Evening star., 1936-03-15
BY NELSON NJ. SHEPARD.

NELSOTN nheDs
The Public Works Administration Is
responsible in large measure for new
slant on the liabilities Of city slums.
So much has been written about
the cost of slums in terms OF human
misery that little thought was given to
the distressing economic and financial
aspects of the problem until P. w. A.
aroused a latent public interest by
launching its Nationwide program for
low-ccst housing.
Now there is widespread evidence
that municipalities are becoming slum
conscious in terms of dollars. A once
prevailing belief that the blighted city
areas are an inexpensive means OF pro-
viding the minimum needs OF the low
est income section of the population
is giving way to serious consideration
by municipal authorities OF their ac-
tual cost in the form OF subsidies paid
by other taxpayers.
Studies made in many large cities IN
connection with P. w. A. housing prof.
ects stress the important fact that
slums are becoming more and more
staggering burden upon the munich
pality in loss of revenue ana excessive
cost Of servicing.
Speak in Terms of Costs.
Prepared by unsentimental econo-
mists. these reports seldom mention
vice or crime or disability usually asso-
ciated with such studies in the past.
Instead" said housing official.
they speak in terms Of taxes. assess
ments. loans. receipts, losses, prontS
and charges"
Condensed from studies made in
such metropolis centers as New YORK.
Chicago Philadelphia, Boston, -CleVe-
land and Indianapolis, among a few'
they demonstrate beyond contradiction
that the costs OF sluW areas for puohc
services are usually several times the
amounts collected from them in taxes.
THE slums and blighted areas OF
our cities have become great economic
as well as social liabilities" said a
Housing Division report.
For example, in indianapolis, Wnere
. w A. is demolishing large area
of tenements, the findings OF slum
survey revealed that the tracts, con-
tanning 10 per cent of the population,
absorbed 26 per cent OF the money
devoted to the entire city for services.
In other words, it got more than Two
and one-half times its shares OF az
tention.
Tax Problem Advanced.
Another angle of the slum clearance
rrooram has arisen, so far as the FED
eral Government is concerned, IN ti!e
demand of some cities that +. W. "A
contribute a fixed sum toward mu-
nicinal expenses in lieu of the taxa
tion lost through transfer OF the lano
occupied by housing projects 10 IIle
tax-exempt list.
AS a consequence legislation Is pend
ing in Congress in one or more tolni'
authorizing the Public WORKS ADMIN
istrator to pay a service charge IN
| lien of taxes to such municipalities as
request 1t. .,,o
The charge shall be based upon the
cost of the public or municipal services
TO be supplied for the beneht OF tne
particular housing project, out taxing
! into consideration, also, the oenenIS
To be derived by the local community
On this basis the service charge Is
fixed at per cent of the gross rehtaIs
of the project per year, or, the amount
.of real-property taxes levied upon the
site of the project for the last tax
year which expired prior to the ac-
ouisition of the site by the United
| States.
Secretary Ickes was perfectly WILL
ing to nav a 5 per cent service charge
as being a reasonable return Tor serV-
ices. but Controller General j. r. NC
Carl ruled that legislation was neces-
sary.
HeaIey Offers Measure.
Representative Arthur D. Healey OF
Massachusetts,, acting on behalf OF
! Cambridge, Mass, which had sought
pavment for municipal services, has
introduced a bill which is now before
the Ways and Means Committee OF the
House. Similar provision has been
made by Senator Robert F. Wagner OF
New York, P. w. A. officials said. Tor
| incorporation in his general housing
bill. which is soon to be introduced.
The question of the Government
paving a service charge for fire and
police protection, water, trash removal
and the various other items OF expense
borne by taxpayers, was recognized by
the Public Works Administration as
fair and just charge.
1t is a question, also, that must be
decided one way or another by the
] Government in connection with the
81, 100000 Langston Terrace low cost
housing project Il has just started
building in Washington. Housing Of
ficials frankly admit the question is
one which may properly be legiti-
mate charge against the Government,
but for the traditional policy of the
Federal lump-sum payment of the Dis
trict of Columbia in lieu of taxes.
Business" Proposition.
The Langston Terrace project, on
the other hand, they pointed out, has
no counterpart among the Federal in
stitutions in the District. 1t is a
business" conducted by the Govern
ment which eventually will be icui-
dated from rents collected from the
800 colored families destined to oc-
cupy the houses now being 9uilt on
Benning road, an outlying section.
Langston Terrace is only in its ini-
tial stage of construction and for that
reason housing officials have not yet
tackled the problem of rents. When
they cross that bridge, it was said.
the question of payment or nou-pay-
ment of the equivalent to a 5 per
cent service charge to the District
will be considered.
OF the 4S housing projects involved
in the P. w. A. program, 26 are of