Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-10
Continued From First Page.)

ords of his corporation.
Senator Tydings added that unless 3
private individual, the Better Business
Bureau, or some other body did make
a complaint against Wardman, or 9TH
ers on the list of subpoenaed witnesses
he was not in favor Of investigating
them.
Cites Senate Resolution.
Senator Blaine responded that such
a proceeding would be a challenge to
the resolution adopted by the Senate
authorizing the Senate District Com
mittee or a special subcommittee of
that body to investigate the conditions
in real estate in Washington, which
resolution, he said, also set forth evils
in the business believed to be in exist
ence here.
Senator Blaine contended that the
powers of the committee to investigate
should not be restricted by any plan to
investigate only prima facie cases.
When Senator Tydings again asked
why Wardman and others had been
Subpoenaed Senator Blaine retorted
that there was no more reason than
there was at the time Jacob Shapiro
was Subpoenaed, during the last session
| Of Congress, except as for the facts that
were developed at hearings in the Sha-
piro case.
Ex-SaIesman Testifies.
salesman Of Country Club Properties
Co., Inc, that he had resigned from the
Montgomery County, Md. concern be-
cause promises to improve the devel-
opment had not been carried out.
| The witness, William L. Abernethy,
| now a radio announcer for the National
Broadcasting Co, told of the methods
employed by the real estate enterprise
In selling lots to women of advanced
age. He declared the principal basis of
the sales argument entailed stressing
the possibility of quick resales at large
profits.
Senator Tydings declined to put his
suggestion in the form of a motion for
action by the committee, and since
Senator Blaine stood out against any
restriction of the scope of the hear
| tngs, the matter was allowed to stand
unchanged at the conclusion of today's
session.
Tydings Explains Stand.
Senator Tydings explained that In
opposing the procedure followed by the
committee, and in objecting to what
he described as "one-man investiga-
tion," he did not mean to embarrass
Senator Blaine, but rather felt that in
fairness to Washington business men
they should not be placed under a cloud
OF investigation without cause.
Prior to this discussion Senator
| Blaine called to the stand j. Henry
Oehmann of 1916 Morrison street a
certified public accountant, to testify
concerning an audit he had made OF
the records of the Country Club Prop
| critics Co, Inc. Questioned by Oscar
| II. Br1nkman, the committee counsel
Mr.. Oehmann said he found that nc
cash had been listed as capitalization
OF the company and that an item OF
| $4,000 was charged to good will. N
B. Clarke, an official of the promotion
concern was credited with having al
but two of the 200 shares of stock
issued.
The promotion concern owns no real
| estate, 1t was testified, and was acting
! in the sale of the property under q
sales contract with the former owners
Of the tract, Frank L. Hewitt and the
Pathways Land Co., represented by Maj
E. Brooke Lee.
$1S5,00O Paid on Lots.
Oehmann testified that from April
10 to November IS, lot purchasers had
paid in to the company about $l35,-
600 and that refunds to the purchasers
OF about $4,000 was shown on the
companys records It was brought out
also that the audits showed approx
mately $4,000 had been paid on prin-
/ cipal and interest to the former owners
OF the tract by the promotion concern
In this connection the resale value OF
the land was listed as $33O0O0.
Questions by Senator Tydings brought
out that Clark paid to the former own
ers Of the land the price Of each lot
| as full payment was made to him BY
the subsequent lot purchasers.
Oehmann said the records showed
that or 10 lots had been paid for in
full by various purchasers. Senator
Blaine brought out that this was or
10 out OF 200 lots subject to sale con-
tracts made by the promotion concern.
Few Paid in Full.
This makes it apparent that onlv a
small proportion of the total number
OF purchasers had paid in the full pur-
chase price, Senator Blaine said. CUES
lions by Senator Blaine and Brink
man also brought from the public ac-
countant that the commissions and ex-
penses paid by the promotion concern.
as shown by the audit, amounted Ia
ABOUT 70 per cent of the total sales
price of the lots.
Oehmann also testified that the audit
showed an item of 81 400 as an account
receivable, representing advances made
70 the statesmen, which would become
an asset when they are collected Also
IL was testified Clark owes the COMMAND
ST9lO, accounted for as advance salary
Abernethy was preceded to the wit
ness stand by Mrs. Carr, who said the
salesman talked so enthusiastically of
the prospects of the subdivision she had
been Led to believe there was gold in
those lots" e" 49,
Asked About Instructions.
Questioning by Senator Blaine of Wis.
conSln, the chairman, developed thai
Abernethy had been instructed tn in.
form prospective buyers they might ex.
pect TO resell any lot they bought at thu
end OF two months for a profit of 81
per cent on their money, at the end o.
six months at a profit of 100 per cen
or at the end Of a year at 200 per cent
He said that he had been positiveI,
ordered TO show only one prospec
around the development at time Tht
only exception to this rule, he testified
was in the case of husband and wife
which was quite rare. He declared h.
, was called down" twice for violating
: this rule.
Explaining in detail the luncheon
lecture" system employed by the com