Evening star., 1950-03-16
House Fight Scheduled
On Coop Housing
After Senate Defeat
BY J. A. O'LeoY

A last ditch fight is due in the
House next week over the admin
istration's plan to encourage CO.
operative housing ventures, which
went down to defeat in the Sen
ate yesterday, 4S to 38.
Representative Wolcott of Mich
igan, ranking Republican on the
House Banking Committee, said
today he would oppose the CO.
operative housing plan in that
body on the ground that it is in
f1ationary and would encourage
overeXpansion of credit.
A conservative coalition knocked
the entire cooperative section
out of an omnibus housing bill for
continuing and expanding the
Governments home construction
financing programs.
The rejected section was de-
signed to carry out President Tru-
mans recommendation to lower
the cost of housing for middle
income families by having the
Government give special financing
terms to co-ops.
Passage Doubtful.
The Senate bill proposed to set
up a new National Mortgage
Corp. with authority to lend CO.
ops up to 81 billion at an interest
rate of about 3 per cent for so
or so years. The main argument
which beat the plan was that it
would discriminate against indi-
vidual applicants for Government
backing. who pay more than 4
per cent for Is or 80 years.
The House has on its waiting
list a similar bill, but whether
the administration can recover
from the blow dealt this part OF
the Truman program in the Sen
ate appeared doubtful today.
Senator Sparkman, Democrat
Of Alabama, pointed out, however
that if the House should approve
the cooperative plan it could be
fought out in the Senate again.
1--WE need only change three
votes-or get more Democrats on
the f1oor-to win" said the Ala
baman.
13 Democrats Oppose Plan.
In yesterdays showdown Is
Democrats, mostly from the South
Joined 80 Republicans to kill the
coop plan. The motion to strike
it from the bill was made by Sen
ator Bricker, Republican, of Ohio
Only 6 Republicans voted with 81
Democrats for it.
Two liberal Republicans-Sena
tors Ives of New York and Tobey
Of New Hampshire-tried to re-
store a watered-down version OF
the cooperative section. The ad-
ministration forces adopted an all
or-nothing policy, however. and
voted in droves against the substi-
tute. "@Tta 7-' '.'a'.f,~'tr F-t.'
The Ives-Tobey amendment
lost, 66 to IA. It would have au-
thorized a direct government out
lay of $40 million to help co-ops
plan their housing projects. but
without the long-term loans at
special low interest rates. ....
Chairman Maybank Of the
Banking Committee tried to head
off defeat in mid-afternoon by
drafting an amendment to require
not less than 4 per cent interest
A moment before the vote was
taken, however, he withdrew his
amendment, apparently with the
thought of offering it later if the
section remained in the bill. After
the Bricker motion carried the
fight was over.
The House bill contains the
Administrations original figure of
81 billion as the amount the new
mortgage corporation could lend
to co-operatives. The Senate Com
mittee cut this figure in half be-
fore reporting the bill.
Senator Douglas, Democrat, of
Illinois. took the floor yesterday
to answer the opposition argu-
ment that co-operatives should
not have any special concessions
over other Home builders or pur-
chasers who get government
insured mortgages.
Quotes New York Official.
The Illinois Senator said the
trouble with that argument is
that the co-ops would have to get
their insured loans through pri-
vate lending agencies. He said
those agencies do not like to en-
courage the cooperative move
ment.
In defending his substitute
Senator Ives quoted New York
State Housing Commissioner Her.
man T. Stichman as saying that
extending the mortgage period to
co-operatives to SO or 60 years
would not cut total actual costs
but would make them still higher
so far as the man paying the bill
is concerned"
The other portions of the bill
which passed without contest
extend and liberalize existing fea-
lures Of the Governments mort
gage insurance programs, includ-