South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-02-21


terest in South Bend. and will thus
be better and more desirable citizi-
zens.
The corporation, as now planned.
viii have a capital OF 100000
This money will be used in the
building OF houses. The plan, how
ever. IS TO loan the money 20 the
workman. so that when ne pays 1t
back. in monthly payments-much
as he would pay rent-he will have
his own home.
Committees Idea.
Practically every workman has
saved some money. The idea OF the
committee now at work on the
housing problem is this: The work
man, with whatever money he has
saved. VIII buy a lot and build his
home OF course, he won't have
enough money. so he will go 20 a
bank, where, on the security OF the
land and house, he can borrow a GER
tain sum. However. the total Of
what he has saved and what he can
borrow will in most cases not be
sucient. because no bank will loan
up to the full value OF the property.
That IS where the housing corpora
ton will, come in.
This corporation will take a sort
Of second mortgage on the property.
furnishing enough money TO make
10 possible for the workmen, with
what ne has and what he has Dor
rowed. 10 build his home. Prece-
dence in the matter Of payment will
be given 10 the second mortgage,
because the money. returned to the
housing corporation. can be imme-
diately utilized in the building of
still other buildings, or can be used
In the withdrawal Of stock
THE corporation TO be formed will
not be designed for profit. However.
a fair return to the investor will be
provided-probably six percent. In
order TO protect the investor, there
will be a margin of safety, much as
in an insurance organization. You
know an insurance company makes
you pay, say, $50 a thousand for
your insurance, knowing that the
real cost will be $17 or SIS. Then
at the end of the year they return
that margin, whatever it may prove
TO be, in the form OF a dividend
The housing corporation plan is
the same. A sufficient return 70
amply protect the investor will be
required; if there is too much money
in the treasury, a portion of ii will
be paid back to the men who build
their homes, and who borrowed the
money which brought in the interest.
Bureau OF Information.
Besides this feature of the cor
poration, there will be a bureau OF
information for the benefit Of those
who have sufficient funds TO build
their homes without the aid Of
money borrowed on a second mort
gage, but who do not know just how
to go about il. Thus widows who
have life insurance money which
they want to invest, and workmen
who have enough money saved up.
will be persuaded to build homes.
whereas without the help which will
be furnished they would very likely
not do so.
The big problem now is TO get
man VINO IS capable TO act as
executive for such an organization.
Such a man Will be hard to get; he
Will cost at least $1,000 a year.
While we are looking for him, we
are not wasting time, but are get
ting detailed information from every
possible source: from the govern
ment, and from other cities which
have experienced booms similar to
the one we expect.
I'VE want to build, not houses,
but homes. Unless We see that the
proper care is taken, we are going
TO have difficulty. We want living
conditions in South Bend to be OF
the best, because contented and eff
fcier.t workmen can exist only where
good living conditions are found.
Merchants Must Help.
1T is up to the merchants, as