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Mr. STEVENSON. Senator, I will have to go back and say "unscrupulous handling." I think a great deal of it was caused by that, . I can submit a very concrete case, where a building was inflated from $1,200,000 cost to $3,500,000 bond issue, and sold to the public.

Senator TOWNSEND. Are your loans made principally on small homes?

Mr. STEVENSON. I do not make loans, Senator; only in my building and loan association, which is only in small homes.

We believe that the home buyers of the country generally have made good. It is really no fault of theirs that they are caught today in the short market in which they are caught. This condition has existed for some time. They were going along probably fairly well, investing their money in stocks, sailing along all right until this crash came along, which absolutely showed to us the great necessity of something of this kind. I do not mean by that that there has not always been a necessity for it. During all my business life I have been in the real-estate business, and I run just as good a realestate business as any man in the country. I have realized and know the need of just such legislation as this.

Senator WATSON. Is your real-estate business confined largely to home enterprises ?

Mr. STEVENSON. Yes, sir.

Senator WATSON. Or do you deal in apartment houses and busi- • ness buildings

Mr. STEVENSON. Not to any extent.
Senator WATSON. In farm lands?
Mr. STEVENSON. No farm lands.
Senator WATSON. You are fortunate.
Mr. STEVENSON. I own a farm, though, Senator.
Senator Watson. Then you are not so fortunate.
Mr. STEVENSON. The other fellow has the mortgage.

I want to say in conclusion here, gentlemen, that, generally speaking, we like this bill. Just as I told you before, we can all come in here and ask you to change this idea, or that plan, or the other.

Senator WATSON. Have you any amendment to propose to it!

Mr. STEVENSON. I have not an amendment in the world. The only amendment I have to offer, and the only suggestion I have to offer to you is, for God's sake give us quick action and let us save the fellow who is clear out here on a limb, who needs every ounce and every bit of help that it is possible for you to give him.

Senator Watson. I am a great believer in Providence, but I do not think He has much influence in the United States Senate, [Laughter.]

Mr. STEVENSON. I do not know. I think He will have. If you have observed a few of the fellows around home, out in your particular district, I think you will observe how badly this is needed. It is absolutely a necessity, and we sincerely hope that it will not be lost and held back.

I believe this bill to be good for the home owner, in home financing, and for the whole industry. We are perfectly satisfied with the way you Senators are handling it, but do not lose sight of the fact that we would like to have all the speed possible to get it through.

Senator TOWNSEND. You think it ought to be set up as a permanent organization?

Mr. STEVENSON. Most assuredly; yes, sir.
Senator TOWNSEND. And not as an emergency measure?
Mr. STEVENSON. No, sir; it should not be.
Would you like to have this statement [indicating] ?

Senator Watson. Yes. Leave it with the reporter and we will put it in the record.

(The statement referred to faces this page.) STATEMENT OF JOHN WARREN, DIRECTOR UNITED STATES

BUILDING & LOAN LEAGUE, JERSEY CITY, N. J.

Senator Watson. Will you please give us your name?
Mr. WARREN. John Warren.
Senator WATSON. Where do you live?
Mr. WARREN. Jersey City, N. J.
Senator WATSON. What is your business?
Mr. WARREN. I am a lawyer, sir.
Senator WATSON. Are you making foreclosures?
Mr. WARREN. Very few.
Senator WATSON. Whom do you represent?

Mr. WARREN. I am director of the United States Building and Loan League, representing the district of New Jersey. In New Jersey, we have 1,565 mutual building and loan associations. They have, roughly, $1,211,000,000 in assets.

Senator WATSON. What is the nature of those assets?

Mr. WARREN. As of December 31, a year ago, which is the latest printed commissioner's report, those assets are composed of $19,000, 000 of cash in bank, composed partly of our commercial accounts and partly what is known as a liquid investment fund which is set aside for the purpose of endeavoring to do social justice to needy shareholders by paying promptly withdrawals to shareholders upon demand; mortgage loans, with pledge of shares, $1,061,000,000. Those are sinking fund mortgages, repayable in the matured shares of the association which are pledged thereon.

Senator Watson. Then, how many matured shares have you!

Mr. WARREN. When they mature, the shares will cancel that. At that time Senator TOWNSEND. Do your companies take money on deposit!

Mr. WARREN. No, sir; not at all, sir. We are a strictly mutua! building and loan association, averaging rather small, although some of our associations have attained rather great size.

Senator TOWNSEND. Are your loans made principally on small homes?

Mr. WARREN. Principally, sir.
Senator TOWNSEND. What is the number of loans on homes?

Mr. WARREN. It is not classified in the commissioner's report, but I know the practice very well. As of a year ago, we had 280,508 borrowing members, and 919,669 nonborrowing members, or a total of 1,198,177 members of our association.

Senator WATSON. The nonborrowing member is the member who just pays in so much a month?

Mr. WARREN. That is right, sir--not entirely so. That includes some of the children. We have endeavored to inculcate thrift in children, and we have what is known as a juvenile share, which

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Mr. STEVENSON. Most assuredly; yes, sir.

.
Senator TOWNSEND. And not as an emergency measure?
Mr. STEVENSON. No, sir; it should not be.
Would you like to have this statement (indicating]?

Senator Watson. Yes. Leave it with the reporter and we will put it in the record.

(The statement referred to faces this page.)

STATEMENT OF JOHN WARREN, DIRECTOR UNITED STATES

BUILDING & LOAN LEAGUE, JERSEY CITY, N. J.

Senator WATSON. Will you please give us your name?
Mr. WARREN. John Warren.
Senator Watson. Where do you live?
Mr. WARREN. Jersey City, N. J.
Senator Watson. What is your business?
Mr. WARREN. I am a lawyer, sir.
Senator WATSON. Are you making foreclosures?
Mr. WARREN. Very few.
Senator WATSON. 'Whom do you represent?

Mr. WARREN. I am director of the United States Building and Loan League, representing the district of New Jersey. In New · Jersey, we have 1,565 mụtual building and loan associations. They have, roughly, $1,211,000,000 in assets.

Senator WATSON. What is the nature of those assets?

Mr. WARREN. As of December 31, a year ago, which is the latest printed commissioner's report, those assets are composed of $19,000, 000 of cash in bank, composed partly of our commercial accounts and partly what is known as a liquid investment fund which is set aside for the purpose of endeavoring to do social justice to needy shareholders by paying promptly withdrawals to shareholders upon demand; mortgage loans, with pledge of shares, $1,061,000,000. Those are sinking fund mortgages, repayable in the matured shares of the association which are pledged thereon.

Senator Watson. Then, how many matured shares have you?

Mr. WARREN. When they mature, the shares will cancel that. At that time

Senator TOWNSEND. Do your companies take money on deposit!

Mr. WARREN. No, sir; not at all, sir. We are a strictly mutua! building and loan association, averaging rather small, although some of our associations have attained rather great size.

Senator TOWNSEND. Are your loans made principally on small homes?

Mr. WARREN. Principally, sir.
Senator TOWNSEND. What is the number of loans on homes?

Mr. WARREN. It is not classified in the commissioner's report, but I know the practice very well. As of a year ago, we had 280,508 borrowing members, and 919,669 nonborrowing members, or a total of 1,198,177 members of our association.

Senator WATSON. The nonborrowing member is the member who just pays in so much a month?

Mr. WARREN. That is right, sir--not entirely so. That includes some of the children. We have endeavored to inculcate thrift in children, and we have what is known as a juvenile share, which

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Iowa:

Clinton.
Davenport
Des Moines.

Waterloo..
Kansas: Kansas City
Kentucky Louisville
Maryland: Baltimore.
Massachusetts:

Boston 10
Lynn.

Worcester.
Michigan:

Ann Arbor.
Detroit..
Flint 13
Grand Rapids.
Kalamazoo 14

Lansing.
Minnesota:

Minneapolis.
Missouri:

Kansas City.
St. Louis..

St. Louis County,
Montana: Great Falls
Nebraska:

Lincoln 15

Omaha 16
New Jersey:

Burlington Co.
Camden Co.
Newark 10

Paterson-
New Mexico: Albuquerque
New York:

Buffalo
New York City.

Manhattan
West Bronx.

Brooklyn
Syracuse.
Tonawanda.

Utica.
North Dakota: Bismarck.
Ohio:

Cleveland..
Columbus
Dayton.

Springfield.
Oklahoma: Bartlesville 1
Oregon:

Portland

Salem..
Pennsylvania:

Altoona
Chester
Lacka County.
Lancaster
Munroe County
Philadelphia
Pittsburgh
Reading 27

Scranton..
South Dakota: Sioux Falls.
Tennessee: Nashville 28
Texas: Fort Worth.
Utah: Salt Lake City.
Virginia: Richmond
Washington:

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Bellingham
Seattle

Spokane.
Wisconsin:

Kenosha 31
Madison 2
Milwaukee

Total..

30, 823 365, 518 116, 010 50, 242 57, 815 572, 577

25 53 101 133 620 55, 578 95 83 96 63 196, 834

164, 440 169

205 273

2,505 2, 209
29, 984 34, 424 71, 377 63, 649 21, 702,469 27, 464, 706

1 Estimate.
? 1930, 75 per cent; 1931, 50 per cent.
3 Trustees' deeds

Figures include farms. $ 90 per cent under

$10,000. Over a 4-year period there were 60 foreclosures, amounting to $200,000, 30 of which were hom mated.

7 Source: Chicago Economist, Sept. 5, 1931, p. 15. 8 Marion County.

City property. 10 Figures from Banker & Tradesman. 11 Circuit court commissioners' deeds. 1 Sheriffs' deeds. 13 Genesee County. 14 299 foreclosures for the 4 years. 15 386 foreclosures in 1930 and 9 months of 1931. 10 Douglas County.

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