Evening star., 1954-04-28
Housing
Continued From First Page.)

revenue of 500 million a year
from FILA insurance premiums.
OF the program for insurance
of rental housing construction
under Title 608, Mr.. Greene de-
clared. "I cannot reconcile in my
own mind the differences be-
tween our appraisers estimates
and the actual construction
costs"
1t has been charged that such
differences permitted builders to
reap "windfall" profits as high
as $500 million.
He agreed with Chairman
Capehart that either the FHA
appraisers were wrong in many
estimates or that builders did
not follow the agreed-upon spe-
cif1cations.
Suggests Differences.
Mr.. Greene suggested that In
ternal Revenue Service figures
showing that 1,149 builders had
made windfall profits might be
based upon figures different from
those used by the FILA.
"As long as was there, I never
heard of any substantial differ
ence between our figures and ac-
tual costs"
He was asked if he knew why
Mr.. Powell had refused to testify
for fear of incrimination.
Il don't know why Mr.. Powell
refused to testify" Mr.. Greene
said. Presumably his attorney
advised him to take that course.
I was very sorry to see it,"
Would See Powell.
Senator Capehart wanted to
know who a builder would see
in Washington if he had felt
an FILA estimate was too low,
and wanted it increased.
If the builder came to Wash
ington," Mr.; Greene replied, "he
would go to see Mr.. Clyde
Powell. If Mr.. Powell thought
it should be increased. he would
consult the director of the un-
derwriting division. and the de-
cision would be made jointly"
Senator Byrd, in a letter,
called on Attorney General
Brownell "to bring to justice
any who may be criminaliy Ii
able" in the housing situation,
and ito recover. if possible, any
of the multi-million-dollar wind
falls realized by prohteers
through schemes developed un-
der any FHA programs
First I would suggest" Sena-
tor Byrd continued, immediate
legal proceedings against Clyde
Powell i. who. in my Judgment,
is the key official with respect
to the over-valuations of proper
ties under Section 608 (of the
housing law). resulting in wind
falls to the extent of 500 mil
lion or more.
In appearing before the Sen
ate Banking Committee, Mr..
Powell pleaded the Fifth Amend
ment. The newspapers carried
the story that the FILA investi-
cation was begun by the FBI as
result of large gambling losses
by a high FILA official. It has not
been officially publicized, but it
was Mr.. Powell whose losses in
gambling first attracted the at
tention of the FBI.
"As Mr.. Powell pleaded the
protection of the fifth amend
ment, he is beyond the power of
"a congressional committee to
compel him to testify, and the
Justice Department should take
action without delay"
Qult before Scandals Broke,
Mr.. Powell, who had charge
OF FILA insurance of projects on
which it is alleged builders made
huge profits, resigned a week
before the scandals broke. Hous-
ing officials have given up an
attempt to rescind acceptance of
his resignation. FILA said its
files now list Mr.. Powell as re-
moved with prejudice
Guy T. o. Hollyday, ousted as
FILA commissioner by President
Eisenhower when news of the
scandals broke, testified last
week that he turned over to the
Justice Department the case of
the alleged gambling official last