Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-17
Texas Oil Man 5 Son
Called 10 Testify in
Senate HousiingP Probe
By Froneis P. Douglas

/ Univ hNANAAdoOls JA.S oOA Vi
the money man controlling one
Of the fabulous Texas oil for
tunes. has been summoned to
| testify in the Senate investiga-
ton of housing scandals.
/ Chairman Capehart Of the
Senate Banking Committee said
Mr.. Murchison will testify on
Monday. Others summoned, the
chairman announced, are Link
| Cowan of Shawnee, Okla, David
Muss of San Antonio, Tex. and
Norman K. Winston of New
| York.
| Mr.. Murchison has been de-
scribed as one of the crack team
of financial brains handling his
fathers properties, which are
spread across the Nation. The
elder Murchison is said to count
! his millions by the hundreds.
Probing Windfall Profits.
! The Senate committee has
been investigating So-called
windfall profits realized by
builders of apartment projects
that cost less than the amounts
of mortgages guaranteed by the
Federal Housing Administration.
The builders pocketed the diff
ference.
William Simon. c m mite e
counsel, said the committee, on
Monday, will inquire into the
erection of the Billy Mitchell
Village project at San Antonio.
the Page Manor project at Day
ton and projects in New York.
Not all of the four have been
| interested in all of the projects.
| he said. Mr.. MurchiSon was said
to be identified with the project
at Dayton.
| FILA records list Mr.. Muss as
president Of Billy Mitchell VII
lage, Inc, and Mr.. Winston as
vice president. Those records
identify Mr.. MusS as a New
Yorker.
Investment $4,000.
William F. McKenna, deputy
administrator of the Housing and
Home Finance Agency, testified
before the committee, on June
% that FILA files disclosed that,
in 1949, that agency required
that the corporation include in
it's charter provision preventing
the distribution to stockhold
of any funds other than earn
ings. Capital investment in the
Billy Mitchell corporation was
put at $4,000.
According to Mr.. McKenna'S
statement, the corporation filed
a report in 1850. showing that
shortly after completion Of the
project the book value was
$3,588,175. But, he said, this
figure included an appreciation
Of at least $845, 845 for the pur-
pose Of creating an appraisal
surplus account"
He said dividends Of about
100000 were paid out Of the
proceeds of the loan, but FILA
took no action in the matter.
FILA is a subsidiary of the Hous-
ing and Home Finance Agency.
The final witness at yester-
days hearing was DR.. Daniel
GevinSon, who said he gave up
his Washington residence eight
months ago and now lives in
Florida. He testified he ran up
his assets from about $50 900 in
1947 to $1.981,186 at the end
Of last year.
Committee Counsel Simon said
DR.. Gevinson had been put on.
the stand to show the ease with
which the expired FILA program
for erection of rental housing
could be used profitably even
by persons with no previous ex-
perience with building, mortgage
financing or similar activities.
No WindfaII on s, He Says.
No windfall profits were in
volved in the six projects which
DR.. Gevinson and others .spon-
sored. He said the mortgages on
the six projects totaled $l3,374,-
400 and the costs were $685.
852.
He said the first project was
the Washington Circle Apart
| ments.
Another was the Hilltop House
at Fifteenth and Euclid streets
INV.
w. 8. Banks, Washington
builder, said the Huntington
Apartments in Fairfax County
were built at q cost Of $495, 208,
II NARvEY,S ~