Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-15
Original Owners Take Back
Country Club Properties as
Company Shuts Down.
NEW CONTRACTS OFFERED
PURCHASERS OF LOTS
Lee and Hewitt Agree to Let Buy.
srs Keep Holdings With Credit
for Past Payments.


vision lots by means of free lunch
free lecture" promotion system, brought
to Washington for the first time by N.
B. Clarke from the West Coast and
fashioned after methods used in the
,, noted Florida boom, has come. to def
mite end leaving Investigations and diff
fculties in its wake.
The Offices of Country Club Proper
ties, Co., Inc, the promotion concern,
of its purchase contract with the owners
of the property, it was revealed yeSter-
day. Clarke, principal spirit in the pro-
motion, could not be reached for a
statement.
AS an aftermath of the operations Of
the promotion concern, which Clarke
sometime ago told Senate Investigate
ing Committee had sold 100000 worth
of lots In eight months OF last year, the
Department Of Justice is continuing its
study of the records of the concern to
determine if any laws had been violated.
In another quarter efforts were started
yesterday to straighten out the bust
ness relations between the owners OF
the subdivision and in the large group
Of individuals who contracted to buy
lots.
Will Give Credit.
Mai. e. Brooke Lee, representing the
Pathways Land Co., and Frank L. Hewitt,
owners of the two sections of Country
Club Park located between the Indian
Spring and the Argyle Country Clubs,
IN Montgomery County, for which the
Country Club Properties Co. was sales
agent, revealed yesterday they had ar
ranged to credit the lot purchasers with
payments made to the promotion con-
Germ If the buyers would sign new con-
tracts directly with the present owners
of the land
j. Edgar Hoover, chief Of the bureau
Of Investigation, Department of Justice.
said yesterday that one of his agents
is at work on the records of Country
Club Properties Co. and at the conclus-
ion OF the investigation would make
report to United States Attorney Leo
A. Rover
The books of the company were taken
under subpoena by Mr.. Rover for the
investigation after a group Of lot buyers
had given testimony before the Blaine
Subcommittee Of the Senate. which
spent some time studying details Of the
operation Of the promotion concern.
Purchasers Get Notices.
Mai. Lee has sent notices to holders
Of purchase contracts explaining the
plan Of his concern 70 credit the buyers
with payments made to the promotion
concern. and Mr.. Hewitt yesterday held
conferences with purchasers Of his part
of the subdivision with the same OBJ
iective.
Maj. Lee, in his notices, pointed out
that the Pathways Land Co. Is now and
has been for the past i've years the
owner of the part Of the tract along the
Forest Glen road Titles were to be
given lot purchasers when they had
made full payments to the promotion
concern. While the lot buyers were
making monthly payments to the pro-
motion concern. Clarke, under agency
contracts with the owners Of the tracts,
was to make certain payments to them
The letter Maj. Lee has written to lot
purchasers states:
THE Country Club Properties Co.,
Inc, has delivered to us lot purchase
contracts which that company executed
with various individuals for lots in
Country Club Park. The delivery of
these contracts to US was accompanied
by an authorization to return them, at
our convenience and discretion, to thei-
respective makers.
Offers New Contracts.
I'VE are willing TO enter into an en-
tlrely new contract with the individuals
who signed lot purchase contracts with
for lots in Country Club Park at The
figures and rate of payment that these
individual contracts have been reported
to us by the Country Club Proper
ties, Inc.
These new contracts which we offer
TO sign viii give to each contract pur-
chaser with Country Club Properties
Co., Inc, full credit for all moneys that
they have paid to Country Club Prop
critics Co., Inc, as their accounts have
been stated TO U.s.
There is no legal obligation upon
us to make the above set forth offer,
but we believe it a helpful policy from
the standpoint Of those who have con-
tracted to buy lots from Country Club
Properties Co., Inc, and a beneficial
policy from the standpoint Of this fast
growing and valuable section Of sub
urban Montgomery County.
You will further note that we are
not requiring any cash payment from
any purchaser or any addition to the
rate Of monthly payments which the
contract purchaser has already con-
tracted to make to Country Club Prop
critics Co., Inc"
Clarke Contract Cancelled.
The purchaser, according to the new
sales contract, Is to agree that full in
spection has been made Of the lots and
the statement is carried that neither
the seller nor his agents have made
by representations concerning any i'm
rrovements not now In existence other
than those stated herein, and that there
has not been made any representation
rs to resale Of the property by the
vendor or his agents"
Mai. Lee said that the contract with
Clarke's concern had been cancelled
after there was default in payments
required to be made to the owners Of
the property.
Maj. Lee also informed lot buyers
that the Pathways Land Co. has not
Mt any time participated in or has
been responsible for the management
Of Country Club Properties Co." and
that the ownership company had def
nitely declined to accept assignments
of property or contracts from the pro-
motion concern.
The system employed by Clarke and
the promotion concern was based on an
appeal to buyers to make money
quick" by buying lots while values were
rapidly rising and sell to other buyers
before the subdivision was developed.
Clarke was the principal lecturer" at
large gatherings Of prospects, mostly
women, who were given free automobile
rides to the subdivision, served free
lunches and give free lectures. Sales
contracts were closed In a series Of tiny
wooden booths, in which there was
room but for two persons to be seated
ut q table.
4 II was testified at the Senate COM
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