Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-09


of the home builders and Subdiv
tors body, points out that the
major problems of the home-oul
easier. more desirable and more a
lean to own his own home.
The commission will deal with the
~yhole broad subject of home con-
struction and home buying, including
matters of finance, design, equipment
CITY planning and tfanspor CatloIl.
Various national bodies already nave
been at work on the propieM on
these forces will be combined unoer
the guidance of the commission.
Lamont Heads Plan Group.
Secretary of Commerce Lamont VIII
head the planning committee ana
John M. Cries. chief of the DIVISION
of Building and Housing OF the De-
nartment of Commerce, VIII De eXecu-
The heads of the following organiza-
tons have been named initial mem
hers of the commission: american
civic Association, American Farm
Hnreau Federation, American Fedora
fion of Labor, American Home ECO
Monies Association, American Institute
of Architects, Associated General
Contractors. Association OF Lie IN
s,,rance Presidents, Better Homes IN
America Chamber of Commerce OF the
united States. General Federation OF
Women's Clubs, National ASSOCIATION
of Builders Exchanges, NatlonaI AS
sociation of Real Estate Boards, Ma
+;or1ai Congress of Parents and Teach
ers National Farmers Union, NatlonaI
Grange. Russell Sage Foundation, me
savings Bank Division of the amer.
car BANKERS Association, UnlGeu
states League of Building and Loan
Issociatfor,S and the Women's Ma
tional Farm and Garden Association.
Miller Explains Work.
Mr. Miller today made the follow.
ing statement regarding the WorA Vi
the Hoover Commission:
..-The strength of a nation is a re-
6ection of the homes of the common
neooIe. The home, therefore, Is Oh
Greater importance than the factory
or the bank. 1t is the pulse OF pros
perity and SO it must be stlnulateo
6sIr Nation is to come out OF its pres
ent lethargic state. r,r
In 1921 when Secretary hoover
organized the Presidents Unemploy.
nent Conference, America resoqnoeu
and under the impetus OF this move
ner1t we have enjoyed almost oecaoe
of unexampled prosperity. Cautlon,
however. was thrown to the WINDS anq
canital was persuaded to invest In real
estate as never before. We have seen
in this 10 years the formation OF
financing companies, heaoeo py men
of little or no real estate experience,
extending credit upon the basis OF tne
greatest return rather than upon Cne
boSis of sound security. 1t Is no Won
der then that so many of these hnanc-
ing corporations found their assets
frozen by being forced to take oacK
T1roperty which was never truly WorIn
the loans extended.
Honest Man Beaten.
"1t &c no wonder that the honest
builder could not compete with the
'ierry' builder and it is no wonder tnat
the stockholders in these large nnanc-
ing CORPORATIONS, which covered the
country like a huge network, set up
howl against real estate financing
CORPORATIONS whose capital has oeen
either lost or temporarily frozen 50
that they are not now receiving the
dividends to which they would be en-,
titled had their money been invested
in a safer way.
"Canital is entitled to interest; labor
IN entitled to wages; and land Is en-
titled to rent or income-aH IN proper
nronortion. When any one OF these
three factors begins obtaining greaGer
return than has been customary III tLe
nast. there is something wrong WIN
the economic structure and so Wnen
financing corporations were earning
is to IS per cent per annum LOT tnen
stockholders, the public should nave
recognized the red flag as danger
signal and looked into the manage
ment of the companies which were ap-
parently earning such great dlVloenos.
CAPITAL has never been entitled 10 Such
earnings and the avarice OF the man
agement of these financing corpora
tions has resulted in a great shock 10
the real estate industry.
AS the condition OF stagnatlon anu
unemployment in 1921 was aVoloeo py
secretary Hoover by stimulating tne
construction industry, so now py ms
conference on the problems presented
on home ownership and home bulioln9'
president Hoover will probably again
revive the building industry, which Is
the greatest industry in America today
and in so doing ne will bring back 10
us that prosperity which we have tenn
porarily lost According TO his state
ment as given in the press OF August
2 due consideration will be gwen 10
the financing problem, and II proper
safeguards are provided there is no
reason why the prosperity whlch VIII
C-I.r 9