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Borough of Dunmore, Lakawanna County, Pa....

To provide access road and sewers for Dunmore portion of Keystone Industrial

Park-Trane Co.
Borough of Throop, Lackawanna County, Pa.

To provide access road, sewers for that portion of Keystone Industrial Park in

Throop Borough--Trane Co.
Scranton, Lackawanna County, Pa.
To build a vehicular bridge replacing one that is inadequate.

Sept. 25, 1961
Waynesburg, Greene County, Pa.

Preparation of site for industrial park-Gigi Footwear, Inc., LaBella Footwear, Inc. Sept. 28, 1961
Wilkes-Barre, Luzerne County, Pa.
To establish Scientific Research Center, Wilkes College..

Dec. 6, 1961
Hazleton, Luzerne County, Pa.

To provide a million-gallon watertank to provide water to Valmont Industrial Park
to insure sprinkler lines and process water-Spaulding Plant, Highway Trailers, Gen-
eral Foam, and Foldes Industry.

Nov. 6, 1961
Somerset, Somerset County, Pa.
To establish an industrial park.

Nov. 8, 1961
Butler, Butler County, Pa

Dec. 13, 1961
Preparation of site for construction of building and extension of water and gas
lines-Standard Packaging Corp.
Borough of Petersburg, Huntington County, Pennsylvania

Jan. 25, 1962
Construction of new plant 23,000 sq. ft. for Petersburg Transformer Corp., sewer

lines, water lines, etc. Petersburg Transformer Co. (Tresco, Inc.)
Providence, Providence County, R.I.

Mar. 21, 1962
To provide roads and utilities to serve three firms moving to Providence's Hunting-
ton Expressway Industrial Park-Providence Wholesale Drug Co., Glass-Tite In-

dustries, Inc., and Anson, Inc.
Pottsville, Pottsville County, Pa..

Feb. 12, 1962
To establish an 80-acre industrial park.
Hagerstown, Washington County, Md.

The development of Hagerstown planned industrial district No. 2-Electronic
Teaching Laboratories, Inc., H.M.S. Enterprises, Inc., the Hagerstown Leather Co.,

the Maryland Ribbon Co., Darbee Manufacturing Co., Inc., and the Taylor Co.
Lowell, Lowell County, Mass.

Construction and improvement of public facilities, roads, sewer mains, water and

drainage mains for Lowell Industrial Park--Morris & Son Construction Corp.
Newell, Fayette County, Pa---

Dec. 18, 1961
Construction of a water system-Allied Chemical Corp. (General Chemical Divi-
sion) and Pittsburgh & Lake Erie RR. Co.
Oil City, Venango County, Pa.-

Mar. 16, 1962
Construction of a railroad service track into Venango County Industrial Park;
completion of water systein; installation of sanitary sewage collection and disposal
system-Arnold Graphic Industries, Inc., Columbia Corrugated Container Corp.,
Pat'N'Wood, Corp., Clarion State College, Oil City Hospital, and the General Mani-
fold & Printing Co.


1 At CFA for final process or at ARA for approval. ? Sec. 7 loan. 3 Being written and signed.

• Public Law 660. 3 Sec. 6 loan.

Mr. CRAMER. How many areas have been given such grants?
Mr. BATT. I have those figures here.
Mr. CRAMER. How many areas?

Mr. Batt. At the moment, sir, the number of areas which have been given help under our program are 99. These come under several headings. The technical

Mr. CRAMER. I do not mean "help.” I am talking about section 8, grants or loans for public facilities

Mr. Batt. Under that part of the act, at the moment we have loans or grants that have been completed in seven areas.

We have an additional number in the pipelines involving about 75 areas which are in process, involving about $40 million more of Federal funds.

Mr. CRAMER. How much

Mr. BATT. And we have about 130 being developed in the areas, themselves, and some 331 that have been referred to other agencies.

Mr. CRAMER. How much does the seven involve money wise.
Mr. Bart. The seven that have been disbursed involve $1.1 million.

Mr. CRAMER. So, out of the $90 million authorization given by Congress, under section 8, with this great unemployment problem in all of these areas, your agency, being in the Department of Commerce, that is asking for this $600 million as a basis for putting everybody back to work or a good portion of them, has been able to obligate only $1 million, one-ninetieth, to get at this serious unemployment problem.

Now, what is the problem? Is not one of the problems the fact that the President of the United States in January issued orders to all agencies to cut back in Federal spending, to try to balance the budget ? Is that not one of the problems that exist? And what has the Mr. Batt. No, sir, I can tell you

Mr. CRAMER (continuing). What has the Department of Commerce done, Mr. Gudeman, with regard to the President's cut back order?

Are we not going in two directions at the same time? Mr. GUDEMAN. We have done nothing to the area redevelopment end of our Department relative to that.

Mr. CRAMER. What else have you done?
Mr. GUDEMAN. We have done nothing in the Department, sir-
Mr. CRAMER. You mean you have ignored the President's order?

Mr. GUDEMAN. No, but there is nothing to be done—there is nothing that the President, in any order that he issued

Mr. CRAMER. He said that he gave an order to every member of the Cabinet to cut back on expenditures, to try to balance the budget.

Mr. GUDEMAN. Well, let's take Mr. Whitton's situation. He operates out of the highway fund.

There is a certain amount that he has available for public roads, and he goes along and does that over a long range—in a long-range way.

In the Area Redevelopment Administration, as Mr. Batt tried to point out in his testimony, sir, we must have an overall economic development program.

He is just getting started.
Mr. CRAMER. That is right.

Mr. GUDEMAN. It takes time to get started. It will take him several more months

Mr. CRAMER. That is the point I am getting to.

The area redevelopment program, with this 1-year limitation of construction written into the bill, does not provide any relief in implementing area redevelopment.

Is that not correct?

Mr. GUDEMAN. I would like to answer you. I think we have to divide this into two parts.

One is area redevelopment itself, which is a long-range program to rehabilitate areas that are unemployed and underemployed.

It requires a study, an overall economic development program, for that area that must be worked out.

I know, as that is worked out, there will be public projects that then can be pulled out of there, out of the area itself, and utilized on an immediate basis if this money is made available.

Mr. CRAMER. By a 100-percent Federal grant authority under the $600 million, and if you take one project in each area, the project can only be equal to $750,000.

Now, how many people

Mr. GUDEMAN. I agree with you, if you take one in each area, the money available is not very large.

It is like dividing up GNP among all the people in the United States, but nothing is every done that way.

Mr. BLATNIK. Will the gentleman yield on that point ?

There is no intention to take all of these areas and spread the money uniformly into all of them. Certain criteria are spelled out in the President's proposal, and I will read it.

In prescribing such rules and the regulations and procedures, the President said, among other things, that projects under this program would be limited to those which could be initiated or accelerated within a reasonably short period of time and completed within 12 months after initiation.

He also said that other limitations of the standby bill would also apply, for example, projects could be approved only if they were capable of meeting an essential public need, if they would contribute significantly to the reduction of unemployment, and if they were not inconsistent with locally approved comprehensive development plans.

Mr. CRAMER. Exactly the same criteria that they used in establishing the area redevelopment areas.

Mr. Barr. No, sir; this is far more stringent.

First of all, the community itself has to organize the overall development plan. Secondly, it has to get that approved by the Governor and by the Department of Commerce, the Area Redevelopment Administration.

Thirdly, it has to come in under that plan with comprehensive proposals, proposals for the investment primarily of private capital with Federal money to make the mule go to put together the project.

Now, the public facilities that are connected with our projects and, incidentally, we have reserved funds for 43 separate projects totaling $14.3 million and providing some 16,000 jobs in these areas. These public facilities have to be related to the creation of permanent longtime jobs in private industry; that is, you have got to find private capital, Mr. Cramer, willing to invest in these areas.

Now, this is a long-term job, and I am amazed, quite frankly, and most pleased that we have been able to get valid and sound projects that would utilize as substantial a proportion of the funds as will be utilized by the end of the fiscal year.

Mr. CRAMER. Well, Mr. Secretary, this request for authority by the President is, in particular, the $2 billion standby authority, and it largely relates to the $600 million request which is an amendment proposed, and it appears to me to be one of the most brazen Presidential power grab proposals ever presented to the Congress.

Now, to make such a proposal, giving the President the power to transfer funds, you know, he can take money from the ARA which is unobligated. He can take money from the Highway Trust Fund. Is that not right?

Well, the trust fund is excluded, but he can take money from the ARA redevelopment and he can take it from RS-70 if it is not spent. It has already been testified to that effect.

He can take the $300 million not spent, on his own orders, even though Congress gave him the money for VA, direct loans, that he refuses to expend, which is an area that could help unemployment, in my opinion, as much as this total $600 million package, in home construction direct and indirect benefits.

He has put a shutdown order on VA loans even though he admits, the administration admits that they have got 3,600 applications sitting there.

And the administration thus is asking for power to transfer funds between departments that has never been given to the executive branch of the Government

Mr. BLATNIK. Mr. Chairman?
Mr. CRAMER. Just a minute. I am asking a question.
Mr. BLATNIK. You are asking the question?

I do not mean to interrupt you but, honestly, we have heard that now about eight times in the last 3 days. You are correct, you are stating the facts precisely. You are stating what the President is recommending and the statement or request was made in his behalf by his top administration spokesmen at the opening of the hearing on Monday morning.

These men here represent a department, and this is the Under Secretary of Commerce and his two top aids which would be involved in this program if Congress approves the President's request.

Now, we can expedite these hearings if we keep in mind what roles and what contributions the agency could make in this program if it were adopted.

Mr. CRAMER. You have not given me a chance. The gentleman made a 10-minute speech at the beginning of these hearings

Mr. BLATNIK. The gentleman did not make a 10-minute speech-
Mr. Fallox. Let's have order, please.

Let me say to the committee, there is nothing that the chairman can do if the gentleman remains within the rules of the House and the committee as to what language he might use or what expressions he might make before the committee except that the Chair would like to request that the members stay within the realm of what these tlemen have control over rather than to go into other agencies.

I think that the gentlemen probably know just exactly what the bill will do and, certainly, we have discussed the transfer of funds from other agencies, or, that this will give the President the power to transfer funds from one agency to another if he so desires under this legislation.

So we are all agreed on that, and if we stick to just what these gentlemen have control over I think we can get along much faster.

Mr. GUDEMAN. Thank you, Mr. Chairman.

Mr. CRAMER. It also authorizes the President to do a lot of other things, and the reason I was pressing the question in that form is because the Secretary has made numerous statements about the general economic conditions in the country and the causal relationships between what the Government is doing and not doing, and unemployment, and I wanted to ask him this question:

What has happened in the last few weeks to justify this sudden request for $600 million immediate authority with regard to unemployment ?

Is it not a fact that the administration's program which, last year, was legislated and this year is a loan which requests additional expenditures in the amount of $2 billion in total programs to meet this unemployment program, is not succeeding?

Now, what justifies at this time this request on such an emergency basis?

Mr. GUDEMAN. I would like to answer that.
Mr. CRAMER. Yes.

Mr. GUDEMAN. I do not think that the administration has failed at all.

I think economic growth has gone forward in the past 15 to 18 months better than anyone could have anticipated and, as a former businessman, I must say to you that I am pleased how the GNP has grown over the past year.

On the other hand, even though that is the case, our unemployment figures still stand at 5.6 percent. And it does not appear, from all the projects that we can make that that will be reduced materially during this year even though we will have economic growth and continued economic growth just as the President has said and as Mr. Heller, the counsel of the economic advisers, has said.

We will continue to go along, call it with “reasonable prosperity” if you wish, but the GNP is not growing the way that we have anticipated or hoped for.

And, therefore, this $600 million will give an added boost to the economy

Mr. CRAMER. How many people would it end up providing employment for if the total $600 million were spent under it?

Mr. GUDEMAN. About 125,000 people, sir.
Mr. CRAMER. Out of the how many million of unemployed ?

Mr. GUDEMAN. Well, let's see, what does it run now-5.6! That is 442 million, is it not—412 to 5 million? Mr. CRAMER. So it might employ one-fiftieth of those unemployed.

Let me ask you, how many new jobs were created by the accelerated $400 million highway D funds, additional authorization passed by Congress in 1958?

That is $400 million. That is two-thirds of what is being requested.

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