Evening star., 1934-05-18
CARL FORD BAN
FACES COURT TEST
Sabine, Barred Dealer, Will
Ask Iniunction-Charges
U. S. Money Loss.

Charging that an additional cost of
81 600, 900 will be put on the Govern
ment in the next six weeks by rejec-
ton of bids for Ford products in view
Of decisions rendered yesterday by
Controller General McCarl, r. P. Sa-
bine, president of Northwest Motor
Co., the Ford agency in Bethesda, pre-
pared today to make court test of
the validity Of the executive order on
which McCarl based his action.
Through Attorneys Joseph T. Sher-
Ter and j. Hunter Creach, Sabine
said ne would ask for Q), an injunc-
ton to bar rejection of his bids and
to prevent the award to other bidders.
and Cd court order to instruct plac-
ing OF contracts with the Northwest
for the vehicles in question.
Several Agencies Named.
The actions are to be instituted
against number of Federal agencies.
including the Commerce, Interior,
agriculture, Justice, Labor, Treasury
and War Departments, and the Ten
nessee Valley Association.
IhuS far the executive order which
requires certification of code adher-
ence by bidders for Government busi-
ness, not only for the products they
are Offering. but also for the produc-
ers OF the elements entering into such
prooucts, has kept the Northwest out
OF awards for 1000 vehicles. accord
ing 10 Sabine. In the next six weeks
some 5000 more vehicles are To he
purchased, and the same thing will
happen, he says. It is on this total
Tor which his company is low bidder
SABINE said, that the million-dolIar
excess cost will be imposed on the
Government.
In his decisions yesterday. which
were rendered to Commerce, State and
Labor, McCarl allowed rejection of
Northwest bids solely on the ground
tnat Sabine had qualified his certifi-
cate OF code adherence.
Inere was nothing in the decision
bearing directly on Ford's status
under the N. r. A. The Detroit manu-
tacturer always has contended that
ne Is meeting and even exceeding
code provisions.
doioS Ruling Unfair.
SABINE, in seeking to negotiate the
contract with Commerce, declared it
would be Impractical, unfair and un-
just to require contractor to vouch
1or all persons producing any article
enterlng into his product, and TODAY.
described McCarl as having drawn
upon his imagination" in his interpre-
tation OF the order.
Sabine recently instituted iniunc-
ton proceedings against the War De-
partment because of the rejection of
low bid, but withdrew his action
when the department threw out all
bids.
He said today, though, that he is
going through" with the issue this
time. He said Henry Ford would not
De directly involved, as he is acting
Independently in the bids.
Defends Code Stand.
In the Commerce decision, the one
made public, and which covered only
two small trucks, it was brought out
that the Bethesda dealer had said he
was operating under code, and would
continue to do so, but could make no
representations for the 5000 or more
involved in the out
put of the vehicles. He did, however.
offer an affidavit certifying that to
the best of his knowledge and belief,
all were operating in accordance with
applicable code.
McCarl said this was not enough,
pointing to the section of the order
which specifies that no contractor
may furnish any materials to the
Government that have been produced
in whole or in part by any person
who shall not have certified code
This was interpreted to mean that
the dealer himself must have this
written assurance In hand. Then if
there was any doubt as to code ad-
herence by any party to the contract,
the issues would be one for settle
ment by the N. r. A. itself, rather
than the controller generals office.