Evening star., 1938-05-07
LIQUOR DEALERS
DENYPR|CEF|X|NC
Six Wholesalers and Two
Associations to Fight
TT. c. Charges.

Federal Trade Commission charges
against six liquor wholesalers and two
trade associations all of whom we're
accused OF resorting to boycotting,
blacklisting and other coercive meas
ures in an effort to maintain uniform
prices. discounts and mark-up in the
District. were denied today as those
named in the complaint prepared to
fight for exoneration
The complaint. issued yesterday,
named the following dealers:
Milton S. Kronheim e. Son, Inc,
1901 K street NV; Marvin & Snead
Sales Corp. PIG G. street NV: Philip
HorWitZ and Leon Samet, trading as
Roma Wine &, Liquor Co, 1905 Fifth
street NV: International Distribut-
ing Corp. 9l7 E street NV: Wash
ington Wholesale Liquor Corp, lll9
Twenty first street NV. and Globe
Distributing Co., Inc, 24l0 Eighth
place NV.
The organizations named were the
D. C. Exclusive Retail Liquor Dealers
Association. Woodward Building, and
the Wholesale Liquor Dealers of
Washington. Inc, Investment Build
ing. Manuel j. Davis, secretary and
general counsel of the retailers organ
ization, was named both individually
and as secretary.
Says Charges Untrue.
Terming the charges without foun-
dation and untrue" Mr.. Davis declared
his orga anizatiOn. which represents 1870
liquor retailers. including practically
all the larger ones" would fight to
the end to clear itself"
The association has never attempt
ed to do any of the things charged by
the commission" he declared. 1t has
always been within the law. and al
ways will be. AS its legal adviser. I
wouldn't permit it to do otherwise,
even if it wanted to--which it does
not
Mr.. Kronheim. president of the
wholesale firm bearing his name said:
We have never acted in co-opera-
ton with any other dealer or dealers
in the District for the purpose of
maintaining retail prices My firm
has. however. tried to promote the
good will and brand names of the
products we distribute by following
the policies practiced and advocated
by our President and various govern
mental divisions of the United States.
specifically. We have attempted by
our principles of good business to
point out to those with whom we do
business the value of pegged prices.
Our suggested minimum resale prices
are at reasonable profit point, just
as the Agricultural Adjustment Ad-
ministration pegged prices of farm
products. We believe that only fair
profit can make possible the con-
tinual business of our local RETAILERS.
20 Days to Answer.
ut is ridiculous for any one to ac-
cuse us of forcing price maintenance
that is something we cannot do
but if we are being accused of advo-
eating price maintenance. that is cor
rect"
Those accused in the complaint have
20 days in which to file answers, and
Mr.. Kronheim said his attorneys. Mil
ton S. Kronheim. jr.. and ]. Joseph
Donohue, would certainly put up a
fight to prove our innocence.
Milford F. Schwartz, general counsel
of the wholesalers group. said he
would make a statement later.
According to the complaint. the
respondents price maintenance pro-
gram was made effective through un-
lawful agreements among the whole
salers and the retailers. each acting
separately and through their respective
organizations, and between the whole
sale association and the retail group
and their respective organizations.
These actions, the complaint stated,
"have resulted in obstruction of trade,
suppression of competition among
wholesalers and retailers, prevention
Of the sale of liquors at such lower
prices as dealers might deem adequate
and warranted by their respective SELL
ing costs and limitation Of the adj
vantages in price which purchasers
would otherwise obtain from q free