such labor standards, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176, 64 Stat. 1267, 5 U.S.C. 133-133z-15), and section 2 of the Act of June 13, 1934, as amended (48 Stat. 948, as amended; 40 U.S.C. 276(c)).

DEFINITION OF APPALACHIAN REGION

SEC. 403. As used in this Act, the term "Appalachian region" or "the region" means that area of the eastern United States consisting of the following counties (including any political subdivision located within such area):

In Alabama, the counties of Bibb, Blount, Calhoun, Chambers, Cherokee, Chilton, Clay, Cleburne, Colbert, Coosa, Cullman, De Kalb, Elmore, Etowah, Fayette, Franklin, Jackson, Jefferson, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, Randolph, Saint Clair, Shelby, Talladega, Tallapoosa, Tuscaloosa, Walker, and Winston;

In Georgia, the counties of Banks, Barrow, Bartow, Carroll, Catoosa, Chattooga, Cherokee, Dade, Dawson, Douglas, Fannin, Floyd, Forsyth, Franklin, Gilmer, Gordon, Gwinnett, Habersham, Hall, Haralson, Heard, Jackson, Lumpkin, Madison, Murray, Paulding, Pickens, Polk, Rabun, Stephens, Towns, Union, Walker, White, and Whitfield;

In Kentucky, the counties of Adair, Bath, Bell, Boyd, Breathitt, Carter, Casey, Clark, Clay, Clinton, Cumberland, Elliott, Estill, Fleming, Floyd, Garrard, Green, Greenup, Harlan, Jackson, Johnson, Knott, Knox, Laurel, Lawrence, Lee, Leslie, Letcher, Lewis, Lincoln, McCreary, Madison, Magoffin, Martin, Menifee, Monroe, Montgomery, Morgan, Owsley, Perry, Pike, Powell, Pulaski, Rockcastle, Rowan, Russell, Wayne, Whitley, and Wolfe;

In Maryland, the counties of Allegany, Garrett, and Washington;

In North Carolina, the counties of Alexander, Allenghany, Ashe, Avery, Buncombe, Burke, Caldwell, Cherokee, Clay, Davie, Forsyth, Graham, Haywood, Henderson, Jackson, McDowell, Macon, Madison, Mitchell, Polk, Rutherford, Stokes, Surry, Swain, Transylvania, Watauga, Wilkes, Yadkin, and Yancey;

In Ohio, the counties of Adams, Athens, Belmont, Brown, Clermont, Gallia, Guernsey, Harrison, Highland, Hocking, Jackson, Jefferson, Lawrence, Meigs, Monroe, Morgan, Muskingum, Noble, Perry, Pike, Ross, Scioto, Vinton, and Washington;

In Pennsylvania, the counties of Allegheny, Armstrong, Beaver, Bedford, Blair, Bradford, Butler, Cambria, Cameron, Carbon, Centre, Clarion, Clearfield, Clinton, Columbia, Crawford, Elk, Erie, Fayette, Forest, Fulton, Greene, Huntingdon, Indiana, Jefferson, Juniata, Lackawanna, Lawrence, Luzerne, Lycoming, McKean, Mercer, Mifflin, Monroe, Montour, Northumberland, Perry, Pike, Potter, Schuylkill, Snyder, Somerset, Sullivan, Susque hanna, Tioga, Union, Venango, Warren, Washington, Wayne, Westmoreland, and Wyoming;

In South Carolina, the counties of Anderson, Cherokee, Greenville, Oconee, Pickens, and Spartanburg;

In Tennessee, the counties of Anderson, Bledsoe, Blount, Bradley, Campbell, Carter, Claiborne, Clay, Cocke, Coffee, Cumberland, De Kalb, Fentress, Franklin, Grainger, Greene, Grundy, Hamblen, Hamilton, Hancock, Hawkins, Jackson, Jefferson, Johnson, Knox, Loudon, McMinn, Macon, Marion, Meigs, Monroe, Morgan, Overton, Pickett, Polk, Putnam Rhea, Roane, Scott, Sequatchie, Seiver, Smith, Sullivan, Unicoi, Union, Van Buren, Warren, Washington, and White;

In Virginia, the counties of Alleghany, Bath, Bland, Botetourt, Buchanan, Carroll, Craig, Dickenson, Floyd, Giles, Grayson, Highland, Lee, Pulaski, Russell, Scott, Smyth, Tazewell, Washington, Wise, and Wythe.

All the counties of West Virginia.

SEVERABILITY

SEC. 404. If any provision of this Act, or the applicability thereof to any person or circumstances, is held invalid, the remainder of this Act, and the application of such provision to other persons or circumstances, shall not be affected thereby.

42-031-65--2

TERMINATION

SEC. 405. This Act shall cease to be in effect on July 1, 1971.

Senator RANDOLPH. A companion measure, H.R. 4, has been presented in the other body by the chairman of the Public Works Committee, George Fallon, of Maryland.

As is known to the members of this committee, and also to the general public, the President of the United States has urged early congressional enactment of this bill. Our Senate majority leader, Mike Mansfield, has also assured that this measure will be given early attention in the Senate of the United States.

I say in the presence of the chief cosponsor of this legislation, Senator John Sherman Cooper, of Kentucky, and to those who are in our audience, that there are approximately 35 Members of the Senate who join in the sponsorship of this legislation. These Members are of both parties, and they represent States throughout the Nation. This is significant, and it is my conviction that it augurs well for early action in the Senate of the United States.

I wish especially this morning to welcome one of the new members to the committee, the Senator from New Mexico, Mr. Montoya, who has had experience in the House of Representatives for many terms, and will be a valuable addition to this committee.

We are appreciative also that Senator Fong, who retains his membership on the committee, is here at the beginning of our hearings today.

There are eight members of the committee who have signified that they will be present for either the opening of the hearings or will come in during the day.

Before I present our first witness, John Sweeney, I desire to make a very brief statement, and I assure you that it will be that.

Now, S. 3 is almost identical with S. 2782, which passed the Senate last year by a vote of 45 to 13. This was in the closing days, as my colleagues recall, of the 88th Congress.

The principal differences between the measure we shall consider in the 89th Congress and the legislation which was acted on favorably in the Senate in the 88th Congress are embodied in these changes:

In section 201, we have added 500 miles to the previous 500 miles in the category of local access roads. I would remind our committee and the members of the press, that the authorized funds for this section are not increased, but we have added 500 miles of local access roads, bringing the total development and access roads to 3,350 miles.

The second difference is in the modification of section 203 for land improvement and erosion control. This is embodied in the bill this year in lieu of the section that was deleted from S. 2782, during consideration in the Senate last year.

The third difference is a modified section 204 which would restrict the proposed timber development organization to nonprofit corporations.

I commend the U.S. Forest Service and the forest industries for their cooperative spirit, in attacking the problems of timber development in this area, and in their joint proposal of this section of the bill as a first step toward meeting some of these problems within the Appalachian region.

We have a panel of forest experts who will, I hope, further clarify this provision during our hearings this morning. This is an important part of the legislation.

I would digress a moment to point to the seeming paradox between the response of our Federal Government to a natural disaster and to the less dramatic but no less real economic disaster of some areas of the Nation. When a natural disaster strikes a tornado or hurricane or flood or earthquake-the Government moves in within a matter of hours.

Yet the economic disasters of widespread and chronic unemployment and lag in economic growth require almost endless study and hearings and debate.

We have a disparity between the rate of economic growth for the Nation as a whole and the Appalachian region. This pending bill, which would authorize $1,077 million, would provide Federal assistance for this region. I think that it will be an important first step to eliminate the disparity between the area and the general economic strength of the Nation.

The Appalachian program, I remind you, is the product of 4 years of study, and exhaustive thought and planning at the local, State, and the Federal levels. It was not conceived in the mind of a bureaucrat-and that would not make it wrong per se-but by the Conference of Appalachian Governors. These were the leaders who sought and received the assistance of the late and great President John Kennedy for the establishment of what has been known as the President's Appalachian Regional Commission.

This Commission presented its report to President Lyndon Johnson early in 1964, and President Johnson has repeatedly urged the enactment of this program. It is one of his first legislative recommendations for 1965.

I think that this bill embodies the hopes, in a sense the dreams, and certainly the aspirations of more than 15 million Americans who live in the Appalachian region. These people have dreams, and these people have visions. We in the Congress can help to bring these aspirations closer to fulfillment by enactment of this legislation. Extraneous considerations, I hope, will not impede the early and affirmative action in the Congress on this measure.

I note the presence of Representative Ken Hechler, of the 4th District of West Virginia. I am grateful, Ken, for your presence, and I know that you will be active in the enactment of this legislation by the House of Representatives.

Our first witness is John Sweeney, chairman of the Federal Development Planning Committee for Appalachia, but before inviting him to the witness table, I believe my distinguished colleague and cosponsor of S. 3, Senator John Sherman Cooper, may desire to make an opening statement.

Senator COOPER. Thank you, Mr. Chairman. I speak as the ranking Republican member on the committee, and I want to say that Senator Randolph has given a very comprehensive survey of the background and the purposes of this bill.

I also want to express my own interest in the early enactment of this legislation, and I want to say that I was glad to join with the

distinguished Senator from West Virginia, Mr. Randolph, and with many others in the Senate, in cosponsoring this bill.

I think it is worthwhile to recall that last year, after comprehensive hearings held under the leadership of Senator Randolph, the bill was reported to the Senate and was passed by the Senate by a majority of those voting on both the Democratic side and the Republican side. I thought that this gave evidence of the national character of the bill, showing that it is in the national interest rather than just the local interest, and I have no doubt that we will see early enactment of this bill this year.

I would like to tell you that my conception of this bill is that it will provide for this area of our country certain prerequisites for development of its resources, along with encouragement for investment. These prerequisites include, as Senator Randolph has indicated, the development of an adequate road system, improvement of the land, assurance of better protection for timber, conservation of water resources, better flood protection, development of local facilities for water and sewage, and the availability of centers for training and education. Finally, I would not fail to mention the provision of essential health facilities throughout the area.

For various reasons, particularly the isolation of its people and communities, the technological changes that have occurred in the chief industry of mining, and the low tax base resulting from the low income level, this great area of the United States has not been able to keep pace with the economic growth of other areas of the Nation. I might say also that long before there was widespread public interest in these matters, the abundance of coal, timber, gas, and oil led to exploitation of these great resources, without full attention to future needs of the region.

I believe that this program will provide the means to bring this area toward the same degree of advancement that other areas of the country have enjoyed in the march of progress. I hope it will be considered in this way, as a national bill, in the national interest, rather than one just in the local interest.

I would not fail to mention also that, for one who lives in this area and has traveled often throughout eastern Kentucky and other parts of the region, this program holds great social hope for the region. I can remember years ago, when I first traveled this area, there was a certain amount of what we might call affluence in the area, but most of the people lived at a similar relatively modest economic level. In the last 15 or 20 years I have noted a change. The affluent have become more affluent, and those at the other end have steadily grown poorer.

Unfortunately, you can see today in that area, unless something like this is done, the possible growth of a very bad social problem which actually might become a class system. For all of these reasons, thinking both of the economic progress of the area and also of its social progress, I feel very strongly that this bill should be enacted.

Senator RANDOLPH. If I may supplement what you said about the conditions within the area, I would remark that in November of 1964, it was my privilege to turn the faucet, as it were, on a complex of a waterworks system for 10 West Virginia communities. These

communities had never had hot and cold running water, and when we turned that faucet, 660 families and small business units had running water for the first time.

I don't want to belabor this point, but I remember a woman 63 years of age who had tears in her eyes as she said, "Senator Randolph, I have never been privileged to take a bath in a bathtub in my life."

These are the conditions that we find within a few miles of the affluent society which may exist in a county seat town, or city in West. Virginia, or Kentucky, or in other sections of the country. This was a program that came about through accelerated public works. hope this program will be continued by the Congress of the United States.

Thank you very much.

Senator Fong, do you have any comment?

Senator FONG. No, Mr. Chairman, I do not have any comment. Coming from a noncontiguous State to Appalachia, I will follow this hearing with very, very deep interest.

Senator RANDOLPH. Thank you very much. Senator Montoya? Senator MONTOYA. I have no comment at this time, Mr. Chairman. Senator RANDOLPH. John Sweeney, will you open the hearing at this time?

STATEMENT OF JOHN L. SWEENEY, CHAIRMAN, FEDERAL DEVELOPMENT PLANNING COMMITTEE FOR APPALACHIA

Mr. SWEENEY. I am John L. Sweeney, Chairman of the Federal Development Planning Committee for Appalachia. That Committee was established by Executive Order No. 11186 of the President on October 25, 1964, and it was charged with the responsibility of carrying on the joint planning effort which had previously marked the relationships between the Appalachian States and the Federal Government.

It is very difficult to follow any description of the Appalachian region such as that just given by Senators Randolph and Cooper, and I won't attempt to do it. I just want to say it is a pleasure for me to be given this opportunity to discuss with you this act, and what we believe are its implications for both the Appalachian region and for the entire Nation.

I think there has been adequately described here this morning the concern which two Presidents have exhibited toward this problem. I think that the facts and statistics which have been gathered over a number of years, and which were presented in the report of the President's Appalachian Commission, are never quite enough to describe the problems which this region faces.

I think it was the President's visit to Appalachia last spring on two occasions that gave him the direct evidence of what the problems are in this region, and what the solutions might possibly be.

The bill before you obviously represents the clear and determined interest of the President to provide the means by which the Appalachian people can begin to move themselves toward the better economic future which they obviously desire.