UNITED STATES SENATE, Hon. CHARLES W. TOBEY, Chairman, Committee on Banking and Currency, Senate Office Building, Washington, D. C. DEAR SENATOR TOBEY: Enclosed herewith are two telegrams I have just received. You will note both Mr. Clarke and Miss Kelly request that their views be recorded and I am, therefore, forwarding the telegrams to you for your information. With kind regards, I am, Sincerely yours, JOE MCCARTHY. MILWAUKEE, WI8., March 27, 1947. Senator McCARTHY, Senate Banking and Currency Committee, Senate Office Building, Washington, D. C.: Fifty thousand CIO members in Milwaukee County join with numerous civic groups in urging you to support Taft-Ellender bill S. 866 to the fullest extent. Please make this a part of the committee record. GLENN M. CLARKE, Secretary-treasurer, Milwaukee County CIO Council. Senator JOSEPH MCCARTHY, MILWAUKEE, WIS., March 27, 1947. United States Senate, Washington, D. C.: Hon. CHARLES W. TOBEY, GRACE KELLY. OFFICE OF THE MAYOR, Redlands, Calif., March 28, 1947. Chairman, Senate Committee on Banking and Currency, Washington, D. C. MY DEAR SIR: In your current consideration of the Wagner-Ellender-Taft bill, please accept my earnest wish for favorable action. In this community as well as in many throughout the Nation, the need for housing of the type that is contemplated by this legislation is the urgent need of the hour. Your activity in behalf of this highly deserving measure is personally appreciated. May you succeed early. Respectfully yours, MAURICE CLAPP, STATE OF OHIO, DEPARTMENT OF COMMERCE, DIVISION OF BUILDING AND LOAN ASSOCIATIONS, In re: Conversion legislation. Mr. ROBERT HILL, Secretary, Committee on Banking and Currency, DEAR MR. HILL: Our attention has been called to the hearings now being held on S. 866 commonly known as the Taft-Ellender-Wagner bill. In reviewing section 502 of the proposed act, we are of the opinion that that portion of the act pertaining to requirement of the approval of the Board of the Federal Home Loan Bank Administration and the Federal Savings and Loan Insurance Corporation before a Federal savings and loan company could convert to a State-chartered institution should be eliminated. We are further of the opinion that conversion would be retarded if this language were to remain in the proposed act and further that an association should be permitted to decide freely without outside interference whether it chooses to be a State or Federal institution. Very truly yours, JOHN R. HARCHA, Superintendent of Building and Loan Associations. RESOLUTION OF THE CITY OF NEWARK, N. J. Whereas there now exists, and for a long time there has existed, in the city of Newark and its surrounding suburbs, a deplorable shortage of housing for families in all income brackets; and Whereas this housing shortage is seriously affecting the lives of our citizens, causing a break-down of family life, the further postponement of marriages of veterans, an instability in the labor market, increasing migration of families from our city, and increasing overcrowding of present dwellings; and Whereas this condition is contributing to juvenile delinquency and crime, and adversely affects a large segment of the population, particularly the veterans; and Whereas there has been introduced in Congress a general housing bill known as S. 866-the Taft-Ellender-Wagner bill-designated to alleviate this situation by encouraging home building by public and private enterprise, for all income groups, through increased FHA insurance, lengthened repayment periods, reduced interest rates, expanded lending powers, yield insurance to encourage institutional investment in large-scale rental housing, financial assistance to cities for land assembly and redevelopment of blighted areas, and a continuance of the public low-rent housing: Now, therefore, be it Resolved, That the Board of Commissioners of the City of Newark urge the early enactment by Congress of S. 866, so that public and private enterprise can undertake the immediate large-scale home-building program provided for in the bill; and be it further Resolved, That copies of this resolution be sent to the President of the United States, the chairmen of the Senate and House Banking and Currency Committees, and to all of New Jersey's congressional representatives. VINCENT J. MURPHY, Board of Commissioners of the City of Newark, N. J. Approved as to form and legality: THOMAS L. PARSONNET, I hereby certify that the foregoing is a true copy of a resolution adopted by the Board of Commissioners of the City of Newark at a meeting held March 26, 1947. In testimony whereof, I have hereunto set my hand, and affixed the seal of the city of Newark, this 27th day of March A. D. 1947. H. L. REICHENSTEIN, City Clerk of Newark, N. J. STATE BANKING BOARD OF NORTH DAKOTA, Mr. ROBERT HILL, Secretary, Committee on Banking and Currency, DEAR MR. HILL: It has come to our attention that your committee is now holding hearings on S. 866, commonly known as the Taft-Ellender-Wagner bill, section 502 of which provides for conversion of Federal savings and loan associations into State savings or building and loan associations, homestead associations or cooperative banks. We particularly object to the provisions in this section which would make such conversions subject to approval by the Federal Home Loan Bank Administration and the Federal Savings and Loan Insurance Corporation. Obviously, this provision would place these agencies in a position to thwart the wishes of the mem bers of the association by withholding their approval of the conversion and there would extend to the Government agencies a power in respect to the conversion of Federal associations which we do not believe is given to any State supervisory authorities in any statutes providing for conversion of State institutions into Federal associations. Section 7-0112 of the North Dakota Revised Code of 1943 provides for the conversion of State organizations into Federal savings and loan associations but does not condition such conversion upon the consent or approval of the supervisory authority. It is believed that the language of our conversion law is substantially identical with that of most of the other States and we do feel that it would be equitable to give powers to the Federal agencies which are not enjoyed by the State authorities. We would like to respectfully recommend to the committee that the above section be amended to eliminate the objectionable features noted above. Yours very truly, Hon. ROBERT HILL, R. S. SEE, Secretary. DEPARTMENT OF FINANCIAL INSTITUTIONS, Secretary, Committee on Banking and Currency, United States Senate, Washington, D. C. DEAR SIR: The Taft-Ellender-Wagner bill, S. 866, now pending in your committee, contains a section which is extremely objectionable to State savings and loan supervisory authorities and to those interested in State chartered savings and loan associations. Section 502 of the proposed act provides that a Federal association may convert to a State chartered association only with the approval of the Federal Home Loan Bank Administration and the Federal Savings and Loan Insurance Corporation. Section 502 also provides that an association might lose its Federal insurance by such conversion. In Indiana, by statute, as in most States, State chartered associations are permitted to convert to Federal associations without the approval of the State supervisory authorities. Therefore, section 502 of the proposed S. 866 is unfair and inequitable in our opinion. At the last session of the General Assembly of Indiana, a statute was passed prohibiting the conversion of State banks to national banks. This legislation was enacted because the general assembly recognized the unfair advantage previously enjoyed by national authorities due to the fact that national banks are prohibited by Federal statute from converting to State banks. If the matter were brought to its attention, we feel that the general assembly of Indiana would ake the same position regarding conversion of State chartered savings and loan associations to Federal associations. However, if Federal legislation were enacted to permit conversion of Federal associations to State chartered associations without Federal approval or penalty, both the Federal and State statutes would be in harmony and neither the State nor the Federal supervisory agencies would enjoy an unfair advantage. Respectfully yours, JOE MCCORD, Director. Hon. ROBERT HILL, Secretary, Committee on Banking and Currency, United States Senate, Washington, D. C. STATE OF NEBRASKA, Lincoln 9, March 27, 1947. DEAR SIR: Please be advised that we are concerned with the present wording of S. 866, Taft-Ellender-Wagner bill-more in particular, section 502 which permits federally chartered associations to convert to a State institution without the approval of State supervisory authorities. It is conceivable that if the association was a first-class institution, Federal supervisors and their affiliates may exert pressure to retain control of the association; but in the event its assets and management are not satisfactory, these same Federal controls may lend influence to having the association convert to a noninsured State association. It is deemed to be of paramount importance that amendments be made which will permit an association to decide freely without outside interference, whether it chooses to be a State or a Federal institution. Yours very truly, Mr. ROBERT HILL, J. F. MCLAIN. TERRITORY OF HAWAII, Secretary, Committee on Banking and Currency, DEAR SIR: As deputy bank examiner for the Territory of Hawaii, kindly allow me to express my objections to that portion of section 502 of Senate bill 866 which would require approval, by regulations or otherwise, by the Board or the Federal Home Loan Bank Administration and by the Federal Savings and Loan Insurance Corporation prior to the conversion of Federal chartered associations to State chartered associations. Territorial statutes allow conversion of a Territorial chartered association to a Federal association by the affirmative vote of the shareholders and do not require approval of Territorial authorities to effect such conversion. It does not seem equitable that requirements for conversion from Federal to Territorial should be any more exacting or subject to the will of a jurisdictional authority. Very truly yours, W. LEDERER, Jr., Deputy Bank Examiner. Hon. CHARLES W. TOBEY, STEMBLER & FORD, INC., Capitol Heights, Md., March 31, 1947. United States Senate, Washington 25, D. C. MY DEAR MR. TOBEY: I dislike the necessity of having to worry you so often with my ideas about some of the many bills before Congress which directly affect our industry. It does seem to me that there is quite a tendency toward socialism or some other kind of "ism" to deprive this country of private enterprise and initiative. The Taft-Ellender-Wagner bill, S. 866, is a form of socialized legislation which is most objectionable to the building-supply industry. Such a set-up only allows the shrewd operator to cash in on everybody's money but his own and disrupts all channels of trade from top to bottom. I trust you will do what you can to defeat this bill. STEMBLER & FORD, INC., Senator ALEXANDER WILEY, Washington, D. C. CITY OF MANITOWOC, WIS., March 28, 1947. DEAR SENATOR WILEY: Enclosed find a certified copy of a resolution unanimously adopted by the Common Council of the City of Manitowoc, petitioning the Wisconsin Legislature to memorialize the Congress of the United States to take immediate and appropriate steps to provide housing accommodations for returning veterans. Although the resolution petitions the Wisconsin Legislature to memorialize Congress to take such steps, it was thought that it would be of vital importance and information to inform you of the common council's action and stand taken by them in regard to this matter. Yours truly, ARTHUR POST, City Clerk. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MANITOWOC, WIS. Whereas the cost of building homes for veterans has increased considerably due to removal of priorities and price controls on materials; and Whereas such costs are prohibitive to the average veteran; and Whereas it is evident that it is impossible for municipalities to provide homes for veterans. The problem is and always has been one for the Federal Government. If the Federal Government had maintained priorities and kept materials at price levels where veterans are able to proceed with the construction of their homes, perhaps we would be on the road to a solution. Now nonresidential construction exceeds residential and they are in competition. It is obvious that the average veteran, after his discharge from military service, is unable to finance the purchase of a $7,000 or $8,000 home. The Government experienced no difficulty and did not delay long in furnishing housing accommodations for war workers in industrial areas. It is the Government's responsibility to see that the returning veteran is properly housed and the Federal Government should not shirk its responsibility in this respect. If the costs are proper and if no controls should again be imposed, then the Government should provide housing accommodations for the veterans at a cost commensurate with the veteran's abil'ity to finance, and if assistance is required, the Federal Government is the unit which should provide it. It cannot be shunted to the municipality. Everyone is agreed that there is a housing shortage; everyone is agreed that the average veteran cannot finance construction at existing costs. It is therefore imperative that the Federal Government immediately recognize its responsibility and provide the housing accommodations required. The returning veteran is the displaced American citizen, and it is the duty of the Federal Government to rehabilitate him, and the first requirement is adequate housing. It is dangerous for any country to neglect the welfare of its citizens. Discontent breeds hatred of existing institutions. If the citizenry is content we need not fear the antics or vituperations of Communists and others espousing foreign ideologies: Now, therefore, be it Resolved by the Honorable Mayor and Common Council of the City of Manitowoc, That we do hereby respectfully petition the Legislature of the State of Wisconsin to memorialize the Congress of the United States to take such immediate and appropriate steps as may be necessary to provide immediate, adequate housing accommodations for our returning veterans who are sorely distressed. Dated this 17th day of March 1947. CERTIFICATE ED KLUSMEYER. STATE OF WISCONSIN, City of Manitowoc, ss: I, Arthur Post, city clerk of and for the city of Manitowoc of the State of Wisconsin, do hereby certify that I have compared the above and attached copy of a resolution with the original of said resolution on file in my office, and that the said copy is a true and correct copy of such original resolution duly and regularly adopted by the Common Council of the City of Manitowoc, Wis., at a meeting held on March 17, 1947. Witness my hand and seal this 28th day of March 1947. [SEAL] ARTHUR POST, City Clerk. Senator CHARLES W. TOBEY, UNITED STATES SENATE, Washington, D. C., March 31, 1947. Chairman, Senate Banking and Currency Committee, Senate Office Building, Washington, D. C. DEAR SENATOR TOBEY: I am enclosing herewith telegram of March 26 from Mr. Henry R. McGee, president, Chicago Branch of NAACP. Will you kindly place it on file with your committee in connection with S. 866? Yours most sincerely, SCOTT W. LUCAS. |