Evening star., 1947-08-28
Grand Jury
Continued From First Page.)

Germ is not bound by prices an
nounced by the bigger Oil companies
and that it is free at any time to
I buy products from more than one
| company.
The wider probes of the housing
and construction industries. an anti
trust division spokesman explained,
"conceitably". could go on in other
parts of the country.
This" he said, could be not
merely with the idea of getting in
dictments but of using grand juries
primarily for investigative pur-
! poses"
Mr.. Clark also indicated a
more extensive investigative, pro-
gram when he commented on
the District grand jury's finding
yesterday and the civil suit filed
| by the Government. Earlier this
month the Attorney Genel al ordered
stepped-Up department action
against any conSpiracies I'd increase
housing, clothing and food prices.
Artificial Restraints Cited.
"Our inquiry into the housing
field" Mr.. Clark stated, indicates
that artificial restraints on competi-
ton. such as those involved in this
matter, bear a definite relation to
present high housing COSTS
The indictments were returned
late yesterday before Justice Rich
mond B. Keech by the regular July
District grand jury which began its
inquiry into real estate practices
exactly a week before.
The w. R. E. B. and the N A. r.,
E. B., with headquarters in Chicago,
were indicted as corporations. No
individual officers or members of
either organization were. charged
in the criminal indictment.
The indictment, moreover, did not
apply directly to values or prices
of property sold, leased or other
wise transferred in the District.
Restraint of Trade Charged.
1t charged that the boards violated
the antitrust laws by criminally con-
spring for years to restrain trade
in the housing field in the District
by fixing the commission rates re-
ceived by real estate dealers in prop
erty transfers. This charge covered
not only commission rates on sales
but on leasing, exchanging or man
agement Of real property.
If convicted, each organization
could be fined uD to $4,000.
Arrangement of the defendant
board and association was expected
in District Court some time next
week. In accordance with usual
procedure, an official of each organ
ization was believed likely to appear
personally and enter a plea for the
Irrespective corporation.
Spokesman for the board and the
association left no doubt the organ
liza ton would plead not guilty.
Statement Is Issued.
Charles H. Hillegeist. Washing
ton Board president, issued the fol-
lowing statement for that organi-
alton:
The activities of the Washington
Real Estate Board have been and
are motivated with the best in
terests of the public in mind.
over generation ago the board
adopted its code of ethics to assure
the public of a high standard of
dealing in real estate transactions.
The public has long relied upon the
commission rates.
Amy action of the board in the
last several years with regard to
any change in its rates was simply
! to equalize them for all areas Of
the city SO that the public would
| have some yardStick to go by as
guide Even the local courts
have relied upon the commission
schedule of the Washington board
in real estate matters before the
court"
Charles ]. Rush, executive Sec
retary of the board, recalled that
the Washington board was the
main moving force for congress
sional enactment of District real
estate license law patterned after
the. boards code of ethics.
National Group to Reply Today.
This is the first Indictment for
the violation of Federal antitrust
laws 1 have ever heard of where
the allegations are based on evil
dence so generally known. under
stood and appreciated by the pub
lie" he said.
I'VE helped the antitrust division
of the Justice Department to be-
come acquainted with our practices
over a year and half ago. We
further offered to furnish the Gov
ernment with any other facts or in
formation they might wish and ac-
tually collected recent printed ma
terial and correspondence to take
to the grand jury investigations
Washington headquarters OF the
national association announced they
would issue a statement later today
Civil Suit Filed.
While the grand jury was return
ing the indictment, the Justice De-
partment filed in District Court a
| SNll dIltl- u OoG ooAS OcoAa's eAAS
Washington board and the national
association, as we'll as the executive
vice presidents of the association and
Is directors of the local board.
This suit asked the court for a
permanent injunction to prevent
these defendants and other realtors
from participating in any such CON
spiracy" or similar agreements in
the future.
The suit also asked the court to
declare illegal and to cancel the
alleged unlawful provisions of the
boards constitutions, rules and code
of ethics, which, according to the
Governments complaint, fix uni
form commission rates in the real
estate business.
! individuals Listed.
The individual defendants in the
civil suit are Herbert U. Nelson, ex-
ecutive vice president Of the ma
| fall