Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-07
PROPOSED REALTY
LICENSE MEASURE
GETS ENDORSEMENT
Real Estate Board Supports
Blaine Mcleod Bill and
Cites Better Features.
BUSINESS BUREAU ALSO
APPROVES PROPOSED ACT
Subcommittee Hearings Expected
to Be Completed by Next
Monday.

Enactment of law for Washington
providing for the licensing of local real
estate brokers and statesmen and set
ting up a definite code for violation of
which SUCH operators could be prevented
from doing further business here was
Endorsed today by representatives of
the Better Business Bureau and the
Washington Real Estate Board, when
hearings on the legislation were re-
newed before the judiciary subcommit-
tee of the House District committee,
under the craftsmanship of Representa-
tive Mcleod.
The committee had before 1t two bills
on the subject, the basic principles OF
which were very similar, one sponsored
by the Real Estate Board and modelled
after the code drafted by the National
Association of Real Estate Boards.
which is in effect now in similar form
in IS States, and the other one drafted
for the Senate committee headed by
Senator Blaine of Wisconsin by oscar
H, Brinkman, former secretary OF the
Senate District committee.
Hearings on the subject are expected
to be concluded next Monday after
which a report will be made to the fun
House District committee by Mr.
Mcleod.
Backs Blaine Mcleod Bill.
John A. Petty, secretary of the WASH
ington Real Estate Board, which mao
been sponsoring its own bill IN the past
several years, swung over today 10 give
general Endorsement to the Blalne-Mc-
ieod measure. The purposes of the two
measures, designed to prevent operation
of dishonest, fraudulent or utterly IN
competent real estate brokers or sales
men he pointed out, are the same, ana
he commended some features of the
Blaine Mcleod bill as being an I'M
provement over the realtors measure.
Louis Rothschild, director OF the Bet
ter Business Bureau, told the commit
tee his organization, In the interest OF
protecting the public, earnestly hoped
that a real estate license law would be
enacted. He said, however, that the
bureau was not in a position to recon-
mend the passage of any particular Dill.
There is q definite need for law regu-
latinQ the personnel of the real estate
business here. he said.
THE situation in the real estate BUSH
ness in Washington" Rothschild added.
DIS not bad in regard to the integrity
of the majority Of the dealers. Tne
condition here likely is comparable 70
that in the average American city. 1t
could, however, be whole lot better.
Therefore. we are in favor of the en-
actment of bill covering this subject"
200 Realty Complaints.
In answer to questions by Representa-
tive Patman of Texas, Mr.. Rothschild
said that in the past year out og 3,1OO
complaints regarding business practice
fled with the bureau about 200 related
to real estate business. The bulk OF this
number, he said, related TO the free
lot" scheme. Mr.. Patman asked that he
file q statement giving more In detail
information regarding such complaints
about real estate.
Continuing his testimony, started at
the first hearing Monday, Mr.. Petty
as the spokesman Of the real estate
board, said he wanted to make plain
that his association was not opposed 10
the Blaine Mcleod bill and that IN q
number of respects he felt it would be
more effective than the real estate
board bill. He took the opportunity, now
ever to make q number OF suggested
changes in the Blaine-M Mcleod bill. One
of these was that 1t should be specined
that the proposed real estate commls-
sion include one or two members VINO
had been active in the real estate Dusi-
ness. As the measure now STANDS IL
two" real estate men be represented on
the board. Mr.. Petty also suggested
that the commission be composed OF
three members rather than FOUR 10
prevent tie on vote.
The realtors secretary said he had no
objection to a change in the financing
of the commission as proposed IN tne
Blaine Mcleod bill, which would make
possible an appropriation by Congress Il
g.. e. f,1YnfiOnipU of the COM
mission. Hearty Endorsement was gwen
nv Mr.. Petty to the clause in the Blaine
Mcleod bill providing for public near
incs on charges against real estate
xaIesnen or brokers and to other clauses
giving the commission power 70 SUD
noene books and papers Of concerns as
such hearings for an appeal to the DlS-
trict Court Of Appeals in any Ltlgatloh
growing out of the commissions action.
<rhis nroyision about power to subpoena
books and papers, he said, was Spieh-
did improvement over the realtor DILL
Fears Interpretation.
The question as to the need OF .
clause in the Blaine Mcleod DILL MAJ,
ing it an offense to stimulate = rsai
estate sale or mortgage TRANSACTION WIZ
the purpose Of defrauding, was raised py
Mr. petty. While heartily IN accord
with the intent of this clause, sucn mis-
representation, he felt, was covered In
existing statutes relating to frauds and
in provisions of the license law else
where. He voiced a fear that pos
sible Interpretation Of this clause might
work hardships on legitimate transac-
ton under which property was solo or
mortgaged with the use OF sUra"
for the real owners of property.
Mr.. Pat~.AY,. however, said he did not
see any basis for fear in legitimate
transactions because the clause specif1-
cally referred to simulated sales or
loans made for the purpose OF misrep-
resentation as to the value OF property
Early in the hearing Mr.. Patman TOOK
the opportunity to explain that the pro-
posed real estate license law mac 90
connection with or was not inSpiteu DS
- II Smith CO