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PRC
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PROHIBITIONandCOMPENSATION
«.« ««
^^{^"W"^^
1S::>"(
PROHIBITION AND COMPENSATION.
.j»i-
While the question of prohibition has been exhaustively discussed all ovei* tl;o
country, another question which is inseparable from its just and fair consideration has
received but scanty attention, either from legislators or electors, — namely, that of Com-
pensation. *
The whole scheme of prohibition is founded on the principle that the rights of
individuals should be made subservient to the ))ublic welfare.
It cannot bo denied that the numufacture and sale of liquor are lawful rights until
restrained or forbidden by the Legislature.
Why does the law restrict or take away these rights I It is not because there is
anything abstractly wrong in the trade, but because the consequences of it have proved
injurious to society. If no one used liquor to excess, prohibition would never have been
heard of. • Many persons, it is true, assert that even the moderate use of intoxicants is
rather injurious than bi neficial. But the same opinion is entertained in respect to tea,
coffee and tobacco; and yet we never hear anything said about prohibiting these latter
articles. The reason for interfering with the sale of liquor is that if it is sold without
restriction, it will inevitably be used in excess, and that, when so used, it becomes a
public evil. If intoxication were unknown, and liquor were used in moderation only,
no attempt would be made to abolish or even restrict the right of manufacturing and
selling it. Why, then, is the attempt male to restrict or take away the right of selling
it, even to those who do use it in moderation only 1 Because it is impossible to prevent
its sale to those who use it in excess, without also preventing its sale to those who use 't
in moderation. In other words, the rights of individuals arc compelled to give way to
the general good.
It would be wrong to take away those rights, if the evil could be remedied without
resorting to such stringent measures. Neces^sity is the only justification. The gravity of
such measures will never be lost sight of by thoughtful men. It is well described by
that very able writer, Mr. Cooley, in his valuable work on " Constitutional Limitations."
He observes at page 728:—
" The trade in alcoholic drinks being lawful, and the capital employed in it being
" fully protected by law, the Legislature then steps in, and, by an enactment based on
" ycnoral ro;i«ons iA' |»iil»lic utility, jiiuiiliihitcs tlic tr,illie, di^atioys altc^otlicr the tmitloy-
" lucnt, and reJuces to u nominal valuo tlie |)ioi»city on hand. Kven tho keeping of that
" for tlic purposo of walo hccomos a criminal offence; and, witl out any change whatever
" in his own conduct or employment, the merchant of yesterday becomes the criminal of
'• to-day, and tho very building'in whieli lie lives and conducts the business, which to that
" moment was lawful, becomes tho subject of legal proceediiigs, if tlie statute siiall so
" declare, anrl liable to be proceeded against for a forfeiture. A statute which can do
" this must be justified upon the highest reasons of public benefit; but whether satisfac-
" tory or not the reasons address themselves exclusively to the legislative wisdom."
» •
It is to that legislative wisdom that these observations are addressed.
When a brewer or distiller under the protection of law invests §20,000 in a building
and machinery adapted to the manufacture of liquor, and almost worthless for any other
purpose, it is not his object to sell his products to drunkards, any more than it is the
object of the farmer, in selling his l>arley and rye, to be instrumental in causing drunk-
enness to which that barley and rye in all probability will ultimately contribute. His
object is to sell to those who will buy. A large proportion of those who use his
liquor use it in moderation, and, to that extent, his business is harmless. But, because
some of those who use his productions use them in excess, and jjublic injury is thereby
caused, that portion of his business which is harmless must be, taken away along with
the rest, because it is impossible to separate them. But if we grant that the public good
demands this, does it follow that the public good demands that the brewer or
distiller should bear the loss thus caused ? That is a very different matter. The
pi'operty which cost him $20,000 is now worth 85,000. He has given up
.$15,000 for the public benefit. He has not done this voluntarily, but by com-
pulsion of law. This sum has not been taken from him as a penalty for any
offence. His business was just as lawful the day before the Act passed as that
of the dry goods merchant. He had even the express license of the Government, and the
expenses of the protection afforded by Government to all other lawful trades was ])artly
paid for out of the earnings of this one which has suddenly become unlawful. Tiie natuie
of the transaction is too plain to be disguised — §15,000 has been taken from the indivi-
dual against his will for the public benefit. The promoters of prohibition all contend
that one effect of it is to add immensely to the public wealth. Kvery time a brewer or
hotel-keeper is impoverished by his pi'operty being rendeied worthless or nearly so, the
public is correspondingly enriched. On what principle have the public a jight to enrich
themselves at the ex])ense of these individuals ? It can only be upon the principle tht\,t
once the law comes into force, it makes them criminals ex post facto, and their property
liable to confiscation. This doctrine is ond which many prohibitionists advocate and
seem quite ready to father, but which no legislature ever can.
rule
3
; cmploy-
ig of that
whiitcvor
iminiil of
ill to that
3 shall so
h can do
• satisfac-
n."
I buikUng
any other
n it is th(j
ng drunk -
•ute. His
use liis
it, because
is thereby
dontj with
ublic good
vewcr or
ttcr. The
given up
bv com-
for any
I as that
it, and the
w'AH partly
1io natui V
10 indivi-
II contend
brewer or
rly so, the
to enrich
iciple thi\,t
r property
vocatc and
It is iiupobsiblo to find any other principle which can be accepted by h'gislators as a
tiiie basis for this kind of law, than the very same fundamental doctrine on which is
founded the right ot the pultlic to compel the owner of land to give it up for a public road
or public buildings, namely, that pri\ate rights must be given up, when necessary for
the public benefit. This, however, does not mean, and never from the earliest times has
been construed to imply, that the public ai'e entitled to the benefit at the expense or to
the impoverishment of the individual. When the public takq from a man against his
will an acre of his land, and pay him the full value of it, they still deprive him of his
right. His right is to keep his land. This right must be given up, because it is
necessary for the public benefit. But it is not at all necessary that ho should lose the
value of his land. The public can, and must, pay him that, because there is no necessity
to deprive him of it.
Chancellor Kent on page 330, vol. 2 of his commentaries, shortly states the universal
rule .' law in these words : —
" The settled and fundamental doctrine is that Government has no right to take
" [)rivate property for public jjurposes, without giving just compensation."
It may be said that the property of the distiller, tlio brewer, or the hotel-keeper is
not taken by Government. Literally speaking, this is true. Government does not take
away the property ; it only takes away the object of its existence. It merely says, " You
" must not use this property for the only purpose for which it is of any use." A similar
argument, though not quite so untenable as this, has been used by Railway Companies in
appropriating lands for the construction of their lines. They have said : " For the land
" we actually take we are bound to pay, but for land which we only injure and depre-
" ciate in value, we arc not bound to pay anything." In a number of the American
Slates this contention, unjust as it is upon the face of it, has found favor with the Courts.
It is, however, condemi\ed in clear language by an American legal author of eminence,
Mr. Sedgwick, who, on page 462 of his work on Statutory and Constitutional Law, after
stating the decisions of the Courts in iNIaine, Pennsylvania, Massachusetts, and Connec*
ticut, proceeds as fqllows : —
" In Vermont, too, the course is to limit the compensation to damages sustained by
" the actual taking of property. All other loss sustained by individuals comes under the
" head of damnum absque injuria, or under the head of sacrifices which individuals must
" bear for the common benefit."
" To differ from the voice ot so many learned and sagacious magistrates, may almost
*' wear the aspect of presumption ; but I cannot refrain from the expression of the opinion
" that this limitation of the term * taking ' to the actual physical appropriation of prop«
city, or a ilivcsting ul' tJiu title, is, it scciiis to lue, (uv too imiiow a conatructiou to
answer the purposes of justice, or to meet the ilcniands of an equal administration of
the great powers of (lovernment."
" The tendency under our system is too olten to sacrifice the individual to the
{'omnumity, and it seems very difficult, in reason, to show why the State should not pay
for proiterty of which it dpjtroyn or mpnirK the value, as well as for what it physically
takes. If, 1)y reason oT a conaeqwintinl damage, the value of real estate is positively
dim'unshal, it doeu not ji[)pear arduous to prove that in point of fact the owner is ihjrrivrA/
of ]/ropcrti/, though no particular iiiecc of property may be actiially taken."
When we observe the narrow construction placed by the States referred to upon the
broad and comprehensive rule laid down by Chancellor Kent, we cannot wonder that
those of them which have adopted prohibitory laws have failed to provide a scheme of
compens-ation. A due regard for consistency precluded them from doing so. The Par-
liament of Canada, however, avoiding the tendency condemned by Mr. Sedgwick, has
clearly provided by its Railway Acts, that companies shall pay compensation, not only
for land they actually take, but also for land the value of which they depreciate. A like
due regard for consistency, therefore, will constrain this Parliament to depart from the
American doctrine, in the one case as it has already done in the other, and to place upon
the same fundamental rule of law the same equitable and enlightened construction in
regard to one class of claims which it has placed upon it in regard to another class.
When the British Government abolished slavery in the West Indies, much as the
sclieme was ciiticized in its details, the strongest op\)oncnts of the Govei-nment did not
question the justice and propriety of i)aying compensation to the slave owners. In the
United States none was paid, because abolition with them was a war measure, just the
same as the confiscation of any other property, or any other step thought expedient for
the defeat of the enemy. Doubtless this confiscation now under discussion is also
regarded by its advocates as a war measure; but that warfare is a moral one. The
Government of Canada has no war with those lawfully engaged in the liquor trade. It
will be remembered in this connection that three years before the famous thirteenth amend-
ment was passed by the United States, a proposition was nuvde to the loyal slave States
for the abolition of slavery on the basis of compensation by the Federal Government, and
was rejected. But how much weaker was the claim for compensation in the case of slavery
than in the present case ! The liquor trade is attacked on account of its couseqtiences.
Slavery on the other hand was founded on a /also principle, and was wrong and wicked
in its very essence. Trile the proj)erty in slaves had been recognize'd and protected by
law, but not more so than the property and traflic in liquor, and there is this difference
between the two, that the liquor trade, like the grain trade, being inherently lawful,
requires no legislative sanction to authorize it; while the slave trade, ba.sed on the false
I
I
5
islnicliou lu
listration of
dual to the
)uld not pay
it physically
is positively
r is dejyriveJ
to upon the
wonder that
a scheme of
I. The Par-
idgwick, has
on, not only
ftte. A like
irt from the
> place upon
struction in
class.
nuch as the
ent did not
irs. In the
ire, just the
tpedient for
ion is also
I one. The
r trade. It
mth amend-
slave States
nnient, and
e of slavery
ntsequences.
and wicked
rotected by
8 difference
tly lawful,
on the false
and monstrous assertion by man of property in niun, was inhcn-ntly unlawful, ami to
legalize it was uftra vires of any human legislature.
It may be said that in various trades and maiiufacturcs valuable property may at any
time be in like manner ileprociated by the action of the fJovernment in altering the
tariff, but that it would be an unheard of thing to compensate the owners of such pr()j)erty.
The radical difference Ijetween the two eases is that, in regard to the taiitl", the (Joveni-
ment, in estal)lishing a protective duty, confers a benefit whicli it is not bound to confer
upon the trader or manufacturer interested, and is not bound to continue that benefit any
longer than appears con.'iistent with the public interests. It never was a right; and the
power which created it had authority to abolish it. There is a va.st differencD between
doing th'\t, and taking away a right it never created, but which e.xisted indejiendently of
it.
This Act has been adjudged by our Court of last resoi-t to be a valid and constitutional
one. While l)Owing to that decision we may still be permitted to doubt whether the mode
j)rovided f(n" bringing it into force is such as our constitution contemplated. In the case
of RuHsell vs. The, Qut'tn one ground of attack upon the Act was that it relates to a
matter of merely local concern, and was t!u'r(ipon the authority conferred upon it by the B. N. A, Act to legislate for the regulation
of trade and commerce. The .ludicial Committee of the Privy Council seem t3 have
preferred to base it upon the power conferred upon Parliament to legislate for the peace,
order, and good government of Canada. Certainly in view of the motives actuating the
promoters of it, and the avowed object contained in the preamble, the Act appears to have;
moro'affinity with peace, order and good government, than with trade and commerce. It
is rather a movement of temperance reform than of trade reform. Did, then, the Parlia-
ment of Canada enact this law because it decided that the provisions therein contained for
the prohibition or restriction of the liquor traffic were necessary for the j^eace, order and
good government of Canada \ No. It only decided that it was expedient to allow those
provisions to Ik3 put in opemtion in any county, if the electoi-s of that county shoidd
decide it to bo nece.s.sary for the peace, order and good Government of that county.
Kuw, if Purliuiiient liiiM a juac right tu dtilogtitu this dcciHiun, that right iiiuHt Hiut^ly
he subject to two conditions:—
Ist. That the electors to whom the delegation is made embrace all those electors who
are directly affected by tlie decision.
2nd. That the decision of the cuiestioii mn«t bo delegated in such ti manner that it
may 1)6 decided npon its merits.
As to the first of these conditions, legislation of this kind was entrusted to the
Parliament of Canada; and if that body exercised its judgment, and rendered its decision
upon the question, whetlier it did so in reference to the whole of Canada, or only a single
County it would equally be acting on behalf of, and with authority from all those
interested in or affected by, that decision, because it represents the whole people of
Canada, But if Parliament does not dcsii-e to exercise its own judgment or give its own
decision, but to surrender or delegate that decision, it must surely surrender it to all, and
not a part only, of those on whoso behalf it would have acted in deciding, if it had cliosen
to decide at all, in order that they may determine the question for themselvoK; or at least
it must delegate the decision to all and not a part only, of those elc^tois who will be
directly affected by it. But do the electors of any County embrace all the electors who
are directly affected by the bringing of the Act into force in tii.a County; and will the
majority of the electors of that County necessarily form the mnjority of those
electors who are thus affected, and will the majority of the votes which may
be cast necessarily constitute a majority of the votes which would be cast, if all the
electors affected by the decision were electors of that particidar County 1 By no means.
Instances can easily be given which show the contrary . Take the ease which often
occurs of a hotel situated in a very thinly settled locality but on a leading road frequented
by travellers between two centres of population. Tt depends upon this through ,travel
for its support, and affects, and is affected by, the few people living in its vicinity to an
almost inappreciable extent. The fate of this hotel may be decided by the passing of the
Act in the County where it is situate. At all events those who will bo affected by the
operation of the Act upon its business are mainly, besides the hotel keeper himself, the
travelling public, many of whom are electors of other Counties, but not of this- one, and
who therefore have no voice in the decision of the question which thus af!ects them. Take
again the case of a hotel standing near the boundary between two Counties,
The County' in which it is situate may have passed the Act, and the adjoining one may
have refused to do so. The great majority of those who live near tliLs hotel may bo
residents of the latter County, and have votes there, but not in the other. In that case
the majority of those electors who are affected by this hotel and its business may very
probably he electors who have no voice in and are opposed to a decision \yhich may have the
effect of closing that hotel. Other instances of a similar nature might be given,
^nd thoge which have been given may occur in sevoial different localities in the
\
sunn
act
of t
fron
witl
relia
affec
nuiHl Hurtily
electors wlio
Minor that it
listed to tlie
1 its ilocision
only 11 single
m all those
lo people of
give its own
it to all, and
t had fhosen
■■; or at least
who will lie
electors who
and will the
y of those
wliich may
t, if all the
y no means,
which oftci;
1 freqiipnted
ough ,travel
cinity to an
ssing of tho
icted by the
himself, the
lip one, and
hem. Take
Counties,
ig one may
)tel may bo
n that case
? may very
ly have tho
; be given,
ics in tho
saiiic county, it si'cuis unite clfar, tlitm, I lint the decision of the nucstiun wIiclIut ilie
tuct shall le lirought into force in any county, is delegated to some only, ami not to all
of tho electors who arc directly all'cctcd by it. I'arliamont, in desiring to relieve itself
from the decision of the ([ucstion whether \lie jniblic good demanded lliis interference!
with private rights, intended to substitute for the e.xerciso of its own judgment, the
reliable guarantee which would bo afforded by a majority of the votes of all the electors
)^ affected by the decision, who chose to vote. It is now .seen that the machinery provided
' fails to secure any such guarantee; and a litth* consideration will convince any imjiai-tial
Uiind that any system will fail to do so which admits (>f o\w county having the law in
force within its own limits, and yet being Kuriouuded on all sides liy counties which liavci
it not. It may b<' said that many things which are done within tho limits of a particular
county more or less affect the electors of other counties, such as the construction, main-
tenance or closing of roads which may be used by the electors of other counties who yet
have no voice in regu;.' to them. The answer is, that these are juirely local matters,
attached to tlic territorianimits of the county; whereas, the very e.xistenc of this net was
only preserved b\ stablishing th'' ;-rop()sition that its subject matter is in no sense local,
but, on the conLiary, of gem al and national application ami concein. If this be true,
where is tin consist(!nc\ in allowing a vote; upon the (|uestion to a man who lives on one
side of a road or cvci'k, ;ind refusing it to another man, e Or would it be unreasonable for (jovernment to say that, as it is
uncertain whether the injury done to private property is really necessary for tho public
good, because it is uncertain whether a majority of those who were fairly entitled to
expiess an opinion, and would have done so if they had been allowed, have pronounced it
to be so, therefore compensation shall lie paiil for the injuiy to private lights which n)ay
possibly have been done, without that public necessity that alone (ould justify it ? This,
of course, would not be the logical remedy. That would bo of a much more sweeping
nature. But it would be at least a nearer ajiproach to what is fair and just.
I Then, as to tho .second condition, is the question submitted to the electors in such a
I way as to enable them to decide it upon its merits ? It appears to have been intended
I that the principle should be affirmed by the electors, and the details provided for by Par-
liament. The principle involves two questions. — 1st. Shall private rights be thus intei-
fcred with for the public benefit ? 2)i20 taverns out of r»,29l*, the total number licensed in Ontario
9 •
for the years 1882-3, was $2,900. Assuming the leniaiuing taverns to be of the same
average value, which is only reasonaMe, the total assessment of hotel proi)erty throughout
Ontario is say $10,000,000.
It is well known that the assessment of propeitics throughout Ontario is, as a rule,
only from one-third to one-half of their actual value. In cities, notably in Toronto, it is
somewhat higher. A fair average would probably be about one-half for the whole
province. Now, assume the depreciation in the value of these properties to be one-half of
their assessment value. If this turns out to be a large estimate, so much the better for
all parties concerned. Then the total amount to be raised to pay off the loss caused by
this depreciation would be $.1,000,000, which extended over a period of twenty years,
with interest at 5 per cent., would require the raising of an annual sum of $401,500. As
the total assessed value of property in Ontario is $050,000,000, the rate which would
be necessary to meet this annual sum would be "017 of a mill on the dollar. To put the
matter in another way, as the total population of Ontario by tlio last census was near two
millions, the late required would be 20 cents per iir.-id.
Then let us take a single county liy itself — say tin; County of Caileton. The num-
ber of hotel-keepers in that county, according to the License Inspector'.s returns for the
year 1 883, was 40. The total assessment of their property was, as shown by the returns
from the municipal clerks, $30,920. The total assessmrnt of the county was $8,094,240.
The amount of depreciation computed on the same Viasis as above would be $18,400.
Now, to raise that sum by debentures, payable in equal instalments of principal and
interest during a period of 20 years, with interest at 5 percent., would require the annual
sum of $1,481, which would involve a rate of -IS of a mill in the dollar on the total
assessment of the county, A fair average assessment for a farmer in that county would
probably be about $1,250, farm property not being assessed as a rule higher than about
one-third of its value. A faimer whose jiroperty was assessed for that amount would thus
have to pay 25 cents every year for 20 yeais.
Phall we be asked to believe that any man who sincerely desires prohibition would
vote against the Act rather than submit to such a burden as that ? This whole move-
ment takes its rise from a desire for moral reform. Many wise and earnest advocates of
total abstinence believe that the condjat should be confined to the moral arena. No
doctrine is more frequently preached than the duty of moderate drinkers to voluntarily
abstain as an act of self-denial incumbent on them for the good of weaker men, who are
led by their example to indulge in liquor, while lacking the strength to imitate their
moderation. The strongest supporters of the Act admit the serious character of the ta.sk
involved in its enforcement after it is passed, and the most experienced and practical
among them agree that it is a \OYy vital point to have the moral .sense of the iieopk- in
. 10.
its favour. A moral sense sufliciently keen to be of any assistance in the enforcement of
the Act involves self-denial. In the excitement of a campaign, and the enthusiasm ot
public meetings it may be easy to express noble sentiments and assert heroic resolves.
But after the Act is carried, and the excitement has cooled down, it will require an effort
of self-denial for private individuals to render assistance in the overy-day enforcement of
the law, without which assistance, experience shows, such enforcement is impossible.
Revolutions are too often marked by plunder and spoliation, but true reforms are always
dignified by the contrary features of self denial and self-sacrifice. Then surely we shall
not be told that this measure is being carried by the votes of men who, not desiring to
indulge in the use of lirpior themselves, aim at bringing about general abstinence tlirougii
the self-denial of others now using it in modeiation, and by the legal injury of other men's
property, but who, the moment it is projjosed that they themselves, even to the trifling
extent above indicated, shall particij)ate in the self-denial which they preach, will abandon
the principle tliey -have been advocating I If this were true, it would l)e unjust that
rights of property should be left exposed to the mercy of men of that stamp. It would
1)6 much better in the interests of temperance itself, that the Act should be defeated by
the defection than canied by the assistance of those men, ft would be the strongest
proof that the moral sense of the connnunity was noc such as to afford the Act any
promi.se of that support, without which the most earnest eilbrts to enforce it would be
vain ; and no tinaiqier of him.
The direct operation of the Act upon him tends to make him a criminal. lie feels
that he has been oppressed, and bitter hatred, and a desire for revenge — fruitful sources
of crime — rankle in his breast. You have treated him as if he were a criminal ; and he
feels justified in keeping up the character. Thu.s you have raised iq) a desperate class of
sworn enemies, to law and to society. But ai>art from this, the very state of poverty he
is left in affords him no alternative between violating the law luul allowing his family to
starve.
II
19
Here, then, >vc have a law niming at the abolition of crime by the prohibition of a
traflSc, which directly and indirectly causes that crime, actually producing crime by its own
operation in the very same direct and indirect modes attributed to the traffic it prohibits.
Moreover, as every ?ale of liquor implies a purchaser, and every violation of the law
u corresponding want of success in enforcing it, it follows that the moi*e of the one kind of
crime it creates the less of the other kind has it abolished.
But, further, the advocates of prohibition fairly contend that the disastrous effect of
the excessive use of liquor in pixducing poverty does not end with the mere impoverish-
ment of these individuals and their families, but that it also deprives the country of a
source of wealth which would accrue to it irom the industry of those whose energies are
now paralysed by drink. How much wiser, then, would it be to devote the money
which would otherwise be required for the detection, prosecution and imprisonment of
these offenders, to the payment of a reasonable compensation, such as would enable them
to embark in some lawful occupation, and thus at the same time remove the most danger-
ous obstruction to the successful woiking of the Act, and change a source of national
poverty into an element of public wealth. As a mere matter of money, then, is it not
reasonable to expect that this policy of compensation is one which will jiay fm- itself?
Nor must it be forgotten that many others besides thse persons themselves will be
more directly affected than the jiublic in general. Merchants, money lenders, and others
have had transactions with Ihem on the faith that they were dealing with men whose
rights and property, like their own, were respected by the law. When the claims of
these creditors are swept away in the general ruin, their enthusiasm and moral support
are not likely to be enlisted on the side of a policy which thus involves injury, and
loss to those who on no theory can be hold to have deserved it.
Add to the.se another class, and not a small one, comprising those who have no very
strong convictions on the prohibition question, but who take an intelligent interest in all
that concerns the welfare of society, and would be ready to give their influence to encour
age the experiment, if they saw good reasons to believe it to be a safe and practicable
one. Not being men of extreme views, however, they see only injustice in the injury ot
private property without compensation, which zealous prohibitionists regard as a well-
merited punishment upon those who have been engaged in a reprehensible occupation.
These men, if they do not actually take sides against the adoption of the Act, will look
coldly upon all proceedings to enforce what they deem in that resjiect an oppressive law.
In this way, the moral support of a class of men, whose influence is not to be despised,
because it is not loudly exerted, will be estranged. Deprived of the supi)ort of men of
moderate views, the Act will be left exposed to the odious charge of having to depend for
its enforcement upon the exertions of extreme partizans, who may be supposed to be
actuated more by a desire for the triumph of their own opinions, than by a spirit of
impartial justice.
On the wliolo, then, in view of the public iujuty which would result from the trial,
and failure of the experiment, it is the clear duty of Parliament to annex to that trial a
condition which cannot endanger, and which there is so much reason to believe will
greatly contribute to its success, and which, if it do not make the experiment successful,
will at least prevent it from being unjust.
If it be suggested that advice in regard to policy must lie regarded with distrust,
when coming in the form of a plea for those who are naturally opposed to the principle,
we answer, firstly that the important question is whether the arguments here used aio
sound, and not from what source they come ; and secondly, that to the large mass of those
on whose behalf they are urged, the failure of the experiment could bring but little satis-
faction, since the mere ti'ial of it will be quite sufficient to ruin them. They are shrewd
enough to see that it would be far more to their interest, in consideration of reasonable
compensation, to withdraw all opposition to the Act, and even give bonds not to violate
it, than to cling to the hope, first of defeating it, and, failing that, then of evading its
provisions.
It is sometimes 'emarked that those at all events who have engaged in the tratRc
since the Act was passsd by Parliament have no equity in this matter, becuuse they in-
vested their means with their eyes open, knowing that the electorate were clothed with
authority to bring the Act into force at any time they chose. But this argument might
just as well be extended to those who embai'ked in the business before the Statute was
enacted at all, because they knew perfectly well that Parliaujent had power to pass such
an Act at any time it might see fit to do so. Besides, such a contention does violence to
the elective principle on which the Act is based. If the mere existence of the Act upon
the Statute book should deter persons from entering into the business, and could be used
as an argument to defeat claims otherwise valid, then it would practically to some extent
be brought into operation without consulting, and possibly against the will of, the electors,
although the Parliament which enacted it expressly declared that it should not come into
force without the electoral consent.
For these reasons jit is urged that the Act calls loudly for immediate amendment in
the following respects.
1st. By providing that every Municipality which adopts the Act shall make pro-
visions for raising and paying a fair compensation to all hotel or tavern keepers within
its limits, for the depreciation in value of their property caused by such adoption, some
proper mode to be prescribed for determining the fact of the depreciation and the an)ouut
which should be paid.
2nd. By providing for the ultimate compensation of the manufacturers of liquors,
tlwit an estimate shall be made of the value of their property now devoted to the purpose
u
of manufacturing anil no further liconscs for such manufacture to bo granted. It in {iro-
poseil that the total value of these properties shall be clistributocl over the various munici-
palities in Canaila, in proportion to their respective i)oi»ulations, wherever a municipality
adopts the act, it shall provide for the raising of its shave of the general value, which
amount shall be deposited with the Government, and the interest thereon distributed
amongst these municipalities in proportion to the amount which they can show the \n-o-
perty within their limits has been effected by the adoption of the act therein. When
eventually the Scott Act becomes generally adopted (if that shall take place) and it is de-
cided to introduce prohibition properly so called, those municipalities which have not then
contributed their share, shall forthwith contribute the same which shall be applied by the
Government in liquidation of the loss sustained by the various municipalities.
3rd. By providing that the Act shall not come into force in any ihunfcipality, unless
a majority of those entitled to vote are in its favor.
4tli. If, however, the second amendment be found impracticable, or is too cumbersome,
then a general prohibitory law, with provision for compensation to the manufacturer as
'well as the tavern-keeper should be passed, to come into force if sustained by a vote of
the people taken over the whole Dominion on a day to ^e fixed in a similar manner to
that provided by the Canada Temperance Act, which Act shall be suspended in the mean-
time, except where it has already come in force.
NOTK.— THE PUBLISHER.
Appended hereto is a table which has been prepared at a large expensp, shewing
approximately the • assessed value of the taverns in the various municipalities in the
Province of Ontario. . '
Those who are familiar with other provinces will be able from this to form some idea
of the value of similar property in the rest of the Dominion. The method adopted to
obtain the results below was as follows : A schedule was sent to every License Inspector
in the Province, with the request that he should fill in the names and address of every
tavern licensee in his district, and return \Vith a certificate of its correctness in memo of
his fees or charges therefor. Answers were received from all except those mentioned
below.
The assessment of the real estate occupied by these tavern-keepers was then ascertained
from the town or townshiji clerks of these respective municipal itiea. The result of the
investigation was that, while by the last Ontario Government report obtainable, that of
1882-3, there appear to have been licensed 3,292 taverns; the assessment of 2,520 wan
obtained, shewing an average assessment of $2,830.25. Assuming the total number of
licensed hotels in the province to be the same as in that year, by multiplying the average
value into it, we have approximately the total assessed value of the taverns in the prov*
15
incc, viz., say $9,320,000, wliili) tlio total assessuiciit of the proNincc for municipal jiur-
poses is, say, $050,000,000. Now, it is submitted tliat the doprcciation of tavoj-n [iropeity
ill country municipalities would average 50 per cent., except that in some when; there arc
valuable hotel properties, as in Welland and Lincoln the dei)rcciation would not probably
exceed 2.5 per cent, — while in cities where tavern buildings may be more readily turned
to other purposes than in the country, the depreciation would not, it is thought, exceed
25 per cent, on an average.
As this, however, is a matter of opinion upon which a diversity of views may be
entertained, it was thought best to calculate what rate would have to be struck in each
municipality to raise the whole assessed value by debentures, payable in equal instalments
of principal and interest, during a period of 20 years,v.ith interest at 5 percent.
Of cour-se, it is not supposed that the depreciation woukl e(]ual this in any instance,
but it will enable every one, competent to form an oiiinion, readily to determine what the
rate woidd have to be. • Tu some cases, viz., Oxford, Perth, Renfrew, Simcoe, York and
p]lgin,the I^icense Inspector for one [»art of the county x-eported, but the License Inspector
of the other part did not. In such cases the average value of the hotel property in the
part of the county not heard from has been assumed to be the same as in that part heard
from, and as the number of licenses granted is known from the Ontario Government report,
we have a means of determining approximately the assessed value of the taverns where
the License Inspectors have not reported.
Outside of the cities the average value of taverns in the different nmnicipalities has
not been found to differ greatly — and is about i$2,200.
County or Citv.
Brant (including BrantforU).
Block ville, Leeds and "1
Crrenville j ' "
Duiferiu
Durham J
Northumberland I
Haldimaud
Middlesex
Norfolk
Ontario
I'cterboro
Welland and Niagara
London
Toronto
Essex
Hastings (iiiclud. Belleville.)
O >
,
ji
u
^
101
66
■M
2'J
52
49
as
38
56
67
77
78
100
74
18
99
33
37
31
22
32
8
32
36
41
64
22
20
73
53
94
39
24
50
54
14
2,782
U V
ca
UJ
« fl
117
75
44
37
60
55
40
39
36
68
75
99
90
98
no
18
104
33
37
37
40
50
5
31
36
40
64
23
20
69
53
81
39
27
50
54
14
3,086
Total as:-
Rcssmcnts
of hotels
received.
235,618
155,665
42,500
22,600
135,920
96,650
36,920
73,900
71,700
85,521
224,030
186,645
188,439
186,620
179,372
114,920
447,220
149,000
81,500
102,640
34,9C0
53,302
19,875
89,125
97,128
127,635
199,202
36,659
33,320
139,590
101,336
167,925
69,654
38,895
81,000
88,076
IJ *-• to 0) ^
$8,272,164
272,943
176,892
50,540
28,845
156,830
108.484
42,394
73,900
67,926
103,847
250,779
233,896
217,429
182,888
208,448
114,920
409,797
149,000
81,500
122,479
63,440
85,970
12,420
86,340
97,128
124,522
199,232
38,325
33,320
131,928
101,336
143,606
69,654
43,740
81,000
88,076
$8,734,161
$2,830.25
$2,254
Total assess-
ments of County
or City.
29,770,095
15,397,502
I 4,804,845
> 10,660,189
\ 451,721
12,988,567
8,094,240
9,427,620
10,695,272
7,909,104
16,521,152
21,735,090
15,527,691
16,982,748
13,082,084
2,969.940
17,713,150
4,621,358
5,872,570
7,660,730
Included in
Peel, Pufferin
and Simcoe.
I 24,520,133
I 22,488,181
\ 4,184,127
I 17,739,900
I
28,259,825
]. 14,023,032
14,095,959
$607,148,802
10,097,465
5,515,505
5,022,408
7,290,428
$635,674,008
«'5
a
a
I-
JO '••O
!g5
03 <
(2 <*♦' H'S O
•73
•92
1-32
1-13
•67
•42
•62
•51
1-05
1^29
•8(5
1-12
•86
1^33
•31
2-12
2 • 58
111
1 • 28
■0
1^:5
1^37
1'05
•6
■71
•9
17
There was coUecbed in Ontario in the year 1882-83, from Licenses, !it435,l, 1.87.
The salaries of Inspectors' and Commissioners' expenses, $47,9fi5.74.
Proportion of Revenue derived by Muncipalitios, $284,379.79.
The assessed value of real estate, buildings and plant, used in the manufacture of
malt, beer and spirits, in Ontario and Quebec is between three and four millions. Esti-
timated value seven millions.
Revenue derived by Dominion (iovernment from wine, beer, and spirits, aboiifc six
millions.