ARE NOW IN A POSITION
TO FILL YOUR WANTS IN
i • •
MEN’S
WOMEN’S
AND CHILDREN’S
WEARING APPAREL
r
WE ARE CARRYING ALL OF
THE ADVERTISED BRANDS WE
HANDLED BEFORE THE FIRE.
BON MARCHE
STORES
LINCOLN HOTEL
JACK DEVINE, PROP.
“THE HOME OF THE SOURDOUGH”
ROOMS BY THE DAY OR MONTH
j V
SQUIBBS ADEX TABLETS
COD LIVER AND HALIBUT LIVER OILS
CONCENTRATED PLEASANT TO TAKE
A VALUABLE MEDICINE
THE LARGE BOTTLE, $1.00
NOME DRUG STORE
Distributors E. R. Squibb & Sons
Manufacturing Chemists
ALASKA LIQUOR STORE
DOMESTIC AND IMPORTED LIQUORS
AND WINES
Also Pre-War Hill & Hill And Old Taylor
Golden Glow & Happy Beer
HOLIDAY TABLE WINE Telephone Main 15
JOHN LEPRI, Prop. DAN ALVICH, Mgr.
NOME MACHINE SHOP
. W. L. SLACK AND SON, PROPRIETORS
Our Aim—Satisfied Customers
BOILER, MARINE, TRACTOR, ACETLYNE AND
ELECTRIC WELDING
MATERIAL STOCKED: SHAFTING, STEEL, BRONZE,
BUSHING, BABBITT, ACCESSORIES.
Prompt Attention to Local and Out of Town Work
FINN ALLEY CAFE
CARDROOM
v BEER
Lunches and Dinners
NOME, ALASKA.
Northern Light & Power Co.
AND
Alaska Telephone & Telegraph Co.
Second Avenue and Lane’s Way
LIGHT, POWER AND ELECTRICAL SUPPLIES
LOCAL AND LONG DISTANCE TELEPHONE SERVICE
SECOND PHASE FHA
ALASKA PROGRAM
IS NOW AVAILABLE
JUNEAU, Alaska —Preparations
are now going forward to make av
ailable throughout Alaska at an
early date the benefits of the second
phase of the Federal Housing Ad
ministration’s program. This became
known , recently when information
regarding regulations pertaining to
Title II of the National Housing Act
was made public by John E. Pegues,
Territorial Director.
“Very briefly stated”, said Mr. Pe
gues, “The purpose of Title II is pri
marily to make it possible for the
person of average means to const
ruct his own home and to pay for it
on what is substantially like a rent
al basis, and to refinance existing
debts on homes already constructed.
This title establishes a system of mu
tual mortgage insurance. It will en
courage leaders of private capital to;
invest in home mortgages and its
effect will be to promote an early
| resumption of construction activity.
“Keystone of the plan is the mu
tual mortgage insurance system. This
system is comparable in many re
: spects to life insurance. It envisions
the payment of dividends to mort
gagors, so that mortgage obligations
may be satisfied in advance of their
jdue dates.”
“This title seeks to and will, we
'are confident, cure fundamental ills
j now existing in the real estate field”, j
1 Mr. Pegues added. “A leading ob
jective is the stabilization of real
| estate prices, so far as that is pos
| sible, at fair and reasonable values.
| In other words, the National Hous
! ing Act will do much to prevent
! prices soaring too high in boom per
iods and-to prevent them from fall
ing too far in times of depression.”
The following illustration of how
the plan will work with reference to
new construction was given by Mr.
Pegues:
A person desiring to construct a
new home and having cash or a lot
| representing 20 percent of what he
i estimates the appraised value of the
j completed property will be, may ap
I ply to a bank which has been quali
jfied as a mortgagee for a construc
| tion loan. The bank will investigate
, the applicant’s financial standing and
(building plans. If they are found
satisfactory, and the bank believes
the loan will be a good one, it in
turn applies to the Federal Housing
Administration for insurance on the
contemplated mortgage.
The Federal Housing Administra
tion will make a careful review of
all the facts which were first fipn
sidered by the bank, and will also
make additional surveys. If the Ad
ministration is convinced that the
proposition is a feasible one, it will
undertake to insure the mortgage,
thus enabling the bank to release the
construction funds.
“The plan is not new”, Mr. Peg
ues explained. “It has been tried
with splendid success over long per
iods in other countries, notably in
South America, as well as by some of
the European nations.”
Ihe1 following pertinent points
were cited:
1. Loans can be made only by
qualified mortgagees. They must,
among other things, be chartered in-!
sti tut ions having succession; be lo- j
cated in urban communities having
trading areas embracing a contigu
ous population of not less than 6,000
and have combined unimpaired cap
ital and surplus of not less than
$100,000, of which at least $50,000
is unimpaired capital.
2. The original principal * obliga-1
tion of a mortgage may not exceed’
$16,000 nor 80 percent of the apprais
ed value of the property as deter
mined by an appraisal of the Feder
al Housing Administration.
3. The mortgage may have a term!
not to exceed 20 years.
4. The mortgage, is to be retired j
by monthly payments.
5. The basic interest rate for new!
construction is 5 percent. The max- j
imum basic interest rate for refin-j
ancing operations is 51/, percent. To'
those rates there may be added inj
certain classifications, a service char
ge of one-half of one percent. In- ’
surance premiums range from one
half of one percent to one percent
Of course, the premium charge must
‘be regarded as contingent amortiza
tion as well as a charge for insur
ance.
6. The mortgage must contain am
ortization provisions satisfactory to
the Administration ,
7. Insurance will be granted on
mortgages covering one, two, three,
or four family dwellings. Not more
than 25 percent of the space may be
devoted to business purposes.
8. Mortgages will be insured With
respect to the following:
(a) Property constructed before
June 27, 1934 wherein the mortgage
. —-- --m-' .
SPEED COMFORT DEPENDABILITY 1
FLY WITH THE MAIL
PACIFIC ALASKA
AIRWAYS INC
OPERATING
BI-WEEKLY MAIL TRIPS BEWEEN FAIR
BANKS AND NOME—LEAVING NOME 8 A M.
TUESDAYS & FRIDAYS.
RADIO EQUIPPED PLANES
Office 1st Ave. and Stednian
~ NOME, ALASKA.
is the vendor* actual or beneficial.
(b) Property constructed be-!
fore June 27, 1934, wherein the
mortgagee is not the vendor, either
actual or beneficial.
(c) Acquisition and or construe
tion of, and or refunding of tempor
ary mortgage indebtedness against,
property constructed after June 27, ,
1934. This is the section which will
be of especial interest to those de
siring to build new homes. The
basic interest rate for this type of
mortgage will be 5 per cent plus
a possible service charge of one-half
of one per cent, plus an insurance
premium of one-half of one per cent
making the total charge 6 per cent.
(d) Refunding of mortgage in
debtedness (wherein the mortgagee
is unchanged) against property con
structed before June 27, 1934.
(e) Refunding of mortgage in
debtedness (wherein the mortgagee
is changed) against property con
structed before June 27, 1934.
(f) Creation of mortgage in
debtedness (wherein neither acqui
sition, construction, nor refunding
are involved) against property con
structed before June 27, 1934.
“Government funds are not to be
used for construction purposes,” Mr
Pegues emphasized. "That would
be opposed to one of the fundamen
tal ideas underlying the National
; Housing Act, which is intended to
make it possible—and is making, it
possible—for private capital to find
employment.
“In all cases money for construc
tion of new homes will be loaned by
private financial institutions after
they have been approved as eligible
mortgagees by the Federal Housing
Administration.
“The mutual mortgage system dif
fers in many particulars from what
fias been common proceedure in the
past.
“It makes it possible for a mort
gage to be retired in a considerably
longer period than has heretofore
been possible, and yet the lending
institution, because of the amortiza
tion plan, has much greater assur
ance that its money will be returned
"“Under this plan junior liens will
no longer be required and, as a mat
ter of fact, will not be allowed.
They are regarded by this Admin
istration as being contrary to the
best interests of the mortgagor be
cause they are apt to shoulder him
with heavy interest obligations
him to retire the principal of his
which may make it impossible for
debt. Also large sums in second
and third mortgages held by finan
cial institutions have, during the de
pression, been written off with
heavy losses. The best thought in
the real estate world agrees that
(Continued on Page Four)
COMPLETE LINE OF WINES AND LIQUORS
RANIER BEER 15 CENTS BOTTLE
ALSO A COMPLETE LINE OF
CIGARS & TOBACCOS
M
(Front Street Opposite Nome Motor Co.)
NOME LIQUOR STORE
NOW IN SEATTLE IT’S
HOTEL
Mayflower
R. P. WARD, Manager
4th AT OLIVE
ALASKA STEAMSHIP
COMPANY
DEPENDABLE— —REGULAR
RELIABLE— —SERVICE
By Plane, by Train, by Alaska Steamship Com
pany, from Nome to Seattle, is the Fastest, Most
Comfortable, Better Serviced, way for you to go.
Fast, Commodious, steel Passenger Vessels on
Regular Scheduled Sailings, Seward to Seattle.
S. S. NORTHWESTERN .JANUARY 19
S. S. VICTORIA .I.JANUARY 28
S. S. NORTHWESTERN. FEBRUARY 9
S. S. VICTORIA..FEB. 18
S. S. NORTHWESTERN.MARCH 1
The Boat Train leaves Fairbanks for Seward for
each scheduled sailing of Alaska Steamship Co.
ships the day before departure from Seward for
Seattle.
ALASKA STEAMSHIP COMPANY
Jas. P. Daly, Agent.
General Agents for The Pacific Steamship Lines