Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-19
Defense Builder
Tells Of Hiring
5-percenter'
Suit Ended Work,
Dayton Job Official
Says at Senate Probe

The Senate Banking Com
mittee investigating housing
scandals today turned up testi-
mony that a builder of defense
housing hired a IS percenter'
who, he said. knew the ms and
outs of both the military and
the construction industry.
The witness was Link Cowan
of Shawnee, Okla, who is part
owner of company which
built the SIT million Page Manor
Apartments at Wright-patter-
son Field at Dayton, Ohio
Mr. Cowan was introduced to
the Senate committee by Sena-
tor Kerr, Democrat. of Okla
/ homa as lone of his States out
standing businessmen and citi..
zens." Mr.. Cowan testified the
IS percenter" had not been
coined when William Ready, a
former Army colonel, was re-
tanned. Mr.. Cowan said he dis
cussed the project with Mr..
Ready in the fall Of 1948 and
that the latter was retained as
a "liaison man" who did the
legwork involved in the Federal
Housing Administration apart
ment project
Didn't Get Dayton Job.
Mr.. Cowan was pressed by
Committee Chairman Capehart
about the hiring of Mr.. Ready
and explained that the former
colonel knew the Tins and outs
of construction work with the
Government. The witness ex-
planned that Mr.. Ready was to
get 5 per cent of the stock of
the corporation owning the prof.
ect and also per cent of any
profits on job he brought.
He said Mr.. Ready didn't even
obtain the Dayton job for the
builders and it was apparent
from further testimony that he
did not get the 5 per cent.
Questioning brought out that
Mr.. Ready finally sued Mr..
Cowan. The latter related that
his attorney said he had a thin
case" and brought up as one of
the defenses against suit that
the contract was against public
policy. He said he finally paid
Mr.. Ready $37 1000.
Senator Capehart said the
committee had been told that
under the law applying to de-
Tense housing = different from
ordinary rental housing-it was
impossible for builder to
mortgage out" that is, to build
project for less than the total
of the mortgage and pocket the
difference. The Senator said that
in the case of defense housing,
the mortgage was not supposed
to be for more than 80 per cent
of the cost, with the builder put
ting UP 10 per cent.
Mortgage Topped.
The second witness, David
Muss of San Antonio, Tex, tes-
titled, however, that the actual
Page Manor construction costs
were $16,613.439. while the mort
gage totaled $17,377,500. He said
about 100000 was made by the
building company, but he main
tanned mortgage money was not
distributed as profits.
He said the distribution was
made by having the owning cor
poration, Page Manor Manage
ment Corp, lend $908, 900 to the
Airway Construction Co., which
built the property. He said that
sum, in turn, was loaned to the
stockholders of Airway, who were
also STOCKHOLDERS OF Page Manor.
Senator Capehart said it was
his understanding that FILA
blocked such deals as having an
owning corporation make a con-
tract with another corporation
to build a defense housin g
project.
Mr.. Muss replied that with
rare exceptions, FILA forced
separate contracts for the build
ing work.
Mr.. Muss testified that the
stockholders were a Dallas cor
poration, which included Clint
Murchison, jr., and his brother
of Dallas, Mr.. Cowan and his
(See HOUSING, Page A-3.)