Evening star., 1941-08-06
Dupont Probers
Fail 10 Decide
Lease Action
Downs Resolution
To Drop Negotiations
To Be Studied Again
BY WILL p. KENNEDY.

BY WILL p. KENNEDY.
Members of the House Public
Building and Grounds Committee
failed to reach an agreement at a
closed session this morning on what
recommendations to make as a re-
suit of their investigation of the
Governments projected leasing of
the Dupont Circle Apartments for
defense Offices. The committee men,
bers arranged meeting later in the
day to consider the matter further.
The closed session followed a
number of public hearings prompted
by complaints by tenants ousted or
facing custer because of the planned
leasing of the building.
Committee members said an ef-
fort would be made at the afternoon
session to adopt resolution recon-
mending that the Government drop
negotiations for the building. Such
a resolution has been proposed by
Representative Downs, Democrat, OF
Connecticut. In this connection, thf
committee also is considering asking
counsel of the Federal Works Agen-
cy for an opinion regarding the Gov.
ernment's obligation to take over the
building in view of a commitment
to lease it.
Telegram Not Accepted.
Members also disclosed that
telegram throwing additional liz
on the negotiations for the proper,
was not accepted by the committt
at its meeting this morning.
The telegram was revealed yeSter
day afternoon, after the close
public hearings, by Harry L. New
man, president of the corporate
now owning the apartment, and e.
planned Mr.. Newman's authority Z,
open negotiations with the Govern
ment for the lease of the propert.
before he and others acquired con-
troll of it on July 3.
The telegram was signed by Par
( v. Rogers and Mr.. Newman said J
gave him an option on the property
Mr.. Rogers and his law partner
William E. Furey, each held 10 per
cent of the stock of the apartment
corporation. They had acted as at
torneys for the corporation and Mr.
Furey was secretary before the con-
/ troll of the building passed to Mr.
/ Newman and his associates.
( Members of the committee said if
the telegram was accepted as par
of the record it would mean reopen
ing the hearings. Several committe-
members were of the opinion Mr.
Rogers and Mr.. Furey should !
called before the committee to testi.
concerning the telegram.
The telegram read:
"As stated, can deliver entire hotc
stock issue for 1868 900 and indem-
nifty purchaser against any add
tional cost other than current oper.
ating expense. No other propose
will be entertained go days pending
your negotiations
Exercised Option.
Mr.. Newman said:
The telegram speaks for Itself
1t can be verified from the files O.
the Western Union Telegraph Co
both here and in Florida. I eXer
cised and took up the option befor'
it expired, making paymen
thereon to bind the bargain anC
the closing proceedings in the mat
ter then continued until completed,
consummated on July 3. This show
abundantly that no one could hav
leased or sold the property to tn
Government or to any one els
without my permission and conSen
during that time.
after having proceeded for som
time upon receipt of the option t.
purchase, to take over the propert,
as hotel and to make my arrange
mentS therefor, I learned that tn,
Government wanted to lease tn
premises. The negotiations between
Government officials and mysel
finally eliminated in the agreemen
set forth by the Government wit
nesses and myself. In strict &C
cordance with the letters writer
to me by the Government executet
the lease and delivered and gave
to the Government in line will
their letters to me, discharging com
pletely and fully every undertaking
had assumed"
Meanwhile, Robert L. Grosiean
brother-in-law of Senator Tyding
and son-in-law of Joseph E. Davies
former Ambassador to Russia, to
day admitted at Camp Lee, Va, tina
he owns stock in the Dupont Circle
Inc, owner of the apartment hotel
and that he was elected directo
of the corporation when it took owe
the property on July 3.
Mr.. Grosjean is a Belgian refuge
who volunteered for United State
Army service. He refused to dis
cuss the amount of stock he own
or the date on which he contracted
to make an investment in the Du
pont Circle Apartment. He salt
that he is too busy with his mill
tary duties to pay attention to in
quiries regarding his real estat
holdings.
Tydings Denies Interest.
Il have no stock or financial in
terest of any kind in the Dupon
property" Senator Tydings sale
adding that he had never discusse
the matter with Mr.. Grosjean.
In testimony before the Hous
committee it was disclosed tina
three directors we're elected Of
July for the new ownership. Tw
of these were promptly identified
as Mr.. Newman, president Q
the corporation, elected on tn
afternoon of July 3, and Charles F
Armstrong, who Mr.. Newman SAT-
was "a relative and friend"
The identity of the third directo
was not disclosed until last Friday
when Harrison Somerville, >presiden
of the corporation under the forme
ownership, prompted by Mr.. Rogers