Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-11
Housing Inquiry
Resumes tomorrow
On Brooklyn Project
BY the Associated Press

BY The Associated Press
Senator'S investigating multi
million dollar postwar housing
irregularities win take testimony
tomorrow from one of the back
ers Of q Brooklyn On. Y.) apart
ment project built with q Gov
ernment-insured loan alleged to
have exceeded construction cost
by $3.5 million.
Chairman Capehart Of the Sen
ate Banking Committee identi-
fled the builder In a statement
yesterday as Fred G. Trump.
Senator Capehart said Mr.. Trump
is one Of I'VE Metropolitan New
York operators summoned to
lead of q tWo-week resumption
Of public hearings into housing
scandal charges.
To Return From Europe.
Senator Capehart's office also
confirmed receipt Of q cable
gram saying Norman K. Winston
of New York would cut short q
European vacation and return to
Nlis country next week for Ques-
tioning. Mr.. Winston said he felt
Senator Capehart had been mis-
informed in saying he went
abroad in circumstances which
made 1t appear he was trying
to avoid being questioned"
Senator Capehart has said Mr..
Winston was a stakeholder in a
corporation that built Billy
Mitchell Village, Inc, in San
! Antonio, Tex. with q Govern
ment-insured loan that Is on
the committees Investigation
list.
Mr.: Trump has been identified
by William p. McKenna, hired
by. the Housing and Home FL
nance Agency to head a special
scandal cleanup squad, as a
principal" in Beach Haven
! Apartments, Inc. in Brooklyn.
McKenna's Testimony.
Mr.. McKenna testified several
weeks ago that loans to, build
the project, guaranteed by the
Federal Housing Administration,
exceeded the cost by $3.5 mill
lion. In addition, Mr.. McKenna
testified, lover 81 million in
rents were collected before the
first payment had to be made
on the mortgage. partly be
cause permission to commence
construction In advance Of loan
closing was granted without re-
quiring that the first principal
payment be advanced"
Mr.. sMcKenna said that ac-
cording to FILA records, Mr..
Trump and william Tomasello,
whose address was not given.
were "the principals of this
project"
Mr.. Tomasello was not on the
list Of witnesses announced yes
terday.
Mr.. McKenna indicated the
sponsors total investment in
cash was $4,000.
Extra Funds for Probe.
Senator Capehart said in an in
terview he probably will take up
with the Senate this week the
question of obtaining an extra
$500. 900 for the housing probe.
The Senate already has voted
his committee $780, 900.
The Indiana Republican de-
slared himself absolutely amazed
and aghast" what he called "the
incredible way the FILA handled
this program" He said he would
need several score investigators
ITO do the kind Of q feportinf
job the American people should
get on this fantastic situation"
"Windfall" profits in the ex'
pired postwar apartment-proj.
ect program and existing pro.
grams also under study, resulted
from Government-insured loan.
exceeding construction costs. TIL,
difference allegedly was pocketec
by the sponsor or builder O.
the project in some cases, ant
rents were set to meet the amorti
zation costs Of the swollen loan:
rather than the actual construc.
ton cost.