Evening star., 1934-07-17
LUMBER COST CUT
|. EFFECTIVE FRIDAY.
Officials of Housing Unit Ex-
pect All Industries Will
Follow Lead.

tributlnE to the construction and
renovation Of real estate Improvements
to follow the lead OF the lumber in
dustry in effectins slashes in the cost
Of materials to consumers,
Action Of this sort. those in charge
OF the broad program for reviyifying
the tagging construction industry as
serted today. should give a decided
push forward to the Nation wide cam
paign for more and better housing
The reduction in lumber costs viii
become effective Friday. with the ap-
proval last night by N. r. A. Of 8 TO
10 per cent cuts In the cost OF prod
ucts going to house construction. This
reduction. combined with the check
in the price msrk-up of retail lum-
Der dealers previously decided upon
by the industry, should mean a saw
ing Of IA to Is per cent to consumers,
n. r A. estimated.
Cover 80 Per Cent OF Output.
The new prices, recommended by
the Lumber Code Authority for ap-
effect indefinitely and are expected
to cover 80 per cent OF the country'S
lumber output The move is described
by the lumber industry as its con-
tribuuon to the Federal Housing Ad-
ministrations efforts to get the cam
paign for home building and repair
under way quickly.
The reductions announced today"
N. r. A. said in a statement accom-
panying approval Of the cuts, were
made in accordance with the preyi-
ously expressed pledge Of the industry
to cooperate to the fullest extent in
the Presidents housing program.
The new schedules, although pri-
marily intended to stimulate house
construction and mOdernization, will
also include price reductions in grades
and sizes for items used for other
purposes. such as for example, the
manufacture Of wooden packages.
In his order today the admins
traitor declared an emergency to exist
in the lumber industry-the emergency
justifying the establishment of mini
mum prices based on reasonable costs
determined and approved in the order.
Prior to the issuance of the order the
administrator approved an amend
ment of the code authorizing him to
determine reasonable costs during an
emergency in the industry"
Principle Approved.
The reduction, according to John D.
Tennant of Longview, Wash, chair
nan of the Lumber Code Authority,
were decided on "in principle" month
ago, but were held up pending ap
proval by N. r. A.
The code authority sees firm basis
for the prosecution of price violators
in Gen. Hugh S. Johnson's order di-
recting that no person subject to the
Jurisdiction of the code shall sell or
offer to sell or otherwise dispose of any
products Of the industries involved at
less than the reasonable costs deter
mined and today published by the
administrator.
Meanwhile, the task Of organizing
the Federal Housing Administration
proceeded at an even pace, although
the handful OF officials thus far iden-
tilted with it were still scattered
through various Offices in the city, in
cluding the National Emergency Coun-
Gil. Federal Emergency Relief Admin
iStration and others.
Temporarily. Housing Administrator
James A. Moffett is conducting his
office at the Mayfiower Hotel. although
space in the new Post once Building
allocated to the administration is
being occupied as fast as it is vacated
by the Indian Affairs Bureau.
Policies Being Developed.
Policies and procedure with respect
to modernization loans are being de-
veloped rapidly by Albert L. Deane,
deputy administrator in charge of
modernization, with the hope of is
suing the first insurance policy to
private lending agency by the first
week in August. Under the set-up
decided upon, the F. H. A. will insure
20 per cent of the total loans made
for modernization by lending agency
approved by the administration.
To be assured that money advanced
will be expended for moderniZatlon,
and mot to buy a new car for the
family or take a trip to Europe" the
F. H. A. will require either certiflca-
ton as to the use of the money, or
that the note be discounted through
the contractor who does the work.
Only duipment that becomes definite
ly part of the real estate improve
ment will be approved.
Committees Interested.
The various citizens association
committees which are pushing the
$1,000 Better Homes Contest of The
Star in the several communities Of
metropolitan Washington are evincing
keen interest in the Federal Gov
ernments activities designed to stim-
ulate property renovation. They see
in the plan to make up TO $4,000
available for each home owner in good
credit standing a promise of decided
impetus to The Stars campaign.
Prizes in this contest, initiated last
April to encourage the Identification
and modernizstion Of homes in Wash
ington and nearby, are divided into
two groups. for homes valued at Sl2,-
600 and less and for homes valued at
more than $4,000. In each class the
prizes are: First. $3.50; second. 500;
third $50. and four honorable men
ton prizes of S25 each The Board
OF Trade has put Up a 500 remodeling
prize.
CAB SEATS PRESCRIBED