Evening star., 1942-02-03
D. {. Auto Rationinq
Is Placed in Hands
OF Leary's Board
Those Who Contracted
For Cars Before Jan. !
Muy Have to Apply

S
Moy Have to Apply
The District Commissioners today
assigned automobile rationing to the
District Rationing Board. headed by
Whitney Leary, which heretofore
has received general regulations
from the Once of Price Administra-
ton but that he has not had time
for q detailed study of them.
However, he said it appeared 1t
would be necessary for either the
buyer or the dealer involved In sale
or automobiles contracted for prior
to January /, to submit an applica-
ton to the District Rationing Board
to permit a check of the contract
date. Such cars may. be released be-
tween February IL and February 26,
II the contracts were signed prior to
the January freezing order.
The District Rationing Board now
consists Of seven members on an
executive board headed by Mr..
Leary, and three subordinate boards
which deal with applications for re-
tioning Of tires and tubes for the
several specialized classes Of ELI
sibles. Mr.. Leary said one or more
boards would be named to deal spe-
cifically with rationing Of auto
mobiles.
Maximum Prices Set.
In the national situation, after
setting maximum wholesale and
retail prices for new passenger cars
to be sold under the rationing pro-
gram, the o. P. A. was reported
about ready to place in effect a
rationing plan for retreaded or re-
capped tires.
Administrator Leon Henderson
announced these automobile price
ceilings yesterday: Wholesale, not
to exceed the highest prices charged
between last October / and IS; re-
tail, to include as markups from
list price the Federal excise tax, the
actual rail freight charge, S per
cent Of the list price plus the trans
portation allowance. or $75, which,
ever is lower, and a ! per cent
storage allowance per month.
Meanwhile, Government spokes-
men said that only delays in de-
Gliding on the final fom Of the
program was holding up the ration
ing of retreads. There we're indi-
cations that the plan would be an
nounced this week. effective next
Monday or the week following.
No camelback, the crude rubber
material used in retreading, will be
allocated for passenger car tires
this month, officials announced yes
terday, because the entire supply
for the period is needed for military
orders and in reconditioning truck
tires deemed necessary to keep in
dustrial and commercial vehicles
rolling
Last month only 300 tons of camel
back were allocated by the Govern
ment for passenger car tire re-
treading-enough to supply only a
small percentage Of the demand
and officials then limited that ra-
tioning seemed the sole answer to
the problem.
In setting the automobile price
ceilings, the o. p. A. made an It..
usual move in permitting Storage,
allowance. This action was taken
in response to pleas by dealers that
losses were being incurred by hold
ing new cars on their f1oorsadwhi3e'
the rationing program was being
drawn up. The allowance would
permit dealers to add each month
to the maximum price l per cent of
the list price, or SIS, whichever was
lower.
Mr.. Henderson said that the price
schedule. effective today. sets maxi
mum prices that give dealers re-
sonable profit and provides for spe-
cial compensation to offset the deal
ers' cost Of storing cars against re-
lease to eligible buyers"
He estimated that there were in
excess of 100000 new cars in deal
ers' and distributors hands, includ-
ing those on hand when sales were
llOGCii Oduudly y dllu CiioSc pIoNutcN
during January before complete con-
version of auto plants to war pro-
duction was started.
OF these, the price administrator
said about ne-fourth were being
"stockpiled" for sale in l943 and
later. An undetermined number will
be released beginning February II
to persons who had purchased them
before January l.
The remainder" Mr.. Henderson
added, will be sold during the cur
rent year to eligible civilian buyers
against certificates issued By local
rationing boards and to categories
of buyers, such as the Army and
Navy, who are not obliged to obtain