Evening star., 1947-12-30
Nay|or Deal Strikes
5nag on Question Of
Rent Control Lapse

Congressional attempts to settle
the controversy over Naylor Gar
dens struck snag today on the
possibility of gap in rent control
here.
Counsel for the Naylor Gardens
Citizens Association insisted before
a House expenditures subcommit-
tee that its members be given pro-
lection in case of a lapse in rent
control after March 81, before the
Government sells the $5,000,000 pub
lie housing project to the Veterans
Cooperative Housing Association.
The cooperative, through its
counsel, refused to provide such
protection for possible gap in con-
troll, contending it would violate Its
contract with members who have
bought apartments.
William A. Roberts, counsel for
the cooperative, pointed out that
the contract with its members pro-
vides they may get possession of
the apartments they have purchased
after rent control or when apart
mentS became available through
normal vacancies.
Lapse Of Control Only Issue.
B. T. Fitzpatrick of the Defense
Homes Corp, owner of the 748-
apartment project, told the commit
tee that agreement had been reached
among the three parties to the case
on all issues except the hiatus in
rent control.
Members of the veterans Associ-
alton Board, at an informal meeting
last night, rejected the request of
the citizens group for such hiatus,
Mr.. Fitzpatrick said. Chairman
Hoffman of the House subcommittee
raised the further issue whether
the cooperative had enough men,
bers occupying apartments already
to satisfy terms Of its contract with
Defense Homes Corp.
The homes corporation, its spokes-
man said, had agreed to accept the
figure of about 100 member occu-
pants as substantially" satisfying
the requirement that the eo-opera-
tive should get 800 member occu-
pants by January /.
The word substantially" is writ
ten into the contract, Mr.. Roberts
told the committee.
Paul A. Porter counsel for the
Naylor Gardens Association reiter-
ated his position that the co-opera-
tive had not satisfied the contract
in question on this point. He re-
peated his statement at yesterdays
hearing that the cooperative did
not have substantial enough f1nan-
cial resources to operate the project
His organization, Mr.. Porter said,
would rather the project was sold to
private enterprise with more finan-
cial backing.
In reply, Mr.. Roberts submitted a
financial statement on behalf of the
cooperative showing bank deposits
of more than 100000.
Eviction Possibility Stressed.
Spokesman for the Naylor Gar
dens Association stressed yesterday
that they might be faced with evic-
ton, despite assurances by the CO.
operatives spokesmen that present
tenants could remain throughout
rent control
Mr.. Fitzpatrick said, after q
conference, that agreement was
reached on the citizens proposal to
carry clause for protection of all
tenants into individual leases with
the DHC, so the cooperative would
be bound by the same leases, II and
when the title changes hands.
Bid of the veterans cooperative
to pay $5,125,O00 for the develop
ment, with 10 per cent down pay
ment in cash was accepted as low
bid by DHC. The cooperative has
notified DHC it has cash on hand
for, the 10 per cent as its $4,000
deposits show and wants to close
the deal by tomorrow.
Spectators Applaud and Whistle.
The hearing yesterday, attended
by more than 200, was marked by
clashes between the two groups, with
charges and counter charges evok-
ing applause, whistles, and i'm
promptu remarks from the specta-
tors.
On questioning by Representative
Hoffman, Republican, of Michigan,
Mr.. Roberts testified that Victor
Wickersham, real estate man en-
gagged to help sell apartments for
the cooperative, was to receive not
more than 3 per cent commission
on sales, and that $4,000 has been
placed in escrow for him, to be paid
when the property changes hands.
Afterwards Mr.. Wickersham told
the press that at least $685. 900 of this
was for advertising expenses and
real estate salesmen's salaries.
Mr.. Roberts told the committee his
law firm is to receive $4,000 for its
services.
Rims Rank RIIvs RuiIdinn