Evening star., 1934-06-13
HOUSING DISPUTE
IS COMPROMISED
Section Restored to Bill by
House to Set Up Mort
gage Groups.
BY the Associated Press.

BY the Associated Press.
A compromise was reached today
between forces in the House opposing
and supporting the housing bill as
originally prepared by presidential ad-
visers.
As the House debated the bill, it
was decided after a request by Presi-
dent Roosevelt to restore the section
to permit the establishment Of new,
privately financed $4,000, 900 National
Mortgage Associations, which would
be exempt from taxes.
1t was agreed. too, that the substi-
tute for this approved by the Banking
Committee would remain in the bill,
with some amendments.
The substitute authorized the Home
Owners Loan Corporation TO increase
its funds from 81, 900 ,O00, 900 to $3,500,-
000, 900, earmarking $500, 900 900 for
loans to building and loan associa-
tions which financed existing and
new home mortgages.
$500, goo, 900 Would Be Limited.
This, it was decided, would be
amended to limit the $500 900 900 in
H. o. l. C. aid to funds loaned for
reconstruction, modernization and re-
pair, with the remaining billion dol
lars being used by the H. o. L. c.
under its existing plan Of ref1nancing
mortgages.
A plan is IN the making to cut the
high cost Of homes In q Nation wide
campaign.
This drive to reduce building prices
Is said to have two objectives:
/. To spur President Roosevelt's s
housing program, designed to in
crease the building Of new homes and
the repair of old ones, and thus stim-
ulate the tagging construction indus
try.
2. To carry out N. r. AS avowed
policy of keeping prices from mount
ing to excess.
Parleys in Progress at N. r. A.
Conferences have been in progress
for some time at N. r. A. and in
other official circles working on the
housing program.
The plans are said to be based on
expectation that the housing bill
would be passed substantially as rec
commended by presidential advisers.
The lower costs campaign would be
conducted with the cooperation and
stimulation of the Government. The
possibility is seen that local COM
mittees will dramatize it with facts
and figures appealing to the man in
the street.
A generalization about reductions
sought Is considered difficult, but they
probably would range between 10 and
Is per cent.
Discussions have been held with
labor leaders to find some method
Of reducing labor costs. Nothing
definite on this has been worked out,
but some see a possibility of agree
ments, perhaps local In nature,
whereby labor would take q lower
hourly rate In exchange for q guar
anteed weekly wage.
Provision Is Restored.
The House restored to the housing
bill yesterday q provision permitting
a Government agency to insure mort
kdBcS Oil S1Uxl1 S4CaA nAAIC aAA4 NV
cost housing. Representative O'Con-
nor, Democrat. of New York said:
"It is more important to clear up
q slum than 1t Is to put front porch
on an ordinary house and don't
think New York should be discrimi-
mated against"
Attention conferred today on
whether aid to home owners should
be extended through new, private
mortgage associations or the Home
Owners Loan Corporation and build
ing and loan agencies.
The Presidents advisers were for
the new mortgage associations; q ma
jority of the Banking Committee for
the H. o. L. G. The bill would place
a partial Government guarantee on
loans for construction and repair.
Senate Action Delayed.
During debate yesterday Represent
ative Goldsborough, Maryland, rank
mittee, charged that q portion Of the
original bill was written by a high
executive of the General Motors Ac-
ceptance Corporation, In conjunction
with an official Of the Johns Man
vile Co."
The illness of Senator Bulkley.
Democrat, of Ohio, chairman Of q
Senate Banking Subcommittee which
is considering the housing proposal,
delayed action on the Senate side.
The measure Is expected to be re-
ported within q day or two.