Evening star., 1952-06-25
CheIf Group Takes
Recess 10 Attend
Session on Controls
By George Beveridae

House investigators, after hear
ing complaints against major
whisky producers. today took a
one-day recess in their probe of
how well the Justice Department
has watched the liquor industry
Tor possible antitrust violations.
Chairman Chelf interrupted
hearings Of his Judiciary subcom-
mittee so members could attend
an unusual morning session of the
House. Key votes were expected
In the House on the controls bill.
The break poses a problem for
the subcommittee. with witnesses
scheduled throughout the week.
However. Mr.. Chelf said the group
still hopes to finish by Friday.
possibly holding late sessions dur
ing the next two days.
Testimony yesterday came from
small distillerS and cooperS (mak-
erS Of barrels in which whisky isl
Rged), who primarily listed bus
ineSS problems they have had
since the war. Largely, they
blamed their troubles on expanded
operations by the industry's Big
Four - Schenley, Seagram, Ma
tional and Hiram Walker.
Industry Probe at Issue.
The inquiry is on whether the
Justice Departments ANTITRUST |
division. in 1948 and 1949, wasI
justified in failing to make an
'all-out investigation of the in
dustry. At least two division at
torneys urged such a probe. A
full-scale inquiry was decided
against after a limited survey
was made within the Government.
The obvious purpose of the
testimony yesterday was an at
tempt to show that complaints
against the Big Four could have
been found, if independence in
the industry had been questioned.
"A department report to the sub
committee on the 1949 survey
indicated no complaints had been
received.
One witness said he was un-
able to get insurance on his LIQUOR
warehouses near Louisville, XIV.
IN 1947. because Schenley already
had the buildings "blanketed with
half a million dollars" in insur-
ance. At the time, however.
Schenley had no stock in his
warehouses, he said.
Julian P. Van Wrinkle, president
of the Stitzel Weller Distillery
Co., said he learned of the in
surance situation from New York
insurance broker he hired.
Insurance Limited.
He said he was told insurance
companies would carry only a
certain limit of fire insurance
The Schenley policy. he said, was
"a reporting type" He said this
meant the policy-holder would
pay at the end of each month.
according to how much stock was
IN the houses. Since Schenley had
no stock to report, he said, it
paid nothing.
I'VE had trouble getting them
to take the blanket off," Mr.. Van
Wrinkle said. He never did explain
how the situation ended, but
added that he had been Every
friendly" with Schenley repre-
sentatives.
Asked the reason for Schenley's
action, Mr.. Van Winkle comment
ed: "Skullduggery somewhere, but
I don't know just where"
Later, a Schenley representa-
tive told Mr.. Chelf the situation
could be explained satisfactorily,
and the chairman said officials of
the firm would be asked about it.
Another time, during the war,
Mr.. Van Winkle said he was told
he could get barrels from a COOP
erage taken over by National Dis
tillers only if he gave up half
of our grain allotment" He said
he refused.
Fight to Survive.
Officials of the Kimball- Tyler
Co., a Baltimore cooperage plant,
said their barrel business, in ex-
iStence since 1884, was having to
flight to survive" They said that
since major distillerS took over
cooperages during the war, there
are only two large independent
barrel firms still operating.
Joseph Kunz. president Of Local
81. Coopers International Union
A