Evening star., 1934-11-24
lckes and Moffett Prepare
Joint Statement CIosinq
Incident.
ACCORD is REACHED
IN TW0-H0UR FARLEY
Business Aroused by Statement
1ckes' Plan Would Wreck
Housing Act.
BY the Associated Press.


administrator, and Secretary Ickes
framed a joint statement today de-
signed to wind up the incident be-
tween them over private and Federal
financing of housing.
Evidently at the instance of Presi-
dent Roosevelt, both hastened to the
White House in the forenoon TO sit
for almost two hours with Stephen
Early. presidential secretary.
A statement was painstakingly pre-
pared, presumably to be issued before
the day is out. The substance was
withheld meanwhile.
Ickes was accompanied by Michael
Straus. Public Works Administration
publicity director and actually ran
through the lobby of the White House
to Early's Office
1t was understood that Moffett's
statement last night to the effect that
the carrying through of Ickes' ideas
for housing construction would wreck
the national housing act mad aroused
business throughout the country.
Telephone calls and kilograms we're
pouring into the White House indors-
ing Moffett's stand and pledging CO.
operation in defeating the Ickes pro-
gram as it relates to the construction
of individual homes.
Would Freeze Capital.
Aroused by Secretary Ickes' sugges-
ton for a vast program under which
Government money would be used to
build inexpensive homes and sell them
to the public at interest of 3 per cent.
Moffett assailed it as disastrous.
Private capital would Immediately
freeze up again" he said. and rlal
estate values throughout the country
would be knocked down overnight to
20 cents on the dollar of present
values"
There should be no Government
competition with private capital in
constructing homes for sale" he in
sisted.
His statement came shortly after
Ickes, attacking interpretations which
he said had been placed on his re-
marks in a press conference Thurs
day, hastened to declare he strongly
Endorsed" the housing drive Nloffett
heads. Under this plan the Govern
ment seeks to stimulate the use of
private funds for home building On a
vast scale.
Desires Private Expansion.
81 reiterate," Ickes said, that it is
my personal and official desire that
private initiative expand to the limit
of its ability efforts to make possible
desirable housing contribution and
thus further the recovery program"
Misguided" reports had been pub
lished, he said, creating "a false i'm
preston that I am opposed to re-
sumption of private enterprise in the
field of housing"
Ickes, regarded by many as leader
among the more liberal members
of the administration, had said on
Thursday he believed the Govern
ment could build better and cheaper
homes than private capital He men,
toned potential costs as low as 81 600
per house.
The Government" he said, "is not
4SOhAAAS Iva OheA q WIZ n oAA0
sponSibilitieS, but we can't sit around
indefinitely waiting for private capi-
tai to come in"
Moffett, although agreeing that
such things as slum clearance and
subsistence homesteads might well
receive Government aid, opposed
competition with private enterprises.
mo money would be loosened and
the housing act would be torn up"
he said, building and selling houses
would be putting the Government in
competition with private enterprise"
Ickes Explains Stand.
1t was learned yesterday that Ickes
earlier in the day had called Moffett
to tell him he did not intend his pro-
gram to conflict with the Housing Ad-
ministration.
Other administration representa-
tives we're active by telephone in dis
cussing the situation with both men.
Moffett then postponed conference
with newspaper men to give Ickes time
to issue a statement explaining his
stand
The Public Works Administration
Federal housing projects are UNDER
taken in fields in which private enter
prise has not entered" the Ickes state
ment said. IT am familiar with and
strongly indorse the program of the
Federal Housing Administration to en-
courage private capital to engage in
housing. This is sound policy and is
not in conflict with the public works
housing program already under way"
Moffett agrees with Ickes that there
should be wage adjustments in the
building trades in low-cost housing
areas.
1T seems natural to me-" said Mof-
felt, turning to the general question
of housing and the P. w. A. program,
that If the national housing act
means what it says in name, it is the
: intention of Congress that private en-
terprise shall carry out the construc-
ton work
THE flight Of capital from home
building was due to the flood of FORE
closures that faced it. The Home
Owners Loan Corp. was formed to
stabilize the mortgage market. The
| moment this is done private capital
will come back in.
Title provides strictly for pri-
vate building and is financed privately
except for the 100000 voted by
Congress to start it.
LAS 7 see it, the Government can
not compete with private enterprise.
No money would be loosened and the
housing act would be torn up. Build
ing and selling houses would be put
ting the Government in competition
with private enterprise.
"If the national housing act means
what 1t says, the real housing actiu-
ties will come under the act"