Evening star., 1935-02-16
L|CENS|NG'F|GHT
VICTORY IS SEEN
Senate Passes Bill to Regu'
late Real Estate Brokers
and Statesmen.
tContinued From First Page.)

also the revocation Of licenses Of such
persons for improper conduct"
Charles j. Rush, executive secre-
tary of the Washington Real Estate
Board, who has visited the Capitol
several times in interest Of the bill,
pointed out that until 1882 the Dis
trict required of brokers $50 tax,
which was discontinued when it ap-
peared that the regulatory license
bill would be passed by Congress. He
said that a majority of the States,
81, including the neighboring State
of Virginia, have license laws similar
to the one provided for in the present
bill.
Under the brokers' code of fair
competition, a number of the evils
that would be corrected by the bill.
are covered. However, the N. r. A.
code is temporary and may be re-
moved by order of the President.
Teeth supplied in the bill are, IN
addition to denial or revocation OF
license, a fine Of not more than $500,
or imprisonment for not more than
six months, or both. in the case OF
an individual violator. and for
corporation, a fine of not more than
$1,000 Is provided, with Individual
penalties for officers. agents, or en-
ployes of such corporations.
King Explains Position.
In presenting the bill, Senator King
said:
pursuant to Senate resolution
Of the Seventy-first Congress, the
subcommittee on Insurance ana
Banks of the District Committee con-
Quoted an exhaustive investigation OF
the real estate, mortgage and securl-
ties situation in the District,
"In the course of its investigation
the subcommittee found that the lack
of regulatory laws governing real es-
tate brokers and statesmen in the Dis
trict rendered the public practically
helpless to obtain adequate redreSs
against fraud and misrepresentation
In real estate transactions.
Accepting the recommendations OF
the subcommittee. the committee re-
ported favorably to the Senate a bill
practically identical to the present
proposed legislation. The bill was
passed by sthe Senate May %, 1880.
The bill was introduced in the Sew
enty-third Congress and was passed
by the Senate May 10, 1884.
THE need for regulation Of the
conduct of the real estate business
has been recognized generally
throughout the country. Instances OF
fraud and abuse in connection with
real estate transactions in the Dis
trict of Columbia have been brought
to the committees attention.
Need Long Recognized.
"The need Of a real estate license
law has been recognized by the Board
of Commissioners who have repeated
" indorsed similar measures. The
principles covered by the proposed
legislation have been Endorsed by the
Federation of Citizens Associations,
the Better Business Bureau, and the
publishers OF several Washington
newspapers. Recognition Of the prin-
ciples embodied in the bill has been
accorded by the N. r. A. by virtue
of its approval of the code Of fair
competition for the real estate bro
kerage industry on April 10, 1884.
However, the real estate brokerage
code is an emergency measure and
may be terminated by executive order.
Therefore permanent legislation Is
needed to provide adequate protec-
ton to the public from the acts of
unethical brokers and to provide the
Commissioners with machinery to
furnish such protection.
"The possibilities for fraud and
other misconduct In the sale and
msnagement Of real estate in the Dis
trict are almost unlimited. The
amounts of money involved in realty
transactions are usually substantial:
the mere signing Of a document not
fully understood by the signer, or the
effect of which has been misrepre-
sented by real estate broker or
salesman, may result in loss of
many thousands of dollars by an in
nocent person"