Evening star., 1937-12-11
HOUSE UNIT CALLED
TO STUDY HOUSING
Committee to Begin Work
Today-Senators Will
Act Next Week.
By ]. A. O'LEARY.

BY J. A. O'LEARY.
Sponsors of the Administrations
new housing bill to stimulate home
building as a recovery step are speed
ing work in both houses of Congress
to have the measure ready to be re-
ported before the end of next week.
Chairman Steagall has called the
House Banking Committee into execu-
tive session today to begin work on
the bill, and Chairman Wagner has
set Tuesday for a similar session Of the
Senate Banking Committee Both
committees completed extended hous-
ing hearings yesterday afternoon.
Developments during the next two
or three days probably will determine
whether the housing plan will be
called up first in House or Senate.
When the Senate disposes Of the farm
bill early next week, if not today, the
anti-lynching bill automatically be-
comes the next pending business.
May Get Early Action.
There are strong indications, how
ever, that if leaders find the housing
bill can be put through the Senate
with not more than two or three days
OF debate, an arrangement may be
made to work it in between the farm
and anti-lynching bills. Advocates of
the anti-lynching measure. it is un-
derstood, would consent to this ar
rangement however, only with definite
assurance that the preferred status of
the anti-lynching bill would be pre-
served to bring it back before the
Senate as soon as housing was voted
on. They are known to feel confident
the anti-lynching bill will pass early
In the January session if not before
Christmas.
The housing bill is designed to helr
check the down-swing in business and
to create employment by liberalizinp
the terms on which the Federal Hous-
ing Administration may aid privately
hnanced home construction programs
through insuring loans.
Highlights of Bill.
Highlights of the bill are:
Extend F. H. A. insured mortgage
coVerage to all types of housing, both
Tor sale or rent, and projects of mul-
tlple-famlly units; allow insurance ur
TO 80 per cent, instead of 80 per cent
on the value of individual homes
thereby reducing the down-payment
for purchasers in the lower-income
brackets; seeks to pave way for Or
ganlzation OF national mortgage asso-
cations to raise funds through bond
issues for large housing operations.
Before the bill emerges from COM
mittee, however, there are numerous
changes to be considered that were
suggested during the hearings, includ-
ing the advisability of raising the linn
its of construction cost per room
which are fixed now at 81 900 for GER
tain types of projects, and at $1,000
under other conditions. Another cues
ton is whether the interest charge
to the home purchaser could be re-
duced below the proposed 54 per cent,
including insurance premium, without
running the risk of discouraging home
construction.
Adjustment of Wages.
During the Senate hearings there
was considerable discussion of the pos
sibility of capital and labor getting
together on long-term adjustment of
wages in the hope of reducing costs
and stabilizing employment. Indica-
tions yesterday were, however, that
any steps in this direction will have
to be confined to private negotiation
rather than legislative enactment.
Shortly before the hearings closed
yesterday Harry c. Bates, chairman of
the American Federation of Labor
Housing Committee, proposed ar
amendment to require prevailing wage
rates for labor on housing projects in
various communities.
One of the last witnesses was I.
Friedlander, of the United States
Building and Loan League, who urged
series OF amendments all through the
bill.
Large-Unit Mortgages.
Discussing the proposed national
mortgage associations, his statements
declared that whether such national
associations are needed to purchase
the large-unit mortgages contemplated
by some sections of the new bill is for
congress to decide, but we are un-
quallf1edly opposed to the establish
ment OF these organizations with gov
eminent capital to duplicate and in
trude upon the activities of the -
Federal Home Loan Banks"
After proposing a change in the
wording of the bill, Mr.. Friedlander's
statement added that national mort
gage associations are not needed to
protect the liquidity of commercial
banks making F, H. A. guaranteed
mortgages, as present statutes permit
the Federal Reserve System wide lati-
tude In making advances to members
on insured mortgages
The Building and Loan League pro-
posed another amendment under
which, when F.. H. A. insurance is an.
Piled for up to 80 per cent on homes
the building contractors and real
estate developers would have to be CO.
slgners for the part of the loan in ex-
cess of rs per cent. The purpose of the
amendment would be to require the
builder and developer to join with the
lender and the government in the
financial responsibility until the mort.
gage debt had been paid down to rs
per cent.