Evening star., 1948-11-30
Auto Sales
Continued From First Page !,

lower than those indicated in testi-
mony regarding some Washington
dealers.
Chairman Macy assured MIR. Ken
yon the committee was not question:
ing the integrity of his firm but was
merely seeking facts under a man
date Of the House. He turned the
inquiry especially to the demonstra-
tor car plan.
"Obligated" to Old Customers.
Mr.. Kenyon said the plan had
been adopted because the firm felt it
had an obligation to its old custom
ers who had kept the company's
doors open in bad times. 1t was
established in 1910.
The witness said he thought the
company was morally obligated to
take care Of them. Hundreds of per-
sons who came from everywhere"
had gone to the firm to place orders
and get on the waiting list, he said
Many of these, he added, probably
never dealt before with the COM
pany. The demonStrator car plan,
he went on, was conceived as "the
only fair way to meet the situation y
He gave figures different from
those cited by Mr.. Reddan. His
estimate was that about half, in
stead Of 10 per cent, of the COM
pany's cars were designated as dem
onstrators. And he added that for
the last 81 months in the sale Of 918
cars trade-inS were involved in Ala
cases, leaving IS per cent sold where
there was no trade-1n.
Mr.. Kenyon said the policy was
to require 500 deposits or the title
to the trade-in car of persons or
dering new cars. He said there was
now about $4,000 in special bank
accounts maintained for deposits.
He said he drew l per cent interest
on the deposit account and that to
date this amounted to $33.
Sales Manager Testifies.
The Kenyon-Peck phase of the
hearings was concluded with the
testimony of Walter H. Garner, the
companyS sales manager. who ad-
mitted that the demonstrator car
sale plan was wrong" and pros
pective customer Of the company,
Mrs. Sarah Eigen, 413 North Mason
drive, Arlington.
Mr.. Garner testified that when
customers, were sold -demQnstrator
cars they were told the cars had
been used. Records before the sub
committee showed the demonstra-
tors had been sold as new" cars.
me : Garner Explained that .sthe
demonstrators were not required To
have titles under the Virginia law,
so that when one was sold to a
customer the record showed new
car sale. Mr.. Garner, as well as
Mr.. Kenyon, testified that the DEM
onstrator. cars were given the same
guarantee Of 80 days or 1000 miles
on the car, whichever came first.
Mr.. Reddan asked what would
happen if he bought demonstrator
with about 1000 miles on it, under a
new car title sale, and the car should
break down the first day. Mr.. Gar
ner replied that if such a claim was
to General Motors for
service on such a new car guarantee
lit would be doubtful" what General
Motors would do.
High Chevolet officials, he added,
had objected to this type of trans
action.
Tells of Adjusting" Lists.
Under questioning, Mr.. Garner
testified he had adjusted" the Gus
toner lists in the company office,
sometimes moving some persons up
and others down on the list. He said
higher Kenyon-Peck officials prob
ably did not know about it.
Mrs. Eigen testified she had been
dropped from No. Is to No. IS on
the list and that she had written
to Chevrolet officials in Detroit. She
said she was referred to the Balti-
more regional headquarters and
that the Baltimore Office had ad-
vised her 1t had no authority over
local dealers.
She went to the Kenyon-Peck
firm and got her 500 deposit re-
turned, and bought car elsewhere,
she said.
MIR. Garner said the drop from Is
to IS could have been reasonable
error" but he added "she deserved
to be put back" to the higher listing.
Mr.. Reddan said analysis of used