Evening star., 1938-07-28
P.W.A. EXPANSION
BY AID OF R. F, c.
IS SEEN BY |CKES
Secretary Says Additional
s250,000, 900 Might Be
Provided.
PROGRAM WILL DEPEND
UPON LOANS BY R. F. c.
Plan Would Increase Estimated
Cost Of Construction to
$1,917,000.
BY TIE Associated Press.

BY TIE Associated Press
Secretary Ickes said today that with
the help Of the Reconstruction Finance
Corps millions, the public works pro-
gram might be expanded to provide
another s25o,o00,000 worth Of con-
struction.
He made the estimate at his press
conference in reply to questions about
his new working agreement with Jesse
H. Jones, chairman of the r, F. c..
announced last night.
Under that arrangement, the r. F.
G. will make loans from its 81, 500, ,O00,.
600 fund on big projects receiving
grants from P. w. AS $3.50, 900, 900.
Our program will be considerably
larger" Secretary Ickes said, "particu-
larly to the extent that we will be
able to use our money for additional
grants If applicants are agreeable to
loans from the R. F. C.
Expansion Depends on r. F. C.
I'VE can't figure out at this moment
how much the program will be ex-
panded. 1t depends on what loans
the r. F. C. will be willing to make.
Il would say, offhand, that the
program may be expanded by as much
as $25o,o0o, ,ooo."
This would increase the total esti-
mated cost Of construction for the
whole program to $l,9l7 200, 900. The
current ceiling on construction re-
sulting from P. w. A. loans and
grants alone is 81 1857 100000. P. w.
A. projects approved to date call for
$905, 900 900 of construction.
Secretary Ickes said he did not pre-
sumo" that R. F. c. would step in and
make the loans on all future applica-
tions. His organization still has "a
considerable amount" left for loans,
he said.
Secretary lckes, as director Of p.
w. A., thus far has allotted $562,.
251 ,12S in loans and grants, well over
half Of The money available.
The indicated immediate effect Of
the two-agency action was to make
possible certain large undertakings
which p. w, A. has been disinclined
to approve for two general reasons:
The amount Of funds required ant
the time needed for completion.
Three Projects Revived.
Talk Of three specific projects was
revived. They are:
A $70,000,000 tunnel In New York
City linking the southern tip of Man.
haitian Island with Brooklyn.
A $4,000, 900 "all-weather" high
way across Pennsylvania.
A $35,000,000 subway under Chi
cago's downtown area.
New York's proposed tunnel, officials
said, possibly would be one of the
first cooperative enterprises.
Revenue Producing Projects.
The R. F. c. was empowered by
Congress last Spring to lend $780,
100000 to States, cities and business
men. Ofhcials explained that r. F.
C.'s participation with P. w. A.
would be confined to revenue -produc-
ing projects, where tolls or rentals
would pay of the loans.
Mr.. Jones was represented as feeling
that p. w. A. grants of IS per cent
would tend to make projects better
risks for loans, and might warrant
lower interest rates for such lending.
(R. F. c. loans have been carrying
higher interest than the I per cent
charged by P. w. A., and some munich
palities have been able to obtain money
at even lower rates through local
hnancing)
r. E. A. Starts Lending.
The first flow of money began yes.
terday from another lending agency.
the Rural Electriflcation Administra-
tion, which has $4,000, 900 to dis
burse.
Approval was given allotments to.
falling $6,757, 800 for power line con-
struction and wiring in 10 States. Of
fic1aS said these projects would turn
electricity into $4,000 farm homes.
An additional 100000 was set aside
for construction Of generating plants
to serve Ohio projects, which r. EIA.
Administrator John M. Carmody said
could not make practicable arrshee.
ments to buy power from private utili-
ties.