CONGRESSIONAL RECORD - HOUSE August 18

entitled "An act to provide retirement,

clerical assistants, and free mailing

privileges to former Presidents of the

United States, and for other purposes."

The message also announced that the

Senate agrees to the report of the com- mittee of conference on the disagreeing

votes of the two Houses on the amendment of the House to the bill (S. 2888)

entitled "An act to provide for registration, reporting, and disclosure of em- ployee welfare and pension benefit

plans."

The message further announced that

the Senate requests the House to return

to the Senate the bill (S. 4071) entitled

"An act to provide more effective price,

production adjustment, and marketing

programs for various agricultural commodities," asking a conference with the

House thereon, and appointing conferees.

THOMSON CONTRACTING CO.,

INC.-VETO MESSAGE FROM THE

-PRESIDENT OF THE UNITED

STATES (H. DOC. NO. 438)

The SPEAKER laid before the House

the following veto message from the

President of the United States:

To The House of Representatives:

I return herewith, without my approval, H. R. 5904, "For the relief of

Thomson Contracting Co., Inc."

The bill directs payment to the Thomson Contracting Co. of $48,966.36, a sum

computed and recommended by the Judiciary Committees as the amount rea- sonably due this company for losses incurred in the performance of a contract

with the Department of the Navy for

certain construction work in the British

West Indies.

The contract referred to was a fixedprice agreement, awarded after competitive bidding, and called for payment for

the work in the amount of $143,000.

The record establishes that the Thomson Contracting Co., in this undertaking, suffered a succession of maritime

accidents which occasioned losses and

expenditures considerably beyond the

price the Government was committed to

pay. In each instance, the Department

of the Navy accommodatingly extended

the time for performance of the contract on the ground that the delay was unavoidable and without the contractor's

fault or negligence.

It is unfortunate that this party to a Government contract lost money in fulfilling its part of the bargain. I can find, however, no sound justification for

accepting the principle of this bill that

the United States Government underwrite losses incurred by those who

undertake to carry out contractual obligations with it. Every negotiated or fixed-price contract represents a risk

voluntarily assumed, presumably for the

purpose of profit. That is the rule traditionally associated with our freeenterprise economy. It seems to me that

to depart from it would tend inevitably

to bad practices and destruction of the

advantages of competitive bidding. The mere fact that losses occurred is not a sufficient cause or support for a measure

to restore the contractor at the expense

of the Government. Had this contract

been with a private party and the situation been as here, the Thomson Contracting Co. would have had no recourse and would have been obliged to accept

the loss as part of the risks of the busi- ness in which it was engaged. I do not

believe it reasonable to expect the Federal Government to do more.

DWIGHT D. EISENHOWER.

THE WHITE Houss, August 18, 1958.

The SPEAKER. The objections of the

President will be spread at large upon

the Journal, and, without objection, the

message will be referred to the Committee on the Judiciary and ordered to

be printed.

There was no objection.

HOUSING BILL OF 1958

Mr. RAINS. Mr. Speaker, I move to

suspend the rules and pass the bill (S.

4035) to extend and amend laws relating

to the provision and improvement of

housing and the renewal of urban com- munities, and for other purposes, as amended.

CALL OF THE HOUSE

Mr. BOW. Mr. Speaker, I make the

point of order that a quorum is not

present.

The SPEAKER. Evidently a quorum is not present.

Mr. McCORMACK. Mr. Speaker, I

move a call of the House.

A call of the House was ordered.

The clerk called the roll, and the following Members failed to answer to their

names:

Baumbart

Blitch

Boykin

Brooks, La.

Burdick

Colmer

Dellay

Dies

Doyte

Engle

Friedel

Gordon

Hale

Hfbert

[Roll No. 1731

Hillings

James

Jenkins

Jones, Mo.

Kearney

Kilburn

Landrum

Latham

LeCompte

MeIntire

Martin

Mason

Montoya

Moore

Powell

Preston

Prouty

Radwan

Robeson, Va.

Shuford

Siler

Spence

Staggers

Teague, Tex.

Vanik

Williams, N. Y.

Winstead

The SPEAKER. On this rollcall 386

Members have answered to their names,

a quorum.

By unanimous consent, further proceedings under the call were dispensed

with.

HOUSING BILL OF 1958

The SPEAKER. The gentleman from

Alabama [Mr. RAINS] moves to suspend

the rules and pass the bill S. 4035, as

amended.

The Clerk read as follows:

Be it enacted, etc., That this act may be

cited as the "Housing Act of 1958."

TITLE I. PEA INSURANCE PROGRAMS

SEC. 101. (a) Section 8 (g) of the National

Housing Act is amended by striking out

"and (h) of section 204" and inserting in

lieu thereof "(h), (J), and (k) of section

204."

(b) Sections 213 (e), 220 (f) (1), 221 (g)

(1), 222 (e), and 809 (e) of such act are amended respectively by striking out "and

(j) of section 204" and inserting in lieu

thereof "(J), and (k) of section 204."

SEC. 102. (a) (1) Section 203 (b) (2) of

the National Housing Act Is amended by

striking out all that precedes the third semicolon and inserting in lieu thereof the following:

"(2) Involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the

Commissioner shall approve) in an amount not to exceed $27,500 in the case of property upon which there is located a dwelling

designed principally (whether or not it may

be intended to be rented temporarily for

school purposes) for a 1- or 2-family residence; or $35,000 in the case of a 3- or 4-

family residence."

(2) Section 203 (b) (2) of such act is

further amended-

(A) by striking out "85 percent" and inserting in lieu thereof "90 percent";

(B) by striking out "$16,000" each place it

appears and inserting in lieu thereof "$18,-

000"; and

(C) by striking out "70 percent" and inserting in lieu thereof "75 percent."

(b) Section 203 (b) (3) of such act is

amended by striking out "30 years" and inserting in lieu thereof "35 years."

(c) Section 203 (b) (8) of such act is

amended by striking out the period at the

end thereof and inserting in lieu thereof a colon and the following "Provided, That such

85 percent limitation shall not be applicable

if the mortgagor and mortgagee assume re- sponsibility in a manner satisfactory to the

Commissioner for the reduction of the mort- gage by an amount not less than 15 percent

of the outstanding principal amount thereof

in the event the mortgaged property is not,

prior to the due date of the 18th amortization payment of the mortgage, sold to a purchaser acceptable to the Commissioner

who is the occupant of the property and

who assumes and agrees to pay the mort- gage indebtedness."

(d) Section 203 (c) of such act is amended

by striking out all that precedes the first

colon and inserting in lieu thereof the following:

"(c) The Commissioner is authorized to fix a premium charge for the insurance of

mortgages under this title but in the case of

any mortgage such charge shall be not less

than an amount equivalent to one-fourth of

1 percent per annum nor more than an amount equivalent to 1 percent per annum

of the amount of the principal obligation of

the mortgage outstanding at any time, with- out taking into account delinquent pay- ments or prepayments; except that the Commissioner may, in accordance with regulations prescribed by him, fix and compute the amount of such charge and collect the full amount thereof at the time of closing, including such charge as one of the closing

costs, and such charge may be added to the

principal obligation of the mortgage not- withstanding any limitation upon the maxi- mum amount of such mortgage prescribed

under subsection (b) (2)."

SEC. 103. Section 203 (1) of the National

Housing Act is amended (1) by striking out "$8,000", and inserting in lieu thereof

"$9,000," and (2) by striking out ", and

which is approved for mortgage insurance

prior to the beginning of construction" and

"the construction of."

SEC. 104. Section 207 of the National Housing Act is amended-

(1) by striking out "90 percent" each place

it appears in paragraph (2) of subsection

(c) and inserting in lieu thereof "95 percent"; and

(2) by striking out in paragraph (3) of

subsection (c)-

(1) "$2,250" in both places where it appears therein and inserting in lieu thereof

"$2,500";

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