Evening star., 1943-02-27
MuI|eniix Asks
Liquidation Of
Bureducrats'
Mortgage Bankers
Postwar Clinic
Opens in Chicago
epecial Dispa tch to The Star

NpcCldi blSpd lCH 10 Inc Star.
CHICAGO, Feb. 27.-Charging a
trend toward increased bureau
cratic control in Washington, y
Charles A. MulleniX of Cleveland,
president of the Mortgage Bankers
Association, opened the 1943 War
and Postwar Clinic" here with. the
declaration that "the bureaucracies
are going to be difficult to liquidate' >
Regardless of the wishes of Con-
gress,' he said, they find ways to
perpetuate themselves. and, in fact,
stretch laws out of shape and in
terpret them to fit their own pur-
poses.
The aggressiveness of the public
housers,' particularly those who re-
fuse to face conditions, would dis
solve quickly if it were not for their
jobs of operating the properties.
We should demand that all public
housing be turned over to private
management for economy and effici-
ency to be followed as soon as pos
sible by sale to private owners"
Discusses HOLC.
Discussing the current agitation to
force liquidation of the Home Own
ers Loan Corp, MulleniX said it was
his understanding that last summer
certain, financial institutions pro-
posed to HOLC a plan for taking
over the entire portfolio of mort
cages held by the agency-and that
the offer was at par" A conference
was arranged here in October, he
said, to which an agency's repre-
sentative was invited, but did not
appear. Later several institutions,
he said, then proceeded to refinance
many of the better. HOLC loans.
Mr.. Mullenix added, however, that
at recent Washington conferences,
he was informed that HOLC would
be willing to accept such an offer
subject to the approval of Congress.
1t now remains to be determined
whether the present portfolio is
reasonably near par value"
Discussing war housing, he said
that private building and private
financing were getting a somewhat
better break now. However, he
added, as of December 81, nearly
$2,000,0 100000 had been appropriated
or made available by Congress for
publicly financed housing for war;
workers and that 216,0OO units of
total of 562, 900 units scheduled had
been completed. This leaves 346,OOO
units to be built by the Public Hous-
ing Authority as against only 100000
units to be built by private enter
prise. For that reason, the addi-
tional 5000, 900 appropriation now
being sought for public housing
ought to be vigorously opposed,
he said.
Later Abner H. Ferguson, COM
missioner of the Federal Housing
Administration, told the conference
that the backlog of home construc-
ton after the war may reach 2,O00,-
900. units year for 10 years, based
on the vast number of families with
accumulated war savings. He told
the mortgage men that private cap
ital must be ready to finance them.
This backlog, he predicted. may 60
hand in hand with possible wide
spread unemployment and private
capital should be ready to step into
the breach.
mo other Industry is so well
equipped to furnish employment as
quickly as the construction industry.
I have always said, and I say again,
that private capital should finance
all the housing needed in this coun-
try except that which cannot be
produced for an economic rent
After this war we will be living in
different world. Old customs and
old habits are dying every day.
Some of them we see; some are not
so easy to discern Some people
the die-hards-refuse to see any of
them. None of the changes, what
ever they may be, can be allowed to
kill the system of free enterprise
that has made America great.
Opportunity for All.
free enterprise means oppor-
tunity for all to work at a reasonable
profit or fair wage-the banker
and industrialist as we'll as the