Evening star., 1940-03-07
Troffickers in Liquor Licenses
Reap Rich Profits in District
Rocket Of Brokers and Package Store
Owners Ties Hands of A. B. c. Board

NUSNSt OF OIOkcTS
Owners Ties Hands {
BY OLIVER
Artic
Traff1cking In the sale Of I
premiums many times the amQ
violative of sound public policY
Beverage Control Board.
Private sales handled In q m
under circumstances indicating
liquor lawyers, business brokers,
dealers, bears the stamp of boar
practice.
federation of this practice
bona f1de license transfer is CO
whereby over-saturation of liqr
perpetuated and gradual reduction
prevented despite fixing of the limit
of package stores at 800 on March
IT, 1886.
Whereas the law fixes a fee Of
$3.50 for a retailers class A license,
those desiring to enter the business
must pay a premium anywhere
from $500 to $1,000 for a license
which can be obtained only by
transfer from another.
Controlled by Power Trust"
To get this license, however, you
do not go to the A. B. c. Board first.
First, you see lawyer-the right
lawyer-one of the small group
comprising the power trust" Of A.
B. G. practice.
The current market price" for
a class A retailers license covering
an exclusive liquor store or a COM
bination type of outlet Is some
where between $500 and 5000
with 5000 an approximate figure.
This does not include the stock Of
goods OH hand, but merely the "esti-
mated value of license and good
will" Nor does it include the $25
transfer fee which the District of
Columbia government gets out of
the transaction or the amount paid
to the old Hcensee (transferor) for
the pro rated value of his unex-
pired license as Of the date Of
transfer.
Prices for this type Of public
license have ranged as high as
$4,000, including 5000 for the
stock on hand and $4,000 for "esti-
mated value of license and good
will" This price was paid for an
established exclusive liquor store in
an uptown area.
Condemned by Allen.
Il am very vehemently opposed to
giving any one vested right in a
liquor license" Commissioner George
E. Allen, in charge Of the A. B. c.
Board for the Commissioners, de-
clared.
why should any one be allowed
to trade in a public license?" he
asks THE A. B. c. Board should
be responsible for every phase of
the liquor industry"
Continuing his denunciation Of
the practice, Commissioner Allen
declared that "the license transfer
situation evidently has served to
defeat the policy of the board Of
reducing package liquor outlets as
enunciated March IT, 1896"
1t is Commissioner Aliens opinion
that a liquor license attaches to the
particular person and the particular
premises and he is vigorously
opposed to transfers from one Sec
ton of the city to another"
1t is shop talk" in the local liquor
trade to discuss the handsome
profits that have been realized in
the sale of these licenses. Inquiry
among class A licensees discloses Z
feeling of resentment that, in order
to enter legal business, they should
be compelled to pay an excessive
price for a public license.
License details of business brokers
handling businesses involving liquor
licenses apparently are taken as a
matter of course. One business
broker advertises Drug and Liquor
Stores Specialty"-in the telephone
directory. ane is recognized expert
on drug store brokeraging.
Broker Promises License.
A random telephone inquiry, with
out disclosing the identity Of the
caller, at the Office of general
business broker elected the infor-
nation that liquor businesses OF
all descriptions, including package
stores, are available Answering the
inquiry: How about the license?"
the broker said: I'VE can get the
license, too."
The instance of a lawyer handling
many cases before the A. B. C. Board
who is an officer Of a business
brokerage corporation can be cited.
Other instances are apparent
where lawyers who practice before
the A. B. c. Board are occupying
Offices having common entrance
with offices of business brokers.
Inquiry at the board as to the
financial details of license transfer
proceedings proved unavailing.
Chairman Thomas E. Dodge ex-
planned the board takes the posi-
ton that these are confidential de-
tails.
Citation of two instances can be
made nevertheless involving pay
ment of 5000 each for the "esti-
mated value of license and good will"
which while not sufficing to show the
profits realized, will nonetheless IL
lustrate the point Of how much good
will attaches in the usual case.
The first case involved the transfer
from drug store on a downtown
Iln,,eual MD <llvap