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Box 22, Folder 18, Document 7
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Tait t. o> eee: ; ‘
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, Aerosnace
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 laoor, 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
&
a
patterns which are to be found in the government. He +
Te type of organization would not involve in-fighting whicn 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 reouild 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", development money and ,
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 are controlled by 3 osrds which must dec
of the money is secure.
*
not be & permissible invesbiient fi
me
mw
ia)
that seed money and dsv
or most pension funds.
fo
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
¥
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 that the U. 6.
gees learn a lot from Great Eritain. He also pointed out that there are
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 at, ES habiovwe
$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. de seid that the car industry will eventuslly suffer fren
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 what ratio would be
participation by private industry and gover in
Mr. Reutner replied th re he thought the minimum ravio 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
+
u
fr om the slums to go back int
kai
@ and take cere oF
to liv
q
a
D
Pe
rl
ei
ad
=
or]
ha
ao
xs
4>
La
in)
a
mh 28
i §
ot
i =]
aw
ow
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qq GO
a)
ae
wet O
et)
sg 3
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wo Tt
AD eed
an
e-{ oe
o
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<
43 et
BE
‘a oD
a ey
ta Laood
iH
‘a <t
© 4
aA Oo
a
2 8
A spt
4
0 vet
42 U3
wo oO
& Py
O
aw
ca.
an Ameri
“a
ure
3 or
i
il
ey of curing
ii
rganuized to
3 oF
BOVErnment oO
&
a
off
Site
L010
Senator &
ia
‘ a vi
i a
45 a
a2 a sda
«a et 4 14 13 3
wot og i) pa ee
mn 4 g Oo ac
2 OM - oO :
moerl t4 o ny
Oop © . a qi Ww
i a a £4 ao 4 0
ow ny 4) a 204 06
hi Mi bs 3 A "2 erm ed ed
Gq bd 4 wy qd 43 ot qo a ot
em FF aed a a) . ono o
GO W rd w f4 boo Gg 3
a bs Woh Sa 4
to o oD Om fh Oec
um a 4 444 cs Q Aa
Coed q) 0 0 oOo @
PoE Ww ty o0.0q 2 3 0
O- <i oct 93 a
D> -l Pp w a = og 42
Geis ust i qj. Ago Q
sto ov e} ood Oh O mM Ay
aa: © OQ Oert ed
q 5 “<2 G4 «3
wd a) be co od og m9
wd 2 a pod gs Od
al yo te 4 Y o£ @ ro
a oO 4 s4 46% O 8 & 4
q) uD 0. o Yeisen Ss
Pa {> a OR 44 oo o *
ao ol @ Y ng > OR ea
2 8 u 0 aed 0) 02 EF 44 43
ea Pp oO a Mot oo Oo aed
oO @ a) = yo. a Q 42 oO
On a wa by tr a 3
a a fu me Edict ao Oo v
a au a a2 OFF O a
ao Ee a vo fa oma) ~
ea ke ED »~ fa asf Py S S
QO £3 oY i »m Oo Teed
A, Oo Gea i O Hed ao Go
« to} £ ° 4D Moo sa a a OC
a wiy4o qt Oo is O YU 43 wa a cf
GO ef] a ma ie) aoao 6 9 ft a o
aA ict CF ee gor woo a9 feed hy Oo acl
mes ao pd Sadoasd wa at adadas «a
a 5d a _ @ as "ta th eh ort
FI O04 “4 po s 4 73420 8 a
cai ss u ao uomd uw gO a oS 53 6 y
hifeet ee UG On @& 9 O @ 9° aoa hy pt H
OTD 2 4 tt Ga a&agd eu o OG rd i)
GPO ea Be » 2 ooo oO ct
ao wv =f oo ots wo ae) ire ood & tri
Hf Oled 9G gp goddaa @ Pi” By
Site Hat sd og ef > y go” by
ao 2 4 wQ wt oO “y Ved SH Oo
Ga te bs wd on pwn o dda ©
Oo ayer ci feo] Cy Pat Gos a . PPO & w
aye oo wv ray he Gp oo a ey i oo mou @ ri
a “a he oo Op oe oo = Vet ow
Bop 42 ho iho OWN OY Ei @ fy r-t O wo oH
SF ay teh wa w-o ovr ude 2 Ps Oago d ta a
La ca
op a)
oa EA : : : . . a
4H, {PF @& 2 0 oS w G
Py ee aq 4 fg
mlm O 47
Q Sw wo
AO ed .
7h - Ss . =r
an,
a0
nt
ake
fe
to
cv
1
i
Bnousi
fea
=
nm
aa
e
ao
not
fever,
L
wo
wan
coe
he
ri,
G
a
Wa
e-
ros
w
tl
od
sy (U}
p>
op
a
oe
me
a
43
£3
a) «a
eg
42
4 a
Mo
gob
—m ‘ei
g
a7 @
a
49 4c
o
Oy $4
“3 0
oO 2
be
Syed
w 4.
Gt
ti
4d qa
a6
"3 ed
A
M6
Pr
2
ca a
3)
s
i *
a
a Db
yk
=D
o
“7 a
wa i
ae)
Qo @
a oes
i =
ort wade by
nt
d, Sas
a ae aa weet
MSYuLCLVecing
ere
Att
Oris
Fi
a
fovember
in
laygrounds.
Pi
©
9
wu;
was
avor of
Oo
fe
eay wi
nm
Senator Ke
ty De
Tema page 2 gmt
rayne ¥
2d A
c
o
i
Lm
FS
&
ay
eucnier
Tt.
ms
fos
MQ.
. = facu.
i oe it aus
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 be 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 6 welfare state.
Congressman James Scheuer (D - N.Y.) who was eee at the hearing
asked Mr. Reuther how third sla isto welfare families and predict
drop-outs can be avoided. Mr. Reuther sai that the recomex
made by the President's n Augomation should be
He said that welfare progrems often emphasize the wrong things and
incentives, such as earning outside money. He thinks that a recipi
be allowed to do this without loosing his welfare payment so that
person will aspire to living on a higher plane.
ae
nag mi ssicn
Mr. Reuther said that enother 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 a
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 from 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)
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, Aerosnace
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 laoor, 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
&
a
patterns which are to be found in the government. He +
Te type of organization would not involve in-fighting whicn 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 reouild 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", development money and ,
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 are controlled by 3 osrds which must dec
of the money is secure.
*
not be & permissible invesbiient fi
me
mw
ia)
that seed money and dsv
or most pension funds.
fo
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
¥
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 that the U. 6.
gees learn a lot from Great Eritain. He also pointed out that there are
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 at, ES habiovwe
$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. de seid that the car industry will eventuslly suffer fren
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 what ratio would be
participation by private industry and gover in
Mr. Reutner replied th re he thought the minimum ravio 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
+
u
fr om the slums to go back int
kai
@ and take cere oF
to liv
q
a
D
Pe
rl
ei
ad
=
or]
ha
ao
xs
4>
La
in)
a
mh 28
i §
ot
i =]
aw
ow
Ad
qq GO
a)
ae
wet O
et)
sg 3
Oo 2
MS bO
wo Tt
AD eed
an
e-{ oe
o
Po
©
<
43 et
BE
‘a oD
a ey
ta Laood
iH
‘a <t
© 4
aA Oo
a
2 8
A spt
4
0 vet
42 U3
wo oO
& Py
O
aw
ca.
an Ameri
“a
ure
3 or
i
il
ey of curing
ii
rganuized to
3 oF
BOVErnment oO
&
a
off
Site
L010
Senator &
ia
‘ a vi
i a
45 a
a2 a sda
«a et 4 14 13 3
wot og i) pa ee
mn 4 g Oo ac
2 OM - oO :
moerl t4 o ny
Oop © . a qi Ww
i a a £4 ao 4 0
ow ny 4) a 204 06
hi Mi bs 3 A "2 erm ed ed
Gq bd 4 wy qd 43 ot qo a ot
em FF aed a a) . ono o
GO W rd w f4 boo Gg 3
a bs Woh Sa 4
to o oD Om fh Oec
um a 4 444 cs Q Aa
Coed q) 0 0 oOo @
PoE Ww ty o0.0q 2 3 0
O- <i oct 93 a
D> -l Pp w a = og 42
Geis ust i qj. Ago Q
sto ov e} ood Oh O mM Ay
aa: © OQ Oert ed
q 5 “<2 G4 «3
wd a) be co od og m9
wd 2 a pod gs Od
al yo te 4 Y o£ @ ro
a oO 4 s4 46% O 8 & 4
q) uD 0. o Yeisen Ss
Pa {> a OR 44 oo o *
ao ol @ Y ng > OR ea
2 8 u 0 aed 0) 02 EF 44 43
ea Pp oO a Mot oo Oo aed
oO @ a) = yo. a Q 42 oO
On a wa by tr a 3
a a fu me Edict ao Oo v
a au a a2 OFF O a
ao Ee a vo fa oma) ~
ea ke ED »~ fa asf Py S S
QO £3 oY i »m Oo Teed
A, Oo Gea i O Hed ao Go
« to} £ ° 4D Moo sa a a OC
a wiy4o qt Oo is O YU 43 wa a cf
GO ef] a ma ie) aoao 6 9 ft a o
aA ict CF ee gor woo a9 feed hy Oo acl
mes ao pd Sadoasd wa at adadas «a
a 5d a _ @ as "ta th eh ort
FI O04 “4 po s 4 73420 8 a
cai ss u ao uomd uw gO a oS 53 6 y
hifeet ee UG On @& 9 O @ 9° aoa hy pt H
OTD 2 4 tt Ga a&agd eu o OG rd i)
GPO ea Be » 2 ooo oO ct
ao wv =f oo ots wo ae) ire ood & tri
Hf Oled 9G gp goddaa @ Pi” By
Site Hat sd og ef > y go” by
ao 2 4 wQ wt oO “y Ved SH Oo
Ga te bs wd on pwn o dda ©
Oo ayer ci feo] Cy Pat Gos a . PPO & w
aye oo wv ray he Gp oo a ey i oo mou @ ri
a “a he oo Op oe oo = Vet ow
Bop 42 ho iho OWN OY Ei @ fy r-t O wo oH
SF ay teh wa w-o ovr ude 2 Ps Oago d ta a
La ca
op a)
oa EA : : : . . a
4H, {PF @& 2 0 oS w G
Py ee aq 4 fg
mlm O 47
Q Sw wo
AO ed .
7h - Ss . =r
an,
a0
nt
ake
fe
to
cv
1
i
Bnousi
fea
=
nm
aa
e
ao
not
fever,
L
wo
wan
coe
he
ri,
G
a
Wa
e-
ros
w
tl
od
sy (U}
p>
op
a
oe
me
a
43
£3
a) «a
eg
42
4 a
Mo
gob
—m ‘ei
g
a7 @
a
49 4c
o
Oy $4
“3 0
oO 2
be
Syed
w 4.
Gt
ti
4d qa
a6
"3 ed
A
M6
Pr
2
ca a
3)
s
i *
a
a Db
yk
=D
o
“7 a
wa i
ae)
Qo @
a oes
i =
ort wade by
nt
d, Sas
a ae aa weet
MSYuLCLVecing
ere
Att
Oris
Fi
a
fovember
in
laygrounds.
Pi
©
9
wu;
was
avor of
Oo
fe
eay wi
nm
Senator Ke
ty De
Tema page 2 gmt
rayne ¥
2d A
c
o
i
Lm
FS
&
ay
eucnier
Tt.
ms
fos
MQ.
. = facu.
i oe it aus
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 be 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 6 welfare state.
Congressman James Scheuer (D - N.Y.) who was eee at the hearing
asked Mr. Reuther how third sla isto welfare families and predict
drop-outs can be avoided. Mr. Reuther sai that the recomex
made by the President's n Augomation should be
He said that welfare progrems often emphasize the wrong things and
incentives, such as earning outside money. He thinks that a recipi
be allowed to do this without loosing his welfare payment so that
person will aspire to living on a higher plane.
ae
nag mi ssicn
Mr. Reuther said that enother 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 a
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 from 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)
Comments