Box 22, Folder 18, Document 17

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Box 22, Folder 18, Document 17

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THE i'J"EW YOKC TIMES - 11- 30- 66
61/ '.J.:,-f ,,-·
,,__ __
Sen te Panel Endorses Bid
for · eavy Inv stnient
SpcCJ,11 ·to The 1,:cw Yor · Times
...... .
- ~po~::,ls aime~t._;,ttr~1;;
h v,;·e su ms oi_J,,r(,va,t<> r.llJ2.! tal
into sl um rehabilitation received
i,f?ong endorsc,nc~~Ltoday as the .
Sc:nate Govc::·nmen t Operations
s ubcom mittee began · a second
r ound ... qfl, ca1:in;;s on what has
be:en _, ;1llcd, . U,e,. ' c_i:isi,( ~n _t]1e .
ci ties..': .·. . , ; .':·· :· ··....i :·;:., · , ._.;~ ·: ~:-11·
Sena'tor\Jacr;b K _J a vit~. 'N°cwf.
Yorl, Republican , ~ subcommi t- ,
tee member, said he was '.'encouraged by 1:ecent reports that
the J ohnson Administration had
such a plan under study.·
Senator Abrnham A. Ribicoff,
t he subcommittee chairman, decla red tha t the task cf 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 pu blic-private assault , on g hetto
h ousi,ng. . · ·· · '
·.. ·
A Tc1itati ·c Proposal
Th~ Adn1inis t r ation's Lci1 tativc '
proposa l, developed over t he/
l;i.s t six months and re fined by
til e Dcparlmenf of H ow-:ing and
Urban Developmen t, calls fo r ,
creation of a na ti ona l, nonprof-1
it, semi-public _~.!1-Df'vel_Qp.Jlli;nt Corpornt1ll11 lha t, its sponsor~ hope, would attract heavy I
private irwestmcnt · in t o ~!um
r ehabilitation by p roviding .
variet y of F ederal incentives
and guarantees.
'I11c substance of the plan was 1
disclosed in The New York
Times on Sunday.
' E ven thoug h ., no member of
the s ubcommittee ·would comm it himself to · it specific approach, today's hearings indicated ·a lively interes t in the /
pla n on the par t of ·!Irr . Ribicoff ,
and Mr. J a vits, a s well as t he 1
committee·s ·lcad witnes., , Da, ·id !
R ockefeller, New York fi na ncier
Mr. Rockefeller, p resident of
t he Chase ?v!anhattan Bank, decla red tha t . " urilan r ehbiilita tion is primarily a t ask for p r i~
vate enterpris e." But,- in rcspon
to sustained r1ucstionin g ·from
1fr. J a vits, he conceded tha t
·business would be r eluctant to
make heavy_ capita l· .otttlays j n
slum a reas ··beca us e the · ris k'
was grca.t a nd the prof/t re-,
turns poor , ._. ,_
.r.olc a s Cont_ractor
However , the Xew Yllr!, '
ba nker also decla r ed t h:i.~ busi- l
n would nrobably be abl e to
provide substa n t ia l clp as a
··contrncto,·:' acting fo · the
Govern men t-which is one of
t he roles f or bus inc.s s envisioned
the propos;1,l · P. OW under study
in the Adminis tration .
U nder th e pla n, the ,Ur;;an
Dcvclopmcn_t Corpora.Lion would /•
h elp acquire rundown hou~in;;u sing money from pr l\·atc sou r- I
c:cs such as ban ,s a nd fnunda-1
lions as .well a:-; Governm ent
fun ds-and Lhen invite i:1dustr y
to ifate it · chea ply and
efficiently .
·· ·
In this wa y, the r cpc,rt describing the p·lan wasy, the cor poration
presently fra;;mcntcd purchasing p·ower" of the Government
with t e nrnnagcrial a nd technol o~ical capacity of "Amen. ca n industrial or;;anization."
The progra11's sponsors have
said tha t n either n ew appropriat ions ·nor new le;:;islation oould
be imincdiately requir ed.
T he plan, in its fin ai form ,
r ecommends as a first step the
purchase and rehabilita ti o~ - of
· 30 000 units in se,·era l c1L1cs,
requii·ing about _ HOO -million.
E arlier versions of t he pla_n
predicted that · ih 10_ · years . it·
could providc..,...assummg 1mt1al
success-5 mil lioa· ·cha bilitat cd
or newly b..:il t. s um un its at ,an
aggregate . cost of S?0-billion.
Appear s ' Pessimistic
?11:r: R ibicoff urged :).1:r. Rocke feller·, who .at t imes app ear ed
pessii11istic a bout a,i"akeningbusiness enthusiasm ·for la rgescale. investment in slum s on
anything other than a contractual b?.sis, to examine not the
obsta'c lcs to redevelopment but
the "hopes and the possibilit ies.'_'
H e ., u;;;:;e.:;tccl U1a t busmes s,
especially ·t he construct1on · 111dus try , woul d find in sl um re h abil itat ion J n enormous mar ket for suppiies 1·a n,:;in;:: from
floorin "' m aterial to dis posal
uni ts.
Mr. Rcickcfcllcr a lso h ad kind
words fo r loca l · r r.development
pla ns such as tha t envisioned
by S enator Robert F. Kennedy
in t he Bed,or cl-Stuyvesant a rea
of Brooklyn. The Kennedy plan
ca lls 'for t he establishment of a
n onprofit corporat ion t o engineer the· r ehabilita tion of Bedfo rd-S tuyvesant · housing.
Th. New York banker described th e approach as "mo t
He a lso exprc-ssed considerable interc,-t in ll[r . J avits',, sugg estion that the Go".ernmcnt
h elp industry fon11 a technological consortium similar to the
supel'sonic transport pro::ram .
The New York R epublican
pointed out that t he Governm ent wa.<; currently pou ring
lar;:;e sums of money into the
aircraft industry in Lile quest
for a successful super~onic line.
He ,q1;::r:estecl. Rlld ~rr. Roc-kefeller ag1:;,ed. that some k ind of
" broad - scRle
m a nagement
group mi~ht be established .
with Go\'emm01,t. help a nd - put..
to work d,~,·bing a nswers to iltE;
- . , - ··-. - ~ ....-.....- ., ,. · .:, .

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