City May Regulate Scrap Metal Sales

By Jennifer Torline, The Wichita Eagle, Kan.

Jul. 14–Thefts spur calls for law

Police, victims, businesses work together on idea

Harlan Hartstein started to buy catalytic converters at his scrap metal business less than a month ago. But with metal thefts on the rise and the possibility of stricter laws regulating parts sales, he stopped last week.

“It would be a headache that I don’t need,” said Hartstein, owner of Wichita Iron & Metals Corp.

The nationwide rise in catalytic converter and metal thefts has frustrated local scrap dealers and auto salvagers and prompted the Wichita Police Department to meet with dealers about changing laws, though some dealers say a new law could be a wasted effort.

Last week, thieves stole 11 converters from the American Red Cross and five from a U-Haul business.

Earlier this year, thieves also stole copper wires and pipes from parks, power poles, home air-conditioning units and businesses, causing thousands of dollars in damage.

A growing demand for metal in countries such as China and India has caused a rise in metal value, said Bruce Savage, spokesman for the Institute of Scrap Recycling Industries.

In the last six months, he said, the prices for scrap iron and steel have more than doubled. Copper has gone up a third.

“As the prices on those metals continue to rise, it’s just prompting more and more people to steal these things,” Savage said.

Creating a city law

Catalytic converters are especially attractive to thieves. The devices contain precious metals such as platinum, palladium and rhodium.

Recent thefts in Wichita prompted police to meet with home-building businesses, metal-theft victims and scrap-metal dealers to start crafting a new city ordinance.

On Wednesday, police discussed the issue with 10 local dealers, said Capt. Darrell Haynes.

“What we’re looking at is trying to stop the hemorrhaging of metal that is going on,” he said.

Although the ordinance is in the early stages, Haynes said some ideas include requiring dealers to:

Electronically report when someone sells certain items.

Hold items, such as catalytic converters, cemetery plaques and statues, for 72 hours before they could be crushed or destroyed.

Make some payments by check, to supply a transaction record.

Haynes said police will meet with dealers again and bring the proposal before the City Council in late July.

But some businesses said a law may not help because some thieves steal and sell metal out of state.

Passing an ordinance is “not going to bother the people who are doing it illegally anyway,” said Mike Lehning, co-owner of A-One Auto Salvage, echoing a concern shared by other dealers.

Haynes said the city is creating a comprehensive law to cut down on illegal activity.

Dealer precautions

Kansas law requires a person to show a picture ID at a scrap metal dealer if the transaction is worth more than $50. The law also requires an ID for catalytic converter sales above $30.

Scrap metal dealers said they often use extra safety precautions to try to combat thieves selling stolen items.

Wichita Iron & Metals requires an ID for all sales.

“Even if we buy two cents’ worth of something, if they don’t have an ID, then they will receive a check for it,” owner Hartstein said.

Jon Rajsl, manager of A to Z Recycling, offers $8 to $80 for catalytic converters. He always requires an ID and only gives checks as payment.

“If you are paying people cash, you are back to the whole ‘Don’t ask, don’t tell,’ ” he said.

Aside from suspicious behavior, scrap metal dealers said it can be difficult to identify thieves.

“You can’t tell the honest copper from the dishonest copper,” Hartstein said.

Legal and licensed business owners also say they are frustrated with illegal, non-licensed businesses.

Paul Davis, owner of A-Plus Parts and Salvage, said he recently saw a truck in town with a sign that said, “I buy catalytic converters.” He said he questions the legitimacy of such buyers.

“When metal prices get high, everyone thinks they are a salvage dealer,” he said.

And it’s the illegal businesses that give scrap dealers a bad name, some say.

“The recyclers are not all criminals,” Savage said. “They are actually taking more steps to assist communities in dealing with these types of material thefts.”

Working together

Scrap dealers and auto salvagers agree that something should be done to stop thefts, but not at the expense of their customers.

As cities across the county try to stop thefts, Savage is skeptical of proposed solutions, including some Wichita is considering.

Savage said that while the Institute of Scrap Recycling Industries recommends picture ID requirements, he was less convinced about laws requiring salvage dealers to hold an item before processing, because prices can change daily.

“The nature of the business is you buy it with the intention of a quick turnaround,” he said.

Savage also said laws requiring a check as payment hurt those who might use the cash as gas money or an extra source of income.

“You have to make sure these regulations are reasonable and workable for everyone involved,” he said.

Savage said a coalition between dealers, homeowners, theft victims and police would be the best solution.

He cited the success of Macon, Ga., where he said such a coalition created a metal theft reporting system that has reduced thefts by 90 percent in that area.

Another metal theft coalition in Florida led to the arrest of 29 criminals in two years, Savage said.

Meanwhile, Wichita police continue to work with local dealers to search for the best way to stop thefts.

“We know this is a huge problem,” Haynes said. “We’re trying to craft the city ordinances in such a way that it will stop or vastly reduce the burden for the victims.”

Reach Jennifer Torline at 316-268-6399 or jtorline@wichitaeagle.com.

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