The Washington times., 1937-09-01
scANT HOUSING
RELIEF IS SEEN
IN WAGNER BILL
10000 of 10 Million
Families to Benefit
BY EARL GOODWIN

BY EARL GOODWIN
How far can half billion dol
lars go toward relieving the pres
sure for low-cost houses in the
United States2
The Housing bill authorizes 500
million dollars to be raised by DOT
rowing from the public. That's Fed.
eral money, Cities and States Will
have to raise 10 to 20 per cent OF
the cost Of these lowrent houses.
And, all told, housing exports
today figure that out OF the ten
million American families VINO
are in the Presidents picture OF q
third Of the nation ll;housed,
only about 100000 can be bene-
fitted by the present program.
New York city itself can come
forward to claim enough Of the
Federal housing fund to make it
impossible to do anything worth
while for other communities.
FIELD WIDE OPEN
Government officials point out
this fact as one indication that the
Federal Government is by no
means anxious to smother any
private enterprise which may feel
like invading the low rent field.
In fact the Governments atti-
tude is expressed in a report to
the Senate, written by former Sen
ator Black, not long before he be-
came an associate justice Of the.
Supreme Court, in which it Is
stated:
"The authority shall not In
wade the field Of useful private
enterprise, but rather shall act
only where there is shortage
Of decent, safe, and sanitary
dwellings within the financial
reach of families Of very low
income"
There seems to be a disposition
to SHOW the way" if possible, for
private enterprise to bestir itself
to see whether or not there is a
business profit in the very low rent
field.
This seems to actuate the Dis
trict of Columbia Alley Dwelling
Authority, which now becomes the
Districts contact with the half
billion dollar Federal housing
funW.
PRIVATE ADVANTAGE
However, all Government activi-
ties under the housing act must
pay union wages and there is a
stipulation that Is per cent Of the
labor must come from the PWA
rolls where possible. This gives
private enterprise slight advant-
age in some sections, if it comes to
a matter Of competition.
The Housing Authority will be
headed by an administrator to be
appointed by the President. It
will be financed by a fund Of 500
millions of dollars to be raised by
borrowing.
The home office here in Wash
ington gets $1,0O0,000 Immediately
to start business. This is the capt.
tai stock of the authority and the
stock is to be subscribed to by
Uncle Sam. The Government
takes over the whole stock issue.
Then the act authorizes Congress
to give the Federal Housing Au-
thority 500, 000, 900 for three years
running expenses.
ANNUAL OR LUMP SUMS
With the 500 millions of dollars
the Government permits the au-
thority to raise by bond issues. the
authority can lend, can SubSidize
Cor add local housing projects
with annual contributions, or it
can substitute outright the original
cost Of the project. In the cities,
the local housing authority can
set UP a project with the aid Of
the Federal Housing Authority.
That aid can be in the form OF
annual contributions for so years,
which is what Senator Wagner
originally planned; or it can get an
immediate lump sum grant-which
is what the President held out for
in the beginning.
Oddly enough, the two methods
Of ACKNOWLEDGEMENTS versus the
President'S-is one of the argu-
ments which held up passage Of
the bill for so long.
Congress decided the matter by
putting them both in the act.
Local authorities apparently can
choose which method they desire.
President Roosevelt always
maintained that so years was too
long a period to tie up any city to
the Federal government on a mat