Evening star., 1948-01-04
Court Asked 10 Rule
Against Realtors in
Civil Antitrust Suit

s~ssSuO III
Civil Antitrust Suit
The Justice Department yesterday
asked District Court to issue q ruling
IN favor Of the Government, without
trial, In the civil antitrust suit
against the National Association of
Real Estate Boards, the Washington
Real Estate Board and 16 oficials
o. members Of those groups.
Roger J. Whiteford, attorney for
the National Association, declared
last night the defendants would
night the motion when it is argued
N District Court, probably within
the next few weeks.
He disputed Justice Department
claim that District Court should
gtye such q directed Judgment on
the ground that the defendants
have admitted the truth" of many
charges against them.
Criminal Trial Date Set.
The motion fled by the Justice
Department does not apply to the
criminal court trial, tentatively set
Tor March II, on charges that the
National Association and the Wash
ington board violated the antitrust
laws by fixing real estate brokers
commission rates in the District.
The two organizations were indicted
August ~ by q District grand jury.
No individual persons were indicted.
The organisations pleaded not
guilty.
AT the same time, the Justice De-
pArtmsr1t filed . civil suit against
the two organizations, Executive
Vice President Herbert q. Nelson
of the National Association, and Is
ofncers or members Of the Wash
tiagton board.
This civil suit asked, in effect,
that the defendants be permanently
enjoined from continuing the al
legged illegal practices listed in the
criminal indictment. The civil suit
also requested that constitution or
bylaw provisions permitting uni
form commission fees be declared
In violation Of the Sherman anti
6ust law.
I'm this case the defendants, in
their paeadinss In court, have adj
lnitted the truth Of 50 many of the
substantial facts charged against
them by the antitrust division Of
the Justice Department that the
Government claims 1t Is entitled
10 Judgment without the necessity
oe expense Of further trial." John
Ford Baecher, first assistant in that
division declared.
Motion to Go on Calendar.
Mr.. Whiteford said the defend
ants are mot particularly worried"
about the Governments motion for
q directed Judgment.
He noted that no date has been
set for the civil suit trial and that
the Governments motion yesterday
would 60 on the District Court mo-
tions calendar.
This motion probably will be
argued within the next few weeks
befoYe the District Court justice in
charge of the motions calendar, at
torneys said.
II was notified tonight by the
Justice Department that they filed
the motion" Mr.. Whiteford said
last night. I'VE filed our answer to-
the original suit, and, of course. we
will argue this motion If the Gov
ernment wants to argue the point
Of law.
They ssay we have sAdmftud
enough to entitle them to<a judg-
ment In their favor. Well, we'll
certainly argue that point with
them. IT'S one Of those things the
Justice Department probably felt
It had to do"
j. sxs,Gist Of Motion.
The sist Of the motion, signed by
Assistant Attorney John F. Sonnett,
head Of the antitrust division, and
Special Assistants Victor H. Kramer
and Herbert N. Maletz, as well as
Mr.. Baecher, is a contention that
the defendants have already ad-
mitted that Washington realtors
have been required to maintain
commission rates in order to belong
TO the real estate associations.
While relating specifically toI
alleged practices in the District,
both the criminal case and the civil
suit have Nationwide application to
hundreds of local real estate boards
sfiliated with the national associa-
tion. Approximately $4,000 real
astate brokers belong to the asso-
citation.
1.-THE Governments motion" Mr.
Baecher explained, "also asserts
that the defendants have further
admitted in their answers filed in
District Court following return Of
the indictment and filing of the
civil suit that the Washington Real
Estate Board has adopted schedule
OF standard rates of commission
setting forth rates Of commission for
the sale, exchange, lease and. man
agement of real estate In the Dis
trict Of Columbia
Contract Form Cited.
''Ihe Washington board also ad-
niits issuing standard form sales
Cuttl dSt Wli4N1l COllto1AAo OAAC 1OAAOW-
ing provision with respect to rates
of commission: The seller agrees
to pay to agent the regular rate
of commission fixed by the Wash
tngton Real Estate Board"
Besides Mr.. Nelson Of the ma
tional association, the following
Washington realtors are defendants
In the civil suit:
Charles H. Hillegeist, former
Washington board president; j.
Garrett Bethel, Lewis T. Bruen-
niger, Lewis F. Colbert, S. Dolan
Donohoe, Edward K. Jones, William
L. Lebling, S. Miles Montgomery, F.
Moran McConihe, william L. Orem,
jr., Thomas w. Sandoz, J. Hawley
Smith, Raymond M. Taylor, Devere
r. Weldon and Carey Winston.
Dirksen |
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