Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-05
ROVER EXAMINES
|. BOOKS OF REALTY
PROMOTION FIRM
Seeks to Learn Whether
'Luncheon-L System
Violates D. c. Laws.
CONCERN MAINTAINS
WASHINGTON OFFICES
Several Buyers Charge Agents
Promised Resale of Property
at Large Profit.

Books and records of the Country
Club Properties Co., Inc. promotion
concern engaged in selling lots in a
large tract in Montgomery County. ly-
ing between the Indian Spring and Ar
gyle Country Clubs, were being exam
ined today by an assistant to the United
States attorney, Leo A. Rover, It was
announced today.
Mr.. Rover stated that the records
were being studied to determine II there
had been any violation of any law Of
the District in the course of the lunch
conjecture" system of promotion, con-
corning which testimony was given yes
terday by several lot buyers appearing
before the Blaine subcommittee of the
Senate.
The documents of the promotion con-
Germ were taken under Subpoenas duces
tecum served on officers of the company
wednesday for the purposes of the dis
trict attorneys examination, and also to
produce the records before the subcom-
mittee of the Senate investigating real
estate conditions here.
Maintained Office Here.
In announcing that his office was ex-
aiming the books Of Country Club
Properties Co., Inc. Mr.. Rover made
plain that his office was making an ex-
animation to determine If the actions
of the promoting concern we're legal OF
illegal, without having prejudgsd the
matter.
While the property sold under this
system of giving free luncheons and free
lectures is located outside the District,
the concern maintains an office in this
city and prospects are obtained here
and taken to the property.
Several buyers Of lots in the section,
giving sworn testimony before the COM
mittee headed by Senator Blaine, yes
terday made charges that agents Of
the promotion concern promised them
the company would resell their lots
within a short time at large profit to
them, but that though they made down
payments on the lots on this basis, the
company had not made the resales.
Witnesses described the plan of the
promotion concern in obtaining con-
tracts for the purchase of lots in the
section.
This was, briefly. that woman So
licitors were paid so cents or 81 for
each person they could get to accept an
invitation to have q free luncheon and
to hear lecture on psychology at the
sales ONCE Of the concern on the sub
division.
Heard Of Great Profits.
There the prospects in a body, it
| was reeounted, heard N. B. Clarke,
listed as vice president Of the con-
Germ, tell how great profits were TO
! be made within short space of time
by buying lots and reselling them.
Then, it was testified, financial man
ayers of the concern, after showing
prospects over the subdivision, took
Hxwr 4xa4,
promised them quick resale of the
| property. and obtained signatures on
| sales contracts and down payment.
1t was against the announced policy
Of the concern, the compliments said,
for prospects to have witnesses in the
booths, and, in fact, there was not
room for more than the salesman and
the prospect, seated, in the booths.
Mr.. Clarke appeared at the hearing
yesterday, but was not given an oppor-
tunity to testify, the hearing being adj
journed to next Wednesday.
Mr.. Clarke did issue statement TO
the press declaring that I'm our APP
pearance before the Senate subcom-
mittee we have nothing to conceal and
will be glad to outline our method Of
business procedure which seems to have
aroused at first q curiosity and later
jealousy and finally the criticism of
some of the other real estate men in
Washington, as well as. the Better
Business Bureau
The statement added that the pro-
motion concern had sold approximately
100000 worth of property in the eight
months OF its operation. "All the pur-
chaSerss at the time they entered into
their transactions with us were COM
pletely enthused and thoroughly salts
fed, otherwise they would not have
taken the action they did," the state
ment continued.
subsequently to these purchases Of
property, Clarke's statement said, "these
self-appointed guardians took it upon
themselves to communicate with some
of these purchasers, or, in any event, as
many as possible, and destroy the faith
of these individuals in the value of real
estate in metropolitan Washington"