Evening star., 1936-05-08
ALLEY AUTHORITY
BELIEVED DOOMED
BY LACK OF CASH
House Committee Rejects
$780, 900 Item for Con-
tinuing Work.
NEAR 100000 so FAR
SPENT OR OBLIGATED
Ihlder Says $3,0O0,o00 Revolving
Fund Would Complete Task
and Repay Treasury.
BY WILL p. KENNEDY.

The District of Columbia Alley
Dwelling Authority, set up to conver
from community liabilities into com
munity assets the approximately 20(
inhabited alley squares in Washing
ton may be practically put out o.
business for lack of funds at the
close Of this fiscal year. The House
Appropriations Committee declined tt
include in the deficiency appropria-
ton bill reported yesterday $500 ,00(
for continuance Of this work, as rec
commended by the Budget Bureau.
The Authority. however, has moi
given up the fight and still hopes te
have the item restored as approved by
the Budget Bureau. John Ihlder, the
executive officer, believes the item wa:
cut out because of misunderstanding
Of the meaning of the law creating the
A. D. A.
THE bill as originally drafted.
Ihlder said, provided for revolving
fund of 100000 and in view of tina
used the language the President Il
hereby authorized and empowered
within the limits herein authorized.
Before the enactment of the bill
this figure was cut from $3,000,000 to
S500.0OO with the thought that thai
would be starter and that additional
amounts would be appropriated each
year. Unfortunately when the change
in the amount was made the language
of the preamble was not changed sc
that the language might be held tc
amount intended.
In view of the whole content and
stated purpose of the bill this limit
of course, could not have been in
tended. To do a job of the magni-
tude imposed by the act with such a
small fund would, as Chairman
Buchanan said, be 'superhuman.'
Moreover, the language of the bill
as amended practically did away with
the revolving fund and substituted an
nual appropriations. Consequently
the failure to include the Alley Dwell
ing Authority appropriation in the
deficiency bill will entirely stop its
work on June 80. though the act it
self definitely states that the work is
expected to continue until 1914.
Consequently we hope to have the
item restored"
The Authority has to date received
S70O, ,000-$500,000 by appropriation
November 10, 1884, and 5000, 900 by al
location from emergency relief funds.
December IL, 1885. There is now in
the fund $408. 900, but nearly all of
that Is committed. There is left only
$4,000 as a net cash balance. Ihlder
told the House Committee that it
would all be spent or obligated by the
end of the fiscal year, June 80.
The assessed value of the alley
property alone in these squares was
estimated some six years ago to be
100000. The 100000 asked by the
Budget Bureau will be necessary if
the Authority is to do any additional
reclamation of squares containing in
habited alleys, "the characteristic
slums of Washington" Mr.. Ihlder en-
phasized.. 1t is endeavoring to substi-
tute for the inhabited alley that use
which best fits with the present and
probable future of the square and
the neighborhood.
Purchase Price Restriction.
The alley dwelling act restricts the
authority to a purchase price of 130
per cent of the assessed valuation.
This price has not been reached in
any acquisitions, the House Commit
tee was told-the highest being 122 per
cent, while one purchase was made
for 6710 per cent of the assessed
valuation. The average has been 113
per cent.
Chairman Buchanan and Repre-
sentative Thurston, Republican, of
Iowa argued that the substantive law
'says very plainly that the amount is
not to exceed $500, 900, and was evi-
IDENTIFY intended as revolving fund"
Questions by Representative Wood
rum, Democrat. of Virginia brought
out that the Authority has not yet
made any sale of reclaimed property,
but Is negotiating for the sale Of sew
eral properties. One Government
agency is now considering purchase of
one piece of property and has In an
appropriation bill an item for this
purpose. Ihlder stressed that the
authority is not in the real estate
development business for profit, but
to be assured that the use will be in
the public interest. For example. it
would sell at cost to Government
agency or a social agency not seeking
profits. as for example for play
ground.
$15,000,000 Probable Cost.
Asked by Chairman Buchanan what
It would cost to clean up all the
alleys Of Washington contemplated
by the act. Ihlder replied-"Probably
at least el5,000, ,000." He explained
IF we can ultimately secure $4,000, 600
ss a revolving fund, in the course of
the period allotted to us, we would
do the job and would return the
money with per cent interest" He
assured the committee that eventually
all the money expended will be re-
paid. The Authority already has re-
housed 81 families from these re-
claimed alleys-anc plans for the first
group Of low-rental dwellings were laid
before the House Committee. The plan
In reply to- the direct question:
"Why should we give you $300,000?"
Ihlder reminded the committee: The
only reason Is that you want to get
rid Of the slums in Washington. The
people Of Washington have been trying
to get something done in that d.
rection for 10 years. Congress has
enacted several laws, but this Is the
hrst time there has been definite re-
sults.''