Housing Bill Hot Expected To Affect Near-Record Building Vaccine for TB May Be Airborne
By A. ROBERT SMITH
Mail Jribune Washington
Correspondent
Washington (Special)-Hous-ing
construction Oregon
lumber's major market - is
now neanng a
near record
rate, 1.4 mil
lion, which
isn't expected
by federal
; housing off ic-
ials to be
radically .af
fected one
way or the
a. trtt sautk other by tne
outcome of the big housing
bill fight now shaping up be
tween Congress and the White
House.
'. The two different housing
bills passed by the Senate and
House both go beyond the
wishes of President Eisenhow
er in extending and enlarging
a number of housing pro
grams, such as public housing,
college dormitories and direct
loans to veterans.
This sharp conflict between
the Democrats in Congress
who put through the housing
legislation and the Republi
can president may become the
most substantive test of
strength and will of this ses
sion of Congress - for GOP
legislators are saying flatly
Eisenhower will veto the bill,
and Democrats are speculat
ing now to deal with this
major presidential weapon.
Not Serious Obstacles
The provisions of the var
ious housing bills which will
have the most noticeable con
sequences in building of resi
dential homes are not, how
ever, considered serious ob
stacles between the two par
ties. So that whoever wins
this political battle, these pro
visions may survive.
Mainly, there is the $6 bil
lion added authorization for
FHA mortgage insurance. This
is provided in both Senate
and House versions, and has
been urgently requested by
the president in a special
message to Congress. FHA
has only $1V4 billion left in
unencumbered authorizations
but has issued, on the assump
tion that new authorizations
will be made, well over $3
billions in agreements to in
sure. If all these agreements
were presented to be honored
by FHA now, it would have
to turn down over half of
them - until the new $6 bil
1 i o n authorization comes
through. A prolonged battle
between the political parties
might temporarily force FHA
to shut down.
A House-Senate conference
committee must work out a
compromise version of the
housing bill that will be sent
to the White House. Some of
the differences between the
House and Senate versions lie
in this area affecting resident
ial family home construction.
Raises Mortgage Maximum
The House bill raises the
maximum mortgage that can
be insured by FHA for one
family homes from $20,000 to
$25,000. The Senate bill leaves
it at $20,000, the level set in
1954. The Senate agreed with
the House version in raising
the ceiling on two - family
dwellings to $25,000. '
Another factor in the num
. ber of homes that can be built
- and sold - is the down pay
ment requirement The House
version reduces down pay
ments.considerably, especially
on higher priced homes. Un
der a new formula, down pay
ments would be dropped, for
example, from $1080 to $755
on a $17,000 home; from $1980
to $1355 on a $20,000 home;
from $3000 to $2105 on a
$23,000 home; from $7000 to
$3105 on a $27,000 home; and
from $10,000 to $5,000 on a
$30,000 home.
The House bill also allows
longer mortgage loans in or
der to' reduce the monthly
payments, especially for lower-priced
homes so that more
low income families may
qualify for FHA - approved
homes. Loans would be leng
thened from 30 to 35 years, if
the lender agreed to this long
period. On a $13,500 dwelling,
this extension would cut
monthly payments by $4.05.
Loan Limit Unchanged
The Senate bill did not re
duce down payments require
ments or change the existing
30-year loan limit. The ad
ministration did not recom
mend any change in down
payments, but it did suggest
raising the ceiling to $25,000
on the size of mortgages for
single-family housing.
Although both House and
Senate bills were pushed
through by Democrats, they
revealed different theories
about housing. The Senate
Banking Committee did not
recommend as many liberaliz
ing features as the House
committee because it said "a
trend has developed in the
direction of producing higher
prices houses which the com
mittee feels does not serve
the mass market for new
homes . . . every effort should
be made to reverse this trend
and that builders should be
encouraged to direct their ef
forts to providing more homes
for the money. There should
also be a continued effort to
encourage the Homebuilding
industry to concentrate on
lower cost homes, where the
demand and need -are real
and urgent."
Need Realised
The House committee felt it
was helping low income hous
ing by extending the loan
period to 35 years, and it re
ported this view:
While your committee be
lieves that the bulk of FHA
operations will continue to be
in the field of . low and me
dium price homes, we do rec
ognize the need for a more
realistic mortgage maximum
which will enable FHA to
play its role in helping the
financing of the normal price
range of most American
homes. This normal range in
cludes homes in higher cost
areas, homes which are suit
able for large . families, and
those which contain the ad
ditional space and equipment
frequently demanded on to
day's market."
One other point on which
all are agreed is that the GI
mortgage rate should be rais
ed once again. It would go
from 434 to 5V4 per cent. It
was raised last year from 4V
to 4 per cent after mortgage
money became so tight at the
lower -figure that relatively
few veterans could get loans
under the program. World
War II veterans must apply or
lose their eligibility by July
25 of next year. Korean vet
erans have until Feb. 1, 1965.
On another point, the ad
ministration recommended a
more liberal provision than
Congress provided. It wanted
the Federal National Mort
gage Association to have au-
Chicago (DPD - Scientists
predicted Wednesday that hu
mans may be immunized from
tuberculosis by simply breath
ing airborne vaccine.
Dr. Gardner Middlebrook,
director of research at the
National Jewish Hospital,
Denver, told of vaccinating
children and adults with
sprays of BCG, the anti-tuberculosis
vaccine.
In experiments held at the
University of Illinois, 30 vol-
thority to buy mortgages
valued up to $20,000. The
ceiling is now $15,000. The
House raised it to $18,000. The
.Senate didn't change it.
Price 10 Cents
MEDFORDeMS&s
54th Year
Tribune
2nd SECTION
MEDFORD, OREGON, THURSDAY, MAY 28, 1959
Pages 1-6
Elk-Trail Students Tour Tribune Plant
Students, of the Elk - Trail
schools, grades three and four,
toured the Mail Tribune
May 27. The students visited
the news room, various offi
ces and the composing and
make-up rooms during the
morning.
Accompanying the students
were Mrs. Dorothy Hume and
Mrs. Lola Work.
Students included Connie
Anderson, Kitty Barlow, Pen
ny Fry, Donna Hawkins, La
Vonne Myers, Jimmy Gerry,
Orva Oliver, Larry Perry,
Carol Ragsdale, Shirle Schu-
der, Charles Sitzer, Jerry
Wakeman, Wes Millard, Clar
ice Wehde, Gloria Ragsdale,
Joy Wilson, Judy Wilson, Gor
don Poitevent, Billy Bard,
Jack Davis, Tommy Lawson,
Roy Myers, Cynthia Fry,
Laura Dawson, Linda Rob
bins, Sheron Oliver, Mickey
Kalebaugh, Jacque Carlton,
and Kathy Kincade.
Three-fourths of all the
farm work in the United
States is done by farmers and
their .families and only one
fourth is done by hired help.
South Carolina has grown
tea experimentally and with
success but production costs
were too high.
More than 400 active vol
canoes have been located in
the world and many more that
are inactive.
MICE MEG
Big Double Loads Red Fir
Summer Prices v
Better wood in May & June
MEDFORD FUEL CO.
Ph. SP. 2-21 1 1 Court at McAndrews
ESTABLISHED 1896 ,
I GREEN
I.S TAMPS,
unteers, aged 2 to 31, sat in a
closed chamber and breathed
regulated amounts of BCG for
45 minutes. So far, 27 of the
30 have "takes" (successful
vaccinations).
"All SO may be takes," said
Dr. Sol Rosenthal, who guided
the experiments here, "It's
still too early to know."
About 17 per cent of the
Great Salt lake in Utah is
salt as compared to the aver
age 3.5 per cent salt content
of the oceans. '
Electrical Wiring t Repair
Industrial Commercial
Residential
Call Jack Henbest
ROGUE ELEC. SERVICE
SP 2-6603 961 Shafer Una
for a fast
getaway . .
ii
Buy a
VOLKSWAGEN!
Any time day or night the
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See it at-
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