Public Bodies Slow to Avail Themselves of' R. F. C. Assistance

Lumbermen Advised to'Take the Lead in Stimuloting Local Governmental Authorities to Canvass Oppo*unities for Self-Liquidating Proiects

Washington, Oct. 25.-It is inferred from an address delivered by Harvey C. Couch, a director of the Reconstruction Finance Corporation, before the National Conference on Construction, held here on October 13, that lumbermen ,can take the initiative in creating business for themselves by getting their communities interested in reproductive public works to be financed by the Reconstruction Finance Corporation.

, It is perhaps not generally realized that R. F. C. selfliquidating project loans are intended to be utilized for unemployment relief, although in no way to be confused with the $300,000,000 loanable by the Federal Government through the R. F. C. to state and local communitiqs for relief expenditures. The act provides that no one person shall be permitted to work more than 30 hours in any one week if employed on one of these projects. The act also stipulates that employment preference shall be given to exmilitary service men having dependents. It is also provided that wherever possible machinery and materials used in 'these projects must be American-made.

The Reconstruction Finance Corporation, Mr. Couch points out, is authorized and empowered "to make loans to, or contracts with, states, municipalities, and political subdivisions of states, public agencies of states, of municipalities, and of political subdivisions of states, public corporations, boards and commissions, and public municipal instrumentalities of one or more states, to aid in financing projects authorized under federal, state, or municipal law which are selfJiquidating in character."

From this paragraph it appears that practically every institution operating under municipal, state or federal law is eligible for R. F. C. assistance for any kind of a construction project duly authorized by law and selfJiquidating. Besides public corporations, private corporations may borrow for projects of a public nature such as the construction, replacement or improvement of bridges, viaducts, water works, markets, etc.

"The gate is wide open," said Mr. Couch, "the responsibility for initiating these projects rests on the officials administering the affairs of municipalities, counties and states."

But as in almost all public enterprises some one person takes the initiative, many communities will fail to avail themselves of this opportunity to finance necessary public works and help solve the unemployment and depressed business situation unless the lead is taken by some active and understanding person.

Self-Liquidating Projects Defined

Such a person considering the situation of his own community and its eligibility for R. F. C. help will have first to determine whether there is locally available any selfliquidating project. A self-liquidating project is defined to,be one that will be made self-supporting and the cost of which will be returned within a reasonable period through the tolls, fees, rents or other charges earned by it when completed. The net income from the project must, of course, exceed the operating expenses by a margin wide enough to pay interest and to amortize the indebtedness over a reasonable period; and the revenues derived fror4 the project must be applicable to selfJiquidating projects.

The intention of the.act is to hav6l the ccinstruction cost returned from charges made for the use of the service, thus if a sewer is to be built the cost of it must be returned from the charges assessed against the people who use it. A sewei ivhich is to be paid for from taxation is not eligible for a loan from the Corporation. It is sometimes difficult to say just what constitutes taxation. The R. F. C. has corrie to the conclusion that there are instances under which construction assessinents would not be classed as taxation and that projects thus financed would be considered sel{Jiquidating and available for an R. F. C. loan.

The R. F. C. will not advance money to finance any sort of work already completed, as one of the purposes of its loans is to provide employment.

Applicants for loans must always remember that they are made on a business-like basis and must be fully and adequately secured. The best procedure when R. F. C. assist: ance is contemplated is to have some public official write to the R. F. C. and state the nature of a possible undertaking and what financing is required. Of the more than 500 informal applications received to date only about 25 per cent are eligible. Of these about 70 have furnished sufficient data to enable the Corporation to decide whether the projects are fully self-liquidating.

Surprisingly Few Applications

The R. F. C. reminds the public that size of a project does not afiect its prospect of being authorized. A small project, if eligible, will receive the same consideration as a large one.

The R. F. C. is surprised that there have been, relatively speaking, so few applications for loans. "'When one recalls," says Mr. Couch, "that there are over 3,000 towns and cities in the United States with a population over 2500; that there are 48 states each having innumerable political sub-divisions, agencies and commissions; that there are 11,000,000' people unemployed and clamoring for work, he is astounded' that the officials of municipalities and public agencies have not taken advantage of the act to a great extent. * * * If the funds provided by the act are to be effective in relieving the unemployment of the nation, public officials must make applications for projects which come within the scope of the law." In making application for a loan correspondence should be addressed to the Engineers'Advisory Board, Reconstru,ction Finance Corporation, Washington, D. C.

Lumbermen everywhere can assist in stimulating busi-, ness and relieving unemployment by canvassing with their' local officials the possibilities and advisability of undertak--: t ing municipal, self-liquidating projects.

This Stair Hall in the residence of Mr. R. W. Kittrelle at Piedmont, California, is a gracious example of the charm of fine woodwork. Both the staircase and hall proPer, are finished in Plain White Oak. The use of rotary-cut veneers for face of wall panels achieves a slash figure which is tasteful as well as distinctive. Architectural Woodwork by Loop Lumber & Mitl Company, Alameda. Architects: Williams & Wastcll, Oakland.