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F E D E R A L R E S E R V E BANK OF NEW YORK r Circular No. 3 6 4 6 1 L January 18, 1951 J REGULATION W CONSUMER C R E D IT Press Statement o f the Board o f Governors o f the Federal Reserve System To all Persons Concerned with R egulation W in the Second Federal R eserve D istrict: Following is the text o f a press statement issued for immediate release by the Board of Governors of the Federal Reserve System: The B oard o f Governors o f the Federal Reserve System obtained a judgm ent today in the United States D istrict Court at Columbus, Ohio, enjoining 5th Avenue Motors, Inc., its president, H arold F . Pritchard, and its secretary-treasurer, 0 . George Ezzo, from further violations o f Regulation W and com pelling compliance with said regulation. The defendants, through their attorneys, consented to the entry o f the judgment. The B oard o f Governors o f the Federal Reserve System, having received reports from the Federal Reserve Bank o f Cleveland that 5th Avenue M otors, Inc. appeared to be selling used cars on terms which violated Regulation W , ordered an investigation to determine what further steps it should take. This investigation, which is specifically authorized by the Defense Production A ct o f 1950, was con ducted in Court Room No. 2 o f the United States D istrict Court at Columbus, Ohio, on January 12 and 13, 1951. A bout 35 witnesses were subpoenaed by the B oard o f Governors and examined under oath. In view o f inform ation obtained in the investigation and data furnished by the Federal Reserve Bank of Cleveland, the defendants consented to the entry o f the judgm ent, violation o f which would subject them to being cited and punished fo r contem pt o f court. Regulation W , issued b y the B oard o f Governors o f the Federal Reserve System pursuant to the Defense Production A ct o f 1950, provides that a Registrant shall not extend any credit fo r the financing o f certain listed articles including new and used passenger automobiles without obtaining a down paym ent in an amount prescribed in the regulation. In the case o f automobiles the present terms o f the regulation require a down payment o f not less than one-third o f the cash price o f the car and the balance must be paid in 15 months. Additional copies o f this circular will be furnished upon request. A llan S proul, President.