determination consideration will be given to the applicant's (1) financial statement. (2) estimated annual operating and living expenses, (3) estimated annual income, (4) fixed obligations which must be met annually, and (5) other related factors. Senator DOLE. Also there was a suggestion made during the hearings that it might be advisable to extend Federal crop insurance programs to forest lands. Again, we would like a comment on this, whether or not it is feasible, and what might be the Department's position with reference to this suggestion. Mr. FROST. All right, sir, we will be glad to do this. (The following material was later supplied:) Present resources and those anticipated do not at this time provide adequate funding to permit any expansion of the Federal Crop Insurance program into new areas. It is not anticipated that Crop Insurance program will have expansion of any kind during the coming fiscal year. With regard to the feasibility, the Corporation did undertake some research in this area during the early 1960's; however, interest was not sustained enough during that period to develop the program further than preliminary research. Some actuarial studies were carried out in the areas of fire insurance and other potential hazards. It was the opinion of the Corporation at that time that any actuarial rating would be very complex and difficult to accurately appraise from a risk standpoint; however, no specific program was set forth. As noted above, the Corporation is not in a position at this time to continue further evaluation of this area. The Corporation has received inquiries from time to time concerning timber insurance; however, interest seems to have been very limited in this area. Senator DOLE. Does the staff have any questions? Mr. Frost, again, we appreciate your indulgence. As you understand, the primary purpose is to make a record and to cover all possible questions that were raised at the hearings, that may be raised in executive session, so we can make the necessary changes in the present law, and that we can adopt changes suggested by the Chairman or by the administration to help us deal more effectively and respond more quickly in the event of another disaster. Is there anything else you want to add? Mr. FROST. I don't believe so. We will complete the record and get it over here soon. Senator DOLE. Thank you very much, Mr. Frost. Mr. FROST. Thank you, Mr. Chairman. Senator DOLE. In the appendix to these hearings I will include, without objection, the regulations promulgated for emergency food assistance for victims of major disasters which appeared in the Federal Register on Thursday, April 16, 1970. (See appendix, part 5, for document referred to.) Senator DOLE. Mr. Weber, as we suggested to the last couple of witnesses you are free to summarize your statement or read it in full and your entire statement will be made a part of the record. You may now proceed in any way you wish. STATEMENT OF ARNOLD R. WEBER, ASSISTANT SECRETARY FOR MANPOWER, U.S. DEPARTMENT OF LABOR Mr. WEBER. Thank you, Mr. Chairman. PREPARED Statement of ARNOLD R. WEBER Mr. Chairman, I am pleased to appear before your subcommittee on a matter of great interest to the Department of Labor. Your hearings are concerned with program results under the Disaster Relief Act of 1969 and pending legislation such as 8. 3619 the Omnibus Disaster Assistance Act and 8. 3745 the Disaster Assistance Act of 1970. These would provide additional relief for victims of sudden and devastating natural disasters. The provisions for disaster unemployment assistance--the Labor Department's basic responsibility--in each of the bills is essentially the same. However, the Disaster Assistance Act of 1970, the Administration bill, extends these provisions for a temporary period of two more years; the Omnibus Disaster Assistance Act makes permanent provision. Our agency has major responsibilities under the Disaster Relief Act of 1969 as well as continuing programs to alleviate human suffering caused by social and economic problems of unemployment, under employment and poverty. Integration of ongoing programs and existing services into emergency relief actions in disaster areas is an important aspect of these hearings. Hurricane Camille vas one of the most devastating natural disasters this country has experienced. As the hurricane grew to unprecedented force with winds that traveled 200 miles an hour, creating ocean tides of 20 to 30 feet its toll assume enormous proportions. Before finally expending its force, Camille had exacted a price of 250 dead, and $1.5 billion in damage. Seventy-five thousand families suffered losses. Twenty thousand homes vere destroyed or damaged, and thousands of persons unemployed. The magnitude of suffering for those in Camille's path is difficult for one to contemplate. In Mississippi alone over 3850 homes were destroyed, and over 12,000 homes suffered major damage. Nearly 2650 farm buildings and 570 small businesses were destroyed or severely damaged. Four thousand workers were reported unemployed as a result of damage to the seafood industry. The Mississippi Employment Commission estimated a 17 percent unemployment rate in five hard hit counties. My testimony will report on efforts of the Department of Labor in meeting the problems of the victims of Camille, particularly in the State of Mississippi. Immediate Unemployment Insurance Response in Mississippi Operating under 'emergency procedures, the regular program of unemployment insurance a Federal-State program administered by this Department and State employment security agencies began to function almost immediately after the storm subsisded. By August 20, 1969, 4 days later, claims were being taken in six offices in the areas of heavy damage in Mississippi. Personnel were sent to the disaster area from the State office; contingency claims takers were hired; claims takers were sent to temporary locations and evacuation areas; and rules regarding late filing and backdating of claims vere relaxed to meet the circumstances of the disaster. During August 1969, 2074 new unemployment insurance claims were accepted in the Gulf Coast area, an increase of 1661 over August 1968. Despite their 40-896 O 70 pt, 4-37 quadrupled number, these emergency claims were paid promptly under existing UI procedures. From September to mid-December new UI claims for persons in covered employment in the area subsided to their normal volume. There remained, however, a large number of unemployed persons not protected under the UI programs, and others who, although re-employed, had suffered financially because of lack of such protection. Enacted October 1, the Disaster Relief Act of 1969 authorized the President to make available various kinds of assistance in areas declared to be major disaster areas. For the first time provision was made for payments to individuals whose unemployment was due to a major disaster. Responsibility under Section 12 of the Act, which provides for such payments, was delegated to the Secretary of Labor by the Office of Emergency Preparedness on December 11, 1969. Regulations to implement payment activities, referred to as disaster unemployment assistance, were filed by the Secretary of Labor on the following day and published in the Federal Register on December 13, 1969. Simultaneously, and with assistance and counsel from State unemployment insurance staff members from States in which declared disasters had occurred, the Labor Department developed an interim procedure for making payments, utilizing the existing capability of the States to make unemployment insurance payments. At the same time, State Governors were invited to enter into agree ments with the Secretary of Labor whereby the State unemployment insurance R agencies would make disaster unemployment assistance payments. Agreements were completed by December 23 for all States in which Hurricane Camille had created a major disaster. Agreements have now been made with all but six States and the Virgin Islands. Hone of these have voiced objection to the program and presumably would be willing to participate if the need arises. Within seven days after the delegation of authority to the Department of Labor the first disaster unemployment assistance payments were made in Biloxi, Mississippi, on December 18, 1969. In the week ending December 20, 1969, claims had been accepted from 539 individuals. Claims continued steadily from this 40 by 60 mile area in which the storm wrought the most extensive damage. Through April 9, 1970, payments amounting to $4,026,947.00 had been made to 22,210 applicants in the area. This area has provided the most substantial test of the disaster unemployment assist ance program. The Mississippi Gulf Coast experience demonstrates that the disaster unemployment payment provision will provide needed assistance not duplicated by other programs. The heavy industries in that area whose workers vere covered by unemployment insurance were the least affected. The most complete destruction of job-producing businesses occurred among small eating and drinking establishments, rooming houses, small hotels and motels, recreation and service establishments supported by tourism, and in the fishing fleet and seafood processing plants. Many of these small service businesses were run by an individual proprietor. When his business was destroyed, |