FRIDAY, MARCH 29, 1935 UNITED STATES SENATE, BANKING AND CURRENCY, Washington, D. C. >committee met at 10:30 a. m., pursuant to adjournment lay, in room 301, Senate Office Building, Senator Robert J. residing. : Senators Bulkley (chairman of the subcommittee) and BULKLEY. Mr. Fahey, we will go ahead. Other members committee will probably come in a little later. NTS OF JOHN H. FAHEY, CHAIRMAN FEDERAL HOME BANK BOARD, WASHINGTON, D. C., AND PRESTON DEGENERAL MANAGER HOME OWNERS' LOAN CORPORAWASHINGTON, D. C. BULKLEY (chairman of the subcommittee). Mr. Fahey, proceed. HEY. Mr. Chairman, you wished us to make a tabulation of delinquent 6 months or more. I have that table, which we red to offer to be placed in the record of your hearings. I was your desire that this table follow the other tabulation encies already in the record. BULKLEY. We will have that put in the record at the ace. uch as Mr. Fahey was interrogated about the statement, it into the record at this place, and the tabulation will be also the proper place.) ers' Loan Corporation accounts delinquent 6 months and more as of Feb. 28, 1935 1г. FAHEY. No. Everything that is due I am quite sure is billed every region. Senator BULKLEY. So that these total billings would be the total ount that is due? Ir. FAHEY. That is right; on which bills are out and payments are and are past due 6 months or more. Senator STEIWER. Do you have information concerning the number loans involved in the amounts which make up the total of this ibit? IP. DELANO. We have that information, but it is highly undepende, in that in a large number of cases there are a few cents that show which are largely a matter of adjustment. Naturally it contains rge number of accounts. The dollar volume is the thing we have n depending upon. Senator STELWER. I do not want to quarrel with you about words, let me ask, You do not mean "undependable ", I take it, but that hout an explanation it might be misleading. Mr. DELANO. I think that would be more proper. Senator STEIWER. In the chart submitted you have the first column rked "Billings." Is that intended to disclose the amount that was as of February 28, 1935? Mr. DELANO. Yes, sir; the total amount billed as of that date, for Senator STEIWER. Have bills been sent out for the total amount due? enator STEIWER. So the terms are synonymous, I take it. Senator BULKLEY. I am a little puzzled by this statement. For ance, the Detroit billings are considerably higher than Cincini. The amount of the loans is no greater in that region, is it? Ir. DELANO. Yes. Detroit has the largest number of loans of region in the country. I think they have 108,000 accounts, or have, speaking approximately, quite recently. enator STEIWER. Are the amounts shown for the several regions stantially in proportion to the amounts loaned in those regions? Ir. FAHEY. Yes. Ir. DELANO. The amount billed is substantially the same; it ld have to be, of course, because everything that is due, as shown e on the table, for a region is billed. enator STEIWER. For instance, Boston has the smallest amount. fr. DELANO. It is the smallest region in the country. enator STEIWER. And I may conclude from that, I take it, if I Senator delinquen Mr. DEI Senator up the cha Mr. DE Senator the record Mr. FA of the que bers of th advisory names an the last m Senator Mr. FA on the oc unable to bank to a to be pres As I sa ington on I. Friedla ciation, H Building Kinnis, a Shawnee & Loan A of the B Calif.; M Loan Ass of the Sw executive League. The si represent business. Others Loan Ba Loan Ba Bank of Loan Ba w nothing else about it, that Boston has the smallest volume of iness of any region in the country? Loan Ba Ir. DELANO. Yes, sir. It has something like 32,000 accounts, and enator STEIWER. Now, does the column marked "% of Billings Home L These banks. Mr. C more or clear up ies? ANO. Yes, sir. STEIWER. On the basis which has been assumed in making: rt? ANO. Yes, sir. BULKLEY. All right. That tabulation will be placed in at the proper place. You may proceed, Mr. Fahey. HEY. Mr. Chairman, in connection with the consideration stion of the advisory council, it occurs to me that the meme committee might be interested in the make-up of that council. So I should now like to insert in the record the I connections of those members of the council who attended eeting here, on January 21 and 22, 1935, if it is agreeable. BULKLEY. Very well. HEY. I should like to explain in that connection that, if casion of a meeting of the advisory council any member is attend, usually somebody is designated from that particular ttend in the place of the member finding himself unable ent. 7, the last meeting of the advisory council was held in WashJanuary 21 and 22, 1935, there being present the following: nder, president of the Gibraltar Savings & Building Assoouston, Tex.; F. S. Cannon, president of the Railroad Men's & Savings Association, Indianapolis, Ind.; George Mcctive manager, Fidelity Building & Loan Association, Okla.; Frank S. McWilliams, president Fidelity Savings Association, Spokane, Wash.; Perry P. Tomkins, president erkeley Guarantee Building & Loan Association, Berkeley, Horton Bodfish, president of the First Federal Savings & ociation of Chicago and a member of the board of directors wedish Home Building & Loan Association of Chicago, and vice president of the United States Building and Loan members above named, it will be noted, are all directly ative of and interested in the building and loan association present were Bernard J. Rothwell, chairman Federal Home nk of Boston; George MacDonald, chairman Federal Home nk of Newark; Ivan Allen, chairman Federal Home Loan Winston-Salem; Harry S. Kissell, chairman Federal Home ak of Cincinnati; Henry G. Zander, chairman Federal Home nk of Chicago; and Charles B. Robbins, chairman Federal an Bank of Des Moines. latter six being all public-interest directors of the several hairman, there are several sections of the bills which are less routine but as to which nevertheless it is desirable to some matters, and I will ask Mr. Russell if it is agreeable 65-35-14 ATEMENT OF HORACE RUSSELL, GENERAL COUNSEL, FEDERAL Mr. RUSSELL. Mr. Chairman, the first one referred to is the secn dealing with the criminal provisions of the Home Owners' Loan t of 1933, and inserting several sections of the United States de, I mean in that section. I can give you in detail what is ended to be accomplished there, if you would like. Senator BULKLEY. All right. Mr. RUSSELL. The purpose is to make the section of the code ich makes it a Federal offense to bribe a Federal employee or cial, to apply in the same way in event a bribery takes place in aling with a Home Owners' Loan Corporation employee. And tions of that kind are dealt with there, which would put emyees of the Home Owners' Loan Corporation in the same posin as a Federal employee or a Federal official in reference to se criminal offenses, and give the United States courts therefore -isdiction in that kind of cases. The next section Senator STEIWER (interposing). In the absence of that legislation enses by officials of the Corporation would be dealt with under te law, I take it. Mr. RUSSELL. Yes, sir. In the absence of legislation of this kind Senator BULKLEY (chairman of the subcommittee). All right. а Ir. RUSSELL. The reasoning of the Board on the question is that home owner, as I understand it, is indebted we will say for tain amount of money, and the mortgagee holds a mortgage which probably no market value at all, and the exchange by the Corration to the home owner is of a bond which will be paid at maity, guaranteed by the United States, and to permit the mortgee to assume that the mortgage is worth 100 cents on the dollar the bond is only worth 95 cents on the dollar and to make the Senato agreeme Mr. R home ow is done position make the Senato agreeme Mr. R Senato amount away all Mr. R Senato Mr. R costs a n man ow close im ment I i me 100 tion of t Mr. R ship to would be Senato which is 19 of H acts on ship as provision applies f |