Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-12
HOUSE COMMITTEE
POSTPONES ACTION
ON .M'LEOD BILL
Body Will Consider Measure
on Real Estate Transac-
tons Next Wednesday.
DATE SET FOR REPORT
ON MUNICIPAL STUDY
Chairman Sees Need for Clause in
Proposed Legislation Relative
to Simulated Deals.

The House District committee. after
lengthy discussion today, decided to
postpone further consideration Of the
Mcleod bill to protect the public against
fraud in real estate transactions until
the next regular meeting next We'd
nesday.
The House committee also set the
regular meeting two weeks hence Tor
o report by Representative Gibson OF
Vermont, chairman OF special sub
committee in the last two Congresses,
which was making q comprehensive
study of various branches of municipal
administration of the District. Repre-
sentative Gibson has three times visited
the committee this year endeavoring to
make report, particularly with refer
ence to the proposed reorganization of
the Police Department.
Acting Chairman Mcleod Of The Dis
trict committee, who is chairnl y the Z
judiciary subcommittee, repor thai
a majority of this SUBCOMMITTEE Shougtt
there was no need for licensing CONS
mission for real estate operators, but
that there was need for section II
which Is the clause in his bill relating
to simulated transactions and identical
with the bill introduced in the Senate
by Senator Blaine Of wisconsin.
Author of Measure Heard.
At the request of Representative Lam
pert, Republican, of Wisconsin, o. H.
Brinkman former secretary of the Sem
ate District committee, now practicing
attorney, who drafted this proposed real
estate regulating legislation, at the re-
quest of the Senate subcommittee, grow
ing out of the F. H. Smith case, was
heard on this measure. Representative
Patnan, Democrat, of Texas, said that
he also would insist that other witnesses
before the subcommittee, including an
attorney for independent brokers and
spokesman for the Better Business
Bureau. should also be heard.
Mr.. Brinknan explained that he had
prepared three bills, one to regulate
the sale Of securities, another to regu-
late real estate operations and the third
to regulate foreclosure of mortgages,
all of which are designed to protect
the public. He said that, broadly, the
bill provides that all persons engaged
in the real estate business must take
out a license giving proof of good
character and that it sets up board Of
three, one of whom would be the Dis
trict assessor one real eSate man and
a third disinterested party to pass upon
license applications. This legislation, he
said, is similar to the law in Is or 80
States, including 13 States represented
committee. Mr. Brinkman told the
committee that there had been num-
Der of cases of fraud by operators in the
District and that he found the need
for a system of regulation so as to
weed out dishonest operators. Mr..
Brinkman said he did not know Of
any group in Washington that is op.
posed TO the bill.
Hull Emphasizes Need.
Representative Hull of Mississippi
emphasized that there Is q need for
such q law In the States and in the
District of Columbia.
At the request of several members of
the committee, John A. Petty, executive
secretary of the washington Real
Estate Board, also was heard. He told
the full committee that the board in
dorSed this bill and does not object to
or oppose section Il. He explained that
section IA makes new announcement
of law which would neceSSitate change
In the title Of the bill and he suggested
that this be enacted separate from the
licensing act. pointing out that one
would regulate personnel while the other
would regulate the business.
Mr.. Petty said that 10 years expert
ence IN handling complaints coming to
the service bureau operated by the real
estate board had shown him that there
really Is serious need for such legiSla-
ton. He told the committee that If this
measure Is enacted It viii largely climb
nate those in the business Intentionally
dishonest or guilty Of unethical conduct.
Several times Mr.. Petty repeated that
the Real Estate Board Is unanimously
in favor of the Mcleod bill.
Holds Fines Would Pay Costs.
Representative Palmer of Missouri
questioned how much 1t would cost to
operate such a licensing commission
and Mr. Petty replied his belief was
that the license fees and the fines
would pay the entire cost. It Is esti-
mated, he said. that there are some $50
statesmen and $50 brokers, which would
provide an income of 900 from fees,
SUFFICIENT in his opinion to pay the ex-
penSeS of the commission.
He emphasized that the most impor-
tant need which would cause the pfin-
cipal expense would be to have q COM
petent secretary.
Representative Lampert declared that
ne believed such q law unnecessary
to control INSCRIPTIONS mem in the
real estate business in washington and
that he is in favor Of section IA, wheth-
er the real estate men like it or not.
Representative Patman argued that
the, criminal law should be made to
reach the WrOngoOerS instead OF setting
up an outside board to do 1t.
Mr.. Petty declared that the Real Es-
tate Board has no objection to anything
that will detect and punish fraud OF
any nature in the real estate business.
Representative Lampert moved that
the full Mcleod bill, With perfecting
amendments, be reported to the House.
AS a substitute motion, Representa-
tive Patman recommended reporting
the bill with everything stricken out
except sections IA and 49, and said that
he desired to be heard at length on his
reasons for thus altering the Mcleod
bill.
AS the time Of the committee was
nearly consumed, Representative Tarver
Of Georgia. Democrat, proposed post
poning any further consideration until
the next regular meeting so that he
and other members of the committee
would have an opportunity to study the
Mcleod bill.
Representative Palmer of Missouri
declared that he is in favor of general
law broad enough to punish the guilty
Nand protect the public without the crea-
ton Of boards and commissions.