avoid false alarms is also very much simpler than technology required to detect burglary and avoid false burglar alarms. Each fire can be a large tragedy in itself, but burglaries tend to be a series of small incidents which build to a serious impact on the small business. There is no doubt that the increased interest in crime will evolve to some upgrading and improvement in standards for burglar alarm systems. Indeed this is the first investigation the government has initiated into the impact of crime on small business. Question 6. Public utility concept: Based on the best use of economic technologies in the next 10 years, multi-purpose central station surveillance, and optimum possible communications, the SBA report sees a real possibility of the central station systems becoming privately operated quasi-public utilities at approximately electric or telephone monthly rates would you give your views? Answer. Within the next 10 years, there is no doubt that technology will make possible the economic sharing by telephone, television, electric power, and alarm companies of a single carrier, to any one subscriber or business. However, while technological advancements will have a significant effect in reducing costs of service, it is questionable whether crime detection services and fire services can be offered at approximately the same rates as the telephone or electric service. This is so even if a minimal standard is established as to the equipment to be employed. The various types of devices, differing functions and scope of protection afforded require vastly different approaches to specific locations. The alarm equipment for both burglary and fire requires a higher degree of supervision and accurate receipt of information. If telephone speech is interfered with occasionally, or if a meter is read incorrectly, this error is not as serious or as tragic as if a burglar or fire alarm signal is not transmitted properly. The alarm equipment requires a constant alertness and higher degree of accuracy, consequently the equipment must be more fool-proof, with superior safeguards and supervision. Another significant factor is that with telephones or meters, the public is dealing with a single instrument in a particular location. The alarm system must have numerous instruments or devices of detection, and in most cases these must be scattered in strategic points of entry but connected to each other or to the signaling apparatus. Installation and maintenance of alarm equipment is usually more involved than the fixed telephone or meter. While progress in technology will help bridge the cost difference, it would be imprudent to optimistically predict that alarm service rates will be the same as telephone and electric rates. Question 7: Riot rule: What is your experience on the value of central station systems in behalf of small business protection in riots? Answer. Central station systems have detected riots in their incipience, and have provided almost instantaneous information to the police as to the spread of a riot. Once the riot is over, the possibility of restoration of protection, even on a temporary basis, exists, which would be of great value in protecting assets remaining after the riot is over. ADDENDUM TO MR. C. D. OTT'S MAY 22 TESTIMONY BEFORE SENATE SMALL BUSINESS COMMITTEE The application of automation to the operations within the central station as discussed in the report on Crime Against Small Business has been under consideration by ADT since the thirties but the technology and the expenses involved in automation until now have not been favorable. Great advancement, however, w was made during this period in the areas of equipment improvements, to a great extent involving solid state technology; improved operating procedures; reduction of false alarms; new signal transmission systems; and the utilization cf normally unattended satellite (district) stations. Protection services for 200 to 500 subscriber premises are transmitted by a multiplex system into the nearest manned central station. Seven of these installations are in operation and a number of additional installations are in the planning stage. The ADT Computer Sciences Division of the Diversification and Expansion Operations was formed on March 4, 1969 and was charged with the responsibility of searching out, analyzing and recommendng systems operations which will ensure the projected growth of the Company and enable it to meet fast growing competition in the electric protection industry. As a first project, the group will investigate the utilization of computers in the role of automating central station operations. The need for automatic means of accurately and reliably processing central station signals is becoming more pressing. The ultimate goal is improved output and service from each unit of capital and labor by use of automation. As of March 12, 1969, Mr. Albert G. Hill, Ph. A., was retained to assist the Company as Technical Advisor to the President, while pursuing his regular duties at the Massachusetts Institute of Technology. Hon. JOHN SPARKMAN, AMERICAN HOSPITAL ASSOCIATION, Chairman, Committee on Banking and Currency, DEAR MR. CHAIRMAN: This letter is written to express the American Hospital Association's support of legislation along the lines of S. 3504, a bill introduced by Senator Dodd which would increase the maximum mortgage amount that can be insured for a hospital project under the provisions of Section 242 of the Housing Act of 1968, as amended. The hospitals of the nation are faced with constantly growing demands for medical care and services. The medicare and medicaid programs have brought about substantial increases in the utilization of hospitals by those over 65 and by persons who previously could not afford medical care. We have in recent years also seen the nature of hospital care change dramatically in keeping with the explosion of knowledge in science and technology. The varieties and kinds of services offered by hospitals in this "new day" in medicine have grown steadily. This has, in turn led to changes in the types of facilities and equipment hospitals need to meet their community oriented responsibilities and fulfill their role as the center of the circle of medical resources for the prevention, diagnosis and treatment of disease and for rehabilitation of the sick and injured. In addition to the heavy pressures for the construction of new facilities and the expansion of existing hospitals, there is an urgent need for modernization or replacement of old and obsolete hospitals, especially in the larger metropolitan areas. As someone put it, you simply can't practice 20th century medicine in 19th century facilities and a compilation of estimates developed by the individual states fixes the cost of the modernization needs of hospitals at more than $7 billion. In 1968, Congress added to the National Housing Act a new section (Section 242) which provides mortgage insurance for hospital construction and modernization, including equipment. Applicants must first obtain a certificate of need from the appropriate State agency to a regional office of the Department of Health, Education and Welfare. The HEW regional office processes the application and is responsible for determining the feasibility of the proposal. FHA then can issue the mortgage insurance and under the existing law, the mortgage amount can cover up to 90 percent of the FHA estimate of the replacement cost of the hospital and equipment, but may not exceed $25 million. It has come to our attention that some hospitals in larger metropolitan areas have developed plans for major rebuilding and new construction projects which will necessarily involve loans in excess of $25 million. The inability of these hospitals to obtain the amount of funds required to carry out their plans has prevented them from providing improved hospital facilities to serve the public. Increasing the project ceiling limitation under Section 242 to $50 million, as proposed in S. 3504, would make it possible for a number of our larger hospitals to improve or modernize their facilities and thereby enable the public to receive the benefits intended when the Section 242 was established. Such action would thus be in accord with the purposes of the program. On behalf of the more than 6,600 hospitals and other health care institutions we represent, the American Hospital Association urges the maximum mortgage limitation in Section 242 be increased to $50 million. We will appreciate you having this letter made a part of your Housing Subcommittee's hearings that are now underway. Sincerely, KENNETH WILLIAMSON, Deputy Director. AMERICAN HOSPITAL ASSOCIATION, Hon. JOHN SPARKMAN, Chairman, Committee on Banking and Currency, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: It is our understanding that the Federation of American Hospitals, representing the proprietary hospitals of the nation, has requested the Committee to amend Section 242 of the National Housing Act to authorize mortgage insurance for proprietary hospitals. The referred to section was enacted in the Housing and Urban Development Act of 1968, specifically to authorize mortgage insurance for nonprofit hospitals in order to provide a much needed source of financing for such hospitals. The act itself expressly requires a certificate that the hospital is needed, and that State or local laws providing for minimum standards will be applied and enforced. Additionally, the department has followed a policy of authorizing such mortgage loan insurance to nonprofit hospitals, only where it is agreed that the governing board will not be dominated or controlled by the medical staff of the hospital. Since mortgage loan programs are available to nonprofit hospitals and to proprietary nursing homes, we support the request of the Federation to amend the act to authorize the extension of the mortgage insurance provisions to proprietary hospitals, provided that the same requirement of certificate of necessity and a restriction from physicians on the medical staff of the hospital and having a financial interest in the hospital from serving on the Board of Directors are written in the act. Sincerely, KENNETH WILLIAMSON, Deputy Director. Hon. JOHN SPARKMAN, AMERICAN PUBLIC POWER ASSOCIATION, Chairman, Committee on Banking and Currency, DEAR SENATOR SPARKMAN: The American Public Power Association represents more than 1,400 local publicly-owned electric utilities, mainly municipally-owned systems, in 48 States. Puerto Rico, the Virgin Islands, and Guam. These utilities are active for the benefit of the communities which they serve. In 1968, the APPA membership adopted the attached resolution supporting legislation to provide funds for improved traffic control facilities and street lighting facilities, urging that priority in awarding funds be given to public agencies which "have initiated and seek to implement practical programs for upgrading street lighting facilities." The following example of cities with municipally-owned electric utilities that have implemented street lighting programs illustrate advantages of street lighting in combatting crime: 1. Owensboro, Kentucky, began an extensive street lighting program in 1967 and completed it this May. While crime in many cities of the country was rising, Owensboro police reported a decrease in crime of 22% in 1968 as compared to 1967 and 9% in 1969 as compared to 1968. Owensboro Police Chief Vernie Bidwell called the street lights "potent weapons to use in the struggle against nighttime crime and accidents," nothing that better street lighting encourages more people to use the streets at night and that "the more people there are on the streets, the safer they become." 2. The incidence of prowlers, window peeping, and burglaries was reduced 92% in McPherson, Kansas, after relighting. 3. When relighting was one-third completed in Cleveland, Ohio, the number of assaults had dropped by one-third. 4. Newberry, S.C. City Manager K. W. Riebe called the street lighting program initiated by this town of 9,500 citizens "comparable to adding four fulltime policemen." Local publicly-owned electric utilities often encourage and sometimes completely finance street lighting programs conducted by their city. Of five cities with street lighting programs discussed in an article in Nation's Cities magazine in July, 1969, four were served by municipally-owned electric utilities, and two of the city-owned utilities financed the entire street lighting program. Municipal 48-279 0-70-pt. 2-52 electric utilities in Marshall, Missouri, a town of 13,000 people, and Berlin, Maryland, a town of 2,046, financed the entire program for upgrading street lighting in the communities they serve. Discussing his town's street lighting program, John H. Burbage, Mayor of Berlin, Maryland, commented: "We have never had a crime problem, but many of our people said they were afraid to shop downtown at night or walk to church or leave their cars parked along streets." These situations illustrate advantages realized by improved street lighting programs in those cities willing and able to undertake such programs. Cities may be able to undertake better programs for upgrading street lighting or be willing to initiate such programs with proper encouragement from the Federal government, such as the opportunity to share the financing of new street lighting facilities. With the increasing emphasis being given to the importance of combatting crime, the American Public Power Association believes that proper attention should be given to improved street lighting, and that your Committee should endorse legislation similar to S. 3786, to provide Federal grants for improved street lighting facilities. Sincerely, ALEX RADIN. LIGHTING ASSISTANCE Whereas, local publicly-owned electric systems actively promote adequate traffic control facilities, lighting on highways, in streets, alleys, parks or other public areas for the safety and welfare of residents of their communities, and Whereas, it is in the national interest to encourage the use of electricity for the protection of all citizens; Now, therefore, be it resolved: That the American Public Power Association supports Federal programs of financial assistance for improved traffic control facilities and street lighting facilities, as proposed by S. 991, H.R. 6734 and other similar bills of the 90th Congress, and urges that in awarding funds priority be given to public agencies which have initiated and seek to implement practical programs for upgrading street lighting facilities. Hon. JOHN J. SPARKMAN, N. E. BLANKMAN & Co., INC., August 7, 1970. Charman, Housing and Urban Affairs Subcommittee, DEAR MR. CHAIRMAN: Enclosed is a statement respectfully submitted for inclusion in the record of hearings your subcommittee has held on Senate Bill 3639 and related housing bills. The statement's particular concern is the amendment to S. 3639 submitted to your subcommittee by the Department of Housing and Urban Development. Its intent is to end the practice of local exclusion of federally assisted housing. A legislative draft of the amendment is also enclosed. I strongly urge subcommittee adoption of this amendment. It is important because, despite federal assistance, the housing shortage continues to be critical, especially in the major metropolitan cities and their suburban environs, where local exclusion is most frequently and flagrantly practiced. Of equal significance, it raises the entire issue of arbitrary exercise of local planning and zoning power, the core of a problem vexing those of us who are willing but legally unable to construct housing for middle and lower income families for whom the cost of available units has become prohibitive. I am president, Senator, of a firm which has invested considerable financial resources, talent and time into what planners, developers and others agree would be ideal use of some 300 acres of undeveloped land, plus the added benefits of real estate tax relief and such needed recreational facilities, only to have local officials refuse zoning changes. In the State of New Jersey where my firm has for the past eight years owned ten per cent of the entire land area of the Borough of Tenafly, we have been engaged in a frustrating effort to convince the mayor and council to authorize ཟློཝཱ ཝཱ་ཋཱན། ་ ་་་ No general or special-purpose unit of local government for other having official jurisdiction over regions or subareas within a grate all shall, in the exercise of powers with respect to planning evning enluftyt po controls, building codes or permits, or other matters affecting land wa that are undeveloped or predominantly undeveloped but that are in the path of development, prevent the reasonable provision in such areas of how aud moot erate-income housing eligible for federal assistance in a manner inconet rent with any state or local comprehensive or master plans for such area SECTION # No such unit or agency shall, in the exercise of such powers bu am Alca discriminate against low- and moderate income homebre eligibility for federal assistance. |