Evening star., 1935-10-24
REALTORS PLAN
BUILDING BOOM
Addresses by Gov. Hoffman
and Or. Frank Mark
Convention.
BY JAMES Y. NEWTON,
Staf1 Correspondent OF The Star


ATLANTIC CITY, N. j.. October "a.
Addresses by Gov. Harold G. Hoff-
man of New Jersey and Glenn Frank,
president of the University Of Wis
consin, marked today's sessions Of the
convention Of the National Associa-
ton of Real Estate Boards being held
here this week.
Interest in Gov. Hoffmans talk on
taxation" was heightened because he
has been mentioned as Republican
presidential timber and has called the
New Jersey Legislature into special
session Friday for action on the State
sales tax. DR.. Frank spoke on. The
Right to Own Property"
Groundwork for a stable and uni
form real estate business to meet the
conditions Of building boom
throughout the country, felt by the
majority Of business men here to be
imminent, occupied most Of the at
tention Of the delegates.
The issuing and offering Of mort
gage securities in the future comes
under the Securities and Exchange
Commission which has power to regu-
late transactions of brokers and deal
ers in over-the-counter activities.
Since most Of the mortgage securities
are too small for listing on the Stock
Exchange, it will be necessary to
regulate the brokers in the business.
The new National Mortgage Board
established early in the Summer by
the association is holding is first ses-
sion here, and is formulating plans
for cooperation with the S. z. c. in
protecting the investing public in the
anticipated great construction revival
H. A. Officials to Speak.
In addition of Gov Hoffman and
DR.. Frank, other speakers before to-
days main convention and meetings
Of the various groups affiliated with
the association were: J. Howard
Ardrey of Washington, assistant ad-
ministrator of the Federal Housing
Administration; William Homer
Spencer dean Of the School of Bus-
ness, University Of Chicago; Frank
Watson, administrative director of
Purdue University housing research
project, and formerly chief of counsel
for F. H. A. in Washington; Hugh
Potter of Houston, Tex. former presi-
dent Of the association. and Philip
Kniskern, Philadelphia, formerly chief
appraiser of H. o. L. C. in Washington.
The F. H. A. method of home
financing found staunch supporter
in John L. Weaver. prominent WASH
lngton realtor, yesterday when most
of the New Deals housing policies
drew strong criticism from realtor
delegates. Weaver, during a session
of the National Mortgage Board.
characterized F. H A. mortgage in
surance as the finest thing that ever
happened to our business" Weaver
declared the 'old three and fve-year
mortgage is gone forever and the long
term mortgage has come to stay"
The number of Washington realtors
and Government housing officials here
had increased today to more than so.
Many of the Government officials
were on hand to speak before the
various sessions of the convention
while others came as observers. The
district delegation took active part
in the reception given President
Walter S. Schmidt of Cincinnati last
night. The convention sessions will
end with election of officers late to.
morrow.
Mortgages Held Safe.
Mortgage loans have proved during
the depression to be safe investments
for bank funds, Hugh L. Clary, Cali
fornia banker, said today, and such
loans must be made in accordance with
community needs if banks are to JUS
tify their existence. He pointed out
that, contrary to general belief, mort
cages did not depreciate so much in
the depression as other investment
holdings of banks.
David Saperstein of Washington, d.
rector of the Trading and Exchange
Division OF the S. e c., and Niles I.
Colean, F. H. A. official, made featured
addresses yesterday. Saperstein de-
clared the second mortgage on resi-
Dental property will become obsolete.
and that security bearing a higher
interest rate than AS per cent will be
regarded as extortionate. Speaking on
the real estate bond issues of the iu-
ture, Saperstein declared that in no
investment field has the investor been
more completely betrayed. Out Of
sl0,000,000,000 of real estate bonds
outstanding, $1,000 o0O,o 900 are in de-
fault. he said. and 10000, 900 persons
were affected.