Imperial Valley press., 1934-03-08
VETERANS To
LOSE HOMES
BY EV|CT|ONS
Foreclosure Planned By State
Welfare Board On Those De-
linquent In Payments.
FRICTION IN DEPARTMENT
Stout Resigns Position As Pro-
test Against Action Proposed
By Director.

SACRAMENTO, March 8. UP) -
Threatened eviction of 1000 Cali
fornia war veteran home owners
threw service mems organizations
and political circles in an uproar
today and led to the resignation of
George Stout, for IL years secre-
tary of the state veterans welfare
board
Stout resigned il. protest to new
board policy intimating foreclosure
on veterans purchase homes owned
by service men who are three
months or more in arrears on their
payments. American Legion and
other veterans organizations
throughout the state were expected
to fight the edict.
The secretary named John P.
Brennan, Director of Veterans af-
fairs and a prominent figure in the
Nolph administration, as responsible
for the foreclosure plan. Brennan
and Stout have been "at outs" for
the capitol that Brennan has sought
to have Governor Rolph appoint
some one to succeed Stout as board
member.
The board is faced with a current
delinquency of $685., ,849 and in or
der to keep its bonds sound and to
force collections, it was believed nee
essary to adopt policy of entering
the landlord business and foreclos-
ing on delinquencies, according to
information revealed here.
Some 12,000 veterans own homes
under the purchase act. The welfare
board advanced the money and con-
Structed the homes, and veterans
were permitted to pay for them by
making monthly deposits More than
1000 are delinquent three or more
months. If the foreclosure order is
carried out, they may be evicted.
The new order, it was learned
here, was adopted at Fresno meet
ing Saturday night, but did not be-
come known Immediately. It was
based ION the theory that the board
should protect itself against finan-
cial loss when it is proved that a
veteran in default has no chance of
making the payments required OF
him in his contract or has shown
no disposition to make sucn pay
mentS even in the face of a fixed
and steady income
Has Large Investment
California has invested $55, ,407, 700
in veterans homes and farms since
1922. Bond issues raised $50,000,000
of this amount. An additional $780,
100000 issue was approved by the
last legislature and will be voted
upon in the November election, to
take care of demands of some of
the thousands of veterans who fail
ed to be included in benefit loans of
the first S55,000,000
Stout, in his wire of resignation TO
Brennan, in Berkeley said:
please accept my resignation in
protest against high-handed meth
eds and dictatorial policies which
you have inaugurated and which
threaten the wholesale cancellation
of veterans home purchase con-
tracts.
In this period of emergency, 1
consider it rank injustice to Cali
fcrnia service men to enforce regu-
lations which are arbitrary and un-
warranted and which will bring ira
gedy and despair into the homes of
many hundreds of veterans pur-
chasing homes under the veterans
farm and home purchase act.
1t is unbelievable that our state
should work this added hardship on
veterans when the national govern
ment is doing its utmost to protect
veterans and civilians alike. Not be-
ing in sympathy with your policies
have no recourse but to terminate
my IL year tenure with the board"
Stout served on the board under
four governors, w. d Stevens,
Friend w. Richardson, C. c. Young
and James Rolph. Recently, it was
reported he would seek election as
state treasurer should treasurer
Charles G.. Johnson decide to be-
come a candidate for governor.
The board, with Governor Rolph's
approval, must choose his success