Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-04

lecture given by Mr.. Clark and bought
a $1,000 lot with a down payment of
$472. The psychology lecture, she said,
was $50 nice and so wonderful" she
couldn't resist the temptation to at
tempt to make quick profit. She later
found, she said she could not make
any additional payments and she went
70 the sales office to demand that her
Gown payment be returned, as she
needed 1t Tor a major surgical operation.
A similar story Of a purchase made on
premises of quick resale of three un-
improved lots in the section, which did
not materialize, was told by Virginia
Brown, resident Of Stoneleigh Courts.
She said she did succeed in getting
refund OF the down payment on two
lots, amounting to $445, but that she
was unsuccessful in an attempt to re-
gain cash payment of 1902.
Hewitt was the the first witness
called by Senator Blaine as he began
questioning into the affairs OF the Coun-
try Club Park Subdivision.
Hewitt answered many questions, de-
failing how he, as majority owner of
the site, had contracted for its sale to
the Country Club Properties Co., Inc
He explained that he held a sale con-
tract covering each lot in the section
which the promotion concern has had
up for sale. After some dispute Sena-
tor Blaine obtained from Hewitt q
duplicate Of the original contract COW
ering the entire sales transaction.
Hewitt told the committee he was to
receive total consideration of $116,911
for the acreage purchased by the pro-
motion concern. As Senator Blaine
filed the original sales contract with
the committee secretary, Hewitt rather
sharply told Senator Blaine he would
have to have it back.
Senator Blaine coolly remarked that
I'VE will return it to you" and left
the document in the secretary's hands.
Further questioning by Senator Blaine
brought out that Hewitt received q
down payment amounting to $500 for
the land sold and was to receive 2 per
cent a month of the value of each lot
sold, except where full cash payment
was made. A heated colloquy ensued
when Senator Blaine asked Hewitt If
he get the full value Of the acreage
when he sold 1t to the promotion con-
Germ.
Asked Reason for Sale.
Hewitt said that he did not and Sem
ator Blaine wanted to know then why
he did So
Were you pressed for money!" the
Senator asked.
IT guess all real estate men are
pressed for money" Hewitt answered.
IF you didn't get the fun market
value Of the property, did you get
cheated in the deal?" the Senator asked.
When the witness retorted that he
did not, and had explained that he sold
at a cheap price because he needed
money, Senator Blaine wanted to know
If the $500 down payment was sufficient
TO relieve his financial embarrassment
Mr.. Hewitt then did some figuring to
show that with the monthly payments
he was getting about $4,000 a month
and said THAT helps lot"
II suppose some very beautiful houses
have been built on this tract" Senator
Blaine remarked.
Senator Blaine then produced a pic
ture of house which was published
several months ago, announcing that it
was to be built at once by the promo
ton concern. Mr.. Hewitt explained
that the house was now under con-
struction, and when Senator Blaine
brought out that 1t was the only house
that had been started, the witness said
excavations were under way for couple
more.
Tells of Investigation.
Louis Rothschild, director of the
Better Business Bureau, told Of an in
veStigation he had made as result of
numerous complaints forwarded to the
bureau by persons who had dealt with
country club properties.
The Better Business Bureaus of San
Francisco Los Angeles, Portland, Greg;
Seattle, Wash, and Houston, Tex, re-
ported, Rothschild declared, that N.
B. Clarke, one of the vice presidents,
was a high pressure" salesman.
The Better Business Bureau director
said the method Clarke had used in
promoting the Country Club enterprise,
located in Montgomery County, Md,
9 miles from the heart of the District,
had involved employment Of women
who would meet other women and In
vite them to attend lectures on ''psy-
chology" at country club luncheon. He
said these women were paid so cents
for each prospect they obtained. Others
of these solicitors, the witness declared,
were offered a straight salary OF So
day, and complained they had failed to
receive their remuneration.
The prospective customers" Roths-
mobile ride to the club, where they
would listen to lecture by Clarke on
psychology, which, as a matter Of fact,
was devoted largely to discussion OF
means Of getting rich by buying real
estate.
"They then would be taken into
tiny booth in which there were but two
chairs.
AT this point so called financial man
ayers would give high pressure accounts
Of quick profits to be made by investing
IN the property"
Asked by Senator Tydings OF Mary
land Whether aflv of the practices he
had told Of were illegal, Rothschild
repiied:
1T am no Judge. My complaint Is
that this Is q scheme TO take advantage
Va