Evening star., 1948-08-16
Dealers Names
May BeBared
In Auto Inquiry
Macy Committee
Is Promised Full
AAA Cooperation
By Harold B. Rooers

A House investigating subcom-
mlttee hopes to disclose the names
OF automobile dealers here using
questionable trade practices, it was
learned today.
E. r. Ferguson, jr., assistant
counsel to the Macy Subcommittee
investigating questionable trade
practices, indicated the inquiry is
making rapid progress in gathering
facts from both new and used-car
dealers.
The American Automobile Asso-
citation has promised full co-opera-
ton, Mr.. Ferguson said, and already
has turned over substantial results
of its own investigation into the
situation In this area. More in
formation has been pledged by the
AAA, he said.
Whether open hearings will be
held by the House Public Works
Subcommittee, headed by Repre-
sentative Macy, Republican, Of New
York, will be determined later, Mr..
Ferguson said, as result OF the
material now being gathered.
Aired In Radio Program.
The issue was aired here last
night during a radio program, Dis
trict Roundtable," over Station
WINK.
Spokesman for used car dealers
defended their activities, claiming
a profit of only 10 per cent gross
was realized from sales on used
car lots.
William Griffith, president of the
Washington Used Car Dealers AS
sociation, declared members OF his
unit were operating "a legitimate
business with fair return"
He charged that the new car deal
ers were making big profits on old
cars turned in on new ones because
low prices were allowed on the
turned-in cars. He also blamed new
car dealers for adding more acces-
sories than needed or desired by
customers, thus raising the price.
Agrees With Griffith.
]. H. Satcher, retail car dealer,
agreed with Mr.. Griffith. He said
every day customers offer 1948 model
cars for sale, feeling they must be
compensated for loss in trading IN
their old cars on new ones.
Walter Hubbard, editor Of the
American Motorist, official journal
of the District division of the Amerl-
can Automobile Association, said
that the so-called conditional sales
agreement" between new-car dealers
and customers would help to elimi-
nate the gray market.
This contract, he explained, pro-
vides that the customer desiring to
sell his new car within six months
must offer it to the dealer from
whom he bought it at 80 per cent of
the original price or be liable for
damages up to 10 per cent of the
original price.
An AAA survey has revealed, Mr..
Hubbard said, that many neW-car
dealers here are making too low an
allowance for old cars traded in on
new ones and requiring that no new
cars will be sold without turn-in.
Gadgets Run Up Price.
More gadgetS and accessories are
being placed on new cars than the
customer wants, he said, sometimes
running up the price by $500 to $500.
Reading from figures gathered in
o survey by the AAA, he told the
radio audience that the average
price of 18 leading makes of new
automobiles sold on used-car lots in
is cities was 263 per cent or 1854
per car above the manufacturers
established price. In the District.
such sales on used car lots of IA
leading makes OF cars were found
to be 1876 per cent, or $487 per car
above the established price.
Leonard S. Melrod, of the District
Bar Association. presided as mod
orator. He said new car dealers
had been invited to participate in
the round table program, but had
written him it was against their
nOlicV