Evening star., 1950-03-27
Floor on Prices
For Liquor Hit
AtUnit HearinQ
Wholesalers, Dealers
Defend Bill Against
Hotel Opposition
By Harold B. ROGERS

oy 7oroIo D. Rogers
Sharp conflict broke out before
a House subcommittee today over
legislation to establish voluntary
control of liquor prices here.
The measure was strongly sup
ported by spokesmen for distil-
lers, wholesalers and District re-
tailers. They claimed it was
needed for the benefit of their in
dustry and the public to eliminate
predatory price cutting.
The Alcoholic Beverage Control
Board through it's chairman. Alan
w. Payne, attacked the measure
charging that price controls would
result in unreasonable increased
price to consumers.
Hotel Owners Oppose Plan.
The Hotel Association of WASH
ington. representing 80 members.
filed statement by it's executive
secretary. Bourbon Dawes. oppos-
ing any form of legislation which
fixes prices, stiles competition
and runs counter to the free-en-
terprise system under which this
country has had its economic
growth"
Proponents of the measure oc-
cupied virtually all of the morn
ing session and were followed only
briefly by the opponents.
Chairman Harris of the House
District Judiciary Subcommittee
announced that the hearing will
be resumed at later date to be
fixed for the convenience of all.
Throughout the controversy.
opinion differed generally be-
tween proponents who claimed
that prices would not be increased
and opponents who insisted they
would.
Similar Bill Beaten.
A similar bill reached the floor
of the House in the 80th Congress,
but failed to pass after opposition
by Representative Crawford Re-
publican. of Michigan. 1t was a
mandatory fair trade practice bill
placing authority in the hands of
the ABC Board. The pending
introduced by Chairman
Mcmillan of the House District
Committee, was described by Hill
lard Schulberg. executive director
of the Retail Liquor Dealers As
sociation, Inc, as intended ito
affect only the sale of packaged
goods for off-premises consump-
ton"
He said it was a voluntary or
permissive bill which would insure
fair-tra practices and fair COM
petition in the alcoholic beverage
industry" 1t would empower the
producer or distributor, tie wit
ness said, "to protest his brand
name or his trademark by enter
ing into contracts with retailers
not to resell such products below
the resale price set forth IN the
contract"
Urging passage of the measure,
Mr.. Schulberg charged that ruin
Gus cut-throat competition exists
in the Districl today, perhaps
even more vicious than in the
past He repo led that in tie
past few weeks there hao been
bankruptcy of ne retailer and
announcement that a large whole
saler was closins.
Questioned by Members.
Like other witnesses for the bill.
he claimed the District should
follow the example of As States
that have some form of fair trade
legislation.
Mr.. Schulberg was questioned
at length by committee members.
Pressed to explain why the bill
was needed he charged that cut
rate stores were selling some
products far below cost to draw
customers into the store. Such
stores, he charged. then en-
deavored to sell other goods at
higher prices to make up for their
losses. He showed the committee
some advertisements of Chilean
wine-one of which offered a bot
tie at 9 cents during restricted
hours.
The wine probably regularly was
selling at about so cents, he said.
Milton S. Kronheim, wholesaler.
testifying for the bill, told tho
committee he thought most whole
salers in the city would sign con-
tracts for the minimum price
authorized by the bill. He said
that if a retailer would not sign
the contract under the new bill
for minimum prices, he would "be
at a distinct disadvantage"