Evening star., 1948-11-16

But it doesn't represent any
$780," said Mr.. Redden.
II didn't always get $780," re-
piled Mr.. Manuel.
$500 Bonuses Reported.
Yesterdays full day hearing
brought four witnesses to the stand
to tell of having to give $500 bonuses
to get new cars they bought from
the Kearney firm A large number
testified they traded in old cars
for low values, which later were
resold at high profits.
Still unanswered was where did
the allegedly big bonus payments
taken on used cars 60.
One of the Kearney company
partners, Robert Harry Kearney, jr.,
fatty denied he had asked or re-
ceived any bonus payments in SELL
ing new cars.
Talk Of q possible solution to the
alleged overcharges Of buyers start
ed at the close Of yesterdays six
hour session. Representative Macy
told reporters he had hoped the
automobile industry would be able
Ito clean up its own house"
Industry Cleanup Urged.
"They might do it like the steel
industry cleaned up the gray mar
ket," he said. with a background
Of committee investigation of gray"
steel.
One means to this end, Mr.. Macy
said, might be for auto manufac-
turers to cancel or refuse to renew
franchises of dealers failing to live
up to proper ethical standards.
Mr.. Macy already had warned that
unless the industry was impressed
with the necessity Of house cleaning
it might be confronted with drastic
and arbitrary control legislation"
Yesterdays testimony also brought
a denunciation of unfair practices
from Harry F. Banks, assistant gen.
eral sales manager Of the Oidsmo-
bile divisions OF General Motors
Corp.
Mr.. Banks, who had heard the
whole days story, was pressed by
Chairman Macy for his reaction tc
the hearings. He said General Mo-
tors was "very much interested" and
would evaluate all of the testimony
The final decision would be made
by executives Of the home ONCE
he said.
Many Complaints Received.
Mr.. Banks said his home Office
had received numerous complaints
that every one was answered, and
that he was convinced the practices
described in the hearing here we're
very much in the minority"
There were clear indications also
that the District government is
closely following the developments,
as to possible by-passing Of District
title regulations. Milton D. Kor-
man, assistant corporation counsel,
attended the sessions at the invita-
tion of the Macy subcommittee
counsel. He took extensive notes.
In connection with the alleged
transactions in car resales, Mrs. Lea
Litchtenberg, bookkeeper and notary
for the Kearney company, told the
investigating group she handled
titles for the company, but at the
end Of the day. testified that for
many years she had not made week.
ly reports of title transfers to the
District Director Of Vehicles and
Traffic.
Mr.. Reddan read from the regu-
lations that all title transfers, and
numerous pertinent details must be
reported weekly to the traffic di-
rector. Numerous witnesses testi-
ned that traded-in cars were sold
by the Kearney company to other
dealers, including the Cherner Mo-
tor Co., and -Keefe Motors,
Inc, after customers had signed
blank title sheets.
In these cases the customers said
they had had no dealing with the
Cherner or Lish- -Keefe Arms. Some
said they had never heard Of them
Testimony that the Internal Rev.
enue Bureau has been investigating
returns Of the Kearney company
was placed in the record, as Mr.
Reddan. prodded company ofi1cials
to explain why their records showed
nothing of the alleged bonus pay
ments for new cars or the profits
made on resale Of undervalued
trade-ins.
While Raymond J.. Kearney, one
of the firms partners, was being
questioned late yesterday, Mr.. Red
dan charged that the company had
submitted false records. This Mr.
Kearney sharply denied, although
he agreed they were incomplete
He said they would be correct when
the reports were completed by the
end Of the year.
=. r. Ferguson, jr., assistant coun-
sci to the subcommittee pressed the
witness to say why he had SUBJ
mitted records that were incomplete
When there was reference to IAN.
other investigation" identified as ar
Internal Revenue inquiry, Charles
e. Ford, Washington attorney fol
the Kearneys, interrupted question.
ing.
Refuses to Answer Questions.
On his advice Raymond Kearney
then refused to answer the ques.
ton saying: II refuse to answe,
anything concerning income taxes
because 1t might incriminate me-"
Dropping this subject the in.
vestigators resumed prodding as Il
what became. Of money .reportedly
paid as bonuses for new cars, and o,
profits from sale of lowe-valuet
trade-inS.
Raymond Kearney searched pho.