Evening star., 1933-12-19
P. v. A. D|SM|SSES
GEORGIA ENGINEER
Illinois Home Owners Man.
ager Also Out After
Complaints.
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works loans would not have to be paid
back. The administrator also dismissed
Lieut.. Gov. N. G. Krescehl of Iowa
from the State Advisory Board, with
cut giving cause.
Fahey, in statement issued in
said he would attempt to Jail persons
who claimed to have special influence
ip getting home loans. Those who
claimed they could influence corpora
tion officials were termed plain
| frauds" by Fahey.
The statement pointed out that the
home owners loan act provides for
fines Of $4,000 or five years imprison-
| ment, or both, for collecting commits
sions and a $4,000 fine or a two-year
| imprisonment, or both, for false ap-
praisals or any other misrepresenta-
tionS.
"The fact that such a tremendous
number of applications have been filed
| throughout the country making prompt
action impossible. while applications
continue to come in, has been taken
advantage Of by unscrupulous persons
who attempt to impose upon the pub
| lic." Fahey said.
| 1ney approach nome owners need
| ing loans, as well as lenders who are
willing to exchange mortgages for the
| corporations bonds, claiming special
| ability to advance the closing Of loans.
Those pretenders usually allege that
they stand in with some representative
of the corporation and that this fact
enables them to get liberal loans imme-
diately.
"Of course. agents of the corporation
have no knowledge of these pretensions.
| and such attempts to gouge those hav-
ing loans under consideration by the
corporation are plain frauds. We pro-
pose to follow up energetically every
case brought to our attention and pros
ecute every violation We find
mo influence of any kind Is neces-
sary or will be considered In dispos-
ing of loan applications filed with this
corporation. No one needs to pay a
| cent to any one to receive preferred
attention. Applicants for loans which
| the corporation can make will get what
| they are rightfully entitled to; no more
and no less. Exactly the same fair
| treatment will be afforded to lenders
Assistance Is Promised.
ANY employe OF the corporation. in
any capacity, who disregards these
/ principles of fair play will be dis
! charged so quickly it will make his
head swim. and prosecuted if evidence
| of fraud is obtainable.
mo only in Illinois, but every other
State, the board is engaged in inten-
styling its work, and it proposes to
push it to the limit. with due allowance
sary to protect the interests of the
| Government as well as the home
| owner
The home owners of Chicago and
! Illinois need have no doub. that any
thing will be left undone SO far as the
| Home Owners Loan Corporation is
concerned to afford them such assist
ance as they have right to expect
| under the law
Donne's resignation followed confer
| enceS with the Home Owners Loan
Corporation. Donne. Fahey said. sub
mitted to the board elaborate data JUS
| tifying his actions. His resignation was
accompanied by statement that al
| though he was able to refute all charges
he felt it would be better for Illinois
home owners If he resigned
Henry G. Zander. jr.. of Chicago was
appointed manager for the Illinois State
Branch of the Home Owners Loan Cor
poration today to succeed Mr.. Donne.
Mr. Zander, who is widely known in
the home building field, is native of
Chicago and a graduate of the Univer-
sity of Wisconsin. He has been engaged
in the home building and financing and
real estate business during his entire
business life, except during the period
of the war. He has been active in
public affairs and Is a former preSi-
dent of the Chicago Real Estate Board.
He has also been active in the affairs of
the National Association of Real Estate
Boards and is we'll known in mortgage
and real estate circles throughout the
country.
The board, meanwhile, the statement
said. will continue investigation in all
parts of the country Of the operations
of persons attempting to collect COM
missions on the basis Of alleged special
opportunities to influence favorable
loans" and will employ every power
at its command to prosecute all cases
of violation of the law covering such
attempts"
The Chicago Office Of the Home
Owners Loan Corporation was closed
to the public following resignation of
Donne. A staff of Government auditors
was busy checking and examining the
records.