Evening star., 1940-03-08

e liquor tax rates, and, avoiding
functions and use of spirits as a
social lubricant" etc., account for
much OF the local gallonage.
Open Market Area.
The laissez faire manner of LIQUOR
control, however, Is credited with
stepping up the local consumption
OF distilled spirits. A major share
OF the difference between local per
capita consumption-exceeding 8
gallons-in contrast with the ma
tional average Of slightly over l gall
Ion, may be credited to the condi-
tions surrounding sales here.
Another influence toward high
consumption which is reflected by
intensive competition in a metro
politan area such as Washington,
an open market" area, is the huge
stock of aged whisky in distillers'
bonded warehouses. The four-year
conventional term for post-repeal
aging of whisky ended in Decem-
ber, 1887. A tremendous volume of
whisky became available for bot
ting bond in December of 1898
and 1899, causing pressure on the
price structure of younger whiskys,
as well as four-year-old spirits.
The recurring liquor price wars
here, under control conditions of
wide latitude, are but the outer
manifestation of the continuous
battle being waged by the "big six"
Of the whisky industry and its
smaller components for a share in
the local market. Distillery execu-
tives have anticipated-and feared
this debacle for some years.
High-Pressure Sales.
With the india rubber vertebra of
A. B. c. Board administrative policy,
a system designed to make liquor
freely available and easy to obtain. +"
and virtually no restraint upon the
most fragrant types Of promotional
sales technique applied to the mar
keting OF these special products, a
high per capita consumption is
bound to result.
The hours-of- sale angles am. to
midnight by package stores-enters
into the equation along with the
availability of sales by the drink in
numerous lunchrooms, etc.
The bargain counter" technique
of selling and the intensive price
wars have driven the local price
structure to level lower than in
surrounding areas. which makes
price a factor both for District Of
Columbia consumption and goods
bought here and taken outside the
District.
The disparity between the appar-
entity high per capita consumption
here and revenue yield re-emphasizes
the virtual absence Of board inspec-
ton on the tax enforcement end. 1t
cannot be said how much loss. If any.
occurs, since there is no inspection
worthy of the name to protect the
public revenue Slipshod handling
of the visible aspect Of this work.
afhxing stamps to bottles. suggests
the opportunity for such leaks.
Administration Costs 2 Per Cent.
Roughly approximated, the alco-
holic beverage industry has returned
about $10000,000 in public revenues
to the District from licenses and
taxes at a cost for administration
approximately $225,O00. The board
rather proudly places costs of admin
istration at 2 per cent. This does
not take into account the cost of
the lions share of enforcement and
inspection furnished by the special
liquor squad of the police and routine
license checkup by police. Nor does
this allow for the cost to the tax
collector for handling stamp sales.
Excluded also is the cost of required
inspection by the Department Of
Health, the building inspectors Of
flee. the plumbing inspector and the
zoning Commission.
Receipts from the alcoholic bev-
erage taxes and license fees 60 into
the United States Treasury for gen.
eral District purposes. They are not
earmarked for special purposes-in-
cludihg temperance education-aS
in some of the States.