The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1919-12-19
BARES HOUSING
COST SCANDAL
Unauthorized Employment
OF 81 Architects Cost
u. S. Over 100000.

United states Housing Corporation
yesterday when Senator Fernaid.
chairman Of a subcommittee OF the
Senate Committee on Public Build
ings and Grounds. filed a report OF
les type-written pages-nlost Of which
was a severe indictment Of the cor
poration. Wednesday the House. after
several caustIe speeches. voted uflani-
raousIy for the Clark bill abolishinS
the Housing Corporation. and the Sen
ate Is expected to take the same ac-
ton.
The report charges that the Housing
Corporation ignored the direction OF
Congress to use the Supervising Archi-
tect Of the Treasury but employed
fifty-one architects. fiftsen-cf whom
came from New York. II a cost TO tae
government of over 100000.
The prohibition against cost plus
percentage contracts contained in the
appropriation act was ignored IN
architects contracts" the report said:
.sThe architects were paid actual
drafting expenses plus 100 per cent Tor
overhead Over $4,000 was PAID
architects under this provision. II
opened the way to slowness OF eNecd-
ton and to excessive and eNofbitant
rates. The committee does not charge
the architects with so doing, but the
method OF payment was a violation OF
the language OF the appropriating act
IT,, committee believes that more
than 10000 can he recovered for the
government by institutinG civil suits
AGAINST the architects and recommends
such action.
One Architects Deceit.
One architect (name not mentioned
Who had many government projects
In. report said. earned more than
twice as much during his war service
a. hts usual earning capacity. and
also earned many thousands more
than WIS reported in his income tax
return. When this was brought 10 MS
attention by the committees inVeSu-
- The architect immediately-hied
nccted income tax return on
the government will receive
<3ps additional for the years 1917
and 1915. the committee ssaid
Bids were never publicly opened.
Sthe report said. No one whose bid
was rejected knew what the proposal
of the successful bidder was.
one Of the general contractors OF the
Housing Corporation made a secret
profit'' of s16,O2SsO in subletting. team
ing and trucking on the women's
Dormitories in Washington. 1t was
charSed. .-Oficials permitted this pro-
1T to continue after discovery, says
the report
III was unjustIhable and can be re-
covered by civil suit
The committee also recommends
the recovery by civil suit OF more
than $50. 900 paid to subcontractors
al
on Union Station Plaza This money
was paid for construction extras"
in addition to hundreds of thou
sands OF dollars in other cases.
Big Loan to Water Co.
A loan Of 100000 was made by the
Housing Corporation to the Spring.
field Consolidated Water Company.
of Philadelphia. upon the recon-
incubation OF the chief engineer OF
the Housing Corporation who had
twice been q paid expert witness
for the water company.
-Not only was the loan unjustifi-
able under the point Of financial
security offered the report says,
bat although expressly made cor
the purpose Of financing future inn
prOVementS. the Housing Corpora
tiUn reimbursed the water company
out Of the proceeds of this loan for
So So of old bills of the water
company which had accrued and
which had been paid by the water
company prior to the date of the
loan"
This amount" the committee rec
cmmends. should be repaid at once
to the United States"
A failure to promptly cease build
ing operations on the signing OF
the armiStice. the committee said.
cost the government not less than
81, 40. 600 ON two transactions alone.
at BRIDGEPORT and Philadelphia
At the Women's Dormitory. the
report sets forth. $11.s6S68 worth
Of furniture and similar articles
has disappeared and personal cul-
-pabiIity cannot be fixed by the
committee as no receipt was re-
quired for the property
The futile ineficiency of the
system which would permit $4,000
worth Of furniture to be handled with
out any personal responsibility. is -
obvious to need further comment the
report read
.Patriots, Well Paid
Real estate men employed AZ ne
SOIlaIOTS IN inc purchase OF real
estate and whose work has been
described as patriotic received
compcnsation at the rate of $50
per day and expenses, it was
charged
Asserting thai speed was the
chirT aim in emergency housing
and tha- time was of the essence
in all contracts. the committee de-
clarcd that the first single resi-
dcncc was occupied January I,
1919. at Niles. Ohio. two months
after the armistice: six months al
ter the creation Of the Housing
Corporation. eight months after
the passage CT the appropriation
act: eleven months after the crca-
lion o! the Bureau OF Transporter
tioi and Housing in the Depart
Inent Of Labor"
The committee expressly alb
solves the officials Of the Housing
Corporation now in office from re-
sponsiLilitY for acts of their pre-
d,sc~ssors
Those who created the policies
of the Housing Corporation left its
or,sanixation shortly after the arm
istir~.- said the report
Appropriation l. Asked.