Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-06-12
FILA Identifies
10 'WindfaII'
Profit Projects
Report Lists Five
In District Area;
Builders Explain
By Hector McLeun

ing and Home Finance Agency
administrator, has identified 70
apartment house projects in
sured by the Federal Housing
Observation-Disclosures nearly
half a dozen in the Washington
area-in which he said builders
had "windfall" profits.
He released a report. in which
more than 200 corporations were
named, from William F. Nc
Kenna, deputy Housing and
Home administrator, who is
handling one of several investi-
cations of the FILA.
Other probes are being pressed
by the Senate Banking Commit
tee, under the Craftsmanship Of
Senator Capehart, Republican,
of Indiana, and the Joint Com
nlittee on Reduction of Nones-
Sential Federal Expenditures
headed by Senator Byrd, Demo-
crat. of Virginia.
Referred to Justice Dept.
A Housing and Home state
ment quoted Mr.. McKenna as
saying all of the 10 cases are
being referred to the Justice
Department for such civil or
criminal proceedings as may be
indicated.
"WindfaH" profits. occurred
when builders constructed apart
ment developments for less than
the value of mortgages guaran-
teed by FILA under its Section
6O8 program which expired in
1852.
The Housing and Home state
ment said Mr.. McKenna's re-
port covered only the 608 cases
reviewed by investigators through
June 4, 1954-in which sponsors
had received windfalls of ap-
proximately $40 million.
OF this, the report said, $31.7
million had been distributed to
stockholders.
Other Profits Not in Report.
Mr.. McKenna said that in
many of the cases other very
substantial windfallS were real
lied which were not reflected in
his figures.
The report indicated the
Washington area projects had
windfalls of more than So mil
lion, resulting from investments
of less than $4,000.
The report said sponsors OF
the 70 projects invested $4,141,-
800, had got insured mortgages
of $277.593,50O, had built for
costs reported at $239,374,77O
and had total windfalls of $780,
539, 1888. Of this, the report said,
$31, 755, 900 had been distributed
to stockholders.
This investigation has already
demonstrated beyond question, u
Mr.. McKenna reported, that
certain promoters were aided
and guided by former top FILA
officials in the windfall prac-
tees"
The McKenna report listed
the name of the project, the
principals, paid-in capital stock,
mortgage loan, reported cost OF
project, windfall and amount OF
distribution of windfall.
Area Projects Listed.
In the Washington area ii
listed:
Parklands Manor, Inc, at 1925
Stanton road Sc, and named
the principals as Morris CAT
ritz, Edward Cafritz, Charles H
Purcell and Martin Atlas, all OF
Washington; capital, $15,155;
loan, $3,563, 900; cost, $3,011 500;
windfall. 1851, 500; distribution
$500, 600.
Idaho Terrace, Inc, at 3O4O
Idaho avenue NV; principals,
Albert Small and David Stern
of Washington; capital, $4,000;
loan, $1,750. 900; cost, 81, 495, 500;
Windfall. $50. 500: distribution
$121, 1923.
Hilltop House, Inc, 1475 Euclid
street NV, principals, Marvin
Millig of Washington, Louis jan
off, Chevy Chase, Nd. Charles
Englebach, Philadelphia, Albert
P. Dicker. David Georinson and
j. Svestka of washington; CAPT.
tai, $1,000; loan, $7S7,7O0; cost
$727, 700; windfall, $60,700; dis
tribution, $13,332
Gregory Estates No. /. 2. 3, 4,
Inc, Seat Pleasant. Md; princl-
pals, Robert H. Bailey of Farm
ingdale, N. Y. and Robert Greene
of Washington; capital. $500:
loan, $3,184. 900; cost. $3.176, 500;
windfall, $500; distribution
none.
Shirley-Duke Apis. Inc. 46OC
block of Duke street. Alexandria
principals, Bryan Gordon. jr., OF
Arlington, and N. j. Sonnenblick
New York City; capital $1,000;
(See HOUSING. Page A-2.)