The Key West Citizen Newspaper, October 6, 1954, Page 9

‘Spotlight Centers On Alleged “Windfall” Profits By Apartment Project Promoters ) > By JOR HALL WASHINGTON ®% — Swinging from the activities of ousted FHA official Clyde L. Powell, a Senate Banking Committee spotlight cen- tered today on alleged “windfall” profits bad private promoters on apartment projects. built :with one gon. “9 ia an ‘J sal yn call would near!y 10 ‘ in eats y apartments erected | under a xpired federal hous- ‘am, whieh allegedly yield- is, in inflated profits tc The terth “windfall” has beer, applied ; to dane’ profits made when promoters obtained goyern- m ace, far bigger thar their costs and then pocketed the difference, . f In‘a day-long session yesterday, the Banking Committee heard a stream, of ‘witnesses tell of direct Money payments and loans to Pow- ell, a 2-year veteran of govern- ment service until he was fired ing ed last spring as assistant federal. housing commissioner in charge of: rental housing operations. The committee also was told that Pow- ell was a heavy gambler. Powell took the witness chair late in the day, but he refused to answer questions. He claimed his constitutional protection against possible selfincrimination — the same grounds on which he had refused to testify in two previous appearances before the Banking Committee. Powell was scheduled to appear today before a federal grand jury convened here to look into charges of widespread irregularities in Federal Housing Administration operations. Virtually all the testimony taken yesterday revolved about Powell. The committee heard that Powell: 1, Demanded and received late in 1946 a $10,000 payment for ap- proving a $709,000 increase in an FHA loan commitment for a Ne- gto apartment project here. This testimony came from Albert I. Cassel, a Washington Negro archi- tect. 2. Received $3,000 in cash in 1950 from William T. Johnson, a Vir- ginfa’ Béach, Va. builder to cover lone | ig dice and never re- paid money. 3. Placed bets of $100 to $120 a day witha bookie here in the early 1940s and failed to pay off on one bet. of ‘around $1,500. ’ 4° ita $12,245 lot in fash- ional residential section here late*in November last year and comhi a real estate firm to draw’ plans fea a house to cost over $56,000. However, Powell was said to have canceled plans for the house after the housing scan- dals broke *last April. 5. Borrowed $7,500 in 1948 from Nathan Manilow, a Chicago builder who testified Powell repaid all the money the, next year. 6. Deposited $218,630 ina Wash- ington bank from 1945 through April 1954, although his net gov- ernment salary over this period was only $75,793. Cassell said he paid Powell the $10,000 in three installments after talking over the situation with Elder Lightfoot Michaux, a Wash- ington evangelist and one of his partners in the project. He testified Michaux told him “that was the way things were done, but that he was preacher and couldn’t have anything to do with passing the money.” Michaux later testified he din’t remember Cassel telling him $10,- 000 would have to be paid to Pow- ell, but the ,evangelist said he wouldn’t say it wasn’t so, Michaux denied, however, that he Ria. sel to make the payment. Cassel testified that among the original project ‘sponsors was ,George E. Allen, who served as chairman of the Reconstruction Fi- nance Corp. (RFC) in the Truman administration and who is a close friend of President Eisenhower. Al- so mentioned as a sponsor was Harry C. Butcher, wartime naval aide to Eisenhower. Cassel and Michaux both testi fied, however, that Allen and Butcher neyer actually put any money into the project and never received anything from it. .- Michaux said that after’ Cassel had drawn plans for the project and was unable to find sponsors, he talked to Allen and Butcher and told them of “a desperate need for colored housing” in the District of Columbia. Cassel testified that Donald Daw- son, patronage chief under former President Truman, helped arrange an RFC loan for a shopping eenter ‘at the project, which now is wholly owned by Michaux and his church. Committee Counsel William Simon said Cassel was “squeezed out.” Children Watch - As Father Slays Wife And Self BOONSBORO, Md. An air- craft factory worker who had been fired from the plant where his wife also was working shot his wife to death yesterday and then turned the gun on himself while his chil- dren looked on. Dr. Samuel R. Wells, Washing- ton County medical examiner, termed the death of Mrs.“ Mar- garet Catherine O’Neal murder, and that of her husband Fred suicide. te State Trooper Clyde Tucker said Mrs.- O'Neal had just » returned from work at the Fairchild aireraft plant in Hagerstown and ‘was in the kitchen with. one of her five children ‘preparing supper, Then, Tucker said: O'Neal shot -his wife single‘barrel © shotgun. through the house and’ dead on the front porch, her other children. ° O’Neal put the gun mu his mouth and pulled the Tucker said the childrey range in‘ age up to 19, their father and mother ,quar- reled frequently. O'Neal was fired from his job for drinking, Tucker said. Judge Decides Games Are Wrong LOS ANGELES #—Santa Mon- ica’s “skill ball” games, a judge has, found, are much too chancy to be a matter of. skill. 2 Superior Judge Frank G. Swain, who tried ’em on the spot, ruled yesterday that the games violated the California law. The average player, said the judge, was not prepared to com- pete “any more than I could eom- pete against Joe Louis.” The judge ruled in favor of Na- than Schur, who sought an in- junction against six operators. “the city of Santa Monica cannot license a. game that is prohibited by state law,” the court. declared. The bingo-type games were said to gross a million dollars a month. WITH3US FIRST We will be pleased to have you come’in and discuss your car financing problem with us. THE FLORIDA NATIONAL BAN AT KEY WEST K AT DUVAL AND FRONT STREETS er of the Federal Deposit Insurance dois Mew oar Friendly Camticcsiey Bonk The Veterans Corner Here are authoritative answers from the Veterans Administration to four questions of interest to former servicemen and their fam- ilies: Q. I am a “peacetime” veteran, and I want to get into a VA domiciliary home. One of the re- quirements, I understand, is the lack of adequate means of sup- port. I have an income of around $100 a month. Is that considered adequate? A. No. Your $100-a-month income would not bar you from VA domi- ciliary care, so long as you meet all the other eligibility require- ments. An income of $125 or more a month, however, is considered adequate means, if the veteran uses it to support only himself. Q. Recently I needed emergency medical treatment in a non-VA hospital for my service-connected disability, and there wasn’t time to get. VA’s authorization in ad- vance. Would it be possible for VA to reimburse me for the ex- penses? A. Yes, it is possible, but only if all four of these conditions ex- isted: (1) the treatment was for a service-connected disability or for some ailment that was aggravating a service-disability; (2) treatment was given in a medical emergency; (3) Government facilities were not available; (4) delay would have been hazardous. Q. I’m a disabled veteran tak- ing Public Law 16 training. I re- ceived a serious injury during my training. Could I receive addi- tional compensation for my train- ing injury? A. Yes, it is possible for you to receive additional compensation for your injury,. providing you can show that your disability re- */ sulted directly from some essen- tial training activity. Q. A friend of mine has been receiving VA compensation be- cause of two disabilities. One is permanent and the other isn’t. VA asked him to report for a physical examination for his non-permanent disability, but without any good reason he failed to show up. Will VA stop his entire compensation? A. No. VA will adjust his com- pensation so that he will be paid only for his permanent disability. He no longer will receive payment for his non-permanent disability. (Veterans living in Key West who wish further information about their benefits should contact the VA office at Room 104, Federal Bldg.) Costly Research WASHINGTON (# — The govern- ment is spending about two bil- lion dollars a year on scientific re- search. é About 85 per cent of this science budget is being spent each year on military purposes, said a re- port issued Monday by the Na- tional Science Foundation. In the current fiscal year the government is expected to obligate itself for $1,990,000,000, about 10 per cent under the preceding year. Of the total, $1,717,921,000,000 will go for projects connected with na- tional defense. Hollywood HOLLYWOOD (# — Ever since Stanley Kramer cast Robert Mit- chum as Lucas Marsh in “‘Not as a Stranger,” the producer has been getting comments in the Ikie these: “In heaven’s name, please don’t put that Mitchum person in ‘Not as a Stranger.’ The man should be young. Maybe Farley Granger could do it. If only you could get Montgomery Clift!” i “What in the name of heaven have the writers done to that sen- sitive part that a burly, crude lead such as Mitchum would even be considered?” Mitchum’s comment on the pro- tests: “They say I can’t do the part. I say I can. That’s what makes horse races.” Mitchum is ignoring the critics and pitching into the role. When I.saw him, he and Frank Sinatra were among a group of medical students observing a major opera- tion. Both men looked amazingly young. For Sinatra, this was ac- complished by a deft hairpiece. Mitchum’s thinness aided the ‘l- SEA SECRETS SEA SECRETS are prepared by the Marine Laboratory of the University of Miami, act- ing as official fisheries re- search agency for the Florida State ‘Board of Conservation. Questions are welcomed and should be addressed to SEA SECRETS care of this ‘news- paper. Q.—Do you have any information on building aquarium at home? W. Graham, Miami, Florida. A.—While the length of an aquarium is not particularly im- portant, of primary importance is the width in relation to the depth of water, As the great part of the oxygen essential to the fish will be absorbed by the water from the air in contact with the water surface, the “width” of the water should be equal tc or greater than its depth. Incidentally, more pleas- ing effects in under-water garden- ing are possible in an aquarium of these proportions. After the desired size of the aquarium has been established, its finished weight must be considered, as this will largely determine the strength required of the materials used in the construction of the aquarium. The principal item of weight is that of the water, and this weight may be determined on. this basis: One gallon of water weights 8.337 pounds and contains 231 cubic inches. For example, if the aquarium is to be 30 inches long and 12 inches wide with a 10 inch depth, the volume of water will be 3,600 cubic inches or 15.5844 gallons of water which will weigh 129.927 pounds. When sand and other ornaments are included, it will be necessary for the frame and glass to support approximately 180 pounds. The frame is the “backbone” of the aquarium and must therefore be perfectly squared and rigid. Wood should never be used for the frame since it does not provide sufficient rigidity and, \if brought in contact with cement, | it will tend to draw the oil from the cement, making it slightly porous so that moisture will ooze through the wood causing it to warp separating the wooden frame from the glass. Galvanized sheet- metal of 14 gauge, bent to form 1-inch\ angle-iron, may be used for an 18 gallon tank, Regular iron is generally used for tanks of more than 20 gallon capacity. Slate has been found to be the best material for the bottom. An 18 gallon tank (24 by 12 by 15.inches) may have a bottom of three-eights inch slate. If slate is not readily obtainable double-strength window glass or plate glass is strong enough for a small aquarium of 1 to 5 gallon capacity. Clear glass should be used for sides and ends. Regular double-strength window glass may be used for larger ones, Car windows obtained from junk deal- ers can be used, but new glass should be used, as old glass is usually scratched and this de- tracts from the appearance of the finished aquarium, CHICAGO WANTS TO SELL BRICK SUPPLY CHICAGO (#—Chicago has a bar- gain in bricks—two million of them —at a penny each. They’re not gold, but granite block and veederburg bricks which cost the city 16 cents each 12 years | ago. But the city doesn’t need | them because it uses asphalt and concrete paving so they are being sold for salvage. They weigh be- tween 7 and 12 pounds each and are, says John Ward, city pur- chasing agent, virtually weather- proof. Notes By Bob Thomas lusion of youth. He has been on a merry-go-round, doing two pictures at once and. spending four or five hours many days at the hospital observing surgery. Producer Kramer, who is direct- ing for the first time in ‘Not as a Stranger,”’ explained why he chose Mitchum despite the protests. “I have tatked to many surgeons since I started work on this pic- ture over a year ago,” he said. “I have found that most of them are big, rugged men. They are butch- ers, not in the derogatory sense but in the nature of the work they do. It takes a strong man to cut up human beings and to withstand the strain of hours over an operat- ing table. That’s why I picked strong personalities — Mitchum, Broderick Crawford, Charles Bick- ford — to play the surgeons in this Picture. may be wrong about Mitchum. Time will tell. But all 1 can say is that everybody said I ‘was wrong about casting Van John- Guards Picket Indiana Prison As Union Move March For McCarthy Set BALTIMORE (#—The head of two militant anti-Communist or- ganizations has announced here Page 9 be Cetober 6, 1954 © THE KEY WEST CITIZEN ‘Saxton Must Serve Sentence | | NEW YORK w—Johnny Saxton is slated to go to jail Oct. 21, even if he should happen to be the world |champion welterweight boxer by MICHIGAN CITY, Ind. oi. | Lg ety that a nationwide “march on Wash- | he pleaded guilty to ignoring & dozen traffic tickets. At the Tes quest of his lawyer, however, his” jail sentence was postponed until duty guards picketed the Indiana } State Prison early today in a pro- | test atme@ at getting state officials | to meet with their union repre- | sentatives. The midnight shift of guards went to work in normal strength, ' but members of the outgoing shift formed picket lines soon after mid- | night. | Merle Griffith, vice president of | the International Guards Union, said the postmidnight demonstra-| tion was not ordered by the union, | but he added, “The strike is on.”"| Griffith had said earlier he had | telegraphed Gov. George M. Craig | stating that a walkout might come at 7 a.m. today if the governor did not agree by that time to meet with union representatives. Griffith indicated that a limited number of guards would be left on duty to feed the 2,300 prisoners and to keep them under surveillance. The Prison employs about 190 guards. National Guard units stood by in armories at Gary ready to move in any emergency, and other units | at Valparaiso and Whiting were on | a four-hour alert. State police also | were ready to mass troopers at the prison quickly if necessary. Gov. Craig said in response to the union's ultimatum: “We won’t recognize the union now or at any time in the future, and we won’t recognize anyone else who seeks to turn people against the government.” “You can’t strike against the government, and Griffith might just as well find out about it now,” the governor added. Hugh P. O’Brien, chairman of ! the State Board of Corrections, handed the guards on the midnight shift cards stating, “I (will) (will not) be loyal to the state of In- diana.” The guards were asked to! check one answer and sign the| cards. Two guards, John Kring of Mich- igan City and Henry Pearson of | Laporte, Ind., said they were fired on the spot for refusing to sign| the cards. | Griffith has been seeking a con- ference with O’Brien or the gover- nor to discuss demands for a 40- hour week, higher pay, improye- ment. of working conditions and re- instatement of four guards fired previously. The union said the previously. The union said the guards were fired for union ac- tivity. COPS MAY BE RIGHT DALLAS (® — A Dallas man offered a variety of reasons why he owned a boat. He said Mon- day he bought a truck with the boat in it. Then he said he won the craft in a dice game. Police had another version. They said he stole it. Read The Citizen Classified Ads For REAL Bargains! Most Complete and Larges: 313 Margaret Street | but "Older Folks with ington’”’ asking senators not to cen- | sure Sen. McCarthy will be staged | Nov. 11. | Rabbi Benjamin Schultz, in Bal- timore to be toastmaster tonight of a dinner honoring Roy M. Cohn, former McCarthy aide and a:cen- tral figure in the McCarthy-Army hearings last spring, made the an- nouncement. The Senate is scheduled to re-| convene Nov. 8 to begin considera- tion of a special committee recom- | mendation that McCarthy be cen-} sured. Rabbi Schultz said the march | will be a “people's movement especially for Sen. McCarthy, who is being smeared.” | He said the marchers would. be urged to visit their home-state sen- ators during the day to urge them to reject the censure recommend- ations, then to attend a mass meet- ing at a downtown hotel ballroom the night of Nov. 11. The meeting’s purpose would be the organization of a “Joint Coun- | cil Against Communism in Ameri- ca.” The council objective would be not only to fight communism | also to fight “aggressive | smears of anti-Communists,” Rab- bi. Schultz said. | Rabbi Schultz is national director | of the American Jewish League | against Communism, Inc., and co- ordinator of the Joint Committee Against Communism in New York, PIER ANGELI TO WED VIC DAMONE HOLLYWOOD (#—Film actress Pier Angeli and singer Vic Da- mone are engaged and plan to be wed soon, possibly this month. The 22-year-old actress, born in Italy, and the crooner, Brooklyn native of Italian extraction, have known each other several years. Neither has been married before. For A Quick Loan $25 TO $300 See “MAC” 703 Duval Street TELEPHONE 2-8555 Regularly $4.58 GAL. White Paint $2.99 Monroe Specialty Co. 1930 FLAGLER AVE. Itching Skin ., For the nagging, maddening, persistent jiteh ot dey a common to folke past middle age, Resinol ent is a special, ‘soothing relief. Conta: which acts | in place of missing skin oils — \works fast, and comfort lasts. It feels so ood not to have to scratch and serateh. (Get Resinol and get relief. All drug stores. ATTENTION! Garages - Contractors - Service Stations Contact Us For HEAT-TREATED BOLTS and NUTS it Stock in Monroe County CATERPILLAR DIESEL MARINE ENGINES EARTH MOVING Shelley Tractor & Equipment Co. +. . TRACTORS EQUIPMENT Telephone 2-3022 For Home or Commercial Use. 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