Mr. CUNNINGHAM. You picked out one thing that is an established thing.

Mr. FASCELL. Let's take public housing.

Mr. CUNNINGHAM. Any city in the country is not too far from an FHA office. I am thinking about the future. I am thinking about the ideas of the Federal Government having something to do with mass transportation and all these other new programs. That is what I am thinking of. Many decisions have to be settled in FHA back here, which may bring the officials back here. In Federal Housing, they bypass anybody in Omaha. Once the Federal Agency-well, let me say that I brought in several thousand low-cost Federal Housing units. I am not opposed to these things, but in order to get them, I came back here. We happened to be able to afford to send me back

here.

Mr. FASCELL. I don't know. I saw a list somewhere, and I believe it was during the last appropriation bill on public housing. I saw this list of public housing units. Some of the towns I never heard of before in my life, and they seemed to me they were very small towns.

Mr. CUNNINGHAM. My point is, Mr. Fascell, you know from your own constituents that they are going to be proud, and they may have an agency of this particular department in your district.

Mr. FASCELL. Right.

Mr. CUNNINGHAM. But it is the lower echelon thing that they have trouble there, and what do they do? They come back here to solve it. You have delegations back here all the time, I presume.

Mr. FASCELL. Especially when they are unhappy with the local decision.

Well, we have, on page 2 of the legislation, the statement that Congress further declares that the national policy for the attainment of this purpose shall be to encourage and facilitate the efforts of our urban communities to develop and carry out local programs to meet effectively the needs resulting from urban and suburban and metropolitan growth, I wonder why that language doesn't encompass all

of it.

Mr. CUNNINGHAM. Just from a practical standpoint, I am sure the U.S. Conference of Mayors has probably the same thing in their bylaws, but it never gets down to the people who need it. It is controlled by just a handful. I have nothing against them, you see.

Mr. FASCELL. I understand that. You don't disagree. As I understand it, you have no quarrel with the statistics which indicate the present move is toward large metropolitan areas; that is the population move and that 70 percent of the people of the country will be living in these metropolitan areas.

Mr. CUNNINGHAM. I don't disagree with you. I don't think it would be good for America, but my heart bleeds for these people who say, "let's get rid of this corporate farm, let's get the little family farm on its feet. Let us get away from big mergers. Let us be for the small businessman." It doesn't rhyme that you should also be then for development and more attention given to the big cities at the expense of the smaller ones.

Mr. FASCELL. I don't think that is intent. That is certainly not my intent or the administration's proposal.

Mr. CUNNINGHAM. I am sure their intent is wonderful, but I just say, I have been in this thing and I just think it is not going to work out that way.

Mr. FASCELL. Whether or not the legislation passes or not, you are not going to change the population trends.

Mr. CUNNINGHAM. Oh, I think a lot could be done about that. Mr. FASCELL. You don't mean by legislation, of course.

Mr. CUNNINGHAM. I think if you would give some recognition such as I have suggested here, that the problems of these smaller towns and communities should be recognized, I think you could keep an awful lot of people in those smaller towns and communities. This is where it is healthful, you have no crowded or slum areas and ample housing.

Mr. FASCELL. Are you the leader of the back-to-the-farm movement? Mr. CUNNINGHAM. Frankly, I would sometimes rather go back to the farm myself.

Mr. FASCELL. I am a smalltown boy myself. And so is the chair

man.

That is all I have.

Chairman DAWSON. Mr. Anderson?

Mr. ANDERSON. If I understand your position, Mr. Cunningham, it is that we don't need a Department of Urban Affairs. They are already able to take care of themselves through all the influence they have in such organizations as the conference of mayors, but we do need a department for small towns; is that right?

Mr. CUNNINGHAM. That is right.

Mr. ANDERSON. Is that basically what it is?

Mr. CUNNINGHAM. That is right.

Mr. ANDERSON. I think I understand your position and I want to say I don't agree with it.

That is all I have.

Chairman DAWSON. Did you have some witnesses with you?

Mr. CUNNINGHAM. I have some very capable and competent gentlemen who are with the Bureau of Business and Economic Research at the State University of Iowa.

I would like to first present Mr. Conrad C. Stucky.

STATEMENT OF CONRAD C. STUCKY, BUREAU OF BUSINESS AND ECONOMIC RESEARCH, STATE UNIVERSITY OF IOWA

Mr. STUCKY. I am going to deal with the university's interest in small towns.

One of the most common features of the Nation's landscape is the small town. One may observe small clusters of people living and working together in every major geographical subdivision of the United States. In 1960, there were approximately 17,895 urban places with a population of less than 10,000 people each, and of these, 55 percent had populations of 1,000 or less.

As a research-service organization, the Bureau of Business and economic Research at the State University of Iowa has long been interested in the problems which small towns face. The bureau has undertaken research designed to describe economic conditions existing in small towns, and to help provide solutions to these problems.

The purpose of this paper is to describe the past and present research conducted by the bureau. The emphasis will be on the kinds of research and services undertaken, rather than a presentation of our substantive findings.

Early in the 1930's, personnel of the Bureau were aware of the subtle economic changes that were affecting the small towns of the State and Nation. This awareness was initially manifested by several loosely integrated, long-term research projects supervised by bureau personnel under the auspices of the Iowa State Planning Board in conjunction with the Works Progress Administration. The interest has continued to the present day. In order to provide continuity with present research, some of this earlier research warrants greater elaboration.

The work of the planning board was arbitrarily divided into four parts: Land use, water resources, people, and commerce.

The latter was further subdivided into the following committees: Planning Iowa's transportation system, public service in Iowa, surveys of business and industry, and public works. The Committee on Business and Industry was most directly concerned with the problems of small towns. One of the committee's major objectives was to determine changes in the economic areas served by Iowa communities and to discover the factors which had tended to produce the changes. Paved roads and greater use of the automobile led merchants in the smaller towns to ask whether their communities would disappear as did the pioneer stagecoach village which was not touched by the railroad. It was decided that the future of the small towns could best be determined by examining their functions through trade area

surveys.

City and rural residents in 89 of Iowa's 99 counties were interviewed by planning board enumerators. The purpose of the interviews was to learn where purchases of goods and services were made, the factors which influenced the shopping center choice, and the changes which had occurred in trading habits during the period 1920-34.

Out of those efforts came 89 county reports that outlined the trade area of towns for 8 types of goods. It was concluded that the trade areas survey is fundamental not only for business uses, but also to answer questions concerning the desirability of new schools and other local improvements. Consequently, approximately 70 county reports were issued which outlined the area served by a town for a number of services, including library facilities, churches, clubs and lodges, farm organizations, movies, recreation, hospital, newspapers, et

cetera.

Several three-and-four-county reports were released and two maps were drawn which showed the trade area for groceries and women's clothing for the towns and cities in Iowa.

The following conclusions were published in April 1935:

In summary, it may be stated that the committee has thus far discovered no reason for predicting the disappearance of the small town in Iowa. In rare cases the smallest of these hamlets, if located on a paved highway and near a large city, may disappear from the map, but this statement applies to only a minute fraction of the total number of Iowa towns and villages. There is ample reason to predict, on the other hand, that the Iowa small town will continue to exist and thrive as a service center for its community. Its economic structure will undergo a marked change from that of preautomobile days, but much 71873-61-6

of that change has already occurred. Readymade clothing, shoes, and a long list of similar types of shopping goods have already disappeared very generally from the shelves of smalltown mechants, but this loss has been at least partially offset by the coming of the filling station and garage. These institutions, together with those stores selling groceries, drugs, and building materials should continue to rank with the bank and the buyers of butterfat, poultry, and eggs, and grain as the leading smalltown business institutions. There is reason to believe that these types of businesses should continue to flourish in the small towns of rural Iowa. We may also expect that here and there exceptional merchants will be able to build up extensive shopping-goods areas, in spite of a general trend away from that type of business. Their success, however, will be more largely attributable to their own abilities than to the socioeconomic organization in which they live. There is reason, also, for predicting that the small town may resume much of its old importance as a community center for recreation, education, and religious activities. The committee hopes to establish the importance of these forces and trends in surveys now in progress.

Activity in trade area analysis by the planning bureau was completed by 1936. During the period 1936-40, bureau personnel completed several specific projects of general interest in the State of Iowa.

From 1940 to 1948 the research activity of the university's bureau came to a halt. The present director, C. Woody Thompson, took leave of absence in 1940 to join the Omaha office of the National Resources Planning Board as a senior planning technician. After the outbreak of World War II, all bureau personnel except one became involved in war-related activities.

The next period of service activity for small towns came in the years 1948 through 1952. Professor Thompson returned to the Bureau in 1948 as its director and rebuilt an organization devoted to service for the State of Iowa. Out of the work of those years came trading area reports for 11 southwest Iowa towns-Anita, Atlantic, Audubon, Clarinda, Corning, Dunlap, Harlan, Oakland, Shenandoah, Sidney, and Villisca-for Osage, for Jefferson, and for West Branch. The primary purpose of these surveys was to delimit the boundaries of the open county area served by the towns for various goods and services and to determine the reasons for shopping center choices. The assumption was that the reports would be used by the communities to improve their overall performance as shopping centers.

Payment for the university's services in conducting surveys during this period became increasingly the responsibility of the town being studied. Undoubtedly, this is the factor most responsible for bringing this activity to a halt. Although community leaders would inquire about the possibilities of a survey, invariably those inquiries came to naught. Lack of money to pay for their direct costs was the major stumbling block.

During the years 1953-59, the activities of the Bureau were of a more general nature. The following are the names of a few of the articles released during this period:

"Iowa Income and the Nation's Total Output," by Dick A. Leabo; "A "Balanced' Economy for Iowa-Pros and Cons," by Clark C. Bloom;

"Industrial Growth in Iowa," by Lauren Soth;

"Location of Retail Activity in Iowa, 1939-53," by Clark C. Bloom and Karl A. Scheld d;

"Facts and Illusions in Resource Development," by Berndt L. Kolker and Melvin R. Levin;

"Shifts in Manufacturing Employment Within Iowa Counties 1947-54," by Clifford M. Baumback;

"A Description of the Iowa Research Program Approved by the Small Business Administration," by Clifford M. Baumback.

Bureau staff members were also actively engaged in research sponsored by the Iowa College-Community Research Center in conjunction with the Committee for Economic Development. The ICCRC is an organization of Iowa business executives and farmers who, in association with educators from the State University of Iowa and Iowa State University, have banded together for the purpose of conducting research that is of interest to the people of the State. The following reports have been issued to date:

(1) "Iowa-A State in Social and Economic Transition"; (2) "An Evaluation of Iowa County Government";

(3) "Welfare and Highway Functions of Iowa Counties"; (4) "The Cost of County Government in Three Counties." Interest in trade area analysis was again revived in February 1960. Since that time the Bureau has completed studies for Gladbrook, population 949; and Anamosa, population 4,616; and is currently conducting surveys in Perry, population 6,442; Humboldt, population 4,031; Mount Vernon, population 2,593; Riceville, population 898; Lynnville, population 411; and Iowa Falls, population 5,565.

About two dozen other towns and cities have either requested the Bureau's services or asked for further information concerning surveys.

Each of the present surveys divides into five parts:

(1) A measurement of the total sales in the community for each of 15 commodity groups. Data obtained in this phase eventually will be used to develop average sales norms for each commodity group for towns of similar size, location, and source of income. It will then be possible to estimate the potential sales for various commodity groups for any one town. The town can then measure present sales volumes, compare it to their potential, and determine if corrective action is desirable.

(2) The establishment of the relationships that exist among towns. For instance, we will determine the total amount of goods and services sold in town X to residents of smaller towns, and the total purchases by town X residents in larger cities. This will help us to develop average performance levels for towns with various mixes of goods and services.

(3) A rating of each business establishment on seven categories. General comments and criticisms about the businessmen are also requested. After the ratings have been analyzed, a personal letter is sent to each individual outlining his ratings and the average rating for the entire group. This gives the businessman an opportunity to compare his own image to that of the average for the group. The basic premise is that the attraction of a trading center is dependent on the combined drawing power of every institution located within the boundaries of the shopping center. If consumers are forced to go to another town for one item, they invariably purchase other items while they are there. Therefore, merchants feel that by discovering their individual weaknesses, they can undertake corrective action that could result in an increase in the total economic activity in the town.