Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-06-13
HOME OWNER Is
BULWARk OF
AMERICANISM
Chamber of Commerce Hears
of Shortage of Houses and
Need of Financing

That the present national housing
shortage is more than a million
dwellings,, and that the tenant sys-
TEN of housing is both undesirable
and dangerous. were two striking
statements made last night by Carl
v Haymaker of the Federal Hous-
: ing Corporation, United tSates De-
partment OF Labor.
Mr.. Haymaker was speaking at
conference of bankers, builders, To-
cal building association managers
and members of the housing COM
mittee of the Harrisburg Chamber
of Commerce, held at the Harris
burg Club, for the purpose of dis
cussing the best methods to en-
courage home building and to find
the way to provide funds for those
who are anxious to own their own
homes.
No nation of tenant dwellers lacks
patriotism and Americanism. Boil
shevism would never exist where
everybody owned his own home"
Mr.. Haymaker told the businessmen.
Need Js Urged
j. Horace Mcfarland, chairman
of the Chamber of Commerce hous-
ing committee. in the opening ad-
dress, pointed to the urgent need for
immediate erection of homes at
moderate prices. He told of the re-
suits of the survey conducted by the
Civic Club of Harr sburg at the re-
quest of the housing committee, in
which it was shown that there were
at that time thirty mine vacant
houses in the city and four apart
ments in addition to 1900 vacant
rooms out of probably $4,000 rooms
in the city.
Some of the results of the work
of the Homes Service Bureau of the
chamber were explained and the
-.
was mentioned as an evidence of
the necessity for constructing dwell
ings at once.
In opening his address Mr.. Hay
maker said that 10000 houses are
built annually in the country under
normal conditions. During the last
two years few residences were con-
structed. making the present short
age far above the million mark.
The most important problem to
be met is that of financing the big
building program. Much credit
must be allowed, he said, on liberal
terms, and building and loan assoc a
tions should be provided with op-
portunities to increase ~ opera
tions for which they are in busi-
ness. These are providing means
for saving money and stimulating
building.
Mr. Haymaker then told of the
difficulties of the building and loan
associations because their mortgages
are not basis for credit, although
they are gilt-edge securities. An eX-
planation of the proposed home
loan law, of which he is the author
was given. The bill was introduced
in the United States Senate last Fri
day. Some of it's provisions are the
establishment of ten to twelve dis
tricts in the United States, in each
of which ten or more building and
loan associations would be allowed
to organize themselves into a fed
eral home loan bank with the asso-
Citations supplying the capital stock
and operating under federal super
vision.
Stock could be owned only by the
associations and for every 81 900
worth of stock subscribed. 100000
could he borrowed with $4,000 un-
paid mortgages as security. The
banks would then issue bonds, pay
ing four and one-half per cent; the
association would give the bank
note for 100000, payable in twenty
annual instalments. This plan would
allow the associations to provide
their patrons with funds for build
ing.
Banks Are Helping
Ross A. Hickok, chairman of the
housing committees subcommittee
on finance, said his committee had
provided means in a number of in
stances for home-seekers to build
their own dwellings,. He reported
that the banks were cooperating
and then pointed to the big building
boom which has been started in the
city, which indicated a favorable
outlook for relieving the present
housing shortage. He showed from
figures obtained from the Building
~ h1 80,
were taken out for dwelling houses
to the value of s46,650. Up to date
this year permits have been issued
for dwellings and apartments to the
amount of S729,S00. In the present
month the amount was $404,600.
A general discussion followed the
formal conference, in which a num-
ber of bankers and other business
men participated William Jennings.
president of the Commonwealth
Trust Company, said that the hous-
ing situation can be improved if
builders once realized that prices
will remain as they are for the pres
ent. John +. Dapp, A. K. Thomas
and others made clear that the bank
ing institutions are ready to aid in
every possible way within the lines
of financial safety.
On Threshold of Boom
Mr.. Haymaker predicted that the
country was on the threshold of a
tremendous building boom ard that
some means must be found to capt.
talize building operations. He
strongly advocated making avail
able for increased credits the mill
lions of dollars now held by building
and loan associations ir, mortgages.
He said these mortgages ir the
United States amount to at least two
billion dollars. He mentioned the
fact that the building permits in May
this year were the third largest in
the history of the country, and argu-
ed in favor of loEg term mortgages
on instalment payments. Mr.. Hay
maker declared that the building
and loan associations were almost
as numerous in the United States as
banks and that the sunas naid into