Evening star., 1942-02-07
Liquor Permit
Misuse Charged
ToDea|ers
Some Retailers Get
Wholesale Licenses,
Senators Told

Charges made before q Senate
Subcommittee today that some
liquor package stores in Washington
advertise as wholesalers by getting
q Federal wholesale permit, while
their local license is for retail only,
prompted Senator Clark, Democrat
of Idaho, to suggest 1t be investi-
gated.
The charge was made by Martin
r. ODonoghue, counsel for the Dis
trict Retail Liquor Dealers Associa-
ton. who appeared in favor Of the
House bill to prevent advertising Of
liquor price lists here.
He presented ads in which, he
said, some stores offer liquor by the
case as well as bottle. He said they
do it by going to the Federal Alco-
hol Control Administration and get
a tax permit to sell more than s
gallons to one person.
you have a conflict there be-
vWCC4 q 6OA1C4 "a OdA low d1lo q oAC.
cific local law" Mr.. ODonoghue
said, adding that in such cases the
principle of law should make the
specific statute paramount.
r. r. Camalier, counsel to the
Senate District Committee, brought
out by questions that dealer is
required by Federal law to put the
word wholesaler" on his window
II he takes out the Federal permit.
Tells Of Practices.
Mr.. ODonoghue also testified some
cut-rate stores advertise some
brands as "loss leaders" in the hope
Of selling the customer other sup
plies at the same time.
The subcommittee sent for Thom-
as E. Lodge, chairman of the A. B.
c. Board.
Senator Clark asked him If the
board took any cognizance OF trade
practices.
mo, sir" said Mr.. Lodge, explain
ing that the board has no power
to control prices.
Senator Clark asked who would
have Jurisdiction. Mr.. Lodge sug-
gested it might be the Federal Trade
Commission.
IF these charges are half true, 1t
Is not a healthy situation" said Sen
ator Clark.
Mr.. Lodge said the District has no
fair trade law. He testified some
distillery representatives are re-
ferred to as "hatchet men" because
they come into the District to in
duce dealers to buy merchandise be-
yond their ability to pay for it or
sell it.
That, he said, creates the neces-
sity of dumping supplies at reduced
prices.
"Distillers' Paradise"
Mr.. ODonoghue called Washing
ton "distillers paradise" because
a of the States have fair trade laws.
Senator Capper, Republican. of
Kansas called Washington wide
open city for the sale of liquor" and
asked Mr.. Lodge what the board has
done to curb its sale.
Mr.. Lodge replied he could not
agree the District is "a wide open
city" adding the dealers don't think
50, in the light of the regulations
that have been laid down to govern
their business.
P. A. Sugrue, chairman Of the
Executive Board Of the District Re-
tail Liquor Dealers Association, and
Mr.. ODonoghue. its counsel. both
declared the high per capita rate Of
liquor sold in Washington, discussed
yesterday, does not mean Washing
ton consumes that much. They de-
clared cut-rate price advertising
brings buyers in from Maryland and
Virginia.
Mr.. Lodge also pointed out that
the per capita figures are based on
sale of revenue stamps, which does
not necessarily reflect consumption
because large supplies are kept in
storage for which stamps are bought