Evening star., 1939-03-19

vCAASAC AlOIl 1lIIIlS VI lIlQltlUuhlS
who specialize in the ref1nancing
Of motor vehicles. Upon being
interrogated as to whether the motor
vehicle is clear. he says he owes the
Smith Automobile Finance Co. $500;
SO the firm that is doing the re-
financing issued two checks, both
payable to Mr.. Brown, one for $500
and one for $50. The f1rst-named
check carries the full Endorsement,
namely, PAY only to the Smith
Automobile Finance Co.," and Mr..
Brown signs same and 1t is forward
ed to the automobile finance COM
pany by the refinancing firm. The
automobile finance company marks
the lien appearing on the certificate
Of title Satisfied"
The reflnancing organization takes
a deed Of trust or q conditional
sales contract and Immediately
records 1t in the Office Of the
recorder Of deeds. Thirty days
later Mr.. Browns financial situa-
ton is worse than ever, so he goes
to his friend, Mr. Dodd, and wants
to sell him the motor vehicle in
question.
Mr.. Dodd asks If the motor vehicle
Is free Of all liens; Mr.. Brown says
1t is and in substantiation produces
his certificate of title with the lien
marked Satisfied" Mr.. Dodd pur-
chases the motor vehicle for cash,
applies for and secures a certificate
OF title, on which appears under the
word "lien," none.
Shortly thereafter the refinancing
organization, being unable to locata
Mr.. Brown, checks in the Office of
the Department of Vehicles and
Traffic and finds that the motor We
hicle in question is now owned by
Mr.. Dodd. They Immediately locate
the motor vehicle, take it into their
possession and notify the Police De-
partment that in the event that they
receive complaint that the motor
vehicle in question has been stolen TO
state that the motor vehicle has not
been stolen, but Is in the hands of its
lawful owner.
Mr.. Dodd then notifies the Police
Department that his automobile has
been stolen, and they give him the
information mentioned above He
Immediately communicates with the
refinancing firm; they tell him the
facts. An investigation by him at
the recorder of deeds Office proves
the same is true. Mr.. Dodd wants
to know how he can get the automo-
bile returned to him. and the re-
financing firm tell him by assum-
ing the obligations of Mr.. Brown,
the payment of the necessary cost in
connection with the repossession,
plus the refinancing fees. When
Mr.. Dodd protests that he bought
the motor vehicle under the impress
sion that 1t was free from all liens,
the refinancing organization tells
him that his recourse in this con-
nection is against Mr.. Brown.
A situation similar to the above
occurs ALMOST daily and would be
prevented by the enactment of the
legislation now pending before Con-
gress.
In other words. at the present time
the certificate Of title on motor We
hicles issued by the District of Co.
lumbia is nothing more than a guar
antee that the automobile described
therein has not been stolen. While
the lien is mentioned on the certifi-
cate. it distinctly states that as the
department is not an Office of rec
ord. the lien is not guaranteed
B yhaving all liens on AUTOMOBILES
recorded in the Traffic Bureau. with
the requirement that the title to the
car must be presented and the lien
recorded thereon, it would be i'm
possible for the purchasers of motor
vehicles to be trapped and vast
losses to the purchasers of motor
vehicles would be prevented.
George E. Keneipp. manager o1
the local Keystone, states as follows
The Keystone Automobile Club
of Washington, composed of several
thousands of motor vehicle owners
in the District of Columbia. through
its Advisory Board has given this
legislation its unanimous indorse-
ment. We believe it is eminently
necessary and desirable If the Dis
trict Government is to provide ade-
quate protection particularly to the
purchasers of used automobiles.
At present the certificate OF title
on motor vehicles issued by the
District of Columbia is nothing
more than a guarantee that the