Evening star., 1949-06-12
fuckers $4,000, 900 Vision of Dream Car
Turned Into Nightmare by Grand Jury Probe

which appeared in January. is46,
issue of a National magazine.
The article described Mr.. Tucker
as an internationally known auto
motive engineer and predicted the
unique features Of the new car
would make all others obsolete.
The article brought thousands Of
inquiries from all over the country.
Some time later. when q COM
pany actually was formed. Mr.
Tucker listed Mr.. Pearson as q
founder and gave him $4,000
shares Of class B stock and a job
as press agent. at SIS 900 a year.
Told Of Dodge Plant.
But. before there was any stock
or any company. Mr.. Tucker was
told by Karatz about the posi-
bility Of getting the 5000. 900 900
Government-owned Dodge plant.
This huge factory on Chicago's s
Southwest Side. which had pro-
duced wartime plane engines. was
being offered for civilian use by
the War Assets Administration.
In 1916 Mr.. Tucker acquired a
tentative lease on the Dodge plant
from the WAA under a plan
calling for him to pay $1,000, 900
in installments during the year.
Mr.. Tucker made the first in
stallment-$25 ,000-by check July
3, l946. from the Ypsilanti Ma
chine g. Tool Co.
On August /, l946, he sent the
second installment, a check for
s150.000. The check would have
bounced II 1t had been deposited.
Mr.. Tucker had only $4,000 in the
bank.
Oscar H. Beasley, a WAA Of
ficial, left the WAA and went on
Mr.. fuckers payroll at $4,000 a
year, according to Senator Fergu-
son, Republican. Of Michigan. who
also found that three other WAA
men took Tucker jobs at sl0, 900 to
$4,000 a year.
Date Twice Extended.
In further negotiations with the
WAA. he was told he need not put
up any cash Immediately, but had
only to show $4,000, 900 to his
credit on a given date in 1947 to
get a 10-year lease. This date
twice was extended so Mr.. Tucker
could arrange his finances.
Mr.. Tucker even got back the
original $4,000 he had paid.
Then, Wilson Wyatt, National
housing chief. ordered the WAA
to turn down Mr.. Tucker and lease
the Dodge plant to Lustron, Inc.
Mr.. Tucker fought the order and
Mr.. Wyatt resigned. for other
stated reasons than this.
In January, 1947, MIR. Wyatt's
rescinded the order and
Mr.. Tucker had undiSputed con-
troll Of the Dodge plant,
Meanwhile Mr.. Tucker was hav-
ing difficulties in raising money.
He granted franchises to deal
ers on the promise Of repaying
part of the money in the future.
He collected $372. 900 that way.
SEC Warned Tucker.
Thomas B. Hart, regional ad-
ministrator of the Securities g.
Exchange Commission. warned
Mr.. Tucker he thus was selling
securities without authority.
Mr.. Tucker protested he did
not know be was violating the law,
but SEC men learned his attorneys
had advised him that such a pro-
cedure required securities regis
tration.
Mr.. Tucker had to turn back
the money to the dealers, but
created q new device Of selling
them franchises. This netted him
$1,000, 900 in cash and notes, but
1t still wasn't enough.
So Mr.. Tucker went to Floyd d.
Cert. the La Sale Street broker
to whom Abe Karatz had intro
duced him.
Cert agreed to attempt sale of
100000 shares of class A COM
mon stock at S. q share for O gross
of $4,000, 900. Commissions to
Mr.. Cert were to be $2,500, 900.
The proposed stock deal meant
another inning with the SEC. Mr..
Tucker was accused Of making
material omissions and misstate-
ments' In his prospectus.
Mr.. Tucker admitted the SECS