Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-09-20
REEDSV|L[E T|E-UP
IS HELD UNLIKELY
ResettIement Hopes to
Reach Agreement Soon
With MCCarI.

In the face OF a decision by Con-
troller General McCarI that a factory
building has been constructed on the
Reedsville resettlement project in
West Virginia in contravention of
law, Resettlement Administration Off
Gals today were of the belief that the
matter could be adjusted satisfactorily.
The building is to house an indus
try to furnish employment for Reeds
vile residents. 1t is about 80 per cent
complete, and the TruScon Steel Co.
the builder, has received s29.700 on
a contract calling for $4,000. Stew
ard Wagner of New York, the archi-
tect, who was to get $1,000 fof
drawing plans. has been paid 5000.
The net result of McCarls ruling.
consequently. is to hold up both bal
ances, totalling s2.7O0, and, theoret-
ically. TO make liable for the money
expended, sureties Of the disbursing
officer.
The work, however, was said to have
been undertaken on the basis Of an
opinion by the Attorney General that
it was legal and consequently the
possibility of any move to recover
seems remote. So far as the balances
are concerned, the creditors would
nave to go to the Court of Claims I'M
less reimbursed otherwise.
solution Is Seen.
The Resettlement Administration
has pending before the ALLEGATIONS
Board a request for $4,000, 600 to
complete work on Reedsville and four
similar projects. and if this money
is obtained. it was said the problem
would be solved Under any circum-
stances. it was added, an effort will
be made to reach an agreement with
McCarl
The Reedsville resettlement. which
has Mrs. Roosevelt as its principal
sponsor. has had stormy going. When
resettlement was under the Interior
Department, McCarl refused to permit
the transfer of s525 900 from recovery
act funds to build factory there for
manufacturing post office equipment
He said that the money could be used
Ollll lOl dld III btiC putin VI ouD-
sistence homesteads."
That was in February, 1884. Then
an effort was made to get through
specific legislation. but it was defeated
IN the House, private manufacturers
getting support for their contention
that the factory would bring unfair
competition.
Eventually the present plan was
hit upon-to erect a factory building,
and lease it to the Electric Vacuum
Cleaner Co. of Cleveland, for an
assembly plant. This time. the con-
tracts were made without submission
to McCarl as to their legality. the
question reputedly being put up to
the Attorney General.
No Vouchers Cleared.
Apparently, none of the vouchers on
which payments were made to the
contractor and architect has been
reached for auGit at the General Ac-
counting Office, for in the decision
made public yesterday, it was shown
that when McCarl was asked to ap-
prove final payment to Wagner he
held the entire expenditure illegal.
Reedsville is one of the so-called
stranded community" projects-that
is, settlement where some industry
such as mining or numbering formerly
was conducted. and then, being dis
continued, left the residents without
any specific means of support. There
are fouI others of this type-Tygart
Valley and Red House, w. Va; West
moreland, Pa, and Crossville, Tenn.
All are to be rehabilitated under the
proposed 100000 program. with
each to be settled by 500 families.
The factory building at Reedsville
is the first activity of this sort under
taken. 1t is estimated to furnish en-
ployment for IS persons. The settle
ment now has about 80 families. :.