The associations, it may be added, are more and more realizing their responsibility, that the Federal land-bank system was designed by the Congress to be a permanent agency to function in good times and bad, and that, if it is to continue to serve in the manner intended, each unit must be maintained in a strong financial condition. Both the banks and the associations have observed in recent years the effects of loaning policies which resulted in difficulties and losses, and naturally in the conduct of their operations they are endeavoring to avoid the mistakes of the past. It is interesting to note in this connection the statistics showing the amount of farm mortgages held by 52 life-insurance companies holding 91.8 per cent of the admitted assets of all legal reserve companies, which were published in the Proceedings of the Twenty-fourth Annual Convention of the Association of Life Insurance Presidents (December 11 and 12, 1930). These statistics indicate that the farmmortgage loans of these companies declined from $1,982,548,000 on December 31, 1927, to $1,886,000,000 on December 31, 1930, or a decline of almost 5 per cent. On December 31, 1930, the outstanding loans of Federal land banks were approximately $32,500,000, or 2.8 per cent greater than on December 31, 1927. With respect to the volume of applications received and loans closed, it appears that in more than half of the districts there was a reversal in the trend during the last part of 1930. The total amount of applications received during the last three months of 1930, for example, was 37 per cent greater than the amount received in the corresponding period of 1929. This trend has been reflected also in the volume of loans closed. During the last three months of 1930, 3,230 loans were closed in an aggregate amount of $12,741,700 which compares with 2,966 loans in an amount of $10,420,700 closed during the last three months of 1929. The loans closed in December, 1930, were 46 per cent greater in total amount than those closed in December, 1929. It can not be stated at this time, of course, whether this is a temporary development or whether the upward trend in applications will be continued for some time. In any event the banks report that they have ample funds to take care of adequately secured loans which meet the requirements of the law. (5) A statement classifying the assets and liabilities of each Federal land bank separating real estate from personal property— Exhibit A, attached, consisting of a pamphlet published quarterly by the Federal Farm Loan Board, includes on pages 5 to 8, inclusive, statements classifying the assets and liabilities of each Federal land bank, as of December 31, 1930. The consolidated statement of the 12 banks appears on page 4. It will be noted that in the assets, real estate owned is segregated from other assets and that, in addition, there appears in many statements the item, "Sheriffs' ctfs., judgments, etc. (subj. to redemp.)." In many States title may not be acquired following foreclosure until the borrower has had a stated period in which to pay the amounts in default and redeem his property. lands held subject to redemption are indicated accordingly on the statements of condition attached. All (6) The total amount of delinquent installments in connection with outstanding loans of Federal land banks and the percentage of the total assets of the banks represented by such installments The statements of condition in Exhibit A likewise segregate the amount of delinquent installments in connection with outstanding loans of Federal land banks on December 31, 1930. As will be observed from the consolidated statement on page 4, the total amount of such installments on December 31, 1930, was $8,199,658.62, against which there were partial payments and reserves of $4,171,068.01, leaving a balance of $4,028,590.61 included in assets, which represented three-tenths of 1 per cent of the total assets reflected in the statements of the banks. (7) The total carrying value of real estate acquired outright and subject to redemption, by foreclosure and otherwise, on hand December 31, 1929, and December 31, 1930 This information is included in the following table: Real estate owned outright and subject to redemption held by Federal land banks, December 31, 1929 and 1930 [Compiled from reports to the Federal Farm Loan Board] (8) Total number and amount of sales of acquired real estate made by Federal land banks during the calendar years 1929 and 1930- This information is included in the following table: Sales of acquired real estate made by Federal land banks, 1929 and 1930 (net after cancellations) (9) The number of joint-stock land banks and their status, how many have been liquidated or discontinued, how many are in process of liquidation, and how many in operation; a statement classifying the assets and liabilities of the banks still in existence in a manner similar to that for Federal land banks The information requested is included in Exhibit A, attached. As will be noted at the bottom of page 10 of this exhibit, a total of 83 joint-stock land banks has been chartered under the Federal farm loan act. Of this number 48 are still in operation, 1 is in voluntary liquidation, and 3 are in receivership. Statements classifying the assets and liabilities of the banks still in existence, in a manner similar to that for Federal land banks, appear in this exhibit on pages 12 to 36, inclusive. Respectfully, A. W. MELLON, о PROPOSED MERGER OF ROOSEVELT STEAMSHIP CO. AND INTERNATIONAL MERCANTILE MARINE CO. LETTER FROM THE VICE CHAIRMAN OF THE UNITED STATES SHIPPING BOARD TRANSMITTING IN RESPONSE TO SENATE RESOLUTION NO. 431, INFORMATION RELATIVE TO THE MERGER OF THE ROOSEVELT STEAMSHIP CO. AND THE INTERNATIONAL MARINE CO. FEBRUARY 17 (calendar day, FEBRUARY 27), 1931.-Ordered to lie on the table and be printed Hon. EDWIN P. THAYER, UNITED STATES SHIPPING BOARD, Secretary of the Senate, Washington, D. C. SIR: In the matter of information requested of the Shipping Board by Senate Resolution 431, introduced by Mr. Fletcher, I have the honor to advise as follows: (1) What information the board has with respect to the merger of the Roosevelt Steamship Co. and the International Mercantile Marine Co. It has been stated to the board indirectly that representatives of the Roosevelt Steamship Co. and associates have purchased a working control of the stock of the International Mercantile Marine Co. (2) If the board has been consulted concerning this merger and what action or attitude the board took with respect thereto. The matter has never been formally presented to the board although there was some informal discussion of the subject with representatives of the corporation in July, 1930. (3) If the board permits any of its managing agents directly or indirectly to operate foreign flag lines or vessels in competition with lines established and operated or sold by the board. It is the recorded and established policy of the board to prevent such competition. (4) What action the board contemplates taking as a result of this merger. The investigations being made by the board have not developed to the point where that question can be definitely answered at this time. (5) Whether any loan has been made by the Shipping Board for the construction of any ship now operated by any foreign company, or whether any ship for the construction of which loans have been made has been sold to and is now operated by any foreign company. No. Very truly yours, E. C. PLUMMER, Vice Chairman. о |