Box 22, Folder 18, Document 17

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X TIMES ~ 11-30-6


Sof oS —

Senate Panel Endorses Bid
for Heavy Investment
Spectal to The Now York Times

—Proposals aimed’; attracting

fuze. Sums of Dtivate capital
into slum rehabilitation received)

strong endorsement toda yas ane

Senate Government Operations

subcommittee began a sccond|

Tolnd.ofh earings on what has!
a ss

cities, .~

been ‘called. the, sin the/
aie Re ee ef

a ®

Senalor Jacob K, Javits, Now.

York Republican, a subconunit-
tee member, said he was “en-
couraged” by recent reports that
the Johnson Administration had
such a plan under study.
Senator Abraham A. Ribicofi,
the subcommittee chairman, de-
clared that the task ef providing
decent housing in slums was
not going to be solved ‘by
Government: alone, ‘
_ He indicated that “he would
listen sympathetically to any
Proposal involving: a joint pub-
lic-private assault - on ghetto
housing. .°* ' we
A Tentative Proposal
The Administration's tentative!
Proposal, developed over thel
last six months und refined by
the Department of Housing and|
Urban Development, calls for!
erontion ote national, nonprot-|
IL, semi-publie Trhan Develan-
ment Comparanir ieee its ari
Sos hope, would attract heavy
private. investment into slum!
rehabilitation by providing. at
variety of Federal incentives}
and guarantees, F
The substance of the plan was!
disclosed in The New York
, Times on Sunday. :
Even member of
the subcommittee would com-
mit himself to-a specific ap-
proach, today’s hearings indi-|
cated a lively interest in the;
plan on the part of Mr. Ribicoff!
and Mr. Javits, as well as the!
committee's lead witness, David!
Rockefeller, New York financier
Mr. Rockefeller, president of
the Chase Manhattan Gank, de-
clared that. “urban rehbiilita-
tion is primarily a task for pri-
vate enterprise.” But,.in respon
to sustained questioning from
Mr. Javits, he coneeded that
business would be reluctant to
make heavy capital outlays in
slum areas because the risk
Was great and, the profit re-
turns poor 2 yf

-can industrial organization.”

‘Role as Contractor

However, the New York!
banker also declared that busi-|
ness would probably be able to
provide substantial help as a
“contractor” acting for the
Government—which is one of)
the roles for business envisioned
the proposal now under study
in the Administration.

Under the pian, the Urgan
Development Corporation would)
help acquire rundown housing—|
using money from private sour-
ees such as banks and founda-
tions as well as Government|
funds—and then invile industry]
to rehabilitate it cheaply and)

In this way, the report de-
scribing the plan wasy, the cor-
poration would “fuse the
presently fragmented purchas-
ing power” of the Government
with t e managerial and tech-
nological capacity of ‘“Ameri-

The program's sponsors have
said that neither new appropria-
tions ‘nor new legislation oould
be immediately required.

The plan, in its final form,
recommends as a first step the
purchase and rehabilitation of
$0,000 units in several cities,
requiring ahout #400-million.
Earlier versions of the plan
predicted that in 10° years it
could provide—-assuming initial
success—5 milliom rehabilitated
or newly built, slum units at an
aggregate cost of $50-billion.

Appears Pessimistic

Mr, Ribicoff urged Mr. Racke-
feller, who at times appeared
pessimistic about awakening
business enthusiasm ‘ior large-
scale investment in slums on
anything other than a contrac-
tual basis, to examine not the
obstacles to redevelopment but
the “hopes and the possibil-

He suggested that business,
especially the construction | in-
dustry, would find in slum re-
hahbilitation an enormous mar-
kel for supplies ranging from
flooring material to disposal

Mr. Rockefeller also had kind
words for local: redevelopment
plans such as that envisioned
by Senator Robert F. Kennedy
in the Bedford-Stuyvesant area
ot Brooklyn, The Kennedy plan
calls for the establishment of a
nonprofit corporation to engi-
neer the- rehabilitation of Bed-
ford-Stuyvesant housing,

The New York banker de-
scribed the approach as “most

He also expressed considera-
ble interest in Mr. Javits's sug-
gestion that the Government
help industry form a techno-
logical consortium similar to the
supersonic transport program.

The New York Republican
Pointed out that the Govern-
ment was currently pouring
large sums of money inta the
aircraft industry in the quest
for a successful supersonic line,

He suggested, and Mr. Rocke-
feller agreed, that some kind of
“broad - scale hlanagement
group" might be established!
with Government. help. and. put
to work devising answers to the|

“Aeeee sf aenhen Tee *

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