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receive a credit upon its future premiums in an amount equal to the excess premium so paid for the period beyond such date."

[H. R. 2799, 80th Cong., 1st sess.]

A BILL To amend the Federal Home Loan Bank Act, title IV of the National Housing Act, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 6 of the Federal Home Loan Bank Act, as amended, is amended by the addition of a new subsection as follows: "(1) At the option of each member but within two years after the enactment of this amendment, each member of each Federal home-loan bank shall acquire and hold and thereafter maintain its stock holding in an amount equal to at least 2 per centum of the aggregate of the unpaid principal of such members' mortgage loans, home-purchase contracts, and similar obligations, but not less than $500. Such stock in excess of the amount required may be purchased from time to time by members and may be retired from time to time as heretofore. From time to time and at least annually after the enactment of this amendment, each Federal · home-loan bank shall retire and pay off at par an amount of its stock held by the Reconstruction Finance Corporation or assigns for the Government equivalent to the amount of its stock held by its members in excess of the amount required to be held by them immediately prior to the enactment of this amendment: Provided, That none of such Government capital shall at any time be retired so as to reduce the aggregate capital, reserves, surplus, and undivided profits of the Federal home-loan banks to less than $150,000 000. Funds arising from the retirement of said stock held by or for the Government shall remain in the Treasury of the United States and be available for subscription to stock in the Federal home-loan banks in the future. Upon a determination by the Board that the proper functioning of the Federal home-loan banks at any time requires additional capital, the Board shall request the Secretary of the Treasury to subscribe to the stock of the Federal home-loan barks as determined by the Board in an amount not in excess of the stock retired under this amendment and the Secretary of the Treasury shall subscribe for such stock and pay therefor from the funds in the Treasury as a result of this amendment."

SEC. 2. Subsection (g) of section 11 of the Federal Home Loan Bank Act, as amended, is amended by inserting the words "one-half" before the words "the sums paid in on outstanding capital."

SEC. 3. Subsection (b) of section 402 of the National Housing Act, is amended by the addition of the following:

"After the effective date of this amendment the Corporation is authorized and directed to pay off and retire its capital stock in units of $1,000, from time to time, from its assets which are in excess of $150,000,000. Such retirement and payment shall be to Home Owners' Loan Corporation or its successor and for the full amount paid for such stock less any amount paid as dividends thereon. Such payments shall be continued from time to time as such funds are available from assets in excess of $150,000,000 until the entire capital stock is retired and the Corporation shall continue to operate with its insurance reserve, undivided profits, and other funds. Whenever, in the judgment of the Board of Trustees of the Corporation, funds are required for insurance purposes, the Secretary of the Treasury is authorized and directed to purchase obligations of the Corporation in an amount equal to the amount of capital stock of the Corporation previously retired, in accordance with the provisions of this paragraph in addition to the amounts of such obligations which he is otherwise authorized. to purchase."

SEC. 4. (a) Subsections (a) and (b) of section 404 of the National Housing Act, as amended (U. S. C., 1940 edition, title 12, sec. 1727 (a) and (b)), are amended by striking out the word "one-eighth" wherever it appears therein and inserting in lieu thereof the word "one-twelfth".

(b) Subsection (c) of section 404 of the National Housing Act, as amended (U. S. C., 1940 edition, title 12, sec. 1727 (c)), is amended to read as follows; "(c) If an insured institution has paid a premium at a rate in excess of onetwelfth of 1 per centum of the total amount of the accounts of its insured members and its creditor obligations for any period of time after June 30, 1946, it shall receive a credit upon its future premiums in an amount equal to the excess premium so paid for the period beyond such date."

SEC. 5. Notwithstanding any other evidence of the intention of Congress, it is hereby declared to be the controlling intent of Congress that if any provision of

this Act, or the application of such provisions to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

Senator BUCK. If there is no objection, I would like to enter in the record following the testimony of the witnesses today a letter from Representative CLASON, with a statement which is attached to the letter, from one who is in favor of the bill.

(The letter and statement are as follows:)



HOUSE OF REPRESENTATIVES, Washington, D. C., March 27, 1947.

Senate Committee on Banking and Currency,

303 Senate Office Building, Washington, D. C.

DEAR SIR: I am enclosing herewith statement presented by Joseph Lafleur, member of the Chicopee (Mass.) Board of Aldermen and Chicopee Housing Committee, in support of the Taft-Ellender-Wagner bill.

I will appreciate it very much if you will have this information brought to the attention of the committee and incorporated in the records of the case.

It represents the viewpoint of Mayor Edward O. Bourbeau and the city officials of Chicopee.

Very sincerely yours,


MARCH 25, 1947.

To the honorable committee studying the Taft, Ellender, and Wagner bill I submit the following brief in behalf of Mayor Edward O. Bourbeau, of Chicopee, Mass.

We plead with your committee for the passage of this housing bill because the tremendously high cost of building material and labor prevents the average person in Chicopee from building his own home.

We plead for the passage of this bill because the average weekly pay in Chicopee is $41.98. Using the rule of thumb, family welfare would be jeopardized should a person pay more for a month's rent than his weekly income. A four-room house of which the prevailing cost would be $8,000 would cost the owner approximately $80 per month to carry.

We plead for the passage of this bill because Westover Field, an air base of the Army Air Corporation, is located in Chicopee, and we are housing in Chicopee at the present time 115 families of air-base personnel, and we have 623 applications of air-base personnel who are in dire need of homes in Chicopee. The following summaries will give a clear-cut picture of our immediate needs. Applications on file as of March 15, 1947:

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These figures are the number of families only. Many families consist of from one to four veterans of Warld War II per family. There are also many veterans of World War I and their families living at Chicomansett Village, Sheridan Circle, and Curtis, Terrace.

In conclusion I would like to leave the thought with your honorable committee that because of the location of the Army air base, Chicopee, Mass., is in a more desperate need of housing than the majority of other communities in the United States on a percentage basis. Your favorable recommendation on this bill will be most deeply appreciated by the industries and the citizens of western Massachusetts. I thank you.


Member of the Chicopee Board of Alderman,
Member of Chicopee Housing Committee.

APPLICATION FOR ALLOTMENT OF FUNDS For Postwar Low-Rent Public HOUSING Submitted by: Chicopee Housing Authority (corporate name of local housing authority)

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The above named local housing authority requests the Federal Public Housing Authority to allot funds, when funds become available, for the financial assistance of low-rent housing projects as summarized above and as described in the pages attached hereto. It is understood that such allotment of funds will be tentative only, pending the submission and approval of applications for financial aid and the execution of contracts for financial aid with the FPHA.

In submitting this request, the local authority states its considered opinion that the proposed projects are consistent with a sound public housing program for the locality, and that none of the families to be served can afford to pay enough to cause private enterprise to build an adequate supply of decent, safe, and sanitary dwellings for their use.

The local authority further states its intent to proceed with the projects as soon as funds are allotted to it by the FPHA and permanent building materials become available and, in any event, to enter into contracts for financial aid covering all of the proposed projects within three years thereafter; to develop the projects in conformance with the United States Housing Act of 1937 (as amended); and to administer the projects so that the amount of annual contributions will be the minimum required to achieve rentals consistent with a sound public housing program.

APRIL 14, 1945.


(Signature of Officer Authorized to Sign for Local Authority).


(Title of Authorized Officer).



1. Members of the Chicopee Housing Authority:

Rheo Gagna, chairman.

Home address: 690 Chicopee Street, Williamsett, Mass.

Occupation: Auto sales and service.

Date of appointment: January 1941.

Expiration of term: January 1946.

Joseph W. Williams, vice chairman.

Home address: 647 Grattan Street, Chicopee Falls, Mass.
Occupation: Bank teller.

Date of appointment: January 1943.

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Home address: 412 Broadway, Chicopee Falls, Mass.
Occupation: Labor union business agent.

Date of appointment: January 1945.

Expiration of term: January 1950.

Paul W. Geissler, executive director.

Home address: 78 Chapel Street, Chicopee Falls, Mass.

Official addressee and mailing address of the local authority:

Paul W. Geissler, executive director,

Chicopee Housing Authority,

Chicomansett Village,

Williamsett, Mass.

2. Technical staff: No technical staff is maintained by the authority. 3. Permanent legal area of jurisdiction of the local authority: The permanent legal area of jurisdiction of the Chicopee Housing Authority is the corporate limits of the city of Chicopee, Mass. The total number of dwelling units within the permanent area of jurisdiction according to the census of 1940 was 10,441. 4. Public housing projects in locality, excluding temporary projects: The following form lists all public housing projects consisting of permanent or demountable family dwellings which are located within the permanent legal area of jurisdiction of the housing authority. This includes all such projects whether or not under control of the authority. Projects listed are permanent war housing and are under the control of the authority.

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1 Average gross rent per unit per month, including all utilities whether provided by project or purchased separately by tenants, and vacancies, as of end of quarter preceding the date of this application.

5. Occupancy status of present projects:

(a). Percentage of vacancies reported in item 4 represent only the usual monthly turn-over. There are virtually no vacancies.

(b) The authority does not maintain a file of active applications of apparently eligible low-income families.

6. Equivalent elimination accomplished. Not a requirement for PA-849projects.

7. Funds available for preliminary work on projects. No funds are available from State, city, or other local sources for studies, investigations, and general planning for the proposed program.

8. Community support: Attached are photostatic copies of letters from the mayor and the planning board giving their approval for a low-income house development in the city.

9. As evidenced by their letters of approval, referred to in item 8, both the mayor and the planning board, after reviewing housing conditions in this locality, are on record as favoring development of a low-income housing program.

10. Prior to the war a cooperation agreement had been executed with the city for

1. Payments in lieu of taxes in amounts not to exceed sums authorized under current policies applicable to the low-rent housing program.

2. Equivalent elimination in connection with the proposed program as required under the United States Housing Act of 1937 as amended. Due to several local factors and the war emergency this program was suspended. The local authority believes that it will be possible to obtain a similar agreement under present needs.

11. Wartime changes in the community:

(a) The war has slightly increased the need for housing due to the location of the northeast air base, known as Westover Field, and the presence of a few new industrial plants which have all the indications of thriving in the postwar period. It is not anticipated that there will be any extensive decrease in the population after the war.

(b) The method of analysis presented in part II will, we believe, produce reasonably valid information as to the poswar need for low-rent public housing.

CHICOPEE PLANNING COMMISSION, City of Chicopee, Mass., January 11, 1945.



Chicopee Housing Authority,

Chicopee, Mass.

DEAR MR. GEISSLER: The Chicopee Planning Board have gone on record in favor of low-cost housing projects in Chicopee which are to be constructed during the postwar period.

The planning board, however, wishes to have the local housing authority present its opinions and views as to locations at the public hearings to be held throughout the year on rezoning the city. Thanking you, I am as ever

Yours truly,

Anthony J. Pimentel,
Executive Chairman,
Chicopee Postwar Planning.


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1. Area to which data in part II apply: Limits of the city of Chicopee, Mass.

2. Total present supply of family dwellings, excluding temporary public war housing:

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(c) Housing existing on Apr. 1, 1940, which has since been demolished or taken out of housing use:

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(1) Standard units.

(2) Substandard units.

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