Free Beer

Maryland's Governor Theodore McKeldin struck a strong blow last week for freer Canada-U.S. trade. Despite heavy pressure from the brewing industry in his state, the Republican governor vetoed a bill passed by both houses of the general assembly (TIME, March 19) to bar the Canadian-owned Carling Brewing Co. Inc. from building a $12,000,000 brewery in Maryland.

In a 4 1/2-page veto message Governor McKeldin rejected the argument that the fast-growing Carling company, which has risen from 62nd to eighth place among U.S. brewers in the past seven years, might force Maryland brewers out of business. He cited letters from Governor Frank Lausche of Ohio, where Carling's head office is situated, praising the company as "a good citizen," and from the mayor of Cleveland, describing Carling as "an asset to Cleveland." Said Governor McKeldin: "If there is danger of unfair practices . . . the remedy should lie in the strengthening of existing laws--not in barring an enterprise because of its record of success in competition."

McKeldin saw some merit in the local brewers' objection to the high Canadian tariffs on U.S. beer, but he refused to ban Carling's in retaliation. "I frown upon restrictive tariffs maintained by this country and others," said Free Trader McKeldin. "However, American leadership toward the elimination of such trade barriers, would not be helped by similar acts of shortsighted contrariness."

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