Evening star., 1948-11-21
Materials and Labor
Expected 10 Sustain
18 Billion in BUILDING
BY the Associated Press

10 DIlIlOn iii DuIIullly
BY the Associated Press
Materials and labor enough to
sustain the building boom by pro-
viding s18,100,0 100000 worth of new
construction In 1949 were foreseen
last night by the Producers Coun-
Gil. Inc.
The National organization of
building supply manufacturers is
sued its forecast as the Government
reported these housing develop
ments:
/. The new Federal yield insur-
ance" program, intended to attract
large-scale investors into the moder-
ate-rental housing field, was set in
motion by the Federal Housing Ad-
ministration.
2. The Office of the Housing Ex-
pediter, ploughing through COM
plants of overcharges and other
violations on $4,000 priority-built
veterans homes, forecast completion
of its job by April. A total of $15,-
000, 900 in allegedly improper charges
Is involved.
"Ample" Materials Forecast.
The Producers Council said most
materials will be ample" for the
$18,100,000,00 worth of new build
ing and s7,oO0,OOO0 900 worth Of re-
pair and maintenance work FORE
cast for next year.
This would mean a volume of
building, of all types, about equal
to this years, with a possible drop
in housing construction but an in
crease in highway and other public
work jobs. A Commerce Depart
ment industry committee has esti-
mated that this years dwelling con-
struction will run to 100000 units,
including farm homes.
In iron and steel, the councils
estimate said, "The outlook is COM
plicated by the unknown extent
and character of the defense pro-
gram" But the report added:
Unless the armament require
ment Is much over that now antici-
pated, iron and steel products should
be at least as plentiful for construc-
tion as has been the case during
1948."
More Millwork Expected.
The council predicted that sash,
doors and other millwork should
be much more readily available" /"
gypsum items should definitely be
"off the shortage list, and dealers
should be able to offer "selectivity
and prompt delivery" on other items,
1t said.
Cement may remain tight, the
council said, because of the expected
rise in highway, bridge, dam and
public building construction and the
Supreme Court decision which upset
the cement industry's "basing point"
system of pricing.
The extreme tightness OF the
labor supply, which has made pre-
MUM and overtime payments
feature of the construction picture
since the end Of the war, should
be much eased during 1949," the
council said.
"The continuance of a large vol
ume of construction plus some In
roads on the labor force by the dra1t
should, however, prevent any sur
plus Of labor from arising.
Investors Invited.
The Federal Housing Adminlstra-
ton invited interested investors,
meanwhile, to open negotiations AZ
anv FHA field Office for the con-
strlction of mass-housing rental
projects for families OF moderate
income"
Rules were issued under which
insurance companies, investment
trusts and other large investors may
qualify for u OBSERVATION-DISCLOSURES
teed profit of 2A per cent a year
on such projects.
To qualify for this yield insur-
snce," the prospective investor must
prove his project to be economical
" sound" and must charge rents
not exceeding an average OF SloO a
month for the entire project. Rents
on some units may range up to Sl20
If other units are correspondlngly
lower.
Heat and other services must be
included, and families with chldren
may not be barred.
Approved by Congress.
The program was approved by the
special session of the 80th Congress
last summer. It is a liberalized ver-
sion of a similar Yield insurance
plan in the 1946 veterans housing
program" which failed to attract
many investors.
The Government now Is well
launched on its drive to clean up
price violations on priority-n built
housing erected under the original
veterans housing campaign,
spokesman for the once Of the
Housing Expediter reported.
Builders who charged veterans
more than the FHA-approved
prices, or built less house for the
money than agreed, have made
0639, ,816 on 2,532 dwellings,, tne
spokesman said.
Complaints Referred to Courts.
Complaints on 1886 more dwell
ings, involving alleged overcharges
of s2030,240, have been referred to
the courts. Out-of-court settle
ments involving 2,138 units and
1885 .482 are now being negotiated.
In addition, preliminary investi-
cations have been completed on
1854 cases involving $1,869,010
and the housing eXpediter has ac-
cepted jurisdiction Of another A.
500 cases..
A three-fold increase In the last
month in the number of investiga-
tions completed was reported. 1t
results, the spokesman said, from
the use of funds by Congress to hire
and train some 300 investigators.
Complaints from veterans still
are coming in at the rate of about
1000 month, the spokesman
reported, even though thOSnumber