The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-05
LEADER CREDITS
BUILDING BOOM
} TO HOUSING ACT
Inquiries Up 300 Per Cent,
Johns ManViIIe Chief
Declares.

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NEW YORK. Nov. 5.-Proof that
. the national housing act has started
things moving in the long MORT
bund building inf istry was submit
ted today by the great Tohns-Man-
vile Corporation.
It's aggressive young president,
Lewis II. Brown. said that inquiries
from hOme-owners about INSTALL
5 nent-plan repairing have increased
800 per cent since the new loan reg
uiations under the act were made
effective IN August.
Mr.. Browns statement follows
closely one by Chairman Clarence
81. Woolley Of the American Radia-
tor and Sanitary Corporation that
the housing act has given his COM
panv a 30 per cent upturn in sixty
DAYS.
Mr.. Brown said reports 10 him
from all over the country indicate
what is happening. His company
makes several hundred housing ma
terials along with nOnbuilding ma
terals. so he could not estimate the
extent Of the upturn. il has been
operating a deferred payment plan
OF sales since 1890.
Reports over Nation
The government now has been
able 10 stir many times as must in
teregt I'M deferred payment repair
ing as We were able TO stir by our
own company efforts" Mr.. Brown
said.
His san Francisco agents report
ed that on oct. 4 one bank has
made 1921 repair loans tOtaling
$4,000. BY oct 10 there were
1000 southern California home
owners who had obtained repair
loans averaging $500 each. In
Portland. Ore. hOme-Owners con-
tracted for $4,000 OF repairs in the
first thirty days after the act was
made effective.
We do not expect miracles from
the housing act he said. The
nation can not expect TO get nd
a. the depression by passing any
kind of act or law.
The Psychological effect Will be
more important than the amount
Of money put in circulation. Peo-
DE VIII begin to take pride in their
homes once more. The depres-
sion caused people to say every
where that any man who owned his
home was a sucker.
Red Tape Eliminated
1T vas a psychology of despair.
Let one home owner in neigh
borhoOd put a new roof on his
home and the psychology of that
ncighbOrhOOd is bound TO change.
"A man who puts a new roof on
- his home has stated to the world
that he expects to keep and live in
that home Tor the least another
Q ten years"
Johns Ianville Corporation set
Up a S1OOOOO0 subsidiary to buy re-
pair notes from 1000 accredited
dealers selling the corporations
products. The notes carry the per
cent discount provided by the
. housing act. The home owner has
Up 10 three years TO pay of.
There is no need for red tape"
Mr.. Brown explained. I discovered
when I was with Montgomery Ward,
and We have found it the same way
here with our deferred payment
plan, that 98 per cent of our Amer
lean people are honest.
Losses Partly Guaranteed
They Will pay what they have
. promised 10 pay, and no other
guarantee but their promise is
necessary.
The government guarantees
losses up to 20 per cent under the
housing act. We do not expect
/1eSe losses to run higher than 5
ser cent. For four years We have
discounted notes under our own
easy plan and our losses III the mid
die of the depression averaged only
about per cent"
Mr.. Brown expects effective re-
suits from Title II Of the housing
act. which becomes operative in
November. but does not believe the
ball viii get rolling until the spring
Of 1888. Title II provides for long
term financing Of the new home
building under protection Of a mu-
tual insurance company set up by