eign prescriptions, or information regarding the growing of medicinal plants.

The organization of the wealth of knowledge available to universities and its communication to practicing pharmacists are tasks which schools are eager to assume. Schools of pharmacy are making some attempts to fulfill this responsibility to practitioners. Unfortunately, the efforts of the schools are hampered by inadequate financing. A few extension services are able to conduct such programs, but in most States the field is virgin.

The lack of capital available for general extension activities to develop or expand is impeding the desired development of pharmacy extension service in most States. The American Pharmaceutical Association believes that H.R. 357 will assist in the development of necessary programs which have been faltering for the lack of dollar nourishment.

H.R. 357 would stimulate extension services in pharmacy and would aid the profession and ultimately the public. Such educational programs can bring together the most scientific and professional information for exchange between those in the profession; can familiarize other health professions and the general public with profesional services available from pharmacists; and can promote the study of professional and economic aspects of pharmacy.

An effective extension service in pharmacy thus can serve as a link between the research scientists, the drug manufacturer, the school of pharmacy, the practicing pharmacist, allied health groups, and the public, teamed together in the interest of national health education. May I also submit for your information copies of two journals of the American Pharmaceutical Association in which reference is made to the institute programs?

Mr. ELLIOTT. Without objection, the journals will be received and will become a part of the committee files.

Mr. DAUPHINAIS. Indicated in the journal are some of the programs which have been undertaken. There is detailed information on the specific programs.

I would like to call your attention to the October 1959 issue on pages 576 and 590. The June 1959 issue is devoted completely to continuing education.

The American Pharmaceutical Association feels that H.R. 357 would stimulate the development of such extension programs in the several States.

Thank you for the privilege of appearing before you.
Mr. ELLIOTT. Thank you very much, Mr. Dauphinais.

Our next witness this morning is Mr. L. C. Thellemann, executive vice president, Pennsylvania Association of Plumbing Contractors, Harrisburg, Pa.

There is one additional witness following Mr. Thellemann, Mr. Howard Levy. Since we must be finished by 12 o'clock, I will divide the remaining time between Mr. Thellemann and Mr. Levy.

You may proceed.

STATEMENT OF L. C. THELLEMANN, EXECUTIVE VICE PRESIDENT, PENNSYLVANIA ASSOCIATION OF PLUMBING CONTRACTORS, HARRISBURG, PA.; ACCOMPANIED BY JEROME O. HENDRICKSON, EXECUTIVE SECRETARY, NATIONAL ASSOCIATION OF PLUMBING CONTRACTORS, WASHINGTON, D.C.

Mr. THELLEMANN. I have asked Mr. Jerome Hendrickson, executive secretary of our National Association of Plumbing Contractors, to accompany me.

Mr. ELLIOTT. You may proceed.

Mr. THELLEMANN. My name is Leslie C. Thellemann. I am the executive vice president of the Pennsylvania Association of Plumbing Contractors, Inc., a statewide organization representing the plumbing contractors of Pennsylvania.

As an important part of its program of activities is an educationalmerchandising program designed to help the plumbing contractor to be a better businessman and to render a more efficient service to the public to whom he sells or merchandises his services and products of the industry as a part of his daily operations.

The plumbing contractor is a small businessman. The majority of firms in the State have five or less persons employed. Inherently the training of the plumbing contractor has been initially mechanical with a minimum exposure to the rudiments of business operations. Operating a small business in this country today can well be termed a hazardous adventure.

Reliable sources of information have indicated a high mortality rate among small businessmen. This is certainly true of the plumbing contractor. A well-known accountant, J. K. Lasser, some years ago estimated that 75 percent to 80 percent of all small businesses fall by the wayside in any given 10-year span.

Depending upon the nature of the small business, its operator encounters almost all the problems of a large corporation, but in a minor degree. He is concerned with tax returns, Federal, State, and local. At times he may be involved in labor relations. He must study social security provisions. He must know something about the economic position of the industry of which he is a part. He must know his market and how to cultivate and develop it.

If he knows the elementary principles of good business and human relations, his chances for success will be greatly enhanced. Before starting out in business the small businessman mut be concerned with such problems as selecting a location, building, layout and equipment, financing and forms of organization.

He must know how to ascertain his costs of operation, including an accurate knowledge of overhead, items including direct and indirect labor costs, costs of sales, office operations. He must know how to keep accurate records and know the principles of cost accounting. He must know inventory control, purchasing techniques. He must know the principles of salesmanship, of advertising, credits, collections, business insurance, and a great many other items.

The small businessman is dependent on his own judgment and information. He may be unaware of the advent of business recessions until he finds himself in the midst of one. Obviously, business can

not be operated on the basis of hunches, intuition and vague memory. There are no substitutes for information and training in these matters. It is in this area of training for small business operations that H.R. 357 can make one of its greatest contributions to our economy. Small business in the United States deserves the continuing adult education service which this program could provide. The health of small business in our society and the opportunity to succeed in small business is vitally important.

The small business operator is reluctant to leave his place of business and go any distance for an educational project. Absence for even a day or two generally means a significant loss in business. It is, therefore, most important that the educational project be brought to him at such place and time where he may avail himself of its benefits. This is made possible through the extension service which can be made more effective to a very necessary degree by increased funds and facilities.

The large corporation has its training department and can employ business specialists. It has access to whatever professional advice is necessary. The small businessman is limited in his access to these advantages and sources of assistance.

The personnel needed to assist the industry must have a thorough knowledge and acquaintance with the needs of the industry if the programs offered are to be most effective. If finances permit, specially prepared charts and other audiovisual aids will make the educational projects more valuable to the industry.

The average plumbing contractor has had little formal business management training as a general rule. The importance of his service to the public and the preservation of public health and safety through the proper installation and maintenance of sanitary equipment for the home, office, factory and other types of buildings, require that he have the technical skills needed.

As a businessman, he must also have the necessary equipment and organization if he is to be in a position to render this vital public service. Because of a great many factors, the formal training of the plumbing contractor has been a matter of individual initiative and desire. Until recently, except for sporadic attempts, there has been little planned industry business management training.

After a long period of planning, discussing the needs of the industry a program has been developed in conjunction with the Pennsylvania State University whereby a carefully planned series of courses in essentials of business management has been offered to the plumbing contractors throughout the State.

Ten courses involving over 200 in the initial series have been completed. These consisted of a combination of lecture and discussion programs following a carefully prepared course outline, 1 night a week for 6 weeks, in 10 separate locations throughout the State. The reports by those attending were most gratifying.

During the series everyone obtained information of great value. It is planned that there will be many more of the initial courses instituted throughout the State. These will be repeated until every contractor of record has had an opportunity to avail himself of this basic training.

There will be refresher courses to follow the initial courses. Beginning early this fall the advance courses will be made available. These will accent and emphasize sales and merchandising and the human relations involved in this important phase of operation.

Only a few of the many manufacturers and wholesalers who represent the other two segments of our industry have shown their interest and cooperated actively in this overall program. It is expected, however, that as a result of the success of the initial series, both groups will be greatly interested and will assist in the enrollment of the contractors in the courses to come and will cooperate in many other ways.

The great results of the initial series of this educational-merchandising program could not have been attained to the extent now a matter of record without the facilities of the extension service of Pennsylvania State University. It would have been impractical and unfeasible to consider the establishment of an industry institution to conduct this type of program because of problems of financing and staffing and the other necessary requirements of such an important establishment.

The certificate which was awarded by the Pennsylvania State University to each participant who completed the courses was and is highly regarded and greatly respected because of the magnificent experience and the record of achievement of the university in industry training. The participants in the courses are in a position to perform more efficiently in the course of rendering their important services to the public.

As these participants take the advanced courses, there will be a still greater improvement. It is without question that every contractor will need these basic advantages and refresher courses that are planned as a part of this great program.

This educational-merchandising program was originally designed to serve as a national pattern which could be adopted by the plumbing contractors in every State. This objective cannot be too strenuously emphasized because of the fact that the basic problems inherent in the plumbing contractor segment of the industry in Pennsylvania are identical with the problems in the rest of the United States.

The National Association of Plumbing Contractors officials indicated great interest in the program. A national wholesaler magazine, the Supply House Times, has also indicated great interest and has requested information and material which will be used in one of its issues in the very near future.

Both the national association and the wholesaler groups contacted recognize the fact that this program will set a national pattern for the industry. As a very interesting result of the initial series of the educational-merchandising program and in keeping with a recent industry development, there is now being offered by Pennsylvania State University a course in electrical heating. This is now being attended by plumbing contractors as well as electrical contractors throughout the State.

Since the origin of the land grant colleges and universities almost 100 years ago when the initial grants of land were made for the purpose of establishing agricultural extension courses basically, the agricultural industry, if it may be termed that, has greatly profited and benefited by the far-seeing benefactors who established this program.

If it may be termed a subsidy, it is apparently a well deserved subsidy in terms of the benefits the public now receives from continuing improvements in the field of agriculture. Small business has had no such subsidy or better long-range planned assistance.

Experiences and lessons learned in the course of the first series of the educational-merchandising program previously referred to proved the need for additional facilities in the extension services now available to industries other than agricultural in Pennsylvania and in other States.

Additional staff to conduct the courses are sorely needed and just as important skilled and informed personnel are sorely needed to prepare course outlines realistically and in light of a real understanding of the industry's needs.

It is interesting to note that in Pennsylvania, the State is regarded as two-thirds urban and one-third rural. This is in consideration of the fact that the population in a given area under 2,500 classifies it as rural and not urban. It would seem only logical that the industries located in the urban areas should have available Pennsylvania State University extension services in a greatly expanded degree.

This should be so particularly in view of the comparatively vast extension services now available to the agricultural interests. The costs involved in the program which will be made possible upon the enactment of H.R. 357 are relatively small in terms of the great benefits to be derived by small business.

The results of the extension services available to the agricultural industry over the years have proven that the funds made available to land grant colleges and universities in the past were an extremely good investment and brought great benefits to the consuming public. It would certainly follow that investment to permit the improvement of the services rendered by the small businessman would be of great benefit to the public.

The passage of H.R. 357 is not a direct subsidy to small businesses. It simply gives the small businessman an opportunity to compete on a more nearly equal basis if he avails himself of the educational services which it provides.

It is most strenuously urged that H.R. 357 be enacted into law and the funds provided in the proposal be made available as quickly as possible to the land grant colleges and universities.

Mr. ELLIOTT. Thank you very much, Mr. Thellemann.

Because of the pressure of our time this morning, if it is agreeable with the other members of the subcommittee, we will forego questions. Mr. THELLEMANN. Thank you very much for the privilege of appearing.

Mr. ELLIOTT. We appreciate your coming.

Our next witness this morning is Mr. Herbert Levy, president of the Demford Knitting Mills, Lebanon, Pa.

Mr. Levy, you may proceed. I regret to tell you that I must limit your time.