Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-12-19
Hear McShain

The subcommittee statement
was read by Representative
Dowdy. Democrat of Texas,
the chairman, after the group
heard builder John McShain
deny he ever agreed to be fl
nancial hacker of the project.
Asked by Committee Counsel
Hayden S. CARRIER whether he
had ever indicated that he
would guarantee equity CAPT.
tai" for the project, Mr.. Nc
Shain replied:
mo, it was never my nten-
ton, nor did I feel I had any
obligation to finance the prof.
ect. 1t was represented to me
no financing was needed and it
could be worked out with the
FILA and the banks"
Seek Funds Qualification
Mr.. CARRIER said the question
was designed to clarity the ac-
curacy of the Columbia Plaza
Corps representation, in its
redeveloper's statement of fl
nancial responsibility filed with
RIA October 20, 1861, that
John McShain, Inc. would fur
nish the necessary funds to
complete the project"
Subsequently, however, Mr..
McShain advanced funds now
totaling about S360,000. he
said, for architects plans. His
original intention, Mr.. Nc
Shain said, was to be only the
builder.
How he agreed to advance
the money, Mr.. McShain ex-
planned, could best be de-
scribed by saying I put in 10,
then another 10 to protect the
first 10 and then to save the 20
I put in another 20, and so on,
and I hoped that sooner or later
I would come out of the tunnel"
Sees Preferential Treatment
Chairman Dowdy, in his
statement of the impressions
of the committee at the whole
body of the testimony" said
preferential treatment" was
shown to Columbia Plaza Corp.
The degree" of such treat
ment shown to the firm as the
chosen instrument" raises "Se-
rious questions Of public pol
ICY" the statement said.
an any other area of con-
tractual relationships with gov
eminent agencies, the selecting
of a chosen instrument with
rules known only to such party,
accompanied by advice, counsel
and coaching to conclude an
agreement which dissipates
public funds would be labeled
collision or conspiracy"
Other Statements
The statement also said testi-
mony and documents:
/. Revealed actions which
raise substantial questions OF
legality and propriety."
2. Indicate clearly that slum
and blight did not exist to the
extent of 20 per cent"-a nee
eSSary percentage to qualify
the area as eligible for urban
renewal treatment.
8. Indicate that D. F. Anto-
nelli. ir., and Kingdom Gould,
jr., the original group owning
the bulk Of the land, was
thwarted in its efforts to be-
come a developer privately or
to be considered as a redevelop-
er under urban renewal proce-
dures."
4. Indicate establishment of
a policy governing land DISPOSE
ton in the project was clan
destine" and appears to the
committee to clearly indicate
subversion Of public powers
and processes for private pur-
poses"
5. Indicate Land appraisal
procedures used create many
questions of propriety."
6. Disclose that the develop
ment corporations maximum
net assets at any one time was
the $1,000 paid in for capital
stock"
No Legal Basis
Chairman Dowdy said that
at this point the committee
finds there was no legal basis
for establishing an urban re-
newal boundary, or for the sub
sequent approval of an urban
renewal project" and added:
THE facts of this case are of
such a character, and the is
sues so important. that this
committee believe Sthat the De-
partment of Justice should ex-
anime the record and take
such action as is necessary and
proper.
1.-THE Justice Department
may also be presented with the
question of accuracy of sworn
documents furnished to it in
connection with court actions
for the condemnation of prof.
aef orea lands -