Evening star., 1934-07-28

tCmLlnneo Ffotn Flask rksel
crafty and charges we're hard TO prove.
The Better Business Bureau issued It's
warning through the newspapers. m
forming the pttblic Of the methods
that are used.
One Company Left.
These combined efforts had their sf-
feet OF course, but still the operators
thrfyed. Then came the code, and Is
a result only one free-lot company Is
known 10 be doing business here AZ
present. and this nrm has been put
on notice OF the code provisions.
The code states that no member
of the industry shall solicit, sell or
offer for sale real property hy offer
ing a free lot or conducting lotteries
for the purpose Of influencing pur-
chaser or prospective purchaser OF real
property"
The effectiveness of this provision
was evidenced q few days ago. The
Better Business Bureau received a
complaint from a woman living in q
washington suburb that she had paid
IS for a free lot and then discovered
abe had not not won anything and the
lot was not free.
Ths bureau forwarded the com"
platnt to Raymond J. Walter, ~ X. A
compliance director for the District
within a week the complainant
money had been returned
Walter wrote AZ follows to the Of
Tending Arm: 49,,
"You have been advised that this
code Is tn effect and will be enforced.
I suggest that you take due eognlzAnce
Of this code and the provisions thereof
IN order that il viii not be necessary
20 take any decisive action against
your company"
Activities Widespread.
According to Rothschild. there was
widespread activity of free-lot oper-
ators throughout the past year. Botn
telephone and door-to-door solicitors
were used TO inform persons they had
won free lots.
"The trick, of course" said Roth
schild, was. that TO get the lot, the
victim must pay for incidentals, whisa
totaled enough 70 give the promoter
q good profit
The local code authority for the real
estate brokerage industry has not yet
been established and that Is why COM
plants are being handled IN the first
instance by walter. Under the usual
procedure, they would 80 first to the
code authority.
The free-lot scheme. although time
worn, still Is efficacious- Even cautious
persons have been drawn into the net
by schemers. They operate on the
theory that every one Is curious 70 Q
certain degree and this curiosity viii
suhmerRe caution II the appeal 10 s'if-
ficiently artful.
When the victim Ia informed he has
''won" o lot, he also is told ne must
visit Il within the next a hours.
Often press of business prevents get
ting away On such short notice and
gives the agent o chance to explain
the motive for giving away" q lot.
lie SAYS that the winner" is required
to visit the property, since the purpose
Of the contest was 10 get respected and
influential members Of the community
to inspect the property and, In thereby
showing their interest, influence others
TO buy.
Granted an Exception"
II the victim really cannot get
away, an exception" Is made IN his
case and the transfer consummated.
During the next few days the victim
inspects his lot and finds that he VIII
need the adjoining lot IN order 70
build on 1t. But the next-door lot
cannot be had because 1t has been sold
and the new owner is asking very
high price" he is told.
Then comes the happy solution.
'why don't you trade in the prop
erty?" says the agent. I'VE VIII
allow you the market price on the lot
YOU have won on the purchase OF 0
sfee elsewhere in the development
The market price mentioned Is many
times the $50 or so he has paid for
legal papers, and the proposition
sounds fair to the victim. who does
not know that the So-called legal
costs" total considerably more than
the lots value. The final stage reached.
the deal is put through with the vic
tim paying many times the real value
for house site and never knowing 1t.