Indianapolis Times, Indianapolis, Marion County, 17 December 1946 — Page 12

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By NED

- el der of New ‘Rental Housing Plan

Industry Absorbs Only One-fourth of Billion Insurance Provided by Emergency Act

BROOKS

Scripps-Howard Staff Writer

WASHINGTON, Dec. 17.—The

billion-dollar insurance pool released

by President Truman as part of his program to stimulate rental housing will remain untapped for many months, it became evident today. . The new fund faces idleness because the homebuilding industry has absorbed only one-fourth of the first $1 billion provided for mortgage insurance under the veterans emergency housing act.

law provided a billion-dollar for financing moderately homes at more liberal terms than those of- ' fered by ordinary federal housing adminis tration insurance, and gave the President authority to use a second billion if

The fund priced

necessary. Building industry spokesmen pointed out that FHA Commissioner Raymond M. Foley “scooped” ‘the President's announcement by 10 weeks with his Oct. 1 statement that the second billion would be earmarked for .rental housing. It had not been expected, however, that the second billion would be authorized until the first was more nearly exhausted. Upturn in Rental Requests FHA officials said applications for about $325 million of insurance had peen filed in the seven months the emergency act has been in operation, The "$250 million granted covers about 35,000 housing units, All but $35 million of the com- . raitments have been for insuring homes offered for sale, but officials said there had been a “sharp upturn” in rental applications in recent weeks. Mr. Truman said he would ask congress to extend the life of the insurance program beyond its present expiration date of June 30. FHA officials said the $2 billion “could not possibly” be put to use within that time, More Specific Word Awaited « Meanwhile, homebuilders awaited more specific word on government plans to “emphasize” rental housing now that major items of former . expediter Wilson W. Wyatt's program have been scrapped and others ere headed for early discard. Mr, Wyatt resigned when the President refused to support his plans for more generous aid to the factory-built home industry and the sthsequent decontrol order brought the resignation of Norton Long, one

Mr. Brooks

ONE: Recommendations to congress for a system of yield insurance which would assure investors in large-scale developments of a fair return, and for 10 per cent second-mortgage participations by the Reconstruction Finance Corp The mortgage proposal, suggested by Mr, Wyatt to supplement the present 90 per cent FHA insurance, has been rejected by RFC pending its study by congress. TWO: More liberal application of “emergency” insurance by FHA. The

veterans housing act permits the

issuance of insurance based on cur-

rent costs but builders have complained that FHA is refusing to allow the full 90 per cent. Mr. Truman said FHA planned to “broaden

eligibility standards,”

future,

THREE: Higher rent ceilings on new homes, Mr. Truman's program permits an average project rental of $80 a month as against the $80 ~ ceiling permitted under the Wyatt program. Builders have complained that low rent ceilings have been re- | 20c. tarding rental housing. The new bulge in the hold-the-rent line is

expected to increase pressure for boosting rents on existing homes.

FOUR: Removal of veterans’ preference rules. This, according to builders, will open the rental market to non- veterans able to pay higher prices and should release

lower-priced homes for others,

which was interpreted to mean that the agency would assume greater risks in the

Veterans Housing Speedup Predicted

New Priority List Of Materials Awaited |

WASHINGTON, Dec. 17 (U. PJ. —Spokesmen for the construction industry today predicted a speedup in building homes for veterans under President Truman's revised housing program. But there were conflicting forecasts from the President's critics, who said the new changes were a “fraud” on veterans and the “death knell” of the emergency housing

program. Frank R. Creedon, the new hous-

_ ling expediter, prepared to issue to-

morrow or Thursday the first orders to implement Mr, Truman's new housing policy. The initial orders were expected to end many priorities and list materials which must remain under allocation control.

Protests Program

Industry spokesman praised Mr. Truman for removing the $10,000 sales ceiling on new homes and for easing the $80 a month rent ceiling for housing built under the program. Norton E. Long, who resigned as deputy housing expediter yesterday in protest against the new program, charged that Mr. Truman's authorization of $1 billion to insure rental mortgages was a “complete phony.” That sum, Long declared in a farewell statement, was authorized under the Patman (housing) act and had been at the disposal of housing officials all along. He said the new program was a “fraud perpetrated on veterans for political expediency.”

Court Blocks State Stock Taxation

would seek a rapid breakdown of the supreme court decision blocking state taxation of certain stock sales to pave the way for possible corrective measures in the coming legislature, The governor said he saw no cause in news reports of the decision to be alarmed over the possible effects on Indiana's tax structure, but that he would urge gross income tax officials to make a speedy investigation. Yesterday's decision by the federal supreme court blocked application of the 1 per cent gross income tax to certain stock sales handled on the New York stock exchange. Suit Filed Immediate effect of the decision {was to overrule Indiana's contention that trustees of the Henry C. Starr estate in. Wayne county owed gross income tax on $652,000 worth of stocks sold through the exchange. Suit to recover the tax, paid under protest was filed two years ago by the late Gath Freeman of Richmond and carried on by his widow, Mrs. Almira Freeman. The case was first heard in 1944 and brought up for a re-argument during the current term, Indiana's case was argued by John McShane, deputy attorney general, assigned to the gross income tax division, Can’t Determine Lost Revenue Mr, McShane said today he could not estimate the effects of the decision beyond the immediate case at hand until he had read the opinion’s of the court. He sald there was no wdy to determine how much revenue would be lost by the state as a result of the decision’ or even whether the decision would result in a loss at all, Reduced roughly to lay terms, Mr. McShane said, the decision held the Indiana tax in this instance a restraint on interstate commerce. In view of an apparent trend to leave taxing powers up to the “state of destination” in interstate transactions, some attorneys felt the decision might possibly result in a new wave of suits to get out from under the gross tax. Justice Felix Frankfurther delivered the supreme court's seven to two decision. Justice Frank Murphy joined in a dissent written by

FE a aa

{OPEN TILL 9 P. M

EVERY NIGHT UNTIL CHRISTMAS Shop Where You Can Save Plenty

Ruling Breakdown

} Governor Gates said today he

THE INDIANAPOLIS TIMES

Gates Seeks Ta cio Chief Calls Manly

Plan ‘Constructive’ Idea . Murray Doesn't Accept as ‘Gospel Truth’

Nathan Report on Wages and Prices

idea. Those were among the impressions of newsmen today who heard Mr. Murray in a press conference following a meeting here yesterday of leaders of the C. I. O. steel workers, auto workers and united electrical workers. Skirts Questions Mr. Murray skirted all questions which sought a commitment on what the steel workers and electrical workers were likely to ask in the way of a wage increase. Bul he indicated the C. I. O. was willing to see the Nathan report disproved. Also, that wage increases might be accepted even though they meant comparative increases in prices. He sald the steel, electrical and auto unions would form their policies individually. Mr. Murray indicated steel fabricators might be given special consideration in the coming discussions about wages. He mentioned this in making the point that the Nathan survey was a “guidepost” and not to be followed rigidly in negotiations with all industry. Mr. Murray was asked if his remark meant that the fabricators would be considered separately from basic steel when it came time to negotiate new contracts. He did not answer directly, saying that each case would have to be governed by “logic.” Caught in Middle When the steel strike came early this year the fabricators—all little fellows—found themselves caught in the middle. They were forced to go along with the same 18% cents an hour settlement reached with basic steel though they contended they were not tied to basic steel

By Seripps-Howard Newspapers PITTSBURGH, Dec. 17—~The C. I. O. has not accepted as gospel the report #y Economist Robert R. Nathan. The report sdid fry could raise wages 25 per cent without raising prices. : Moreover, C. I. O, President Philip Mwray thinks the suggestion of Basil Manly, former co-chairman of the national war labor board, that labor and management agree to a year's truce is a “constructive”

and that their cofitracts should be negotiated separately. Mr. Murray said Mr. Nathan had been hired to present an economic survey of conditions in the country as of today. He added Mr. Nathan was not advised by the union in any way. One of the things that must be determined in the course of collective bargaining to come, Mr. Murray said, was “will the facts in the report stand up?” Subject of Discussion

The Nathan report was the subject of much discussion at yesterday's big three meeting, Mr, Murray said. The conclusion was that the C. I. O. would consider it sound evidence that price increases would not have to follow wage increases until someone came along with some facts to disprove it. The C: I. O, Mr. Murray said, would lis« ten to reason. Mr. Murray was asked if the price-increase theory might beome “a strike issue.” “That question would have to be governed by the rule of reason,” Mr. Murray replied. He made it clear that none of the three top union officers present at the conference was ready to say to industry “if you raise your prices, we will In his preliminary statement Mr. strike.” Of Mr. plan, Mr. Murray said Mr, Manly had given him the impression, in a radio talk, that his plan called for “an upward adjustment” of wages as a condition of a year’s truce. Murray said the C. I. O. had a

genuine desire to get through the coming negotiations without strikes. !

However, he added, this would be] chiefly up to the industry.

higher. mained about steady.

GOOD TO CHOICE HOGS (3050) s

75 120- 140 pounds .. $22.25@22. Justice William O. Douglas. Jus-| 140- 160 pounds . nan B k tice Wiley B. Rutledge wrote a sep-| 180. 200 pounds B15 33.33 00KS arate 25-page opinion concurring| 200- 320 pounds .. [email protected] 20- 240 pounds 32.75 23.00 with the majority. 240- 310 pounds "* 29'[email protected] ee - unas “es o . VITAL PROBLEMS OF AIR 300- 330 ‘pounds 2250 COMMERCES, edited by Lucius Local Issues a, poses Zacharoff, is among the new books 160- 220 pounds [email protected] Bs Packing Sows ’ received recently at the business| yommna) quotations furnished by Indi-|Good to Cholee [email protected] branch of the Indianapolis public|snapolis securities dealers: Fi 360 BOURLY rexses.:s-ns i 1019.00 library. STOCKS pouncs .. : 9.00 Other new books agents Vi 3, oo ma askea) $50: 300 Bounas 11111111111 In smgiese new are: Seis) ans y a he so NW Bh L- ts Fin Corp pfd.. . 19 . Good— [email protected] A aay States pfd. . 24 S17] 400- 450 pounds ............. TRIAL RELATIONS AND American Siates * 3 weds 450. 50 BOO POUNGAS ..0ooovvesens [email protected] THE SOCIAL RDER, Wilbert yres % pid. .10 8 EM y hn Ea 8% 39 280-350 pounds ..... oo 16.50918.00 oore. ds com «4 36 81 nter gs Belt R Btk Yds pfd 60 Medium to Gre ¥ THE BROTHERHOOD OF |Bobbs-Merrill ad td avai 75 . 90- 120 pounds ..........q. [email protected] SLEEPING CAR PORTERS, by|Central Soya com : CATTLE (1830) y entr ya com . k 36% Brailsford B Circle Theater com. . «18 . | Cholce— y R. Brazeal *Comwith Loan 4% pfd "101 104 | 700-900 pounds . + [email protected] OBS AND MARKETS: How to|Consolidated Industries com... 1 1% 800-1100 pounds prevent inflation and depression in| Sonsjdated Industries prd.. dn ein Sounds the transiti *Delta Electric com .......... 14 16 . on, by the committee on | Elta Electric com 3 3] Goo 500 pounds [email protected] economic development, Rt Wa ne & Jackson RR pid. 96 99 | 900-1100 pounds .. . 3 Soca 00 er ones € A pid Jo... 14 14 - rene . AIRPORT REFERENCE, 1946- Hook Drug Co Som ras A 3th 1300-1500 Do PS . [email protected] 1947: Airport construction and op-|Ind Asso rel Co 2pd...... 51 Ls eration. Ind & Mich Elec 4%% pid. 108 10% | 60-1100 pounds [email protected] eral Indpls P & L 2 29, 1100-1300 pounds 14.50@30. Indpls P & L G% } dre oh s ndpls A 108 - 110% | Comm [email protected] U. S. Stat Indpls a1 700-1100 pounds gecamia cxaeii i ement Indols Railways To ww pounds Heifers 43. [email protected] ———, — e a 1 600 : “ RA AICn ree Kingan & Co com 15% 2.1000 pounds . BIGTN ON, Dec. 17 (U. P.). - ngan & Co pfd ow 18 82 " 23.50 ernment expenses and Rg ny *Lincoln Nat Life 51 pfd... 55% 58% Ce00- 800 pounds ......e.eo he 23.50 current fiscal year through Dec. 13 com- | Marmon-Herrington com .. 73g 8% | 800- 1100 pounds ...eeecver : pared with a year es: Lincoln Loan Co st Prd. L101 . Mediu [email protected] This Last Year ne Asphalt .. . 8 83, | 500- 900 pounds .....cesvens . iste 16, Nat omes com .... 11% Comm . [email protected] Receipts 15 meet $35.078.287.371 IN Ind Pub Serv 5% 108” 1i0y,| 500- 900 pounds 1 Defici 51,044,740 17,040,646.542 | BB Matos tnsO™ 18% 19% Cows (at weightn Cash Balance 6,616.233.502 25.678.254.517 | by. %, Mellory com la 25% 600d . 1423014 5 Public Debt ~ 262,350,071,225 278,100,481,158 | bro mey cop poy Com Bz 8% Medium - 34612 rd ’ erv of Ind com . 3% 1. Gold Reserve 20,476,289,848 20,029,163,124 | pul, Sery of Ind 316% pld..: 94% 97 | Cutter ‘and common 3.00@ 0.50 Ross Gear & Tool com 30 jCunne nm I! weights) ou DIANArOIS CLEARING | Mouse So Ind a & E 43% ptd.....100 13 | nls. okely-Van Cam 13 23% | Beef— Debits 3, $62,000 Siokaly yan Cane Eom 3 * 25 | Good {al} weights) , [email protected] ET — erre Haute Mail le . 3, 3 2 oe 5.5 Local Produce [08 Machine con® 1 AL aad Mot js3atss nite el Co 5%. 98 Medium . a | Unlowr Title com .- 4“ - Cutter and common [email protected]( ee ete BONDS CALVES (379) PRICES FOR PLANT DELIVERY American Loan 412s 60 97 Good snd choles [email protected] Poultry: Springers, friers, broilers and | American Loan 4%s 58.. M1 La... an [email protected] | rooste 30c; . Buhner Pertilizer 5s 54 co 97 Common and medium «Ae "00! rs, Leghorn springs, 30c; stags, Ch of Co om, Bldg 44s 61..... 96 he (75 pounds up). elm Butterfat: No, 1, . zens Ind Tel 4%s 61......103 tle and Calves 8s: Current kB No Tg case, | Columbia Club 1'zs 5s . . 88 Feeder and Stocker Cattle Se grade A large, 45¢: medium, 38¢c; Conan Re O 8s 66 % Cholce Steers am 0 O08 00..... . 9 olic TY ude B large, 36; no krade, Hoosier Crown. 5s 56 | 91 .| 500- 00 pounds Jean 2 Jndpla Pras & Ahm 6s 50... . 97 \ | don-a0so pounds 4 ndpls Yas T0... .++.106% 107 [email protected] aqgon Wheat Indpis Railways Co 5s 67..... 85 90 500- 800 pounds 14. 4 wagor bs Ind Asso Tel Co 3s 75 104 .| 800-1050 pounds ... 14.00Q16.50 As==—=—== Investors Telephone 3s 61° ve. 96 99 Medium 12.50874.00 Indianapols flour mills and grain ele- Re Packing 20 ts 64... 99 1 So -1000_ pounds * vators are paying $2.22 per bushel I 0. nd Pub Serv 3's ; ..105 red wheat "new. *No. 5 Yeliow, oo 23 | Pub Serv of Ind 3s 75... 105% 107% | 600- 900 pounds ..... 10.00912:50 r bushel, No. 1 white, $1.37 Pub Tel 4%as viene 100 . 1128 per | SHEEP (1128) ushel; oats asm » pounds or better, | Willlamson Tne %ss 55... 9 ‘ir 8 ¢ per bush ppeliow soybeans, | Trac Term Corp 5s 67. 94% 98 | Lambs 14 per cent tr. $a. *Ex-dividend Closely sorted 2400

ne |

Hoosier Outfitting Co. 219 E. WASHINGTON ST.

Furniture — Radios — Rugs

Fairbanks

1 203 E WASHINGTON ST. Jewelry—Radios—Sporting Goods

K-ocier Paint &

Linoleum Co.

211 E. WASHINGTON ST. Furniture — Radios — Rugs

Jewelry Co.

“

. Open : Tih 9PM) Until Christmas

2) .

Steers and Heifers Up 25°

The hog market took another downward trend at the Indianapolis | stockyards today, Top price was $23.25. Cattle sold on the strong side with some steers and heifers 25 cents Vealers were steady to $1 lower while sheep and lambs re-

Big Four Tavern, 2502 N. Sherman ar Restaurant and tavern business. Jam Dine, 2017 E. N. Wall ton blvd. Sonunental Stores, 3 8. uelby st. Ret Stohler,

parts, b Park ave, New. Castle, Ralph . Stohler, 120 Park ave.

Paul L. Sample, who started as a stockboy in the McKeesport unit of the chain, prepared today to assume presidency of the G. C. Murphy Co.

president, was elected to succeed W. C. Shaw and will assume the new post Jan. 1.

Manly’s one-year-truce |

Bo ang ery Sfaamres rns i 503100 Common, ............ [email protected] (Shorn) and clio PER 6.00@ 7.50 Common and medium...... 5.50@ 6.00 NEW FIRMS AND PARTNERSHIPS

10th; Anthony Dine, 3855 ; George Dine, 4001 Arthing-

Dorothy

New G. C. Murphy Head

PITTSBURGH, Dec. 17 (U. P.) —

Mr. Sample, formerly executive vice

Food Price Drop

Seen by Spring

Then They'll Remain

‘Above Pre-war Level WASHINGTON, Dec. 17 (U. P).|

today that retail food prices prob-|

~The agriculture department said

ably will not drop significantly before spring and that even then they will remain sharply above pre-war levels. In a review of the national food situation, the department said food supplies in coming months will av= erage somewhat larger per person, but that there is no prospect of an immediate decline from current record high food prices. The department estimated previously that farm prices would drop 5 to 10 per cent during the next three months, It was explained, however, that it usually takes some time for a drop in farm prices to'be felt at retail levels. ' Up 81 Per Cent The report showed that food

prices in. October were 87 per cent|

higher than in October, 1940. But most of the increases were on foods which had changed little in price during the war when strict price controlé were in effect. Civilian meat supplies probably will continue at present near-record levels at least through this winter. Produetion likely will decline seasonally next spring, but total output still should be larger than last spring. Supplies of turkey, fresh chicken, fresh deciduous fruits, sweet potatoes and dry beans probably will drop off seasonaly during the next few months.

| On the other hand, there should|

be more fluid milk and cream, eggs, citrus fruits, canned fish, cheese and lard. Larger supplies of corn products also will be available as a result of the record crop. Other food supplies are” not expected to change e appreciably.

Court to Review

Hog Prices Drop to $23.25; 5 Anti-Trust Suit

Labor

TUESDAY, DEC. 17,

1946

Congressional Protection From Back-Pay Suits Seen

New Congress Will Be Asked to Save Employers From Retroactive Payments

By FRED W. PERKINS Scripps-Howard Staff Writer

WASHINGTON, Dec. 17.—The

¢ will be asked to protect employers

workers under the wage-hour law. The supreme court apparently entitled to such payments through portal principle, Some labor unions, notably the C. 1. O. United Steelworkers of America, are moving in to: collect. This union already has sued two subsidiaries of United States Steel Corp.—Car-negie-Illinois and National Tube — for $120 million, and the Aluminum Co. of America is the target of a $10 million action. Mr. Perkins The issue goes back to 1938 when congress enacted the federal fair labor standards act. It established 44 hours as the standard work week for the year ending in October, 1939; 42 hours for the following year, and 40 hours thereafter. Portal-to-Portal Case All hours above 40, for six years, must be paid for on the time-and- | a-half basis. Generally, working {time has been reckoned from the time a man starts actual production until he lays down his tools at the

{end of the shift.

case—and several million dollars for an iron ore miners’ union—by contending work started when the men entered the mine and did not end until they left company property. This. was followed by similar proceedings and victories by the United Mine Workers against. coal companies—the famous “portal-to-por-tal” cases. | Last June 10 the supreme court applied the same principle to employees of the Mt. Clemens Pottery Co., a comparatively small plant in Michigan. It held the employees

were entitled to pay while walkin

g WASHINGTON, Dec. 17 (U. P.).| to work on the employers’ premises

~The government, after six years and two unsuccessful suits,

break up an admitted monopoly of the gypsum board business. Chief target of the government's

anti-trust prosecution was U., S.!

Gypsum Co. The chairman of the firm's board of directors is Sewell Avery, also board chairman of Montgomery Ward. Six other companies were named with U. S. Gypsum in the government suit brought in 1940, Together they are the sole manufacturers, east of the Rocky mountains, of gypsum board, an essential material for most private and commercial construction. The government action charged the seven firms, and seven of their officers, with joining. in illegal

| price-fixing agreements based upon

patents owned by U. S. Gypsum. The firms admitted the monopoly but contended it was legal under the patent laws. They won an important round in the fight last summer when a special three-judge district court dismissed the govern-

ment case.

anti-trust | today was promised a su-| preme court review of its efforts to)

38 Years

EVERY

by ho ST.

Five years ago the C. I. O. won a!

RITES

(WRIGHT'S)

WILL BE

OPEN

a, 9 0°CLOCK UNTIL XMAS

RITE'S

(WRIGHT’S)

| JEWELERY and CLOTHING “Always a Square Deal at Rites”

new congress, like its predecessor, from huge retroactive payments te

has said millions of employees are its interpretation of the portal-to-

after punching the clock and while changing clothes. Sue Tor Back Pay The significance has been recog= nized particularly in steel mills, au« tomobile factories and the like, some of which cover many acres of ground causing employees to spend many minutes walking from the gates to their actual working places. Soon after the Mt. Clemens finding in the supreme court a bill te change the legal basis was introduced in congress by Rep. Gwynne (R. Ia). It was directed particularly as suits for back pay under the wagehour law, would put a two-year limit on the beginning of such suits, and—more significantly—would invalidate them if such suits, and— more significantly—would invalidate them. if the employer seemed to have been acting in good faith, The Gwynne bill passed the house, but was caught in the senate’s adJournment log jam. Efforts in the new congress are expected to center around the Gwynne bill or something similar,

1947 Cars Nearer

FLINT, Mich,, Dec. 17 (U, P.).— Harlow H. Curtice, vice president of General Motors Corp, has revealed that G. M. will. begin production on 1947 models early im January. .

Saxrson: 3 Comrary WASTUENL FOUTS ~ Prinsivel wie

312 CIRCLE TOWER = MA-5318

38 Years

NIGHT

Liberal Credit

why

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wR K

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Flowers Telegraphed Anywhere

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