Evening star., 1944-01-21
Officials Defend
0PA Action in
kronheinl Case
Thompson, Loskey
Claim Full Powers
To Assess Penalty

10 Assess Penalty
Robert K. Thompson, director, ana
John L. Laskey, enforcement attor-
ney of the District OPA, today de-
Tended the settlement effected by
their Office in the case against Mil
ton S. Kronheim & Son, Inc, liquor
wholesalers. after the Van Nuys
Liquor Investigating Committee of
the Senate yesterday attacked the
100000 out-of-court fine levied
against the firm for price ceiling
violations.
The Senate committee ordered the
OPA to produce the entire record
OF the case in an effort to determine
why the OPA did not refer case
OF this magnitude to the Justice
Department for possible criminal
proceedings.
THE settlement was our settle
ment," Mr.. Thompson said. TT was
made after authority to complete it
had been duly delegated to U.S."
Both officials pointed out that the
Kronheim investigation was con-
Quoted by the District Office, which
also negotiated the terms of the
settlement.
Willing to Justify Action.
I'VE think it is good settlement"
Mr.. Lasky said, land we are willing
to Justify it and assume full re-
sponsibility for it anywhere and at
any time"
Mr.. Laskey said his Office has not
reSorted to criminal proceedings be-
cause it was an OPA policy to obtain
compliance with price and ration
ing regulations by negotiation
wherever possible and to 60 to court
only when the violations were will
full and fragrant. The regulation
which the Kronheim firm allegedly
violated, he said. has since been
changed as it affects the liquor in
dustry.
| Harold Epstein, chief of enforce
ment in the agricultural products
branch of OPA. appearing as wit
ness before the Nan Nuys commit
tee yesterday, said the OPA decided
what cases were to be referred to
the Justice Department and that
it had not chosen to take this
course in the Kronheim case.
Sees Criminal Questions.
Senator Wherry, Republican, OF
Nebraska said he could not under
stand why the OPA had not re-
ferred to the Justice Department
case which had criminal questions
sticking out all over it"
Senator Wherry said the Justice
Department should have been con-
suited about additional proceedings
and Senator Ferguson, Republican,
of Michigan wondered why "the
$500, 900 case was not submitted to
jury
We've got to put some OF these
boys behind bars to stop violations
instead of letting them off with
settlements and fines" Senator
Wherry said
! Senator Ferguson commented
that much criticism is heard about
bootlegging and other activities
land yet we find the Government
making settlements"
Are there any violations by liquor
monopoly States?" Senator Fergu.
son asked.
Charges Michigan Violation.
Yes, Senator" Mr. Epstein said
with a smile, lin the State of Mich
igan. Our information is that desig-
mated distributors have been asked
by the State to purchase gin, brandy,
rum. etc, to get whisky, which is
contrary to regulations
Certainly we're not desirous,
though, of bringing any formal pro-
ceedings against State; we prefer
to make an adjustment"
Senator Ferguson countered with,
Now you're coming back to that
old settlement thing again."
DO you play favors with State?"
the Michigan Senator asked.
No, We don't" Mr.. Epstein said.
But in this case I have instructed
the District Office to take up the
matter with the proper State Off
cials."
The OPA representative was also
criticized by members of the commit
tee for not having made cases against
dealers for insisting customers buy
certain quantities of wines and
other beverages if they were to be
sold bourbon or other whiskies.
Says Agency Is Handicapped.
| Mr.. Epstein agreed that such
"tie-in' sales practices we're in vio-
latlon of OPA rules but he said the
Federal agency was handicapped by
the statutes preventing the use Of
OPA funds for purchase of "evi-
dence."
Senator Ferguson interjected that
it appeared this statutory evidence
purchasing limitation was very
easy" alibi. but Mr.. Epstein denied
this was his meaning, explaining
that 1t takes time for an investigator
to make a report and that the OPA
staff was limited in size. in view of
the many subjects it is supposed to
cover.
At this point Judiciary Commit
tee Chairman Van Nuys and Sena-
tors Ferguson and Wherry voiced
the thought that 'tie-in" sales
practices were more or less preva-
lent over the country and it should
not be difficult for an aggressive
OPA agent to make a case.
| Senator Wherry suggested that it
might be we'll to take some investi-
gators off pork" and to get some
evidence about 'tie-in' sales.