Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-21
bovard bIaInes /,
Firing on Cole !.
Power Grab
Ex-FHA Course! Suys
Thot He God Hollydoy
Opposed Agency Shift


The attorney for Burton G.
Bovard said today Mr.. Bovard
and another Government hous.
ing official lost their jobs be-
cause they opposed an attempted
power grab by Housing Admin
istrator Albert M. Cole.
Mr.. Cole could not be reached
Immediately for comment.
Attorney Clayton L. Burwell
has announced that Mr.. Bovard
will fight before the Civil Serv-
ice Commission his custer as
general counsel of the Federal
Housing Administration. a post
he had held since 1913. Mr.. Bur-
well has attributed Mr.. Bovard's
custer to political manipula-
tions" by Mr.. Cole.
The attorney made available
today a letter he said former
Housing Commissioner Guy T.
0. Hollyday had written Feb
ruary 10 to Sherman Adams,
assistant to President Eisen-
hover, saying Mr.. Cole had pro-
posed "abolishing" FILA and TAX
ing over its powers and those Of
other housing agencies.
Opposition Cited.
Mr.. Burwell said the clusters
of both Mr.. Hollyday and Mr..
Bovard stemmed from their
opposition to such a proposal
by Mr. Cole.
Since Mr.. Hollyday was dis
missed, Mr.. Burwell said in Q
statement, Mr.. Cole has "ac-
.complished all his detectives"
through a reorganization pro-
vided in a housing agency money
bill which became law June "a.
Mr.. Burwell said these powers
were written into the bill at
the last moment and without
hearings"
Mr.. Hollyday and Mr.. Bovard
are among more than half q
dozen key Federal housing off,
Gals who have been eased out
since the White House an
nounced on April IL the discov-
cry Of irregularities in the hous-
ing program. Mr.. Hollyday was
dismissed April IL, Mr.. Bovard
on July Is. .ii
Mr.. Cole said at the time
that Mr.. Hollyday was asked to
resign at FILA commissioner be-
cause he had known of abuses
in the housing program and had
not acted vigorously against
them. Mr.. Hollyday praised
President Eisenhower and said
he was switching his voting reg
istration from Democratic to
Republican. A
H0llyday in Europe.
His successor, Norman P. Ma
son, said in firing Mr.. Bovard
as FHA's general counsel that
Mr.. Bovard had not performed
satisfactorily as chief legal Of
ficer of the agency which in
sures construction mortgages.
Mr.. Hollyday. after his dis
missal. returned to a Baltimore
title guarantee company. His
Office there reported he lis on
vacation in Europe. An aide said,
however. that copies of Feb
ruary 10 letter from Mr.. Holly
day to Mr.. Adams had been
sent to Mr.. Burwell.
Mr.. Hollyday wrote Mr..
Adams, Mr.. Burwell said. that
he was very strongly opposed"
to a plan approved by Mr.. Cole
for recognizing Federal hous-
ing agencies because "the pro-
posed plan would deprive the
agencies Of the power to hire a
single employee, insure a single
mortgage, or perform even the
most mental act, except at the
direction of. by authority Of,
and in the name Of" Mr.. Cole.
Cole Heads Agencies.
Mr.. Cole is administrator Of
the Housing and Home Finance
Agency overall head of Federal
housing agencies. The HHFA
administrator in the past has
been policy chief only. leaving
administration to the separate
agencies beneath him.
Testimony regarding the prof.
ects--Quebec House at Connecti-
cut avenue and Quebec street
NV. and jefferson Village in
Falls Church, Ca.-was given by
c n arles Rose. Washington
builder.
So-called windfall profits,
which we're not illegal. we're
made when the builder of an
apartment project completed 1t
for less than the mortgage In
sured by the Federal Housing
Administration. The Senate
committee has been disclosing
just how profitable the FILA
rental housing program was to
some builders.
Ajax Made Profits.
In the erection OF Quebec
House. Mr.. Rose testified, the
mortgage amounted to $685., 900.
He said it was built by the Ajax
Construction Co. for $6,9l9, 1883.
and the remaining $685. 1886 was
distributed to stockholders. He
said the Ajax Co. made q profit
of 1924 1852.
Mr.. Rose said there were nine
corporations which sponsored
Jefferson village. He listed the
stockholders as himself, Is per
cent: Marshall Coyne. Is per
cent; Arthur Hamburger. Is per
cent. and Irving and Samuel
Rossoff. l2l2 per cent each N
He said the same stockholders
own the Ajax Construction Co.
and the Leland Construction Co.
The Leland Co.. he said. built
Jefferson Village.