necessary with respect to sales of and offers to sell alcoholic beverages. Section 18, provisions are identical to code section 119, with the exception of the following: (a) prohibits a manufacturer from having any interest in a wholesale or retail licensee's business if in the opinion of the Board such interest will tend to influence such licensee to purchase alcoholic beverages from the manufacturer. (b) raises to $15, from $10 in present law, the value of any service or property that a manufacturer may sell, give, rent, or loan to wholesale or retail licensees with prior Board approval. (c) eliminates the 25-percent test in the code's definition of manufacturer. (d) substitutes court review for present review by the Commissioners with regard to revocation of license proceedings before the Board. Section 19, identical with section 120, but makes the same changes with respect to such wholesalers, etc., as are made in section 18 above with respect to manufacturers. Section 23-with the exception of the following, the section is identical with section 124: (a) continues the tax on every wine gallon of spirits and alcohol at $1.50 per gallon. (b) provides that such taxes shall be payable to the Commissioners. (c) empowers the Commissioners to provide that no tax shall be levied or collected on (1) alcoholic beverages imported into the United States for the personal or official use of the head of a diplomatic or foreign consular mission. (2) alcoholic beverages purchased from the holder of a wholesaler's license if it is purchased for the personal or official use of the head of a foreign diplomatic or consular mission and was withdrawn from a customs bonded warehouse which is under supervision of the Secretary of the Treasury and is located on the premises of such licensee. Subsection (h) of this section makes it mandatory that the Board shall require that the containers of alcoholic beverages carry the license number of the licensee. Section 26, identical with section 127 of the code except for the following: (a) deletes references to "streetcar," "elevator," or "horsedrawn vehicle." (b) deletes references to cited portions of the District of Columbia Motor Vehicle Code. Section 27, identical with code section 128 except that "public space" is substituted for the various distinctions of "street," etc. Section 28, identical with section 129 of the code except that the renamed District of Columbia Court of General Sessions is substituted for the term "municipal court." Section 31, exempts only holders of retailer's license class C, D, or E from the prohibition of selling alcoholic beverages on credit. Section 34, identical with section 137 of the code except that the "1 gallon" restrictions are limited to a calendar month whereas under the code, the restriction applies to any such delivery "at any one time." Section 36, identical with section 139 of the code except that District of Columbia Court of General Sessions is substituted for Municipal Court for the District of Columbia. New matter in H.R. 8920 not presently set forth in the code False Advertising. Section 37, makes it unlawful to knowingly disseminate false and misleading advertis ing for the purpose of directly or indirectly inducing the purchase of alcoholic beverages in the District. Penalty: A licensee violating the above, with intent to defraud or mislead, may have his license revoked or suspended after due notice and hearing by the Board, and review by the court, as previously provided herein. Conditions of liability: (a) manufacturers, packers, distributors, and sellers of alcoholic beverages shall be liable without further qualifications. (b) a publisher, radio broadcast licensee, or other agency or medium disseminating such advertising shall be liable only if— (1) He refuses the Board's request to furnish them the name and address of the manufacturer, packer, distributor, seller, or advertising agency, residing in the United States, who caused him to disseminate such advertising. (2) Such advertising agency also refuses to furnish the Board, upon request, with the above information. Section 38 declares the following with respect to congressional findings and policy: The manufacture, distribution, and consumption of alcoholic beverages affect the public interest, and in the further interest of protecting public health, welfare, and morals, and to encourage temperance and moderation, it is necessary to provide for the regulation thereof. This section also provides that retailers and wholesalers advertising special, unusual, or bargain prices are required to specify the quantities of each item available at such prices, and to have the same on hand; and no limitation on quantity per customer may be imposed. Definitions-with reference to alcoholic beverages: (1) Sell at retail; or, sales at retail; and, retail sale: Means any transfer for a valuable consideration made in the ordinary or usual course of trade or business which passes title to purchaser for his consumption or use other than a resale or further processing or manufacturing. Includes any transfer where title is retained as security for payment of the purchase price. (2) Sell at wholesale; or, sales at wholesale; and, wholesale sales: Sales as above defined to a purchaser for purposes of resale or further processing or manufacturing and includes transfers where title is retained as security for payment. (3) Retailer: Means and includes every person licensed under this act to sell alcoholic beverages at retail in the District of Columbia. (4) Wholesaler: Means and includes every person licensed under the act to sell alcoholic beverages at wholesale in the District of Columbia. Penalties: Upon compliance with the hearing and review procedures established herein, the licenses of retailers who knowingly violate the prohibitions against advertising, offering for sale, or selling, or refusing to sell, may be revoked or suspended after due notice and hearing. Injunctive relief: The courts of the District are empowered to prevent and restrain violation upon institution of appropriate proceedings in equity by the Corporation Counsel. Such relief may also be sought by any person threatened with loss or injury by reason of such violation. Nonapplicability: This section shall not apply to alcholic beverages sold: (1) At bona fide clearance sales, if advertised, marked, and sold as such. (2) As imperfect or damaged, or is being discounted and is advertised, marked, and sold as such. (3) At final liquidation sales. (4) For charitable purposese or to relief agencies. (5) On contract to departments of governments or governmental institutions. (6) At a price made in good faith to meet lawful competition. (7) By one wholesaler to another or by one retailer to another. (8) By an officer acting under the order or direction of any court or fiduciary, or by any trustee in a deed of trust or deed of assignment for the benefit of creditors. Section 39 provides that: (1) Nothing contained in the act shall divest the Federal Trade Commission or the Department of Justice of any jurisdiction possessed by them with regard to any pro vision of this act. (2) Nothing herein shall be construed as repealing any portion of section 7 of the District of Columbia Appropriation Act approved July 1, 1902 (i.e. 47 D.C. Code, sec. 2301 et seq. which is the general licensing law for the District of Columbia). SECTION 2 OF H.R. 8920 This section provides that nothing in Reorganization Plan No. 5, 1952 (66 Stat. 824) shall authorize the Commissioners to delegate, divest, or otherwise affect the Board's authority as granted herein. The Commissioners may, however, delegate their own authority conferred under the proposed act. SECTION 3 OF H.R. 8920 Section 3 provides that the present Alcoholic Beverage Control Board, and its membership, shall be continued. SECTION 4 OF H.R. 8920 Section 4 repeals current provisions of 25 District of Columbia Code, sections 101-139, for example, the Alcoholic Beverage Control Act for the District of Columbia. SECTION 5 OF H.R. 8920 Section 5 provides that any decision of the board revoking or suspending a license may be appealed to the District of Columbia Court of Appeals. SECTION 6 OF H.R. 8920 Section 6 provides that the act shall take effect 120 days after its enactment, or upon such earlier date as the District of Columbia Board of Commissioners shall prescribe. Mr. Speaker, I am pleased to call to the attention of the House the biographies of the present members of the Alcoholic Beverage Control Board of the District, which clearly indicate that none of them have any direct or indirect affiliation with any segment of the liquor industry, in or out of the District of Columbia: FRANK ERVIN WEAKLY Weakly, Frank Ervin, property management exec.; b. Shelbyville, Ill., Jan. 27, 1890; s. Benedict and Maria Louisa Jane (Hursh) W.; student Ill. Weslyan U., 1909-10; Ph. B., U. of Chicago, 1914; m. Lucille Lyon, Aug. 27, 1914; children-Amorita Lucile, Rhoda Frances; m. 2d Catherine Hughes Hall, Dec. 23, 1950. Grocer's clk. Shelbyville, 1906-09; foreman Burson Knitting Co., Rockford, Ill., 1910-11; instr. Little Rock, Ark., high sch., 1914-15; personnel dir. Montgomery Ward & Co., Chicago, 1915-21; gen. operating mgr. Halsey Stuart & Co., investment bankers, Chicago, 1921-33, v.p., 1933-44; pres., dir. Washington Properties, Inc., 1944-53; chmn. board Washington Sheraton Corporation, 1953-56; director Capital Transit Co. Mem. adv. bd. for branches, Am. Security and Trust Company. Served as labor specialist Council Nat. Defense, 1917, labor specialist Emergency Fleet Corp., 1918, mgr. personnel Quartermaster Corps, U.S. Army, 1918. Mem. Citizen's Advisory Com. on Public Works; chmn. Alcoholic Beverage Control Board, 1958-. Mem. Washington Bd. Trade Washington Real Estate Bd., Am., Washington (pres. 1946-53, dir.), Internat. hotel assns. Director President's Cup Regatta Assn., Gov. Better Bus. Bur., Minimum Wage and Indsl. Safety Bds. Mem. Greater Nat. Capital Exec. Com., bd. dir. Mct. Police Boy's Club. D.C. Bldg. Code Adv. Com. Mem. Tau Kappa Epsilon, Republican, Methodist. Clubs: South Shore Country, Executive (Chicago); Congressional Country, Carlton, Kiwanis (Washington); Circus Saints and Sinners. Author: Applied Personnel Procedure, 1923. Chmn. Cherry Blossom Festival, 1943-54. Home: Sheraton Park Hotel, Washington 8. Office: 2600 Woodley Rd., NW., Washington 8. Source: Who's Who in America. Vol. 32, p. 3297. JAMES G. TYSON Born near Smithfield, Pa., July 25, 1899. Mother and Father deceased. Three children, Eleanor Louise, James G. Jr., and Charles Leonard. Now married to Ann Montier Tyson, teacher in the D.C. Public Schools-now retired. Married December 24, 1927. FORMAL EDUCATION Public and High School, Uniontown, Pa., graduating 1919. All Varsity sports. Captain Football team 1918. Howard University 1925-29. A.B. 1929. Varsity Sports. AllAmerican Football 1927, Captain Swimming team 1928, Student Manager Glee Club 1929, Awarded Gold Key, 1929. Honorary Society, Alpha Sigma 1929, an editor of Yearbook, 1929. Howard University, LLB, 1932. President of Class, 1929-30, First Chief Justice, Court of Peers, 1931-32. Student Instructor, 1931-32. Harvard University School of Law, 1935-36. INSTRUCTION Graduate Instructor, subsequently Professor of Law, Terrell Law School, Washington, D.C., 1938– 42, 1945-49. Also coached football, basketball, swimming and track teams. BUSINESS Editor of the Uniontown Journal Newspaper. Sports editor of the Washington Sun. Manager Francis Swimming Pools. General Manager Slade's Restaurants in Boston. PROFESSIONAL Admitted to the District of Columbia Bar in April, 1933, also to the Bar of the United States Court of Appeals for the District of Columbia, the Bar of the United States District Court, 4th District, the Bar of the Municipal Court, D.C., and the United States Supreme Court. Member of the Washington Bar Association, the District of Columbia Bar Association, the Federal Bar Association, the National Bar Association, the American Bar Association, the American Judicature Society, the Howard University Law Alumni Association, and the Harvard University Law Alumni Association. Entered the general practice of law in Washington, D.C. in April 1933 and practiced extensively in and before the Courts of the District of Columbia, including Juvenile, Police, Municipal, Supreme Court, later known as the United States District Court for the District of Columbia, the United States Court of Appeals, and also before several of the Administrative Agencies of Government Agencies until October 1942. Up to that time the practice was primarily criminal, probate and domestic relations, however many other civil and administrative matters were handled. Several of the cases were of national interest, including the Crawford case in Leesburg, Virginia; also participated in the investigation of the Willie Peterson and the Scottsboro Cases in Alabama; served as prosecutor in a sectionally prominent murder case in Yorktown, Virginia. Locally, the United States v Roland Lindsey, 77 U.S. Appeals 1, and the Brown v D.C. Bar Association, were the most prominent. Returned to the United States late October 1945 and resumed private practice, after having served in the American Red Cross from 1942 to 1945. Was appointed receiver to wind up the Stockholders Union of the Colored Women's League and was again active in criminal and domestic relations work including several adoption matters. On March 4, 1946 was appointed Hearing Examiner for the D.C. Rent Control Board as set up under the authority of the "District of Columbia Emergency Rent Act" and served as such until its termination through July 1953. During that period heard approximately 30,000 cases, issued findings of fact, ruled on evidence, decided questions raised by motions, jurisdiction, service, notices and very many other legal points, assisted in preparing legislation, and assisted in training other examiners in this field. Served as Senior Examiner for several years. From September 1953 have re-entered the general practice almost exclusively civil and primarily domestic relations, adoptions and probate work. Was appointed to defend in the United States v Quincy Toney, the only first degree murder case since my return. Several less serious cases round out the criminal work to date. Appointed as Board Member A.B.C. Board from May 1, 1958 to date. SERVICE Member of Draft Board No. 13, Washington, D.C., 1939-42. Received Presidential Citation. American Red Cross (Task Force) 1942; served in the Southwest Pacific Area (Australia and New Guinea) and also with the M.T.O. (Italy and Corsica), as Club and Field Director. Returned to the United States in late October, 1945. Both sons are veterans who served with the Armed Services during World War II. ORGANIZATIONS AND CIVIC Was formerly member of the Masons in Pennsylvania; Mt. Pisgah Lodge No. 91, served as Treasurer and Senior Warden, St. Cyprian Consistory 32d Degree, Pittsburgh, Pa., Columbia Lodge No. 85, I.B.P.O. of Elks, Washington, D.C., Pigskin Club, Washington, D.C., Charter member, former president (five years) and now Treasurer, Alpha Phi Alpha Fraternity, Acting President Beta Chapter 1929, Royal Golf Club, D.C., former president, National Golf Association, former legal counsel, Bachelor-Benedict Club, former president, Mu-So-Lit Club, Member board of directors, Washington, D.C., Affiliated Boards of Athletic Officials, former president, MidCity Association, Lincoln Club, Uniontown, Pa., former president Oyster Harbor Civic Association, Maryland, former president. The N.A.A.C.P., formerly on national legal staff, the American Overseas Association (American Red Cross), and several other organizations such as the Y.M.C.A., Boys Club, Church Clubs, Etc. CHURCH Member A.M.E. Church, Uniontown, Pa., from childhood until 1935. Member Galbraith A.M.E. Zion Church, Washington, D.C. since 1935, served for over fifteen years on the Board of Trustees, chairman of the Board for three, now attorney for the Board of Trustees. POLITICS Life-long Republican, former Central State Committee, D.C. Republican and Board of Directors Citizens for EisenhowerNixon. LOUIS N. NICHOLS Born April 24, 1923, Washington, D.C., and resided therein all my life save for the period of time that I served on active duty with the Armed Forces of the United States. (October 20, 1942-December 18, 1945.) Honorably discharged on the latter date with the rank of Sergeant, United States Air Force. Locally educated in the Public Schools and attended the George Washington University, and graduated on November 11, 1949, with the degree of Bachelor of Laws. Admitted to the Bar on May the 5th, 1950, and was admitted to practice before all of the Courts of the District of Columbia and several administrative agencies. Was engaged in the private practice of law from January 1951 until appointed to the Alcoholic Beverage Control Board on April 2nd, 1962, to the unexpired term of Richard C. Sullivan. Presently reside at 7219 Western Avenue, N.W., with my wife, Stella P. Nichols and four children; Nicky, aged 15; Billy, aged 12; Kathy, aged 11, and Valerie, who will be 10 years old in December. Parents were born in Greece. Migrated to this country in early part of the century. Attend St. Sophia Greek Orthodox Cathedral at 36th and Massachusetts Avenue, N.W. For the accommodation of clients have served without without compensation compensation as officer and/or director of restaurants which held Retailer's Class "C" licenses prior to appointment to ABC Board. Prior to appointment to the ABC Board had severed connections with all of these restauarants except for Success Cafe, Inc., which is owned by my sister and her husband, and my connection with this restaurant was terminated within a few days after my appointment to the Board. The following editorial appeared in the Seaboard Beverage Journal of November 1963: AN APPEAL TO COMMONSENSE The argument that has been used against establishing a so-called independent ABC Board empowered to make and enforce control regulations for the District, never made sense. No one came right out and said so publicly, but in plain language the principal argument has been (1) that members of an independent Board would be more susceptible to corruption than under the present setup, and (2) that this is an irresponsible industry hellbent on corrupting everyone and everything it comes in contact with. Then, as a clincher, the recent New York Liquor Authority scandal is cited. In the first place, the word "independent" as used in this connection, is misleading. It is contorted to conjure up the picture of some arrogant, autonomous overlord conniving with a crooked industry to make suckers of the consuming public. Nothing could be further from the truth. The proposal is that the Commissioners would select and appoint the three Board members for 4-year terms of office, as they do now. These Board members would be removable for cause by the Commissioners, as they now are. And the decisions of these Board members could be appealed under the law, which is a distinct improvement over the present system. The contention that an ABC Board not directly "under the eye" of the Commissioners would be more responsive to the greater pressure of the industry it controls, is not only unadulterated hokum but an insult to all upstanding citizens who have ever served on the Board, and a slap in the face to everyone who earns his livelihood in this industry. Of those who perpetrate this kind of claptrap not one in a thousand has even read the actual proposal in print. This business of harping on the New York scandal is for the birds. Why not cite the Bobby Baker case? That's even more recent and closer at home. Of course, the great drawback to that would be that the liquor industry couldn't be made the prime target of all the smears and guilt-by-association tactics now being used. It's not the setup that has kept the District ABC Board free from any scandal, it's the type of people who have served on that board. Are we to assume that under the new system the Commissioners wouldn't continue to appoint the same type of upstanding citizens to the Board that they have in the past? I, for one, am proud to be a member of this industry. For that reason, I deplore all this cheap, emotional argumentum ad nauseum which has been stirred up over what is noth ing more or less than a new, commonsense regulatory proposal to eliminate confusion and place on a businesslike basis the task of properly and lawfully distributing alcoholic beverages to the public in this Nation's Capital. It is to be hoped that Congress will disregard the prattle of all the sob sisters and angle shooters and give the people of the District a clean, modern, practical method of control, now that three decades have elapsed since it enacted the original ABC Act. RALPH CHASE, Editor and Publisher. The following is a letter received by me today together with the resolution referred to therein: THE CONRAD HILTON, Chicago, November 5, 1963. FROM ANNUAL CONVENTION NATIONAL LICENSED BEVERAGE ASSOCIATION DEAR CONGRESSMAN MULTER: I am pleased to enclose to you a resolution adopted this date by the annual convention of the National Licensed Beverage Association favoring passage by the House of Representatives of H.R. 8920, which you have introduced to modernize the alcoholic beverage law of the District of Columbia. H.R. 8920 has the full support of NLAB's 45,000 members in some 28 States, including the State of New York. Respectfully yours, ANDREW J. ZIOMEK, National Licensed Beverage Association. Whereas on October 29, 1963, the Committee on the District of Columbia of the U.S. House of Representatives reported out of committee H.R. 8920, a bill introduced by Congressman ABRAHAM MULTER, of New York, to modernize and update the Alcoholic Beverage Control Act of the District of Columbia; and Whereas H.R. 8920 constitutes the first serious effort in over 30 years to overhaul and modernize the archaic alcoholic beverage control law for Washington, D.C.; and Whereas the passage of H.R. 8920 has been endorsed and recommended by the Restaurant Beverage Association of Washington, D.C., an affiliate of the National Licensed Beverage Association; and Whereas H.R. 8920 would bring the alcoholic beverage control law of the District of Columbia into conformity with similar laws governing most large metropolitan cities of the country; and Whereas the Alcoholic Beverage Control Act of the District of Columbia is enacted by the Congress of the United States and is sometimes cited as a pilot or model statute by legislators in the various States: Now, therefore, be it Resolved, That the members of the National Licensed Beverage Association at their annual convention in Chicago, Ill., on this 5th day of November, 1963, go on record as supporting the passage of H.R. 8920, which will amend the Alcoholic Beverage Control Act of the District of Columbia and bring its provisions into compliance with alcoholic beverage control statutes prevailing in large metropolitan cities across the country; be it further Resolved, That copies of this resolution be sent forthwith to JOHN W. MCCORMACK, Speaker of the House of Representatives; to Hon. JOHN L. MCMILLAN, chairman of the House Committee on the District of Columbia; and to the Honorable ABRAHAM J. MULTER, of New York, author of the bill. Under date of November 2, 1963, the Restaurant Beverage Association of Washington, D.C., wrote me as follows: In keeping with a resolution recently adopted by the directors of the Restaurant Beverage Association of Washington, D.C., I have been asked to inform you that the association has studied and wholeheartedly endorses your bill, H.R. 8920, to update the local ABC Act. We believe this bill is both in the public interest and in the interest of modernizing an act which has not had major change since its enactment. Mr. Chairman, I reserve the balance of my time. Mr. SPRINGER. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I am going to try to answer three or four matters that have been raised by my distinguished chairThe gentleman made a statement here broadly that this bill satisfies the man. Citizens' Committee and their objectives. May I say, one big objection is that the Citizens' Committee did not get a chance to consider this provision because it was not in last year's bill. The heart of the bill this year takes away from the District Commissioners the right to super vise the activities of the ABC Board and removes from the District Commissioners and transfers to the ABC Board the right and transfers to the ABC Board the right to write regulations. This is the objecto write regulations. This is the objection that Mrs. Gichner talked about. It was not even in the bill last year and, of course, the blue ribbon committee did not get a chance to examine it. Mr. MULTER. Mr. Chairman, will the gentleman yield? Mr. SPRINGER. I am sorry I cannot yield to the gentleman since I do not have sufficient time. Mr. MULTER. Mr. Chairman, will the gentleman yield for a question, and I will yield 1 additional minute to him. Mr. Chairman, I yield the gentleman 1 additional minute. Mr. SPRINGER. I yield to the gentle man. Mr. MULTER. Is it not a fact that ever since this bill was introduced on January 17 of this year, this provision was in the bill making the Board independent? Mr. SPRINGER. Yes, but you have to recall that the blue ribbon committee which disbanded had only authority for the appointment of the Board of Commissioners to make a review last year, and it was disbanded in September 1962. Mr. MULTER. Nevertheless, she still wrote you a letter with reference to this. Mr. SPRINGER. She did on her own, but she did not presume to represent the blue ribbon committee. She objected to this provision because she thought it was not in the interest of sound government. Mr. MULTER. She objected to no provision of this bill. Nobody, neither she nor anyone else, came before the committee to object to this provision. Mr. SPRINGER. In any event I give you whatever she said as the way I feel that the blue ribbon committee would have acted if they had a chance to examine this. The second thing is fraudulent advertising. The gentleman has said here that there was all kinds of fraudulent adver tising. I have a report in my file here from the District of Columbia Better Advertising Bureau in which they cite over 2,200 complaints and they itemize the complaints that came to them and not one single complaint came to that advertising bureau from the liquor industry or anyone complaining about advertising in the liquor industry. The Federal Trade Commission has the right to supervise false advertising and has the right to prosecute the complaint. My chairman has said repeatedly that the Federal Trade Commission would not do anything. I have talked with the Federal Trade Commission-to their complaint division-and they say there has never been a single case sent down there of a complaint against liquor advertising in the District of Columbia that has ever been supported by any evidence-not one single complaint. Those are two big agencies-the Better Advertising Bureau of the District of Columbia and the Federal Trade Commission that filed. If there is a whole lot of false says there has never been a complaint advertising going on, certainly, someone should have made a complaint to one of those two bureaus. Michigan [Mr. DINGELL] asked a question a moment ago about whether or not you could have price fixing by regulation of the ABC Board. That is exactly what they intend to do by removing the ABC Board from the jurisdiction of the Board of Commissioners of the District of Columbia. The distinguished gentleman from Mr. MULTER. Mr. Chairman, will the gentleman yield? Mr. SPRINGER. I yield to the gentleman on his time. Mr. MULTER. Will not the gentleman concede that no regulation can be issued by the District Commissioners or by the Board unless such regulation comes squarely within the four corners of the statute by virtue of which the Board or the Commissioners would have the authority to issue such a regulation. The regulation must cover the subject matter as permitted by the statute. Mr. SPRINGER. I would say they will have the power to regulate. If the gentleman wants to say that they will not have the power to regulate that is all right, but I say that is what they intend to do. Mr. MULTER. I assure the gentleman that any lawyer will tell him a board can issue a regulation only if the statute covers the subject matter that is to be covered by the regulation. There is nothing in this bill that permits any price fixing. I say it requires a statutory provision directing delegation of authority to the Board before it can do it. Not only is there no such provision in the bill, but now we make express prohibition so that the Board cannot do it. Mr. SPRINGER. May I say the distinguished gentleman from Michigan [Mr. DINGELL] in following this up, said that the very language in this bill does "substantially lessen competition" and it does prevent discounts, in my opinion. This is the whole thing the editorials have been pointing up, that is, the fact that discounts cannot be made as they have been in the past. These are the real objections and the answers I have to what my distinguished chairman had to say on these points. This is price fixing. The CHAIRMAN. The time of the gentleman has expired. Mr. MULTER. Mr. Chairman, I yield 1 minute to the gentleman from New Jersey. Mr. JOELSON. Mr. Chairman, I take this time to ask the gentleman from Illinois a question or two. I have read editorials and received a statement from the gentleman from Illinois which convinced me to vote against this bill on the ground of price fixing. Very frankly, I am now confused as to whether or not there is price fixing in this bill or whether there is a prohibition against discount selling. I would like the gentleman from Illinois to point out to me exactly where in the bill there might be price fixing or price control or a prohibition on reduced prices on alcoholic beverages in the District. I might say the newspaper editorials flatly make this statement, but I do not see it in the bill. Mr. SPRINGER. Mr. Chairman, will the gentleman yield? Mr. JOELSON. I yield to the gentleman. Mr. SPRINGER. In my opinion, I think this is what the bill does. Mr. JOELSON. I am not being hostile. Mr. SPRINGER. I understand. Mr. JOELSON. But could the gentleman show me where in the bill this is contained? Mr. MULTER. Mr. Chairman, may I attempt to answer the the gentleman's question? Mr. JOELSON. Yes. Mr. MULTER. If there is anything in this bill which gives the ABC Board the right to fix prices, it will give it to the Commissioners, and the same objection applies to the Commissioners. I say the District Commissioners under existing law have no right to fix prices, there is nothing in this bill which will give to them or to the ABC Board the right to fix prices. Not one word. Mr. JOELSON. I will say to the gentleman this is one time where debate, as far as I am concerned, has had a very strong effect, because I came in here prepared to vote against this bill, and if there is no price fixing in it, I am going to vote for it. Mr. MULTER. Mr. Chairman, I yield 1 minute to the gentleman from California [Mr. SISK). Mr. SISK. Mr. Chairman, I take this time to indicate. my strong support of this legislation. I think it is evident from the questions of my good friend from New Jersey to the gentleman from Illinois and his request to pinpoint any place in this bill where price fixing is specified and the fact that he could not point to it is evidence that there is no price fixing in this legislation. I would simply like to say, and I think we should probably just lay it out cold turkey, that a lot of editorials you have been reading are frankly inspired by one of the most parochial press operations, I think, in America. They are simply scared to death that they are going to lose a little bit of advertising. I think it is just that plain and simple. Unfortunately, Washington is blessed with some of the most ington is blessed with some of the most parochial newspapers in this Nation, and their position in this matter and the editorials they have written are completely selfish. Mr. FARBSTEIN. Mr. Chairman, will the gentleman yield? Mr. MULTER. I yield 1 minute to the gentleman from New York. Mr. FARBSTEIN. Mr. Chairman, am I to understand that the colloquy that took place between the gentleman from New York [Mr. MULTER], and the gentleman from New Jersey [Mr. JOELSON], will represent legislative history insofar as price fixing is concerned? By that I mean do we nail down the substance of the question, the substance of the subject, that it is the intent of this legislation not to indulge in or to suggest price fixing? Mr. MULTER. Everything I said I said having in mind that it is part of the legislative history on this bill, just as everything that is said on the floor is part of the legislative history of any bill. I do intend that it be part of the legislative history on this bill. One last word, and that is this: Reference has been made to the fact that the Attorney General and the Federal Trade Commission have a right to receive complaints of false advertising and that they received complaints and found they were unjustified. The fact is that both last year and this year we made the statements on the record that when the Attorney General got complaints against false advertising in the District he referred them to the Federal Trade Commission and the Federal Trade Commission referred them back to the Attorney General and neither one would take any action on them. That is on the record and has never been refuted by either the Attorney General or the Federal Trade Commission. Mr. NEDZI. Mr. Chairman, will the gentleman yield? Mr. MULTER. I yield. Mr. NEDZI. With respect to the question whether this is a price-fixing bill, I would like to refer the gentleman to section 7 on page 10 and inquire of him just what is the meaning of this section where it says: The Board is hereby authorized to prescribe such rules and regulations not inconsistent with this Act as it may deem necessary to carry out the purposes thereof and to control and regulate the manufacture, sale, keeping for sale And I emphasize sale; would the gentleman clarify this section in the light of his previous statement that this is not and cannot be a price-fixing measure? Mr. MULTER. This is in the statute today. There is no change made in this language. This is intended to keep those who are engaged in this business doing business in an honorable way. It is not intended to be a price-fixing measure at all. Mr. NEDZI. Perhaps it is not the intent Mr. MULTER. It has never been so construed as to permit price fixing. Mr. NEDZI. Does the Commission at the present time have the right to fix prices? does not fix prices. Mr. NEDZI. I thank the gentleman. I want the record to show that I support the amendment by the gentleman from New York [Mr. DEROUNIAN]-the striking of the word "shall" on page 48, line 5, substitute the word "may" instead. When this matter was before the committee I voted for putting the word "shall" in the bill believing that this was Consistent with Iowa regulation and law. Upon investigation I found that Iowa has not had this requirement for several years. So my argument for this wording was based on the wrong assumption. On further study I find that Iowa's law enforcement has not become more difficult because of the change. For this reason and for the reason that the retaining of the word "shall" would tend to restrain under certain circumstances I think it desirable to make the law in this regard consistent with the law and practices of other States and regulatory bodies. Also, as will be seen from the following excerpt from the regulations of the District ABC Board, they are evidently taking adequate precautions of the problem of law enforcement: B On and after December 1, 1961 each retail licensee shall print his retail license number in indelible ink, in figures not less than onefourth inch in height, upon every immediate container of alcoholic beverage (except beer containers and wine containers and spirits containers of less than 2 ounces) prior to the sale or display of the same. The words "immediate container" mean the bottle, jar, jug, or other individual container into which the liquid is placed by the manufacturer, or the individual package sealed by the manuThe facturer enclosing such container. license number shall be printed by rubber stamp in contrasting ink directly on the principal label of the bottle, jar, jug, or other individual container unless such container be enclosed in an outer individual package sealed by the manufacturer and displayed or sold in that condition, in which case the license number shall be printed on such outer individual sealed package: Pro vided, That the foregoing requirements shall not be applicable to holiday gift packages Each prewrapped by the manufacturer. license number, whether placed on the label of the individual container or on the outer sealed package, shall be so printed as to be clearly visible and legible. Mr. Chairman, for the above reasons and for other reasons, I support the amendment and the bill. The CHAIRMAN. All time has expired. The Clerk will read the bill for amendment. The Clerk read as follows: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the District of Columbia Alcoholic Beverage Control Act is amended to read as follows: "That the National Prohibition Act, as amended and supplemented, insofar as it affects the manufacture, sale, and possession in the District of Columbia, and the transportation in, into, and from the District of Columbia, of alcoholic beverages, is hereby repealed, with the exception of title III, and section 4 of title II insofar as it affects denatured alcohol. Mr. MULTER. Mr. Chairman, I ask unanimous consent that the bill be considered as read and open to amendment at any point. The CHAIRMAN. Is there objection to the request of the gentleman from New York? Mr. DINGELL. Mr. Chairman, at this moment I have to object. The CHAIRMAN. The Clerk will read. The Clerk read as follows: "SEC. 2. This Act may be cited as the 'District of Columbia Alcoholic Beverage Control Act'. It shall apply only to the District of Columbia and shall not authorize the delivery of alcoholic beverages outside of the District of Columbia in violation of the law of the place of delivery. "SEC. 3. As used in this Act "(1) The word 'alcohol' means ethyl alcohol, hydrated oxide of ethyl, or spirit of wine, from whatever source or by whatever processes produced. "(2) The word 'spirits' means any beverage which contains alcohol obtained by distillation mixed with drinkable water and other substances in solution, including brandy, rum, whisky, cordials, and gin. "(3) The word 'wine' means the product of the normal alcoholic fermentation of the juice of fresh, sound, ripe grapes, with the usual cellar treatment and necessary additions to correct defects due to climatic, saccharine and seasonal conditions, including champagne, sparkling, artificially carbonated and fortified wine. No other product obtained by the fermentation of the natural sugar contents of fruits or other agricultural products containing sugar shall be called 'wine' unless designated by appropriate prefix descriptions of the fruit or other product from which the same was predominantly produced, or as artificial or imitation wine. "(4) The word 'beer' means any fermented beverages of any name or description manufactured from malt, wholly or in part, or from any substitute therefor. "(5) The words 'alcoholic beverage' include the four varieties of liquor above defined (alcohol, spirits, wine, and beer) and every liquid or solid, patented or not, containing alcohol, spirits, wine, or beer and capable of being consumed by a human being. Any liquid or solid containing more than one of the four varieties above defined is considered as belonging to that variety which has the higher percentage of alcohol, according to the order in which they are above defined, except as provided in paragraph (3) hereof. The provisions of this section and of this Act shall not apply to any liquid or solid containing less than one-half of 1 per centum of alcohol by volume, nor shall anything contained in this Act be construed as affecting the manufacture of apple cider or the sale thereof. "(6) The word 'Board' shall mean the Alcoholic Beverage Control Board. "(7) The word 'club' means a corporation for the promotion of some common object (not including corporations organized for any commercial or business purpose, the object CIX-1332 of which is money profit), owning, hiring, or leasing a building or space in a building of such extent and character as in the judgment of the Board may be suitable and adequate for the reasonable and comfortable use and accommodations of its members and their guests, and including such space outside of the building (including public property) and adjoining it as may be approved by the Board, and provided with such suitable and adequate kitchen and dining room space and equipment, implements, and facilities, and employing such a sufficient number of employees for cooking, preparing, and serving meals for its members and their guests, as shall satisfy the Board that the sale of food is the source of a reasonable amount of revenue from such space; and the affairs and management of such corporation are conducted by a board of directors, executive committee, or similar body chosen by the members at least once each calendar year and no officer, agent, or employee of the club is paid directly or indirectly, or receives in the form of salary or other compensation, any profit from the disposition or sale of alcoholic beverages to the club or to the members of the club or guests introduced by members, beyond the amount of such salary as may be fixed and voted by the members, or by its directors, or other governing body. "(8) The word 'Commissioners' shall mean the Commissioners of the District of Columbia. "(9) The word 'District' shall mean the District of Columbia. "(10) The word 'hotel' means a suitable building or other structure, approved by the Board, including such suitable space outside of the building (including public property) and adjoining it as may be approved by the Board, kept, used, maintained, advertised, or held out to the public to be a place where meals are served and sleeping accommodations offered for pay to transient guests; in which thirty or more rooms are used for the sleeping accommodations of such transient guests, and having one or more dining rooms where meals are served to such transient guests, such sleeping accommodations and dining rooms being conducted in the same building or in connecting buildings, and such building or buildings, structure or structures being provided with such adequate kitchen and dining room equipment and capacity and having employed therein such number and kinds of employees for preparing, cooking, and serving meals for its guests as shall satisfy the Board that such dining room is intended for use primarily as a place for preparing, cooking, and serving meals and that a reasonable amount of the revenue to be derived from the operation of such dining room shall be from the preparation, cooking, and serving of meals and not from the sale of alcoholic beverages. "(11) The word 'manufacture' shall include rectification. "(12) The word 'meals' means the usual assortment of foods commonly ordered at various hours of the day; and such food and victuals as sandwiches and salads shall not be regarded as a meal. "(13) The word 'person' includes an individual, partnership, corporation, and association. "(14) The word 'restaurant' means a suitable space in a suitable building, approved by the Board, including such suitable space outside of the building (including public property) and adjoining it as may be approved by the Board, kept, used, maintained, advertised, or held out to the public to be a place where meals are served, such space being provided with such adequate kitchen and dining room equipment and capacity, and having employed therein such number and kinds of employees for preparing, cooking, and serving meals for its guests as shall satisfy the Board that such space is intended for use primarily as a place for preparing, cooking, and serving meals, and that a reasonable amount of the revenue to be derived from the operation of such place shall be from the preparation, cooking, and serving of meals and not from the sale of alcoholic beverages. "(15) The word 'sell' or 'sale' shall include offering for sale, keeping for sale, trafficking in, bartering, delivering for value, exchanging for goods, or in any way other than purely gratuitously, and every delivery of any alcoholic beverage made otherwise than by purely gratuitous title shall constitute a sale. "(16) The word 'tavern' means a suitable space in a suitable building approved by the Board, including such suitable space outside of the building (including public property) and adjoining it, as may be approved by the Board, kept, used, maintained, advertised, or held out to the public to be a place where sandwiches or light lunches are prepared and served for consumption on the premises in such quantities as to satisfy the Board that the sale of food is the source of a reasonable amount of revenue of such tavern. "(17) The term 'corporation counsel' means the attorney for the District by whatever title such attorney may be known, designated by the Commissioners to perform the functions prescribed for the corporation counsel in this Act. "(18) The term 'light wines' means champagne and wines containing 14 per centum or less of alcohol by volume. "SEC. 4. The Commissioners, within fifteen days after the approval of this Act, shall appoint a Board of three persons, subject to removal only for inefficiency, neglect of duty, or malfeasance in office, to be called the 'Alcoholic Beverage Control Board'. The Board shall be an independent agency of the government of the District of Columbia. Each of the members of the Board shall be a citizen of the United States and a resident of the District for at least three years immediately preceding his appointment and have during that period claimed residence nowhere else, and shall be of good character and otherwise fit for the trust to be imposed in him. Of the three persons first appointed as members of said Board, one shall be appointed for two years, one for three years and one for four years, and thereafter all appointments shall be for the term of four years, except such appointments as may be made for the remainder of unexpired terms. A member of the Board may continue to serve until such time as his successor shall have been appointed. Vacancies caused by death, resignation or otherwise shall be filled by the Commissioners only for the unexpired terms. Members shall be eligible for reappointment. The Commissioners shall designate one of the members of the Board to be chairman thereof. The positions of members of the Board shall be classified in accordance with the Classication Act of 1949, as amended. The Board is authorized to employ such persons as may be necessary to carry out its functions unThe Commissioners are auder this Act. thorized to employ such other personal services, including three additional assistant corporation counsels, as may be necessary to carry out this Act. The salaries of employees, other than members of the Board, shall be fixed in accordance with the provisions of the Classification Act of 1949, as amended. The Commissioners shall include in their annual estimates such amounts as may be required for the salaries and expenses herein authorized. "SEC. 5. No member or employee of the Board, directly or indirectly, individually, or as a member of a partnership or association, or stockholder in a corporation shall have any interest whatsoever in dealing in, manufacturing, transporting, or storing alcoholic beverages, nor receive any commission or |