Evening star., 1932-08-28
n.lav in R. 2. c. Loans.

Delay in R. F. c. Loans.
with the Reconstruction Finance
corporation able to lend some sl,ooo'-
900 900 for the financing of public WORKS
and semi-public works OF a sen-A-
erioatins character and thus stimulate
employment and manufacture OF mate
nals. criticism is already being ao-
v.nced for It's failure thus far to leno
rs much as q penny.
Even before the passage OF the re-
lief bill the American Society OF CiVA
Engineers had prepared a list OF pup
lie works of a character contemplated
by the legislation that would require
n total expenditure Of about sl,4o2'-
900 900. Already there have been re-
ported applications for loans for ensi-
neering projects to cost in the neisn-
borhood of $3.50, ,oOO, 900, and New York
state alone is understood to have
bridge program-amounting in all 10
ASS ,0oo, ,ooo-ready to be undertaken as
soon as the financing can be arranged
The relatively short time in which
the Reconstruction Finance Corpora
ton has been given in which to Or
ranize its own forces for investigaton
OF projects might be advanced as one
obvious reason for delay in granting
the loans. II New York wants to bui>e
a s75,ooo,ooo vehicular tunnel from
West Thirty-eighth street to Wee
havken, the r. F. C.'s board OF en-
eineers must investigate the project
from the construction as well as the
financing point Of view before 1t can
even make q report. This vehlcular
tunnel is only one Of numerous pro-
posed projects.
But in his address to the business
and financial men here Friday Presi-
dent Charles A. Miller Of the Recon-
struction Finance Corporation shed
light on another factor already caus-
ing delay. "If the corporation Will act
with suficient courage and can act
with sufficient speed. it should be POS
sible to give employment, with FUNDS
made available under these provisions
to large numbers Of workers in the
very trades least employed" he said.
"Rut already opposition is making Its
appearance, and there seems a hken-
hood of the corporation being obliged
to decide. in many cases, vigorously
debated question as to whether the
proposed project is really advantageous
to the community or even TO the very
classes to whom employment Will be
given"
The ramiications Of that problem
are not difdcult TO understand. An ex-
cellent example OF the difference OF
opinion, in the community affected. over
the feasibility Of q project might be
cited in the case Of the proposed $l5,-
ooo, 900 bridge over Chesapeake Bay.
Are Marylanders of one mind con-
cerning it? 1t is known that some OF
them consider 1t chimerical and merely
another grand scheme to soak the tax
payer. Gov. Ritchie's bridge commits
sion has reported that it is practical.
But Maryland organized labor has let
it be known that II 1t comes to
question between q privately built and
owned toll bridge and jobs for unem-
ployed State mechanics, labor would
rather lose the opportunity for en-
ployment. And II the bridge is to be
undertaken as State venture. leg1s-
lation must, Of course, be enacted. A
lot of sea nettles will be born and will
die before that can take place.
Another hitch in making these
loans Is found in the definition OF
what constitutes self-liquldating
project. These, the act states, are
those that will be made self-support-
ing and financially solvent and the
construction cost thereof will be re-
turned within a reasonable period by
means of tolls, fees, rents or other
charges, or by such other means (other
thaA by taxation) as may be pre-
scribed by the statutes which provide
for the project" The first draft OF the
bill used the term revenue producing
public works. There is difference be-
tween revenue producing and SELF
lquidating. While the statutes may
declare that projects will be SELF
liauidating, the r. r. c. must OF
course, satisfy itself that they are This
also takes time. Merely because the
money is there, it does not follow that
the r. F. c. can spend it like q
drunken sailor.
Any corporation that in the course
of a lifetime directed the expenditure
of a billion and half dollars on prof.
ects that would pay for themselves
might consider itself in possession oi
as fine an aggregation OF financial
brains as were ever assembled under
a single roof The r. F. c. cannot oe
blamed If it fails TO accomplish the
same thing within year.
+a.ebsr of the peOple a dema,