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THE

COURIER-JOUR AL, LOUIS ILLE, KY.

TH RSDAY

fOR

·r

G

Ab out East K en tu c k y

Caudill Says He Knows More Than Fantus
By JEA HOWERTO
Former Slt&amp;te Rep. Harry M. Oaudill of
W1hite&amp;burg, who comes in for bot h
praise and criticisl!L in t:he. late t Fantus
industrial action report, made t:his comment to •a reporter yesterday:
"l figure I know more about economic
growth in Eastern Kentucky than Faatus
does. '

He added, that "the Fanlus crnwd" has
come lo conclusions uha are at variance
with other surveys, uc,b a.s one by the
F ord Foundation.
"These hasty repor,Ls like F,a ntus
made. . . . They ( those making L1he
study) just flit through." He aid a man
from Fantus talked to him "a couple of
hours."
The Fantus report said Caudill, in his
book "Night Comes t o The Cumber•
lands. " ''has made a contribution of real
originality, humantty and intellectual
courage which few olhers have been
able to bring to so difficult a subject."
Charges Economic Amnesia
1' hen it accu es Caudill of •·a form of
economic geograP'hY amnesia" in his
latest writings, including "Misdeal in
Appalachia" in lhe June Atlantic
Monthly.
1

Say the Fa ntus repor t:

''Mr. Caud!ill doe his cau e a disservice by recklessly extending his
original and often valid
umberland
Plateau arguments (·c overing 19 Kentucky countie ) to alJ of Appalachia ....
One coultl have greater confidence in
'Mr. Caudill' charges of a 'misdeal' if
it were not so painfu11y obvious that he
does not hesitate to stack the deck to
deal hi m eli a full house of dangling
comparisons."
The rnpoiit says Caudill overlooks
uch t hings as "pionee1'ing" by private
industry,
·' fine" public sewer and
water system,; and "re markable" indu trial growith in parts -0f Eastern
Kentucky.
Oaudill's an wer &lt;to this charge, in a
telephone interview yesterday
was,

"There is a -g reat deal going on in Eastern Kentucky but practically aiJJ of it is
with public funds ."
He cited a waler p lant ·housing-project and road project at Whitesbu,rg and
•a sewage ystern at Jenkins.
Says Non E mploy Many People
"These :things give ~he impression of
great activity and prosperity " Caudill
said, "but what they will effect on a
permanent basis remain to ·b e seen.
None of U1ese pr-0jects is employing an
appreciable number of local people."
Oaudill's point is that •t he trouble with
Appalachia is not a lack of wealth but

a lack of confidence in t he area on the
part of tthe 'busine.ss comm.unity.
He cited Pike County as ' one of t he
richest countie in 1the state with $46
million on depo it. But Pike County has
some of the most remarkably wpoveri hed communities in the state. The
WP A built the chools, the people didn t.
'Phey took their wealth out of the county.
Says Wealth Leaves U ntaxed
"W·hat we ·have t-0 I-ind are w,ay;s to
get tha't wea lth into chool
health
facilities and 1·oads, then industry will
come to those areas.
"The weallth flows out of Eastern Ken-

lucky untaxed. Our sch-001 are supported by the do,I e-the minimum foundation program - and a t'hird, o.f the
people are on i:elief. "
He told of ·an Ea lern Kentucky
woman who wanted to enliarge her furniture business. Three Eastern Kentucky
!banks ·turned down her request for $12,·
000, which she finally got from a Lexington insur.ance company.
ln a humorou aside, Caudill said a
new paper in Johnson County criticized
·hi book, saying there was a boom on in
that county.
• The nex-t week," he aidi, "tl1e paper
went out of business, bankrupt."

�5

K.

H

1965

Fantus Suggests Remedies
On 'Negative Impressions'
has been a tendency f'or state and local
people to abdicate their roles as spokesmen for this progre and alilow the mat.
ter tio be handled by press releases from
one federal agency after another-which
carry liittle weight with industrial pros-

Report Cites
Eleven Beliefs
On East Region

pee .

Wants Rerord

.•
.,·
"•

to

industry, it must be the Kentucky Department of Commerce. Before it can do
1lhis, it needs to put the record straight
on
eX'actly wllat developments now
make the area educationally more attractive Ix&gt; industry, B how uoh programs
are coordinated, and C how quickly and
under what conditions they can go illlto
action.
In our judgment the effort calls for a
sizable public relations program. . . .
Possibly one facet would be to establish a nwnber of c~ll.ege soholanships to
be awarded promlSli:tg young people
ready t ~ make a comnutm~nt to return to
th_e reg1~m upon graduM!10n and work
w1•1Jb bheU" home folk. This could be re•
garded as a kind of "seeding" program
f1or future development.

Courier-Journal Bureau

&lt;

traight

If there is to be a chief pokesman

FRA KFORT Ky.-Fantu Area Research, Inc., in it, "blueprint !or action"
for Economic Region C compri ing 38
East Kentucky counties, said no realistic
program can sidestep the "negative impression " that exist in the minds of
out ide busine s men.
It listed 11 impre sions about East
Kentucky that Fantus said were either
untrue, misunder tood or distorted and
uggested remedies in each area.

Stiff MIi'

UNSHADED COUNTIES ARE D E ALT WIT H IN FANT US REP ORT
The n um b ers rep resent area s referred t o in the report

less encouraging. Brighitest spot Me ex- slowdowns, with a number being fi nished
tensions of Mountain Parkway. Of the ahead of schedule.
several , Quick Start" road corridors anThere appears to be no inevitab~ity
n unced by the Appalachian Regional
The shades of opinion on tbe 11 imthat District 50 U.M.W. will automaticalC
•
•on
the
more
·gnificant
are
pre ion range from disintere t and
thC:!°t:1th; Whit burg locaie. Both in ly organize or even give trouble. to new
polite skepticism on the one hand to
operations entermg the
fact and in impression, th,js is now ~ne of manufacturing
deep distrust and disfavor on the other,
area. By inference from t alks with r ethe report said.
4 . Inadequate Communit
the most remote area in all oI Reg111otn le. sponsible Jooal leadership it can be
.
.
In the past apparentlf, not a
e e- reasoned that unorganized plants can
"It may be impos ible to budge the
"WRON G" IMAGE OF
Facilitie
phone service in the region has been of operate there or that reasonable conposition of the Ja.tter groups," the re~r
the highest capability. . . . ~Y. year-end tracts can be negotiated.
EASTER N KENTUCKY
asserted. "It should not be impos rble,
Except for Asltland and possibly Har- 1965 direct long-distance dialing from
however, to awaken interest and dispel
lan. individual communities have not the '(Ashland area) phone user's own
It Js difficult, howe er, to see any
skeptlci m, where it exi ts, i! it can be
all of the management skills that are been ucce sfttl in achieving any particu- sv,,;tchboard will be available.
early end to the "Bloody Harlan" image.
honestly demonstrated that many of the and
lar identity.... in the outside world.. ..
ot only is the turbulence continuing,
belief mentioned re t on misinforma- a part of the free nte11pri~e ystem ....
Reports of mail service a;e less en- but much of it is rationalized by some
Industrial prospects tend to think of
tion, half-truths or evidence that is no
the region as populated wiith backwoods couraging, tr aced to compl~mts . ~f the spokesmen on the basis that "this ls the
2. Inadequate Trainable
longer valid."
inflexibility in handling ma1l-ng1d a~- only way local people have of expressing
mining camps ....
Labor up pl
herence t o long-established rural mail themselves, and it is the only language
Here are the 11 beliefs and the
delivery r outes.
Communities
which
apl)ear
trong
in
the other side understands.''
report's comments on each :
.Alitfuough recognizing the region as water and ewer capabilities and natural
The picture for motor carri~r er~ce
one of }abor urpluses, mo industrial- gas service ll!I'e:
is mixed because some carne:s with
Whatever truth -t here be in that enti1. Avoidance Of The A.rea By ists doubt the ability o! the communities
good connections do not have nghts or ment it will hardly be accepted by outto supply the kind of manpower they
Ar a 14-London , Midcill.esboro, Som. do not exercise them to come up_ t~e side 'industry. Loud voices of local proational Firms
need. . . . Feelings are expr ed that!. erset, Will~amsburg, Pineville.
Big Sandy River. As a result, 1t 1s te t would make an impression.
The general impression of many out- "the cream or the labor force le,ft many
neces ary for the shipper to settle ~or
side busine smen i
that Economic years a.go."
Area 15- Irvine, P~ville, Pikeville, two- and three-line hauls that delay shipRecommendations tate can and
Officially, facts that upport these im- Pre ton burg.
Region C i an induslrial wa teland
hould publicize the good. Unfort_unatements.
pre
ions
are
being
circulaited,
uclh
as
shunned by national firm . Thinking on
ly, it cannot hide the bad , but _1~ can
r a 16-AS'hland, oaUevtsburg, Lou.
the ubject ha been conditioned by one- "statistical profile " of the Area ReRecommendations-- ever al cour es of show that this i not charaotenstic of
isa,
Maysvil!le,
South
bore.
ided Appalachia "documentaries" and development Administration, but the e
action are indicated. First, th!! activity
1£ gas is eliminated as a requistte, of private aviation in the region needs the region at laxge.
distorted by federal emphasi on haky are ba ed on 1947 to 1959 data . . . .
Recent surveys of labor force in area these qualify on the basis of their water both publicityand encouragement. Secboot trap programs as a cure-all for the
Any change in the Harlan County
. axe in remarkable agreement on three and sewer ,y terns: Monticello, and pos. ond the near term completion of certain image can only come about as a re ult of
region's imbalances.
sibly
Whitesburg,
Fleming
burg
and
key
points:
road links requires emphasis and dif- local efforts In both words and deeds
Facts are that manufacturing firms
I . 'I1he ratio of applicanil:s to jobs of. Cumberland.
ferentiation from the long-term r outes that demon; trate there is and will conwith two or more Kentucky establishments employing 50 or more persons fered exceeds ten to on .
programmed for the area.
tinue to be an end to bloodletting and
lialn Motels Ab ent
2. Roughly 60 per cent of ,fille male
Third, pre ent mail and telephone violence.
provide between 5,000 and 6,000 jobs
in the East Kentucky region, including applican'ts and lha:Lf of 't he female regis.
Chain motels, even in the Ashland service cannot be taken for granted as
apparel, footwear, food processing, 'l!rla111ts are in the 17 to 34 age bracket.
area, are conspicuous by their absen e, it can in many parts of the country. Both
7. Poor Living Conditions
tobacco. chemicals, stone, clay and glass
3. Approximately half of males and 60
manufacturers.
per cent of females have completed one
Tational magazine articl~s. television
or more year of high &lt;ihool. A third are
documentaries on Appalachia, and books
12 Companies Have 16 Plants
high ISC:hool graduat .
like " ight Comes to The c umberWi.tlrln the region there are 12 such
lands " by Whitesburg attorney Harry
Recommendations-If
llhe
Kentucky
companies with 16 plants. 10 of them
Caudill convey the image of a povertyDep,artmen1
t
of
Commerce
can
get
a-cro
s
eith er nationally-known firms or subridden r egion without hope.
the
idea
tbat
the
region
does
in
fact
haye
stantial businesses with headquarters
Although Caudill's book was about the
subsmntial manpawer resources of uit.
outside Kentucky.
19 counties of the Cumberland Plateau,
able age and. education profiles, tt will be
suc-b are the quirks of semantics that
The r egion contains r oughly one-fourth a major acbievement. .. .
Cumberland Plateau b as been transof the state population and 11 per cent
There must be less emphasis on llhe
muted into virtually a synonym for Apof its manufactu ring employment ... •
region as a ociology labora1iory and
palachia.
n.n n,•&amp;~onUna- wh,aJ ttu:._ 1n.dJustri;al
.ff'ln&lt;r'P

8. Unnecessarily High
Labor Rates
nle s it i the coal miner's "scale,"
i't is difficult to know what trangers
to the region have in mind when they
say labor rates are unnecessarily high.
Within Region C can be found both
the big steel wage pattern at Armco
and the federal minti.mum. In between
are a num ber of earning patterns which
appear more with regard 11:o industry
than to locale.
Where industry-by-industry comparison can be made, straight-time average
hourly earnings in the region are closely
similar to those in the smaller urban
and rural areas of the rest of the state.
There Is little basis for the contention
that labor rates of semlskills in the
smaller urban areas are unnecessarily
high-or even liigh.
Interestingly enough, even ~he coal
miners "scale" does not necessarily mean
the sacrosanct $26 a day. It can mean
and often does mean $24 or $18 or
some other figure r eflecting the realities
of ithe situation.

9. Low Productivity
iany agricultural areas start with an
advantageous 'image in the minds of
prospective employers, associating the
off-farm worker with responsible atti&lt;tude and good· productivity in the
faotory.
Very liittle of Region C is agricultural and does not enjoy this favorab'le
image. Conversely, it conjures up an
unfavorable image associated With lar ge
welfare rolls, the mining tradition, and
"mountain folk." lt matters not that
large parts of the region are neither
mining nor mountainous areas. It is
popular and easier to demonstrate the
oppo ite in 'documentaries."
certainly, the Region's coal mining in•
dustry and its teel, petroleum refinin g
and chemical industries are measurably
among the most productive in the nation.
By: t e same ardsticks. man.:r of tla•

l
I

I
1i
t

�.J..U.~

1.1;;\,:UJ,U

.I

.:lllU,l/1.l.)UJO,.l.)'

ovvu uu "'

little publicized."
Flaw in the picture is Area 15 which
heretofore has been devoid of big
manufacturing names. With upcoming
ttnits by Lycoming Shoe Corp., this area
joins other parts of East Kentucky as
having attracted outside investment.
Recommendations Department of
Commerce should empha ize the operations of big business in Economic Region
C and de-emphasize the haky bootstrap
programs that mar this image. The latter
and the "badge of ppalachia" undermine confidence of outside business
management.
great deal must be done at the local
level, otherwise di cordant notes can be
expected. Because of a long and involved
history of extractive industry managed
from the outside, many local people
have over-reacted to a point where they
declare they have no intentions of their
land ever again becoming another
Canada-that is, with its economic
de tiny determined in Detroit, Chicago,
New York and so on.
Yet these same people seem perfectly
willing to lhave t heir economic destines
determined in Washington. They have
become preOC&lt;.'upied with tourism and
na tu:ral re OUJ'ce . . .
Jf rl;he region has one need tihat !ltands
above all o thers, it is furtheT "coloniza.
tion" by out9id e industry. In e ery instance, sucm colonizatio,n has brought
in.to the region management, sound busirre s ·t hinking, people--0nd staible pay.
rolls.
Call Vent nre Dismal

In oon-lras1:, the :record of fe:derallyflnanced local manufacturing verutu.res
has been a di mal on-e, sta.I,ting with good
i.nitentions and political appea!, but lackmg hard-headed oommercial eval uation

prospect want's to know . . ..
Likewise, t'here is a great deal more to
be learned from the schools . . . . Few if
any of the school
uperin endents
sparked to the idea that t hey should help
in sheddin g lighit on the m11.npower reources of their areas.

3 . Substandard Education Levels
Most industrial prospects wttJh negative
.impressions of the region tend oo link
"lack of labor" with "poor education . .. "
In 14 of t'he 38 counti adult illiteracy
ranges from 20 to more tlhan 30 per cent .
The problem is yielding to government
programs but progress is 1JOl:1tuously slow
beoau:se illite:racy is concentra ted in ~he
older age groups to whom learniing is an
uphill batfile.
Illiteracy of fathers and mother , coupled wilth high birth rate , also helps exp1ain w'hy h iglh school dropornt Nlltios are
higher, and why many pupils are e~
rolled in grades several years behind
theiT ,a ge group at the time 'they quit
schooll..

1.'lhe l'egion is still engaged in catohing
up with the rest of the s-taite. Wiit!h about
a fourth of Kent ucky's population, it will
produ~ less 'than 22 per cent (.9,000) of
it.s high sdhool graduates.
The fom.- sb.'Ongest forces for change
aTe
a new generaition of parents who
pos ess high chool diplomas, B increased federal aid to schools, C emergence of community colleges having areawide significance, and D reshaping of
vocational tl.'aiining programs to meet
particl.l'Lar area c&lt;:mdiition.s.
The area is expot·ting trainees and
graduailes fa er than loca-1 indusrtries are
a'l&gt;:sorbing output.
Recommendations-Educational prog.
re and manpower training in tJhe r egion
owe much to the he~ping hand of itlhe federal ,:rovernment. Becau e of this, 1lhere

ays Book May Be

seru.1
in;fficient and therefore low in produchould Kentucky's ind'UStrial develop- tivity.
ment representatives pretend the Caudill
luch of the burden of demonstrating
book does not exist? It could be possible
that this work may yet turn out to be a productivity must rest 011 •the area vouseful tool of industrial development for cation&amp;! schools. . . . The good work
all its imperlect understanding of what of these schools in developing productive skills has failed of recognition in
makes for economic growth.
staff P hoto
For one thing, the book can be a the past.
COMMUNITY COLLEGES LIKE PRESTONSBURG ARE
backdrop against which to spotlight the
10. La.ck Of Industrial
islands of change that can be seen deHELPING AREA
veloping on t he Cumberland Plateau
Plant ites
since 1962.
Restaura•n t facili.ties are few and far be- existing conditions and possibilities for
Most businessmen who have r ead
There are islands which take shape as
tween . .Much of the r estaurant trade gen. improvement need study.
individual communities within the sub- cert.a/in national magazine articles or
erated in A!shland goes "•across the rivr egion. There are also islands which ap. who have been exposed to certain T V
As to r oads, everybody knows they are pear within individual communities. One programs cannot be expected to picture
er" when ilt wants a drink.
eve.I'thei!,ess, good overnight accom- going to be built. • , • But , •• t he indus- has only to stand on the campuses of the Region C as having industrial plant
modarums for businessmen are available trial prospect needs to know those which Prestonsburg Community College and the site ....
in the region, such as 1llt Pikevi'lle, ·P aints- will definitely be completed in the next Southeast Community College to apFully developed sites, or readily.
ville, Somerset, A hlian,d and l\liddles- year or two.
preciate this sober truth.
developed ones, can be found in:
boro. ot onily &lt;!Jha,t, but the state park
urther, too much emphasis on the
Area 14-Middlesboro, London-Corbin,
system offers a number of fine lodges,
The odds for enticing plant managerial
arterial r oads program takes attention know-how into the r egion may increase Somerset, Monlticello, Barbourville, Wilwhere food service is uni:f\ornlly good.
away
from
the
lengthening
agenda
of
Plainly, none of t hese fiadts fits the
if the plant manager is in his late 40s or liamsburg, Mount V-emon.
stereotype of the region which stamps other local road problems-the "swing- m.id,50s-a man with grown-up children.
Area I S-Paintsville-Prestonsburg, Irout an impression that 1lhe area is pre- ing bridges" that isolate both people and His housing needs will be easier to vine-Ravenna, Tri-cities, Jackson-Quicksome
potential
site
areas,
also
farm-todominantly one of decrepit coal mining
satisfy. Inadequacies of schools and youth sand, Beattyville.
market roads that need upgrading.
programs may be less of a deterrent to
towns.
Area 16-Maysville, Flemingsburg,
Recommendations-There are feeliil'gs 6 . Militant Unionism And Coal him.
Owingsville, Grayson, and Greenup-toin the region th~t it is a stepchild of
He must see more evidence of the Louisa sector, including Ashland.
Fr-ankfort which only gets attention in Field Disorders
progress that Mr. Caudill calls for.
election years. There are al"s&gt;O feelings
11. A History Of Flooding
Feat· of the Ea.st Kentucky labor force, This takes in a great deal of territory
that the utilities are not doing all they
and
includes
both
near-term
and
longfear
of
labor
turbulence
and
anti·shooild or could. There are two s:ides to
... It is doubtful rt:hat any pveconcepllhis. One that should not be o\rerlooked management attitudes in the coal fields range measures.
The near-term measures continue to tion of rt:he region as one r avaged by
is 11he $7 million expain-sion progam of - these two fear more than anything
lag badly. F or all the emphasis on the flood waters has been a pr+ime factor
Kentucky Power Company wihich will else have given East Kentucky its repu- unemployed
fathers program and Presi- to discourage new plalllt 1ocations. Other
tation as a "high risk area." •.•
bring many facilities to 1Jhe region.
dent Johnson's goals of beautifying the factors, already identified, undoubtedly
Oonditions are changing, but even the countryside, the elimination of eyesores carry more weight.
Pennsylvania Utilities Cited
recent record is spotty in a number of -dumps, auto junkyards and littered
Beyond the assurance that can be
The other sid~ concerns the amount of respects.
streams- is being t ackled in a desultory given of flood-free sites, some way must
aotivity devoted to recruiting ourtside inbe found to show how the many flood
fashion.
The good and bad include the followdustry. For example, when com!I)arisou
control projects and programs affecting
ing:
are drawn wit!h other parts of coal-minWe recommend t hat it become a crash the region will also aid in keeping the
ing Appaladhi.a___.1Jhe a•n thradte region of
program with highest priority. At last r oads open and passable during heavy
1. Generally goOd labor relations of acconnts there were possibly 5,000 East r ains....
Pennsyh,ania is a case in point-the
area development efforts of electric utili- manufacturing firms operating in Area - Kentucky familles taking part in the unThere should be careful scrutiny of
tie in East Kenrtucky appear under- 16, exceptions being opecations of brick employed fathers program. Within their possilii.Ji&lt;ties for installing culverts and
and clay workers at Olive Hill and More- ranks should be found more than enough other forms of storm drainage on
manned and ineffectual.
head, and the shutdown of Harbison manpower to implement this recom• stretches of road known to be trouble5. Poor Accessibility, Poor Walker plant at Olive Hill.
some.
mended crash program.
2. Generally favorable labor relations
"~l'u 11 s avurs aaop seq alj sv
Co mmunications
u.uu ..
tSUt: .. d -i-6)\
in Area 14, except startup Of Crane
•,{area ·r ip.1,eq;im .TOAllW
Many outside business executives have facility at Somerset, difficulties at Coroq &lt;&gt;q~ puno.re iu1q;,.1ew JiO ;qi1u
misgivings that satisfactory oommunica- bin in 1963, and a contested election at
the Somerset plant of General Electric.
tion can be ac'hiev-ed in 1Jhe region.
asao;i q:µno:,. SlJ.1 pa.wp.ro lep.rai .1ap.ro ipae N.111 aA.rasa.rd, prno..r. s.radOO.Jl
1-1-e-is ~.e q,11 pa.8pa1d JOUJ.a,1.oi aqJ,
Facts are that schedu!led air service is
.iapea,, si,q.8p ffAf:&gt; 'o2eafqJ u1 .A
oal liners' Ranks Split
avaifable at KellOV'a and at London-Cor·saaue:AaT.tl!I
bin . Primary facilities used outside the
3. Splits in ranks of coal miners in
T!lf:&gt;e-Ji 0 1JM.tirq.ra oi pauuoiJ &lt;Sr a~i1w
:;,.1,ln{mt1s73
region are fille •airports at Lexingiton, Ciu• Area 15. Bargaining units now include
;tuoa 1e-r.&gt;~J!q 1! mun Alll.S Ol P&lt;&gt;&amp;OA ..ratjjjl
United Mine Workers, the Progressive rtM. ..r.a.,puv '11n.i;ia,1 au,.rew a1rq.v. e, iunl?J !ll,\\ U}lll.t 2.0f.AIJP ~ -qi8rioq1iJiV
cinnati and Louisville ....
e1s a41 .lOJ sa2Je,q:&gt; J.ap.mru ao i;rer
Principal volume o( sutiace traffic Mine Workers and the Southern Labor
S!SIJ:) OJ, pa'I iaafo,ld l &amp;1JOA
uses the fountain Parkway, U . . 23, U.S. Union. Also on t he inerease are non- soi: l r.rea .qaqq ur sao.rZaN o,v..i ·
25, .S. 60, U.S. 119, U.S. 421 and U.S. union mining operations and the
'UM.el asnoq~.mo;i sn;:,,!.rawy a{(i uo soon
·a;iuaiorA pue, su011e~s •1sod dn ){OOl s..ro.ie.iisuomap alirtf&lt;M. pu~
460. Under construction are extensions of prevalence of ' sweetheart" contracts.
P
JiJO
p;;}If:&gt;11°'
1
1
s1q~
'.uo~:&gt;aJa
a:&gt;e&lt;&gt;d
the Mountalin Parkway and 1-64 and 1-75
4. Disinterest of merchants at Pre tons.
&lt;&gt;:&gt;!:J!Sllr e lll aurr .I.llOA AJUO Sl!IfM. o.12aN ~6 1,noqe :,.o dno.rZ e 'e:p1e1w ut
Through rail carrier service is predom- burg and Cumberland, to menrtion but
urpueqs
J•OJ pa1sa.rll'e a.r,M1 sao.rZ,a N &lt;&gt;:&gt;!J:J.O srq w oJ:,. iup1eads 'aoqe.n11s asuai
inantly north-soultlh except -for Chesa- ,tw-o place , in being organized by the
'ANUa;i.a.J
1oaro.rd .ra10A :iaw aqlJ, OlilJ~ Ufeh PaAOW JOU.taA08 SqQ, sv
peake &amp; Ohio's east-west roulte in the United Mine Wockers.
a~
p,Mow
a:maJaJUoo
diqs.rapea'I
Ohio River basin. Mail and phone service
5. Gunfire and dynamitings in Harlan
0 UJaq1nos S\ 2DDI .1aq1n'I mpew
is generally aV'ailaible.
County.
ne pa1dn.1a sr f.T;) n:&gt;paury .iq-11,
6. A number of manufacturing indusTwi ting Roa ds Are Hazardous
'AlI:l 111.8.JOat)
tries along the river in Ohio and West
Surface trav·ell is handicapped by many Virginia have satisfacliory experience
u1 i~ntf2rr wai.aJci pue
twisting and haza:rdous roads of low ca. with labor that commutes from East
pacity. Dl'iving time to most communities Kentucky.
from scheduled service ,a irports ranges
7. Chemical Plant experience with confrom one to three hours.
But when operaitions of private aircraf&lt;t tract maintenance firms has been highly
ar e taken into account, accessibility of satisfactory. These firms have contracts
the region i not as bad as it first ap. with local labor halls.
pear: . In fact, some remarkable growt'h
Finish Ahead Of Schedule
in priv,a te aviation is t aking place in flhe
8, Major construction pcoj ects have
area.
'l'1t near-term ouUook for roads is far bee• ,ompI•t• d without tabo, uncost o,

1-::.,

Slaff PhOlos bV BIii Strode

WOOD CONVERSION FIRMS SHOULD BE ENCOURAGED
TO GROW

596:li . 'S J.SG~

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FRIDAY. NOVEMBER 19, 1965

SECTION B-14 PAGES

Mine,-Mouth Power Plants
1

Plugged To Boom Appalachia
By BEN F. REEVES
Courier-Journal and Tlm11 Buruu

W ASHINGTON-Kentui:ky's Ha'1'l'Y M.
, Caudill was in town yesterday plugging
away for a plan to build huge minemouth power-generating plants in the
Appalaobian ooail fields.
The Whitesburg author and attorney
had a receptive audience in the 250
or so members of the Yankee-Dixie Power Association here for their first general
meeting.
The association, made up of representatives of municipally-owned utilities and
rural electric coopera1lives, is unveil.mg
its proposal for a billion-dollar power
system to supply low-cost power to pubic
and private utilities 1lhroughout the Eastern United States.
The Yankee-Dixie scheme calls for construction of three two-million kilowatt
nine.,mouilh thermal, genemting stations.
One would be in Eastern Kentucky, another in Northern Alabama, and the third

in Western Pennsylvania. Exact locations
are not pinpointed
These stations would be linked by extra high voltage transmission lines, and
subsidiary lines would branch out to
the eastern coastal plain from New England to Florida, and westward as far
as Ohio, Indiana, and Illinois.
Hugh L. Spurlock, manager of the East
Kentucky Rural Electric Cooperative
Corporation at Winchester, Ky., is chairman of the association.
Caudill said construction of the big
generating stations at the source of the
fuel would extend the goal of President
Johnson's Great Society into impoverished Appalachia.
He said the plan would not only furnish abundant and reliable low-cost electri cirty to a major area of the nation,
but would make money available to upgrade the economy of Appalachia.
The association says the new power
system, estimated to cost $1.037 billion,
can be financed through the sale of

bonds and not require ,appropriation of
public money.
Caudill said the plan would enable
the Appalachian region to convert itself
from a poverty-ridden area into a truly
beautiful, rich and prosperous region.
The author of "Night Comes to th
Cumberlands" suggested that Congres
pass enabling legislation to give the Y'an
kee-Dixie projed the right of eminen
domain, and to permit issuance of tax
free revenue bonds.
"Let us candidly make use of tax-free
revenue bonds to accomplish this great
social advance, seeing that the welfar-e
of the whole people is so deeply involved.
For if we are to be able to plow back
into the land some of the value of thalt
which is being taken out, we must take
advantage of all legally available opportunities," be said.
Caudill said Yankee-Dixie engineering
advice is that if the system is built
to proper scale and with reasonably
cheap money, it would be feasible to
earmark at least a quarter of a mill
per kilowatt hour to upgrade the Appalachian regional economy.
Would Avert Blackouts

Another speaker at the meeting, Richard Wood, assistant administrator of the
Rural Electrification Administration, said
electric power failures such as occured
in the orbheast last week could have
been prevented through intereonnection
of such a power grid as proposed by
Yankee-Dixie.
Yankee-Dixie was formed last March \
by representatives of consumer-owned
electric utilities. Its plan is based on
{. engineering and economic studie! by the
n finn of Laramore, Dougiass &amp; Popham
of Chicago and New York.
Richard Popham told the meeting yes' terday, "The need for such a system
is unquestioned. Use of electric power
in this growing region is expected to
triple before 1980. This demand must
be met and it must be met from sources
of power economical enough to provide
stimulus for the development of the
area."

�---

The
IT SCREAMS!

CARL D. PERKINS

~~~~N~T~~SEI~TATIVEs

MOUNTAIH..E·AGlE

Wh itesburg, Letcher County, Kentucky, Thursday, August 4, 1966 Vol. 59. No. 12

GREAT SOCIETY PRIMER
The experience of Appalachia provides
elementary lessons for other reg ions
(EDITOR'S NOTE: Warner Troyer
is the writer-director of an hourlong documentary film on Appalacnia shown this week on the
Canadian Broadcasting Corporation
network. Troyer was in Eastern
Kentucky for several weeks this
summer gathering material for
the film. Much of this time was
spent in Letcher County. Before
beginning his television career,
Troyer was a political correspondent at the Canadian parliament
for a metropolitan newspaper. )

each week to attend the classes.
So a man in his early-middleage, with no means of supporting his family, with no job
training and no employrr.er.t
prospects worth considering. has
been excised from the federal
aid pro~am. His family would
like it 1f he could read and write,
but they see the imperatives of
finding groceries as more com pelling.

TRAIN AND POUGE STAFF:
Not fairly rule three, because
no scale of priorities could humanely put this at any number
below one.
I;:em: An administrator in the
Since impertinence is a halltown of Whitesburg told at least
mark of journalism and its
three women with whom I spoke,
slaves, the only apology offered
after telling them they were not
for the conclusions here stated,
entitled to any relief, food
following something like a
stamps or other benefits, that
month's vest-pocket-survey of
they could best hope to help
East Kentucky, is the selfish
their families survive by, "goin&amp;,
one embodied in regrets at the
home and growing a big garden.
warm friendships only-half-beHis brutal fiumor did little to
gun, at the kind and always
EVER SINCE HARRY M. CAULCLL"S BOOK "NIGITT COMES TO THE CUMBERLANDS" DEFINED
help these mothers face the fact
courteous people only-halfsome of the basic problems faced by those who would improve life for t he pe ople of the Appathey hadn't the means of feedknown, at the womb-like warmth ing their children decently.
lachians, boosters of Great Society legislation have argued that Dawn now is breaking in the
of enfolding Cumberland hills
mountains. But whether it is Night that is coming or Dawn that is breaking, it is a scene of
Item: Several families we met
and forests only half-perceived
spectacular beauty that greets tfie beholder from the top of Pine Mountain near Whitesburg. This,
qualified for one or several forms
in any period covering less than
incidentally, is a photo made shortly after supset.
of aid, yet had been t&lt;&gt;ld by
a lifetime of sunsets and wind
uninformed social workers and
rustlings.
bureaucrats that there were no
Here, then, the leswns I would means by which they could be
hope my government and society helped. It is distressing when
can learn from the initiatives
the people for whom these proexercised in the Great Society
grams were planned are unable
program as it has been implew get clear explanations of the
m ented and lived in East Kensons of help available to them;
tucky. Governments a nd socie- it is appalling when the people
ties, like all children, tend
employed to administer the prousually to insist on making their
grams cleady are often them The first, he said, is creation
A call for stronger federal lead- means for acquiring housing, edown mistakes, despite the exper- selves ignorant of the provisions
of a top-flight system of public
ership in a national drive to stamp ucation, jobs and opportunities,
ience of others: so we'll probab- of many schemes.
and that it will protect them aeducation. He proposed a fed out ignorance, poverty and dely not leam- -or at least, not
gainst oppression and reprisal by
eral version of the Minimum
spair in Appalachia and the rest
benefit, from America' s War On
focal politicians who seek to
Foundation Program now in efPUBUSH THE RULES, IN CLEAR of America was issued this week
Poverty. But if we could . • . •
capture control of federal funds
LANGUAC'E: To be blunt, some by Whitesburg Attorney Harry M.
fect in Kentucky and several
and to reap prestige and profit
administ ·.:1tors, like children
other states.
Caudill,
DON'T WASTE EXPERIENCE:
for themselves for their use. Let
playing poker, seem to amend
Speaking at a seminar spon Under such a program, he said,
That's Rule One. Legislation
the people know that the prothe rules according to the stakes sored by the federal Economic
the US Commissi oner of Educashould be drafted and vetted by
grams are theirs and not the larinvolved and the people with
Development Administration in
tion would spell out basic. deexperts in social sciences, not
gesse of local dynasties. Do this
sirable levels o~ instruction in
whom they appear, all too often, Williamstown, Mass.
lawyers. People who have lived to be 'playing.• Moreover,
and the people will respond beCaudill said that more federal
mathematic•
,e arts and sciand worked in hard-core areas
cause in the ghettos the governpeople of little educational
protection against oppression
ences, history, the 1 anguages
of social disadvantage should be
m ent that is respected is the na background find red tape jungles of poor Americans by local poland other disciplines. He would
begged for their advice. Theortional gpvemment. The symbol
iticians is necessary to provide
complex and fearful places, as
specify minimum standards for
ies are beautiful things--but
that is honored is the national
do we all. It's essential that
the morale to enable the poor
school buildings. The states
effective action in the field of
to work for their own bettermem. flag rather than the courthouse
the programs and the rules be
would survey their districts to
social habilitation demands the
or city hall. . . Let us not for"Education, housing and jobs-clear and clearly describe d.
pinpoint the ones which failed to
polished and tempered knowthese are the three cardinal needs get for an instant that with all
meet the housing and teaching
It is NOT enough when, for
ledge that is gained only by
its shortcomings rhe Federal Gov- standards. Congress then would
of the ghetto, " Caudill said.
example, officials of the State
trained people who have lived
"But to realize them, more than- ernment is the hest government
issue appropriations directly to
of Kentucky refuse to give a
in the gut of the problem and
money and good intentions are re- in America. As it provides the
the states, which would use them
complete copy of their convolearned its moods at first hand.
quired. There is, after all, .an
to upgrade deficient school sysluted food stamp regulations to
funds it should assume the reAd hoc legislation aimed at
intangible called morale. It
any journalist, whl le citizens
tems to the federal floor leve 1.
sponsibi lity of leadership at all
quick solutions is no answer at
springs from a strange huma n
are regularly deprived of food
levels."
"It is simply ioconceivable that
all. The poor have always
chemistry which psychologists
stamp certification for a whole
in this rich country a lack of funds
Caudill suggested several fedbeen with us --the poor in mater- range· of improbable reasons--or
have not yet successfully defined. eral programs to be followed as
shall c01tinue to deprive young Aial things and the poor in spirit
The people in the ghettos can
for no reasons at all that the
"part of a natioo al policy calmericans of any exposure to forwhom tfiey breed, If we truly
victims of these curious regulaachieve miracles for their own
eign language, an appreciation of
culated to transform islands of
live in a society which, for the
tions, as they are administered
betterment when the spark of ingood music and the visual ans, a
cultural defeatism into the sur~first time in human history, has
locally, can divine.
spiration is lit. Wimess the paring creativeness so often assocl grasp of world and national history
decided that's not good enough,
tisan campaigns during World
ated with the phrase, ' the A (Continued on Page 2)
then let us take the time and
ESTABUSH IRONCLAD APPEAL War II when whole populations
merican way of life. ' "
pains to do the job, human,
PROCEDURES: People who have rose to st.rike down an armed and
material and spiritual, properly. had a lifetime of small rewards
organized oppressor. Witness the
Temporary relief measures are
will, in the best situations, have sudden revival of the negro in the
fine: life and health should be,
a jaundiced view of "officials. •t south-- his militant insistence on
must be, preserved while per- ·
The present administration of
civil rights and human dignity,
This issue of The Mountain Eagle was printed early in ormanent solutions and goals are
the War On Poverty, at the local in defiance of long entrenched
der that we might attend a conference on "Great Societies
planned. But jerry-built legislevel, does not represent what
tyranny. And on a much smaller
and Quiet Revolutions" at Lake Couchiching, Ontario, Canlation and plans papered together could be described as "the best
scale, witness the uprising of the
ada.
with optimism and bope won't do; situation. " Only with a simple,
brave people in the Kentucky
T he conference, a week-long affair, is sponsored by the
these can only disappoint legisbulletproof appeal system will
mountain community of Clear
Canadian Institute on Public Affairs and the Canadian
lators and taxpayers as well as
the people for whom the programs Creek who last year rose in deBroadcasting Corporation. Its purpose is to draw together
beneficiaries and thus finally
are intended ever feel fairly
fense of their land against the
interested persons for discussions of the philosophy of the
slow the progress ~nd momentum treated.
ravages of strip-miners and atGreat Society in the United States and tne influence it is
of the whole program.
It is vital that justice be done
tracted the attention and gained
having on political and social thought and action in Canin any program of this kind- - and the_ sympathies of most of the
ada.
it is equally vital that justice
nation.
BE FLEXIBLE: That' s rule two,
Because Eastern Kentucky and its problems provide a
and it's as critical at the level
be seen to be done, At the moCaudill said he did not know
major testing ground for many Great Society theories,
of program implementation as is ment, it' s not.
the answer to the problem o[.igthe Canadian Broadcasting Corporation chose Eastern
rule one at the planning level
People with grievances are left niting "this chain of inspirat!on
Kentucky in general, and Letcher County in particular,
In Letcher County, for example, to find their own path through a
and courage, " but he offered
as the locale for an hour-long documentary film which
labyrinth of administrators, ofthis suggestion:
I met the family of a man who
was
shown this week as a keynote of the conference and
had l;&gt;een laid off the Unemploy- fices, regulations, and frustra"Let all federal efforts be aimed
also will be seen !JO the CBC network.
tions. Time and again one meets at the people in the areas to be
ed Fathers program on grounds
In anticipation of our absence, we asked several persons
people who believe they are en- aided. Let the poor be told that
he refused to attend evening
who have observed the Great Society as it is implementschool classes. He did, But he
titled to help, or redress, but
the United States of America
ed in Letcher County to tell us their views. They are prewould have had to walk about
"I just got tired of trying, "
seeks to help them help them sented in this week' s paper for readers here and away.
16 miles, over 'holler' roads,
(Continued on Page 8)
selves--to provide them with the

By War ner Troyer

BOLDER FEDERAL ACT ION NEEDED
TO END POVERTY, CAUDI LL SAYS_

To regular readers of Th e Mountain Eagle:

�THE MO UNTAI N EAGLE

WHITESB U RG,

LETCHER CO UNT Y , K E T UC K Y •

THE NEW MAN
What constitutes the ideal member of the Great Society? In
whose image shall he be czeated?
These are questions that take on increasing importance as
various programs and ready~rnade solutions to Appalachia' s
problems are tried- -with but little success. For with each failure comes a hardening of attitude on the part of federal and
state administrators toward the people they are supposed to be
helping.
As is pointed out by Alben So1nit on Page 4 of this paper, designers of the Appalachian Regiona1 ·0evelopment prt&gt;gram are,
lille rrecrustes, cutting off the legs or stretching the frames of
communities to make them fit someone's concept of community development. The tactics Prc,crustes used to make his
guests fit ·t he accommodations of his inn also are being used
upon the hapless victims of various "human resource" development programs.
The classic example of this is the Work Experience - Training
program, also known as the muskrat gang, the happy pappies,
the L-B-Jaybirds, or the jobless fathers as prejudice dictates.
The WET program is America' s ultimate answer to the question of what is to be done with men displaced by automation.
After a few months previous trial experience in West Virginia,
the program got under way in Eastern Kentucky in January, 1964.
It is an off-shoot of th.e Aid to Dependent Children program, one
of the cornerstones in the nation 's welfare structure. ADC makes
regular monthly. subsistence payments to children of broken homes,
But traditionally, payments have been barred to homes containing
an abie-bodied adult male. on the theory that if the man of the
house is at home and able to work it is his responsibility to sup~
port his family.
The theory, however, fell apan in the Appalachian coal fields
when actual unemployment approached or exceeded 50 per cent
of the total adult male labor force as automation displaced tens
of thousands of miners. Obviously the man of the house could
not werk if no job were available--and yet, obviously, the family would starve--and many were starving--in the absence of
any income source. And so, the WET program emerged,
The WIT theory is that each of the jobless fathers can be retrained to assume useful. productive, self-supporting roles in the
American economy. Step by step, the theory has been tested.
But along the way, administrators of the program have forgotten
that theirs is a program supposed to help, and not punish~
Train them in whose iinage, for what occupation? Unions across
the land were quick to close ranks and make it clear to federal
officials they wanted no mass of trained but unemployed men competing for their jobs. And so the jobless fathers obviously could
not be created in the image of a mason, an electli.cian, a carpenter, a painter, a plumber, or any other of the organized skills.
But it is a work program,. as well as a training program. And
what to do with them? Well. we coul d go back to the ·days of the
WPA program of the 19301 s and use them to build schools and highways and dams and other needed public facilities, including housing. But. says private industry, to do this would deprive us of contracts which would otherwise be ours. And, say the unions, this
would deprive union labor of work that should be done by skille&lt;l
union men at union wages.
What to do? Well, we do the obvious. We take the highly
skilled coal miner automated out of a job and we put him to work
cutting weeds or patching holes in di.rt roads or sweeping out the
courthouse. And we kidllim,. and we kid the public, by claiming
we are "retraining" him so that he can move on and out of Eastern
Kentucky and take a proper, productive job in the Great Society
in some big-city factory somewhere,
Never mind that the majority of the men are elderly, with bodies
wracked and tom by years of crawling on thei.r knees in the tnines
which have fired the nation. Never mind that industry will not
hire old, tired men. It says in the program that we are going to
rettain thert\, and retrain them w~ must.
And they become expert weed cutters.,
Along the way, to be sure they_are properly supervised and don't
chisel i:he taxpayers, we divide them into crews and assign them
for supervision to the magistrates and mayors and county judges of
Eastern Kentucky, who are given the task of molding them into
respectable citizens, with proper attitudes toward work and society,
Along the way, hundreds of the WET men have rebelled at the total indignities of their treatment, and have spoken out in criticism.
But also along the way, administrators of the program have learned
how to deal with the malcontents. They simply cut them off the
program, take away their medical cards entitling their families to
free medical care, take away their eligibility for food stamps - and tell them if they don't like their treatment, if they won' t adjust to the mold, they and their faioilies can starve,
And after a few months of this training and· work experience and
character building. we boldly proclaim that the lucky man is now
a re-made, rehabilitated individual, ready for a tole in the Great
Society. Sine~ he has had so much training as a weed cutter, we
conclude that he is properly trained to become a foundry worker
in Indiana, and we tell him there is a job awaiting him in an Indiana factory--or on a Florida citrus farm, We·cut him off the
WET program, point him in the direction.of the job in the promised land, and say goodbye, But suppose the man figures he can't
support his family on wages offered {generally the bottom of the
scale), or. for dozens of perfectly valid reasons, simply doesn't
want to uproot his family from Eastern Kentucky and venture off
with them to the jungles of a big-city slum? Then we cut him off
food stamps and take away his eligibility for all forms of assistance,
and let him and his fami 1y go hungry.
The program has not been a total waste, because it has served to
funnel money into the pockets of the unemployed and many fami lies have been saved from. absolute disaster. But at what a price-the personal dignity and self-respect of the majority of the me n.
A recent occurrence in a high school class composed mostly of the
sons and daughters of WET men demonstrates clearly th.e low esteem
in which the program is held by the people it affects most, Asked
what they would do to help Eastern Kentucky, 80 per cent of the
students said they would do away with the WET program.
The faults of the pmgram have been obvious from the beginning-the lack of training. tfie lack of worthwhile work, the denial of
self-respect. Bu~ none of the federal agencies involved•-Health,
Education and Welfare, the Office of Economic Opportunity, the
Depanment of Labor - •has shown the faintest indications of con cern, and instead of seekin~ reform, they continue full steam ahead piling indignity upon indignity upon the men themselves,
For example, next week will mark the end of the third month
since the suspension of one unemployed miner and his family from
the program. from food stamps and from all other forms of assistance because the man voiced mild criticism of one aspect of the
Community Action Program in Letcher County. The man notified
the local state welfare office he wished to appeal his suspension.
. But 90 days later he still has not been notified when he is to receive
a hearing.
.
Such is the price of failure to conform, to fit the mold of the Great
Society as .it is being formed in Eastern Kentucky with the full sanction; of Washington.
·

T HUR SDAY,

A U G UST 4 , 1.9 66 .

PA GE 2

Resources must work for people
(EDITOR'S NafE: AttomeyAuthor Harry Caudill of Whitesburg has been a principal spokesman for East Kentucky since 1963,
The following is condensed from
Appalachian South magazine. )

By Harry Caudi II
Since the publication of my
article "Poverty and Affiuence
in Appalachia" in the fall and
winter issue of The Appalachian
South, a number of people have
written to express agreement
with my contention that abser ~
tee ownership is one of the major
causes of A_ppalachian poveny.
None took issue with my claim
that the draining away of Appalachia' s great mineral wealth by
eastern corporations is our primary difficulty and that it.bas
produced a remarkably poor
people in an extremely rich
land.
However, some of them have
demanded to know whether I
have in mind any plan IJy which
this chronic malaise cA,1 be
cured. One woman declared that
I had made a good diagnosis but
had left the patient as sick as
ever before. She wrote, "It
doesn't do rnuch good to tell us
mountaineers what is wrong with
us unless you can help us ffnd a
remed:f.. What is y9ur solution
for East Kentucky's economic
illness?"
The question is a fair one and
ought to be answered.
In the same issue of the Appalachian South,. Mr. Edgar S, Fraley of Bristol. Virginia came
·
close to the mark when he suggested that the Federal Government should buy up the coal
lands from their present owners
and tum them over to the counties, the companies to be com pensated by county bonds, Under
Mr, Fraley's proposal the coun ties would retire the bonds out of
coal royalties and use the balance
of such income for schools and
other public services. "This, "
Mr. Fraley declared, "would
break the colonial relationship:
now existing between the New
York corporations and the Appalachian coooties--the same kind
of relationship that existed between Great Britain and µidia,"
Mr. Fraley admits that his
scheme is unlikely to receive
any serious consideration and in
this he is, unfortunately, ri$t.
It is cenain that his proposal
will be ignored by Washington.
After two years of intensive
study of the Appalachian im ~
balance the master minds in that
city could think of nothing more
effective than a $1, 100,000,000
l'development" program with
80 per cent of the money going
to roads. The remainder, too
small to be really effective.
will be devoted to a number of
other purposes, This effon at
Appalachian revitalization-the Appalachian Development
Act of 1965--is comparable to
a one-spoonful blood transfusion
for a man who has bled exten sively from deep wounds ·until
he has coll~psed. The infusion
of new life is not really big e nough to restore the patient and
unless the wounds are closed it
will be dissipated through continued bleeding.
The truth is that eastern Kentucky could solve its problems
without federal aid and without
help in any real sense from the
state, Kentucky mountaineers
could build a viable economy
and a great and abudant society
for themselves and their descendants without cost to the taxpayers and without resort to any
radical or untried scheme, To
do so they would need only a few
pages of enabling legislation, a
modicum of imaginative leadership and the strength of will
(translate: guts) to overcome
the Mellon empire and its local
retainers in a hard fl.Mt,
In the 1930's much of the state
of Washington was cut-over
THE MOUNTAIN EA.GLE is published every Thursday at 12• w.
Mail.. Street, Whitesburg. Letcher County, Kentucky, Thomas
E. Gish is the editor and publisher, Second-class postage is paid
at Whitesburg, Ky. Subscription
rates, $3 a year in Letcher Coun ty, $5 a year outside. Single issues, 10¢. This is Number 12 of
·volume 59.

timber-land and other large tracts
were semi-desert, After the logging companies had logged out,
the forest fire swept through the
bark and other wood residues
leaving the earth blackened and
naked, Erosicn did immeasurable
harm, but slowly the land healed
its wounds with thickets as nature
struggled to restore her forests,
Many of the :people moved away
from the blighted counties and
those who remained were forced
to a realization that they must
abandon the territory or rebuild
tqeir economy along new and
· di verse lines.
They stumbled upon a novel.
but thoroughly practical approach.
The Legislature authorized the
formation of Public Utility Districts as bodies corporate and
politic with the right to own real
estate and to exeJCise the right of
etninent domain. They were empowered to sell bonds, generate
and sell electricity and devote the
proceeds from such sales to public purposes. A PUD could con p
sist of a few voting precincts or
of one or more counties.
In the last generation Chelan
County, Washington (1960 population: 40, 744) has sold ·bonds
for more than $325, 000, 000 and
invested the money in hydroelectric dams and generators.
A sinking fund was/rovided for
debt retirement an revenues
from power sales are used to retire the bonds. More than a
million dollars per year are con tributed to the county and municipal governments. This money
finances sdJ.ools, hospitals and
libraries, land reclamation, reforestation and other essential
public sent ces and facilities.
Total power sales amount to a bout $27, 000, 000 annually. An
abundance of cheap power has
begun to attact new industry.
Good schools and a growing economy are drawing people into a
county once threatened with
wholesale abandonment, A "depressed area" has ·t ransfonned i.t self into a thriving and dynamic
region. The same miracle of
development, diversification and
growth has occurred in Grant
County, Last year that county
had a population of only 46, 477
but income from electric power
sales exceeded $20, 000, 000.
Impressive sums are being plowed into the development of plant
sites and other faplities calculated to spawn new economic
muscle. The power is being
carried by extra -high -voltage
transmission lines into the Puget
Sound area and, when needed,
will flow through the west coast
power grid into Los Angeles.
This pioneering effort can hold
the key to eastern Kentucky's
future. Let us suppose the same
methods were to be applied to
the state's eastern counties, which,
as a whole, claim the national
championship for human poverty.
I propose that the General Assembly pass an enabling act consisting of all the forty-four eastern
counties lying wholly or in part
within the mountains, The District would be corporate and
politic, its board of directors to
be appointed by the governor and
to consist of the ablest men and
women available, The EKDD
would have the right ·or eminent
domain, the right to own property essential to its purposes, to
gena-ate and sell electric power,
and to acquire, own, develop
and utilize land, water and mineral resources for the public welfare. Due provision would be
made to assure sound .fiscal polp
icies on the pan of the agency
and it would assume responsibility for the long range, overall
land and human resource develop·
ment of the entire territory.
Such additional inventories of
the region's wealth as are needed
wouldoe promptly made and a
comprehensive development plan
would be drafted. The Agency
then would offer its tax-free
bonds on the market. The demand for such debentures is
strong and there · ~ .every reason
to believe that hundreds of millions of dollar's worth could be
sold, The money so ott ained
would then be used to buy the
great tracts of minerai owned by
Fordson Goal and Land Company,
The Kentucky River Coal Corporation, Virginia Iron Coal and
Coke Company, Virginia Coal

and Iron Company, the Big Sandy
Corporation .and other non-resident owners.
The nistrict would then design
and b).lild dams over the territory.
The lakes so created would have
to be large in order to impound
water for hydro-electric power
generation, Too, they would pro.vide cooling water for giant coalbuming thermal plants. The combined output from hydro-electric
and steam generators would be
c~rried to market by extra -hfghvoltage transmission li:nes in the
manner now contemplated by
Yankee-Dixie Power Associar· '.&gt;fl,
coai woui&lt;l be leased on
equitable terms to mining companies, with safeguards for the
land written into the contracts,
Gas, oil, and limestone rights
would be let out to other com panies or; perhaps, to co-operatives organized for the purpose
of extracting and sell,ing the minerals, All royalties would be
paid into the Districtueasury.
Thus the tens of millions of dol lars now flowing so quietly and
so easily out each year would be
ensnared by an af;ency of, by and
for the Appalachian people. Billions of dollars would be required
eventually to build the dams and
power plants, the sewerage sys tems, schools, hospitals, libraries and housing, and to replant
the forests which true development would involve,
But with wise management the
potential is available for whatever
prodigious syms the task may
necessitate, All the region would
share in this "Operation Bootstrap.''
The headwater counties a,e rich
in minerals, but have few suitable
lake sites. The foothill counties
with their wider valleys lack the
minerals but are ideally suited
for the primary impoundments.
As development progressed,
$!.®lier dams wouldoe built
rartber up-stream, Goal for
power production would be carried by railroads from the mines
to the plants
Some of the income would be
used for plant-site development,
thus hastening industrial &amp;:ver sification. It is probable that no
more than a third of all income
would be required by the sinking
fund. Eventually the bonds would
all be paid off, but f~r decades
thereafter the generanve stream
of revenue would continue. The
severance and sale of natural
wealth would beget regional rejuvenation on a scale far beyond
anything we can now visualize.

Federal (from P. l)
and insights into the fabulous world
of moden mathematics, Yet in
the ghettos today the schools are
so skeletal. so stark and so overcrowded that the children are more
often kept than taught and their
opportunity to learn is alwar,s dubious and often impossible, '
"We can be sure that without a
spectacular upgrading of schools
real economic development can not ensue, no matter how ingenious the other remedies we may
apply, " Caudill said.
He urged the federal government to make public housing available at reasonable rental rates
to people of all economic circumstances.
"To do otherwise is to isolate the
poor in new centers, perpetuating
their separation from the rest of
society, " he commented,
He urged the Economic Development Administration to pinpoint
the urge1't need for new towns-planned communities--in Appalachia, the Ozarks, the Deep
South, on Indian reservations and
in urban areas where replacement
is more feasible than Ief&amp;ir.
"After all, " he said, the best
way to wipe out '. :e ghettos is to
do just that. Nor .does our failure
to clear them away and replace
them with pleasant new communities stem from any real lack of
caJ?itaL
When Congress resolved to do
so it found unlimited billions to
finance a war in south -east Asia.
When we genuinely want to do it
we will find the money needed to
house all our citizens.
··An&lt;l we should seek to persuade
Americans to discard their prejudice against public hoµsing. One
should feel no greater shame by
reason of living in a publicly
owned house tlian by driving over a publicly owned highway."

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              <text>Contact &lt;a href="mailto:archives.library@eku.edu"&gt;Special Collections and Archives&lt;/a&gt;, Crabbe Library, Eastern Kentucky University for reproductions, rights and permission to publish.</text>
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