Evening star., 1946-04-11
Further Cut in Wheat Long-Range Housing
Seen as U. 5. Rejects Plan Before Senate;
Bread Rafioning Plan Emergency Bill Voted
Latter Measure Still
Faces Hurdle in House
Because of Subsidies
BY the Acsocioted Press

The Senate sent the emer-
gency housing bill back to the
House today and quickly turned
to companion measure intend
ed to add 12,5oO,OOO new homes
by 1856.
This long-range bill came to the
Senate floor with the unanimous
approval of its Banking Committee.
Bipartisan backing is demonstrated
by its trio OF authors: Senators
Wagner, Democrat, of New York;
Taft, Republican, of Ohio. and
Ellender, Democrat, of Louisiana.
The bill is not linked to, but fits
in with, the emergency housing
legislation which the Senate passed
yesterday, SO to IA, and sent back
to the House for action on amend
ments.
The emergency bill is designed to
provide 100000 new dwelling units.
largely for veterans, by the end of
next year.
Before it can reach President Tru-
man for signature, however, the
Senate and House must agree on a
compromise version to be worked out
by Senate and House conferees.
Differ on Subsidies.
The chief point of difference is the
Senate provision for 100000, 900 in
subsidies to encourage output of
scarce building materials.
Tire House refused to permit these
premium payments, and both
branches turned thumbs down on
price ceilings for existing dwellings.
The administration, from Mr.. Tru-
man down, had urged both these
features. Ceilings on new houses
were provided by the House and the
Senate alike.
The long-range bill makes no at
tempt to settle urgent housing
problems. 1t takes things slower,
and is based on the idea that easier
Government loans and mortgage
guarantees might encourage more
construction by private enterprise.
There are, in addition, provisions
for continued Federal aid for public,
low-rent developments. home loans
to farmers and Federal aid to cities
which want to redevelop blighted
areas.
Low Down Payment.
One feature would permit the
purchase of a home Ensured by the
Federal Housing Authority with
only a 5 per cent down payment. On
$1,000 house this would be $3.50.
The purchaser would have 80 years
to pay the balance.
The legislation provides for direct
Federal expenditures of about $30,-
100000 the first year, with a rise
to $l33,000,O00 a year after five
years.
Although the administration lost,
33 to Al, in its attempt to apply
price ceilings on existing houses, it
triumphed so to Is in beating down
an amendment by Senator Buck,
Republican, of Delaware, which
would have reduced the subsidy
fund to 100000, 600.
Wherry Proposal Crushed.
BY an even heavier majority-54
to l9-it crushed an effort by Sen
ator Wherry, Republican, of Ne
braska, to give veterans direct sub
sides of S per cent on the purchase
OF old or new homes, with no vet
eran to get more than $500. SEN
ator Wherry proposed that as a
substitute for the building material
subsidies.
Defeat of the provision for price
ceilings on existing houses came as
a surprise, since only small amount
of opposition to it had been heard
since the bill cleared the Banking
Committee. The provision would
have made the first resale price of
existing houses and building lots the
ceiling price during the emergency
AS the bill stands, both Houses
have authorized establishment of
the Office of National Housing Ex-
pediter with broad powers to stimu-
late production of materials and
actual construction of homes.
Wilson w. Wyatt has been serv-
ing in this role under a presidential
order and is expected to be reap
pointed to the $4,000 job set up by
the legislation.
The expediter would have au-
thority to allocate scarce materials
fix ceilings on rents and any new
homes constructed, and direct other
Government agencies to aid the vast
home building effort.