Governor Merwin's communication to the committee stated that I was rectifying Peruvian high wine. My process involved nothing but distillation and there was no rectification. My operation came clearly within the 50 percent rule of the organic act. Nevertheless, at Mr. Paiewonsky's personal instigation, an exception was made to this rule which was applicable to my product alone and to no other manufacturing operation in the Virgin Islands.

In order to clarify other apparent conflicts between Mr. Paiewonsky's testimony and my own, I wish to place on the record the licenses which I held and the operations in which I engaged in the Virgin Islands. During the period 1954 through 1958. I held a rectifier's license and produced wines and cordials through a rectification process. In 1955 and 1956, I installed distillation equipment but was unable to operate that equipment profitably because of the price at which I was compelled to purchase molasses. In 1959, I obtained a distiller's license and commenced the distillation of gin and a small quantity of rum. My rum distillation was unprofitable. In 1960, I also held a distiller's license and commenced the distillation of rum from the high wine base until I was compelled to abandon this operation because I was underselling the other distillers.

There are apparent conflicts between Mr. Paiewonsky's testimony and my own. Inasmuch as your committee is in a position to obtain confirmation of my testimony by placing under subpena Mr. Sebastian and others, and by obtaining reports from the Alcohol and Tobacco Tax Unit of the Internal Revenue Service, the U.S. Customs Service, and the Department of Commerce, I would appreciate a continuance of hearings in the Virgin Islands, as well as an eliciting of reports from the Government agencies concerned, not for personal vindication, but to demonstrate that the nominee is unfit to hold the office to which he aspires. AMANDUS M. BRAUER.

Subscribed and sworn to before me this 15th day of March 1961.

GERALDINE W. SHEFLETT, Notary Public.

[From the Daily News, St. Thomas, V.I., Feb. 26, 1960]

ALCOHOL BOARD HEARS DISTILLER'S COMPLAINT ALCOHOL IMPORT FROM PERU SCORED

The Virgin Islands Board of Control of Alcohol Beverages met yesterday afternoon to consider a complaint that a local distiller regularly imports inexpensive alcohol from South America and subsequently undersells other island distillerys' products on the mainland.

No statement was available from the board late yesterday afternoon.

A group of Virgin Islands distillery representatives met with Gov. John D. Merwin on Wednesday concerning the complaint. The group included Ralph Paiewonsky, Sidney Kessler, Gordon Skeoch, Harry Rosenbloom, and Ben Bayne. Sunlit Tropical Fruit Products, Ltd., has been mentioned as the distillery refining the imported alcohol from Lima, Peru. The product reportedly has been underselling and lowering the market values of the rum produced by distillery representatives who met with the Governor.

Although A. M. Bauer, head of Sunlit was unavailable for comment yesterday afternoon, a spokesman denied that the firm had imported alcohol from Peru. The local collector of customs office yesterday declined to reveal the name of a possible importer from Peru, citing a Federal law which prohibits the release of such information.

(Whereupon, at 4:30 p.m., the committee was adjourned.)

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