Evening star., 1944-03-24
Housing
Would Increase
Tax, Lusk Says
Warns of Rise From
$1.75 to $2.35 in
SIums Program

Charges that the public housing
program proposed to reclaim slums
here would increase the District reaI
estate rate from SITS to $2.35 pei
$l00 valuation were made by Rufus
S. Lusk, president of the Washing
ton Taxpayers Association, in tes-
timony today before the Senate Dis
trict Subcommittee investigating
the local housing situation.
This increase would be necessary
Mr.. Lusk said, to make up for the
direct tax loss which would result
from the appropriation of $120, ,O00,-
600 for the public housing program
He arrived at the $l20,0O0,000 fig
ure by adding the estimated amount
needed to reclaim the District s
slums to the $4,000, 900 which would
be provided as a revolving fund un-
der bill introduced by Senator
McCarran, Democrat, of Nevada.
A tax loss of $3.50, 900 already has
resulted from operations of the
National Capital Housing Authority
during the last seven years, and al
present this loss is about $302 900 q
year, Mr.. Lusk contended.
MIR. Lusk further charged that
local businesses would lose more
than $243,0SOO 900 over a 60-yeal
period, if the public housing pro-
gram were carried out. He LISTED
mortgage bankers, real estate bro
kers, retail lumber dealers, small con-
tractors, material dealers, paint and
plumbing supply houses, plumbers
and coal dealers among the bust
nesses that would suffer.
Huge Cost Forecast.
At another point in the hearings
Mr.. Lusk told the subcommittee il
is the avowed purpose of public
housing advocates" to provide a
new home for every family earning
$1,000 a year or less.
Estimating there are at least IS.
100000 such families in the Nation
he forecast that this program would
cost the Nation "at least $4,000.
100000" over the 60-year life of the
housing that would be constructed
The cost to citizens of Washingtor
would be between $400, 900 900 anc
$500 900 900, he said.
The annual loss from failure o.
0lblic housing to pay real estate
taxes would be more than $4,000.
0OO. 900 in the Nation, and IS 900 .0O(
in Wa ShipUtpr he sold
John Ihlder, executive officer oi
the Housing Authority. attempted tc
answer Mr.. Lusk, charging that
statements and figures of the Au-
thority were being "misquoted. >
Chairman Burton of the subcom-
mlttee advised Mr. Ihlder, however
to save his reply until he is called
to testify as a rebuttal witness.
Mr.. Lusk assailed the NCHA for
doing everything in its power" to
defeat legislation that would give
private enterprise an opportunity to
demonstrate that it can reclaim the
slums. The Housing Authority has
stated time and time again" that
1t is willing to step aside if private
industry can do the job, but is not
acting as it breaches, he said.
Asks Chance for Private Builders
Mr.. Lusk warned that NCHA,
opposition to the slum- m-reclamatior
plans of private builders may result
In no slum-clearance work beins
done here for some time. He said hi
does not think Congress is willine
TO appropriate a single penny fol
additional public housing at thi.
time.
At the conclusion of Mr.. Lusk':
testimony, Senator Burton askee
him how he proposed to overcome
the public detriment to health ane
fire and police risk which exists ir
the slums here"
Mr.. Lusk said private builder.
should be given a chance" ane
that If they cannot do the whole jot
the rest OF the work should be don.
by some public housing authority.
He said he hoped private enter.
prise could handle the entire pro.
gram, but that ''in fairness" h,
would have to admit some public
housing probably will be necessary
He specified, however, that "fol
every house that is built, a slun
should be torn down."
Senator Burton cast some doubt
on the workability of the private
builders slum reclama ton propose,
by remarking that he is not sure
the Government would have the
right to condemn slum property ano
then turn it over to private builders
for redevelopment.
James C. Wilkes, counsel for the
Homebuilders of METROPOLITAN
Washington, said at the close of the
hearings that more than Is per cent
of the largest private homebuilders
in Washington will appear before
the subcommittee to state individ-
uany that they are willing to under
take the erection of slum clearance
housing.
The hearings will be resumed a,
10 IN. tomorrow.