Bernard Boutin came to Washington as Deputy Administrator of the General Services Administration during the beginning of the Kennedy administration, and so distinguished himself that he was made GSA Administrator after a year had passed. As Administrator of this multibillion dollar organization, he performed so superbly that he was soon regarded as the ablest Administrator in General Services Administration history.

Administrator Boutin left the General Services Administration to enter private industry as executive vice president of the National Association of Home Builders. In that capacity, Mr. Chairman, he testified before this committee regarding housing legislation. At President Johnson's urging he left his post at NAHB to provide administrative expertise to the war on poverty where he operated as Deputy Administrator of the Office of Economic Opportunity.

Mr. Chairman, in going over the many sterling qualities which Bernard Boutin will bring to this new post, it is important to mention that the Government will be getting two good workers for the price of one. Alice Boutin, the new Administrator's wife, I am certain will continue as her husband's gracious partner in the days to come. Together with their 10 children, the Boutin family will continue to see to it that the Administrator's job will be of the highest order.

I am hopeful that the committee will see fit to act favorably upon this nomination at the earliest possible time. Thank you, Mr. Chairman.

The CHAIRMAN. Senator, you probably recall that some years ago we used to hear the expression, "Minister Plenipotentiary without portfolio." I am sure that when you and Senator Cotton agree on a man, he is going to be a good head of a lending agency. Unfortunately, now it is without any money. But we hope to give him some money before too long.

Senator MCINTYRE. Mr. Chairman, Senator Cotton and I agree on a number of issues. I am delighted to see him here today with the other members of the New Hampshire delegation in support of this very fine nomination.

The CHAIRMAN. We will be pleased to hear from our colleague, Senator Cotton.

STATEMENT OF NORRIS COTTON, U.S. SENATOR FROM THE STATE OF NEW HAMPSHIRE

Senator COTTON. Mr. Chairman, members of the committee, I deem it a privilege to join in urging the confirmation of the Honorable Bernard L. Boutin as Administrator of the Small Business Administration. Mr. Boutin is a distinguished citizen of New Hampshire. He was a highly successful businessman in the city of Laconia, and served as its mayor. He was his party's candidate for Governor of the State. Named Administrator of the General Services Administration by President Kennedy, he rendered able service. On several occasions he came before the Subcommittee of Appropriations on which I served, and I have never known an Administrator of General Services so well grounded in the details of that large and complicated organization.

I often marveled at the questions he was able to answer without referring to his assistants and bureau heads. He has more recently served as Deputy Director of the Office of Economic Opportunity.

Mr. Chairman, every responsibility Mr. Boutin has ever assumed, he has discharged with marked ability. He is highly esteemed by all the people of the State I represent. His integrity is above reproach. He is most fair and considerate in dealing with all those interests are involved in matters over which he has jurisdiction. He is cooperative and helpful to Members of the Congress regardless of party.

Off the record.

(Off the record.)

Senator COTTON. I trust this committee will report favorably and that the Senate will confirm his nomination promptly.

The CHAIRMAN. Now we have with us I believe two of our distinguished House colleagues, Congressman Cleveland and Congressman Huot. Will they come up to the witness table?

STATEMENT OF J. OLIVA HUOT, U.S. CONGRESSMAN FROM THE FIRST CONGRESSIONAL DISTRICT OF THE STATE OF NEW HAMPSHIRE

Mr. Huoт. Mr. Chairman, I am Congressman Huot from the First District of New Hampshire. I first want to thank this committee for the privilege of saying a few words about my distinguished friend, Bernard L. Boutin. By this time, from the testimony of Senator Cotton and Senator McIntyre, Mr. Boutin's qualifications should be well known to the Congress. He distinguished himself in the administration of our late President, John F. Kennedy as Administrator of General Services.

As executive vice president of the National Association of Home Builders, he labored for the passage of the Housing Act of 1965. Most recently, as Deputy Director of the Office of Economic Opportunity, he has lent his great administrative talents to the problems of the poor.

For the position of Administrator of the Small Business Administration, we must, however, add one additional and important qualification. Bernard's appreciation of the problems of small businessmen comes not only from his association with them but also from the days before he distinguished himself in Government with the operating of an insurance and real estate business. I might add that Bernard managed that business with the same skill and competence that he has shown in his more recent undertakings.

As a matter of fact, Mr. Chairman, the only inclination Bernard has shown contrary to the interests of small business is that he has a noticeable aversion to small families. He is the father of 10 children. In closing, Mr. Chairman, I can only tell this great committee, as one who has known Bernard for many years, and had the difficult task of succeeding him as mayor of the city of Laconia, N.H., that Bernard's speedy confirmation as head of the Small Business Administration will make the many months that we have waited for the filling of this position well worthwhile.

Thank you, Mr. Chairman.

The CHAIRMAN. We will hear your colleague now.

STATEMENT OF JAMES C. CLEVELAND, U.S. CONGRESSMAN FROM THE SECOND CONGRESSIONAL DISTRICT OF THE STATE OF NEW HAMPSHIRE

Mr. CLEVELAND. I am Congressman Cleveland from the Second Congressional District of New Hampshire. If I could speak off the record for just a moment.

(Off the record.)

Mr. CLEVELAND. On the record.

Mr. Chairman, the eloquent remarks of Senator Cotton and Senator McIntyre, and my colleague Congressman Huot, really need little amplification by me. But I will say this, that Bernard Boutin enjoys a splendid reputation in New Hampshire. On many occasions he has shown a bipartisan approach to problems that has won him the esteem of many Republicans, as well as Democrats. His ability here in Washington is something that you all know about and it needs no further word from me in support.

But I did want this committee to know that this is an appointment that rings true and well in the State of New Hampshire where Bernard Boutin is highly esteemed by many citizens.

Thank you very much.

The CHAIRMAN. Are there any questions?

Senator SPARKMAN. Mr. Chairman, I would like to ask just one question to the group as a whole. You have given very fine testimony. Reference has been made to the fact that this position has been vacant for quite a long time. I am sure you must be aware that SBA has suffered terribly in the interim. Am I to assume that each of you believes strongly in a strong Small Business Administration as an independent agency.

Senator MCINTYRE. Senator Sparkman, I am completely and wholeheartedly for the strength and independence of the Small Business Administration and hope that under Bernie Boutin's leadership it will reach its full potential as a source of assistance for the small businesses of New Hampshire and all America.

Senator COTTON. And I will say to my colleague and friend that I happened to serve on the Small Business Committee of the Senate. I am thoroughly in accord with what my colleague just said. And I feel that Bernard Boutin is exactly the type of man to promote and elevate this agency to the place that it needs to occupy in our society and in our country.

Mr. HuoT. Senator Sparkman, I concur wholeheartedly with Senator Cotton and Senator McIntyre and agree completely with them that under the leadership of our Mr. Boutin that the agency will certainly be worthwhile in maintaining its position.

Mr. CLEVELAND. Mr. Chairman, once again it is a happy occasion for me to join in a unanimous position with the New Hampshire delegation. I want you to know in all candor this isn't always the case but today it certainly is.

The CHAIRMAN. This concludes the testimonials from the House and Senate Members. The biography shows that Mr. Boutin has had a wide experience both in Government and private business: Real estate business, private business, home building business, insurance business, and in Government with the General Services Administration and the Office of Economic Opportunity. Undoubtedly you brought us a well qualified man.

I will ask Mr. Boutin to come up and see if he agrees with his

sponsors.

The Senator from Maine wants to ask a question.

Senator MUSKIE. I don't have a question but I would like to say I have to go back to another hearing. So I would just like to take a few moments to express my appreciation of the qualifications of Mr. Boutin.

We are neighbors. I heartily endorse something that Congressman Cleveland said. It isn't customary for the two parties to unite so enthusiastically as they have this morning in northern New England. I have known Mr. Boutin, first of all, as a comrade in arms in the ranks of the Democratic Party and those ranks are very thin in my part of the country.

And he is a very effective spokesman in that role. I have also known him as Administrator of General Services Administration, as a member of the Government Operations Committee which has something to do with this, and I want to say how thoroughly I appreciate his outstanding performance in that responsibility. And I know that he can do this job, that he comes from the ranks of small business and will have the proper appreciation of the problems of that segment of our society.

And so I can reassure the distinguished Senator from Alabama on that subject. So I did want to take a few minutes to come up here to thoroughly endorse this appointment. I had personal associations which prompted me to appreciate Mr. Boutin's personal qualities. His performance I think in public office has been beyond reproach. So to the atmosphere which has been generated by the bipartisan party in New Hampshire this morning I would like to add my note of approval.

I would also like to take just a second to express my appreciation of another appointment which I understand will come before the committee later this morning, Don Hummel, from Tucson, Ariz., nominated to be Assistant Secretary of HUD. I have had long associations with Mr. Hummel in the Advisory Commisson on Intergovernmental Relations and I simply want to heartily endorse that appointment as well.

Thank you, Mr. Chairman.

The CHAIRMAN. We thank you, Senator.

STATEMENT OF BERNARD L. BOUTIN, OF NEW HAMPSHIRE, NOMINEE TO BE ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION

Mr. BOUTIN. Thank you, Senator.

The CHAIRMAN. Are there any questions to be addressed to Mr. Boutin.

Senator PROXMIRE. I have some questions, Mr. Chairman.
The CHAIRMAN. Very good.

Senator PROXMIRE. Of course, Senator Sparkman may have others. Senator SPARKMAN. As chairman of the Small Business Subcommittee, you go right ahead.

Senator PROXMIRE. I was interested to read in the newspaper about your appointment, Mr. Boutin. I didn't know you were going to be appointed until I read that. It was an interesting appointment.

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The nomination on the basis of the testimony by the two Senators from New Hampshire and the two Congressmen certainly comes with warm approval from men who knew you well and know your background.

You were Administrator of GSA until the fall of 1964.

Mr. BOUTIN. Until November 30 of 1964, Senator. That is correct. Senator PROXMIRE. And then you left to become executive vice president of the National Association of Home Builders.

Mr. BOUTIN. That is correct. From the 1st of December 1964 until the 8th, I believe, of October of 1965.

Senator PROXMIRE. Now, Senator McIntyre pointed out that you were an outstanding administrator in GSA widely praised and I noticed that you received awards. Why did you leave GSA?

Mr. BOUTIN. Well, for two reasons, Senator. No. 1, I had served as Administrator for 3 years, as Deputy Administrator prior to that for nearly a year. With 10 children, with one in college, another one going to college, there was a need for additional income to finance my family. And No. 2, in one agency for 4 years I felt that it was time for someone else to undertake that responsibility. I had been the appointee of a different President, of the President in office at that time. I have always felt very strongly that a President should have wide latitude in making his own appointments.

President Johnson then, on his own, in October of 1965 called me over to the White House and asked me to take this responsibility at OEO, which I have enjoyed, and now has asked me to undertake still another responsibility.

Senator PROXMIRE. So then you left the National Association of Home Owners after 11 months last October to go to the OEO? Mr. BOUTIN. That is correct, sir.

Senator PROXMIRE. You did that at a sacrifice.

Mr. BOUTIN. I did, indeed.

Senator PROXMIRE. And you have served there for about 5 months and now you are coming to SBA?

Mr. BOUTIN. I have served there for a little over 7 months. Senator PROXMIRE. Seven months. I beg your pardon. Well, the reason I have gone into this is because I share the view that Senator Sparkman expressed earlier that SBA has been in serious trouble. I know of no Government agency that had greater difficulty in getting the funds in the last 10 years. In 8 of those 10 years they have been interrupted and have been unable to make loans to small business. As you know, since last October they have been unable to even process loans till recently. Congress has been deeply concerned about this. We have passed two bills within the last few weeks to try to solve this situation. One to preserve the integrity of the regular business loan program, by separating it from the disaster loans, and secondly the participation bill which was a controversial bill and a hard one to get through, but which should cut the budgetary limitation that was strangling SBA. With your great ability, which has been attested by outstanding Members of the Congress, I do hope that you can give your very best in giving this agency the kind of real force and representation they need, with the Budget Bureau and the administration, to get the kind of money they just must have. Small business has suffered seriously with the credit shortage. Tight money has really hit them very hard. The SBA is the only agency in the Government set up expressly and explicity to help small