Evening star., 1962-11-21

production OF IA million hous-
ing units in 1852, the possible
loss" figures would be one mil
lion man-years Of employment
and s6 billion in gross national
product, the association said in
a news release.
Applying the "multiplier ef-
feet" factor would, an associa-
ton spokesman said, set the
loss figure at close to $l2 bill
Ion.
The association was not able
to make comparable estimates
under an assumption that the
order would be limited to FILA
and VA loans, an official said.
A total of 398 builders said
they had had actual experience
in open occupancy" home
construction.
OF these, 173 said an execu-
tive order, covering FILA and
VA loans, would not change
their construction plans; 100
said they would cut back; five
builders said they would in
crease construction and 30 did
not answer the question.
Fears Sapping Of VigOr
Today, the president of the
National Association of Home,
Builders, Leonard L. Frank,
said:
I'VE fear the health Of the
homebuilding industry may be
sapped by the executive order.
Any diminunition of home
building vigor, of course, will
hurt other arteries Of the Ma
tion'S economy.
"The White House apparently
arrived at conclusions other
than those found in the survey.
For the economic and social
welfare of the country, we
would hope that the Presi-
dents assumptions prove cor
rect"
The home builders report
drew sharp rebuttals from sew
eral groups, including q reply
from the National Committee
Against Discrimination in
Housing.
In a letter to President Ken
nedy, this group said the home
builders report:
Is. is neither objective nor
scientific, and is in fact mis-
leading in its statements and
unfounded in its conclusions"
Among the "glaring weak
nesses" cited by the anti-dis-
elimination committee were:
1. A definite Southern
bias" OF those who responded,
a disproportionate IS per cent
were from the South. And, the
committees letter added, more
than one-half of the respond
ents who said their plans would
be adversely affected were from
the South.
Some In Covered Areas
2. The survey showed cut
back predictions by builders
who are living in areas already
covered by State and local anti
discrimination regulations. Ex-
amples given were the construc-
ton reduction statistics from
San Francisco (from 10 per
cent of the responding build
ers); Los Angeles t38 per cent?;
New York GAS per cent?; and
Pittsburgh (36.7 per cent?. En-
actment Of relatively stringent
anti discrimination regulations
brought no reduction in new
construction and general real
estate activity in these cities,
the committee said.
8. Predictions Of cutbacks
under a White House directive
covering FHA and VA housing
exceeded the use these same
builders had made Of this Gov
ernment- assisted financing.
4. Those who answered the
QUESTIONABLE predicted sharper
reductions by other builders
than by themselves, which is
"a typical emotion-based REL
sponse."
5. The home builders asso-
ciation drew its conclusions on
the basis of small, spotty re-
turns" Examples: 20 builders
responded in Los Angeles, SIS in
New York and SO in st. Louis.
In its report, the home build
ers association said that there
is a latent but important ques-
tion concerning the possible
relationship of respondents
varying degrees of emotional
reaction :"
Urban League Challenge
The National Urban League
also challenged the findings of |
the home builders association.
The league said the executive
order would be expected to have
a favorable impact on the
housing industry. The league
lsaid:
"On the basis of sound eco
nomics, no industry can sur
Ivive a dual distribution system |
which includes restrictive prac-
tices and at the same time,
automatically exclude one
tenth of the population.
/ "a common market is Just
as necessary for healthy econ
! omy in the housing industry as
a common market is necessary
for a healthy international
economy"
Locally, on orders Of Com
missioner Walter N. Tobriner,
the Districts legal staff has
drafted regulations designed to
knock down racial housing
bars in Washington.
Majority of Negroes
Washington is the only ma
jor city in the Nation where
: there are more Negroes than