Better Housing- 1934-193 5

An

lnterview With James A. Moffett, Federal Housing Administrator

In a recent interview, James A. Moffett, the Federal Housing Administrator, said: "The year 1934 marks a milestone in housing for this country."

Administrator Moffett's statement can better be appreciated by a review of the activities of the Federal Housing Administration.

Mr. Moffett accepted the task of organizing the Federal Housing Administration on June 30, three days after Presiclent Roosevelt signed the Act. Six weeks later-by the middle of August-this organization was completed and the banks and other lending institutions received the rules and regulations regarding Title I-the Modernization Plan. Within two weeks-September first-4,833 banks, building and loan associations and other lending organizattons had been approved to make loans under the Modernization Plan.

Thus was launched the Better Housing Campaign which is universally ,considered to be one of the most constructive things done in the entire recovery program.

This campaign, scarcely eighteen rveeks old has a remarkable record of achievement. It has made the home owners of the nation home c,onscious. It has loosened credit with 11,887 banks and other lending organiz.ations having been approved for making loans under this Plan. It has taken thousands of men off relief rolls and put them on pay rolls.

It is estimated that a total of $197,992,884 worth of repairs has resulted directly from the Better Housing Program from the beginning of the drive through December 28. 71,899 loans under the Modernization Credit Plan were reported through December 28, bringing the total amount of 'credit advanced through that date to $30,118,904.

There were on that date 4,86O community carnpaigns organized or about to be organized.

The Federal Housing Administration has by its stimulation of the building and heavy goods industries, encouraged large corporations to spend, in new equipment, building and modernization, millions of dollars. Over a half a billi<ln dollar program of plant improvement and replacement for 1935 by several large industrial .con,cerns is reported by the Federal Housing Administration. Three great industries alone have planned for an outlay of $313,000,000 in 1935.

By a governmental expenditure of $1,300,000 for a nationwide organization and educational campaign the Federal Housing Administration has regenerated up to De,cember 28, nearly $200,000,000 worth of business in repairs and modernization of homes and small business.

As to the future-1935 to be specific-Mr. Moffett said:

"The Modernization Program has been in operation since about the middle of August and the results thus far are sufficient to indicate the immense possibilities in the plan, for a stimulus to business and industry during the year 1935.

"We have just started ! The Modernization program, as stipulated in the Nati,onal Housing Act, is to continue until December 31, 1935; so it is to last until a year from now. When we bear in mind that, according to careful surveys, at least 29,000,000 Ameri,can homes are prospects for modernization, we realize how immense the market still is for labor and all the many materials needed in repairing and equipping homes to bring them up-to-date.

"Every property owner is a business prospe.ct for the building industry, and for all other lines engaged in furnishing and equipping homes and business structures.

"One thing which is worthy of spe,cial attention is the fact that through our modern ization .campaigns, we are creating a year-nound market. There are building and home equipment companies, whi,ch in the past have had seasonal a,ctivity. But we believe we are creating an allseason demand for modernization and all the products needed in repairing and furnishing homes.

"Further,more, we are creating a wave of building and repair so great that it will pay every business man to ride it at its crest and make the most of it."

Asked if there was a significant influence the functioning of the provisions of the Title I of the National Housing Act has had on banks and financial institutions. Mr. Mof_ fett replied :

"\Me are educating thousands of banks in the special kind of financing that they are using for modernizati,on. That is,, lending money. on character credits and time payments. Under our Government insurance plan, money may be borrowed fgr home modernization by any man who is re_ liable and has a steady income indicating his ability to pay back in monthly installments what he borrows.

"Up until last August, when the campaign started, only about 350 lending institutions had ever loaned on character credit. Now, thousands of them are learning that there is no better credit in the worrd than that of the reliable, employed American citizen who promises to pay what he owes."

In reply to the euestion,-,,Do you believe the banks will ,continue ,character lending,', X{r. Moffett said:

"It rvould be a great misfortune to the ,country and a great loss to industry if this character lending cale to a stop the last day of 1935. That itwill nof come to a stop we are 'convinced for after 1935 the bankers will feel that.it will be good business to lend money on character credit, regarciless of whether the borrower wants to spend the money on modernizing his home, or buying cattle for l_r:. f"*, or to purchase anything else that- he-may need. What I mean is that the Housing Administration is Lducat_ ing the banks to carry on indefinitely a tremendous amount of lending, which will be a godsend to industry, and there_ fore an opportunity to develop far more business than in the past.

_.Asked regarding the possibility of future building under Title II of the Act, Administrator Moffett stated:

"Great as the Modernization market is, a still more enor_ mous one is about to be presented to industry under Title II and III of the Housing Act'

"This program is for the building of new residences' The Housing Aclministration published, the first of November, the rules and regulations controlling it. The basic {eature is 10O per 'cent mutual insurance of mortgages on homes up to 80 per cent of their appraised value, each home not to cost more than $20,000, the mortgages to run twenty years or less.

"We are authorized by the Housing Act to insure a billion dollars of moltgages on new homep and another billion of old mortgages.

"This country needs now 5,00O,000 new homes' Five million homes, with the average cost of each home as low as $4,00O, gives us a total of twenty biliion dollars in new homes as soon as we can get to the job of building them'

"The immensity of that market for the building industry, heavy goods and numerous other lines challenges imagination to do it justice."

W. E. COOPER LEAVES FOR THE EAST

W. E. Cooper, secretary of the Caddo River Lumber Co., left Los Angeles on January 15 for Arkansas where he will spend a few days visiting the company's sawmiils' He will then go to Kansas City to attend a meeting of the board of directors the latter part of the month. Before returning to California, he expects to make a trip through the Middle West and East cailing.on their representatives and the retail trade.

Purchases S. S. Tillamook

The Lawrence-Philips Steamship Company announces the purchase of the S. S. Tillamook from the Hammond Lumber Company on December 27,1934. The vessel un. derwent considerable repairs at the Los Angeles Shipbuilding and Drydock Company, and sailed Saturday, December 29, under the command of Captain John T. Hubbenette for Grays Harbor.

The S. S. Tillamook was built in 1918 at the Albina Engineering Works at Portland, Ore. It was designed for use by the Norlr'eg'ian government for the North Sea lumber trade but was taken over and completed by the U. S. Emergency Fleet Corporation. It is known as a small point type and is a sister ship to the S. S. Point Loma. It is described as a four gear, single deck, steel steamer of 2,119 tons. The vessel was formerly the Point Arena aud was operated by the Hart-Wood Lumber Company but was purchased by the Hammond Lumber Company in 1927 and the name was changed at that time to the Tillamook.

The hailing port has been changed from San Francisco to Los Angeles, and they intend to change the name to Lawrence Philips after Don R. Philips' youngest son as soon as the necessary steps can be taken. The vessel rvill haul coastrvise lumber principally between Los Angeles and Grays Harbor.

WARREN B. WOOD VISITS SAN FRANCISCO

\Marren B. Wood, E. K. Wood Lumber Co., Los Asgeles, was a re'cent visitor to the company's San Francisco office rvhere he spent a few days on business.