Evening star., 1937-04-16
CREDIT AUTHORITY
. OF LIQUOR BOARD
+. UPHELD BY COURT
Discretionary Power on Ac-
counts Extension Is
; Supported.
HOUSE GROUP TO STUDY
ADMINISTRATION OF ACT
Palmisano Heads Subcommittee
: After He Charges A. B. c. Is
Collection Agency.

In a ruling handed down less than
"a hours after special subcommittee
of the House had been set up to in
vestigate the Alcohol Beverage Control
Boards administration of the liquor
control act here, Justice Daniel W..
ODonoghue of District Court today
upheld the authority of the board to
determine what constitutes reason
able extension of credit by liquor
wholesalers to retailers.
Justice ODonoghue refused to en-
toin enforcement of a one-day license
suspension against William S. Martin,
proprietor of restaurant at 1854 Wis
consin avenue. The A B. c. Board
had ordered Martins license suspended
for one day because he allegedly al
lowed a s2l bill to run over the l5-day
limit set for such credits.
The House inquiry resulted from
charges by Representative Palmlsano,
Democrat, of Maryland that the poard
has been acting as a COLLECTION
agency for liquor wholesalers.
Palmisano Is Chairman.
Palmisano was named by Chairman
Norton of the House District Com
mittee to head the special subcom-
mittee. He said he probably would
begin the investigation next week py
calling members of the board before
the subcommittee to explain why they
suspended licenses of retailers for
failure to pay debts promptly to whole
salers.
Named on the subcommittee with
Palmisano were Representatives SACKS
of Pennsylvania, a Democrat and
Brewster of Maine and Dirksen OF
Illinois, Republicans. Another Demo-
crat is to be appointed later.
In the court case, Martin, a former
Georgetown University athlete, argued
through his attorneys that the reason
ableness of each credit extension should
be determined on the facts rather than
through application of hard-and-
fast rule.
Discretionary Power Upheld.
Justice O'Donoghue decided, how
ever, that the board might use its own
discretion hl laying down rules to
decide the reasonableness Of q credit
extension, and that the court has
authority to interfere only II the action
by the administrative agency is man
tfestiy arbitrary and unreasonable.
Assistant Corporation Counsel T.
Gillespie Walsh. representing the
board, had informed the court the
suspension was ordered only after
the board had considered Martins
dealings over an extended period. IF
the court should grant this injunction,
the very purpose of the law would be
thwarted," asserted the jurist. Such
injunctions would impede the opera
tions of the board and bring it into
disrepute."
In discussing the proposed inquiry,
Representative PaImisano said:
Il do not propose to protect dealers
who don't pay their debts. I pay my
debts and I believe everybody else
should, too. But I don't think the
Alcoholic Beverage Control Board
should be a collection agency for
wholesalers.
Maybe there's good reason why
dealer can't pay his bills when they
come due"
Mrs. Norton did not name two other
subcommittee to investigate the pub
lie utilities act and the automobile
financial responsibility law, because
Of apparent confusion over the COM
mittee's action at its meeting Wednes-
day.
Representative Dirksen, who made
q motion for an examination of the
act creating the Public Utilities Com
mission, insists it was adopted. And
Representative Nichols, Democrat, Of
Oklahoma, who proposed an inquiry
into the automobile responsibility law,
is equally insistent his motion was
adopted. The minutes of the meeting,
however, failed to record such action.
As result, Mrs. Norton plans to wait
until the next meeting to straighten
out the situation.
Sees Need in Changes.
Dirksen said he would renew his
motion, if necessary, because he
firmly believes the organic act of the
Public Utilities Commission should be
modernized. II am interested in
finding out whether the commission
might be granted broader powers and
whether it is hamstrung in it's efforts
10 ooptroI r,,,h1ir ,Iti1itioc hy on oh
solete statute" he declared.
Nichols pointed out If subcom-
nlfttee is not appointed to study the
automobile financial responsibility act
he proposed to include that subject In
the investigation the special subcom-
rnitttee of which he Is a member is
to make of District finances and the
proposed reorganization of the munich
pal government.