Evening star., 1934-12-10
F. H. A. EMISSIONS
a,0)DEHOMEP PLAN
LoW.CoSt Wood and Steel
Houses Urged for "Com-
pany Towns"
By the Associated Press.

~ the Associated Press.
CLEVELAND. December 10.-The
biggest house building project in the
Nations history, calling for $4,000
modern wood-and-steel homes for
company towns" Of the coal and steel
industry, is being envisioned as a new
major program for the Federal
Housing Administration.
Approximately $l50,000,000 In con-
struction would be involved, exclusive
of the value of the home sites, and
thousands of steel workers, carpenters
and other craftsmen would be put to
work in execution of the project.
Executives Are Doubtful.
Although leading executives Of the
steel and coal industries in this area
express doubtful attitude and de-
cline to be quoted, it is known that
representatives of steel in Washing
ton have been discussing the idea and
that the Housing Administration has
expressed itself as receptive to any
program capable of stimulating build
ing activity.
The project, as now discussed in
Ohio steel circles, estimates the homes
could be built for about $4,000 each
on land alreday owned by the steel
and coal companies or obtainable by
them at comparatively low cost.
In line with the Federal housing
program. which already proposes 80
per cent loans for home construction,
the company town project assumes it
could obtain similar loans on a whole
sale basis.
Thus, company building a SO 900
house on a $500 lot would get So 300
in Government money and need put
up only 5000 of its own funds toward
the construction cost.
On Government Terms.
The plan contemplates selling the
houses to company employees on the
same terms as provided by the Gov
ernment loan, which in the case of
a $4,000 item would be approximately
$21 month, spread over a period Of
20 years, and including interest and
taxes.
In some cases the plan assumes
the companies might prefer to rent
instead of sell, in which case even q
rental charge might amount approxi-
mately to as much as the amortiza-
tion charge on the loan.
The houses themselves would be
modern in all details and present the
appearance of homelike dwellings,
with wood and composition material
used in large part of their construc-
ton. Their framework however, would
include about two tons of steel
The use of this amount of steel in
10000 homes would aggregate 100,-
600 tons and give an important boost
to the steel industry, which has been
trying for several years to increase
the demand for its materials in resi-
dental construction.
L0w-Cost Homes Built.
Numerous steel companies already
have constructed low-cost houseSe of
this type and have long since reached
the stage Of being ready to put them
into quantity production, except for
the lack OF suitable market.
The social aspect of the plan to
build or rebuild company towns with
modern homes. apparently comedies
nicely with the Governments own
hopes Of generally raising the stand
ards Of living.
Sociologists long have asserted that
most company houses" at present
are miserable hovels built years ago.
often insanitary, frequently fire traps
and Of little or no present value. This,
they have held. is particularly true
in some of the coal mining sections.