Evening star., 1931-12-04
HOME CONFERENCE
0. k'SHOOvERPLAN
Railroad Rate Changes Urged
for DecentraIizing
Industry.

Blanket approval of the plans of
President Hoover for loosening credits
for home construction. including the
proposed creation of system of mort
gage rediscount banks, and a recon-
mendation for reform of the railroad
rate structure to encourage industrial
decentralization came today from the
Presidents Conference on Home Build
ing and Home Ownership.
A committee of bankers. realtors and
building loan leaders found itself in
sympathy with the view Of the Presi-
dent that the emergency must be met,
reporting:
The committee unanimously records
its support of the President in any
remedial measures he proposes"
Members of this group this morning
voiced approval of the plan recently an
nounced by President Hoover calling
for establishment in each of the Fed
eral Reserve districts Of a mortgage
rediscount bank
Second Mortgage Field.
This group, headed by Frederick H.
Ecker president of the Metropolitan
Life Insurance Co, reported that the
greatest deterrent to sound home own
ership may be found in the second
mortgage field" 1t found that two
thirds or more of all home buying re-
quires junior financing and that it was
not unusual for the home owner to pay
a bonus of Is to 20 per cent for this
financing service.
When 1t is realized that often 1t is
necessary to renew these junior mort
cages, the extent of this burden is OBJ
vous,' it added. 1t reported also that
great majority of second mortgage
companies, set up on a purely COM
mercial basis. have failed to weather
the depression.
The committee recommended that no
one should undertake purchase of a
home snless he can make down pay
ment of about 25 per cent of the price,
and that 25 per cent of the buyers as
sured income be the maximum allot-
ment for current payments for a home
The committee emphasized that buyers
should seek amortized long term loans
In preference to short-term straight
mortgages, and that where there is a
second mortgage the principal install
ment be deferred to the end of the sec
ond or third year.
Rail Rate Reforms Urged.
Believing that decentralization of in
dustry would relieve housing congestion.
committee on this study urged reform
of railroad rates. It stated
THE railroad rate structure should
be such that industries are as free to
locate in the country as in the city.
There should be currently in effect rates
suitable to move the trafhc If an indus
try locates there. The rates to
country points should not be higher, in
proportion to the cost of serving them,
than In the case of the larger cities.
Similarly, the industries should be free
To locate in the region of a large city
instead OF In the congested area"
This group was headed by Stuart w
Cramer, member Executive Committee,
Cotton Textile Institute.
There will be general session of the
1000 delegates tonight at Constitution
Hall, where addresses will be given by
Secretary Of Interior Wilbur, co-chair-
man Of the conference, and Mrs. Jane
Deeter Rippin.
This afternoon there will be q recep-
ton at the White House for the delegate
body.
Large Scale Operations.
Recommendation for large-scsle oper-
atoms In residential development was
brought before the conference by a
group headed by Alfred K. Stern, d.
rector of the Julius Rosenwald Fund
and including Louis Brownlow, director
Public administration Clearing House
Of Chicago
substitution OF mass production of
dwellings for the current single-unit
plan would make possible adequate
housing for the vast group of clerical
and industrial workers whose needs are
inadequately met under present meth
DDS Of finance and construction, the
committee declared
The largescale operation, 1t was held,
is economical, modern and eficiently
designed, and a good investment be-
cause 1t dispenses with the multitude of
small financial operations, and because.
by creating neighborhoods of homo
geneous character, 1t guards against
deterioration.
Such types of operations make posi-
Reduction In Cost.
The cost of construction of housing
can be reduced by adoption Of new
practices, the conference was informed
by the committee headed by A. P.
Greensfelder, president, Associated Gen
eral Contractors Of America.
Accurate estimating and cost ac-
counting, use of standardized materials,
OF labor saving devices and equipment
and proper Job organization were some
Of the recommendations.
This group found that at present
houses are not produced as efficiently
as automobiles and that the building
Industry may learn lesson by a study
OF the automotive industry.
Builders should consider the follow
ing topics with view to effecting
economies:
The simple I'm versus the compli-
Gated design, co-crdinated with ma
terials; elimination Of cellars and at
tics, type Of foundation, room dinfen-
sion to meet stock sizes of lumber,
standard framing, doors and windows,
location Of bath and kitchen so that
short length Of pipe may be used, lath
and plaster versus wall board, spray
painting, pre-fabrication construction
units and interior fixtures, elimination
OF back stairs, a smaller number Of in
terror partitions, possibilities provided
by central heating plants, elimination
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