Evening star., 1932-10-17
DELAY IN STARTING
HOUSING PROJECTS
FOR RPOOR ASSA|LED
Former Architects Head De.
nounces Hostility to
R. &c. Loans.
"DIRECTOR OF COURAGE"
IS HELD RELIEF NEED
Statement Deplores Overlooking Of
Opportunity to Better Homes
and Aid Employment.

Vigorous protest against delays in
starting housing projects for families in
the low-income brackets and for slum
elimination, through loans from the Re-
construction Finance Corporation, was
made today by Robert D. Kohn, past
president Of the American Institute of
Architects.
In a statement released nationally
by the institute, Mr.. Kohn denounced
hostility Of investors and real estate
interests" to loans by the Reconstruc-
tion Finance Corporation for such pur-
poses, and also quoted "rumors" that
such projects are being delayed by de
mands Of Uncle Sam for high inter-
est rate and too-small percentage ratio
Of loan to cost"
"Low-cost housing and slum clear
ance," Mr.. Kohn declared. provide two
OF the programs in which men can be
put to work on the production OF useful
things of which there Is not already q
surplus.
Ignorance Held "Inexcusable."
Deploring the failure" of the Nation
to awake to the opportunities for better
housing and increased employment Of
fered by the self-liquidating provisions
of the emergency relief and construc-
tion act of 1882, Mr.. Kohn said there is
no longer any excuse for ignorance OF
the degraded housing in which many
city and country families live.
Belief that something worth while
may yet be accomplished in the direc-
ton of self-liquldating projects, how
ever. Is voiced by the architectural
leader.
THE Reconstruction Finance Cor
poration needs somewhere in its organi-
Zation a director of courage, one who
will smash through circumlocut;on ma
chinery already built up in the Recon-
struction Finance Corporation, because
he knows that war is being fought
sgairst deadly inaction in the face of
unemployment
Encouraged Housing Boards.
The emergency act. he continued. was
designed to encourage States to create
housing boards and to start large-scale.
limited-dividend building for the lower
income groups, where possible. in slum
areas.
The call by Mr.. Kohn for accelera-
tion OF housing projects. through Gov
1crnment aid, drew from w. c. Miller OF
this city, who Is president-elect Of the
National Association Of Real Estate
Boards, the declaration that Govern
ment subsidies for home building means
an increase in the burden of taxation
now borne by property owners.
To the charge by Mr.. Kohn that "the
real estate opposition seems utterly un-
social" Mr. Miller replied: What Mr..
Kohn apparently had in mind was that
the real estate opposition was utterly
u1sccialistic. The two words are as far
apart as the Poles. Real estate inter-
ests have always been opposed to So
cialism, for real estate interests are
based upon the capitalistic theory of
government"
Further explaining the position of
real estate owners, Mr.. Miller said:
Every right-thinking man would like
to have his fellow men well housed,
clothed and fed, but, unfortunately. this
has never been possible in the history
of civilization.
Property Owners Averse.
IT our cities are to be relieved of
our slums, some one must pay the ex-
pense. If government is to pay the ex-
penSe this will be reflected back upon
the taxpayer, who in large measure
is the real estate owner. Since the real
estate interests already are suffering
from a tax burden which has been rec
ogniZed by the candidates of the two
major political parties to be excessive,
they are naturally averse to being sub
jected to higher tax rate than already
exists.
Since real estate represents, as do
other forms of capital, the accumu-
lated fruits Of labor, to destroy real
estate by excessive taxation would be
to destroy the reward Of industry. Such
q step as recommended by the American
Institute of Architects. or by Mr. Kofn,
would be an almost direct step into
socialistic era.
THE Reconstruction Finance Corpo-
ration has very wisely and very properly
refused so far to subsidize such projects
as are recommended by Mr.. Kohn and
it probably has taken more courage to
resist the demands which have been
made upon it than to have yielded to
the great pressure which has been and
is being exerted upon it for the grant,
ing of these loans"