Mr. RAINS. It is not serving a purpose to a man caught in a disaster, is it? Mr. McLEAISH. It is serving the purpose that he is getting the loan. Mr. RAINS. But he is paying a high price for it when he is in trouble. Isn't that correct? Mr. McLEAISH. The size of the loans is about $1,100 at the present time. The difference between 3 percent and 5 percent is $22 a year. Mr. RAINS. Do you know any Government loan that is in excess of five except the title I loan to repair housing? Mr. McLEAISH. That is in excess of five? Mr. RAINS. Yes. Mr. McLEAISH. Our title I, Bankhead-Jones Act, is at 412 percent. Mr. RAINS. I must get back to the housing. I note in the second paragraph, Mr. Scott, of your statement-which appears to me to be really an understatement-I agree with you, but I think it is a great understatement when you say there is a great need for improvement in dwellings and other buildings on the farms. The simple truth is that a greater need exists for housing on farms than in cities. Isn't that a fact? Mr. Scorт. A great need exists on farms. We didn't mean to understate it. Mr. RAINS. Would you mind putting into the record at this point the available statistics-I think it is from the census on housingshowing the number of substandard farmhouses in the country? Do you have those figures? Mr. SCOTT. We would be glad to supply that. Selected characteristics of rural farm housing-United States Census of Total dwelling units_. Housing, 1950 Item Number 6,357, 943 Condition and plumbing facilities: Number reporting 6, 134, 576 Not dilapidated : With private toilet and bath, and hot running water---- Total Dilapidated: With private toilet and bath, and hot running water____ Total Not reported‒‒‒‒ Water supply: Number reporting_. Hot and cold piped running water inside structure_. No piped running water Not reported‒‒‒ 1, 430, 512 128, 035 920, 891 2, 460, 315 4,939,753 30, 442 1, 164, 381 1, 194, 823 223, 367 6, 248, 867 1,784, 021 886, 807 168, 732 3, 409, 307 109, 076 Selected characteristics of rural farm housing-United States Census of Housing, 1950-Continued Item Toilet facilities: Number reporting-. Flush toilet inside structure, exclusive use_ Not reported- Bathing facilities: Number reporting_. Installed bathtub or shower, exclusive use_ Installed bathtub or shower, shared_. Not reported-- Heating equipment: Occupied dwelling units_. Number reporting- Central heating: Piped steam or hot water_ Total Noncentral heating: Other means with flue__ Other means without flue_ Total____ Not heated___ Number 6,253, 901 1, 731, 682 24, 408 4,099, 544 398, 267 104, 042 6, 187, 000 1, 844, 600 22, 879 4,319, 521 170, 943 5, 721, 022 5,588, 245 182, 845 830, 305 1, 013, 150 3, 841, 065 668, 990 4, 510, 055 65, 040 132, 777 Not reported__. Unoccupied dwelling units_____ Electric lighting: Number reporting_. With electric lights_ No electric lights--. Not reported__ Kitchen sink: Occupied dwelling units___ Number reporting---- With kitchen sink_ Not reported-- Unoccupied dwelling units___. Number of rooms: Number reporting-. 1 room. 2 rooms- 3 rooms. 4 rooms.. 5 rooms. 636, 921 6, 202, 235 4,817, 770 1,384, 465 155, 708 5, 721, 022 5, 630, 150 3,086, 915 2,543, 235 90,872 636, 921 6, 166, 561 110, 249 322, 974 680,000 1, 292, 936 1, 131, 300 1,070, 158 6 rooms. 7 rooms. 8 rooms. 9 rooms or more_. Not reported--- 651, 089 482, 963 424, 892 191, 382 Selected characteristics of rural farm housing-United States Census of Housing, 1950-Continued Item Number of persons: Occupied dwelling units__ Number 5, 721, 022 Source: U. S. Bureau of the Census, U. S. Census of Housing: 1950. Vol. I, General Characteristics, Chapter 1, U. S. Summary. U. S. Government Printing Office, Washington, D. C., 1953. Tables 7-13. Mr. RAINS. I would like the number to show how many units do not have inside toilets. I would like for you to show the number, if the statistics show it, of those that have no bathtubs and no sewerage of any type. Mr. SCOTT. We would be glad to do that, sir. Mr. VANIK. At that point, would you yield? Mr. VANIK. Those records could also indicate the per-person occupancy. I think that has a great deal to do with a slum condition. The CHAIRMAN. The what? Mr. VANIK. The per-person occupancy. Mr. RAINS. Why did the Department not ask for any appropriation for title V, direct loans to farmers, last year? Can you explain that to us? Mr. McLEAISH. I think the bill was passed rather late in the year last year, and it was too late for us to get funds. Mr. RAINS. What was to prevent you from sending your views to the Congress prior to the passage of the bill as to whether or not you would like to have an appropriation? Mr. McLEAISH. Those things have to be cleared through the Bureau of the Budget. Mr. RAINS. You are telling me that the Budget and administration didn't favor any funds for the direct loans to farm housing; that is correct, isn't it? Mr. McLEAISH. I can't say what the administration felt. Mr. RAINS. At any rate, you did not get it cleared through the Budget? Mr. McLEAISH. No, sir. Mr. RAINS. Did you make an effort to get it cleared? Mr. McLEAISH. We did make an effort; yes, sir. Mr. RAINS. It is a fact that the payment record of people who have bought homes under title V, direct home act, stands at 106 percent of payment today? Mr. McLEAISH. That is correct. Mr. RAINS. In other words, it is the finest repayment schedule of any Government loan that has been offered, whether VA or anything, isn't it? Mr. McLEAISH. Not having other figures to compare, I could not say. We can't complain about that program's repayment record. Mr. RAINS. Why not expand that program to the farmers in America, those living in the type houses we have talked about recently, which the record will sustain, with a real appropriation and carry on the job that needs to be done, you admit, and that it will be repaid to the Government? How do you feel about it? Mr. McLEAISH. We feel this way: That is one of the reasons we recommended the insured authority. Mr. RAINS. You had the insured authority all the time. That was there before title V, was still in it, and is there now. Mr. McLEAISH. I don't think the insured authority has been there. Mr. RAINS. It has been in all the time. Mr. McLEAISH. Under the Bankhead-Jones Farm Tenant Act, we have the insured authority. Mr. RAINS. Since 1946. Mr. McLEAISH. Since 1946. Under that act, this year as a result of the half of 1 percent interest increase we have commitments from private lenders of around $76 million compared to $8.5 million the year before. We have made $27 million of insured loans this year, under the Bankhead-Jones Farm-Tenant Act, compared with that of $8.5 million. We will loan $19 million of appropriated funds, or a total of $46 million this year compared to $28 million of loans in total last year. The same thing would apply to housing. We are always limited on direct loan funds. There is always a figure set on housing under these direct appropriations that to us seems inadequate. Mr. RAINS. Mr. McLeaish, of course you know and the record shows that the record under the Bankhead-Jones insured farm housing was not very impressive, has not been, and that is why we passed the title V some 3 or 4 years ago, and is not now impressive. Do you want to leave out insured loans altogether? Mr. McLEAISH. No. We will use both funds, appropriated plus insured funds. In other words, this year we will make roughly $20 million more of loans under Bankhead-Jones than we did the year before because of the insured authority. Mr. RAINS. How many are you going to make on direct loans? Mr. RAINS. How much are you going to ask for in the appropriation budget this year under title V if it is continued in the act? Mr. McLEAISH. That is a question I don't think I can answer categorically right now. Mr. RAINS. You mentioned the fact also in your statement that there are farmers-Mr. Scott, there are farmers and ranchers who need housing loans who cannot qualify for farm ownership loans. I don't know of a farmer or rancher who couldn't qualify under title V. What would prevent them from it? Mr. SCOTT. There are some I understand that are larger than the determined family size farm that is a requirement, you know, in the making of these loans. It is our view that there are not a great many of those. Mr. RAINS. That is a very minor number, those extremely large farms? Mr. SCOTT. It is, sir. If the Congress feels that those few instances should be provided for under this bill Mr. RAINS. That is not the ones I am thinking of. I am thinking about the fellow who has a small farm and nothing to make his downpayment with, which is required under the insured loan. Under title V he could get a loan, couldn't he? Mr. SCOTT. That is right. Mr. RAINS. If you eliminate title V, that man who lives on a small farm-the man who has made this 106 percent of repayment record, those same type men-they couldn't qualify under the insured loan, could they? Mr. McLEAISH. I believe most of them could. I won't say all of them could. In other words, the insured loan provision as proposed in title V does not require a man who owns a farm to pay 10 percent down on his house. Mr. RAINS. Yes, Mr. McLeaish. I remember when the first of these loans was made, was made in Congressman Jones' district, and the second was made in my district. I have pretty close touch with those people, and the ones that made those loans and have made the wonderful repayment record were people who had mortgages on their places and would not have been able to put up the 10-percent downpayment. So when you ask to cut off the direct loan authority under title V and leave it all in insured loans, aren't you afraid you are going to leave out in the cold the very people who needed it most? Mr. McLEAISH. I don't know. I haven't read 6413 very closely, but I don't think it calls for the same 10 percent requirement that the Bankhead-Jones Act does. Mr. RAINS. I haven't covered that phase of it. Do you have there before you this 6414? Mr. McLEAISH. No, sir; we don't. The CHAIRMAN. We have a high-school class from Monrovia, Ga., here. We are glad to welcome you and are glad you have had the opportunity to come to the Capitol to see your Representatives. We are glad you could visit here. Mr. RAINS. Would you have available—and, if not, Mr. McLeaish, or Mr. Scott, will you put in the record the number each year of farm loans you made under the Bankhead-Jones insured program during the years of '46, 47, 48, 49, and '50, up until the passage of title V? Mr. Scorт. We will be glad to. Mr. RAINS. And dollar amounts for each one? Mr. SCOTT. Yes, sir. Mr. RAINS. Also the repayment record? |