Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-01-29
Officer Says
Williams Never
Asked Approval
Housing Fraud Trial
Told of Cancellation
Of lund Contract

Morgan B. Callahan, loan officer
for the Washington area of the
Veterans Administration, testified
in District Court today that George
n. Williams never applied for or
received Government approval for
prospective CT loans on houses he
promised to build for former serv-
icemen In 1916.
Other witnesses, including sew,
eral veterans, told Justice Alexander
Holtzoff and jury today and yes
terday that the Williams company
accepted deposits of $500 to $1,000
from veterans after promising to
construct houses that could DO
financed through the Veterans Ad-
ministration under the loan provi-
sions of the CT Bill of Rights. Tho
deposits never were refunded and
the houses were not completed. they
testified.
Williams, former real estate man
now in bankruptcy, is being tried
on charges of using the mails to
push a scheme for defrauding vet
Grams and of sending forged checks
in interstate commerce.
Engineer Denies Signature.
In an effort to prove the prose-
cution's claim that Williams did
not own the Prince Georges County
land which he offered for sale to
veterans, Assistant United States
Attorney Cecil Hef1in called Mrs.
Lila r. Edlavich of 6420 Forty
third avenue, Cottage City, Md, to
the stand.
She said she listed her property
with the Williams company for sale
and signed contract bearing the
signature Howard L. Wootten,"
whom she assumed was the prospec-
tive buyer. No money was ever
paid, however, and she Cancelled the
deal short time later, Mrs. Edla-
vich testified.
Howard l.. Wootten of Bladens-
burg, Md, who said he was en-
ployed by Williams for several
months in 1916 as construction en-
gineer for the proposed develop
ments, denied he signed the con-
tract with Mrs. Edlavich or that he
ever attempted to buy the land. He
said he did not know how his name
got on the contract.
Burvle Ramsey of 1851 Biltmore
street NV, and Hans Peterson Of
Carolina Beach, N. c., former sales
men for the Williams company, tes-
titled the name "Wootten" was on
the contract when they first re-
ceived 1t from Williams.
Followed Instructions"
They also testified that they fol-
lowed instructions" Of Williams COM
pany Office managers when they told
veterans the deposits would be re-
funded if the houses were not started
within go days or completed within
six months. They also testified that
they were instructed to tell prospec-
tive buyers that the property devel-
opments had been approved by the
Veterans Administration as the
basis for CT loans. ..r
sMr. Ramsey, however, was the
only witness thus far who said he
was authorized by Williams per-
scnally to make those statements.
Under cross examination by Rob-
ert w. Mccullough, attorney for
Williams, Mr.. Wootten said he left
Williams employ in October, 1916,
because he became dissatisfied" by
the lack of progress as a result Of
delays in delivery of building ma
terials. He said more than 20
houses had been started at that
time and that Williams also had
lumber yard and saw mill facilities
in Maryland.
Van Buren, Sullins, IT., of 4703
Ravenswood road, Riverdale, Md, a
veteran, testified that he made q
$500 deposit with the Williams COM
pany for house but never got his
money back. In response to re-
peated demands for his money. he
explained, he was told by a COM
pany official that Williams had too
much money tied up and couldn't
give me back my money at that
time"
Mr.. Mccullough indicated when
the trial began yesterday, that the
defense hopes to prove Williams
acted in good faith In accepting
money from the veterans.
Mr.. Mccullough declared williams
made some horrible mistakes" In
business judgment, but would have
produced the houses and returned
the deposits, ranging from $500 to
1000, If he had not run into bad
luck. shortage Of materials and
other delays in the summer and
fall of 1916.
Attorneys estimated the trial
might continue for a week or more,
despite the saving of time yesterday
when Mr.. Mccullough conceded
authenticity of various checks, let
tiers and contracts signed by Will
liams.