Evening star., 1960-10-13
But Mclaughlin
Sees Problems
After Hearing
By MIRIAM GUTENBERG
Star Staff Writer

10 washington ) Cal
ouying public.
He made the comment after
! parade of witnesses at an
all-day hearing yesterday gave
conflicting testimony on pro-
posed strict new regulations to
control the sale and financing
Of cars here.
He said it had been obvious
that complications would arise
in working out effective regu-
lations, but he made it clear
that the Commissioners will
not back down from their goal
Of effective regulations.
Most of the witnesses ap-
proved the proposed regula-
tions in general, but pinpointed
specific sections to oppose.
Many of them predicted that
the regulations will eliminate
the abuses highlighted by The
Star in its Buyer Beware"
series.
The principal opposition cen
tered on credit insurance. The
regulations permit credit life
insurance but exclude credit
health and accident insurance
from charges that can be in
cluded in car sales contracts.
Protection Cited
Witnesses from insurance
and finance companies con-
tended variously that credit
health and accident insurance
was protection for car buyers
who may lose their source of
income, that excluding these
forms of credit insurance is un-
constitutional because it is dis
criminatory and unreasonable,
and that disclosure of the vari-
Gus forms of insurance in the
contract is all the protection
that car buyers need.
These witnesses predicted
that if credit health and acci-
dent insurance were eliminated
by the regulations. it would
mean the end Of this form of
insurance in the District. Most
of these witnesses acknowledged
that there have been abuses in
the field, but they urged regu-
lationS which would make this
insurance possible on an op~
tional basis.
Principal Assistant Corpora
ton Counsel Milton D. Kor-
man. who presided at part of
the afternoon session, pointed
out that "the people we are
trying to protect don't know
the difference between optional
and required insurance.
Army Testimony Recalled
Assistant Corporation Coun-
sci Irving Bryan read the Sen
ate District Committee teSti-
mony of Maj. Harry Ehrlich,
then staff judge advocate at
Boiling Air Force Base, that
servicemen whose income con-
tinues regardless of illness have
been victimized by exorbitant
charges for health and accident
insurance which they don't
need. ,'-
Those who testified in favor
of allowing credit health and
accident insurance included Joe
w. Peel, Health Insurance As
Sociation of America; Carl
Felsenfeld, Universal C. I. T.
Credit Corp: Joseph Norton,
Continental Casualty Co.; Will
liam J. Walsh, Consumer
Credit Insurance Association:
Phillips M. Goodwin, Prudential
Insurance Co. of America; w.
w. Gerhard, General Ac-
ceptance Corp. and William j.
Butzberger, General Motors
Acceptance Corp.
Bernard Margolius, counsel
for the Metropolitan Automo-
bile Dealers Association, sec
onded the statement of Louis
H. Mann, counsel of the Auto
motive Trade Association, Ma
tional Capital Area, in opposing
restrictions on advertising and
pickup payments, through
which car buyers may find
themselves facing additional
lump-sum payments after they
have made their small down
payment.
John T. Bonner, who repre-
sentS a number of dealers that
have come under fire from the
Federal Trade Commission and
the District license Office, also
agreed with Mr.. Mann's re-
marks. ...
Bond PrOvisOs Protested
Mr.. Margolius also objected
to the provision requiring bond
of dealers and finance COM
panies.
Frank A. Gunther, chairman
of the Law and Legislative Com
mittee of the District Bankers
Association, asked the Commits
sioners specifically to exclude
DanKS ana truSC companies from
the licensing and bonding re-
quirements.
Lyon Tyler, counsel for the
Eastern Acceptance Corp. and
the Commerce Investment Co.,
said his companies agree with
the purposes of the regulation
and consider that they come as
close as possible to adjusting the
needs of human welfare to the
needs of doing business in the
market place.
However, he and several other
witnesses objected to the provi-
sion that insurance refunds be
applied to the earliest INSTALL