The Washington herald., 1922-05-13
HOUSING BOARD
BUMPS ROCKS
OF DISSENSION
Attempt to Hide Real
Facts From Public
Intimated.
CHAIRMAN RERUKES
SUBCOMMITTEE
Clash Over Rates for Dis
counting Second
Mortgages.

Commissions collected for the
discounting OF second mortgages on
newly constructed dwellings in the
will result in the complete disrup-
tion OF the committee appointed by
the District Commissioners to solve
the housing problem here.
This was evidenced yesterday
when a rift, which has been divid-
Ing the committee for weeks, was
aired at a meeting of the commit
tee in the District Building held
to hear the reports of subcommit-
tees which had been making city
wide Investigations.
The breach was barred when
Thomas Bones, chairman of the sub
committee on finance, submitted a
report which approved the activi-
ties of builders and financiers in
connection with the erection of ad-
ditional dwellings here.
Rebukes Subcommittee.
Mrs. Eli Helmick. chairman of the
general committee, declared the
headed by Bones had
failed to function; that it had been
given definite instructions regard
ing its duties, and had failed to
execute those duties. She stated
that facts had been presented which
II made public would shock the
residents of the District.
At this point william Deane
Ham, a member of the committee,
read a minority report on the
fNu
the building and housing situation,
asserting we have unquestionable
evidence to prove that large num-
bers Of financing companies and
still a larger number of individu-
ais are reaping unconscionable
profits through the discounting of
second mortgages.
Ham fayed the subcommittee on
finance and offered to prove his
charges, that exorbitant commits
sions are being collected for dis
counting second mortgages
Both Reports Sent Back.
After prolonged debate the gen
eral committee refused to accept
either the majority or minority re-
port and on motion Of Snowden
ASHFORD sent them back to the sub
with instructions to re-
port specifically on financing prac-
tices Of building and real estate op-
erations and to submit such recon-
mendations as will relieve any sit
uation found warranting relief.
The majority report of the sub
committee on finance declared
careful investigation showed that
all the available labor and material
used in building construction in or
about the District was actively en-
gagged in building dwellings and
that these operations were far in
excess OF any other period.
The subcommittee found that
most of the money used in building
operations was furnished by local
financial institutions and investors
and the amount of money available
was keeping pace with the opera :
tioEs. The majority report stated
that this rate of interest and COM
missions charged on building loans
in the District were as low and in
many cases lower than in many
other cities.
Small Home Buyers Ignored.
Notwithstanding that there is a
big building boom here tho dama;, 4
is so great that contractors will NOT
accept small first payments on a
home and no homes are being built
for the alley dweller or small hom.
buyer or for rental purposes" saii
Ham criticising the subcommittee.
In his letter. Ham said: These
men know that there is a big buiId
ing boom with several hundred
houses under construction. They
know il is easy for them and their