Evening star., 1947-06-03
New Building 10 Save
RFC $4,000 Yearly,
Chairman Tesfifies

John D. Goodloe chairman of the
Reconstruction Finance Corporation,
today defended loan of s1,650, 900
to Jerry Maiatico, Washington
builder with Offices in the Invest
ment Building, for construction of
a 12-story office building now being
built at the northwest corner of
Connecticut avenue and H street
NV.
Testifying before House sub
committee investigating RIGS space
procurement policies, Mr.. Goodloe
said the loan was sound" and de-
clared the building would save RFC
approximately $4,000 year.
Appearing with Housing Expediter
Frank r. Creedon and w. E. Rey-
nolds, Commissioner of Public Build
ings, Mr.. Goodloe traced the back
ground of the loan granted in No.
vember, 1915, at time when the
agency was facing critical space
situation"
Approval was given, Mr.. Creedon
said. on the basis that the office
space was needed, that the i'm
pact" on the housing program was
minor" and that without it Mr..
Maiatico would have been obliged
to undergo financial hardships.
Emphasizes Groups Approval.
Mr. Creedon. emphasized that
approval of construction was given
unanimously by the District Con-
struction Advisory Committee, COM
posed of representative unpaid
Washington citizens.
Early in the testimony Chairman
Bender of the subcommittee asked
MIR. Creedon why the local CPA
office disapproved the initial appli-
cation after seven weeks study, and
approved the first part of construc-
ton after only two days. Mr.. Cree
don, pointing out that he had not
been in Office at the time, referred
the question to Edward M. Synan,
district construction manager for
the Office of the Housing Expediter.
Mr.. Synan said that seven weeks
were required to handle the first
application because of shortage of
personnel.
r. He added that an amended appli-
cation for partial construction was
because the builder had
reduced the amount of construction
need to what amounted to shell
like building" and that as a result
only a small amount of housing ma
terial was needed.
TT was the practical thing to do
he said, referring to the approval
action.
When the second phase of con-
struction was approved, he said, the
supply of materials needed. such as
bricks, had improved to such an ex-
tent that they provided no sizable
problem.
Agreement Changed.
Mr.. Goodloe said that, under the
original loan agreement, RFC was
to be permitted to rent the ap-
proximately 10000 square feet of
net floor space in the building at
a rate of $3.50 per square foot per
year, with RFC providing service
Later, he said, RFC consented
to release substantially all the
basement and first floor space" and
the terms of the agreement were
revised, setting o 81 40 per square
foot rate, including services and
This rental is approximately 81
under the prevailing rate in Wash
lngton for comparable space" ne
said.
In later testimony Mr.. Synan.
said it was his understanding that
the new building at Eighteenth and
NJ streets NV, recently completed
by Gustave Ring, was renting for
S4 a square foot on the basis of a
tive-year lease
The RFC. Mr.. Goodloe said. has
an agreement to lease for one year
with nine one-year renewal options.
In case 1t gives up its space 1t has
the right to turn 1t over to other
Government agencies.
Mr.. Reynolds, PBA commissioner, ;,
testified briefly, saying PBA has no
authority over office space of Gov
ernment corporations.