Knockout

By locating his store on a busy highway near the Indiana line and selling at cut rates, Meyer Jacob had become one of Chicago's biggest liquor dealers. But when the state legislature passed the Mandatory Fair Trade Act in July 1947, the state liquor commission tried to suspend his license for selling Penn Springs whisky 95-c- cheaper than the fair trade (i.e., minimum retail) price. Jacob kept his license while he fought the case through the courts.

Last week the Illinois Supreme Court threw out the Mandatory Fair Trade Act, the fourth time in six months that state courts have invalidated such laws. The court did not rule on the legality of price-fixing itself. It simply held that the Illinois law was so poorly drawn that it was impossible for "every person [to] know its meaning . . . and his rights . . ."

With his fight won, Jacob promptly began trimming his liquor prices again. This time he had plenty of company. Chicago department stores, Goldblatt's and Wieboldt's, slashed 96-c- off fifths of such bonded bourbons as Old Crow, Old Forester and I. W. Harper (new price $5.79), made lesser cuts on blended whiskies.

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