Evening journal., 1919-12-19
GRAF EXPOSED,
eFNATORSALLEGE
War Building Projects Mark
ed by Misuse of Public
Funds, Report Says
PROSECUTION OF
OFFICIALS is URGED


torstion yesterday by a spe,ill rom-
mHleo OF the senate, which had been
Investigating The organization for sew
eral months.
The committee. OF which Bert n.
Fernald, senator fF9m Mime was
chairman. was SO convinced of tle
impropriety and illsga,iiy of certain
practices which the Housing Corpor-
alton INDUCED or con lonrd, th6t eiN'i
suits to recover large sums Of MONEY
from contractors were rec1mmeaIcd,
ana In one instance personal liability
~ officers of the corporation was sug-
gested as dttine The sub-c0mmltitC
Of five. composed Il three Republicans
and two Democrats. agreed upon The
report, and it was indorsed by The full
committee.
one OF the most serious Of the
charges made against tlie Housing Cor
poration grew out of The loan OF
sS00O0O made TO The Springfield Con
solidaied Water CO., o. Philadelphia
and = further criticism Of the Housing
Corpdrailon arose from The fact tiat
the 3.500O00 housing project In Phila-
delphia was only rer con-. completed
Vvhfu the srmislice was signed, yet u
yvas,rarried to completion.
Calls Loan Uniustiiiabie.
The Housing Corporation she Sem
ate report said "md1e loln OF s3Jl-
600 10 the Springfield Consolidated
Water Co.. Of Philadelphia, upon the
Recommendation Of the chief engineer
Of the Housing Corporation, WHO had
twice been a paid expert witness for
tae water company. This fact the
president OF the Housing Corporation
originally testified, was unknown to
him. and would have affected his lufc
ment had he known H. but corrc-
spondence between the water company
and The president indicated he did
know.
mot only was the loan uniustinable
under The point Of anlncial secnrily
offered. but although expressly made
for the purpose Of lnancing future
improvements. the Housing Corporation
reimbursed the water company ont Of
The proceeds Of This loan for S5i 90 Of
old bills Of the water company which
had accrued and which had been paid
bv ihe water company prior TO The date
OF the loan This amount should be
rep3id al once 10 the United states"
In its recommendations, the COM
mliiee said.
with reference TO the loan 10 the
Springfield Consolidated Water Co.. this
company should be called upon imme-
diaiely to reduce their loans to the
amount OF the sums applied TO the
payment Of old accounts rather than
% extension OF their equipment. The
committee believs also That all other
loans 10 railroads, street railways, util- !
ty companies should be carefully /
swutinlzed by the proper onl1lcial Of /
iie Treasury Department. and where /
l.D stcurity which the government has /
rncniNCG for these l0tls Is not adc-
Waia additional security should be ]
immeGalely demanded, or in lieu an
irmsaste reduction in the amount Of
ihf loaB'
WITH reference TO the failure TO 4
hHili hoqScs in time to have them /.
ay0Hab'e for war uses. the committee 1
sdd.
speed was the chief aim IN emer-
Eeug housing. Time was Of the es-
serte Ia an contracts. The first single 4
esdenco was occupied January I, n
1912 at Niles, O., two months after The
atmsiicc, six months after the crea-
ton of The Housing Corporation, eight II
months after The passage Of the appro-
Sriaiion act; eleven months after the II
erection OF The Bureau Of rranspOria- 4
ton and Housing IN the Department !
of Labor
a failure promptly 10 cease build
us operations on the signing OF the Il
alnsiice proved either dlslre 10 1
complete their town beautlmp expert
nefis. or be helpful at government II
expense 20 the local communities in
Volted The Crane tract al Bridgeport l
was one-half Of one per cent. completed n
% November G. 1918, yet is was com
Tletcd by the Housing Corporation at
cost Of 1871 .S399O. Ninoty-lwo Of
these houses were still vacant in Sep
fenbcr 1919.
The Philadelphia project was onlS
9 per cent. completed on the date OF
the signing Of the armistice but was
ilniSned by the Housing Corporation
ia cost Of s34o6,000 These two trans
aeuans cost The gOvcrnmen. sI.450NO.
whitn could have been saved had the
wofh been stopped in November. 1918"
ipe greatest charges of the Senate
committee were thus staled;
llle original act provided that
houses erected by the Government
should be only Of a temporary char
acter, except where the interests OF the
Govefnment would be best served by
buildings OF a prominent character. The
housing Corporation officials consistent
ly made the exception TO the rule and
erected practically all buildings OF per II
maneni character.
emergency war housing was con-
strued to include electric door openers. II
recreation parks, hOt-water heating l
systems in Virginia and the furnishing Il
OF tenants with kitchen ranges. kitchen Il
patent slate washtubs and II
patent clothes dryers ready equipped
with ropes. Garages were built at Gov
eminent expense at Vallejo. Calf. and Il
as an adjunct to the housing were
planned at Erie, Pa. and Seven Pines,
Virginia.
ignored Instructions.
The specifications OF house and sur
required a joint agreement Il
lf the architect. The engineer and the
Iown planner. and undoubtedly is re-
'ponsible beyond other reasons for the
allure TO deliver completed housing.
Single residences in Bridgeport.
.onn.. cost S7263 each. The average for
III houses was S5,6737s. The direction
Il Congress to use the ofiice OF the
iulcrvisiiis architect Of the Treasury
department. was ignored. This cost the |
government at least 100000 Fifteen out
u fifty-one architects employed by the