Evening star., 1935-01-20
S5,1b,&3 R. F. c.
PROFITS REPORTED
Jones Asks Congress to Ex.
tend Repayment Period
to Aid Recovery.
BY the Associated Press.

BY the Associated Press.
A healthy financial condition with
net earnings of $26 6,002,917 in 1884
was reported yesterday by the Re-
construction Finance Corp. in in
formally asking Congress for author
ity to bolster the real estate mortgage
market and help railroads to reor-
ganiZe.
Jesse H. Jones, chairman, in max
ing the report. said that since its or
ganization in February. 1882. the cor
poration had made $65,l75,s63 in
profits.
The chairman recommended Con-
gress grant authority for the corpo-
ration to extend the time for repay
ments from to 10 years. so that, he
said. money which otherwise would be
paid to the Government might be
used to aid recovery.
The r. r. G. expires on January 81,
but the administration already has
planned its extension for two more
years.
Objectives Outlined.
with bank repair approximately
completed" the report said, 1.-The OBJ
jects which we believe still need es-
pecial assistance by the r. F. C. are:
II. A continuation Of commodity
loans through the Commodity Credit
Corp.
q. Nationwide assistance to real
estate mortgages.
"3. Assistance to railroads on a Sc
cured basis.
-. Industrial loans for moderni-
Zation and replacement of plant and
equipment. including in some in
stances composition of debts on a
basis that will enable the borrower to
continue operations"
Loans 81 Per Cent Paid.
The r. F. C. said 81 per cent Of all
loans made by 1t had been repaid,
including those to 9l4 banks which
closed after the crash.
I'VE think" Jones said, I'VE can
be of very real Nation wide assist
ance by helping to promote and re-
vive a market for real estate mort
cages not necessarily eligible through
the Farm Credit or Home Owners
lending agencies. and by cooperating
with these agencies and with the Fed
eral Housing Administration as we'll
as Public Works in construction prof.
ectS-an on sound basis.
"A very large part Of our popula-
ton has some direct or indirect inter-
est in real estate and anything that
can be done toward restoring a sound
loan value or market value for real
estate mortgages will be helpful to a
vast number of people.
I'VE are convinced that this can
be done without cost to the taxpayer
and with very little use of Govern
ment credit. 80
Rail Situation Studied.
I'VE have given a great deal ot
study to the railroad situation and
feel that there Is considerable that
this corporation can safely do in aid
of railroads generally without ulti-
mate loss to the Government. 1t Is
not our thought even to approach
railroad ownership, but with some
further loans and probably some lin
tied guarantees we can help very ma
terially in reorganization and conson-
dation."
For the first time the corporation
this year issued q financial table
showing its activities under the Hoo
yer and Roosevelt administrations.
1t showed that during the former
period loans totaling $2.l97;72l ,0e4
were authorized and s589,7l5,474 al
located to Government agencies and
for relief with disbursements of ST.
730,527 800 on loans and S296, ,537 900
to Government agencies and for re-
lief.
Since the Roosevelt administration
took charge the corporation has au-
thorized loans totaling s4,604, ,003 ,343
and disbursed s3,128.334.550 to bor-
rowers and allocated $l,573,273,0l7 to
Government agencies and relief and
diSblIrSed 81 500 STA AT