cost about $130 billion during the next decade.

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