President Ccllls On Public qnd Privcrte Enterprise To lmprove Nqtionql Housing

\\rashington , Jan. 25-President Eisenhower today called for an overhaul of the nation's housing program, putting chief reliance on private enterprise but asking 140,000 new public housing unils in the next four years.

In his fifth special message to Congress, Eisenhower urged a "new and experimental" Iiberalization of Federal mortgage insurance to help wipe out slums and make home ou'nership possible for millions.

One nerv feature of the Eisenhower program was proposal for liberalized credit terms for the purchase of houses.

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He stressed twin goals: "Good housing in good neighborhoods for all Americans; and a continued "high level of housing construction" as a bulwark of prosperity..

Though he asked for 35,000 subsidized dwellings a year, compared with 20,00O now permitted, Eisenhower spoke against any program that rvould "make our citizens increasingly dependent upon the Federal Government to supply their housing needs."

He declared: ior our people.

Ncvertheless he asked Congress to earmark $950,000,000 for grants and loans to help cities renovate slutns or eradicate them.

The long message also recommended:

Easier Federal Housing Authority (FHA) borrou'ing for repair and maintenance.

Liberalized credit on the purchase of old houses.

More flexible interest rates on FHA and GI home financing, to insure that mortgages remain an attractir-e investmeni.

A gradual withdrau'al of Government frotl its rt.rle.as a supporter of the mortgag'e money market.

The eight-point White House program was less specific than the December 15 report of the President's aclvisory comrnittee on housing, on which it was based.

The committee, headed by Housing administrator Albert M. Cole, called for this kind of experimental program rvhich, if successful, might eventually replace subsidized housing: No-down-payment, 40-years-to-pay mortgage insurance by the Federal Housing Administration on inexpensive homes.

This would be coupled 'n''ith a lease-and-purchase plan whereby FHA would help builders put up rental dn'ellings whos;e occupants, when financially able, could buy them withc,ut down payment, paying for them like rent.

Eisenhower's request was less radical. He asked "long- term loans"-presumably longer than the 25 and 30 year repal/ments now permitted and "a low initial payment" on both neu, and old houses. Families displaced by slum clearance r'r,ould be eligible.

Not until these programs "have been fully tested and by actual performance have shown their success," he told Congress, should the nation drop public housing.

The message stressed slum clearance, slum prevention, and the rehabilitation of blighted neighborhoods. The President, noting that 19,00O,000 city dwellings are more than 30 years old, said:

"Our housing deficiencies continue to be serious. Millions of our people live in run-down, declining neighborhoods. The national interest demands the elimination of slunr conditions ."

He called for "early and favorable consideration of these proposals:

1. Slum clearance and neighborhood renovation:

Seven hundred million dollars in Federal loans and $250,000,000 in grants to cities to remove, corre,ct or prevent neighborhood blight.

FHA loan insurance to enable home owners to rehabilitate and modernize their houses with loans from banks.

A $5,000,000 appropriation to help smaller communities drar.r plans for slum prevention.

2, Conservation of existing housing.

Anrendments whereby buyers should be closely controlled.

Approval of these recommendations will correct the most serions defects of the present mortgage purchasing operations of the Federal Government and will authorize an effective secondary market facility, replying primarily on private financing. It will also provide flexible authority under which the Federal Government could directly purchase mortgages, should economic conditions and public intercst indicate the need for such action.

Lerreft Appoints Sqles Monoger

Joe Terrell, president of Lerrett Lumber Company, Los Angeles, announced last month his concern had established office and yard facilities at the southwest corner of Del Amo and Alameda Boulevard, Compton, California. The new location offers unlimited storage and milling facilities, he stated.

Don Muller has been appointed sales manager and will cover the Southern California and Arizona territory calling on retail lumber dealers and industrial users of Redwood.

Muller joins the company following l5 years' experience in the lumber industry and formerly handled sales for Lerrett lr'hen the company maintained yards in Los Angeles. He has many friends in the industry.

"We are going to distribute quality Redwood and Redwood siding at the wholesale level in L. C. L. shipments regardless of the quantity desired," said Terrell. "We have adequate inventory of all yard stock to take care of the retailer's needs quickly and efficiently," he continued.

Don Muller maintains residence with his family in Laguna Beach, California, and is prominently identified as a deep sea fisherman and sportsman.

Delayed deliveries can mean the difrerence between profit and loss in many a lumber or building -aterials yard. Calaveras keeps faith with its dealers by operating the largest company-owned transport fleet in northern California on split-second schedules to fill its delivery conimitments.

Take advantage of this unusual service. It will save customers and make money for you!

R.eioins Soles Sroff

Tom McShane has rejoined Blue Diamorld Corporation's sales staff after completing an overseas tour of duty n'ith the Army in Korea.

He u'ill be assigned to Blue Diamond's Northern California district sales office in Daly City, rvhere he u'ill u'ork l.ith District Manager William E. Chichester.

McShane served mainly with the 802 E,ngineers building airfields in Korea during his 2l months of active duty. He is a graduate of the Davis Campus of the University of California.

Prior to being called to active duty, McShane had represented Blue Diamond in the Fullerton-Norrvalk area of Southern California.

Ella Shelton and Jane Adams, charter members of the Los Angeles Hoo-Hoo-ettes, have compiled a complete historv of the club in book form so that the organizdtion will have a permanent record of all activities since its inception thr€e years ago. The Hoo-Hoo-ettes were established in 1951 bi' a group of Los Angeles women engaged in the lumber business and have the distinction of being the first club of its kind in the u'orld.

Celofex Reports Record Soles

Chicago-The Celotex Corporation reported the highest annual sales in company history in the year ended October 31, 1953, and O. S. Mansell, president, predicted a sustair.red market for the company's fibreboard and other building and acoustical products in the cnrrent year.

Net sales totaled $59.980.026. compared with $52,032,189 in thc preceding year rvhen a strike in the company's rnaiu plant adversely affectecl productiorr, sales and earnings.

Net earnings after all charges and income tax provisions were $3,024,844, as against $1,612,043 the year before. After pre{erred dividend recluirements, the latest year's earnings were equal to $3.05 a share on 905,472 shares of comrnon stock outstanding, as against $1.49 a share on the same number of shares in the preceding year.

Working capital at October 3l totaled $13,083,453, compared with $11/43,213 on the saure date a year before. Current assets ivere $18,794,999 and current liabilities $5.711.546. a ratio of 3.29 to 1.

"In our opinion, in 1954 the level of nerv building construction and repair and remodel activity rvill cor.rtinue at a ratc which will proved a sustained market for our products," Mansell said. "Also rve expect an increased use and consequent larger market for acoustical materials ar-rd greater as well as more diversified demand for our products developed to serve the non-building field. We therefore look forward with confidence to favorable operating resttlts for the coming year."

Oqklond Hoo-Hoo Glub No. 39 Plqns Dinner Donce

Bob Hogan, Hogan Lumber Company and president of the Oakland Hoo-Hoo Club, has announced that Oakland Club's next event will be an annual birthday party for the past presidents, a dinner dance affair, to be held February 26 at the El Nido Rancho, between Orinda and Lafayette. Herb Farrell, Hogan Lumber Co., is general chairman for the party which is scheduled to get under u,ay at 6:39 p.m.

The ticket chairman is John Enright, Strable Lumber Co. and the assistant chairman is Chris Sechrist, Sun Valley Lumber Co., Lafayette. Tickets are also available from the following: Kermit Noble, American Forest Products Corp., Newark; Bill Friborg, Hill & Morton, Inc., Oakland; Ev Lewisl Gamerston & Green Lumber Co., Oakland; Bob Meyers, llome Lumber Co., San Lbandro; Bill N{cCubbin, Cords Lumber Co., San Francisco; and Hollis Jones, \\,'esttern Door & Sasl-r Co., Oakland.

Southern Goliforniq crnd Arizonq Visitor

Del Travis, president of Travco, In,c., San Jose, recently spent a week in Southern California visiting customers and Travco's Southern California sales representatives. He then visited Pheonix, Ariz., rvhere he called on the trade and vacationed for two weeks, sharpening up his golf game which is a warning to the members of Dubs Ltd. in Northern California.

According to Mr. Travis, trade accounts encountered during his visit expressed optimism for the year of 1954, and many are more active than they were at this time last 1'ear.

Allied Gredits Predicts Possible Building Boom

San Francisco-At a meeting of top management with local officers of Allied Building Credits, Inc., R. D. Syer, president of this nationwide organization with 35 offices, predicted increased business for those concerns which aggressively go after business rvith a definite plan and program.

Mr. Syer emphasized that a definite plan and a program of teaching personnel to merchandise materials and services on the easy selling level is an absolute essential to share in increased business. "With proper planning," Mr. Syer said, "the largest volume of modernization and repair business in history is possible this year for the light construction industry."

H. G. Keller, vice president and manager of Allied Building Credits, office at 1265 Market Street in San Francisco, announced after this first meeting that his office would be available to all Building Material Suppliers in this area to develop a plan and a program for them to meet business conditions during these changing times. Mr. Keller said that he would gladly send trained men to interested concerns to show their personnel how to make Time Sales on the easy selling level.

Maurice Phipps, yard superintendent, The Phipps Company, Los Angeles car unloading and milling company, is the proud parent of an 8 pound 4f oance baby boy. His 'ivife, Helen, presented him u,'ith Jeffrey Alan Phipps Tanuarv 22.