Evening star., 1942-10-02
Briefs Awaited
On Changes in
Liquor Code
Issues Include
Plon to Strengthen
!. Tied House. Ban

:. lieu I1OuS6 Dun
Decisions on "a proposed changes
In the.District liquor law and regula-
tions, considered at public hearing
yesterday, will be postponed for two
weeks by the Commissioners, to
permit interested parties to file
briefs on debated issues.
1t was announced that neither the
Alcoholic Beverage Control Board
nor the Commissioners as yet spon-
sored the proposals, but rather that
the changes, designed to clarity or
strengthen present control meas
ures, were suggested by committee
Including Commissioner Mason,
Thomas E. Lodge, ABC Board chair
man. and Vernon E. West. principal
assistant corporation counsel.
Near the close of the hearing yes
terday, considerable interest was
aroused over three proposed new
regulations, which involved some
personal debate; but generally, ex-
cept Tor an earlier question of
censorship by the ABC Board over
liquor advertising, there was little
comment OF but minor objection to
Other proposed rule revisions.
kronheim Hits Proposal.
Milton S. Kronheim, ST.. LIQUOR
wholesaler, who organized a group
OF retailers and wholesalers into the
Beverage Industry Committee, was
brought into the picture with dis
cussloA over a proposed rule which
would forbid attorneys or other per-
sons connected with or employed bv
wholesaler or manufacturer from
appearing before the board to rep
resent any retailer or applicant for
retailer license.
Mr.. kronheim declared the Com
mlssloners would be going rather
lar afield to regulate the practice of
la" II the rule were adopted. Call
Ing 1t ridiculous proposal" he
suggested that the city heads hold
the question in allegiance until at
torneys who have practiced before
the board, who now are with the
armed forces, return to civil life.
commissioner Mason, who is a
lawyer, interposed a question as to
why Mr.. Kronheim, a Wholesaler
should defend lawyers. Mr.. Kron-
helm answered he was thinking of
two men. who had been EMPLOYED
by him, his son, Milton, ir., and F.
Joseph Donohue.
Mr.. Kronheim added that he
thought the rule was directed
particularly at one of his ATTORNEYS
and said he thought it only ia ir"
that decision be withheld until his
attorneys had an opportunity to
present their views ION the practice
OF law by officials of the Govern
ment."
Would Limit Discount.
Various opinions were provoked
over discussion of several proposed
rules to strengthen the bans against
"tled-house' conditions, wherein.
during pre-prohibition days, at least.
wholesalers or manufacturers were
enabled to "tie" retailers to them
to push their products, by various
means.
The proposed rules would estab-
llsh limits on discounts, between
and per cent. for purchases of be-
tween four cases and top bracket
OF rs or more cases; would require
manufacturers, wholesalers and
solicitors to register with the ABC
Board their complete price lists:
make such lists open to public in
spection; forbid any deviation from
such listed prices; forbid discrimina-
tions or secret rebates and forbid
use Of the loss leader" selling plan.
P. A. Sugrue, president of the Dis
trict of Columbia Liquor Dealers
Association, said his group voiced an
Amen" to such proposals, and Mr..
Kronheim, speaking for the Bever-
age Industry Committee, said I'm
for it, but added that there were
many difficulties involved" and he
suggested some different arrange
ment, Direct opposition came from
Leslie C. Garnett, former United
States attorney, who with Leo A.
Rover. also former United States
attorney, represented Clark's. Inc.
Control Seen as Essential.
Mr.. Sugrue declared that real
control" was necessary to handle
such situations and he asserted that
mo pledge and no promise" from
the industry would be sufficient. In
this business" he said, you can't
trust anybody" AS proof of his
argument he recited that wholesaler
'fhatchetmen" who would swear by
all that's good and holy that the
offer they made was the one and
only, but that within a few hours
he would find out that the same men
were making a half dozen different
offers.
Mr.. Kronheim argued that the
regulation would have the effect of
fixing prices" and that it would
raise prices through curtailment of
discounts. 1t had been stated that
his firm now grants discounts as
high as Is per cent
He insisted that the past diff
culties" were not due to normal
discounts on either small or large
orders. but arise from "eXorbitant
discounts on large volume" He
maintained that if the regulation
set a maximum discount on rela-
lively small amount--"a buy within
the scope of about every dealer
1t probably would solve the problem
New U.boat Patrol Craft
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