rowers. Subtracting these latter acquisitions from the 1,017,821 total original borrowers, leaves 823,674, or 80.9 percent of original borrowers whose homes have been saved from impending foreclosure which they faced when the loans were made. Investments in Savings and Loan Associations In 1935 Congress authorized the Home Owners' Loan Corporation to purchase shares of savings and loan associations in order to make funds available to stimulate the local financing of home loans. The cumulative investment in savings and loan shares made by the Corporation totaled $223,856,710 by December 31, 1949. Of this investment, only $1,951,800 remained outstanding at the end of the 1949 calendar year, as compared with $5,882,650 at the beginning of the year. Dividends aggregating $44,731,877 have been received by the Corporation from these investments. Bond Retirements The Home Owners' Loan Act of 1933 requires that all payments upon principal of the Corporation's loans must be used to retire outstanding bonds. In order to retire bonds, the Corporation also uses certain other receipts such as amounts received as a result of the repurchase of shares in savings and loan associations. By the end of calendar 1949, the total applied to bond retirement was $3,328,029,792. The amounts deposited with the Treasurer of the United States and used or available to retire bonds are shown in the following table: Disposition of funds allocated (through Dec. 31, 1949) to bond retirement fund Applied to retirement of bonds... $3, 328, 029, 792. 23 Deposited for matured or called bonds on which interest has ceased. Available for future retirement of unmatured bonds____. 1, 855, 125. 00 63, 195. 85 Gross amount deposited in bond retirement fund... 3, 329, 948, 113. 08 Balance due retirement fund for December 1949 to be deposited in January 1950... 2, 301, 579. 32 Total applicable to bond retirement__ 3, 332, 249, 692. 40 As a result of bond retirements, the outstanding unmatured bonds of the Corporation on December 31, 1949, totaled $29,000,000, or 0.83 percent of the total amount of $3,489,453,550 of bonds which had been issued for value. (On January 27, 1950, final payment was made on upmatured bonds, thus completing the retirement of all HOLC bonds outstanding.) Financial Operations The balance sheet of the Corporation as of December 31, 1949, is presented in exhibit 9. Because of the rapid progress of the Corpo ration's liquidation during calendar 1949, the total assets decreased 36.1 percent during the year. Exhibit 10 presents a cumulative statement of income and expense from the beginning of operations through December 31, 1949, and exhibit 11 a statement of income and expense for calendar year 1949. Up to December 31, 1949, the Corporation had a cumulative net income of $347,531,025 before actual losses and provisions for future. losses. The total cumulative loss on the sale of properties amounted to $336,541,314. This loss includes brokers' commissions, selling costs, and the difference between the sale price and capital value of the property. The capital value includes unpaid principal, delinquent interest and subsequent capital charges for taxes, reconditioning, acquisition, etc. In addition to the $336,541,314 loss on property sales, there were other losses amounting to $1,426,354 from principal, interest and properties charged off, fire and other hazards, and fidelity and casualty losses. This makes the cumulative total of all losses $337,967,668 as of December 31, 1949. Deducting the $337,967,668 cumulative losses from the $347,531,025 net income, leaves $9,563,357 net profit as of December 31, 1949. Balances in reserves and provisions for future losses amounted to $772,057, leaving a surplus of $8,791,300 as of December 31, 1949. During calendar year 1949, the total income of the Corporation amounted to $14,785,925. Expenses, including interest on bonds. and administrative expense, amounted to $3,631,596, leaving a net income of $11,154,329. Losses during the year amounted to $60,925, leaving a net profit of $11,093,404. The $14,785,925 income for the year included $277,224 premium on the sale of loans. Administrative The personnel and administrative expense of the Corporation has been reduced rapidly in recent years. The number of employees on December 31, 1949, was 467 as compared with 473 one year before, and 21,000 at the peak of its operations. Its administrative expenses during calendar 1949 were $2,117,829 as compared with $2,395,209 during the preceding year, and $37,427,000 during its peak year. |