Evening star., 1950-06-05
Wholesalers
.0pposeCurbs
ABC Proposals Would
Roise Prices, They
Tell City Chiefs

Tell Lily liners
Two new regulations proposed
by the Alcoholic Beverage Control
Board would result in higher
liquor prices to the public, repre-
of wholesale liquor
dealers told the Commissioners
today.
The regulations. subject to q
public hearing before the COM
would prohibit liquor
stores from advertising a loss
item advertised at
less than the cost to induce custo-
mers into the store. They also
would ban discounts by manu-
facturers or wholesalers TO the
retailers.
The possibility Of an increase in
liquor prices was pointed out by
F. Joseph Donohue. representing
Milton S. Kronheim and Son. Inc.
wholesale liquor dealer. Mr.. Dono-
hue opposed the two regulations.
Il can't conceive that prohibi-
tion against discounts will have
any result but the increase Of
prices" he declared.
Opposed by Wholesalers.
Opposition to the regulations
also was expressed by Milford F.
Schwartz, representing the WASH
ington wholesale liquor dealers.
THE end result would be that
the large operator would put in a
large supply when the price of
the merchandise had been re-
duced." he stated. This proposed
regulation does not assure the
small retailer of his ability to like
wise stock up when the price Is
down"
Mr.. Schwartz said the regulation
could not be enforced. adding:
Our experience has been that
laws or regulations that prohibit
acts not in themselves immoral or
wrong make potential law violators
out of otherwise law-abiding citi-
zens. The Prohibition Act was an
example of such legislation.
Alan Payne, chairman OF the
ABC board. explained the regula-
tions which the board has pro-
posed.
Eight persons appeared to OPP
pose the regulations. The only
person backing Mr.. Payne was j.
E. Binderman, representing the
Value Liquor Stores which COM
prises l8 concerns. Mr.. Binder
man favored elimination OF loss
leader" advertising but expressed
no opinion on the proposal to
eliminate discounts.
Would Ban All Price Ads.
Another witness, Hilliard Schulz
berg. executive director OF the
Washington Retail Liquor Dealers
Association, said his association
recommended that all price ad-
vertising by retailers be banned.
saying that prohibition only Of
loss leader advertising would ban
nothing. His association favors a
bill now before the House Dis
trict Committee which would pro-
vide voluntary control OF liquor
prices and virtually outlaw cut
rate selling of standard brands.
Meanwhile, the House District
Committee postponed considera-
ton of that bill. The measure has
been approved by the District Ju-
dietary subcommittee.
Chairman Mcmillan, Of the
District Committee, said the post.
ponement was due to the absence
of Representative Harris. Demo-
crat, of Arkansas, chairman Of
the Judiciary Subcommittee.
Restaurants, Hotels Opposed.
Peter Borras of the Washington
Restaurant Association, and Bour-
bon A. Dawes of the Washing
ton Hotel Association. also OPP
posed the two District regulations
before the Commissioners.
Mr.. Dawes said that discounts
are accepted business practices
and to eliminate them would in
evitably mean higher prices. He
said the beverage business in ho-
tells was from Is to 40 per cent
under that Of l945 and still de-
clining.
1--WE want more customers, not
higher prices" he declared.
Mr.. Borras said the restaurant
business also was of and that any
further increases in prices would
be disastrous. He too testified
that elimination Of discounts
would cause higher prices.
The other witnesses opposing
the regulations were Elmer Rich
ter. Of the Restaurant Beverage
Association. and John Fitzpatrick.
representing Forman Brothers,
Inc, wholesale liquor dealer.
Mr.. Payne. in explaining the
purpose of the regulations, said
they would bring about more
stabilized conditions In the alcoho-
lie business here and benefit the
public. He said he felt neither
regulation would cause an in
crease in prices.