Indianapolis Times, Indianapolis, Marion County, 12 August 1948 — Page 1
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Officials
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50th YEAR—NUMBER 132
t 10 Ways
Used to Trick Buyers Of Second-Hand Cars
Most Violations Traced to Failure Of Purchaser to Insist on Seeing Contract
Phote,
Page 3
By RICHARD LEWIS State and county officials today had before them 10 methods by which used car buyers have been victimized by a small group of finance companies and dealers doing busi-
ness here.
These violations and malpractices are documented by more than 200 actual cases now being studied. In all but
a few instances, there is no redress for the. victim under existing. state law. Many reputable dealers and lending agencies have urged drastic action against firms found to he
ty. Most of the violations occured because the purchaser did not insist on his right to read and understand what he was sighing. Bign Blank Contract Here are the gimmicks, now official record in the used car finance investigation: ; ONE— Purchaser is induced by dealer to sign a contract in blank. TWO-—The price of the car goes ‘up from the time the deal is made tb the time the customer receives his payment book from the finance company. ! " THREE—Payments under the contract are higher than the dealer said they would be. FOUR—The dealer, the finance company or both withhold a copy of the contract from the purchaser.
FIVE —The_ dealer advises the P
customer payments can be reduced but does not say how. When the customer receives his payment book, a ‘balloon” payment ranging up to $1000 has been added without his consent. SIX-—Sale price of the automobile is ‘manipulated . to exceed! $2500. This removes the deal from the protection of ‘state law which covers purchases up to $2500. SEVEN -- Finance company charges and interest rates exceed the maximum permitted by law. EIGHT—Finance company refuses tb make the prescribed legal rebate when the customer prepays his note. 5A NINE--Without buyer's consent, the finance comipany charges him for insurance which protects only. the finance company. Uns aware of this “single interest if he wrecks it. : TEN-—If the buyer finds he cannot make the payments, the car goes back to the finance company. The company is required to sell the car at a publicly adver tised sale. In several cases, the repossessed. car has gone back to the original lot without adver-
Some Examples Examples of such violations are numerous. Here are some of them. Mr. H. bought a 1937 Chevrolet Panel Truck from a local lot and signed a blank contract with the understanding between buyer and dealer the payments would be $26.03. When Mr. H. received his payment book, his payments were $30.84. He protested. Examination of his payment book showed a $30 single interest insurance premium, in addition to evidence that the dealer had filled in one payment and the finance company had substituted another, The substitution was illustrated on the contract. There the original payment had been scratched out ahd the higher payment filled in. . - *
Payments Upped $38 In ansther case, a’ West ide
resiGént. purchased a 19468 Ply-|:
mouth Sedan (which retailed-in 1948 for $1100) for $2100. He received a $600 allowance on his old car and paid $100 cash, making a down payment of $700. ‘The buyer told The Times he purchased the Plymouth on the dealer's verbal assurance his payments would run $60 a month. When he received his payment
(Continued sn Page 3—Col. 6)
Fis anta
U. 8. ax falls on 300 state employees .......Page 3 » » 9 i
A day in the life of a | i |
guardsman . . . photo story, Page 19; Jack Thompson reports from Camp Atterbury...Page 8 . » -
The bridal scene . . . nuptial dates set . , . other women's News ........ 22, 28, 2 - a {
Other Inside Features
Amusements 14) Mrs. Manners 16 Ernest Blau. 22 {Movies ..... 14 Bridge ..... 22{Needlework. 24 Business ... 30|F.C. Othman 19 Comies ..... 35{Radio ..... 11} Editorials .. 20 Mrs. Roos'v'lt 22| Forum ..... 20/Ruark ..... 19
Gardening 4 Meta Given. |: Society ase Hollywood -. 1% Sports....26,
bd 2%
Need Court Order For Used Car Dat
State | Tells Funk :
Law. Restricts Release
The State Department of Financial Institutions said today that if Chief Deputy Prosecutor Glenn Funk wants its evidence of used car finance violation, he will have to present the department with a ‘court order. “What,” exclaimed Mr. Funk. His next words were he had no comment. ' 3 State Department Director Joseph McCord explained a section of the State banking law prevents the department from giving out evidence acquired through its own investigations unless it is ordered to do so by a court.
‘Law Is Strict’
“Our position does not mean we are reluctant to give the rosecutor ‘the information he wants,” said Mr. McCord. “We simply can't. The law is strict on that. “He will have to go into court and subpéna our ‘records which will then be duly turned over to him.” . Mr: McCord said the department was acting ‘on instructions of ‘the Indiana Attorney General's office. ' Meanwhile, both agencies continued their investigation of used car financing, each in its own way. State Department investigators were still at work. Deputy prosecutors were examining information before .them. : Complaints Stream In
came into The Times yesterday.
Most. of them ay Ia of their after feading similar ex-
ample’s in The Times.
While the investigations proceeded, dealers and some finance men told The Times they would ask legislative representatives in Marion County to tighten up the 1935 Retail Installment Sales Act which, they said, contained certain loopholes. Rly State Department executives said the $2500 maximum purchase covered by the law should be eliminated ,and no ceiling should be set. The Indiana Association of Installment Credit Companies, Ine., announced it will ‘ask the State Department and the prosecutor to furnish names of offending finance companies so that it can take punitive action against members. The association's executive secretary, Robert C. Hamilton, said association members have continuously attempted to eliminate bad practices. “It's ' deplorable,” said Mr.
ness finds itself questioned and
minority.”
A steady stream of complaints! They were advised to contact
Hamilton, “that the entire busi-
open to unfounded criticism because of the claims that have recently been made and which can only involve an extremely small
Babe Rallies, But Condition
Still ‘Critical
Pour In
To Stricken ‘idol’
A mid-morning hospital bulletin on the year-old former home run king said:
“Babe Ruth rallied this morning. His pulse is stronger. Condition improved although still critical” . A hospital spokesman earlier {had said the Babe was thoroughly |conscious and holding his own: { His condition had been reperted {as “slightly improved” last night
{after an. announcement yesterday) &
{that he had developed pulmonary complications and ‘had been placed on the critical list, Wife Gratified Ruth's wife, Claire, obviously was weary when she left his hospital room for a few minutes this morning. . “He's feeling better,” she said. Later, she made a statement through’ a hospital official which said: “I am particularly touched by all the messages pouring into the hospital from boys, and I'm gratified for the many expressions of sympathy and good wishes coming from so many friends.” Hospital attendants said Ruth had received “bundles” of letters and telegrams wishing him an early recovery. Many of them {were from baseball players. {| The Babe had another visitor, James P. Chapman, Detroit, an old friend of the home run king. Mr. Chapman sdid that when he went into the room Ruth recognized him and smiled. Several persons called the hospital offering to give blood transfusions if Ruth should need them. Fan Writes Poem One of the letters to Ruth came from Frank J. Kennedy, Sault Ste. Marie, Mich., a sailor on the Great Lakes. He inclosed a 10-stanza’‘ poem which he had written about the Babe, ending: He sure was the greatest in color : To Play our grand national
phers who waited through the night for news of any change in his condition. : flood - of telephone calls jammed the hospital switchboard. Kids to whom the Babe was only a legend, and adults who remembered seeing him park one in the bleachers two {decades ago, called to ask how he was. IIT for Two Years They called newspaper offices, radio stations and police precincts all day yesterday after it was announced that Mr. Ruth's condition was critical. Kids broke off a ball game in a nearby vacant lot and trooped sadly to the hospital to inquire
in front of the hospital and motioned questioningly. RoE “He's still alive,” someone called and the bus moved on. Mr. Ruth has been ill for two years, He entered French Hospital Nov. 26, 1946, and the following Jan. 8 he was operated upon, Since that time he has been in and out of hospitals with increasing frequency.
tion of the 54-!
about him. A bus driver stopped/NeW York said he would refrain
i Side Glances | block a of traffic. Swerving, it toppled on the machine driven by Richard Davis, Fairland, Ind. A third car, driven by :
Mort8h Roman, Shelbyville, hit a tree, not shown in photograph. Driver of the truck was Claude Paulus of Wo
Soviet Protests N. Y. Court Writ
U. S. Urges Dewey To Advise Abeyance
WASHINGTON, Aug. 12 (UP) —Russia today protested to the State Department against the serving of a habeas corpus writ on Soviet Consul General Jacob M. Lomakin yesterday in New York. The note, signed by Soviet Ambassador Alexander 8. Panyushkin, claimed diplomatic immunity for Mr. Lomakin. It asked that the matter be taken up with the New York County Supreme Court.
The State Department ir ed -
4
hold the matter in “abeyance”
General . Holds Up Action
The writ was issued yesterday by Judge Dickstein. It di rected Mr. Lomakin to produce in court today Mrs. Oksana Stepanova Kosenkina, a Russign ischool teacher who has been in seclusion at the Russian Consulate since Saturday. . Shortly after the Soviet protest was lodged, Judge Dickstein at
from taking further steps at the moment so he could consult with the State Department and to permit the consul general to confer with his embassy.
of habeas corpus at request of! Common Cause, Inc, a New York anti-Communist organization. The writ was served on Mr. Lomakin yesterday, but he ignored it. X
chief issues in the largest Indiana American in history opening here tomorrow,
Hoosier veterans established a beach-head In the flag-bedeck All principal hotels said they were unable to accept additional guests during the five-day conclave. Restaurants and bars restocked supplies for the annual fun and frolc session. b, Resolutions aimed at Commun-ist-front and left-wing Srgunis tions; and calling for more antiComm
some Legion posts may eamipaign if he contemplated any further/Tor “radical” bonus plans involv-/Choruses will come from action against the Soviet Consul{ing larg adequate: financing.
chased the ‘car from Swedes for a shipment of ball ‘bearings, and Jack Mabley, Chicago newspaperman, are driving the car.
Hotels, Restaurants, Bars Get Set
For ‘Biggest Convention in History’ By SHERLEY UHL
MILK PROBERS—Mrs. L. M. Vogler (left, standing) of the Indianapolis Women's Council, reads a letter written by a milk hatler as a council committee seeks to learn where the recent 2-cent-a-quart milk hike went. Other committee members (seated, left fo right), are Mrs? Rose Marie Cruzan, Mrs. B. Lynn Adams, council ‘president: Mrs. Claude Franklin, chairman of the investigating committee: Mrs. S. L. Wakelam, and Mrs. Julius Rockener.
Communism, Bonus, Dues Principal Legion Issues
Communism, staté bonus proposals and membership dues are
Major hotels here were booked solid as the vanguard of
Legion convention
15,000
ed city,
Gets One-Third 0f 2-Cent Hike.
Women's Council J
-—
fr
Tomlinson Hall. | -
munist investigations, were cial, convention delegates.
pos
cL
jeneral asi
shop quartet ‘contest 7 expenditures’ without Ripple
r Fight Seen | fous floor fight also was
Owner Stops Briefly En Route to Chicago;
Only 3500 visitors will be offi-
The
Fpecial patrol receiver 1 : t-convention midnight ight or
d by the resolutions com-| rest—around 12,000-—will Jast night. trate on “entertainment.” The
congen~ woman who
5 3 ‘ 000 ton
i
Meta Given, Page 28. Ry ROBERT BLOEM Charges that a closely knit ganization of distributors, and ‘operatives is “gouging” mi \sumers in Indianapolis ‘were at a milk price hearing fore Mayor BY.
pig aly
he ge mbly. provid-|at the Indiana War Me 3 Jing the bonus is approved by a/Auditorium at 2 p. m. Sunday.ib The Department wire to Statewide referendum next No- Right Legion male choruses from| Gov. suggested that Su-{¥ember, : thr t Indiana Wa preme Justice Samuel: Some :Legion heads were re-ifor in’ cash 8. Di .Fwho issued the writ, ported perturbed over indications there Legion
Broad Post 3, Indisnapolls; ett Post 127, An. 4prion i ht 8 Jom Angola. Jd: Ft. Wayne, Gary, Huntinganticipated on a resolution to'burg and Lebanon.
Hitler's 'Palace on Wheels' Gets a Mere Squint Here
Car Called ‘Hot as Hearse With Doors Shut’
Almost as wraithllke as its former owner, Adolf Hitler's car moved through Indianapolis streets last night. * Although the high-powered armored car has attracted curious crowds elsewhere on its trip from Harrisburg, Pa. to Chicago, it Judge“Dickstein issued the writ| apparently was unnoticed here,
The new owner, Chris Janus, Chicago manufacturer who. pur-
YA Roving Hotbox’
Club briefly, leaving about 3 a. m. Club briefly, 1éaving early today
They Checked in at the Columbia
3BODY HURT—Heavy fog this morning was blamed for this crash on Southeastern Ave. in the 5300 hen one northbound car tried to pass another, the semi-trailer truck, headed south, was forced out of fine
B. T. Leech, 20| Women's ,.. 24 cottville. Nobody was injured. evra ee mr tn maha - - a SRE § y J { eh a sk _ dom: mopman Soa ean HES ITI A A A
ov
. {anapolis,
wiper didn’t work and Hitler came . {in for pointed criticism. during ' rainstorms. ¢
“lousy,” said Mr. Mabley.
“levers,
|engine, two red beacons on the
hibited at the Illinois State Fair.
i
‘lerable talk that Hitler's ghost is
enjoy the ‘car because of the
Mr. Mabley, a writer for The Indianapolis Times and Chicago Daily News, said it took 21 hours to get from Harrishurg to Indi-
The two men almost sweltersed in the car as they passed through Ohio and Indiana. The windshield
“The ventilation, in a word, is “When the top is up it's like riding in a hearse with the doors closed. The driver's seat and the seat adjoining—where Hitler used to ride standing up to receive the heils—ix at hotbox. The best théory is that there is a heater on, but no one can find a button! to shut it off.” 40 Switches In Car He explained there are 40 switches, dials, buttons and Fooling With them the! two men turned on six lights in front, four in back, one in the
side and transparent illumined Heense plates, The car is en route to be ex:
After that Mr. Janus, who has e on the waiting list of a fcago auto dealer 19 months, plans to keep it for his personal
“Since Mr, Janus’ purchase of the car’ there has been consid-
in the car. Ohe man wrote Mr. =Janus a letter suggesting he could never
ghost, Mr. Mabley, however, warned Hoosiers not to worry that a ghost may have passed through) ior maybe dropped off in down-! town Indianapolis. “So far no ghost has shown ftself in the back seat or trunk,” he said. “And if he's in the front
to operate™an ext ring h by threatening to kidnap children for ransom, y There was no way to trace origin of the telephone call and police merely alerted squad cars
vicinity of the Brown home at 1213 Hanna Ave, A Advised by Police Mr... Brown , was advised to watch the actions of any suspicious persons around his store or home and was instructed that if he received another telephone call from a stranger to try
conversation until police can be notified to check the origin of the call,
customers of his store in the Carson Ave, neighborhood remarked that they had received some “peculiar telephone calls from a stranger yesterday. None of them demanded money, however, except the call to Mr. Brown.
Allies Finish 6th Kremlin Talk
(Report Russ to bolster troops in Berlin, Page 2; editorial, “Se-
holding the caller on the line with
Mr, Brown ‘told police several]
cret Talks In Moscow, Page 20.)
HE
on the South Side to patrol the|("e®
MOBCOW, Aug. 12 (UP) American, British and French enVoys ‘talked with Foreign Minister V. M. Molotoy for three hours tonight in the sixth of a series of East-West meetings on the German problem. U. B. Ambassador W. Bedell Bmith said after the meeting, in reply 10 a question whether this was the last of the series: ?
think so.” “We had a pleasant talk” he added. But in line with the de-
secrecy, he declined to make specific comment. , After the meeting the three
a post mortem discussion and to co-ordinate their reports to Washington, London and Paris.
PAPER WAD CAUSES DEATH CINCINNATI, O., Aug. 12 (UP) hat Louis Menke: 85, wadded that Louis Menke, Wi 7 a plece of or proliant 80 he fractured
seat he's being fried.”
*
prograsp ogg ol i ; .
“We never know, but I do not!
cision to carry on the feelers in!
westerners gathered as usual for
hig arm. Resulting ‘complications!
caused his death. LOCAL TEMPERATURES 6am... 68 108. m,.. % Tam... 1lam. 81 Sam... 68 12 (Noon). 84 x fam... Ip.m... 8 -