Evening star., 1946-12-05
Embargo Will Halt
Home Construction,
Builders Predict
By the Associated Pres.

A speedy halt to home construc.
ton because of the rail embargo
was forecast today as Wilson Wyatt
stepped out as Federal housing ad-
niinistretor in climax to bitter
feud over the housing program.
!. The National Association of Home
:. Builders. predicting the construc-
y ton stoppage, added in q statement
that 400, 1000 homes for veterans nov
being built will be kept from COM
pletion while the embargo is in
effect"
The embargo, going in effect to-
morrow as a step to conserve coal
. limits shipment virtually to food
medicines and fuel. The home
builder group said suspension of
lumber shipments would be felt
Immediately.
Accepted Reluctantly"
Mr.. Wyatt chose to bow out as
housing expediter rather than 60
along with a White House policy of
relaxing controls over the building
industry "as rapidly as possible"
The resignation of the former
Mayor of Louisville was accepted
reluctantly last night by President
Truman It's announcement meant
the President had ruled against Mr..
Wyatts contention that the vet
erans' housing program must be
pressed on an "all-out emergency
basis
Mr.. Truman did not mention the
behind -the-scenes battle which has
been going on for some weeks be-
tween Mr. Wyatt and the heads of
other Government agencies over the
housing program.
Objective Unchanged.
But he issued a statement saying
that "henceforth the program must
be given its proper emphasis in the
overall economy and controls must
be relaxed as rapidly as possible
without threatening the success of
the housing program"
Mr.. Truman emphasized, too, that
the objective-housing for veterans
as soon as possible-is unchanged.
Mr.. Wyatt. questioned by re-
porters, refused any statement ex-
cept to say that his position should
be obvious" and that he planned to
leave Washington at once.
Aides, however, said that the rea-
son for Mr.. Wyatt's resignation
could be summarized as a protest
against business as usual-housing
as usual-banking as usual" policies
within the administration.
This attitude spokesman said,
"makes it impossible for Mr.. Wyatt
to stay. They plainly do not be-
lieve in emergency methods"
No Information on Details.
Housing officials said they had no
information as to. the details OF
which portions of the housing pro-
gram will continue to be carried on
They predicted that a limitation,
currently fixed at about $35 600, 900
a week on n-housing construction,
would remain as would the priorities
given to veterans in the purchase or
rental of new homes.
At the same time, they forecast
that priorities for housing pur-
chasers of building materials might
be dropped, and that the present
program of premium payments as
an incentive for the production of
building materials would probably
be abandoned.
Mr.. Truman gave assurance that
MIR. Wyatt's resignation "does not
mean that any major modification
in the objective of rapidly and ade-
quately housing our veterans has
occurred"
Loans Blocked by RFC.
One of the obstacles which Mr..
Wyatt encountered was the refusal
OF the Reconstruction Finance Corp.
to grant loans he had recommended
for some prefabricated housing
manufacturers. The loan agency
ruled against the loans on the
grounds they were "unsound," but
Mr.. Wyatt contended they should
be regarded as emergency steps.
The President said that under
Mr.. Wyatt's leadership 100000
dwelling units have been put under
construction and some 100000 will
have been completed by the. end of
1916, an accomplishment which he
termed outstanding.
In a letter, the President told Mr.
Wyatt he had earned the thanks of
the Nation and the special gratitude
of the veterans whom you have
served with such singleness of pur-
pose and with such practical re-
suits"
There was no indication from the
White House as to who would be
appointed to succeed Mr.. Wyatt
aitlnnr IN On acfinn or r,arrn a emf