concerned with this vital feature of our defense effort. I am, therefore, requesting the several agencies of the Government and the Advisory Commission to give every assistance to the new Coordinator, to the end that our defense housing activities may progress in an orderly and expeditious fashion.

Sincerely yours—

And signed: "Franklin D. Roosevelt."

(After reading the above introductory portion Mr. Palmer submitted his prepared statement, the body of which follows, together with the Executive order to which reference is made above. These documents are as follows:)

STATEMENT OF C. F. PALMER, COORDINATOR, DIVISION OF DEFENSE HOUSING COORDINATION, OFFICE FOR EMERGENCY MANAGEMENT, EXECUTIVE OFFICE OF THE PRESIDENT

You have requested "a general statement with regard to defense housing needs, indicating how estimates of need are made, and the steps being taken to meet them." A booklet recently issued so fully describes this procedure, that I ask permission to have pages 10 through 20 which cover this point made a part of the record. Of course, we shall be glad to furnish additional copies of this booklet.

In accordance with your request for information concerning the "effect of title VI of the National Housing Act on private building in defense centers," I am furnishing a graph which tells more than many words. Note that this chart shows that construction under title IV is clearly in addition to the total volume of other construction under the Federal Housing Administration plan. Prior to title VI, activity under title II during the early months of 1941 was running substantially ahead of last year. After title VI began to function, business under title II maintained just about the same margin over last year as it had done before, and the large volume of operations under title VI was added to the great activity under title II, producing in 14 weeks of operation applications for mortgage insurance on over 22,000 buildings, which will accommodate slightly more than that number of families, since some of them are multiple dwellings. Actual construction during this 14 weeks' period was started on over 5,400 homes and the rate is rapidly climbing. Last week, 992 were placed under construction. There is one other aspect of the operations under title VI which I should like to bring out; namely, that the major part of this business has been concentrated in a relatively small number of the defense areas in which title VI operates.

In reference to your request for information concerning homes registration bureaus in defense centers, summarizing the number of applications made and the rooms and homes registered, classified according to rent range, I am submitting the attached tabulation. This statement shows that up to the present time homes registration offices have been organized and are now operating in 86 cities and that they are in process of organization or under consideration in 164 additional cities. For 30 of these cities we have already received reports of operations which indicate that up to about the end of May the offices had registered a total of over 8,000 family dwelling units and about 20,000 rooms. They have received applications from about 6,500 home seekers and over 2,500 single persons looking for furnished rooms. Of the applicants, over 2,100 have been placed in family accommodations and over 1,800 in rooms. These figures represent only the beginning of the operations of the homes registration oflices. Most of the offices have been organized for so short a time that the reports do not represent the volume of activity to be expected when the organization is completed. In many cases, the period of operation has been so short that no report at all is yet available. The record to date, however, is sufliciently impressive to show that the homes registration offices can easily become one of our most important instrumentalities in finding accommodations for defense workers and in facilitating the full use of existing residential accommodations.

You have also asked for a statement about private construction and our programs for private enterprise. The available statistics on private construction leave many important areas inadequately canvassed, but it can be very approximately estimated 'hat during the fiscal year just ended private builders started

1 See p. 6885.

2 See p. 6906.

work on some 515,000 homes in the nonfarm sections of the United States, of these, perhaps three-fifths or two-thirds were in defense areas. The total represents an increase of about 21 percent over volume turned out in the 1939-40 fiscal period. While these homes ranged in cost all the way from less than $2,000 to more than $25,000, the average value is believed to have been slightly more than $5,000. In point of view of units, however, well over half, and perhaps as many as three-quarters, cost less than $5,000. Most of these houses were for sale, but, even so, they have resulted in a substantial addition to the rental market. In one recent test that we have had made (covering Washington, D. C.), it was found that nearly 6 out of every 10 people building or buying houses come from rented houses. Thus the builders of homes for sale or for owner occupancy contribute materially to the supply of homes available for rent. Under title VI of the National Housing Act, the proportion of direct rental properties has been higher than in private building generally, and it now appears that at least a quarter of the units currently being built under that title are rental properties.

Because of the vast number of communities in which there is some defense activity, it has been neither possible nor practical to set up specific programs for private building in every one of these places. This does not mean, however, that private builders are not being counted upon in every defense area. On the contrary, if private building fails to do the lion's share of the necessary home construction in most defense centers, the task which will be left to public housing will be many times that presently envisaged. Thus far the performance of private builders in supplying local needs has been too mixed to permit any generalizations. In communities like Boston, Canton, Jacksonville, Washington, San Francisco, Oakland, and Alameda private construction appears to be providing its full share of the housing needs. On the other hand, a pick-up in the rate of private building is needed in Buffalo, Bridgeport, Philadelphia, Pittsburgh, and South Rend, if the needs of the defense program are to be met.

You have expressed an interest in priorities; we tried to be foresighted in this matter and have worked out between the Priorities Board and our Division general principles of an agreement, details of which are being developed and which it is hoped will be announced in a few days. This arrangement will facilitate granting priorities assistance for public-defense housing projects and such private housing as serves defense needs. For the record I submit a statement of the general agreement between Mr. Stettinius and myself.

With reference to your request for "a summary of the arrangements made for regional and State coordination of Federal housing agencies," it is important to note that we have tried, in our work of coordination, to disturb as little as possible the normal program of some 13 housing agencies and to assist all of them in fulfilling their maximum capabilities in meeting the need. In doing this, we have considered that coordination at the Federal level was adequate since we operate with each agency through its own field organization. In this connection, we have used the facilities of the State and local defense councils, a part of which is a housing committee composed of local citizens. When appropriate, we have urged the use of the splendid facilities of State housing boards and commissions and local housing authorities as we do in our phase of housing. The local housing committee conducts the homes registration offices, stimulated by the Division of Defense Housing.

In order properly to coordinate housing with other defense agencies, there are now written statements of relations between offices of the Coordinator of Health and Welfare, Price Administration and Civilian Supply, and Civilian Defense. The splendid machinery which has been developed, will begin presently to show the benefits of mutual understanding of the functional areas of operations of the various agencies concerned with the problem confronting us.

Mr. Chairman, it has been a pleasure to appear before your committee. I am pleased to report such progress to you. The loyal and energtic leadership in the various housing agencies bespeaks the ability of our Nation to meet the need for housing in terms of defense, a preparation for the real job in the post-emergency.

EXHIBIT A.-EXECUTIVE ORDER

COORDINATION OF NATIONAL DEFENSE HOUSING

JANUARY 11, 1941.

By virtue of the authority vested in me as President of the United States by the Constitution and the statutes, in order to define further the functions

and duties of the Office for Emergency Management of the Executive Office of the President with respect to the national emergency as declared by the President to exist on September 8, 1939, and for the purpose of providing for the effective discharge of responsibilities imposed upon me by the statutes mentioned in paragraph 1, and for assuring proper coordination of all defense housing activities, it is hereby ordered as follows:

1. The term "defense housing" as used in this order shall include all housing authorized by

(a) United States Housing Act of 1937, approved September 1, 1937 (50 Stat. 888), as amended, so far as projects developed under the authority of this Act relate to national-defense activities.

(b) Title II of the Act of June 28, 1940, 54 Stat. 676, 681.

(c) Second Supplemental National Defense Appropriation Act, 1941, approved September 9, 1940 (Public, No. 781, 76th Cong.).

(d) Act of June 11, 1940, 54 Stat. 265 (including housing authorized by allocations from emergency funds available under such Act).

(e) Act of June 13, 1940, 54 Stat. 350 (including housing authorized by allocations from emergency funds available under such Act).

(f) Act of October 14, 1940, Public, No. 849, 76th Congress.

2. The term "Federal housing agency" as used in this order shall include all executive departments and independent agencies, including corporations in which the United States owns all or a majority of the stock, either directly or indirectly, which

(a) Plan, construct, or operate defense-housing facilities.

(b) Grant loans or subsidies for public-housing purposes.

(c) Encourage or assist the financing or construction of private housing. (d) Conduct surveys or analyses of housing conditions and housing markets.

3. There is hereby established within the Office for Emergency Management of the Executive Office of the President, a Division of Defense Housing Coordination at the head of which there shall be a Coordinator of Defense Housing appointed by the President. The Coordinator of Defense Housing, hereinafter referred to as the Coordinator, shall perform his duties and functions under the direction and supervision of the President and shall report to the President through the Liaison Officer for Emergency Management. The Coordinator shall receive compensation at such rate as the President shall approve and in addition shall be entitled to actual and necessary transportation, subsistence, and other expenses incidental to the performance of his duties.

4. Subject to such policies, directions, and regulations as the President may from time to time prescribe, the Coordinator, in cooperation with all departments and agencies which have responsibilities for defense activities, and utilizing the services and operating facilities of Federal housing agencies to the maximum, shall perform the following duties and responsibilities:

(a) Establish and maintain liaison between the several departments and establishments of the Government and such other agencies, public or private, as the Coordinator may deem necessary or desirable, to facilitate proper coordination of, and economy and efficiency in, the provision of housing facilities essential to the national defense.

(b) Anticipate the need for housing in localities in which persons are engaged, or are to be engaged in national-defense activities; analyze reported defense-housing needs; coordinate studies and surveys of Federal housing agencies in areas of national-defense activity; and facilitate the full use of existing housing accommodations.

(c) Formulate and recommend to the President coordinated defensehousing programs with the objective of avoiding shortages, delays, duplication, and overlapping in defense housing; and advise each Federal housing agency of its part in each proposed program.

(d) Facilitate the execution of approved housing programs through private industry or through appropriate governmental agencies and take appropriate steps to eliminate obstacles which impede the expeditious provision of defense housing.

(e) Advise with private and Federal agencies in the formulation of plans, terms, rental, and management policies, and other factors involved in developing and operating approved defense-housing projects.

(f) Keep continuously informed of the progress of the defense housing program, and report regularly thereon to the President and to the several interested departments and agencies.

(g) Review proposed or existing legislation relating to or affecting defense housing activities and recommend such additional legislation as may be necessary or desirable to assure the effective and expeditious provision of adequate housing facilities for persons engaged, or to be engaged, in national-defense activities.

(h) Perform such other duties relating to the coordination of defense housing as the President may from time to time delegate.

5. Within the limits of such funds as may be appropriated to the Division of Defense Housing Coordination, or as may be allocated to it by the President through the Bureau of the Budget, the Coordinator may employ necessary personnel and make provision for the necessary supplies, facilities, and services. However, the Division of Defense Housing Coordination shall use insofar as practicable such statistical, informational, fiscal, personnel, and other general business services and facilities as may be made available through the Office for Emergency Management or other agencies of the Government.

THE WHITE HOUSE.

FRANKLIN D. ROOSEVELT.

REGULATIONS GOVERNING DEFENSE HOUSING COORDINATION

JANUARY 11, 1941.

Pursuant to the Executive Order of January 11, 1941, entitled "Coordination of National Defense Housing," the following regulations are prescribed in the interest of effective coordination of national-defense housing:

1. The definition and use of the terms "defense housing," "Federal housing agency," and "Coordinator" contained in the above-mentioned Executive Order of January 11, 1941, shall also apply to these terms as used in these regulations. 2. All defense housing programs or projects requiring certification, approval, allocation of funds, a finding, or other action by the President as prescribed by any of the statutes mentioned in paragraph 1 of the Executive Order of January 11, 1941, mentioned above, or in any statute now or hereafter enacted relating to the provision of housing for persons engaged in national-defense activities, shall, prior to presentation to the President, be submitted by the Federal housing agency concerned to the Coordinator for his review and recommendation. The recommendations of the Coordinator shall cover all items to be determined by the President under the legislation pursuant to which such defense housing is being provided and shall further cover the relationship of such housing to the defense housing program of the Government, method of financing, agency to be utilized, character of the project, development, operation, and management plans, and such other considerations relating to the coordination of the defense housing program as may be pertinent. All submittals to the President as required by the above-mentioned statutes shall be accompanied by the recommendations of the Coordinator. Any revisions in such defense housing projects effected subsequent to review and clearance by the Coordinator substantially changing the scope and character of the original project shall be reported to the Coordinator, who shall advise the agency concerned of the effect of such changes upon the coordinated defense housing program.

3. Each Federal housing agency shall promptly furnish to the Coordinator for his review and recommendation the standards which it has established, or which it proposes to establish or revise, for the development, operation, and management of defense housing projects with respect to

(a) Physical characteristics, including standards of design, construction, site selection, amenities, and community facilities.

(b) Labor standards.

(c) Standards of occupancy, operation, and management, including rent levels and policies.

Any Federal housing agency submitting a proposed defense housing project to the Coordinator for his review and recommendation, as set forth in paragraph 2, shall certify that the standards established for such agency have been or will be complied with, except as the project proposal may indicate.

4. In order to coordinate site acquisition for defense housing purposes, all proposed site locations under consideration for defense housing projects shall be

reported to the Coordinator by the Federal housing agency concerned. The Coordinator shall advise such agency of the relationship of its proposed sites to other actual or propose defense housing sites in the same locality.

5. Each Federal housing agency shall furnish to the Coordinator copies of such available housing surveys and reports and such other available information and data relating to housing needs and housing markets as he may request; and shall cooperate with the Coordinator in obtaining and developing additional information necessary to a determination of the amount and character of defense housing needs.

6. Each Federal housing agency shall keep the Coordinator advised reasonably in advance of all proposed housing surveys and investigations relating to housing conditions and the housing market in any locality where the defense program has or is expected to have a significant effect on the need for housing. The Coordinator shall advise each agency of the correlation of its proposed survey and investigation activities with other surveys and analyses completed or in progress in the same locality.

7. Each Federal housing agency shall promptly furnish to the Coordinator, at his request, such reports with respect to its activities and the progress of its program as may be necessary in coordinating and expediting the financing, construction, and operation of public and private housing facilities.

8. The Coordinator shall furnish to the Director of the Bureau of the Budget such information and reports with respect to the planning, development, and progress of the Government's defense housing program, in such form and at such times, as the Director may require.

THE WHITE HOUSE.

FRANKLIN D. ROOSEVELT,

TESTIMONY OF CHARLES F. PALMER-Resumed

Mr. PALMER. I think it is of vital importance, as we get into the matter, to understand what our responsibilities are, and to see that they are clarified for the information of the committee.

I shall be very happy for you to proceed informally, Mr. Chairman, if that is the way you would like to do.

The CHAIRMAN. Yes. Dr. Lamb has some questions he would like to ask.

Dr. LAMB. Mr. Palmer, does your organization maintain its own field force for an independent check on the housing needs in a given area?

Mr. PALMER. We use all the Federal agencies who themselves are in a position to reflect any light at all upon the needs, frequently checking their information by our own representative after the consolidated reports have come in to us from F. H. A., from the Home Owners' Loan Corporation, from W. P. A., and others who have made exhaustive surveys in the areas, plus the home rooms registration department; and then we sometimes have local hearings.

Probably the best example of the way a determination is made would be that which happened in Pittsburgh. In round numbers last year, I think about 3,000 houses were built in Pittsburgh. The expansion of the defense industries there has been so great that it was determined, on the best available information, that probably 15,000 houses should be produced there during the next year.

There was no opportunity to curtail production of steel. Automobiles were being curtailed in Detroit-to help in the solution of furnishing housing for employees. Unlike that city, Pittsburgh saw no curtailment. Consequently it was decided that probably 5,000 houses should be built with public funds-houses which could be integrated after the emergency into the slum clearance, low-rent-housing program of Pittsburgh and Allegheny County; and 10,000 houses were to be produced by private industry through title VI and otherwise.