Evening star., 1947-01-01
Defaults stoBriinq
More Controls,
Builders Told
License Unit Head
Warns on Losses
On Veterans Homes

Builders may find themselves
subjected to controls never be-
fore contemplated by licensing
authorities as a result of recent
losses by veterans through de-
faults on home-building COM
mitments, Chairman Edward A.
Dent of the District Real Estate
Commission said today.
"The Government has placed
banks, building and loan associa-
tions and the issuers of securities
under strict regulation, and it may
be something similar will have to
be done with respect to builders in
their handling of money" he said.
Ways of doing this will be studied
tomorrow when the commission
meets with a committee of the
Washington Real Estate Board to
review recent cases of non perform
ance, Mr.. Dent said.
He added he was not sure repeti-
tion of defaults such az have al
ready come to light here could be
prevented by new regulations.
To Go Into Problem.
1--WE are going to go into the prob
lem thoroughly to see what can be
DONE" he said. Throughout the
country, licensing laws have been
written with control of brokerage
operations in mind.
Real estate commissions never
have been given means of control
ling the financial operations of
builders except through revoking
licenses if they also are brokers'"
Even if tomorrow's conference
suggests means of guarding the in
terests of home purchasers more
effectively, Mr.. Dent said he thought
it probable The responsibility would
fall to an agency other than the
Real Estate Commission.
Aside from the meeting with rep
resentatives of the Real Estate
Board, Mr.. Dent said the commits
sion plans to investigate what, if
any, business dealings Builder
Stanley P. Hough had in the Dis
trict.
Hough was arrested here last
Monday night on charges preferred
in Maryland after he addressed a
meeting of veterans. 1t was charged
that he obtained money under false
pretenses in connection with homes
for veterans projects.
Commission Powers Limited.
Discussing the program of pre-
venting losses to persons depositing
money for homes, Mr.. Dent said he
felt the public is not aware of the
limitations Of the commission.
1--WE can't send an investigator to
a mans Office to find out how he
is doing business" he said.
He explained the commission must
issue a brokers' license to any one
providing adequate references who
has not been convicted of an offense
involving money within the preced-
ing five years and whose trust
worthiness has not been impugned
by testimony at public hearing.
The commission frequently re-
ceives protests against licensing of
certain applicants, Mr.. Dent said,
but the protestants usually refuse to
testify at public hearing.
"All of our actions are subject
to review by District Court and we
must be on firm ground" he COM
mented.
Builders Record Here Good.
washington builders, in general,
have a very good record" Mr.. Dent
said.
The commission has licensed more
than 1000 brokers since its estab-
lishment in 1887, and there have
been but % claims filed against
completion bonds, he revealed.
Further, the commission has been
able to obtain settlements of a
total value of $4,000 to $4,000 for
compliments through adjustment
of MISUNDERSTANDING" he said.
Meanwhile, Charles E. Ford, at
torney for Hough, said he plans to
confer with his client "in a couple
of days" to obtain all facts of his
difficulties.
Hough is at liberty in 1000 bond
during the 30-day continuance
granted the Government yesterday
in Municipal Court on fugitive
from justice hearing to permit
Prince Georges County authorities
time to send extradition papers here.
Carr to Study Hough Case.
Edward R. Carr, president of the
Home Builders Association of the
Metropolitan Area, said he will con-