Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-08-09
Housing Probes
10 Reopen on
Two Fronts
Senators to Pursue
Woodner Financing
And Indiana Project
By Hector Mcleon

scandals tomorrow on two fronts.
The full Senate Banking Com
n1ittee, headed by Senator Cape
hart, Republican, of Indiana,
will meet at 10 am. in Room 301
of the Senate Office Building to
question relatives of Ian Wood
ner. Washington and New York
architect, about financing of the
Woodner Apartments at 1886
Sixteenth street NV.
At the same time, q special
subcommittee set up to investi-
gate the community facilities
program of the Housing and
Home Finance Agency will hold
a hearing in the Senate District
of Columbia Committee room on
a Lawrence, Ind, waterworks
loan.
Plans Are Surprise.
The decision to question Mr..
Woodner's former wife, Mrs.
Ruth Woodner. his brother, Max,
and his sister, Miss Beverly
Woodner, was a surprise out
growth of the architect-builder's
testimony last Wednesday. The
committee had planned, accord
ing to an announcement last
week. to hold no more hearings
in Washington until after re-
turning from a transcontinental
tour next October.
In another development yes
terday, Attorney General Brown
ell promised IAN announcement
this week" on further prosecution
by the Justice Department in the
Investigations of Federal Hous-
ing Administration operations.
Appearing on a television show
(CBS's Man of the Week.. he
said the way the law was drawn
makes it difficult for the depart
ment to act in cases of wind
fall" profits where builders
constructed apartment house
projects for less than the value
of the FHA-insured mortgage
loans and pocketed the differ
ence.
Have Not Given Up.
However, he declared, 1--WE
have not given up. We hope to
find some theory of equity under
which the Government may re-
cover" some of the profits in
volved.
Since Section sos" of the
Federal Housing Act, a postwar
program to stimulate apartment
construction, expired in 1850 and
the statute of limitations has
run on any violations committed
under it, he said, sit takes some
ingenuity to find action which
we may take"
The Attorney General said only
two 1908" cases are being prose-
cuted. In those, he added, the
Misrepresentation in applica-
lions for loans was so fraudulent"
that it was possible for the de-
partment to act.
In another field, though, he
said. the. department has had
more success. He declared 18
persons have been convicted of
violations under title I" of the
Housing Act, in which the FILA
guarantees loans to homeowners
for alterations or repairs on their
houses. There also are 102 pend
ing indictments, Mr.. Brownell
said, of which A are "active
cases."
In the Woodner case, Senate
probers indicated they want to
pursue the ultimate destination
of some $219, 900 in checks drawn
on the Jonathan Woodner Con-
struction Co. in February and
March of 1949 when the builder
was seeking an FILA mortgage
loan commitment for construc-
ton of The Woodner, 1,139-
apartment hotel unit overlook
ing Piney Branch parkway.
Testifying last Wednesday, Mr..
Woodner was unable to give the
Senate committee a detailed ac-
counting of the purpose for
which the checks were drawn.
Inch Divides Building.
Although the Housing Act
specified that apartment prof.
ects and their mortgages were to
be limited - to SIS million, Mr..
Woodner got two mortgages to-
falling $9,984, 800 on The Wood
ner. The building. he testified,
Is divided into two parts by q
one-inch space filled with soft
caulking material"
The checks involved were
drawn to the accounts of Mr.
Woodner and his wife and sister
and brother.
The community facilities
program. target of the second
Senate hearing tomorrow, was
set up to lend money for sewers
and waterworks to towns and
cities unable to finance ex-
pansions required by nearby de-
velopment of big Govbernment
projects.
The hearing tomorrow is ir
response to inSistent demands
Of William J. McGhee, Lawrence
Ind, photographer and former
unpaid member of the town
planning council.
Operating alone, he has but
tonholed lawmakers and news
papermen here for many weeks
to complain that Government
grants of $483, 906 and q loan
of $4,000 were improperly
issued to the town of Lawrence
and that the sewer and water
works expansion there could
have been done more cheaply
and efficiently by private enter
prise.
The special subcommittee,
composed of Senator's Bennett
Republican, of Utah: Bricker,
Republican. Of Ohio, and Bay
bank, Democrat. of South Caro-
lima. was set UP after Mr.. Nc
Ghee demanded that Senator