Evening star., 1942-07-14
Commissioners
Ask Stricter
Liquor Rules
Number Of Changes
Will Be Aired at
Hearing July 80
Nv DON 8. WARREN.

BY DON s. WARREN.
Strict control over discounts and
other deals between manufacturers
and wholesalers and retailers and
new structures on other liquor trade
practices were proposed today by the
Commissioners and the Alcoholic
Control Board.
A score of changes in regulations
and half dozen proposed changes
In the District Liquor Law Act we're
for a formal public hear
ing at 10 am. July 30 in the board.
room Of the District Building.
About $500 copies of the pro-
posals are being mailed out today
to licensees. various citizens groups,
members Of congressional commit
tees, the Board of Trade and other
business groups. The set OF new
rules was developed as result OF
an investigation made last year by
House committee into the Dis
trict liquor control situation.
Suggestions Not Adopted.
In making public the new pro-
posals, Thomas E. Lodge. chairman
Of the ABC Board, emphasized that
neither tina. board nor the Com
missioners nave adopted any Of the
suggestions and that action would
be withheld until after the hear
ings.
Aside from the proposed schedule
OF discounts to be permitted to be
given licensed retailers. which is in
tended to stop the liquor price
war" some of the proposals deal
with the intent of the original liquor
act to prevent anything approach
ing the ole tied house" situation of
e-prohlbition days. To strengthen
this objective Of keeping the retailer
free OF domination by the whole
saler or manufacturer. the District
off1cials who drafted the new rules
have suggested one which would
prevent an attorney. or other per-
son from representing any retailer
while at the same time serving q
wholesaler OF manufacturer.
The exact language of this pro-
posed regulation is: mo attorney or
any other person in any way con-
nected with or employed by whole
saler or manufacturer of alcoholic
beverages shall appear before the
ABC Board representing any retail
licensee or any applicant for . re-
tail license"
In the past some attorneys more
or less regularly employed by .
wholesaler or manufacturer also
have made frequent appearances be =
fore the ABC Board to handle the
cases Of retailers or applicants for
retail permits.
Exact Accounting.
Another proposed new rule related
to the question of the tiled house"
Is one which requires every manu-
facturer and wholesaler licensed un-
der the District law to maintain an
exact accounting of every article
sold, given. rented or loaned to q
wholesaler or retailer.
Along the same line it is proposed
that every manufacturer or whole
saler licensed by the District Tor
the licensed solicitor in the case of
nonresident firm) must submit an
af1davit by the 10th day Of each
month showing all salaries, commits
sions, expenses, allowances. gifts
and all other things of value al
lowed or given to each of their stock
holders. officers, directors. solicit-
ors or other employees or repre-
sentatives who contact directly or
indirectly the retailers to whom they
sell alcoholic beverages"
1t was said the objective of such
a rule would be to prevent the agent
for some brand of beverages leaving
large gratuities for the bartender
at retail place with the idea Of
having him push" the sale of his
brand Of goods.
Ban on LOSS Leader"
District officials also proposed a
rule intended to stop the use of the
loss leader" as means Of promot-
ing business of the place generally.
1t was said that to meet "cut-rate"
competition, retailers at times sell
a brand below cost, and below COM
petitors' prices. as means of get
ting or keeping trade in that store.
This rule reads: mo retailer shall
sell or offer for sale any alcoholic
beverage at price less than the
actual cost thereof as per price list
and discount statements on file with
the Alcoholic Beverage Control
Board at the time of purchase by
said retailer thereof"
The limitation on discounts would
forbid any manufacturer, whole
saler or solicitor to sell, or any re-
taller to buy beverage goods except
in keeping with discounts computed
on the basis of complete price lists
filed with the ABC Board.
Discount Regulations.
The proposed discount rules are
as follows:
In the case of purchase OF less
than one case, no discount; pur-
chase of one to four cases. inclu-
sive. a per cent discount is per-
mitted: purchase of five to nine
cases, inclusive, discount of 2 per
cent is permitted; purchase of 10
to "a cases, inclusive, 3 per cent
discount, and purchase of Is or
more cases discount of per cent.
The rule provides that no retailer
may make returns of alcoholic bev-
erages, and no manufacturer, whole-
saler or solicitor shall accept such
returns of goods when designed to
circumvent or which may result in
the circumvention of the discount
schedules.
The rule says that no manufac-
turer, wholesaler or solicitor shall
discriminate in price. directly or in
directly between different retailers.