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HEARINGS

BEFORE A

SUBCOMMITTEE OF THE
COMMITTEE ON BANKING AND CURRENCY

UNITED STATES SENATE

EIGHTY-FOURTH CONGRESS

FIRST SESSION

ON

S. 789, S. 1022, S. 1412, S. 1501, S. 1524, S. 1565,

S. 1642, S. 1744, S. 1766, and S. 1800
BILLS TO AMEND THE NATIONAL HOUSING ACT, THE
HOUSING ACT OF 1950, THE HOUSING ACT OF 1949,

AND THE HOUSING ACT OF 1937

MAY 10, 11, 12, 13, 16, 17, 18, 19, AND 20, 1955

Printed for the use of the Committee on Banking and Currency

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COMMITTEE ON BANKING AND CURRENCY

J. W. FULBRIGHT, Arkansas, Chairman A. WILLIS ROBERTSON, Virginia

HOMER E. CAPEHART, Indiana JOHN J. SPARKMAN, Alabama

JOHN W. BRICKER, Ohio J. ALLEN FREAR, JR., Delaware

IRVING M. IVES, New York PAUL H. DOUGLAS, Illinois

WALLACE F. BENNETT, Utah HERBERT H. LEHMAN, New York

PRESCOTT S. BUSH, Connecticut A. S. MIKE MONRONEY, Oklahoma

J. GLENN BEALL, Maryland WAYNE MORSE, Oregon

FREDERICK G. PAYNE, Maine
J. H. YINGLING, Chief Clerk
ROBERT A. W ACE, Staff Director

SUBCOMMITTEE ON HOUSING

JOHN J. SPARKMAN, Alabama, Chairman J. W. FULBRIGHT, Arkansas

HOMER E. CAPEHART, Indiana PAUL H. DOUGLAS, Illinois

IRVING M. IVES, New York HERBERT H. LEHMAN, New York

PRESCOTT S. BUSH, Connecticut A. S. MIKE MONRONEY, Oklahoma

FREDERICK G. PAYNE, Maine

II

CONTENTS

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Pago

Subject index...

VIII

S, 789

2

S. 1022.

2

S. 1412_

S. 1501, amendments.

S. 1501

S. 1524

S. 1565

12

S. 1642

15

S. 1744.

16

S. 1766.

17

S. 1800, and section-by-section analysis.

18

Statement of -

Anderson, Hurst R., on behalf of the Association of American Colleges,

accompanied by Father T. Byron Collins, and Joseph Solterer---- 257

Andrews, Dr. Justin M., Assistant Surgeon General, accompanied by

V. G. MacKenzie, Assistant Chief, Division of Sanitary Engineering

Services, Public Health Service.--

156

Baughman, George F., on behalf of the Association for Higher Educa-

tion.

290

Bubb, Henry A., chairman, legislative committee, accompanied by

Stephen Slipher, staff vice president, United States Savings and Loan

League--

375

Campbell, Wallace J., director of the Washington office, Cooperative
League of the United States of America-

210

Capehart, Homer E., a United States Senator from the State of

Indiana

35

Clark, Joseph S., Jr., mayor of Philadelphia, Pa., representing Ameri-

,
can Municipal Association --

437, 445

Cole, Albert M., Administrator, Housing and Home Finance Agency,

accompanied by Norman P. Mason, Commissioner, Federal Housing

Administration; Charles E. Slusser, Commissioner, Public Housing

Administration; John C. Hazeltine, Commissioner, Community

Facilities Administration; Walter W. McAllister, Chairman, Home

Loan Bank Board; Richard L. Steiner, Deputy Commissioner, Urban

Renewal Administration; Oakley Hunter, General Counsel, Housing

and Home Finance Agency; and Frank J. Meistrell, General Counsel,

Federal Housing Administration --

56-79

Collins, Father T. Byron, and Joseph Solterer, professor of economics,

Georgetown University-..

262

Douglas, James H., Under Secretary of the Air Force-

403

Dowd, Norbert X., executive secretary, Bangor, Maine, Chamber of

Commerce

574

DuLaurence, Henry, chairman, legislative committee, National
Apartment Owners Association, Inc.--

530
Emerson, E. S., general partner, College and University Finance
Associates, San Antonio, Tex.-

223

Evans, John K., chairman, National Aeronautics Committee, Na-

tional Security Commission, accompanied by Clarence H. Olson,

assistant director, legislative program, the American Legion -

226

Floete, Franklin G., Assistant Secretary of Defense, accompanied by

Robert T. Stevens, Secretary of the Army; Thomas S. Gates, Jr.,

Under Secretary of the Navy; and James H. Douglas, Under Secre-

tary of the Air Force...

403

Gates, Thomas S., Jr., Under Secretary of the Navy-

403

Hadley, Miss Eleanor, on behalf of American Association of Social

Workers.

310
Statements of—Continued

Page

Hazeltine, John C., Commissioner, Community Facilities Administra-

tion-

56, 79

Healy, Patrick, Jr., executive director, American Municipal Association. 137
Heitmann, Fred W. Jr., vice president, Northwest National Bank,
Chicago, Ill-

578
Hoffman, Frank, chairman, subcommittee on housing, CIO legislative

committee, and Ben Fischer, director, CIO housing committee.. 507

Hunter, Oakley, General Counsel, Housing and Home Finance

Agency -

56, 79

Kane, Owen A., Legislative Attorney, accompanied by William A.

Newman, Jr., Associate Director of Audits, Office of the Comp-

troller General..

178

Kuchel, Thomas H., a United States Senator from the State of California. 374

Kugel, H. Kenneth, first vice president, on behalf of H. C. Ballman,

executive secretary, Air Pollution Control Association

316

LeMay, Gen. Curtis, Commander in Chief, Strategic Air Command - 477
Levy, Herbert N., on behalf of the Automatic Fire Alarm Association. 586
Lewis, Clyde A., chairman, Plattsburgh Air Base Liaison Committee - 541
Long, Russell B., a United States Senator from the State of Louisiana. 127, 145
Lucas, Scott W., accompanied by Edward L. Wilson, managing

director, and William W. Welsh, financial consultant, Mobile
Homes Manufacturers Association -

549

McAllister, Walter W., Chairman, Home Loan Bank Board..

56, 79

Magrath, Raymond C., on behalf of American Council

on Education -- 250

Mason, Norman P., Commissioner, Federal Housing Administration - 56, 79

Mead, Donald H., mayor of Syracuse, N. Y., on behalf of the American

Municipal Association.

441

Meistrell, Frank J., General Counsel, Federal Housing Administration. 56

Mills, Walter B., Jr., president, accompanied by William L. Slayton,

assistant director, and John D. Lange, executive director, National

Association of Housing and Redevelopment Officials -

459

Mitchell, Clarence, director, Washington bureau, National Association

for the Advancement of Colored People.

515

Nichols, C. N., managing director, Home Improvement Contractors
National Association, Inc.---

566
Northrup, H. R., executive vice president, National Retail Lumber
Dealers Association.

240

O'Grady, Msgr. John, secretary National Conference of Catholic

Charities

524

O'Malley, J. J., chairman, legislation committee, accompanied by

Harold P. Braman, executive manager, National Savings and Loan

League

204

Packard, Arthur J., on behalf of the American Hotel Association -- 391
Robbins, Ira S., president, and Lee F. Johnson, executive director,

National Housing Conference, and Dr. William L. C. Wheaton,
University of Pennsylvania -

494
Robin, John P., secretary of commerce, Commonwealth of Penn-
sylvania --

435
Rouse, James W., member, board of governors, accompanied by

Samuel E. Neel, general counsel, Mortgage Bankers Association -- 193

Scott, Kenneth L., Director, Agricultural Credit Services, Department

of Agriculture, accompanied by R. B. McLeaish, Administrator; and

Henry C. Smith, Deputy Administrator, Farmers Home Adminis-

tration..

159

Seidman, Bert, acting secretary, housing committee, American
Federation of Labor -

485

Slusser, Charles E., Commissioner, Public Housing Administration.-- 56, 79

Spiczak, George P., vice president, Home Federal Savings & Loan Asso-

ciation, Chicago, Ill_-

579

Staal, Ben J., treasurer, Holland Furnace Co., Holland, Mich..

582

Stevens, Robert T., Secretary of the Army

403

Steiner, Richard L., Deputy Commissioner, Urban Renewal Adminis-

tration.-

Stewart, R. B., vice president and treasurer, Purdue University, on
behalf of the Association of Land-Grant Colleges and Universities..

301
Van Selow, Louis, Buckhorn Ranch Trailer Park, Des Plaines, Ill.-- 561

Page

319
395

162

164

173

Statements of—Continued

Waltemade, Henry G., president, National Association of Real Estate

Boards, accompanied by John C. Williamson, secretary-counsel,

Realtors' Washington Committee --

Weitzer, Bernard, national legislative director, Jewish War Veterans.-
Reports, letters, statements, etc., submitted for the record by-
Agriculture Department:

Farm housing loans made under title V, by fiscal years.

Direct and insured farm ownership loans made under title I,

Bankhead-Jones Act..

Report on S. 789 and S. 1022.

Comments on Hoover Commission recommendations 30, 31,

and 32.--

Alabama League of Municipalities, Ed E. Reid, executive director:

Letter to Senator Sparkman..-

American Federation of Labor: Resolution on housing, 73d conven-

tion.

American Legion: Letter to Senator Fulbright-

Askew, Ed., mayor, Hodge, La.; Letter to Senator Long-

Baughman, George F., on behalf of the Association for Higher Edu-

cation:

Resolutions.

Statement.

Breeden, R. G., manager, Insulating Siding Association: Telegram to

committee

Bubb, Henry A., Chairman, legislative committee, United States

Savings and Loan League:

Telegrams from small homes builders.

Statement.

Buck, Raymond E., Fort Worth, Tex.: Letter to Senator Sparkman.-

Capehart, Homer E., a United States Senator from the State of

Indiana:

Comparison of important provisions of existing title VIII,

Wherry housing, with proposed S. 1501

Comparative data on Wherry housing and S. 1501.
Excerpt from FHA investigation report: Section E. Coopera-

tive program.
Castille, R. J., president, Guaranty Bank & Trust Co., Lafayette,

La.: Letter to Senator Long-
Chamber of Commerce of the United States, Clarence R. Miles:

Letter to Senator Sparkman.
Clark, Joseph S., Jr., mayor of Philadelphia:

Statement on behalf of American Municipal Association -

Statement on behalf of Philadelphia, Pa--
Colorado State Board of Agriculture, Warren Monfort, president:

Letter to Senator Allott..
Community Facilities Administration:

Applications received.

Inquiries
Comptroller General:

Report on S. 1501
Comparison of important provisions of existing title VIII,

Wherry Housing, with proposed S. 1501..
Comparative data on Wherry Housing and S. 1501.
Comment on FHA debenture--
Comparative data, Wherry Housing and S. 1501 with appropri-

ated fund housing-

Defense Department:

Charts

Report on S. 1501

Douglas, James H., under Secretary of the Air Force, Statement-

Dowd, Norbert X., executive secretary, Bangor, Maine, Chamber of

Commerce: Statement.--

DuLaurence, Henry, chairman, legislative committee, National

Apartment Owners Association: Statement-

Elias, L. J., Bremerton, Wash.: Letter to Senator Magnuson.

41

47

223

150

596

438
445

609

113
113

33

41
47
188

190

577

533

250

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