Evening star., 1939-03-11
Loss Of Fund
Criipp|esA. D.A.
S|un1 Attack
IhIder Testified
Worst Alleys
Were to Be Target

The $500,000 Treasury loan to
the Alley Dwelling Authority,
which the Senate Appropriations
Committee knocked from the
Treasury-Post Office supply bill yes
terday, was to have. been used to
make a start on the reclamation
of some of Washington's worst
alley slums," John Ihlder, head of
the agency, told the committee in
the hearings on the bill, made pub
lie today.
The original budget estimate was
for $1,000,0O0 loan, as authorized
in the amended Alley Dwelling Act
of last June. The House had al
ready cut it in half, and the SEN
ate committee eliminated it en-
tirely.
Mr.. Ihlder testified, the hearings
show, that the full amount of the
loan is necessary if the authority
Is to make appreciable progress in
carrying out the instructions given
it by Congress to rid Washington
VI ltS dlley Sums.
There are still some 176 squares
containing inhabited alleys, and
the conditions in those squares are
extending over wider areas" he
continued. The immediate pro-
gram of the Alley Dwelling Au-
thority, dependent upon loans from
the Treasury, contemplates the
reclamation of some of Washing
tons worst alley slums at a total
investment of approximately ST.
100000, that is, the first two in
stallments of the $5,o00,OOO of inter-
est-bearing loans authorized by
Congress last June"
Sees Advances Returned.
Mr.; Ihlder reminded the COM
mittee that after. reclamation of
the slum areas a considerable part
of the property acquired will ulti-
mately be so4d to private investors
and the amounts expended thereby
recaptured.
In its report the committee men,
toned the s66O0,O0O loan A. D. A.
has received from the United States
Housing Authority and negotiations
for later loan of S8,400,000 from
the same agency. The committee
said it felt ample funds would be
available to enable the authority
to demonstrate what they can ac-
complish without an additional
loan of s50O,OOO"
1t was fully developed in the hear
ings, however. that the proposed
Treasury loan was to deal with
slums the authority cannot touch
under the U. S. H. A. loans.
When slums are in areas where
it would be inadvisable to replace
them with new dwelling projects
'the A. D. A. is authorized by Con-
gress to redevelop such areas for
commercial purposes, to be leased
or sold. and the Treasury loan was
to have been used for this phase
of the program.
Price Limit Set.
Mr.. Ihlder also told the COM
mittee that a U. S. H. A. rule plac-
ing a price limit of $3.50 per square
foot on land purchases means the
A. D. A. cannot touch some of our
most crowded slums" except
through the separate Treasury loan
program. Mr.. Ihlder said it was
estimated some of the property
would cost 50 per square foot.
Senator Taft. Republican, of Ohio
inquired if the agency could not
buy the slum property. merely clear
it and wait until some one wanted
to develop it.
I'VE would sink our money in it
and it would stay sunk Mr.. Ihlder
replied, explaining England had
tried that; He explained that by
building either houses or CONNER
cial structures where advisable the
authority derives an income from
rents or sales, which operates the
agency and helps eliminate other
slum areas. He emphasized, how
ever. that at any point in the de-
velopment of a project the authority
is willing to sell the property.
The supply bill probably will be
taken up in the Senate early next
week. Even if the Senate does not
restore all or part of the sl,000,000
loan estimate, the S500,000 the
House approved would be subject
to further consideration in confer
ence.
Senators McKellar of Tennessee,
Bankhead of Alabama and Hayden
of Arizona also took part in ques-
tioning Mr.. Ihlder about A. D. A.
program.