Evening star., 1935-11-03
OHIO GUSTS TRADE
Of LIQUOR GROUP
Action Climax of Row Be-
tween Davey and News
paper Chain.
Nv thu Associated Press.

Carl A. Babcock. technical adviser OF
the Ohio Liquor Department. ordered
shelves of State liquor stores cleared
of National Distillers Corp. products
today in the midst of heated con-
troversy between Gov. Martin L. Davey
and a chain of Ohio (Scripps- -HowarO
newspapers.
Babcock said he acted upon orders
of James w. Miller. State liquor direc-
tor, in asking the company to remove
its stocks from the liquor stores. Miller
could not be reached, but Gov. Davey'S
secretary, Mrs. Myrna Smith, said
Miller told her he knew nothing about
the order.
In addition to this development,
Gov. Davey said he understood that
three nationally known distilleries had
withdrawn their advertising from Ohio
newspapers. He said he understood
they we're National Distillers, Seagrams
Distillers Corp. and Schenley Products
Corp.
Pretty Smart Move"
"I don't know much about it," the
Governor said. He added that If the
companies had withdrawn their ad-
vertising, lit was pretty smart move" ="
Davey expressed reluctance tonight
in an interview to discuss current de-
velopments on the question. Asked if
he would have any statement to issue
tomorrow, he replied. Now let's let
that 60 until another working day"
Earlier tonight. Francis w. PoulSon
Democratic State chairman and ad-
wiser to Davey, had said statement
would be issued tomorrow. Poulson
said the Governor had talked with
Miller. Davey had mo comment" to
make on this point.
In Washington, James M. Doran, di-
rector of the Distilled Spirits Institute,
said that withdrawal of National Dis
tillers Corp. products from the stores
followed attempts in Ohio to influence
newspaper policies.
The National Distillers Corp, in
statement issued in New York, as
serted it had been asked to cancel its
advertising in a group of newspapers
in Ohio, and that when it declined
this request, it was informed that its
brands would be withdrawn from sale
in Ohio. The statement said the COM
pany then ceased advertising in all
papers in the State.
John c. Thompson, a member OF the
Ohio Liquor Control Board, said,
'there has been some doubt as to the
powers of the board and the director"
in determining what brands of liquor
shall be offered for sale in the States
stores. and expressed belief the ques-'
ton will have to be taken up with
the attorney general for decision"
r. J. Dustman, who handles the
national advertising account of Ma
tional DiStillers, said the advertising
amounted to $50000 month in 81
Ohio newspapers.
Start of Controversy.
The controversy between the Gov
ernor and the newspaper chain started
with series of articles in the papers
OF the chain members charging that
certain brands of liquor were favored
by the State liquor department and
that politics dictated the kind of liquor
bought for the State stores.
Gov. Davey answered in a radio
speech a week ago by charging the
newspaper chain was conducting a
cash register crusade" He also at
tackled a liquor trust" which he did
not identify. He said the newspaper
articles were unfair.
Last Wednesday Director Miller pro-
duced copy of a letter written by
Harold A. Rosene of the general adver-
tising department of the Cleveland
Press "a Scripps- Howard paper So
liciting advertising from Schenley
Products Corp. The letter was ad-
dressed to Frank Taylor of Schenley
Products Corp.
Miller released the letter with this
quotation from Gov. Daveys radio
address.
1T is fully evident that the motive
back of the Scripps crusade was not
a high moral regard for the public
welfare, but it was strictly a cash reg
lister crusade. That is proven by the
fact that they protected their adver-
tisers and attacked only those dis
tillers that were not advertising with
them. 1t appears that their only in
terest is the amount of advertising
revenue they can force into the cash
register"
Explanation Demanded.
Answering this move, an editorial in
one of the newspaper chains papers
said the "Rosene letter does not answer
any Of the charges We have made
against the liquor department. 1t does
not explain the policy of unjust dis
elimination. We now repeat our de-
mand for an explanation of that dis
elimination"
To the Governors charge that the
newspaper chain attacked only nom
advertisers in its crusade, the papers
replied that six out of the seven dis
tillers they attacked were advertisers
IN two or more papers in their group.
1T is time for Gov. Davey to stop
hedging on this issue and to squarely