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Las imagas suivantas ont AtA raproduitas avac la plus grand soin, compta tanu da la condition at da la nattat* da I'axampialra film*, at an conformity avac las conditions du contrat da filmaga. Tha last racordad frama on aach microficha shall contain tha symbol •^►(moaning CONTINUED"), or tha symbol ▼ (moaning "END"), whichavar applias. Un daa symbolas suivants apparattra sur la dar- nlAra imaga da chaqua microficha, salon la cas: la symbols — ► signifia "A SUIVRE", la symbols V signifia "FIN". Tha original copy was borrowad from, and fiimad with, tha kind consant of tha following institution: National Library of Canada L'axamplaira film* fut raproduit grAca A ia gAnArositA da I'Atablissamant prAtaur suivant : BibiiothAqua nationaia du Canada Maps or platas too larga to ba antiraiy included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes ou les planches trop grandee pour Atre reproduites en un seui ciichA sont filmAes A partir de Tangle supArieure gauche, de gauche A droite et de haut en bas, en prenant la nombre d'images nAcessaire. Le diagramme suivant iliustre la mAthode : 1 2 3 1 2 3 4 8 6 \ / Popular Control of the Liquor Traffic. BY DR. E. R. L GOULD, special Commissioner of the Unite.l States Labour Department. WITH AN INTRODUCTION BY The Rt. Hon. J. CHAMBERLAIN, M.P. The work of the experts of the United States Labour Department leaves ,( nothing to be desired.— 7,A•- CHAPTER I. LEGAL BASIS OP THE SCANDINAVIAN SYSTEM. In Norway the right to distil is granted to citizens living Production of in towns, and to owners and occupiers of land in the - Liquors^* country upon which taxes are paid. In Sweden the payment of a tax on ground owned or leased confers this privilege. There are exceptions in both countries, which, generally speaking, cover the judiciary, clergy, municipal, military, police and fiscal officers. None of these may engage in the manufacture of spirits. Dis- tilling apparatus in Norway must have a minimum capacity of twenty five gallons ; no kindred restriction prevails in the sister kingdom. Distilling in both countries is con- ducted under licences granted by the provincial governors, who are appointees of the Crown. It may be carried on in Norway during nine-and-a-half months, and in Sweden during eight months, of the year. A tax is levied in Norway every time any distilling is done, counting fifteen days as a minimum time of operation, and 5,065 gallons as the assessed production. This provision is aimed at domestic distilling, and is designed to concentrate the business in a few hands. In Sweden the nuninium pro- duction for the total period of eight months is fixed at 6 2 POPULAR CONTROL OF THE LIQUOR TRAFFIC. Wine and Malt Beverages. Definition of terms " Re- tail "and •• Bar trade." 2,113 gallons. The ordinary revenue tax is two shillings per gallon, but a supplemental excise of fivepence a gallon is assessed whenever the daily product is less than 132 gallons or exceeds 1,320 gallons. The general object of these regulations is to make distilling an industry instead of a domestic pu^'suit, as it formerly was. Their effect has been to notably diminish the number of manufactories. In Norway only twenty-one distilleries are in operation at the present time. The minimum quantity which distillers may sell at one time is fixed at 10 J gallons by Norwegian, and 66 gallons by Swedish law. A sharp distinction is drawn in both countries between the sale of spirituous liquors and of wine and malt beverages. Historically, there is a reason for this. When temperance agitation first l>egan, effort was directed solely against the abuse of spirits, and it was considered distinctly a temperance measure to advocate wine and beer as substitutes. Naturally, since public agitation concerned itself so much with the one, the law has been uniquely occupied therewith. Now, however, the encouragement of wine and beer drinking is no part of the temperance pro- paganda, and the efforts of teetotalers and moderates alike are being directed to secure an effective control of the sale of fermented beverages as well. By " retail and bar-trade " is meant traftic in native spirits* in quantities less than 10 J gallons at one time in Norway, and in Sweden less than 66 gallons. The alco- holic content ranges from 40 to 50 per cent. In Norway • The 3 spirit of the Scaudinaviaus is commonly called *' braend- vin," gei y trauslated into English as ** brandy." When, therefore, in tlie succeeding pages the occasion arises to use this word, it must be understood as referring to a liquor distilled from potatoes or com, and containing from 40 to 50 per cent, of alcohol. LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. the minimum for retail sales is placed at '35 of a quart, while in Sweden it is a little over a quart ^'056 quarts). The licensing system is the underlying principle of the liquor !• w of Sweden and Norway, but so modified that pro- hibition is not only made possible but actually encouraged in rural communities. For the larger municipalities also the door is left wide open to local option, as no licence may be granted if the people so express their will through their chosen representatives. In the country the policy is to favour prohibition. So successfully has this latter been carried out, that few licences are in operation in the rural districts of either of the two countries. In Norway a country inn-keeper is not obliged to keep spirits on hand, and he is expressly forbidden to sell to any person living within a radius of 3 J miles from his hostelry. Probably few men are thirsty enough to hitch up their horses and drive more than seven miles for the purpose of getting a drink. The licensing authorities in the cities, towns, and villages of both countries are the magistracy, acting with the advice of the municipal representatives or general town meeting, and with the formal assent of the governor. The reason why the latter functionary is made a party to the transaction is that, ex-ojicio, he is the chief of the police system of the province. Hence, when consenting to licensing concessions he will naturally have in mind the facilities offered for policing public-houses, and knows better, perhaps, than any one else the records of the applicants. The theory is the disposal of licences at auction to the highest bidders, which means in Sweden to parties of approved character and competency to carry out engagements, 6 2 Licenstiijf System. Licensing^ Authoritlea Disposal of Licences. 4 roPULAR CONTROL OF THE LIQUOR TRAFFIC. who offer to pay a tax on the probable consumption of spirits dining the licensing period at the rate of a frac- tion less than '2d. a quart, with the annual quantity sold fixed at 79 2| gallons as a minimum. In Norway the assessed tax is slightly over l^d. a quart, without a pre- scribed minimum ; but it is the practice there, after having decided on the number of public-houses and retail shops to be licensed, to divide the total assessed probable con- sumption equally between them. No account is taken of the special business advantages of any one situation. The result is a practical restriction of the business to a few places, and the driving out of existence of the smaller and lower kinds of drinking places, which, in order to make a living, are obliged to resort to exceptional means, usually indefensible from a moral standpoint, to push their wares. Reducing the number of places where liquor is sold renders policing much easier. In order to prevent the up-growth of public-houses just beyond the municipal boundaries, the Norwegian law tixes the excise for drinking-places located within a radius of 3.^ miles at the same figure as for those situated within the towns themselves. The excise on probable consumption is liberally estimated in both countries, and even though at the end of the year it is shown to have been largely in excess of the amount which the actual sales would justify, no part of it is recoverable by the payers. In Sweden the destination of the tax is the municipal treasury, while in Norway it is devoted solely to the poor fund. ' The Company The prevailing method of public control is the so-called ^^ ^' "company monopoly." This feature was authorised in Sweden in 1855, aud in Norway in 1871. It has so largely superseded the practice of disposing of licences at LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. 5 auction that in Norway, to-day, fifty-one towns and landiug- places, including all of any importance, have adopted the (a) Extent ; plan. In Sweden s(;venty-eight towns have granted the monopoly to brandy companies, in twelve the sale by auction is still adhered to, in ten there are privileged licences only — i.e., licences granted previous to 1850 l)y royal warrant, and gd for the lifetime of the holder — and in two small towns prohibition prevails. Generally speaking, in the country, prohibition, and in the towns, the company system, represent normal conditions. Considering the enormous territorial extent of the two Scandinavian kin;jdoms and the preponderance of the agricultural population, it is not difficult to see that the majority of the people live under a r^lfime of local option. The veto power is in Sweden and Norway a concomitant of the company system. The licensing authorities in any community are author- (b) Applica- ised t<:) grant a monopoly of the retail and bar sale of spiritu- * ous liquors to a commercial company formed for t)ie jnirpose of undertaking them, without any other financial return than a rate of interest on capital invested of r» pci'r cent, in Norway and 6 per cent, in Sweden. Strictly speaking, the Norwegian law does not fix the rate, the by-laws of the companies prescribing it under the sanction of the Home Department, Five per cent, has become the customary figure. All remaining profits go either to the municipal treasuries (Sweden) or are applied (Norway) directly to objects of public utility. The company receives the monopoly because of the fact that it thus otters so much better terms than private individuals. The fundamental idea in the minds of the inaugurators (c) Funda- was to create a system where the element of private gain pjSSples • should be eliminated from the sale of intoxicating liquors. (d) Constitu- tion: 1. Bliare- holders ; 6 POPULAR CONTROL OF THE LIQUOR TRAFFIC. They meant to attack the evil directly from its economic side, and in this they acted wisely. Any plan to be effective must comprise this feature. Men engage in the liquor traffic, not deliberately to ruin their fellow-kind, but to make money, and, as a rule, all the money they can. Remove the motive, and a bulwark is erected against abuse. It is true that there will be for a time an overflow, but this represents a positive demand for consumption, and can be provided for by the company monopoly plan. SoTinder education, temperance propagandism, hygienic ameliorations, and a host of other things will so diminish the feeding streams that ultimately the overflow may entirely cease. The shareholders in the companies are, as a rule, persons who have public interests deeply at heart. If we take tlie Christiania company as an example, we find that the original subscribers comprised the governor of the district, two ex-members of the Norwegian cabinet, two royal chaml)erlains, one chief of police, two foreign consuls, two army oflScers, the headmaster of a school, seven Government officials, five physicians, ten lawyers, one member of Parlia- ment, nine wholesale merchants, twelve retail dealers, six manufacturers, and seven owners and managers of breweries 2. Shares; (not distilleries). At the present time the shares have become more widely distributed. Never have they there nor in any other place, as is sometimes alleged, been held for speculative purposes. Three-fourths of the shares of all the companies in Norway are now owned in holdings of one. In Sweden the shares often figure in the list of donations to public and philanthropic institutions, the original owners having so disposed of their holdings at death. During recent years, in Norway, shares have sometimes changed hands at a premium. Enemies of LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. the system have cited this as evidence that speculation was rife. A satisfactory explanation is easily found when one understands that the possession of a share gives the holder the right to vote at the annual distribution of the profits arising from the company's operations. Persons interested in particular institutions naturally seek the privilege of voting in order that due recognition may be given them. The statement that shares have changed hands for speculative purposes is positively ridiculous. In Norway, as I have already pointed out, three-fourths are dis- tributed in holdings of one. The capital stock is always small, both absolutely and in proportion to business done. The Christiania company is capitalised at £8,805, and the Langesund company at £32. They are resjiectively the largest and smallest in Norway. Mr. Koren, in the report of the Massachusetts Legislative Commission, has pointed out that the largest dividends in 1892 were paid to the shareholders in the Christiania company, and they received on the average £3 each. The pro- portion declines until we reach the Tonsberg company, whose shareholders were remunerated at the rate of 6|d. Small as the share capital of companies is, it is hardly ever fully called in. Frequently not more than 25 per cent, is paid up. Interest is received only on the quota paid in. Even though the rate may be slightly higher than current payments by sound financial institutions, it amounts to nothing when we consider what a mere pittance individuals receive. There never was a more senseless charge against the Norwegian system than that which intimates that liquor companies are run for the benefit of shareholders. 3. Capital Stock ; 4. Dividends, POPULAR CONTROL OF THE LIQUOR TRAFFIC. Checks on Companies, And their Relation to Public Authorities. But what guarantee is there that the companies will entertain a loftier conception of civic responsibilities than individual liquor-sellers? Will they not seek to exploit the business j)ro bono publico? In the first place, they are puljlic corporations, whose by-laws receive official sanction, and who make, one may say, with the licensing authorities certain definite contracts. Secondly, for forgetfulness of public weal or any breach of trust, the governor has the right to withdraw tlie licence privileges without compensa- tion. Approval of the by-laws also being " only for the present," the Government may at any time bring a faithless corporation to a change in policy simply by threatening it with extinction. The control is strict, and one company has been so treated. More frequent necessity has not arisen. Thirdly, the licensing periods are very short, five years in Norway and three years in Sweden, except in the smaller towns, where one year completes the term. Fourthly, the character of men, who, if not precisely from a sense of duty, at least with the certainty of no financial reward, become interested in the liquor traffic, is almost alone a guarantee that philanthropic management will prevail. An intimate relation exists between public authorities and the companies. In the first place, as we have already seen, the by-laws are subject to the approval of the magis- tracy, municipal council, and governor. Closing the public- houses in cases of emergency legally takes place upon the order of the governor. The sanction of public authority is given to the price-lists. A reduction in the number of licences may be effected arbitrarily at the end of any licensing period by po[>ular vote, without creating a claim for compensation by the companies. In Norway the appointment of bar-tenders and other officers is LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. U subject to confirmation by the magistracy and municipal council. In this close alliance there reside a benefit and a danger. Every effort made to enjoin upon the companies a proper consideration of public interest and convenience represents the former ; but from the civic standpoint, the intimate intervention of the local government, especially in conununities where standards of political morality are not as high as they are in the Scandinavian peninsula, may lead to serious inconvenience, and even danger. From these theoretical considerations in the present instance a final appeal nmst be had to the economic, social, and moral experien(!es resulting from the operation of the system. Their consideration will assuredly convince an impartial person tliat the practical benefits have far outweighed the possible drawbacks. Indeed, very few of the latter have ever been realised.* Regulations for policing public-houses and retail shops respond, on the whole, to leading requirements. Sales are forbidden to minors— that is, to persons less than fifteen years of age. The companies have voluntarily and universally raised the limit to eighteen. Retail shops are closed on Sundays and holidays in ))otli countries. Public- houses in Norway are shut from 5 p.m. on Saturday until 8 a.m. on Monday. On weekdays they are open from 8 a.m. to 7.30 p.m., as a rule. In some of the towns they close in the middle of the day for an hour and a half, the idea being to withdraw from the working-man the temptation to drink while going from his work to his home for the midday meal. In the evening the hour for closing comes so early that carousing is practically an impossibility. * See Appendix A, page 99. • ^ The Verdict of Expexience : (a) Police Supervision ; (b) Sales to Minors ; (c) Hours of Business in Norway 10 POPULAR CONTROL OF THE LIQUOR TRAFFIC. And In Indeed, but little time is left after the working-day is over ^ in which ^o secure drink at all. In Sweden bars are open on Sundays at mealtimes only, and sale restricted to guests eating. On weekdays the hours prescribed are 9 a.m. to 10 p.m. in towns and villages, and till 8 p.m. in the country. As regards the morning hour, the governors have authority — and usually exercise it in the case of larger cities — to graniiexceptions to this rule, so as to permit the i[ opening of the restaurant-bars at an earlier hour. This, !J \ however, is not meant to afford extra opportunity for l' \ drinking, but to respond to the needs of unmarried male l| j workers, who from time iumiemorial, in Swedish cities, j have been accustomed to take their meals in public-houses. This practice furnishes the explanation of the Swedish law j prescribing that cooked food shall l)e kept on hand in every (d) Provision bar-trade place.* In Norway, national customs being ® different, quite another policy as regards food has been adopted. No loitering whatever is permitted in public- houses ; indeed, in the majority of them no seats may be found. As soon as a man has taken his drink, he must leave the premises. In both countries the sale of brandy to intoxicated persons, or in such quantities that intoxica- tion is likely to ensue, is illegal, while debts contracted for (e) Ready- liquor are not recoverable. Business is carried on strictly ^ men^^" ^^^ ^'^^ at all places of sale belonging to the companies. Advantages of Early-closing is fraught with important and beneficent Early-Closing, consequences. The public-house is the one social institution with which a vast majority of our city populations is intimately acquainted. To its hospitable counter the working-man repairs on pay-day to treat his foreman and * There are scarcely any bars in Sweden such as one sees in England and the United States. Bather should we call them " saloon-restaurants." LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. 11 his comrades. Before leaving, a fourth-part of his weekly wages lias disappeared. Enough ^*s saved to jxiy the rent, the family must get along somehow with the rest. An evening's conviviality has to offset restricted nourishment, reduced vitality, loss of social opportunities to the children, and an ever-widening domestic breach. The Norwegian practice of opening pubiiohouses at eight in the morni 'g on weekdays, and closing them at half-past seven — except Saturdays, when they are shut up at five — is entirely com- mendable. The temptation to carouse is almost obliterated, for time and opportunity are lacking. But it is manifestly impossible to insist on such early-closing where ordinary licensing prevails. When financial gain plays no part, it matters not how short is the period of sale ; but certainly it is not just to charge the publican a good round sum for his privilege, and then forbid him to ply his tnide when he has the best opportunities for making money. The Scandinavian method offers other important ad- vantages for the reformation of what one may call the "public-house habit" of working-people. Drinking is not the only — nor, indeed, the principal — motive. The craving for recreation, amusement, and human intercourse brings them to the public-house. The Gothenburg company rendered an important service when it candidly recognised the need of popular social centres. A part of its profits are annually spent in the maintenance of five reading, writing, and club- rooms. Light refreshments are served, but ministry to the gregarious instincts is the raison d'etre. The attendance record of 217,207 visits in 1892 is a fair measure of appreciation. Not satisfied with this, the company has established an intermediate agency for inducing working-men to break WMch in In- compatible with Ordinary Licensing. Provision by the Company of Reading- and Club-Booms, And Restaurants. !'r 12 POPULAR CONTROL OF THE LIQUOR TRAFFIC. away from public-houses. It has opened four restaurants, where bountiful portions of food are provided at cost price. Cooking is maiKle an art, and the service all that can be wished. Only a single glass of liquor is allowed (on paying for it, of course) at meals ; but so superior have become the attractions of good food, that not more than one-third of the customers now think of demanding it. About £200 annual loss results from running the eating-houses, but the policy it indicates furnishes the strongest possible evidence that the company has not forgotten its philanthropic aims. Wine and As regards wine and beer, it is only necessary to say that few restrictions are enjoined upon their sale. Licences are granted for the bar-tnide upon payment of an exceed- ingly small sum. It has been calculated that, for most Norwegian towns, the profits derived from the sale of four lx)ttles daily would amply indemnify the holder for the Licences and cost of his licence. Any merchaut may dispose of beer in |[X)ttles. Those who possess brandy licences have ipso facto the right to dispense fermentei^l beverages. There is no excise tax on either beer or malt. One cannot wonder, therefore, that with the spirit trade so heavily handicapped, and so large a measure of freedom accorded tjO fermented Consumption, l^everages, the consumption of the latter should have greatly increased ; still, the ratio of advance is much smaller than in many other countries — the United States, for example. Capital Stock To persons unacquainted with the liquor trade it ^ ' appears remarkable that the capita) stock of these brandy monopolising companies should be so small. Were the facts better known, surprise would not be felt, even though tlie annual balance should frequently represent several times the amount of the capital actually invested. This is LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. 13 a general condition which happens to be particularly well illustrated in the case of Norway and Sweden, as the follow- ing statement will show : — Locality. Capital Stock. Gross Ueceiptfl. Net Prolits. Christiania Bergen .... Gothenburg Stockholm Norway (as a whole) £ 8,805 4,402 5,641 8,871 32,842 £ 1 £ 69,247 14,801 39,656 8,767 53,706 i 22,452 128,739 82,699 172,167 76,198 The figures in the column headed " net profits " in the above table exclude the excise paid annually to the munici- pality for the licence monopoly. In the present instance, one might with perfect projjriety include these sums. If one does so, taking Norway as an example, the credit bahmce would be swelled ])y £21,191, or to the total of .£97,389 instead of £76,198. Reference to the table also shows that the ratio between .sales and profits is by no means the same in the four Scandinavian cities. The net surplus is alxjut 64 per cent. And Net Sur- of the receipts in Stockholm, and 42 per cent, in Gothen- P ^ ^<* 8. burg, while it represents 21 per cent, in Christiania and 22 per cent, in Bergen. There are several reasons for this, but the jjrincipal one is that the consumption per head of population is greater — indeed more than double — in the Swedish than in the Norwegian towns. As between Stockholm and Gothenl)urg a re-adjustment of accounts this particular year explains the disparity. The ditierent methods of sub-licensing also exert an influence. In Norway the companies preserve the monopoly of sale of higher-grade spirits, cordials, etc., whereas in Sweden 14 POPULAR CONTROL OF THE LIQUOR TRAFFIC. this trade is largely conceded to regular wine merchants, restaurant- and hotel-keepers. Interest-charges on large stocks, shrinkage, and breakage, absorb considerable sums. Neither has the Norwegian hotel-keeper a motive to push 1 1 the sale of spirits, since all pecuniary advantages belong to ! I the companies. j I CompensaMon When Stockholm, profiting by the example of Gothen- 1 1 In Stockho'lm. ... © ^ r I ; burg in giving a company the control of the liquor traffic, 1 1 proposed to buy out and pension off all the publicans and j retail dealers in spirits, in order to secure a complete i monopoly of the business, the project met with opposition i on the ground that to undertake such a financial risk would ! not only be absurd, but would bankrupt all who were I hardy enough to invest their funds in the enterprise. The I city persevered, however, and, after one or two unsuccessful j attempts, finally succeeded in arranging with every holder of a licence for the surrender of his privilege in return for a life-pension, varying, of course, in proportion to the value of his business. It was found at the expiration of the first year's operation that, after setting aside a fair sum for reserve and paying a dividend of 6 per cent, to shareholders, besides, of course, meeting all necessary expenses, a sufficient sum remained in the treasury to liquidate the pensions of all the ex-publicans of Stockholm for two-and-a-half years to come. These facts may well be considered in connection with the compensation question in England. By-lawts of The by laws of the various companies are, as has already Companies, jj^^gj^ noted, subject to the approval of the magistracy, the munici|)al council, and the governor. Their contents deal mainly with the amount of capital ^tyJk. and method of payment for shares, the qualifications and duties of share- • holders and directors, the obligations of employees, and rules LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. 15 of internal administration. In Sweden, surviving share- holders are usually given an option on the purchase of shares offered for sale. The design is to secure a perpetuation of management along good lines. The contracts made with such employees of the com- Employees panics as managers of bars, retail shops, and eating-houses, show how much the public interest is considered. It is specifically stipulated that all sidles shall be on corpora- tion account, the employees deriving absolutely no benefit therefrom. The original practice was different, and the present one was inaugurated as the result of experience. At Gothenburg, a certain kind of maudlin sympathy dictated the employment of ex-bar-tenders and publicans as servants of the company. Their salaries were provided for, in part, by a certain percentage on sales. The experiment resulted in abject failure, as might have been foreseen. The keystone of the new regime is discouragement of drink- ing ; and it should have been recognised as absurd to expect men of this class to ignore both the influences of habit and the stimulus of self-interest. Here is the groundwork of the charge first formulated against the Gothenburg com- pany — of disregarding the public interest, and of permitting pretended philanthropy to degenerate into positive aggran- disement. No company since, so far as I am aware, has ever attempted to pay its employees in any other fashion than a stipulated salary. The compensation is liberal in paidby comparison with prevailing business stipends, and the "^^'^^j companies have no difficulty in securing efficient help. In Sweden, where managers are compelled to keep well- withBonuson cooked food, non-spirituous beverages, and cigars always on foo'*. Cigars, hand, the profits from these sales form an important per- quisite. They employ their own assistants, subject to the 16 POPULAR CONTROL OF THE LIQUOR TRAFFIC. Under Stringent Regulations, AndCivU Service Rules as to Promotion. i I Inspectors. 1 1 approval of the company. The latter allows fixed indem- nities — two-thirds of which are paid to the servant in cash, while board and lodging stand for the other third. Managers must follow the fixed tarifi' of prices, and serve liquors in glasses belonging to the company. They are held personally responsible for the observance of all regulations, and are forbidden to sell to minors under eighteen years of age (three years beyond the legal limit) and to intoxicated persons. They are not allowed to follow any other occupation whatever during their period of service. Honesty, fidelity and eflSciency are the con- ditions of continued employment, as their supposed posses- sion furnished the sole motive for original appointment. A perfect method of control and account prevents either the giving away or fraudulent disposal of liquors by managers or any of the company's assistants. Civil Service rules are applied in promotions, the chief requirement being length of service, combined with good conduct. In cases where several individuals present equal merits on this point, the preference would l)e given to the employee whose record of sales was the lowest. Besides the managers, each company has inspectors, who go around and see that the quality of the liquor offered for sale is good, examine the control books, and see that rules and regulations are l>eing properly observed. In addition to their salary managers are allowed the profits resulting from the sale of mineral waters, beer, and cigars, wliich sale they conduct on their own account. But in Norway, and since October Ist, 1893, in Gothenburg itself, recent regulations do not permit employees to receive profits from the sale of beer. Practically, the only other difference between the contracts made with company I LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. 17 officials in Sweden and Norway is, that in the latter country the obligation to provide cooked food is not incurred. The motive is quite clear. The habit of the Norwegian work- ing-man is not to take his meals in drinking-places, whereas in Sweden the contrary custom prevails. An habitual drunkard, in Norway, finds it increasingly Treatment of difficult to debauch himself. Many companies furnish Drunkards, their bar-tenders with the names of persons who are sure to " get on a spree " every time they commence to drink. People so blacklisted are generally refused. The law fully justifies the conduct of the company in requiring that liquor shall not be sold to persons already intoxicated, or in such quantities that intoxication is likely to ensue. The smallest glass fires the appetite of the habitual drunkard into perfect uncontrollability. No loitering is allowed in Norwegian bars. A customer, after drinking, must leave the premises forthwith. Up to the present reference has only been made to the Management places of bar and retail sale conducted by the company on ciubs*^ its own account. Hotels, restaurants, and clubs have not been considered. In this matter a radical difference prevails in the practices of the two Scandinavian kingdoms, and, therefore, an explanation of each must be given separately. In Norway the custom is to make the proprietor or In Norway by lessee of the hotel, restaurant, or club, for the time being, companies an employee of the company. He is conceded the privilege of selling spirituous liquors, both native and imported, but he may not derive any personal benefit from their sale. As the agent of the company he is paid a salary, but all profits go into the corporation treasury. He likewise puts himself under a heavy bond for the faithful performance of his ■ ' " ♦ obligations. This is the general practice. In certain towns, C 18 POPULAR CONTROL OF THE LIQUOR TRAFFIC. notably in Bergen, no privileges of the kind referred to are conceded, and the only way in which a guest in a hotel can obtain a drink is to buy a bottle at a time, just as if he had gone to one of the retail stores of the company. In Sweden by The Swedish practice is to grant sub-licences to owners or lessees of hotels, restaurants, and bond fide clubs, whose character has been approved by the licensing authorities, for the sale of imported and high-grade liquors and, some- times, also " arrac " punch. The companies reserve to themselves, however, the traffic in all spirits or potions compounded therefrom which contain, at 15° Centigrade, more than 23 to 25 per cent, of alcohol. This is uniformly reserved as the monopoly of the company. Neither do the companies, in sub-licensing, transfer the sole right of selling the weaker alcoholic beverages. They do a little of this class of business themselves. The compensation required of holders of sub-licenses is simply the regularly assessed excise tax upon probable consumption. It is estimated in different fashions. In Stockholm it is liberally guessed at, but in Gothenburg sales' books have been called for in v order that a correct assessment may be made. Gambling and The company monopoly presents at this point certain ^ thus Sup- advantages, which we should do well to consider. By this pressed method of sub-licensing it is possible to suppress gambling and immorality, which so frequently flourish in connection with public-houses. The contracts are made annually with the sub-licensees, and, as we have already seen, the friendly relations between the companies and the public authorities make it easier to interpose special stipulations to prevent By Companies, any ulterior abuse. As a fact, the companies uniformly do Police ^^^'^ whenever requested by the police. They sometimes go so far as to withhold the privilege from an individual who LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. V.) has wilfully or obstinately transgressed the bounds of pro- priety in the past. An interesting case came under my own observation while in Stockholm. The lessee of a large amusement cafe had, in contravention of his contract with the company and ' in opposition to the expressed wishes of the police depart- ment, conducted the sale of liquor in certain quarters of his premises devoted to amusements. Paying no heed to official remonstrances, he was brought to his senses at the end of the year by the company refusing him a sub-licence unless he conformed in every respect to the requirements of the police department. His justification for the trans- gression was that the sum he was compelled to pay was already so high that he could not recoup himself unless he offered some special attractions with the sale of drinks. In the new contract he was obliged to accept all the conditions imposed, and, as a kind of semi-official penalty, the large amount he was compelled previously to pay was again required. It should be remarked that the semi-public relations of these brandy companies are such that it is impossible for them to allow any gambling or immoral features in connec- tion with the sale of drink in their own saloons or other places. If they did, considering their avowedly high aim, public sentiment would be so aroused against them that the AndanEffec monopoly would be very speedily done away with and their opinion, existence ended. As regards other places, the method of sub-licensing under such han^ and fast conditions effectually brings the third party under the control of the police authorities and systematically checks abuses. To say positively, without fear of controversion in the smallest detail, that gambling and sexual immorality have been C 2 aO POPULAR CONTROL OF THE LIQUOR TRAFFIC. Profits : (a) Distribu- tion in Norway entirely disassociated from the public-house, under the Scandinavian system, is to sound no uncertain note of praise. There exists a sharp distinction between the methods of distributing the profits of brandy companies in Norway and Sweden. In the former, appropriations are determined by a committee, in which the shareholders and the public are usually equally represented. Shareholders elect their sub- stitutes, while the municipal council selects the public representatives. The surplus remaining after making pro- vision for all expenses and a 5 per cent, dividend, and after a reserve equal in amount to the capital stock has been once created, is awarded to objects of public utility which the municipality is not by law already obliged to support. An analysis of the profits distributed during the decade from 1880 to 1890 shows that the average annual amount was equal to £66,037. Nineteen per cent, of this was given to vajripus educational objects, 7 per cent, was awarded to public institutions, 6| per cent, went for the creation or improvement of parks and highways, and l^^ per cent, was bestowed in the form of subsidies upon various teetotal organisations for the purpose of aiding them in their propaganda. The Norwegian method is salutary from a triple point of view. No part of the surplus can be applied to lessen the tax-rate. The fact that in Sweden the local municipal treasury is the chief recipient has been understood by uninformed or hostile persons to indicate that public cupidity had simply taken the place of private gain in the conduct of the liquor traffic. The charge is quite unfounded, unless with the rarest possible exceptions. Secondly, the sense of local civic responsibility is maintained. Thirdly, LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. 21 the philanthropic €;nergies of a community are stimulated - •• ► and extended. In Sweden a tripartite system of distribution prevails. And In The municipality, as a rule, receives seven-tenths. Two- ' tenths belong to the general government, and one-tenth is accredited to the agricultural society of the ncighlx)urhood. Accounts are audited by persons representing each of these three parties, and, consequently, there is no loophole for fraud. Stockholm receives eight-tenths, and smaller towns get only five-tenths ; the country communities in the latter case profiting from the relatively smaller share granted to the urban. Considerations of equity dictate that a portion of the The Countr: Districts re profits shall go to the country. Since the company-plan ceivinga was inaugurated, licences have practically disappeared in Share ; rural districts, involving necessarily the loss of excise. Drinking, however, has not wholly ceased ; for peasants coming to town very frequently provide themselves with liquor, and, unfortunately, often take advantage of the rare opportunity to absorb too much. The country com- munities, therefore, claim that, having lost in two ways by the company system, they are entitled to receive a portion of the profits. Their plea has been admitted. In Sweden farming is the staple occupation and the great source of prosperity. Agricultural societies have for their object the spread of scientific knowledge in relation to cultivation, the inti (duction of better breeds of stock, kinds of cereals, etc. Hence the subsidy. The average annual profits of all Swedish brandy com- (h) Amount panies during the decade from 1880 to 1890 was £323,061. The question of profits of brandy companies under the Scandinavian system has received a great deal of attention. 22 POPULAR CONTROL OF THE LIQUOR TRAFFIC. (c) Offence to Many temperance people believe that they have here found " Temperance c/ x x x ^ . a vulnerable point. Others take the high ground that People," But without Cause : public sanction, which, according to the Swedish practice, is in a measure involved, is iniquitous ; and that financial resources coming from the sale of drink should be considered a kind of " blood-money." Furthermore, they believe that distributing profits in this fashion entails a certain relief from taxation, and, consequently, the system becomes fastened more surely and jjcrmanently upon the body politic. It is extremely bad morality, they say, for taxpayers to receive benefit in any way from the consumption of drink. Such arguments arc by no means unreasonable, but in the present instance they do not represent facts. The annual profit-balance is so light in comparison with the total national tax, that the relief accorded the contributor is not much greater than the lowering of the water-line of a large reservoir whence a few buckets have been bailed. A careful investigation upon this point leads me to believe that, far from the tax-bills in any given locality having been reduced as the result of this system of distribution, the community has benefited by increased expenditures upon objects of public utility, which otherwise might not have been possible. T do not think it can be successfully demonstrated that the tax-payers have been relieved owing to the income from the brandy companies. That the com- panies themselves have no motives to create profits, is incon- testable. Shareholders can receive no pecuniary advantage beyond that which a 5 per cent, or 6 per cent, dividend upon the amount paid up on their shares confers. Owing to the lucrative character of the business, the sum necessary to pay this is easy enough to gain. The most that can be said is that the municipal purse has been made more open, LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. 23 and public contributions more generous, because of the pro- ceeds received from the sale of liquor. Norway, theoretically, has a better system for the (d) Theoreti- distribution of liquor companies' profits than Sweden, but orlty of investigation leads me to believe that ultimately the surplus ^SJISSd reaches practically the same destination. It is true that Norwegian law forbids any subsidy to an object or in- stitution which the municipality is legally compelled to support, but this does not at all prevent the creation of objects and institutions similar in character and purpose, and conducted often on more wholesome lines. Thus, tlie large proportion of the surplus which has been donatetl for educational purposes and for the extension of parks and highways, might, with equal propriety, have come from municipal treasuries. A distinctive effect of the Norwegian system is that local competition for financial favours from the company is created, while the distribution committee represents only in part the public interest. It has been this scramble for recognition, so to speak, which accounts for the wide distribution of the shares of Norwegian companies. Pos- session of a share confers the right to vote for a repre- sentative on the committee of management, whose duty it is to apportion subsidies. It can be truthfully said that no great abuse has so far arisen in Norway, not- Though Lla- withstanding that there is an opportunity for it ; but one cimnot be conspicuous instance fairness compels me to mention. In a ^^^1^1. small town of western Norway, it has been the practice for many years to close all saloons and liquor shops for three weeks on the return of the fishermen from the sale of their annual catch. With pockets gilded and little to do, it was very natural that they should feel convivially 34 POPULAR CONTROL OF THE LIQUOR TRAFFIC. disposed. Tlie company simply took upon itself the paternal responsibility of removing the temptation, and no great outcry resulted, because the inclination to celebrate was gradually replaced by a spirit of thankfulness for the real service rendered. There li\ed in this community, however, a philanthropic doctor, who desired greatly to build a hospital where the sick and injured of the neigh- lK)urhood might receive proper treatment. He had applied at different times for aid from the brandy company, but obligations already incurred rendered a generous appro- priation out of the question. Finally, to solve the dilemma, it was suggested that the saloons be opened during this period of three weeks when they had previously been closed. This was done, and three years furnished the resources necessary to complete the scheme. In this case the motives of the doctor were good ; but his apprehension of principle was so imperfect, and the effects of the means adopted so bad from a moral point of view, that we may say the system furnished him the opportunity to sin socially. But have not wretched systems of error been founded upon one-sided interpretations of Biblical law, and is the Bible resposible for them 1 (e) No real in- Another purely theoretical objection is that, under the Civic Greed Swedish method, public cupidity simply takes the place of private. The fear is entertained that, once aroused, civic greed may go farther, and show itself more difficult to restrain. The answer to this is evident enough. A com- munity which sought to thrive on the misfortune of its members could not very long exist. The poor-rate and expenses for criminal and reformatory establishments would not be long in absorbing far more than the profits derived from the liquor trade, no matter how much the consumption LEGAL BASIS OF THE SCANDINAVIAN SYSTEM. 25 of drink was encouraged. Thus, a practical limit exists to tlie extension of public cupidity. The community if it goes wrong has to bear its own burdens ; the private trader pockets the gains and leaves the evil consequences to the community. From the ethical point of view, it can make no dif- And not ference whether the beverage which debauches is served by a quasi-public corporation or an individual. But it matters considerably in the economic sense. In the one case, society bears the burden exclusively ; in the other, it is partially recouped. The Scandinavian plan was never designed to prohibit the consumption of liquor, or to eradicate all the evils to which immoderate drinking gives rise. It was intended to check the vice of drunkenness by lessening temptation and by reducing consumption to normal requirements. The public-house is put under such heavy bonds, so to speak, that it is more and more re- garded as a reformatory institution, and shunned by self- respecting people. The liberty to drink, if one wants to, and has the necessary means to purchase liquor, is fully conceded, but abuse of this right is carefully and eflfectr.ally restrained. In short, the methods employed are educa- tional rather than repressive. The end sought is the reformation of popular habits, and it is reached by a series of evolutionary stages, each one of which finds its sanction in advancing public sentiment. Probably no system for distributing the profits of the Method of dlS' liquor trade could be devised which would be entirely free Finland from theoretical objections or practical difficulties. Neither of the plans adopted in Sweden and Norway measures up to an ideal standard. Finland has tried a compromise, which is worthy of mention. The surplus is given, one-half 26 POPULAR CONTROL OF THE LIQUOR TRAFFIC. to the town in which the brandy company is located, one- fourth to the country communities of the province in pro- portion to population, one-eighth to the local agricultural societies, and one-eighth to the company itself. The ap- portionment to urban and rural districts, three-fourths of the entire sum, must be distributed amongst local objects of public utility, those aiming at the promotion of tem- perance public health and education, and the care of the poor having the first claim. The part given to agricultural societies is spent to further the obvious ends of these organisations. The one-eighth left to the brandy company is expended in the promotion of public welfare, but it may not be given to any object or institution maintained either ^^M^^itfl'^ wholly or in part by municipal taxation. The merits of the Finnish practice are apparent. Liquor-money may no longer be used to relieve local taxation, and the objects for which the major part of it is expended are specified by statute. It is undeniable that a wise disposition of revenues derived from the trade in spirits presents many perplexing difficulties. I have elsewhere * referred to some of them in discussing the adaptation of the Scandinavian system to American needs. Standards of civic morality are lower in the United States — and I believe in England, too — than in the Scandinavian peninsula. Such safeguards must be devised that leakage of any kind will be impossible. Dis- position of at least the major portion of profits by legal enactment seems highly desirable, while the strictest form of public audit is a necessity. •"Atlantic Monthly," October, 1893, and "The Forum," March, 1894. 27 CHAPTER II. RESULTS OF THE SCANDINAVIAN SYSTEM. There is but one satisfactory test of the efficacy of any The Crucial method of controlling the liquor traffic, and that is the nignea Con- consumption of drink per head. Even such statistics do sumption, not afford an entirely accurate judgment. For instance, they cannot show the abuse of liquor, since one is unable to measure the particular part which has produced intoxi- cation. Every customer is by no means an inebriate. Indeed, in some countries — such as Denmark, where the annual quantity of spirits drunk per inliabitant is larger than almost anywhere else — the people have a well-deserved reputation for sobriety. There the practice is to drink chiefly at mealtime. Neither can we consider consump- tion of spirits apart from economic conditions. A rise or fall in general prosperity is always a jcompanied by changes in drinking habits. Particularly when the working classes receive high or low wages will marked fluctuations be observed. It is well known that the British Chancellor of the Exchequer has recourse to the " spirit barometer " in his budge tory estimates of national prosperity. Before seeking to draw inferences from the statistics of DataofCalcu- consumption of spirits in Sweden and Norway one must understand on what basis they are prepared. Since the Government regulates the manufacture, the total quantity distilled each year is well known. The difference, too, between exports and imports is easily established : but in calculating the consumption for any particular year latlons. 28 POPULAR CONTROL OF THE LIQUOR TRAFFIC. Sweden, 1856-1890. alk>v^ance has to be made for a considerable quantity stored away for some future time — a quantity which ought to be credited to the 'ear when it is drunk. Furthermore, it is not known just how much alcohol is consumed in the industrial arts. The thing which is known absolutely is the quantity sold by the companies. The average annual consumption of spirituous liquors in Sweden by five-year periods, beginning with 1856, has been as follows : — Quarts per Inhabitant. 10-03 11-31 1874-1892. 1856-60 18G1-65 1866-70 1871-75 940 12-47 1876-80 1881-85 1886-90 Quarts'per Inhabitant. 10-67 8-66 7-42 Part of the period from 1871-75 falls in the golden age of wage-earners ; work was then abundant and remunera- tion higher than it has ever been before or since. There is nothing incongruous, therefore, considering what has already been said on the influence of economic conditions, in the sharp advance in alcoholic consumption during these years. After 1876 or 1878 the company system took firm root in the eastern Scandinavian kingdom, and since then there has been a notable diminution in the quantities consumed. The influence of the company plan on the consumption of spirits is better shown in the table given below : — Quarts per Quarts per Inhabitant. Inliabitant. 1874 . 14-2 1884 . 8-5 1875 ,, 12-9 1885 . 80 1876 . 13-1 1886 . 8-2 1877 . 11-2 1887 . 7-3 1878 . 11-0 1888 . 7-0 1879 . 9-2 1889 . 6-5 1880 . 8-5 1890 . 7-3 1881 . 9-4 1891 . . 6-7 1882 . 8-4 1892 . , 0-8 1883 . 71 BESULTS OF THE SCANDINAVIAN SYSTEM. 29 In 1874 the first company, the Gothenburg, received a monopoly of retail- as well as bar-trade. Beginning with that year and closing with 1892, the latest date for which statistics are available, we see that the consumption per 50 per cent, head declined more than one-half. Is not this a marvellous showing ? If not, it is at least an exhibition which no country in the world with a difterent method of control can present. The question of absolute quantity of spirits drunk per individual is not relevant. It is improvement in drinking habits which must be considered. In 1874, with but one leading company in possession of a monopoly of retail- and bar-trade within its circumscription (except five privileged licences which have not yet been given), Sweden occupied the second place as regards consumption of spirits per head amongst the twelve most civilised countries of the world. To-day her place is about half-way down the list. That this result has been reached against the formidable hindrances of national customs and of climate brings powerful testimony in favour ^ of the system. Credit cannot be given to Governmental control of manufacture, because private distilling was abolished nearly twenty years earlier — i.e., in 1855. Let it be remembe.'ed, too, that only 60 per cent, of the entire sales of spirits in Sweden (companies have no monopoly of wholesale trade) is controlled by the companies. Norway makes still better showing. National drinking Norway, customs were not so fixed as in Sweden, but the influences of climate are the same. The low limit of monopoly, ex- tending only to 10| gallons at one purchase, has been a very serious handicap. Nevertheless, from 1876, when the companies began really to take root, to 1892, when they sold slightly more than half of all the spirits dispensed. 80 POPULAR CONTROL OF THE LIQUOR TRAFFIC. 1876-1892. consumption per head diminished from 7 to 3^ quarts, or, as if emulating the record of the sister kingdom, more than one-half. The following table gives the average consump- tion per individual, and the percentage of companies' sales each year. Total con- Per cent, of sales Total con- Per cent, of sales Yeai's. sumption per by Companies of Years. sumption per by Companies of Inhabitant. total sales. I Inhabitant. total sales. Quarts. Quarts. 1876 7-0 8-3 ; 1885 3-7 31-9 1877 6-3 14-8 ! 1886 3-2 41-3 1878 4-7 22-3 ; 1887 3-0 43-4 1879 3-4 24-0 i 1888 3-2 401 1880 4-1 21-1 1 1889 3-4 41-8 1881 3-2 30-1 1890 3-3 49 1 1882 4-0 25-3 1891 3-8 42-9 1883 3-5 34-1 1892 3-3 51-3 1884 3-7 34-2 Evidence of Concomitant Variation, i.e. tbe Larger the Sale by the Companies, the Smaller the Consnmp- tion per Inhabitant. Concurrently with the growth of the company system there has been a notable diminution in the consumption of spirits per head. When the companies made one-twelfth of all the sales, the average individual drank seven quarts, reckoned at 50 per cent, of alcohol, per annum. When they did one-half of the business the same individual con- sumed but 3J quarts. Is there not here, again, strong ground for asserting that the Norwegian method of control has caused a notable decline in consumption 1 The decrease has not been steady from year to year. Variations have taken place notably between 1879 and 1880, between 1881 and 1882, and again in more recent years. Almost uniformly a rise in consumption per head has been accompanied by a relative decrease of business done during that year by the companies. Whatever was RESULTS OF THE SCANDINAVIAN SYSTEM. 31 the cause, the advance, therefore, could not have been due to any laxity on their part or to any greater drinking by their patrons. Let us note that in 1880 the companies sold but 21*1 per cent, of the total quantity, whereas in 1870 they dispensed 24-5 per cent. In the meantime consump- tion advanced from 3*4 to 4*1 quarts per inhabitant. Again, in 1881 they monoix)lised 30*1 per cent, of the total trade. The consumption per head was then 3*2 quarts; but in 1882, when the business declined to 25-3 per cent., consumption rose to 4 quarts. In 1887, when consumption per head was the lowest, the companies' proportion of total sales reached almost the highest point it has yet attained. With that proportion, absolutely the highest, as in 1892, individual consumption is infinitesimally near low- water mark. To-day spirit-drinking in relation to popu- lation is less current in Norway than in almost any other civilised country. Divorcing money-making from the public-house and retail The Result of spirit business — in other words, the Scandinavian company private Prollt. plan — furnishes incontestably the reason why nations like Sweden and Norway, even though heavily handicapped by climate and hard-drinking customs, are nevertheless able to show a remarkable decrease in consumption, while other countries which allow private profits to be made are being slowly submerged by the alcoholic tide. The following diagram, taken from the report of the Massachusetts Legislative Commission, will repay careful study. In Mr. Koren's words, " tracing the growth of business done by the companies from the early beginning, we note con- currently with it a very marked diminution of con- sumption."* * See Appendix B, page 100. 32 POPULAR CONTROL OF THE LIQUOR TRAFFIC. Table show- ing Consump- tion of Spirits in Norway, 1876—1892 OS oo o CO o Ph < if o 12; H i-t Ph o o H 03 ?; o O t< ^ - a> X 5 ^^■^-e CO^OMO— iccfoioiraooo— ifN—iooeo '/J - i< 2 o«>TjHcoTiHcoec?owccM(Meocoeocccc ^ ooooooooooooooooo ooooooooooooooooo 'TBt ooooooooooooooooo "irS 0>COi:0-> enta sale pan l^»r-HMi^MTj«0-*-?*0 >0 'O 05 'O OS Tti C^ O »0 •— ' -^ »— < -^ CO Tt< 'O !S.2^ «b.^OSi*-'004l<(3iOOaOOOO«3iC.^OS-^W ^a1 kO>O-*t-H00^iO»rat— (Mira'>:l«OSt~--«*<,— ICO 0_0 ifS '"I,'-"' 00 i-H O O ^CO •-I >ft_O^U5 OS ■— • T3 = E oocot— ■*^osoc^'*-*e*3'«'— "Os-^ooos "?! O >S «oooo5oocovraif>cccO'*'co-*-»t-iO'OOSO0 0S05C^>O«0»-l00O"*0i0S0STj< osc^ocost-^osos'^t^cot^oooseoos'^ CCO0S'O«0«CiXit^O •— 1 pH ( ................. 1 cot— OOOSOf-iC^COTt^ < w c n y. M K H o O O H O a; O H o 02 c 5? .a S 3 O (A CA o s to 3 O 3 CO (1 3 v S 3 o S s fc.ti H 3 ^^i-S " O .G » S?5 a 3 2 03 tH 3 « > 01 to u .fa •a*s:S>1r CO B O >-. 1(Mr-ii— li— (I— li— Ir-lr-li— ti— (r-(>— t 'MC^C^l— lr-(i-Hr— tr— IrHl— rSQ0Ci! -^ O «3i 00 l-- l— l-« t^- l-» «0 O W3 kO lO I— I I— t I— ( 1—1 I— ( rH oooo505Ttii^eovra»o<— i>ocoo^i— t--0'— '>ra iO;0<©CO<:0<©t^t— I— G0Q000050505OOO CiOt^COW5i-ll— eOCO5O0O.-l'<*<0O(MTt<.-(iM 1— los'Ocot— 05(M05(MC0i— loocoi— co»o i-*l'-OOOC^00050rHCvlO>»niO>00«0. cc^icrorco~>-ri-ro~co t-^co^ocrorrNrcTicric'orvo' f-^eOC^l.— lOOOOOOOSOOi— i(MCOi— I C0i:pt--(?^O«0C0r-itv.t— Ci -^ (fi I— ' o »b o 'b i) cy:> «o 1— I i'--- b- ko o i^ o co^ GO~ G)OC'N05kO Oic; ojt— co«3«oi--aooooooooj050aooo o^ibr-i'^cooa5i— < cotMooOi-HcooicooococoooiocO'— icotor- 'oc^icciioccoo'^oioocoi— iec»oiCGOeoifro o r- 1 (N Qo" i-^r^ 1."^" t— CO UO 00 CO f-H -riT t-Totf QO 1— 1 O f-H r- o CO 05 05 (M ■* CO CO Tfl vO CO 05 "* CD t- 00 00 t- t— «o ^ lO «o CO CO CO vra >o vO U5 kOCOb-'XCSOi— i(MC0-<*»O«0t— OOOiO<— l Reduction of "The reduction in consumption that followed on the Crime, etc. introduction of control was immediately accompanied by results connected with crime, poor relief, savings banks, increased consumption of current domestic necessaries, etc., which all indicated great benefits derived from control. For instance, the annual average of criminal cases for the five preceding years was 71, and it fell at once to 47. The annual average of police ofiences connected with drunkenness was, in the five preceding years, 97, and it at once fell to f>Q. Cases of picking the pockets of intoxi- cated persons, previously a common offence, entirely ceased. Hours of « x.t first the society kept its premises open for the full Business. . . . . hours permitted by the licensing law — viz., from 8 a.m. till 10 p.m., that is, 14 hours. Now it only keeps them open for 9 J hours — viz., 9 a.m. till noon, and 1.30 till 8 p.m. — the shop being closed at 7.30 p.m. "The Christianssand Society's bar sales, which in 1872 were 41,376 litres, had fallen in 1876 to 32,387 litres, al- though the total sales, which in 1872 were 224,627 litres, had risen in 1876 to 269,046 litres. The times had in that quin- queni.ial period been very flourishing, especially in the rural district. There was abundance of employment at previously unknown high wages ; yet it is a striking and satisfactory RESULTS OF THE SCANDINAVIAN SYSTEM. 51 circumstance to note that, in spite of the increased total consumption, the bar sales were greatly reduced, as it is the bar sales that afford the truest guide to the effects of control. "In the 21 years the society has operated it has earned Net Profits, net profits to the amount of £54,724 2s. 9d., whicli all has Expenditure, gone, or will yet go, to support objects of public benefit and utility, which are not statutory burdens on the local tax- payers. To show the nature of the objects of "public benefit and utility," I will name a few : — Workmen's Union Evening School ; School of Cookery ; Board and Lodging for Diligent Board School Children during their Holidays in the Country ; Christianssand School of Industry ; Christianssand Technical School ; Boys' Industrial School ; Workmen's Union Library ; Cathedral School Library and Museum ; Board Schools Pupils' Library ; Town's Library ; numerous Abstinence Societies, Good Templar lodges, and Blue Ribbonmen Societies ; Sick Nurses' Institution ; Mag- dalene's Refuge ; Discharged Female Prisoners' Homes ; Prisoners' Aid Society ; Public Sea Baths for Men ; Public Sea Baths for Women ; Quay Labourers' Waiting Rooms ; Workmen's Union Sick Fund ; Industrial Society for Needy Women ; Workmen's Union Asylum ; numerous Asylums for Children, and a host of other similar beneficial objects too numerous to detail here. "The burgomaster and the superintendant of police, Favourable and tlie British and U.S. America consuls in Christians- Teetlmoiiles. sand, have been good enough to favour me quite recently with their opinions in writing of what the local controlling society has effected, and they unanimously report that the operations of the society have unquestionably been of immense benefit in the promotion of temperance and sobriety in the locality. E 2 . 52 POPULAR CONTROL OF THE LIQUOR TRAFFIC. Consumption of Liquor, 18721892. " Personallyj I have known this town well for 34 years, and my experience quite coincides with that of the four gentlemen named." The Massachusetts Legislative Commission has pub- lished a table giving a resume of consumption per head during the different years. It differs somewhat in the estimation of the number of persons within the area of the company's operations. Like Mr. Wilson, Mr. Koren attributes the sharp rise in bar drinking during 1892 to the influx of labourers employed in rebuilding the town after the disastrous fire. Consumption of Liquor in Christianssand, 1872-1892. i Estimated population of Chris- tianssand and Country Districts. Sold by the Company Sold by others at wholesale. Total. Average con- sumption per in- habitant. s Over the bars. At retail. At whole- sale. Quarts. Quarts. Quarts. Quarts. Quarts. Quarts. 1872 31,897 42,874 97,498 10,635 81,763 23-2,760 7-29 1873 32,225 46,103 111,742 12,808 126,040 296,693 9-20 1874 32,405 41,314 127,187 6,076 152,110 326,686 1008 1875 32,737 38,294 137,284 11,675 123,746 310,879 9-49 1876 32,998 33,500 128,871 6,768 109,589 278,789 844 1877 33,316 37,965 125,977 2,763 116,.502 283,207 8-50 1878 33,501 40,849 109,046 2,227 45,452 197,424 6-89 1879 33,630 37,072 88,694 2,212 49,664 177,642 6-28 1880 33,894 38,354 86,168 1,020 38,064 163,609 4-82, 1881 34,164 35,699 94,143 1,689 26,090 157,621 4-61 1882 34,471 21,826-1 100,167-8 2,370-2 36,877-8 161,241-9 4-67 1883 34,684 16.439 102,413-3 3,107-8 48,859-7 170,819-8 4-92 1884 34,992 15,416 102,493-6 2,287-8 18,611-7 138,808-2 3-96 1885 35,214 16,578-6 97,859-9 1,192-0 49,513-8 165,144-3 4-68 1886 36,262 14,715-6 96,275-9 5780 21,869-5 133,439 3-77 1887 35,316 13,134-8 88,157-3 681-6 20,757-8 122,731-6 3-47 1888 35,616 13,202-3 86,323-9 528-4 21,899-1 121,953-7 3-43 1889 35,721 13,626-1 87,317-2 365-6 12,652-9 113,961-8 3-19 1890 35,878 14,866-6 100,580-9 696-4 12,664-5 128,788-4 3-58 1891 36,178 18,220-7 98,049 1 263'6 5,937-6 122,461 3-38 1892 37,000 23,265-5 114,917-1 675-2 2,134-5 140,982-7 3-81 ItESULTS OF THE SCANDINAVIAN SYSTEM. 53 The number of licences exploited furnishes in a measure Unused a criterion of the companies' efforts to reduce temptation ^iJJJfJ^ and to restrict consumption. When the system was in- augurated in 1871 the number of public-house licences in existence in Norwegian towns and cities was 501, to-day but 227 are utilised. Companies have the legal right to use nearly the original number, but they refrain from doing so in the public interest. Expressed in the form of proportion to inhabitants, the reduction has been from 1 for 591 to 1 for 1,413 persons. In the whole country district of Norway but 25 licences for the sale of spirits remain — 1 to about 8,000 people. Half of these are at the fishing stations in the North. Statistics for Sweden are not available far enough back to show the full measure of improvement. In 1880 there were G92 inhabitants to one licence to sell spirits (both retail and bar licences are included); in 1892 there was but one licence to every 1,073 people. In the country districts the respective rates during the same period were 1 for 13,450, and 1 for 22,526 persons. Following are tables for Gothenburg, Stockholm, and Proportion a Licences to Bergen. They speak for themselves. Population. 64 POPULAR CONTROL OF THE LIQUOR TRAFFIC. Gothenburg ; GOTHENBURG. Licences Used and Population Compared from October 1, 1866, TO Skptember 30, 1893. Retail licences Licences used for Retail licences transferred to wine Population of consumption on used by the merchants for tiie the premiser?. company. sale of higher- Years. Gothen- burg. grade spirits. Per Per Per Number. 10,000 in- habitants 5 Number. ;10,000 in- habitants Number. 10,000 in- habitants 1865-66 45,750 23 1866-67 47,332 28 5-9 1867-68 47,898 30 6-3 — — — 1868-69 50,438 43 8-5 — 1869-70 52,526 42 80 — — 1870-71 53,822 43 80 — 1871-72 55,110 42 7-6 1872-73 65,986 42 7o 1873-74 56,909 41 7-2 , — 1874-75 58,307 35 60 7 1-2 13 2-2 1875-76 59,986 36 60 1-2 13 2-2 1876-77 61,505 38 6-2 11 13 21 1877 78 63,391 38 60 11 15 2-4 1878-79 65,697 40 61 11 16 2-4 1879-80 66,844 39 5-8 10 18 2-7 1880-81 68,477 40 5-8 10 17 2-5 1881-82 71,533 40 5-6 10 19 2-7 1882-83 72,555 40 5-5 10 22 30 1883-84 77,653 38 4-9 •9 23 30 1884-85 80,811 39 4-8 •9 23 2-8 1885-86 84,450 40 4-7 •8 22 2-6 1886-87 88,230 40 4-5 •8 23 2-6 1887-88 91,396 40 4-4 •8 23 2-5 1888-89 94,370 40 42 23 2-4 1889-90 97,677 40 41 23 2-4 1890-91 101,502 40 3-9 23 2-3 1891-92 104,215 40 3-8 23 2-2 1892-93 106,356 40 3-8 23 2-2 Since October 1, 1868, the company has held all the licences for consumption on the premises, with the exception of four houses which have ancient and special privilege for serving superior liquors principally, and from October 1, 1874, all the retail licences have been in the hands of the company. RESULTS OF THE SCANDINAVIAN SYSTEM. 55 Licences in Stockholm, 1886-1892. Year. Bar-trade. 33 C •a ^ ^- . fc g S U.-5 ■a = «■•;;.£ H o o I o 2 CIS o Retail. >.>. 1 by to sale rade Used b com pan i> 3 O ili 13 -2 Licences used per 1,000 inhabitants. ri ■ Bar-trade. Retail. Com- Trans- pany. ferrcd. Com- Trans- pany. ferred. Stcckholm ; ERIIATA. Puge 55, first table, for " Licence.s used per 1,000 iu- liabitants," read " per 10,000 inhabitants." Page 75, line 10, for ** Farmer ,' read " Forum'' Page 79, line 9, for " Local limitation," read " Legal limita- tion." 1877... 40,760 14 60 3-5 15-0 1878... 41,512 14 60 1879... 42,280 14 60 — 1880... 43,062 13 60 1881... 43,858 13 60 — 1882... 44,669 13 60 — 1883... 45,493 13 58 2 '— ^ 1884... 46,332 13 57 3 —' 1885... 47,995 13 56 ' — 1886... 48,335 13 56 — — ■■ 1887.. 49,623 13 56 1888... 50,902 13 56 1889... 52,252 13 56 1890... 53,686 13 bG 1891.. 55,112 13 56 2-4 10-4 m POPULAR CONTROL OF THE LIQUOR TRAFFIC. Qothenburg; . xr GOTHENBURG. Licences Used and Populatiox Compared from October 1 1866 _^_^^_^___ TO September 30, 1893. ' Ytiars, Poi»ulation of Gothen- burg. Licences used for consumption on tlie premises. Retail licences used by the company. Retail licences transferred to wine merchants for the sale of Jiifther- grade spirits. Pai- 1886-87 1887-88 1888-89 1889-90 1890-91 1891-92 1892-93 84,460 40 4-7 7 88,230 40 4-5 7 91,396 40 4-4 7 94,370 40 4-2 7 97,677 40 41 7 101,502 40 3-9 7 104,215 40 3-8 1 106,356 40 3-8 7 •8 22 •8 23 •8 23 23 23 23 23 23 2-6 2-6 2-5 2-4 2-4 2-3 2-2 2-2 Since October 1, 1868, the company has held all the licences for consumption on the premises, with the exception of four houses which have ancient and special privilege for servingsuperior liquors principally, and from October 1, 1874, all the retail licences have been iu the hands of the company. RESULTS OF THE SCAJ^DINAVIAN SVSTEM. 55 Licences in Stockholm, 1886-1892. Ha r- trade. Retail. Licences used per 1,000 inhaliitants. V3 S 67 Transferred by couipauy to others for sale of higher-grade spirits. 03 3 a 20 3 170 _ rt ^8 27 Transferred by compauy to others for sale of higher-grade spirits. i I o H Year. IJar-trade. Retail. Com- Trans- paiiy. ferred. Com- Trans- pany. ferred. 1886-7 83 51 12 90 3-1 3-8 1-2 2-4 1887-8 67 86 17 170 27 51 12 90 — — 1888-9 m 84 20 170 27 51 12 90 1889-90 65 86 19 170 27 51 12 90 — — 1890-1 64 84 22 170 27 51 12 90 — — 1 1891-2 63 80 27 170 27 51 12 90 2 5 3 2 1-1 2-1 1892-3 63 80 27 170 ' 10 90 1 Stockholm ; Licences in Bergen, 1877-1891. Bar-trade and retail Licences to l)rivate in- Licences Licences per 10,000 Inhabitants. Year. Popula- tion. licences for sale of spirits monopolised by the company. dividuals for sale of wine and beer by grant or privil»;ge. to the company for sale of wine and beer. For sale of spirits held by company. For sale of wine and beer held by private indi- viduals. 1877... 40,760 14 60 3-5 15-0 1878... 41,512 14 60 — 1879... 42,280 14 60 1880... 43,062 13 60 1881... 43,858 13 60 — 1882... 44,669 13 60 — 1883... 45,493 13 68 2 — — 1884... 46,332 13 67 3 — — 1885... 47,995 13 66 4 1886... 48,335 13 66 4 — — 1887.. 49,623 13 56 4 — 1888... 50,902 13 56 4 1889... 52,1.»52 13 66 4 — __ 1890... 53,686 13 66 4 -_ 1891... 55,112 13 56 4 2-4 i 10-4 Bergen ; 66 POPULAR CONTROL OF THE LIQUOR TRAFFIC. \ I Entrance of the company upon the field of action has j undoubtedly prevented the licences granted to private i individuals for the sale of wine and beer over the bar from. I ' keeping pace with the advance in population. I Christiania In Christiania and in Christianssand, under the old ; tianssand. r^git^Q, the ratio of public-house licences to population was 1 to 1,816 and 1 to 1,274. In 1892 the respective pro- portions were 1 to 5,516 and 1 to 2,566, Compare the figures for these five Scandinavian towns with cities of the same size in England and America, and note the difference. Police Only the merest tyro in statistical science would Arrests for attempt to gauge the efficiency of any method for con- Drunkenness, trolling the liquor traffic by the number of arrests for drunkenness. Especially will well-informed persons refrain from making international comparisons. Laws relating to drunkenness differ materially, and there is still greater variance of police practice in dealing with offenders. In 1 Sweden the law requires that a person showing signs of being fuddled shall be taken up. Anglo-Saxon policy is based on the exhibition of utter helplessness or disorderly I conduct. Regulations apportioning a part of the fines to I police funds furnish an artificial incentive, while the progressive popular intolerance of inebriety which accom- panies a reforming regime, plays likewise a most important part. Published statistics of drunkenness are usually ♦ alueless, because they are rarely a.Jferentiated to show how many times the same person was arrested. Only such figures can indicate whether the actual number of persons I drinking to excess is on the increase, or whether pro- I fessional tipplers are simply indulging more freely. Furthermore, the area to which any system applies must RESULTS OF THE SCANDINAVIAN SYSTEM. 57 be studied as a whole, and not individual districts alone. It is evident that, if there be no licence in the country, and licence in the towns, the former's more jovial in- habitants will utilise occasional visits to the cities to drink to excess. Statistically, though not really, such offences belong to the places where they are committed.* Statistics of drunkenness in Norway are not published for the kingdom as a whole. In Sweden the number of convictions declined from 6 '7 per 1,000 inhabitants in 1874 to 4'3 in 1891. For cities of prominence the advance of prohibition in surrounding country districts has added to the burden, but the prime cause of increase, where such has taken place, is the uncontrolled consumption of beer. All reliable authorities agree in this estimate, and their opinions are confirmed by the statistics of beer drinking. Consumption of malt liquors, which advanced in Sweden WMchls from 16 quarts per inhabitant in 1874 to 28*2 quarts in SicoiSirolled 1890, and in Norway from 16 9 quarts per inhabitant in Beer,— 1871 to 31 '2 quarts in 1891, cannot have been without potent influence. Is decreased consumption of spirits, which are sold under strict regulation, or increased con- sumption of beer, which is dispensed without restrictions, in the nature of things, more likely to account for drunk- enness 1 Returning again to the relation of drunkenness to the AndlsNotably company system, the opinion of those in ^positions of ^ •" administrative authority, where good opportunities exist for correct judgment, is that, compared with previous conditions, the effect of the existing rSyime has been to bring about a notable decline in drunkenness and a very marked imj)rovenient in general sobriety. The governors of provinces in their last quinquennial reports submitted * See Appendix C, page 101. 58 POPULAR CONTROL OF THE LIQUOR TRAFFIC. answers to inquiries in this direction. Twenty-one of them responded that drunkenness had considerably diminished in their respective regions, one that the situation Iiad remained unchanged, one that drunkenness had not diminished, and two that it was difficult to form an opinion. The testimony of experience, whether from those favourably or unfavourably inclined to particular features of the Scandinavian system, is that it has undoubtedly effected an important reform in drinking habits, par- ticularly of working people. Statistics of Statistics of pauperism abound with even more treach- erous pitfalls for the unwary. Everywhere public sense of responsibility towards the unfortunate has deepened during the last three or foTir decades. The logical result is that this class is not only better cared for, but more are being helped. To find the pauper constituency statistically advancing does not necessarily argue deterioration of habit, growing failure of self-respect, or the application of senti- mental methods in reliei. The concentration of population in urban centres represents in large degree a flocking together of the unfit. Here public institutions to care for those who fail in life's struggl*^ exist in great variety. Complicated Methods of enumeratinix the poor differ in various by Different . MetUods. countries and at different periods. As an illustration, in Sweden, during recent years, those receiving gratuitous hospital or dispensary treatment figure in the pauper record. Take another case showing divergence in systems of registration. In Gothenburg, if the head of a family is helped by having his rent paid from the poor rate, the whole family are inscribed as paupers. Supposing there are eight children, and that both parents are alive, there would be ten recipients of relief. If rents were paid in this RESULTS OF THE SCANDINAVIAN SYSTEM. 59 manner monthly, during eight months the record would show eighty paupers ; if weekly, during the same period about 350. Figures which indicate that one pei*son in every nine inhabitants of a thriving commercial city is a pauper ought to arouse suspicion in any discerning mind. Yet the totals have been accepted and quoted by adverse critics in England and the United States as evidence that somehow or other unparalleled poverty is closely connected with the company system. Crime bears a positive relation to drink, but the terms of this relation cannot be mathematically expressed. There is always a tendency among the lapsed, who especially appreciate the value of sympathy, to lay all their mis- fortunes to tippling. In concluding this chapter, a word may be offered on the subject of the surplus revenues arising from the sale of drink. The Norwegian method of distribution possesses one strikingly meritorious quality. Ownership of a share of capital stock carries with it the right to vote for repre- sentatives on the committee of management, to which belongs the function of apportionment. Public interest in the operation of the company is thus widened. It is not far from axiomatic truth to say that whenever civic spirit is aroused, and the attention of that class of the community which makes philanthropy a preoccupation is enlisted, particular objects of scrutiny will behave circumspectly. In the distribution of surplus revenues under the com- pany system three principal objects should receive generous recognition. The first of these is education, not in its general but in its special phases. Part of the revenues should be appropriated to found kindergartens, manual training schools, and schools of industrial art. Kinder- Crime. Merit of Norwegian Method of Distributing Profits. Objects Claimingr Special Re- cognition : (a) Education of Children ; 60 POPULAR CONTROL OF THE LIQUOR TRAFFIC. gartens are selected because results testify unimpeachably to the useful moral effects of their training. What other agency can boast of a record like that of the San Francisco kindergartens ] An investigation, following ten thousand children in after-life, has disclosed the astounding fact that only one kindergarten child has been arrested. Schools* Manual training institutions invite support because a boy whose eyes and hands are early trained to translate ideas into material objects is not likely later to become a burden to society, through inability to earn a living. His mechanical aptitudes become so much capital. Industrial art schools have a claim, in order that scope may be given young women as well as young men to develop higher industrial capacities. Kindergarten and manual training have received too scanty recognition in Anglo-Saxon educational polity. The one represents the ethical, the other the industrial element in education. Neglect of home-training during the period when the character is chiefly formed, and that environment of childhood inimical to sound physical and moral development which obtains in every large city, emphasise the importance of the one, as the economic benefits of superior craftship delineate the advantages of the other. (c) The Social Urban public houses minister in two respects to the Entertain- , ^ ^ . ment and working-man. They are labour exchanges and social the^PeoSe.^ ^^^^^^^- ^^ abolish these without providing substitutes would be rank injustice. Therefore it becomes necessary to apportion a generous share of the profits of liquor com- panies for this purpose. To carry out this idea, it is only necessary to have in the same building, or next-door to the company's liquor-shop, a coffee-house and rooms for reading RESULTS OF THE SCANDINAVIAN SYSTEM. 61 and entertainment, as well as for hire for social gatherings. Let as many as possible of the recreative features of a gentleman's club be introduced. The public-house proper should be closed promptly at 7 o'clock, so that, from this time on, the annexe may be the ral lying-ground. Soft drinks, light refreshments, newspapers, pool and billiards, draughts and chess, smoking and conversation, should be elements in the entertainment. If possible, the attractive- ness of the well-equipped modern public-house should be outdone. Let these privileges accompany the purchase of a soft drink or a portion of refreshment, and the American free lunch of to-day will never be regretfully recalled. There ought also to be liberal appropriations for popular evening concerts. These should be held at frequent inter- vals in different parts of a city, so as to be easily accessible to everybody. The admission fee should be such as the working-man and his family could readily support, and the inevitable deficit made up by subsidies from the liquor fund. The popularisation of music and art is of great civilising importance. Its sociological import, too, is of the highest. It reacts favourably upon family life, and saves male members from the unfortunate or evil associa- tions surrounding public-house and cheap music-hall enter- tainments. No class of persons stand in greater need of recreation than working-people, yet to no other is so little available. The conditions of city life need to be vastly ameliorated in this and other ways before there can be au appreciable diminution of drinking. Private Profit. CHAPTER III. THE COMPANY SYSTEM THE BEST METHOD OF CONTROL. Advantages Of It may not be out of place to preface this final chapter vian System • "^i^h a brief summary of the advantages and disadvantages of the Scandinavian system of control. Elimination of 1. The supreme advantage of the company system is the elimination of private profit from liquor-selling. Through this means, what we may regard as at best a dangerous traffic is taken from the hands of a self-seeking class of persons, frequently of a low type, and always, perhaps, endowed with an imperfect sense of moral responsibility, and given to an organisation representing disinterested public welfare. The business is then carried on with a view of reducing consumption to the lowest possible limits. Not infrequently, as in the case of the Gothen- burg company under the administration of Dr. Sig- frid Wieselgren, the directing authority is composed of men who abominate the whole business and take charge only from a sense of public duty, and in order that they may minimise the evils and ultimately extinguish them. I think no company can give better evidence of its philan- thropic aim than to place its direction in the hands of a sensible temperance man, nor ought any high-minded abstainer to shrink from the task. If liquor must be sold — and few, even of the most ardent Prohibitionists, will deny that it will continue to be for some time yet — is it not vastly better to take the traflBc from the control of the present lower COMPANY SYSTEM BEST METHOD OF CONTROL. 03 element of society, representing but moderate intelligence and inferior moral perception, and place it in the hands of reputable men with no economic interest to serve 1 Is it not also better to apply the vast profits of the business which now go to enrich a dangerous class, to corrupt politics and to debase social life, to objects of general public utility and towards lessening the burdens entailed by strong drir.lr 1* 2. A conspicuous merit is the complete divorcing of the Liquor Traffic liquor traffic from politics. In these countries the elimina- ^PoUtics.^"^ tion of the liquor element as a political power is complete. The shareholders in the companies are, as a rule, prominent citizens — in Gothenburg, for example, some of the very best known — and this can be said of all the larger com- munities. In none of them have shares become so concen- trated that anything like a particular interest could be created. It is true that in some of the smaller towns of Sweden minor abuses have not been effectually guarded against ; but, under the stricter regulations in Norway, pernicious methods of administration are unknown. The employees who deal directly with the practical details of the companies' business are simply paid servants, and none of them, so far as can be learned, hold any position whatever under the city or local governments or have friends or backers therein. Charges of "ring " politics in connection with liquor companies may be completely discounted. Especially in Norway is the divorce absolute and com- plete. 3. The company monopoly has been so administered Number of that a general reduction of the number of licences has been Reduced. brought about everywhere. This means lessening of tempta- tion to drink. The appropriate facts have already been * See Appendix B, page 100. 64 POPULAR CONTROL OF THE LIQUOR TRAFFIC. Safeguards Provided Against Abuses. adverted to in the previous chapter, and need not be reiterated. Certainly no nation in the world can show such a low ratio of licences to population as can Sweden and Norway, Side by side with the reduction of licences there has been a marked improvement in the character of the public-houses. The sites chosen have been, as a rule, in public places, and they are thus open to the most rigid scrutiny. In Sweden, where sub-licensing is resorted to, the police authorities uniformly avail themselves of the right afforded in the contracts made by the companies with sub-licensees to impose conditions which put an effectual stop to gambling or immoral practices in places where liquor is sold. It is an iiaportant advantage that the companies are directly amenable to public authority and public opinion for the exercise of their trust. 4. A series of efficient checks is interposed against breach of trust, supposing that under the company system there may exist an inclination to commit it. In the first place, the final decision concerning all matters in Sweden, for example, rests with the governor, who is an officer appointed by the crown, and a man of high character and wide administrcttive knowledge. Secondly, the licences hold good only during the governor's pleasure. In Norway a faithless corporation may be brought immediately to task simply by the threat of extinguishing it As has been already shown, this was effectually carried out in the case of one company which was inclined to place the economic interests of the municipality above the social interests of its inhabitants. Thirdly, an efficient c^-operation is established between the company and police officials. Blackmail and bribery under such circumstances become an impossibility. Fourthly, the disposition of profits, COMPANY SYSTEM BEST METHOD OF CONTROL. 65 whether under the Swedish or the Norwegian plan, are so provided for that fair dealing only can ensue. Fifthly, the general conduct of the business is always open to public inspection and criticism. The requirement that printtMl reports of the transactions of the companies in Norway shall be published every year, is a salutary measure. Sixthly, the company monopoly secures strict enforcement of legal and police regulations in relation to the liquor traffic. 5. The companies have in some measure gone beyond the legal requirements in the line of public interest, thus emphasising their desire to contribute to the public weal. This has been manifest particularly in raising the age of minority from fifteen, where the laws puts it, to eighteen, as regards selling drink to young persons, and also in insisting upon immediate cash payment for liquors sold. Again, they have gradually advanced the price of drinks, at the same time reducing their alcoholic contents. Strin- gent regulations against loitermg around public-houses are also characteristic of Norwegian prescriptions. 6. Early closing under the company system has become a fixed practice. In Norway saloons are closed on Sundays and at those periods of the day when the working-man is most tempted to drink. It is impossible for him to spend his leisure moments carousing at bars, and thus be almost involuntarily led to squander hard-earned wages. Nothing whatever is found in Norwegian saloons which invites to conviviality. Generally there are no seats, and the regula- tions, which personal observation leads me to say are enforced, are all designed for the orderly conduct of the business, and render drinking to excess a very difficult matter. F PubUo Interests are furtbered by Companies beyond Legal Require- ments. Early and Sunday Closing:. I' ; 66 POPULAR CONTROL OF THE LIQUOR TRAFFIC. Interests of 7, Employees being paid fixed salaries, fair in amount, Employees ... . . . . . and the and Civil Service principles bein«( established in promotion, Identl^U. ^ there is not the same temptation to push the sale of drink ; on the contrary, it is made distinctly an object to act otherwise. No Evasion 8. All taxes are paid under the company system — a nor tendency nierit which cannot be predicated of every licensing regime. Municinal "^''^ charge has sometiuH'S been made that the company Cupidity. system has stimulated nmnicipal cupidity. This is ground- less. There is a natural and impossible limit to cupidity of this sort which, if overpassed, will bring ruin to any com- munity. Municipal cupidity would mean stinmlation of consum})tion, but the statistical data quoted in the last chapter show tha^ consumption per head has notably diminished in both Sweden and Norway under the company ref/inie. Were the municipalities anxious to make money directly out of the licpior traffic, the excise tax on the consumption — which, in Sweden, goes entirely to the municipal treasury, apart from the profits of sale in which the municipality has only a share, and in Norway to the poor fund, a municipal burden, would be more libeially estimated than it is. The revocation of the charter of the Langesund company furnishes further refutation of this charge. Sub-licensing 9, A distinctive merit of the Norwegian plan is, that in STorw&v and Sweden, indiscriminate sub-licensing is unknown. Such privileges are granted only as public interest may require, and where an effectual control can be exercised against abuse. In Sweden, where sub-licensing prevails, a good sized fee is usually required. In Gothenburg about .£140 per annum is the average charge exacted for a sub-licence. 10. The assistance rendered, financially and otherwise, in COMPANY HYUTEM BEST METHOD OF CONTROL. 67 promoting the cause of temperance. In Norway a moderate sum is annually expended iu subsidising temperance societies. In several localities, particularly in Norway, cordial co-operation exists between agencies for the spread of teetotalism and the companies. 11. The attitude of the temperance party is particularly important. Were the companies not succeeding in their avowed aim and accomplishing successfully the huge task of restricting the evils of the traffic, total abstainers would become their most earnest opponents. On the contrary, while they do not desire the system as a permanency, it is equally true that all of the more intelligent abstainers regard it as a salutary agency of progressive reform. There are 30 total abstainers amongst the 238 members of the Lower House of the Swedish Parliament. These, with 40 others, have voted in favour of a prohibitory rejime, but they havtj never officially clamoured for the abolition of the existing system. The leader of the pro- hibition party in the Lower House, in a letter to me, made use of these significant words : " As to my personal view of the results of the Gothenburg system, I will merely add that, with all its defects, it is vastly preferal)le to free trade in liquors, or to the ordinary licensing systems." Dr. Wieselgren, President of the Swedish Temperance Society, is the most doughty champion of the plan. In Norway. Mr. H. E. Berner, of Christiania, is not only the best authority on the company system, but also one of its most ardent exponents. He is the authority for saying that "a great mass of abstainei^s have vigorously united in supporting a proposition recently formulated V)y a royal commission, which does not advocate abolishing the companies, but would grant them a complete monopoly of F2 FinanciiJlAid rendered to Temperance Work. The System has won the approval of the Temper- ance Party, 68 POPULAR CONTROL OF THE LIQUOR TRAFFIC. all sales of spirits." He also says that " the regulations of the companies must be regarded as having worked success- fully, and contriVjuted greatly to restrict drunkenness, while the profits have generally been devoted to the promotion of enlightenment, morality, and proper social spirit." Much capital has been made out of the passage of a resolution at the annual session of the Norwegian Grand Lodge of Good Templars, in 1893, which was unfavourable to the company system. The fact has since transpired that this slipped through without the full knowledge of the meeting, and the committee on resolutions has since refused to acknowledge it. Whose Mr. Lars O. Jensen, who is one of the most prominent Leaders nagj^jbers of the order, and at present Right Worthy Grand Templar for Norway, the representative of the society to the recent International Alcoholic Congress at the Hague, and the editor for Norway of the " Internationale Monat- schrift," thus writes (his letter is in my possession) con- cerning the matter in question : "This resolution is now, I think, generally considered a mistake, even among the Good Templars themselves. An old temperance man who is very much opposed tu the company system sent a letter to the meeting asking it to adopt the said resolution, which it did. The resolution condemned the system in that it declared that it had failed to materially decrease the consumption of alcoholic liquors. This same old gentleman wrote to the annual meetings of the Norwegian Total Abstinence Society and the Blue Ribbon Army, but at these meetings no such resolution was carried. As to the attitude of the representative temperance men, I refer you to my paper read before the International Alcoholic Congress at the Hague in 1890. I do think that they COMPANY SYSTEM BEST METHOD OF CONTROL. 69 almost unanimously favour the company system as against individual licensing, and in this very year (18U-4) they have done their utmost to have the company system more fully carried out through the law just passed by Parliament." Mr. Sven Narrestad, a meml)er of the Norwegian Parlia- ment, and editor of the official organ of the Norwegian Total Abstinence Society, has also shown his good feeling ))y assisting Mr. Berner in passing the new amendments to the Norwegian law which will enable the companies to operate more effectively. The attitude of such influential spokesmen of the temperance parties of Sweden and Norway will be deemed by any rational man as fairly con- clusive testimony. It nmst not be supposed that total abstainers are completely satisfied with the plan. They believe, however, that it is the best measure for progressive advance, and their efforts are directed to reforms in matters of detail rather than to changing the principle. They believe that the educational influence of the reyime will, in the course of time, make prohibition a possi})ility. Messrs. Berner and Narrestad, particularly, art? positive in their statements that the company system is not a hindrance, but a help to ultimate prohil)iti<)n. Mr. Berner writes, " this view seems also to be acknowledged by the Norwegian Total Abstinence Society with its 100,000 members, for at its great annual meeting at Christiania hist August the warmest thanks were officially voted to Mr. Narrestad and myself for having done our best in Presa for an passing the new law to more fully carry out the company the Powers system." The present efforts of the Scandinavian tern- of the perance parties are directed particularly towards diM)rcing the sale of beer from that of all other merchandise, ex- tending the company monopoly to cover fermented as well 70 POPULAR CONTROL OF THE LIQUOR TRAFFIC. Reports of Home and Foreign Offl- clals and Re- presentatives are unani- mously Fa- vourable.with the Exception of one Trebly Discredited Report by Mr. Michell. Once Tried, Never Abandoned. as spirituous beverages, and changing the law so that after a certain number of years it will be illegal to sell any drink containing more than 25 per cent, of alcohol. 12. The highest police and administrative officials, as well as foreign and consular diplomatic representatives, liave almost unanimously testified in favour of the comi^any system. The former characterise the difference between the individual licensing plan of previous years and the present reyime as " the difference between night and day." The one noteworthy exception to the favourable A'iews of con- sular ofhcers is found in the superficial and misleading report of Mr. T. Michell, the British Consul-General at Christiania. This report precipitated an event which speaks volumes for favourable public opinion in Norway. The Press teemed with protests, and Mr, Berner was requested by the Norwegian Minister for Home Affairs to prepare an official answer, which was later transmitted to the British Foreign Office. Mr. Berner's reply is complete, and effectually disposes of the gross misrepresentation of facts which Mr. Michell's report contained. The Minister for Home Affairs himself forwards a letter of denial to Councillor D. M. Stevenson, of Glasgow, which was pub- lished in the Herald of that city under the date of April 25th, 1803. No further notice, I think, need be accorded Mr. Michell's misleading report, except to remark that when a document is officially repudiate'' directly by one government and indirectly by another, in lition to being protested against by the writer's resident compatriots, it is high time that all who prize fairness and uprightness in controversy should cease quoting it. 13. An undeniably strong evidence of the efficiency of the Scandinavian method of controlling the liquor traffic, is, GOMPAyr SYSTEM BEST METHOD OF CONTROL. 71 Control Incomplete that no ninorle communitv which has ever tried it has afterwards abandoned it. Tliere are certain disadvantages, arising chiefly from Legal Defects, defects in the law, not from maladministration. For these the companies are in no wise responsil)le. 1. The company monopoly does not extend far enoiii^h. In order to achieve a maximum of benefit, fermented l)everages must also be included. As has already been pointed out in the discussion of the causes of drunkenness fluring recent years, one effect of restraining spirit-drinking has been the development of a wider consumption of })eer. Tliis is all the more serious since women drink it to a con- siderable extent, whereas only rarely are they consumers of spirits. Beer, too, is brewed much stronger than formerly. This want of control o\ev the manufacture and sale of l)eer is a serious drawback. Fortunately, this is so generally recognised tliat we may expect an early change of policy in both Sweden and Norway. 2. A second legal defect is that at present the l)ottle trade in wine and beer in towns and country districts is conducted in connection with general business, and with- out special licence. This privilege is bound soon to be abrogated. It is greatly to the credit of the companies that more than half of them in Norway have acquired con- trol of the bar-trade in beer. They have done this volun- tarily, and at considerable financial loss. The present law does not permit companies to monopolise more than the bar-trade. 3. A serious defect in the Norwegian law is that the limit for wholesale sales is fixed far too low. Swedish practice in this regard is much better. Norwegian statistics show that about three-fifths of all the liquors sold And not Inclu- sive of Wtre and Beer. Norwegian Wholesale Limit too low. 72 POPULAR CONTROL OF THE LIQUOR TRAFFIC. in that country are destined presumably for home con- sumption. The limit (10 J gallons) is sufficiently low to permit grocers to sell spirits to their customers at a min- imum figure and cheaper than the companies' rates. They can do this because only a general-business licence is required to sell spirits at wholesale. Spirits sold in this way are exempt from the regular municipal tax of about 7(1. per gallon. Wholesale sales represent consumption in country districts where prohibition prevails. People club together and purchase a cask of 11| gallons. Dividing the contents is not illegal, provided the money has been collected before the liquor is bouglit. Steps A royal com.mission appointed in 1888 has suggested taken to remedies for the defects enumerated under 1, 2, and remedy these 3 Tlieir recommendations have recently been incor- porated in a new law. Much then that has been said above does not now apply ; but the statement was necessary in order to account for certain abuses which have arisen. A full statement in reference to the new law cannot now be made, as the copy of the measure is not at hand. Mr. H. E, Berner is, however, engaged in prepar- ing a commentary which will soon be available to English readers. It is a significant testimony to the sense of moral guardianship of the public interests felt by the comjianies that they have exercised a potent influence in faA our of the new reforms. Special 4. Defects in the Swedish, as distinguished from the detects o' Swedlsh'^ Norwegian, method, may be summarised as follows : — System. ^^^ L^gg perfect governmental supervision over the business of tlie companies than exists in Norway — a fact which is responsible for neglect of public interests in a few places, chiefly smaller towns COMPANY SYSTEM BEST METHOD OF CONTROL. 73 (6) Permitting the sale of beer and spirits on the same premises, and in general allowing eniploy<^es to reap pecu- niary benefit from the former. (c) Permitting, even under the restrictions which exist, the sale of spirits on Sundays and holidays. 5. A drawback which rarely appears, but which fair- ness compels me to mention, is, that in a few instances the question of profits has been made undeniably conspicuous. These are indeed notal>le exceptions to the well-nigh universal rule. Attention is called to their existence in order to make more apparent the contrast. The danger can be easily averted by arranging for a strong system of central supervision. It is safe to say that the alertness of temperance sentiment in England and the United States would not permit of the smallest evil of this sort. A triennial referendum would keep every company up to its professions. Certain advanced temperance reformers, not satisfied with evolutionary progress, express the feai that the company system may please too well, and that it may become a permanency. Such people should re-read the fable of the dog with a bone who saw his shadow in the stream. We have seen already that Messrs, Berner, Narrestad, and other temperance leaders regard the Scandinavian methofl as the precursor to something better still when society shall have been fitted to receive it. So also do all well-informed persons, no matter of what shade of opinion, reject the notion that liquor-selling has been made more respectable under the company regime. Individual testimony is pecu- liai'ly positive on this point, and besides, numerous evi- dences exist in support of the view. One alone need be cited, as in itself it is fairly conclusive. It refers to In Rare Instances Question of Profits too Conspicuous. Opposition of some Advanced Temperance Reformers, In the Face of Conclusive Evidence of Reduced Consumption. 74 POPULAR CONTROL OF THE LIQUOR TRAFFIC. decline in the bar-trade. In Gothenburg the quantity of spirits sold over the bar in 1874 represented a consumption of 11-3 quarts per head of population ; in 1892 it was 51 quarts, considerably less than half. In Stockholm the appropriate figures are 14-61 quarts during the first year of the company's operations, and 6-49 quarts for 1892. In the Norwegian cities of Bergen and Christianssand the same phenon)eiia are apparent. The record for the former in 1877 was 25 quaits per inhabitant ; in 1892 1*7 quarts. For the latter 1'34 quarts, in 1872, and 0*63 quarts twenty years later. Returns from smaller towns in the two countries teach the same lesson. DrinMng has The late Mr. Thomas M. Wilson, whose 35 years of not been . . rendered residence in Norway entitled him to speak authoritatively, abS^'^bv the ^^y^' " -'^^ persons of the better class would dream of going Company into a company's bar, and the respectable working class, desirous of maintaining their position, avoid them like poison. Th(! fact that customers are subjected to control, and may be refused supply at the discretion of the bar- keeper, has stamped the company's bars, in the opinion of all classes, as something of a reformatory nature, and they are avoided by all with any pretensions to respectability and self-respect." Dr. Wiese)gren is equally positive, averring that when one meets with the assertion that the Scandinavian method has made liquor-drinking respectable, one may safely reply that ''such has not been the case in Sweden and Norway : the possibility of it is to us an in- comprehensible saying." Nor has Home Reduced drinking at the bar has not been accompanied Increased. with increased consumption at home. The figures for retail sale show also a decline, though not in the same proportion. COMPANY tiYSTEM BEST METHOD OF CONTROL. 75 The pith of the whole matter resides here. Iii the present stages of social evolution no system can be devised which will completely eradicate the evils to which the drink-traffic necessarily gives rise ; but so long as spirits are allowed to be manufactured and sold, the Scandinavian method of control is the only practical one to adopt. The justice of my assertion is made clear by reference to the experience of the United States, which has been a pecu- liarly fertile field of experiment. This ex})erience I have fully related in the Farmer for November, 1894, and tlie salient features are here reproduced.* In seven American commonwealths what is known as prohibition is the prevailing form of control. This term indicates the withdrawing the right to manufacture and sell spirituous and malt beverages from domiciled residents within the borders. In the sense in which it is incorporated in American practice, it does not further attempt to regulate the conduct of individual citizens. A man may buy liquor in another State and have it shipped to him, provided it is destined for his own private use. Still more, he may pur- chase it surreptitiously from a fellow-resident without rendering himself liable to punishment. It is the manu- facturer and the seller, not the consumer of drink, who are placed under the ban. Prohibition is now the law of seven States — Maine, New Hampshire, Vermont, Iowa, Kansas, North Dakota, and South Dakota. Four of these— Maine, Kansas, and the two Dakotas — have prohibition amendments to their constitutions. Prohibition has been tried and abandoned in Delaware, Rhode Island, Massachusetts, Connecticut, Indiana, Nebraska, New York, Illinois, and Ohio. All the States in which prohibitory legislation obtains * See Appendix D, page 103. Superiority of Scandinavian System evidenced by Failure of American Ex- periments In- (a) Frohibi. tion, Which has beenTriedand Abandoned, Except in more or less sparsely populated Districts : Is Danger- ously Liable to produce Disrespect for Law ; And, by becoming a Party Question, to degrade Politics. 76 POPULAR CONTROL OF THE LIQUOR TRAFFIC. to-day are relatively sparsely populated. The largest urban coininunity in any of tlieni is the city of Desmoines, Iowa, which contains 50,093 people, according to the last census. IJut it is in large cities where the liquor tratiic is hardest to control. Therefore I think it is perfectly fair to make answer to the friends of prohibition, that the soundness of their views has not been sufticieiitly apparent from practical experiments. Massachusetts, Rliode Island, New York, Illinois, and Ohio are States containing large city popu- lations, and tliese have abandoned the prohibitory recjime. The chief difficulty with all restrictive measures directed {t.^ainst social vices, is to secure their enforcement — or, indeed, their moderate observance — in urban centres. People should take account ot this, remembering that virtue can never be inculcated by legal enactment. Its springs are in the human heart, and before they will flow they must be struck with the rod of a quickened intelligence. Marching too far in advance of public sentiment always renders success problematical. Depositing the ballot is too often accompanied on our part by a thrill of satisfactic^n that duty has been done, whereas it should be understood as having been only just begun. We should reflect that a majority vote for prohibition establishes a new legal mis- demeanour, and that, unless there is hearty and effective cooperation to secure enforcement, damage is more likely to be done than good accomplished. Disrespect for law is tiie most dangerous of all things under a democratic form of government ; and those who assist in making laws which, for one reason or another, cannot be enforced, assume weighty responsibilities. The control of the liquor traffic is a moral and social question, and has no place in the arena of politics. It is COMPANY SYSTEAf BEST METHOD OF CONTROL. 77 greatly to be feared that making prohibition a political issue has compelled the liquor interests to seek political means of defence. But whatever the cause, the result has been an alliance with the dominant party, or the lower elements of both political parties, which has degraded American politics to the lowest depths. Another favourite American method of dealing with (b) Local the liquor traffic has been through local option. This, by many, is called prohibition in its more rational form. The advantages claimed are that the limited area to which it applies renders its introduction easier. There is not only a strong local feeling behind it, but concentration of attention upon a limited territory with a greater likelihood of rigorous enforcement. Again, the movement advances slowly, and ground once gained rarely has to be surren- dered. Local option represents evolutionary advance, whereas prohibition is cataclysmic. Opponents of local option enumerate amongst its drawbacks — 1. That drinking is made a local question, whereas it ought to be considered from a national point of view. 2. The ethical basis of the problem is lowered to that Confined to of mere expediency. Disl^S, 3. It has only been successful in practice in country districts, and then at the expense of adjoining neighbour- hoods. Local option has been tried in several States. Better results seem to have been achieved in Massachusetts than else- where. In several of the Southern States, also, a feeling of satisfaction with its operation has been expressed, though generally the areas to which it has been confined are almost exclusively country districts. The experiences of Michigan IMAGE EVALUATION TEST TARGET (MT-3) m A A4% <^^\^ :/. •J /i z 1.0 I.I m ^^ MB w 11:25 i u 1^ 1.6 ^ ^ iV iV 'O ^v/^\ 71 POPULAR CONTROL OF THE LIQUOR TRAFFIC. (c) High. Licence Decreases Number of AndHarmfta and Missouri give a reverse side to the picture. In the owni^ea** former commonwealth an important contention of critics seems to have been justified. The ratio of licences to population in areas not under local option increased during the last census-period 8 per cent. High-licence is the method most in favour for large cities where restrictive measures have been practised at all. Advocates claim that it is the only effective form of control as demonstrated by experience. It may he applied to places where prohibition and local option would both fail, and it reduces the number of public-houses within measurable limits, both as to number and geographical situation. It is true that, where a really high-licence fee has been DrlnlE-BboDB ^^^''g^* dram-shops have notably decreased. In Omaha, in 1881, the licence fee was raised from £20 to £200. At that time the ratio of licences to population was 1 to 2G7. In 1891 it was 1 to 600, The experience of St. Paul is almost equally significant. During the six years from 1886 to 1892, when a similar change took place, the ratio of licences to population declined from 1 to 152 to 1 for 368. In Philadelphia results have been even more remarkable. Previous to the enactment of the Brooks law in 1888, there was one licence to every 160 inhabitants. In 1891 the proportion was 1 to 600. This favourable statistical showing, be it noted, applies to three States where the licence fee is fixed at £200. Other high-licence cities require only £100, and it is undeniably true that no such conspicuously useful results have there been attained. There seems to be somewhere a normal limit of efficiency, and whenever the sum charged is below the line the useful ' effects of control are lessened, COMPANY SYSTEM BEST METHOD OF CONTROL. 79 Perhaps the most effective form of higli-licence prevails in Pennsylvania and Massachusetts. To my mind there are two reasons for this. In the first-named State, while the number of permits is not limited by law, complete dis- cretion is vested ''n the licensing commission, which is con- stituted of judges in courts of secondary instance. Massa- chusetts has recourse to limitation, Boston being allowed one licence to every 500 of population, and every other city one licence to every 1,000 persons. Local limitation of number, and especially a high-class commission of judges, are features which should accompany every high-licence regime. Opponents of this plan dispute the fjict that it has been Bnt much of a success anywhere. Again, they assert that it AjSuiace forges more closely the alliance l)etween liquor and politics. y|^*^5Sii Licensing boards have usually a distinct political element and Politics; in their composition, so that in the distribution of privileges political bummers may be properly looked after. Furthermore, it is alleged that consolidation of liquor interests more readily occurs, and " tied houses " become substitutes for individual tap-rooms. Finally, those who take the high ground that licence fees represent blood- money, so to speak, contend that enhanced revenues are a salve to the conscience of the weak-kneed brother and lessen his practical interest in the suppression of liquor- drinking. The latest form of experiment is that inaugurated by (d)Diap6naary South Carolina under the law of Deceml)er 24, 1892. The south constitutionality of this measure has just been affirmed by Carolina. the Supreme Court of the State. Private liquor-selling is abolished, and a State dispensary system substituted. At least one of these dispensaries is opened in every county not 80 POPULAR CONTROL OF THE LIQUOR TRAFFIC, under local option, and in the cities of Charleston and Columbia more are provided for. A State board of control, composed of the governor, comptroller-general, and attorney-general, is the highest business authority. A State commissioner, who is believed to be an abstainer, is appointed by this body, as well as county boards of control, which are composed of three members serving for two years, and who are likewise teetotalers. Dispensaries are opened by the county boards of control upon motion of a majority of freehold voters. The State commissioner purchases the liquors (under a saving political clause which gives preference to manufactures and brewers doing business in the State), and the State chemist analyses the beverages to see if they are pure. They are then done up in packets varying from five gallons to one half-pint in size, shipped to the county dispensaries, and sold at prices not exceeding 50 per cent, profit. Considerable formality is required in the purchase of drink. The dispenser must demand of his would-be client a written or printed request, properly dated, stating the age and residence of the signer for whose use the liquor is requested, as well as the quantity and kind required. The certificate is then attested and put on file. Advantagea At first glance one would think that a law which byCtovenfor lengthened the time between drinks would not be ^ery Tillman. popular with a South Carolina governor. The present incumbent, however, in his last annual message, urges the following claims in support of his dispensary system : — " 1. The element of personal profi . destroyed, thereby removing the incentive to increased sales. " 2. A pure article is guaranteed, and it is subject to chemical analysis. I COMPANY SYSTEM BEST METHOD OF CONTROL. 81 "3. The consumer obtains honest measure of standard strength. " 4. Treating is stopped, as the bottles are not opened on the premises. "5. It is sold only in the daytime. " 6. The concomitants of ice, sugar, lemons, etc., being removed, there is not the same inclination to drink remain- ing. The closing of the public-house^ especially at night, and the prohibition of sale by the drink, destroys the inducements and seductions which have caused so many men and boys to be led astray and enter on the downward course. " 7. It is sold only for cash, and there is no longer chalk- ing up for daily drinks against pay-day. The working- man buys his bottle of whisky on Saturday night, and carries the rest of his wages home. " 8. The local whisky-rings, which have been a curse to every municipality in the State, and have always controlled municipal elections, have been torn up root and branch, and the influence of the bar-keeper as a political manipulator is absolutely destroyed. The police, removed from the control of this debauching element, will enforce the law against evildoing with more vigour, and a higher tone and greater purity in all governmental affairs must result." Were the history of this unique measure not so well Origin of known, the contentions of Governor Tillman might be more generally accepted. It is a fact that the plan had its origin in an effort to raise revenue, not in the virtuous desire to reduce the consumption of drink. Prohibitionists were cajoled into its support by promises that the coming enactment would be a stepping-stone to their ideal. It is much to be feared that the local whisky-rings which the G Measure, 82 POPULAR CONTROL OF THE LIQUOR TRAFFIC. Wliich must not be con- founded with Scandinavian Ssrstem : 1. Points of Difference ; governor denounces may give place to a State politico- liquor machine. The claim that the consumer will obtain an honest measure of drink, standard in strength and quality, may have local grounds for favour, but one can hardly accept it as possessing great moral weight. Taking away from the tippler his ice, his lemons, and his ugar, may be a hardship ; but it is not a positively reformatory measure — the shadow departs, but the substance remains. But selling only in the daytime and for cash, the abolition of treating, weeding-out gambling-dens and other immoral co"^comitants of the saloon, are undoubted advantages. There has been an absurd confounding, in the minds of many people, of this South Carolina experiment with the Scandinavian system of controlling the liquor tratiic. Points of similarity do exist, but modes of operation and effects are quite different. The cardinal principle of the South Carolina plan is State monopoly of all sale of drink ; that of the Norwegian is local control through commercial companies, organised often by the best and most patriotic citizens, who renounce all profits and take merely the ordinary rate of interest on the small amount of capital invested. Wherein both of the plans agree, and where both, in my judgment, strike at the root of the whole matter, is in eliminating private profit from liquor-selling. But here the parallel ceases. These local companies in Norway engage in the traffic in order that they may con- trol it and restrict it until such time as municipalities may do away with licensing for liquor-selling altogether. So well has their aim succeeded, that the vast majority of the inhabitants of the Scandinavian peninsula are to-day under a no-licence regime. In South Carolina the profits go to the State, and the very conception of the measure reposed COMPANY SYSTEM BEST METHOD OF CONTROL. H3 on the idea of relief to taxpayers. Indeed, Governor Tillman apologetically remarks that the revenues are not yet as high as they will l)e. A State monopoly makes licjuor-selling a part of the machinery of the Government, and therefore gives to it a more or less permanent ex- istence. The essence of the other plan is liberty to abolish the traffic whenever a community is ready, hut, in the meantime, to regulate it so that the least possible damage may be done. Another most significant difference between the two systems is that State dispensaries involve regula- tion of the traffic by political appt>intees. In Norway every vestige and semblance of political influence i? eliminated Indeed, to my mind, this absolute separation which has been practically effected between liquor and politics is a conspicuous merit. Again, Scandinavian control brings about progressive reform by educating public opinion. The South Carolina plan, being nearly prohibitive in character, is a measure too far in advance of public opinion to be accepted and enforced to-day. The minor points of similarity represent borrowings a. Points of from Scandinavian practice. They include reduction in ^" the number of places of sale, early closing, selling only for cash, and furnishing pure liquor. Presumably, also, gambling and immorality are divorced from dispensaries as they are in every instance from the company's liquor- shops in Sweden and Norway. The South Carolina plan offers avenues of political interference and possibilities of corrupt exploitation. Revenue and partisan convenience may easily become dominant motives. In these vital features it must be distinguished from the Scandinavian system, from which it is often popularly and erroneously supposed to have lx>rrowed likeness. G 2 M Popular control of the liquor traffic. Non-effecUye- Notwithstanding the variety of American experiments these Methods in controlling the drink traffic, results show in a general ConsurnDtton ^^^^ *^^^ practically nothing has been accomplished. In 1850 the consumption of all kinds of liquor averaged 4*08 gallons per inhabitant ; in 1892 it was 17 04 gallons, considerably more than a fourfold increase. During tliis period the consumption of spirits diminished, it is true, from 2^^ to 1^ gallons per head, but beer-drinking shows an advance from 1'58 to 15*10 gallons per head of popula- tion. Wine-drinking increased only slightly, viz., from 27 to 0*44 gallons per head. Taking the year 1874 — chosen because at that time the oldest Swedish company, the Gothenburg, secured the licences for the retail sales of spirits in addition to the bar-trade, which was conceded it in 18G5 — and making a comparison with the present, the consumption of spirits and wines in the United States has remained stationary, but beer- drinking has very much more than doubled. It is true that during the last half- century the United States has received large accessions of populations from countries where beer is the national beverage, and doubtless it will lie said that since spirit- drinking has not adviinced it is unfair to assume a de- terioration in habits. It must be conceded, however, that no progress has been made. Or Crime. There is another significant fact. Returns of the prison population in the United States show an increase of 358 pei'sons per million inhabitants during the last census- period. The advance Las been greatest in the North Atlantic division, which contains the largest city popula- tions. Exactly what proportion of criminality springs from drink is a question which, so far, has not been accu- rately determined. The best studies, however, go to show COMPANY SYSTEM BEST METHOD OF CONTROL. 85 that tippling is a prolific source of wrong-doing ; indeed, probably the most potent factor in petty crime. Here, then, is a summary of the situation. Prohibition, Sninmary of local option, State monopoly, high-licence and low-licence, JSSrtcim have been tried, and most of them during long periods and Experiments, in many parts of the country : — 1. The consumption of liquor has increased and the prison population is rapidly advancing. 2. The proportion of licences to inhabitants in large cities often now attains to disgraceful proportions. In the 257 largest cities the ratio of public-house licences to inhabitants is 1 to 250. 3. The alliance between liquor and politics is being drawn closer and closer. There remain three leading alternatives in future Tlie Three action— Alternatives : 1. Hopelessly to give up the struggle, at least for the Despair, present, and allow the evil to become unendurable, trusting to a great wave of moral enthusiasm to sweep it entirely away. Municipalities exercise this method to free them- selves from political corruption, but it is generally noticed that spasms of virtue come at longer intervals, while re- lapses follow more speedily and are more severe. Generally speaking, the last condition of the patient is worse than the first. Such doctrines are dangerous in the extreme. They cannot for one moment be admitted in dealing with grave moral issues, because ere long recuperative virtue would l)e debauched and silenced. 2. Great numbers of people, while candidly admitting AavoiJicyof that present conditions are not satisfactory, are so wedded to problematical preconceived notions, or attached to a narrow system, that Measures, they will not hear of moving outside of regulation methods. ' 18 POPULAR CONTROL OF THE LIQUOR TRAFFIC. They are partiHans of a faith-cure such as prohibition at this time is, especially when applied to large cities. More, perhaps, l^elieve in very mild homu-opathic treatment, and so recommend liigh-licence, forgetting that a consolidation of li(]uor interests and the exercise of political favouritism are necessary incidents thereto. Instead of removing it, the impulse of private gain is stimulated by success being rendered uncertain unless business is pushed and resorts made seductive. No-licence — or local option, as it is usually called — cannot \)e successfully enforced in the case of large municipalities unless there is some adjacent community near by upon which to unload the burden. I doubt very much if Cambridge could have shown such good results, did not a bridge span the stretch of water between it and Boston. Investigation 3. The third alternative is to study impartially the Reform. liquor problem from all points of view, and adopt those methods which have lt>een proven most efficient in practice as measures of progressive, if not ideal, reform. The There has been formed recently, with headcjuart^rs in "Stfty ^^^ ^^^y ^^ New York, a national Committee of Fifty on the study of the liquor problem. Distinguished men in clerical, professional, academic and business stations, repre- senting all shades of opinion, are banded together with the sound determination to probe the matter rationally and thoroughly. The very numes of Presidents Seth Low, Eliot, Oilman, and Andrews ; Doctors Billings, Welch, Bowditch, and Chittenden ; Bishops Potter and Vincent, Fathers Doyle and Conaty, and the Reverend Doctors Hunger, Peabody, and Felix Adler ; Francis A. Walker, Carroll D. Wright, William E. Dodge, W. Byai-d Cutting, and Robert T. Payne, are a guarantee of sincere purpose COMPANY SYSTEM BEST METHOD OF CONTROL. 87 and determined aim. When such men as these and twenty-nine others scarcely less distinguished surrender time and attention and contribute money and effort to the work, it does not seem unreasonable to hope for good results. Gauging the attitude of fellow memljers })y a personal standard, I may say that never was any question approached with greater earnestness. Four leading sub- committees will investigate the physiological and patho- logical effects of alcohol upon the human system, the legislative status of the drink traflSc and the success attending various forms of control, economic phases with relation to crime, pauperism, industrial efficiency, and finally, ethical aspects in their broadest extensions. When results are reached and published, the American people will have data for judgment which have never existed before. To my mind, one reason why so little solid swlvance has hitherto l)een made is that the liquor problem has been largely dealt with from the standpoint of senti- ment. Sentiment is undoubtedly a tremendous force, but, like other motive powers, unless usefully directed, no progress can be made. A locomotive with furnace blazing and lever drawn may remain at a complete standstill. It must have a track upon which to run if ground is to Ikj traversed and a goal reached. Now, this National Com- mittee of Fifty, if it does nothing else, will certainly lay a track. In the meantime, thoughtful people in the United Growth of States are turning to the Scandinavian method as the best ^j^on and safest means of control. The publication in 1893 of towarda Scandinavimi the official report I had the honour of being commissioned System. to make to the United States Department of Lalx)ur struck a responsive chord. The first edition, numbering several POPULAR CONTROL OF THE LIQUOR TRAFFIC. Tbe Mas- ■aohosetts LeBislatlve thousand, was Hpeedily exhausted. The diHtribution record of this public document disclosed the gratifying fact that a very large proportion of applicants l)elonged to the Christian ministry. A little over a year ago, Massachusetts, which has always taken the lead amongst American States in in- CommissioD, dustrial and social reform, began to evince signs of par- ticular interest. A committee of propaganda, composed of many of the most influential citizens, was formed. In this body clergymen of various denominations were liberally represented. Indeed, a published list of one hundred of the most prominent exponents shows more than one-fourth to be ministers. The governor appointed a strong legisla- tive commission to study the question and report a Bill. The measure was discussed in the Legislature last spring, but was finally defeated, principally because of the liquor interest, in combination with a few misguided prohibi- tionists, by one vote. Considering the brief time a measure of such great public importance had to become known and properly understood, it is felt that a great moral victory has been achieved and that final success at an early date is reasonably certain. And Bill. The text of the Bill is as follows : — An Act to Establish the Norwegian System of Selling Intoxicating Liquors. Be it enacted by the Senate and House of Represent- atives in General Court assembled, and by the authority of the same, as follows : — Section 1. A petition signed by qualified voters of any city or town, not less in number than one for every one COMPANY SYSTEM BEST METHOD OF CONTROL. 80 hundred persons who voted at the next preceding annual election in such city or town, hut in no case less than fifty, may be presented to the board of uIcUm*- men of such city, or to the selectmen of such town, asking them to insert in the warrant for the annual municipal election or town meeting an article providing for a vote upon the question : " If licences for the sale of intoxicating liquors are grante called together by the mayor or the chairman of the l)oard of selectmen, as the case may be ; it shall hear the claims of all applicants, and shall make its decision between them, which, with the reasons therefor in writing, shall be filed with the city or town clerk, as the case may be, and be open to public inspection. Section 5. The by-laws and regulations governing the business of the corporation shall conform to existing law, and in this respect shall be approved by the judge of probate of the county within which such city or town is situated before the corporation shall begin it« business ; they shall l>e conspicuously posted in every place where the business of the corporation is carried on. No shareholder shall receive more than an annual dividend of 5 per cent, on the par value of his stock, payable semi-annually ; and after all the expenses of the business and the dividend have been paid there shall first be established a reserve fund equal to the par value of the capital stock, and after the payment of said dividend and the establisliment of said reserve fund the remainder of the net profits, if any, shall at a fixed time in each year be expendeetween these passions for money and for intoxicants. The saloon in American cities is at last the deadliest centre of corrupt political influence known to us. We have had recentl}- in a great city more than half the year's caucuses held in saloons. The saloon is helpless in the grip of a powerful " rum ring " which uses these with terrific effect in controlling city politics. Not only the police, but a large part of those officials who have to do with granting licences, or enforcing liquor laws and regulations, are directly and indirectly so tainted by this combination of money and political influence that hardly a law or regulation which touches the liquor traffic can be enforced. It seems fatuous not to see that nothing will have great promise in it which does not strike at APPENDICES. 105 the root of the evR If the private money-gains are taken from the saloon it instantly becomes useless as a betting gaming, and loafing centre. Every reason for making the' saloon a political centre falls away. It was thus inevitable that the saloon should have been (as admittedly it has been) taken wholly out of politics in Sweden and Norway INDEX. Alcoholic content of spirits, 2, 18, 66 American experience, 75 — 85, 103 Arrests for drunkenness, 56, 101 ; decrease of, 57—68 Audit of accounts, 21, 26 B Bar-trade, 2 Bars, 10 Beer, Sale of, 2, 12, 16, 34, 69, 71 Bergen — Capital stock, 13 Company's sales, 47 Licences, 56 Net surplus profits, 13 Total consumption of spirits, 48 Bonus to managers, 16 By-laws of companies, 8, 14 ; in advance of law, 9, 16, 65, 101 C Capital stock, 7, 12, 13, 49 Checks on companies, 8, 64 Civic greed, 20,24, 66 Christiania — Capital stock, 7, 13 Company's sales, 46 Compensation, 44 Licences in private hands, 4o Net surplus profits, 13 Shareholders, 6 Christianssand, 49—63 Clubs, 11, 17 Compensation — Christiania, 44—45 Stockholm, 14, 43, 44 Consumption of beer, 12, 31, 57 Consumption of spirits — Decrease of, 27—35, 73 Extra-local, 39 at Christianssand, 49, 52 ,, Bergen, 47, 48 „ Gothenburg, 37, 38 „ Stockholm, 41,42 Cooked food, 10, 15, 17 Crime, 59, 84 D Decreased consumption of spirits, 27—35 Dispensary system — Advantages claimed for, 80 Not to be confounded with Scan- dinavian system, 82 Origin of, 81 South Carolina, 79 Distilling, 1, 2, 29 Distribution of Profits — Finland, 26, 26 Norway, 7, 20, 23, 61, 69 Sweden, 5, 21 Dividend to shareholders, 7 Drunkenness, Arrests for, 66, 101 tt Decrease of, 67, 58 ^, Resulting from beer- drinking, 67 INDEX. 107 E Early closing, 10, 11, 6,5 Eating-houses, 10, 12, 60 Education, 59, 60 Employees of companies, 15, 66 Entertainment of the people, 11, 60 Excise, Law of, 4 Extent of system, 5 Extra local consumption, 39, 46, 48 Finland, distribution of profits. 25 Food, Provision of, 10, 15, 17 G Gambling, 18, 19, 64, 83 Gothenburg — Capital stock, 13 Decreased consumption, .']7 Rational reform, 86 Reading rooms, 1 1 Ready-money payments, 10 Recreation of the people, 60 Koduced consumption of spirits, '■ „ ,,-„'",',„,.,. ^. Verdict of experience, 9, 99 "Respectable drinking, « 4 ^ Restaurants, 10, 11 W Retail trade, 2 Wine, Sale of, 2, 12, 71 Rural districts, 3, 5, 21, 26 Wholesale trade, 2, 71—72 21 PUINTUU BY CaSSEIX & COMPANV, LIMITED, La BeLLR 8ACVA0E, LONtK)N, B.C!. 614'M8cx