Evening star., 1948-06-14
Letters to The Star
Concerning HI. r. H5l

Concerning H. r. 64Sl
To the Editor Of Ihs star:
The writer has always regarded The Star
with somewhat the same veneration ~ did the
child Virginia, who accepted rs unimpeachahle
anything printed in her favorite newspaper.
As president Of one Of the larger Wholesale
distributors of alcoholic beverages, the UNDER
signed read with considerable interest. the
editorial Of June TO- relative H. r. s45l.
+ am not familiar with the number Of WASH
ingtonians who became millionaires during
World War II by virtue Of having been in the
munitions business. Nor Is it possible to recall
any purveyor of alcoholic beverages who has
been fortunate enough to reach such lofty
heights since repeal unless his activities have
been considerably expanded In other CONNER
cial fields :.
During the wartime ration period, you will
recall that prices and profts were controlled
by Government agencies while taxes on income
were exceptionally high. Now, prices are low
ct both retail and wholesale levels Of distribu.
tions while profits have been proportionately
minimized.
happen to know every alcoholic beverage
licensee in this city but regret to state that
none seem to have been so fortunate as to
make q million in the industry locally even
since repeal. WALKER H. COLSTON.
To the Editor Of The Star: 4
After reading your editorial Look Out for
H. r. s45l." feel constrained to reply, II for no
other reason than to defend the good names
and regulations Of the individuals with whom
am acquainted and who are engaged in the
sale at retail Of alcoholic beverages.
Among the approximately 100 retail dealers
RY~ ~svAA l~. ~k>NV ,
II you can name one person who became q
millionaire through engaging in the retail
liquor business
AS for the fair trade objections raised in your
editorial, permit me to inform you that fair
trade acts are expressly legalized in a States
In addition four States Illinois, California, New
Jersey and New York have legislation similar
to that proposed in H. r. 645l These States
have found that such legislation has resulted
in widespread satisfaction and goodwill be-
tween industry and the public.
I quote from the New York State LIQUOR
Authority's report to the State Legislature for
1s47:
After hostilitiss ceased and as the impact
Of increased supplies became effective, the
authority's surveys indicated the existance Of
conditions similar to those preceding the price
war episode during the late '30s' .. During
June, 1s47. the authority finally drew, adopted
and promulgated its rule 26 which relates to
Mandatory Fair Trade Contracts 's the rule
is calculated to foster and promote temperance
and to provide for more orderly distribution
Of alcoholic beverages" And again: q" . results
up to the end of 1947 have been in general sat.
isfactory and encouraging"
Your editorial states that the price Of LIQUOR
would be upped. If you mean by that alcoholic
beverages which today are being sold below
cost. you are right. But believe 1t is 4 main
spring Of our free enterprise system that one
engaged in business is entitled to at least 4
small profit over the cost Of production. But
II you mean that merchandise which is in fair
and open competition with similar merchandise
will be raised in price, you are mistaken.
especially in the whiskey business, which Is 50
highly competitive. If producer K were to set
minimum resale price at price higher than
the price set by producer Y, producer K would
soon be out OF business. So, of necessity, the
price must be kept low.
In, conclusion think It can be safely stated
that the prices that would be established under
fair trade and which would prevail in al retail
liquor stores would result IN per capita say
ings in expenditures by persons in the District
for alcoholic beverages.
HnL1ARD ,sCHULBERG.