Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-22
FREE LOT OFFERS
HIT BY REALTORS
Method of Selling, Held Un-
ethical, Is Fought All
Over Nation.

Free lot racketeers who generously
give away pieces OF land and extract
thousands of dollars from the ''un-
lucky" winners are being put out of
business in all parts of the country,
says the National Association Of Real
Estate Boards.
Real estate men themselves have led
the fight against the unwholesome
organisations. who prey on the public
desire to get something for nothing,
says the association. The free lot
method of selling Is held unethical by
every real estate board in the United
States.
In addition, the Federal Post Office
Department, the State license law COM
mission, local vigilance COMMITTEES,
better business bureaus, the Federal
Radio Commission and outstanding
newspapers are against such promoters.
Survey Pays For Land.
No one gives away land for less than
It is worth, says the association. It
quotes on this subject H. Morton Bod
fish, secretary of its new property
owners division, who has just COM
pleted q national survey Of the free
lot system.
"The most prevalent method of ex-
tracing money from excited winners
Is to charge them for the cost of
searching the title, drawing the deed,
making the transfer, etc. The collection
Of these sums, that vary from $4.85 to
$50 and more, gives the good-hearted
promoter ample profit for his trouble
In most cases of this kind investigated
the Incidental" charges were more
than the value Of the land. For ex-
ample, in one case investigated, the
land was bought for $40 an acre, cut
up into six or seven lots per acre and
"given away for 1882 title expenses,
per lot" says Mr.. Bodfish.
Free lots are usually located 10 re-
mote places where the land is worthless.
Such prizes are often of peculiar size,
too small on which to build under
existing building ordinances.
disappointed winners who see at
once that their lots are badly located
when they inspect the property are
prevailed upon to switch their hold
ings. The salesman for the promoter
is so very sorry that the prize happens
to be in such a poor position, but by
he can give the winner credit for the
poor lot on another and better piece
Of land.
I'm other cases, If the free lot is too
small, 1t always happens that the ada
cent lot Is for sale. The strange part
Of it all is that the winner is tenn
porarily satisfied He thinks he is
pretty lucky to get part of the strip
for nothing, and cheerfully digs down
into his pocket to purchase another
piece. He is happy until he tries to sell
it and learns that water, sewer and gas
probably will not be put In for the next
30 years.
Workers Are victimized.
'The operations Of the free lotter are
especially reprehensible because his
activities are directed against the class
Of people who generally can Ill afford
to lose any Of their hard-earned saw
ings. In cases investigated where the
house canvass, the canvassers were di-
rected to go to the districts containing
the residences of the workers.
Perhaps the most common method
Is the securing Of signatures at the en-
frances TO theaters, at fairs, and, in
fact, everywhere that people congre-
gate. Sometimes the explanation is
given that the company is about to
start an advertising campaign for a
publicity, one Of their lots is to be given
away free. After the lists have been
built, the individuals who have signed
are approached through the mail. 1t
is here that the interest of the post
ONCE enters, for this Is q use of the
mails to defraud. The first letter to
the prospect appeals to his vanity.
I'VE have selected you to benefit by
this very liberal offer, because q rep
resentative citizen gives prestige and
advertising value to our property, which
may mean further businessi
Some promoters have actually given
away lots which were really worth
several hundred dollars. The cost ele-
nnent In the plan, which seems to have
been especially prevalent in the Chicago
region, was to charge the winner from
500 to $500 for the installation of
improvements that actually cost $500
10 $500.
Real estate boards and better bust
against free letters and exposed their
in many cities. Newspapers Themselves
have refused to carry the advertise
ments of the free~lot operators. In
rather apprehenSive of using the mails,
and barred from the newspapers, have
resorted to the radio in their attempt
condition by local civic agencies, the
Federal Radio Commission has adj
dressed warning to radio stations
has resulted In curtailing it.
1.-The State license law commissions
that have adopted strict standards Of
practice to which all reputable real
estate men have subscribed, have stead