The Washington times., 1913-08-06
KALBFUS GR|LLED
ON REALTY DEALINGS
House Inquiry Stormy as Long
List of Operations Is
Submitted.
Continued from First Psge.)

Rudolph ITO md out just what the YER
dict meant"
Il told him was contemplating ouy-
ing a piece of property, and asked the
Commissioner IL he knew of any objec-
tion," said Mr.. Kalbfus. Commissioner
Rudolph said he saw no objection, and
he said he thought | would be foolish
IL didn't buy the property
Did the Commissioner approve Of
your excessive speculation in real es-
tate?''
81 don't think he cared anything about
Il at an.
The assistant assessor said he had
never read the verdict in the Commits
sioners' investigation, but had heard
it read. To be sure about its full mean
ing. he added, he had gone to see Com
missioner Rudolph.
Did you take the verdict to be an
approval Of your actions?" demanded
Mr.. George, spritedly.
Thought 1t vindicatiou.
"Yes, ] regarded it as a vindication." "
You are under oath. Mr.. Kalbfus, I"
admonished Mr.. George. do you SOL
emnly sit here and say that the District
Commissioners, as result of your trial
a year ago, approved Of your real es-
tate speculations?"
ct say the Commissioners wrote a YER
diet which ] regarded as a vindication;
tAsy shook hands with me; the news
papers wrote some complimentary
things about me; my friends regarded
X as a vindication, and so did l.
Chairman johnson interposed to say
that " the Washington newspapers, as
to that, may have something compn-
mentary to say about your appearance
here today"
81 hope they viii say nothing prejudi-
cial," said Mr. KalbfuS.
WAS that Scotch verdict by the
Commissioners?" persisted Mr.. George
Verdict Pleased Him.
mo. regarded it as a practical vim
dication and 50 did my friends. I was
pleased
Mr.. Kalbfus said II Commissioner Ru-
dolph had said don't invest" when the
Commissioner advice was sought, he,
the assessor. would not have purchased.
Mr.. George suddenly asked If there
was such a thing as "an oath of office
Tor the District tax assessors
81 don't know" said Mr.. Kalbfus.
Were you sworn in?''
Il don't remember having been"
Were you sworn in as a member OF
the excise board?"
II think not"
The object OF these questions was to
develop whether or not an assessor hold
ing real estate would inform his col
leagues on the board when il came 10
the assessment OF that piece Of property,
Would Tell Associates.
would you tell your associates tina,
you paid so much for the property, but
that II was really worth so much?'
YES" answered the witness.
It was when Mr. Caraway spoke Of an
on day on one of the Kalbfus deals
be- fha
A rather amusing colloquy occurred
when the committee inquired about Mr..
KalbfGs' interest in the property at
Twentieth and Belmont streets, pur-
chased Jointly by Assessor Richards and
Assistant Kalbfus, Mckenzie, and
Nye. Mr.. Kalbfus said he regarded his
lot as lemon" and had sold IL at a
loss of 800 TO Mr.. Mckenzie.
oh. you bought lemon and passed
II along to Mr.. Mckenzie, your friend,
whom YOU have referred to here to-
day?''
Sure" said the witness.
$50 friendship doesn't count in real
estate deals?"
Mckenzie is grown and able to
look out for himself. Perhaps he
didn't regard it as a lemon, but ]
did"
Mir, Kalbfus took up his real estate
purchases in chronological order
showing that in 1902 he bought lot
No. 1s2. square 252s, belonging to the
Corcoran estate, for which he paid
Sl,915. Mr.. Kalbfus subsequently bor-
rowed $4,000 on the property and
nt.I, nnsiiy ssid e Son. Il at prot Of approx
Chairman johnson wanted to know
wny the Corcoran estate, through
Agent L. s. Lipscomb, had allowed
him to get the property so cheap and
now ne could borrow SO much more
NO Go r4w44 H. g.
said Mr.. Ltpscomb negotiated tho
loan and that was all he. KaIhfus
Knew about 1t. Maurice Tally, he said
had dumped a great deal OF dirt into
the hole in the ground" and had
brought the lot up to grade making
II valuable, which made Mr.. Johnson
wonder why Mr.. Tally took such
pains with the assessor.
Another Investment.
Referring to the investment Of Mr..
Mckenzie at Sheridan Circle, upon
said:
Il wonder II the real estate agents
have acted fairly toward the estates
in selling you gentlemen property 50
low that you can borrow on IL more
money than you paid and make good
profits"
Mr.. Johnson asked il there was a
network connection between the
Louise Home, the Corcoran estate, an
the assessors office. Mr.. Kalbfus said
no. The Louise Home, he said, was 9
beneficiary of the Corcoran estate.
Explaining his second real estate ven.
ture, Mr.. Kalbfus said he bought lot
No. ], square 2l4 dn L street, In 1904
for 5000. He later sold at a profit OF
about S7sl.
The witnesses then detailed his ac.
QUESTION of lots L, Sl6, and 81 in
square 2526. which was bought on q
basis Of 5 cents per square foot. Two
OF the lots, Kalbfus said. were sold
eventually TO Mr.. Drury for $50 pei
foot, and the third was sold to Conrad
Becker at S1.32. Joseph c RamaRe
Kaibfus said, was a joint purchaser
and the tow cleared about $4,000 or
this deal. The proposed opening of a
sIfeet, he added. enhanced the value oi
the property and Mr.. Johnson declared
thai II was street on paper. | sup.
and not the Commissioners. had author.
lied the opening Of the street.
Formal Statement.
In his formal statement. which Mr.
Kalbfus is reading gradually to the
committee. he reviews the Horstmanr
charges. He adds that no Board OF
Commissioners has forbidden the pur.
chase Of real estate by members OF the
Board of Assessors, and neither hai
Congress.
Continuing. Mr. Kalbfus says:
The District Commissioners who
have held office during the more than
a quarter of a century ! have been in
the employ of the local government
have all known that Assessors, when
mi, Al al fr-