Evening star., 1948-12-15
Firm 5
Auto Deposits
Put al $4,000
418 Customers Still
Await Cors, Macy
Inquiry Is Told

inquiry is lOid
The Cherner Motor Co., Ford
dealers at 1871 Florida avenue
NV, has a total of $27, 900 in
deposits from customers, 418 of
whom are still awaiting deliv-
cries of new cars, a House Public
Works Subcommittee was told
today by a staff Investigator.
Charles Meany, committee inves-
tigator, read into the record that
the money was on deposit in the
name of the company. The con-
cern maintains a number of bank
accounts which are guaranteed and
on which the company, out not the
deposit payers, earn interest, inves-
tigators said. The interest rate was
not disclosed.
The deposits ranged from $25 to
$3.50 a customer, 1t was stated.
Joseph Cherner Testifies.
The testimony was given as the
Questionable Trade Practices Sub
committee, headed by Representative
Macy. Republican, of New York, re-
sumed hearings on trade practices
by auto dealers in the District area.
The first witness was Joseph
Cherner. head of the Cherner COM
pany and the Shirlington Motor Co.,
Lincoln Mercury dealers in Arling-
ton.
Mr. Cherner, declared that his
firms never have required customer
tips" or ''under-the-counter pre-
miums" in return for car deliveries.
He said also that the gross profit
on resale of trade-ins at both his
concerns was we'll below the 43 per
cent gross profit that the subcom-
mittee has found to prevail in this
area.
He said his business success
rested on his policies of customer
confidence and satisfaction" Pre-
vious hearings have brought state
ments that statesmen of other firms
have accepted tips" as large as $500
for new-car deliveries.
Figures in Trade-in Profits.
In his opening statement, Mr..
Cherner, who said he has sold more
than 10000 new and used cars and
trucks since he began business in
1880. gave 29.6 per cent as the gross
profit on trade-inS at the Ford
agency, 1871 Florida avenue NV.
He gave 26.6 per cent as the gross
profit on the Lincoln Mercury trade
ins at the Shirlington company,
2790 South Arlington Mil drive,
Arlington.
Mr.. Meany gave summary of his
study of the Cherner company busi-
ness.
There was testimony also of high
profits on the resale by the Cher
ner firm of cars traded in on new
car purchases.
One of the witnesses, Clifford
Shirley of Mclean, Va, a mechanic
employed by the Cherner company,
said he received 81 ,359 for trading in
a 1948 Ford which Committee Coun-
sci John T. M. Reddan said was re-
sold for $2,195.
Hearing Room Packed.
When this margin of 1886 was re-
vealed, whistles came from many
persons in the large audience which
packed the hearing room in the
New House Office Building.
Mr.. Meany said his study of the
company books showed Alb ledger
cards for customers who had made
deposits.
While most of these deposits were
made in the last two years, some
of them went back to 1887, Mr..
Meany said. In all, he said, the
records showed 548 deposits with
418 still waiting for car deliveries.
Deposits were taken for Ill Gus
toners this year, Mr.. Meany said
the study showed; 121 last year, IS
In 1916 and 101 at times prior to
1946.
A sample study of the Cherner
company business, for June and
July of this year, Mr.. Meany testi-
fled, showed that of 100 pledge
cards. cars had been sold to 108
customers who had cars to trade in.
Some Got Fast Delivery.
Mr.. Reddan emphasized that in
only one of the 100 sales was there
straight cash ransaction-with-
out trade in.
The testimony of Mr.. Meany also
showed that while many prospective
customers who already had made
deposits were still awaiting de-
liveries, there were "a cars sold last
June and July to customers who got
deliveries the same day their orders
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