CONGRESSIONAL RECORD – SENATE


June 25, 1963


PAGE 11602


Mr. MUSKIE. Mr. President over the past two decades, we have witnessed one of the most remarkable -- and almost unnoticed -- revolutions in world history. That revolution -- accomplished without barricades or bloodshed -- continues today. It is the spectacular improvement in the American standard of living. Rising steadily to new and unprecedented heights, our standard of living dramatically demonstrates the success of our democratic form of government and our economic system of free enterprise.


But in the midst of this affluence, we are repeatedly confronted with the paradox of unemployment, poverty and misery. As our prosperity has increased on a national scale, our unemployment patterns have become rigid, and certain areas have been chronically burdened with high levels of unemployment and economic stagnation.


Frustrated in their efforts to share in the national prosperity, many Americans have watched their children leave to seek opportunity elsewhere, and have retreated into despair.


For some years, many States have recognized the uneven nature of economic development. In my own State, for example, in an effort to coordinate our development programs -- industrial and recreational-we organized the department of economic development in1955. This was followed by the Maine Industrial Building Authority, established in 1957, to guarantee industrial building loans. Both of these programs represent an effort by government to provide the means by which local communities can utilize local initiative and local resources to solve their economic problems. I am proud that both of these measures were enacted while I was Governor of Maine. Cooperation between local and State officials has been excellent, and some advances have been made.


But a great need remained. Thus, it seemed both logical and necessary that additional assistance be made available by the U.S. Government. This was forthcoming in the Area Redevelopment Act of 1961. In its 2 years of operation, ARA has been of immense assistance to large areas which need help. In Maine, six entire counties -- Aroostook, Piscataquis, Washington, Hancock, Knox, and Lincoln -- most of York County and part of Penobscot County have been designated as eligible for assistance from ARA. Those counties cover roughly one-half of the geographic area and contain over one-third of the population of the State. In each case, designation was requested by local citizens. This was not forced upon the people of Maine. They wanted it -- they asked for it -- they have used it -- they need it if they are to continue to improve their economic condition.


Each of our eight counties eligible for assistance has submitted and obtained approval of an overall economic development plan. In itself, this is a positive and encouraging result, because it requires each area to appraise its resources and to channel its energies into those avenues which will best develop those resources. Some of our counties have not yet had a chance to implement their development plans, and curtailment of this program will be a cruel blow to the hopes which have been raised by this program. Others have already made significant strides.


One of these is Aroostook County, located at the extreme northern tip of Maine. As large in area as the combined States of Connecticut and Rhode Island and with a population of about 100,000, Aroostook County is a largely undeveloped area. It is rich in natural resources, but concentration on one source of income -- potato farming -- has made the county's economy subject to the violent fluctuations of the potato market. With the steady decline of that market in recent years, the economy of Aroostook County is in critical condition. Added to this was the loss in 1961 of the Presque Isle Air Force Base, which had been a major source of income to the city of Presque Isle, largest in the county.


Although it has not provided a solution to all of the county's problems, ARA has made a very substantial contribution to the economic recovery now taking place there. Three industrial loans, totaling $1,746,000, have been made. These loans, for expansion of a potato processing plant and two wood-products factories, are the kind of help needed in Aroostook County, for they are directed at development of the natural resources of the area. They will account for over 400 direct new jobs.


ARA was of direct assistance in meeting the problems created by the closing of the Air Force base at Presque Isle. Through its training program, some 300 workers are being retrained to meet the need for skilled workers to supply two industries moving into the former base.


ARA is also helping the potato farmers of Aroostook County to meet their problems. As I mentioned earlier, one industrial loan has already been approved for expansion of a potato-processing plant. More important, perhaps, is the help which can only be forthcoming if additional funds are made available to ARA.


A consensus is growing in Aroostook County that the first step toward solution of the problems of the potato industry is the establishment of centralized storage and packing plants. At this time, four applications are pending at ARA for construction of such plants. Yesterday, I received a letter from the executive vice president of the Maine Potato Council, which represents the potato farmers of Aroostook County. He said:


At a meeting of the board of directors, Maine Potato Council, held last evening the board requested management of the council to contact our congressional delegation urging them to support any bills that would provide for additional funds for the Area Redevelopment Administration.


The board wishes to point out to our congressional delegation that the whole concept of the development of centralized storage and packing plants in Aroostook County, believed by the council to be one of the prime needs for correcting the potato situation, revolves around the use of ARA funds for the construction of such plants. At the present time, four groups in Aroostook County have applications for loans pending with the ARA. Already ARA funds have been extremely beneficial to the self-help program of the potato industry.


We urge your support of this legislation that has proven most beneficial to the Maine potato industry.


 HAROLD E. BRYANT, Executive Vice President,

Maine Potato Council.


The chairman of the Aroostook County Rural Area Development Committee wired me as follows:


On behalf of the Aroostook County Rural Area Development Committee, I would like to express my deep concern over the possibility that the ARA program may not be extended beyond this year. Although I realize that you are acutely aware of Aroostook County's problems, I will refer to them for background.


The recent closing of the Presque Isle Air Force Base accentuated the lack of industrial payroll for the area and created some temporary unemployment. The decline of the market for potatoes and the deterioration of the price for this product has resulted in severe under employment and marginal wages In the area.


The rural area development programs in conjunction with the assistance provided through ARA has made significant progress In changing this picture. The initiative of local businessmen has been stimulated by the availability of Federal money resulting in many applications for loans for some lumber mills such as cedar and planing mills, as well as one of the largest proposed long lumber mills in the area. Although the agricultural picture in potatoes has not significantly changed, many farmers have been given new incentive to try to solve the marketing program through the use of ARA funds In providing central packing and processing plants, potato services in Presque Isle have used ARA funds to increase the size of their operation and expect to double their employment up to a figure of 600 or 600.

Events such as these have given our area a more optimistic outlook on the future. I strongly urge on behalf of Aroostook County that you urge your fellow Senators to consider the good that has been accomplished by ARA and the many opportunities for more effort in these fields that are still available. We are very grateful for your assistance In the past and wish you good fortune In your present efforts."


JOHN TIERNAN,

Chairman, Aroostook County Rural Area Development Committee.


Perhaps of even greater significance to the economy of the county – and the State -- is a possible technical assistance grant. For some time, I have been working closely with local citizens in an effort to determine the feasibility of developing the sugarbeet industry in Aroostook County. This requires extensive sample planting, and an analysis of the crop once harvested. The State of Maine has already made some funds available, and the people of Aroostook County have contributed to their limit. However, additional funds are necessary, and an application for a technical assistance grant will be filed with ARA shortly. Such a grant would make it possible to make a proper analysis of the sugarbeet potential,


It should be made clear that these people are not running to the Federal Government for a handout. They have worked diligently and have raised locally and through the State over half of the total study cost. But their resources are limited. With Just a very modest assist from ARA, this project may become a reality.


And it is of the utmost significance. It can provide the answer to the problems which have beset Aroostook County farmers because of their concentration in one crop.



The importance of this project to the long-range economic growth of Aroostook County -- and indeed the entire State of Maine -- cannot possibly be overstated. And yet, it will be stillborn if this measure is defeated, and no grant funds are available. Today, I received a telegram from the chairman of the local committee organized to move this project, and it reads as follows:


We urge your help toward the establishment of a technical assistance grant for the sugarbeet program in Aroostook County. A supplemental crop is imperative to the economy of this area and sugarbeet fill this category excellently.


Success of this venture would mean capital expenditures of $20 million plus substantial annual net income to the county's business and farmers. The 260 acres of beets now growing are being financed by local contributions and the Maine Department of Agriculture. Technical assistance grants is urgently needed to complete crop harvest and economic feasibility study for hearings late this fall. Your continued support on additional authority for area redevelopment program f or coming fiscal year is requested. The program has done much in helping people of Maine to improve their economic status and its continuation will be of great value to this county. May we have your continued help toward the extended ARA program and in establishment of a grant for the sugarbeet project. Thank you.


J. ROGER ERSKINE,

Chairman, Sugarbeet Committee.


It seems to me that this technical assistance grant-which will probably be for less than $50,000 -- if approved, will be doing precisely what we intended should be done when ARA was created in 1961. It will provide the means by which a major industry may be located in an undeveloped area where it is badly needed. This will be the establishment of a new industry, creating new jobs-the internal growth so necessary to support our expanding population.


My reference to Aroostook County as an undeveloped area leads me to recall other programs designed to assist undeveloped areas. In 1862 -- over 100 years ago-President Lincoln signed the Railroad Land-Grant Act. The purpose of the law was to encourage private railroad corporations to extend their operations into then undeveloped areas of the West, in an effort to stimulate their development. Under that act, the U.S. Government, in the midst of a great Civil War, operating at a fiscal deficit, gave away -- free -- 130 million acres of public lands to private companies. That is roughly equivalent to the total land area of 12 Northeastern States -- Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, Pennsylvania, New Jersey, Delaware, Maryland and most of Virginia. I want to emphasize that this land was given away, while 75 percent of the funds distributed by ARA are loans, repayable with interest.


Mr. President, we can imagine the field day our present-day prophets of doom would have had to attack the Railroad Land-Grant Act. Socialism -- giveaways -- Government control-the charges would fly fast and free. And yet, I submit that that law, enacted by a Republican Congress and a Republican President, was one of the most visionary and farsighted pieces of legislation ever enacted by any Congress. No other single factor played as important a role in the development of the great West, which has contributed so much to our national development since then.


And yet, was this not a giveaway of Federal funds-for who can begin to calculate the value of those 130 million acres of land? Was this not giving the railroads receiving land an unfair advantage over those that did not? Was this not legislation helping the people in one section of the country at the expense of those in another?


The arguments are familiar, and they should be, for these very same arguments are being used today against ARA.


They represent a negative, shortsighted view, which demonstrates a lack of confidence in America. And they deny to large numbers of Americans the helping hand needed if they are to help themselves. They say to those Americans in undeveloped areas like Aroostook County: "You have your problems and you are stuck with them; it is up to you to solve them; you can't expect any outside help." What could be more shortsighted, more out of keeping with the American tradition?


The failure of the Articles of Confederation proved conclusively that this country is not a series of separate economic units, each independent and concerned only with its own problems. Ours is a national economy; economic stagnation and poverty in one area adversely affect us all. Our obligation to our fellow Americans is thus more than moral; it is economic, and in our own self-interest.


Mr. President, this Chamber will hear the voices of opposition to this measure. We will hear predictions of dire results if we approve this measure. We heard similar predictions 2 years ago when we were considering founding this program. I would like to recall just one such prediction, which may serve to place in perspective some of the statements we shall hear now.


As we know, the U.S. Chamber of Commerce opposes S. 1163 as it opposed establishment of ARA in 1961. As part of that opposition, in the March 1961 issue of its Monthly Activities Report, the Maine State Chamber of Commerce published an article entitled "Area Redevelopment Bill Would Create One New Job in Maine." The article asserted that the cost of the program to Maine would be $430,000, while the State could expect in return a total of $10,000, which would create one job in the one area eligible for assistance. Well, I have seen bad guesses in my day, but I have rarely seen anything like this. The facts are that two years later that 8 areas in Maine have been designated as eligible, not 1 as predicted; that approval has already been given to over 25 projects -- including 9 industrial loans -- calling for an investment by ARA of over $3 million, not $10,000, as predicted; that this investment will result in the creation of approximately 1,000 direct new jobs, not 1 as predicted.


But, in many areas, we are just beginning to move. For example, there are presently pending 18 projects which will result in the creation of 915 more new jobs. And I am advised by the ARA representative in Maine, that within 30 days, it is expected that 14 more applications, calling for the creation of 860 new jobs, will be filed. The chairman of the redevelopment committee for the Biddeford-Sanford area, a hard-hit former textile area located at the southern end of Maine, said in a wire to me this morning:


We are greatly concerned over Congress' apparent failure to provide ARA with the additional funds needed to assist our local organizations in continuing to provide new facilities, equipment and training needed to replace our former textile businesses with modern industries. As you know, an economic study of this area originally started under ARA to cover only the 22 towns designated in 1961 as the Biddeford-Sanford redevelopment area is now receiving official local support from all 28 towns In the country. It is being supervised by a committee serving entirely without compensation. The study has already shown new ways of improving business in agriculture and In clam and lobster fisheries. Other constructive findings are Indicated in subjects still in process. Biddeford-Sanford and other smaller communities have already benefitted greatly through Increased employment and physical improvements accelerated by ARA grants and loans which supplement local Investments fix new industries. It seems clear that this ARA program is just beginning to be of real assistance In improving the economy here as well as In other depressed areas of the State. It would be most unfortunate to have it seriously curtailed at this time. In view of your continuing interest, we are taking the liberty of calling it to your attention hoping that reconsideration of the recent action may be possible.


LEWIS K. MARSHALL,

Chairman, Biddeford-Sanford Area Redevelopment Committee.


To reject this bill will be to cut short the recovery which ARA is helping to bring about. But of even greater concern to me is the psychological impact which will inevitably result. For many people in many parts of the United States, ARA's most valuable contribution has been the infusion of a sense of vitality, of awakening local initiative, of a sense of purpose and achievement. With its heavy emphasis on local planning, local initiative, local contribution, ARA provides assistance for those willing to help themselves.


Testifying on S. 1163, before the Production and Stabilization Subcommittee of the Banking and Currency Committee, the president of the Northern National Bank-by far the largest bank in northern Maine and serving an area designated under ARA-said:


ARA has provided the opportunity and the stimulus for the citizens of this county to forge ahead to help create a bright future for themselves and their children, and they, have done so with tremendous local initiative and cooperation. It certainly has 119A a positive and encouraging effect upon our area.


ARA has widespread support throughout Maine, as evidenced by recent newspaper articles.


I submit for insertion in the RECORD at this point, and ask unanimous consent to have printed, an editorial, a newspaper article, a letter, and several telegrams received in my office supporting this bill.


There being no objection, the material was ordered to be printed in the RECORD, as follows:


[From the Portland Sunday Telegram, June 16, 19631

THE WRONG DIRECTION


Walter Lippmann last week, in probing for a meaning in the social upheaval that is taking place In the heavily Negro sections of the country, saw it as a manifestation of the broad problems that face the Nation as a whole. These are the problems of low Income and poverty, unemployment, lack of education, inadequate housing, and the lack of many Other amenities of civilized life. And looking into his crystal ball, Mr. Lippmann saw dimly in the future a massive attack on these problems. If the need is to be met, among the whites as among the Negroes, the remedy will have to be massive, for millions of American citizens are involved. The aim will have to be to Increase economic opportunity for them, so that they can become the consumers who will, in turn, keep the American economic machine running in high gear.


But the massive attack has not been mounted yet. What remedies are at hand are a kind of patchwork, but they are the best available. In the forefront is the Area Redevelopment Administration, with its aid to depressed areas, sections with chronic unemployment. This program is of special import to Maine because half the State is eligible for its aid.


For that reason, the vote of the U.S. House last week rejecting the President's request for an additional $450 million to extend the ARA program is to be regretted. Desertion of some southern Democrats from the administration fold was apparently a kind of punishment for the President's stronger stand on desegregation. Their vindictive action made it the more unfortunate that northern Republicans like Congressman McINTIRE, of Maine, could not find their way clear to vote for the measure, which, according to one estimate, might have created more than 1,000 jobs here in this State. Maine's GOP Congressman TUPPER. be it noted, was for the bill.


Another attempt to get funds for the program's extension may yet be made, with more favorable results. Otherwise the massive attack may be launched In the wrong direction.


[From the Christian Science Monitor, May 23,1963)

AID TO BUSINESS FIGHTS JOBLESSNESS

(By David G. Mutch)


Private enterprise in high-unemployment areas in the United States is getting a boost from a mixture of two Federal agencies.


The mixture is the Area Redevelopment Administration (ARA) and the Small Business Administration (SBA) or, more specifically, it is their joint effort to carry out the goal of the Area Redevelopment Act, passed by Congress early in 1961.


The purpose of this act is to help create new jobs in areas with continuing serious unemployment.


The work is carried out with the cooperation of local banks, local business groups and the private businessmen who take advantage of the SBA's and the ARA's loan and technical assistance program.


ECONOMY STRENGTHENED


Fort Kent, Maine, now has a privately owned and privately operated company making cedar fences. Without the help of the ARA and the SBA, this community probably would not have had this company, which has strengthened the area's economy greatly.


The story of the Dumond Cedar Co., Inc., illustrates the results of the Area Redevelopment Act. Fort Kent is in an area of severe unemployment. The natural resources of the area, which borders Canada, are largely undeveloped.


The ARA, established under the Department of Commerce in 1961, worked with the Department of Labor and reckoned that underemployment in the Fort Kent area was serious enough to designate it as a "redevelopment area."


PROGRAM PREPARED


To qualify for ARA assistance, a group of local business leaders, including bankers, prepared an overall economic development program. This program described the area's current economic situation, surveyed its potentials for economic growth, analyzed the resources, and spelled out a program for action that would create employment opportunities.


Such programs must be approved by a State agency appointed to coordinate State participation. Once the State and the ARA have approved an economic plan, individuals in the area are eligible to submit requests for assistance on specific projects.


The ARA assists redevelopment areas in five ways: First, with loans to help businesses get started or to expand; second, loans or grants to finance new public facilities necessary to new industries; third, programs to train or retrain workers, usually in connection with a new industry coming in the area; fourth, subsistence payments, supplementing the State's unemployment compensation benefits, to workers receiving training; fifth, technical assistance from personnel in Federal agencies to help an area plan its program of economic development.


CAPITAL NEEDED


The idea of starting a cedar-fence company in Fort Kent had its roots In the needs and potentials of the area. The major need of the Individual who started the company was capital.


To qualify for ARA and SBA loans under the Area Redevelopment Act the business, or proposed business, must have been refused the necessary loan from local capital sources. This was the case of the company in Fort Kent.


The Dumond Cedar Co., employs more than 40 people. Although this sounds like a small amount, the population of Fort Kent is only 5,000, and the company's payroll is the largest the town has ever had.


As in all such cases, the Federal Government supplied only 65 percent of the necessary capital, which totaled over $98,000. A local bank In Fort Kent supplied 20 percent of the capital, the local businessmen supplied 10 percent, and the owner provided 5 percent. The bank gets an exclusive first mortgage In these arrangements.


LOCAL RESPONSIBILITY


Because of the percentage of local capital required by the ARA program, the brunt of responsibility lies with the locality and not with the Federal Government.


The SBA provides loans for working capital, while the ARA provides loans for the fixed assets. It is the SBA which does the credit check and processes both their loans and those from the ARA. This is because the SBA had necessary facilities for credit work existing prior to the Area -Redevelopment Act, which obviated duplication of such facilities as already existed in other Federal agencies.


Every attempt is made to fit the new Industries Into the economic possibilities of the particular area. Care is taken not to create unfair competition in an area by duplicating existing Industries.


BEGINNING MADE


The work of the Area Redevelopment Act is just getting off the ground, says Edward J. Stewart, director of the 813A office in Boston. The beginning that has been made, he continues, is strong and indicates further progress.


One problem, he says, is that the usually scarce capital put into projects by the local businessmen is tied up, under present regulations, for the life of the loan. Mr. Stewart says he hopes that the act can be amended this year so that this money can be returned more quickly to be used in further investments.


If the work of the ARA were not so successful already, he explains, there would be no attempt to make this amendment, which in effect liberalizes the plan, allowing for more loans and quicker progress in redevelopment areas.


MAINE POTATO COUNCIL, Presque Isle, Maine, June 20, 1963. Ron. EDMUND S. MUSKIE, U.S. Senate, Washington, D.C.:


DEAR ED: At a meeting of the board of directors, Maine Potato Council, held last evening, the board requested management of the council to contact our congressional delegation urging them to support any bills that would provide for additional funds for the Area Redevelopment Administration.


The board wishes to point out to our congressional delegation that the whole concept of the development of centralized storage and packing plants in Aroostook County, believed by the council to be one of the prime needs for correcting the potato situation, revolves around the use of ARA funds for the construction of such plants. At the present time four groups in Aroostook County have applications for loans pending with the ARA. Already ARA funds have been extremely beneficial to the self-help program of the potato industry.


We urge your support of this legislation that has proven most beneficial to the Maine potato industry.

Cordially yours, HAROLD E. BRYANT,

Executive Vice President.

CARIBOU, MAINE,


June 25, 1963.

Senator EDMUND S. MUSKIE, Senate Office Building, Washington, D.C.:


Continuation of ARA activities extremely vital to northern Maine due to low agricultural returns on potatoes during past few years and need of more industrial activities.


JAMES H. PAGE.

 PRESQUE ISLE, MAINE,


June 25, 1963.

Senator EDMUND S. MUSKIE,

Senate Office Building, Washington, D.C.:


We urge your help toward the establishment of a technical assistance grant for the sugarbeet program in Aroostook County. A supplemental crop is imperative to the economy of this area and sugarbeets fill this category excellently. Success of this venture would mean capital expenditures of 20 million plus substantial annual net income to the county's business and farmers. The 260 acres of beets now growing are being financed by local contributions and the Maine Department of Agriculture. Technical assistance grant is urgently needed to complete crop harvest and economic feasibility study for hearings late this fall. Your continued support on additional authority for area redevelopment program for coming fiscal year is requested. The program has done much in helping people of Maine to improve their economic status and its continuation will be of great value to this county. May we have your continued help toward the extended ARA program and In establishment of a grant for the sugarbeet project.

Thank you.


J. ROGER ERSKINE,

Chairman, Sugarbeet Committee.

PRESQUE ISLE, MAINE,


June 24, 1963.

Senator EDMUND S. MUSKIE,

Washington, D.C.:


On behalf of the Aroostook County Rural Area Development Committee, I would like to express my deep concern over the possibility that the ARA program may not be extended beyond this year. Although I realize that you are acutely aware of Aroostook County's problems I will refer to them for background.


The recent closing of the Presque Isle Air Force Base accentuated the lack of industrial payroll for the area and created some temporary unemployment. The decline of the market for potatoes and the deterioration of the price for this product has resulted in severe underemployment and marginal wages in the area.


The rural area development programs in conjunction with the assistance provided through ARA has made significant progress in changing this picture. The Initiative of local businessmen has been stimulated by the availability of Federal money resulting In many applications for loans for some lumber mills such as cedar and planing mills, as well as one of the largest proposed long lumber mills in the area. Although the agricultural picture in potatoes has not significantly changed, many farmers have been given new incentive to try to solve the marketing program through the use of ARA funds In providing central packing and processing plants. In addition to the many small processing plants, potato services in Presque Isle have used ARA funds to increase the size of their operation and expect to double their employment up to a figure of 500 or 600.


Events such as these have given our area a more optimistic outlook on the future. I strongly urge on behalf of Aroostook County that you urge your fellow Senators to consider the good that has been accomplished by ARA and the many opportunities for more effort in these fields that are still available. We are very grateful for your assistance in the past and wish you good fortune in your present efforts.


Respectfully, JOHN TIERNAN,

Chairman, Aroostook County Rural Area Development Committee.

PRESQUE ISLE, MAINE,


June 24,1963.

SENATOR EDMUND S. MUSKIE,

Washington, D.C.:


ARA program has been of great benefit to Central Aroostook. Potato service real asset to us. Give ARA your 100 percent endorsement,


HARRY B. HEDRICH, President,

Greater Presque Isle Development Corp.

TENANTS HARBOR, MAINE,


June 23,1963

EDMUND S. MUSKIE,

U.S. Senate, Washington, D.C.:


We respectfully request that you earnestly address yourself to the successful passage of bill S. 1163 covering increased authorization for ARA funds for the area redevelopment administration program. Our letter follows.


KENNETH P. WILSON, Chairman,

Knox County Regional Planning.

JONESPORT, MAINE,


June 25,1963.

Senator EDMUND MUSKIE,

U.S. Senate, Washington, D.C.:


We urge your support of bill S. 1163, ARA amendments of 1963. Washington County has four areas attempting to improve economic conditions and such funds are needed to add to local support.


VERN MCFADDEN.

PRESQUE ISLE, MAINE,


June 24, 1963.

Senator EDMUND S. MUSKIE,

Washington, D.C.:


ARA has aided us in turning our former military base Into stable industrial community. Please give ARA your full endorsement.

WENDELL PHIL 8,

President,

Presque Isle Industrial Council.

VAN BUREN, MAINE,


June 21, 1963.

Hon. EDMUND S. MUSKIE,

U.S. Senate, Washington, D.C.:


Van Buren Industrial Development Committee urges full support for additional ARA funds vital to economic rehabilitation and industrial potential this area.


 ROBERT MARQUIS Chairman, Van Buren Industrial

Development Committee.

ROCKLAND, MAINE,


June 26, 1963.

Senator EDMUND S. MUSKIE,

Senate Office Building, Washington, D.C.:


Rockland Chamber of Commerce and citizens of Rockland, Maine, strongly urge your support of Senate Document S. 1163 relative to funds for allocations to the Area Redevelopment Administration. On June 14, 1963, the city of Rockland filed an application to the ARA for a deepwater pier terminal on a 50-percent grant and loan basis for $2,570,000 the approval of this project would be a tremendous boost to the economy of Rockland and would bring substantial new employment to the area. Your support of this program will help us to help ourselves to improve the economy of Rockland, Maine.


THOMAS LAPOINTE, City Manager.

JEROME H. BARNETT,Executive Secretary,

Rockland Chamber of Commerce.


KENNEBUNKPORT, MAINE,

June 24,1963.

Senator EDMUND S. MUSKIE, Senate Office Building, Washington, D.C.:


We are greatly concerned over Congress apparent failure to provide ARA with the additional funds needed to assist our local organizations in continuing to provide the new facilities, equipment, and training needed to replace our former textile businesses with modern industries. As you know, an economic study of this area originally started under ARA to cover only the 22 towns designated in 1961 as the Biddeford-Sanford Redevelopment Area is now receiving official local support from all 28 towns in the county. It is being supervised by a committee serving entirely without compensation. The study has already shown new ways of improving business in agriculture and in clam and lobster fisheries. Other constructive findings are indicated in subjects still in process. Biddeford -Sanford and other smaller communities have already benefitted greatly through increased employment and physical Improvements accelerated by ARA rants and loans which supplement local Investments in new industries. It seems clear that this ARA program is Just beginning to be of real assistance in improving the economy here as well as in other depressed areas of the State. It would be most unfortunate to have it seriously curtailed at this time. In view of your continuing interest we are taking the liberty of calling it to your attention hoping that reconsideration of the recent action may be possible.


LEWIS K. MARSHALL,

Chairman, Biddeford-Sanford Area Redevelopment Committee.


Mr. MUSKIE. Mr. President, nothing could be more damaging to the spirit which this program has created than rejection of S. 1163. This is a good program; it has not and will not work miracles, but it has and will make a positive and substantial contribution toward meeting the economic problems of our undeveloped areas. I strongly urge its favorable enactment.


Mr. DOUGLAS. Mr. President, I commend the Senator from Maine not only on his eloquent testimony as to the need of ARA, but for the constructive work which he has accomplished in promoting it. I only hope the contrast between the predictions of the Maine Chamber of Commerce and the realizations may be borne home to everyone, from Kennebunkport east.


Mr. MUSKIE. I thank the Senator. It has been a privilege for me to work under his leadership in developing and pushing this measure to its enactment 2 years ago and now. The program was well started before I came to the Senate. It has been a pleasure to follow the leadership of the Senator from Illinois.


Mr. DOUGLAS. The distinguished Senator from Maine has been a member of the Banking and Currency Committee ever since he joined this body. He has been of great help to us in the formulation of the legislation and very constructive plans. I am glad he has urged the cause of the Old Town Indians so that the needs of those on the Penobscot may be well cared for.