Evening star., 1952-07-17
Housing Probers Plan.
One More Hearing on
VA Cases in Area

L W. SOAAVAAAAO AVo RA00S law bNUAVAUACG
of the Veterans administration S
Washington area housing Office,
with emphasis on price increases
the VA officials allowed.
| A lengthy session yesterday
brought out that the VA officials
often jumped the price of houses
after panels OF appraisers, made
up Of local real estate men, had
set what they considered reason
able prices. The date of the next
hearing has not been set yet.
Real estate men questioned
about their thoughts on this VA
practice were William w. NOLAN,
927 Fifteenth street NV; Peter j.
Hagan, 1906 Rhode Island avenue
NE. and James A. Carroll, Shore
ham Building. The three are
among those who do appraisal
work for the VA on a fee basis.
Not Advised of Changes.
Mr.. NOLAN said he had not been
advised of the changes made in
his appraisals of home values. He
added that he had learned of some
of them, however.
He said the changes apparently
followed a builder going to the VA
and putting up loud Squawk. He
added. Il don't have any reason to
believe there was collusion, only
errors"
Chairman league, of Texas.
asked Mr.. Nolan for suggestions
as to how the appraisal work of
the VA could be improved.
Mr.. NOLAN said the fees should
be raised first of all. He said that
at SIS an appraisal, q man must
cover lot Of ground to make a
days wages. He said the VA
officials should have the power to
change the appraisers report
within limits and under certain
conditions.
Couldn't Get Proper Staff.
Mr.. NOLAN pointed out that
during the past few years when
numbers of houses were being
purchased by veterans, the VA
didn't have the proper staff and
couldn't get a proper staff. This
led to part Of the trouble. he
added.
Builders who didn't know any,
thing about building were hiring
job superintendents who didn't
know anything about construc-
tion," Mr.. NOLAN said.
In addition, he continued. the
veteran had a poor attitude inl
expecting that everything be done
for him as it was in the Army.
The committee attempted toI
show q close relationship between
Joseph Kinsky. q real estate
broker with Offices at 1910 Ver-l
mont avenue NV, and Morganl
B. Callahan. VA regional loan
guarantee officer.
Admits Friendship.
Mr.. Callahan admitted he was
friendly with Mr.. Kinsky, but he
pointed out that. as a native and
a man who has been in the real
estate business himself, he has
hundreds Of friends in Washing
ton.
we know that" Mr.. league
said. But we find MIR. Kinsky
using your appraisers for ap-
praisals Of houses he was buying
There was enough there that we
felt we should look into it,"
Mr.. Callahan declared that his
affairs had been combed thorough
iy by the committee and that he
Is clear.
THAT is true" Mr.. league said
You are all right as far as that
Is concerned. Your financial deal
ings are as clean as anybody's on
earth can be. But what about the
veterans?"
Mr.. Callahan said his interest
always had been for the veterans
and the Government. Oliver
Meadows. stan counsel, broke in
with:
THE records show that prices
were raised on Mr.. Kinsky's pro-
pertieS with little or no justifi-
cation. He was able to come in
and get personal treatment at a |
time when you were rushed. He
got service in a day when other
people were waiting three to four
weeks"
Kinsky Defends Actions.
Mr.. Kmsky answered questions
on some of about 20 transactions
the committee had studied, He
defended his actions and profits.
One case. for instance, involved
a house in Cheverly, Md. This
particular house was appraised at
$17,500 by Mr.. Carroll. Later thel
appraisal was changed by Stephen
Barker. former VA chief appraiser,
to $19.950. and MIR. Kinsky sold
the house at q profit of some
So, 700.
Mr.. Carroll told the committee
he felt his appraisal was a true
value Of the house. He said that
because Of the site. it might have
cost more to build than the builder
expected but the costs did not
show in the value.
Mr.. Barker defended his change
OF the appraisal, saying the event.
ual buyer got q house at a rea-
sonable cost.
After the final committee ses-
sion later this week, the staff will
begin work on q report and rec
concentrations for changes in the
legislation governing the VA hous-
ing program.
IA .. n