Evening star., 1941-08-08
Fahey Declares Vote
On Home Loan Shift
Was Unanimous
Rumors Of Split on
Moving to New York
Spiked by Choirman

Chairman John H. Fahey OF the
Federal Home Loan Bank Board
declared that contrary to rumors,"
there was no split in votes of the
board on removal of headquarters 10
New York City. The four members
in the city at the time voted unani-
mously on the question and on i'm
plementing resolutions, Mr.. Fahey
said.
Earlier, Acting Attorney General
Biddle gave an opinion enabling the
Federal Savings and Loan Insurance
Corp. to participate in the shift.
Mr.. Biddle said that sgencys plan
to maintain an Office here for the
chairman of its board of trustees
would meet requirement of the
National Housing Act that "the
principal Office of the corporation
shall be in the District of Colum-
bia"
He explained that a corporation
need not conduct all, or even a prin-
clpal part, Of its business at the
place designated as its principal
Office"
Fahey's Statement.
Text of Mr.. Fahey's statement
follows:
Certain misleading reports, con-
cernlng the removal Of much of the
Federal Home Loan Bank Board
work from Washington, call for a
statement of the recorded facts.
Contrary to rumors circulated, ths
votes of the four board members
who were in the city, authorizing
the lease of space in New York. were
unanimous. All four members of
the board also voted alike on neces-
sary resolution providing for the re-
moval of our three agencies. The
statement TO the press on August 5,
announcing that members of the
board as well as other executives
and employees should make the move,
was also approved by the four mem
bers of the board who were present
without single negative suggestion.
1T is true that when removal from
Washington was first discussed. the
members of the board, in common
with most of our employees, expressed
their preferences for remaining in
Washington. 1t was agreed, how
ever, that if we were to move the
board could not discriminate in its
own favor by insisting that its men,
bers and certain well-paid executives
should continue to live in Washing
ton while hundreds of employees OF
moderate incomes were being asked
to move at considerable discomfort
and in some cases at material sacri-
flee. The statement which has also
been made that so per cent of our
employees are declining to consider
moving, is also without foundation.
We do not know how many of our
people cannot go. Replies to the
QUESTIONABLE we submitted last
Tuesday have not yet been returned.
Small Group to Stay.
"As has been announced. the
BOARD will continue to have in WASH
ington small organization of ample
size to take care of all work which
must be done here and maintain all
necessary contacts.
1T is, of course, true that moving
from Washington will involve some
inconvenience, not only to board
members but other employees. and 1t
will mean some extra work for our
executives, but when the transfer
is effected, there will be no inter-
ference with the efficiency of our
operation. 1t is my opinion that
every Government department and
agency in Washington that can in
this emergency possibly make room
available for defense units which
must be here, should do so as quickly
as possible and forget personal in
convenience. An especially favored
section of the civil population in
the present emergency should in
the common interest respond as
readily to the wishes of the Com
mander in Chief as do the armed
forces"