Evening star., 1954-10-09
Capeharf Predicts
More Indictments
In Housing Scandals
By Francis P. DouqIos

The siX-month Senate investi-
CATION into scandals of Govern
ment-sponsored housing will
bring "a lot more" indictments.
Chairman Capehart of the Sem
ate Banking Committee said to-
day.
But before that occurs, the in
quiry faces a number OF unex-
planned circumstances.
Senator Capehart, who had
planned to wind up the hear
ings yesterday, scheduled a re-
sumption for November g. He
found some witnesses absent yes
terday on grounds of sickness.
with a number. of questions
dangling unanswered.
Staff to Continue Probe.
Meanwhile, he said, the COM
mittee and it's staff would con-
tinue investigations and get to
work on an interim report.
AS the hearing drew to a close
yesterday, Arthur M. Chaite.
Washington attorney, was being
questioned about $155,000 in
checks he was said to have re-
ceived from the builders of the
huge Woodner Apartments. He
said he had mo recollection" of
some of the checks. Senator
Capehart then broke in:
II see we are getting no place
here. I am going to have Cen
eral Accounting Office auditors
audit your books and then turn
the entire matter over to the
Internal Revenue Service and the
Justice Department"
Thanks From Chaite.
THANK you, Senator" Mr..
Chaite replied evenly.
The witness insisted he had
admitted receipt Of checks
amounting to $4,000 and had
paid income tax on them. He
also identified a check for $25 900
as one used to buy building lots
for Ian Woodner, head of the
Woodner interests. He main
tanned he had no recollection of
some others.
One case that appeared to
leave no unexplained angles con-
cerned the erection Of the Dis
trict Heights (Md.) Apartments,
financed by $780, 900 mortgages
guaranteed by the Federal Hous-
ing Administration.
DR.. S. Dewey Gottlieb, jovial
former dentist turned builder,
said he headed the corporation
sponsoring the project, and e
windfall of about 81 million was
realized.
He said about $4,000 was in
vested in race horses, but while
the purses were good, the horses
broke down. He said $4,000
went for what Committee
Counsel William Simon called a
"39-foot sea-going yacht"
Yacht Classification Denied.
DR.. Gottlieb said it was a
boat, not a yacht, and I'D hate
to go to sea in it," He said
Jockeys, horse trainers and en-
try clerks were entertained
aboard.
He testified he knew Clyde
L. Powell, ousted assistant COM
missioner of the FILA now under
grand jury investigation. He
went to Mr. Powell with prob
lens concerning the FILA, but
Mr.. Powell had not helphed him,
he declared. He denied he had
done any horse-race betting
with Mr.. Powell and that he had
given Mr.. Powell or any Govern
ment officials anything except
Christmas presents"
He described his acquaintance
with Mr. Powell as slight, but
he said once, when he encoun-
tered the FILA official in the
apartment building at $500 @
street NV, where DR.. Gott-
lieb lives, he invited Mr.. Powell
to his apartment for a drink and
Mr.. Powell stayed four hours.
One subpoenaed witness not
present because of sickness was
Richard Mccormack of Arling-
ton. Marshall Diggs, attorney of
1925 Connecticut avenue NV,
testified briefly he paid Mr.. Nc
Cormack $27, 500, half of the fees
received from IL clients in
terested in FHA financing under
the Defense Housing Act. Mr..
Diggs said no FILA commit
ments had been issued in any