Evening star., 1933-03-25

(Continued From First Page.)
ownership 8. Housing law 4. Alter
native solutions, to be considered on
their merits.
The first Of these possibilities the
group discarded with the observation:
"The facts are that such improve
ments as have taken place in new con-
structicn for the lower income groups
have been possible only through build,
ing and coming regulations which were
opposed precisely because they consti-
tuted departure from the policy of
'laisseZ-faire.'
Municipal ownership Of housing de-
velopments, a solution adopted by nu-
merous European cities. would be in
acceptable to the American public, the
committee believes.
Discussing the housing law. the
group makes this comment: IT we
analyZe the reasons which make 1t i'm
possible for unaided private initiative
to provide satisfactory solution for
the problem of blighted areas, it be-
comes evident that the most serious
single obstacle IS the present divided
nature of the ownership of the prop
erty.
THE reconstruction Of blighted areas
must be done on a large scale in or
der to be able to change the character
of a neighborhood. Large scale op-
erations also are desirable for the pur-
pose of greater economy in construc-
tion and for the purpose of the log
ical comprehensive planning Of an en-
tire neighborhood as unit. This as
sembly of property under one owner
ship is practically impossible without
exercising the right of eminent do
main.
Condemnation privileges should not
be granted indiscriminately A reason
able basis of granting such privileges
would appear to be the provisions of
the New York State housing law,
passed in 1926, which considers lin
tied dividend housing corporations, In
effect, public utilities. The creation of
a housing board, which is necessary in
order to provide for the proper regula
exercise the right of condemnation,
also makes possible the solution of an
other difficulty A great deal of study
and investigation remains to be done
with reference to the problem of
'blighted areas collection Of data, etc
It should be the duty of the technical
staff of the housing board to make
housing studies which seem to be be-
yond the ability or willingness of in
dividuals, corporations or organized
groups to undertake"
Long Range Program.
Under the bill as now proposed, the
committee points out, it will be pos
sible for limited dividend corporations
to acquire one or more squares, not
with the thought of Immediately erect
ing new buildings, but Of developing q
1ong-range program for the amortiza-
ton Of the value Of the buildings.
Expressing its belief that it will be
possible to amortize the value of the
structures erected, the committee points
out that the present properties should
be purchased at a figure which would
allow from 6 to 8 per cent on the
equity. 1T Is not the present sit,,a-
tion Of the owners which is hopeless
from a financial point Of New," they
state, but the long-range situation as
a result of receding population tide"
Lower interest rates, a minimum Of
vacancies and economies in manage
ment also would effect savings, the
committee said.
THE amortization period might ex-
tend from 10 to 20 years." the report
says, depending on the success Of the
particular undertaking. At the end of
that period it would be possible to
erect new buildings on the basis of
capitalizing the land value only, in
stead Of the cost Of the land plus the
buildings This makes it possible to
build either two or three story houses
or apartments. as well as higher
structures, on the basis Of actual needs
and requirements, rather than on the
basis of financial necessity"
The committee states it is mindful
that the proposed housing law is not
a cure-all for the numerous ills of the
housing industry 1T represents the
enactment Of the minimum of public
regulation or help which conditions re-
quire. Without it, 1t Is not fair to say
that private initiative has failed, for
private initiative cannot cope with
existing conditions. With it. private
initiative Is given the means to solve
the problem. We hope and believe it
will find the ability to do So
The survey of the committee dealt
also with taxation. pointing out that
the District of Columbia has fixed
boundaries and must look to territory
within these boundaries as the source
jpf taxation. when this territory has
fbeen completely built up, the value of
1.-THE residential real estate within the
District, under present methods, would
sbeg1n to shrink. since practically no
new pullo1ng taxes place IN 1ully de-
veloped residential areas and the value
of the improvements decreases" the
report states.
Attack On Stagnation.
Commenting on the results of con-
struction inventory, the committee re-
port reads: "An industry of the size
and Importance of the building industry
cannot be allowed to remain in q con-
dition Of permanent stagnation without
seriously disturbing our whole economic
system. Considerations of the general
public welfare as well as the welfare
of those engaged in the building in
dustry should lead to finding new
outlet for its production. The gradual
rebuilding of the older portions of our
cities presents legitimative outlet
The report advocates erection Of
buildings during periods of low prices.
rather than during boom times when