[no source, March 7, 1941]
Won’t Cut Fee in in TNT
Site Deal
[handwritten: March
7, 1941]
McDowell Refusal
Reported From Washington Meeting
R. Newton McDowell, Kansas Cityan who contracted
to acquire the 16,500 acres for the government for the TNT plant near Weldon
Springs, vetoed as “too late” a suggestion he cut his fee from 5 to 3½ per cent
of the appraised price, it was reported yesterday after a closed conference in
Washington.
The
conference, called in an effort to decide whether to go through with purchase
options McDowell already has obtained on the 100-odd land parcels or start court
condemnation proceedings, was attended by John J. O’Brien, Justice Department
attorney in charge of land acquisition; Ewing Wright, special Justice
Department attorney who recently made an appraisal investigation here; United
States District Attorney Harry C. Blanton of St. Louis; McDowell and War
Department officials.
No decision
was reached yesterday and further conferences will be held, it was reported in
Washington.
McDowell at
the meeting defended the total estimated $2,500,000 cost of the land as a fair
price in an “immediate possession” deal. Normally, he admitted, the $159 per
acre average would be too high for farm land as such.
Conferees
reported, he said, he believed it is “too late” to reduce his 5 per cent
commission. He contended it would cost $1,000,000 more to acquire the land by
condemnation.
CONDEMNATION URGED
Blanton is
reported to have recommended condemnation proceedings while Wright was in St.
Louis rechecking McDowell’s appraisal. He said he was an “unofficial observer”
at yesterday’s meeting.
St. Charles
real estate men said yesterday they feel $75 an acre is a fair price. One said
he has sold, since the TNT plant was announced, 1477 acres in the area at an
average of $60 an acre.
A check of
the records in the office of the St. Charles County Recorder of Deeds revealed
35 acres recently sold at $60 an acre, six at $160, 26 acres at $100, 125 acres
at $50 and 1¾ at $500.
==========
[no source, no date]
McDOWELL WONT CUT FEE
FOR LAND PURCHASE
Refuses Suggestion
That He Accept 3½ Per Cent Instead of the Original 5 Per Cent
AT STANDSTILL
No Decision Reached
by D. J. Officials Whether or Not Land Will Be Condemned
A proposal
to reduce the commission from 5 to 3½ per cent on the purchase of the 16,500
acres of land for the Weldon Spring TNT plant, was rejected by R. Newton
McDowell of Kansas City at a conference in Washington Friday. McDowell’s reply
to the suggestion was “it is too late.”
The land
optioner met with Department of Justice officials to decide whether or not to
go with condemnation proceedings to acquire the property. No decision was
reached and further conferences will be held.
McDowell
defended the total estimated price of $2,500,000 for the land because of the
immediate possession demand by the Government.
Payment for
the land was halted when the Department of Justice probe began. It is contended
the land was optioned at extremely high prices.
St.
Louisans who owned property for country estates were among those who received
the highest prices for their land.
==========
[no source, no date]
$1.00 A YEAR MAN
MENTIONED IN TNT PROBE
Kansas City
Contractor Will Be Asked If He Was Influenced In the Awarding of Contract
DENIES DEALING
Farmers’ Committee At
Same Time Asks War Department to Send Qualified Investigator Here
WASHINGTON,
March 20.—The special Senate committee which is preparing to investigate
defense contracts expects to call J. C. Nichols, wealthy Kansas City real
estate operator and now $1-a-year man with the Office of Production Management,
to determine whether he was in any way influential in helping R. Newton
McDowell, also of Kansas City, to obtain his 5 per cent commission contract to
purchase the 16,000-acre site for a TNT plant at St. Charles, Mo.
This was
confirmed yesterday by Senator Harry S. Truman, chairman of the committee,
which met today to discuss policy and procedure. Truman said the background of
numerous contracts would be explored.
Told he
probably would be called before the Truman Committee to be questioned about any
part he may have had in the McDowell contract, Nichols denied any knowledge of
it. He said that McDowell, whom he knows only slightly, came into his office
here and told him that he was negotiating for a contract.
Committee Complains
The
property owners committee today sent a letter to Assistant Secretary of War
Patterson, asking that Brigadier General George R. Spaulding be sent here to
investigate the conditions. The letter says the War Department has been a
victim of misrepresentation and points out relative land values in the St.
Louis area. The letter also questions the qualifications of the men who
appraised ten pieces of property for the Government.
From
Washington it was said condemnation proceedings would begin early next week.
