Evening star., 1952-06-24
Small Firms Voice
Complaints Against
Big -Four Dlsti|Iers
BY George Beveridse

L
A House subcommittee investi
lgating the Justice Department
turned to-day to complaints from
small businessmen in the lique
industry against the practices O
a limited number Of large, pow
erful competitors.
The complaints tie in clesel,
with an inquiry as to whether tn,
Justice Department was justified
three years ago, in deciding
against an all=aut probe of pos.
sihle antitrust violations Withir
the rich industry.
The subcommittee, headed b,
Representative Ghelf, Democrat
|ef Kentucky, scheduled testimony
for 1:ae pm, after a stormy
opening session in which charges
and counter-charges few freely
among present and past officials
Of the departments ANTITRUST di-
vision.
Charges !"Whitewash" Effert.
At the center was Ernest L.
Branham, Justice antitrust
lawyer, who charged that his su-
periors last month tried to
"whitewash" activities in the liq-
uer industry: He applied that
term to a department report sent
to the Chelf committee on the
1948=9 survey. He said he was
intimidated when he refused to
go along with it.
The report said the industry
was "heavily concentrated" in feul
big firms. But it found no evil
denee of "epnsniraey or eellusior
ameng them" Further inyesti-
cation was considered, but nc
actien was taken. it said.
Subcommittee officials said to-
days witnesses would include in
dependent distillers and producers
of cooperage - the barrels in
which straight whisky must be
aged, Their complaints, aides said,
will center around practices of
the industry's Big Four-Schenley
Seagram's, National Distillers and
Hiram Walker.
The group heard testimony
yesterday that 4a per cent of the
Nations independent distillers
have gone out of business during
the last II years, while the Big
Four have shown tremendous ex-
pansion in assets and amounts of
liquor marketed.
Says Probe Was Resisted.
But the fireworks involved the
persistent attempts MIR. Rranham
said he has made to get an ex-
tensive grand jury probe of the
Big -Four. The closest he came, he
said, was in 1948, when the con-
troversial survey was made within
the Department to determine if
an all-out probe should be ordered.
Former Assistant Attorney Gen
eral Herbert Bergson. in charge of
the Antitrust Division at that
time, struck back at Mr.. Bran
ham in a prepared statement. He
attempted to testify yesterday but
was told he could net be heard
until Friday.
In other highlights:
!. Edward P. Hodges, in a
heated exchange with Chairman
chelf, also was denied, until Fri
lay, q request to refute state
neHts by Mr.. Rranham. MIR.
Hodges. a top-level Antitrust Di-
vision official. handled the men,
orandum to the subcommittee
that Mr.. Branham said was "a
whitewash."
Group Called on Carpet.
2. MIR. Branham said he was
old by Mr.. Rergson, in April,
l949. to ''go easy on the liquor
people," after Mr.. Branham called
group Of District liquor dealers
On the carpet for what he termed
price fixing in advertisements.
Mr. Branham said he assumed
Mr. Befgsen was referring to the
District dealers,
3. Chalmers Hamill, Mr.. Bran
lam's superior in the Antitrust
Divisions Small Business Unit,
laid his unit did VERY little" in
that particular field" after Mr.,
srahham reported the "go easy"
statement five years ago.
Mr.. Bergson, in his statement,
'aid he had called Mr.. Branham
TO task, after he heard Mr.. Bran
nam had threatened q group of
District dealers with imprison-
nent, if they did not abandon
cooperative advertising" He said
Mr.. Branham did not deny the
Incident" and added:
II should have discharged him
1t that time"
Hits 'Unmitigated Falsehood'
Mr.. Branham said it was an
'unmitigated falsehood" that he
had not denied the alleged threat
II imprisonment. He said he Of
Eered to confront, in Mr.. Bergson's
any persons who said he
had threatened them.
Mr.. Branham said the adver-
involved stores he iden-
tified as in the Thrifty, Value and
Key groups, The advertise
nents, he said, listed prices to