Evening star., 1947-10-12
Mccarthy App|auds
Creedon Approval Of
Louisville Rent Rise
BY the Assoeioted Press

BY the Assoeioted Press
Senator Mccarthy, Republican OF
Wisconsin, said yesterday an ex-
tension of rent control would be all
right with him If Housing Expediter
Frank Creedon keeps on approving
recommendations of local rent con-
troll boards.
Senator Mccarthy praised Mr.
Creedon's approval OF per cent
blanket rent increase for the Louis
vile (KyD area as recommended by
the regions Rent Control Advisory
Board,
Administration officials, including
President Truman, have said Mr.
Creedon could do nothing else under
the law. And fears have been ex-
pressed. particularly by labor union
leaders, that the action in the Louis
vile case might set a pattern for
the nation.
Calls on Tenants to Resist.
John j. Lamula, legislative rep
resentative of the Joint Rent Action
Committee of New York State
called the Louisville rent increase
unfortunate" A statement dis
tributed here described the COM
mlttee as Statewide organization
OF SO groups representing $4,000
tenants.
While Mr.. Lamula said the Louis
vile increase is not necessarily" a
prelude to increases in other areas
he added that tenants must meet
with full resistance" a new on
slaught by the New York real
estate combine to stampede them in
to signing leases for a Is per cent
rent hike by citing the break in
Louisville"
The Federal Rent Control Office
yesterday released a sample survey
made before Mr.. Creedon approved
the Louisville increase, indicating
that a majority of Louisville land
lords are better off now than they
were in 1899.
Healthy" Attitude, He Says.
OF Mr.. Creedon's action, Senator
Mccarthy said to reporter.
Il am happy that there is one
bureaucrat in Washington who is
trying to follow the intent of Con-
gress and not attempting to rewrite
the laws it passes.
"Creedon's attitude is a healthy
one and I am writing him to tell
him So"
AS a member of the Senate Bank
ing Committee, Senator Mccarthy
helped draft the rent control extern
sion law which became effective
Last July /. Unless renewed, it will
expire February 29
The law provided for local advisory
boards in each of 600 areas under
rent control. These boards, ap-
pointed by State Governors and
subject to confirmation by Mr.
Creedon, are authorized to recon-
mend rent increases, removal OF
controls or continuation of existing
rent ceilings.
No Choice, Truman Holds.
Mr.. Creedon is required to act
on such recommendation within sc
days. The question of whether he
has authority to reject them created
a controversy when he approved the
Louisville boards petition.
President Truman, who signed the
rent bill last June as the lesser d
two evils" with the alternative M
controls, took the position that Mr.
Creedon has no choice but to rubber
stamp recommendations OF loca
boards. Mr.. Creedon has indicated
he agrees.
Mr.. Creedon also has approved
the recommendations Of four othel
boards for continuation of existing
ceilings, and fifth boards decision
that controls should be removed ir
part of the South Dakota county.
Senator Mccarthy said that il
Mr.. Creedon continues to follow the
recommendations OF local boards. 81
would have no objection to extend
ing rent controls" beyond next
February.
Favorx Local Decisions.
But if the program is not goine
to be run on that basis he added
then I would oppose any exten.
sion"
, AS for the Louisville boards rec.
ommendation, Senator Mccarthy
said:
Il don't know whether it was wiss
or unwise, and l don't much care
The important thing is that it wa!
made by local people. If it wa,
unwise, the people of Louisville car
correct it by appealing to the Gov
ernor to make changes in the board.
United Industrial Associates, Inc.
Washington research and develop
ment consultants, said in surve!
that if rents go up in line with
housing prices and costs" q larg,
number of renters will try to buy
homes.
But it said there is little prospect
that housing prices will come dowr
greatly even If rent control is elm.
mated or rents 60 up substantially
next year.
VFW Urges Direct Loans.
The organization reported rents
have increased about 10 per cent
over the prewar level. whereas hous-
ing construction costs have gone
UP So per cent and the prices OF
houses 130 per cent. 1t said housing
prices have risen more than those
for food, clothing, fuel or other
major items in the cost of living.
To help get more houses for vet
Grams, the Veterans of Foreign
Wars suggested yesterday that the
Veterans Administration m ak e
direct home loans The VFW said
in statement the idea would be
recommended by its housing officer
Wesley Pearce. to its now housing
committee meeting here over the
week end.
Mr.. Pearce estimated direct loans
by VA, which now only guarantees
private loans to veterans. would re-
quire appropriations of $40, 900 .000,
900 over 20 years But he said the
Government might break even OF
show q profit
President Truman 10 See
ll. fll