Arizona republican., 1921-10-09
AUTO DEALERS
 DECLARE ORDER CRAVE MENACE
All Time Sales Must Be Discontinued If Order Enforced; Will Wreck States Auto Business.

Great concern has been manifest ed among the dealers and others connected with the marketing of automobiles in Arizona over the re- cent order issued by the corporation commission to compel insurance companies to eliminate the confisca- ton clause in their policies. That this fear is well grounded cannot be denied by anyone familiar to any extent with the modern methods of selling automobiles, and the execu- ton of this order will be without doubt death blow to the retail sales of automobiles in this state, according to the opinion of every dealer in the city.
 The clause in insurance policies which is placed under the ban by the commission specifically protects the vendor of a car against loss in case the car is used for bootlegging and is confiscated. This clause, the deal CTS point out, must be in every policy which accompanies a contract han dled by any security company, and fnasmuch as this will mean the re- fusal to handle automobile paper on the part of these companies it will work an untold hardship on every dealer in the business.
 According to all information on the subject, the order was issued by the commission for the purpose of pre- venting bootleggers obtaining; auto mobiles for the transportation of liquor. That this order will not have that effect except to very small ex- tent, Is the contention of the auto mobile men, who state that only very small percentage of cars used in bootlegging operations are pur- chased from them on tine- They of course state that no car is sold by them with the knowledge that it will be used in violation of any law, and they further point out the fact that if liquor is found in any car pur- chased from them, with a balance ow- ing them, that the car can be con- fiscated, regardless of the fact that the purchaser may not be boot legger. This fact places a great re- sponsibility upon the automobile dealer, the majority of whose sales naturally on the time-payment plan.
 At meeting held last Monday evening, the Phoenix Automotive Dealers association went on record Wlln a prOteSl dSaiIlSl tlle OIQeI, diiu this protest was filed with the com mission last Wednesday by Cal Messner, president of the association. The order takes effect October 15, and is retroactive, affecting insur- ance written since January 1 of this year. Unless the order is rescinded or reconsidered by the commission 1t will be necessary for the associa- ton to appeal and take the case into the courts. A very determined fight Is to be made according to the asso- citations and confidence is expressed by every member of the association and all others connected with the automobile industry that the order will not stand before court of law.
 It was pointed out yesterday by ont automobile merchant that the aSSo- citation was a unit in its support o all suppression measures directed a liquor violation. But the injustice which this order will inflict, prac tically stopping the retail sales O automobiles would more than offse the little good that will be accom- plished through the enforcement O the order.
 There is not a dealer in the state according to the association, wht can carry his own paper. To trans act business this paper must abso Iutely handled by a security com pany, and no security company vii accept paper that is not protecte against every risk. It will therefor be apparent to every motor car own CT and every business man that with out the security companies to handl time payment contracts for them, tn dealers must forego practically thei entire sales volume.
 It is to be hoped that this orde will be reconsidered. by the corpora tion commission and that measure can be taken which will curb the boo logger without running the automo mobile industry. That this can | done is the opinion of the automo bile mems association. Unless thi is done. it is certain that the publi will see that justice is done the auto , mobile industry, winch has enoug handicaps and burdens throw around it already without addin any additional ones. All who hay gone into the subject seem to fei that with the city police departmen the sheriffs office and the feder; forces in the field it should be poss ble to curb bootlegging without re sort to such drastic measures as ths taken by the state corporation con mission.