Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-07
BLAINE COMMITTEE
TO INVESTIGATE ALL
D. c. REALTY FIRMS
Counsel Also to Probe Re-
ported Dealing in Ques-
tionabIe Securities.

The Blaine Senate Subcommittee
which has been conducting an inveSti-
! gation of real estate mortgages in the
District, has extended its inquiry into
every real estate firm in the city, Oscar
H. Brinkman, special counsel and in
vestigator for the subcommittee, an
nounced last night: MI. Brinkman said
| the far-reaching investigation already
was under way and also would extend
into several concerns reported dealing
in questionable securities.
This is not Inud-slinging investi-
| CATION" the attorney said, and it will
be no fault of ours If it hurts some
people"
Subcommittee to Get Facts.
Facts brought out by this double
barreled inquiry first will be presented
to the subcommittee, Mr.. Brinkman
said, but later some of this informa-
ton probably will be turned over to
the Department of Justice for use in
criminal prosecutions"
Although the activities of all real
estate firms in the District are to be
investigated, this fact should not be
interpreted as indicating that all of
them have been guilty of improper prac-
tees, the attorney pointed out.
ne Illuminated, however, L1ldb Il6 Has
uncovered evidence tending to show that
a number of such firms whose names
have not heretofore been brought to
public attention, have been engaged in
activities which he feels warrant in
vestigation by the subcommittee and
possibly by the Justice Department.
Evidence Of Irregularities.
Mr.. Brinkman also said he has evil
nf {rTeo "a 81
at least" 20 concerns dealing in Sc
curities in Washington. which he be-
lieves should be brought to the atten-
ton of the proper authorities.
1.-THE primary purpose of tets investi-
cation he said, lis to assemble infor-
nation which the subcommittee can
use in drawing up suitable legislation
to protect the public from real estate
and security houses which stoop to I'M
ethical, if not Illegal, practices.
THE committee Is seeking construc-
prosecution. 1t proposes this Fall TO
hold another hearing, at which time
subpoenas vii be issued for individuals
and for the books and records Of GER
tain organizations.
Committee Handicapped.
During the last session of Congress
the committee was handicapped by the
tariff hearings, but when 1t meets again
Senator Blaine intends to explore the
whole field of real estate and security
operations in Washington. 1 have been
instructed to bring in all the evidence
bearing on the matter, and the COM
mittee will leave no stone unturned in
its effort to secure all the facts.
Our investigation has really just
begun"
The announcement that the subcom-
mittee will investigate the sale OF Sc
curities in Washington aroused consid-
cradle interest in financial circles.
Well informed Government officials
have estimated that the loss to the
general public through the purchase
Of worthless securities runs into mil
lions Of dollars annually, and 1t is be-
lieved that a considerable part OF this
loss can be laid at the doors of Arms
operating in the Nations Capital.
Builders Bull Market"
The present situation in the real
estate field, 1t was explained, had its
| inception several years ago in the days
/ OF the builders bull market" when
construction work forged ahead with
| period, it has been pointed out, too
many apartment houses, hotels and
other buildings were erected on the
theory that the way 10 make the most
money was to build EN- quick and
build 'em cheap" This practice brought
on hard times for the builders.
Mr.. Brinkman has In his possession
material from the secret files of the
Department of Justice relating 10 its
investigation OF the F. H. Smith Co,
which he secured in July. He also has
the files of the District Attorney IS
Office for 1924 and 1925, during which
period a Senate subcommittee under
Senator Ball made an investigation Of
renting and housing conditions in the
District. Brinkman would not say
what use he expects TO make Of this
material. but he indicated that highly
important developments may be ex-
pected in the near future.