The people's voice. [volume] (Helena, Mont.) 1939-1969, 1946-09-20

Southwest that cars would be Offered
for sale at auction According to the
OPA, these auctions" were merely g
blind and the deals were consummated
before the automobiles ever went on
the block
Gangsters Move In
There is some evidence in the OPA
Washington offices that the gangsters
who always follow the easy-money
rackets have moved into the car black
market One man picked up by the
agents had a record of forty-one pre-
vious arrests. Robert Ehrlich, in
charge of the OPA special agents, pre-
fers to call many of the men linked up
with the organized gangs "shadowy
characters"
The strategy of the OPA is twofold.
The most publicized campaign is
against the organized black-market
gangs, with a quick follow-up on the
dealers who have been spotted at the
sales But hard day-in-and-day-out
job is being done by agents in every
part of the country, picking up dealers
who are cashing in on the easy money
of the black market. These agents
have been averaging arrests or suits
against three violators every month.
The practice of selling over ceilings is
so widespread that the OPA doesn't
have a chance to pick up all the
violators. The technique is to spot the
enforcement activities regularly over
wide area and hope that the public
ity will scare other dealers into being
good boys
No dealer can be sure when he Of
fers "a car at an over-ceiling price
that he is not talking to an OPA agent
or citizen who is cooperating in the
campaign. The OPA has a fund to
make buys. 1t is also enlisting the
help of enraged consumers.
The rackets are many and ingenious.
One is the trade-in deal. The prospec-
tive buyer with car to trade in will
be offered 5000 less than it is worth.
If he objects, he doesn't get the new
car.
There is the overhaul racket. The
consumer buys a used car at the cell
ing price and then is charged $3.50 for
an overhaul job he does not want or
need
There is the finance racket. The car
is sold at the ceiling price, but the
buyer is required to finance it thru
the dealer, who tacks on exorbitant
extra charges. There is the gadget
racket. The consumer is forced, if he
wants car, to pay for trinkets and
extra equipment which he would ordi-
narily never put on the car.
Another racket is for a dealer to
accept gifts" AS mentioned above, |
he OPA discovered dealers taking in
diamond rings and even city lots.
A. complicated procurement system
vas uncovered in an Eastern city. The
'acketeers had stooges put their
James on dealers lists; when the
Itooge got his car, it went to the ring
or a $1,000 bonus Another $500 was
ldded to the cost to the ultimate con-
umer.
Smuggling Pays Big
The most lucrative and most dan
,erous of all the car rackets is to
automobiles across the border
nto Canada or Mexico and into the
Export market, where even more fabul-
JUS prices are offered for American
made automobiles The OPA has the
of other interested federal
gencies in trying to stop this opera
ion.
The enforcement campaign has been
O widespread that little publicity has
een given to it. Nineteen were indie ]
ed by a grand jury in Newark. An {
gent in New York bought used {
tation wagon allegedly at almost ST.
90 over the ceiling A Des Moines {
ealer was accused of gypping twenty
tx customers by low trade-in allow
noes. A springfield, Missouri sales
IAN was charged with asking $4,000
yer the ceiling for new Buick. In ,
Evansville, Indiana, veteran led
gents to dealer who, he claimed, '
ad offered car at above the ceiling.
n Detroit, twenty-five pleaded guilty {