Evening star., 1948-12-05
Public Housing Program
To Affect Building Costs
TEW Bill Seen Aiding Some Workers
at Expense >of Others
By Gerard d. Reilly

In view of President Trumans repeated jibes
at the Eightieth Congress for its failure to
authorize a public housing program, 1t has
been taken for granted that the new Congress
would speedily enact the Taft -Ellender- -Wag-
ner bill This Is the measure which passed the
Senate last year, but which the House leader
ship refused to bring to the floor for vote
until the public housing and. slum clearance
features were eliminated.
The defeat Of the title containing these pro-
visions was largely due to some effective behind
the-scenes work by an alliance of interests
representing the residential construction indus
try, private home loan banks and real estate
brokers. Now that the proponents Of the legis-
lation have the votes to put it across, however
sober-minded administration advisers are won
dering whether this bill is real solution to
the problem of the housing shortage -
The bill contemplates the construction with
Federal funds of $50 900 rental units for FAM
lilies in the lowest income brackets. It is some
what of a misnomer to call these units low-cost
housing projects, however.
What is actually proposed is scheme for
subsidized low rentals, The intention is to
have these multiple dwelling units built by
contractors at prevailing union rates.. The
cost Of construction consequently would not be
appreciably lower than would be the case If
such construction were financed with private
capital. The craftsmen Of the bill recognized
this by including section authorizing sub
sides to insurance companies and other corp
orations which are willing to build large scale
housing projects which will then be rented at
rates far below fair return on the investment
Advocates of public housing have long
pointed out that the high cost of building ma
terials. urban land and labor makes it impes-
sible for the lowest wage earners in factory or
clerical occupations to obtain decent housing
for their families without some form Of public
subsidy. Last>year they were able to convince
Senator Taft and majority of the Senate,
therefore, that intervention by the Federal
Government was essential. So long as the
hlgn cost OF housing persists 1t Is inevitable
that measures of this sort will command the
support of enlightened legislators. Unfortu-
nately, however, such bills do not 20 to the
real heart Of the difficulty. 1t is not only the
poorest class but all the middle-income groups
which are suffering today from inflated hous-
Ing prices. And there is real danger that
with the continuing scarcity of labor and ma
terials, the huge Government appropriations
which the bill authorizes will tend to drive the
cost OF private dwellings still higher. Some
members OF the Federal Reserve Board are
eA'NA' SSAASeiA1eo Wy 1ilS proSpSct.
As result Of the home mortgage guaranty
functions Of the FILA and the loans made by
the Veterans Administration under the serv-
icemen's Readjustment Act Government credit
IN the private housing field Is already being
strained. Optimistic appraisals by the agencies
IN charge have not only accelerated the infia-
uonary trend in the prices of new houses but
have involved the Treasury in risks inconsistent
with prudent banking policy. =
In a country with such an abundance of
engineering skill as ours it is a paradox that
the public has put up for so long with the
archaic handicraft methods characteristic of
the home building industry. If mass produc-
tion methods were applied in this field, there
would be no reason for a modest dwelling house
selling for 10 times as much as an automobile
or 100 times as much as a radio or washing
machine.
The reason why the professional champions
OF public housing have failed to grapple with
the problem of undermining the industry Is
apparently largely political. ANY effective step
in this direction would involve tremendous use
OF prefabrcated materials and more impor-
family, the abolition of the od-fashioned craft
system among the workers on the site. The
closed shop practices which now exist among
the crafts have produced an obsolete apprentice
system and an artificial scarcity of workers
But since any such reforms as these would
be bitterly resisted by the AFL building trades,
most public thousers fearing to be smeared as
antilabor have SHE'D away from any funda-
mental program E,