Arkansas – Forrest City

California – Dublin & Taft

Colorado – Florence

Florida – Coleman, Lompoc,

Kentucky – Ashland

Pennsylvania – Allenwood,

Michigan – Milan

West Virginia – Morgantown

Oregon – Sheridan

Texas – Texarkana

West Virginia – Beckley

"... So in the 1930s, when the Federal Government said we need to have prisoners working, we need to have them employed, as the Federal Government established Federal Prison Industries, as they established UNICOR, they said we need to make sure that we keep Federal prisoners, people who have broken the law, that we keep them busy and we keep them occupied in such a way that there is minimum competition with private industry or private labor. It is a great goal; it is a great objective. That is the mandate of Federal Prison Industries. Too bad, 70 years later this company has forgotten its roots. This goes through this administration, it goes through the Justice Dept. Under this administration, Federal Prison Industries has become a growth industry. Net sales increased last year from $583 million to $678 million. Imagine that you had constituents inyour hometown who worked in the office furniture industry, who worked in the textile industry, who made automotive components, who made a whole series or range of products. Many of these industries are hurting.

Federal Prison Industries grew office furniture from a business of $74 million to $117 million, a 24% growth rate. As Federal Prison Industries, as this administration, as this Justice Dept. has grown, Federal Prison Industries at a rate of 24%, the industry has decreased by 40%. The office furniture industry in America today, whether it is in western Michigan, whether it is in Iowa, whether it is in Pennsylvania, or whether it is in factories down south, is in a recession. Some would say it is more close to a depression. The overall industry volume has declined by 40 percent."

- House Congressional Record, May 20, 2003

‘‘The sad story in America, in the American economy today, is that one of the fastest growing businesses in America, one of the fastest growing manufacturing and service industries in America today, you will not find traded on the NASDAQ, you will not find it traded on the New York Stock Exchange, you will not find it listed in NFIB as one of the fastest growing entrepreneurial companies in America or one of the fastest growing small businesses in America. The sad point is one of the fastest growing companies in America today is a company that pays 23 cents an hour, provides no benefits and pays no taxes and is run by the Federal Government and attacks American workers and their families each and every day. For Federal Prison Industries it is a growth business, such a growth business that a little less than a year ago, Hathaway Shirts in Maine had to shut their doors after a major shirt order went to Federal Prison Industries and did not go to private competition, to the private sector. Some may say this is what it means to create highquality, high-paying jobs in America. But for these 21,779 workers it means being paid at a rate of 23 cents to $1.15 an hour. Not a bad deal. Not a bad deal for the Federal prisons, but a terrible deal for the workers at Hathaway Shirts; a terrible deal for that community in Maine that now has a factory whose doors have been padlocked, that has lost revenue in the tax base. There is something wrong with this picture when the administration decides that creating jobs in Federal prisons is more important than keeping employers employing people in the private sector. But like I said, at least the folks in this Justice Department have defined Federal Prison Industries as a growth industry in America and an industry that they have grown by 16% over the last year, and where, in some cases,they have put in place plans to grow certain market segments by up to 50 percent in 2003. By the way, as we close factories in your community and those tax dollars are lost to the community, sorry, we are not going to add back into your tax coffers with our 111 factories or the 17 new ones we are going to build. That is just a loss for the community, and we are sure you will get over it." - House C.R., May 20, 2003

"...Shame on this Justice Department.

Shame on this Justice Department for putting American workers in a Position where they cannot even compete for their  own jobs.

Shame on this Justice Department for forcing the American Federal Government to buy Canadian products..."

- House C.R., May 20, 2003

‘‘The Justice Department is bent on growing Federal Prison Industries, and they do not care about putting more American workers out of work."

‘‘Federal Prison Industries grew office furniture from a business of $74 million to $117 million, a 24% growth rate. As Federal Prison Industries, as this administration, as this Justice Department has grown, Federal Prison Industries at a rate of 24 percent, the industry has decreased by 40 percent. The office furniture industry in America today, whether it is in western Michigan, whether it is in Iowa, whether it is in Pennsylvania, or whether it is in factories down south, is in a recession. Some would say it is more close to a depression. The overall industry volume has declined by 40 percent."

- House Congressional Record, May 20, 2003

1. Who are the share holders in the private corporation known as Federal Prison Industries, Inc?

2. Where do the profits from this corporation go?

3. Why is Federal Prison Industries exempt from paying any Taxes if it is a for-profit Corporation?

There are 111 prison factories in 71 different locations around America. The Justice Dept. wants to build 17 more in the next five years!

 Fleet management. Vehicular components. The business group. Rebuild and refurbish vehicle components. New vehicle retrofit services. Customized services and programs. Turn-key solutions.

 Law enforcement, medical, military and institutional apparel. Mattresses, bedding, linens and towels. Embroidery, screen printing, custom-made draperies and curtains.

Industrial products. Dorm and quarters furnishings. Industrial racking. Catwalks. Warehouse office shelving. Custom fabricated industrial products. Lockers and storage cabinets.

Graphics business group. Custom engraving and printing on awards, promotional gifts and license plates. Interior and exterior architectural safety and recreational signs.

Printing and creative design services. Remanufacturing of toner cartridges.

Office furniture group. Office furnishings and accessories. Seating products Case goods. Training and table products.

Office systems products. Filing and storage products. Packaged office solutions. A turnkey solution.

Electronics business group. Exterior and interior task lighting systems. Wire harness assemblies and circuit boards. Electrical components and connectors. Electrical cables, both braided and cord assemblies. Phoenix, Arizona Rochester, Minnesota

- House C.R., May 20, 2003

‘‘So while this Justice Department continues on its growth path and says, in the Justice Department we believe in creating high-quality, high paying jobs, we are going to create more of those 23-cent an-hour jobs, we are going to create more of those 40-cent an-hour jobs, we are going to build more of those factories that pay no Federal taxes, that pay no local taxes, and pay no State taxes. Because we think that that is good for America's economy. "

- House C.R., May 20, 2003