Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-03-25
u. 5. Studies
Distant Really
Sales Offers
BY MIRIAM GUTENBERG
Star Staff Writer

DNSAA WAAOCA -4ACC al Gus do TUT
ida, California and the South
west are now under investiga-
ton by the Federal Trade Com
mission and the Post Office
Department.
The ETC said yesterday 1t
Is checking on advertising of
suspiciously fabulous" land Of ;
fers addressed to small investors
in the North. The commits
sion's investigation centers on
determining whether these bar
gain properties are as habitable
as the advertising suggests.
The Postal Inspection Serv-
ice, 1t was learned, is checking
on mail fraud in connection
with similar real estate ven
lures.
Under investigation are such
questions as whether the real
estate promoters have q clear
title to the land, whether sur
vey lines have been drawn SO
that the investor is buying a
specific lot and whether in
Vestors are aware that access
roads may not be available and
costly artesian wells may have
to be sunk to get water.
NJ Warnings Issued
Both ETC and postal of.
ficials emphasized that invest
ors should not buy any lots
sight unseen regardless Of how
low the price offered.
Daniel ]. Murphy, director of
the FIGS Bureau Of Deceptive
Practices, warned that ut is
quite obvious that much of this
advertising contains misrepre-
sensations and some of 1t ap-
pears to exaggerate to the point
of fraud"
Plainly" he added, ut is
directed to prospective buyers
who live far from the property
to be sold and who have little
or no idea Of how the actual
parcels Of land differ from that
described or pictured in the
advertisements.
while it Is quite true that
both desert and swamp have
been reclaimed and made into
vacation paradises when enough
money could be ploughed into
the projects. this is no warrant
to- believe that every other real
estate dream can come true:
More often, the swamp remains
swamp and the desert remains
desert. And the sucker pays
Tor q pipe dream.
mr.. Murphy said the radio
and newspaper advertising is
directed to potential investors
many miles from the site, since
local residents would know that
the property being advertised
Is swamp or desert land.
y Ads Urge Haste
He noted that some. Of the
ads urged customers to "call
tonight" and advised that "only
a few lots are left" This rush
act, he explained, is sometimes
aimed at acquiring a sucker
List" for the promoters.
Some Of the land being ad-
vertised. it was pointed out,
will someday enhance in value
through development. The in
dicated Misrepresentation lies
in the idea that the bargain lots
can be used as a winter haven
of retirement site right now.
The type Of promotion being
investigated, Mr.. Murphy said,
is fairly recent in origin. He
reported that the ETC had re-
ceived several complaints both
in the field and by letters.
He said the ETC was not
issuing a blanket indictment
Of all real estate promotions
in the winter vacation areas.
Inquiries Urged
Some may be all right" he
said, "but others are fraudu-
lent schemes. Before people
invest, they should ask them
selves how this land can be
sold as cheaply as advertised
If it's as good as represented.
They should write to the To-
cal chamber of commerce to
find out exactly what is being
offered"
He cited advertisements car
rying a special land rights"
allowance certificate worth
$780," advertisements an
nouncing that the develop
ment's property and progress
are virtually underwritten by
the United States Govern
ment," advertisements offer
jng several acres of land for
as little as 500 a month, money
back guarantees, promises that
the lots have all city conven-
fences and advertised indorse-
ments of local chambers of
commerce.
Among the more flowery ad-
vertisements for bargain para
discs being investigated are
one aimed at attracting North
erners by promoting ideal
year-round climate" half a
mile OF shoreline on a lake."
mo hurricane in 70 years"
and differences that a home can
be purchased free by selling off
part of the vacation land and
using the profit for a domestic.