Evening star., 1937-05-06
Agency MERGER
BILL INTRODUCED
Byrd Offers Measure in Sen-
ate Designed to Save
$24, 100000 a Year.

Establishment of a new Government
agency, the Federal Home Credit Ad-
ministration, which would replace
three existing agencies-the Home
Loan Bank Board, the Federal Hous-
ing Administration and the Home
Owners Loan Corps proposed in
bill introduced in the Senate today by
Chairman Byrd of the Committee on
Federal Executive Agency Reorganiza-
ton. Based on the finding of the
Brookings Institution, this measure is
expected to effect saving of some
s24,500.000 year. 1t is one of a series
OF bills, sponsored by Senator Byrd,
who is also member of the new
Joint Committee on Government
Organization, for business-like
economy and efficiency reorganiza-
ton of the administrative branch OF
the Government
This proposed one new agency, Sena-
tor Byrd explains, is designed to &C
complish the purposes, meet the re-
quirements and perform the functions
OF the existing three agencies without
tmpairing the service now rendered
Literally" he says, "the bill abolishes
the three agencies and transfers to the
new agency supervision over the other
agencies now under supervision of the
Home Loan Bank Board. It also trans
fers to the new administration super
vision of the R. F. c. Mortgage Corp.
for possible dissolution with functions
to be transferred to Home Loan Banks
or the new agency. The act would be-
come effective l20 days after passage" :"
Calls for One Administrator.
This new agency would be headed
by one man-an administrator, to be
paid $4,000 year, in contrast with
the six officials, each paid $4,000, who
now head up the three agencies which
Senator Myrd proposes to abolish. The
Home Loan Bank Board, he finds, now
employees 326 persons; the Federal
Housing Administration 4,720 persons
and the Home Owners Loan Corp.
l7,30l persons. This personnel would
be consolidated and undoubtedly IRE
duced drastically," Senataor Byrd ex-
plains.
THE Home Owners Loan Corp. now
has q manager in each State with SAL
aries in these positions ranging up to
$780," he points out. The Federal
Housing Administration likewise has a
field organization in each State, and
reports it has 2O5 representatives in
the field with salaries in excess of
$4,000 each. The bill contemplates
consolidation of these field Offices.
In Washington the Home Loan
Bank Board is reported officially to
have 20 persons whose salaries range
from $4,000 to $4,000 a year" said
Senator Byrd. The Home Owners
Loan Corp. has Washington staff OF
approximately 25 in salary brackets
of $1,000 and above. The Federal
Housing Administration staff in Wash
ington is listed officially with Wash
ington staff Of more than Is with sal
aries more than $4,000 a year. It is
anticipated that these will be con-
solidated at great savings" said the
Senator.
Rental Space Costly.
Outside of the District of Columbia
the Home Owners Loan Corp is pay
ing $983,17728 a year for 1,098,248
square feet of space in the field; the
Federal Home Loan Bank Board is
paying sl5,690 for 9,751 square feet of
space and the Federal Housing Ad-
ministration is paying $228,270.72 a
year for 1871 square feet Of space.
1t is anticipated that with the pro-
posed consultations the space require
ments would be curtailed"
Senator Byrd cites these as SAM
pies Of administrative expense reduc-
tions' that are possible through the
proposed consolidation.
If the appropriate committee will
allow this bill to come to the floor for
full and open discussion by Senators,
other bills OF this nature providing for
substantial savings are sure to follow, "
said Senator Byrd.