Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-08-23
ReaItyProbe Expected
To Cover Practices
During Past 5 Years

The grand jury investigating real
estate business practices for possible
violations of antitrust laws was in
recess until Monday as local realty
operators and national association
officials today studied a "pattern"
indicated thus far in the question
ing of nine witnesses.
Spokesman for the National As
ISOLATION of Real Estate Boards, the
Washington Real Estate Board and
several individual companies here
seemed to agree that the Justice
Department inquiry is Nation wide,
that it is neither new nor sudden
move, that the grand jury sessions
will continue for several weeks more
and that brokerage commission
rates are the principal point of ex-
animation.
Check to 1912 Indicated.
There were indications yesterday
that the investigation covers a pc
Rod back at least to 1912. Wit
nesses at the afternoon session were
Robert Gaylon and Frank r. Spear,
who said they were formerly in the
real estate business here but mot
during the last five years. The only
other witness yesterday was G..
Calvert Bowie, Washington real
tor, who was in the jury room more
than an hour.
Maryland Conviction Cited.
Spear was identified as former
local dealer who was sentenced to
the Maryland House of Correction
for four-year term in December,
1914, following a conviction on
charges of obtaining money under
false pretenses.
At the trial in Montgomery Coun-
ty Circuit Court in Rockville he
was accused of having accepted
$3.50 in 1912 as a deposit on Ia
koma Park (MdD lot he did not
own and did not deliver. Defense
counsel told the jury he had re-
ceived a letter from the owner Of
fering to sell the property. They
said the defendant became "finan-
cially embarrassed" because of war
time conditions and was unable to
refund the deposit.
An official of the Washington Real
Estate Board said Spear had not
been member of that organization
and has not applied for member
ship.
Among witnesses reported to be
scheduled for Monday are Charles
j. Rush. executive secretary of the
Real Estate Board;
Rufus S. Lusk, real estate statisti-
clan and analyst, and Louis E. Breu-
ringer, head of a local real estate
firm. Bert Saunders, secretary of
the Michigan Association of Real
Estate Boards and a member of
the National Associations Com
mittee on Rules and Rates, has
been subpoened for early next week,
association officials disclosed.
Files Previously rendered.
1t was learned that Justice De-
partment antitrust division repre-
sentatives several months ago re-
quested and were voluntarily given
access to the National Associations
files. They were reported to have
shown particular interest in corre-
Spondence between Leon Todd, chair
man of the Rules and Rates Com
mittee, and members throughout the
country concerning commissions
paid brokers on real estate trans
actions. Mr.. Todd testified last
Thursday.
An association spokesman said
those rates are published periodi-
cally for the entire country. AL
though not the same in every city,
they have been usually about per
cent on transactions up to $4,000
in most communities, he explained,
Rates Not Mandatory.
The spokesman said members of
the association generally abide by
the commission rate procedure, al
though there is no fixed require
ment that they do so and no none
tary penalty" if they do not.
David Kramer, a special assistant
to the Attorney General, and Her
bert Maletz, antitrust division at
torney, who are conducting the
grand jury investigation, today de-
scribed the inquiry as being con
cerned with antitrust matters"