Los Angeles herald., 1906-03-09
REALTY BOARD
EXPELS MEMBER
COMPLAINT OF UNFAIR CON-
DUCT SUSTAINED
Old Settlers Investment Company Ac-
cused of Failing to Protect Agent
Defendants Version OF
Affair


complaint made by one of it's members,
the Los Angeles realty board yesterday
afternoon expelled from membership
the Old Settlers Investment company,
a concern that has been in business IN
this city for the last twenty years. Inc
grounds on which the expulsion were
based were conduct inconsistent with
such equitable principles as should
govern members of the corporation
The members of the Old Settlers In
Vestment company are j. f. Reynolds
w. H. King and j. E. Peck, and the
complaint against them was filed by 5.
white & Co, whose Offices are in the
Pacific Electric building. 1t was al
legged that the Old Settlers company
had failed to protect White & Co In
real estate deal, in dealing directly
with a principal with whom White &
Co. as agent for the Old Settlers COM
pany, previously had been negotiating
The sale of the property was made
direct. and White & Co. falling to re-
ceive commission Immediately filed
charges of unfair conduct.
Ignored the Charges
The matter came before the arbtra-
tion committee of the realty board and
the Old Settlers company was notified
to appear and make defense. Instead
of that. the accused company sent in
it's resignation as member OF the
board. The following day member of
the firm is said to have requested that
the resignation be withdrawn, but Inn
1nediately afterward another letter of
resignation WAS sent in.
When the case came up for hearing
the defendant company was not repre-
sented. and no defense whatever being
snY1 nd
ing committees heard such testimony
as was available and decided in favor
of White g. Co. The governing com
Inittee took the ground that IL could
not act on the resignation of member
of the board against whom charges
were pending. At a meeting Of the
members of the board yesterday this
view of the case was sustained and
a resolution expelling the Old Settlers
Investment company was passed by a
unanimous vote.
J. F. Reynolds of the Old Settlers
Investment company gave the follow
ing version Of the cause leading up to
the action of the board:
Statement Of J. r. Reynolds
Some time ago." he said. we noti-
fed White & Co. that we would require
from them the names of any prospec-
tive customers they might have for
property which the firm was handling
for us. They positively refused to do
this. saying they never gave up the
names of their customers, whereupon
we informed them that we could not
promise to protect them in any deals
Soon after this a member of the
Pioneer Investment company came to
our office and made us an offer on
of
still in our office White & Co. called us
up on the telephone and said they had
reconsidered their earlier decision, and
asked If we would protect them if they
gave US their customers names. We
replied that we would, and then they
informed us that they had been nego-
tiating with the Pioneer Investment
company.
Refused to Pay Commission
"As the Pioneer Investment company
had come direct to us and made no
mention of any dealings with White &;
Co, and as the deal had been practical
~ closed by the time White s, Co. made
Ip their minds to grant our request to
furnish the names of their customers,
we did not see where they were entitled
to much consideration in this partiCu-
lar deal. We so informed them, where
upon they preferred charges against us
before the realty board. We have had
cases before the board before and were
so dissatisfied with the result that we
decided to withdraw from membership
rather than go to the expense of fight
ing these charges"
At its meeting yesterday afternoon
the realty board also adopted the fol-
lowing resolution.
important Resolution Adopted
Whereas, it being unlawful under
the laws of the state of California to
accept d deposit or offer for sale any
lot or lots in any subdivision before q
plat of the same has been accepted
and filed of record with the proper city
and county authorities, now therefore,
the Los Angeles realty board severely
condemns the practice of agents and
owners selling a lot or lots in tracts
before the plats or maps of the same
have been duly accepted and recorded
by the proper city or county officials.
And In case of failure to comply with
the law by any person, persons, firm,
partnership, corporation syndicate or
associa ton the secretary of the board
shall give such person, persons, firm,
partnership, corporation, syndicate or
association fifteen days notice in writ
ing, by personal service or registered
letter, to at once comply with the law,
and then if the law is not complied with
the secretary shall make a complaint
forthwith to the proper officer Of the
city or county charging said person,
persons, firm, partnership. corporation,
syndicate or association with violation
OF the law. And it shall be the duty of
every member of the Los Angeles realty
board to notify the secretary if it shall
come to his knowledge that the law liz
!. %