Evening star., 1962-05-27

urged member associations to
warn the public of the develop
ing Maryland situations in
1860 when he completed his
year as league president.
/ The leagues cooperative ad-
vertiSing campaign to warn the
public evidently failed because
it was not forceful enough, he
said.
/ Federal legislation to increase
taxes of savings and loans and
to establish a Withholding Sys-
tenn for dividends created major
problems in the last year.
The Federal Home Loan Bank
Board also adopted regulations
which affected operations of
area associations, he added.
The permission granted to
pay dividends for the month
on payments received up to the
20th day of the month created
a major change.
1T solved no problems, but
merely created additional cost
of operation" Mr.. Kolb said.
The Federal Reserve Board
created still another problem
for savings and loans by per-
mitting banks to increase in
terest paid on time deposits, he
continued. This created fears
of rate competition and the
parade to higher savings and
loan dividends followed, he said.
Compete for Loans
Mr.. Kolb said banks and in
surance companies now have
more funds to invest in first
trust loans at a time when new
family formations have slowed.
This has increased competition
for prime loans and a drop in
interest rates for this type of
investment may be in the
offing, he declared.
Should mortgage money be-
come cheaper the earnings of
member associations would be
decreased and a reversal Of the
dividend rate trend might
come about rapidly, he said.
Despite problems, the 81
member associations of the
District League had 81 500, ,908.-
300 of assets on March 81, COM
pared with $1.355,712,000 on
May 81, 1861. just 10 months
earlier, he reported.
The league should expand its
present full-time staff to in
clude a qualified executive to
develop a sound public relations
program, he declared.
Alliance Proposed
The realtor and the real es-
tate fraternity need a closer
working alliance with the indi-
vidual savings and loan aSsoci-
ations if both are going to
grow and prosper. the savings
and loan association executives
we're told by George DeFran-
ceaux, president of the Wash
Iington Board Of Realtors.
Pointing out that associa-
tions sometimes are critical Of
a broker who fails to follow
procedures, Mr.. DeFranceaux
said this could be overcome by
educating the broker on asso-
citation operations and what to
expect.
IT think you should take
more time to cultivate individ-
ual brokers and tell them ex-
actly the type of loans that you
are interested in and even go
so far as to give him more or
less blanket commitment for
a certain group of loans during
a period of time, and make him
feel that you are working for
his benefit as well as your own.
with the Government get
ting bigger and entering into
many corners of business it has
heretofore avoided. it is i'm
portant that groups such as
yours and ours join together
in common interests to protect
our rights. for in numbers there
is strength"
Legislation Planned
legislation to broaden the
investment base for savings anc
: loan associations is being con-
sidered and may be ready fol
submission to Congress this
year. reported Joseph j. Viii
liams. jr.. member of the Fed
, eral Home Loan Bank Board
, who also addressed the fina
, session.
Commercial banks, saving
banks, and many State-char
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