Fills Shots for Black Market Fight
WASHINGTON, D.C.—The Office of Price Administration (OPA) yesterday announced plans to curb what it calls a black market in diminishing supplies of spirits for consumption. The move comes on the heels of accusations last week by Andrew Jackson May, democratic representative from Kentucky, claiming four large distilleries in his state are engaged in violations of price ceilings. May claims these “big four” distilleries are buying up the smaller distilleries in the state and using their outputs to net illegal profits. This is done by discontinuing lines of low-priced whiskeys and substituting higher-priced lines made by blending bourbon blended with neutral spirits. Deputy price administrator J.K. Galbraith sent a letter to Representative May outlining the OPA’s plans for setting profit margins for wholesale and retail whiskey and establishing flat prices for new blends of the spirit. Galbraith confirmed that one of the distilleries against which May levied accusations is “…now under investigation for its sale of ‘cut whiskies’ at higher prices…”.