Re S. 866. WHITCOMB & KELLER, INC., South Bend 2, Ind., March 26, 1947. Mr. C. DOUGLASS BUCK, Senate, Washington, D. C. DEAR MR. BUCK: After more than a half century's experience in building houses, I am convinced that one of the principle reasons we are not getting more new homes is still the shortage of material for building. This definitely was the principal reason last year and while the material situation has materially improved, yet the shortage of certain items prolongs the completion of homes and discourages many people who have been wanting to build, from doing so. Of course the shortage of labor has occurred more this year than last year. Of course the very high cost of building also tends to deter building and the Wagner-Ellender-Taft bill would only increase the cost and would really slow down building. I am satisfied that the private builders will supply all the houses this year and next, that buyers can afford to pay for. Part Government building and part private building will not work. England affords this example. Secretary, Committee on Banking and Currency, United States Senate, Washington, D. C. DEAR MR. HILL: My attention has been called to section 502 of S. 866, by Senators Wagner, Ellender, and Taft, which purports to give Federal savings and loan associations the right to convert to associations under a State charter. As the supervisory authority of State-chartered associations in Colorado and as secretary-treasurer and member of the executive committee of the National Association of State Savings, Building, and Loan Supervisors, I wish to protest against certain provisions of said section 502 and respectfully request that these objections be brought to the attention of the committee which I understand is now conducing hearings on the bill. (1) The section as drafted makes the right of a Federal association to convert to a State association subject to approval by the Federal Home Loan Bank Administration and also the Federal Savings and Loan Insurance Corporation, and to such regulations as the Administration may see fit to promulgate, which presumably will determine the meaning of and what constitutes "upon an equitable basis." I sincerely feel the citizens of this State, or any State or Territory, who are member shareholders of savings and loan associations operating in this State under a Federal charter, should have the right and the free choice to determine whether they wish to continue operating under a Federal charter or to convert and operate under a State charter. Member shareholders of associations operating in this State under a State charter have that right and free choice and it is not subject to any approval by this Department or any regulation issued by it. To me, that right and free choice is fundamental and must be preserved. The Federal Home Loan Bank Administration, of which Mr. Fahey is the Commissioner, believes in that principle when applied to the conversion of a State association to a Federal association. The Administration, after its creation by Congress, presented drafts of conversion bills to State legislatures giving the right to State-chartered associations to convert to Federal associations and none of these suggested drafts, to my knowledge, provided for conversion subject to approval by the State supervisory authority, but only required a favorable vote of the member shareholders. Most of the States passed such legislation, and we have been given every assurance during the past 10 years or more that reciprocal Federal legislation would be enacted. It seems only fair and equitable under our dual system that Federal associations and State associations be permitted to convert on an equal basis. (2) The section as drafted also gives the Insurance Corporation, in addition to the right and power to approve or disapprove any application for conversion, the right "to elect" to terminate its insurance and thereupon subsection (a) of section 407 of the National Housing Act becomes applicable and that subsection provides that the insurance terminate immediately but the association is obligated to pay premium charges for insurance for a period of 3 years. It would seem to me, based upon my analysis, that the above provision gives the Insurance Corporation the arbitrary power of termination of insurance apart from and in addition to the power now given it in subsection (b) of section 407 of the National Housing Act, which provides that the Insurance Corporation has the power to terminate the insured status of any insured institution at any time, after 90 days' notice in writing; however, only for violation of provisions of the National Housing Act or any rule or regulation made thereunder or any agreement made pursuant to section 403 of the National Housing Act. If subsection (b) of section 407 of the National Housing Act also governs the power of termination as proposed under section 502 of S. 866, then I am puzzled as to why this provision should be injected into said section 502, which is primarily intended to give the right of conversion to Federal associations. I feel that the above provisions of section 502, to which I am objecting and protest, if allowed to become law will nullify the will of the shareholders and the freedom of choice of charter under which they wish to operate. I feel very strongly that the provisions of section 502, because of the provisions to which I object, cast a reflection upon States' rights, the charters issued thereunder, and the ability and sincerity of State supervisors as faithful public servants. Our National Association of State Supervisors, representing 38 States, including the Territory of Hawaii, has given much thought to this question of reciprocal rights of conversion and has discussed it time after time with the Federal Home Loan Bank Administration since 1934. We approved a draft providing for conversion of Federal associations to State associations at our national conference held in St. Paul last November and this draft is identical to the draft approved by the United States Savings and Loan League. For your information, the United States Savings and Loan League is the trade organization of the savings and loan industry and its membership at this time includes 3,508 Federal and State associations in the United States and its territories. That membership represents an estimated 80 to 90 percent of the total assets of all associations in the United States, which assets are now above $10,000,000,000. The draft referred to above and which we recommend for amendment of section 502 of S. 866 is as follows: "Any Federal savings and loan association may convert itself into a savings and loan, building and loan, or homestead association, or cooperative bank, incorporated under the laws of the State, District, or Territory in which the principal office of such association is located (hereinafter referred to as the State institution, upon the vote cast at a legal meeting specified by the law of such State, District, or Territory as required for such a conversion, but in no event less than 51 percent of all votes cast at such meeting, voting in person or by proxy: Provided further, That legal titles are protected by such conversion or provided that conveyances of legal titles are made. If none of the outstanding shares of the converting Federal association are held by the Secretary of the Treasury or the Home Owners' Loan Corporation, and if such conversion is to a State institution, which is mutual in character and of a type which has been insured by the Federal Savings and Loan Insurance Corporation, no approval of such conversion by the Federal Home Loan Bank Board or the Federal Home Loan Bank Administration shall be required and such converted institution shall continue to be an insured institution and bound under all of the agreements contained in the original application for insurance of accounts, and by such conversion shall accept and be bound by all agreements required by section 403 of title IV of the National Housing Act and such insured institution shall upon such conversion and thereafter be authorized to issue securities in the form theretofore approved by Federal Savings and Loan Insurance Corporation for issuance by similar insured institutions in such State, District, or Territory. Such conversion shall be effective upon approval by the duly constituted authorities of the State, District, or Territory which have supervision over such institutions where such institution is located, and the filing of a certified copy of the resolution authorizing such conversion and the approval of such State, District, or Territory authority with the Federal Home Loan Bank Administraton or the Federal Home Loan Bank Board. "In addition to the foregoing provision for conversion upon a vote of the members only an association chartered as a Federal savings and loan association, including any having outstanding shares held by the Secretary of the Treasury or the Home Owners' Loan Corporation, may convert itself into a State institu tion upon an equitable basis, subject to approval, by regulations or otherwise, by the Federal Home Loan Bank Board or the Federal Home Loan Bank Administration and by the Federal Savings and Loan Insurance Corporation: Provided, That if the insurance of accounts is terminated in connection with such conversion, the notice and other action shall be taken as provided by law and regulations for the termination of insurance of accounts." I will greatly appreciate any help you can give which will bring this matter before the Banking and Currency Committee of the Senate. I am also writing Senators Johnson and Millikin, of Colorado. Very truly yours, A. O. JOHNSON, Building and Loan Commissioner. WAR HOUSING CENTER OF THE EMERGENCY HOUSING COMMITTEE, HOUSING FOR VETERANS, Louisville 2, Ky., March 27, 1947. Hon. CHARLES W. TOBEY, Senate Office Building, Washington, D. C. DEAR SENATOR TOBEY: More than 12,000 veterans in Louisville, Ky., are seeking housing for their families. More than 4,600 has been classified as distress cases. The War Housing Center has been at the heart of the housing situation in Louisville, Ky., for 5 years and knows conditions. In 1946, 3,084 priorities were issued for new single-family houses, but less than 1,500 houses were completed. The rate of issuance of permits in 1947 is practically the same and the rate of completions about the same. The supply of housing is desperately inadequate. Even more tragic is the fact that what is being produced is practically all for sale and not for rent. It does not fit the demand. Ninety percent of our veterans are in no financial position to buy homes and should not be forced to buy. Private builders will not not produce rental units at present building costs. The best remedy for the present desperate situation, as I see it, is the passage of Senate bill 866, known as the Taft-Ellender-Wagner bill. This would make possible rental housing for veterans at rents they could afford to pay. Results in veterans' housing programs have been pathetically inadequate to date. The Taft-Ellender-Wagner bill comes to grips with realities of the situation and should be passed. Please incorporate this statement into the record. Sincerely yours, MARGARET P. WILSON. NATIONAL COUNCIL OF JEWISH WOMEN, INC., The Honorable CHARLES W. TOBEY, Chairman, Senate Banking and Currency Committee. Senate Office Building, Washington, D. C. SIR: Enclosed you will find testimony submitted by the National Council of Jewish Women in support of S. 866 which we would like included in the record of your committee's hearings. Respectfully yours, Mrs. JOSEPH M. WELT, TESTIMONY ON S. 866, THE NATIONAL HOUSING COMMISSION BILL, BEFORE THE SENATE BANKING AND CURRENCY COMMITTEE At its national convention in November the National Council of Jewish Women, recognizing the urgent need to end the housing shortage, voted to "urge the extension of National, State, and local housing programs in urban and rural areas." In support of this resolution, the National Council of Jewish Women wishes to go on record urging immediate passage of S. 866. Eighteen months have passed since the war ended, and the crisis in housing has increased rather than lessened. Families of four and six are living in quarters suited to no more than two persons. This situation is antagonistic to our high standard of living; it creates bitterness and dissatisfaction; it is an unhealthy situation which requires an immediate remedy. Throughout the war, and in these many months since its conclusion, the building industry has voiced its faith in its ability to do the job alone. It has had 18 months in which to prove the validity of its claims. Those months have seen only the most meager building, and that not only insufficient in quantity but unsuited to the major need, which is for low-rent units. Most of the building which has been done has been for sale at prices far out of reach of the average pocket. The past year and a half has proved that private industry alone is not capable of meeting the vast needs which exist in the field of housing. Government help is required if we are to remedy our present desperate housing plight within a reasonable time. We cannot afford to wait the 5 or more years which would be required for private industry, acting alone, to make even a dent in the terrible housing shortage. The Wagner-Ellender-Taft bill, S. 866, provides the Government aid which will enable private enterprise to end our housing crisis in short order. S. 866, the National Housing Commission bill, proposes a plan whereby the facilities of the Government will be available to private enterprise so that it can expand its activities to encompass the existing need. By strengthening the home loan bank and Federal Housing Administrations, by broadening the provisions of the FHA system to enable private enterprise to serve middle income families, and by providing for a special program of yield insurance to be administered by the FHA to encourage direct investment by large-scale investors in rental housing for families of moderate income, S. 866 makes a direct attack on the most pressing problem, the need for low-rent housing, and provides for its solution. In its provision for the resumption of the pubic low-rent housing and slum clearance program, S. 866 is attempting to provide for those whose income is so low that private enterprise will be unable to build for them even with the aid provided in the rest of the bill. We are well aware of the degrading effects that slums have on those who inhabit them. If the United States is to continue to prosper and to raise its standard of well-being, we must see to it that slums are eliminated. As a way of coordinating the housing program and providing the over-all direction which will expedite its enactment, S. 866 provides for a National Housing Commission to be headed by an Administrator, and a Coordinating Council composed of the Administrator and the heads of other Government agencies concerned with various aspects of housing. In its present form, the bill gives the Administrator only the power of coordination over the other agencies on the Coordinating Council. It is our belief that the entire program would be strengthened if the Housing Administrator were given final directive power over the other agencies so that there would be an end to conflicting and unrelated decisions with regard to housing. In conclusion, it must constantly be kept in mind that more than a year and a half has passed since the war ended with no relief to the housing shortage in sight. There is no more time for delay. It is urgent that S. 866 be passed immediately so that we can start work on the houses which are needed so desperately. NEW JERSEY STATE COUNCIL OF AMERICAN FEDERATION OF Hon. CHARLES W. TOBEY, Chairman, Senate Banking Committee, Senate Office Building, Washington, D. C. DEAR SENATOR: The membership of this council notes that your committee is preparing to report to the Senate on the National Housing Commission bill. S. 866. Because the critical housing shortage is seriously affecting our members, and the community as a whole, we urgently request a favorable report on this bill. We feel that this legislation proposes practical means for immediately initiating action to overcome this growing housing problem, and we earnestly request that this legislation be passed by Congress as quickly as possible. Very truly yours, FREDERICK H. EITEL, President. TEMPLE SHOLOM SISTERHOOD, Senator CHARLES TOBEY, Chairman, Senate Banking and Currency Committee, Senate Office Building, Washington, D. C. DEAR SIR: Temple Sholom Sisterhood with a membership of 1,800 women wishes to express to you its concern that the Taft-Ellender-Wagner bill be approved by the Senate Banking and Currency Committee without delay. We believe that it is necessary that the bill be gotten onto the floor of the Senate and passed by the body quickly. It is vital to our American people that the comprehensive housing program covered in this bill be set into operation. Sincerely Yours, Mrs. WILLIAM B. LEVY, President, Temple Sholom Sisterhood. Hon. CHARLES W. TOBEY. ROCHESTER 7, N. Y., March 27, 1947. Senate Office Building, Washington, D. C. DEAR SENATOR TOBEY: Will you kindly register my protest against the enactment of the Wagner-Ellender-Taft bill into our national picture? The builders of this country, operating under free enterprise, have been able to house our people in conditions which surpass those in any other country in the world. Why, with that condition existing, it is necessary for the Government to step in and undertake to do the job is beyond all comprehension. If men in your position can only get back to fundamentals of good Government without all the political implications from groups already in the Government, we feel there should result a far more democratic form of life in the one spot left on this earth where it has a chance to survive. Public housing, once the seed is sown, knows no bounds. DANIEL W. FRAYSIER. GLENDALE 2, CALIF., March 27, 1947. Hon. CHARLES W. TOBEY, Chairman, Senate Banking and Currency Committee, Senate Office Building, Washington 25, D. C. DEAR SIR: AS president of the Glendale-Burbank chapter of the Building Contractors Association of California and speaking on the members' behalf as well as my own, I ask that you do everything in your power to defeat the WagnerEllender-Taft bill, S. 866. It is our belief and the belief of all the people petitioning us for housing, that governmental or socialized housing as sponsored by this bill is undesirable and not the answer to the housing shortage problem. The FHA title 608 proposition is stimulating the building of more desirable, smaller rental units. A governmental building program would corner the available building materials and stop private as well as title 608 building. EUGENE M. MILLER, WILLIAMS & BURROWS, INC., Burlingame, Calif., March 24, 1947. Re: Your deliberations on revised Wagner-Ellender-Taft bill, designated as bill No. S. 866. Senator CHARLES W. TOBEY, Chairman, Senate Banking and Currency Committee, Washington, D. C. DEAR SIR: It seems a waste of your time and of taxpayers' money to have to go through this Wagner-Ellender-Taft bill business again. The revised bill does not appreciably change the bill which was attempted last year. It seems unworkable to attempt to group together all of the theories that appear to be behind this legislation in one omnibus bill and secure a result that will accomplish one purpose without overwhelming cost in other directions. |