Evening star., 1948-12-16
Auto Probers
SeekData on
Cherner Deals
Ford Representative
Sees Operations as
Sound, Equitable
By Don S. Worren

L
Practices Subcommittee toda,
was reviewing a number O
loose ends that were danglin,
at the conclusion of yesterday
full-day airing of new and uset
car dealings in this area.
Still left for solution or deter
mination were:
l. What became of "a used cars
repeatedly sold by the Cherner Mo.
tor Co., Ford dealers, to the Glassel
used-car operators, but still mys
teriously missing" from account
displayed so far.
2. What action-if any-the Fore
Motor Co. may take as to disclosure.
Of the sales practices of the two
Cherner sales companies.
On this point, a spokesman fol
the manufacturers said he was baf
fled as to how to evaluate the varied
stories, but added that, aside from
the complaints, the testimony indi.
Gates the Cherner company's opera
tions had been sound and equit.
able"
Subcommittee Challenged.
3. A challenge by two Chicago
steel companies, through ATTORNEY
Hugh Fulton, against subcommitte,
subpoenas for their records. Repre-
sentative Macy, Republican, OF
New York, subcommittee chairman
threatened to recommend a House
contempt citation for the Chicago
companies.
In addition, spokesmen for botl
the subcommittee and the Cherne,
companies, discussed the desira bility
of finding exactly how much al
auto distributor has spent on re-
conditioning traded-in cars for re-
sale-as means of getting real,
net figures on costs and profits.
Both Chairman Macy and JOSEPH
Cherner, head of two. auto com
panies, an Arlington trust compan,
and operator of an automobile in
surarce agency, spoke of assembling
the repair cost data, but no fina
commitments were made.
Trace missing" Cars.
AS an aftermath of yesterday
session, officials of Glasser's Use,
Car Co., 155 Florida avenue NE
and Giasser's Used Cars, Inc, of
Florida avenue NE, were assignee
along with a subcommittee in
vestigator, to pore over compan,
books in a continued attempt t.
trace the missing" used cars.
There was suggestion from sub
committee counsel that the Interna
Revenue Bureau might be interested
In the final findings. Spokesmen fol
the Glasser companies hotly charged
that subcommittee attorneys were
playing with words" and "askine
foolish questions.
The issues over the Chicago steeI
companies, resulting from subpoenas
for yesterdays hearing, was related
to the airing of auto sales practices
here only indirectly" Chairman
Macy said. The subcommittee, he
explained. has been seeking for
months to examine the books of the
Sun Steel Co. and the M. S. Kaplan
Co. both of Chicago. Three officers
Subpoenaed were said to be Stanley
Burt and Harvey Kaplan.
Mr.. Macy, who voiced no charges
against the Chicago companies, saio
the question of steel is pertinent te
the automobile phase of the sub.
committee work, only in that tht
supply of steel has an effect on the
amount of new cars produced.
Information from the Kaplan:
first was sought, he recalled, while
the subcommittee was studying
questions as to the gray steel sit.
uation.
MIR. Fulton, who was counsel tC
the old Truman War Investigating
Subcommittee of the Senate, saio
he had advised the Chicago com
panies not to respond to the sub.
poenas on the ground that the
Macy subcommittee has no juriS-
diction.
He took the position that con-
gresSional committees have no pow
ers of investigation, except those
related to legislative responsibilities
He advanced the argument that the
Eightieth Congress, which will ole
on December 81, or at least when
the new Congress meets January
3, has no time or intention to legis-
late on the subcommittee questions
before it expires.
The Eightieth Congress, he added
was "repudiated" by the people al
the polls last November 2.
Macy to See Martin.
Chairman Macy said Mr.. Fulton's
argument called into question "the
whole subpoena power of the
House" He added that he saw nj
alternative but to ask for con.
tempt citation. He said he woulc
talk it over with Speaker Martin
before the year-end meeting o1
the old Congress.
AS to the problems of auto prac-
tices in this area, Mr.. Macy sale
there might be one more hearing
before the end of the year. There
were indications this might deaI
with possible corrective" moves
rather than with another investiga-
ton of specific dealers.
Yesterdays session was devoted
mostly to a variety of somewhat
complicated deals by and with tht
Cherner Motor Co., 1871 Florida
avenue NV, dealer in Fords, anc
the Shirlington Motor Co., Cherner.
owned, Arlington dealer in Lincolr
and Mercury cars. But in the wind.
up, the hottest arguments came ovel
the practices of the Glasser's used
car companies.
Forty-two Trade-ins Involved.
Subcommittee Counsel John T. M
Reddan put into the record state
ments that, during the past year
the Cherner Motor Co. had sold 4.
traded-in cars to the G1asser's op
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