Evening star., 1935-02-02
LOAN LAW CHANGE
SOUGHT IN STATES.
u. S. Housing Board Would
Speed Up Mortgage In
Surance Drive.
BY EDWARD C. STONE.

National banks approved by the
Federal Hot sing Administration as
mortgages under its mutual mortgage
insurance program have all the
necessary authority to proceed i'm
mediately with the making OF such
loans, restrictive State laws notwith-
standing. officials of the Housing
Administration reminded State direc-
tors of the organization this week.
It was also stated that national
banks may proceed Immediately to
make loans for residential conStruc-
ton maturing in six months or less.
with the assurance that such loans
will be classed as ordinary CONNER,
cial loans rediscountable at the
Federal Reserve Banks, provided the
administration has given a commit
ment to insure a mortgage on the
property when the residence is conf
pleted.
Because of the special efforts to
have legislatures amend State laws
governing mortgage loans to make
them conform to the provisions Of
the national housing act. Controller
j. F. T. O'Connor reports that many
preston that no bank can make
mortgage loans up to so per cent
OF the appraised value in the States
where such loans are restricted to a
smaller percentage. Special effolts
are now being made to change the
laws in "A States. AS stated, all ma
tional banks already have authority
to make such loans. All Washington
banks have been cooperating in these
loans for some time.
Special attention also is called to
another feature relating to State
institutions extending mortgage loans
insured by the Housing Administra-
ton. Mutual savings banks, build
ing and loan associations, insurance
companies and other institutions
which are members of the Federal
Loan Bank System may borrow on
insured mortgages up to 80 per cent
of their unpaid principal. In the
case of other home mortgages, the
institutions can borrow not more than
so to IS per cent of the unpaid
principal.
Brokers Laud Whitney Talk.
Washington brokers are enthusiastic
over the first of three radio talks to
be broadcast by Richard Whitney,
president of the New York Stock Ex-
change, in which he urged greater
utilization of the machinery Of proper
ly regulated and organized exchanges
as the medium of making investments.
Mr.. Whitney believes that for their
own protection, all citizens should
appreciate their responsibilities for the
maintenance of these institutions, as
he considers that stock and other ex-
changes basically constitute the back
ground for the financial stability of
the country.
He said that about 100000 in
vestors are direct owners of stocks and
bonds, aside from securities held by
institutions in which they are in
tereSted. Mr.. Whitney asserted that
the interest in securities and securities
exchanges is not limited to a small
group or privileged class, but is ma
tional and affects almost every family
In the country.
He assailed critics who overlook the
important functions of the exchanges
and refer to them as institutions re-
served for operations of spectators.
Assets and Surplus Mount.
The ninetieth annual statement Of
the Mutual Benefit Life Insurance Co.
of Newark, N. j. shows assets of
$570,437,727 and contingency and spe-
cial reserves, or surplus, of $30,269,-
528. During the year 1884 there was
an increase of S914,851 in total assets
and s717,98O in surplus.
Holdings of cash were increased
from S7,065,1S1 to $14,652,116 and of
Government bonds from $40, ,180, ,998 to
$28,679,661. Thus the total holdings
of cash and United States bonds have
increased from $17,246,1 179 to $43,331,-
778.
During the year the company re-
ceived from policy holders in premiums
S62,98l ,255 and paid to policy holders
or benedciaries $72, ,342 SOB. The total
receipts were $99,062,781 and exceeded
by $7,596,943 the total disbursements
of $91, ,465,838.
Pennsy Passengers Increase.
The preliminary report of the Penn
Sylvania Railroad for 1884 shows pas
senger revenues increased in that pc
r1od for the first time in about
decade. As with other roads, the
Pennsylvania's returns from passenger
traffic had declined steadily in recent
years.
vania rose S4,810, 900 to S57, 7,740,587 in
the year. While passenger receipts in
other regions showed some increases,
these in part resulted from reductions
OF fares and consequent heavier travel.
The gains by the Pennsylvania were
realized with basic fare Of 36 cents
a mile, unchanged from the postwar
period.
Freight revenue jumped $12 ,261 900
to $251, ,229,985, making the total
gross increase S18,952 900. Neverthe-
less, net operating income declined
slightly.
Cleaned in Financial District.
The Savings Bank of Baltimore
ranks nineteenth in size among the
100 largest mutual savings banks in
the United States, and the Eutaw
Savings Bank, also of Baltimore, stands
forty-flfth in the same list.
The Virginia Bankers Association
will hold its annual convention this
year at the Homestead Hotel, Hot
Springs, on June 20, 81 and %, ac-
cording to the secretary, C. w. Beer
bower Of the First National Exchange
Bank Of Roanoke.
The West Virginia Bankers Asso-
citation will again go to White Sulphur
Springs, where two-day session will
be held at the Greenbrier Hotel on
June and 8. Homer Gebhardt, vice
president First Huntington National
Bank. Is secretary of the association.