Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-09-10
Housing Probe
Told Building Is
FarShortofNee
Joint Congress Group
Questions Experts
At First Session

Although 100000 new homes
are being started in the United
States this year. that number
still falls short of the lowest es-
innate of need, Government off,
Gals told a joint congressional
committee today.
Senator Mccarthy, Republican.
of Wisconsin and Representative
Gamble, Republican, of New York
called a dozen experts from various
Federal agencies in for a round-
table discussion to lay the ground-
work for formal public hearings to
be held in different parts of the
country next month. Just before
adjourning, Congress directed this
Joint committee to make a compre-
hensive investigation of the housing
situation.
High Lights Of Discussion.
High lights of today's discussion
included:
The general index Of building
material costs in May OF this year
was II per cent above 1926, accord
ing to H. E. Riley, Labor Depart
ment statistician.
Lumber, taken separately, was 1859
per cent above 1926.
Raymond M. Foley, director of the
new Housing and Home Finance
Agency, told the committee that
estimates of the housing shortage
made in recent years by various
public and private sources range all
the way from 1,500, 900 units q year
for 10 years to $4,000 a year. The
latter figure of 10000 was described
as the market demand rather than
need.
Mr.. Foley said quantity estimates
taken alone do not give the whole
picture. The fundamental problem,
he said, still is the cost of production
and acquisition. He suggested that
the committee examine all factors Of
cost, including efficiency in construc-
ton and any restrictive practices
that may exist either on the part of
management, labor, financing or
Government control.
Uniform Codes Stressed.
Under the heading of Government
control. Senator Mccarthy stressed
the Importance of urging localities
to adopt uniform building codes that
would reduce cost.
In connection with the price Of
materials, Senator Mccarthy said
some large builders have told him
there was no particular advantage
in buying lumber directly from q
distant mill, because part Of the
margin would go to a retailer and
a wholesaler who had not seen or
handled the shipment.
Senator Mccarthy inquired
whether legislation would be ad-
visable to regulate the margins OF
middlemen where they do not per-
form a substantial service, assun1-
ing the committee finds such prac-
tees exist. One official expressed
the belief that the distribution pat
tern has been built up over a long
period of years and would be diffi-
cult to change by legislation.
Mr.. Riley told the committee a.
600 dwelling units were started in
July, as compared with 77,000 in
June. He indicated this was un-
usual, since the peak in beginning
new construction usually occurs
earlier in the year.
At the same time the recess quiet
at the Capitol was broken by these
simultaneous developments:
/. A special tax study committee,
appointed by Chairman Knutson OF
the House Ways and Means Commit
tee, came to town to hear reports
on subcommittee studies that may
go a long way toward determining
what future tax burdens will be.
This group of private citizens Is
headed by Roswell Magill, former
Undersecretary of the Treasury.
Study Covers All Phases.
Mr.. Knutson, the top Republican
tax manager, already has an
nounced the COP will renew It's
drive in January to cut individual
income taxes, and that the slash
may exceed the $4,000, 900 900 figure
twice vetoed by President Truman
earlier this year.
The studies of the Magill group
are covering all phases of taxation,
Including individual and corpora
ton income levies, all business
taxes and excuses. Mr.. Magill sup-
ported the vetoed tax cut bills.
2. Senator Flanders, Republican,
of Vermont sent out a call for a
meeting here tomorrow of members
of the Eastern subcommittee on
economics. This group and similar
Senate House subcommittee for the
Ridcontinent and the West will in
vestigate the causes of and possible
cures for high prices in general.
The Eastern group will open its for
NAL hearings at Providence, r. l.,
Monday.
The 14-man Housing COMMITTEES
!. is headed by Representative Gam
BILE. Mr.. Gamble was assigned the
Craftsmanship after hot fight for
the post waged by Senators Nc
) Carthy and Tobey, Republican, OF
New Hampshire.
! In announcing plans to question
the seven witnesses together rather
than one at time. the Wisconsin
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