Evening star., 1935-03-01
H.0.L.C. MENACED
BY POLITICS AGAIN
Efficiency Threatened by
Pending Amendment
in Congress-,
BY DAVID LAWRENCE.

Politics-the cancer that is eating
into the worthwhile things in the
New Deal and rapidly bringing them
to- the level of the Old Deal-has
reared its SelfiShneSS once more in an
attempt to break down the efficiency
of the Home Owners Loan Corp.
Nothing could be more important
than integrity and honesty in the
management of a governmental agency
which refinances billions of dollars in
home mortgages and collects many
millions of dollars a month in Interest.
If politics gets the upper hand the
officials in charge wiils find them
selves pressed by local political bosses
to grant favors to their friends, either
in giving them preferential treatment
in the handling of their applications
for mortgage loans or in making
easier terms in collecting interest.
Amendment Pending.
But, unless public opinion says no.
there will be adopted by the Senate
and House very soon an amendment
which on its face looks innocent, but
which is a bold-faced attempt to put
the Home Owners Loan Corp. into
the hands of the politicians, notwith-
standing the courageous fight made
by Chairman John H. Fahey to con-
duct the affairs of his institution on
a business-hke basis
The amendment reads as follows:
'No person shall be appointed or
retained as an officer, employe. agent.
or attorney. in any regional or State
IF tho rnrrnro ti0p u-hn of
the date of the establishment of such
Office, not a resident of the region
or State served by such Office. The
amendatory provision shall go into
effect within 80 days after the date
of the enactment thereof"
On its face this appears as simple
effort to give the personnel in local
areas a chance at the jobs in the
regional and branch Offices. But the
facts are that 100 per cent of the
employees of the State Offices of the
H. 0. L. C. and about 80 per cent
of the employees of the regional Offices
including all executives and admin
istrative officers. are actually from
the States or regions where they now
are employed.
Aimed at Managers.
What, then. is the aim of the
amendment? The answer is that out
of IL regional managers, all but 2
are from areas other than those in
which they are serving. This was
deliberately done by the management
In order to eliminate all possibility
Of local influence or pressure and
nearly all of these regional managers
were appointed only after they hao
been trained in the Washington head
quarters of the H. o. L. c. Fol
obviously the H o. l.. c. in its effort
to decentralize and make decisions ir
the field had to depend on the advice
and recommendations of the regional
managers. There is too much at stake
to follow any other plan.
. So the amendment really Is aimed
ut the nine regional managers who
constitute the heart of the H. o. L. C.
Once they are in control of the
politicians, the rest of the personnel
will become political. too.
It has been suggested that the
H. o. L. c.. rather than lose the
services Of its nine trained regional
managers, would shift them around
so as to conform to the new require
iment. but this would seem to mean
q complete arrangement and pos
sible decentralization of the work OF
the Offices at time when every effort
is being made to accelerate action
on applications and to handle the
interest-collecting problem efficiently
H. o. L. c. Fortunate in Two.
In the two regions where the pres
ent managers come from the same
areas in which they operate, the H. O.
L. c. has been fortunate in getting
men of Independent means and great
ability. who are giving their time to
the public service.
The sitting of 10 per cent of the
,employes of the regional offices who
were not originally residents of the
regions where they now are employed
would mean considerable confusion
and probably the discharge of many
technically trained employees.
Senator Norris of Nebraska, inde-
pendent Republican, warned his fel-
low Senators when the Home Owners
Loan Corporation law was first before
Congress that it must not be made
the foot ball of the patronage hunters,
but his words were of little avail. Mr..
Norris has high ideals of government;
he believes in Government control
Of many activities, but he has been
consistent in arguing for a non-poli-
teal public service
The reason, however, why the gov
ernmental control idea usually falls
to the ground is that the politically
minded in Congress regard the new
officials and bureaus as their own par
tcular property and as the oppor-
tunity for the award of special privi-
kge.
Congress thus has another test Of
the virtue of the New Deal, and so
has President Roosevelt In the amend
ment pending now, which would de-
stroy the morale and the efficiency of
one of the few governmental agencies
that seems to have been run on a
ousinesslike basis, free from party
pohClcs. tcopyrieht 1e35J