Evening star., 1934-11-26
BIC j. s. HOUSING
PLAN HIT BY DAY
New York Realty Operator
Fears Blow to Capital in
Ickes' Proposal.

Attacking the proposed $4,000, ,000,-
900 Federal housing program as .
death blow at private capital and
initiative in the building field, Joseph
p. Day, wealthy New York real estate
expert and operator, has sent a letter
to President Roosevelt urging recon-
sideration of the tentative schedule
recently outlined by Secretary OF In
terror Ickes.
While approving the Government
efforts to enlarge the guarantee OF
mortgages through the Federal Hous-
ing Administration, Day sets fortn
forcibly his reasons for opposing any
plan whereby public funds would be
invested in the construction OF apart
ment houses and private residences.
He asserts that the SIS per month
per room rental sought by the housing
planners carries two terrible impilca-
tions." Primarily, the rent level would
be an unanswerable threat to private
construction and financial interests.
which could not meet the low cost
competition.
Rent Held Impossible.
ut is an absolute impossibility TO
build any modern apartments to rent
at SIS a room," he says. But the
very talk of it as possibility IN the
newspapers will fool the public into
thinking it is possible. and will con-
slider that the private owners who
demand more are swindling them.
The second major fault, Day con-
tends, is the necessity for tying up
permanently such funds as would be
invested in the buildings.
Even granted that Mr.. 1ckes gets
all he desires in the way of free land,
free water, freedom from taxes, free
Fairgrounds and free schooling i'm
mediately adjoined, yet on q S5-a-
room plan they cannot pay interest
on the Federal money invested and
certainly cannot amortize the invest
ment,' he holds.
Inclosed in the letter to President
Roosevelt were several newspaper clip
pings, from which Day said he un-
derstood that Secretary Ickes is con-
yinced that private capital has shown
itself either incapable or not inter-
ested in building, that he is going to
press for huge low-cost Government
housing program, and that he Will use
all his influence behind move for
Federal acquisition of land and build
ing operations in both urban and
rural districts"
Challenges Comparison.
Day challenges Secretary Ickes'
comparison of housing with the utility
field, asserting that utilities are mat
tiers affected by public interest and
are natural monopolies, and, in the
majority of cases, interstate. Hous-
ing is particularly. and always has
been, a private matter and absolutely
local. There is nothing whatever in
the Constitution or our scheme of gov
eminent authorizing or indicating any
Federal interest in the housing ques-
ton. There is nothing in it even to
warrant a State to build houses. The
most that the State or municipality
should do is to make regulations pro-
viding for health and safety"
Secretary Ickes' reported statement
that Government housing Is needed
because of lack of private enterprise
"is a very grim joke" Day wrote.
Raps Scare Talk.
I'VE must bear in mind that for
fully year Secretary Ickes has been
soaring private enterprise with his
talk Of public competition. We know
that he has been demanding tax ex-
emption and various free services from
the municipalities. How would any
private builder or lender dare COM
pete with that, except on the very
small and restricted scale that they
have been doing?"
In his opinion, Day states, the mort
gage lending situation is clearing up
very nicely" and there has been
renewal of mortgage building loans by
the large banks and insurance COM
panies.
The Government is now faced, as
Day pictures the situation. with the
problem of rehabilitating the private
building industry or embarking on a
voyage (which must frankly call
'Communistic' or 'Socialistic'"
In closing. Day paraphrases the
famous expression, This Union can
not persist half slave and half free"
declaring This Union cannot persist
half Communist and half Capitalist. -