Business: Chug-Chug

With a grinding clash of gears, the Tucker Corp. lost a major cog last week. Harry A. Toulmin Jr., machinery manufacturer and patent attorney, resigned as chairman of the board.

In a letter to SEC, Toulmin said that he quit "because of the manner in which Preston Tucker is using the funds obtained from the public through sale of stock." President Tucker, charged Toulmin, had ignored persistent requests that the $15 million "be spent and administered under . . . controls normal to legitimate business." To newsmen, Toulmin described Tucker as "a tall, dark, delightful, but inexperienced boy." He added that the Tucker 48 does not actually run, it just goes "chug-chug." Furthermore, "I don't know if it can back up." To all this Tucker snapped: "Absurd. I am surprised at the man." He explained that he had asked Toulmin to resign "to make way for a prominent man now active in the automobile industry."