[no source, no date]
U. S. Files Suits for
TNT Land
No Announcements of
Land Involved in Condemnation
An
Associated Press dispatch from Washington last night said the War Department
has started condemnation proceedings to acquire the land for the proposed TNT
plant at Weldon Springs, Mo.
The terse
announcement failed to say if the court suits will cover all unpaid options or
only those on which the government has not yet accepted deeds. It intimated,
however, the government will make no attempt to recover money already paid
under options with some land owners.
One hundred
forty-six owners have not been paid and face condemnation suits here if the War
Department’s order is a blanket one.
HOPES RAISED
Earlier
yesterday a radiogram sent to a St. Louis attorney by the War Department over
the Jefferson Barracks radio station lent property owners some hope the government
would pay off on existing options within 10 days.
The
attorney, who declined use of his name, said he was convinced a final
government decision had been made on the wavering question of whether to take
up the options or condemn the ground.
He represents
an owner of land in a tract being assembled near Elwood, Ind., where a
$10,863,000 munitions plant is to be erected, and the radiogram over the
signature of Quartermaster General Gregory yesterday asserted the owners there
will get their checks for options in 10 days.
The
majority of options for that project, totaling nearly 25,000 acres, had been
secured last February 1 when the government ordered payments there held up
pending the recent Department of Justice investigation of Weldon Springs land
acquisition costs, subsequently termed “grossly excessive.”
PROJECTS SIMILAR
Two St.
Louisans in touch with Washington asserted yesterday, the radiogram indicated,
since the two projects are somewhat parallel, that a blanket decision had been
made on both and Weldon Springs option holders could reasonably expect to be
paid soon.
==========
[no source, March 8, 1941]
TNT Land Options to
Be Canceled
War Department
Charges Excessive Prices for Plant Site
By Associated Press.
WASHINGTON,
March 8.—The War Department announced today it had decided to cancel
unexercised options obtained for the government by R. Newton McDowell of Kansas
City, Mo., in connection with acquisition of 16,394 acres for a TNT plant at
Weldon Springs, Missouri.
It added
that proceedings for condemnation of land covered by the unexercised options
would be started immediately.
“An
investigation indicates,” said a formal statement by the Land Acquisition
Division, “that a number of the option prices are grossly excessive.”
“The War Department
still has under consideration options which have been exercised.”
CONTRACT ON FEE
McDowell
holds a War Department contract to arrange for purchase of the land at a 5 per
cent fee.
McDowell
declared tonight options had been accepted by the War Department on all but
about 400 acres.
McDowell,
saying he did not know just what the department meant by “unexercised options,”
told newsmen he had obtained options and forwarded them to the War Department
for signature and a return of copies to land owners.
“That is a
contract under which the government agrees to pay the farmer,” he said. “Do
they intend to repudiate these obligations?”
DEEDS EXECUTED
McDowell,
after the department decision was announced, told newsmen that of the options
he said were signed by the War Department and not yet paid for, approximately
90 per cent had resulted in deeds being executed to the government by farmers.
He asserted approximately $1,500,000 was due on the options he said had been
approved and added:
“I acquired
the land under instructions of the War Department and the policies as laid down
by the Secretary of War and the National Defense Commission. If the War
Department wishes to repudiate those things that is beyond my control.”
McDowell
said that when he was asked if he would consider reducing his fee from 5 per
cent to 3½ per cent he replied that several departments, including the Attorney
General’s office had representatives on the project since last October and knew
about the 5 per cent contract during “all that period.”
DID NOT ARGUE
“I didn’t
care to argue with the government over fees,” he said, “but in view of the fact
the Attorney General had been in on the acquisition of the property since the
beginning I didn’t see the necessity of picking on me and a few farmers in
Missouri at this late date.”
The
department’s announcement followed a conference yesterday in which John J.
O’Brien, a Justice Department attorney now in charge of land acquisition for
the War Department, took part.
Other
conferees were Ewing Wright, special attorney for the Justice Department, and
District Attorney Harry C. Blanton of St. Louis, here as an “unofficial
observer.”
Wright
recently went to St. Charles County, Mo., in which the land is located, to
obtain information on new appraisals and assessed valuations for the tract.
VALUE OVER MILLION
A War
Department spokesman estimated the value of the unexercised options at
$1,375,000. Approximately 270 parcels of land comprise the tract the government
is acquiring and options on 121 of these have been accepted.
Estimated
cost of acquiring the land had been fixed at from $2,500,000 to $3,000,000 but
complaints were made from undisclosed sources that the figure was too high.
O’Brien then began a recheck the government originally had expected the cost of
the tract would be about $2,000,000.
No
statement was given here as to Wright’s report.
The War
Department statement said:
“The War
Department announced today after extended negotiations it had been unable
satisfactorily to revise the commission of Mr. R. Newton McDowell of Kansas
City in connection with acquisition of land for the ordnance TNT plant at
Weldon Springs, St. Charles County, Mo.
“As
previously announced, the War Department has succeeded in lowering to
approximately 3½ per cent of the gross cost of the land optioned commissions
payable to agents similarly engaged in obtaining options on other defense
projects.
“Mr.
McDowell’s arrangements provided for payment of a 5 per cent commission by the
landowner. In addition the landowner was to be charged 1½ per cent for title
work.
“The War
Department has determined to cancel the unexercised options obtained by Mr.
McDowell. An investigation indicates that a number of the option prices are
grossly excessive. Proceedings for the condemnation of the land covered by the
unexercised options will be instituted immediately.
“The War
Department still has under consideration options which have been exercised.”
McDowell
said at yesterday’s conference that he believed it would cost the government
$1,000,000 more than his total cost estimate of $2,500,000 if it condemned the
land, and said his figure covered also cost of two towns and school properties.
A conferee
said McDowell was asked if he were willing to take a 3½ per cent commission and
that he pointed out his contract already had been made for 5 per cent.
