The Key West Citizen Newspaper, September 11, 1954, Page 8

FHA Takes Ste ps To Recover “Windfall” Housing Millions By STERLING F. GREEN WASHINGTON (#—The Federal Housing Administration today took its first direct. step toward claim- ing for the government millions of dollars in ‘“‘windfall” housing profits. - Acting in the case of the big Linwood Park Apartment project near Ft. Lee, N. J., the FHA ignored a threatened court fight against the first of several moves aimed at compelling “windfall” re- cipients to return money they made on inflated government-backed con- struction loans. Investigations by government housing officials and the Senate Banking Committee have revealed some builders used a now-expired post-war apartment program to get FHA-insured mortgage loans far in excess of actual construction costs. Some pocketed the difference, net- ting profits labeled as “windfalls” by the probers. The FHA called a special meet- ing for Sept. 22 of preferred stock- holders of 13 corporations which comprise Linwood Park, Inc, The agency said it intends to remove the project’s present directors and elect new ones as a first step in recovering $2,426,821 in alleged “windfall” profits gleaned from FHA-insured loans by which the Project was financed. If it can make recovery in the Linwood Park case, the FHA has said it will try to claim the buik of more than 40° million dollars allegedly distributed as profits by building corporations across the country under the apartment con- struction program which expired in 1950,, The special meeting will be held in the corporation offices at Hack- ensack, N.J. It was called by FHA Commissioner Norman P.* Mason through an advertisement in a Hackensack newspaper. In effect, FHA was calling it- self into a meeting, since the agency owns all the preferred stock in the corporations. FHA employes will represent the agency at the meeting. Mason acted after Sidney Sarner, President of Linwood, refused to call the meeting as FHA requested Aug. 28. FHA said an attorney represent- ing the 13 corporations has notified Mason by letter that court proceed- ‘ings will be started to bar FHA from holding the stockholders meeting. FHA contends the “windfall” funds were distributed in viola- tion of the project’s charter—that only earned income could be dis- tributed among the common stock- holders. The agency alleges that} Linwood Park sponsors obtained FHA-insured loans totaling $8,875,- 000, but actually spent only $6,- 662,500 on the project and distrib- buted the rest. In a letter to Sarner “directing” that the special meeting be called, Mason charged that Linwood Park had violated its charter in these four ways: It engaged in business other than the construction or operation of a rental housing project by making loans to other corporations con- trolled by the same. persons who ¢ontrol Linwood Park, It redeemed portions of its com- mon stock without FH approval. It failed to furnish data on build- ing costs and other information wequested by FHA during the in- vestigation into. alleged housing abuses, Acting without prior FHA ap- Proval, it compelled tenants ta pay a charge for the project’s tele- vision antennas and garage use, even though tenants may not have owned automobiles or television * gets. HEROIC EFFORT OF (Continuea From Page One) Norfolk, Va. “If Baker had not got the wheel down we would have had to make a kind of landing with only a slim hope of success. “We planned to crowd everybody apart from the pilot into the tail in an attempt to keep the ship from nosing over. With luck we wouid have gotten away with it. But we would almost certainly have wrecked the plane.” Lt. Hiser, of Bradner, Ohio, said Baker will be recommended for a military award for his daring ac- tion. But Baker said it was “nothing worth mentioning. After all, it’s | my job. I only did what I was! supposed to do.” Baker has a wife, June, and an| 18-month-old daughter at the Jack-| sonville base. | J. C. DISTRICT LEADER | (Continued from Page One) with the sorority, Beta Sigma Phi, | had been very successful. He said | that he had collected over $300 with | more money to come in. | Billy Osterhoudt told the Jaycees | that the meeting would be his last | for a while because he was return- ing to college in Tallahassee. He| ex ressed appreciation for fellow | st» and good times had while he has been an active member in the Jocal club. He said that he is look- ing forward to the time that he returns and becomes active in the | daycees again. | The secretary of the club added @ humorous note by telling Oster- | Civil Service Exams Set For Stenos, Typists The Fifth U. S. Civil Service Re- gion has announced an examina- tion to fill stenographer and typ- ist positions, Starting salaries for stenographers are from $2,750 to $3,175 and for typists from $2,500 to $2,950, All applicants must pass a writ- ten test. No experience is requir- ed for positions paying $2,500 and $2,750. However, applicants for the higher grade positions must have had certain experience in addition to passing, the written test. Intrested persons may secure ap- plications forms’ or information as to where such forms are available at any Post Office or the fifth U. S. Civil Service regional office, 5 Forsyth Street, N, W., Atlanta, Georgia. The : Weatherman Sa Key West and Vicinity: Fair weather with little change in tem- perature thru Sunday except for the chance of widely scattered showers or thundershowers Sun- day. Gentle to moderate variable winds becoming easterly Sunday. Low tonight about 77, high Sunday afternoon 90 - 92. Florida: Clear to partly cloudy thru Sunday except for a few wide- ly scattered afternoon thunder- showers. Not quite so warm ex- treme north portion Sunday, other wise little change in temperatures. Jacksonvile thru the Florida Straits and East Gulf: Gentle to moderate winds, westerly over north portion and southeasterly ov- er south portion this afternoon and tonight. Sunday gentle to mod- erate variable winds south portion and moderate northerly north por- tion. Fair except few widely scat- tered showers or thundershowers. Western Caribbean: Gentle to moderate variable, mostly easter- ly winds thru Sunday. Partly clou- dy with widely scattered showers, except’ more numerous showers northwest portion. Weather Summary for the Tro- pieal Atlantic, Caribbean Sea_and Eastern Gulf of Mexico: Weather bed conditions from the Eastern Gulf eastward thru the tropical Atlan- tic area remain quiet today. Observation Taken at Post Office Building, 7:00 A.M., EST, Key West. Fla., Sept. 11, 1954 Temperatures Highest yesterday 2 _____— 9 Lowest last night _ Mean Normal 75 84 83 x Precipitation Total last 24 hours ___ 0.00 ins. Total this month ______ 1.34 ins. Deficiency this month _ .58 ins. Total this year —29.26 ins. Excess. this year ____ 4.45 ins. Relative Humidity, 7 A.M. 81% Barometer (Sea Level), 7 A.M. 29.90 ins.—1012.5 mbs, Tomorrow's Almanac Sunrise __. Sunset Moonrise Moonset —___ Full Moon TOMORROW TIDES (Naval Base) Time of Height of Tide high water eee . 6:21 p.m. 5:52 a.m. — Sept. 12 Station— High Tides 9:16 a.m, 9:33 p.m. ADDITIONAL TIDE DATA Reference Station: Key West Bahia Honda (bridge) .....—oh 10m (east end) ...+-2h 20m Boca Chica Sandy Pt. —oh 4m No Name Key Caldes Channel (north end) 9.0 tt +%h 10m +1.4 ft. (—)—Minus sign: Corrections to be subtracted. (+)—Plus sign: Corrections to be added. AF Tells Which Units Will Move TOKYO #—The Far East Air Force today identified four units whose withdrawal from Korea will be completed this year. The four, all bomber or fighter- bomber wings, will move to Japan, Okinawa and the Philippines. They are: The 3rd Light Bomb Wing. The 17th Light Bomb Wing. The 8th Fighter-Bomber Wing. Headquarters of the 18th Fight- er-Bomber~ Wing, to Clark Air Force Base in the Philippines. Two tactical “squadrons and support DEATHS MRS. CLARA LUISA MACHIN Mrs. Clara Luisa Machin, 72, died last night at 10 o’clock at Galey Memorial Hospital after a long illness. Funeral services will be held Sunday afternoon at 5 o'clock at the El Salvador Methodist Church. The Rev. Manuel Figueroa will officiate at the services. The body will be placed in the church at 2 p.m. Lopez Funeral Home is in charge of arrangements. Survivors include three daugh- ters, Mrs. Angeline Pineda, Key West, Mrs, Nelda Cabrera, Deader Falls, Pa., and Mrs. Martha Perez, Key West; six sons, Armando, Louis, Alfred, Joseph, Charles, and George; two sisters, Mrs. Concha Ruiz, Miami, and Mrs. Rosa Papy, Tampa; and numerous grandchil- dren and great grandchildren. MISS FANNIE S. CURTIS Miss Fannie S. Curtis, a resi- dent of Washington, D. C., died last night at the Monroe General Hospital. Miss Curtis was born in Rose- ville, Va., Sept, 19, 1894. She is survived by three sisters, Mrs. Mary James of Morrisville, Va., Mrs. Eva C. Helm of Wash- ington, D. C., and Mrs. Olive J. Wigfield of Key West; a brother, L.R. R. Curtis of Fredericksburg, Va. The body. will lie in state in the Chapel of Pritchard Funeral Home Sunday evening from 5:00 until 10:00 p.m. Funeral services and burial will be in Fredericks- burg, Va. - HURRICANE BLASTS ‘Continued from Page One) cut @ad Rhode Island long before the storm was due. Everywhere people recalled the fury of the 1938 New England hur- Ticane which piled up tidal waves that swept over lowlands with a loss of hundreds of lives. East Of Atlantic City In Atlantic City, where Miss America of 1954 is to be picked tonight, 60-mile-an hour winds buf- feted the beaches at 8:30 a.m. At that hour the center of the storm was 100 miles due east of the re- sort city. Flights to and from New York’s LaGuardia field were canceled. Many civilian as well as all mili- tary planes have been dispersed from the northeast’s danger zone —some as far west as Ohio. Red Cross headquarters in Wash- ington said it had prepared the largest mobilization since the 1938 hurricane. It has 59 émergency shel open in New England, 43 “them in. Rhode Island. ‘|g Beaches Deserted ~ Hibtels were crowded all along the coast, as householders deserted their beachfront homes. The largest ; hotel in New Bedford, Mass., mag led as early as last evening. This pattern was repeated thrpughout southern New England, Some trains to tHe Boston and |i Cape Cod areas were canceled by the New Haven Railroad which de- clined to move passengers into that danger zone. The alert extended all the way along the coast to Maine—and even to Halifax, Nova Scotia, where vessels scurried for port. Edna’s Destiny The destiny of Hurricane Edna— the season’s fifth hurricane and named after the fifth letter of the alphabet—still was in doubt in midmorning. Time would tell whether she was the worst hurri- cane of the year. Certainly she was the best advertised. Perhaps smarting under criti- cism that it didn’t give enough advance warning of hurricane Car- ol, the Weather Bureau from Mi- ami to Maine bore down on Edna. Bulletins moved out from all coast- al bureaus with alacrity. Recon- naissance planes penetrated to the calm eye of the storm to chart its speed and course. The Coast Guard kept its boats and planes on a ready basis. Civil | j defense authorities in New Eng- land were ‘keyed for action. Fishing fleets and small boats sought cover far in advance of the hurricane .track. Ships at sea put into port or changed course, » McEWEN EXPECTS TO (Continued trom Baze One) missioners to resign and turn over district assets to the state road department. In the past, however, the inclina- tion of the commissioners has been to hang on until the status of an estimated 10-million dollars in Keys land ownership has been de- j cided. The commission claims the land should revert to Monroe County un- der the provisions of a local bill. The state road department says the state should get the land under the terms of a 1946 operating a- greement. BANKER DIES LOS ANGELES ® — Death has taken Bernard Giannini, nephew of the late A. P. Giannini who found- ed the Bank of America. Giannini, himself a vice president of. the bank, died in a hospital yesterday at 43, | The chances that a U.S. child oudt that the local club would be | units of the 18th will be stationed will have poliomyelitis before he Bape to receive bis dues by mau., % on Okinawa. iis 20 years.old are about 1 in a > & Page 8 THE KEY WEST CITIZEN Seturday, September 11, 1954 IT 18 WITH REGRET—With this statement, Chief Engineman George Rand (center) closed out 20 years’ naval service Friday - Rand was chief of the boat on the submarine Trutta he departed from the boat he was presented with a chest from the crew. to He and his wife and children New Haven, Conn., where the chief will make civilian home—Official U.S. Navy Photo. NEWS WASHINGTON (#—The Federal Housing Administration today an- nounced the firing of Andrew Frost, its assistant state director for New Mexico who was accused of accepting favors — inchiding “girlie parties” — from building contractors. Frost, 43, was suspended in June and has been on leave pending disposition of charges. He refused to answer Senate Banking Committee questions about fishing trips and parties al- legedly given him by contractors doing business under FHA-insured loans. PARIS #—Brig. Gen. Christian de Castries, who returned to Paris incognito yesterday, received some 30 reporters and photographers to- day. But he refused to make any statement on the fall of Dien Bien Phu before he has reported to the French government. On the roles of his soldiers .in the battle, De Castries.said.“‘they fought like heroes.” De Castries said he plans te go back to Hanoi and Saigon in about 10 days. He will then come back “officially” to Paris. LOS ANGELES wW—A New York bus driver walked into a police station yesterday and surrendered on a charge of illegally transport- a Greyhound bus from New ‘ork to Cleveland, Carleton H. Wareham, 45, was quoted by the FBI as saying he abandoned the bus when it ran out of gas in the Ohio city last Sunday. Wareham was ordered held under $2,500 bond pending removal to New York. He told the U.S. com- LOCAL GROUPS AID (Continued From Page One) in all of your actions: “It isn’t the RIGHT way if it isn't SAFE!” Fifty dollars will be given in prizes to students of local schools. This money will be awarded to the winning essay on the subject: “Why Be Safe?” Firms Denate Following is a list of business firms which have donated money to be used during Safety Week: Coco Cola Bottling. . .$25 Safety schedule is being arranged for him to speak to as many groups as Possible. Any organization interest- ed in hearing Gillette should con- tact this writer at The Citizen. Already scheduled are the: Kiwanis Club, Sept. ai, at the La Concha Hotel. zs Junior Chamber of Commerce, Sept. 22, at the JayCee Clubhouse. American Legion, Sept. 22, at the Legion Clubhouse. Rotary Club, Sept. 28, at the La Concha Hotel. Poinciana School, Grades 4 5, and 6, afternoon of Sept. 23. Lions Club, Sept. @3, at the Lions Den on Seminary St. Main Emphasis During this first Safety Week, practically all emphasis is being Placed on traffic accident preven- tion. The Key West Safety Coun- cil is rightfully divided up into sev- eral departments: traffic, school, home, industrial, fire, and water safety. The Council feels it is bet- ter to devote all its energy toward one job rather than Jose its effec- tiveness by pushing too many pro- jects at the same time, however. As the Council grows, it will tac- kle other fields. é Monday, we'll tell a few of the plans concerning selection of a Sa- fety Queen, bouquets of flowers for the living, and how the Council ‘tragic wrecks, _ plans to offer visible evidence of A BRIEFS missioner he had been drinking | and decided to go for a trip. ST. LOUIS #—“You get the hell out of here.” This command, amplified over a public address system, yesterday | frightened an armed holdup man enough to make him flee empty handed from the Lynn Food Mark- ets Inc. Mrs. Betty Proctor, 50-year-old cashier at the store, shouted the command into the speaker system when she was unable to get to the holdup alarm button after the bandit demanded she turn over the money. INDEPENDENCE, Mo. (#—Mar- garet Truman is at the home of her parents, former President and Mrs. Harry S. Truman, for a two- week visit. Miss Truman arrived here Thursday night after a 10-week appearance in “Autumn Crocus” which ended in Philadelphia last Saturday. From here she will go to New York to fill television com- mitments, TAIPEH, Formosa #—National- ist China said today it has given refuge to six Russian seamen from the seized Soviet tanker Tuapse who asked spontaneously for polit- ical asylum. announcement said more members of the 52-men crew are expected to seek refuge here. The six seamen granted political asylum by President Chiang Kai- shek were identified as former members of the Communist party or Communist youth organizations in Russia. Eden To Confer On Plans For German Rearming LONDON # — British Foreign Secretary Anthony Eden flew to Brussels today to begin talks with aa arm West Germany. Eden will visit four West Eu- ropean capitals and corfer with the foreign ministers of belgium, Hol- land, Luxembourg, Italy, Germany and France. Eden told newsmen that he was not earrying “any grand new pa- West 1 2-Year Pact Westinghouse Workers Sign PITTSBURGH ( — A new two-| year contract, signed three hours | before a midnight deadline, is in effect today for members of the CIO International Union of Elec- |trical Workers at 26 Westinghouse | |Electrie Corp. plants across the | country. The agreement grants wage and salary increases of “‘approximate-| jly five cents an hour” and im-} Proved pensions to 42,000 union members, the corporation said. Rates under the old contract were not revealed. The wage hikes are retroactive to July 1, the day the old contract expired. The agreement is in force until Oct. 15, 1956. A re-opener clause permits 30 days of bargain- ing on wages between Sept. 15 and Nov. 15, 1955. Salaried employes represented by the union will get raises of $1.40 to $2.80 a week. The corporation said raises for hourly employes range from 3% to 7 cents an hour. Westinghouse said increased pen- sion benefits provide a company pension of $5$ a month, which add- ed to social security payments, give an employe retiring after 30 years service a total pension of at least $159.50 a month. The new pension plan becomes. effective Nov. 1, 1954. : The agreement last night capped three days of intensive negotiations set up by the U.S. mediation and conciliation service. The union had asked for a 12- month contract and retroactivity to July 1. The company earlier sug- gested Aug. 1 retroactivity and a 15% month agreement. The union has no immediate comment on the pact. Ike Can Still Relax, But It’s Real Job Now By MARVIN L. ARROWSMITH DENVER (®—President Eisen- hower is having to work at relax- ing these days, which for him is something new. All during the last dozen years through all the high tension of World War II, the building of the North Atlantic Treaty organization and then the presidency, Eisen- hower’s knack of being able to “get away from it all” for a few hours has amazed his friends, They have told time and again of how while on the golf course, for example, he seemed to be abie to forget completely for 18 holes all the troubles of the day. And those who watched him in a Colorado trout stream just two weeks ago could almost see his worries over world problems slip away for the time being. Such things as golf and fishing and bridge and an hour with his easel and oil paints. still relax the President, and he has been turn- ing to all of these hobbies: since he arrived in Colorado for a work and play vacation Aug. 21. But his friends say that this summer the chief executive is finding it a real job to take it easy and put his cares temporarily out of mind. They say he came out here from Washington “‘tied in a knot,” and that only now is he beginning to let go a bit. To help him relax, the President and Mrs, Eisenhower have enter- tained a group of old friends at a ; downtown hotel two evenings this week, They have been evenings of reminiscing, of light talk and of bridge playing after dinner. The President reportedly has enjoyed them tremendously. Tonight Gov. and Mrs. Dan Thornton of Colorado will be hosts to the President and the First Lady and the same group of their friends at a dinner party. Racea” as an alternative to the defunct European Defense Commu- nity plan which was killed by the French National Assembly. “But we have got some ideas,” Eden said. “My intention is to put these to some of the statesmen who signed the EDC treaty and to hear what they have to say.” Eden’s trip has been described by the Foreign Office this way: “To establish personal contact with responsible ministers . . .To explain to them the views of her majesty’s government on the sit- uation (created by the French re- jection of EDC) and to learn from them their views at first hand.” Dulles Rests In Hawaii HONOLULU w — Secretary of State Dulles retaxed fo Hawaii to- Most of the friends are from out of town. Among those here now are Cliff Roberts, New York, board chair- man of the Augusta National Golf Club in Georgia; William E. Rob- inson of New York; Freeman Gos- den, Amos of the radio Amos and Andy team; John Jay (Jock) Whitney, New York; T. R. Gar- lington, Atlanta, Ga.; Clarence J. Schoo of Springfield, Mass.; Ed Dudley, golf pro at a club in near- |by Colorado Springs and also at the Augusta National Club; and W. Alton Jones, board chairman of the cities service oi] and gasoline | firm. | Jones, Whitney and Schoo are| accompanied by their wives, and Mrs. Eisenhower has been spend- ing quite a bit of time with the ladies during the day as well as in the evenings. list Presid Unemployment — Movie Company Compensation Battles Censors Claims Increase |..24."™* seuieniiiinadh-ote WASHINGTON (# — The Tabor |*°T$ 22d Columbia Pictures Corp, Department says the number of | ¥Tapped up today in a heck of a new unemployment compensation | Court fight. claims last week increased for the The Board of Motion Picture first time in nearly two months. | Censors ordered che word deleted The Bureau of Employment Se- | from dialogue in the film, “On the it uncing this yesterday, | Waterfront.” attributed about 60 per cent of the} Columbia, asking the Baltimore 23,200 increase in initial claims to|City Court yesterday to overrule work stoppages caused in New |the board, said the word is neces- England by Hurricane Carol, Sary to help “create a climax.” The increase brought the volume | Its deletion, they said, would weak- of compensation claims during the|€2 a moral lesson pointed up by week ended Sept. 4 to 288,400. The | the picture. agency said the rest of the in-| The court has given the censors crease was caused by new lay-offs |22 days to show why they should i. is automobile, ordnance, elec-|0t be overruled. ical uipm in- | destries © ipment and metals mt Claims for jobless pay in cases | of unemployment continuing for more than one week declined by | 15,800 in the week ended Aug. 28, They reached a new low for this year of 1,666,900. ——— CLIMB IS FILMED ROME, Sept. 11-.®—Color films | showing the Italian conquest of Godwin Austen), the earth’s second highest mountain, will be released in November, A 12-man team conquered the 28-520-| foot peak in Pakistani Kashmir July 31. For A Quick Loan $5 To $300 See “MAC’ 703 Duval Street TELEPHONE 2.8555 SPECIAL THIS WEEK 20% OFF on “Do It Yourself” Brush-On Roofing Monroe Specialty Co. 1930 FLAGLER AVE. Your Grocer SELLS That Geed STAR * BRAND and cuban COFFEE and CUBAN — TRY A POUND TODAY — Printing... Embossing Engraving ... Rubber Stamps SYRONG ARM BRAND COFFEE Triumph Coffee at ALL GROCERS How to get the most Sor your ; mutual fund dollars , . Wise investors know that experienee counts in selecting the peep Funds am aes sare Toles, discover for yourself the exirs our Mutual Fund Advisory “d Personalized investment planning by qualified advisors of Wide choice among ail leading Funds . v lmpertiel selection te meet your individual needs 'C Complete Werary of Mutual Fund literature and comparative dats Why not get the most for your money by writing for our new brochure and full information. For a progrars tailored te your particular needs, request our Income Planning Guide. VIRON E. PAYNE, Key West Representative First Southern Investors Corporation Harvey Bldg., West Palm Beach, Fla. ime information about Mutual Fund investing. farriseee: Please send im Funds whose ims (within the limits of am interested b reg 7 acne ae ay ts ring objective: Deae 9 ital growth —_() More current income N Tncome Planning Guide Note: Information i ar our guidance only and doce not nara achievement of objective In Good Weather Or Bad- You Will Find Our Drive-in Window Most Convenient You don’t have to leave your car to use the Drive-In. Entrance on Front St.—Exit on Duval St. Open Monday - Friday daily, 9:30 A.M. to 2 P.M. Open Monday afternoon, 3-5 P.M. for those who can’t come in regular banking hours, Bank the Easy Way THE FLORIDA NATIONAL BANK Member of Federal Deposit