Evening star., 1950-03-22
Truman Pleads
For Housing Bill,
Near Vote Today
Telegram to House
Stresses Need for
Mid-Income Homes

President Truman made a last
minute plea to the House today to
save his cooperative housing pro-
gram for middle income families.
which the Senate already has
turned down.
Amid strong indications the
House also may reject it when vot-
ing starts this afternoon, the
President sent a telegram from
Key West, renewing his belief in
the need for this new form Of
Government housing aid.
The Senate defeated the CO.
operative plan even though its
hackers had cut the original
amount of such housing to 81 bill
lion. The House bill still contains
the original So billion overall limit
on loans to co-operatives. Tho
loans would not be made directly
by the Government, but the bonds
of the proposed new mortgage
agency would have Treasury back
ing.
Truman Emphasizes Need.
In his telegram to Chairman
Spence OF the House Banking
Committee, Mr.. Truman said:
There is still a large untitled
need IN this country for good
homes at prices which families
OF moderate income, particularly
those with children, can afford.
About a third of our urban fami-
lies have incomes in the middle
range between $4,000 and s4,4o0
per year. They are the backbone
OF the country, yet they cannot
pay the rental or sales prices now
being asked in most localities for
homes large enough for family
living.
"They are not in need OF and
certainly do not want public as
sistance or Governmental sub
sides in meeting their housing
problems. It is important that
other measures be devised to per.
NIT them to live in decent hous-
ing and to realize their dream Of
owning their own homes"
viii Stimulate Ownership.
The President called the House
bill "a well-thought-out measure
that will go far to meet these
needs" He said the cooperative
feature will stimulate home
ownership" by reducing the cost
| of financing and construction.
The chief argument which beat
the plan in the Senate was that
it would discriminate against vet
Grams and other individuals who
have obtained FHA mortgage In
surance at more than 4 per cent
for Is or 80 years. The pending
plan would enable co-operatives
to finance the new middle income
houses over go years at an in
terest rate fraction above 3
per cent.
Mr.. Truman argued today. how
ever, that the cooperative bill
would be "of particular value to
those of our veterans who are
still seeking adequate housing,
and who should not be required
to pay an excessive share Of their
income in order to obtain it. Tho
bill will enable many citizens Of
moderate incomes to acquire
homes through their own COM
bined efforts. without government
tai subsidy"
Expands Existing Programs.
The Treasury would put up the
first 500 million capital for the
new lending agency, to be retired
as the co-operatives invested
their capital in the agency.
The bill also extends and ex-
pands existing Government hous-
ing programs, which the Senate
passed and the House is expected
to approve.
In closing, the President said
the House bill offers great bene-
fits to the country which tram
scend any partisan considerations.
I hope the House of Representa-
tives will act favorably on it."
Meanwhile. Of more than 100
Democrats checked by a backer Of
the proposal. the score for and
tSee HOUSING, Page A-4.)