Evening star., 1937-05-27
H0MESTEADPR0BE
IS URGED BY BYRD
Senator Makes Request
After Wallace Refuses to
Abandon Project.
Ry the Associated Press.

Ry the Associated Press.
A request for a Senate committee
investigation of the Resettlement Ad-
ministration's expenditures on the
Shenandoah homesteads in Virginia
was Senator Harry F. Byrd's answer
today to Secretary Wallace's refusal
to abandon the project.
Byrd announced last night he
would ask the Senate Reorganization
Committee Ito investigate and as
certain the true facts of these ex-
penditures."
Wallace said the estimated cost of
the project had been reduced from
$l,5O00OO to 1898 900. but Byrd re-
ported he was informed Tuesday by
the budget director that $l,300,884
was allocated for the project.
The proposed investigation, Byrd
said. would be directed at the appar-
ent discrepancy between Budget Di-
rector Bell and Mr.. Wallace"
Receives Other Complaints.
The junior Virginia Senator. who
charged that the Shenandoah project
represented gross waste and inefn-
ciency," declared he had received
similar complaints of waste" in other
States and that AL should be fully
investigated
Wallace announced his intention to
carry the Virginia homesteads to COM
pletion in a letter replying to one
from Byrd of May 2l.
For your information" Wallace
wrote, IAN average cost of 81 200 per
house was set for the Southern part
Of the country, while the average for
the North was established at $2,lO0
OF course, it has been obviously i'm
possible to build houses within these
limits where construction was too far
advanced to make it practicable, but
the large majority of farmsteads now
being built by the Resettlement Ad-
minlstration are within the new low
cost figures =
1t may interest you to know the
total cost of Shenandoah homesteads
is now estimated to be approximately
$685. 900, Notwithstanding the amounts
previously allotted, instead of the fig
ure above Sl,500,000 which you indi-
Gated. This is being made possible
by finishing the last two-thirds OF
the units on the project at the new
cost figures. The total costs of the
new units will not exceed S3,755."
Byrd had charged the homesteads
cost would run from $4,000 to $685.
each.
The Secretary Of Agriculture said
~co-operative farms" were not con-
templated at the Shenandoah project
and that farmsteadS would be made
up of individual farms, which you
feel are desirable for these mountain
people"
Wallace said reasonable" rents
would be charged, based on "the abil-
ity Of the family to pay" and "a fair
appraisal for the property"
Not to Furnish Refrigerators.
Contrary to information which Byrd
said he had obtained, Wallace said
1t was not planned to supply the home
steads with electric refrigerators and
said 1T has never been contemplated
to deny any families the right to
bring whatever furniture they have
into their homes"
Wallace thanked Byrd for his view-
point in regard to the "solvency Of
the United States" referring to the
last paragraph of the Senator's letter,
in which he said THE sooner we can
discontinue such absurd expenditures
as the one I have referred to the
sooner We can restore the country to
financial solvency."
Byrd said last night, after Wallace's
reply, that his reference to financial
solvency was in connection with re-
ducing the deficit by discontinuing all
waste of public money. I appreciate
the Importance of this, even though
others may not be impressed with it."