Box 22, Folder 18, Document 8

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December 6, 1955 (Mornings) te

BAYARD RUSTIN, Executive Director, A. Philip Randolph Institute

Mr. Rustin ettrisuted recent manifestations of racial conflict to @
national shortage of jots, educational ovoportunities, and housing, which
creates the fear that Negro advances will prove detrimental to whi
He urged the edeption of the proposed "freedou budget" so that sea
in the fields of employment, housing, and education can te eliminate ‘
An economic and sociological analysis of racial prejudice and alienation
compels the conclusion that progress can be achieved only through 4
massive national commitment to the improvement of urban conditions. The
main points raised in the testimony and the questioning period were th
following: ’ “%


1. The Effect of the Hougins Shortage on Race Relations

Mr. Rustin stressed the importence of assuring all income grouos effective
access to the housing market. He pointed out that the existence of housings
scarcities le2sds whites to support restrictive practices and forces Negroes

to live in susstanderd housings.

‘ Wats a1 e 2 1 Market Me anism
2 The Failure of the Marke chanis

Mr. Rustin supported the view of Professor Galbraith tt

hat social and esthetic
values should have priority over financial considerations rp

an development.
A. PHILIP RANDOLPH, President, A. Pailip Randolph Institute

Mr. Randolph enalyzed the problem of winning political support for the
"freedom budget" approach to urban problems. He declared that e coalition
of liberal elements could be formed with sufficient strength to win apvoroval
for the expenditure of $185 billion of Federal funds over a period of ten
years. The main points raised in the testimony and during the questioning
pericd were the following:

1. The Hifect of Federal Housine Policies

Mr. Randolph asserted that Fecerel prozrams have subsidized housing for
persons in the middle and upper inccme Groups to the nexlect of the poor.

The ehent fron the central city to suburoia nas been made possible by

Federal expenditures, While @ much smaller emounts nas sone to provide

the poor with high-rise s earegesed housing vrojects. ir. Randolph noted

tnet tris conclusion was set Torthn in the rerorc of the White House Contersnce

on Civil Riz


2. The Need for Planned Social Investment -

Mr. Randolph edvocated the adoption of a program of planning social
investment in urban development rather than a counter subsidy for low-income ”


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