Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-25
| OF 3 Blaine BILLS
REPORTED TO HOUSE
Real Estate License Law
Selected by Committee.
Others Studied"

The House District Committee to-
day ordered favorable report on the
Senate bill fathered by Senator Blaine
of Wisconsin to define, regulate and
license real estate brokers and real
estate statesmen, creating a real estate
commission in the District and de-
signed to protect the public against
fraud in real estate transactions.
The committee decided that the two
other bills sponsored by Senator Blaine
to regulate foreclosure Of mortgages
and the sale of securities should bt
more carefully studied and action wa:
deferred on them until a special meet.
ing of the committee tomorrow
morning.
"Grave Abuses" Condemned.
Representative Hull, Republican, o.
Wisconsin vigorously condemned grave
abuses" in connection with real estate
promotion and the sale Of trusts anc
securities. He mentioned particularly
the Wardman Co., the F. II. Smith Co
and the Swartzell, Rheem & HenSey
Co. He declared that the public /!
being wheedled out of funds and thai
the people of the country are looking TX
Congress TO protect investors In prop.
critics in the National Capital. He de.
clared that it is imperative to get thii
legislation passed at the present Ses-
sion, and when protests were hearc
from other members that this measure
is not perfect, Mr.. Hull declared, INC
matter whether it Is perfect or not, II
gives a measure Of protection"
Oscar H. Brinkman, who was specia'
counsel for the Senate Committee In
drafting this program Of legislation ir
regard to real estate, securities and
mortgages, explained that it represent,
seven or eight years of careful study by
conservative organizations, and wa:
slightly modified to meet local conditions
Most of its provisions, he said, are in
cluded in the laws in five States, and
in a number of other States similar
provisions have been adopted. Speak
ing particularly of the bill safeguard
ing foreclosure of mortgages, Mr.
Brinkman emphasized that it has pass
ed the Senate without a dissenting
vote.
Addison Opposes Plan.
There is nothing radical in this
Blaine program, he said, but that II
is largely the standard law in many
States.
Mr.. Brinkman explained that thu
foreclosure of mortgages has been
very profitable business here and thai
those engaged in it do not care to have
any regulation whatever, and that thu
same is true with regard to the sale o.
securities. His investigation showed
that the people here have been de-
frauded out of millions of dollars.
Francis Addison, jr, representing the
District of Columbia Association Of
Bankers, the Washington Real Estate
Board, the Womens Bar Association
the Barr Association OF the District
citizens associations, the Washington
Board of Trade and its Real Estate
Committee, vigorously opposed the
pending legislation. He explained thai
the recent failures and exposes of GER
tain real estate and security sales
houses would not have been prevented
by the pending legislation.
Urges Careful Consideration.
Representative Hull, Republican, OF
Wisconsin, asked him If any of the or
CARNATIONS he represents had done
anything to stop these frauds.
Mr.. Addison claimed that this legis-
lation would prevent more than half of
the banks from acting as trustees and
that the duties imposed in the bill are
such that no trust company or national
bank would assume the obligations.
Representative Patman, Democrat of
Texas, declared it was extremely i'm
portant to properly protect the investing
public, and that the entire program of
Blaine bills toward this end should have
very careful consideration. He desires
to have the real estate licensing law,
which has already been reported, re-
called for consideration, with the two
other bills at a special meeting called
for tomorrow morning.