Evening star., 1954-08-27
Builder Reveals
$4,000 Made
Him s. Million
Another Describes
$1.8 Million Profit
On $27. 400 CopitoI
I BY the Associated Press

NEW YORK, Aug. 27.-A
Queens builder testified today
he made almost SIS million in
windfall profits on a $4,000
capital stock investment in Gov
ernment-insured apartment de-
velopments.
Harry L. Osias, the builder,
said he had not distributed any
of the profits from the excess
of the mortgages over his actual
costs and that he was trying to
arrange private mortgaging to
take the Government off the
hook"
He told his story to Senator
Bush, Republican, of Connecti-
cut. conducting one-man hear
ing for the Senate Banking and
Currency Committee into sus-
pected irregularities in Govern
ment-insured housing construc-
ton.
The witness said he formed 20
corporations to build five Queens
projects that cost $23,981, ,187 and
that he obtained Federal Hous-
ing Administration mortgages
totaling $27,473,5O0. Addition
ally, he received a mortgage pre-
MUM of $579,716.
Nearly $5 Million Total.
The land costs for the five
Queens projects totaled $642, 1886
and he received a land mortgage
of $1,449,960. William Simon,
chief committee counsel, said the
figures showed Mr.. Osias received
a total-windfall of $4,879,258.
The projects were identified as
the Kew Gardens Apartments;
Kew Gardens Hills; Kew Gar
dens Hills Apartments; Jackson
Apartments: and 1O2nd Street
Apartments.
Another builder, Israel Orlian,
OF Brooklyn, agreed with Mr..
Simon that he had invested $27,- :
400 in nine apartment projects
in New York and New Jersey
and wound up with $1,847, 600 in
his pocket"
Today's hearing session, the
last of four here until Sept. q,
opened with lawyer associated
in another windfall project fail
ing to appear with his books as
ordered.
Told of Lack of Records.
Attorney Abraham Traub of
Brooklyn had testified earlier
this week of frequent visits to
former Federal Housing Admin
istrator Clyde Powell.
He told Senator Bush, Repub-
lican, of Connecticut, conducting
a housing probe for the Senate
Banking and Currency Commit
tee, he did not have detailed
records of about $500,OOO in
checks he made out to "cash."
He was ordered to produce his
books today.
Senator Bush, after Mr..
Traub's name was called without
response, declared:
"We certainly intend to get the
books from Mr.. Traub and he
will be called to appear here
when the committee returns
September 27."
Payments to- Powell Denied.
Mr.. Traub was asked, during
his appearance earlier, whether
any of the money was paid to
Mr.. Powell. He declared en-
phatically that he never paid
bribes to Mr.. Powell or any one
else.
Committee lawyers said Mr..
Powell has refused to testify be-
fore the committee on the ground
of possible self elf-incrimination.
William H. Cook. a committee
investigator, testified today he
had searched fruitlessly for Mr..
.Traub late yesterday and last
night, in an effort to serve a
subpoena.
Senator Bush today issued a
statement for the record saving
that "racketeers" operating in
the home repair and improve
ment fields constitute only a
small minority on the fringe of
a very fine industry"
He said the National Associa-
tion of Building and Repair Con-
tractors had expressed concern
(See HOUSING, Page A-4.)