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By KENT MOXEY executive vice President

'|. HE Select Committee on Small I Business of the U.S. Senate held a hearing on problems confronting small business recently in Denver, Senator Floyd Haskell of Colorado presided. It is gathering information to determine how Congress can be helpful in assuring that small business, as the backbone of our economic system, will prosper.

Some of the topics brought up by the many witnesses who testified were: o The growth of big business-mergers, monopoly-tends to reduce competition and eliminate small businesses. o Lack of capital availability. This problem is compounded by higher costs of inventory, wages, freight rates, etc. Mention was made of the plight of the rural small business which does not have the advantage of volume buying. o Some policies of the Small Business Administration make it difficult or impossible to get assistance and fulfill the basic purpose of that agency. o Ever more burdensome regulations and reports-OSHA, consumer protection, wage and hour, pollution control, pension reform, etc. Compliance with all these things creates a drain on small business that depletes its strength. o A bank expert of many years in small business lending listed the following areas where small businesses need strengthening in order to survive and prosper:

(l) Recordkeeping and financial reporting

(2) Marketing and contract procurement

(3) Costing goods and services (this area needs expert and close attention that many small businesses do not have)

(4) Purchasing

(5) Personnel policies

(6) Knowledge of general business conditions and ability to forecast

Dick Gittings, Gittings Lumber Co. submitted a written statement to the hearing. It was supported by organizations representing lumber and building material wholesalers. distributors and retailers.

It recommended an increase in the corporate income tax surcharge exemption from $25,000 to $100,000 retroactive to January l, l9'75. This would increase the amount of .capital available to the small business to help compensate for higher costs of inventory and overhead.

The statement also urged the committee to oppose legislation that would impose a capital gains tax on assets transferred at death and which would result in the demise of the small closely-held family coiporation beyond one generation.