Evening star., 1946-04-27
Grand Jury 70 Receive
Auto Black Market
Charges Next Week

United States Attorney Edward
M. Curran said today he would bring
Office of Price Administration re-
ports on price violations by five firms
and IA individuals dealing in used
cars before the grand jury the
middle of next week.
Mr.. Curran and ]. Grahame Walk
er, washington attorney for OPA
who is preparing the reports, both
said most of the cases involved used
car sales to veterans. Mr.. Walker
described grand jury consideration
of the cases as only the beginning"
of a campaign against the wide
spread" black market in used cars
here. He asserted each of them is
involved in from three to nine il
legal transactions.
Veterans Are Victims.
In nearly every alleged violation
the victim was veteran, he said.
Violations range, he explained,
from selling used cars at above
ceiling prices to falsifying OPA
statements, demanding trade-ins of
cars as condition necessary to a
sale, failure to post ceiling prices
and file OPA certificates of transfer
and requiring long-term financing
when the buyer wished to pay cash.
"Hard-hitting, aggressive action is
all that will stop these sub-rosa
deals" he said.
No Charges Made Yet.
Mr.. Curran said yesterday he eX-
poets to present facts to the grand
jury as result of an investigation
just completed. No official charges,
however, have yet been placed
against any of the dealers.
Mr.. Curran said the penalty is a
fine ranging from $100 to $500. He
said the final reports in the five
cases would be submitted to him
Monday.
Mr.. Walker said he could not
reveal the particulars of any of the
cases IN advance of presentation
to the grand jury, even without
names, but gave the following hypo-
thetical case of how a returning
veteran is mulcted in a used car
deal.
A returning veteran with savings
and mustering-ou pay in his pocket
tlnds he needs car badly to start
his civilian occupation. So, he goes
to used-car dealer.
Repairs Cost Heavily.
The dealer quotes him a high
price. Sometimes the dealer claims
the price is the result of repair work
which he has haa to have done to
the car. He is allowed to charge
an extra 25 per cent over ceiling
price for repairs provided he guar
antees the car will remain in good
operating order for at least 80 days
and that he will pay so per cent
of repairs which become necessary
in that time. But the dealer shades
this bit and adds on an extra
10 to Is per cent for repairs
more if he feels he can get away
with it.
Again, the dealer may try to take
the veteran into his confidence and
be frank about the overcharge. III
this case, he may demand payment
on the following lines:
He asks the veteran for currency.
making sure there is no witness to
the exchange of money.
Asks Usurious Interest.
Or he insists the purchaser
finance the car. over a long period,
accepts $500 cash deposit but gives
the veteran receipt for only SIPS
and then charges him high rate
OF interest for financing the deal.
Or he accepts a check for the
ceiling price and then has the vet
eran cash a check for the above
ceiling difference with soma other
person.
After the money has changed
hands, the dealer will either fall
Sify his OPA certificate of transfer,
listing ceiling price where he ac-
tually collected much higher sum,
or simply fail to file a certificate
at ali.