Evening star., 1943-07-08
No-Credit Liquor
Rule Indorsed
If Price Is Cut
OPA Sees No Conflict
In Bill Discount Plan
, Unless Increase Results

ShlSSS I1$tSOSS NSSuIlS
John L. Laskey, chief counsel for
the District OPA, today advised the
Commissioners that their proposed
no-credit rule on sales between
liquor wholesalers and retailers
Would be in conflict with the price
control program unless there was a
corresponding" decrease in price.
Mr.. Laskey further said he could
see no conflict with the price con-
troll program in suggested rule
fixing the amount of discounts on
bills from wholesalers to retailers,
unless a price increase resulted.
Earlier the Commissioners had
been advised that the discount plan
had to be dropped because Of OPA
objections.
Hearing Is Ended.
Mr.. Laskey's statements came at
the end of a public hearing called
bv the Commissioners on their no.
credit rule which is to become effec-
tive July 10 unless rescinded or
modified.
Numerous spokesmen for the
LIQUOR industry protested adoption OF
the no-credit plan.
Nearly 100 retailers. wholesalers
end representatives Of hotels ana
restaurants attended the hearing
and divergent views as to the rea-
sons for banning credit and the
effects of such a rule were voiced.
At one point, Commissioner Guy
Mason engaged in sharp exchange
with Manuel J. Davis, representing
q number of licensees, who main
tanned a no-credit rule would prove
a burden to the retailers.
Mason Interrupts Argument.
Mr.. Mason broke into his argu-
ments to declare:
There is no use kidding your
selves-you are not kidding US
He added that the general prac-
tice was for distillers to sell adver-
tised brands for one price and to
distribute liquors made from the
same mash at cheaper price under
different brand names.
Mr.. Davis had contended credit
arrangements possible under past
rules had made possible cheaper
prices for alcoholic beverages here
than in neighboring areas. This
view was challenged by Mr.. Mason.
Among those opposing the pro-
posed rule were John H. Melrose,
chairman OF the Alcoholic Beverage
COMMITTEES of the Washington Res
taurant Association; Harry Wech-
sler, president of the Retail Liquor
Dealers Association: Joseph c. Nc
Garraghy, representing the wash
ington Hotel Association. and George
S. Jones, yep, esenting several Wash
ington restaurants.
Brewers Support Rule.
Support fcl the no-credit rule
came from Wash B. Williams, rep
resenting the District Brewers AS
sociation; George Hooker, the
Brewers Association of Maryland
and the District, and P. A. Sugrue,
past president of the retailers asso-
citation, who spoke as an individual.
Proponents said that since retail
ers receive cash for their sales, they
could see no reason why the retailer
could not pay cash to the wholesaler.
When opponents pressed for SPECIFIC
reasons for ban on credit. Com
missioner Mason declared it was Of
fered to prevent "tied-holrse condl-
tions," meaning control of retailers
bv wholesalers or manufacturers.
He said there were known instances
in which retailers with small real
credit had beer given very heavy
credit by wholesalers.
Mr. Wechsler said all the oas-
tardly things" in the liquor business
would be wiped out if instead of
mere credit ban the Commissioners
adopted a stated graduated rule on
discounts. with a top limit OF 4 per
cent discount.
Hotel and restaurant spokesmen
protested the no-credit rule would
cause grave inconvenience in their
accounting for payment of supplies.
and it was argued that lnconven-
fence would be caused by the fact
deliveries are "unpredictable' during
war conditions.