The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-04-04

Do1rdl. The house mas passed Dill
which will increase by two billion
eight hundred million dollars the
amount of funds available for loans
of this type by the Home Owners
Loan corporation. This sum was
approximately a billion dollars
more than the home loan board
thought was necessary, but the
sight or thought of so much money
started the members Of the house
on something like a riot, so they
made ample funds available.
From reports filtering through
to Washington, / think there can
be no question but what the home
loan system has been of help in
thousands of cases. Undoubtedly
availability of government money
in this matter has saved unrfum-
bered home owners from loss OF
their property where short-sighted
mortgage holders have insisted up
on undue curtailment or absolute
repayment of the borrowed money.
Extension of the system probably
has resulted also in reduction OF
general interest rates by private
lenders of capital. If they wanted
their money to work at all, they
had to meet the government COM
petition. Whether the principle of
government loans is sound in nor
NAL times is another horse. Time
alone can tell. The activity of
congress, especially in the house,
indicates that there is demand
of some kind or other for these
loans in preference to private cap
ital and that necessarily must be
considered as an influential factor.
AS the legislation increasing the
lending power of the Home Own
ers Loan corporation has progress
ed, however, I have taken occasion
to inquire into operations of the
corporation which is wholly gov
ernmen. owned. From all / can
learn it stands out as the finest IL
lustration of what politicians can
do in the way of building political
machines that i have seen in a
score of years in the National Cap
ital.
It will be remembered that upon
creation of the board former Rep
resentative "Seaboard Bill" Ste
phenson of South Carolina was
named chairman. Mr.. Stephenson,
being more honest about politics
than many others, announced un-
equivocally that appointments were
going to be made on a political
basis. He created quite a furore
and finally found himself side
tracked.
For time we here in Washing
ton have heard little about politics
in the, home loan system. It has
developed, however, that politics
was not dead, but sleeping.
Peculiar Doings?
The loan corporation in carrying
out the idea or policy of decentrali-
cation did some very peculiar
things, according to authenticated
reports. Actually, I am told, some
young men without previous prac-
tical experience or training were
supplied with copies of the home
loan act, given a ticket and or
dered to rhe hinterIand to open des.
ignated regional offices. Shortly
thereafter out of the thousands Of
employees in the home office OF
the loan corporation Individuals
were called into. the office of the
directing heads and were ordered
to go to one or the other of The
newly opened establishments. They
were told at the same time thai
their salaries would be reduced. Ii
addition, I am reliably informed
hundreds of them have suffered
further salary reductions since
they have been on their new jobs.
While all of this has been goins
on, the corporation set up board
! of four members in the headquart
ers before which remaining EN-