davidaulloa/AmericanStories huggingface dataset:
Evening star., 1952-08-31
Iron
CONTINUED From First Page.)

lit be kept secret and promised to
reply within one week.
I gave them strong reasons why
this message will not have q good
effect on the Iranian people. and
I told them instead of giving me
this message, why did they moi
reply to the Iranian note?
Today they repeated the mes.
sage to me. and they believed thai
because the message was framed
with good will it would have 9
good effect.
I told them that this govern.
ment can never agree to this
message.
The Government believes both
houses Of Parliament should be
called to consult on the necessary
reply to the message.
Magnanimous, British Say.
The British Embassy said this
generous offer" was a sincere ef-
fort to end the 18-month dead
lock.
"Mr. Churchill and Mr.. Tru-
man have stretched out the hand
|of friendship in a spirit Of mag
nanimity and sincerity" 1t said.
The fact the offer was made
jointly in the name Of Mr.. Tru-
man and Mr.. Churchill stressed
the Importance they attach to
restoring the economic stability
|of this strategic country and to
blocking a possible Red coup.
On the Iranian side, Shah Mo-
hammed Reza Pahlevi also appar-
emily was informed. A short time
before the ENJOYS arrived, Mos
sadegh conferred an hour and
a half with the Shah.
Details of Program.
The three-point program:
/. Iran would submit to the
World Court the question Of
compensation for the assets Of the
Anglo-Iranian Oil Co. The coun-
ter-claims of Iran would be fully
considered.
2. Iran and the company would
name suitable representatives to
negotiate arrangements for. the
flow Of oil from Iran to world
markets"
3. II Iran accepted these twc
points, (a) the company would
release for immediate sale the
two million tons Of Iranian oil
(worth 20 to 80 million dollars)
held in storage at Abadan:
(b) Britain would relax her re-
|strictions on exports to Iran and
on Trans use of British sterling;
and (c) the United States would
make an immediate grant of SIC
million to the Iranian government
to assist in their budgetary
problem"
The American grant would fall
far short of the $50 million iran
has been limiting she would like
but would help Mossadegh gel
back on a regular payday schedule
with the army and government
Iemployes. Their salaries have beer
falling into arrears since the
Abadan refinery virtually shut
down more than q year ago.
Evening star., 1952-08-31
VA Housing Chief
For D. G. Area Returns Tuesday
CuIIuhun Luid OFF
For Irregularities
In TruveI Vouchers

Morgan B. Callahan. top Vet
Grams Administration housing off,
cial for the Washington area
plans to report back to work Tues
day after completing a 20-day
suspension for travel voucher ir-
Irregularities.
The House Committee investi-
eating veterans housing recon-
mended that he be removed from
his job permanently. He is the
loan guaranty officer for the VAS
Washington regional Office.
Mr.. Callahan's current suspen-
sion has no connection with the
committee investigation.
He was suspended by the VA
after a three-man board discovered
irregularities in travel vouchers
he submitted for use of his per-
sonal automobile on VA business.
The board said that while 1t was
established that vouchers gen.
orally were erroneous, considera-
ton was given to evidence that
there was no intent to defraud the
Government.
Deductions Ordered.
Mr.. Callahan said his secretaries
were instructed to deduct II miles
a day from speedometer readings
to allow for personal use of his
car.
The House committee also
recommended that key officials in
Mr.. Callahan's Office be replaced.
Actually, the housekeeping has
been under way for the past few
months.
During the public hearings held
by the committee. it was disclosed
that all but seven of 30 building
inspectors had been relieved since
last summer because they were
not qualified for the job. Other
have been added since.
A new executive officer was
sent into the local office to take
charge while Mr.. Callahan was
under suspension. Three people
were assigned there from the Ma
tional VA Office and two other
regional Offices.
Analyst Resigns.
Other changes include the resig-
nation of one construction analyst.
Barker. chief appraiser
during much of the period under
Evening star., 1952-08-31

was introduced when Congress
convenes to put the recommended
tions into effect. He declared:
We're not stopping with recon-
mendations. Something will be
DONE"
There's no question that the
local VA office is directly respons-
ible for the inflated real estate
market here" Mr.. league COM
mented. "The investigation adds
up to the fact that the veterans
in this area just didn't know what
they were getting"
Market Here Discussed.
Discussing the real estate mar
ket in the Washington area. the
report declared:
Approximately $4,000 housing
units have been constructed under
the VA loan guaranty program
in the area since 1914. 1t is
apparent that this large quantity
of construction has dominated
the real estate market in this
area since houses financed under
the program represent a large
portion Of construction in the
Washington area in the last few
years.
"A review Of the tiles of the
loan guaranty division of the VA
regional Office leads to the in
eScapable conclusion that the ap-
praisal policies of the division
have been a major contributing
factor to the inflationary trend
Of real estate in the Washington
area.
1T is estimated that approx
mately 10 to Is per cent of cur
rent real estate costs, particularly
in the low-priced and middle
priced fields. is the direct result
of failure of the loan guaranty
division of the Washington
regional Office to properly carry
out its function Of setting reason
able values on real estate pur-
chased by veterans under the
loan guaranty program.
%. It was concluded that VA
operations in the Washington
Metropolitan area had had an
elevating influence on values.
Loss Put At Millions.
"The committee has arrived at
the conclusion that a combination
of ineficiency. deliberate favorit-
ism and misconception of the basic
function of the loan guaranty di-
vision has resulted in the loss of
millions Of dollars by veteran-pur-
chasers in the Washington Metro
politan area.
"The only reasonable conclusion
that can be substantiated after
the operation is
that the loan guaranty officials of
the local Office conceived the pro-
gram to be q builders program
rather than q veterans program,
and operated on the assumption
that the builder must be pacified
at all costs. -
The report stated a great deal
OF the difficulties in the Washing
ton area resulted from an unsat-
isfactory compliance inspection
system.
These inspectors are not en-
ployes Of the VA. They are as
signed to inspect houses to see
that the construction standards
are being metz They are paid by
the builder who later RECEIVERS
from the purchaser when settle
ment is made. ~
Deficiencies Passed Over.
Some fee inspectors were filing
reports Of inspection when they
did not actually inspect the
property" the report charged.
"On other instances where it was
impossible to prove that the in
Evening star., 1952-08-31

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Evening star., 1952-08-31

MOre IMAM $40 mllllO0 mas pee0
refunded to home owners by
builders who ran afoul of priorities
regulations when they over
charged or substituted inferior
building materials.
These cases all grew out of
violations of the various regula-
tions in the veterans priorities
housing program under the Ofhce
lof the Housing Expediter. They
cover q six-year period.
In Washington alone, from No
lvember. 1948, through January,
1850, settlements were obtained
without court action in 81 cases
involving 1,435 units. The refunds
amounted to $81, 1856. Another so
cases were referred to the Justice
Department for court action.
The House CT Committee. in
summing up the housing picture
around the country. included in
its report statistics from the Hous-
ing Expediter. This showed that
from the inception Of the program
in 1946 to March. 1851, when most
of the work was completed. re-
funds to home buyers totaled $2,-
532, ,648.
The Housing Expediter came
into the picture during the period
following World War II when
builders were getting priorities on
materials to build homes for sale
to veterans.
Sold Over Ceiling Price.
Summations of the local cases
mentioned in the House Committee
report follow:
Twelve homes constructed by
Francis Deremer in Michigan Park
Hills, Md, were sold at 500 to
$3.50 over the ceiling price. When
the case went to trial. a settlement
Of $4,000 was offered and accepted
by the purchasers.
Sixty-five homes in four South
east Washington developments,
CONSTRUCTED by Dan Pollin and
Leon Shainis, of Shapol Properties,
Inc. were found to contain sub
|stitutions.
These included plasterboard for
|lath and plaster, and inferior
linoleum. Omissions included base
|ment exits, screens, kitchen wall
cabinets and closets. Negotiations
resulted in refunds totaling 1882
to the purchasers.
Wet Easements were found in 81
homes in q development built by
Boswell Miller Construction Co.,
in Hyattsville, Md. A settlement
totaling $13,400 was made with
the owners.
Sixteen houses on Volta road
in BladenSburg, Nd. were sold
lat $3.50 over ceiling price. The
builder was the B & G Construc-
tion Co.. of Bethesda, Md. Missing
were screen doors and windows
and the porch was smaller than
called for in the plans. Each pur-
chaser got $125 back.
Other Refunds Made.
Twenty-three home owners at
Indian Spring Village. Montgom-
lery County. Md. got $375 each
lin refunds from the builder. In
dian Spring Village, Inc, A. H.
Ryan, president Speed-tile had
been substituted for face brick
and a side porch was omitted.
Leeway Heights. Arlington, Va,
10 development Of Ill homes still
is in controversy. The builder is
M. T. Broyhill Co., Of Arlington.
The total possible claim the own
|ers had against the builder for
Evening star., 1952-08-31
Teogue

CONTINUED From First Page.)
favored treatment. got unjustified
price increases and were allowed
to substitute inferior materials
in houses.
6. VA officials engaged in real
estate activities and lending &C.
tivities in conflict with the in.
lterest Of the Government.
Some VA Indictments.
In San Diego. the indicted per-
sons included the VA loan guar.
lantee officer. his assistant, the
chief appraiser and three inspec-
tors.
Also indicted there were the
president and two vice presidents
|of q large savings and loan asso-
citation and the vice president of
Ia mortgage loan association.
Others charged included the pres
|idept and two vice presidents OF
one large construction company
and the manager, vice president
and attorney, for another.
The committees report also
made these charges involving VA
housing activities:
In Miami, the manager of the
IVA Office accepted liquor anc
other gifts and demonstrated q
severe lack Of managerial integ.
lrity and judgment. This same
man bought a house for SIS, 5,00(
in Miami Shores, a price which
was well below the market price
from a friendly realtor.
In Providence, r. l., a grand
Jury indicted several real estate
men connected with one housing
project and sent q scathing meme
Ito the Justice Department de.
lnouncing the VA employees in the
local Office. The usual gifts were
accepted by the VA employees
Prices of houses frequently were
jumped without justification.
Promoted Business Affairs.
In Wilmington, the VA loan
guaranty officer utilized his OH
cial position as o means of pro-
noting his personal business
affairs, including q liquor store,
and promoting q large home. He
also showed favoritism to one con-
tractor.
In Detroit. the VA loan guar
anty officer accepted gifts from
persons and firms doing business
with the VA. He also had money
invested in a building firm oper-
ated by his brother.
AS an example of the gifts re-
|ceived by VA officials in Detroit.
the appraisers take at Christmas
consisted Of five bottles of whis-
ky. a fruit basket. a chafing dish
filed with fruit and nuts, a punch
bowl filed with goodies. four tur-
keys. two hams, q bottle of wine,
IA fruit cake, a carving set, some
linens and gift certificates total
ing sos.
In Lubbock. q VA appraiser de-
MED he had an interest In q
house he was building. He also
attempted to get side payments
from veterans who purchased
homes he had constructed.
Oklahoma City Gases.
In Oklahoma City. employees ac-
cepted gifts and the value of
property was raised without justi-
fication. The assistant loan guar
anty officer sold his house to q
veteran for $500 and the vet
eran then discovered the house
was appraised at only $1,000.
In Los Angeles, the VA officials
allowed lists of employees of the
housing Office to be circulated dur
ling the holiday season to builders
and lenders so everybody would
|get gifts. The appraiser entered
Ia questionable transaction in the
purchase Of q boat, borrowing
IS $1,000 from a builder doing bus
iness with the VA. House prices
were raised without justification.
Evening star., 1952-08-31
Polio Closes Cubun Schools

HAVANA, Aug. 80 R.-The
Government today announced
Cuba's public schools-scheduled
to open Monday-will remain
closed another month because of
an outbreak Of poliomyelitis.
Health authorities have recorded
234 cases this wear
Evening star., 1952-08-31
BY the Asscciuied Press

NORFOLK, Va. Aug. 3O.-Be-
cause Of reduced operating
budget, the National Production
Authority has closed its district
office here. The Norfolk district
Office services will be handled here
after by the Richmond regional
Staff.
Evening star., 1952-08-31
Insurance Owners Increase

NEW YORK.-Life insurance is
owned by SIS per cent of the United
States population today, compared
with 13 per cent ownership in
Norfolk NPA Office Closes
The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-04-18
Johnson Declares
candidacy For End
District Constable

Joe Johnson. local resident
well known in Key West and the
Florida Keys today announced
as candidacy for the office },
Constable IN the Second District,
Mr, johnson has had consider.
DAble experience II various public
offices. having served compe-
tently a. Clerk for the CITY 81
Key West, and Municipal Court
Clerk. during the years 1s4l
through l943. and Clerk for the
Board Of Public Works durinp
the year 1914.
In announcing his candidacy
for the position of Constable
md District, Mr. johnson states:
4 am keenly aware of the MANY
responsibilities and the great
Importance Of the office to which
] seek election. The constable
serving the public in this parti-
cular district has within his iur-
isdiction that entire area from
the Southeast side of Angela
Street, through Poinciana and
Boca Chica, to the toll gate at
Big Pine Key. This is truly
vitality important in the interests
Of public protection and repre-
SCENTS q great public trust. II
elected as Constable. humbly
pledge myself to always serve
the people Of Monroe County
faithfully and TO the best OF my
ability; ever striving to devote
the time and constant effort re-
quired in the enforcement of our
laws for the betterment and
welfare Of all.
! respectfully ask the careful
consideration Of each voter when
you 60 to the polls to cast your
vote for Constable, Second Dis
trict My lever number is IA.
paid Political Advt.)
The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-04-18
COrOners
Decide On
Stern Death
jury Consulis With
State Atty. L. Lester
On Cause Of Death
OF Miami Beach Man

State Attorney ]. Lancelot Les
ter will be consulted by the
coroners' Jury investigating the
death of Jack Stern in q fatal
crash two weeks ago. at 5 today.
Coroner Roy Hamlin said.
The decision of the jury ap-
pointed 10 inquire into the death
viii be made Immediately after
wards.
Stern. wealthy Miami Beach
hotel owner. who lived in
Brooklyn. was killed when his
automobile, driven by his auditor
Thomas Cohen. smashed near Big
Pine Key two weeks ago Sun
day.
Cohen had been warned verb
ally twenty minutes earlier by
Florida Highway patrolman Slim
Continued On Page Fisel
The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-04-18
Rotary Head
Names Armed
Forces Clllllll.
jeff knight, Jr. To
Work Out Cooperation
With Am. Legion On
May IL Parade Here
Sugar" Sweeting Photo

A Rotary Club committee
headed by jeff Knight, Jr. viii
decide on the kind of Rotary
participation in the American
Legion section Of the Armed
Forces Day Parade. May IL. il
was said at yesterdays weekly
Rotary Club luncheon at the
Parish House.
The Arthur Sawyer Post of the
American Legion invited the
Rotary to enter a float in the
parade. President Joe PearIman
appointed knight to head the
committee. Other members serv-
ing with knight are Paul Scher.
Warren Sawyer, and Harry M.
Baker.
w. Curry Harris reported on
the Monroe County spelling bee
to members. He served as a
judge for the contest represent
ing Rotary club. Harris not only
listed the winner, and officiating
adults, but recounted several
Continued On Page Five)
The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-04-18
Editors Cry Dictatorship
AT Truman Hint He Could
Seize Newspapers, Radio
HOPE FOR
WHITE HOUSE
CLARIFICATION
BY JACK RuTLEpcE

WASHINGTON R - Editors Of
leading American newspapers to-
day hoped for White House clari.
fication Of President Truman's
news conference remark which
implied he felt he had the right
10 seize newspapers and radio sta
tons. as he did the steel industry.
II It would best serve the country.
Some of the editors who were
among the $50 newsmen present
at the conference Thursday pro-
tested afterward that IL such pow.
er exists the nation is close TO
dictatorship.
The explosive issue was touched
off when the President was asked
this question:
IF II is proper to seize the steel
mills. can you in your opinion
seize the newspapers and radio
stations?"
Mr.. Truman replied that under
similar circumstances, the presi.
dent of the United States has "a
act for whatever is for the best
OF the country. That is the answer
he added.
Many editors promptly inter.
preied this as implying il not spe-
ciiically claiming. the power 10
seixe newspapers and radio sta
IONS as he seized the strike threat.
ened steel industry last week.
Reaction Of editors here attend.
ing the annual meeting Of the
American Society Of Newspaper
Editors tASNEl, many Of whom
were al the news conference
ranged from cries Of Dictatorship
Continued On Page Five,
The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-04-18

SUMMONS
STEEL MEN
Question OF Prices
Has 4 en- A kfy
Point Throughout
Six Month Dispute

WASHINGTON R--Top steel IN
dustry officials were summoned To-
day to the Office OF Secretary Of
Commerce Sawyer for possible
final conference before an expect
ed government imposed wage
for $50, 900 Go Steelworkers.
The steel company presidents.
facing an unprecedented situation
in the deadlocked wageprice dis
pute, were headed by Benjamin
Fairless, president of u. s. Steel
Corp. Sawyer also scheduled a
conference with Clio President
Philip Murray, head Of the Steel
workers Union. later.
A cloak Of secrecy was wrapped
tightly around all aspects OF the
situation.
Sawyer, nominal boss OF the
steel industry for the government,
has been in constant touch with
President Truman, il was learned.
The President said Thursday he
personally would make the final
decision on how much Of a wage
boost the Sieelworkers should get.
He made that statement after
Murray had said I'VE expect the
government viii impose on this
industry the Recommendations Of
the Wage Sterilization Board"
The Wage Board proposed . 3
stage I75zcent wage boost, ga
cents In fringe benefits and the
union shop-a form OF compulsory
Continued On Page Eighty
The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-04-18
Plans Are
Underway For
AID Parade
Ii. Col. Barrett And
II. Fabian VIII Serve
As Liason Officers

I, Plans are well underway for
the spectacular Armed Forces
Day Parade. Saturday, May nth.
with the slogan "Unity :
Strength Freedom, Post Com
mander Vance c. Stirrup, Ar
thur Sawyer Post No. 28, Amer
lean Legion, disclosed today.
The theme has a threefold
meaning: CD to demonstrate the
close working relationship of the
Services; CD to give the public a
broad view of the Nations de-
Tense strength; CD to emphssize
the democratic ideal to which
our efforts are dedicated.
1t Col. c. d. Barrett. Jr.
USMc and It. II. Fabian, USN
have been appointed by Captain
II. Payson, Jr.. Armed Forces
Day Project Officer. to serve as
Liaison Officers TO work v tn the
Legion's committee in making
plans for the parade. The Le-
gion's committee consists of
Judson Stephens; Anthony A.
Meigel: Francis q. PiodeIa:
Frank Romaguera; George Hans.
kat; and w. c. Murphree.
The American Legion will pre-
sent trophies to the prize win
ming floats and civilian march
ing units. The trophies will be
presented during the military
band concert al the Bayyiew
Park and are as follows:
Prettiest Float.
Funniest Float.
Float best depicting theme Of
parade.
Best civilian marching unit.
Inaamuch as the Armed Forces
are an integral part Of the COM
munity, the Legion's committee
has urged all civic groups and
business concerns 10 cooperate
by sponsoring floats, decorated
cars, and marching units.
The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-04-18
|bIiamii-Hayana
Boats Leave
City At lOP.M.
We're Due To Have
Reached Cuban
Capital Al 8 O'clock
This Morning

The cleaning. luxury cabin cruz
sers Of the Miami-Havana race
move into Key West yesterday af-
ternoon and pulled out again by 10
O'Clock last night under escort Of
me Coast Guard vessel Ariadne.
lney expected to reach the Gu
pan capital by 8 this morning in
me predicted log race.
some q the larger vessels could
not set IN the channel. Six Of the
racing yachts. however, tied up At
Gut Dock where they rushed to Re.
Iuel before their take off for Ha.
sana. Each yacht had to hurry to
Continued On Page Fivel