Evening star., 1934-12-29
100000 IN CAPITAL
TO GET $2,16,0D0.
viii Share in Earnings of
Building and Loan
Associations.

Nine million men, women and chill
dren, more than 100000 Of whom
live In Washington, will share in q
dividend distribution to be completed
Monday as savings, building and loan
associations allocate their last six
months earnings.
Morton Bodfish, executive vice
president of the United States Build
ing and Loan League, reports that
these building and loan shareholders
will receive a total Of $140,000,000.
Approximately $2,175.oo0 of this will
60 to shareholders In associations OF
the District.
The league executive showed that
the dividend volume is of the great
oaks from little acorns" variety, being
the return received by those whose
average personal holdings in their
associations is S756. There are 10000
of these thrift and home lending in
stitutions participating in the divi-
dend distribution, many Of them with
less than 100000 in assets, a few
OF them with $50o00,000 and most
Of them somewhere between these
extremes in size.
Paid Returns to Investors.
THE continued ability Of more than
-tenths of the building and loan
associations to pay a return to their
investors, after five years Of depres-
sion, shows the strength of the CO.
operative financial set-up in which
millions Of investors have an equal
opportunity to benefit from the in
stitution's earnings" said Mr.. Bodflsh.
"It is noteworthy that those who left
their savings with the building and
loan associations through thick and
thin, and thus helped maintain the
private home mortgage resources Of
the Nation are being rewarded every
half year for their common sense
and trust, by receiving return even
on investments below the 500 total.
The ability of the building and loan
association to build up the Nations
home mortgage capital is largely due
to the fact that it utilizes the widows
mite and the childs dimes and quar-
tiers as we'll as larger investments in
the great economic service of aiding
home ownership and better stand
ard of housing.
Small Savers Bulwark.
MANY of the millions distributed as
dividends by the associations are
credited on installment shares of the
members, rather than being paid out
in cash, and thus temporarily the
cash income Of the association from
its interest on loans goes right back
into the home mortgage field to ex-
pand further the money available for
borrowers. Here again the small saver
Is seen as the bulwark of the home
mortgage capital, his earnings as well
as his original investments being d.
verted toward the much needed home
ownership revival"
Some of the associations have raised
their dividends this period from the
reduced semi annual returns voted in
the depths Of the depression when
they were building up reserves. Others
have just got around to the point of
reducing them temporarily for this
safety purpose, and thousands of
associations have put themselves per-
manently on lower dividend basis
than was characteristic during pre-
depression days in accordance with
national efforts to lower the cost of
mortgage money, he reported.
Offer Higher Return.
"The average return on the build
ing and loan share Is still, however,
the highest paid in the non-specula-
tive. savings investment field" the
league leader concluded. with Fed
eral Reserve member banks and in
sured banks limited to 21a per cent
interest rate by a recent Reserve
Board order, and with insurance
companies planning a revision of their
entire premium and interest set-up
for the coming year, the building and
loan association strengthens its claim
to being the chief home mortgage
institution of the land, since it alone
today is offering savings investors a
return suffcient to encourage their
putting savings into the long term
field."