Evening star., 1932-09-03
TAX CHANGE ASKED
I. At LOAN SESSION
Present System Burden on
Home, Committee Tells
United States League.
Special Dispatch to The Star.

FRENCH LICK, Ind, September s.
Abolition of the general property tax in
its present form was the stand taken
by the Committee on Home Taxation
in its report to the United States Build
ing and Loan League at its convention
here late yesterday. The committee
recommended the uniting of building
and loan associations in a three-poinc
program to lift the unjust burden of
taxation on the American home owner,
which is the greatest deterrent to home
ownership"
The report was made before thou
sand building and loan association
executives by the committee chairman
Philip Lieber of Shreveport, La.
The program urged by the committee
calls for: Abolish the general property
tax; abolish the special assessment plan
which has confiscated SO much prop
erty and ruined SO many owners" and
with which we are confronted into onc
tax bill, scientifically applied and
divided among the various general ano
special, political, educational, service
and social activities.
Manner of Loan.
Meanwhile the committee urged "the
building and loan associations of the
United States can best presently meet
this problem by making their loans In
a manner that shall include periodic
payments of all of the essential ele.
ments of any home loan-interest, prin-
cipal, taxes, insurance premiums. i'm
provement assessments, water rent, etc.
Members of the committee have given
q years study to the problem.
"As building and loan managers
vitality interested in the progress of our
home financing institutions, major
task to which we must assign ourselves
is that of endeavoring to have the ta2
shifted from the home" says the report
This we recognize must be done not
by the mere transfer of the tax to othel
sources, but by an intelligent spread ir
an equitable manner over all flnancia
transactions.
Federal incorporation Of building anc
loan associations was recommended II
the report of the Reserve Credits ant
Banking Relations Committee to tn,
United States Building and LOAF
League. The committee, a specia
group appointed to study problems in
and loan reserve credit system, ha'
given a years consideration to thu
proposition
All of the association now operating
under the authority of State statute!
are supervised by State officials.
For Federal Incorporation.
In view of the recent enactment o
! the Federal Home Loan Bank System
which embodied the committees lead
| ing ideas on the subject of long-tim
| reserve funds for the associations,
majority Of the committeeman believ
that federal incorporation is desirable
and recommend at this. time that tn
United States Building and Loal
League strive for federal incorporation.
C. A. Sterling of .scpeka, Kans., chair
man, reported for the committee.
Federal incorporation is especial
desirable in order to achieve uniform
supervision and standards of practice,
reports the committee. "As we see tn
practical workings Of the Federal HON
Loan Banks, we are going to realiz
more and more the necessity OF thos
standards. This will do much to max
out plan more readily understood by tn
people generally"
The text of the report points out tina
federal incorporation of the association
was recommended by ma ajority Of tn
Reserve Credits and Banking Relation
Committee at the time of the Presi
dents Conference on Home Buildin
and Home Ownership last Decembe
Some 500 building and loan men wer
in attendance. It was voted to con
slider the suggestion further at tha
time