Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-10-26

corporation. and the stock ha
to protect him." the subcommi
yesterday py Frank j. Luchs,
the corporations president.
The firm repeatedly has 10
stockholders.
Mr.. Luch's revelation came
in testimony in which he ex-
planned the ownership OF 7I2
per cent of the Columbia Plaza
Corp. stock by a s6,0OO-a-year
longtime Shannon & Luchs
secretary.
The Plaza Corporation was
designated two years ago by the
Redelevopmeht Land Agency
as developer of a $40 million,
8-acre Foggy Bottom urban re-
newal project.
Declared in Default
But last week RIA declared
the firm in default of per-
Torrance on its contract and
gave it so days to buy the land
for $5,481.263.
Mr.. Luchs, who is executive
vice president of the Shannon
& Luchs real estate firm, said
Us shares of Columbia Plaza
900 shares of stock had been
made available to Miss Marie
c. Edwards at 81 a share.
Mr.. Luehs said Miss Edwards
had been employed for 81 years
by the Shannon g. Luchs firm
and served as secretary both
/ to him and to William E. Shan
non, president of the firm, and
/ to their late fathers, who
founded the firm in 1906.
Providing stock to Miss Ed
wards was for the purpose of
giving her a more than-normal
pension, he indicated.
Tells of Other Purchase
Testifying earlier, Miss Ed
wards told the committee she
had also been enabled to buy
at 81 a share-10 per cent
Of the stock of the corporation
developing the $13 million Har-
bour Square Apartments, a
447-unit luxury cooperative
proposed for the Southwest
Washington renewal area.
Mr.. McShain is reported to
own go per cent of the stock
of that corporation, with 10
per cent each owned by Mr..
Shannon, Mr.. Luchs, James F.
Salkeld, salesman with the
Shannon & Luchs firm. and
Miss Edwards.
Miss Edwards said that, be-
sides the 81 a share paid for
her 100 shares of stock, she
put up about $500 as her
part of the $4,000 deposited
in cash by stockholders in the
corporation.
Regarding her Columbia
Plaza stock. Miss Edwards was
asked by Representative Sisk,
Democrat of California, wheth-
er she had signed over the
stock to anyone. She appeared
not to understand the question
fully, and John j. Wilson, gen.
eral counsel for Shannon &
Luchs, said it had been "as-
signed" to Mr.. McShain.
Luchs Is Called
Mr.. Wilson suggested the
subcommittee call Mr.. Luchs,
who had been subpoenaed but
who had not yet testified, to
explain the circumstances.
Called to the stand, Mr..
LuchS explained about the
escrow agreement and noted
that certain stockholders were
in the process of seeking to
transfer their stock.
D. F. Antonelli, jr., and
Kingdom Guold. original own
ers of much of the land in the
Columbia Plaza project area,
would receive all the stock, it
was explained, and Shannon
& Luchs would retain only a
contract to manage the prop
erty at a 5 per cent fee.
If this transfer were made
effective, it was indicated, Mr..
McShain and the Shannon &
LuchS group, including Miss
Edwards, would no longer be
stockholders.
Mr.. McShain repeatedly owns
more than 81 per cent of the
stock, while the Shannon &
Luchs group owns more than
80 per cent.
Rejects Transfer Idea
Last week the Redevelopment
Land Agency indicated stock
transfer would be unacceptable
to it.
An RIA spokesman said to-
day the agency requires that
if there is to be a transfer OF
as much as 10 per cent of stock
in a redevelopment corpora
ton the agency must be noti-
fled, except in the case of a
publicly held corporation.
''If there were to be sub
Stantial change in stock own
ership without our consent that
would be a breach of the con-
tract" he said.
RLA's position regarding the
Columbia Plaza Corp, he said,
is that if there is to be "a SUBJ
stantial stock transfer, it would
be better to call off the whole
thing and solicit new offers for
the land"