New Britain herald., 1919-08-01
MANUFACTURERS FORMING .$1,OO0,O00 ORGANIZATION ,
 TO HELP PEOPLE OF CITY
Money Will Be Loaned at 5 Per Cent. Mortgages to Aid in Reducing High Cost of Living.

Plans are under way for the for nation in the city of New Britain of a corporation of $1,000, ,0OOs capital stock with the object of Ioaning to . those who wish to build homes here sufficient amount on second mort gages to enable them to do so. There will be no profits expected from the corporation, but it will serve solely as a proposition which will help the city, primarily in reduction of rents and the increase of homes. The manufacturers will be the heavy in vestors in the corporation, though public spirited citizens who wish may subscribe to the stock.
 Realize Tenement Shortage.
 The local concerns realize the need for better housing facilities here and have taken steps to aid the workman and home builder who has not the necessary amount of cash to have a, home of his own. They are under taking the floating of the concern simply as a philanthropic proposition and with the estimable desire to make of New Britain a better city for all who live here. Money will be loaned on second mortgages at a five Ser cent. rate. It is obvious that fig nancial returns are expected from the investment as that income, and more, is readily obtainable s from other sources of investment. The running expenses of the corporation will also amount to something appreciable, providing there is a. response to the desire to loan.
 New Britain banks are now ready to loan about 50 Per cent. of the value of a house and lot on first mortgages. The margin of possible loss is too Sgreat for them to loan more than that. The new corporation will take up where the banks leave off and will loan the remainder of the amount necessary to insure the erection of the home. The risk to the corpora tion is great of course, but there is enough faith that values are not going to depreciate to warrant the manu- lecturers undertaking the plan. If there is not great depreciation they will about break even on returns.
 Plan Open for All.
 AThe money will be obtainabe by anyone in the city who is in the least dependable. He will simply be loaned it with a second mortgage as a guarantee. There will be no at tempt to dictate where he is to choose
 
 is to. have. For those who already have lots money will be loaned with which to build if the owner wishes.
 : May Start Big Boom.
 The action makes it possible that the city will see two million dollars worth of new homes added within a very short time This is assuming that the first mortgage Is taken out with aSbank and the second with the corporation. The total amount thus available is two million dollars and there is no reason why the rentpayer of today may not become the home owner of tomorrow The cost to him will be less than rent in many in- stances even though he is paying off | a little each year. While the plan has not yet been put into operation it is probable that it will be very shortly and that the necessary sum for those who plan to build will be obtainable. We under stand that the sentiment of the New Britain manufa cturers is such that the money is already assured through them. The proposition of course, will not appeal to the investor with an eye to profits.