Evening star., 1942-01-09
Henderson Reassures
Owners Of Cars j. ).
Has No Seizure Plan
Government to Aid
Dealers Injured by .
Freezing, Rotioning

FreezIn9, kotionln9
Price Administrator Leon Hen
derson today assured the country
the Government has no intention
now "or In the foreseeable future"
of Communicating private auto
mobiles. He further indicated the
Government plans to extend finan-
cial aid to the Nations 1900 car
dealers to enable them 70 use their
establishments as storage ware
houses for cars rationed under the
pending program.
Testifying on rationing before the
Senate Small Business Committee
meeting. in open session to con-
slider the fate OF the automobile
dealers. Mr.. Henderson expressed
doubt that the automobile ration
ing program would be put in e1ect
by January Is. the date Tentatively
set for its Inauguration.
To Announce Terms Soon.
He said, however. .~that the Gov
ernment might be in position before
that time to announce terms under
which cars may be handled by deal
ers. These, he added. will include
such provisions as what the Gov
ernment will do for dealers in con-
nection with stocks on hand"
Mr.. Henderson said that before
the rationing program is completed
the Government must determine
who will be eligible to buy cars and
what their demands may be. He
said an eligibility list similar to
the re-rationing lists is being
drawn up.
After a representative Of the
automobile dealers had expressed
concern over losses incurred by the
freezing OF car stocks on floors, Mr.
Henderson assured the hearing that
the dealers would get fair COM
pensation" for losses or delays re-
sulting from the Government order
No Advance Notice Given.
Earlier. Senator Taft. Republican
of Ohio had asked L. Glare Cargile
president Of the National Automo-
bile Dealers Association whether the
dealers had any advance notice" OF
the Governments freezing order
which became effective January l.
I'VE had no advance notice Mr.
Cargile replied. In fact. one ol
the Government agencies indicated
to me the day before that such al
order would not be issued"
Mr.. Cargile said he could MOI
identify the agency and added M
was mot quite sure which agency
issued the freezing order.
Mr.. Henderson testified that
principal reason that no advance
notice OF the order had been giver
was that when there is a scarce
commodity to be rationed and ad.
vance notice is given you naturally
have a run on this commodity ane
defeat your own purpose.
Explains Statement.
In a statement issued by his ONCE
Mr.. Henderson explained that fear
of Communicating undoubtedl!
arose from his own answers to Ques
tions at a press conference Jan
uary 2. At that time he said com
Wandering of automobiles was "on'
Of the gloomy possibilities" that
prolonged war might bring about.
Mr.. Henderson said today tn
Government presently is well sup
piled with automobiles and addet
there was no occasion for citizen
to offer their cars for public use
He added:
/ Il did not indicate that any such
action. las Communicating VA
likely or necessary now or in The
/ foreseeable future. Indeed. at one
point in the conference. according
to the stenographic transcript, il
was stated: I think it is bad enough
! to have to freeze things without
having to 60 out and commander
them
Reports have reached my ONCE
| that in some areas citizens are
| Offering to turn over their cars fol-
Government use. These offers art
commendable and patriotic. How.
ever. the Government presently i.
we'll supplied with automobiles. anc
while grateful for the spirit shown
1 must advise citizens to retain theil
cars for their own USE
/ Murray Paints Dark Picture.
Chairman Murray Of the Small
Business Committee declared In al
interview before the hearing tina
the order freezing sales of new car
would put thousands of salesmer
mechanics and others out Of work
force the closing of many retail
agencies and make the automobil
business "one of the serious eco
nomic casualties of the war
simultaneously. Mr.. Cargile as
serted that unless the Government
took prompt steps the A ZOO dealer
Of America and their half-milliol
/ -.nployes are faced with immediat
disaster" He suggested sewers
notifications of the freezing ordel
including permission for dealers t
make delivery on bona fide order
dated before January /. continue
use of dealer facilities in handlin
Government automotive purchase
and lifting of restrictions on tn
sale of sports convertibles and othe