Evening star., 1936-05-29
TUGWELL'S BUYING
|0F LAND ASSA|LED|
Validity of ResettIement's
Activity Questioned in
Senate Hearinu.

the ReSettlement ADMINISTRATOR IN
purchasing farm land on which to
"resettle" farmers was called into
question by members of the Senate
Appropriations Committee during the
hearing of Administrator Tugwell, 1t
is revealed with publication Of hear
ings on the first deficiency appro-
priation bill
It was revealed that through the
operation Of rehabilitation corporations
In the States, set up under the old
Federal Emergency Relief Admins
tration, funds collected by the corpor-
ations have been removed from control
of the General Accounting Once.
Tugwell, In an opening statement.
explained that during the past year
the Resettlement Administration has
taken care of between 100000 and
100000 farm families Gin one way
or another" mostly by way of reha-
bilitation loans. The administration
has accepted options on about $780,
900 acres of land unsuited to arabic
agriculture and about 100000 acres
actually has been transferred to the
Government. The administration. he
said, has created $40, ,000,0 900 worth Of
recoverables" and 10000, 900 worth OF
permanent assets as result of total
expenditures In the neighborhood o1
s270,0o0, 900.
Tugwell described the administra-
ton as furnishing "a sort Of ladder
OF economic independence and oppor-
tunity."
Families Carefully Selected.
He said farm families had beer
very carefully selected for rehabilita-
ton and resettlement and that about
10 per cent of the families so helped
"are we'll on the way to what might
be called independence" In each oi
these cases, he explained, there Is
expectation the administration loan
will be made good.
Tugwell was painting very rosy
picture of the results of activities OF
the Resettlement Administration until
Senator Glass, Democrat, of Virgins
raised the question of legality of the
Government acquiring farm lands a,
the administration has been doing
II have long been under the impress
sion, which I think is correct, that
the Government cannot acquire lands
except for Government USE" Glass
said.
Tugwell explained that the lands
were being acquired "for resale, fol-
immediate turnover"
But" rejoined the Virginia Senator
"the Government is not supposed to
be in the real estate business, to buy
property in order to resell it"
Tugwell demonstrated that it was
hardly fair" to describe the admin
istration's activities as "a real estate
business"
There is not any profit in it. and
it is done for the purpose of taking
people off relief rolls" he explained
That is upon the assumption that
We are going to have relief rolls,
said Glass.
mo: it is on the assumption that
we will get them of relief rolls per-
manently." Tugwell replied.
According to the assumption, there
will always be relief rolls on which
they can CO." the Virginian said.
mo: I do not think So" Tugwell
answered.
well, you mention it as a public
purpose and that these transactions
are taking people of the relief rolls. u
Glass came back.
Keeping them OF the relief rolls. -
Tugwen said by way of amendment.
Tugwell Denies Rolls Assumed.
WELL" Glass persisted, "is there
not an assumption there that there
will always be relief roll?"
mo; I do not think so," Tugwell
insisted.
The relief rolls" Glass started
once more. but Tugwell cut him of
with the remark: "As a matter Of
fact, there is, at the present time.
That we all know"
"Oh, yes" Glass said, I'VE are very
well aware of that: painfully aware
of it. I think that the Treasury
would back up your statement in that
respect"
The relief roll business disposed Of,
Glass returned to the question Of
legality of the purchase of farm lands.
Tugwell said the legal question has
never been raised and that in all the
cases so far handled I'VE have had
very good relations with the States.
In every case, he said, the administra-
ton has acted with the consent and
advice Of the local authorities.
YES" Glass replied, "but there are
some things that the local authori-
ties cannot consent to. and am Won
dering if this is not one Of them"
Tugwell testified that the resettle-
ment operations were carried on
through rehabilitation corporations
set up in the States and managed by
the administration. The cash assets
of the corporations, he said. were q
little less than $4,000, 900, but their
total assets amount to about s6s, ,000.-
900, all Of which eventually will be
in revolving fund.
In response to questioning by Sen
ator Steiwer, Republican, of Oregon.
Tugwell admitted the money collected
by the corporations is not repaid into
the Treasury and that it may be dis
bursed again without restriction other
than restrictions in their charters
This removed the funds from control
Of the Government Accounting Office,
he admitted Under this system, he
said, operations are being carried on
in 43 States.
Nov, the fact Is those corporations
operate to circumvent the laws requir-
ing adult of accounts" Senator
Steiwer declared.
Tugwell, after some objection, ad-
mitted that the system operated to
obviate "the necessity Of compliance
with the law"
Work Through States.
He explained that the work was
done through grants to the States,
which then set up the rehabilitation
corporations.