Evening star., 1940-02-27
BY JAMES E. CHINN.

CH0TgSQ at A. q. L. bOQTQ QgSnt
tried to solicit a "bribe."
BY JAMES E. CHINN.
Charges that the Alcoholic Bev.
erage Control Board is "dictatorial"
and does not conduct its hearings in
a uasi-judicial manner were made
today before the special subcom.
mittee of the House District Com.
mittee investigating the liquor situa.
ton here.
The charges were made by two
Washington lawyers. Charles e.
Morganston and Ethelbert B. Frey.
who also heaped criticism on Thomas
e. Lodge, chairman of the board.
Mr.. Frey in particular declared
Mr.. Lodge rules the board with IAN
iron hand" Whatever Mr.. Lodge
says, he added, Mrs. Agnes X. Mason,
vice chairman Of the board. will do"
Seated side by side at the witness
table, Mr.. Morganston and Mr..
Frey alternately recited their COM
plants against the board.
After his criticism of Mr.. Lodge,
Mr.. Frey said, "Mr. onutt was q
prince"
George w. Ofutt was former
chairman of the board.
Board Called Arbitrary.
A few moments later Mr.. Morgan.
ston declared:
"The board is arbitrary in its
rulings and the way it conducts
hearings"
Earlier Ford E. Young, IT,, an
other attorney, who has represented
clients before the board, complained
Of its procedure in certain cases
and registered . vigorous protest
against q proposal to have the Dis
trict government control the sale
of liquor by the bottle through
municipality owned and operated
dispensaries.
Mr.. Young declared that licenses
issued the 400 class A dealers who
now handle all packaged goods con-
stitute a property right Of the
holders.
Comparison. Of Prices
During the questioning Of Mr..
Young, Representative Hunter,
Democrat, of Ohio said he had made
a comparison of prices Of 128 brands
of liquor in his State with those In
Washington and found that 101
brands in Washington are higher.
Ohio has q State-controlled dis
pensary system
Mr.. Young's recommendations
with respect to class G dealers who
sell liquor by the drink, were:
1. A Icensee should not be found
guilty of violating one section Of
the law or one regulation unless he
has violated that particular section
Of the law or regulation.
2. All evidence on which the board
bases its findings should be brought
out at the hearing. There should
be no confidential witnesses whom
the accused cannot cross-examine.
3. There should be no penalty i'm
posed on q icensee unless viola
ton is proved beyond reasonable
doubt.
4. A presumption on the part Of
the board should not be the basis
on which a ucensee Is found guilty
Of an offense.
Specific Recommendations.
Four specific recommendations
also were made by Mr. Young with
respect to class A dealers-those
who sell by the bottle. They fol-
low:
L. The dispensary system should
not be installed because licenses
constitute q property right Of
holders.
2. The A. 3. c. Board should not
require licensees to run liquor
store exclusively and allow others
to sell liquors in connection with q
drug store, grocery store or deli
catessen.
8. The board should not deny an
application on the ground that .
community Is overserviced when
same is inconsistent with the num-
Der Of stores In smaller area in
another community.
4. Prices and the right to adver.
tise should be uniform.
In addition he made two general
recommendations. They were:
l. The board should not deny
hearing an application under regu-
lation n where there has not been
q hearing before the board on q
prior application. ...
q. The board should state the cor.
rect grounds Of objections to any
application.
Before today's hearing. Chairman
Eberharter said he had enough VOL
untary witnesses lined up" to keep
the inquiry going for at least two
weeks.
Recall of Lee Asked.
Meanwhile, Representative Ken
nedy, Democrat, Of Maryland, rank.
ing majority member Of the District
Committee, made public q letter he
wrote Chairman Eberharter suggest
ing that Ralph A. Lee, who testified
last week, be recalled to the witness
stand.
Mr.. Lee, whose application for .
license to sell liquor by the drink
in restaurant near Riverside Sta
dium was turned down by the
board in December, but granted
the day before he testified before
the subcommittee, disclosed in his
testimony he had been approached"
by three or four persons who offered