The CHAIRMAN. It is not a subsidy in the sense that the Government will necessarily lose any money on it, because the Government can afford securities at a low interest rate and give these people the advantage of it. Mr. VOORHIS. That is right. The CHAIRMAN. Over a long period of amortization, that means a great deal, does it not? Mr. VOORHIS. Indeed it does. Indeed it does, and over the monthly charges it means a great deal, too. The CHAIRMAN. It means a great deal both in the cost of the home and in the rents that there will be? Mr. VOORHIS. Exactly. In fact, it is the most important single element that can be readily effective. I have a little pamphlet about cooperative housing in Sweden that I would also like to leave for the committee members, if I could.. The CHAIRMAN. Very well. If there are no further questions, you may stand aside, Mr. Voorhis. We are glad to have your views. Thank you, sir. Mr. VOORHIS. Thank you, very much. The CHAIRMAN. We will adjourn, to meet tomorrow morning at 10 o'clock. (Whereupon, at 12: 15 p. m., the committee adjourned to reconvene at 10 a. m., Friday, Feb. 3, 1950.) COOPERATIVE HOUSING FRIDAY, FEBRUARY 3, 1950 HOUSE OF REPRESENTATIVES, COMMITTEE ON BANKING AND CURRENCY, Washington, D. C. The committee met, pursuant to adjournment, at 10 a. m., Hon. Brent Spence (chairman), presiding. Present: Messrs. Buchanan, Multer, Deane, Mitchell, O'Hara, Wolcott, Talle, McMillen, Kilburn, Cole, Nicholson, and Mrs. Woodhouse. The CHAIRMAN. The committee will be in order. Mr. Frank S. Ketcham is our first witness. STATEMENT OF FRANK S. KETCHAM, ATTORNEY, COUNCIL FOR SOCIAL ACTION OF THE CONGREGATIONAL CHRISTIAN CHURCHES Mr. KETCHAM. My name is Frank S. Ketcham. I am attorney for Council of Social Action of the Congregational Chritian Churches. The Reverend Thomas B. Keehn, who was originally scheduled to appear before your committee this morning was unexpectedly called to New York. Accordingly, he asked me to appear on his behalf and present his statement. This statement is submitted in behalf of the Council for Social Action; an official agency of the Congregational Christian Churches. It represents only the Council for Social Action. In a democratic organization like the Congregational Christian Churches, no individual or group is empowered to speak for all members and churches. In May 1949, the Council for Social Action adopted the following policy statement : The Council for Social Action and the General Council of Christian Churches have approved the following general policy on a national housing program. We recommend the establishment of an adequate, comprehensive, national redevelopment and housing policy in order that every family may have the advantage of decent, safe, healthful shelter available within its economic means; and we specifically endorse public housing as a method, within the frame of the capitalistic economy, of achieving the aforesaid policy. The Council for Social Action supports in principle S. 1070 and H. R. 4009 as carrying out, in part, the purpose of this policy. These bills provide for a program of slum clearance, urban development and redevelopment, construction of low-cost housing, a housing research program and a new program of rural housing. We also support legislation to provide more adequate housing opportunities for the middle-income group. We favor nonsubsidized cooperatives, financed at a low-interest rate, to direct governmental loans to cooperatives. Church groups, as you know, have been vigorous in their support of public housing and an adequate program for rural housing, including agriculture labor. These are indispensible to a comprehensive housing program, but about 40 percent of American families, the middle-class group, actually include more of the constituency of our Protestant Churches. They have had no organized spokesman until recently. Now veterans' organizations, women's organizations, and churches, whose memberships cut across all classes, including many middle-class families, have taken up the cause of these neglected families. The council strongly supports legislation along the lines of H. R. 6618, to provide a means whereby good housing and well-planned, integrated neighborhoods, could be made available to families of moderate income. This would be achieved by furnishing technical and financial assistance to cooperative ownership and other nonprofit corporations. The technical assistance would aid in planning of projects qualified under the program and perform a consultative function on financing, development, construction, operation, and management. This assistance would also include the development of practical means for members of cooperatives to acquire ownership of their individual dwellings. Financial assistance to encourage cooperative housing should consist of, first, authorization for preliminary advances of funds to qualify projects for purposes of planning and performing work preliminary to construction. These advances would not exceed 5 percent of the total cost of the development and would bear interest not in excess of the going Federal rate plus one-half of 1 percent; $25,000,000 could be issued for this purpose. Second, creation of a national mortgage corporation for housing cooperatives to make and service mortgage loans for this project. For this long-term financing of cooperative housing the Secretary of the Treasury would be authorized to purchase stock in the corporation up to $100,000,000. These mortgage loans for periods up to 50 years would bear an interest computed on a special formula of approximately 3 percent. The Council for Social Action believes that such a program would provide a real stimulus to the morale of the middle-income, middleclass groups in the United States. If given sympathetic and intelligent leadership in the administration of the Housing and Home Finance Agency, it would reach into communities across the land and provide them with encouragement to move forward. The Council for Social Action has carried on a vigorous educational program to secure the interest and support for this program among church people. Among other things this effort includes an issue of the council's magazine entitled "Social Action," devoted to housing for the middle class. We believe that many of our church people would benefit from and take advantage of the kind of program recommended in H. R. 6618. Thank you, Mr. Chairman. The CHAIRMAN. We thank you very much. Mr. NICHOLSON. You say this is a Congregational Church that is endorsing this? Mr. KETCHAM. This is the Council for Social Action, an agency of the Congregational Christian Churches. Mr. NICHOLSON. What do you mean, "Congregational Christian Churches?" Is the Congregational Church a Christian church or not. Mr. KETCHAM, The proper legal name of the Congregational Church is the "Congregational Christian Church." Mr. NICHOLSON. I never understood it that way. I always understood it as the Congregational Church. Mr. KETCHAM. In different parts of the country some of the churches just use the word "Congregational" and omit the Christian part. Mr. NICHOLSON. And they have gone on record in favor of this bill on behalf of the Congregational Church in the United States? Mr. KETCHAM. Through the Council for Social Action, which is an agency of the Congregational Christian churches. Mr. NICHOLSON. How are they formed, the council? Mr. KETCHAM. It's members are elected by the General Council of the Congregational Christian Churches. Mr. NICHOLSON. Where do they usually meet? Mr. KETCHAM. In Cleveland and New York City. Mr. NICHOLSON. That is all. Mr. DEANE. Mr. Ketcham, does your organization subscribe to any policy of taxes on the cooperative? Mr. KETCHAM. No, sir. Mr. DEANE. What do you think the position of your council would be if they were to take formal action? Mr. KETCHAM. I would be inclined to believe that the Council for Social Action would be opposed to tax exemption for certain cooperatives. Mr. DEANE. What is your opinion on it? Mr. KETCHAM. That is my opinion. Mr. MITCHELL. Mr. Ketcham, I wonder if the council has taken any action with regard to the constituent agency to handle the cooperative angle of the housing program as opposed to a division as endorsed by Mr. Foley before the committee? Mr. KETCHAM. I don't know that. The Reverend Keehn has been devoting his time to the housing program and I am just sort of pinchhitting for him, and I don't know. Mr. MITCHELL. You do not know what his personal opinion would be on that point? Mr. KETCHAM. I could very easily check it for you. Mr. MITCHELL. If you could and inform the committee, I think it would be worth while. The CHAIRMAN. I think we would be interested in having that information. Mr. KETCHAM. In 1620, when the Congregational Christian Church was formed in this country, they all had to build their own houses, but I don't think it is very practical any more. The CHAIRMAN. If there are no further questions, you may retire. STATEMENT OF DAVID L. KROOTH, NATIONAL HOUSING Mr. KROOTH. Mr. Chairman and members of the committee, I am appearing for the National Housing Conference. The conference is a nonprofit organization, which, for almost 20 years, has been a spokesman for the public interest in housing. Its objective is the achieve |