Mr. FLEMING. They have left Mr. Biggs out, who is from Mr. Goodling's State. They have left Mr. Stevens of Mississippi out, I believe— Mr. RESNICK. No; Mr. Biggs is listed. Mr. FLEMING. I do not see it. Mr. RESNICK. The president of the American Agricultural Mutual Insurance Co. is Mr. Charles B. Shuman, the vice president is George Doup, the secretary is Mr. FLEMING. I am reading from this release. Mr. RESNICK. The secretary is Roger Fleming. The treasurer and assistant secretary, Alan A. Lauderbach; and then they list all the directors. Mr. FLEMING. I am reading your release. Mr. RESNICK. Well, we will have to fire some of our typists. Mr. FLEMING. I would not want to recommend anything that rash. Mr. RESNICK. I would not, either. Would you like to tell me how many fire and casualty insurance companies you have? Mr. FLEMING. First of all, we do not have any. Mr. RESNICK. Your State bureaus? Mr. FLEMING. The State bureaus have affiliated companies in several States and I will provide you an accurate list. I will be happy to. Mr. RESNICK. Oh, no, you have one right here, the American Agricultural Mutual Insurance Co. Mr. FLEMING. That is the reinsurance company which I just described. Mr. RESNICK. Not only that, I will read to you that you have 200 preferred shares of Cal-Farm Insurance Co. Now Cal-Farm Insurance Co. is not a mutual company, it is not nonprofit, and I think this is a very important point. I want the record to show that in addition to the mutual fire and casualty companies that you operate, to which, theoretically only the members are supposed to belong, you also own stock fire and casualty companies which are profitmaking organizations and anybody can buy a policy; even me. Mr. FLEMING. Let me say, first of all, there are many stock companies that limit their casualty business to members only, just the same as a mutual. Mr. RESNICK. Oh, that is true; but I am going to prove to you, and I am going to prove to this country that that is an outright lie on your part and I have evidence. This evidence will be presented very shortly. I will point out that a young lady who has absolutely nothing to do with a farm walked in, got her insurance and became a member. Now, I would ask you this question: How come your so-called member-only insurance companies have to advertise if it is only for the members? Mr. FLEMING. Well, let me say that the State farm bureaus or the boards of directors of the affiliated State companies, as the case may be, decide these things. We believe essentially in decentralization of decision making. In most States, the State law prevents the sale of life insurance to members only and in those States, insurance Mr. RESNICK. But that is not what you said when you filed for your tax exemption? Mr. FLEMING. Let me say that the American Farm Bureau Federation has filed for its tax exemption and it is living by both the letter and the spirit of it and we are prepared to defend it. Mr. RESNICK. I don't think so, but I am willing to let the Internal Revenue Service check that out. Let me ask you this question. You have a national magazine, I understand? Mr. FLEMING. That is right. Mr. RESNICK. There are big beautiful, full-color ads in that magazine. It says "Buy Farm Bureau insurance." Who pays for those ads? Mr. FLEMING. The State companies. Mr. RESNICK. On a pro rata basis? Mr. FLEMING. That is right. Mr. RESNICK. I see, in other words, they don't care what kind of Farm Bureau insurance they sell, you just buy Farm Bureau insurance. So on a pro rata basis, each one of these guys chips in? Mr. FLEMING. It is not guys, it is companies. Mr. RESNICK. After all, you have been very careful not to answer the questions, so I am reading into the record that you have 28 fire and casualty companies and eight life insurance companies. We have only found two or three stock companies, so far. It is harder to find the stock companies. Mr. FLEMING. Let me say we will gladly provide these names. Mr. RESNICK. Fine, I would appreciate that. I would also like to state for the record that these companies operate in conjunction with one another, have set up various new companies, have interlocking boards of directors Mr. GOODLING. Will the chairman yield for a question at this time? Mr. RESNICK. No, the chairman will not yield. I will yield when I have made my point. Mr. GOODLING. When you are good and ready, you mean. Mr. RESNICK. Right. You are absolutely right, Mr. Goodling. Mr. RESNICK. I will not yield for any purpose at this time. Mr. ZWACH. I second it. Mr. RESNICK. I will not entertain the motion. Mr. GOODLING. I think you have to entertain it, there is a second to it. Mr. RESNICK. I do not think so. Mr. MURRAY. The Chairman is right that he does not have to entertain the motion. However, the House is in session. Mr. RESNICK. I find then if this subcommittee wishes to adjourn this hearing, make the motion, Mr. Goodling. I want it to be shown that it was on Mr. Goodling's motion. Mr. ZWACH. I would like to make a statement. Mr. RESNICK. All those in favor Mr. MURRAY. He can make a point of order. Mr. RESNICK. If he makes a point of order, that the House is in session Mr. MURRAY. If he does that. Mr. RESNICK. Therefore, unless I get the consent of the House, we cannot readjourn. Mr. GOODLING. I make a point of order that the House is in session. Mr. RESNICK. You make a point of order, the House is in session. This meeting is now adjourned. I would like to state to Mr. Fleming and to the members that I am going to request that we may meet, even though the House is in session. I would suggest, Mr. Fleming, that you check with my office within the next hour and we will check it further. (Whereupon, at 11:15 a.m., the hearing adjourned, to reconvene at 9:30 a.m., Thursday, June 29, 1967.) EFFECT OF FEDERAL PROGRAMS ON RURAL AMERICA THURSDAY, JUNE 29, 1967 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON RURAL DEVELOPMENT OF THE COMMITTEE ON AGRICULTURE, Washington, D.C. The subcommittee met, pursuant to recess, at 10:15 a.m., in room 1302, Longworth House Office Building, Hon. Joseph Y. Resnick (chairman of the subcommittee) presiding. Mr. RESNICK. This meeting of the Subcommittee on Rural Development of the House Committee on Agriculture will now come to order. We apologize for the delay. We were in an informal meeting. Before I call the first witness, I would like to say for the record that all members of this subcommittee have 5 legislative days, not counting the recess, so this would be until July 12, to enter at this point in the record any statements they want to make about the Farm Bureau and its relation to the American scene. I would also like to state for the record that any statements I make or any requests I make, I make on the basis of an individual Congressman. They do not reflect in any way the feelings of the subcommittee. As chairman of this subcommittee, I am speaking as an individual Congressman. We have learned that the Honorable Sargent Shriver, Administrator of the Office of Economic Opportunity, was called out of town on an emergency problem. We are honored to have with us the Deputy Director, the Honorable Bert Harding, of the Office of Economic Opportunity. Mr. Harding. STATEMENT OF BERT HARDING, DEPUTY DIRECTOR, OFFICE OF ECONOMIC OPPORTUNITY; ACCOMPANIED BY DONALD BAKER, GENERAL COUNSEL, OEO, AND DR. ROBERT LEVINE, DIRECTOR, OEO, FOR RESEARCH, PROGRAM PLANNING AND EVALUATION (RPPE) Mr. HARDING. Thank you, Mr. Chairman. First, may I express Mr. Shriver's great personal regret that he was unable to make this appointment this morning. He has been looking forward to meeting with this committee for some time now, and it was only a last minute emergency, as the chairman stated, that prevented his being here. I would therefore, like, if it pleases you, Mr. Chairman, to deliver the statement which was prepared by Mr. Shriver for delivery at this time. Mr. RESNICK. You may proceed. Mr. HARDING. Two days ago, Mr. Chairman, you referred to the poor of rural America as "the invisible poor." For all too long in our recent history that has been true. But I believe that for the Office of Economic Opportunity the rural poor are not invisible. Scattered, perhaps, remote, difficult to reach, not as well organized as the poor who are concentrated in urban communities. But not invisible. For the past 22 years, the OEO has come to know well the poor of rural America. And increasingly, the poor of rural America are coming to know the OEO. On Indian reservations. In migrant camps. In Appalachia. In the hills of Vermont. In the Black Belt of Mississippi-we have been working with large segments of America's rural poor to help them bring themselves out of poverty. We have not done as much, perhaps, as we might. But within the limits of our legislative mandate, of our resources, and faced with the difficulty of reaching, informing and serving people who for decades have been off the beaten path, we feel we have made substantial prog ress. Statistics do not tell the whole story, but they do measure both our progress to date and how far we have to go. For fiscal year 1967, $248.6 million in community action funds will be granted for rural community action programs. This is 32 percent of all CAP money compared with 27 percent for the previous fiscal year. It is not precisely proportionate to the 40 percent of poverty in rural America, but we are certainly moving in the right direction. From ground zero 211⁄2 years ago, we have assisted in the development of 618 rural community action agencies, covering 1,551 counties, about two-thirds of all counties in this Nation designated as rural. Plans for 1968 call for 50 new rural CAA's, covering about 350 counties. We now have 61 CAA's on 108 Indian reservations in 19 States. These have developed a broad range of programs serving more than 80 percent of all Indians living on reservations. Title III-B programs are specifically directed towards the plight of the 71 million migrants and seasonal farm workers and their families who are among America's most deprived rural citizens. Currently funded at a level of $33 million, OEO migrant programs are now operating in 35 States by 24 public agencies and 64 nonprofit private corporations. These programs are presently reaching 13,000 children through day care, 45,000 youngsters through youth education, and 28,000 adult migrant workers through adult education. In addition, more than 800 units of self-help housing are being built in fiscal 1967. with 1,200 additional units planned for fiscal 1968. Job Corps now has some 13,200 rural youths enrolled, and a total of about 26,000 have been in the Job Corps for the past 22 years. In addition to the opportunity provided by Job Corps to improve their basic education, their health, and their skills, these young men and women are sending home monthly allotments totaling some $384,000. The Neighborhood Youth Corps has provided jobs for 250,000 high school-age rural youth since the program began. These youngsters receive work training in a great variety of jobs throughout rural |
