Evening star., 1948-11-16
Auto Salesman
Testifies on Tips
From Buyers
Agency Owners Son
Refuses to Reply to
Income Tax Query


George E. Adlung, 80, son Of
the owner Of the New York Ave-
nue. Motors Co., Hudson dealers,
today admitted he had taken
tips for the sale of new cars to
customers and on advice of con-
sui refused to tell congressional
committee how he had reported
such funds for income tax pur-
poses.
The development came after the
Questionable Trade Practices Sub
committee of the House Public
Works Committee had taken testi-
mony from four Hudson buyers that
they had paid tips to Mr.. Adlung. a
salesman for the firm.
The story today was similar to
that developed yesterday as the
subcommittee, headed by Repre-
sentative Macy Of New York, dug
into charges that car buyers here
had been gouged to the tune Of
$4,4000O0 in the last seven months.
1t was a series of accounts of bonuses
or tips paid for the privilege Of buy
ing a new car and of resales Of
traded-in cars at high profits.
Has Stopped Practice.
Committee investigators claimed
in a preliminary report that write
ups on actual purchase price for
new cars. including unwanted ac-
cessories and undertaking. of trade
ins. were responsible for the goug-
ing Of buyers.
Called back to the stand after
customers had told of having to
make bonus payments in buying
cars from the Hudson dealers at
COG New York avenue NV, the
younger Mr. Adlung, who lives at
1920 Minnesota avenue Sc, said
he did not know how many tips he
had taken or what they totaled. He
estimated it was less than 30, but
said it would be "only a guess" as
to whether it was less than 20.
He said his father, William E. Ad-
lung of College Heights, Md, owner
Of the company, had known nothing
about the tips until the committee
Investigation started, and emphat-
lcally assured the House group he
had stopped the practice when the
Investigation started. Asked If his
was a temporary or permanent poll
ICY" he said quickly: Permanent"
AS soon as John T. M. Reddan,
subcommittee counsel, asked the
younger Mr.. Adlung how he reported
the tips for income tax, Charles e.
Ford, Washington attorney, quickly
arose and started to interrupt. He
was stopped bs Chairman Macy,
who protested that yesterday he had
had to request the attorney not to
look over the shoulder of q witness
he was not representing, but added
that II Mr.. Adlu1g wanted counsel,
he could have 1t.
Refuses to Answer Question.
After consultation the witness
then told the subcommittee ION
advice of counsel I refuse to answer
any suestions as to income tax"
Asked why. he said 1t was because
the subcommittee was holding an
insuiry into questionable trade prac-
tices.
Mr.. Reddan sharply told him that
reason was not valid and asked him
if it was because such testimony
might tend to incrininate himself.
The witness then asked for
another consultation with his at
torney and finally said he was re-
fusing on the additional ground"
that he might tend to incriminate
himself.
Chairman Macy and Mr.. Reddan
told him the last reason was the
only valid one and that subcommit-
tee itself would determine what
questions were within its jurisdic-
ton.
Answering other questions, the
witness said that only he had re-
ceived any benefit from the bonuses,
that neither the company nor any
other of its employees had received
anything from his tips.
Called Prevalent Practice"
He said his tip taking was started
only this year and that he did SO
because it seemed to be the "preva-
lent practice" among car salesmen,
but said he could not name off
hand" the other statesmen.
-Four witnesses who told Of paying
bonuses to Mr.. Adlung were Joshua
Mitchell, colored, World War II vet
eran, of 600 @ street NV: Myer A.
Raskin, grocer, 700 L street Sc;
Albert Brodsky, druggist, Eleventh
and N streets NV. who was a para
trooper in the war, and Arthur J.