The Washington times., 1935-10-22
PWA HOME :
GET NO FIRE,
P0LICEA|D
Cities Refuse Service
Free; McCarI Rules
Out Pay For 1t

Federal receipts from rentals o1
lowcoSt housing and Slum clear
ance projects may not be paid tc
States or municipalities for police
and fire protection or educational
facilities. under a ruling communi
Gated by Comptroller General j
r. McCarl to PWA Administrator
Ickes today.
In a plea to the general &C
counting office dated September
8, the PWA Administrator re
vealed that numerous citi es
throughout the country have in
formed him that as no revenue
from taxes will be available to
them from the projects, they
would be unable to furnish police
and fire protection or educational
facilities.
Under current law, Mr.. Ickes
pointed out, property owned OF
handled by the Federal Govern
ment is not subject to taxation by
States or municipalities.
Asked for approval
Stating that under such a con
dition few tenants would care to
take advantage of the low-cost OF
slum clearance plans. Mr.. IckeS
asked approval by the Comptroller
General to make a payment of 5
per cent Of the rentals received
from projects to the cities in
which they are located, so that
municipal facilities can be ob
tained.
Mr.. McCarl based his diSap
proval on grounds that taxes
eventually will be assessed by
local authorities when low-cost
houses are purchased by individ
uals, that increased value of the
properties due to Federal promo
ton will more than make up for
any temporary loss of taxes and
finally, that the Federal Gov
'ernment or its activities may not
be taxed"
The dispute arose over the
fleetwood and University prof
ects in Atlanta, the Georgia city
advising Mr.. IckeS that it would
not supply facilities and services
ordinarily provided citizens un
less compensation is forthcoming
Citing the Atlanta statement as
typical Of that received from
cities throughout the United
States, A dminiStrator IckeS
wrote:
"Unless the tenants Of these
projects receive police and fire
protection and the use Of
schools and other municipal
facilities furnished by cities
in which such projects are To-
Gated, few people will care to
reside therein.
MANY cities have informed
us that, in view of the fact
that they will not receive any
taxes from these projects, they
will not be able to furnish such
services to our projects. 1t must
be acknowledged that the posi-
tiOn taken by such cities Is not
unreasonable. The cost to the
Government of supplying these
services directly would be pro-
hibitive and for the operation
of the projects some arrange
ment must be made which will
be satisfactory to the cities in
which these projects are 10
Gated"
SUGGESTS WAY OUT
Suggesting a way out of the
problem. Mr.. IckeS continued:
81 consider a 5 per cent pay
ment to the city (Atlanta) a
fair and reasonable cOmpensa-
tiOn for the services and facili-
ties which it will supply and
feel that it would be for the
best of the Government to en-
ter into an agreement with the
city of Atlanta to obtain such
services"
Comptroller General McCarl
| however, answered..
"COnSidering the matter in
such light it would seem that
the municipalities and other
local agencies involved would
be willing, in view Of the valu-
able and lasting improvements
erected at Federal expense, to
furnish without question neceS-
Sary facilities and services. :.
while in Federal ownership.
whether such municipalities
may discriminate among resi-
dents in furnished school, pO-
lice, fire protection and other
facilities, ETC., and also whether
the city officials may fix and
enforce collection of a per cent
of the rents in lieu of other
fixed rates Of taxation are mat
terS primarily for determination
by the officials Of the particu-
lar cities. No public moneys Of
the United States can be so
impressed"
| A. a