Evening star., 1940-03-13
.A.b.C.Chaiirnlan
Tells Of Capitol
Pressure Efforts
Lodge Denies Board
Ever Yielded on
Liquor Licenses

A few members of Congress have
attempted to exert pressure" on
the Alcoholic Beverage Control
Board in the interest of applicants
Tor liquor licenses, Thomas E. Lodge,
Its chairman, revealed today before
the special congressional commit
tee investigating the District LIQUOR
situation.
Mr.. Lodge made the disclosure in
response to question by Chair
man Eberharter, who asked
whether the board has ever been
subjected to direct pressure" by
members OF Congress.
we have had some cases in
which members got interested on
both Sides" ne declared. THE num-
Der has been very limited, however.
The board has shown every possi-
bic courtesy to these members OF
Congress, but it has not yielded to
this so-called pressure"
Representative Schultz, Democrat,
OF Indiana, member of the COM
mittee, also disclosed he had re-
ce1ved information that the House
might give favorable consideration
to a proposal to establishment in
Washington of municipality owned
and operated liquor stores, otherwise
known as the dispensary system.
Sentiment in the House is gain
ing a mile minute for the dis
pensary system" he declared.
Would Build Up Revenue.
Mr.. Schultz pointed out a dis
pensary system might yield the Dis
trlct sufficient revenue to prevent a
possible budget deficit in view of the
Court of Appeals decision which, it
is believed, might outlaw the new
local tax on personal incomes of
Government employees who maintain
voting residence in the States.
I'VE don't want to see a sales tax
here" he declared.
Representative Schultz said the
District last year received S2,183,OOO
IN revenue from taxes on the sale
OF liquor, whereas Virginia, which
has a dispensary system, made a
profit of more than s6,0OO,OOO.
Liquor is a luxury" he said.
Getting stiff on Saturday night is
luxury. Automobiles are a neces-
sity. You can't get any more rev.
enue from auto owners in order to
meet the Districts possible budget
shortage. Let's get the revenue from
| liquor"
At the request of the committee,
which had become alarmed over re-
ports that Glass A liquor licenses
those that permit sale of liquor by
the bottle-had been transferred at
prices ranging as high as SIS 1000,
Mr.. Lodge submitted report based
on the records of the A. B.. c. Board.
The report contained a list of %
license transfers in 1899. The
maximum price recorded including
good will" was $3.50 and the
minimum $1,000.
The average price set up on an
unexpired license and good will"
during the transfers was $500.
Notes Held Used as Club.
Chairman Eberharter told Mr..
Lodge there has been "a good deal
Of talk" about wholesale liquor
dealers holding notes from retailers
as a club" to compel the retailers
to deal with them.
The A. B. c. Board chairman
fatty denied he had heard of any
such cases.
Mr.. Eberharter said reports also
were current that by holding these
notes monopoly had been created
in the wholesale market.
There is no monopoly" Mr.. Lodge
declared. Records of the board
show that. There are 10 Glass A
wholesalers and IS Class B whole
salers and l manufacturer"
Representative Dirksen, Repub-
]ican, of Illinois, who championed
the District income tax law, how
ever, did not agree with Mr.. Schultz.
TITS just a question" he said.
whether you're going to take it
out of the consumers hide with the
right hand or the left hand
Lodge Resumes Testimony.
Mr.. Lodge, who was recalled to the
witness stand after a severe two
hour grilling yesterday by commit
tee members, resumed his testimony
by urging that the A. B. c. Board
be given authority to regulate the
neon signs used by liquor dealers,
especially those who sell by the bot
tie.
These signs are too large and too
many" he declared.
Mr.. Lodge also suggested that class
c Observation-Disclosures that sell
liquor by the drink-be permitted to
remain open until 2 am. Sunday.
Existing law requires these places to
shut down their bars at IL midnight
Saturday.
There is feeling" said the A. B.
c. Board chairman, "that the closing
of the class c places at IL O'Clock
Saturday night constitutes hard
ship on those people who want to
go out Saturday night. If these peo-
pie don't get their liquor in the Dis
trict they will go some place else. If
our people want to spend their
money here on Saturday night they
ought to be able to spend it here.
Hits Sale on Sunday.
Mr.. Lodge subsequently registered
his objection to proposal that the
sale of hard liquor be permitted on
Sunday. In addition, he said, he
did not believe the present law per-
mitting the sale of beer and light
wines on Sundays in class c estab-
lshments should be changed.
Some licensees and some people
like the sale of beer and wine on
Sunday and others DON'T" he de-
clared. my suggestion is: Let that
alone"
Chairman Eberharter asked Mr..
Lodge what he thought about the
idea of automatically renewing liquor
licenses every year in cases in which
| no protests are involved,