Evening Star Newspaper, December 8, 1936, Page 9

PERMANENTP.W.A. IS URGED BY ICKES Interior Head Favors Act for Continuation in Radio Forum. Congressional action making public works a permanent policy of the Gov- ernment, adequately safeguarded from “pork barrel” raids, and passage of the Wagner-Ellenbogen bill, which recognizes housing as a municipal re- sponsibility, were urged last night by Secretary of the Interior Ickes, Public Works Administration head. His plea for continuance of the P. W. A, which expires otherwise by limitation of law on June 30, next, was made before the country in the National Radio Forum, sponsored by ‘The Star and broadcast over a network of the National Broadcasting Co., through WRC. Ickes had made a similar proposal before the recent conference of mayors in Washington and last night he stressed the importance of public works expenditures, whether on a large or small scale, as a stabilizer of industry and a recovery measure in the event of some future depression. Descretionary Powers Urged. He reminded, however, that wide dis- cretionary powers should be lodged in the Administrator of Public Works, so the funds should be spent where most needed. “It would be a major misfortune if public works should ever degenerate into a ‘pork barrel’” he declared. “Better no public works program at all than such a result. To prevent this, all of us must be alert to protect the Federal funds from those who would grab them, regardless of the needs of their community.” Ickes urged that a public works gen- eral staff should be retained, at least, as an “irreducible” minimum. In lieu of a permanent policy, he sug- gested that necessarily a law should be passed giving P. W. A. time to finish the hundreds of projects it already has undertaken. Job Ratio Put at 21 to 1. ‘The factual study bearing on the ratio of indirect to direct employment on P. W. A. projects, he explained, shows that for every man-hour of labor created on the site, two and a half hours are created in producing the ma- terial used. That is the general yard stick, he pointed out, but with respect to P. W. A. municipal power projects the ratio is 4.5 to 1. ‘The Federal Government has “blazed the way” for low-cost housing, he said, but the time has come when municipal governments must realize that the chief responsibility is their own, a responsibility, however, that should be shared by the States and even by private citizens. Yet the Fed- eral Government, he suggested, should continue to aid in low-cost housing. Text of Address. ‘The text of Secretary Ickes' address follows: Tonight I shall discuss with you & topic in which I, as a Federal offi- cial and as a citizen, am vitally in- terested and one with which I be- lieve every progressive community in the United States is deeply concerned. I propose to appraise the three-and- one-half-year record of the Public Works Administration and then give you my own personal views with re- spect to the future of public works. At the outset I shall sketch in a bit of the historical background. Let your memories go back to the months immediately preceding March 4 of 1933. There was no Public Works Admin- istration then. There had been spo- radic talk of public works and even some wishful thinking about it. A few economists had written books and pamphlets about it. A handful of forward-looking men in the United States Senate wanted to give public works a trial as a means of beating back the depression which was about to engulf all of us, but the adminis- tration then in power had stubbornly clung to a different view, with the result that public works as a pro- gram to relieve unemployment had remained as it had for years, a sub- Ject for academic discussion. Not many weeks had passed, how- ever, before President Roosevelt, with & full realization of the tremendous task that he faced and a realistic knowledge of the overwhelming odds that confronted him, decided to do something about public works. Fol= lowing his leadership, which inspired the whole country and gave to the people a renewed will to fight, the Congress pushed through in mid- June of 1933 the national industrial recovery act—an act which, among other things, created the Federal Emergency Administration of Public ‘Works. Responsibilities Crushing. ‘The responsibilities that devolved upon me as administrator were almost crushing in their magnitude. No one in peace times ever before had been directed to spend $3,300,000,000 with expedition but without waste or ex- tsavagance. Alimost overnight we were required to set up an emergency or- ganization which would function effi- ciently throughout the country. We were expected to start in high from acratch. It is not necesary to tell you that ‘we were beset by many and varied ¢if- ficulties. To begin with, there were legal complications. In many com- munities we found that constitutional limitations, State laws and municipal ordinances presented almost insuper- able barriers to the speedy and suc- cessful prosecution of a Federally aid- ed public works program. Almost verywhere we found a lack of plans. | A.tragedy that is all too common in America was about to be re-enacted. ‘We were entering a major engagement unprepared. To make matters worse, there was on hand a small and noisy claque of eager critics ready to destroy what they themselves were incapable of accomplishing. I remember well some of the charges that were hurled at P. W. A. in thase early days. There will be a major scandal that will dwarf that of Teapot Dome, said the most imaginative of the reincarnated Jere- miahs. There is too much red tape was another plaint. You move too slowly, vociferated others, whose only concern seemed to be speed and more speed—speed at any price. 7 Three and & half years have gone into history since those fateful days when the President gave us the order to get under way the largest public works program of all time. Sufficient time has elapsed for any fair-minded person to make an appraisal. And so tonight I welcome this invitation of The Evening Star to avail myself of the National Radio Forum for a dis- cussion of public works—its record an its future. Effective Instrument. It is my honest conviction that the Public Works Administration has per- formed a difficult task in an efficient manner. It may sound boastful for me to say so, because of my connec- tion with P. W. A, but I know of no other emergency organization that, within its limitations, has contrib- uted more to the economic recovery that is taking place. I am not fool- ish enough to claim that P. W. A, has been responsible for all of the improved conditions that we see about us, but I do say that it has proved itself an effective instrument of re- covery; that it has given employment at prevailing wages to millions of persons; that it has kept thousands off of the relief rolls, and that it has been the means of affording & fresh start to many a disheartened family. Neither do I claim that all of the credit for the fine results flowing from the public works program be- longs to the Federal Government alone. We have had magnificent co- operation and help from States, coun= ties and municipalities, without which our undertaking would not have been a success. For this co-operation I desire to express my sincere apprecia- tion, which also goes to the people of the country generally for their gener- ous support of the public works pro=- gram. Even during the heat of the recent hard-fought political campaign I heard no criiicism of public works projects or of the manner in which P. W. A had been administered. There must have been a reason for this absence of political attack. In my opinion, this reason was that the Public Works Administration never has been conducted on a partisan basis. Our brand of public works and politics do not mix. Another reason for the widespread popularity of the program has been that through P. W. A. States, coun= ties and municipalities, from the hum- blest of villages up to the great me- tropolises, irrespective of their Ro- litical complexion, have had the op- portunity sharing directly in bring- ing recovery. They have done this through their own planning and initia- tive through the selection of those projects that they considered the most needed and useful and through the ex- penditure of their own funds. Communities Pay Major Cost. In this connection it is well to keep in mind that P. W. A. has always required tangible proof of community interest, as measured by local action and local cash, before a project re- ceived Federal aid either in the form of a loan or grant or both. And al- ways P. W. A. has insisted that the local communities pay from their own resources the major part of the cost of the project. One effect of this policy has been a steadily expanding local pride in the projects themselves. Taxpayers may now see where and how their hard- paid dollars have been spent. The proof of the pudding is there, so to speak. The tangible, physical result is there for all to see, whether it be in the form of a new school house, a waterworks or municipal power plant, & bridge or a new sewage sys- tem. The Public Works Administration welcomes the most rigid inspection of its projects. We know that firste class workmanship and the best of materials have been employed, with the result that the taxpayer has ob- tained full value for every dollar spent. I urge every citizen who has not already done so to go to the nearest completed P. W. A. project and see for himself what we have accomplished. These well-planned and well-built projects of every description may be found in almost every community in the United States. Three-quarters of the public school facilities built dur- ing the past three years have been constructed with P. W. A. help and under P. W. A. supervision. Addi- tional seats have been provided ‘for well over & million children. Allotments have been made for many other types of public buildings, including court houses and city halls, municipal auditoria and armories, hospitals, social and recreational buildings, warehouses, shops and lab= oratories and penal and eleemosynary institutions. Al Utilities Provided For. Provision has been made for almost every conceivable type of public utili- ty, including power plants and dis- tribution systems; waterworks, includ- ing mains, filtration and chlorination plants and reservoirs; garbage and rubbish disposal plants, and sewage systems, including disposal plants, sanitary sewers, storm-water sewers and combined sewers. Funds also have been spent for bet- ter roads and streets and, in limited amounts, for grade crossing elimina- MOTOR OIL 10-W FOR CHEVROLET AND PONTIAC - “ A THE EVENING STAR, WASHINGTON, D. C, TUESDAY, DECEMBER 8, 1936 . 3 « K A Asks P. W. A. Public Works Administrator Ickes, :pea)éing in the National Radio Forum. tions. I might say that the major part of the grade-crossing elimination program has been carried forward by the United States Bureau of Public Roads Engineering structures, large and small, have answered long-felt needs. Among these are bridges, such as the great Triborough in New York and the Outer Link in Chicago; subways and tunnels, wharves, piers and docks. Nor should one overlook the start that has been made in low-rent housing. I rarely ever talk of public works without mentioning housing, because slum clearance and low-rent housing are an integral part of our program. Ignoring the traditional laissez faire policy of permitting slums to exact an ever-mounting toll in our cities, P. W. A launches the Nation's first serious attack on the slums. In do- ing this it has been necessary to hack our way through a baffling series of obstacles, not the least of which has been the opposition of those who would continue to extract the last sordid penny out of disreputable ‘properties that years ago ought to have been razed as menaces to the public health as well as to public morals. As Public Works administrator I do not believe that I have been so close to the forest that I have been unable to see the trees. While it is true that my contribution to this great building program for the most part has been concerned with the formulation of policies and with administration. I| nevertheless on occasion have found time to slip away from Washington for a few hours to see for myself many of the splendid things that have been done by the architects and | engineers. Saw Bridge Opened. I witnessed the opening of the magnificent Triborough Bridge in New York City, a project of truly glgantic proportions. Not far removed is the site of the new East River ve- hicular tunnel, which is the largest single non-Federal undertaking of the Public Works Administration. Across the river on the New Jersey side is the great new medical build- ing of the Jersey City Medical Cen- ter. When completed, this imposing group of structures will be surpassed in size only by Bellevue Hospital in New York and the Cook County Hos- pital in Chicago, both of which have also been expanded under the hospital | improvement program of the Public Works Administration. P. W. A. has helped to finance new hospital facili- ties throughout the country at a cost of more than $150,000,000. Nor have I selected far my inspec- tions only the largest bridges and tun- nels, the biggest sewers and the most spectacular of the many thousands of public works. Less than a week ago I journeyed to Richmond, Va., to par- ticipate in corner stone laying cere- monies of a fine dormitory building on the campus of the 100-year-old Medical College of Virginia. As I have already indicated, the education- al projects of P. W. A. literally dot the land. I invite my listeners to do what I myselt have done. Go to visit these P. W. A. projects. Examine them carefully. See them for yourselves. And if you do this I am confident that you will be satisfled that P. W. A. has built enduring projects which will be used and enjoyed for many years to come. I am sure, too, that you will go away feeling that the money spent has been well invested. In re- counting the reasons for the general approbation that has been accorded the P. W. A. program, I have men- tioned the absence of politics in the administration of the law, the fine spirit of co-operation on the part of the local subdivisions of Government 3 Econont A. Continuance —Star Staff Photo. and the excellence of the projects from the standpoint of utllity and social desirability. Supplies Work for Many. | The real justification, however, for | & program of public works at a time of economic depression is that it sup- plies work for a number of people, depending upon the amount of money expended, who otherwise would be un- employed. P. W. A. has accomplished much more in providing employment than is commonly supposed. Yet if I were asked tonight to state how many men have been given employment as a result of P. W. A, truthfully I could not give the correct answer. I do "ot know. I do know, however, that tables of figures intended to show the number of men at work on a given project do not always reflect the true situation. An announcement, for instance, that P. W. A. has 300,000 men at work on its projects is misleading because it reflects only the number working at the sites of the projects. In reality this employment at the site is only believe should be accepted as our guide for the future. Doubts Effect W 1 am thoroughly convinced that the soundest possible public policy at a time of economic depression is the prompt undertaking of a far-flung program of substantial public works. 1 do not believe that any fair eritic will now question the widespread and substantial effect of our public works program in. helping to stop the de- pression, in helping to turn the tide and in helping the country to point back toward recovery and prosperity. 1 am firmly convinced that if we had & program of public works ready to embark upon when this administra- tion came into power in March, 1933, and if Congress had promptly appro- priated, not three billions of dollars, but a much larger sum with which to undertake that program, we would have experienced recovery much earlier and in greater volume than we have had fit. I believe that the Public Works Ad- ministration should be made a per- manent agency of Government. As you may perhaps know, the Federal Emergency Administration of Public Works will expire by limitation of law on June 30 next. On that date many projects will be uncompleted. Neces- sarily a law should be passed at least giving P. W. A. time within which to complete the task that it has already undertaken. But for my part, I am hoping for more than this. Even if the necessity for a continuation of building on the present scale no longer exists, we must think of the future. There is no assurance, based upon the past, that we will not find ourselves in another depression in the years to come. We hope that this will not be the case, but probably there exists in the hearts of all of us a lurking fear that, after all, this hope is just a hope. If there should be another depression we must not be unprepared as we were when the last one struck us. As an irreducible minimum we should main- tain a public works general staff. We should have a reservoir of well-con- sidered, carefully planned projects, work on which could be undertaken as soon as the necessity arose and money was made available for them. Now, as to the immediate future of public works, and here also I am ex- pressing only my personal views: I believe that it will be necessary to round out and complete our program by making allocations for limited ad- ditional projects. We are working a small part of the larger volume of ‘work that has been created by P. W. A. A factual study recently conducted by an independent outside source showed that the ratio of indirect to direct employment on completed P. W. A. municipal power plant projects is 412 to 1. In other words, for every day’s work at the site of such projects there are between four and five days’ work created away from the site—in mines, manufacturing plants and shops and in transportation services. Realizing that the indirect labor on power projects is higher than in con- nection with many other types of con- struction, I requested that Secretary of Labor Perkins have her United States Bureau of Labor Statistics make an independent investigation of P. W. A. projects to determine the ratio of indireot to direct labor. Study Took Two Years. This intensive study by the impar- tial United States Bureau of Labor Statistics has taken two years, and the authoritative report of the results was announced today. It shows that the Public Works Administration cre- ates two and one-half times more work in private industries supplying building materials than it does in the building trades constructing its proj- jects. Reduced to its simplest terms this means that when it is reported that a particular P. W. A. project will provide 1,000,000 man-hours of work at the site the additional em- ployment provided, including off-the- site or “behind-the-lines” employment, 1s 2,500,000 man-hours, making a total of 3,500,000 man-hours. ‘This creation of jobs from é:e site of the project has been most difficult to understand. And yet it should be easily comprehensible, for every one who pauses to think, must know that all of the steel and bricks and lumber and qgher materials that go into P. W. A. projects must come from some- where and that for their production, fabrication and transportation a vast amount of labor is required. To date there has been spent on Public Works Administration projects some $1,600,000,000 for materials and supplies. The biggest part of this has gone directly to labor. I have so far attempted to state United States. I do not want it to be understood that I assume to with authority on this only tell you what my can only discuss in & very general way certain princip] on the basis of past ex ical Prices 1202 Monroe St. N.E. 1313 H St. NW. From of the cost of a project. We ought to inquire painstakisgly into the financial ability of the local commu- nity and if we find that local re- sources are such that the project ap- plied for can be built with a grant of less than 45 per cent from the Fed- eral Government, then we ought to give only such & grant as is needed. My idea is that while making our maximum grant 45 per cent, or even less, we ought to grant only what the local community actually requires, be that 30 per cent or 20 per cent or 10 per cent. In view of the fact that interest rates are much lower than when the public works program was inaugurated, it may well be that it would be proper for us to lower our rates correspondingly. Especially might it be proper to decrease our interest rates if our grants are re- duced. There is another public function which P. W. A. might properly per- form. Take the case of a municipality where the banks are insisting upon an unreasonably high interest rate as a condition precedent to floating & bond issue for a school or a sewage sys- tem, or some other needed improve- ment. In such an instance P. W. A. might very well offer to take the bonds of that municipality at a rea- sonable rate and thus prevent it from being bludgeoned into paying an exor- bitant rate of interest. Wide Powers Favored. It will be realized at once that such policies as I have suggested would mean that wide discretionary powers should be lodged in the administrator of public works. It can be seen that it would be no easy task to resist the insistence on the part of one city that it should be given a 45 per cent grant on a project merely because another city had been so favored, even though the first city was in so much sounder an economic condition that it did not need so much help. One important task will be to educate, not only the You & somewhat different category than the usual run of public works projects. Housing is the most vital social chal- lenge before us today. It is & problem which profoundly affects our cities and the lives of our people. It is an issue that is squarely up to the urban communities of this country. P. W. A., with its demonstrational program of some 50 projects, has made a start. The first of these is now operating in Atlanta, Ga. More are getting ready to open their doors, and we expect to have the entire lot in operation next year. To the subject of housing we can now bring the accumulated experience of several years’ operation of P. W. A's Division. We may now consider the future of housing as a program to be improved, modified and perfected against the recovery back- ground of 1937, and not the depres- sion background of 1933. Whether any particular municipality is to ben- efit by any present or future housing program, in my opinion, will depend on the willingness of that municipal- ity to accept responsibility and to act. Responsibility on Municipalities. The Federal Government was willing to blaze the way, but the time has come when municipal governments must realize that the chief responsi- bility is their own, a responsibility, however, which should be shared by the States and even by private citi~ zens. The Federal Government alone cannot continue to carry the load. But it should be willing to make loans and grants to cities to aid in low-cost housing. The grants should be gen- erous and the loans at low interest rates. ‘The Wagner-Ellenbogen housing bill, passed last year by the Senate, defi- nitely recognizes housing as a mu- nicipal responsibility. The Public Works Administration supported that bill. Senator Wagner recently de- clared that he would again introduce a similar bill, and has expressed the belief that this year it will be passed by the Congress. It is probably not necessary to call your attention to what President Roosevelt said in New — ‘York recently about his desire to have a housing program which will enable our people to live under decent con- ditions. You will recall that he stated that his administration would find & way to wipe out slums, and to pro- vide proper housing for those families that now are unable, by reason of their small incomes, to live decently. 1 have told you that in my opinion the program of the Public Works Ad- ministration, measured by its gz complishments, merits the confidence and continued support of the people. I have expressed my own personal opinion that it is for the best inter- ests of the country that P. W. A. be continued. If P. W. A. is to be made a perma- nent agency of our Government, it goes without saying that the success of any future program wAll depend upon the patriotism of our citizens and the degree of disinterested co- operation between the Federal Gov- ernment, the States and the political subdivisions of the States. To date we have made a gréat record. Now we must consolidate our gains. On the basis of experience, we must pre- pare ourselves for the future. To do this we must extend our vision be- yond today, or even tomorrow, snd into the years of destiny that lie ahead. —_— Fewer Jobless in Denmark. Denmark has fewer unemployed or- ganized workers than at any time in the last 10 years. BARGAIN XCURSIONS SPECIAL ROUND TRIP FARES Good on specified trains only— for details see fiyers—consuh ogems - Sunday, December 13 $3.00 Philadelphia $2.75 Wilmington Baltimore $1.25 Every Saturday - Sunday $1.50 Daily— Good for 3 days PENNSYLVANIA RAILROAD } 711 TWELFTH ST. Via Sloane’s Such a gift will bring with it a double assurance— your holiday greetings—and your appreciation of the artistic and useful—which spells “Merry Christ- mas” throughout the year. Look for the special Christmas Tags on these special pieces. Jefferson Card Table, a replica of the famous console table at Monticello, reproduced in genu- ine Honduras ma- hogany and finished in the old red color. Regular Price $35 $29.75 Tambour Secretary, of the late Sheraton period in genuine Hon- duras mahogany with skillful in- lays of satinwood and ebony. The finish is the rubbed old red color, and with interesting drawer pulls. A piece that is true to the old* Colonial Cocktail Table, in genuine Honduras mahog- school. Regular Price $225. rAl! Twelfth St. any. A very attractive oc- casional piece and one that will come into frequent serv- s ice in any home. $22.50 Regular Price $25 ...... Sheraton Lamp Table, genuine mahogany with ex- quisitely turned base, leather top and brass claw feet. Regular Price 525 Georgian Easy Chair, with back of just the right curve and seat the correct pitch that insures that supreme comfort which makes a chair a real easy chair. Carved cabriole legs of solid Honduras mahogany; tailored in turquoise brocade. b . $56-50 Cornucopia Lamp, im- ported alabaster, hand carved on beautiful trans- lucent stone. $18 Georgian Pie Crust Table, with pedestal beautifully carved and the pie crust edge skillfully executed. Construction is genuine Honduras mahogany. Price 560 ... Regular Price $21.ooeeee - W