Note- Archival copy of original handwritten file folder title. P it

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If tidy a^j -h-uc£*f ^ A ~£<4Si^ *J £<**-*- f)f l-s*££ t^rrc*. 9/^teCy /£U4 {ti^t OJ tTi, EXHIBITION GALLERY

DEPARTMENT:

TYPE OF MATERIAL:

METHOD OF DISPLAY:

LIGHTING OF GALLERY

Type:

Source:

IDEAL DIMENSIONS OF GALLERY

Length: Width: Height:

Square Footage: ' Usable running wall footage:

FROM WHAT DISTANCE SHOULD OBJECTS BE VIEWED?

WHAT PERCENTAGE RELATION DOES THE SPACE ASKED FOR ABOVE BEAR TO THE EXHIBITION SPACE OCCUPIED BY THIS MATERIAL ON DEC. 1, 1941?

ADDITIONAL COMMENTS TO GUIDE ARCHITECTS (continue overleaf if necessary):

Sheet No. For related Reserve Collection see sheet no. RESERVE COLLECTION

DEPARTMENT:

TYPE OF MATERIAL:

METHOD OF STORAGE

Glass enclosed or open shelving: (indicate which)

Running footage: Depth of shelves:

Average vertical distance between shelves:

Cupboard or drawer space: (indicate which)

Cubic footage:

Screen space:

Square footage:

Other methods of storage: (explain)

LIGHTING

Type: Source:

WHAT PERCENTAGE OF THIS MATERIAL WAS ON EXHIBITION ON DEC. 1, 1941?

WHAT PERCENTAGE OF SPACE ASKED FOR HERE REPRESENTS (a) STORAGE SPACE OCCUPIED BY THIS MATERIAL DEC. 1, 1941: (b) ALLOWANCE FOR EXPANSION:

ADDITIONAL COMMENTS TO GUIDE ARCHITECTS (continue overleaf if necessary):

Sheet No. For related Exhibition Gallery see sheet no. Robert B. O'Connor yticnitect 101 Park Avenue New York

Re: The Metropolitan Museum of -nrt February 10, 194-3 .advance Planning

, Francis H. Taylor, Director The Metropolitan Museum of Art

Dear Francis:

I have learned, from Mr. James Dawson of the Perk Department this morning that he is in receipt of a letter from Mr. Osborn confirming the modifications in the program of the Metropolitan Museum as a result of the Whitney arrangements. Mr. Dawson advises me that the Park Department is now in a position to com­ plete the contract form for architectural services on vance planning of the Museum changes on the reduced basis of a $3*000,000 anticipated expenditure.

I understand from Mr. Dawson thst my engagement, with Aymar Embury II Associated, on the advance planning connected with the Whitney Wing will presumably emanate directly from the Metropolitan Museum. This will be en­ tirely satisfactory to me if it is likewise agreeable to the Museum. While Mr. Embury is away, I think it is safe to assume that it will also be agreeable to him. Inasmuch as the planning is in reality one coor­ dinated problem from the point of view of the Museum II as from the architectural study, there will pre­ sumably be some adjustment between the Museum and the City so that the reduction in the cost of the work in­ cluded in the City contract for architectural services will be reflected in a smaller contribution by you to the cost of these studies than previously arranged, kt the same time there will be the need for proper appropri­ ation of Museum funds to cover the portion of the work to be undertaken in connection with the so-called Whitney

I shall be very glad to work with you to straighten out the necessary adjustments so as to clarify the sit­ uation, and I understand froi. Dawson that he is ready likewise to assist from the Park Department's e: .

Meanwhile I would be glad to have your advice as to my next procedure in regard to the actual planning work.

Sincerely your;

jC/q 0 * Con. Hew

Dear ii ,

^

-

o r<

. THE METROPOLITAN MUSEUM OF ART

NEW YORK

OFFICE OF THE SECRETARY

EXTRACT from the minutes of the special meeting of tbe EXECUTIVE

COMCmSZ HELD September 30, 19*2

RESOLVED that the President be authorized to ask tbe Coanlsslaaer of the Department of Parks to transmit the Museum* s application to the City Planning Ccaaaisslon for approval of the program, at an estimated cost of approximately four million dollars, for the architectural rearrangement of the Museum buildings as set forth In the tentative studies prepared by the staff of the Museum vith the advice of Mr. Robert B. O'Connor as con­ sulting architect; and further

RESOLVED that if such program should be approved by the City and adopted in the Capital Budget of the City for the years 19*3 and l^hh the Museum deposit with the Comptroller of the City of Rev Tork $1*0,000. In each of said years, provided the City shall appropriate a like amount, said suns to be used to defray the cost of preparing preliminary plans, working drawings and specifications which when approved by the Museum and the City shall form the basis of said program for the architectural rearrangement of the Museum buildings, all said preliminary plans, work­ ing drawings and specifications to be prepared In collaboration with the Museum authorities by Robert B. O'Connor, architect, in association with Ayoar Embury II, or such other persons as may from time to time be mutually agreed upon by the Museum and the City.

True oopy of record

Attest:

(signed) Horace H. 7. Jayne Acting Secretary.

A.U1-S-3S 1 \ March 16, 1942,

To the Board of Trustees:

The Director wishes to inform the Board that they will receive before the first of April two written reports which will be of great importance in determining current policies of the Museum. The first report will deal with changes of title and promotions in the Curatorial, Educational and Extension staffs for which financial provision has already been approved in the 1942 Budget. The second report will be on the necessity for an archi­ tectural survey to be made by a Committee of Architects in collaboration with tbe Museum staff on a master plan for the Museum. This proposal will be made in conjunction with requests made by the Commissioner of Parks under instructions from Mayor LaGuardia for plans for post-war construction in the museums and public institutions of the City.

The Director urgently requests the Board of Trustees to give careful thought to the content of these reports which they will receive in ample time for reflection before the next meeting of the Board in April.

Francis 3TKHenry) Taylor, Director.

k tlCrc. XL ROOM '-5600 30 ROCKEFELLER PLAZA COPY. NEW YORK

17, 1942.

Osborn, Esq•, 20 Ixohango Place, lew York, N. 'i.

Dear Mr* Osborni

In order that your flias amy he complete, Z

aa enclosing a copy of the letter froa Mr. Moses of March 14th,

which X showed you yesterday, aad to which X aa making ao further

reply.

X aa also uniting for your iaformatioa, sad X

hope your approval, a copy of a latter which I have written

Mr. soses to-day oa tho subject of tha Blumenthal house aad a

oopy of a letter which X have written Mr. Elder.

Sincerely yours, WESS

Copiea to Mr. Josephs, Mr. Harrisea. ROOM 56O0 30 ROCKEFELLER PLAZA COPY. NEW YORK

17, 19*2.

Central Park, »• X,

X received last note of ths 10th with ths attached copies of your with Je* Lilly. I with *ueh inters* mt the latt«r*s recent whieb X em returning th, in oa»* you hew* *mj use for it*

X had ea opportunity to a*** a talk with Ji* Be****

i«s decision to held th* il—steal ***** at Least fsr another year, until it ea* he better dotsnHs** what should be d«*e with it,Is satlsfaetory to the City, *md that a* a natter ef fast a* lawodlaW sal* of tbe pn»p*rtj at aay uric* which could new bs obtained for it ai^ht be coaewhet enbarressing to the City.

Th* only question «hi«h therefore aeeas to reus is i* th* aatter of the tax** to h* paid In th* aeaatin*. Xt s*cni to m* clear that the Museum would net be Justified im asking far if the prtpsrV i» *»t to hs fully used for Iftifswi ia th* interia. 0* the ether hand, I believe it 1* *r*b»*1/ entitled to some relief from th* present a****8**at, with respeet to which a formal protest *a* filed last weak* X

'S'Slr^Peej *PWrA*P*e^*>*, 4S*W *J**Ji*l*W •*/ ••> **^*> W***"** *•***]*** *^*W*erS**rAA **•** ^r/**Jr*^** >rris»e***t een he worked out for hewing com* art objects plseed im th* house and having it open to the public for • few Curia* the is n when a* beating will he required. Xt seem that under such am arrangement any reduction in *•*»» meat could he regardec" a* s special situation whicl City's steadp*i*t, weald met necessarily affeet ether assesaaents in the aeichborbood. Mr. Elder and Mr* Harrison are accordingly going to get ia touch with Mr, Daws** aad see if they - 2 -

with hia for a with ths Tax Department at aatisfaetaay

As Mr* uaaMM l^waw Jm wa Vrwae\ ILmmmmf ynn ^•fwnaV^paV au^s^PF

Copies to Mr. Osborn, Mr. Elder, Mr. Dawson, Mr. Harrison. 1010 FIFTH AVENU E

10 10

Northeast corner of 82nd Street

These splendid apart­ ments with spacious, sunny rooms are especi­ ally adapted for enter­ taining and comfortable family life.

7-9-1 1-12 Rooms

Large galleries, wood burning fireplaces,cedar closets, individual laun­ dries, and storerooms.

Fred F. French

62nd STREET Management Co., Inc. TYPICAL FLOOR PLAN 551 FIFTH AVENUE VAnderbilt 3-6320 OTHER FRED F. FRENCH APARTMENTS

15 PARK AVENUE 3. 4 R ooms 16 PARK AVENUE 3, 4 R ooms 17 PARK AVENUE 1. 2, 3 Rooms 55 PARK AVENUE 4 Rooms 1140 FIFTH AVENUE 4, 5, 6. 7 Rooms 1160 FIFTH AVENUE I, 2, 3. 4, 5, 6, 7 Rooms 34 EAST 51st STREET 2, 3 Rooms 59 EAST 54th STREET 4, 5 Rooms 125 EAST 63rd STREET 4, 6 Rooms 22 WEST 77th STREET I, 2, 3, 4 Rooms

30 Rockefeller Plaza New York

K oom o 600

April 6, 1942,

L. S. Harrison, Esq., Metropolitan Museum of Art, Fifth Avenue at 82nd Street, New York, N. Y.

Dear Mr. Harrison:

Thank you for your letter of the 3rd in regard to the property at 1010 Fifth Avenue, which you mentioned casually when we were together the other day.

I have read your memorandum to Mr. Taylor with much interest. As I see it, there are two entirely distinct questions as to this building from the Museum's standpoint. The first is the desirability of the existing mortgage, or of the property itself if and after the present mortgage is foreclosed this autumn, as an investment. It just does not seem to me that there would be any justification whatever of such an invest­ ment on the Museum's part at any price, in view of the amount of mortgages and real estate which we already have in our portfolio. This is, of course, just my personal view.

The second question involves the desirability of acquiring the building in question for operating purposes. With­ out further consideration, I would have no view whatever as to this one way or the other, as I have had no occasion to familiarize myself in any way with your operating problems. It seems to me clear, however, that if the building were to be considered from this angle, such consideration should be postponed until this autumn when it can be determined what the result will be of the expiration of so many of the existing leases. It seems to me almost certain that the attempted acquisition of the existing mortgage would not only be more expensive at this time but, as you point out in your memorandum, would result in a situation where it might be extremely embarrassing, if not impossible, to secure the actual use of the property for Museum purposes. On the other hand, it would seem to me from the facts set forth in your memorandum, and from the present outlook as to apartment - 2 -

leases in the immediate future, as if the Greenwich Savings Bank might well find itself in a position next autumn where it would have to take title to the property and look for a new purchaser at a substantial loss.

Sincerely/ yours, Lu. l%'' ^ BUSINESS MJMINISWOB iQECEiVE " Im 1942 THE METROPOLITAN MUSEUM OF ART INTERDEPARTMENTAL MEMORANDUM

From Mr. Harrison To Mr. Taylor

April 2nd, 1942.

Re: 1010 Fifth Avenue.

The following summarizes a report now in my hands.

1. AGE The building is about 17 years old.

2. COST C *-\>^

3. SPACE 15 stories, 9* -8" ceiling heights, 5©9 rooms. Plot 102' x 160' (about 200,000 square feet of useable space).

A- OCCUPATION Building now about 90% occupied. Five leases expire Sep­ tember 30th, 1944. Seventeen leases expire September 30th, 1943. Thirty-one leases expire September 30th, 1942.

5. INDEBTEDNESS First mortgage held by Greenwich Savings Bank is now at principal sum of $1,407,500 at 5% interest with a temporary modification expiring October 1st, 1942 whereby 3% interest is paid and any excess earnings being applied to amortiza­ tion. After October 1st, 1942, if the present law is not amended, the owners must make amortization payments of 1% quarterly. In addition to the first mortgage the owners owe $115,000 to the Fred F. French Investing Co., Inc. on a 6% demand note. After the above funded debt is the cap­ ital liability of the owner corporation consisting of 6% cumulative preferred stock, 17,500 shares, which are now in arrears as to dividends in the amount of $48.38 per share as of February 1st, 1942. Also common stock of 35,000 shares, no par value. THE METROPOLITAN MUSEUM OF ART INTERDEPARTMENTAL MEMORANDUM

From Mr. Harrison To Mr. Taylor ~2~ April 2nd, 1942, Re: 1010 Fifth Avenue,

6. EARNINGS The earnings record of this property shows continuous defi­ cits of around $35,000 for the past eight (8) years after depreciation. Before depreciation, however, the annual deficit for the last three years has been around $4,000. Due to the temporary reduction to 3% of mortgage interest payments, about $21,000 of income was used in 1941 to de­ crease the mortgage principle so that 1941 could be said to be a fairly satisfactory year under the circumstances.

7. ASSESSMENTS & TAXES The assessed valuation is $1,675,000 as of 1941-42. Taxes are not in arrears.

have discussed this proposition carefully with Mr. H. Clayton Smith. Since the owner corporation has been losing money on the build­ ing and there is a strong likelihood of reduced occupancy after the 1st of October, there is some ground for belief that the financial condition of this property will worsen as time passes. No petition has been filed for any reorganization but two stockholders' committees have been formed to serve the interests of the equity holders in this and several other Fred F. French building enterprises, all of which are reported to re­ flect the general distressed condition of the market and which are now further involved in the settlement of the estate of Fred F. French, de­ ceased.

The purpose of these committees is to act when and if necessary in behalf of these owners of preferred and common stocks in the subject, owner corporation and others. This means that the primary investors in the equity of this property are conscious of their jeopardy and are pre­ pared to fight should some outsider attempt to take advantage of any dis­ tress arising.

The Greenwich Savings Bank, which holds the first mortgage on this property, has probably written down the value of the mortgage on its books. How much, of course, can not be determined.

It seems to me that the only possible interest the Museum should

AD I THE METROPOLITAN MUSEUM OF ART INTERDEPARTMENTAL MEMORANDUM

From Mr. Harrison To Mr. Taylor -3- April 2nd, 1942.

Re: 1010 Fifth Avenue.

have in this property would be as an investment. You should bear in mind that we are now endeavoring to get rid of several of our present mortgages, some of which I think are in better condition than this one from an investment standpoint. It is therefore quite doubtful whether or not acquiring this mortgage by purchase from the holding bank at as much as a 50% discount would be justified by the circumstances.

It is obvious too, that a new deal with the owner corporation covering the terms of the existing mortgage is quite likely necessary if the property is not to be foreclosed. The Museum itself, in view of the above-described position of the owner interests cannot, in good ethics, acquire this mortgage for the purpose of foreclosing for the simple reason it would be, as an outsider, injecting itself into a supercharged atmosphere. Such action, precipitated by us without con­ sideration for owner interests, would be stormy to say the least be­ cause we would be engaging in an enterprise to destroy interest vested in good faith. This is something which institutions such as ours just do not become part of. If we did acquire the mortgage, we would have to give every opportunity to the owner corporation to agree to a basis of interest and amortization consistent with the Museum's standards of safe investment and the property's earning capacity at the present time and in the foreseeable future.

The fact that this property may have some residual use as a building for Museum purposes in the abstract event that the property shall have lost its capacity to support its mortgage obligations is per­ haps good reason for this particular purchase but it has only a remote bearing on the matter under the circumstances. If we did purchase it as an investment, the procedure indicated would be to negotiate an equitable, substitute mortgage obligation with the owners which would mean that the Museum might never have this property available for its use.

Mr. Smith and I do not believe at all that the bank would think of accepting any real estate and particularly the Tribune Building, or for that matter, all of our New York, Museum Estates property, in pay­ ment for the existing mortgage on 1010 Fifth Avenue even if embellished with cash.

It seems, of course, from an administration standpoint, to be an

ADl THE METROPOLITAN MUSEUM OF ART INTERDEPARTMENTAL MEMORANDUM

From Mr. Harrison To Mr. Taylor -4- April 2nd, 1942.

Re: 1010 Fifth Avenue.

ideal acquisition and should it ever be acquired by foreclosure of a mortgage acquired at the above-indicated price it would represent a very low-cost creation of needed Museum facilities which the City may other­ wise have to supply in construction costs of four or five times the val­ ue of the money invested. However, such foreclosure could not grace­ fully or peaceably be brought about by any overt action on the part of the Museum. Another difficulty is that procedure of this kind cannot be timed to our reconstruction program to the extent that we will be able to depend on the use of this building when these facilities are needed. However, there is time to watch and perhaps take advantage of normal developments should the bank choose to foreclose before the end of the war when it 'is proposed to start reconstruction. As the matter stands, we should develop our plans as if the use of this building were a very remote alternative.

The above discussion is, of course, academic if the Trustees do not agree to the principle of using the Museum's funds for building fa­ cilities. That seems to me to be the first thing to decide.

orison, LSH:G ^^Susiness Administrator. April 3rd, 1942.

Vanderbilt *ebb, Esquire, 30 Rockefeller Plaza, Row lork, H. Y.

Dear Mr. ftebb:

Mr. Taylor is Interested in the possibility of acquiring tbe apsrtaent building directly across the street as an internal service and administration bulletin - for the Museum. It is ideal for the pur­ pose and would, for aany reasons, be of greet advantage to us if it could be realised.

Mr. Taylor has asked as to let you see a copy of a aenorandu* I have written to hia. I would appreciate getting your reactions as to whether the Museua should interest itself in this property with ths above use of tbe property in mind, fthat I have said aay not be tue right answer. Mr. Taylor and I do not want to advance anything to ths Trustees unless it is feasible.

Einc^ly^ourSj

M s. Uarriaon, LSHiG Business Administrator. Copy to Mr. Taylor, V

THE CITY OF NEW YORK DEPARTMENT OF PARKS

March 14, 1942.

Mr. Vanderbilt Webb, 30 Rockefeller Plaza, New York City.

Dear Van:

I have your letter of March 13th with the enclosure from Mr. Osborn with reference to future plans for the Metropolitan.

Apparently you do not feel that the Museum is as yet ready to discuss these future plans except in a very general way, and that when the time comes for actual detailed studies Mr. Embury, as Consulting Architect of the department will be Consulted.

Since it is necessary for the City to complete its schedules for post war design in connection with the revision of the present Capital Budget, we shall have to assume that any agreement on this subject with the Museum must wait for the con­ sideration of the 1943 Capital Budget.

Sincerely,

ROBERT MOSES

Commissioner,

Copies to Mr. Osborn, Mr. Josephs, Mr. Harrison. COPY.

March 17, 1942. Hon. , The , , New York, N.Y.

Dear Bob: I received last week your note of the 10th with the attached copies of your correspondence with Joe Lilly. I have read with much interest the copy of the latter's recent address, which I am returning herewith, in case you have any further use for it.

I had an opportunity to have a talk with Jim Dawson yesterday afternoon after the Museum meeting. I gather from him that the Museum's decision to hold the Blumenthal house at least for another year, until it can be better determined what should be done with it, is satisfactory to the City, and that as a matter of fact an immediate sale of the property at any price which could now be obtained for it might be somewhat embarrassing to the City.

The only question which therefore seems to remain is the matter of the taxes to be paid in the meantime. It seems to me clear that the Museum would not be justified in asking for exemption if the property is not to be fully used for Museum purposes in the interim. On the other hand, I believe it is probably entitled to some relief from the present assessment, with respect to which a formal protest was filed last week. I understand there may be a possibility of securing fairly substan­ tial relief in this way for the time being, if some practical arrangement can be worked out for having some art objects placed in the house and having it open to the public for a few months during the summer when no heating will be required. It would seem that under such an arrangement any reduction in the assess­ ment could be regarded as a special situation which, from the City'8 standpoint, would not necessarily affect other assessments in the neighborhood. Mr. Elder and Mr. Harrison are accordingly going to get in touch with Mr. Dawson and see if they cannot arrange with him for a conference with the Tax Department at which some satisfactory solution can be worked out along these general lines.

As Mr. Osborn has put it, our only problem now is to determine how much hay the white elephant is to be fed during the next year or so, and how it is to be supplied.

Sincerely yours, VANDERBILT WEBB Oopies to Mr. Osborn, Mr. Elder, Mr. Dawson, Mr. Harrison. Mr. Taylor wishes to read this and speak with Mr. Harrison about it before sending this letter.

I.I THE METROPOLITAN MUSEUM OF ART NEW YORK

OFFICE OF THE DIRECTOR CABLE ADDRESS METMUSART February 2, 1942.

Mr. James A. Dawson, Park Director in Charge of Design, The Arsenal, 64th St. & 5th Ave., New York, N.Y.

Dear Mr. Dawson:

I have withheld acknowledgment of your letter of January 14th

transmitting a copy of Commissioner Moses' report on post-war construction

because I first wanted to get the chance to read it. I think the viewpoint

expressed is vital to every City and State institution, and we are most

certainly going to be guided by this report.

Sincerely yours,

Francis Henry Taylor, Director.

FHT:M

D.I.V. February 2, 1942.

Mr. Janes A. Dawson, Park Director in Charge of Design, The Arsenal, 64th St. & 5th Ave., Mow York, N.Y.

Dear Mr. Dawson:

I have withheld acknowledgment of your letter of January 14th

transmitting a oopy of Commissioner Moses1 report on post-war construction

because I first wanted to get tho chance to read it. I think the viewpoint

expressed is vital to every City and State institution, and we are most

certainly going to be guided by this report.

Sincerely yours,

Francis Henry Taylor, Director.

FHTJM THE METROPOLITAN MUSEUM OF ART INTERDEPARTMENTAL MEMORANDUM

From F. J. Dunn January 21, 1942 To L. S. Harrison

This is the first time I have seen this document. It is very interesting. Would suggest that we keep the Commissioner's suggestion in mind and make ap­ plication in the next Capital Budget for funds for plans, etc., for (1) completion of the Museum's re­ roofing program and (2) the proposed physical reor­ ganization of the Museum building. *

AD 2 GEORGE E. SPARGO THE CITY OF NEW YORK EXECUTIVE OFFICER WILLIAM H. LATHAM DEPARTMENT OF PARKS PARK ENGINEER

ARSENAL JAMES A. DAWSON 64TH STREET AND FIFTH AVENUE SENIOR PARK DIRECTOR CENTRAL PARK NEW YORK CITY JAMES A. SHERRY ROBERT MOSES CHIEF CLERK COMMISSIONER January 14, 1942

RECEIVED

DIRECTOR

Mr. Francis II. Taylor Director The Metropolitan Museum of Art Fifth Avenue and 82nd Street New York City

Dear Mr. Taylor:

Commissioner Moses has asked that the attached copy of

a report on post war construction be forwarded to you.

'Ve suggest that a study for the needs of your Institution

be made with a view of having plans ready when this program is put

in operation. •

Very truly yours,

\MS A. DAfflSOH Park Director In Charge of Design

Attach: STATE.COMMITTEE ON POST WAR EMPLOYMENT January 8, 1942. Remarks of Robert Moses on a Public Works Reservoir I an glad that Governor Lehman took the initiative in ap­ pointing this Committee, and that the Committee appears anxious to ac­ complish definite objectives. There has been altogether too much vague and lofty talk on this subject. Post war as well as cyclical employ­ ment maladjustments are recognized as inevitable. They are preached and planned against, and in the end usually accepted with fatalism. The easy way leads along the sunny path of optimism. Why worry about the future? With the advent of peace, employment will boom because so much has been neglected, so much has to be repaired and such powerful currents of imagination and energy will flow again into productive channels. All this is no doubt true, but it will take time and in the interval tragic things can happen. Failure to prepare for peace is quite as serious as failure to prepare for war. The basic trouble is that no unit of government wants to spend any real money in either prosperous or war times to prepare and salt away detailed plans and specifications for worth vrhile public works. The cities pass the buck to the states and the states to Washington. Washington authorizes agencies ill equipped for the task to prepare the usual inventory of public improvements, T.-7hich is nothing more than an endless list of projects, many of them ill conceived, and almost none of them planned in detail, more or less like the paper ambitions submitted annually by departments of government to public agencies and long range planning bodies. The motto of these agencies is "Throw in everything including the kitchen sink. It can't do any harm. It shows our imaginations are lively. These gestures will ploaso the beneficiaries and, who knows, wo might even get some of it." -2-

There arc other difficulties in the wp.y of preparing a gonuine reservoir of public works, especially in war time. Men's minds aro fastened on the winning of the war- and only very incidentally on the peace which must follow. A great many people, under the pressure o± war hysteria, are almost afraid to be identified with work not closely or directly associated with the actual war effort. We already see innumerable people rushin^ int. activities for which tliey are not fitted, and actually confusing and interfering with war preparations, either because they O) op their minds on the day's work, or because they are looking for s little, spurious excitement. This Is not to say that any one should shirk any task which the government calls upon him to do. One of these tasks, however, is to fight against post­ war unemployment, and those eligible for it should regard their selection as both an honor and an opportunity. "Peace," as the pot "hath her victories, no loss renown'd than war." vernor Lehman is, of course, quite right in emphasizing the fact : post-wp,r unemployment is not merely a matter for government, but also one for industry and business. The job of gover. , in fact, is primarily to absorb those released from the r effort during the period in which industry is shifting its ...justing its plans and its objectives and resuming its independent responsibilities to provide work for the millions who, in a system of free.enterprise, belong in private as distinguished from public employment. This is not the place to discuss the ultimate expansion of government as against private enterprise. Cod help us if this political question is going to be injected into -3- the problem. I do not underestimate the recuperative power of American business, nor the weight of the restraining hand of a government grown great on the red meat of war and reluctant to return to a bland diet of limited authority. Whatever may be our views on this subject, wo can, I believe, agree that government will have all it can do after the war to provide work above the level of leaf raking while private industry is getting back on its feet. Let me repeat here something which I have said often before and which may appear gratuitous in some quarters — that is, that so far, big business has, in my opinion, done little to antici­ pate the post-war problem. A little statesmanship in this quarter will do more to persuade the average citizen that private enterprise is worth continuing, than all the paper arguments and slogans put together. I am happy to knov; that the General Electric Company has detailed a prominent official to give his full time to this problem, and I hope that other corporations will follow this example. If there is as much genius at the head of our big corpora­ tions as is claimed, they could spare a few first-rate men now to plan what may in tho end be their salvation. I admit that the problem of post-war planning by small business is much more diffi­ cult and that the excuses for the lack of such effort are much more persuasive than in the case of big business. The difficulty here is to get many small units together on a program and to determine what will bo the magnet which can do the trick.

Coming back now to the public works reservoir, I am going to speak from novr on in terms of New York State. Let me -4- give you a few figures. The peak load of the CV/A in New York State showed some 292,000 persons on work relief. The TSRA ran up to about 229,000. The WPA at present has about 56,000. These numbers do not include white collar workers, and I do not propose to discuss this group. My honest opinion is that there have always been too many white collar people tied up with work relief, that a largo percentage of all white collar projects were boondoggling by whatever more euphemistic name they may have been called, and that it is quite impossible to prepare in advance and in detail worth while activities for most of this group. Another group not included in these state pump priming figures is the army of men behind relief jobs in mine, mill, plant, and transportation, many of them in other states. The addition of these men in arriving at a local unemployment formula, or their subtraction as pump priming is reduced, simply confuse the issue. The only figures which get us anywhere are those bearing on men on work relief and on other stimulated government projects, the men who would be walking the streets or idling on home relief if they were not provided with honest employment on public works.

" I at this point refer to a personal experience for purposes of illustration? In December of 1935 the Mayor-elect of Now York asked me to attend the organization meeting of the CWA at Washington. I was horrified at what went on there, because it was quite obvious that the CWA was simply an impulse unsupported by sound thought and destined for an early and inglorious end. How could the federal authorities put millions of people to -5- work without plans or organization with the hope that anything would be accomplished? Actually the CWA lasted only for a few weeks. I did not enter the now city administration until the park departments were consolidated toward the end of January, 1954, but I did put some first-rate engineers to work studying what was go­ ing on among some 80,000 CWA people in the parks, and figuring out what to do with them, when I inherited this responsibility. There is no use thrashing old straw. The conditions wo found among these 80,000 people were simply indescribable. Don't forget that we are talking about a payroll of approximately $8,000,000 a month. We quickly prepared some eighteen hundred small projects to keep these men busy until wo could get together a staff competent to prepare specifications for real work. This staff of some three thousand exempt people, including designers, engineers, foremen, general foremen, superintendents, etc., one of the largest forces of the kind ever assembled in a short time, went to work on worth while plans, but it was many weeks after tho CWA had faded into the TSRA before we could establish an orderly procedure approaching contract work. Our design division alone ran up to some 1500 men, including topnotch people who wore out of work or not busy, and it is to this staff and the field supervisors that we owe what was actually accomplished. Again I want to call your attention to the figures. The Park Department of NOT York City in the year 1954 spent for work relief over ^90,000,000. We had about one-third of the work relief forces in the city. Today we are down to about 8000 men. -6-

I have given you only work relief figures. Don't forget that in the last depression the various governments also sponsored, fostered and spent great sums on public works projects, some self- liquidating and some not. While all of my experience and personal convictions lead me to prefer contract work to work relief and to deplore the necessity for any work relief system, I must acknowledge that work relief constitutes the-quickest way of providing jobs for huge numbers of unemployed in a serious depression. Contract work must always aim at the employment of machines rather than at men. Labor saving devices are its keynote. A mixed system of contract and work relief under which the contractor is required to employ a majority of his men from work relief rolls has many advantages. The amount of straight contract work required to employ the number en work relief at prevailing rates of wages would break any government. Contracts must therefore be supplemented by work

relief. If you want to be realistic about all this, you must make up - is that during the next two years we should be planning public works in this state which will provide useful employment for 30C . Tple In the course of another two years following shortly after I end of the war. These are broad assumptions, but they are conservative. No one knows just what the duration of the war will be, nor just how fast industry can re-absorb workers as it shifts from a war time to a peace time basis. Our equations have too many unknown quantities, or to vary the metaphor, It is a situation in which we would rather listen to a minor prophet than -8-

Let us assume that these periods and figures are correct. What do they mean? They mean, at the rate of $100 per man per month, that in each month the bills for wages, eauipment, material and overhead to cover this tremendous work relief and public works program, will come to $50,000,000. It means that In each of two years $560,000,000 will be reouired to foot the bills. It means that at the rate of four per cent for the preparation of detailed plans and specifications $14,400,000 a year must be spent for plans. Don't let any one spoof you about the hundred dollar3 per man per month cost. That's what it amounted to in CWA and TERA periods. It is less now on the WPA, but on regular contract lie works it is more than $200 per man. Putting the average at a hundred dollars therefore is ultra conservative. Where is this design money coming from? It is obvious it some of this plan fund should come from the federal govern- it, some from the state and some from the municipalities. It uld be ideal if we could persuade the federal authorities to offer

pay, let us say sixty per cent of the total, dividing the sainder between states and municipalities. The problem does not, •ever, lend itself to so easy a solution, among other things, because' there are one hundred per cent federal, one hundred per cent state and one hundred per cent municipal projects, which will put men to work, and for which plans and specifications are wholly the responsibility of the unit of government which is going to do the work. Some appropriate division of this responsibility must be determined. At this time there is one thing we can do in a state commission aooointed by the Governor, and that is to figure out -9- what New York State can contribute in the way of detailed plans fcr the post-war reservoir without leaning upon any other agency of government and without overstraining its budget, its resources and its personnel. It happens that there is a great deal that can be done. In the first place, we have available some 060,000,000 fcr state grade crossing eliminations all over New York outside of New York City. $1,500,000 in federal grade elimination funds has also been authorized and funds for design are available out of previous unobligated balances. There is also no limit on design funds for the $60,000,000 of state work, and these should immediately be made available to the railroads for plans for these crossings, I have no lively expectation, however, that anything useful will develop in this field unless a further administrative adjustment is made between the Public Service Commission and the State Department

Public Works, and unless the plans are left to the railroads under the supervision of the State Department of Public Works. The latter dimply does not have enough men available and trained for urpose, and its present forces are needed for highway plans, including highway bridges. The best thing that could happen would be the elimination of the Public Service Com. ission entirely from the railroad grade crossing situation, that is, so far as plans and specifications are concerned. A program has been adopted and only -tate agency can possibly see that It is carried out. There is $60,000,000 of bond issue money available for -ate highways and parkways. Here again there is no limit on -10- design funds. Specifications have not been prepared for more than $10,000,000 of the total, and there is nothing to stop the Public Works Department from proceeding in an orderly way with design of work, a considerable part of which cannot reach actual construction in war times. Similarly, $4,800,000 of federal aid to be matched by e state has been authorized for federal aid highways, and here again design funds are available out of previous unobligated balances. Coming now to public housing, there is nothing to prevent the State Housing Commissioner from proceeding with the design of some $80,000,000 worth of housing construction, using four per cent of this sum in the course of the next two years to prepare detailed plans and specifications. Obviously this means that the local sites must be determined. There is nothing to stand in the way. Personally I would go as far as to vest title in most of the plots leaving the present buildings standing and the tenants in them. There is also semi-public housing to prepare for. The great insurance companies and savings banks with their problem of investing huge reservoirs of capital have talked cooperation, but with a few honorable exceptions, have done nothing about it. They might head off further drastic government control by doing some planning for semi-public, limited dividend housing now. As to state institutions, some $80,000,000 is required to carry out a post-war program. At the rate of a minimum of three per cent, $2,400,000 is required for this kind of design of which, I should think about $1,000,000 should be made available in the -11- first year. Some of this design should be done by regular civil service forces, and some by outside architects. These funds have not been appropriated and would have to be included in the budget. In other words, the Legislature would have to .appropriate $1,000,000 to start this institutional design program. I want to warn you against a well established tendency in government —> an old Spanish custom — namely, the tendency to base construction programs on the number of men commissioners want to keep on their payroll. There is plenty of design for members of the civil service, but certainly planning should rest on government needs and not on the preference of commissioners for doing the work themselves, and their curious distaste for farming out work to competent outside firms. If all the sums mentioned above are added together it will be seen that the total is substantial. There is another thing which I should recommend. I believe that the state should initiate a design program for small public works projects in the municipalities, that is, projects costing not more than $75,000 each. These are invaluable as pump primers and can be started much more quickly than the larger projects which will require more complicated equipment and materials. I would suggest that in each of the next tv.ro years $100,000,000 worth of such projects be designed and that the state contribute fifty per cent of the cost of such design. This would mean two annual appropriations by the state of b2,000,000. The best method of procedure would be to have a state board pass on the -12- projects. One per cent should be allowed for preliminary general plans, half of it contributed by tho state. These preliminary plans should then be reviewed before the remaining money for complete specifications is made available. Let me turn for a moment to Now York City. Here the Capital Outlay Budget provides for the first time a relatively small lump sum, .,^500,000, for specifications for future construction. This sur. can be substantially increased by the use of appropriations for actual construction where the projects provided for have been stopped because of priorities. The Mayor has already agreed that this can be done and it will be taken up shortly in the City Planning Commission. I have two more suggestions to make. First, I ""ould earnestly recommend that Governor Lehman confer with the President wit] 'lew to a speedy determination of the amount of planning mon- ich the federal government Is willing to make available for future state and municipal works. As the matter stands th Is before Congress provide only for federal works* There is, ai I said before, a relatively small sum of WPA money previously .liable for the roster or register of proposed local improve­ ments to be compiled by the WPA and tho National Resources Planning Board. I do not regard this list as of any substantial value. It simply confuses the problem, "hat is needed is a federal fund on a on,. dred percent or matched basis to be administered by the Federal Agency through state boards and municipal boards in the largest cities, on the basis of one per cent for preliminary plans and

X -15- another three per cent for detailed plans for future works to be undertaken at the end of the war. Whatever the President and Congress will agree to do will be that much clear gain. Another matter to be taken up in Washington is that of self-liquidating projects. It would be highly desirable to have the Federal Loan Administrator, Mr. Jesse Jones, authorized to advance federal funds for the design of self-liquidating or largely self- liquidating projects to be started after the war, such advances to be made through the RFC to established authorities or similar agencies authorized to carry on such works. Here again four per cent is required. The RFC has had so much experience with projects of this kind that it will certainly be able to determine which proposals offered to it have a substantial chance of success as business enterprises. Finally, I recommend that this Commission prepare a realistic program representing what the various municipal agencies of the state, including counties, towns, cities, villages and special districts are willing to do toward the preparation of speci­ fications for local projects to begin as soon as the war is over. This must be much more than a roster if it is to be of any value. It will probably develop that legislation will be required to enable the municipal sub-divisions to raise funds for plans as well as construction. In this long range strategy don't overlook the possibility that non-defense and non-war civil construction may to some extent be resumed before long — not on a great scale, but sufficiently tc use up some of the plans we think we are storing away in our ice boxes, bins and root cellars. This possibility is based on the -14- as yet little recognized fact that the abrupt stoppage of civil work by green administrators unused to the exercise of authority, may produce unemployment troubles of a most serious kind in the middle of the war production drive, long before peace is in sight. A very delicate balance must be preserved between civil and war work if civilian morale is to be maintained. At the moment it is unpopular to refer to such axioms, but in the end economic truths do not yield to hysteria. The little man whose livelihood has been taken'away without warning by the arbitrary order of some distant bureaucrat is yet to be heard from. This little man will make sacrifices, but he will demand to know that they are really needed. I offer this program with diffidence. No responsible official can afford to be dogmatic on this subject. I believe that if some such steps are taken now in planning public works, and if similar steps are taken by industry and business, New York State can promise its returning soldiers and its civilians discharged from war production honest work which will support them until the new and better order we pray for, is functioning.