Evening star., 1938-01-30
HOUSING MEASURE
FACES FINAL TEST.
Senate Due to Act Tuesday
on Conference Report
Dropping Pay Clause.
By ]. A. O'LEARY.

The Administrations housing bill,
counted on to help check the busi-
ness recession. faces q final test in
the Senate early this week over wheth-
er to adopt the conference agreement,
which knocked from the bill the pre-
vailing wage requirement.
Senator Lodge, Republican, of Mas
sachusetts, author of the prevailing
wage amendment. Is preparing to
hight the action Of the conferees in
dropping it.
Since the report will be acted on
as . whole, the issue will be whether
to adopt 1t as it stands, which would
dispatch the measure to the White
House for signature. or send it back to
conference for further consideration
OF the prevailing wage question. The
House has approved the report.
May Seek Roll Call Vote.
The wage amendment was placed
In the bill originally by a roll call
vote Of 81 to II, which means that
II there Is record vote on adoption
OF the conference report from which
the wage feature has been eliminated,
q substantial turnover from the pre-
vious vote would be necessary. Minor
ity Leader McNary indicated yesterday
he would seek roll call vote.
There were indications yesterday
Senator Lodge will have some Demo-
cratic support for adherence to the
prevailing wage clause, but whether it
will be sufficient to prevent adoption
Of the report is doubtful.
Administration forces. it is expected,
will seek prompt adoption of the re-
port In order to complete legislative
action, In view Of the fact the meas
ure has been in process Of enactment
for two months.
May Change Positions.
Some Senators who supported the
wage amendment originally may take
the position that now they must vote
on the bill as whole, and argue that
1t is more important to get housing
construction going than to send the
report back for further conference
with the House on the one contro-
versial point.
On the other hand. labor groups in
various localities are understood to be
urging members of Congress to sup
port the prevailing wage principle.
Supporters of the bill on the ad-
ministration side, while in sympathy
with the prevailing wage principle.
take the position that making it a
condition for obtaining Federal Hous-
ing Administration mortgage insur-
ance would slow up the private hous-
ing development the bill is intended
to stimulate.
Called Up Tomorrow.
Although some other features of the
conference report may be discussed
the prevailing wage elimination is the
only serious point of controversy. The
report will be called up tomorrow by
Senator Dagner. Democrat. of New
York, but final disposition of 1t is not
expected before Tuesday.
The measure is designed to attract
private capital into the housing con-
struction field by Offering more liberal
terms for mortgage insurance.
The bill would permit mortgage in
surance up to 80 per cent of the value
OF $4,000 homes, and on homes cost
ting not more than $4,000, 90 per cent
Of the first $4,000 and 80 per cent on
the remainder. At present 80 per cent
1s the limit on insurance.
The measure also would provide for
10 per cent insurance on construction
loans on large housing developments
and contains other provisions intended
to encourage establishment of national
mortgage associations,