Evening star., 1947-08-22
Extended Probe
0fRea| Estate
Men Indicated
National Association
Officers Meet Here;
Retoin Attorney

1TdIlO jury questioning OF WdSn-
ington real estate company officials
will "go on for some time" David
Kramer, a special assistant to the
Attorney General, said today, as the
jury met this morning for the third
time.
Mr.. Kramer, with Herbert Maletz,
also of the Justice Department anti
trust division, is conducting the
grand jury investigation which, ac-
cording to one witness yesterday, has
local real estate operators guessing"
as to its purpose.
In the belief that the investiga-
ton, brought before the grand jury
last Wednesday by Justice Depart
ment special prosecutors, Is directed
mainly against the National Asso-
ciation of Real Estate Boards, Off
GERS of that association met here
yesterday to discuss the situation
and retain an attorney.
Go Before Grand Jury.
Two association officials, Leon
Todd of Camden, N. j., former
Rules and Rates Committee mem
ber, and Miss Dixie Duke, Office
manager of the 1887 K street NV.
headquarters, appeared before the
grand jury yesterday. The only
other witness at the two-hour ses-
sion was J. Wesley Buchanan, local
realtor.
Attorney Henry E. Price, who was
engaged as counsel by the national
group, and Herbert U. Nelson, ma
tional. executive vice president, said
today they still do not know the
purpose Of the investigation. Mr.
Price added that he knew of no spe-
cif1c action or public statement
planned by the association at this
time.
Association officers and real estate
operators in Washington are still in
the dark as to the exact nature of
the investigation and the number
Of witnesses likely to appear before
the grand jury, Mr.. Price reported.
II don't want to aScribe any mo-
tives," he said when asked why he
thought the Justice Department
launched the investigation.
Mr.. Nelson said his group has no
official notification that it is being
investigated. He added that mem
bers believe the investigation is ma
ton wide in scope and concerned
with the national association be-
cause "our members are being sub
poenaed by the grand jury as gov
ernment witnesses"
Move in Series.
The national association official
described the investigation as prob
ably one move in series of housing
situation inquiries by Congressional
committees as we'll as the Justice
Department.
Although other officials of the
national association are expected to
be called before the grand Jury, most
witnesses reported to have received
subpoenas for today and early next
week are associated with Washing
ton real estate concerns or the
Washington Real Estate Board.
G. Calvert Bowie, Washington
real estate man, was the only wit
ness present when the jury con-
vened this morning. Mr.. Kramer
refused to say whether other wit
nesses had been called for today or
whether an afternoon session would
be held. Mr.. Bowie was accom&
panied by Mr.. Price.
On Stand One Hour.
Mr.. Bowie testified more than an
hour. The grand jury recessed until
early this afternoon, when, accord
ing to Mr.. Kramer, at least one
other witness will appear.
Several witnesses thus far have
indicated the investigation seems
aimed particularly at the general
practice whereby realty brokers re-
eeive q commission of per cent on
transactions up to $4,000 and 8
per cent on those above that amount.
During the last two days, the reg
ular July grand jury in District
matter for about two hours each
afternoon.
Lengthy Sessions Expected.
Between 20 and 40 representatives
of real estate companies, as well as
officials of the Washington Real
Estate Board and the National Asso-
station of Real Estate Boards are
reported to have been subpoened.
You can be sure that these ses-
sions will go on for some time" Mr..
Kramer replied, when asked about
the probable duration of the in
vestigation and the number of pro-
spective witnesses.
An earlier witness, r. A. Hum
phries, jr., said he believed the in
vestigation was directed primarily
against the national association in
an effort to prove that commission
rates were fixed by members of the
association and monopoly thereby
created.
n