American History In Video: Albert M. Cole (Oct. 1954)
Albert M. Cole (Oct. 1954) from Chronoscope (Columbia Broadcasting System, 1954) 14:37.
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200 LW 341
Frank Knight It's time for the Longines Chronoscope. A television journal of the important issues of the hour. Brought to you every Monday, Wednesday, and Friday. A presentation of the Longines-Wittnauer Watch Company, maker of Longines, the world's most honored watch and Wittnauer, distinguished companion to the world honored Longines.
Frank Knight Good evening. This is Frank Knight. May I introduce our co-editors for this edition of the Longines Chronoscope. From the CBS Television News Staff, Larry LeSueur and Griffin Bancroft . Our distinguished guest for this evening is Albert M. Cole , Federal Administrator of Housing.
Larry LeSueur Politics being what they are, very few people are surprised when a new scandal breaks in Washington . But the sums of money involved in the new housing scandals are almost unprecedented. Now, few people know the story better than our guest tonight. So I'll ask the housing administrator, just who is to blame for these tremendous losses to our taxpayers?
Albert M. Cole The blame rests upon the officials and FHA who, through their negligence and laxness, permitted these things to occur. I think that the primary blame belongs with Clyde Powell , who was Assistant Commissioner.
Larry LeSueur Well, ah, Mr. Cole , was it true that a very liberal law was drawn up during the war to provide people with housing... (crosstalk)
Albert M. Cole Oh, yes.
Larry LeSueur ... this is where the loopholes came?
Albert M. Cole No, I don't agree that this is where the loopholes came. It is true that a very liberal law was passed. The liberal law was passed in order to help the people obtain housing after World War II. But the real difficulty in the windfall problem came about by reason of the fact that the officials in FHA were so negligent and so lax in their uh, operation of the program that they permitted the windfalls to occur.
Griffin Bancroft Well, Mr. Cole , you lay all the blame apparently on these officials especially on Mr. Powell . Does no blame at all attach to the builders and contractors who did business with FHA?
Albert M. Cole Well, I think the blame falls upon those sponsors and those contractors who took advantage of the lax attitude and the negligent ah, positions on the part of the FHA. Of course, those people are at fault and are to be blamed (inaudible ). (crosstalk)
Larry LeSueur But even if there was any trouble with the law itself, Mr. Cole , weren't you member of congress in the Banking and Housing Committee when that very liberal law was drafted.
Albert M. Cole No, I was a member of the House Banking and Currency when the law was reenacted. That is true. However, the point I'm making is this; it is a liberal law, was a liberal law, which terminated in 1950 , but it was not such a law that caused the difficulty. The difficulties which arose by reason of the windfall cases, arose by reason of fraud, negligence, crimes frankly, which occurred once more involving the people at the NFHA as well as some of the builders and sponsors.
Griffin Bancroft Well, Mr. Cole , are, are you satisfied with the law with the law as it stands now, now that that 1952 has come and, and the law. (crosstalk)
Albert M. Cole The law terminated in 1950 .
Griffin Bancroft Yes.
Albert M. Cole There are similar, somewhat similar provisions in the present law. Most of those provisions, uh, are not, uh, quite the same as there were in, in the 608 program and the Congress has corrected them, uh, satisfactorily, I believe.
Larry LeSueur Mr. Cole , from what you said, I take it that there were legal and illegal windfalls or were they all illegal?
Albert M. Cole Well, I think I would put it this way; it's difficult and it, impossible to put all of the windfall cases in one basket and say they're all the same. They're not all the same. Some ah, builders were able to, by careful construction by efficient building, outguessed the appraiser, and therefore, obtained more money than, ah, the estimated cost of his building. He did not commit any crime. He did not cause any, ah, cause any ah, misrepresentation to secure that money. Ah, there were other builders and contractors, however, that obtained ah, that obtained windfalls by reason of misrepresentation, fraud, and crime. Those are the ones whom I believe, should be ah, prosecuted or suits should be brought against them to recover the funds.
Griffin Bancroft Well, then in other words, the builder who did get too much of a loan but pays it all back, he would be in the clear as far as you are concerned?
Albert M. Cole Well, certainly if, if a builder got too much money and paid it o the mortgage itself, I do not believe there could be any complaint. The complaint was that after receiving the additional amount of money, he distributed it to himself in violation of the law, regulations, and the Charter, under which he obtained the corporation.
Larry LeSueur Mr. Cole have you received all the bad news about these windfall profits or, or are there more to come?
Albert M. Cole We've received all the bad news, ah, so far as a pattern of the, uh, of the ah, ah situation is concerned. We have not received all of the bad news with respect to certain individuals, certain corporations, or, or certain ah, situations. (crosstalk)
Griffin Bancroft Well, Mr. Co. (crosstalk)
Albert M. Cole But the pattern has been established very definitely.
Griffin Bancroft Well, on that bad news perhaps ah, we're a little more politically conscious in Washington than we should be, but down there, we hear that a lot more of this is going to break between now and election time. Would you anticipate that?
Albert M. Cole Well, there will be some break between now and election time. I understand the ah, ah, Federal Grand Jury will be in session tomorrow. I'm not sure, but that is my opinion and I don't know when they will report additional ah, information may be obtained through the report of the Kapart(ph) committee, if it reports prior to election time. Yes, there will be some additional information obtained. (crosstalk)
Griffin Bancroft But, I would like to ask one other question on that. Ah, these officials that you blame, ah, were they all Democratic appointees or were there any culprits, ah, in the Eisenhower administration?
Albert M. Cole If you place it on the basis of culprits, they were all democratic appointees.
Griffin Bancroft You are a Republican? (crosstalk)
Albert M. Cole I am a Republican. Yes, I am.
Larry LeSueur But what about Mr. Guy Holiday ? Wasn't he a, an Eisenhower appointee?
Albert M. Cole Mr. Holiday was an Eisenhower appointee and was an Eisenhower Democratic-Republican appointee. That is true, when you ask me about... (crosstalk)
Larry LeSueur Well, wouldn't be the charge by Mr. Eisenhower ?
Albert M. Cole No, Mr. Ei-, Mr. Holiday resigned at the request of the President. But. (crosstalk)
Larry LeSueur Well, to get another point, is there any possibility of these builders who reaped these windfall profits to return some of the money?
Albert M. Cole I think there's a very definite possibility. As you probably know, the FHA has filed suit to recover some of these funds and ah, will continue to prosecute that ah, litigation until it is determined that the money can or cannot be returned.
Larry LeSueur Uh hmm.
Griffin Bancroft Well, Mr. Cole , ah, I'd like to ask you about ah, another matter, and that is ah, public housing that we've heard discussed a lot in the, the, this last session of Congress as you know, didn't give President Eisenhower as much public housing as he had asked. Do you plan to fight for renewal of that public housing in the next session of congress?
Albert M. Cole The public housing asked for by the, ah, president was not, ah, all that he requested. He received about half of, ah, the program which he, which he requested. Therefore, we will continue to ask for additional allotment of units at the next session of Congress.
Griffin Bancroft Do you think your chance. (crosstalk)
Larry LeSueur Mr. Cole , do you, (crosstalk)
Griffin Bancroft Sorry Larry . (crosstalk)
Larry LeSueur excuse me. Ah, do you think that these scandals imply that the federal government's role in housing is too large and that perhaps, some of the responsibilities should go back to the states and communities or can they do such, that thing themselves?
Albert M. Cole No, I don't believe that the scandals themselves imply that the federal government is expanding too far. I refuse to admit that the federal government, ah, cannot conduct its business in a sound, honest, decent fashion. The federal government has a public interest, and that public interest can and will be carried out I believe. That's the purpose of this investigation. That's the purpose of our inquiry, to re-establish the fidelity of the operation of the agency involved in these transactions. I think it's being done, I think it will be done and, I think that it can be done.
Larry LeSueur Well, scandal or no scandal, of course, the building bloom continues to plume on, Mr. Cole , how do you account for that, and do you expect it to continue?
Albert M. Cole I think the building boom or the high level of building will continue for a long period of time. Part of the reason is that ah, the economy of the country is sound, it's an ever-expanding economy and yet, a stable economy. There's a great demand for houses. During the war, people were unable to buy or build or rehabilitate homes. Now that demand is increasing. The demand is there; the funds are there, and the ability is there. The people want more and more homes and I think they will be able to get them.
Griffin Bancroft Well, Mr. Cole , in, in all this, is there any chance that the price of homes will come down? I know a lot of people are wondering about that.
Albert M. Cole I think that's a very real possibility. I'm a great believer in competition. I'm a great believer in, in the free market, and I think by reason of the free market and competition that prices will come down. And as we continue to expand the production of homes, I believe, that prices of homes will come down.
Griffin Bancroft Do you plan in Congress... (crosstalk)
Larry LeSueur Mr. Cole . (crosstalk)
Griffin Bancroft ...for more laws to make it easier for the individual to finance their home?
Albert M. Cole I know of no immediate ah, proposals along that line. The Housing Act of 1954 which was recently adopted by Congress and signed by President Eisenhower , provides most of the basic tools which we need to assist the people of America to obtain these homes. If those tools are actually used, and I believe they will be used, then they can secure the homes that they require.
Larry LeSueur Mr. Cole , you have a new housing law, are you releasing some of the provisions one by one to keep the boom stimulated?
Albert M. Cole No, not quite in that ah, uhm, in that framework. However, there are some tools, there are some provisions which are retained in the background, shall we say, in event that they are needed, in even that there becomes a decline in the economy, then we are in a position to support certain programs of housing and do the things which you suggest, yes.
Larry LeSueur Mr. Cole , may I ask you, is there any, ah, large monopoly in housing? Is there a General Motors, I don't say it's a monopoly, but is there a large group that ah, has great weight in housing?
Albert M. Cole No, that's one of the very interesting things about housing. The housing ah, industry is composed of thousands and thousands of small businessmen. I see no possibility of any monopoly ah, on the part of homebuilders or housing ah, contractors.
Griffin Bancroft Well, Mr. Cole , I'd like to ask one thing, ah, what do you see as the future for the prefabricated ah, houses?
Albert M. Cole I think that there's a great future for pre-fabricated houses. Pretty much in its industry, ah, in its infancy, this is an industry which is expanding and has a great possibility.
Larry LeSueur May I ask you Mr. Cole , do you think that the housing shortage is over?
Albert M. Cole No. The housing shortage is not over, but ah, the um, the demand for housing has ah, kept up pretty well with the pace of the construction. Let's say the housing shortage is alleviated, ah, is, is assisted now and ah, it's in pretty good condition.
Larry LeSueur Thank you very much, Mr. Cole .
Albert M. Cole Thank you.
Larry LeSueur It's been very interesting to have you up here tonight.
Frank Knight The opinions expressed on the Longines Chronoscope were those of the speakers. The editorial board for this edition of the Longines Chronoscope was Larry LeSueur and Griffin Bancroft . Our distinguished guest was Albert M. Cole , Federal Administrator of Housing.
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Produced And Directed by ALAN R. CARTOUN CBS TELEVISION NETWORK 200 LW 343
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