Evening star., 1944-01-20
Retailers Back
Plan 10 Tighten
Liquor Control
Vigorously Oppose
Proposal to Bon
Soles on Credit

The Retail Liquor Association at
= public hearing today backed the
proposals of the Alcoholic Beverage
Control Board to tighten its control
over the local liquor industry but
vigorously opposed q proposal to
ban credit sales between wholesalers
and retailers.
Representatives of the whole
salers, however, were split over the
credit ban. Milford Schwartz Of the
Wholesale Liquor Dealers Associa-
ton upheld the ban on the ground
it would benefit the wholesalers to
sell on a cash basis, while Milton
S. Kronheim, chairman of the
Executive Committee of the Bev-
erage Industry Committee, declared
that he saw no evil in credit
1T is felt that credit in itself Is
not an evil but a boon to business
and, when legitimately used, has as
sound place in the relationship
between wholesalers and retailers in
the beverage business as between
wholesalers and retailers as in any
other business" declared Mr.. Kron-
helm
Retailers Want Credit.
Harry C.. WechSler, president of
the Retail Dealers Association, de-
clared that the retailers want credit
and argued that if the retailers were
to be subjected to cash basis the
wholesalers should be made to pay
cash to the distillers.
I'VE are businessmen" Mr..
Wechsler said. 1T is no different
with us than in any other business.
We want our credit. 1t is some
thing a man builds up with great
care"
Joining with Mr.. Weschler in his
opposition to the credit ban were
Joseph c. McGarraghy, attorney for
the Washington Hotel Association;
Robert j. Wilson, secretary of the
Washington Restaurant Association,
and Leo A. Rover, attorney for
Clarks, Inc. Mr.. McGarraghy and
Mr.. Wilson argued that the ban on
credit would upset the usual business
practices of hotels and restaurants
and handicap proper checking of
goods and auditing.
Highlights Of Proposed Rules.
The highlights of the proposed
new regulations to the ABC regula-
tions backed by the Retail Liquor
Dealers Association are as follows:
Prohibition of tie-in sales between
wholesaler and retailer and retailer
and consumer: requirements that
wholesalers report receipt of whisky
into their warehouses to the ABS
Board and report sales of the
whisky: requirement that off sale,
and package stores place 4 per cent
of their whisky on their shelves. and
that retailers report to the board the
sale of more than IL bottles of spirits
to any one customer
Chairman Thomas E. Lodge of
the ABC board said the general
purpose of the proposed regulations
was to discourage sales to boot
leggers and give the board more COM
plete information on whisky i'm
ports into the District and to give
better picture of its distribution.
Mr.. Lodge explained that the re-
quirement to display whisky on the
shelves was to meet public demand
and he said that he thought the
4 per cent proposal was the best
method of bringing whisky out from
behind the counters and the back
Storerooms of retail stores.
Indorses ~ Display.
Martin F. ODonoghue, attorney
for the retail association. said his
organization felt the per cent pro-
posal was "a good STEP" and linked
with his approval charge that
a lot of retailers downtown are
getting national brands of whisky
and selling it in case lots"
He said that if there could be
a better distribution to outlying
stores I'VE would favor putting it
on the shelf"
Mr.. Kronheim said there was IAN
acute shortage Of whisky available"
and that mo regulations which the
commissioners might adopt and no
reforms which the licensees might
voluntarily enact can remedy this
shortage"
Much of the material covered in
the pending proposals is already
covered in existing laws or regula-
tons covering the alcoholic beverage
business. Compliance with these
regulations, therefore, imposes no
new tasks or obligations on the
licensees. On the other hand, it is
doubtful that additions of such reg
ulations to the local ABC. regula-
tions will materially alter the situa-
tion in which the trade finds itself.
Nevertheless, the licensees are ready,
willing and eager for the District
Commissioners to adopt any regula-
tions which the Commissioners feel
will relieve all of the unjust criti-
ricp, which hoe hoor p,oJoD