Evening star., 1947-01-15

not mention Saturday.
The Inspector of Traffic and We
hicles recently had all the meters
temptied on Friday night and made
another inspection early Monday
morning. It was then discovered
that motorists had deposited more
than 500.
I Builders Challenge
Veteran Groups Plan
For Cuf-Price Houses
Two Washington builders last
night. challenged the Veterans
Mutual Housing Associations plan
to build $4,000 homes for veter-
ans at cost of $1,000 by saving
developers, builders and salesmen's IS
profits.
At a rally held in the Commerce
Department auditorium to stimu-
late interest in the project, tie
builders bluntly termed the plan
"a gamble" For an hour they
went over its provisions one by cne.
They were Edward r. Carr, former
president of the Home Builders As
sociation of the Metropolitan Area,
and Frank Luchs, vice president of
Shannon & Luchs Co.
Fire Capt. Leo B. Wilson, presi-
dent of the housing association, ex-
planned the group has contracted
for a 500-acre undeveloped tract in
nearby Maryland and plans to start
immediate development of 40 acres
with $500 shares purchased by 225
veterans.
Tract to Cost 81 ,000,0 900.
With a $4,000 deposit already
made, he said, the group plans to
deposit another $4,000 on January
27 to obtain the 40 acres. Contract
price for the entire tract is about
81 100000, he added, on which the
group plans eventually to build 1000
homes.
First, he introduced speakers
from the Veterans Administration,
National Housing Agency, War As
sets Administration and Perpetual
Building Association, who briefly
explained their phases Of veterans
housing problems. He then called
for questions from the audience of
about 100.
Mr.. Luchs introduced himself as
a local builder, but said he was asked
to obtain data on the plan as a
representative of the District Ameri-
can Veterans of World War II.
Capt. Wilson said, in answer to
question, that the $500 shares
would be only for purchase OF
land, t4arlds sthat homes would be
individually financed by the former
GIs. - a.
When he added that officials of
the Perpetual Building Association
had said they would grant 100 per
cent individual loans, MIR. Luchs
asked whether they were definitely
committed.
VA Approval Needed.
Edward G.. Baltz OF Perpetual
said the loans would be made on in
dividual merit, but not until costs
and plans were approved by the
Veterans Administration.
Morgan G. Callahan, local loan
guarantee officer for the veterans
agency, declared appraisal gener-
ally was granted on completed
homes. But the Veterans Admins
tration, he said, would make a ten
tative approval after lots were laid
out and plans and specifications
were submitted and accepted.
would Perpetual agree to this
tentative approval?" asked MIR.
Luchs.
eyes, but we would require a COM
pletion bond be obtained on every
house to insure it would be finished. y
Completion bonds are very hard
to get these days, aren't they?'
countered Mr.. Luchs. Mr.. Baltz
agreed they are.
In answer to another query, Capt
Wilson said his group would try to
get a loan from the Reconstruction
Finance Corp. in about week with
which to purchase machinery to
develop the first 40 acres.
He admitted he had no commit
ment for the loan.
"Well suppose you have just
enough money to get the first AZ
acres of land, and no more. Where
will you be sitting then?" asked
Mr.. Luchs.
We'll be sitting there with 40
acres of land" Capt. Wilson an
swered.
Plans Production Line"
1--WE plan to have sort of assem-
bly, line production on the land after
that" he said, and added the group
hopes to reach production of a
house a day in about eight months
Mr.. Luchs then asked who would
take care of taxes and interest on
purchase of the land. Capt. Wilson
said they would be paid by the cor
poration, and admitted that some
additional money might have to be
furnished by shareholders if not
enough veterans came into the pro-
ject.
When Mr.. Luchs asked why a
homebuilder would continue to hold
onto his share and continue to pay
taxes, the captain said the share
holders might realize profit from the
project. ..
isn't this nonprofit organiza-
tion?" MIR. Luchs asked.
Capt. Wilson said it was, but that
the group planned to develop COM
mercial section that would include
rental property.
Were strictly a nonprofit organi-
zation," he added, "but we're not
going to turn money away"
Also asked whether he had made
application for utilities from the
Washington Suburban Sanitary
Commission, Capt. Wilson said the
group had only been verbally as.
sured that the service could be pro-
vided."
WELL" said Mr.. Luchs, what
concerns me is that you are getting
Into this with all these DeODleS $500