Evening star., 1951-08-21
Flood Insurance Plan
Asked by Truman in
NOMiIIion Relief Plea
BY the Associated Press

ElColucu6 1Iuuldn mas asked
Congress for $400 million to help
the flood-battered Middle West
and to finance a new national
flood disaster insurance program
He told Congress in a message
last night the situation was a
grave emergency" and asked that
the money be provided as quickly
as possible.
Vice President Barkley promptly
referred the request jointly to the
Senate Public Works and Appro-
priationS Committees to speed ac-
ton. Ordinarily each would study
the matter separately.
The relief money would be used
to pay flood victims of Kansas,
Missouri and nearby States for
part OF what they lost in the July
floods; to guarantee liberal loans
for rebuilding homes, farms and
factories, and to help States and
cities participate in the rehabilita-
ton activities.
Funds for the new insurance
program will help fill "the lack of
a national system of flood disaster
insurance (which) is now a major
gap in the means by which a man
can make his home, his farm, or
his business secure against events
beyond his control" Mr.. Truman
said.
Fund Biggest Of Type.
White House aides said the $400I
million-16 times more than the
$25 million already appropriated
by Congress for Midwest flood re-
lief-is probably the biggest in the
history of American disaster relief
But Mr.. Truman said the flood
is the biggest in that regions his
tory, too, and this amount is
needed to rebuild an area of vital
Importance to the Nation as a
whole.
I'VE are now engaged as Ma
ton in a struggle for survival,
and We cannot afford to dispense
for long with the industrial and
agricultural production that came
but is not now coming from the
flooded areas" he said.
He said flood losses have passed
the So billion mark-$1 billion in
physical damage, 81 billion in in
come loSS-and may grow higher
when all counts are in.
In his special message, Mr.. Tru-
man recalled his flying visit to the
flood areas shortly after disaster
struck. He said he wished each |
member of Congress could have
been along.
He said one of the richest farm
areas in the world had been devas-
tated and that the mobilization
program needs products from the
factories of that area.
Mr.. Truman emphasized that
the relief program will be carried
out by Federal, State and local
governments acting jointly. He
said much already has been done.
but large sum of money is needed
quickly.
The President asked speedy ap-
proVal of the $400 million to:
/. Pay flood victims for a Dor
ton" OF their loss of real and
personal property.
2. Make and guarantee loans on
liberal terms for building homes
and businesses to replace those
destroyed.
g.. Help farmers drain and re-
habilitate their land, replace
buildings and restore the produc-
tive capacity of their farms
through on-farm assistance and
loans.
4. Permit loans where necessary
to let State and local govern
ments participate in rehabilita-
ton activities.
S. Provide funds to establish
national system of flood disaster
insurance.
Special Administration Planned.
He told Congress he expects to
set up a flood disaster admins
tration" to operate under present
Federal and State agencies.
Mr.. Truman said his loan rec
concentrations are not new. but
will simply boost available funds
and cut red tape.
Earlier in the day, House
Speaker Rayburn said after a
White House conference he
thought Congress would give
prompt consideration to the Presi-
dents appeal.
Senator HenningS, Democrat, of /
Missouri, and Representative Boil
ing, Democrat, of Missouri. are
urging that the Federal Govern
ment finance most of the relief
and restoration work. Mr.. Boiling
terms the program "a Marshall
plan for the United States" They
were among those called to the
White House yesterday to consult
with Mr.. Truman on the draft of
his message.
President Criticizes States.
In st. Joseph, Mo-, Mayor
Stanley I. Dale made public a
letter from President Truman in
which the latter said the State
governments of Missouri and
Kansas have done absolutely
nothing" toward rehabilitation of
f1ood-damaged areas.
The President wrote:
Il have been making all the
contributions possible to meet the
emergency caused by the flood in
Missouri and Kansas.
"One of the difficulties I have
been confronted with is the State
government of Missouri and
Kansas. which have done abso-
lutely nothing toward that re-
Mobilization.
The letter, received yesterday,
was in response to a telegram
from the Mayor.