Evening star., 1945-11-14

self to read the Constitution Of the
United States he would find amend
ment No. 1, which is the first
amendment In the Bill of Rights,
guarantees freedom of religion,
speech and the press, also the right
of assembly, and the right to 'peti-
ton the Government for a redress
Of grievances.
He asked: Dare he deny that
he has sent impressive and mis-
leading charts to each member of /
Congress shortly before considera-
ton of OPA legislation?"
Some of the statements filed with
the committee by II Senators and
approximately 90 House members.
vigorously protested the OPA price
policy, declaring it would destroy the
normal relationships between manu-
facturers and dealers.
Dealers Views Aired.
Other members merely relayed tol
the committee statements they have
received from dealers back home.
These bitterly opposed the OPA price
absorption policy.
A review Of the voluminous file
of statements disclosed no lawmaker
fatty defended OPA's position.
The committee will hear autol
dealers tomorrow in rebuttal testi-
mony to the argument presented
yesterday by OPA. The dealers al
ready have told the committee that
OPA's plans to cut their prewar dis
count margins would force many of
them out of business.
Bowles Rejects Argument.
Mr.. Bowles fatty rejected this
argument yesterday in contending
the dealers had organized "the great
est single pressure group operating
since OPA was established"
Mr. Bowles said in statement
to the committee that even with
cost absorption, dealers stand "tol
have their best profit year in 1946."
The purpose of cost absorption is
to hold retail prices for new cars
at or near 1912 levels. These are
about Is per cent higher than pre-
war prices.
Issue Is Explained.
Here's what the argument boils
down to:
Before the war, manufacturers
gave dealers an average gross dis
count of "a per cent on the retail |
list price of new cars.
Mr.. Bowles argues that used car
allowances in those days were high
in order to attract customers. He
says that when trade-in losses are
considered, dealers actual margins
were lis per cent, not "a.
He says further that dealers are
not faced now with trade-in losses
because of the great demand for
new cars.
4 or Per Cent Reduction.
The next step in Mr.. Bowles' ar
gument is that OPA does not plan
to trim dealers initial "a per cent |
discount by more than 4 or per
cent.
This means, he adds, that the in
itial margin will not be cut to less
than 10 per cent. He contends that
with trade-in losses pretty well elm
mated, dealers will have 10 per cent |
profit margin on each car, rather
than Ills per cent.
Assuming the price of an auto to
be $1,000, Mr.. Bowles says dealers
would make not less than $190 in
stead of about Sis as before the |
war.
He says also that for the next cou-
pie of years dealers may sell SO per
cent more cars than they did in the
immediate prewar years.
That's the basis for Mr.. Bowles'
contention that despite cost absorp-
ton, dealers will be better off than
they were before.
The dealers don't agree at all.
They say that their average nett
profit during 1939-41-after over
head and. other operating cost de-
Tductions-Was only lot per cent.
Dealers Predict Bankruptcy.
They say this margin was so slim
that any reduction of their initial "a
per cent discount would push them
into bankruptcy.
Mr.. Bowles told the committee
OPA expected to announce the new
ceilings tomorrow, the day dealers
are scheduled to present additional
cost information to the committee.
Other OPA officials said later Mr..
Bowles had agreed to hold up an
|nouncement until he had examined
this information. |
Col. Gibner Decorated |