Evening star., 1954-09-15
Campaigner Douglas
Protests Inference
In Housing Story
By Hector Mclean
Sfor Staff Correspondent

CHICAGO, Sept. 15.-Senate
housing problems, opening the
second of three days of hear
ings here, today found them
selves the center Of a skirmish
in the burgeoning Illinois polit-
ical campaign.
Senator Douglas, Democrat of
Illinois, a minority member of
the touring Senate Banking
Committee, headed by Senator
Capehart. Republican of Indi-
ana, protested against "unfa-
vorable inferences" to him in a
story which broke yesterday in
the Illinois press.
The story charged that Ferd
Kramer, Chicago real estate OPP
orator and builder, who has
written a letter to other build
ers seeking contributions to Sem
ator Douglas campaign fund,
was the sponsor of a luxurious
Lake Shore apartment house
constructed with a Government
insured mortgage.
SIS Million Higher
Testimony yesterday indicated
that while the builder had eSti-
mated slightly over ST million
as the cost of construction, the
Federal Housing Administration
had estimated the cost at S.
683, ,466-nearly 81. million high
er.
Senator Capehart, the only
member of the committee at the
Chicago hearings, wrote Senator
Douglas that it was incorrect to
intimate that the Illinois Demo-
crat--facing a reelection battle
In November-had anything
whatsoever to do with this prof.
ect."
This morning. Senator Cape
hart called Mr.. Kramer as the
first witness. The builder denied
charges that rents, which are
based on six and one-half per
cent of the FILA cost-estimate,
are $1,000 "a year higher than
they would have been if the FILA
had accepted his firms lower
calculations.
He insisted that the building
would not have been built if the
FILA had not allowed a rental of
$40 room a month.
Capehart Gives Views.
Senator Capehart contended
that FHA regulations limiting
rents to 6l2 per cent of the FHA's
cost estimate, led the Chicago
FHA Office TO everestimate con-
struction costs so that rents
would figure out high enough to
meet Mi. kramer's stipulation.
Later. the committee planned
to question Ian Woodner, Wash
ington and New York architect
builder about apartment projects
he constructed under the Wherry
Act at Chanute Field Air Force
Base. Rantoul, III.
Mr.. Woodner, who built the
swank Washington apartment
hotel bearing his name at 1886
Sixteenth street N,W..f sold four
of his other Washington area
apartment projects when he got
into financial difficulties at Cha
mute. He has .contended the
All Force ''wrongfully" seized the
properties earlier this year.
Powell Charge Heard.
Yesterday the committee heard
a former FILA official tell how
Clyde L. Powell, who resigned
under fire last April as assistant
FHA commissioner in charge of
rental housing, had lost $4,000
gambling at Virginia Beach and
got $4,000 from the builder of
an FHA-insTed apartment prof.
ect to make up the loss.
Frederick A. Van Patten said
his eX-boSS was a heavy gambler
who had once made a 81 500 bet
at the Laurel race track.
Mr.. Van Patten told another
story which he said occurred at
Mr.. PoWell's apartment in the
Sheraton Park Hotel. He was
there, he declared, with a promi-
nent Norfolk VA businessman
named Michael c. Wright when
a bookmaker arrived to tell Mr.
Powell about a sure thing" in a
horse race.
Said He Placed Bet.
Mr.. Van Patten said Mr.. Powell
placed a large bet on the horse
and then urged Mr.. Wright to
make a 81 800 bet on it, too.
Mr.. Wright refused. Mr.. Van
Patten said, declaring Clyde !
know your racket. You'll take