The Courier News from Blytheville, Arkansas on April 12, 1954 · Page 7
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The Courier News from Blytheville, Arkansas · Page 7

Blytheville, Arkansas
Issue Date:
Monday, April 12, 1954
Page 7
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MONDAY, APRIL 12,1954 BLYTHEVTLTJE (ARK.) COURIER NEWS Surplus of New Cars Causes 'Black Market' in Reverse By JAMES G. CROSSLEY NEA Staff Correspondent CLEVELAND — (NEA) — A new car "black market" in reverse — caused by overproduction instead of shortages — is flourishing on used car lots across the nation this spring. Instead of being sold at premium prices, as they were during the years of wartime scarcity, 1954 models are being sold as new cars by second hand dealers at less than showroom prices. Many of them are actually brand new cars, obtained by the used car dealers through one of several methods at wholesale prices, usually from overstocked dealers. But some are what the trade calls "spun-ins"—cars which have been towed long distances to the lot, abused while being driven there, or even damaged in shipment. It Is not illegal, but the so-called "bootleging" has Detroit motor mon- guls worried enough to issue stern warnings to their franchised dealers. In some cities, dealers themselves are slashing prices to meet the competition; others are banding together in advertising campaigns to warn the public they may be getting fleeced when they buy new cars away from the showroom. Early this year Henry Ford II said: "We have received a number of complaints directly tracable to our own dealers. We will deal with each case on an individual basis." And Harlow H. Curtice, president of General Motors, chastised "the selfish desire on the part of some dealers for a quick profit." He warned that G- M. dealers' performances would be watched closely. Optomists .in auto circles say it's no worst than a bad case of indigestion. It*' (imply overproduction and maldistribution," says Earl Burrows secretary of the Cleveland Auto Dealers Association. "Temporarily the dealer network is having diffi- .culty absorbing the cars. It is an Industry problem We will solve it." Even so, one Cleveland dealer used estimated 25 or 30 new cars on used lots. "Some of these care wers probably damaged in transit," he says. "Such cars are auctioned to anyone who will bid and could be fixed up by enterprising used-car dealers." In Akron, O., a newspaper disclosed that scores of new cars were leaking Into the used-car market there. One of the fringes of the operation was an Akron man with a long time police record. The paper also found cors assiged to a fictitious Miami, Fla., address which was palatible residence in an ultra-exclusive section. There are several standard methods of diverting new cars to used- car lots.: First, an authorized dealer may take a small profit by selling direct to the used.-ear man, usually away from his territory. Second a used-car dealer can pose as an auto rental agency or an auto fleet leasing company. Third, used - car dealers some distance away from Detroit can trade on freight rates which can amount to as much as $400. A car can even be bought retail in Detroit and driven through with another towed behind to give a fine price advantage on the used car lot. * * * The South, Southwest and Pacific Coast are particularly beset by "car-legging." In Dallas, Tex., several used-car lots advertise new cars constantly. ADS LIKE THESE, superimposed on a background of a plentiful supply of new cars, typify the sales approach of used-car dealers with 1954 models ("under 200 miles") for sale. Ad warning about price tags in counter-attack by new car dealers. A low estimate of the number of cars normally on lots, given by J. N. Whitehurst, general manager of Authorized New Car Dealers of Dallas, Inc., was 500. "The purchasers cannot be sure the cars are really new, and, therefore, they lose the factory guarantee," said Whitehurst. "Also, the title might not be clear." However, in Kansas City the au- troized agencies believe the bootleg boom is collapsing. They estimate 40 to 50 new cars normally on the lots, but say seven or eight of the lot dealers have quit. Their reason: too close profits and too many headaches. * • * Chicago also reports little bootlegging. Ed Cleary, general manager of the Chicago Automobile Trade Association, says the organization has disciplined only three of their 485 members. He pointed out, however, that the city has a mail-order type establishment which claims to get 17 or 18 per cent discount on new cars. It trades with armed forces personnel primarily. Authorized dealers in Washington, D. C., have escaped the competition, too. A tough dealers' association and a stringent auto registration law make under-table dealing impossible. They keep a close check on serial numbers. But one western dealer, recently quoted in Automotive News, ordered only 35 per cent of his normal quta. He told the factory he'd "buy the other 66 per cent cheaper on the bootleg market." * * • On the other hand, the nation's used-car people have answered right back. They particularly do not like the word "bootlegging." R. W. Workan, president of the National Used Car Dealers Association, says "bootlegging" implies illegal action. Any used-car dealer who possesses new cars obtained them in a completely lawful manner. "We are not pointing our fingers at the franchised dealers, nor do we take sides," says Workman. "We are interested in having the term 'bootlegger' eliminated. If the term must be used because of the lack of some other name, then it should be applied to the right people." Regardless of the name it is called, the leak of new cars is causing a headache to dealers in many communities. New York papers carry ads for cut-priced new cars. The practice is rampant in Brooklyn and other boroughs. C. Roy Palmer, executive vice president of the Brooklyn and Long Island Automobile Dealers Association, says that one used-car dealer in Queens County sold 2000 new-model cars last year, 1100 of them one make. * • » "Many of theae can are not new at all," says Palmer. "It's really a fraud on the public. Theae dealers have no service department to take care of the new cars. An authorized dealer spends about $150 getting a car ready to sell. These people just rip the paper off and put the car on the lot." On the west coast the gimmick is the "phantom" freight charge. In the San Francisco-Oakland area, for instance, the Better Business Bureau says the freight rate is $400 per car. But on one side of the bay the rate is reported to be only $300 per car. Most of the used-car dealers drive the cars out in caravan, and the cost is even less. A Better Business Bureau report from Seattle said 42 new model cars arrived there recently in one caravan. Also, in the Los Angeles area it is reported that 40 per cent of the new Cadillacs sold there are "bootlegged." Rain Breaks Drought After Prayers Offered ROTAN, Tex. (JP)—The pastor of Rotan's First Baptist Church announced at the start of morning services yesterday that prayers for rain would be held each Sabbath until it rained. Minutes later light drizzle began falling. Dr. Laurence Hays Interrupted his sermon and exclaimed: "That's rain:" A member spoke up, "Now is the time to pray," and prayers were offered. The preaching resumed. Ten minutes later it began to pour down on this drought-hurt west Texas town. The pastor again interrupted his sermon and asked the congregation to stand and thank the Lord. A total of .71 of an inch fell during the services. AGAIN . . . The RAZORBACK DRIVE-IN LEADS THE WAY! Television Specials In Take Home Packages: ITALIAN SPAGHETTI (Razorback's Famous Italian 4 AA Style Sauce, with Hot Rolls - - ONE FULL QUART | n \J\J 1.25 $1.00 OUR FAMOUS BOSTON BAKED BEANS, ONE PINT CQ(f !/ 2 FRIED CHICKEN (Golden Brown, with French Fries and Hot Rolls) !/2 DOZ. FRENCH FRIED SHRIMP (Jumbo Size, with French Fries and Hot Rolls) Just Drive Up to the Curb If You Don't Want to Come In— All In Take Home Packages THICKEST MILK SHAKE IN TOWN 25e BANANA SPLIT 30e H.RES FAMOUS ROOT BEER lOc Try the Razorback's Take Home Packages -Have More Time to Enjoy Yourselves! Vast Business Survey At Dallas By ROBERT H. JOHNSON JR. DALLAS Lf>—Dallas is the guinea pig in a study that may help a merchant in Cleveland or Phoenix decide whether to put four more floors on his downtown building or to set up shop on the outskirts of town. If you're just thinking about getting started in business for yourself, maybe it will help you to decide whether to rent space on main street or find a spot in the suburbs. That's what the U. S. Census Bureau hopes will be the value of the most intensive retail business survey it has ever made in a single metropolitan area. The survey was started last Jan. 12 under the direction of Henry Wulff of Washington, chief of the Census Bureau's retail trade section. From time to time he has come here to work on it with James W. Stroud, regional supervisor of the bureau. Wulff said he expects the results to be published between late June and midsummer. He expects the field work to be completed within a week. The main object of the survey is to study an apparent trend toward decentralization of retail business —find out what businesses are most affected and why. Wulff said it's even possible the survey will show the trend has reversed itself — that downtown business centers are becoming more entrenched. British to Push Mau Mou Bottle NAIROBI, Kenya (£>)—-The British say their two-month attempt to negotiate a peace with the Mau Mau has failed. They promise to push their anti-white terrorist organization with new vigor. Acting Gov. Sir Fredrick Crawford, acknowledging that the try at arranging mass surrenderers had fallen through, said RAF Vampire jets would aid the terrorists. OSCEOLA NEWS Pitch Club M«eto Mrs. Maude Hudson was hostess to the Widows Pitch Club Thursday night. Guests joining the members were Mrs. Nelle Kent. Mrs. John Enochs. Mrs. Bob Cromer and Miss Mary Outlaw. A dessert course was served. Spring flowers were used to decorate the Hudson's apartment. Bridge Club Meet* Mrs. Melvin Speck was hostess to her Mid-Week Bridge Club Wednesday afternoon. Mrs. Joe Cullom. Jr.. and Mrs. Bruce Colbert were guests. Spring blossoms were used to decorate Mrs. Speck's home. A dessert course was served. Club Mas Bane* The 36 Club gave their monthly dance Thursday night at the Rebel Club. The hosts were Mr. and Mrs. BUI Elias, Mr. and Mrs. G. L. Waddell, Mr. and Mrs. Ray Morgan, Mr. and Mrs. Bill McMath. Mr. and Mrs, Bill Joe Edrington, Mr. and Mrs. Bob Kendrick, Dr. and Mrs. M. S. Nickol and Mr. and Mrs. Royal Langston. Among the pre-Easter parties given during the week was the luncheon and canasta party given by Mrs. C. E. Dean, complimenting her sister, Mrs. A. C. Fields of Union City. Tenn. The affair, which was given Police Aid Boat-less Navy Quincy, Mass. (£>}—City Bolice had to rescue two sailors adrift in a small boat yesterday because the Navy was caught without a boat. Joseph E. Forti of Medford and Richard J. Greer of Quincy, both attached to the Squantum Naval Air Station, were rowing in the bay when they lost an oar. Fellow Navy men on shore noticed their plight and called the harbor police to the rescue because the naval air station didn't have a boat available. Wednesday, was held in the Noble Hotel in Blytheville. The sixteen puests were seated at an L-shaped table, which was centered with spring arrangements of pink fantasy tulips, blue iris and white narcissi. At each plate were rabbits carrying; baskets of engs. Mrs. Dean greeted her guests wearing a silk print spring dress featuring a white bolero. Mrs. Fields was attired in a navy blue sheer with gray and yellow accents. Following the luncheon, the guests spent the afternoon playing canasta in the Pine Room. The honoree was presented a gift and prizes went to the high score winners at each table, including Mrs, John Enochs, Mrs. J. L. Ward, Mrs. C. E. Sullenger and Mrs. Harry Driver. PcmonaU Mrs. Jessie Cramer and Mrs. Bob Howerton shopped in Memphis Wednesday. Jimmie Weitblngton of Atlanta, Ga.. was an overnight guest of his uncle. B. A. Cox, on Wednesday night. Among those from Osceola attending the 20 Club fashion show in West Memphis Thursday were Mrs. W. C. Mason, Mrs. Tal Tongate. Mrs. Searcy Meors, Mrs. Jettie Driver", Mrs. Frank Williams. Mrs. Guy Driver, Mrs. Roy Cox, Mrs. Bob Glllespie and Mrs. David Laney, who was one of the models. Mrs. Hyman Weinberg entertained her bridge club at the Seminole Club Thursday afternoon. A dessert course preceded the bridge games. Mrs. David Laney was a Memphis visitor Wednesday. Mrs. Ed Shippen and Miss Ruth Massey were in Memphis Wednesday to see Dr. L. D. Massey. who is a patient in Campbell's Clinic. Dr. Massey is expected home during this week end. Mr. and Mrs. Bob Hesley have as their guests, Mrs. Hesley's parents, Mr. and Mrs. G. B. Ashton of Chicago. Mrs. Hesley and son, Scottie, are returning with them today by automobile for a three weeks visit. Mrs. Elsie Edrington, Mrs. Pat For The COURIER NEWS In Caruthersville, Mo. CALL EUGENE CARNELL Caruthersville 473 biggest penny in the world... supplied by your public wafer supply system. Yes, ffie penny you spend for water has the highest purchasing power in the world. For less than ten of these pennies you get a ton of water delivered right to your faucets. Yet few of us stop to consider that this convenient, reliable, low-cost service is due to the efficiency of America's public water supply systems. A good water supply rarely receives public recognition because, like good health, it is taken for granted. But it is the community's greatest asset, guarding health, life and property. Blytheville Water Co. "Water Is Your Cfitaptst Commodity" Kinard p.nd Miss Ruby Anabel left Wednesday for Washington, D. C., to spend n week where Mrs. Ed- rlngton will visit her son, Charles, who is stationed there in the Navy. Mr. and Mrs. Gene Butler began construction on their new home Monday which is in the new Watson addition. Mrs. Charlie Lowrance Is in Columbia, Mo., visiting her son, Col- lie, who U m student «t. «* Vnt> rersity of Missouri. Mr. and Mrs. Jasper Tomasoa and son, Russel, were in Memphii Thursday for the Cardinal bail game. Miss Jean Driver Kendrick, •*** dent at the University of ArkaMM» is home for a week's viaH. Mrs. 0. W. Massengill and |fra. J. B. Strickling were araonf In Memphis Thursday. Tomorrow Is The Last Day 1 To *rt Yo*r BEAUTYREST MATTRESS 1 o Wee* Pays for it! CNo Carrying Charge) Furniture & Appliances BE SAFE— CLEAN BEFORE STORING! Beltway Cltantrt — Your Spring Cleaning Headquarters — Now Offers EXPERT FUR CLEANING & GLAZMG ALL WORK GUARANTEED BESTWAY CLEANERS MEMBER NATIONAL INSTITUTE OF DRY 1920 W. MAIN Phont 2408 RELIABLE— (JAR SERVICE Tire Repair Lubrication Road S«rvict Washing Experienced Personnel To Serve To«. •Battery fa-riot Lion Oil Cat* and Trucks Calfe* tor MM! Df*v*rc4. AN Trt*«N« FttMf Inmre* Whfth In O«r CM**. WILSON AUTO SERVICE A»h A Second Andy MOMC, M|T. PfeMM> MM Lawn and Power Mowers and Repaired Ph«n« 2191 Remember afaoi WELDING hi our Shop or on the Job MACHINE WORK We are equipped to do anf type or siae Job. F. L WICKER MACHINE SHOP 620 East Main St. For Fine Foods, Choose PICKARD'S GROCERY & MARKET Nationally Advertised & Fancy Groceries 2043 Call In Come In 1044 Chick. LAUNDRY & DRY CLEANING COLD STORAGE FOR FURS, WOOLENS AND BLANKETS 4474 PHONES 4475 NU-WA LAUNDRY CLEANER We Give Rajrle Stamps

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