Evening star., 1940-12-20
Recommended Liquol
Changes Expected
From Board Soon
A. B. c. Unit Whipping
Program Of Reform
Rules Into Shape

A relatively long list of changes
in District liquor regulations, per-
haps including some proposed
amendments to the law. are expected
to be recommended by the Alco-
holic Beverage Control Board ,soor
as a climax to months of considera-
ton of operations under present
rules which entailed public hearings
at the District Building as a seque
to an investigation on Capito
Hill.
Members of the A. B. C. Board
have been working overtime lately
to arrive at final suggestions to the
Commissioners, and the best guess
today is that the city heads will
receive formal proposals after
Christmas, probably by the end OF
next week.
Considerable interest was stirred
yesterday by release recommended
tions made by Michael j. Keane, jr.
former assistant corporation counsel
who served as legal adviser to the
A. B. C. Board, in which he reported
on the lengthy hearings conducted
by the A. B. C. Board for the Com
missioners on the % proposed
changes in rules, some of which
resulted from suggestions made by
the Eberharter subcommittee of the
House District Committee.
Advises Against Price Control.
Mr. Keane suggested that the
board and the Commissioners refrain
from indorsing the so-called price
fixing or fair trades practices
measure suggested by some elements
in the Washington liquor industry
The leadership in the move for min
imum resale price fixing had been
taken by Milton S. Kronheim, sr
liquor wholesaler, who during the
past year organized a group of
liquor retailers and wholesalers
under the name of the Beverage
Industry Committee.
AS a substitute for such a move,
which he held was not authorized
by Congress and which he sug-
gested might be found beyond the
powers of Congress. in the suggested
form. Mr.. Keane described rebates,
discounts and "kickbacks" as one of
the major sources of evil in the
liquor industry and proposed as a
substitute Commissioners rule
requiring that:
Every manufacturer and whole
saler licensed by the District file
with the A. B. c. Board wholesale
prices at which any and all whole
sale beverages shall be sold in the
District, prescribing uniform terms
for all retailers, outlawing rebates,
discounts and "kickbacks." 1t was
provided that no price schedule shall
provide for any rebate, discount or
allowance for quantity purchases
except as follows: For orders of less
than one case, no discount, one to
four cases, inclusive, per cent dis
count permitted; orders of from five
to nine cases, 2 per cent discount;
10 to "a cases, 3 per cent discount,
and Is or more cases, per cent
discount. These discount rates, it
was said, would be heavy reduction
from what is now allowed for pur-
chasers of large orders.
Suggests Voluntary Ad Censorship.
The proposal from the Kronheim
group and others was that resale
contracts adopted by wholesalers
and retailers would be enforceable
by the A. B. c. Board.
Mr.. Keane passed by the pro-
posed ban against advertising of
liquor prices and suggested instead
rule by the Commissioners for
bidding any advertising in which
immediate or extravagant opin-
ions or conclusions" were made con-
cerning the quality of the beverage
or its value. Penalties would be
provided for violation and Mr..
Keane suggested that licensees who
wished to avoid prosecution should
submit their advertising copy to the
A. B. G. Board. If approval was
given to such copy, in this volun-
tary censorship plan, the ncensee
would be relieved Of responsibility
thereafter.