Evening star., 1935-11-19

pull yourself up by your bootstraps.
It simply doesn't make sense.
Suppose We did impose fun taxes on
these projects. What would be the
consequences? First, we would slam
their doors in the very face Of those
whom we seek to help. To demand
full taxes would increase rentals from
81 to - per room per month. and
automatically exclude slum dwellers
from consideration. Second, the
projects would necessarily be occupied
by persons able to pay an economic
rent. Since they are attractive and
have amenities often unheard of In
the average community. they would
naturally draw tenants from now oc-
cupied dwellings. This would create
vacancies, would disrupt the normal
real estate market and the tax struc-
ture, to say nothing Of leaving q large
number Of slum dwellers (who could
not pay the rentals of the vacated
dwellings) on the street. BY succeed
ing In imposing full taxation on these
projects, realtors and city ofncials
would find themselves in far worse
position than they were before this
program was launched.
We believe firmly that, If the re-
habilitation Of slum areas should not
be crippled by the levying Of ad va
loren taxes, these projects should cer-
tainly not be entitled to . Joy ride
at the expense of local tax payers
We have maintained that city services
such as fire and police protection. wa
ter and sewage disposal, street mainte-
nance and lighting, garbage removal
ETC., should be bought In the same
way that all citizens buy them.
In the early stages OF our program
we analyzed many slum areas from
the standpoint OF total taxes paid.
Next we considered the probable rental
revenues from the projects which we
proposed to build in these areas. We
found that S per cent of the gross
revenue derived from the probable
occupancy at low rentals in every
case exceeded the present tax revenue
from these areas. In other words, we
could afford to return to the cities a
higher income than they now received
from their sfums and could still re-
house slum dwellers in new and decent
housing. In view Of the municipal
economy which such rehousing would
inevitably effect, such as lower cost
of disqualification, fire and police pro-
lection, we considered such a PROPOSE
AAANftalH, nj
city ofiicials saw eye to eye with US.
We have repeatedly stated that we
wished TO pay this service charge.
Recently, the Controller General Of
the United States. who Is the finai
authority in disbursement Of Federal
funds, ruled that we could not pay
this charge without having q specific
appropriation for such payments.
Legislation is now pending in Con-
gress which will authorize these
charges. I consider the passage OF
this legislation absolutely imperative
to the success of the housing program.
The experiences Of European coun-
tries, England, Germany, Holland,
Austria. Italy. Norway. Sweden and
Denmark. has indicated that decent
new housing for slum dwellers is i'm
possible without subsidy. When the
Housing Division was being set up,
most of us realized that a subsidy
would be no less inevitable in this
country, If we were TO do our job right.
Yet it was felt that we should attempt
at the outset to stimulate private en-
terprise and to keep our activities
on the so-called business basis" We
soon proved to the country that this
method led directly and swiftly to
Stalemate.
Subsidy therefore was inevitable