Evening star., 1955-02-18
Justice Probes
Liquor Boycott
In Montgomery
Possible Violations
Of Anti Trust Law
Seen by Barnes
By chorIes [. Hoffmon


Boycott of the Montgomery
County liquor dispensary system
by eight major distillers is under
investigation in the Justice De.
partment.
Assistant Attorney General
Stanley N. Barnes last night
disclosed the antitrust division
Is studying the situation tfrom
the standpoint of possible viola
tions Of antitrust laws" Mr..
Barnes heads the division.
Disclosed by Irelan.
Montgomery County Attorney
Charles M. Irelan disclosed
Tuesday that eight distillers had
refused to continue to sell di-
rectly to the county's 81 million-
a-year dispensary system.
Montgomery, as the only
county member of the National
Alcoholic Beverage Control As
sociation which includes II
States operating monopoly sys-'
TENS. for several years has been
permitted to purchase directly
from distillers at as low price
offered by them to wholesalers.
Walter w. Mitchell, executive
secretary of the association, yes
terday confirmed the other
States are concerned over the
boycott.
Industry Gin Middle"
Persons close to the distilling
industry admit they are un-
happy about the situation and
the publicity it has created.
A spokesman within the IN.
dustry contended the distillers
are caught in the middle and are
being pressured by retailers and
probably by wholesalers, who
are more influential" into CUT
ting off Montgomery County.
Retail and wholesale dealers
associations both contend the
action stems from a retailers
revolt"
John A. Mention, executive
secretary of the Maryland State
Licensed Beverage Association.
alleges that Montgomery County
Is underselling all retail dealers
in the State because it is selling
below fair trade prices.
Fears Setup May Spread.
The beverage association
spokesman made 1t clear that
Montgomery County's successful
financial operation of its dis
pensary system-it makes about
$750,000 a year for the county
treasury-may stimulate other
counties to establish monopoly
setups."
Mr.. Mention said retail deal
ers in Frederick and Prince
Georges County were feeling the
pinch from Montgomery's op-
Grafton hardest. He added how
ever, even Baltimore dealers
were losing business to Mont
gomery.
Alcoholic beverage consump-
ton statistics, however, indicate
that Montgomery residents buy
less liquor per capita in the
county than those in other coun-
ties Of the state and the per
capita consumption is well below
the national average.
Purchases in d. C. Seen.
An industry spokesman con-
ceded this probably is caused by
the large quantity Of liquor pur-
chased in Washington, at lower
rates in many instances, and
transported into Montgomery
County.
Mr.. Mention feels the county
Is violating fair trade laws and
that distillers who sell directly
to the county at lower rates than
retailers can get, are acting
contrary to State law.
Retailers to Get Chart.
The retailers since last fall
have been carrying on a cam
paign Ito evaluate" each distil.
ler's policy in regard to Mont
gomery. The evaluation chart
was to be mailed to all retailers
today.
I. William Schimmel, executive
secretary of the Institute Of Wine
and Spirit Distributors, blasted
the county's system as being
in business to make money
(when) they should be attempts
ing to control moderation"
A campaign has been UNDER
way in the county to get State
legislation to permit some res
taurants and taverns to serve
liquor by the drink. No pouring"
licenses are held except by nine
county clubs and three res
b.