Evening star., 1944-06-01
Real Re|lousinQ
Issue National,
lusk Declares
Sees Action Here as
Key to Program
Throughout U. S.
BY DON S. WARREN.

-
BY DON S. WARREN.
A champion for the "free enter.
prise" system Of rehousing Washing-
tons slum dwellers today told the
McGehee House District Subcom-
mittee considering the competing
slum clearance plans that the .real
issue in the fight was national
rather than local.
Rufus s. Lusk, president of the
Washington Taxpayers Association.
while contending that private enter
prise can do the Job cheaper. and
could do "all the rehousing the tax
payers can afford to pay for" said:
Depending upon what Is done in
the District will determine largely
whether or not there Is to be
Federal slum clearance program
throughout the United States" He
added that If the Federal Goyern-
ment gets into slum rehousing work
and has projects for 10000, 900 hous-
ing units. nationally, the cost would
run to many billions" of dollars.
Private Enterprise Defended.
Smarting. under the attack made
on the free enterprise" bill at the
last McGehee subcommittee session.
when Maj. Gen. u. s. Grant IIT.
head Of the National Capital PARK
ana Planning Commission, termed
the measure pork barrel bill, :. Mr.,
Lusk said:
The public housing advocates
always say they welcome participa-
tion by private builders. Well, here
we are knocking at the door. Don't
you think we ought to have a crack
at the work without suggestions
being made either that we are
crooks or dopes?
1t has been suggested that thu
private enterprise bill win enricf,
Dulioers at the taxpayers expense.
This could happen only If q majority
OF the slum-clearance board ara
crooks. It could happen, also. under
the Park and Planning Commission
oiil' except that more people would
De concerned and therefore there
Wouid have to be more bribery Il
Inere was any question of honesty.
But we know these men and believe
Them all to be honorable men and
not stupid men.n
In his criticism of the afree an.
terprlse' bill last week, Gen. Grant
also SAID ne had high regard for
Ine men sponsoring the private
Duiiders' bill but was protesting what
ne found to be q lack Of .'.controlsa
10 that bill as distinguished from
the commissions proposal.
Subsidy Arguments Reiterated
Mr.. Lusk reiterated arguments
that in the lowest rental fieid rental
subsidies to tenants would be neces.
sary since many families moved o,,t
Of slum dwellings, could NOT afford -
pay economic" rents in either event
such public housing" he declared
Is nothing In the world but charity
housing, and we believe that thaf
phase OF the handout should be han.
died through the Board of Publia
Welfare. ~
IF tenant rental subsidies arx
nandied IN that way, then the entire
case for public housing in slum
Clearance Is eliminated, for private
builders can build cheaper and man
age cheaper"
He agreed that the pronosed
project site write down Womb he :
subsidy for private builders. bui
argued that this cost to the taxpay.
ers would be recovered thorough in.
creased tax collections on redeyel.
oped areas, perhaps In 10 years
perhaps not for 40 years, but event.
ually."
He made the argument also that
some OF the direct and indirect sub
sldles are now enjoyed by the Ma.
tlonal Capital Housing Authority
which we're borne by the taxpayers
were: On annual grant from thu
Federal Public Housing Authority:
remission OF District real estate and
personal property taxes, exemption
from various District fees as well as
the Federal income, social security
and unemployment COMPENSATION
taxes, all of which private builders
have to meet.
Dirksen Questions Lusk.
When he spoke of the graded
rent system of the NCHA, under
which the poorer families are not
required to pay economic rent.a
Representative McGehee, Democrat
OF Mississippi, the subcommittee
chairman, said that sort of tenant
subsidy was going on now. Mr.
Lusk said District real estate tax
renlissions now amounted to $780,.
600 year.
Representative Dirksen, Repub-
lican, of Illinois questioned Mr.
Lusk closely on various phases OF
the problems and Representative
Russell, Democrat, of Texas said he
felt that the private builders plan
to have tenant rental aid in the low
cost field handled through the We'll
fare Board would not constitute a
builders subsidy" MIR. Lusk said
it was not direct subsidy to build
ers, but that it was true the pri-
vate builders could not engage in
the lowest rental feld-for rehous-
ing slum dwellers in better homes
except through such tenant rental
aid.
When Mr.. Russell said he Won
dered when we will reach the
straw that breaks the camels back"
in subsidized rentals, Mr.. Lusk re-
piled: "The social planners and re-
formers always run ahead OF the
taxpayers. Maybe the reformers are
necessary, but that is how it works."
When he had finished, he turned
to John H. Ihlder, NCHA director,
and asked: How do you Like that?"
and Mr.. Ihlder replied the Lusk
statements "had a very familiar
ring"
Ihlder Puts Views in Record.
Later Mr.. Ihlder put into the rec
ord lengthy outline of the argu-
ments against the "free enterprise"
bill and supporting the urban re-
bill approved by the
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