Article 1 THE PROPOSAL Veterans.-Thousands of veterans are without homes and apartments and are desirous for joining together for mutual ownership or investment in single homes and multiple dwellings. It is agreed that private capital cannot build homes and houses for profit due to the high cost of materials and labor. It is therefore proposed: Article 2 Housing. It is proposed to join together groups of responsible veterans and form a mutual coperative housing corporation under States housing laws-a nonassessable, nonprofiting stock corporation for investing in land and new residential homes and houses. Article 3 Corporation. The corporation shall have articles providing for the right to buy idle land, contract to build homes and houses, enter into agreement for mortgage loans, sales of bonds, and do anything and everything under the housing laws for the good and welfare of the corporation's stockholders. Article 4 Investors. The veteran investor shall join with other home seeking veterans and organize a committee who is to follow the plan as laid down, to wit: (a) agree to fill out an application covering right for screening, character, job status, wages, financial responsibility, family number, rooms desired, terms agreeable, manner for accepting rules and regulations on management, etc. Article 5 Private capital.—The parties to the group will approach a financial institution interested in erecting new residential homes and houses under terms as put forth by the investing veteran group. 2. Contract terms shall be for the financial institution to buy land as recommended by the veterans groups; erect and number of rooms as contracted for by the group; upon completion, agree to deed over in fee simple, homes and multiple dwellings erected; terms acceptable to veteran investors, acceptance on the part of the insurer (the Government), approved by the State and municipality where erection of homes and houses take place. Article 6 The Government.—Under laws of the Congress and Senate of the United States granting authorization and power for financial aid and assistance as made and provided for, incorporated in the NHA or RFC, parties to the agreement shall proceed for the purposes intended. Special agency shall be initiated by the Government for protection and benefits all parties to the agreement are entitled to. Artice 7 States, etc.-States laws shall be made effective on aid to the veteran investment, local laws for special concessions for economy, and other housing laws necessary to meet. Article 8 Example.-A cost on investment per room based on today's estimate room cost of $2,000 per room (land and building), cost on management, operation, etc. (rough figures), fairly accurate, follows: Capital, $7,000,000, improved land and building (3,500 all accommodation rooms). Corporation shares, 1,000 non assessable and nonprofiting. Annual income 500 3-room apartments, monthly rent, $40; annual income return (12 months) 500 4-room apartments, monthly rent, $50; annual income return (12 months) - Total annual income (1,000 apartments) $240,000 300, 000 $540,000 Annual management operation cost Interest, 3 percent per annum, $4,000,000 mortgage- $120,000 120,000 60,000 Total__. 3. Repairs, allow first 5 years estimate, per annum. 1. Taxes, assessed value $3,000,000, 3 percent per annum. 2. Fuel (oil-coal) 3,500 tons, $10 a ton, per annum. 300,000 90,000 35,000 20,000 30,000 10,000 2,500 487,500 4. Wages, executive and personnel, per annum. 5. Insurance, liability-fire, per annum (estimated) 6. Light service, per annum_. Total investment and management operation cost--- 52, 500 Balance remainder at close of annual cost and investment---Insurance fund set aside for protection to payment of mortgage and bonds rate of one-half of 1 percent from balance. Article 9 Planning. The corporate investment in applicable to groups of small homes, two-family houses and multiple dwellings. Article 10 Special. Where special grants are had, 10-year period of tax exemption on improvements made (only land taxable), deferment on interest covering equity bonds, cost per month on rooms is lowered. 2. Can be used for substitution for tax housing subsidies. Article A SPECIAL FEATURES Classes.-There are three classes of the cross section of our American families: The first, those who must receive financial aid and assistance through tax subsidies for low-cost-housing developments; the second, the middle-class American families, whose wage income per week averages from $35 to $50, by mutual cooperative housing; the third need no help as they come under the high wage bracket income earning class-we treat with the majority, the second class. Article B Private capital cannot build at today's high cost for room construction unless room rental per month can be paid, equal to $20 a room. Under this plan millions of homes can be erected; financial institutions with billions lying idle can find a profit-sharing market for protective investment; the Government protected on insuring mortgages, protected on purchase of equity bonds for resale to the public, with the veteran investors able to meet the investment cost. A drop in material costs adds to the protection on lower rental investment in mutual cooperative housing; also special articles for unemployment, sickness, death; investment can be agreed upon for an absolute guaranty against loss on investment and homes-again developing character neighborhoods with an investment in the area is an attraction; placing the building industry in the security market will destroy speculation which creates high costs for rooms; the years for prospering business; creating steady employment with high-wage income for labor add to the feature for such operations, and the reduction in cost for crime, sickness, defeat of lowering the morale by family congestion should be taken into consideration for public and Government support and endorsement of the proposal. Article C Agency. In order to succeed in this enterprise it will be necessary to make a Veterans' Division of Housing a part of the Agency (NHA or RFC) for the purposes intended-educational, service, and liaison. The committee respectfully urges this. A resolution now in possession of the House World War Veter ans' Affairs Committee chairwoman if enacted into law by the Congress and Senate of the United States, will provide the necessary laws and machinery to make the proposed veterans mutual cooperative housing corporation a decided success. Respectfully submitted. CHARLES F. SANDER, Army and Navy Union, United States of America. Endorsed by United War Veterans Board, New York City, President C. F. Sander. RESOLUTION FOR LAWS TO GRANT THE NHA OR RFC THE RIGHT FOR TERM MORTGAGE LOANS AND TO PURCHASE EQUITY BONDS FOR PUBLIC RESALE FROM VETERAN MUTUAL COOPERATIVE HOUSING CORPORATION Whereas the Army and Navy Union, United States of America, America's oldest veteran organization, meeting in national council of administration session, recognizing the need for housing millions of homeless veterans and their families; and Whereas no definite plan in effect to attract private capital and stimulating investment for new residential housing on the part of the Government, States, and municipalities; and Whereas with no laws on the statute books of the Government, States, and municipalities to promote interest on the part of the public investors, and on aid and assistance for veterans for solving their housing problem: Be it 1. Resolved, That the Army and Navy Union, United States of America, recommend to the Congress and the Senate of the United States the following: (a) That the Reconstruction Finance Corporation under its subsidiary Loan and Mortgage Company, or the National Housing Agency through a "Special Division of Veterans Housing Loan and Mortgage Company," by an act of law be authorized and empowered to insure mortgages of reasonable risk on insurance; and (b) That the Division of Loan of the afore-named subsidiary Corporation or Company be authorized and empowered to purchase for resale the equity in veteran mutual cooperative housing corporations, over and above the figure of mortgage fixed for loan and insurance under the terms as follows: (c) That veteran applicants for such kind of aid and assistance as enumerated in articles A and B of this resolution shall show that they are honorably discharged ex-service men and women of a war, expedition, and campaign engaged in by the armed forces of the United States; and (d) That they are citizens of responsibility, employees engaged in private or public occupation, professions, etc., or in business earning a standard of the American living wage, and reasonable profit income from the business engaged in, a person of good moral character, with proof of having subscribed to and member of the Veteran Mutual Cooperative Housing Corporation requesting financial aid and assistance for investing in a group of single homes, two-family houses, and multiple dwellings; and (e) That the requisite for qualifying and consideration on the part of a group of veterans shall be as follows: (1) That arrangement can be made for private capital to build a group of single homes, two-family houses, or a multiple dwelling for housing more than two families at the cost of private capital; (2) that upon completion of building, title is to be transferred to the veteran investors; (3) terms are to be that the veteran investor corporation shall give back under longterm low-interest and amortization rates of payments, a mortgage duly executed by the veteran investing corporation, insured by the Federal Mortgage Insurance Corporation set up for this purpose, with the payment of the difference in mortgage amount agreed upon, and cost for construction; and (4) that agreement on the part of the investor private capital interests, the veteran investing corporation and the Federal Mortgage and Loan Corporation is to be entered into and agreed upon prior to the initiation of a contemplated housing development coming under the proposed laws. (f) That the requirements for applying for and for consideration for aid and assistance from the Government for the purposes as hereinbefore enumerated shall be as follows: (A) Application form for proof of financial and moral responsibility for qualifying for aid from the proposed Federal agency to be organized for the purposes intended. (B) Agreement form of all potential subscribers for a share of stock representing amount of individual and collective investment, covering nonprofiting, nonassessable shares, monthly rentals for payment of interest and reduction of principal, owner investor agreement entered into between shareholders, satisfactory to the private capital investor and the Federal agency initiated for the purpose in insuring loans and the purchase of equity bonds to be issued by the veteran investor corporation, and such other requirements for the good and welfare of all concerned; and be it further 2. Resolved, That the Army and Navy Union, United States of America, attached prospectus showing a brief outline for the initiation and organization of veterans mutual cooperative housing corporations receive careful study and consideration; and further 3. Resolved, That consideration in support and aid for advising, educating, and cooperating with groups of veterans interested in joining together for investing in group-ownership housing developments be given and that the Congress and Senate of the United States consider making a part of the proposed law a provision for initiating a "Special Division of Veteran Housing" for protecting the interests of the private capital investor, the Government and the investing veterans; and further 4. Resolved, That the Army and Navy Union, United States of America, through its national legislative officer request of the Honorable Edith Nourse Rogers, chairlady of the House World War Veterans' Legislation Committee, that a bill for Congress and Senate to enact into law the proposed Federal Mortgage and Bond Veterans Housing Act be prepared, time being of the essence of the request, and that the distinguished Congresswoman from Massachusetts select a distinguished Senator for preparing a companion bill for Senate consideration. 5. Wherefore your petitioner, the Army and Navy Union, United States of América, endorses the resolution of the Departments of New York and Massachusetts, and prays for the relief sought. Unanimously adopted. National Legislative Officer. National Commander. Endorsed by United War Veterans, New York City, C. F. Sander, president. Members: United Spanish War Veterans, Veterans of Foreign Wars, Disabled American Veterans, Jewish War Veterans, Catholic War Veterans. STATE OF MINNESOTA, Re S. 866, section 502. BANKING DIVISION, DEPARTMENT OF COMMERCE, Secretary, Committee on Banking and Currency, United States Senate, Washington, D. C. DEAR MR. HILL: My attention has been called to a provision in section 502 of the Taft-Ellender-Wagner bill, S. 866, which provides for the conversión of a Federal savings and loan association into a State-chartered savings and loan association. According to this section, the conversion is subject to approval, by regulations or otherwise, by the Board or the Federal Home Loan Bank Administration and by the Federal Savings and Loan Insurance Corporation. As a State supervisor of savings, building, and loan associations, I am opposed to this provision because it will tend to retard the conversion of Federal savings and loan associations into State associations, if any of them desire to do so. I feel there should be a two-way conversion comparable to the provisions of the conversion in most States from State to Federal charter. The only exception should be in the case where a portion of the shares of the Federal association is held by the Secretary of the Treasury or the Home Owners' Loan Corporation. The chairman of our executive committee, Mr. E. H. Leete, New York, wrote you March 21 relative to this matter and gave in that letter the language which is acceptable to our National Association of State Savings, Building, and Loan. Supervisors, and I feel this would place the conversion of either State or Federal associations on an equitable basis. In Minnesota a State association may convert to a Federal association upon a 51-percent vote of the shareholders present at the meeting called for that purpose, and the conversion is not subject to our approval. If the management and shareholders decide they wish to convert either way, there should be nothing in either the State or Federal law to prevent the conversion. In view of this, I hope you will find it possible to have the bill amended along the lines suggested by Mr. Leete. Sincerely yours, F. A. AMUNDSON, Commissioner of Banks. NATIONAL ASSOCIATION OF MUTUAL SAVINGS BANKS, Hon. CHARLES W. TOBEY, Chairman, Committee on Banking and Currency, United States Senate, Washington 25, D. C. MY DEAR SENATOR TOBEY: This letter is addressed to you as chairman of the Senate Banking and Currency Committee, and through you to the other members of the committee. I am writing on behalf of the mortgage comittee of the National Association of Mutual Savings Banks, whose members comprise most of the mutual savings banks of the country. The subject of this letter is S. 866, a bill entitled "National Housing Commission Act." The member banks of our association have an interest in S. 866 by virtue of their position as home mortgage lenders. The total deposits in mutual savings banks are in the neighborhood of $17,000,000,000, and a substantial part of those deposits are available for mortgage lending. We have examined the bill and find that in most important respects it is substantially the same as S. 1592, upon which extensive hearings were held by the Banking and Currency Committee during the Seventy-ninth Congress. The late Mr. Philip A. Benson, then president of the Dime Savings Bank of Brooklyn, N. Y., and Mr. Earle B. Schwulst, executive vice president of the Bowery Savings Bank of New York, were the two mutual savings bankers who appeared with the representatives of the American Bankers Association at the hearings on S. 1592 before your committee on December 5, 1945. Because of the substantial similarity between the present bill, S. 866, and the old bill, S. 1592, the association will not request time to be heard. However, the testimony and the statements above referred to before the Senate Banking and Currency Committee on S. 1592 are a matter of record. We hope that those views will be considered in weighing the merits of the new bill. In addition, we respectfully suggest that section 502 of the bill be modified to include mutual savings banks among the types of institutions into which a Federal savings and loan association may convert. This section in its present form would authorize any Federal savings and loan association to convert into a State-supervised local thrift institution, but mutual savings banks are not mentioned. There have been instances where Federal savings and loan associations have desired to convert into mutual savings banks, and we believe that they should be allowed this privilege by the law, subject to administrative determination of advisability in individual cases. Respectfully, Hon. CHARLES W. TOBEY, FRED N. OLIVER, General Counsel. THE NEWTON LUMBER & MANUFACTURING Co., Chairman, the Banking and Currency Committee, United States Senate, Washington, D. C. DEAR SENATOR TOBEY: We notice by news reports that Congress is to consider again another bill on the order of the old W.-E.-T. bill. We have talked to many people in past months when this bill was up for consideration before, and none of us can understand the necessity of this whole set-up. It is our understanding, from information we have, that this cumbersome bill is already up to 112 pages. It would seem to us, with all the effort that is being |