Evening star., 1955-10-24
Byrd Charges FILA
Is Lax on Windfa|Is'
Agency Falling
To Live Up to
Law, He Says

The Federal Housing Admins
tration was accused today by
Senator Byrd, Democrat Of Vir.
ginia, of failing to comply with
the law to prevent further
"windfall" profits to builders.
The Senator in a speech at o
luncheon Of the 68th annual
meeting of the American In-
stitute Of Accounts at the Statler
Hotel also opposed "a permanent
tax reduction based on present
boom conditions. f.
The institute began its four.
day convention with technical
meetings this morning.
About 1900 certified accounts
ants, from all over the country,
ARE participating in the annual
meeting. Wives Of
300 delegates are also in Wash.
iington for the event.
Lauds Andrews
Senator Byrd paid tribute TO
the retiring Commissioner Of the
Internal Revenue Service T. Cole
man Andrews, declaring he has
earned the Nations gratitude.
The Virginia Senator said last
week he received a letter from
Controller General Joseph Camp
bell. indicating FHA has not yet
initiated any of the audit work
required by the 1854 Housing
Act.
Reading excerpts from the
Controller Generals letter. SEN
ator Byrd said:
This statement is certainly
subject to the Interpretation
that the Federal Housing ADJ
ministration has not only failed
fully to comply with the intent
or letter of the law. but it seems
to say further that the agency,
nine months after the law was
Ienacted. had not concluded as
to how, or when or whether it
will conform"
Approves Suggestion
The Controller General, on
June 90, informed FILA that If IL
lacked personnel to audit the
cost certif1cations of mortgagors,
the auditing could be done by
FHA-approved independent cer-
titled public accountants, the
Senator said. The Senator ap-
Iproved the Controller Generals
suggestion that the FLA agree
ment and certif1cation form be
modified to require a mortgagor
to furnish FILA q statement Of
construction costs as certified by
q certified public accountant.
Your profession. perhaps
more than any other, works in
areas where public scandals may
Ibe disclosed, and therefore you
have not only professional in
Iterest. but professional RESPONSE
bility," Senator Byrd told his
luncheon audience of about L.
900.
There are those who contend
that FILA administrators had
both the responsibility and the
legal authority to prevent pre-
lvious housing scandals. It is cer-
Itainly fact that now, as pro-
lection against further scandals,
they have such authority as is
provided in the 1854 Housing
Act, and GAO investigations in
dicate they are not using it,"
Help Expose Practices
Senator Byrd has taken an
outstanding part in exposing
prior irregularities in awindfall"
profits to builders.
Turning to a discussion of tax
reduction, Senator Byrd told the
audience:
I am old-fashioned enough
to believe that we should begin
to pay off our debt as we have
always done in the past. Booms
and the depressions come and
go. but the debt always is with
us until it is paid"
Maurice H. STAINS, retiring
president of the institute. re.
Gently sworn in as Deputy Post.
master General, presided at the
luncheon.
This mornings sessions were
devoted to the Governments
Auditing Needs" under the
Craftsmanship of Theodore Herr,
Washington certified public ac-
countant. and Management
Services by CPA's," under the
Craftsmanship of Harold A. Mock
of Boston.
Commissioner Andrews, hirns
self a CPA and past president
of the institute, will preside
over this evenings session. This
will focus attention on Internal
Revenue Service Administration"
viii Present Awards
Tomorrow. the institute will
present awards for outstanding
service to the accounting pro-
fession. Lloyd Morey, certified
public accountant and president
emeritus of the University OF
Illinois, and Saul Levy, New
York CPA, will receive these
awards. Mr.. Morey is an au-
on accounting for uni
versities and Federal and munici-
pal governments. Mr.. Levy has
served as consultant to the con-
troller of New York City and as
vice chairman of the Mayors
Committee on Management Sur
vey and as trustee of the Citi-
zens' Budget Commission there.
Roy E. Larsen, president Of
Time, Inc, will be the luncheon
speaker tomorrow. His topic is:
Education: A New Responsible
ity for Business Leaders"
Election of officers also will be
held tomorrow.
As q