Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-15
Housing
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apply to the other five corpora
lions.
The questioning of Mr.. Gross
brought out that beginning with
land valued at 1881 1867 and $780,
600 invested in common stock,
IL corporations owned by Mr..
Gross and members of his fam
lily built the apartment project
with insured mortgages totaling
about $25 million.
Mr.. Gross consistently OBJ
jected that the statement that a
So million profit was made was
inaccurate. He did present a
statement which showed there
was a $4.774,725 balance after
the buildings were erected and
he said the corporations still own
the fee to the land which is
under 99-year lease.
He said the land is now valued
at $2,645, 900 and is mortgaged
for $2.4 million.
Levitt Is Witness.
The committee started its
hearing today with William j.
Levitt Of Levitt & Sons. Inc,
as a witness.
Mr.. Levitt told Of the erection
Of 5000 houses in Levittown,
Long Island. He said 4,028 of
the houses were built to be
rented by himself and his
brother, Alfred S. Levitt. who
formed the Bethpage Realty Co.
for the purpose. The federally
insured mortgages totaled $29
million.
He said that after the homes
were built there was 5,150, 900 in
the bank account Of the COM
pany. He said the company stock
was then sold to Junto, Inc, q
non-profit charitable organize
ton Of Pennsylvania with only
$4,000 In assets. Immediately
after the sale, he testified, the
purchasing company declared q
dividend of Bethpage assets and
used the funds as part payment.
He said the stock was sold at
SIS, $50 900 and that the money
could then be regarded as long,
term capital gains.
Bovard Out Today.
Concerning the firing of Mr..
Bovard as FILA general counsel,
Acting FILA Commissioner Ma
son said he would be removed
from Federal service at the close
of business today.
Mr.. Bovard could not be
reached today for comment on
his. custer.
Mr.. Bovard, 81, who drew $11,-
800 q year as counsel, was one
Of several FILA officials who
left the agency or came under
attack after the Senate began
probing operations under two
loan programs. He appeared be-
fore the investigating Senate
Banking Committee on July /.
He said he had not gone to
the FBI with reports of alleged
gambling by Mr.. Powell, former
assistant FILA commissioner for
renta housing. because he found
nothing to indicate a violation of
criminal laws.
Asked Redress.
Mr.. Powell filed yesterday q
petition for redress of griev-
ences." He acknowledged some
of the FBI reports on his alleged
arrest record, denied some and
gave explanations for others.
Mr.. Powell had been called be-
fore the committee some time
ago but refused to testify, invok-
ing his rights under the fifth
amendment. Senator Capehart
said today:
ut seems to me an individual
is going pretty far to accept en-
ployment of the people of the
United States and when the
people. by their elected repre-
sentatives, want to inquire into
his stewardship he does not
testify. He can come before this
committee at his convience to
deny or affirm politically what
he wants.
1T don't quite understand
what he Is trying to do. It looks
to me like 1t is part of an attack
on Congressional investigations. "