Evening star., 1948-02-26
0'NeiI Calls for Slash
In Home Loan Interest
Rate for Veterans
By Robert J. Lewis
.ReuI E,,afs EDITOR "a Ih. stor

ONeu, u6ClOIldl COultu6uQcT Oh Tic
American Legion, today told the
closing convention session of the
National Association of Home Build
ers that interest rates on veterans
home loans should be lowered to z
or az per cent, and called for con-
tinuation Of rent controls.
Mr.. O'Neil urged enactment of the
Legion's homestead bill, which he
said would permit borrowing by vet
erans' groups "at about half the
cost of current financing"
He said rent controls were needed
"lest the plight of veterans in re-
tanning or finding shelter for them
selves and families be further
aggravated"
The Legion head said the most
"acute rehabilitation problem con-
fronting veterans" was lack Of
housing. Noting the building rate
had sharply increased over the last
year, Mr.. O'Neil declared: "Our
current economy has placed these
homes beyond the reach Of the
average veteran with an average
income"
Interest Increase Attacked.
Coincident with the opening here
today of a two-day conference OF
the Mortgage Bankers Association,
spokesmen for the Nations home
builders protested against what one
prominent official termed "a con-
certed drive to increase mortgage
interest rates.
The home builders convention
is being attended by about SO
builders from the District Of Co
lumbia area
Making clear they oppose q rise
In interest rates, spokesmen for the
home building group contend q
higher interest rate would imperil
their goal for 1000, 900 homes year
for the next 10 years.
What 1t means Is higher carry
ing charges imposed on the already
high cost of building, making II
Just that much more difficult for
an average family to acquire q
home" one official said.
-. Sees Veterans Protest.
Milton j. Brock of Los Angeles
newly elected president Of the
home builders, declared:
~'If an effort to raise the mortgage
interest rates is pushed, the how
on the part of veterans to Congress
would make 1t impossible.
He said home builders want In
terest rates kept "as low as pos
sible,' .
Another high oficial Of the home
builders group, who preferred to
remain unidentified, said he had
heard that, Gin the halls of Con-
gress," home builders are being ac-
cused Of supporting higher interest
rates"
Nothing could be further from the
truth" he said. "Tf the proper steps
are taken to tap available sources
of money, there is absolutely no need
to raise rates"
Earlier this week, Joseph E. Meyer
hoff Of Baltimore, past president OF
the association, vehemently opposed
higher interest charges. N'''''''
Ranker$,to Discuss Funds: <''4
's~ Current trefIdswin availabiaisy~o1 OF
funds for mortgage loans and dis.
cussion of interest rates are high
among mortgage banking problems
to be discussed at the bankers ses-
sions. fEI S
Yesterday two veterans spokes-
men, addressing the. home builders
LWatspokts1ly sdecfis lack otslnpu-.
-erate-cost homes that veterans cal,
afford. - - ----..-~-~.
Milwaukee member of the Legion's
National Housing Committee, de-
clared:
Labor says nothing is wrong
The builders say nothing Is wrong.
But we wonder where are the houses
veterans can afford?"
Edgar C. CORY, jr., national
commander of the American Vet
Grams of World War II, was critical
of labor, builders, building materials
producers and city officials. who
ignore the need for revision of OBJ
solete or unnecessarily restrictive
building codes.
William j. Tobin, jr., director OF
the home builders labor department,
urged "all segments" Of the home
building industry to embark on a
national campaign to increase in
dividual productivity.