Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-02-05
Cheaper Sales
In D. 6. Lead
To Protests
BY PAUL HOPE
Star Staff Writer

Maryland Controller Louis l..
Goldstein recommended today
that the Federal Trade Com
mission and Congress look into
the price differential between
liquor sold in the District of
Columbia and Maryland.
Mr.. Goldstein said that
cheaper prices for liquor in
Washington are taking Gus
toners away from Maryland
outlets and cutting into tax
revenues in Maryland.
Mr.. Goldstein, whose office
handles tax collections in Mary
land, was asked by the General
Assembly and the Legislative
Council to examine the reasons
for liquor price differentials.
THE District of Columbia has
become known as a cut-rate
liquor market" Mr.. Goldstein
said. For several years District
per capita consumption has in
creased with a declining popu-
lation, while the per capita con-
sumption in Maryland, with a
large population increase, has
remained almost stationary"
Liquor Goes Across Line
Although Maryland law for
bids importation of more than
two quarts of liquor a month,
State officials claim that large
quantities of Washington liquor
are going into Maryland subur-
ban areas because it is cheaper.
Therefore, the per capita con-
sumption figures of Washing
ton would be misleading be-
cause a good deal of the liquor
would be consumed by Mary
landers.
Mr.. GoldStein noted that
large numbers of Marylanders
work in Washington and that
rs per cent of Maryland's pop
ulation is within an hours
drive from Washington.
The State Controller found
some reasons for the price diff
ferential but not enough to
satisfy him.
He listed these as:
A minor liquor tax advan-
tage of Is cents a gallon in
Washington.
More economical operation
by liquor wholesalers in Wash
ington because Of its small area
and dense population.
A lack of fair trade and I'M
fair sales acts in Washington
such as these which Maryland
dealers operate under.
Widespread price cutting
advertisements in Washington
papers which circulate in Mary
land.
Issuance of special permits
in Washington which allow re-
tailerS to buy odd lots, close
outs, private brands and less
known brands at low prices
direct from producers any,
where in the United States or
foreign countries, whereas the
only source for a Maryland
retailer is a Maryland licensed
wholesaler.
Mr.. Goldstein said his ex-
showed that deals"
were found to be prevalent
between District wholesalers
and retailers" He said some
deals were referred to as dis
count, deep discount, bill
downs and combination deep
discounts. with intriguing COM
plexities."
Price Wars Onnosed
He said that advertisements
by Washington liquor outlets
are sometimes misleading and
designed to get customers "in-
to store with the idea of selling
the consumer other items upon
which the retailer makes a
fair or better than average
profit"
He said one big advertise
ment carried "19 different ma
tionally known brands at the
cost or near cost"
and indicated the prices did
not represent a sale but were
everyday prices. One week
later. he said, a four-line CLASH
fled ad said this notice re-
vokes the prices on some
items" mentioned in the ear
lier large ad.
Mr.. Goldstein said Maryland's
liquor policy aims to thwart
price wars. to discourage undue
stimulation of sale and provides
safeguards against price dis
The controllers report, sched-
uled to be presented to the
General Assembly this week.
says there is a question of
whether unlawful trade prac-
tees are in part responsible
for the price differentials.