The Washington herald., 1922-06-10
Chairman's Report Is
Rejected, II to 5, in
Heated Debate.
CHARGES ATTEMPT
TO 'WHITEWASH"
Mrs. Helmick Attacks
Combination of Build
ers and Financiers.

able nature exist in Washington
according to general report
framed by Mrs. Eli Helmick. chair
man of the Commissioners Housing
Committee. which was defeated by
| vote of IL to yesterday, when
submitted to the committee.
The report. which is termed by
its supporters a truthful expose OF
the conditions which have resulted
in the high cost of homes here, will
be revised by steering committee,
consisting of the chairmen of the
seven subcommittee that have
been conducting the various phases
of the situation.
After stating that the conditions
here were unfair" the report
urges Congressional investigation
on the grounds that the committed
In its unofficial capacity had been
unable to ascertain certain infor-
nation from some OF the interests
concerned in the building of homes.
Banker Leads Opposition.
Mrs. Helmick intimated that et-
forts on the part or the opposition
to 'whitewash" the interests con-
nected with the building of homes
and the renting of homes in the
District will be contrary to the
facts that the investigation had
brought to light. 1t is expected that
should the report be materially
'whitewashed." she will submit to
the District Commissioners a per-
sonal report as the appointed chair
man Of the committee, and substan-
tiated by the mass of evidence that
the committee has gathered.
The opposition was led by Julius
Peyser. banker. He received sup
port In his efforts to prevent the
adoption OF the report from other
members of the committee having
business connections with the build
ing industry. Z
Vote on Report. ..
The vote to determine whether
the report should be referred back
to the steering committee was as
follows:
Ayes-E. C. Graham. Frank J..
Hughes, c. Clinton James, Mrs
Adolph Kahn. Thomas w. Marshall
Mrs. j. P. s. Neigh. Julius 1. Pey-
ser, Samuel ]. Prescott. r. z. Walk
er, Walter S. Ufford and Frank Up
man. "
Noes-Charles A. Baker, William
Deane Ham, John IhIder. John H.
Paynter and Rev. J. Milton Wal
dron.
Not voting-Dr. John NJ. Cries.
Briefly summarized the report
brought out the following conclu-
sions and recommendations:
/. Needed and suitable housing ia
cilities Glow priced houses of sub
stantiai construction) are not avail
able In the District for. large part
OF the population. Needed and suit
able housing facilities cannot be
made available under the present
practices Of financing local build
ing operations. Builders and finan-
ciers are apparently so combined as
to restrain the building of low
priced houses and the only remedy
lies in the enactment OF remedial
legislation.
Problem of Second Mortgage,
2. The main reason no homes are
being built for small home buyers
and low rental prices is found in
the method of financing construc-
tion. A number of financing corpor-
ations and larger number of
individuals are reaping an "uncon-
scionable profit through the dis
Counting of second mortgages"
3. The interests engaged in the
construction and sale of houses are
found to interlock more or less
with interests engaged in financing
same. These interests refused TO
assist in the procurement of data
explanatory of financing methods.
Much information obtained, how
ever. indicated that charges for
money loaned On homes were ex-
tortionate. The interests engaged
In financing and purchase of homes
advertise to investors such large
profits in second mortgages as to
conclusively establish that their
charges are net within the laws of
legitimate profit.
Doubt Shortage Of Workers,
4. 1t cannot positively be stated
that there is a shortage in the local
supply of workers in the building
trades, although such shortage is
alleged by operators. Prices paid
these workers are close to the
highest in the country and any pos
sible shortage might well be at
tributed to inadequate housing IA
cilities.
5.-There is an acreage of vacant
land in the District ample not only
enough for present needs but for
the needs OF future rapid increase
in population and most of this land
is convenient to transportation
lines. Many tracts are deliberately
held for higher price than they
are worth. There Is enough vacant
land within five miles of the Treas
ury which, IL II could be used for
moderate priced homes. would re-
lieve the present housing shortage.
--.... Facts Are Hidden.
6. About one-third nf the cost of
homes is for building materials
There is no prospect OF a national
shortage in building materials. II
could not be determined that bona
fide purchasers of homes were re-
ceiving the benefit from the recent
cuts in the costs of building INA
terials. Opposition was encoHn-
tered In developing the facts In
regard to costs of materials.
4. There is at present great ac-
tivity In building construction. but
1t Is not addressed to the housing
of the great mass of the Districts
population which lives on moderate
: Continued ON PAGE Nine