Evening star., 1937-12-22
S[UM CLEARANCE
FINANCING bALKS
CAPITAL OFFICIALS
Controller General May Be
Asked for Ruling on
Raising Funds.
PRESIDENT DOUBTFUL
ABOUT BOND ISSUES
1ntimates He May Ask Congress
to Provide Money if Need Can
not Be Met Otherwise.
By NELSON M. SHEPARD

Uncertainty over the proper methods
OF financing slum clearance projects
in the District under the new Wag-
Housing Act may make
1t necessary to call for a legal rul-
ing from the controller generals of.
nee, 1t was suggested today in various
official quarters.
president Roosevelt, who is per-
sonally responsible for ALLEGATION of
funds to the local Alley Dwelling
Authority, appeared doubtful whether
FUNDS for its use can be raised from
BOND issues which the Housing Act
authorizes. With other officials equal
ly in doubt, the President said he
would continue to study the prob
lem and, meanwhile. intimated he
might appeal to Congress to provide
the money if the local financial needs
cannot be met otherwise.
In the event nothing can be done
until Congress reconvenes, January 3.
IL was pointed out by some officials
that perhaps the controller general
could cut the legal knot. There
would be ample time for a ruling
which might, it was suggested, save
future embarrassment.
Straus Is Out of CITY.
Since Nathan Straus, administrator
OF the United States Housing Authori-
ty, Is leaving tomorrow to spend
Christmas in New York, nothing off,
clal will be done this week. He and
John 1hlder, executive officer of the
local A. d. A, will confer next week on
legal problems involved. Mr.. IhIder is
preparing a memorandum for use at
future conferences dealing with the
question of whether the District can
participate in bond issue.
Mrs. Franklin D. Roosevelt was un-
able either to throw any new light on
the local situation at her press confer
ence this morning. She said frankly
she old not understand all the oues-
tons involved. There was, indeed, an
apparent confusion on the part of
most officials dealing with them.
MRS. Roosevelt hoped, however. that
When the slum clearance program for
the District is eventually launched
.nae the work would progress steadi-
ly' and be big enough in volume so
that 1t could be done cheaply.
one OF the reasons advanced for a
possible ruling from the controller
general is the belief that the act clear
ly makes it possible for the local A u
A. to participate in any funds or bond
issues OF the United States Housing
Authority.
House Added Amendment,
An amendment was added tn tho
act in the House after Senate enact
ment of the legislation specifically to
take care of the local situation in view
OF the Federal status of the local ALL
thority. 1t reads
The President is hereby authorized
to make available to the Allev Dwell
ing Authority from any funds appro-
prlated or otherwise provided to carry
out the purposes of this act. such
sums as he deems necessary to carry
out the purposes of the District Of
Columbia Alley Dwelling Act, an
proved June IL, 1884. Such sums
shall be deposited in the conversion
OF inhabited alleys fund and there
after shall remain Immediately avail
able for the purposes of the District of
Columbia Alley Dwelling Act"
1t was suggested on the other hand
that the phrase "or otherwise pro-
vlded," in referring to funds. involves
catch which beclouds the meaning
of the amendment.
Regardless of the legal questions in
VOWED, the sympathetic attitude of Mr.
Roosevelt makes safe the prediction
that the local Alley Dwelling Authority
eventually will receive sufficient money
from some source to carry out its plans.
Ofhclals are not greatly concerned
over the uncertainty that involves
methods to be pursued here as the
Nationwide program is nowhere near
ready to be initiated There is suffi-
cient time, it was said, to iron out
most difficulties.