Evening star., 1954-12-20
Housing Trade
Hit as Sharing
Scandal Blame
Leaders Consistently
Denied WindfoIIs,'
Senators Report l..
By Froncis P. Douglas

Inc Senate BANKING COMMIT
tee. in releasing its report on
the Government housing pro-
gram scandals, said the organized
home building and financing in
dustries must share the blame
for the frauds and maladmini-
stration which the committee
disclosed. -...
while only a relatively few
members of the industry were
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"Windfoll" Apartment Tenonts Paying
Extra TO Boil Out Projects. Poee B-l
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involved in the irregularities"
the report stated, "the national
associations consistently acted to
protect this minority to the de-
triment of the honest majority Of
the industry.
"The industry consistently mis-
represented to Congress from
1912 through 1850 the existence
of Wrongdoing and, as a conse-
quence, also denied the Congress
the benefit of their expert
knowledge"
Powell Excoriated.
Criticism was aimed specifically
at the National Association of
Home Builders and the Mortgage
Bankers Association.
The home builders association
today asserted that not only does
1t not condone Wrongdoing but
that 1t offered the committee it's
cooperation in exposing any
wrongs.
A statement issued by r. G..
Hughes, president of the associ-
alton, taking issue with the re-
port, said
ITO the extent that the report
implies a wholesale con-
demnation of the home bGlding
industry and of the Federal
Housing Administrations thous-
ands of loyal and conscientious
employees, / must respectfully dis
agree with it.
ITO the extent that this report
may tend to create a public as
sumption of guilt against individ-
uals accused but not convicted
of fraud. I must take exception
to it.
Cooperation Declared.
"The National Association of
Home Builders does not and will
not condone any Wrongdoing by
persons in industry or govern
ment. The association stated that
position repeatedly and publicly
throughout the investigation and
it offered its full cooperation in
exposing and bringing to justice
any such wrongdoing. That offer
still stands.
THE written record will sub
stantiate the fact that this as
sociation repeatedly acted to
assist the Senate Banking and
Currency Committee in carrying
out it's stated detectives"
Mr.. Hughes cited examples of
such offers of help. He added
that on October 7 Senator Cape
hart publicly thanked him for
the associations cooperation.
The com m i tee excoriated
Clyde l.. Powell, who was ousted
as deputy Federal Housing
Administrator last April. 1t said
his record disclosed maladmini-
stration and dishonesty in
Government at it's worst"
Grand Jury Inquiry Under Way.
No program. the report stated.
could be expected to have been
honestly and efficiently admin
istered while headed by a man
such as Powell" His activities
are now under investigation by a
special grand jury.
The committee said it is diff
cult if not impossible to estimate
the total amount by which the
American people have been de-
frauded by the FHA program
Elsewhere it said:
THE sordid story of Clyde l.
Powell was one of the principa
reasons that an investigation OF
the FILA was necessary. The
complete scope of Powells ac-
tivities during his 20 years will
probably never become known.
The former deputy administra'
tor invoked the Fifth Amend.
ment when called to testify be.
fore the committee. The commit.
tee said one consequence of thi.
Is that builders who dealt with
him had the security of knowing
the Government would not learr
from him of their illegal opera
tions."
"No Dead CarcasseS."
Senator Sparkman. Democrat
of Alabama, member of The
committee. proposed today {