We are - as I am sure you are all painfully aware - in the midst of our national biennial stock-taking season - that period when the "in's" "point with pride" to the same record and conditions that the "out's" "view with alarm." I would like to deviate somewhat from this customary fare of our election season and discuss with you this afternoon - in a non-partisan fashion - the progress that we have made in Washington in our efforts to restore the New England economy to a healthy condition; and the problems yet to be resolved, and progress still to be made, in this area.
Fundamental, I think you will agree, to the recognition and treatment of the economic ills of New England has been the formation of the first New England Senators Conference. Since the first formal meeting of the 12 Senators from our region, called by Senator Saltonstall and myself early in 1954, the members of our delegation have exchanged information, opinions and viewpoints, without regard to party affiliation, on issues of common interest to the six States of New England. We are not a voting bloc, although there have been many matters of particular concern to our region upon which we have taken joint action. One example was our successful efforts in behalf of the Yankee Atomic Electric Company's application for a license to construct a reactor here in Western Massachusetts. Another was our letter to and meeting with the Director of the Office of Defense Mobilization to protest any Governmental action restricting the importation of fuel oil so necessary for our industries and for the heating of our homes. The experience of our first three years has convinced us of the usefulness to New England of these periodic meetings; and they enable each of us to better discharge his responsibilities to the citizens of his State, and meet the problems of particular interest to our region. Permit me to mention ten of these problems briefly.
(1) The problem of migratory industry - Perhaps the most serious problem besetting New England in the recent past has been the migration of industry to the South and West. An excellent job has been done by many of our local Industrial Development Commissions, established through the efforts of local Governmental units, and by the intensive drive of many of our private citizens concerned about the economic plight of their communities. They have done a laudable job; but action on the Federal level was also necessary. I am glad to report that we in the National Government also have a list of achievements in this field worthy of note.
As a member of the Senate Labor Committee, I opposed the amendments to the Taft-Hartley Act which would have encouraged additional States to adopt the badly-named "Right to Work" laws, the prime inducement for many runaway shops. Our efforts were successful and the amendments were sent back to the Committee, never to be heard from again. We successfully urged greater funds for enforcing the minimum wage laws and a policy of granting minimum wage learner permits only in proper and legitimate instances - two factors which are important in eliminating "unfair" competition from other sections of the country. I might digress here a minute to note that although the strains of "Dixie" arouse different reactions in me than they did before that long Friday afternoon last August in Chicago, my attitude towards competition between regions of the United States for industry remains the same - namely, the natural advantages each region has to offer can and should be exploited to the fullest possible extent; but "unfair practices" should not be permitted as inducements for runaway industry. In the first classification, that of legitimate advantages, I place such items as a bountiful water supply, good climate, a competent and adaptable labor force, and nearness to markets. Unfair practices include violations of minimum wage laws, the use of municipal tax-free bonds to build factories, and the maintenance of varying minimum wage levels in different parts of the country for work done on Government contracts. It is not difficult to distinguish between the two and I shall continue to oppose those in the "unfair" group.
(2) The problem of labor surplus areas - It is disturbing to me - as I am sure it is to you - to realize that in this general period of prosperity there are islands of economic distress. Although significant steps have been taken to correct this situation, and although the problem is not so acute as it was a few years ago, there are still over 62,000 unemployed in the State of Massachusetts, and Lawrence and Lowell remain on the Government's list of labor surplus areas. We have developed some highly satisfactory devices for guarding the economy of the nation as a whole and for taking preventive and remedial action when danger signals in that economy are apparent. To those communities which are in economic trouble on a local scale, the problem is just as real. Many - as I have indicated earlier - have been able to assist themselves; others need immediate help. I regret that the House of Representatives did not agree to the Senate-approved bill introduced by five of my colleagues and myself which would have provided a program to meet this need. This nation's credit and the technical knowledge of our Government agencies should be extended to those industries in distressed areas desiring to modernize and expand their operations, thereby bringing employment to their communities and reversing the downward spiral of industrial activity.
(3) The problem of power - Atomic energy - the most threatening and at the same time the most promising natural resource the world possesses - holds one of the most important keys to New England's economic future. We know we are at a great competitive disadvantage with our Southern and Western competitors insofar as electrical energy is concerned - the same power that costs $8.28 in Springfield and $9.53 in Boston, costs $5.00 in Chattanooga, Tennessee, and $3.20 in Tacoma, Washington. However, the prospect of cheap power for our region from atomic energy is a tantalizing goal which more and more seems capable of attainment. I was gratified when the Congress accepted my amendment to the Atomic Energy Act and gave preference to areas with high power costs in the location of reactors, for surely atomic power will be competitive with conventional power here in Massachusetts long before it will be in other areas where hydroelectric power is more abundant. Similarly, there was encouragement in the successful application of the Yankee Atomic Power Company for a license to construct a reactor. The City of Holyoke has also had encouragement and support in its efforts to participate in the atomic reactor development program. Its application is still pending. The earlier and more extensive our participation in this hopeful field, the sooner the benefits of atomic power will aid our area.
In addition to the hope afforded by atomic energy, there is the possibility that some power from the new St. Lawrence power project can be made available to Western Massachusetts. We are a considerable distance from the generating site, but the Federal Power Commission is considering the application of Massachusetts for a portion of that power. The feasibility of harnessing the power in the great tides at Passamaquoddy in Maine also continues to have our interest and we are presently awaiting the report of the Corps of Engineers on that question.
(4) The problem of transportation - As our nation's population center has moved westward, New England's geographical location in a relatively remote corner of the United States has made the problem of transportation a crucial one, particularly to a manufacturing area like southern New England which, by and large, brings in raw materials, processes them, and then ships the finished product to the distant markets of the country. The New England Senators are very much aware of the importance of national transportation policies to our region, and we have sought to have those policies re-examined in the hope that the present discrimination against New England will be eliminated. At present we find that ocean cargo rates are "equalized" so that a European shipper pays the same ocean rate to ship to a South Atlantic port such as Baltimore that he pays to Boston, even though the Boston run is hundreds of miles shorter. When, however, his goods are transferred to railroad cars at the port, he finds it is cheaper, under present rate schedules, to ship from a Southern port to the Midwest than from Boston. This inequitable "squeeze" will continue to receive our attention until the situation is corrected. The railroads serving New England ports are presently seeking to establish rates competitive with Southern rail carriers, a program which has the support of all New England Senators and the numerous shippers of this area. I have been especially interested in the efforts of railroads serving Boston to secure approval from the Interstate Commerce Commission to carry iron ore from Labrador to the midwestern steel mills at rates which will attract that lucrative business to the Port of Boston. I might add that our success in securing increased air service to New England was heartening, as was the Federal Government's agreement to participate in the rehabilitation of the Boston Army Pier.
(5) Problems of the fishing industry - High on the list of recent Federal legislation benefiting New England has been the Kennedy-Saltonstall Fisheries Research Act which has made possible extensive studies in the techniques of harvesting, processing, distributing, and marketing fish. The first three experimental years were so successful that during the last session of Congress the program was made permanent. But as helpful as this long-range program is to the industry, immediate aid is also essential. A ten million dollar emergency loan program was authorized by the Congress to provide much-needed credit to fishermen so that their vessels and equipment could be repaired and modernized. At the same time, Congress ordered a reorganization of the Department of Interior to ensure that the lack of emphasis given the problems of commercial fishermen by the Department in the past would be remedied. Yet another significant law enacted to aid the fishing industry will provide an educational program for fishing personnel so that the benefits of increased knowledge of fishing techniques can be translated into practical results. All in all, the fishing industry has received more attention from Congress in the past three years than it did in the preceding thirty.
Moreover, the Tariff Commission last week recommended to the President that the tariff on groundfish be increased to alleviate the "serious injury" suffered by the industry. Indicative of this injury is the fact that the Boston Fishing Fleet has declined from 110 vessels at the end of 1951 to 80 at the end of 1955. During that same period the domestic production of groundfish fillets declined from 148 million pounds to 105 million pounds, while imports increased from 87 million pounds to 128 million pounds. All of us who are concerned about the plight of the domestic fishing industry are hopeful that the President will accept the latest recommendations of the Tariff Commission instead of rejecting them as he did in 1954. I am in complete sympathy with the policy of increasing trade between the United States and the other countries of the free world; and I know that we must do everything within reason to bolster the economy of our friends. But, in so doing, we must not lose sight of the difficulties imposed on certain of our domestic industries as a result of these national policies. Every means for distributing the burden of this program must be employed to ensure that our more depressed and vulnerable industries do not bear a disproportionate share of that burden.
(6) Problems of the textile industry - The American textile industry - and especially that segment of it located in New England which produces higher quality textiles - has also been plagued with drastically increasing imports. But just this month we have achieved an agreement by Japan to curtail her cotton exports; and a decision by the President - aided by our persistent prodding - will raise the tariff on woolen textile imports from 25 to 45 percent whenever imports equal 5 percent of the domestic production, in keeping with the reservation written into our reciprocal trade agreements on woolens. In addition, the Senate this year approved a resolution, backed by the New England Senators, calling for a complete investigation of the textile situation by the Tariff Commission; and it is to be hoped that the results of that investigation now proceeding will be further beneficial. Our successful efforts in connection with the minimum wage and its enforcement, and in effecting higher nation-wide wage levels on Government textile contracts, have also been helpful to New England.
(7) Problems of agriculture - Our New England farmers have not been immune to the problems experienced by their counterparts in other sections of the country. In fact, we have frequently found that action aimed at solving agricultural problems elsewhere has only aggravated our New England situation. The artificial support of basic crops at a rigid 90 percent parity figure has resulted only in higher feed grain prices for our dairy farmers. Similarly, any effort to limit the importation of feed grain into this country makes more untenable the position of New England's farmers, and, accordingly, we have opposed legislation aimed at that goal. Other Massachusetts farmers face special problems: the cranberry farmers seek to come within the agricultural marketing program; the cigar tobacco growers need the kind of relief represented by the new soil bank program, and Federal funds to combat the gypsy moths, so destructive to many farms, were increased with the support of all the New England Senators.
(8) Problems of small business - Our nation's generally prosperous economy has tended to obscure the problems peculiar to small business, upon which our area depends. Small business failures and mergers have increased alarmingly, while at the same time their share of the Government's business has suffered a marked decline. Most Massachusetts small business men who responded to a letter which I recently addressed to them indicate that the most needed reform is tax relief. Of course, I have yet to hear that any segment of our American economy has demanded increased taxes - the unanimity of view on the need for tax decreases is phenomenal. But it does seem to me that the case for small business tax relief is unusually strong; and there is reason to hope that the Congress will give favorable consideration to legislation along the lines of that which a number of my colleagues and I introduced in the last Congress.
(9) The problem of floods - The tragic floods of 1955 created an extra and unexpected strain on our economy. Many plants which had experienced devastating floods were reluctant to rebuild in the same areas, thereby risking repeat performances, and understandably so. Our efforts to achieve a comprehensive and effective flood control program for New England have met with at least initial success. The Congress this year appropriated 25 million dollars as the Federal Government's contribution to flood control projects in our region, a vast increase over appropriations of earlier years, which averaged around three million dollars. Furthermore, a flood insurance program on a limited and experimental basis will be undertaken by the Federal Government patterned after a proposal which I introduced at the beginning of this year. Of course, it is not feasible to eliminate all floods by control and all losses resulting from floods by insurance. But we can minimize the damage and spread some of its financial burden over our total economy.
(10) The problem of tax drain - A continuing, difficult and sometimes almost intangible problem is that of the heavy net tax drain which operates upon our region by virtue of the various Federal programs. No region expects to get back, in the form of grants, services and projects, all of the funds she sends to Washington - but the nature of many Federal programs, and the formulae by which their funds are distributed, are particularly injurious to our area in this regard. The recent highway bill demonstrates this problem - the bill initially recommended by the Public Works Committee was most unfair, but I am glad to say that the compromise formula ultimately agreed to by the Congress, as a result of our insistence, treats our region fairly. Our task in Washington is not only to oppose unnecessary expenditures and wasteful projects, but also to be alert to our own area's needs to share in planned and existing programs. Much, of course, remains to be done - in the fields of unemployment, transportation, power, stream pollution, unreasonable competition from imports, industrial dislocation, distressed areas, and the special problems of small businesses and agriculture. But I believe there has been a desirable improvement in the attitude of the Federal Government toward New England - and in the attitude of New England toward the Federal Government. If each will continue to recognize the importance and the proper role of the other in the solution of these problems, we may look forward to a better, a greater, a newer New England in the years that lie ahead.
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