Evening star., 1938-10-10
HOUSING FIGHT
AGAIN IS HEADED
FOR WHITE HOUSE
Anderson ReneWs Dispute
by Assai|ing IhIder Tax
Exemption Plan.
LABOR LEADER ASSERTS
LAW is BEING VIOLATED
President Was Believed to Have
Settled Issue After Previous
Differences.

The probability Of President Roose-
welt being called upon for the second
time to intervene in Washington's
lively dispute over housing policies ap-
peared today as organized labor again
criticized the Alley Dwelling Authority
John Anderson, president of the
Washington Industrial Council, a
c. l. o. affiliate, who urged the Alley
Dwelling Authority last week to stop
playing politics" renewed the dispute
last night by assailing John Ihlder's
tax-exemption plan for a housing
subsidy
The A. D. A. proposal, he declared,
Is directly opposed to provisions OF
the Wagner-Steagall Housing Act"
Mr.. Ihlder, on the other hand, de-
MED the charge. "The A. D. A. pro-
posal is in full accordance with the
act" he maintained.
There the matter rested for the
time being, but influences were at
work today to carry the housing dis
pute to the White House.
Problem Believed Solved.
1t was believed Mr.. Roosevelt had
solved the housing problem for Wash
ington last winter when he approved
a plan of action that would provide
for a dual program of subsidized and
self-sustained housing. 1t was on this
basis that legislation was enacted au-
thoriZing the A. D. A. to borrow funds
for subsidized housing projects and
at the same time borrow to extend
its own individual program of alley
reclamation. Congress authorized both,
but failed at the last moment to ap-
propriate funds to carry out the provi-
sions of the local program
Some observers say there is no
need for the dispute to 60 again to
the White House and that it would be
better for all concerned if the two
agencies got together and worked out
satisfactory compromise.
Mr.. Anderson, who is also chairman
of the Housing Committee of the
C. I. o. Council, contended further
that the present plan of the A. D. A.
would "nullify the effectiveness of the
Housing Act"
Limited by Incomes.
The United States Housing Authority
through Administrator Nathan Straus,
insists that its funds be used to erect
homes for families with incomes of
less than 1000. Under the A. D. A.
proposal, without a Federal subsidy,
one-fourth of the families to be served
would have incomes of less than 81, ,000
but three-fourths would have incomes
ranging up to $1,000.
Mr.. Ihlder explained that the Dis
trict's taxpayers in reality would con-
tribute the taxes, all A. D. A. proper
ties being tax exempt. All the pro-
posed rents for the housing projects
includes taxes, but they are to be
used, however, in reducing the rents
for tenants in the lowest income
brackets.
Mr.. Anderson sides with the U. S.
H. A. on this issue. Referring to the
Wagner-Steagall Act. he said: This
act provides for subsidizing housing so
as to bring housing within the reach
Of those earning below $1,000 per year
and who can afford only from SO to
IS per room per month.
Now we find Mr.. Ihlder proposing
that we eliminate the subsidy, which
would nullify the effectiveness of the
Housing Act.
He certainly must realize that the
real estate interests will seize upon
his plan to eliminate subsidy, and use
the plan as the spearhead against
Government subsidy for housing"
Fears Unfairness.
The labor leader also charged that
the A. D. A. plan would force the
quarters upper bracket tenants
with incomes ranging from $1,000 to
$1,000, to bear the cost of "subsidizing'
housing for the lower-income groups,
This is exactly the position taken
by U. S. H. A. officials who claim the
rents should be fixed to include only
those below $1,000 or $1,100 at the
outside.
Mr.. Ihlder was preparing another
statement today. Meanwhile, it ap-
peared he was standing pat on his
proposal for 100 per cent loan of
$1O,614,021. This would void the pay
ment of 10 per cent of the amount by
the District Government. He has
been advised by the latter that it
would be illegal for the District to
assume the obligation in the absence
Of congressional appropriation.