Evening star., 1932-10-11
CONTRACTORS HIT
GAS TAX DIVERSION
FROM HIGHWAY USE
Association Expected to Call
on States for Proper Ap.
pIication of Funds.
UNIFORM LIEN ACT ALSO
TO BE CONSIDERED TODAY
Federal Official Urges Study of Ef-
fects on Construction of
Shorter Work Week.

Diversion Of gasoline tax receipts to
another purpose than road construction
was denounced today in a report laid
before the governing boards of the As
| sociated General Contractors at their
Fall session at the Shoreham Hotel
The body this afternoon was expected
to adopt resolution presented by a
committee calling for action in the va
rlous States against use of the gaSo-
line tax funds for other than road work.
The A. G. G. leaders also will act on
resolution calling on all elements OF
the construction industry to support
adoption by States of the uniform me-
chanics lien act sponsored last year by
the Conference of Commissioners on
Uniform State Laws The draft was
the elimination of a study of seven
years.
The contractors discussed proposals
for extension Of the 30-hour work week
to public construction, but action on the
matter was postponed to later conven-
ton.
Asks Short Week Study.
D. H. Sawyer. director of the Federal
Employment Sterilization Board, ad-
! dressing the body this morning. urged
on the construction industry of adoption
Of the shorter work week.
Speaking Of the declines in building
operations OF the country during the
past three years, Mr. Sawyer said he be-
Eeved the tide at last had turned. and
that the future was more hopeful. He
urged the contractors. however, to re-
adjust policies to meet the conditions
OF lesser annual amount of building.
S. M. Williams. president of the Bu-
reau of Contract Information. which
complies performance records of con-
tractors, reported that since the Fed
eral building program was launched in
1928 contracts totaling s400 1854 600 had
been awarded, leaving S300,000,O00 yet
to be let.
The banking structure of the country
will be strengthened greatly by the
operation of the Federal Home Loan
Banks which will start Saturday, lead
ers OF the Associated General Con.rac-
tors were informed yesterday afternoon
oy Nathan Adams, one of the national
directors Of the new system of banks.
He pointed out that the Home Loan
Banks will make possible long-term
credit for which there had been demon
strated need
The new banking system, he declared,
should have the support of every citi-
zen who believes the stability OF the
Nation depends upon its home owners.
These banks, through the loans 1t will
make to its member institutions. he
said, will provide long-term credit to
purchasers of homes. Among members
OF the system will be building and loan
associations, savings banks and insur-
ance companies.
Plan Is Analyzed.
Outlining main provisions Of the act
creating the Home Loan Banks, Mr..
Adams pointed to the conservative
principles upon which they will operate
IN making loans, Illustrating the sound
ness of the plan.
Operating of the system should lead
to adoption OF better appraisal methods,
he said.
The system, he continued, would give
the investing public bonds of the best
security, explaining that under the
terms OF the act every sl00 in bonds
issued must be secured by Sl90 worth
OF home mortgages in the possession of
the Home Loan Banks. Such bends
would be those issued by the new sys-
tenn as means of providing FUNDS for
home finance purposes. They would
provide funds in addition to the orig
1nal SIPS, 100000 capitalization of the
banks,
Huge Sum Available.
In response to question Mr. Adams
said that by the sale of its bonds and
its original subscriptions it had been
estimated the Home Loan Banks during
the first two years of their operation
would have available fund of approxi-
mately S1.500,000,000 for use in home
finance.
He declared there would be a market
for the sale of the bonds, which are
tax exempt, just as there is for the sale
OF Government securities.
Oscar w. Rosenthal, member Of the
A. G. c. governing council, at the con-
clusion of the address by Mr.. Adams,
said that the new home loan banking
system, or one having the same objec-
tlves, undoubtedly was necessary for the
assistance Of home purchasers He de-
clared. however, that it should be rec
ognized that the bonds to be sold by the
banking system would provide COM
petition for construction bonds offered
by private financing agencies. This. he
said, will create the problem of setting
up private investment bonds of equal
security.
bullulng Spee0e0 Up.
Ferry K. Heath, Assistant Secretary
OF the Treasury, in charge of the Super
vising Architects Office, earlier in the
afternoon told the A. G. c. delegates
the government building program has
been speeded up so as to afford all
possible assistance to labor and builders
during the current employment
emergency.
IJo coid tho y,rocepf rrooropo co1lc for
an outlay of approximately $10,000,000
a month for Federal building projects
and that this program would be main
tanned through the next IL months.
The program, he said, would create a
total of $500 new Federal buildings,
scattered throughout the country.
A difference of opinion over the
methods being followed by the Recon-
struction Finance Corporation in its
loans for constructive projects arose
yesterday among members Of the con-
tractors governing body, but no action
was taken in the matter.
Urges Liberal Attitude.
Mr. Rosenthal declared that If
cautious attitude" is to prevail in this
poration, the purposes Of the law In
creation of the agency would not be
carried out. Legalistic attitudes and
"untra conservatism, he said, are ham
pering the work of the corporation and
causing delays in consideration of prof.
ects. He pointed out that new legis-
lation is needed in some States before
they can secure loans for elf-liquidat-
ing projects.
II. +. Treadway Of Kansas City
countered with a declaration that the
contractors should not push the Finance
Corporation to hasty action since it Is
no doubt true the corporation has had
application for loans on wildcat as well
as sound ideas. Only sound projects
get the support Of the Finance Corpora