Home Builders Lean on the Congress

Some 700 home builders, keyed up by the continuing stress of tight money, militantly moved on Washington, D.C. last month to dramatize to Congress and the Johnson Administration the need for speedy action to cure the conditions crippling home building and allied industries.

Armed with statistics and legislative proposals, they went to Capitol Hill and told their story to 8I Senators and 350 Congres.smen. There, the delegates met for the most part with expressions of understand- ing and a desire to help on the part of the election-year congressmen.

At the request of President Lyndon B. Iohnson, National Association of Home Builders' president Larry Blackmon and a delegation of builders met and discussed the problem in the White House. President Johnson again expressed his desire to see housing's problems solved.

Earlier, Blackmon had received from Housing and Urban Development Secretary Robert Weaver a letter statine that the ad- ministration "has been concerned about the mortgage market and its impact upon the home building industry for months," and setting forth specific actions taken to find solutions.

The House Banking and Currency Committee had previously reported out a bill (H.R. f4026) to limit interest on certificates of deposit, to authorize the Federal Reserve Board to buy Federal Home Loan Bank Board and FNMA obligations, and to authorize the FHLBB to set ceilings on S&L dividend rates.

Blackman set the keynote for the meeting with his opening words, "we are here for action today." He named the objectives: (l) ooTo stop the ever-increasing interest rate war. (2) To find ways and means in which to get money back into home building and the home buyers' market."

At the heart of the NAHB's plan of action is a program to:

(1) Broaden the purchasing power of the Federal National Mortgage Association so that it can better perform its obligation to assist the private sector of home building in times of crisis.

(2) Place a 41/zVo ceiling on the lowerpriced, individually purchased certificates of deposit, instead of the 5r/z% maximum that commercial banks are now authorized to pay.

(3) Empower the Federal Reserve Board to purchase obligations of the Federal Home Loan Bank Board and FNMA to provide more funds needed for primary and secondary mortgage market operations.

It's A Jubilee for Hno-Hoo!

The nation's capital plays host to members of the International Order of Hoo-Hoo this month as more than 500 sather in Washington September 18-21 ai the historic Mayflower Hotel for Hoo-Hoo's Diarnond Jubilee Convention.

A program of business and pleasure is planned by local Hoo-Hoo Club .ff99, con. vention host, for members, wives, guests and international visitors. Outstandine members of the industry will discuss busil ness opportunities and efiective wood and lumber products promotional programs.

Historical tours are planned by the host group, including visits to the White House, Arlington Cemetery, Mount Vernon and Alexandria, Virginia.

Featured speakers slated for the convention are Bronson Lewis, secretary, American Plywood Association; Boyce P. Price, president, I7ood Marketing, Inc., Washington, D.C.; Dr. Earl Gilbert, Joseph It/. Rabbitt, and Donald Campbell.

Host Club f99 is headed by Paul Kern, Jr. Convention chairman is Martin Weigand, Sr., a former Snark.

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A New Series Begins

We are. pleased to announce that with this issue of THE MERCHANT, begins the first of a six-part series of sales training articles designed to motivate, inspire and help train salesmen.'

Called "Smooth Selling," it is written by George N. Kahn, the president of his own eornpany, which is a firm of marketing consultants in scientific market development, George Kahn also lectures and conducts courses in sales training, Articles on these subjects, by or about him, have appeared in such publications as The Haraard, Business Reuiew, IndustrialMarketing, Fortune, The Neut York Times and scores of others.

The beginning article, titled "The Salesman is a VIP," appears on page 29 of this issue. We hope you enjoy them-Editor.

Builders Merge lnto Giqnt Firms

Two of tlre largest home builders in southern California are in the process of merging into giant national manufacturing firms in what appears to industry observers as a move by the builders to tap a virtually unlimited line of credit for their operations.

The two builders are Ray A. Watt, who builds about 2,000 homes annually, and Deane Bros., producers of 1,000 yearly.

Boise Cascade is joint-venturing with Watt in an $8.8 million exchange of stock, while Deane Bros. will cornbine into giant Occidental Petroleum for a presently undiscloeed sum.

The benefits going to both sides in such combinations are as an investment outlet for the large corporations, a la Alcoa's development of the half-billion dollar Century City project in West Los Angeles, and a steady source of financing for the home builders, who have found their usual source of funds, the savings and loans, unable to lend the money.

Union lumber Moves Uptown

Union Lumber Company has announced the moving of its executive offices, effective this month, to new quarters in the Equitable Building at 120 Montgomery Street, San Francisco.

Union's old headquarters is a block away in the Crocker Building, and will soon be demolished to make way for the Montgomery Street station of the Bay Area Rapid Transit System.

With a nostalgic tone, the announcement pointed out that suite l0l0 of the Crocker Building has identified Union Lumber Com-