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necessary with respect to sales of and offers ing for the purpose of directly or indirectly Counsel. Such relief may also be sought by to sell alcoholic beverages.

inducing the purchase of alcoholic beverages any person threatened with loss or injury by Section 18, provisions are identical to code in the District.

reason of such violation. section 119, with the exception of the fol Penalty: A licensee violating the above, Nonapplicability: This section shall not lowing:

with intent to defraud or mislead, may have apply to alcholic beverages sold: (a) prohibits a manufacturer from having his license revoked or suspended after due (1) At bona fide clearance sales, if adverany interest in a wholesale or retail licensee's notice and hearing by the Board, and re tised, marked, and sold as such. business if in the opinion of the Board such view by the court, as previously provided (2) As imperfect or damaged, or is being interest will tend to influence such licensee herein.

discounted and is advertised, marked, and to purchase alcoholic beverages from the Conditions of liability:

sold as such. manufacturer.

(a) manufacturers, packers, distributors, (3) At final liquidation sales. (b) raises to $15, from $10 in present law, and sellers of alcoholic beverages shall be (4) For charitable purposese or to relief the value of any service or property that a liable without further qualifications.

agencies. manufacturer may sell, give, rent, or loan (b) a publisher, radio broadcast licensee, (5) On contract to departments of goyto wholesale or retail licensees with prior

or other agency or medium disseminating ernments or governmental institutions. Board approval. such advertising shall be liable only if

(6) At a price made in good faith to meet (c) eliminates the 25-percent test in the (1) He refuses the Board's request to fur

lawful competition. code's definition of manufacturer.

nish them the name and address of the (7) By one wholesaler to another or by one (d) substitutes court review for present manufacturer, packer, distributor, seller, or

retailer to another. review by the Commissioners with regard to

advertising agency, residing in the United (8) By an officer acting under the order or revocation of license proceedings before the States, who caused him to disseminate such

direction of any court or fiduciary, or by any Board. advertising.

trustee in a deed of trust or deed of assignSection 19, identical with section 120, but

(2) Such advertising agency also refuses

ment for the benefit of creditors. makes the same changes with respect to such to furnish the Board, upon request, with the

Section 39 provides that: wholesalers, etc., as are made in section 18 above information.

(1) Nothing contained in the act shall above with respect to manufacturers.


divest the Federal Trade Commission or the

False advertisement-an advertisement Department of Justice of any jurisdiction Section 23—with the exception of the fol other than labeling—which is misleading in possessed by them with regard to any prolowing, the section is identical with section a material respect.

vision of this act. 124:

(1) Facts to be considered in determining

(2) Nothing herein shall be construed as (a) continues the tax on every wine gallon the above:

repealing any portion of section 7 of the of spirits and alcohol at $1.50 per gallon. (a) Representations made or suggested by District of Columbia Appropriation Act ap

(b) provides that such taxes shall be pay statement, word, design, device, sound, or proved July 1, 1902 (1.e. 47 D.C. Code, sec. able to the Commissioners. any combination thereof.

2301 et seq. which is the general licensing (c) empowers the Commissioners to pro

(b) The extent to which the advertise- law for the District of Columbia). vide that no tax shall be levied or collected ment fails to reveal material facts in the light

SECTION 2 OF H.R. 8920 onof such representations.

This section provides that nothing in Re(1) alcoholic beverages imported into the United States for the personal or official use

Congressional Policy

organization Plan No. 5, 1952 (66 Stat. 824) of the head of a diplomatic or foreign con

Section 38 declares the following with re

shall authorize the Commissioners to delesular mission. spect to congressional findings and policy:

gate, divest, or otherwise affect the Board's (2) alcoholic beverages purchased from The manufacture, distribution, and con

authority as granted herein. The Commis

sioners may, however, delegate their own the holder of a wholesaler's license if it is sumption of alcoholic beverages affect the purchased for the personal or official use of public interest, and in the further interest

authority conferred under the proposed act. the head of a foreign diplomatic or consular of protecting public health, welfare, and

SECTION 3 OF H.R. 8920 mission and was withdrawn from a customs morals, and to encourage temperance and Section 3 provides that the present Alcobonded warehouse which is under supervi moderation, it is necessary to provide for the holic Beverage Control Board, and its memsion of the Secretary of the Treasury and regulation thereof.

bership, shall be continued. is located on the premises of such licensee. This section also provides that retailers

SECTION 4 OF H.R. 8920 Subsection (h) of this section makes it and wholesalers advertising special, unusual, mandatory that the Board shall require that or bargain prices are required to specify the

Section 4 repeals current provisions of 25 the containers of alcoholic beverages carry quantities of each item available at such District of Columbia Code, sections 101-139, the license number of the licensee. prices, and to have the same on hand; and

for example, the Alcoholic Beverage Control no limitation on quantity per customer may Act for the District of Columbia. Section 26, identical with section 127 of be imposed.

SECTION 5 OF H.R. 8920 the code except for the following:

Definitions—with reference to alcoholic

Section 5 provides that any decision of (a) deletes references to "streetcar," "elebeverages:

the board revoking or suspending a license vator," or "horsedrawn vehicle."

(1) Sell at retail; or, sales at retail; and, may be appealed to the District of Columbia (b) deletes references to cited portions of

retail sale: Means any transfer for a val Court of Appeals. the District of Columbia Motor Vehicle Code.

uable consideration made in the ordinary or Section 27, identical with code section 128 usual course of trade or business which

SECTION 6 OF H.R. 8920 except that "public space" is substituted for

passes title to purchaser for his consumption Section 6 provides that the act shall take the various distinctions of "street," etc.

or use other than a resale or further proc effect 120 days after its enactment, or upon Section 28, identical with section 129 of

essing or manufacturing. Includes any such earlier date as the District of Columbia the code except that the renamed District of

transfer where title is retained as security for Board of Commissioners shall prescribe. Columbia Court of General Sessions is subpayment of the purchase price.

Mr. Speaker, I am pleased to call to stituted for the term "municipal court."

(2) Sell at wholesale; or, sales at wholesale; and, wholesale sales: Sales as above

the attention of the House the biograSection 31, exempts only holders of re

defined to a purchaser for purposes of resale phies of the present members of the tailer's license class C, D, or E from the pro

or further processing or manufacturing and Alcoholic Beverage Control Board of the hibition of selling alcoholic beverages on

includes transfers where title is retained as District, which clearly indicate that none

security for payment. credit.

of them have any direct or indirect af(3) Retailer: Means and includes every filiation with any segment of the liquor

person licensed under this act to sell alcor industry, in or out of the District of Section 34, identical with section 137 of the holic beverages at retail in the District of code except that the “1 gallon” restrictions

Columbia: Columbia. are limited to a calendar month whereas (4) Wholesaler: Means and includes every

FRANK ERVIN WEAKLY under the code, the restriction applies to any person licensed under the act to sell alco Weakly, Frank Ervin, property managesuch delivery "at any one time."

holic beverages at wholesale in the District ment exec.; b. Shelbyville, Ill., Jan. 27, 1890; of Columbia.

s. Benedict and Maria Louisa Jane (Hursh) Section 36, identical with section 139 of Penalties: Upon compliance with the hear W.; student Ill, Weslyan U., 1909-10; Ph. B., the code except that District of Columbia ing and review procedures established herein, U. of Chicago, 1914; m. Lucille Lyon, Aug. 27, Court of General Sessions is substituted for the licenses of retailers who knowingly vio 1914; children-Amorita Lucile, Rhoda Municipal Court for the District of Colum late the prohibitions against advertising, Frances; m. 2d Catherine Hughes Hall, Dec. bia.

offering for sale, or selling, or refusing to 23, 1950. Grocer's clk. Shelbyville, 1906–09; New matter in H.R. 8920 not presently set

sell, may be revoked or suspended after due foreman Burson Knitting Co., Rockford, Ill., forth in the code notice and hearing.

1910–11; instr. Little Rock, Ark., high sch., Injunctive relief: The courts of the Dis 1914-15; personnel dir. Montgomery Ward False Advertising.

trict are empowered to prevent and restrain & Co., Chicago, 1915–21; gen. operating mgr. Section 37, makes it unlawful to knowingly violation upon institution of appropriate Halsey Stuart & Co., investment bankers, disseminate false and misleading advertis proceedings in equity by the Corporation Chicago, 1921-33, v.p., 1933–44; pres., dir.

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Washington Properties, Inc., 1944-53; chmn. the practice was primarily criminal, probate Board of Directors Citizens for Eisenhowerboard Washington Sheraton Corporation, and domestic relations, however many other Nixon. 1953–56; director Capital Transit Co. Mem. civil and administrative matters were hanadv.bd. for branches, Am. Security and dled. Several of the cases were of national Trust Company. Served as labor specialist interest, including the Crawford case in

LOUIS N. NICHOLS Council Nat. Defense, 1917, labor specialist Leesburg, Virginia; also participated in the Born April 24, 1923, Washington, D.C., and Emergency Fleet Corp., 1918, mgr. person investigation of the Willie Peterson and the resided therein all my life save for the period nel Quartermaster Corps, U.S. Army, 1918. Scottsboro Cases in Alabama; served as pros- of time that I served on active duty with the Mem. Citizen's Advisory Com. on Public ecutor in a sectionally prominent murder Armed Forces of the United States. (OctoWorks; chmn. Alcoholic Beverage Control case in Yorktown, Virginia. Locally, the ber 20, 1942–December 18, 1945.) Honorably Board, 1958. Mem. Washington Bd. Trade United States v Roland Lindsey, 77 U.S. discharged on the latter date with the rank Washington Real Estate Bd., Am., Washing Appeals 1, and the Brown v D.C. Bar Asso of Sergeant, United States Air Force. ton (pres. 1946–53, dir.), Internat. hotel ciation, were the most prominent. Returned Locally educated in the Public Schools and assns. Director President's Cup Regatta to the United States late October 1945 and attended the George Washington University, Assn., Gov. Better Bus. Bur., Minimum Wage resumed private practice, after having served and graduated on November 11, 1949, with the and Indsl. Safety Bds. Mem. Greater Nat. in the American Red Cross from 1942 to 1945. degree of Bachelor of Laws. Admitted to the Capital Exec. Com., bd. dir. Mct. Police Boy's Was appointed receiver to wind up the Stock Bar on May the 5th, 1950, and was admitted Club. D.C. Bldg. Code Adv. Com. Mem. Tau holders Union of the Colored Women's League to practice before all of the Courts of the Kappa Epsilon, Republican, Methodist. and was again active in criminal and do District of Columbia and several adminisClubs: South Shore Country, Executive

mestic relations work including several adop- trative agencies. (Chicago); Congressional Country, Carlton,

tion matters. On March 4, 1946 was ap Was engaged in the private practice of law Kiwanis (Washington); Circus Saints and pointed Hearing Examiner for the D.C. Rent from January 1951 until appointed to the Sinners. Author: Applied Personnel Pro

Control Board as set up under the authority Alcoholic Beverage Control Board on April cedure, 1923. Chmn, Cherry Blossom Fes of the “District of Columbia Emergency 2nd, 1962, to the unexpired term of Richard tival, 1943–54. Home: Sheraton Park Hotel,

Rent Act” and served as such until its termi C. Sullivan. Washington 8. Office: 2600 Woodley Rd.,

nation through July 1953. During that pe Presently reside at 7219 Western Avenue, NW., Washington 8.

riod heard approximately 30,000 cases, issued N.W., with my wife, Stella P. Nichols and Source: Who's Who in America. Vol. 32,

findings of fact, ruled on evidence, decided four children; Nicky, aged 15; Billy, aged p. 3297.

questions raised by motions, jurisdiction, 12; Kathy, aged 11, and Valerie, who will be

service, notices and very many other legal 10 years old in December. JAMES G. TYSON

points, assisted in preparing legislation, and Parents were born in Greece. Migrated to

assisted in training other examiners in this this country in early part of the century. Born near Smithfield, Pa., July 25, 1899.

field. Served as Senior Examiner for several Attend St. Sophia Greek Orthodox CatheMother and Father deceased. Three chil

years. From September 1953 have re-entered dral at 36th and Massachusetts Avenue, N.W. dren, Eleanor Louise, James G. Jr., and

the general practice almost exclusively civil For the accommodation of clients have Charles Leonard. Now married to Ann Monand primarily domestic relations, adoptions served

served without tier Tyson, teacher in the D.C. Public

compensation as officer and probate work. Was appointed to defend Schools—now retired. Married December 24, in the United States v Quincy Toney, the only Retailer's Class “C” licenses prior to appoint

and/or director of restaurants which held 1927.

first degree murder case since my return. ment to ABC Board. Prior to appointment FORMAL EDUCATION

Several less serious cases round out the to the ABC Board had severed connections Public and High School, Uniontown, Pa., criminal work to date. Appointed as Board with all of these restauarants except for graduating 1919. All Varsity sports. Cap Member A.B.C. Board from May 1, 1958 to Success Cafe, Inc., which is owned by my tain Football team 1918. Howard University date.

sister and her husband, and my connection 1925–29. A.B. 1929. Varsity Sports. All


with this restaurant was terminated within American Football 1927, Captain Swimming

Member of Draft Board No. 13, Washing a few days after my appointment to the team 1928, Student Manager Glee Club 1929, ton, D.C., 1939–42. Received Presidential Board. Awarded Gold Key, 1929. Honorary Society, Citation. Alpha Sigma 1929, an editor of Yearbook,

American Red Cross (Task Force) 1942;

The following editorial appeared in the 1929. Howard University, LLB, 1932. Presserved in the Southwest Pacific Area (Aus

Seaboard Beverage Journal of November ident of Class, 1929–30, First Chief Justice,

tralia and New Guinea) and also with the 1963: Court of Peers, 1931–32. Student Instructor, M.T.O. (Italy and Corsica), as Club and Field

AN APPEAL TO COMMONSENSE 1931-32. Harvard University Graduate Director. Returned to the United States in The argument that has been used against School of Law, 1935–36.

late October, 1945. Both sons are veterans establishing a so-called independent ABC INSTRUCTION

who served with the Armed Services during Board empowered to make and enforce conInstructor, subsequently Professor of Law, World War II.

trol regulations for the District, never made Terrell Law School, Washington, D.C., 1938–


sense. No one came right out and said so 42, 1945-49. Also coached football, basket Was formerly member of the Masons in

publicly, but in plain language the principal ball, swimming and track teams, Pennsylvania; Mt. Pisgah Lodge No. 91, served

argument has been (1) that members of an BUSINESS as Treasurer and Senior Warden, St. Cyprian

independent Board would be more sus

ceptible to corruption than under the presEditor of the Uniontown Journal News- Consistory 32d Degree, Pittsburgh, Pa., Columbia Lodge No. 85, I.B.P.O. of Elks, Wash

ent setup, and (2) that this is an irresponpaper. Sports editor of the Washington ington, D.C., Pigskin Club, Washington, D.C.,

sible industry hellbent on corrupting everySun, Manager Francis Swimming Pools. Charter member, former president (five

one and everything it comes in contact with. General Manager Slade's Restaurants in Bosyears) and now Treasurer, Alpha Phi Alpha

Then, as a clincher, the recent New York ton.

Fraternity, Acting President Beta Chapter Liquor Authority scandal is cited.
1929, Royal Golf Club, D.C., former president,

In the first place, the word "independent"
Admitted to the District of Columbia Bar
National Golf Association, former legal coun-

as used in this connection, is misleading. It in April, 1933, also to the Bar of the United sel, Bachelor-Benedict Club, former presi

is contorted to conjure up the picture of States Court of Appeals for the District of dent, Mu-So-Lit Club, Member board of di

some arrogant, autonomous overlord connivColumbia, the Bar of the United States Disrectors, Washington, D.C., Affiliated Boards

ing with a crooked industry to make suckers trict Court, 4th District, the Bar of the of Athletic Officials, former president, Mid

of the consuming public. Nothing could be Municipal Court, D.C., and the United States City Association, Lincoln Club, Uniontown,

further from the truth. The proposal is Supreme Court. Pa., former president Oyster Harbor Civic

that the Commissioners would select and Member of the Washington Bar AssociaAssociation, Maryland, former president.

appoint the three Board members for 4-year tion, the District of Columbia Bar Associa

The N.A.A.C.P., formerly on national legal terms of office, as they do now. These Board tion, the Federal Bar Association, the Nastaff, the American Overseas Association

members would be removable for cause by tional Bar Association, the American Bar Association, the American Judicature Society, ganizations such as the Y.M.C.A., Boys Club, (American Red Cross), and several other or

the Commissioners, as they now are. And

the decisions of these Board members could the Howard University Law Alumni AssociaChurch Clubs, Etc.

be appealed under the law, which is a distinct tion, and the Harvard University Law Alum

improvement over the present system. ni Association.


The contention that an ABC Board not Entered the general practice of law in Member A.M.E. Church, Uniontown, Pa.,

directly “under the eye” of the CommissionWashington, D.C. in April 1933 and pracfrom childhood until 1935. Member Gal

ers would be more responsive to the greater ticed extensively in and before the Courts

braith A.M.E. Zion Church, Washington, pressure of the industry it controls, is not of the District of Columbia, including Juve D.C. since 1935, served for over fifteen years

only unadulterated hokum but an insult to nile, Police, Municipal, Supreme Court, later on the Board of Trustees, chairman of the

all upstanding citizens who have ever served known as the United States District Court for Board for three, now attorney for the Board on the Board, and a slap in the face to everythe District of Columbia, the United States of Trustees.

one who earns his livelihood in this indusCourt of Appeals, and also before several of


try. Of those who perpetrate this kind of the Administrative Agencies of Government Life-long Republican,

Republican, former Central claptrap not one in a thousand has even Agencies until October 1942. Up to that time State Committee, D.C. Republican and read the actual proposal in print.

This business of harping on the New York annual convention in Chicago, Ill., on this was not in the interest of sound governscandal is for the birds. Why not cite the 5th day of November, 1963, go on record as ment. Bobby Baker case? That's even more recent supporting the passage of H.R. 8920, which

Mr. MULTER. She objected to no and closer at home. Of course, the great will amend the Alcoholic Beverage Control drawback to that would be that the liquor Act of the District of Columbia and bring its provision of this bill. Nobody, neither industry couldn't be made the prime target provisions into compliance with alcoholic she nor anyone else, came before the of all the smears and guilt-by-association beverage control statutes prevailing in large committee to object to this provision. tactics now being used. It's not the setup metropolitan cities across the country; be it Mr. SPRINGER. In any event I give that has kept the District ABC Board free further

you whatever she said as the way I feel from any scandal, it's the type of people who Resolved, That copies of this resolution be that the blue ribbon committee would have served on that board. Are we to as sent forthwith to JOHN W. MCCORMACK, have acted if they had a chance to examsume that under the new system the Com Speaker of the House of Representatives; to

ine this. missioners wouldn't continue to appoint the Hon. JOHN L. MCMILLAN, chairman of the same type of upstanding citizens to the Board House Committee on the District of Colum

The second thing is fraudulent adverthat they have in the past? bia; and to the Honorable ABRAHAM J. MUL

tising. The gentleman has said here that I, for one, am proud to be a member of this TER, of New York, author of the bill.

there was all kinds of fraudulent adverindustry. For that reason, I deplore all this cheap, emotional argumentum ad nauseum

Under date of November 2, 1963, the tising. I have a report in my file here

from the District of Columbia Better Adwhich has been stirred up over what is noth

Restaurant Beverage Association of ing more or less than a new, commonsense Washington, D.C., wrote me as follows: vertising Bureau in which they cite over

2,200 complaints and they itemize the regulatory proposal to eliminate confusion

In keeping with a resolution recently complaints that came to them and not and place on a businesslike basis the task adopted by the directors of the Restaurant of properly and lawfully distributing al Beverage Association of Washington, D.C., I

one single complaint came to that adcoholic beverages to the public in this Na have been asked to inform you that the as

vertising bureau from the liquor industion's Capital.

sociation has studied and wholeheartedly en try or anyone complaining about adverIt is to be hoped that Congress will dis dorses your bill, H.R. 8920, to update the tising in the liquor industry. regard the prattle of all the sob sisters and local ABC Act. We believe this bill is both The Federal Trade Commission has angle shooters and give the people of the in the public interest and in the interest of

the right to supervise false advertising District a clean, modern, practical method modernizing an act which has not had major

modernizing an act which has not had major and has the right to prosecute the comof control, now that three decades have change since its enactment. elapsed since it enacted the original ABC Mr. Chairman, I reserve the balance plaint. My chairman has said repeatedly Act.

that the Federal Trade Commission of my time. RALPH CHASE,

would not do anything. I have talked Editor and Publisher. Mr. SPRINGER. Mr. Chairman, I

with the Federal Trade Commission to yield myself such time as I may consume. The following is a letter received by Mr. Chairman, I am going to try to

their complaint division-and they say me today together with the resolution answer three or four matters that have there has never been a single case sent referred to therein: been raised by my distinguished chair

down there of a complaint against liquor THE CONRAD HILTON, man. The gentleman made a statement advertising in the District of Columbia Chicago, November 5, 1963. here broadly that this bill satisfies the

that has ever been supported by any eviFROM ANNUAL CONVENTION NATIONAL LICENSED Citizens' Committee and their objectives. dence—not one single complaint. Those

are two big agencies—the Better AdverBEVERAGE ASSOCIATION May I say, one big objection is that the

tising Bureau of the District of Columbia Hon. ABRAHAM J. MULTER,

Citizens' Committee did not get a chance U.S. House of Representatives,

and the Federal Trade Commission that to consider this provision because it was Washington, D.C.

says there has never been a complaint not in last year's bill. The heart of the DEAR CONGRESSMAN MULTER: I am pleased bill this

year takes away from the Dis- filed. If there is a whole lot of false date by the annual convention of the Na- trict Commissioners the right

to super should have made

a complaint to one of tional Licensed Beverage Association favor- vise the activities of the ABC Board and

those two bureaus. ing passage by the House of Representatives removes from the District Commissioners

The distinguished gentleman from of H.R. 8920, which you have introduced to and transfers to the ABC Board the right modernize the alcoholic beverage law of the to write

regulations. This is the objec- Michigan [Mr. DINGELL) asked a ques

tion a moment ago about whether or not tion that Mrs. Gichner talked about. It H.R. 8920 has the full support of NLAB's was not even in the bill last year and, of

you could have price fixing by regulation 45,000 members in some 28 States, includ

of the ABC Board. That is exactly what ing the State of New York,

course, the blue ribbon committee did Respectfully yours, not get a chance to examine it.

they intend to do by removing the ABC ANDREW J. ZIOMEK, Mr. MULTER. Mr. Chairman, will Board from the jurisdiction of the Board

of Commissioners of the District of CoPresident, the gentleman yield?

lumbia. National Licensed Beverage Association. Mr. SPRINGER. I am sorry I cannot

Mr. MULTER. Mr. Chairman, will Whereas on October 29, 1963, the Commit- yield to the gentleman since I do not have tee on the District of Columbia of the U.S. sufficient time.

the gentleman yield? House of Representatives reported out of

Mr. SPRINGER. I yield to the gentlecommittee H.R. 8920, a bill introduced by the gentleman yield for a question, and

Mr. MULTER. Mr. Chairman, will

man on his time. Congressman ABRAHAM MULTER, of New York,

Mr. MULTER. Will not the gentleto modernize and update the Alcoholic I will yield 1 additional minute to him.

man concede that no regulation can be Beverage Control Act of the District of Co Mr. Chairman, I yield the gentleman issued by the District Commissioners or lumbia; and 1 additional minute.

by the Board unless such regulation Whereas H.R. 8920 constitutes the first seri

Mr. SPRINGER. I yield to the gentle comes squarely within the four corners ous effort in over 30 years to overhaul and man. modernize the archaic alcoholic beverage con

of the statute by virtue of which the trol law for Washington, D.C.; and

Mr. MULTER. Is it not a fact that Board or the Commissioners would have Whereas the passage of H.R. 8920 has been

ever since this bill was introduced on the authority to issue such a regulation. endorsed and recommended by the Restau- January 17 of this year, this provision The regulation must cover the subject rant Beverage Association of Washington, was in the bill making the Board inde matter as permitted by the statute. D.C., an affiliate of the National Licensed pendent?

Mr. SPRINGER. I would say they Beverage Association; and Whereas H.R. 8920 would bring the alco

Mr. SPRINGER. Yes, but you have to will have the power to regulate. If the holic beverage control law of the District of recall that the blue ribbon committee gentleman wants to say that they will not Columbia into conformity with similar laws which disbanded had only authority for have the power to regulate that is all governing most large metropolitan cities of the appointment of the Board of Com right, but I say that is what they intend the country; and

missioners to make a review last year, to do. Whereas the Alcoholic Beverage Control and it was disbanded in September 1962. Mr. MULTER. I assure the gentleAct of the District of Columbia is enacted

Mr. MULTER. Nevertheless, she still man that any lawyer will tell him a board by the Congress of the United States and is wrote you a letter with reference to this. can issue a regulation only if the statute sometimes cited as a pilot or model statute by legislators in the various States: Now,

Mr. SPRINGER. She did on her own, covers the subject matter that is to be therefore, be it

but she did not presume to represent the covered by the regulation. Resolved, that the members of the Na- blue ribbon committee. She objected There is nothing in this bill that pertional Licensed Beverage Association at their to this provision because she thought it mits any price fixing. I say it requires

a statutory provision directing delega- from New Jersey to the gentleman from Mr. MULTER. This is in the statute tion of authority to the Board before it Illinois and his request to pinpoint any today. There is no change made in this can do it. Not only is there no such pro- place in this bill where price fixing is language. This is intended to keep those vision in the bill, but now we make ex- specified and the fact that he could not who are engaged in this business doing press prohibition so that the Board can- point to it is evidence that there is no business in an honorable way. It is not not do it.

price fixing in this legislation. I would intended to be a price-fixing measure at Mr. SPRINGER. May I say the distin- simply like to say, and I think we should all. guished gentleman from Michigan [Mr. probably just lay it out cold turkey, that Mr. NEDZI. Perhaps it is not the DINGELL) in following this up, said that a lot of editorials you have been reading intentthe very language in this bill does “sub- are frankly inspired by one of the most Mr. MULTER. It has never been so stantially lessen competition” and it does parochial press operations, I think, in construed as to permit price fixing. prevent discounts, in my opinion. This America. They are simply scared to

Mr. NEDZI. Does the Commission at is the whole thing the editorials have death that they are going to lose a little the present time have the right to fix been pointing up, that is, the fact that bit of advertising. I think it is just that

prices? discounts cannot be made as they have plain and simple. Unfortunately, Wash

Mr. MULTER. It does not, and it been in the past. These are the real ob ington is blessed with some of the most does not fix prices. jections and the answers I have to what parochial newspapers in this Nation, and

Mr. NEDZI. I thank the gentleman. my distinguished chairman had to say their position in this matter and the edion these points. This is price fixing. torials they have written are completely

Mr. SCHWENGEL. Mr. Chairman,

I want the record to show that I supThe CHAIRMAN. The time of the selfish. gentleman has expired.

Mr. FARBSTEIN. Mr. Chairman, will
Mr. Chairman, will port the amendment by the gentleman

from New York (Mr. DEROUNIAN]-the Mr. MULTER. Mr. Chairman, I yield the gentleman yield? 1 minute to the gentleman from New Mr. MULTER. I yield 1 minute to the striking of the word “shall” on page Jersey. gentleman from New York,

48, line 5, substitute the word "may" Mr. JOELSON. Mr. Chairman, I take Mr. FARBSTEIN. Mr. Chairman, am

instead. this time to ask the gentleman from Illi I to understand that the colloquy that

When this matter was before the comnois a question or two. I have read edi- took place between the gentleman from mittee I voted for putting the word torials and received a statement from New York [Mr. MULTER), and the

[Mr. MULTER], and the “shall” in the bill believing that this was the gentleman from Illinois which con- gentleman from New Jersey (Mr. JOEL- consistent with Iowa regulation and law. vinced me to vote against this bill on the SON], will represent legislative history Upon investigation I found that Iowa ground of price fixing. Very frankly, I insofar as price fixing is concerned?

has not had this requirement for several am now confused as to whether or not By that I mean do we nail down the years. So my argument for this wording there is price fixing in this bill or whether substance of the question, the substance

was based on the wrong assumption. there is a prohibition against discount of the subject, that it is the intent of this On further study I find that Iowa's law selling. I would like the gentleman from legislation not to indulge in or to suggest enforcement has not become more diffiIllinois to point out to me exactly where price fixing?

cult because of the change. For this in the bill there might be price fixing or Mr. MULTER. Everything I said I reason and for the reason that the reprice control or a prohibition on reduced said having in mind that it is part of the taining of the word "shall” would tend prices on alcoholic beverages in the Dislegislative history on this bill, just as

to restrain under certain circumstances trict. I might say the newspaper edi- everything that is said on the floor is I think it desirable to make the law in torials flatly make this statement, but I part of the legislative history of any bill

. this regard consistent with the law and do not see it in the bill.

I do intend that it be part of the legis practices of other States and regulatory Mr. SPRINGER. Mr. Chairman, will lative history on this bill.

bodies. Also, as will be seen from the the gentleman yield?

One last word, and that is this: Ref- following excerpt from the regulations Mr. JOELSON. I yield to the gen

erence has been made to the fact that of the District ABC Board, they are evitleman.

the Attorney General and the Federal dently taking adequate precautions of Mr. SPRINGER. In my opinion, I Trade Commission have a right to re

the problem of law enforcement: think this is what the bill does.

ceive complaints of false advertising and Mr. JOELSON. I am not being hostile.

that they received complaints and found On and after December 1, 1961 each retail Mr. SPRINGER. I understand.

they were unjustified. The fact is that licensee shall print his retail license number Mr. JOELSON. But could the gen both last year and this year we made the in indelible ink, in figures not less than onetleman show me where in the bill this is

statements on the record that when the fourth inch in height, upon every immediate contained? Mr. MULTER. Mr. Chairman, may I false advertising in the District he reAttorney General got complaints against container of alcoholic beverage (except beer

containers and wine containers and spirits attempt to answer the answer the gentleman's ferred them to the Federal Trade Com

containers of less than 2 ounces) prior to question?

the sale or display of the same. The words mission and the Federal Trade CommisMr. JOELSON. Yes.

“immediate container" mean the bottle, jar, sion referred them back to the Attorney jug, or other individual container into which Mr. MULTER. If there is anything in

General and neither one would take any the liquid is placed by the manufacturer, or this bill which gives the ABC Board the

action on them. That is on the record the individual package sealed by the manuright to fix prices, it will give it to the

The Commissioners, and the same objection Attorney General or the Federal Trade and has never been refuted by either the facturer enclosing such container.

license number shall be printed by applies to the Commissioners. I say the Commission.

rubber stamp in contrasting ink directly District Commissioners under existing

on the principal label of the bottle, jar, jug,

Mr. NEDZI. Mr. Chairman, will the law have no right to fix prices, there is

or other individual container unless such gentleman yield?

container be enclosed in an outer individual nothing in this bill which will give to

Mr. MULTER. I yield.

package sealed by the manufacturer and disthem or to the ABC Board the right to

Mr. NEDZI. With respect to the played or sold in that condition, in which fix prices. Not one word. question whether this is a price-fixing

case the license number shall be printed on Mr. JOELSON. I will say to the genbill, I would like to refer the gentleman

such outer individual sealed package: Protleman this is one time where debate, as far as I am concerned, has had a very him just what is the meaning of this to section 7 on page 10 and inquire of vided,

That the foregoing requirements shall

not be applicable to holiday gift packages strong effect, because I came in here pre

prewrapped by the manufacturer. Each section where it says: pared to vote against this bill, and if

license number, whether placed on the label

The Board is hereby authorized to pre of the individual container or on the outer there is no price fixing in it, I am going

scribe such rules and regulations not incon sealed package, shall be so printed as to be to vote for it. sistent with this Act as it may deem neces

clearly visible and legible. Mr. MULTER. Mr. Chairman, I yield

Mr. Chairman, I yield sary to carry out the purposes thereof and 1 minute to the gentleman from Cali to control and regulate the manufacture, Mr. Chairman, for the above reasons fornia [Mr. SISK). sale, keeping for sale

and for other reasons, I support the Mr. SISK. Mr. Chairman, I take this And I emphasize sale; would the gen- amendment and the bill. time to indicate my strong support of tleman clarify this section in the light of

The CHAIRMAN. All time has exthis legislation. I think it is evident his previous statement that this is not pired. The Clerk will read the bill for from the questions of my good friend and cannot be a price-fixing measure? amendment.


The Clerk read as follows:

of which is money profit), owning, hiring, or for use primarily as a place for preparing, Be it enacted by the Senate and House of leasing a building or space in a building of cooking, and serving meals, and that a reaRepresentatives of the United States of such extent and character as in the judg- sonable amount of the revenue to be derived America in Congress assembled, That the ment of the Board may be suitable and ade from the operation of such place shall be District of Columbia Alcoholic Beverage Con- quate for the reasonable and comfortable from the preparation, cooking, and serving trol Act is amended to read as follows:

use and accommodations of its members and of meals and not from the sale of alcoholic "That the National Prohibition Act, as their guests, and including such space out- beverages.

“(15) The word 'sell' or 'sale' shall include amended and supplemented, insofar as it side of the building (including public propaffects the manufacture, sale, and possession erty) and adjoining it as may be approved offering for sale, keeping for sale, trafficking in the District of Columbia,' and the trans- by the Board, and provided with such suit- in, bartering, delivering for value, exchang

ing for goods, or in any way other than portation in, into, and from the District of able and adequate kitchen and dining room

purely gratuitously, and every delivery of Columbia, of alcoholic beverages, is hereby space and equipment, implements, and fa

any alcoholic beverage made otherwise than repealed, with the exception of title III, and cilities, and employing such a sufficient

number of employees for cooking, preparing, by purely gratuitous title shall constitute a section 4 of title II insofar as it affects de

and serving meals for its members and their sale. natured alcohol.

guests, as shall satisfy the Board that the "(16) The word 'tavern' means a suitable Mr. MULTER. Mr. Chairman, I ask sale of food is the source of a reasonable space in a suitable building approved by the unanimous consent that the bill be con- amount of revenue from such space; and the Board, including such suitable space outside sidered as read and open to amendment affairs and management of such corporation of the building (including public property) at any point.

are conducted by a board of directors, execu and adjoining it, as may be approved by the The CHAIRMAN. Is there objection tive committee, or similar body chosen by Board, kept, used, maintained, advertised, or to the request of the gentleman from and no officer, agent, or employee of the club the members at least once each calendar year held out to the public to be a place where

sandwiches or light lunches are prepared and New York?

is paid directly or indirectly, or receives in served for consumption on the premises in Mr. DINGELL. Mr. Chairman, at this the form of salary or other compensation, such quantities as to satisfy the Board that moment I have to object.

any profit from the disposition or sale of the sale of food is the source of a reasonable The CHAIRMAN. The Clerk

Clerk will alcoholic beverages to the club or to the amount of revenue of such tavern. read.

members of the club or guests introduced “(17) The term 'corporation counsel' The Clerk read as follows:

by members, beyond the amount of such means the attorney for the District by what“SEC. 2. This Act may be cited as the 'Dis bers, or by its directors, or other governing designated by the Commissioners to perform

salary as may be fixed and voted by the mem ever title such attorney may be known, trict of Columbia Alcoholic Beverage Control body.

the functions prescribed for the corporation Act. It shall apply only to the District of

(8) The word 'Commissioners' shall mean counsel in this Act. Columbia and shall not authorize the delivery of alcoholic beverages outside of the

the Commissioners of the District of Colum (18) The term 'light wines' means cham

bia. District of Columbia in violation of the law

pagne and wines containing 14 per centum of the place of delivery.

“(9) The word 'District shall mean the or less of alcohol by volume. “SEC, 3. As used in this Act, District of Columbia.

“SEC. 4. The Commissioners, within fifteen “(1) The word 'alcohol' means ethyl alco

"(10) The word 'hotel' means a suitable days after the approval of this Act, shall aphol, hydrated oxide of ethyl, or spirit of wine, building or other structure, approved by the point a Board of three persons, subject to from whatever source or by whatever proc

Board, including such suitable space outside removal only for inefficiency, neglect of duty, esses produced.

of the building (including public property) or malfeasance in office, to be called the (2) The word 'spirits' means any beverage and adjoining it as may be approved by the 'Alcoholic Beverage Control Board'. The which contains alcohol obtained by distilla- Board, kept, used, maintained, advertised, or Board shall be an independent agency of the tion mixed with drinkable water and other held out to the public to be a place where government of the District of Columbia. substances in solution, including brandy,

meals are served and sleeping accommoda Each of the members of the Board shall be rum, whisky, cordials, and gin.

tions offered for pay to transient guests; in a citizen of the United States and a resi“(3) The word 'wine' means the product

which thirty or more rooms are used for the dent of the District for at least three years of the normal alcoholic fermentation of the sleeping accommodations of such transient immediately preceding his appointment and juice of fresh, sound, ripe grapes, with the guests, and having one or more dining rooms have during that period claimed residence usual cellar treatment and necessary addi

where meals are served to such transient nowhere else, and shall be of good charactions to correct defects due to climatic, guests, such sleeping accommodations and ter and otherwise fit for the trust to be imsaccharine and seasonal conditions, includ

dining rooms being conducted in the same posed in him. Of the three persons first ing champagne, sparkling, artificially car- building or in connecting buildings, and appointed as members of said Board, one bonated and fortified wine. No other prod- such building or buildings, structure or shall be appointed for two years, one for uct obtained by the fermentation of the structures being provided with such ade-, three years and one for four years, and therenatural sugar contents of fruits or other

quate kitchen and dining room equipment after all appointments shall be for the term agricultural products containing sugar shall

and capacity and having employed therein of four years, except such appointments as be called 'wine' unless designated by tapo preparing, cooking, and serving meals for its terms. A member of the Board may con:

such number and kinds of employees for may be made for the remainder of unexpired propriate prefix descriptions of the fruit or other product from which the same was pre

guests as shall satisfy the Board that such tinue to serve until such time as his sucdominantly produced, or as artificial or imi- dining room is intended for use primarily as cessor shall have been appointed. Vacancies tation wine.

a place for preparing, cooking, and serving caused by death, resignation or otherwise “(4) The word 'beer' means any fermented meals and that a reasonable amount of the shall be filled by the Commissioners only for beverages of any name or description manu

revenue to be derived from the operation of the unexpired terms. Members shall be elifactured from malt, wholly or in part, or

such dining room shall be from the prepara gible for reappointment. The Commisfrom any substitute therefor.

tion, cooking, and serving of meals and not sioners shall designate one of the members “(5) The words 'alcoholic beverage' infrom the sale of alcoholic beverages.

of the Board to be chairman thereof. The clude the four varieties of liquor above de

"(11) The word 'manufacture shall in- positions of members of the Board shall be fined (alcohol, spirits, wine, and beer) and clude rectification,

classified in accordance with the Classicaevery liquid or solid, patented or not, con

"(12) The word 'meals' means the usual tion Act of 1949, as amended. The Board taining alcohol, spirits, wine, or beer and assortment of foods commonly ordered at is authorized to employ such persons as may capable of being consumed by a human

various hours of the day; and such food be necessary to carry out its functions unbeing. Any liquid or solid containing more and victuals as sandwiches and salads shall der this Act. The Commissioners are authan one of the four varieties above defined not be regarded as a meal.

thorized to employ such other personal servis considered as belonging to that variety

"(13) The word 'person' includes an in ices, including three additional assistant corwhich has the higher percentage of alcohol, dividual, partnership, corporation, and as

poration counsels, as may be necessary to according to the order in which they are sociation.

carry out this Act. The salaries of employees, above defined, except as provided in para

"(14) The word 'restaurant' means a suit other than members of the Board, shall be graph (3) hereof. The provisions of this sec able space in a suitable building, approved fixed in accordance with the provisions of tion and of this Act shall not apply to any by the Board, including such suitable space the Classification Act of 1949, as amended. liquid or solid containing less than one-half outside of the building (including public The Commissioners shall include in their of 1 per centum of alcohol by volume, nor property) and adjoining it as may be ap

annual estimates such amounts as may be shall anything contained in this Act be con proved by the Board, kept, used, maintained, required for the salaries and expenses herein strued as affecting the manufacture of apple advertised, or held out to the public to be a authorized. cider or the sale thereof. place where meals are served, such space be

"SEC. 5. No member or employee of the "(6) The word 'Board' shall mean the ing provided with such adequate kitchen Board, directly or indirectly, individually, or Alcoholic Beverage Control Board.

and dining room equipment and capacity, as a member of a partnership or association, "(7) The word 'club' means a corporation and having employed therein such number or stockholder in a corporation shall have for the promotion of some common object and kinds of employees for preparing, cook any interest whatsoever in dealing in, manu(not including corporations organized for any ing, and serving meals for its guests as shall facturing, transporting, or storing alcoholic commercial or business purpose, the object satisfy the Board that such space is intended beverages, nor receive any commission or


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