Evening star., 1934-07-25
H. OIL. c. TO CUT
BONDS INTEREST
Announcement Stirs Un-
usual interest in Washing
ton Financial Circles.
BY EDWARD C. STONE.

BY EDwARD G. STONE.
The Home Owners Loan Corp. an
nouncemenf that II Is planning 70
reduce interest on the bonds which
the corporation trades for mortgages,
from 10 ais per cent on August /
created unusual interest In the fnan-
cial district here today.
The rate on these Home Owners
Loan Corp bonds already has been
reduced from the original figure. A
stronger market has developed for the
bonds and prices have advanced sub
stantially. corporation officials OBJ
served.
These bonds are given by the Home
Owners Loan Corp. 10 lenders In ex-
change for mortgages which such
lenders hold on the homes of indi-
viduah In financial distress The op-
Grafton involves no sales Of bonds by
the Government, the announcement
states
Exchanges OF the old 4 per cent
bonds will be continued. Until Octo-
Der ~. 1884, these per cent bonds,
guaranteed only as TO interest may
be exchanged for new bonds paying
. per cent, but guaranteed both as to
principal and interest
It is announced that issue of bonds
70 mortgage holders in exchange for
their mortgages viii be suspended
from July ~ TO 81. after which, on
new loans. the bonds will carry the
new ga per cent rate. These bonds
become redeemable In 1899 and ma
ture In ie49.
In the financial district today 1t
was stated that all the banks in the
city have taken some OF these bonds
10 help customers They had ex-
pected to get per cent instead of
the new rate Of 2& per cent The
announcement caused considerable
surprise.
Acacia TO Spend sa,50O, 900.
The Acacia Mutual Life Insurance
Co. which has completed plans for
the construction of a monumental
new home office building facing the
Capitol Plaza, today announced the
location of quarters to be occupied
until completion of the new structure.
Executive Offices. including Offices
Of the president. treasurer. field de-
partment. legal department and mort
gage loan department, are located at
1887 X street northwest. Offices of
secretary, actuarial department, medi-
cal department and policyholders'
service department are at 1920 @
street northwest The District of
Columbia sales agency and the ad-
vertising department are located at
1924 Eye street northwest. Offices of
the cashier and premium accounting
Office are at ll8 E street northwest
Plans for the new home Office
building are progressing steadily. The
entire project calls for an investment
Of approximately $2,500,000. 1t will
be one OF the largest non-govern-
mental building projects ever carried
out in Washington. The building win
be constructed in a style to corre-
spond to the Senate Office Building,
on the other side of the Plaza.
The first unit Of this building, to
cost approximately 81 1000, 900, is ex-
pected to be ready for occupancy
within 20 months.
Billions Of dollars viii be saved to
the American investor as result of
the new bankruptcy law enacted in
the recent session Of Congress, ac-
cording to an article in the current
issue of Trust Companies Magazine
by Guy M. Walker, attorney, OF New
York City, one of the pioneers In
corporate reorganization work.
The new bankruptcy law is de-
scribed by Mr.. Walker as ''the most
scientific advance in the field of
business salvage in any country up
to date.
The old system meant enormous
profits to the buyers at forced sales"
Mr.. Walker says, and, of course, cor
respondingly large losses to the in
vestors and stockholders interested in
the property" Extension Of the juris-
diction of the Federal courts, Mr.
Walker believes. has ended the nui-
sance of ancillary receivers.
"The need for this law is proved"
he continued, "by the flood of appli-
cations filed under 1t within "a hours
after it was signed by the President"
That the expected upturn in Capital
business following return of the second
S per cent in Federal salaries is ma
terialiZing is noted by officials of the
keystone Automobile Club, who re-
port a substantial gain in member
ships among Government workers.
According to a bulletin issued today
by the club, an emphatic increase is
to be noted in membership among
employees in virtually every branch of
the Federal Government here. This
increase, it is held, is due largely to
the enhanced purchasing power now
exercised among Uncle Sans workers.
IF the gain in Keystone club mem
berships since the recent partial res
toration of Federal pay is gauge of
the general Improvement in business
to be felt here" the bulletin declares,
'then 1t is a certainty that the worst
definitely is over in so far as Wash
tngton's economic position is con-
cerned."
Capital Bonds in Demand.
Bonds were in good demand on the
Washington Stock Exchange today.
The largest sales were in Washington
Gas SIS, 1858, which moved at l0OA.
The opening sale was 81 900 Ana
costa g. Potomac r. r. guaranteed
SIS at par and ~ Potomac Electric
consolidated SIS came out at I05ss.
Anacostia & Potomac R. r. SIS changed
hands at 1919 The days only stock
sale was in Potomac Electric Power
5l4 per cent preferred at llS.
George o. VaSs, vice president and
cashier of the Riggs National Bank.
and president of the District Bankers
Association last year. has gone to
Atlantic City for his annual vacation
banking group is offering today
1851 900 az per cent Boston Metro
politan District bonds, due l9S5-l949
The bonds are priced 70 yield from
o.625 per cent for the 1885 maturity