Wclshington Announcement from Nqfionql

Rercril Lumber Decllers Associcltion

Washington, D.C.-The administration sent to Capitol Hill a housing bill, the major features of which were largely non-controversial because they increased FHA mortgage insuring authority, tried to make "Fanny May" more liquid, tightened up public housing construction, continued military housin g authorizations for another year, terminated the Home Orvners Loan Corporation, and provided for increased interest rates on insured loan programs which had not been taken care of in the recently announced interest rate increase.

When this administration first circulated this legislation it contained provisions providing for a schedule of lower down payments .and higher mortgage ceilings on FHA loans. On advice of the Treasury and the Federal Reserve Board, these recommendations were not made part of the legislation that went to the Hill- The Senate yesterday added some new thoughts to the legislation. The Senate Banking and Currency Committee reported out a bill giving the administration what it wanted, but also provided {or Presidential authority to, at its discretion, provide for down payments as low as 5/o and maturity periods up to thirty years on individual house mortgages up to the amount of $12,000. The Senate also provided certain help for New York State Cooperative housing projects. (It pays to have tu'o Senators on the Banking and Currency Com mittee-Ives and Lehman), and provided for additional Iunds for direct veterans loans.

What the house will do about these two proposals is as yet unknown. The building industry generally has been advocating a program of lower down payments and greater mortgage amounts, but has frankly said-"While we don't have to have it now, eventually we will have to have it," and perhaps this is what the Senate was endeavoring to anticipate. Our present guess is that the Administration will resist any easier mortgage terms at this particular time, with housing volume holding up at least on a National scale.

Administrator Cole of H & HFA is ready to begin his studies of the role of the Federal Government in the field of housing and construction, and is planning a series of conferences through July and August with representatives of the construction industry and the public interest groups, in the course of which there will be a complete review. Mr. Cole will probably appoint advisory committees on which there will be public and industry members, and it is hoped that by reason of these conferences Administrator Cole will be prepared at the next session of Congress to make specific and definite recommendations as to the reorganization on a business-like basis of all of the Government Agencies presently {urnishing one type of housing aid or another.

The Congress apparently is going to do nothing about the Basing Point legislation at this session. However, it is encouraging here to note the statements coming from the new Chairman of the Federal Trade Commission, E' F' Howrey. Federal Trade has informed Congress that it will no longer oppose legislation to write into larv the Supreme Court verdit that "good faith" is a defense against price discrimination charges, and that it norv considers freight absorption necessary to maintain adequate competition' This is a complete reversal of policy by the Federal Trade Commission, brought about largely by change of personnel at the top level, and this probably means that Congress in the next session r'vill pass the freight absorption legislation.

The Federal Trade Commission also has issued some encouraging statements in respect to its desire to set up a Conference Division u'hich u'ould endeavor to obtain voluntary compliance by industry before any formal complaints in respect to industry members are recommended to the Commission. In other n'ords, the Federal Trade Commission is r,villing to consult and advise, and this policy, we feel rvill have great merit and be greeted with enthusiasm by many industries that. have problems r'vhich would be brought into the open u'ithout the necessity of formal complaints and larv suits.

The Department of Commerce is moving more expeditiously u'ith the setting up of industry divisions and it seems likelv at this moment that in its division dealing with the problen.rs of lumber and building materials there will be staff members appointed rvho represent the viewpoint of the distributors. This, when it comes about, will tre in contrast to previous experiences with the Department.

What is retail trade ? The various agencies of government attempt from time to time to define retail trade, and the definitions in existence today are all based on an archaic concept of retailing. These archaic definitions have come to plague industry in its negotiations with Labor, the Federal Trade Commission ,the Office of Price Stabilization, and other agencies of the Government. Most of these definitions define the trade as "one selling merchandise for personal or farm consumption,"-" completely limited and outmoded concept of retailing. The National Association has initiated conferences with retail groups, seeking a retailing agreement as to a definition of the trade which would be accepted by all agencies of government as accurately descriptive of present day retailing' This is a matter of long-range importance to the industry.

New Lows Rqise Vehicle Fees

The nerv la'rvs covering vehicle fees and drivers licenses passed by the Texas legislature, increase the cost of the lumber business. The registration fee applicable to all vehicles subject to registration rvill be $8.00. The application fee for original or renewed driver's licenses, valid for four years, will be $3.00. On commercial vehicles the fees, based on weights, will be increased about one-third.