The Washington times., 1934-03-06

. It was point
ed out yester.
day by John j.
Dick Baker Fahey, director
Of the Federal Home Owners
bank board, that the proposed
amendment is expected to handle
all new construction that is
necessary, but A. G.. johnson, Of
the Standard Homes Corporation,
IS not convinced.
Mr.. johnson, who during the
World War, built houses by the
score for enterprises engaged in
war industry and on short notice,
Is supposed to know the building
game from beginning to end.
His operations cover the entire
country, with the sole exception
Of the District of Columbia.
100000 New Homes
Taking figures Of the last
census that 100000 new families
are created each year with a sim
liar number Of homes demanded
and that replacement of existing
dwellings is such as to increase
the small home demand by con-
siderable figure, Mr.. Johnson says
that in 1928 there were approx
mately 100000 new homes con-
Structed.
The depression brought new
home construction to a standStill
for the past four years and, in the
matter of small homes, the coun-
try is far behind its normal de-
mand.
Mr.. johnson thinks the an
Swer to President Roosevelt's call
for more jobs lies in small home
building.
The labor Of at least eight
men is required to construct a
medium sized dwelling, Mr..
johnson says, and for 100000
such homes to be built during
the year, $4,000. men would be
put to work.
The present setup of the Home
Loan Act would not provide the
necessary financing for this type
Of building, he claims, and 1t is
especially true Of the outlying
districts of the country.
Lumber Dealer Knows
In the final analysis, it is the
humber dealer who knows more
Of local building conditions and
actual construction cost than
other members Of the building
business. according to Mr.. John
son.
The home loan feature could
aid the lumber dealer without
risk, he thinks, and new small
home construction would swing
back to its normal trend.
This plan, or any embodiment
Of its features, however, would
'knock the spots off" the spec
ulative building market and
therein lies its doom.
Mr.. Fahey explained that the
amendment to the home loan
BILL, is expected to make the
entire home finance situation
more flexible. Guarantee Of the
principle as well as interest on
home loan bonds and the loan
features to banks will obviate
bond issues at inopportune times
and will extend aid to banks
when the demand on them is
greatest.
Interest on the bonds-not to
exceed per centum per annum-
will be fixed by the Home Loan
Bank Board from time to time,
with due regard to the condition
OF the bond market in general and
In such a manner as not to inter
fere with the public demand for
other Government issues yielding
less than 4 per cent.
Arthur c. Houghton, president
Of the real estate board, H. Cliff
ford Bangs, progressive broker,
and Charles j. Rush, executive
secretary of the board, were
among those who listened to
President Rosevelt's address yes
terday.
II Ben T. Webster, Boss and
Phelps executive, was not a law
abiding citizen, he might have
cause for grave concern.
Mr.. Webster would be between
the horns of the well-known di.
lemma for E. Barrett Prettyman,
new Corporation Counsel, and Ver-
non E. West, Assistant Corpora
ton Counsel, live in front and
rear of him and he wouldn't have
q chance to get away with any
thing