Evening Star Newspaper, May 3, 1937, Page 7

§30,161,000 SAVING FORECAST INBILLS Byrd Preparing Two Based | on Reports of Brook- ings Institution. BY WILL P. KENNEDY. Two bills are being prepared by Benator Byrd of Virginia, chairman of the Senate Reorganization Com- mittee and member of the Joint Com- mittee on Government Reorganization, which might effect a saving of $30,- 161,000 annually, according to reports made to Byrd by special examiners | for the Brookings Institution. Rxaminers These | into various financial agencies of the Government and made their independent studies, The bills are to be filed in the Sen- ate early this week. One provides for merger of the Home Owners Loan Corp. and the Federal Housing Ad- ministration, with an estimated an- nual saving of $24,500,000. This sav- ing is the independent estimate of the Brookings Institution specialists and not that of Senator Byrd. The second bill concerns the Re- construction Finance Corp poses (1) that capital notes and debentures of banks which are held, to be sold to the Fed- eral Deposit Insurance Corp. and fu- ture purchase of stock be made by that agency; (2) that if the corpora- tion is to discontinue lending, as pro- vided by existing law, it be liquidated and its assets (other than preferred stock and capital debentures of banks) be transferred to other agen- | Cies (mostly to the Treasury for col- lection through the reserve banks), and (3) that if it is to continue lend- ing it make loans as fiscal agent of the Treasury and the resulting assets be collected chiefly through the reserve banks. Savings Vary With Plan. It the lending activity terminates, the anticipated annual saving is $5,000,000, while if the lending activ- ity is continued, but preferred stock transferred to the F. D. 1. C, the saving would be about $400,000. Senator Byrd explains that, accord- fng to the estimates prepared for him by agents of the Brookings In- stitution, if the H. O. L. C. is liqui- dated and the loans sold, ticipated annual saving would be $25,161,209, and if consolidated with the F. H. the saving annually is expected to be have gone own $4,597,078. Then the saving on both | bills might reach a maximum of $30,- 161,029 annually, or a minimum of $4.997,078 These figures emphasize, according to Byrd, how widely. estimates of sav- ings vary, dependent on what course Congress decides. The Senator's chief desire at this time is to show that very important economies can be ef- fected immediately by prompt action of Congress on a progressive program of specific reorganization proposals. The maximum or minimum of sav- ings 1s determined only by what ac- | tion Congress may take. The estimated savings by merging the liquidating H. O. L. C. with the F. H. A. is figured as follows: Additional costs to the F. H A: For property management, $3,500,000; for reconditioning and appraisal, $2,- 500,000; for accounting, $500,000, and for legal work, $1,000,000, making a total of $7,500,000. The budget director’s allowance for expenses of the H. O. L. C. for 1938 | is $32,000,000, and the Brookings In- stitution experts figure it would con- tinue about that figure for the next five years, since the amounts to be collected annually would not be re- duced except by foreclosure of bad loans and refinancing of good loans through other agencies. So they fig- ure the net saving from liquidation of ' | pared with $11,945308 estimated for It pro- | preferred stock and | through other agencies, | the an- | of interest it collects on good loans | and the rate it pays on outstanding bonds. Amounts Hard to Figure, In discussing the Reconstruction Finance Corp., Senator Byrd argues that if it stops lending there will naturally be some reduction in oper- ating expenses, even if it is kept alive to make the collections, but it is impossible to figure the amount. | budget for 1938 has been drawn up on | the assumption that lending activity is to continue on a substantial scale. So it is difficult to figure savings that ' might be effected by transfer of col- lection activities to other agencies if the corporation continues lending ac- tivities. The budget submitted to Congress for 1938 includes $6,334,982 for salaries, | and $3,165,018 for other operating ex- | penses—a total of $9,500,000, com- &(he fiscal year 1937 and $12,698,157 | actually expended for the fiscal year | 1936. | The figures for 1938 include $1,800,- | 000 for custodian services performed | by Federal Reserve Banks, which would | | not be affected by Senator Byrd's pro- posed change. Other items, aside from salary, would not be changed greatly, though there would be some saving in costs of communication between the | corporation and other agencies and in | | interagency accounting. Collections Cost $1,000,000. | The cost to the Federal Reserve | Banks of making collections which would be assigned to them under the Byrd reorganization recommendation, in addition to the $1,800,000 allowed for custodian service, is roughly esti- | mated at a million dollars. Added costs to other agencies would be negligible. Senator Byrd is advised by the Brookings Institution experts that a saving of about $5,000,000 per annum | | would thus be made from the liquida- | C. and disposal of | | | tion of the R. F. | its assets. Senator Byrd has not finally de- | | cided whether to insist on his recom- | | mendation for separating the R. F. C.s | | collection work from its lending work | until lending drops to a lower level— | except for the transfer of the pre- ferred stock to the Federal Deposit Insurance Corp. His attention has been called to the fact that on June 30, 1936, the R. F. C. reported 34 persons in the bank rela- | tions section of the Examining Divi- sion with average salaries of $5,000 each. This is in the Washington office alone and does not include sec- retarial help, nor the legal and ac- counting services performed by the division The administration of the preferred stock by the F. D. I C. would involve practically no added expense to that anization except for accounting, ce it already has all the information it needs, except for a few uninsured | banks that have sold preferred stock | A. and the loans not sold, | the H. O. L. C. at $24,500,000 per | annum. The costs should drop, it is ex- plained, after the rush of foreclosures is over and the properties are sold. In the event of a new depression, then & new crop of foreclosures is to be ex- pected. In addition to that $24,500,000 direct saving, further savings are calculated from consolidation of the general overhead cost and promotional ac- tivities of the F. H. A. with those of the Federal Home Loan Bank Board, as follows: For administrator’s office, $115,874; for publicity, $100,000; for research and statistics, $100,000, and for education, $345,335—making a to- tal of $661,209. This added to the $24,500,000 gives the sum of $25,- 161,209 mentioned above. Senator Byrd calls attention that | this possible saving is in administra- | tive costs, and not in the net budge- | tary saving, because the budget costs of the H. O. L. C. are offset in large part by the margin between the rate | DIVIDENDS have kept the stock mar- ket soaring - but without doubt the biggest extra value in the hotel field will be found in the Hotel New Yorker, which by sheer value rendered has become the most popular and successful hotel in Manhattan. NIW YORKER FEATURES 43 floors of comfort - 2500 rooms, radio, tub and shower, Servidor, circulating ice water. Four popu- lar priced restaurants. Tunnel to Penn Station. Rates from $3.00. Washington reservation office: 986 National Press ~Building, Telephone Metropolitan 3$717. HOTEL NEW YORKER 34th STREET at 8th'AVE. !! New York, N. Y. IALP}‘l HITZ, President Own the best— it costs no more. New G-E prices start at The Only Refrigerator with oiL that assures Enduring Zheilis THE EVENING STAR, to the R. C. The F.D. L C. already has to make, in an advisory capacity, practically all the decisions which it | would have to make in an administra- tive capacity if it owned the stock. Economy (Continued From First Page.) 1936 State and local units put up $1,245,000,000 for relief, and that they | will spend more this year. Speaker Bankhead, however, does not believe there will be any definite developments until the President re- turns from his fishing trip and has| an opportunity to consult with con- gressional leaders. “I am sure,” said the Speaker, if conditions during the fiscal year require {t. “While there is considerable sup- port for some form of percentage cut, there also is a growing belief that the Appropriation Committees of Congress should resurvey the supply bills and decide where savings can ke made, instead of ordering a blanket reduction in all except fixed charges.” Senator Borah, Republican, of Idaho, who stated a week ago that ! he had never found the horizontal percentage method of cutting satis- | factory, either in appropriation or tariff matters, added yesterday that | such cutting might injure desirable propositions. He also declared such reductions usually are not in effect long before they are modified. Senator King, Democrat, of Utah, urged keeping expenses within cur- WASHINGTON, D. C, MONDAY, MAY 1937 Mountain of Glass Is Started To Solve Old Bottle Problem By the Associated Press. SALT LAKE CITY, May 3—A mountain of glass—a final resting place for old bottles—was started by club- women today. Twenty acres of land set aside by | 3 | posed of old razor blades, wes over- | ruled. municipal authorities as ‘“mountain territory” were dedicated yesterday as the spot upon which a glittering crystal tower is to rise. Members of the Wasatch L)L(‘rary‘ Club, sponsors of the project, shat-‘ Mrs. tered the first bottles. Said Mrs. Hal Powers, chairman of the club’s Civic Improvement Com- Powers, will be landscaped with flow- ers and shrubs and encircling drive- way from which additional glass may be tossed. A suggestion that & small space be reserved for a steel mountain, com- Mint Director on Coast. SAN FRANCISCO, May 3 (P)— the United States mints, was here to- | day preparatory to helping dedicate Nellie Tayloe Ross, director of | Historic Hotel Burned. PLACERVILLE, Calif. (#).—The St. Francis Hotel, one of the few land- marks linking this town to the old gold H rush day when it was called Hangtown | because of its many lynchings, now lies in ashes. Police blamed a drunken roisterer, celebrating according to the code of '49. i, 15 PAINTS Use Cabot's Non-Fading Green for Your Blinds and Trim Work | 922 N. Y. Ave. National 8610 There’s good reason for its goodness— “the President will congressional which w ecnncmie‘ be glad leaders and work out | some method satisfactory to all by can achieve the necessary see | Yent revenues. He indicated that out | While he is not enthusiastic over| | either the impounding or horizontal | | cutting method, he thought the latter | | method preferable. to mittee: | “It would be a good thing if all cities started building glass moun~ tains | the new San Francisco Mint May 15. THIS fine old ginger ale has a uniform flavor of delicate blend that has made “This applies also to the various pro- | posals that are pending for some per- centage cut in the totals of all the| regular annual appropriation bills. There will be plenty of time for ad- ministration conferences on phase of the economy drive, since both houses plan to wait until all the bills have passed before taking up either the mandatory 10 per cent cut, or the discretionary impounding of 15 per cent, with presidential au- thority to release part of the money FIRSTMANBEARDLESS! Von Helmont—scholar—claimed that Adam was naturally beardless. Don't envy Adam! 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USE STAR RADIO’S EASY PAYMENT PLAN No Cash Down UP T0 3 YEARS TO PAY VISIT YOUR NEAREST STAR RADIO STORE OR PHONE DISTRICT 4700 SERVING WASHINGTON SINCE 1924 109 1ith St W 1350 FSe. N0 W, 3022 11th St N, W, “There's so much broken glass around these days, and it's such a menance. “Glass fragments, piled upon each other, catch the sun so beautifully and | under | shine lights and glow wonderfully at night I consider ‘glass | mountains’ an ideal solution to the old bottle problem.” Utah’s first glass Alp, said Mr: it ““~ps” for over fifty years. Serve it | “His axm s Choice”" DOG and CAT FOOD., and feel satisfied. Cli PALE DRY icquot Club COLDEN GINGER ALE 1In full, 16.0unce pints, and full, 32-ounce quarts Introducing... Another D.G.S. Quality Product U. S. No. 1 GRADE D.G.S. Smoked Sausage 25 Try them and you’ll agree that their taste and flavor is distinctive. SPECIAL INTRODUCTORY SALE PRICE. A Breakfast Treat! Huthy ROYAL PORK . 35¢ U.S. Gov't Graded & Dated SUNSHADE EGGS doz. 33¢ U. S. Standards, d Large Retail irade B SHOULDER LAMB ROAST _ ! BREAST OF LAMB D.G.S. U.S. No. 1 Grade SLICED BACON Dee Gee Strictly Fresh SELECTED EGGS_ Sunshade ROLL BUTTER BDEGSS. CREAMERY BUTTER Fresh Vegetables for the Baby! 2 bunches 9c 2 bunches 9C Nutritious FRESH CARROTS Fresh HOME-GROWN RHUBARB____ Grit-Free FRESH SPINACH Large Size Juicy FLORIDA ORANGES Juicy FLORIDA GRAPEFRUIT Ib. KELLOGG'S Corn Flakes 3 » 20° 4:-19° SIX FRUIT FLAVORS JELL-O 23 Another WEDNESDAY SURPRISE SPECIAL At your nearest District Grocery Be sure to ask for it. 39¢ Store. 37¢ Gerber’s Strained BABY FOODS 325 W ]4C Cream of WHEAT. White House APPLE SAUCE Kremel DESSERTS_ This week is set aside as NATIONAL BABY WEEK ond D. G. S. Stores are these baby foods at low prices. featuring Ige. TkE. 25¢ «: 10¢ 2 pkgs. 9C BEGES. Evaporated Milk 20 tall cans Borden’s Silver Cow CROSSE & BLACKWELL'S PURE TomatoKetchup FREE! 14 0z. bot. Packed in Each Package of SWANSDOW CAKE FLOUR . 'D. G. S. PURE GRAPE JELLY LANG'S FRESH Cucumber Pickles 5 BENNETT'S Mayonnaise These Prices Effective in Washington and Vicinity Until Close of Reg. 37c value for only Ib. jar C pt. jar 8 oz. jar 17° 10c¢ can of BAKER’S COCONUT 5c 15 10 23 EVAPORATED MILK Pet or Carnation EVAPORATED MILK. Old Virginia SPINACH Sun-Maid RAISINS_ 2 1b. pkg. Sunsweet Treesweet Pure Karo APPLE BUTTER GEARP'S BABY FOODS 3-25 Libby’s or Del Monte National Biscuit Co. ZVVEIBAGKE =222 SUNSWEET “Tenderized’’ Prunes PRUNE JUICE ORANGE JUICE-- SYRUP (Blue Label) Libby's Homogenized BABY FOODS 3 - 25° Business Tuesday, May 4th, 1937 3.8 22¢ 3 22c tall cans 8 oz. cans 15¢ pke. ]7¢ 2 okes. 2] ¢ 21 % 19¢ 23¢ 15¢ 12 or. cans No. 114 can