Evening star., 1938-05-29
BY J. A. O'LEARY.


The Senate late yesterday passed
the House-approved bill to set in mo-
ton a broader slum- clearance and
low-rent housing program in Wash
ington by the Alley Dwelling Author
ity. with the cooperation Of the
United States Housing Authority.
The measure must 60 back to the
House for action on Senate phrase
ology, but since both branches have
accepted the basic features, all indi-
cations point to early enactment, en-
abling the Alley Dwelling Authority
to do three things:
Participate with other COM
munities in borrowing from the
United States Housing Authority,
which has indicated willingness
to advance between s10.000,000 and
s15,000,000 for low-rent dwellings
here.
Authorize the Alley Dwelling
agency to obtain from the Treasury
loans of sl,OOO,OO0 each year for
five years, at the going Federal
rate of interest as defined In the
Housing Act OF 1887, to expedite
the agency,s own program Of slum-
clearance and self-liquidating
housing developments.
Permit the authority to acquire
land outside of squares containing
inhabited alleys. to which its op-
erations are confined by the origi-
nal law.
Passed by Unanimous Consent
Chairman King Of the District
Committee brought the question up
by unanimous consent during lull
in Senate debate on the work-relief
bill and it was promptly passed. The
Utah Senator had the bill which the
House passed Wednesday taken up,
struck out all after the enacting clause
and inserted the text of the Senate
measure. There are no essential diff
ferences between the two bills, and
for this reason it would be possible
for the House to concur without going
to conference, which would send the
measure to the President for sigma
ture.
With this bill we'll along the road
to enactment, Senator King announced
he will make a similar effort carly this
week, possibly tuesday, to obtain pas
sage of another important hill. to place
the District on a basis of equality with
the States in the repayment OF Public
Works Administration leans. Because
p. w. A. terms elsewhere have been
liberalized since the local public works
law passed several years ago. Wash
ington is required to pay back 20 per
cent of the cost of its projects. while
other cities receive As per cent as q
grant and only 55 per cent as loan.
House Action Seen.
While the House has not acted on
the P. w. A. measure, Chairman Pal
misano is expected to hold a special
meeting Wednesday on this bill, which
also has good prospects OF enactment
before adjournment.
The District has approved applica-
tions on file at P. w. A. headquarters
for a new ward at Gallinger Hospital
and for construction of new Municipal
and Juvenile Court facilities. for which
allotments could be made after the
new work relief bill passes. Unless the
District P. w. A. loan law is amended,
however, the District could obtain
projects only on the old 30-70 grant
loan ratio, while all other communi-
ties are eligible for 45-55 ratio. Fur
thermore, the District now is required
TO repay its loans at the rate of 81 ,000,-
900 a year, while other cities issue
long-term bonds to cover their loans.
The pending bill would give the Dis
trict IS years to make repayment.
Meanwhile, the District Commits
sioners yesterday cited urgent needs
Of the District for several new NUM-
cipal buildings in reports to Chairmen
King and Palmisano requesting pas
sage of the bill.
Tax Law Change Voted.
The District Committee pointed out
to the Senate that some of the slum
squares are in commercial areas, un-
suited to low-rent housing develop
ment. The pending legislation will
make possible housing developments
elsewhere to house families substanti-
ally equal in number to those whose
slum dwellings are demolished. The
Budget Bureau informed Congress the
bill Is in accordance with the Presi.
dents program.
The Senate also passed yesterday
and sent to the President . House
resolution, changing a section Of the
new District law which inadvertently
would allow deduction Of motor We
hicle taxes in computing the business
privilege gross receipts tax. The origi-
nal intent was to allow deduction Of
personal taxes on all tangible property.
except motor vehicles, but as passed
racarf1y fba x,ordipo ~ the hill an.