Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-12
PRESIDENT URGES
PROGRAM TO SPUR
BUILDING ACTIVITY
Asks Participation of Pri.
vate Capital and Lower
Interest Rates.
HIGH MATERIALS COSTS
ALSO HELD DRAWBACK
Cites Labor Pay Scales and In
adequate Transportation as
Among Other Problems.


establishment of lower interest and
building costs were cited today by
President Roosevelt as the prime requi-
sites of successful revival of wide
spread construction.
Emphasizing that the entire housing
situation is still in the study stage, the
President listed five major obstacles as
factors in the construction lag of re-
cent years. Those named were:
l. High real estate costs, which
he said were tied in directly with
the TRANSPORTATION problem since
home building and low-cost acre
age invariably meant building in
areas removed from building limits.
The corollary requisite, he said, is
for the establishment of adequate
transportation facilities.
2. High cost of materials.
g. High cost of labor in some
sections.
4. The fact that private industry
has done little to organize itself
for large-scale building. 1t is OBJ
vious, the President pointed out,
that the per unit building costs for
five homes is greater than it would
be for 500. but that neither con-
tractors nor financial interests have
established any effective program to
facilitate the large-scale building
5. Very high cost of money,
which, he said, ran to per cent in
the North and IL per cent in the
South.
Workers Income Problem.
Mr.. Roosevelt admitted that one
of the most important problems being
studied in connection with stimulat-
ing building is that of establishing an
annual income for construction work.
ers to replace the relatively high hour
ly wage rates now prevailing in many
sections.
AS part of the entire problem. he
said, building possibilities of all CLASH
fications are being studied. among
them individual dwellings in cities
and small towns and department
houses. Stun clearance, he added,
is merely one phase of the problem
and it is hoped it will proceed success
fully in itself.
Mr.. Roosevelt said he did not know
whether the construction question will
be taken up with utility executives in
a conference which they have arranged
for next week.
The Federal Housing Administra-
ton held out the prospect of larger
earnings meanwhile to induce private
capital to build new homes.
The F. H. A. increased from to
per cent the maximum dividends per-
mitted corporations which get Federal
insurance on mortgages financing
projects.
Stewart Mcdonald, F. H. A. admin
istrator, said he believed this and
other changes now decided on would
result in millions of dollars worth
of new construction"
Lower Wages Opposed.
Reduction of labor costs in the
building field. another subject of study
by Mr.. Roosevelt's new Housing Com
mittee, was received coolly, however
by William Green, president of the
American Federation of Labor. He
said he doubted the workability of q
proposal that building workers accept
lower hourly rates in exchange for q
prospect of steadier employment.
Senator Wagner, Democrat, of New
York, and others studied proposal.
for creation of a nationa
mortgage bank to facilitate the move.
ment Of private capital into communi.
ties where it is needed.
Consideration also was given to sug.
gestions for reducing from 20 to 10 pei
cent the minimum down-payment or
an individual home before its mort.
gage will be insured by the F. H. A
The new 8 per cent profit rule will
apply to projects involving a large
number of family apartments or homes
renting for a price fixed as low a.
feasible under earnings requirements
Thirty such projects already have beer
insured for about S30,000.000.