Evening star., 1960-10-12
Some Features
Are Criticized
At Hearing
BY MIRIAM GUTENBERG
Star Stah Writer

Cne DlStrlct Commissioners
opened the public hearings on
stiff new regulations to pro-
tect Washington buyers from
practices in the
sale and financing of cars.
The District Bar Association,
the Better Business Bureau,
Air Force representatives and
the District Department of Lii
censes and Inspection gave un-
qualified Endorsement to the
new regulations.
The Automotive Trade As
sociation, National Capital
Area, reluctantly expressed op-
position to some features of
the big package of regulations.
So did a spokesman for the
surety companies.
Star Series Praised
Principal Assistant Corpora
ton Counsel Milton Korman
began the hearing by reading
examples of the evils of the
used car rackets as cited in
The Stars Buyer Beware"
series.
Mr.. Norman recalled that
after the series appeared last
November, the Commissioners
the Corporation Coun-
sci to take the necessary action
to plug the loopholes which
permitted unscrupulous prac-
tices.
Our investigation. showed"
Mr.. Norman said, that these
abuses did not pervade the en-
tire industry, and it was a
limited number of dealers who
were abusing the public. Be-
cause of this limited number.
it was believed necessary to
seek legislation giving the Com
mlssioners authority to deal
with these problems"
Congress passed the legisla-
ton on April % and the regu-
lations discussed at .todav's
hearing are designed to carry
out the legislation.
Mr.. Norman introduced a
letter from the Better Business
Bureau approving the proposed
new regulations in general and
specifically hailing the sections
regulating the advertising of
cars.
The section indorsed by the
Better Business Bureau was the
particular target of criticism
by Louis H. Mann, general
counsel for the Automotive
Trade Association.
Issue Concerns Ads
The section which drew the
praise and criticism requires
That in any advertisement of
the price or terms of sale of a
car, any qualifications must be
printed in as large type as the
original offer.
Mr.. Mann said that the trade
association would be put at
an unfair disadvantage in COM
petlng with nearby Maryland
and Virginia dealers who did
not have to comply with the
regulations affecting District
dealers.
He said that he favored the
controls on advertising if they
applied to all dealers in the
area. He recalled that he had
that the Commission
erS ask the newspapers and
television stations to agree that
they would require nearby ad-
vertisers to comply with the
regulations affecting District
advertisers. Since this agree
ment has not been accom-
pl1shed, he said, he opposes
the section.
Difficulty Seen
He also opposed the section
forbidding dealers to require a
down payment larger than the
amount advertised. He said
that the dealer had to get the
approval of a finance company
to purchase the conditional
sales contract before he could
sell the car. and if the finance
company said the customers
credit required a larger down
than the one adver-
tised, the dealer was helpless.
Mr.. Mann also objected to
the ban on so-called pickup
notes" The Commissioners had
already been told by Assistant
Corporation Counsel Irving
Bryan that pickup" payments
were a form of abuse. Mr..
Bryan had explained that after
a customer has purchased a
car for ST down the dealer
informs him that he must put
up several hundred dollars
more in order to get the car
financed and the dealer leads
the customer to a small loan
company to borrow the money.
Mr.. Mann declared that ito
the extent that we forbid Dis
trict of Columbia dealers to
take pickup notes while at
the same time their competi-
tors in Virginia and Maryland
can accept them, we are merely
driving the business out of the
District"
Enthusiastic Endorsement of
the regulations came from Mai.
Felix j. zaniewski, staff Judge
advocate. 1100th Air Base Boil
ing Air Force Base. Maj. zan-
iewski specifically praised the
ban on pickup payments"
which described as one of the
abuses by which service men
were victimized.
License Supt. C. T. Nothing
ham brought the Endorsement
of the Department of Licenses
and Inspections.