In our country today, we are faced with an exploding population, yet each week the number of jobs available decreases by about 40,000. What occurred in the hills of eastern Kentucky may portend what could happen elsewhere. The coal workers of eastern Kentucky are men who were callously rejected by industry. The depression of the thirties destroyed the prosperity of eastern Kentucky. World War II's needs for coal revived the mines for a short time. After the war, however, the relentless march of automation began trampling the bodies and very life spirit of the men who had once earned their livelihood in the mines.

These spiritless men were left to subsist on Government dole and cope with their personal despair as best they could.

Today, the trend in industry is toward more and more automation. This cannot help but result in still greater unemployment and if these workers, displaced by machines, are not kept within the fold of society, they will become explosive kegs of human dynamite. We must begin now to think in terms of the "whole" man and his role in society. We cannot just give him bread and say, "Leave us alone."

I feel Appalachia is the first great step toward solving the root of a problem now spreading its tentacles underground, beneath the firm foundation of the U.S. industrial might.

We must meet the challange of the new frontier of social justice. Able-bodied men should not wallow in idleness surrounded by an abundance of unperformed tasks.

We can learn from rehabilitating the men of Appalachia and this region. We can learn so that we can avoid similar pitfalls which will occur elsewhere as the industrial revolution of automation marches inexorably forward. I believe that Appalachia is well planned and that its success is assured because it is firmly based upon responsible cooperation between private industry and the Government, and both parties do care-do care what happens to these souls and to the future of our entire Nation.

I know that this committee when it reports the Appalachian bill will have given it every thorough consideration, and I am confident that whatever bill comes out of this committee will be a sound piece of legislation.

It has been a pleasure to have the opportunity of addressing you today.

Mr. JONES. Thank you, Mr. Watts. We will now hear from Congressman Stubblefield from Kentucky.

STATEMENT OF HON. FRANK A. STUBBLEFIELD, A REPRESENTA

TIVE IN CONGRESS FROM THE STATE OF KENTUCKY

Mr. STUBBLEFIELD. Mr. Chairman, bounded by mountains which appear strong, but keep it chained in weakness, the Appalachian regionwhich includes 11 States and stretches from northern Alabama across eastern Kentucky to Pennsylvania—is a vast region in which one of the great war efforts against poverty is to be waged.

The President has declared all-out war on poverty in our advancement to "the Great Society." Let us begin by focusing needed attention and help on the long-neglected human beings of the 355 counties included in Appalachia that they may be restored to a decent, respectable place in society and share our Nation's economic wealth.

All of us are aware that no part of our Nation can boast of its economic wealth and material achievements as long as this blight remains with us an eyesore leaving the region's 15 million inhabitants destitute and without hope. It is little wonder that they feel devitalized when one realizes that the Federal assistance poured into the area has been only a "holding" operation at best. In order to solve the problem, we need to get at its base-not just treat its outward manifestations. Mainly, because this proposed legislation attacks the causes, rather than the symptoms, of poverty, it has such a great potential for the stimulation of self-help and industrial growth.

It is my firm belief that the enactment of the bill now being considered will build the right kind of economic foundation. In fact, one of the more important reasons that people from all levels of our economic strata, so to speak, are rallying behind this legislation-including our businessmen-is the realization that private enterprise will eventually be the employer in the Appalachian area. The plan before this committee is one that provides creation of an economic base on which private enterprise can build. It is impossible to overemphasize the goal of this program-all is aimed at bringing to this region and its people full benefits from full participation in their Nation's society and economy. This kind of activity makes one proud to be a part of it all and pushes him on to great individual achievements on his own, once he has been provided the necessary means of helping himself.

Officials from Kentucky-both last year and again this week-have appeared before this committee to spell out the various needs in our State which can be alleviated-and in several cases entirely wiped out-by this development action which is so desperately needed. They have explained how Kentucky has already made use of many of the devices of the total program now being considered by this committee. The tragedy is that Kentucky, like many other States included in the Appalachian region, has already employed the maximum limits of her resources. Yes, Kentucky recognizes its need for Federal help and humbly asks for it while, at the same time, pledges her fullest efforts to continue to justify the help extended.

The Appalachian regional program is, in its simplest terms, a strategic design for the conduct of all programs and plans within this region that they may meet most effectively the developmental, rather than the general, purposes with which they are concerned. For example, one of the more important features of this program is to provide for the construction of highways. These roads will give access to areas and create development potential where commerce and communication have been impossible in the past for the very reason that there was no way into these areas. Not only will this benefit the residents. and contribute to the industrial potential, but an adequate road system will provide recreational potential and attract tourists to the area. Kentucky now operates a number of vacation parks in the Appalachian area. These parks give recreational opportunities to citizens of the area. In addition, they are the nucleus of the tourist industry which is the main income in some of the localities where they are located. Only as commerce with America comes to the Appalachian region will it come to eastern Kentucky and the rest of our State. This is only one of the reasons that Kentucky is for the entire Appalachian regional developmental program; it is realized that the economic activities of

all areas of the region are so interrelated as to require the regional approach if the desired results are to be achieved.

Not only are the proposed programs, spelled out in this legislation, tailored to meet the special needs of transportation, but in such matters as mining area restoration, stream pollution abatement, and improved exploitation of natural resources, the regional development concept is the key to success of the undertakings. Development has been the keynote of both State government policy and community life in our Commonwealth. All of our State programs education, health, highway building, water resources development-have been geared to those objectives which will help to create in Kentucky the job opportunities and levels of living all our citizens need.

I shall not elaborate on other developmental programs and studies included in this overall plan, for I believe enough has been said in behalf of these special Federal programs which are necessary to spur economic development of this entire region. In approving this legislation, we shall make good on President Johnson's promise to help pull poverty-ridden areas out of the rut of economic deprivation, and remove this eyesore from the Great Society's foundation.

Thank you, Mr. Jones.

Mr. JONES. Thank you, Congressman.

We will now hear from Congressman Stratton of New York.

STATEMENT OF HON. SAMUEL S. STRATTON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK

Mr. STRATTON. Mr. Chairman, I appreciate the opportunity to appear before this committee to urge the inclusion in the so-called Appalachian bill of the amendment offered by the Senator from New York, Mr. Kennedy, making it possible for the Appalachian Commission, in consultation with the Governor of New York State, to consider including in the program some 13 counties in southern and central New York State which geographically and traditionally form a part of the Appalachian region.

I am well aware of the tentative nature of the amendment which the Senator succeeded in including in the bill. I am aware that it does not spell out these 13 counties in words. I am aware that any inclusion of New York counties would require approval of the Governor of New York, and I am aware that in previous years he has turned this proposal down. I am aware that the inclusion of New York counties would also require approval of the members of the Appalachian Commission representing 11 other States. And I am also aware that merely to include these New York counties will not guarantee the extent of the assistance they might receive.

Moreover, Mr. Chairman, I am frank to say that if I had my own way in selecting the particular type of legislation I would prefer to meet some of the needs of the areas in upstate New York which I have the honor to represent in this body, then I would prefer the accelerated public works approach or the Area Redevelopment Administration approach, both of which programs have succeeded very well indeed in my area and have won great favor with the people regardless of party affiliation.

But I am also able to read, Mr. Chairman, and I can see that this bill is going to pass the House and is going to become law. It has behind it not only the support of the Senate but also the very substantial momentum of the administration. I am realistic enough to know that proposed extensions of these other two programs are very much up in the air at the moment. And so, knowing that New York needs help, and wanting to try to provide that help, the wise thing seems to me to be to make an effort to have my State included in the Appalachian bill. I particularly commend Senator Kennedy for having recognized this need and for having successfully added his amendment to this bill. This New York amendment is not just a matter of another area trying to get in on the "gravy train," as some have suggested. Southern New York is traditionally and geographically a part of the Appalachian region. The average income of the 13 counties spelled out in the Senate debate is on par with the income of the Appalachian region as a whole, and is indeed lower than some of the areas already included within the program.

A major share of the funds of this program are designed for road construction. This is something which is desperately needed in the 3 counties in this 13-county area which I have the honor to represent In the central portion of New York State, we need modern highways to provide more ready access to communities which are off the superhighways and are not readily accessible either to airline terminals or railway depots. In fact, our need for modern highways may well be as great or even greater than that of any part of the rest of the Appalachian area.

There is also a substantial need for help in the development of sewer and water projects, both of which are increasingly important in helping a community attract new industry and new residents. No financial assistance is available from the State governments on either score. And there is need, too, for help in flood control projects, as the bill proposes.

There was some initial hesitation in upstate New York, Mr. Chairman, and in the district which I have the honor to represent, over the original announcement that the distinguished junior Senator from New York had succeeded in getting some of our counties added to the Appalachian bill. But after responsible officials became aware of the kind of help this legislation would provide they expressed a very considerable interest in having it available to their communities. I am pleased to report this reaction to the committee, and I am certain that assistance under the program for these counties would be in fullest accord with the objectives of the legislation.

For this reason, Mr. Chairman, I urge that the committee retain the Kennedy amendment. May I conclude by quoting a comment that appeared in the press the other day from Mayor Albert S. Nader of the city of Oneonta, in Otsego County, one of the counties included in the Kennedy amendment:

It is no sin to need help, but to be too proud to accept help when it is freely and genuinely offered is foolish and unpardonable. * * * Where this assistance comes from and what it is called is really of little consequence. I am happy that our Washington legislators have expressed a concern for the welfare of Otsego County and its environs.

Thank you, Mr. Jones.

Mr. JONES. Thank you Congressman Stratton.

Our next witness is Mr. Charles A. Robinson, Jr., representative of the National Rural Electric Cooperative Association, who is not a newcomer to the committee.

STATEMENT OF CHARLES A. ROBINSON, JR., STAFF ENGINEER AND STAFF COUNSEL, NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION

Mr. ROBINSON. Mr. Chairman, my name is Charles Robinson. I am the staff engineer and staff counsel of the National Rural Electric Cooperative Association.

Mr. JONES. Mr. Robinson, will you identify your associate?

Mr. ROBINSON. Yes, sir. If it please the Chair, I would like to introduce and have accompany me at the witness table Mr. Robert Partridge who is the senior legislative representative of our association.

Mr. Chairman, we have a prepared statement which we submitted and I ask that it be made a part of the record and that I be allowed to highlight it orally, thereby conserving the time of the committee which we know is short.

(The statement follows:)

STATEMENT OF CHARLES A. ROBINSON, JR., NATIONAL RURAL ELECTRIC

COOPERATIVE ASSOCIATION

Mr. Chairman and gentlemen of the subcommittee, the National Rural Electric Cooperative Association is the service organization established to provide legislative, management, information, and insurance services to REA-financed rural electric systems. Membership in NRECA, which is entirely voluntary, is held by approximately 92 percent of all REA electric-type borrowers.

The loads of rural electric systems continue to expand. They are, therefore, always searching for possible sources of low-cost wholesale power supply. Some 500 of these systems now purchase all or portions of their wholesale electricity requirements from Federal power systems like TVA and the Bureau of Reclamation. During fiscal year 1963, these systems bought more than 13.8 billion kilowatt-hours from such Federal power agencies for which they paid $68.7 million into the U.S. Treasury.

It is our history of purchasing Federal power and our close association with the self-liquidating type of Federal programs such as REA and multiple-purpose water resource development which leads us to comment on the Appalachia legislation now pending.

As we read S. 3, it would authorize expenditure by the Federal Government of $840 million for highway improvement in the Appalachian States plus an additional $237 million for sewage treatment plants, vocational schools, water resources studies, hospital and health centers, land improvement, timber development, and mining area restoration.

Why, one might ask, in a bill to aid Appalachia, is there no reference to the one natural resource which constitutes Appalachia's largest source of wealth— coal? It almost appears as though there had been, in drafting S. 3, a conscious effort to omit all mention of coal; the one element from which could be derived some dollars to help repay the Federal grants authorized by the legislation.

Of the need and desirability for a Federal program to combat the deplorable conditions under which so many thousands of American citizens exist in the several Appalachian States, there can be no question.

It is our opinion, however, that the subject legislation, though desirable in its objectives, would better serve the public interest if modified to more closely meet the test of self-liquidation which is frequently applied to public works undertakings. In truth, S. 3 completely ignores the most abundant and the most valuable natural resource which the Appalachian area possesses-coal. The bill provides for the spending of Federal funds to build highways, sewage treat