Evening star., 1950-11-01
Easing ofCurbs
On Construction
PIeases Builders
New NPA Order Ends
Threut of Stoppoge
| OfProjects Underway
By Robert J. Lewis

The construction industry was
''gratified" and mortgage lenders
also were pleased today over the
National Production Authority's
action in lifting it's threat to stop
construction of certain building
projects in midterm if defense
needs warranted such action.
The Federal agency yesterday
revised" its order effective last
Thursday which prohibited all
construction and
which warned that any other
construction faced stoppage by
the agency if such construction
was not deemed necessary in the
interest Of national defense.
New Projects Unchanged.
Yesterdays amendment of the
order, said William H. Harrison.
administrator of NPA, removed
altogether the threat that the
agency would halt construction
once it had started. The amend
ment left untouched the prohi-
bition against new amusement
construction.
In modifying it's attitude to
other than amusement building.
the agency said. 1T will be the
policy OF NPA to further limit or,
prohibit construction of addi-,
tlonal types of projects which do
not further the defense effort orI
increase the Nations productive
capacity when such action is
deemed necessary in the interest
OF national defense to minimize
material shortages"
The earlier warning by the
NPA said that any construction
started after last Thursday may
be halted, even though it's COM
mencement at the present time is
not forbidden by this order"
Contractors Protest.
Construction actually prohibited
by the Thursday order was speci-
ned as any building to be used
for amusement, entertainment
and recreational purposes, with
certain exceptions.
The general warning that other
projects, in addition to amuse-
ment projects, would be subject
to stoppage after they had start
ed. was attacked by the Asso-
clated General Contractors of
America in a formal protest
lodged with NPA by H. E. Fore
man. managing director of ACC.
The lending industry in this
area also reacted quickly to the
order. and indicated that the
warning was so broad that it
would strike at virtually all con-
structlon loans.
Mortgage bankers said it left
them "up in the air." since they
had no assurance that, if a con-
struction loan was made, prof.
jects representing their security
for loans would be allowed to
reach completion.
Under such circumstances. rep
resentativeS of lending institu-
tions said. few loans could be
made.
Latest Action Satisfactory"
In the absence from WASH
ington of Mr.. Foreman, a spokes-
man for the Nations organized
general contractors said the Or
ganization was "gratif1ed" that
NPA had modified the order and
that the Government action was
satisfactory to the industry"
There was ample indication
from District bankers and other
lenders, however. that, even
though the order had been modi-
fed. applications for construc-
ton loans would be looked at
more carefully than before.
ut would be fair to say that.
psychologically, lenders have been
considerably affected by the
one banker said.
Even though there has been g.
of the earlier NPA
attitude. mortgage lenders are 60
ng to be much more careful as to
the kind OF loans that will be
made because of the insight which
the earlier order gave as to Gov
srnment thinking in the matter"
One mortgage banker said that
while bankers would not have been
likely to lend virtually any money
at all under the former ruling.
Yesterdays amendment would
Justify us to consider, anew, ap-
olications for such types of con-
,truction.
Loan Chances Bettered.
THAT does not mean to say" he
added. that we will want to ap-
prove such applications wholesale.
ut merely means. generally
speaking, that a responsible maker
# a loan and q responsible build
II, with materials for the job in
light, will have a better chance to
'btain loan than if the order
lad not been amended.
At the same time, bankers in
Heated that long-term building
Projects probably would face more
liff1culty in obtaining financing
han projects which could be fin
shed up more quickly.
One mortgage lender pointed
ut that, under the new circum-
tances created by defense prep
builders and owners had
far greater responsibility than
efore in providing assurance that
materials would be available to
hem in any construction under
aking for which the! sought
Inancing.
chain Letters Cumpuion