Evening star., 1937-11-18
BUILDING
GETS ASSURANCE:
No Competition With Busi.
ness Contemplated
by F. H. A.

The United States Housing Author
ity contemplates no competition with
private building, Nathan straus, its
administrator, told the Housing Con-
ference OF the United States Chamber
OF Commerce today.
Addressing some 300 leaders in the
private construction industry, Mr..
Straus said:
you may have been concerned
about the effects Of the Housing Act
on business. Let me assure you that
no competition with private business
Is contemplated by me, or, If I read
the law right, is even possible under
the act. We want to use our funds
not to house a few families in ideal
homes, but to house as many slum
dWellers as possible in decent homes" p"
Mr.. Straus, who Is charged with
the duty Of administering the $780,
100000 program authorized by the
-Steagall Housing Act, said the
income OF the slum dwellers Is so low
that private industry cannot build
homes for them.
Fears Costs viii Rise.
Blaming political mathematics" for
creating a mistaken belief in the public
mind that costs can be lowered while
wages are being raised and working
hours shortened, Wilson Compton,
secretary and manager of the National
Lumber Manufacturers Association.
told the conference that building costs
will go up unless there Is change in
national policy.
who expects building costs to de-
cline substantially?" he asked. "One
OF the announced objectives of ma
tional public policy is higher wages
and shorter hours. One of the un-
announced. but inevitable, prospects
is higher taxes Does any informed
person seriously think that we may
enjoy higher wages, shorter hours
and higher taxes without incurring
higher costs and paying higher prices?
Political mathematics may for a time
disguise the cause OF these events
But the building public will soon see
their consequences and will either
accept them as part of the price of
hoped-for greater income or else will
force change in national policy"
Denying that building costs now are
prohibitive, Mr. Compton called at
tention to the experience Of his organi-
zation in building demonstration
houses conforming to specifications
of the Federal Housing Administration
The cheapest, he said cost 1880, but
in no case did they cost more than
IS 900.
Interest Rates Hit
High housing costs were attributed
to unreasonable taxes and excessive
interest rates" by John McC. Now
bray, chairman of the Housing Com
mittee OF the National Association of
Real Estate Boards. Mr. MoUbray
estimated that the annual income of
real estate property was about s6,000.-
100000 and that taxes on it totaled
$4,000 100000 year.
A similar position was taken by
Gerrish GassaWay, secretary of the
Chamber of Commerce of Wilmington
Del.
Since President Roosevelt has asked
private capital to stimulate the build
ing industry, he said, the industry
should say to the President Very
we'll. remove the shackles of confisca.
tory taxes on any profits that might
accrue. Get the Government out Of
those unsound, unwise and unsuccess.
full ventures such as subsistence home.
steads-Greenbelts, Tugwelltowns anc
P w. A. apartments that intrude ir
competitive field and discourage. dis.
locate and destroy private enterprise
and initiative"