The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-02-23
Privofe Profit Builders Misuse
Facts To Block Coop Housing


case for the middIe-inc0me coop
housing bill, answering point by
point the attacks on it by mort
gage investors and private profit
homebuilders, has been turned in
to the Senate Banking committee
by a subcommittee which studied
the proposal. The subcommittee, by
a five-to-one vote, has approved
the coop bill, but full committee
approval has been delayed, on the
argument Of Senators Fulbright
Cd, Ark.) and 3ricker OR, Ohio)
that it might be "inflationary."
Indirectly, the subcommittee re-
port deals with this. 1t points to
the danger Of declining homebuild-
ing, rather than too much home
building, and says the middle-in-
come family is being priced out Of
the market at present.
Directly, the report meets and
answers, with facts and tables, the
claims Of the anti-co-op forces.
Opposition witnesses" engaged in
a "misuse of statistical data" when
they claimed there was no housing
shortage for middle income famil-
les. At the same time they claimed
there was plenty Of lower-cost
housing being built, the report
points out, "these same witnesses
and other representatives of the
various segments Of the home
building industry" are urging that
T d ere ! mortgage underwriting
ceilings be raised by another $1,000
thus making it likely that homes
will cost $1,000 more than at pre-
sent high prices.
Here are the questions, and ans
wers, in the report made public
Feb. Is by Chairman John Spark
man Cd, Ala.) for the subcOmmit-
tee:
lis the coop housing bill fin
sound? 1t Combines the
best features gained in the course
Of more than Is years experience
with the Federal Housing Admin
istratiOn and the federal home loan
Of our successful means
Of governmental assistance for pri-
vate enterprise in housing" The
subcommittee adds: at seems hard
y necessary to point out that the
FHA system is not regarded as
Socialistic or communistic or econ
unsound, nor are there
generally applied to the FHA sys-
tenn any of the other hobgoblin
terms which some of the opposi-
ion witnesses have sought to ap-
ply to the Maybank amendment"
As for the debentures which would
De issued by the coop mortgage
they would represent
4 sound and profitable investment
,or life insurance companies, banks,
Investment portfolios, and similar
.ypes of investors"
2-Is there a need for more
for families with incomes
$4,000 and S4400 a year
"middle-income families")? Con-
rary to the claims of the private
builders and mortgage investors,
he subcommittee finds that for the
country as a whole, "only about 25
'er cent of the A-underwritten
entail units during the first six ,
months of 1949 were scheduled to :
ent for less than $40 a month, and 8
My "a per cent were scheduled TO 2
ent for less than $50 a month
families can afford
o pay about SEQ a month. Most \
f these units renting under $50
we're efficiency units having no
eparate bedroom, or one-bedroom
nits, not suited at all to families
Nth children" Continuing produc
ion of such housing is not social
Y desirable" and in addition may
esult in a decline in housing pro-
uction, with its resulting depres-
i've effect on employment, pro-
uction and purchasing power.
3-How much can be saved by
under terms of the coop