Evening star., 1932-12-23
REALTY COMBINE
WITH 1900 HOMES
IN GRIP CHARGED
Brinkman Tells Rent Inquiry
Practices Cypress Buyers
and Tenants.
PROSECUTION URGED
UNDER EXISTING LAWS
Subcommittee Counsel to Be An
swered by Real Estate Board
Representative.

A charge that there exists in Wash
1ngton an unlawful combination" Of
real estate agents, controlling Eear.y
$4,000 apartment and home dwelling
units. which should be pro. ecuted under
existing law, was made before the Ssn-
ate Rent Investigating Subcommittee
today by Oscar H. Brinkman, its attor-
ney and investigator.
Brinkman. continuing his lengthy re-
port on the rental situation here, entered
into the record a five-page statement
summarizing his conclusions with re-
spect to the alleged combine.
The attorney, who.e accusations are
expected to be answered before the con-
clusicn Of the hearings by represent
atives Of the Washington Reel Estate
Board, said he based his conclusions on
the minutes and other records of the
realtors organization.
These records clearly show, upon
even casual examination, confirmed by
close study, the existence of combi-
nation unlawful in its nature and pur-
poses and oppressive to home buyers
and tenants in the District of Colum-
bia, as well as In the suburbs adjacent
to the District" Brinkman asserted.
Prosecution Is Urged.
1.-THE combination is one that can
and should be prosecuted under exist
ing laws. and conviction and impriSon-
ment of the participants is necessary
and vital for the protection of the pub
lie interests"
The major points brought out by
Brinkman, which, he said. show there
has been in continuous existence in re-
cent years IAN effective combination of
Arta - 49,
and loan correspondents of insurance
companies" are that the combinations
purposes were:
"O Use concerted effort to prevent
rent reductions, or even slight conces-
Sions to tenants.
"(2) Agree upon and fix minimum
and excessive scales Of commissions for
loans upon real estate including single
dwellings and apartment houses con-
tanning many residence units.
"(3) Agree upon and fix minimum
and excessive rates Of commission upon
renewals Of mortgages or deeds of trust.
go Limit, restrain and unlawfully
restrict competition in the renewal or
bidding solicitation BY letter or other
wke. of the borrower by other members
90 Limit the advertising of mem
bers of the board, so that they prac-
tically could not offer to renew loans
without commissions o. at lower rates
than the minimum established by the
board or for no commissions at all.
"(6) Restrained and restricted the
giving OF free rent as inducement to
tenants to sign leases.
"O Held meetings Of agents at
which 1t was agreed that rent reductions
and repairs OF apartments were not 'ad-
v1Sable.'
Black List Of Tenants.
"(8) Establishment by unpublished
OF unwritten rule Of black list of ten
ants who had leases with other men,
bers Of the combination, who were un-
willing to release them so that they
might move, even in cases of dire
"(9) Continued effort to restrict
apartment properties to the control Of
enc agent only, so that there would be
no competition between agents who
were members of the board in renting
apartments in the same building.
"OO) Agreement and fixing OF
standard minimum commission of S
per cent for the collection Of rentals
and the management of apartment
properties, thus limiting and preventing
the benefits Of competition for manage
ment business, which previously had
been handled for per cent in many
cases.
"Q1) Concerted effort by the Wash
tugton Real Estate Board, through a
Governing Committee, to influence
Judges of the Municipal Court not to
extend leniency in eviction cases to ten
ants who were about to be moved out
into tho street, without shelter.
"U2) Attempt to influence newspa-
pers of Washington not to print real
estate advertisements containing such
. statements as, No Agents or Brokers
, Need Apply"
4 Loan Renewal Restraint.
The restraint with respect to the re-
newal or replacement OF maturing
loans, Brinkman told the subcomn1it-
tee, went so far as to prohibit distribu-
ton Of any printed or written matter
with reference to the making OF
mortgage loans to persons whose loans
we're about to mature.
Members of this unlawful combina-
ton were closely associated with the
financial institutions Of the city and
have almost q stranglehold on the
available funds for real estate fnanc-
ing In the Nations Capital" Brinkman
said. THE Washington Real Estate
Board worked in cooperation with the
Operative Builders Association. the
District Bankers Association, the Build
ing Owners and Managers Association
and other similar groups in tie-up so
complete that for any member to dis
regard or violate the rules and restric-
tions limiting competition might easily
result in financial ruin for such indi-
Ndual."
A brief discussion of the foreclosure
law here and the advisability of a re-
demption provision followed Brinkman'S
testimony. after which Senator Capper
adjourned the hearings until 1890
An Tuesday.
CONVICT SENnS Phi IcE