Montana labor news., 1948-07-29

The disgraceiul conditions involved
III the sale OF houses in the Hartwig
and Jingle Billings Calhoun Lane sub
DIVISION to veterans was first exposed
TO the public i'll News Letter (Scpt. 70,
1910, and continued in weekly issues
until Dec. II, 1917. Alter the holidays
News Letters about the Calhoun Lane
deal were published weekly IRON Jan.
q to April ), l94S. Alter this date
articles written BY the author OF News
Letters appeared under his by line in
the Billings Herald issues dated April
Is. p and %, and reprint OF a News
Letter IN paid advertising space i'll the
issue OF July |.
Just prior to the time the Calhoun
Lane veterans housing scandal broke
INTO the open the Billings Veterans Of
Foreign Wars responded to a call ior
assistance from the local American Le-
gion, to which the p els in Calhoun
Lane belong. The VIEW at once Gre
atcd a iive-man committee, with Frank
German at the head, to Investigate and
help the CTS, and provided funds for
the committees expenses. The CTS also
AHHOittNd q ~ akN
with the VIEW committee.
One OF the first resolutions to be
adopted by both committees was that
they would hold no secret or closed
meetings and all interested parties
would be invited to attend. A meeting
was called and Hartwig and Jingle,
the promoters OF the housing project;
%Jorgcnson and White, officers OF the
Security Trust and Savings Bank, the
lending agency; Ben Hill, director OF
the Montana office OF the Federal
Hosing Authority, and John McLaugh-
lin, head OF the loan department of the
Montana Veterans Administration at
Helena, all received written invitations
to attend. None OF these men came
to the meeting.
During the period September, l947,
to February, lY4S, the CIV and GI
committees iunctioned iii a militant and
aggressive manner trying to present the
true facts about the Calhoun Lane gyp-
built houses before the public and their
case against the guilty parties into the
federal court. 1t looked as though they
had succeeded when on Feb. % Frank
German handed in a note and asked
that it be published at the top OF the
News Letter issued on that date. The
note cad as follows:
John Tansil, United States district
attorney Tor Montana, received word
today from United States Attorney Cen
eral Tom Clark, to make investigation
OF the Calhoun Lane veterans housing
deals a special matter OF business and
to act without lear or favor"
The Calhoun Lane houses were sold
for $4,000 per unit. All the veterans
made cash down payments; some $oOO,
others $1,000, a few paid S2,l0O. The
balance OF the purchase price was Sc
cured by two mortgages-the first for
so per cent Of the balance, the second
for 20 per cent. The Security Trust and
Savings Bank handled the mortgages
The FILA guaranteed the payment Of
the mortgages for 50 per cent, the VA
the oncs for 70 per cent. Neither OF
these government agencies considered
it necessary to inspect these houses dur.
ing the time they were being con.
structcd.
The VIEW and CT committees triet
for months to get Hill OF FILA and Nc
Laughlin OF VA to meet with them ane
help try to solve the veterans financia
troubles but were unsuccessful. Aftcl
Attorney Tansil entered the case Hill
met with the committees several time.
but Mclaughlin has never had thu
courage to face the CTS and the VIEW
committee.
Since Attorney John Tansil received
What Frank German called the greer
lightlight from Washington'-on Feb
2S, the Calhoun Lane houses have beef
Investigated and checked and double
checked by men from the Helena FIJI
office; by mortgage underwriters iron
the FILA office in Washington, and b.
two mcn-Edwin Hoag and William
Riggs-from the office of Housing Ex
pcditor at San Francisco. Each in
spection confirmed the fact that Ties
houses are not worth half what the vet
Grams paid for them.
Among the reason reported for nc
starting criminal action first agains
guilty parties is that it might injure
suit for recovery of damages by tn
veterans. In similar cases at Sacra
mcnto and Fresno, Calf, the crimini
suit was instituted first. At a recer
meeting of the veterans and their wive
John Bonner, Helena attorney, who ha
Offered his services free to the veteran
.t-1 - H. 4t,A.k ~,,r Oh