Evening star., 1950-03-23
Coop Housing Dead
As House Sends Bill
To Joint Conference
By J. A. O'Leory

1--WE housing plan Tor middle
income families was killed by the
House late yesterday, 218 to 1856.
The Senate already had turned it
down, 43 to 38.
The rest of the 1850 housing
bill, continuing and expanding
existing Government backing for
private home financing, won House
approval, 361 to 10, and is on its
way to a joint Senate-H House Con-
ference Committee.
AS approved by the Senate last
week, these other features involve
added Government obligations of
about $2.6 billion. The House
version adds up to about 81 billion.
The conferees probably will COM
promise.
President Truman wired last
minute plea for his cooperative
program from his Key West va
cation headquarters yesterday,
but it failed to overcome the op-
position.
Mccormack Shouts at House.
In the closing furry of debate,
Majority Leader Mccormack
warned the coop plan would be
an issue in this years congress
sional elections. He shouted:
"You may fool the public today,
but not next November. This
is going to be a live issue-an
issue which I hope will be used
advantageously next fall"
The roll call. however, showed
81 Democrats lined up with 1877
Republicans to kill the program.
Thirteen Republicans and one
American-Labor member joined
141 Democrats for the plan.
The motion to strike out the
coop section was made by Rep
resentative Wolcott, Republican,
of Michigan, but without substan-
tial support from conservative
Democrats it would have failed.
Allowing for the 13 Republicans
who supported co-ops, the admin
istration suffered a net loss of SO
votes on it's own side.
Second Setback in Month.
1t was the second setback for
liberal forces in Congress this
month. Earlier, the Federal aid
to-education bill was sidetracked
in committee for this year.
In both the Senate and House
the cooperative plan was beaten
on the argument that it would
have Disseminated against vet
Grams and other individuals who
have financed their homes through
existing Government programs.
In original form the coop Sec
ton would have allowed an inter-
est rate of about 3 per cent, to
run from so to SO years. The
opposition argued that when in
dividuals get Government-insured
housing loans they pay more than
4 per cent for 25 or 80 years.
New Agency Had Been Planned.
The administration proposed to
set up a new agency to be known
as the National Mortgage Corp. to
make the loans to co-operatives.
The Treasury would have put up
the first 800 million of capital,
to be repaid after the rest of the
capital was subscribed by the
public. The agency could have
issued 50 billion of Government
backed debentures to finance
housing facilities for families in
the $4,000 to $4,400 income brack-
cts. The Senate bill limited the
loans to 81 billion.
In an effort to save the COOP
principle, administration forces in
the House yesterday offered tt
cut the lending limit to $500 mil.
lion and raise the interest ratt
to ~ per cent, but the House
beat both moves. --
Other sections of the bill which
the House passed provide:
l. A $2,750,00o,000 increase il
the present system of Govern
ment insurance of housing mort
cages through the FILA. TIL
Senate, after it. too, rejected
co-ops, passed a bill providing
$1.750, 100000 expansion of thi
insurance, which is intended t.
encourage the flow of private cap
ital into home construction. TIL
two branches now will iron ou
the differences.
Mortgage Buying Halted.
2. An increase by $3.50 million
In the Federal National Mortgag
Associations authority to purchas
home mortgages from privat
lenders. The present $2.5 billiol
authority for this purpose is abou
exhausted, and the Government
yesterday called halt in this pro
gram until more funds are avail
able. The Government, througl
this program, buys mortgages tina
private lenders already have mad
on homes so that these lender
will have more money on han
for loans on new housing.
3. Added $500 million authorit
to insure mortgages on large-seal
rental apartment projects. Appli
cations for this insurance NOR
than exhausted available fund
early this year although the lay
did not expire until March I.
4. An increase in the amortiza
ton period of CT home loans, from
Is to 80 years. Chairman Spenc
of the House Banking Committe
said this would reduce the carry
ing charge on an $4,000 CT hom
by 81 a month.
5. A plan for disposal of 389, 90
units of Government-built war
time housing under the program
authored by former Representa-
tive Lanham, Democrat, of Texa.
This housing was built to reliev