Evening star., 1934-10-27
LOAN GROUP ENDS
ANNUAL MEETING
IN NEW ORLEANS
Convention Is Termed One
of Organizations Most
Successful.
HOUSTON MAN ELECTED
PRESIDENT OF LEAGUE
Addresses by Representatives Of
Association at Sessions Highly
Regarded.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW ORLEANS, La, October 81
Members of the United States Build
ing and Loan League started for their
homes yesterday after concluding their
forty-second annual convention, de-
scribed by Philip Lieber of Shreveport,
La, ''as one of the most successful
meetings in the organizations his
tory"
Before adjourning. the delegates
elected. I. Friedlander of Houston,
Tex, president; Legrand w. Pellet,
New Burgh, N Y, first vice presi-
dent; and Harold T. Donaldson, Lam
sing, Mich, second vice president.
H. F. Cellarius, Cincinnati, Ohio, and
Morton Bodhsh, Chicago, ILL.,, were
Reelected secretary treasurer and
executive vice president, respectively.
En- route to their homes, the build
ing and loan organization leaders
have three memories of the conven-
ton which probably outweigh others.
They are the prediction by Horace
Russell, general manager of the FED
eral Home Loan Bank Board, that
home ownership will double within the
next 20 years and his warming that
mot only more homes but better
homes are in need; the assertion
that private business must become
energetic in assuming the conduct of
business, made by several speakers;
and Mr. Lieber's statement that home
stead and building and loan organ
izations are face to face with gen.
eral lowering of the interest return
on capital invested"
Talks Highly Regarded.
Because of activities of new Fed
eral agencies, including the Home
Owners Loan Corp. and the Federal
Home Loan Bank, talks by representa-
tives of the national administration
during the convention were regarded
by delegates as considerably more i'm
portant than in former years.
Many proposals for ''modernizing"
the home financing industry were pre-
sented during the convention sessions
They included plans for insurance of
building and loan shares, for Federal
savings and loan associations, for
higher standards of appraisals, for
reforms and simpliflcation in building
and loan practice and for INSTALL
ment loans for repairs and improve
ment.
Through adjustment of the medium
of exchange, price levels can be lifted,
wages increased, debt burdens dis
charged, unemployment relieved and
consumption enlarged, Representative
Henry B. Steagall, chairman of the
House Banking and Currency Com
mitee, told members of the league at
their convention banquet.
The attendance at the banquet, es-
timated to be in excess of l,400, ne
cessitated overflow accommodations.
John H. Fahey, chairman of the
Federal Home Loan Bank Board Of
Washington, after reviewing the
achievements of the Home Owners
Loan Corporation, pointed out that
operations of that body are nearing
an end. Lending institutions, as
result of the H. o. L. c. operations,
he said, have received tremendous
sums, and these, with the facilities
of the Home Loan banks and the
expected flow of private funds after
share insurance has restored the
confidence of the investing public.
provides large amounts which should
be made available to the borrowing
public. He urged liberal lending
policy by the building and loan as
sociations in order that the burden
borne by the Government in the past
two years more quickly can be trans
ferred again to private business.
Restoring Confidence Discussed.
The means whereby public conf
dence can be restored i'll building and
loan associations. insurance OF home
stead shares against loss were dis
cussed by Fred w. Catlett, member
of the Home Loan Bank Board.
Already, he said, $50 Federal say.
ings and loan associations have hleo
annlications for insurance. Appllca-
tions from State-chartered nStltu-
tions have started coming in also.
"The insurance of shares is here;
n has come to stay" said Mr.. Cat
lett.
That homes carrying mortgages in
7
gage Insurance Corporation, createo
under title II of the national nous
ing act, will be required to meet
rigid standards of construction was
indicated by J. Howard Ardrey, oep-
uty administrator, F. H. A., In charge
of mutual mortgage insurance ana
national mortgage associations.
The popular belief that the ma
tional housing act promises per
cent mortgage money was exploded
bv Mr.. Ardrey. The basic rate re-
ouired for mortgages to obtain IN
surance is S per cent, but he pointed
out that the borrower must pay for
the insurance. The law also requires
that mortgages service the loans, ana
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