Evening star., 1947-08-30
Counsel Says
Realty Group
Acted Honestly
Leohy Sees Attempt
To 'Fusten Sherman
Act on Business

Officers and directors Of the
Washington Real Estate Board.
charged with criminal violation of
the antitrust laws through fixing
brokers fees. were described today
by their defense counsel. William
E. Leahy, as having "acted honestly
and strictly within the law as they
saw it
Mr.. Leahy said new principle Of
law was involved in the case-that
OF fastening the Sherman Anti
trlst Act on the real estate busi-
ness"
- THE law Of the case is the i'm
portant thing in the whole proceed
ing and will be ca-efully threshed
out in appropriate notions" he
added. ITO do this will require
considerable time, which I'm sure
the court will be willing to grant
because of the Importance of the
question"
Arraignment Set for Thursday.
Preliminary arraignment of the
indicted Washington Real Estate
Board and the National Association
of Real Estate Boards has been set
for Thursday. Summonses for the
two corporations were to be served
today. Roger Whiteford is repre-
senting the national association.
In a prepared statement today,
Mr.. Leahy said the Washington
group was confident that ION the
record of many years standing, it
has rendered real public service
in the PRONUNCIATION and publication
OF its code ethics and its recommen-
ded commission schedule"
1T has been an honest and sincere
attempt at self-regulation in the
field of real estate operations in the
District" he declared. Its officers
and directors have acted honestly
and strictly within the law as they
saw it.
Many are Civic Leaders.
They have been men of civic pride
in Washington and many of them
are tried public leaders in this
community. They are confident that
in the charges preferred against
them, both in the civil and criminal
action taken, the public will find
they have acted only in the public
interest in attempting to secure it
against overreaching and imposition
while assuring its membership of q
fair return for services rendered.
THE many years of public accep.
tance and approval of their ethics
and the stabilization of their fees
has convinced them of the conf
dence the public has in their integ-
rity and honesty and they pledge
their continued work in the future
in that same public interest for its
protection"
May Ask More Time.
1t seemed likely today the associ-
ations might move for more time to
make even a preliminary showing.
Herbert U. Nelson, executive sec
retary of the NAREB, with Offices
in Washington and Chicago, said
the indictment was sudden and un-
expected and necessitated the coll
lection of a vast amount of data
from member firms all over the
country.
If found guilty, the trade groups
could be fined up to $4,000 each.
No hearing date has been set as
yet for civil suit filed by the anti
trust division of the Justice Depart
ment on Wednesday against the
two associations, the executive vice
president of the national board and
IS individual members of the WASH
lngton board.
Food Inquiry in Prospect.
The suit seeks to enjoin the de-
PENDANTS from participating in al
legged price-fixing practices and asks
the court to void rules of the two
boards said to be in violation of the
antitrust laws.
The antitrust divisions drive
against high prices and questionable
trade practices in real estate and
gasoline distribution in the District
probably will be widened next week
to include grand jury investigation
in some other jurisdiction of mount
ing food costs.
The jury investigating the gaso-
line and oil situation will resume
the inquiry September after hear
ing 26 witnesses.
A second jury was expected to re-
sumo its inquiry into real estate
practices here following the Labor
Day week end.
EIerfri~nI Honfrnrfore