Evening star., 1933-02-22
WINNERS TO HEAD
BUILDING ANDLOAN
Election of Officers for Year
Adjourns Sessions of In
Stitute Here.

With election of officers for the en-
suing year, the American Savings,
Building g. Loan Institute concluded its
two-day Midwinter conference in the
Carlton Hotel yesterday
c. Harry MINERS of New York, for
merly first vice president of the insti-
tute, was elevated to the presidency
Other officers elected include w. R.
Gibbon of Los Angeles, first vice presi-
dent, and Charles F.. Axtmann of
Youngstown, Ohio, second vice presi-
dent.
Lawrence Marston of Boston was
named district governor for the north
eastern district, o. K. LaRoque of Ra-
leigh, N. c., governor of the south
eastern district; John Sierocinski, Chi
cago, governor of the north central dis
trtct, and Guy Jaques, Portland, Greg.
northwestern district.
The advantages Of newspaper adver-
tising of membership In the Federal
Home Loan Bank system, examples of
how building and loan associations are
using their borrowings from the new
system and comments on the use of
long-term reserve credit were brought
out at the four hour forum which COM
pleted the conference yesterday after
noon.
$168,500 Loan Cited.
Citing an example of use of the Fed
eral boards funds by an association,
borrowing $168,500 from a regional
bank, Frank 0. Schneider of Kankakee
H., said the average manner in which
that amount of money would be re-
loaned is $4,000 to home owners for
undermining and repairing, $4,000 to
home owners wishing to pay taxes on
their property, $4,000 to families
building new homes and s142,500 to re-
finance straight mortgages for home
owners. The average loan by this
typical association would be $4,000,
Schneider said.
Another speaker, Clarence T. Rice of
Kansas City, Kans., retiring president of
the institute, told the association to
lose no time in advertising in news
papers that they were members of the
Federal Home Loan Bank System.
"As soon as your membership is COM
pleted, the advertising man of the news
paper should be seen and suitable copy
worked out for display advertising, as
well as some classified copy notifying
borrowers that the association is in the
loaning field" said Mr.. Rice. Always
keep in mind that membership in this
oyooSAA 40 ooiACIAlA1lS W UC P1OuO VI.
Other speakers on the program in
cluded Horace Russell, Atlanta, general
counsel for the Federal Home Loan
Bank Board, who was formal leader Of
the forum; r. T. Howard of the Federal
Boards examining staff, and Jonathan
II. Pugh, Chicago an examiner for the
seventh district bank at Evanston, III.
Mr.. Pugh's address on 'long-term
credit" stressed the need Of foresight on
the part OF the building and loan mana
ger now borrowing funds from the re-
gional home loan bank.
Indirect Supervision.
"The Home Loan Bank can exort a
powerful indirect supervision over lend
ing practices by establishing a high
standard for eligible collateral" said
Mr.. Pugh. This standard would GER
tainly exist primarily for the sake of
the member building and loan asso-
citation and its thousands of investors
who are actually its owners.
To-day We are creating a great re-
serve institution for building and loan
associations-the third such system in
American history-the others being the
Federal Reserve and Federal Farm Loan
Systems. The trainers of the home loan
act have profited by the experience of
these other systems. They have created
splendid skeleton. The building and
loan associations who are now so rapidly
becoming members of this system are
fast putting meat on that skeleton"
Mr.. Harvard told Of the strict eco
nomy which had been practiced in
getting the system into operation. De-
scribing the detailed form on which
the Federal Board required information
Of applicant member institutions, he
pointed out that the expense involved in
having applying institutions examined
by the several regional banks had been
avoided.
Letters on file testify to the value
of the information supplied at the
Federal Board, from the building and
loan points of view," said the Federal
examining officer. Many associations
have told of having better picture of
conditions from analyzing the detailed
information they were required to send
to the board"