Evening star., 1933-07-02
Cities, Counties and States
Required to Put Up Good
Security for Aid.
EMPLOYMENT SPEEDED
BY FEDERAL AGENCIES
Spurring of Big Industries to File
Recovery Codes Indicated by
Administration.

The Government moved into action
yesterday to muster some of the vast
army of the Nations unemployed on
public works projects, a part Of its
s3.300,000,0o0 national recovery pro-
gram.
Its special cabinet board ruled that
outright grants to States, counties and
cities would be limited to 80 per cent
Of the cost of labor and material going
into projects coming under the CLASH
f1cation of fundamental necessities"
At the same time Administrator Hugh
S. johnson of the industrial control
section sought ways to stir industry into
speedier action on minimum wage
maximum hour codes to be presented
under the recovery act.
Interest Rate Fixed.
The special cabinet board also fixed
an interest rate of per cent on all
financing of projects. To this was added
the stipulation that loans must be
amortized within the reasonable life
of the project" but in no event not
more than 80 years.
Mobilizing of qualified workers who
may be requisitioned for the public
works program was started late yester-
day by Director w. Frank Persons Of
the United States Employment Service,
which earlier in the day officially
opened its Office in the Labor Depart
ment
The special cabinet board allocated
S500,O0 to the service to start this
work. Persons said he expected to spend
100000 to spread a network of re-
employment agencies where needed to
be ready to operate Immediately.
Later. Secretary of Interior Ickes,
chairman of the special cabinet board,
made a similar announcement and
added that his committee would have
ready for President Roosevelt on his re-
turn here Tuesday a list of nominees
to be State administrators through
whom all applications for works other
than Federal projects must come.
Long List of Candidates.
Asked if the board would recommend
only one for each State or send along
several nominees, IckeS smilingly said,
the list probably will be about as big as
a telephone directory" and that the
next step was up to the White House
Unemployment agencies equipped to
help supply workers on projects author
lied by the public works administration
can now be definitely organized with de-
sirable standards" Persons said. THE
United States Employment Service will
proceed to organize unemployment
agencies in many of the counties of the
United States so that there will be places
at which lists of qualified workers may
be available to employers.
"The local agencies will be responsive
to the needs of their own communities
and will be under the management Of
local committees.
In order to organize and supervise
such Unemployment agencies in sub
stantial number of counties in each Of
the States it will be necessary to set
Up State organization in each of the
States. Uniformly this will consist of
State director Of unemployment and
one or more field representatives, the
latter supervising the local re-employ-
ment agencies. The United States En-
ployment Service will provide a direc-
ton of this Unemployment service at
headquarters here in Washington"
Labor Policy Adopted.
The labor policy adopted by the spe-
cial cabinet board provides that local
labor appropriately to be secured
through employment services should,
so far as possible, be selected from lists
Of qualified workers submitted by local
agencies designated by the United
Employment Service" This means ac-
cording to Mr.. Persons, that the inter-
ests of organized labor as well as of
unskilled labor are to be recognized. and
that the preferences guaranteed by law
are to be safeguarded.
The Unemployment service to be set
up, Persons pointed out, will in no way
duplicate the work to be done by the
created by the Wagner-Peyser law,
gress. The work of that agency, which
service, will also be expanded as rapidly
is to be supplementary.
to States, the public works board set
up an opinion that the various political
subdivisions might borrow from the big
fund up to 10 per cent of the total cost
Of such construction jobs.
Donald H. Sawyer, public works ad-
ministrator. and other board officials
declared, however, there would be very
few instances in which the Govern
ment would supply 100 per cent of the
funds
AS an example, if the total cost Of
project was $1,100,000 and the labor
and material costs amounted to 81 ,000,-
00o of that sum, the outright grant
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