Evening star., 1937-08-04
BY j. A. OLEARY.


BY ]. A. OLEARY.
Efforts to exempt loan contracts of
She new United States Housing Au-
thority from audit by the Cen
eral Accounting Office were attacked
today by Senators Austin. Republican,
OF Vermont, and Vandenberg, Re-
publican, of Michigan, as the $780,
100000 slum- clearance measure
neared vote in the Senate
Senator Wagner, Democrat, of New
York, offered a compromise today to
allow a pre-audit of administrative ex-
penses but retaining the post-audit
on loan contracts. Administration
Senator's contended the pre-audit had
been set aside in all of the emergency
loan legislation of the past few years
Austin and Vandenberg insisted,
however, there is no need of applying
an emergency formula to a housing
program that may extend over so
years They contended the system of
pre-audits is a basic principle of the
present accounting system and should
not be departed from. This question of
turning to the poSt-audit system also
is an issue in the consideration of gen.
eral Government reorganization legls-
lation
King to Offer Amendment.
Before final action is taken on the
housing bill Chairman King Of
the Senate District Committee is
expected to offer an amendment
this afternoon to make sure that
the Alley Dwelling Authority. Gre
ated to reha bllitate the inhabited
alleys of Washington, will be included
in the definition of public housing
agency" to obtain the benefits of the
new measure.
Other amendments remaining to be
considered included one to put the
United States Housing Authority un-
der the supervision of Secretary of the
Interior
Work of Authority Praised
The accomplishments of the Alley
Dwelling Authority in reclaiming alley
areas in Washington we're praised by
Senator Walsh, Democrat, of MaSsa-
chusettS In his successful move to
have the new Nationwide housing
program directed as far as possible
toward slum clearance He cited the
local program also as sample of
what could be accomplished in other
cities.
Summing up the local situation,
Walsh told the Senate:
They have been given two grants
of money amounting to s850,000. The
pictures I have had placed on the
wall tell the story of the abolishment
of slums in the allies of the District
of Columbia, the remodeling of some
of the old buildings, the construc-
ton of new buildings and the reten-
ton of some of the land which was
purchased and from which the build
ings were removed, which was con-
verted into auto parking spaces and
income thereby obtained. The dwell
ings averaging four rooms, are rented
at rental of between $3.50 and
$3.50 a month to the people who
formerly lived in the alley slums.
No Loss to y. S. If Liquidated.
Now, this is the startling fact. If
that Alley Authority iquidated to-
morrow, there would not be one cent
of loss to the Federal Government
They could liquidate for something in
excess of the amount of money which
was granted to them. Why am l re-
ferring to this undertaking? 1t is
because I want the power of the board
(the new Federal agency directed as
far as humanity possible to the actual
problem of slum clearance"
Further on, Walsh said the local
alley program also demonstrates that
slum areas in some cases can be re-
modelled instead of being demolished
and rebuilt.
The Massachusetts, Senator also
placed in the record correspondence
he had with John Ihlder, executive
offlcer of the Alley Dwelling Authority,
outlining in detail the scope of the
been done so far and the change in
language needed in the pending bill
to make sure the Alley Authority would
be eligible along with public agencies
elsewhere to obtain assistance under
the new law.
Authority Is Discussed.
There was brief discussion yester-
day afternoon as to how much au-
thority the proposed amendment
would give the Secretary of Interior
over the administrator and board of
directors of the Housing Authority.
Senator Wagner said he wanted to
study the language of the amendment
before it is acted on today.
During yesterdays debate Wagner
said the amendment which he and
Majority Leader Barkley have under
consideration Simply provides that
the administrator and the board shall
be responsible to and subject to the
supervision of the Secretary of In
terror. But appointment of the board
remains with the President"
The proposal to place the housing
agency under Interior is in line with
the general move for consolidation
through reorganization. Senator
OMahoney, member of the Reor-
ganization Committee, said he was
in sympathy with the idea but want
ed to know II it was intended to limit
Interiors control to what have been
termed house breaking" problems.
such as annual budget needs It was
pointed out that the general reorgan-
1zation plan contemplated giving ex-
ecutive departments only such limited
control over the administrative prob
lens OF quasi-judicial commissions.
Duties Wholly Administrative.
Senator Barkley said he did not
think that would be so in this case,
because the duties of the housing
agency will be wholly administrative.
AS the housing bill came from COM
mittee it gave the housing agency
power to determine how it's expenses
shall be incurred, with the controller