Evening star., 1940-12-29
Investigate What?

IAol CS IlOW DelllS mace 10 FOSTER
the impression that the local Alco-
hollc Beverage Control Board is
under suspicion as a violator of the
antitrust laws have all the appear
ance of thoroughly reprehenslble
attempt to coerce and intimidate an
agency which was established to
protect a vital public interest.
The matter first came to public
attention with the disclosure Friday
that the Antitrust Division of the
Department of Justice was planning
to investigate the activities of the
A. 3. c. Board, particularly with a
view to determining whether there
had been any illegal attempt at price
fixing.
The result, of course, is to shake
public confidence in the A. B. G..
Board despite the fact that the rec
ord of that agency destroys even a
suspicion of any antitrust law vio-
lation.
The deplorable situation now pre-
Valllng can be traced back to the
report last June of a special sub
committee of the House District
Committee which had conducted an
investigation of chaotic conditions
In the liquor business in Washington.
On the subject of price cutting the
subcommittee'S report said:
Testimony presented at the hear
Ing established, without question
that the cutting of liquor prices is
almost universal in the District and
has become serious problem. =
Cutthroat competition creates an
unhealthy condition in that it en-
courages violations OF the law such
as selling after hours, selling to
minors and intoxicated persons, and
Objectionable advertising. I"
Whether price regulation is the
answer, the committee is not pre-
pared to say; but competition so
keen that it produces chaotic condi-
tlons and becomes ruinous to a fair
proportion of the legitimate dealers
should not be permitted to continue" !"
With that admonishment from the
subcommittee, the A. B. c. Beard
Invited proposed new regulations and
amendments to the law designed to
eliminate the evil, which, in their
judgment, was traceable to IDEALS,
rebates and kick-backs" between
retailers and wholesalers. Out of the
proposals received and the hearings
held on them, tentative regulation
designed to eliminate these abuses
was drafted. Only one member of
the board approved this regulation,
the others refusing to approve be-
cause they doubted that it would
cure the evil. The proposed regula-
ton was submitted to the Commits
sioners, however, but with the ex-
plicit statement that the Board was
expressing no opinion on the Com
missioners' authority to promulgate
It, and expressly leaving open the
question whether the remedy should
be sought through regulation or act
of Congress.
That is the beginning and the end
OF the so-called price fixing" at
tempt by the board. Instead of the
sinister and corrupt Vaccinations
which are suggested by the extraor-
dinary plan of the Antitrust Divi-
sion to investigate" the A. B. C.
Board, it appears from the record
that the members of the board have
been engaged only in a perfectly
open and necessary effort to serve
the public interest by eliminating
an obvious and fragrant evil in the
liquor business.
On the strength of this record, it
may be wondered just where the
Department of Justice stands in this
matter. And 1t may also be won
dered how long it will be before the
Antitrust Division will come for
ward openly and without equivoca-
tion in needed explanation of what
1t proposes to investigate and the
source of its authority to question
proposed regulations of the A. B. c.
Board in its control over the local
liquor business.