H.R. 684, a bill to amend the District of Columbia Alcoholic Beverage Control Act to prohibit false advertising in the District of Columbia relating to alcoholic beverages. - H.R. 2036, a bill to revise the District of Columbia Alcoholic Beverage S. 852, a bill to amend the District of Columbia Alcoholic Beverage Control Advertising Club of Washington, Henry Thornton... Hotel Association of Washington, D.C., Bourbon A. Dawes, executive vice 131 Krash, Abe, Esq., for miscellaneous retail liquor dealers.. 117 66 Upham, F. Bourne III, for National Brewing Co., American Brewery, Globe Brewing Co., Queen City Brewing Co., and the Cumberland Washington, D.C., Retail Liquor Dealers Association, Inc., Hilliard Schul- MATERIAL SUPPLIED FOR THE RECORD Advertising Club of Metropolitan Washington, Inc., Henry J. Kaufman, "Citizens' Committee To Conduct a Cooperative Study of the Alcoholic Beverage Control System," report to the Board of Commissioners dated Copy of bill draft entitled "A bill to amend the District of Columbia Alcoholic Beverage Control Act". Gray, Chester H., Corporation Counsel: Letter dated July 2, 1963, to Chairman Multer.. Memorandum dated April 16, 1963, from Frank E. Weakly, Memorandum dated May 13, 1963, from Frank E. Weakly, Tobriner, Walter N., President, Board of Commissioners: Letter dated February 4, 1963, to the Speaker of the House___ Letter dated June 6, 1963, to Chairman McMillan... Letter dated June 7, 1963, to Chairman McMillan with report Letter dated June 7, 1963, to Chairman McMillan, with report Tyson, James G., Alcoholic Beverage Control Board, letter dated July 5, 1963, to Chairman Multer, with memorandum enclosed... Hotel Association of Washington, D.C., letter dated June 3, 1963, to Chairman Multer from Norman M. Glasgow... Justice, Department of, Nicholas de B. Katzenbach, Deputy Attorney General, letter dated June 18, 1963, to Chairman McMillan, with Lynch, Robert E., letter dated June 13, 1963, to Chairman Multer- Restaurant Association of Metropolitan Washington, Inc., John S. Cockrell, executive vice president, letter dated June 7, 1963, to Chairman Mc- Washington, D.C., Retail Liquor Dealers Association, Inc., Hilliard Schul- berg, executive director, letter dated June 24, 1963, to James T. Clark, clerk, House Committee on the District of Columbia, with copy of letter to Chairman McMillan enclosed__. Washington (D.C.) Publishers Association, Lawrence W. Kennelly, execu- tive director, letter dated June 18, 1963, to Chairman Multer, with UNITED STATES OF AMERICA REVISE THE DISTRICT OF COLUMBIA ALCOHOLIC BEVERAGE CONTROL ACT TUESDAY, JUNE 11, 1963 HOUSE OF REPRESENTATIVES, COMMITTEE ON THE DISTRICT OF COLUMBIA, Washington, D.C. The subcommittee met, pursuant to notice, at 10:15 a.m., in room 445-A, Cannon Office Building, Hon. Abraham J. Multer (chairman of the subcommittee) presiding. Present: Representatives Multer (presiding), Schwengel, and Huddleston. Also present: Hayden S. Garber, counsel; Clayton Gasque, staff director; James T. Clark, committee clerk; Leonard Hilder, investigator; and Don Tubridy, minority clerk. Mr. MULTER. Good morning. I apologize for being late, and perhaps I can blame it on the weather and the airlines. I have been on the way here since 7:15 this morning. We have met this morning for the purpose of considering H.R. 684, to amend the District of Columbia Alcoholic Beverage Control Act to prohibit false advertising in the District of Columbia relating to alcoholic beverages, and H.R. 2036, to revise the District of Columbia Alcoholic Beverage Control Act. (H.R. 684 and H.R. 2036 follow :) [H.R. 684, 88th Cong., 1st sess.] A BILL To amend the District of Columbia Alcoholic Beverage Control Act to prohibit false advertising in the District of Columbia relating to alcoholic beverages 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 by adding at the end thereof the following new section: "SEC. 42. (a) It shall be unlawful for any person knowingly to disseminate or cause to be disseminated in the District of Columbia any false advertisement by any means for the purpose of inducing or which is likely to induce, directly or indirectly, the purchase of any alcoholic beverage. "(b) Any licensee under this Act who violates subsection (a) of this section with intent to defraud or mislead may have his license suspended or revoked after due notice and hearing by the Board, with right of review by the Commissioners, in accordance with the provisions of this Act. "(c) No publisher, radio broadcast licensee, or agency, or medium for the dissemination of advertising, other than the manufacturer, packer, distributor, or seller of the alcoholic beverage to which the false advertisement relates, shall be liable under this section by reason of dissemination by him of any false advertisement, unless he has refused on request of the Commissioners to furnish them the name and post office address of the manufacturer, packer, distributor, seller, or advertising agency, residing in the United States, who caused him to disseminate such advertising. No advertising agency shall be liable under this section by reason of the causing by it of the dissemination of any false advertisement, unless it has refused on the request of the Commissioners to furnish them the name and post office address of the manufacturer, packer, distributor, or seller, residing in the United States, who caused it to cause the dissemination of such advertising. "(d) For the purposes of this section the term 'false advertisement' means an advertisement, other than labeling, which is misleading in a material respect; and, in determining whether any advertisement is misleading, there shall be taken into account (among other things) not only representations made or suggested by statement, word, design, device, sound, or any combination thereof, but also the extent to which the advertisement fails to reveal facts material in he light of such representations." [H.R. 2036, 88th Cong., 1st sess.] A BILL To revise the District of Columbia Alcoholic Beverage Control Act 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. "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 process 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, artifically 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 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 kind 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, |