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Subcommittee on Executive Reorgenizetion of the
Senate Committee on Government Operations
Afternoon session: December 5, 1965
Witness: Walter P. Reuther
Subject: Problems of the Cities
Mr. Reuther was accompanied by Jack T. Conway former Devuty Director
of tne Housing and Home Finance Agency and OHO. Mr. Reuther deliveres
his statement on behalf of the six and one-half milion industrial
workers represented by the Industrial Union Department of the AFL-CIO
and the million and one-half members of the United Automobile, Asrosnace
and Agricultural Imolement Workers of Americe.
He advocated a weaving of all the elements, housing, anti-pollution
control and others, in combating urban blight. He said that these
efforts must entail the most participation possible by everyone
affected end there must be a maximum coordinetion of effors..
He also said that the problems of cities are beyond the economic capebilivies
of the local governments. However, he Yeels that tne real drive anc thr o
must come from the local level.
Mr. Reuther proposed the ereation of a National Nonprofit zousing
Corvoration consisting of the best minds from Llaoor, rinance, industry,
education, etc. He prefers this sen vernmental type oF corporation
because such an organizaticn would not be entrenched in the bureaucratic
a7 ee
also thinks tnas
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a
patterns which are to be found in the government. He +
Te type of organization would not involve in-fighting which is
ometimes prevalent in government organizations. In his opinion, a
peleeie organization would be much more Flexible.
Mr. Reuther, in suggesting taav the task of retuilding tie city be
done by the totel community, described the Detroit Metropolitan Citi
Development Authority, of which he is now chairman. He said the
Authority is trying to reouvild the city and to qualify Detroit a2
Demonstration City. . This Authority now has the active p i
industry, retail stores, churches, civil rignts group
_He said they are trying to create a community vartnersnin.
Mr. Reuther described the three xinds of money which the eEoup Will use
to build housing as "seed money", dev velopment money anc ,
He said that the seed’ money is nee
interest in the progran, but will
government if rade through grants In this regard,
pension funds could probably & 2 used only for moregag
the funds ere controlled by Boards which must dec
or the money is secure. He eai
id that seed money and dev
v not be & permissible investment fo
r miost pension funds.
Orne function of the nonprofit corporation, according to Ir. Reuthe
would be to stimulate and encourage the building of tone income he ie
aol
he a
by giving technical assistance to builders who would operate for a
profit. He seid thet there would necessarily be exerts available or
on call. He said that the key to the whole problem of providing Low
income housing is to demonstrate the practical capability of tiexing
pudlic planning compatible with orivete planning and buildings.
Mr. Reuther said that he is very enthusiastic about the Den
Cities Bill. However, he criticized Congress! attitude tor
approsrietion of money Tor domestic programs. He thinks + se
programs should be funded shead of tims, so that the pesextieibe wil
iad
aus
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know whet money is available and have the money in time to plan eh
He thinks long term committiments should be made for comestic progr
as well as for military programs and Yoreign aid.
While criticizing present practices of lend use in cities, Mr Reuther
sugzested that a lend bank should be created to help local nities
provide land for low and moderates income housing. He said thet the U.
gees learn a lot from Great Eritain. He also pointed out that there
no slums in Sweden.
Mr. Reuther “gontended thet the only way to reduc
houses is to apply modern, advanced technolosy a
to such fields as space exolorati BE, Pie Babies
i $16,000 according to present standards could be dev
$8,000 if industry is shown how to do it by researc!
government or a private non-profit corporation
cy
kK
he o
Mr. Reuther was hignly critical of the present systems of
in this country. He seid that the car industry will eventusily suff
self-strangulation on the highways. E
person to carry ea ton and a half of me
thinks it is ridiculous for a
al with him to work everydey.
Main questions raised by Subcomnittee;
1. Particivetion by private industry in rebuilding cities.
Mr. Ribicoff asked Walter Reuther whet ratio would be
participation by private industry and gover in
Mr. Reutner replied th re he thought the ridin tram ratio sh
government money for EVERY. 35 of private funds used.
prososed by David Rock mereller.
2. Teaching migrants to live in the city.
; The Chairman asked who teaches the farm peoovle now to live i
how to avoid turning housing into slum ereas
the olight of public housing in many cities
unfortunat = Shine is that most new city dwellers
abous hew to Live in a elty. Xe
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fr om the slums to go back int
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local level. Mr. Reuther said he is very much in favor of them. 3
eae ional Corporation to work with tne total problem and to ba bac
p by local corporations.
6. National Nonprofit Housing Corvoretion.
- 4%
Senator Ribdicoff seid that the onl
be capable of assembling the neces
foundations, universities, labor,
to participate in the national cor
The Senator said tnat he hopes the
y level of representation from
@, industry and other
vii. would be the Pres
sident will consider tni
wn Or by
le
7. How to avoid continuetion of 4 welfare state.
Congressman James Scheuer (D - N.Y.) who was eee at the hearing
"ss asked Mr. Reuther how third sla isto welfare families and predict
(A ‘ drop-outs can be avoided. Mr. Reuther sai that the recommendati
‘ jessy made by the President's creation should be
#4 2 He said that welfare progrems often emphasize the wrong things and
A incentives, such as earning outside money. He thinks that a recipi
4 sf be allowed to do this without loosing his welfare payment so that
te" person will aspire to living on a higher plane.
ae
n -
nag mi ssicn
Mr. Reuther said that another way to avoid a welfare state and put
people to work is to have 2 stendardized comouterized emolo-
person he could think of who would
At present, Mr. Reuther claimed, tne firty entrencnea stave =
obstacles to the setting up of efficient ccmputers which could match
unemsloyed person to a joo within ea matter of minutes. Mr. Reuther
seid that the wnole person, his hobbies as well as his skills, is now
taxen into account uncer the present State systens.
8. Missing element in the slums.
Consressman Scheuer asked what is the missing
sed to help the city end whether this element is more subsidized hou
Mr. Conway said that one reason the government has not helped -encug!
subsidizing housing is that in the beginning HHA was a financial in
element that has not reson
made available for private industry. He said tnat the Asency was not =
oriented.
Change in Witness schedule:
inthony Dechan residen National Farmers Union wi now t
Anthony Dechant, esident, Naticnal F s Union will t
Tuesday December 6. Dr. | jillian Deebele, Graduate Sch
Harvard University was shifted fron Wednesday to Tuesday
Melvin Thom, Netional Indian Youth Council nas been edde
Monday, December 12.
Members present:
Senator Ribicorr
Congressman James H. Scheuer, (D-NY)