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Appendix.

241

California Testing Laboratories, Inc., letter July 23, 1969, To Whom
It May Concern..

251

Chicago Police Department, booklets:

Motor Freight Industry Anti-Crime Conference.

255

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Security and Crime Prevention Conference.

278

How to protect yourself, your property, and assist the Police
Department

286

Business Management-Police Seminar on Burglary Prevention..
Preventing Auto Thefts

290

295

Housing and Urban Development, The Secretary of, letters to:

Hon. John Sparkman, August 5, 1970..

249

Hon. John C. Kluczynski, August 28, 1970.

250

International Brotherhood of Electrical Workers letter to Hon. Floyd
H. Hyde, August 5, 1970...

Housing and Urban Development, Department of, letter to Inter-
national Brotherhood of Electrical Workers, August 19, 1970-----
House Select Committee on Small Business letter to Underwriters
Laboratories, Inc.

304

305

303

International Brotherhood of Electrical Workers letter to Hon. John
C. Kluczynski, August 28, 1970..

305

Kluczynski, John C., letter to Hon. George W. Romney, July 21,
1970.

250

Lazzerini, Wm. A., telegram to Hon. John C. Kluczynski, September
17, 1970.

251

Mayors, U.S. Conference of resolutions adopted at annual meeting,
June 17, 1970...

303

Monitor, August 1970, articles, "Plastics and Fire" "Accomplish-
ments of the Illinois Fair Plan".

252

Nichols, Bill, Member of Congress, letter to Hon. John C. Kluczynski,
September 20, 1970.

306

Underwriters' Laboratories, Inc., letter to Hon. John C. Kluczynski,
September 21, 1970-

306

U.S. News & World Report article, September 21, 1970, "New Sys-
tem of Auto Insurance on the Way?".

253

THE IMPACT OF CRIME, CRIME INSURANCE, AND SURETY BONDS ON SMALL BUSINESS IN URBAN AREAS

THURSDAY, SEPTEMBER 17, 1970

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON SMALL BUSINESS PBORLEMS

IN SMALLER TOWNS AND URBAN AREAS
OF THE SELECT COMMITTEE ON SMALL BUSINESS,

Chicago, Ill. The subcommittee met, pursuant to notice, at 9 a.m., in room 1743, Everett McKinley Dirksen Building, 219 S. Dearborn St., Hon. John C. Kluczynski (chairman of the subcommittee) presiding.

Present: Representatives Kluczynski, Horton, and Button. Also present: Representative Hungate of the full committee; Donald Roe, subcommittee counsel; and John Finn, minority counsel. Mr. KLUCZYNSKI. The meeting will come to order.

The House Subcommittee on Small Business Problems in Smaller Towns and Urban Areas will hold hearings today and tomorrow on the impact of crime, crime insurance and surety bonds on small businessmen in urban areas.

I want to welcome you all here this morning for these hearings which I feel are going to be very informative and important to the Congress in assisting small businessmen.

Today we open the hearings which focus on the problems of small businessmen in our Nation's metropolitan areas. Our main concern is the impact of crime, crime insurance, and surety bonds on small business.

One of the grave problems confronting America is the small businessman's fight against crime. Figures show that crime costs all businesses $3 billion in losses each year and furthermore the smaller the business, the greater the impact of the loss.

I am extremely concerned and alarmed about this problem. The small businessman forms the cornerstone of our country's economy. Unlike big business, the small businessman--the little man-does not have sufficient resources to combat this problem by himself.

Our great country was made strong by the willingness of individuals to knuckle down and work hard; people like small businessmen. This is a man who has to get up every morning to face the problems of earning a living solely on his own initiative. He doesn't get a paycheck. He is not on salary. There is no guarantee that he will earn enough profit today to support his wife and family tomorrow.

These hearings will include a wide range of testimony from various city, State and Federal officials, as well as small businessmen and industry representatives. It is the subcommittee's intention to establish a truly coordinated effort to assist the small businessman.

The subcommittee has been receiving reports that small businessmen in metropolitan areas are having difficulty in obtaining insurance because of the increasing incidents of crime. I have been informed, for instance, that in the District of Columbia a $1,000 holdup policy for a liquor store costs $750 annually and that $15,000 burglary coverage on a furniture store costs $1,028 a year. In some metropolitan areas, I understand that crime insurance is not even available.

I think reports such as these are extremely depressing. How can a small struggling retail store owner make a decent and honorable living when faced with the overpowering problems of crime and crime insurance, in addition to a magnitude of other problems.

Sitting with me on the subcommittee today are Congressman William L. Hungate of Missouri; Congressman Frank Horton of Rochester, N.Y., and Congressman Daniel Button of Albany, N.Y.

You know how extremely busy Congress will be during the coming weeks, but these truly great Congressmen have taken time away from their other important duties to participate in the hearings.

I think their sincere interest in small businessmen is very commendable. These honorable men are very good colleagues of mine and I welcome them to Chicago.

Also with us today is our subcommittee counsel, Donald Roe, and our minority counsel, John Finn.

And now I would like to ask one of my dear colleagues who has been working so hard to help take care of the problems of small businessmen, my good fried Mr. Horton of New York, for any remarks he may have.

Mr. HORTON. Mr. Chairman, I thank you for your very warm personal welcome to me and the other members of the subcommittee to Chicago, and I would like to take this opportunity to publicly thank your very capable and able staff for the wonderful hospitality that they have accorded us here in connection with our visit to this great city of Chicago. I also want to take this opportunity to pay my personal respects to your great mayor, Richard J. Daley, and to express to him and to the good people of Chicago our great appreciation for this great city, this great metropolitan area in the Middle West of our great country.

Of course, it goes without saying, Mr. Chairman, that it is a pleasure for me to be back here in Chicago and once again be with you, my good friend and our distinguished chairman, and with the other members of the subcommittee. All of us on the Small Business Committee are, of course, particularly concerned with the different problems which are daily confronted by small business.

I have served on the full committee and on this subcommittee for 6 years now, and I know of no one, and I repeat, I know of no one who has shown greater concern and greater interest in this Nation's small businessman than you, Mr. Chairman. And your leadership of our subcommittee I think has been very helpful to bring to the attention of Members of the Congress and members of the public, the problems of the small businessman in the urban and the rural areas. And it is through your efforts and through the efforts of this committee that many of the innovations and many of the assistance programs are made available to the small businessman.

You, Mr. Chairman, have been a small businessman for most of your life and you have spent 20 years in the Congress as a chief champion and advocate of the small businessman.

You have chaired innumerable hearings in Washington on what the Government is doing and what more it should be doing to help small business. But you have done a great deal more than that; you have taken our committee out into the field to learn firsthand from the people what their problems are and what help we can provide.

This committee under your outstanding leadership and direction has traveled all over the country seeking to improve the lot of small business. We have been in urban communities and rural communities, we have been in Los Angeles, Calif., and Topeka, Kans.; in Atlanta, Ga., and Provo, Utah; in New York City in the State of New York and my district, Rochester, and Mr. Button's district in Albany, and Tennessee, and numerous other places throughout this great country. And of course we have come here to help the small businessman in Chicago on many occasions in the past.

When you, Mr. Chairman, have brought this committee to my hometown of Rochester, the result has always been substantial assistance and great help to the small businessmen in my community. Our first visit resulted in the establishment of a small business office on a weekly basis, and this meant great assistance to the small businessman in the greater Rochester and Monroe County area. As a result, we went back in the spring of this year and it resulted in the establishment of a full-time office staffed with two people who I am sure are going to be able to provide tremendous assistance to the people in my congressional district. This type of assistance has always been true, as many of you know, from our visits to Chicago.

Our hearings today and tomorrow are concerned with the impact of crime, crime insurance and surety bonds on small business. Everyone knows about the extremely difficult crime problems which face our country today. You know, not many realize what devastating consequences result to the small businessman from this crime problem. Not many know, furthermore, just how hard it is for small businessmen to obtain insurance against crime, especially in disadvantaged and ghetto

areas.

Through these hearings we hope to get a first hand look at these problems of the urban area and the smalltown area. We will then go back to Washington and go over the hearings in our executive sessions and hope we will come up with some means to alleviate this extremely difficult problem.

I want to say parenthetically too it is important to have these hearings because representatives of small business are here as are other representatives of other agencies of the Government. Even though we don't enact legislation we bring to the attention of the people in the Government the problems, and as a result focus the spotlight of the public on these problems and therefore the agency can come up with some solutions which don't always necessitate legislation. Many times it does, and many times the Congress does act on what we provide out of these hearings.

The important thing is that the problem is brought firsthand to those in the administration and the agencies that are concerned about the problem and as a result action is taken that has been very helpful.

I remember, Mr. Chairman, it wasn't too far from here out in the university area where we had some discussions with people building a new shopping area. They had to get the little tenant, the small businessman in a particular shopping area-they needed some sort of guarantee so that they could get a lease arrangement, and as a result of our hearings this type of problem was worked out.

I think that it is important for us to have these type of hearings in areas such as Chicago and the other places I have mentioned, because small business is a vital element in our economy. It is a means, furthermore, by which minority groups must be brought into the mainstream of our economic life. The problems of crime present a terrible stumbling block today for this Nation's small businessman and something must be done about it.

In conclusion, again let me say that our chairman, Chairman John Kluczynski, is a man for whom I have the greatest personal admiration and it is a real privilege for me to be here with him in this home community in this district to participate in these hearings on what I think is one of the most important problems that we face in the country today.

Mr. Chairman, again, it has been a great pleasure to be with you here in these hearings.

Mr. KLUCZYNSKI. Thank you, Mr. Horton. The Chair recognizes the gentleman from Missouri, Mr. Hungate, a member of the full committee.

Mr. HUNGATE. Thank you, Mr. Chairman.

I welcome this occasion to be with the subcommittee at these important hearings. The subject of crime and crime insurance is a very important one for all Americans and particularly for small businessmen.

And I might say that our colleague, the gentleman from Illinois, Mr. Frank Annunzio has great concern in this area, and I hope will appear to testify. I think he is scheduled to appear. Is that correct, Mr. Chairman?

Mr. KLUCZYNSKI. He will be here tomorrow at 11 o'clock.

Mr. HUNGATE. I concur in the chairman's remarks that one of the grave problems facing America is the small businessman's fight against crime. Small businessmen in urban areas are continuously plagued with riots, burglaries, and thefts, and reports indicate that insurance premiums are increasing astronomically. In some areas crime insurance is not available at all.

At this point I would like to say that our chairman, John Kluczynski, is well recognized as an outstanding Congressman, respected and admired by his colleagues. He is certainly a champion of the little man, the small businessman. His efforts to protect and promote small business are very commendable. He deserves the recognition he has been given here, and in many places, for his fine accomplishments. I would like to say that I am looking forward to the testimony today. I believe this inquiry shall be most beneficial to the Congress. Thank you, Mr. Chairman.

Mr. KLUCZYNSKI. Thank you, Mr. Hungate. The Chair recognizes the gentleman from Albany, N.Y., Mr. Button.

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