Evening star., 1960-12-07
Commissioners
Call for Bills on
rode Practices
BY SAM EASTMAN
Star Stan Writer

1IliS legislative aCCdck on
shady business maneuvers was
proposed by the city's Manage
ment Office.
The proposal, along with rec
concentrations for community
level actions to cope with the
problems, would supplement
licensing and bonding regula-
tions in the fields where the
controls are imposed.
The report was the result of
a study of "malpractices" in
the home improvement indus
try. Proposed licensing and
bonding regulations for this
business group are to be pre-
sented to the Commissioners
soon.
Under yesterdays action, the
Corporation Counsel's office is
to draft two bills.
One is a Deceptive Trade
Practices Act" This law would
be aimed at reducing the cases
where the victim finds himself
in financial trouble because he
has unwittingly signed a docu-
ment such as a deed of trust
or a promissory note.
Provides Safeguards
The proposed law would in
clude a restriction on coming
a person into signing a blank
contract along with other Sc
curity or Indebtedness papers.
Safeguards would include re-
quirements that promissory
notes and deeds of trust be
clearly identified, and that sep
arate forms be used for the
various documents.
, Violations would constitute
prima facie evidence of fraud
and convictions would carry
stiff criminal penalties.
The other bill would require
registration Of trade names for
all corporations, partnerships
or individuals conducting busi.
ness in the city. This would be
used to cope with the tactic Of
the unscrupulous business OPP
orator who changes names to
avoid detection and law suits
land to cover his past opera
tions. the report said.
The District is one of the
few Jurisdictions that does not
have such a statute. according
to the Management Office. The
proposal was that the Commits
sioners could administer the
law by establishing in the
Office of the Recorder of Deeds
one central place for the regis
tration of the trade names.
Aids Legal Action
According to the report, the
recommended legislation would
simplify, by establishing a pre-
sumption of fraud, legal action
against the INSCRIPTIONS op-
orator who uses aliases.
The Commissioners also in
dorsed a proposal for either new
general fraud" legislation or
the updating of existing laws
to deal with crooked practices.
The Commissioners directed
their aides to consult. with the
United States Attorneys office
on the best method for drafting
legislation.
The report said the United
States attorneys Office and
others "feel that there is need
for either undermining and
Tightening up the patchwork of
existing legislation which serves
as a basis for fraud prosecu-
tions or seeking a general
fraud statute"
In addition to the recon-
mended new legislative weap-
ons. the report, signed by w. K.
Holl, management officer, and
indorsed by Schuyler Lowe, di-
rector of general administra-
tion. recommended:
/. That the Commissioners
meet with leaders of the home
Improvement industry to press
for creation of IAN effective
self-policing organization"
Ad Code of Ethics
2. That the Commissioners
call a conference of industry
and government representatives
to develop an overall" adver-
tising code of ethics along with
program for consumer educa-
ton.
In the report. the officials
questioned the effectiveness of
licensing and bonding controls
on a number of points. The
study also noted the expense of
administering these regulations.
The conclusion reached by the
officials was that other moves
are needed to deal with the
problem effectively.
In carrying out the study.
the report said, while "the
home improvement problem
was our primary concern, we
felt that remedies for this
problem should embrace, to tire
extent possible, the entire spec
trum of businesses in which
unethical practices could result
in abuses to the public.
Broader study has been in
fuenced by one frequently
overlooked fact: The District
would gain nothing by merely
crooks from one hlISi.