Evening star., 1954-05-23
Cole Plans 10 Reveal
All FHA '0ffenses';
Balks at Byrd Bid
BY M. A.soeias.d Pres.


Federal Housing Chief Albert
M. Cole said yesterday his agency
plans to make full public dis
closure Of information relating
to irregularities and criminal
offenseS" in connection with loan
insurance scandals now under
investigation.
But to try to compile all the
information sought by Senate
probers now, Mr.. Cole said,
would result in completely dis
rupting our investigative sched-
ule."
ut is my sincere conviction, "
Mr.. Cole added, that to seriously
impede our investigative sched-
ule is not in the public inter-
est"
Mr.. Cole said he had received
from Senator Byrd, Democrat of
Virginia, "a series of IA letters
requesting detailed informa-
ton on the operations and reg
ulations Of the various FILA
mortgage insurance programs. -
Senator Byrd demanded publica-
ton of the names of those who
made "unconscionable profits"
Data Not Available.
Mr.. Cole said he had told Sem
ator Byrd that a large amount
of requested material already
had been furnished, but that
some of the data sought sis
either not presently available to
the agency or could be obtained
only by examination of individ-
ual records and books of lenders
throughout the country"
Mr.. Cole said he had offered
to make the agency's records
available to Senator Byrd's staff
and to assist in compiling the
additional information, but that
such information is beyond the
capacity Of this agency to obtain
and assemble within a reasonable
time without seriously impeding
our operations"
II fully agree" he said he
wrote Senator Byrd, that infor-
nation relating to costs, profits,
irregularities, and criminal Of
fenses should be exposed to pub
lie opinion. 1t is our intention
to make public the facts that
are developed and substantiated
as quickly as this can be done
without either prejudicing the
prosecution of culpable individ-
uals or subjecting the innocent to
unfair innuendoes.
This will include specifically
how and why loans which per-
mitted windfalls profits were in
sured and who was responsible
for such approvals and insur-
ance."
Senator Byrd is chairman OF
the Joint Committee on Reduc-
ton on Nom Essential Federal
Expenditures, which has been in
vestigating charges that apart
ment house builders reaped half
a billion dollars in "windfall'
profits from Government-inSured
up for Government-insured loans
Racketeers PrObed.
Also under study are charges
that home repair racketeers
bilked thousands of small home
owners by inducing them to sigr
up for Government-insureo
loans and then doing shoddy
work.
Senator Byrd called on Mr.
Cole yesterday to make public al
once the names of those who
have benefited from unconsci-
enable and unwarranted private
profit at public risk"
"You have been Housing and
Home Finance administrator
with responsibility to act since
March 9, 1858, Senator Byrc
wrote Mr.. Cole. "You have haC
knowledge of the situation
in view of your agreement that
the facts should be made public
it is incomprehensible to me that
at this late date, you should say
the Bureau of Internal Revenue is
still the principal source of your
information"
The Internal Revenue Service
started checking on apartment
house builders last year to de-
termine whether any tax frauds