Senator RANDOLPH. Senator Montoya.

Senator MONTOYA. Could this work not be undertaken by the work of your State planning commission and their staff?

Governor SANDERS. State mining commission?

Senator MONTOYA. Yes.

Governor SANDERS. We don't have a State mining commission in that sense.

Senator MONTOYA. I said "planning."

Governor SANDERS. Planning commission?

Senator MONTOYA. Yes.

Governor SANDERS. I think that some of this work could be undertaken by the planning commission. Now, we have, Senaor, our planning commissions. They are multicounty commissions. They are coordinated with our industry and trade department. These are local self-started, self-initiated programs, and we provide State funds to the same extent that you would be providing Federal funds in this program.

Senator MONTOYA. Yes; I understand that you have this type of commission, presumably patterned after the requirements of the Area Redevelopment Act.

Governor SANDERS. Yes, sir; that is correct.

Senator MONTOYA. We have a State coordinating commission to work together with the local area planning commission.

Governor SANDERS. Correct.

Senator MONTOYA. Now, why couldn't this work be done at the State level to coordinate with the Federal level?

Governor SANDERS. When you speak of this work, you mean the work of this coordination?

of.

Senator MONTOYA. So-called part-time representative that you speak

Governor SANDERS. They could.

Senator MONTOYA. Now, what do you estimate your road requirement to be under this program?

Governor SANDERS. Well, you mean in dollars and cents? Our road requirements in Appalachia?

Senator MONTOYA. Well, let's put it in miles.

Governor SANDERS. Senator, I think that the area that we are speaking of encompasses almost the entire northeastern section of our State. I would say that I have no specific figures in miles as to how many miles of road that we would consider to be adequate for our particular area.

I can only guess, and if I gave you a figure on miles, it would simply be a figure that I would pull out of the air. I would say that it would encompass in the neighborhood of at least 100 miles of road, new roads and roads in that area of the State that would give us a much larger and much more adequate program than we now have.

We do have, as I pointed out, a State program. We have a $400 million highway construction program that is under commitment or construction to the State, and we expect to spend Federal and State funds for the next 2 years, $337 million more. Of course, a good bit of this money-some of this money will be allocated to this particular Appalachia area.

42-031-65-10

Senator MONTOYA. Right now, since these are access roads, the State would be required to spend its own State money on these roads; is that correct?

Governor SANDERS. That is correct.

Senator MONTOYA. Would you require that these roads be asphalt or just graded roads?

Governor SANDERS. Well, in this particular area of our State, I don't think we could make a requirement that there be asphalt roads because this is a mountain area and the truth of the matter is that gravel roads in this area of our State sometimes prove to be a far superior type of road than an asphalt road.

Senator MONTOYA. What would you estimate the cost to be per mile on this type of a road?

Governor SANDERS. On a gravel road? Oh, I would say a gravel road maybe in this area of the State would probably cost-we had a rural road program several years ago that ran anywhere from $12,000 to $20,000 a mile. I would say it would fall in that category.

Senator MONTOYA. Mr. Sweeney indicated that the cost per mile would be about $50,000.

Governor SANDERS. A mile?

Senator MONTOYA. Yes.

Governor SANDERS. I don't believe it would cost $50,000 a mile for access gravel-type road. Now, if they are asphalt roads, of course, I am sure that they would cost more, but I don't think that the gravel road type that you are speaking of would cost that much in Georgia. We do have an excessive cost, as I am sure we all recognize, in this type of terrain, going in and providing the roadbed, because we have to do a great deal of excavation.

Senator RANDOLPH. Senator Montoya, if I might interject at this point, one of the compelling reasons for the additional 500 miles of access roads was that we found, in States like Alabama and Georgia, that these gravel roads into timber areas or partially timbered areas could be built for approximately $26,000, up to $40,000 a mile.

I just want to add that for the record at this time. We do not add an overall sum in the bill, because we have information as to the costs. We are able to add the 500 miles to the 500 miles which were in the bill last year, bringing 1,000 miles of access roads, because of the lowered costs which have been provided, I will say to the Governor of Georgia, from your State and other States in the area.

Senator MONTOYA. Thank you, Senator.

Do you have any mineral resource studies?

Governor SANDERS. Yes, sir. As I pointed out, we are in the process of making some mineral resource studies. We are doing this through our industry and trade department, and also through our department of geology which we have.

We do not have a complete State record of all of the mineral resources of the State. This is the project that recently I have had the opportunity to discuss with the department of geology. We are very interested and we are proceeding now to try and provide a complete record of our State minerals. There are some areas in Georgia that have already been mapped, but we do not have it completed

Senator MONTOYA. What undeveloped mineral resources do you have in this particular area?

Governor SANDERS. We have a great many. The truth of the matter is, in this particular area of the State we still are operating, but not for commercial quantities, a couple of gold mines. In fact, Dahlonega, Ga., I think, was one of the first mines in the United States, and our State capitol, the dome is covered with gold that was mined up in this area of the State.

There is not only gold, other types of gold, but other types of minerals that we have in this area of the State that have never been tapped or developed. Of course, we have a great deal of Georgia marble up in this area. We have other rocks. This marble is being quarried in Georgia in commercial quantities and, of course, a good bit of the U.S. Capitol, you know, has Georgia marble in it, sir.

Senator MONTOYA. Do you have any coal deposits in this region? Governor SANDERS. In Georgia we have knowledge of some coal deposits, but they have never been developed.

Senator MONTOYA. Well, would you say, Governor, that the emphasis should be placed more on access roads rather than in economic planning and development, dollarwise, I mean?

Governor SANDERS. Dollarwise. Well, I think unless these people have access from the region, and other people have access to the region where they live, I think that we could harvest crops, we could harvest timber, we could mine marble or gold or what not. If we cannot get it out over the roads, I think we are just wasting our time no matter what we develop.

Senator MONTOYA. Would you say the basic requirements for development in this region call for not only access roads, but economic planning and stimulation of the economy through affirmative programs simultaneously?

Governor SANDERS. I would think that there should be some simultaneous effort made not only with the providing of access roads, but also stimulating the economic opportunity of those people so that they can develop the product and get it on the road and get it to the market and get the money back into the area and keep this cycle moving.

It is sort of like ham and eggs, grits and gravy. I don't think one could very well proceed too successfully without the other program also being pushed at the same time.

Senator MONTOYA. That is all, Mr. Chairman.

Senator RANDOLPH. Thank you. Senator Boggs?
Senator BOGGS. Thank you, Mr. Chairman.

In view of the time, and the good questions which have been asked, I just want to thank the Governor for his appearance.

Governor SANDERS. Thank you.

Senator RANDOLPH. Again, we thank you, Governor Sanders. We realize that through your leadership, and the coordination of the other Appalachian Governors, that you are ready to move forward with the programs that in a sense, are in being. You need this affirmative action at the Federal level so there can be this partnership for progress in the 11-State region; is that correct, sir?

Governor SANDERS. That is correct.

I want to thank the committee for permitting me to appear this morning. I have to be present at a general assembly and you were so kind to allow me to be heard before I go back home.

If I can furnish any other information that will be of assistance, I will be delighted to do so. Thank you.

Senator RANDOLPH. Thank
Thank you,

Governor.

The committee is privileged now to hear testimony from our colleague, Senator Daniel Brewster, of Maryland.

Will you proceed in your own way? We are very happy that you have, in a busy schedule, fitted in another appearance before our committee.

STATEMENT OF HON. DANIEL B. BREWSTER, A U.S. SENATOR FROM THE STATE OF MARYLAND

Senator BREWSTER. Thank you very much, Mr. Chairman. Mr. Chairman, I am grateful to you and my colleagues on this committee for affording me an opportunity to testify in behalf of S. 3, the Appalachian Regional Development Act of 1965.

As a cosponsor of this bill, a member of this committee during the 1964 consideration of it, and a Senator from one of the States which will benefit by its enactment, I am deeply concerned with this program. At the opening of hearings last year, the Under Secretary of Commerce, the Honorable Franklin D. Roosevelt, Jr., vividly illustrated the measure which divides general prosperity from regional poverty. In earlier statements, the Secretary pointed to statistics showing an Appalachian unemployment rate of 7.1 percent, compared to a national rate of 5 percent. He pointed to income figures of $3,000 or less for one-third of the families in Appalachia, as compared to one-fifth of the families in the Nation.

The concern of the President, of Mr. Roosevelt, and of many of us in Government at all levels is with the increasing gap between a bountiful America and a bypassed Appalachia.

As the senior Senator from Maryland, I am concerned with the economic prosperity of three western Maryland counties-I note their Representative, Mr. Mathias, is here this morning-which fall within the purview of Appalachian poverty and within the promises of Appalachian development. I know my own State best. I believe that the program envisioned in this act is essential to the economic future of Washington, Allegany, and Garrett Counties.

I believe that their problems are illustrative of the problems throughout Appalachia, and I am concerned that the members of this committee and of the Congress who do not represent Appalachian areas, understand fully the seriousness of the situation with which this legislation is intended to deal.

Let me be descriptive. The Appalachian counties in Maryland comprise 1,570 square miles of mountain and valley. They represent 15 percent of the State's total land area and accommodate 6.3 percent of the State's population. Garrett County is the second largest in the State, but it is inhabited by less than 1 percent of our total population.

Until recent times, the economic mainstays for the 194,000 inhabitants of our Appalachian counties were agriculture and mining. Farming has declined to the point where it is prosperous employment for an ever-decreasing number. In Garrett County it provides employment for one-third of the work force, but in Allegany and

Washington Counties for only 5 and 3 percent, respectively. The coal mines which once employed 6,000 provide jobs for 500 today.

Today, the economies of the tricounty area are dependent on the 8 percent of Maryland's total manufacturing which is located there. In Allegany and Washington Counties, 45 percent of the work force is so employed. In Garrett County, more than 20 percent of personal income is derived from manufacturing. The increasing automation of the manufacturing process threatens a continual reduction of available employment in industry, as well as in farming and mining.

Forest resources constitute some 600,000 acres of timberland in these three counties, but only a small portion is sawtimber and of this amount only a fraction is being cut.

Water resources are presently adequate to a stagnant economy, but could never meet the demand of population and industrial growth. Per capita income in our mountain counties was, in 1961, $500 a year below the statewide average.

Our western counties are also deficient in the development of adequate housing and the provision of educational opportunities. The percentage of substandard housing ranges from 20 percent in Allegany County to 39 percent in Garrett County. Substandard refers to housing in a dilapidated condition or lacking bath or toilet facilities. The key to economic development in 1965 is the adequacy of transportation. In this area, my State's forward looking highway program has placed Washington, Allegany, and Garrett Counties in a position to make significant, forward strides as soon as the other elements in the Appalachian plan have been effected. Washington and Allegany Counties have adequate highway and rail linkages completed or scheduled for early construction. Garrett County can be expected to enjoy a similar improvement, but here much needs to be done.

As our Nation has grown, we have come to recognize the interdependence of its regions, and the contribution which each makes to the prosperity of all.

President Johnson has carried forward with characteristic energy and effectiveness many of the programs which were formulated by the late John Kennedy, but the President has done more than that. He has launched a massive national war on poverty wherever it is found. This war is a noble war, and I am proud to have joined with a bipartisan group of my colleagues in sponsoring the attack on poverty and the specific legislation directed toward the elimination of poverty from the Appalachian region of our country.

Mr. Chairman, no one knows better than you, representing the great State of West Virginia, that the people of Appalachia are a great people. They have shown their spirit in their response to their circumstances, geographic, economic, and human. Even now, they are preparing to do their part in implementing the recovery for which this bill provides. They recognize, as we do, that the construction of highways, the attractions of industry, the prevention of flooding, the management of resources, the construction of educational and medical facilities, and the elimination of human suffering, are the ingredients of the good life and the Great Society.

The realization of the American dream for each county of Appalachia is within our grasp. The passage of the legislation pending before this committee is a long step toward this realization.