Evening star., 1942-01-15
Nv ]. A. FOX.

Ee0efAl Loans Su&&eSte0.
Mr.. Berger, as well as some wit
nesses who followed him, urged that
the tire business be permitted to re-
main in the hands Of the indepen-
dents, and said there should be fire.
quent inventories to permit dealers
to get rid Of all tire sizes that are
not in demand.
He suggested also long-term, low
cost Federal loans to improve the
financial position Of dealers with
large stocks.
j. L. Girard Of Newark, secretary
Of the New Jersey Tire Dealers As
sociation, said that at the rate his
concern Is selling tires under the
rationing program, their stock will
last 30 years"
In the first eight days of ration
ing, he continued, total sales were
two tires. as compared to q normal
daily average of 100. He said his
company could hardly last more
than two months. and urged q debt
moratorium for dealers.
Thomas Graham of Chicago said
he had sold only one tire in eight
days.
Tire Retreaders Have Trouble.
George Erlinger of New York told
the committee that some large
manufacturers are refusing to sell
camel back. needed for retreading
to independents and turning 1t over
instead to their own branch estab-
lishments.
]. p. Seiberling. president Of the
Seiberling Rubber Co., Akron, sug-
gested that the Government take
over all new tire stocks held by re-
tailers and wholesalers at cost plus
and allowance to compensate for
losses sustained by the curb on sales
This would give the Government
control that would provide for or
derly distribution Of stocks and aid
dealers financially, he pointed out
In . brief temperance before
the committee this morning, L.
Clare Cargile. president Of the Ma
tional Automobile Dealers Associa-
ton. said his group was shocked
beyond measure" at a section Of
the auto rationing order issued by
the Once Of Price Administration
yesterday under which the Govern
ment can commander the tires and
tubes Of the 10000 cars to be held
by them Is stock pile" for the
next year to meet prospective de-
mands.
I'VE can assure you that at NO
time were the dealers told that
they might have to buy those cars
and turn in the tires" he said.
Mr.. Cargile said that stored cars
must be shifted every 30 to 60 days,
to minimize depreciation, and that
this operation would be complicated
If the tires were stripped from the
cars.
At the close Of today's session
the committee recessed subject to
call by the chairman.
Yesterday, Leon Henderson, price
administrator, announced the ten
tative outline Of the car ration
ing program, which Is to be effective
February 2, and at the same time
agreed to some of the proposals ad-
vanced by the dealers to tighten the
impact Of the curb on their opera
tions.
The rationing program will be
modelled after that developed for new
tires, and will be carried out through
the same local boards now set up in
every county Of the country, the o.
P. A. announcement said. The total
number Of vehicles available for ra-
tioning when production stops will
range between 10000 and $50 900
officials are uncertain as to the
hgures-and of these, $50 900 are to
be frozen" for a year. The prospec-
tive supply is based on an estimate
Of 100000 to 100000 which were on
hand January 1. plus the current
production Of 204. 900, about
1000 Of which already have been
turned out.
Would List Eligibles.
The rationing program has three
salient points.
% A list Of eligible buyers will be
established, including (a) physicians.
surgeons, visiting nurses or farm
CD persons engaged
in flre-fighting. crime prevention or
detention, enforcement Of laws re-
lating to the protection Of public
health and safety and the trans
portation Of the mail; (c) persons
who had purchased as Of January
2 new cars then in dealers hands but
had not been able to get delivery
on that date.
ca Such buyers, including Gov
ernment agencies needing cars for
the purposes listed. must obtain Ger
tificates from local rationing boards
permitting them to make purchases.
In this connection, o. p. M. said:
IT'S hoped that Government agen-
cies falling within the eligible
classes will anticipate their new-car
needs for some months hence, thus
tending to move the vehicles out Of
dealers hands quickly. The ra-
tioning boards probably viii be in
structed to give consideration to
future as well Is present needs Of
such governmental agencies in issu-
ing certificates"
Certain Categories Exempt.
60 There will be set up certain
exempt" categories Of purchasers
who will not be required to obtain
certificates in order to buy new
automobiles, but who will be re-
quired to supply information as to
the use Of the vehicle. These will
include automobile dealers buying
new cars for resale, and. these Fed
eral agencies: Reconstruction RI
nance Corp, Army, Navy, Maritime
Commission, Panama Canal, Coast
md oeodedc Survey, Coast Guard.