Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-02
Indiana Banker
Says FHAMan
Shared in Deal
Lond VuIue Rose
After Official Was
Guest Probe Told


After Official W.us
Guest Probe Told
An Indiana mortgage banker
told today of participating in
the building of an apartment
house financed by a Federal
Housing Administration guaran-
teed loan and that the state FILA
director was part owner.
Charles H. Glueck of Gary.
president of the Mid-City In
vestments Co., also told the
Senate Banking Committee he
paid for a Florida trip for man
described as "chief evaluator"
for the FILA. Questioning linked
this trip with an increased valu-
alton of land for an apartment
house from $500 to $4,000.
Mr.. Glueck also testified that
his father and he bought land
for about" $4,000. The land
later was the chief asset, to-
gether with FILA loan commit
ments for apartment projects,
which were sold for $3.50, 900.
MIR. Glueck was the latest wit
ness in the Senate Committees
investigation of the FILA and
the windfall profits which were
made under the agency's Sec
ton sos program of financing
rental apartments. Windfall |
profits occurred under the 1908" |
program. which expired in 1851, |
when builders "mortgaged out"
by constructing apartment prof.
ects for less than the value of |
FHA-insured mortgage loans.
Ferguson Blasts Democrats.
The Indiana State director was
the late r. Earl Peters, who had |
formerly been the Democratic |
State committeeman. Mr.. Glu-
eek described him as a long time |
friend and insisted their deal
ings were just the result of |
friendship.
In another development today,
Senator Ferguson. Republican, Of |
Michigan, said that blame for
the Outrageous situation" dis
closed in the FILA investigation
lay squarely on the Democrats.
He said he could not understand
the failure of the previous adj
ministration" to expose the scan
dals.
The structure in which Mr..
Peters had an interest was the
Florida apartments at Fort
Wayne. Ind, according to Mr..
Glueck's testimony. It was a
$4,000 project with some 40
to IS units.
Mr.. Glueck testified he and
Mr.. Peters each had put $500
into the project and that he
later sold his half-interest to
Mr.. Peters for $500. When he
was questioned why in view of
his propensity to profit by other
deals he had not sought a profit
in this one, he replied that he
wanted his money out and Mr..
Peters was a friend of many,
many years."
Occupied Penthouses.
He insisted it was not because
Mr.. Peters was also FILA State
director.
When the building was COM
pleted he and Mr.. Peters oc-
cupied adjoining penthouse
apartments in it. Mr.. Glueck
then insisted he had not paid for
the furniture in Mr.. Peters
apartment but said that he (Mr.
'Glueck) had helped select it.
MIR. Glueck said the furniture
store, an Indianapolis company,
had enormously billed his COM
pany for the furniture for both
apartments. He said a letter was
written to the store asking that
the bills be separated. Mr..
Glueck said a check was finally
sent to the furniture company
for $3,718 covering the furniture
from his apartment and that
$2,629 was paid by Mrs. Peters.
Mr.. Peters had died in the mean
time.
Company Suspended in '52.
The furniture was paid for in
June, 1852, although it had been
bought about II months earlier.
according to the witness. It was
brought out that in 1852 Mr..
Glueck's company was suspended
and no more loan applications
were received from it by FILA.
Then, Mr.. Glueck resigned as
president and was out for three
months as the result of FILA &C
ton.
Questioning tried to bring out
that this FILA action might have
been responsible for the pay
ments at that time for the fur
niture, but Mr.. Glueck said his
company had frequently tried to
get the furniture store to correct
the bill earlier.
The guest on the Florida trip.
MIR. Glueck testified. was James
Swan. Mr.. Glueck said he paid
the round-trip expenses of MIR. /,