Evening star., 1950-02-26
Rent Control Funds Restricted
By Senate Committee to Needs
To Close Agency by June 30
Action Is Expected
To Make Extension
For D. G. Unlikely
By J. A. O'Leay

eral rent control on June 80 was
taken yesterday by the Senate
Appropriations Committee.
The committee not only cut 81
million from a s3.6 million def
cheney estimate for control ma
chinery, but made the reduced
amount available only to pay the
terminal leave of the 1000 en-
ployes handling Federal control
under Housing Expediter Tighe E.
Woods.
If passed by the Senate and ac-
cepted by the House, this directive
will be equivalent to notice that
Congress is not planning to extend
the rent law beyond its present
June 80 expiration date. Limiting
the new appropriation to terminal
leaves makes it a fund to liquidate
the rent control organization.
District Not Directly Affected.
The District of Columbia is not
directly affected by yesterdays
committee action. because Wash
ington has its own separate rent
law. The District could be af-
fected indirectly. however. The
District rent law also expires June
80, and a decision by Congress
not to extend the Federal act
could make it harder to get action
on any extension here.
President Truman recommended
extension of Federal rent control
for another year in his state-of-
the-Union message in January,
but comments of Senators who
were available yesterday indicate
strong, though not unanimous.
sentiment for leaving the problem
to State and local authorities from
now on.
The 1s49 law provided four
ways in which localities could get
out from under Federal control,
and the Senate Appropriations
Committee was told recently that
between April. 1949,, and January
26, 1850, a total of 703 decontrol
actions were taken, affecting g.
916,0o rental dwelling units.
1900 Workers Already Dropped.
Federal officials testified there
are 353 areas, with II million rem
tai units, still under national rent
control. They told the Senate
Committee $3,6o0,OO0 was the
minimum needed to administer
the Federal law from now until
its expiration date.
The Housing Expediter's Office
already has dropped 1900 en-
ployes under the present law, and
the Senators were told that if the
full estimate of s3.6 million had
been allowed, about $50 more
would be dropped between now
and June 80. That would still
have left about $3.50 employees in
the agency in the event Congress
decided to extend the law another
year.
In the recent hearings Senator
Gurney, Republican of South Da-
kota, asked if the $3.6 million
would take care of the terminal
leave requirements in case you
close UP on July II"
mo, sir" Expediter Woods re-
piled, and his deputy, John j.
Madigan, added. There is no
liquidation in this figure"
Converted to Liquidation Fund.
A few days ago an Appropri-
ations Subcommittee tentatively
approved the $3.6 million figure
without restrictions. When the
first general deficiency bill of 1850
went before the entire Senate APP
preparations Committee yesterday
morning, however, it was con-
verted into liquidation fund, and
trimmed by 81 million.
The deficiency bill, carrying a
total of $749,379, 100, will be taken
up in the Senate Tuesday or
Wednesday. The way the Senate
lines up on the liquidation direc-
tive will indicate whether the adj
ministration has any chance of
getting through later another ex-
tension Of Federal rent control.
Most of the money in the de-
ficiency bill is to expand the ia
cilities of the Atomic Energy
Commission and the Tennessee
Valley Authority. and to keep vo-
cational training benefits going to
war veterans. The Senate Com
mittee approved these items as
they came from the House.
Chairman McKellar of the
(See RENT CONTROL, Page A-5.)