Evening star., 1952-07-14
VA Officials Quizzed
On 'Unjustified' Rise
In Housing Prices
By Colt hendIey. Ir.


Charges that builders were al
lowed to increase the price of
houses in the Washington area
without justification were hurled
at Veterans Administration hous-
ing officials today.
The accusations came as a
special House committee, headed
by Representative league, Demo-
crat. OF Texas, resumed it's inquiry
into the veterans housing situa-
tion here.
Under fire today was the Rox-
boro development near Rock
vile. Md. After hearing COM
plants from two veteran buyers
that the houses they bought were
inferior copies of what they ex-
pected to get. the committee
called two VA officials.
They were Morgan B. Callahan,
VA regional loan guarantee Of
f1cer, and Stephen Barker, former
regional chief appraiser.
Price Boosted $4,000.
Oliver Meadows, committee
counsel, brought out by question
ing the two that the price of the
.Roxboro houses had been jumped
from the original $4,000 price
by more than $4,000 in 18 months.
Mr.. Meadows said the investiga-
ton had established a pattern of
continually increasing prices
granted by the VA but with no
corresponding justification. He
said there was no question that
the cost Of construction had risen
but that the VA price increases
granted were much higher.
He declared:
We find no Justification in the
files. All we find is a letter COM
ing in asking for an increase and
a letter going out granting the in
crease"
Mr.. Barker said this might be
true but that the letters did not
SHOW the discussions and study
behind each increase granted.
Documents Missing.
Mr.. league asked if it was not
true that papers and letters were
missing through all the VA files.
Mr.. Meadows said the investi-
gators for the committee had
found some papers torn from the
nles and others just missing"
Concerning the price increases
granted at the Roxboro develop
ment as well as others which had
been investigated, Mr.. league
commented:
We have case after case where
you tMr. Callahan approved in
cfeases with absolutely no iusti-
ncation. Do you expect us to-
think you were taking good care
OF the veteran or the builder?"I
Mr.. league added, Il don't see
now we can come to any conclu-
sion except that the veteran didn't
OSE AuCII CONSIDERATION"
Plans Kept in Boxes.
Mr.. league asked Mr.. Callahanl
II 1t was true that the plans andI
specifications for various projectsl
which his Office had handled were
piled in boxes and on the floor in
the VA Offices.
He asked: rs that a common
practice?"
We try to keep them neat. but
we don't have the files to put
them in." Mr.. Callahan responded
Mr.. Barker said that there had
been number of instances where
they had been unable to find the
plans of housing projects in the
VA Office. He added: II think
they are there, but where is hard
to explain"
The hearing opened with two
owners of Roxboro voicing COM
plants.
They were Albert F. Paul of Iii
Calvert road. Rockville, and Ca
brlel c. LaMaSters of 118 Calvert
road. They said they represented
a group of home owners of the
housing development. The homes
were built by Ernest Cook.
Cheap Substitutions Alleged.
I'VE think all Of us have been
done an injustice" Mr.. Paul tes-
tilted. After seeing sample
houses, we expected ours to be
constructed the same. They were
not"
Mr.. Paul said the homes they
bought contained many substitu-
tlonS of cheaper material. HeI
complained of leaking roofs, cabi-
nets that fell off the walls and
sloppy workmanship.
The houses were bought by the
veterans for just under $4,000.
Mr.. Meadows said some Is or 20
changes were made from the orig
inal specifications. |