Down the Hatch

One day last year one of New York's liquor inspectors caught Manhattan Retailer Edward Sidney Levine with his Schenley Reserve down. Levine had slashed the price from $4.05 to $3.75 a fifth. That was less than he was permitted to sell it for under New York's "fair trade" law which, like price-fixing laws in 44 other states, permits manufacturers to set minimum retail prices.

New York's State Liquor Authority took away Levine's license for ten days. Levine cut prices again and the board again suspended him. After a third offense last March he lost his license.

Retailer Levine went to court. Like Florida's Druggist James ("Doc") Webb before him (TIME, April 18), Levine challenged the constitutionality of such price-fixing. Like Doc Webb, he won. Last week, in a unanimous decision, a five-judge appellate court threw the state board's price-fixing powers down the hatch. Unless the decision was reversed, there would soon be a wave of price-cutting all over the state. In July, 29 million gallons of aged whisky laid down right after VE-day would roll on to the market, ready to help the downward push.

In a similar decision last week, a New Orleans judge threw out the price-fixing provisions of Louisiana's alcohol control law, which compelled retailers to mark up whisky at least 33 1/3%, wines 40% and cordials 50%.

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