The Washington herald., 1912-01-23
Members of Congress Fore
cast Defeat of Ben
Johnson's Bill.
LAW is UNNECESSARY
Hearing Before District Committee
Brings Out Weaknesses of
True Consideration"

From various members OF Congress last
night came the assurance that the John
son bill requiring the recital OF the
true consideration" OF all real estate
transactions would be laid on the table
after the recommendation for its pas
sage had been withdrawn and would
there die quietly when the present ses-
sion came TO an end. Those Represents
tives, both Democratic and Republican,
who discussed the bill. declared that the
assertions OF realty brokers, finGnciers,
and property holders, that confusion and
trickery would follow its passage, seem
to De well founded on fact.
Measure Unprecedented.
Combined with this fact IS the abso-
lutte knowledge that a measure like this
has never been adopted in any State.
The manifest unfairness OF adopting ex-
perlmental legislation in a city like
Washington, where real estate represents
the backbone of commerce, Is another
reason given by different Representatives
for their opposition to the bill.
Appearing before the District Commit
tee yesterday in response to Chairman
Johnson's invitation were Randall II.
1
H Warner, all OF whom protested
against the measure as unnecessary and
resultant in no apparent good" Be
fore they made their statements the
committee made arrangements TO meet
again on Friday morning at IL o'clock.
when T. f. Monahan, ]. II. Adraans.
and others will give their opinions.
b. II. Warner produced statements
from the officials of ,forty-five States,
in which II was explained that no law
Of the kind contemplated in the District
had been adopted by any Of the states.
With this symposium OF statements, MT
warner pointed out that the possibility
Of trickery and fraud was not lessened
by the passage OF the bill.
wash Sales n Menace.
q Randall Hagner was the third member
Of the committee which had been depu-
tized to protest against the legislation,
on behalf Of property owners, bankers,
and brokers Of this city. He said in part:
"As understand 1t the proposed bill
IS drawn with the idea that the recital
OF the true consideration in real estate
transactions would operate 70 prevent
fraud and give aid to the assessors OF
the District in reaching correct conclu-
sions regarding property values m fixing
the rates of taxation said Mr.. Hagner.
I'm reply TO the Alrsl pEtllLSt Wouiu
state my belief that the compulsory re-
cording of the so-called true considera-
ton would open avenues TO fraud which
might easily operate 10 do more harm
than Is possible in the present system.
where a nominal consideration only is
given We now have few II any wash
sales but II the true consideration meas
ura should obtain 1 leave 1t to the COM
mittee's own judgment II 1t would not
be easily possible for two Or more men
to enter into an agreement first TO sell
a piece of property, one TO the other. at
S50O for example, then TO make a Sec
ond wash sale at S55,0oo, and finally an
other wash sale at $4,000. In each the
str1Ie consideration would be stated, and
there is no one to go behind the rec
ord of the series of affidavits.
A Question OF Values.
80 one counts the money, and ultimate
ly with this record 1t might easily be
possible 10 persuade real purchaser to
take the property at some such figure
as S45 900. when, IN fact, the actual value
OF the property was far below even the
figure"
During the reading Of kilograms Rep
resentatiye Rothermel interrupted suf-
ficiently long to explain that he was 'op-
posed to any legislation alternating the
prosperity Of the District" This was
accepted as meaning that he, for one.
was convinced Of the inadvisability Of
the johnson bill.