The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-08
Lack of Suitable Plan Is
Blamed for Action.
Reports Say.
CITY'S PLAN IN DANGER
Point of Law Believed to Be
Troubling High
Officials.
BY LYLE c. WILSON
United Press STAFF Correspondent

WASh1NG1 ON, Jan. 6.-OSe or
federal funds for slum clearance and
housing projects in general has been
abandoned as a major part of the
Roosevelt recovery program, the
United Press was informed authori-
tatively today.
Lack of a suitable plan caused
this rather abrupt change in adj
ministration policy. It is expected
to block many of the housing loan
4 projects which now have Interior
Secretary Harold Ickes' tentative
approval
The public works administration
so far has allocated $148,000,0O0 for
low cost housing and slum clear
ance projects.
approximately S48.OOO,0O has
been allocated to limited dividend
corporations established under
state laws. The remainder is ear
marked for the federal housing cor
poration. Very little money actual
ly has gone out.
Contracts for two projects have
been signed and a third contract
approved. The works contemplated
under these presumably would 90
forward regardless of any decision
regarding housing in general.
Little Is Advanced
The Federal Housing Corpora
ton, a recently created subsidiary
NJ tho DIVA hoe n Jv-oyoo5 - 1;4Ai-
money that its officials describe the
sum as negligible, although refus-
ing to state exactly how much is in
volved.
The three projects mentioned in
the foregoing are: $3,450, 900 for the
Borough Of Queens, New York
City; $1,O0O,000 for the Euclid Hous-
ing Corporation, Euclid, O., and
$200,00 for Raleigh, N. c.
Problems Of transportation, rental
and an existing surplus Of suburban
housing are understood to have
disregarded the administration from
diversion Of tremendous sums to
such works.
Smith Chief Backer
Bound up in the question appears
to be new point of dispute between
the new deal and the brown derby.
Former Governor Alfred E. Smith
is one of the foremost advocates of
slum clearance. Twenty-six days
after the Roosevelt administration
took office last March, Mr.. Smith
appeared before the RFC and
forced approval Of an $8,075,000 loan
for slum clearance on the lower east
side
Nothing will pep New York up
so much as something like this"
Mr. Smith told the reconstruction
finance committee advisory board,
but j. L. Harrington, a board men,
Der, was doubtful owing to the re-
quirement that such loan be self
liquidating
THE costs are so much. greater"
Mr.. Harrington told Mr.. Smith,
that it is apparent a different
group will have to occupy these
houses after they are built"
Smith Scorns Argument
Mr.. Smith scorned that argu-
ment:
THE same people living there
now will move right into the more
modern houses and they will move
in at the same rent they pay now"
the Governor said.
But, we must look at it under
the terms Of the law" Mr. Harring-
ton objected, mindful Of the self
lquidating stipulation.
. Il look at these things from a
human standpoint. also" Mr.. Smith
exclaimed.
Well, do you recommend it, Cow
ernor?' asked Harvey c. Crouch, an
RFC director.
4 recommend it." Mr.. Smith re-
piled, and the loan was made for a
lung block clearance between Mon
roe, Market, Cherry and Catherine
streets on lower Manhattan island.
Point Is Delicate One
But the point raised by Mr.. Har-
rington and scorned by Mr.. Smith
is troubling high officials of the
administration. They doubt that
new dwellings can be provided at
the IS or so a room which slum
tenants now pay and there is no
disposition to mix humanity in to
the extent Of providing the i'm
proved quarters at an actual loss
TO the government.
And there have arisen questions
of transportation and even carfare
if slum jewellers are moved to the
suburbs.
There is a lack Of a suitable
plan" high authority in the adj
ministration said of the whole slum
clearance and suburban housing
idea.
That does not mean, of course,
that no money will be advanced.
But fewer dollars will be expanded
on such projects than was expected
some weeks ago"
In addition to the three projects
mentioned in the foregoing. fifteen
others, including Indianapolis, have
Mr.. Ickes' tentative approval or
await it, 1t seems likely that many
of these will not materialize.