'orum's stress on the great default will also affect the insurance companies 1 banks who are lending money on non-608 apartments and commercial Idings. A close analysis will disclose that their typical mortgage amount has ut doubled over 1939. I know of no 608 loan which has exceeded 100 percent a 207 loan of 1939. If the 608 mortgage set-up is wrong, then we must condemn ry maximum private loan made.

The condemnation of efficiency units in 608 is both unfair and unproven. The th of the matter is that, as a 608 sponsor, I can honestly state that the ciency apartments are the first to rent and stay rented. The proof in longm occupancy, as any owner of apartments during our last depression will tify, is that the so-called efficiency apartments stayed rented at all times, less the apartments were built in a suburban area where they did not belong the first place.

The FHA court fetish could possibly have been overdone. I am one architect 10 literally developed high blood pressure while in constant war with the id-planning section of F'HA over site layout, in which work I take particular re and pride. However, when I look back in retrospect I believe the fault y with all concerned. Land planning is a field by itself and very few architects ve the touch in developing a suitable site plan. The constant work-load essure on the various FHA architectural sections has led them to leave e-planning criticism to the overworked and undermanned Land Planning ection, which in turn took on a shell consisting of a court, a reangle and a l-de-sac. Quite a few lay-outs which I had to jam down the throats of experts peared later in the experts' book as recommended lay-outs. Perhaps we should 1 go back to school to learn how to build a $10,000 apartment for $7,000 withit the sponsor providing the $3,000 difference.

Forum's solution in the substitution of 207 for 608 brings a hearty guffaw to is pioneer, for 207 was always fraught with red tape, strict compliance to rent hedules, and profit limitations. A 207 can only be built where taxes are tremely low. The real bugaboo in Forum's desire for modern thought in partments is that, if the cost figures disclose a greater differential than 5 ercent over the capitalized figures, then the project must be abandoned altoether. I believe that 207 will work when some of the good sections of 608 are dded to it.

Senator SPARKMAN (presiding). The committee will now stand in

ecess.

(Whereupon, at 4: 20 p. m., the committee recessed.)