Evening star., 1938-10-11
DEALERS QUARREL
OVER RADVERT|S|NG
|. PRICES OF LIQUOR
Proposed Ban Would Be
Move Toward Monopoly,
A. B. c. Is Told.
173 RETAILERS FAVOR
PLAN, DAVIS ASSERTS
Rover Charges Attempt to Get
Regulation Set Up Without
Public Hearing.

A bitter quarrel over the proposal
OF the District of Columbia Retail
Liquor Dealers Association for a ban
on advertisement of liquor prices broke
today before members of the Alcoholic
Beverage Control Board as LAWYERS
representing opposing factions in the
industry hurled charges and counter
charges at one another.
Claims from both sides that they
spoke in the interest of the general
public provoked ridicule from their
opposition, and there were charges
That spokesmen were being "intellec-
tually dishonest" lacking in "intes-
tinal fortitude," and that the effect
OF the proposed rule would be to stimu.
late the liquor monopoly.
There were also displayed copies OF
large newspaper advertisements of
| liquor sales using the word "liouida-
ton sales" and proponents of the plan
rldiculed the suggestion of the op-
ponents that preservation of the right
to advertise prices was for the benefit
Of the public"
Principals in the verbal battle IN
cluded Manual J. Davis, counsel to the
retail group, and F. Joseph Donohue,
representing Milton Kronheim, whole
SaIer. who favored the rule; and Leo
A. Rover, former United States Dis
trlct Attorney, who represented one
liquor retailer who opposes the plan,
and Leslie c. Garnett, another former
United States District Attorney, who
represented the second retailer in the
opposition.
Assail Davis Stand.
Both Mr.. Rover and Mr.. Garnett as
sailed the position taken by Mr.. Davis
by reminding the board that some Dis
trict retailers had been cited by the
Federal Trade Commission on restraint
OF trade charges which, in their opin-
ion, were similar to what would be
the result if advertising of prices was
banned
Mr.. Davis reported thai 173 Of the
400 licensed retailers had voted in
postcard poll in favor of ban on price
advertising. He said his group be-
Ileyed that the present forms of ad-
vertising stimulated the purchase of
liquor beyond point of the customers
real wants for his liquor budget" and
that the result was to foster "intem-
perate drinking"
Mr.. Davis raised fears that contiu-
ued advertising of prices would hasten
the return Of prohibition and that if
it is not stopped the public may strip
us" of the right to engage in private
liquor business.
Mr.. Rover subjected Mr. Davis 70 a
gTuelling cross examination and at
tempted to force Mr. Davis to agree
that in voting for the rule they might
be prohibited from placing signs on
their own shelves to designate the
price of bottled goods there.
Prices Emergency Exists.
Mr.. Rover charged that Mr.. Davis
had attempted to Jam the regulation
through the Board of Commissioners
without public hearing and ridiculed
the statement of Mr.. Davis that the
plan was laid before the Commissioners
by the retail associations Executive
Committee on the grounds that IAN
emergency" had arisen. What is the
emergency?" shouted Mr.. Rover. "tr1is
advertising has been going on for i've
years"
Mr.. Garnett declared that municipal
officials could not prevent the pro-
ducers Of nationally advertised brands
OF liquors from publishing advertise
ments containing prices of liquors, al
though they might prevent local deal
ers from advertising their prices, and
he added: This would be drawing
grave distinction between the little fell
lows here and the big fellows engaged
nationally in the liquor industry. This
is an attempt to write into the munich
pal regulations what Congress has not
placed in the law. If this is adopted.
local dealers who pay taxes will not be
allowed to advertise their prices, but
Mr.. Kronheim, handling nationally ad-
vertised brands. will be riding high,
wide and handsome"
Rejected in Congress.
Mr.. Rover charged that the pur-
pose of Mr. Davis and his group was to
establish fair trade practice law by
a commissioners regulation, whereas
Congress. which passes laws for the
District. had declined to approve such
q measure.
If these gentlemen were intellec-
tually honest and didn't lack intestinal
fortitude, they would admit it," said
Mr.. Rover. Il am astounded at the
temerity of people who are charged
with serious offense by the Federal
Trade Commission to come here and
add fuel to the fire by asking you to
do what the Federal Trade Commits
sion has said they could not do"
If this rule is adopted it will prove
a boon to the producers OF nation
ally advertised brands of liquors and
by reducing the business of local re-
tailers who undersell their competi-
tors, drive them out of business,
cause rise in prices and lead to the
establishment of monopoly for the
big liquor interests"
Joseph c. McGarraghy, represent
ing hotel liquor interests, said his
clients would oppose the rule if it was
intended to prevent the use OF prices
on wine lists which are distributed to
restaurant customers.
| Milford F. Schwartz, spokesman for
the Wholesale Liquor Dealers Associa-
ton, said his group would oppose the
plan If it was so drafted as to prevent
posting of prices on the shelves of the
liquor stores and would agree to the
plan only If the board found that any
sort of ban on price advertising was
in the interest Of the public.
Jerome B. Mckee, who said he ap-
peared as e private individual, but who
was described by Mr.. Rover as a for
mer president of the retail association,
read excerpts from the liquor law and
regulations and declared that, in his
opinion, it was Q violation Of present
rules to permit advertising Of prices.