. THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES British . V. . . ." c Gothenburg ' Experiments and Public - House Trusts JSSg tbe same Hutbors THE TEMPERANCE PROBLEM AND SOCIAL REFORM Ninth Edition (Fourteenth Thousand), 6s. Popular Abridged Edition (50,000), 6d. net " The elaborate treatise on 'The Temperance Problem and Social Reform,' by Mr. Joseph Rowntree and Mr. Arthur Sherwell, will be welcomed by all serious students of the social condition of the people as an invaluable compendium of authentic information on all aspects of the subject." Times. " We have never seen the problem of the drink misery more clearly or dispassionately reviewed." The Daily Chronicle in a leading article. " The completest, the best informed, and the sanest work on the drink traffic, and the various remedies proposed for it, that has yet been published."- West- minster Gazette. " An important book both for the extreme lucidity with which the facts are presented, and for its width of view. The object which the authors have in view, and their facts and suggestions, should certainly be in the hands not only of social reformers, but of all electors who wish to form a judgment on the subject." Literature. " Few contributions to the study of social questions that we can remember have provided so much food for reflec- tion, or so much solid information, as the closely packed pages in which they have compressed the results of their investigations into the temperance problem." Guardian. " It is perhaps the completest, and certainly one of the ablest, works on the great drink question that has ever appeared." Literary World. LONDON : HODDER AND STOUGHTON British 4 Gothenburg' Expen and Public -House Trusts By JOSEPH U&OWNTREE fc? ARTHUR SHERWELL Joint Authors of The Temperance Problem and Social Reform . . . THIRD EDITION London: HODDER G? STOUGHTON 27 Paternoster Row -*> -+> MCMIII PrtMltd by Heuell, Watson 6- Vinty, Ld., London and Ayltsbury. CONTENTS CHAP. > I. STATEMENT OF PRINCIPLES AND CONDITION'S OF >. SUCCESS ....... 1 : II. "THE BOAR'S HEAD," HAMPTON LUCY, WARWICK 9 III. THE PEOPLE'S REFRESHMENT-HOUSE ASSOCIA- TION, LIMITED 15 IV. THE GRAYSHOTT AND DISTRICT REFRESHMENT T " 4 ASSOCIATION. LIMITED . . 43 ca I V. THE ELAN VALLEY CANTEEN, NEAR RITAYADER, RADNORSHIRE 50 VI. SCARGILL WATERWORKS CANTEEN, HARHOGATE . 58 3 VII. PUBLIC MANAGEMENT IN SCOTLAND . . 63 VIII. PUBLIC MANAGEMENT IN IRELAND . 87 vi CONTENTS CHAP. PACK IX. OTHER ISOLATED EXPERIMENTS . . . .91 X. PUBLIC-HOUSE TRUST COMPANIES ... 93 XI. CONCLUSION 128 APPENDIX 141 LIST OE ILLUSTRATIONS PLAT! PAGE 1. THE SPARKFORD INN, SPARKFORD, SOMERSET Facing 20 2. THE BAR-ROOM, "PLUME OF FEATHERS," SHERBORNE, DORSET Facing 34 3. THE " Fox AND PELICAN," GRAYSHOTT, HANTS Facing 44 4. THE COFFEE-ROOM, " Fox AND PELICAN," GRAYSHOTT, HANTS ......... Facing 48 5. THE KELTY PUBLIC-HOUSE SOCIETY'S TAVERN, KELTY, FIFESHIRE ...... Facing 74 CHAPTER I Statement of Principles and Conditions of Success r I ^HE past twelve months have witnessed a significant JL movement, under which extended efforts have been made to withdraw a portion of the public-house trade of the country from private hands. These months have seen the formation of Public-house Trust Companies in Great Britain and Ireland under the leadership of Earl Grey, 1 the rapid extension of the People's Refreshment- House Association, formed in 1896 by the Bishop of Chester and Major Craufurd, and of other similar enterprises upon a smaller scale. In all these Companies it is provided that the dividends of the shareholder shall be limited to 4 or 5 per cent, per annum, and that the surplus profits shall be appropriated to objects of public utility. It is difficult to determine the full import of this movement, but it almost certainly marks a perception 1 Already (July 6th, 1901) it is announced that "Arrangements have been, or are being, completed for the formation of Public- house Trust Companies in the following localities : The East of Scotland, Glasgow, Renfrewshire, Northumberland, Kent, and Belfast. Preliminary steps to that end have also been taken in Bradford, Durham, Essex, Leeds, Liverpool, Northamptonshire, Nottinghamshire, Surrey, Sussex, Warwickshire, and Hertford- shire." 1 2 STATEMENT OF PRINCIPLES AND of the futility of all attempts to exercise effective restriction and control over the public-house trade so long as it continues in private hands. It marks also a growing sense of the absurdity of permitting the enormous profits of a monopoly created by the State to pass into private hands. And, beyond all doubt, the rapid extension of these company experiments bears witness to the universal feeling that " something must be done " to stay the evils of intemperance. Their formation has been wel- comed by a large portion of the press, and they have enlisted the support of many men of wide influence who have hitherto stood aloof from the temperance movement. Impatient of the endless delays in legislation, conscious that the Trade is year by year entrenching itself more firmly and promptly occupying all new ground, the promoters of these companies have determined to do what they can under the existing law, and, if possible, to ensure that any new licences granted shall be held as a trust in the interest of the public, and not be handed over to private individuals to be used for private gain. Public opinion will support the appeal of Lord Grey in his letter to the licensing magistrates in the various Petty Sessional Divisions of Northumberland, that, if they can see their way to do so, they shall offer him, " on behalf of the People's Refreshment-House Associa- tion, or some kindred organisation, the refusal of any new licence they may be disposed to grant, before they confer it upon a licensee under conditions which will enable him to lawfully appropriate to his own pocket profits which, under the plan I propose, would accrue to the community." It is well, however, to recognise from the outset the limitations which, until a large measure of temperance CONDITIONS OF SUCCESS 3 reform has been carried, must necessarily attach to these experiments, and the difficulties, in some directions almost insuperable, under which they will be conducted. These difficulties have already been experienced in the rural experiments that for some years past have been carried on in different parts of the country ; they will press even more heavily upon the Trust Company houses which it is proposed to open in the towns. The true character of these difficulties will probably best appear in a review of the conditions that are essential to the success of company control. CONDITIONS OF SUCCESS IN COMPANY CONTROL The fullest evidence as to these conditions is to be obtained from an examination of the working of the system in Norway and Sweden, where it has been carried on for more than thirty years under the guidance of able and disinterested men. Before, however, we tabulate this evidence, the question should be answered : What is the success that is sought? Is it merely to havo an orderly public-house in which drunkenness shall bo forbidden, in which the licence law shall be observed, in which no credit shall be given, in which gambling and all immoral accessories shall be done away with, in which, in short, the present consumption of alcohol (or that part of it which is not distinctly intemperate in character) shall be carried on, though under improved conditions ? Is this the whole of the success that is sought, or does the success aimed at go further and seek to bring about a substantial reduction in the normal consumption ? This question is fundamental, as upon the answer that is given to it will probably depend the lines of policy 4 STATEMENT OF PRINCIPLES AND of the Trust Companies. It is often assumed that the problem to be solved is solely one of intemperance, by which we mean flagrant and manifest excess, and that apart from this the normal consumption of alcohol calls for no special attention on the part of statesmen and temperance reformers. But surely this view of the problem is inadequate, if on no other grounds, certainly on this, that it leaves out of consideration the serious economic danger that results from the present average expenditure upon alcohol ! The present writers have elsewhere 1 conclusively shown that the average family expenditure of the working classes in this country upon drink cannot be less than six shillings per week a sum that is probably more than one-sixth of their average family income. This expenditure clearly leaves no sufficient margin for the maintenance of that standard of physical and mental efficiency which is now seen to be of primary importance in the industrial competition of nations. In view of this fact it would seem to be self-evident that no experiment could be considered really " successful " that did not bring about a substantial reduction in the normal expenditure upon drink. With this preamble we may consider what in Norway and Sweden have been found to be the conditions of success in company management. 1. The elimination of private profit from the sale of drink. This principle carries us further than is sometimes seen. Not only must the actual dispenser of the drink have no pecuniary interest in the amount of liquor sold, but the manager of a company who 1 The Temperance Problem and Social Reform CONDITIONS OF SUCCESS 5 appoints and determines the position of the staff should also know that his salary is independent of sales. This vital principle of the elimination of private profit would also be invaded if those from whom the liquor is bought could as shareholders or directors influence the policy of the company. 2. Public cupidity must not take the place of pi'ivate cupidity, and to this end the appropriation of the profits must be determined by clear statutory law. The experience of the Scandinavian countries upon this point is exceedingly suggestive. In Gothenburg, as is well known, the city rates are aided by the profits of the Bolag, 1 and an amount equal to about one-third of the total municipal revenue is annually received from this source. The ratepayers of the city have thus a direct interest in encouraging the sale of liquor. The enlightened founders of the system did not intend that the profits should be so used, but were driven to accept this arrangement owing to the absence of statutory law determining their appropriation. In Norway the company system was introduced later than in Sweden. The Norwegians recognised the danger lurking in the Swedish system, and the Norwegian law of 1871, under which the companies were established, expressly provided that the profits of the Samlags should be devoted to " objects of public utility." It was further provided that the bye-laws of each Samlag should be approved by the central 1 Bolag is the Swedish, and Samlag the Norwegian, word for " Company." 6 STATEMENT OF PRINCIPLES AND Government. This system was admittedly far better than the Swedish, yet the temperance reformers of Norway justly regarded with apprehension a scheme under wliich ordinary charities and valuable town improvements were dependent upon the profits of the local drink traffic. To guard against this danger the temperance party were able to embody in the Act of 1894 a change in the method of appropriating profits under which 65 per cent, of the whole now goes to the State. In both countries there has been but an imperfect recognition of the need for providing upon an extensive scale out of the profits of the trade counter-attractions to the public-house. 3. In any town in which a Company is established it must have a monopoly of the retail licences, both " on " and" o/." This monopoly is essential to the full success of the company system. In reducing the hours of sale, in the non-serving of young persons below the age of eighteen, in prohibiting sales on credit, in abolishing adventitious attractions in their houses, and in many other ways the controlling companies have been able to exercise a powerful restrictive influence ; but such influence obviously could not have been exercised if within a few doors from the company shops other licensed bouses had been open in which none of these restrictions were enforced. The companies, with few exceptions (those which do occur are mischievous), have a complete monopoly of the sale of spirits, but unfortunately neither in Sweden nor in Norway is beer included within the scope of the controlling CONDITIONS OF SUCCESS 7 system. By common consent this is its weakest point. The Scandinavian experience distinctly points to the need of a monopoly extending to the retail sale of all kinds of alcoholic liquor. 4. The system must provide for the full liberation of the progressive sentiment in a locality. " There can be little doubt," to quote words which the present writers have used elsewhere, 1 " that if temperance reform is to advance upon the ordinary lines of social progress in this country, it must do so by giving the localities a large measure of self- government in relation to the drink traffic, and, subject to the observance of a few conditions to be laid down by Parliament, everything is to be gained by the grant of such liberty. The public opinion of the large towns, with their intelligence and municipal spirit quickened by the possession of power to deal effectively with intemperance, will shape itself in definite forms. But there must be a real liberation of the local forces." This liberation of the local forces can be accom- plished under a system of company control if the company is in close association with the municipal government, as in Norway and Sweden. In the Bergen Samlag, for instance, out of forty members of the committee of management twenty-five are chosen by the shareholders and fifteen by the municipal council. The committee, therefore, acts with full knowledge of the wishes and opinions of the locality. The close association of the Samlag with the municipal council is further maintained 1 Preface to The Temperance Problem and Social Reform. STATEMENT OF PRINCIPLES by the fact that the latter, in conjunction with the magistracy, are (subject to the veto of the State governor) the licensing authority from whom the companies at the expiration of each quinquennial period have to apply for the renewal of their licence. A controlling company so constituted is a responsible body responsible, in the first instance, to the municipality, and through it to the local community. This system is quickly responsive to an enlightened public opinion. The temperance reformer can influence it either by direct service on the city council or by furthering the return of those in whose policy he concurs. 5. Lastly, if these Companies are to achieve any high success they must be conducted as undertakings having for their object a distinct temperance end, to which commercial considerations 'must be strictly subordinated. It may be confidently asserted that the success of the various controlling companies in Sweden and Norway as agencies for the advance of temperance has been proportionate to the degree in which they have carried out the five principles enumerated above. The efficacy of these principles does not depend upon anything peculiar to the Scandinavian soil ; they would be as potent in this country as elsewhere. If kept steadily in mind they should aid us in forming an opinion of the value, as temperance agencies, of the companies which have been or are about to be formed in this country. CHAPTER II "The Boar's Head," Hampton Lucy, Warwick Date started. Population of Parish. 1877. 500. ONE of the first persons in Great Britain to attempt an experiment upon " Gothenburg " lines was the Rev. Osbert Mordaunt, Rector of Hampton Lucy, Warwick. On his appointment to the parish a quarter of a century ago, Mr. Mordaunt found himself sole trustee of a village inn which had belonged to the former incumbent, but had been bequeathed by him to his successors in trust for the parish. 1 The population of the parish was small and much scattered ; but as the inn was the only licensed house in the parish the nearest public-house being two miles away Mr. Mordaunt determined upon an ex- periment upon the general lines of the Gothenburg system, the main principles of the experiment to be: (1) the purity of the liquor sold a point upon which Mr. Mordaunt lays great emphasis; and (2) that "the person who sells the beer must have no interest in the profits. He must merely be a dispenser." In practice, and as a matter of convenience, the rector 1 The rent of the inn is devoted to the payment of the organist's salary. io "THE BOAR'S HEAD," has always appointed one of his own servants a gardener or a coachman as manager. He is allowed the house rent free and a small sum for management, and receives whatever profits he can make upon temperance drinks and food. He is also allowed to take " the profits upon the stablings, such as they are." The sale of food is small. No spirits are sold, the spirit licence having been abolished when the experiment was begun. A certain quantity of spirits is, however, brought into the village by the grocers' carts. The abolition of the spirit licence was at first extremely unpopular, but complaints are not often made now. It should be added that to meet cases of emergency where the doctor orders spirits, the rector is always willing to supply them gratuitously from his own home. Mr. Mordaunt is clearly of opinion that the abolition of the spirit licence has lessened the consumption of spirits in the village. " People have no opportunity now," he says, " of going to the public-house and asking for threepenny-worth or sixpenny- worth of gin or brandy, or whatever they want. I am certain, for instance, amongst women that that kind of thing has ceased altogether." The usual public-house hours are observed, and no limit as to the quantity supplied to sober people is ever attempted. No one, however, is allowed to be served who shows any sign of drunkenness. " If anyone is decidedly drunk," said the rector in his evidence before the Royal Commission on Liquor Licensing Laws, in June, 1898, " I expect to be informed. I am hardly ever told of a case now. I admit this may sometimes happen, that a man will come in the worse for liquor who has been, perhaps, to market or to town somewhere, and who comes in and possibly gets served with some beer before his HAMPTON LUCY, WARWICK 11 condition is found out. We sometimes get the credit for having made such a person drunk, and even that seldom occurs." Sales on credit are absolutely forbidden. Nearly all the profits go back to the parish in some shape or other to assist the charities. For instance, a " harvest home " is given to the entire parish every year, chiefly out of the profits of the public-house. 1 On being asked if he had ever felt any temptation to increase the profits for the sake of conferring a general benefit on the parish, the rector replied : " Oh, no ! I never felt any inclination to do that at all." Asked, further, if he could conceive of such a temptation existing, he replied : " I can conceive it, but not in anyone's mind who was really interested in the sobriety of the people." GENERAL RESULTS Speaking of the general results of the experiment, in a statement published a few years back, Mr. Mordaunt says : " I have reason to believe that on account of the liquor being pure and wholesome, and therefore satisfying, much less is consumed than formerly. Low wages may have had something to do with a decrease of consumption. But when wages were higher, some years ago, I noticed that less beer was purchased with a good quality of liquor, although the price remained the same. Before the ' public ' changed hands perhaps drunkenness was no worse here than in many places ; but cases were common enough. I am thankful to say now they are compara- tively rare, and seldom occur, except people have come in 1 " About two years' profits were once devoted to the sinking of wells and erection of pumps in various places, the water supply being improved at the expense of the beer." 12 "THE BOAR'S HEAD," from other places the worse for liquor, and have been accidentally served with more." In his evidence before the Royal Commission, in June, 1898, the rector said : " I cannot say that there is never any drunkenness, but I think I can safely say that drunkenness is reduced to a minimum. We very rarely have a case of drunkenness, and hardly ever in connection with the public-house." In concluding his evidence before the Commission, Mr. Mordaunt was asked whether the improvement in the parish was not rather due to the elimination of spirits than to the special virtue of the management ? And he replied : " It may be partly due to that, no doubt. It is chiefly due to drinking not being encouraged." He added : " Perhaps there is more done parochially than there used to be. For instance, I established a reading- room some time ago for young men. They sit there and spend a good deal of their time in the winter evenings in these reading-rooms. That has a negative good influence, and I hope keeps them out of the public-house." In summing up elsewhere 1 the results of his experience, Mr. Mordaunt says : " My experience leads me to the following conclusions : " 1. Temperance reformers do not agitate sufficiently against the evils of adulteration, or, to say the least, against the injury caused to the community by the sale of unwholesome liquor. . . . Certain I am that it is not pure beer, but the mixture sold under the name, which is a potent cause of drunkenness and of the craving for drink amongst thousands who scarcely ever touch spirits. . . . 1 Pojyular Control of the Liquor Traffic : Two Successful English Experiments, p. 11. HAMPTON LUCY, WARWICK 13 " 2. There are many villages and country towns in which property is not divided, where the public-house or houses belong to one squire or landlord. Why should not such proprietors take the matter into their own hands this could be done with very little trouble to themselves and so promote health and sobriety amongst their people ? . . . . The enormous number of public-houses now in the hands of the brewers must, of course, make a change difficult or impossible for many landlords who might be willing to make it. I only plead in such cases for my system to be attempted as soon as the emancipation of the ' public ' is possible. . . . " 3. As regards profit and loss, the business which has paid the publican may be less profitable, but certainly no loss, to the landlord. I am told that it can hardly be made to answer if less business than to the amount of 300 per annum is done. My own figures seem to show that at 300 there is some profit, and that at a figure considerably below this there might be no loss." Mr. Mordaunt adds : " I am not prepared to say anything very definite by way of advising an experiment of this kind being tried in the face of opposition from other ' publics,' over which a landlord may have no control. But I am very much inclined to think that it would answer, even under such circumstances, simply because the really moderate drinkers (who are still, let us hope, in a majority) would soon discover where they could get the most wholesome return for their money, besides knowing that the manager had no interest whatever in encouraging them to drink or in selling cheap stuff for the sake of extra profit." H "THE BOAR'S HEAD" In the same pamphlet, however, Mr. Mordaunt states that, as " the possessor of a monopoly undisturbed," he has " succeeded with the system pursued better than could have been expected were there other houses to contend with " ; and this conclusion seems to be fully borne out by the history of similar experiments elsewhere. Experience in all such experiments points conclusively to the fact that only limited and imperfect results can be obtained when there is not a complete monopoly of the local traffic. CHAPTER III The People's Refreshment>House Association, Limited THE first important attempt to apply some of the essential principles of the Gothenburg system to the management of the retail liquor traffic in this country was made by the People's Eefreshment -House Association, Limited. This Association was formed in 1896, with the Bishop of Chester as chairman of the executive council, and, from small beginnings, it has steadily extended its operations until it has now (July, 1901) eighteen houses under its management. So far its operations have been confined to the rural districts, but this has been the result of accident rather than of design, and the Association proposes, as opportunity offers, to acquire possession of town houses also. According to its published statements, the aim of the Association is "to give wider facilities for the adoption of the system of public-house management, with limited profits, already successfully at work in various parts of the United Kingdom. "With this object, it seeks to lease existing public- houses, to acquire new licences at places where the growth of the population obliges the licensing magistrates to create new ones, and to establish canteens and 15 16 THE PEOPLE'S REFRESHMENT-HOUSE refreshment-bars where required on large public works, at collieries, and elsewhere." The salient features of the system introduced into the public-houses managed by the Association are set forth as follows : (a) In order to remove all temptation to the manager to push the sale of intoxicants, he is paid a fixed salary, and is allowed no profit whatever on the sale of alcoholic drinks. (6) On the other hand, to make it to his interest to sell non-intoxicants in preference to beer and spirits, he is allowed a profit on all trade in food and non-alcoholics. (c) To enable the customer to get tea, coffee, temper- ance drinks, or light refreshments just as easily as beer or spirits, these are made readily accessible at the bars, and are served promptly. In this way the beer and spirit trade is deposed from the objectionable prominence into which, from motives of profit, it is pushed in the ordinary public-house, the aim of the Association being to maintain the house in a general sense as a public-house, but to conduct the trade on the lines of a respectable house of refreshment at popular prices instead of that of a mere drinking-bar. (d) To guard against the evils of bad liquor, great care is taken that everything supplied is of the best quality. The capital which is from time to time required to carry on the Association's increasing business is offered for subscription to the public in the form of 1 shares, entitled to a dividend out of profits at a rate not ex- ceeding 5 per cent, per annum, after payment of which ASSOCIATION, LIMITED 17 and making provision for a reserve fund, the surplus profit is devoted to objects of public utility, local or general, as the president and vice-presidents in consultation with the council may determine. The dividend is not cumulative. The rules of the Association provide : 1. That the business of the Association shall be managed by a council consisting of not more than fifteen persons, who shall be elected from a list of persons nominated by the shareholders. 2. That any officer or council-man may be removed from office by a majority of two-thirds of the members voting at a special general meeting called for that purpose. 3. That no member, other than a registered society, shall hold an interest exceeding 200 in the shares of the Association. 4. That each member shall have one vote only in respect of the share or shares held by him. Major Craufurd, who co-operated with the Bishop of Chester in the formation of the Association, in a letter to the present writers, dated July 7th, 1901, says in respect of this rule : " My idea in framing the rule was to safeguard the voting power getting into the hands of interested parties, who might buy up shares and parcel them out in blocks of two hundred to their nominees. This one shareholder one vote plan, which would apply to a poll as well as to meetings, would, it was thought, prevent this." The following is a complete list of the inns now under the control of the Association. It will be noticed that they are widely distributed over the country : 2 1 8 THE PEOPLE'S REFRESHMENT-HOUSE Date acquired. Name of House. 1897. Sparkford Inn. 1898. Meynell Ingram Arms. The Green Man. 1899. Red Lion Inn. Rose and Crown. Plymstock Inn. Jubilee Inn. 1900. Mermaid Inn. Royal Oak. Plume of Feathers. Dog and Doublet. Failand Inn. Buck's Arms. Norfolk Hero. 1901. Wharf Inn. Rose and Portcullis. Broad Oak. Carnarvon Arms. Locality. Sparkford, Somerset. Hoar Cross, Burton-on-Trent. Tunstall, Wickham Market. Broad Clyst, Exeter. Thorney, Peterborough. Plymstock, Plymouth. Flax Bourton, Bristol . Wightwick, Wolverhampton. Ramsden, Charlbury. Sherborne, Dorset. Sandon, Stafford. Failand, Bristol. Blickling, Aylsham. Stanhoe, Norfolk. Nuneaton, Warwickshire. Butleigh, Somerset. Strelley, Notts. Tiversall, Notts. The report of the Association for 1900 shows that there was a net profit on the last year's working of 1,107 11s. (or, with the amount carried forward in the previous year, of 1,166 6s. 4d). Of this amount 699 Is. lid. went to meet the expenses of the central office ; 20 17s. Id. for legal expenses, interest on manager's guarantees, and depreciation of office furniture ; 225 6s. 4d. was devoted to the payment of dividends ; 65 was carried to reserve, and 56 Is. was carried forward ; leaving the sum of 100 to be "distributed for public utility." The net profit on capital (4,993) l was 22 per cent. Inasmuch as the houses managed by the Association are for the most part small, consisting almost exclusively of village inns, situated in thinly peopled districts where the local sales are small and the expenses of management The present capital of the Association is 8,742. ASSOCIATION, LIMITED ig (including reconstruction and repairs) often unusually heavy, this statement of profits affords useful evidence of the lucrative nature of the traffic and of the large sums that will be available for wise public purposes when the system of monopoly, either by companies or by direct municipal action, is made possible by law. It remains true, however, that on the purely commercial side the Association is at a disadvantage by the fact that its operations are confined to the rural districts. Public- house profits are determined by the volume of trade done, and in this respect there can be no comparison between a rural and an urban trade. The fact that no more than 9 per cent, of the net profits is as yet available for purposes of " public utility " is due to the somewhat heavy expenses of the central office, which, " being those of a propagandist body operating over a very large area, are much in excess of the requirements of a purely commercial undertaking." The objects to which this portion of the surplus profits is appropriated are described elsewhere. 1 In the actual work of management a large measure of freedom is necessarily left to the local manager, who, in the official instructions issued by the central executive, is asked " to regard himself as an agent in the cause of temperance and good behaviour, who by the general tone and system of management of his house will make it a place where recreation and social intercourse of a harm- less nature may be enjoyed, and where refreshments of the best quality may be obtained under conditions that encourage temperance." There are no special rules or restrictions as in Norway and Sweden, the Executive holding that "to subject persons using a licensed house to rules and restrictions 1 See p. 41. 20 THE PEOPLE'S REFRESHMENT-HOUSE other than those prescribed by law or sanctioned by the licensing authorities would be an infringement of the rights and freedom of the public for whose convenience the licence was originally granted and is yearly renewed." In a general way, and apart from the prominence given to the sale of food and non-intoxicants and the absence of all inducement to push the sale of alcoholic drinks, it may be said that the method of management is closely similar to that of an ordinary well-conducted village inn. By the courtesy of the Secretary of the Association (Captain Boehmer) the present writers have had an opportunity of personally inspecting several of the houses managed by the Association, and a brief description of these, which are said to be typical, may be of interest as illustrating the methods and aims of the Association. SPARKFORD INN, SPARKFORD, SOMERSET Date when acquired by Association. Population of Village. October, 1897. Between 200 and 300. In some respects the Sparkford Inn furnishes the most interesting and useful illustration of the methods of the Association. It was the first inn acquired by the Association, and has been under their direct control since October, 1897, or nearly a year longer than any other house. It is situated on the main road, near to the Grreat Western station at Sparkford, but away from the village proper, which is exceedingly small and contains but one shop a small general store. The house is fully licensed, and has a complete monopoly of the local trade, the next nearest licensed house being more than a mile away. The local trade is, however, small, and quite inadequate to support the ASSOCIATION, LIMITED 21 inn, which depends mainly upon passing traffic and other extra-local trade. The fact that the house is situated on the main cycle road attracts to it many cyclists and tourists, while at the back of the inn is a large stock- yard where sales of stock are held every fortnight. It is from these sources that the main custom of the house springs. The house itself, which, like all the other houses managed by the Association, is rented and not owned, is a picturesque, old-fashioned country inn, with rose- trees in front, a garden at the side, and orchard, stock-yard, stables, etc., at the rear. The inn and garden cover slightly more than an acre of ground, while the orchard and stock-yard comprise about 4 acres. The bar proper is a small room 15 ft. by 10 ft., fitted with a table and a few chairs, and used chiefly by the farmers and other local customers of the " better clas." Immediately adjoining this is the smoke-room, 20 ft. by 12 ft., which has a stone floor and, like the bar is furnished with a table and chairs. This is used by the villagers generally. The tap-room is a much plainer room. It has the flag-stone floor common to such rooms, and is furnished with rather rough benches, tables, And a few chairs. It is used only in the daytime, and is chiefly frequented by the field labourers, drovers, etc. It measures about 17 ft. by 16 ft. On the other side of the house, and a little away from the bar, is what is called the commercial-room, a bright, clean room, about 18 ft. by 15 ft., furnished with a long table, " Windsor " chairs, and a few pictures. It is here that teas and other refreshments of a similar character are generally served. Upstairs there are six bedrooms. Two of these belong 22 THE PEOPLE'S REFRESHMENT-HOUSE to the Association and are let out to visitors at two shillings per night (one-half of this charge going to the Association and the other half being credited to the manager). The rooms are simply furnished, but are scrupulously clean and comfortable. The other four bed- rooms belong to the manager and his family. There is also an upstairs parlour or sitting-room, which belongs to the manager, but is used on occasion as a ladies' tea-room or as a sitting-room for summer visitors. The fittings throughout are simple but sufficient, and the scrupulous cleanliness which everywhere prevails reflects great credit upon the manager and his wife. The public-house trade proper is of a general kind, a varied stock of liquors being kept, while there is also a large trade in cider, the quantity of cider sold amount- ing to about one-fourth of the total sales of " draught " beers. All liquors are of the best quality, and the age of the spirits sold is plainly marked upon the label attached to each bottle. The " off " sale is small, amounting on an average to no more than a dozen jugs of cider or beer a day. No credit is given, nor is any attempt made to push the sale of intoxicants. There are no games or other adventitious attractions. The Association did at one time propose to build a skittle- alley, but subsequently decided not to do so. In the judgment of the present writers it was well advised in its later decision. It is noteworthy that no advertise- ment of alcoholic liquors is allowed in the bar or in any of the rooms. On the other hand, advertisements of tea, coffee, and other temperance drinks are con- spicuously placed in all the passages and rooms, and the sale of these appears to be encouraged in every possible way. Ordinary meals and other light refreshments are also easily procurable, This free advertisement and ASSOCIATION, LIMITED 23 ready supply of food and non-intoxicants of a good quality is a conspicuous feature of the management, but it probably represents all that an ordinary manager is able to accomplish in the way of counteracting the sale of intoxicants. In the bar trade proper it would seem to be impossible in a direct way to "push" the sale of non-intoxicants. The customer, it is said, comes in " with his order on his lips," and the manager cannot, when the order for beer or whisky is given, suggest that the customer should take lemonade instead. In this strict sense there are obvious limits to the " pushing " of non- intoxicants ; but it is clear that in less aggressive ways the sale of such drinks can easily be encouraged, and this the Association, through its managers, evidently seeks to do. The manager is paid a fixed salary, with allowances for fuel, lighting, etc., and he also receives the whole of the profits on food and two-thirds of the profits on the sale of mineral waters. He further receives all profits on cigarettes and tobacco, the Association reserving to itself the profits on cigars. There are no special regulations or restrictions. In such matters as the hours of sale, Sunday sale, and the serving of children, the Association adheres strictly to the provisions of the licensing law. In other matters reliance is placed on the manager's discretion. There is no express limit as to the quantity of liquor which a customer may purchase, the practice being to supply whatever is asked for in the ordinary way. The manager stated that in cases where he thought a man had had enough it was his practice to " put up his finger " as a warning sign, and also as a hint of his refusal to serve toore. The extent to which the locality benefits from the 24 THE PEOPLE'S REFRESHMENT-HOUSE profits of this house is largely determined by the result of the Association's operations as a whole. Not all of its houses are equally remunerative. In some cases where the expenditure for alterations and repairs has been exceptionally heavy, the trading for the first few months or even for the first year may show an actual loss, and in dividing its profits the Association is bound to recoup itself for such loss out of the profits of the more prosperous inns. In this way it happens that the grants assigned to objects of " public utility " in Sparkford have hitherto borne no direct relation to the profits earned in Sparkford. The effect of this arrangement is largely to diminish the direct interest of the community in the local sales, and from this point of view it is to be commended. So far the grants made for local purposes have not been large. Last year, when the profits for 1899 were -disposed of, a sum of 15 was allotted to Sparkford, and this sum was spent in improving the water supply of the village. This year a sum of 14 has been voted out of the profits for 1900, the grant being slightly less than in the previous year, although the profits earned in Sparkford were larger. The grant has this year been assigned to the Sparkford school. The usual procedure is for the Council of the Association to notify the sum which it proposes to allot to the locality. A village meeting is then called and a resolution passed fixing the object or objects to be benefited. This resolution is forwarded to the Secretary of the Association by the chairman of the meeting, and a cheque is at once sent. GENERAL IMPRESSIONS In summing up the general impression produced by our visit to the Sparkford inn, it may be said at once ASSOCIATION, LIMITED 25 that the aim of the house is not so much to restrict sales as to regulate the conditions under which such sales are made, and especially to secure the comfort and orderly behaviour of those frequenting the house. While alcoholic liquors are freely sold they are in no sense " pushed," and the customer has at all times a free choice of temperance drinks of a good quality. If it be asked whether the change of management has led to diminished drinking or to a decrease of in- temperance, it must be said that the natural assumption is that it has. It is generally agreed that before the Association took over the house it was neither clean nor well conducted, so that the change in these respects would seem to be marked. The entries in the visitors' book point to a very real improvement under the management of the Association, and upon a review of all the evidence it would be difficult to suppose that this has not been the case. The Rev. F. S. M. Bennett, Vicar of Portwood, Stockport, who is part owner of the inn, writing on September 4th, 1898, a year after the transfer had taken place, stated : "In my opinion the results from the temperance point of view are most admirable." Similar testimonials have been received from others. It is nevertheless matter for disappointment that the Association has not seen its way to attempt experiments in earlier closing, and especially to discontinue Sunday sales. The position which the Association assumes in reference to these matters is frankly stated in the published statement of its methods and aims, and its reluctance to proceed in advance of the licensing law is easily to be understood and sympathised with; but the value of its experiments as object lessons in public-house reform is clearly lessened when no experiments of the kind suggested are made. In a small and isolated community such a? 26 THE PEOPLE'S REFRESHMENT-HOUSE Sparkford, where the Association has a complete monopoly of the local trade, such experiments would seem to be comparatively easy. This is especially the case in refer- ence to Sunday sales. Such sales are at present extremely small, the bar takings amounting to no more than ten or twelve shillings for the entire day, while it is stated that there is practically no Sunday trade until after 8 p.m. It would appear, therefore, that this is distinctly a case where the Association might with advantage apply for a six days' licence. In other respects the conduct of the house appears to be excellent. It may be added that in the village itself little provision seems to be made for the social life and recreation of the people. There is, it is true, a small reading-room in the village, but it is altogether inadequate as a contribution to the recreative needs of the place. THE "RED LION" INN, BROAD CLYST, DEVON Date when acquired by Association. Population of Village. March, 1899. A Few Hundreds. The inn at Broad Clyst is also situated in an entirely rural district. The village proper contains but a few hundred inhabitants, but it is part of a large and scattered parish which stretches across country for a distance of seven miles and contains about two thousand inhabitants. The conditions at Broad Clyst are different in some im- portant respects from those at Sparkford. The Association, to begin with, has no monopoly of the local sales. In addition to the " Red Lion," and only half a mile distant, is the New Inn, which until recently was a beerhouse only, but has now acquired a full licence. There is also another fully licensed house at the station, a mile and a ASSOCIATION, LIMITED 27 half away. The next nearest licensed houses are two and a half miles and four miles distant respectively. When the owner of the New Inn first applied for a full licence the Association instructed its manager to oppose, but on the last occasion, owing to a strong local feeling in favour of the application, no opposition was offered. The effect of the competition is, however, apparent. In its structural arrangements the "Eed Lion" is distinctly inferior to the inn at Sparkford. The bar proper consists of a private enclosure for those serving. In front of it is a passage leading from the main doorway, but divided into a sort of compartment by a separate door. It is here that " transients " are served. At the side of the bar, and communicating with it, is what is called the " glass "-room. It is a cosy room, 25 ft. by 12 ft., furnished with small tables and leather- cushioned bench seats, and provided with a " polyphon," draught-board, etc. On the night of our visit it seemed to be chiefly frequented by young men. Behind the bar is a small private sitting-room. On the other side of the main passage is the tap-room, a somewhat bare and unin- viting room, with whitewashed walls and a stone floor, and furnished with a table and rude wooden benches. This room seemed to be exclusively used by the village labourers, 1 a number of whom regularly spend their evenings there. The only games provided are draughts (when the board is not required in the " glass "-room), and " ring and peg." In another part of the building, but on the ground floor, is the tea-room. This room, which measures about 25 ft. by 19 ft., has a separate entrance, and is brightly and 1 "We were, however, informed that women sometimes use the tap-room. 28 THE PEOPLE'S REFRESHMENT-HOUSE pleasantly furnished with basket chairs, small tables, an overmantel, etc. It is here that cyclists and other visitors are served. The room is also let once a month to the " Young Club " a local sick benefit society, which pays a rent of thirty shillings a year, and is said to order little drink. Upstairs is the dining-room, a fine room, 40 ft. by 20 ft., which is used for " rent dinners." It contains a good piano. The manager and his wife would like to use the room in the winter for " smoking-concerts," etc., but the Council of the Association wisely refuses its consent. The trade done is of a general kind, but " a lot of gin " is said to be sold. The "off" sales are said to be only " fair." Gin is sold a penny per quartern cheaper for "off" consumption, but no reduction is made on other spirits or on beers. There is a moderately large Sunday trade, the average takings amounting to about 3. For- merly the Exeter 'bus called twice on Sundays namely at 4 p.m. and 7 p.m. but the customers it brought were so disorderly that the manager at last refused to serve them, and the 'bus now calls at the New Inn. There is evidently much local prejudice against the inn, especially on the part of some who formerly fie- quented it. A good deal of this prejudice appears to be either unfounded or based upon resentment against the dispossession of the former tenant, a local man. At the same time, there is evidently a strong feeling on the part of some of the villagers that the conduct of the house is not what it might be, and it must be admitted that our own observation went to show that the management was less strict than in the case of the other houses visited. In one case that came under our own notice a man left the tap-room obviously worse for liquor, but was allowed ASSOCIATION, LIMITED 29 to return shortly afterwards. As he was notorious in the village for his drunken habits, the case could hardly have been an oversight. There were also complaints that tea and other light refreshments were not always readily forthcoming. Our own visit gave us no opportunity of judging of these complaints. The proportion of temperance drinks and food sold is, however, small. The effect of the change of management is undoubtedly less marked in Broad Clyst than elsewhere. The inn apparently does less trade than under the former manage- ment, but this is probably due less to increased restrictions than to local prejudice, and especially to the competition of the now fully licensed New Inn. It certainly does not appear that the aim of the present management is to restrict sales. The house is conducted much as an ordinary village inn is conducted, but with an evident desire on the part of the manageress and her daughter for " trade." Their motives in this are, however, apparently single, for they have absolutely no pecuniary inducement to push the sale of alcoholic liquors. The explanation is probably to be found in the fact that they are keenly sensitive to the competition of the rival inn. The force of this competition certainly tells powerfully against the Association in Broad Clyst. 1 The pecuniary benefit resulting to the village from the operations of the Association has not so far been great. Last year a total grant of 15 was made to the village, 1 We are informed by the Secretary of the Association that Sir Thomas Dyke Acland, the owner of the inn, has confessed himself well satisfied with the management of the house, and has stated that " if he had another house vacant he would offer it to the Association, although he would like to have a voice in the selection of the manager." 30 THE PEOPLE'S REFRESHMENT-HOUSE of which 5 was devoted to the Nursing Fund, 5 to the Clothing Club, and 5 spent on village lamps and the village green. This year (1901) a grant of 20 has been made to the village, of which 5 has been devoted to the Nursing Fund, 5 to the Clothing Club, 5 to the extinction of a debt incurred in erecting a bathing-place, and 5 has again been spent on village lamps and the village green. Of direct counter-attractions to the public-house there are practically none. The social needs of the village are supposed to be met by a small reading-room, which is open during the six winter months only and is under the charge of the sexton. There are forty-five members, who pay a weekly subscription of one penny. The average attendance is said to be fifteen. Several of the young men who were seen in the " glass "- room of the " Red Lion " were formerly members of the reading-room, but left owing to a disturbance. Members are now elected by ballot. We were informed that there had been but one concert in the village during the previous winter. PLYMSTOCK INN, PLYMSTOCK, DEVON Date when acquired by Association. Population of Village. May, 1899. Between 200 and 300. Plymstock is a small agricultural village situated less than two miles from Plymouth, and forming part of a wide parish containing several villages, all of them at least a mile apart. Plymstock itself has a comparatively small labouring population, the village consisting chiefly of a few farmhouses and scattered villas. The public-house is a simple country inn, small, but ASSOCIATION, LIMITED 31 pleasant-looking, and scrupulously clean. It has a glass- covered porch in front which admits to a wide lobby leading to the bar. The drink is drawn at the bar, but served in either the tap-room or bar-parlour. The former is a small but cosy room, 12 ft. by 10 ft., warmed in winter by a bright fire and furnished with a table and wooden wall-seats. The bar-parlour, which is used by the farmers, is also a snug room, 15 ft. by 12 ft. Opposite the bar is the tea-room, a pleasant and bright room, furnished with chairs and small tables. This room is reserved for teas and similar refreshments. There is one bedroom for visitors, but this is rarely used. The inn seems to be largely used by the villagers as a social meeting-place in the evenings. There is a small reading-room in the village, but this is shortly to be superseded by a new parish-room, which the vicar, with the help of the Duke of Bedford (who owns the estate) and others, is arranging to build. This room, when ready, will be used as a social institute. The trade done is small and of a general kind; a good deal of whisky is sold, the farmers and small gentry buying it by the bottle. The " off " sale is said to equal the "on," the former being more than usually large owing to the fact that the house has only a six days' licence. 1 No reduction in price is made for "off" sales. Light refreshments and non-alcoholic drinks are easily obtainable, but the demand for them is not great. The manager and his wife both urged that it was im- possible to " push " the sale of temperance drinks, but they evidently do their best to encourage such sales, and the usual advertisements are prominently displayed. 1 No change was made in this respect when the Association acquired the management of the house. 32 THE PEOPLE'S REFRESHMENT-HOUSE Altogether, the management of the house appears to be admirable. While no deliberate attempt seems to be made to restrict the sales, the manager is careful to discourage intemperance, and he is especially firm in refusing to allow loafing during the day. Local testimony points clearly to a marked improvement in the conduct of the house since the Association became responsible for its management, and our own observation entirely supports this presumption. The Association has been fortunate in its choice of a manager, and it is upon the manager that the success or failure of such experiments largely turns. It is necessary also to remember that the Association has in this instance a complete monopoly of the local traffic a fact of considerable importance in estimating its success. We may add that the only grant from profits made to the village last year was one of 5 towards the village reading-room. This year a grant of 6 has been made towards the new parish-room. The Kev. C. B. Collyns, Vicar of Plymstock, testifies as follows to the good influence of the new management : " I am glad to be able to tell you that the new order of things is a very great improvement on the old, and appreciated as much by the frequenters of the house as by others. I am convinced that the temperance cause is being quietly but really helped by the Association. Many of those who sat and drank by the hour under the old regime, and left the house very drunk at closing-time, now think it too respectable for them, and stay at home. Under the old management the village was often disturbed by rowdyism at night ; this has quite disappeared since the Association acquired the house." ASSOCIATION, LIMITED 33 THE "PLUME OF FEATHERS," SHERBORNE, DORSET Date when acquired by Association. Population of Town. February, 1900. 6,000. This house, prior to its acquisition by the Association, was a badly kept and somewhat disreputable place, whose evil reputation and low class of trade were serious obstacles in the way of the new management. It was also so ill-adapted for the purpose for which it was licensed that important structural alterations, involving an expen- diture of more than 300, had to be undertaken by the Association before it was fit for their work. It is a low, old-fashioned building, somewhat " ramshackle " in arrangement, and apparently constructed without regard to the practical requirements of the trade. On the ground floor is the bar proper, a room 14 ft. by 12 ft., and fitted with a table and chairs. Immediately opposite is the bar-parlour, a room 13 ft. by 12 ft., in which only a " glass " trade is done. It has the usual photographs of houses belonging to the Association and the ordinary advertisements of temperance drinks, and, like the bar, is furnished with chairs and a table. A little to the rear of this room, and approached by the central passage, is the ruder tap-room, with its stone floor and wooden benches and the customary table. It is a rather dark room, used by labourers and others during the daytime, and on Saturdays by women from the surround- ing country districts, who come into Sherborne for shopping. All beers, etc., are drawn straight "from the wood." The cellar is immediately behind the bar, at the rear of the building, and the "off" trade is supplied direct from 3 34 THE PEOPLE'S REFRESHMENT-HOUSE the cellar and not from the bar. In this way children and others entering with jugs do not enter the bar, but pass direct to the cellar. Adjoining the main building, but communicating with it, is the newly added tea-room, a very bright room, measuring 20 ft. by 13 ft., and pleasantly furnished with cane chairs, small tables, an overmantel, pictures, etc. This room has a separate entrance, and from its close proximity to the famous old Abbey (a popular resort for visitors in the summer months), it should be freely patronised for teas and other light refreshments. At present the trade in this department is small. In the first few weeks of its management the Association encountered much prejudice and suspicion, and did very little trade. The manager, who appears to be in full sympathy with the aims of the Association, was careful from the first to discourage loafing and the loose practices that had formerly prevailed, with the result that the old customers left and others were slow to take their place. Gradually, however, the house has won its way, and the trade now done is said to compare favourably with that of other houses in the town. The Association is heavily handicapped in its experiment by the competition which it has to encounter, and the manager was fully alive to this in his statement of what was possible in the way of restrictions and reforms. There are no less than twenty-six licensed houses (i*. public-houses and beer-shops) in Sherborne, in addition to grocers' licences and wine and spirit stores, and this fact has to be considered in attempting any reform. The manager pointed out that even to attempt to close earlier on Sundays would mean a loss of ordinary trade, since it would place the house at a disadvantage with ASSOCIATION, LIMITED 35 other licensed houses in the town, and also revive a prejudice against the Association which it has hardly yet had time to live down. It is scarcely to be wondered at, therefore, that the result aimed at in the management of the house is general good conduct rather than definite restriction of sales. In this respect the Association can fairly claim to have succeeded. The house seems to be largely used as a place for social intercourse, but no encouragement is given to intemperate drinking, nor is it knowingly allowed. There are no games nor other adventitious attractions, and this despite the fact that skittle-alleys are provided by other publicans in the town. The " off " trade of the house is small, averaging only about twelve quarts a day. In accordance with the custom of the town, prices for "off" sales are reduced. Pale ale, for example, is sold a penny per pint cheaper for "off" consumption, and old beer, Burton, and stout a halfpenny per pint cheaper. No reduction is made in the case of cheap ale. Other houses in the town also make a reduction of one penny per gill for all spirits sold for "off" consumption, but the Association makes such a reduction in the case of gin only. The proportion of spirits sold both for "on" and "off" consumption is not, however, great, the bulk of the trade consisting of beer and cider. Temperance drinks are well advertised and are always readily accessible, but the demand for them is small, a curious fact being that considerably less mineral waters are sold under the new management than under the old. This statement is made on the authority of the manufacturer who supplied the former tenant and now supplies the Association. That this does not result from any lack of eagerness on the part of the present manager or his wife is certain. They naturally desire 36 THE PEOPLE'S REFRESHMENT-HOUSE for their own profit to increase the sale of such drinks, but state that they can do little directly to " push " them without running a great risk of driving their customers away. It is an interesting fact, however, in this con- nection that the manager regularly opens his house at 6 a.m. (i.e. two hours before the other licensed houses in Sherborne), in order to supply tea to working men on their way to their employment. He is able in this way to sell on an average from thirteen to fifteen cups of tea every morning before 8 a.m. He has occasionally sold as many as thirty in one morning, but that has been due to special causes. Whether the house under its new management has actually lessened the amount of intemperance in the town it is difficult and, indeed, impossible to decide. In view of the competition that surrounds it, it could hardly be expected to accomplish much in this direction. It is certain, however, that the character of the trade in the house itself has greatly improved. The loafers and other disreputable persons who frequented the inn under its former management no longer cross its threshold; they have probably merely transferred their custom to other houses where the management is less strict, but it is something gained to have closed the doors of one public- house against them. Inasmuch, also, as it was not at any time a question of abolishing the licence, but only of changing the conditions under which it was exercised, the Association is entitled to full credit for the unques- tionable improvement that it has in this respect effected. SUMMARY OF ADVANTAGES AND DEFECTS The foregoing instances, which are said to be typical of the houses rented by the Association, will probably ASSOCIATION, LIMITED 37 suffice to illustrate the methods and aim of the People's Refreshment-House Association, and they furnish evidence enough to allow of a just estimate being made of the advantages and limitations of the experiment. ADVANTAGES OF THE SYSTEM 1. The first and most obvious virtue of the system is that it completely eliminates the element of private profit from the sale of intoxicants in the houses managed by the Association. 2. The Association in no way authorises or sanctions any attempt on the part of its managers to push the sale of alcoholic liquors. On the contrary, it has clearly done its best to withdraw all inducement in this direction. That it could greatly increase its sales if it cared to do so is, we think, certain. 3. The utmost prominence is given to the sale of temperance beverages, and a powerful pecuniary induce- ment is offered to the managers to foster the sale of such drinks. Although the Association provides and furnishes the tea-rooms, and supplies all china and other utensils, the whole of the profits on food are given to the manager, as well as two-thirds of the profits on the sale of mineral waters. 4. There are no sales on credit. 5. Gambling and all the immoral accessories of the public-house are abolished. 6. Music and other adventitious attractions are not allowed except by the special permission of the Central Council. In practice no such permission seems to be given, the only apparent exception to this being the case of the Red Lion Inn at Broad Clyst, where draughts and a " peg and ring " board were in use. In this respect the 388012 38 THE PEOPLE'S REFRESHMENT-HOUSE Association has wisely modified in practice the theory of recreative attractions which was a feature of the scheme as originally proposed. 7. Full attention is given to the purity of the liquors sold and only those of good quality are admitted. A careful system of inspection is provided for by the Council. In practice the inspection is done by the Secretary of the Association, whose method is to enter a house without notice and take samples of the liquors sold in the bar. These samples are sent back to the merchants who supplied them, to ascertain whether the liquors are of the same strength as when first supplied, and also if the liquors are actually the same. So fai, according to the statement of the Secretary, there has never been "a single case of detection or suspicion in that connection." 8. All possibility of collusion between the brewer or distiller and the local manager is rigorously excluded. 1 Wines and spirits are ordered by the central office. In the case of beer, orders are sent by the local managers, but the central office chooses the brewer. All invoices (whether for beer or spirits) go direct to the central office, and the liquors are then charged to the local managers at selling prices. The local managers are further charged 2| per cent, for " unaccountable profit " 3 on all liquors sent. 9. The Association rents all its premises, which, 1 Rule 31 provides that " It shall be the duty of the Council to discharge from the service of the Association any person em- ployed by the Association who directly or indirectly shall receive from any other person supplying or dealing with the Association any gift, bonus, commission, or benefit." 2 This is a trade term used to denote a margin of profit that accrues from certain uncontrollable causes, such as the impossibility of filling a glass absolutely full, etc. ASSOCIATION, LIMITED 39 generally speaking, are simply furnished and scrupulously clean. 10. Finally, it is to be noted that the Association has in no case added to the number of licences in a locality, but has simply acquired existing licences where suppres- sion was not a practical issue. 1 LIMITATIONS AND DEFECTS The defects of the system arise chiefly out of the limitations by which, in the present state of the law, it is necessarily bound, and for these it is not properly responsible. It is nevertheless important to notice them, since they serve to indicate the legislative reforms that are necessary before a true demonstration of the value of the Gothenburg system can be given in this country. 1. The most obvious drawback to the experiment is the fact that the Association has only in certain cases a monopoly of the local traffic. In many cases it has to encounter the full force of local competition, and the effect of this is always to create a set of conditions un- favourable to complete or even important success. It is, of course, obvious that even with competition certain improvements are possible, and it is clearly a gain to the cause of temperance when the element of private profit is eliminated from even a single public-house ; but the motives that underlie the Gothenburg system include much more than the elimination of private profit and the institution of minor reforms, and the value of the system as a temperance instrument is seriously diminished when it has to withstand the practically unfettered competition 1 The Association is not, however, opposed to the policy of acquiring new licences. It would "always be ready to come forward and apply for a new licence to save it from falling into private hands." 40 THE PEOPLE'S REFRESHMENT-HOUSE of a privately conducted trade. It must always be remembered that in a struggle of this kind competition tells against reform rather than for it, and even where no actual injury is done to essential principles there will always be limitation of effort and the interposition of a serious obstacle in the path of progressive reform. It is for this reason that the present writers have elsewhere l attached so much importance to the need of permissive powers under which private companies such as the People's Refreshment-House Association, or municipal councils, can acquire a complete monopoly of the licences granted to a village or town. 2. It is further to be regretted that the Association has not so far felt itself at liberty to proceed in advance of the law (as the companies in Sweden and Norway have done) in such matters as reducing the hours of sale, Sunday closing, raising the age limit for children, etc. It is true that in such cases as Broad Clyst and Sherborne, where the Association encounters the competition of other licensed houses, it would be difficult, and, from a com- mercial point of view, probably suicidal to attempt it ; but in other cases where the Association has a complete monopoly of the local traffic it would seem both reasonable and useful to introduce reforms of this kind. The fact that the licensing law prescribes the hours of sale is not in itself (as experiments elsewhere have shown) an insuperable barrier, and it is likely that local sentiment would, as a general rule, support any action of the Association in this direction. Certainly experiments in the public management of the liquor traffic lose much of their practical value as object-lessons when reforms of this kind are not attempted. 3. The appropriation of profits to objects of "public 1 The Temjwance Problem and Social Reform. ASSOCIATION, LIMITED utility " has so far (owing to heavy expenditure in other directions) been so small that the present writers hardly feel justified in alluding to it as a defect ; but in view of their strong conviction that the first charge upon surplus profits should always be the provision of efficient counter- attractions to the public-house, they cannot regard the present method of appropriation as completely satisfactory. Last year the total sum voted to objects of utility was , and grants were made as follows 1 : Sparkford, 15, Improved water supply to village. Hoar Cross, 10 towards fund for erection of fountain. 30 towards fund for district nurse. 15 as follows : Nursing Fund, 5 ; Clothing Club, 5; Village lamps and green, 5. 30 as follows: Mutual Improvement Association, 15; Peterborough In- firmary, 5 ; Thorney Flower Show, 5; and Thorney Foal Show, 5. Plymstock, 5 towards village reading-room. Flax Bourton, 7 towards School Fund. It will be seen that while all the objects were in 1 In the present year (1901) a sum of 100 has been voted as under : Sparkford, Hoar Cross, Tunstall, Broad Clyst, Tunstall, Broad Clystj Thorney, Thorney, Plymstock, 14, Sparkford School. 6, Fund for fountain. 23, District Nurse Fund. 20 as follows : Village green and light, 5 ; Clothing Club, 5 ; Nursing Fund, 5 ; Debt incurred in erecting bathing-place, 5. 21 as follows : Thorney Horticultural Society, 4; Thorney Foal Show, 4; Mutual Improvement Society, 13. 6, Parish Room. Flax Bourton, 10, Voluntary School Fund. 42 THE PEOPLE'S REFRESHMENT-HOUSE themselves good, they could only in a few cases be regarded as " counter-attractions " to the public-house, 72 (out of a total of 112) being spent either upon objects properly chargeable to the rates or upon forms of charitable aid usually supported by private philanthropy. In the present instance the matter is chiefly important because of the serious deficiency of social institutes and other centres of recreation in the villages in which the Association carries on its operations. In judging of the work of the Association as a whole, however, it is to be observed that the Executive do not regard their sysjtem of management as having " reached finality," nor as having yet reached the stage where it can be described as entirely fulfilling the aim which the promoters had in view. All that is claimed is that in their short career they have covered " a good part of the way on the road towards an ideal which is kept clearly in view." Meantime there are said to be "a good many directions in which the Executive are tentatively trying improvements, all of which will come in due time." CHAPTER IV The Grayshott and District Refreshment Association, Limited THE "FOX AND PELICAN," GRAYSHOTT, HANTS Estimated Population Date opened. of Village. August, 1899. 600. experiment made in 1898 by the Grayshott and District Refreshment Association, Limited, of which Sir Frederick Pollock, Bart., is the president, marked in some respects a new departure in the attempt to apply the principles of the Gothenburg system to the manage- ment of the liquor traffic in this country. In all previous attempts a benevolent despotism had been present to assist either in the promotion or the management of the undertaking, the owner of the estate or the local clergyman being responsible for the licence. The Gray- shott experiment began on strictly co-operative lines, the villagers themselves taking up many of the shares. It was also the first house in England l to receive a new licence for the express purpose of an experiment on Gothenburg lines. 1 The Hill of Beath tavern in Fifeshire was an earlier instance. The Elan village canteen, although established much earlier than the Grayshott experiment, was not an ordinary public-house. 44 The history of the experiment is clearly set forth in a statement issued by the Committee of the Grayshott Association in 1899, from which a few facts may be quoted. In the winter of 1897-8 the rapid growth of the village of Grayshott and the surrounding district forced upon the attention of residents much interested in its welfare the question of public-house accommoda- tion, as it was felt that very soon application would be made, from one quarter or another, for permission to open a fully licensed house. Some time previously, when the place was much smaller, an off-licence had been granted, but it seemed to the large majority of those interested that, if a fully licensed house were to be opened in the village, it would be in every way desirable that it should be one in which no prominence should be given to the sale of alcoholic drinks, but rather a refreshment-house in which alcoholic liquors of the best quality should always be obtainable, but where food and non-alcoholic beverages of good quality and at moderate prices should also be freely provided and their con- sumption encouraged. " Preliminary meetings were therefore held, information from various quarters procured, the assistance of the People's Eefreshment-House Association enlisted, and, as a first practical step, the purchase of the plot of land on which the "Fox and Pelican" stands secured. Subsequently the Grayshott and District Refreshment Association, Limited, was registered under the Industrial and Provident Societies Act, 1893, with a capital of 2,500, and subscriptions solicited. "So sympathetic was the feeling as to the importance of the project that liberal applications for shares were speedily received, and, in preparation for the licensing sessions of the Alton Bench of magistrates in September, REFRESHMENT ASSOCIATION, LIMITED 45 1898, plans of a house suitable for the business contem- plated were prepared. At those sessions, on September 6th, the application was heard, preceded by an application by an Alton firm of brewers for a similar licence for a house to be erected on a plot of land adjacent to that belonging to the Association. The magistrates, after hearing evidence in support of both applications, decided to grant a licence to the Association and to refuse one to the Alton firm, and in due course the licence was confirmed by the County Licensing Committee. "Thereupon building operations were proceeded with as speedily as possible, and early in July, 1899, the building was practically ready for occupation. After some slight delays incidental to the starting of a new business, the house was formally declared open by Mrs. Randall Davidson (in the unavoidable absence of the Bishop of the Diocese), at an afternoon reception on Wednesday, August 23rd, 1899, and on Monday, the 28th, business commenced." The whole of the capital (^2,500) was subscribed either locally or by friends of residents, and the full amount has been practically absorbed by the purchase of land, erection of house and stables, furnishing, etc. The Articles of Association expressly provide that no dividend exceeding 4 per cent, per annum shall be paid to shareholders, and that, while making provision for a reserve fund not exceeding in amount 25 per cent, of the Company's capital, the balance of profit shall be applied to such charitable, educational, or other legal purposes as the shareholders at a general meeting may from time to time decide upon. The house is artistically designed and thoroughly well built, and is fitted and furnished throughout in excellent taste. In addition to the bar (the passage of which is 48 THE GRAYSHOTT AND DISTRICT against the movement, it is risking too much to impose regulations in advance of the licence law. It is necessary to remember that the Association has not a complete monopoly of the local traffic, but only of the " on " trade. 1 In addition to the " Fox and Pelican " there is an " off " beer-house in the village, as well as two grocers' licences, while it is a not unimportant fact that the site adjoining the " Fox and Pelican," for which a full licence was sought by a firm of brewers at the time the Association was formed, still remains in the possession of the brewers who applied for the licence. These facts, together with the additional fact that the district appears to contain a somewhat unusual proportion of lawless spirits in its population, must be carefully borne in mind in estimating the success of the Grayshott experiment. That it has not realised all the expectations of its promoters they themselves freely acknowledge. The experiment has been handi- capped throughout by a not always scrupulous opposition on the part of the least reputable portion of the inhabitants ; and the committee has, moreover, been singularly unfortunate in its managers. But the in- tention that underlies and governs the experiment is unquestionably single and sincere, and when all limitations and imperfections are allowed for, it is incontrovertible that the interests of temperance in the district are much more securely safeguarded than they could have been if an ordinary public-house had been allowed to be established in the village. The situation is well expressed in a letter which the Rev. J. M. Jeakes, a member of the committee, addressed to one of the present writers in May, 1901. Mr. Jeakes says : " I am very glad that you have seen the " Fox and 1 The nearest fully licensed house is a mile away. REFRESHMENT ASSOCIATION, LIMITED 49 Pelican." The conditions under which this experiment is made are, I think, exceptionally difficult ; but the difficulties we have passed through do not at all alter my conviction that we are, in the main, on the right track, and that we did the best we could do under the circum- stances, in view of the great probability of a tied house entirely out of our control." Looked at from this point of view simply, the efforts of Sir Frederick Pollock and his colleagues are completely justified. On its commercial side the experiment has been en- tirely successful. The financial statement for the first thirteen months (i.e. August 28th, 1899, to September 30th, 1900) showed a balance of profit on trading account of 213 11s. 3d Of this sum 99 14s. Id. was set aside for depreciation of furniture and buildings and one-third share of preliminary expenses, leaving a net balance of .113 17s. 2d. Of this amount 99 9s. Id. was absorbed in payment of a dividend of 4 per cent, on the paid-up capital of the company, leaving a final balance of 14 7s. Id. to be carried forward to next account. CHAPTER V The Elan Valley Canteen, near Rhayader, Radnorshire Average Number of Date opened. Men Employed. September, 1894. 1,200 to 1,500. The Elan Valley experiment, the first of its kind in the United Kingdom, owes both its origin and its success to the practical wisdom of the Waterworks Committee of the Birmingham Corporation. It was established in September, 1894, to meet the requirements of the men employed upon the construction of their new reservoirs near Rhayader. To accommodate the navvies and others employed, the Committee had practically to construct a village some three or four miles from Rhayader, and the supply of liquor at once became an urgent problem. Prohibition was felt to be impracticable, so that the only alternatives open to the Committee were either (1) to let or lease a building to a private publican in the ordinary way ; or (2) to themselves apply for a licence and establish a canteen on their own property. The first of these alternatives, although simpler, was open to grave objec- tion. While the publican, as the tenant of the Committee, would to a large extent have been under their control, it was nevertheless felt that if the house " were run as a 50 trade venture in the interests of the publican, his own interest doubtless would be to promote rather than to restrict the sale of drink." The second alternative was therefore chosen. The Committee accordingly applied for a licence, which was granted subject to certain special terms which the Committee itself suggested. The chief of these conditions was that the canteen should be placed in charge of a manager who should be paid a fixed salary and have no direct or pecuniary interest in the sale of intoxicants. The second main condition related to the hours of sale, the Committee not wishing to open during the whole of the usual public-house hours. The conditions governing the experiment are, of course, in certain important respects exceptional and more than usually favourable to success. In addition to a certain benevolent despotism which the Committee (unlike a voluntary company, such as the People's Kefreshment- House Association) is free to exercise, the works are to a large extent isolated. Ehayader is three or four miles distant, and access to the works, which are situate on the left bank of the river Elan, is completely under the control of the Committee. The only approach for vehicles is by a suspension bridge which the Committee itself constructed, while a narrow footway leading to a foot- bridge at the other end of the village is the only other means of access. The public have no right of way, and tradesmen from the neighbouring town are only allowed to use the suspension bridge on the express undertaking that they will not introduce intoxicants into the village. Moreover, the bridge-keeper has instructions to examine every cart. It is an interesting fact that so far there has been no shebeening. The monopoly enjoyed by the Committee is, neverthe- less, not quite complete. On the other side of the river, $2 THE ELAN VALLEY CANTEEN, but at a comparatively short distance from the village, is the Elan Hotel, 1 a fully licensed house, which is said to be much frequented by the men from the works. 2 The licence for this house was applied for when the Birmingham Corporation first began its works, and although the Corporation applied to be heard in opposi- tion to the licence, the magistrates refused to hear its representatives, but granted the licence despite their protest. It is undoubted that the close proximity of this house militates against the complete success of the canteen experiment. As a fully licensed house it does so directly in respect of the sale of spirits. At the canteen itself no spirits are sold, the sales being strictly confined to beer and mineral waters. The sale of the latter is, however, exceedingly small. 3 There is no sale of food. It was at first proposed to sell tea, cocoa, and other similar beverages, as well as food, in the canteen, but the idea was relinquished owing to the absence of any demand for them. The selling price of the beer (5d. per quart) is fixed by the market price in the neighbourhood. Orders to the brewers are sent direct by the Secretary of the Waterworks Committee, who charges the goods at selling prices to the manager of the canteen. Stock 1 The distance separating the Elan Hotel from the village canteen is, by way of the suspension bridge, exactly a mile; but from the right-hand end of the village it is little more than half a mile. 2 The Secretary of the Waterworks Committee, in his evi- dence before the Royal Commission on Liquor Licensing Laws (July 6th, 1898), estimated that the sum spent by the men at the Elan Hotel, and at the public-houses in Rhayader equalled in amount the takings of the canteen. * The Secretary of the Waterworks Committee stated that out of a total week's takings of 104 18s., only 7s. 6d. was derived from the sale of mineral waters. NEAR RHAYADER, RADNORSHIRE 53 is taken each week on specially prepared forms. The canteen manager, according to the Secretary's statement, " quite understands that he is thought no more highly of if his sales are high than if they are low, whereas should there be any disturbance or drunkenness he would be held responsible for it." To ensure the good quality of the beer sold, the Committee has established a system of taking samples of all the beer in the canteen at irregular times without notice to the canteen manager. In response to a private order from the Secretary of the Waterworks Committee, a man attends at the canteen and takes samples. The bottles are then sealed in the presence of the canteen manager and sent to Birmingham, where they are submitted to the examination of a brewing expert. GENERAL REGULATIONS The management of the canteen is governed by a series of regulations of quite exceptional stringency : 1. No credit is given. 2. Music, games, etc., are strictly prohibited. 3. The hours of sale are severely restricted. The canteen is open on ordinary week-days (i.e. Monday to Friday) from 12.30 p.m. till 2 p.m., and from 5.30 p.m. till 9 p.m. On Saturdays it is open from 1 p,m. till 4.30 p.m., and from 5.30 p.m. till 9 p.m. At first it was kept open continuously on Saturdays from 1 p.m. till 9 p.m., but it was found that there was a tendency on the part of the workpeople to remain too long in the canteen, and so the canteen was closed between 4.30 and 5.30. p.m. It was originally proposed to open the canteen for half an hour in the morning on each week-day, and provision for this was made in the scheme 54 THE ELAN VALLEY CANTEEN, of management sanctioned by the magistrates, but ultimately it was not found necessary to do so. There is no sale on Sunday, the licence being governed in this respect by the Welsh Sunday Closing Act. 4. The quantity of beer to be served to any one customer is strictly limited, the rules providing that no person shall be allowed more than two quarts of beer during the evening for consumption on the premises, nor more than one quart during the dinner-hour. The total quantity which a customer can thus purchase during the day is three quarts. The Secretary states that, in practice, it is found impossible in the rush of business to keep an eye upon every individual customer, and it may sometimes happen that in the " great rushes " of trade this rule is sometimes evaded, but, speaking generally, it is enforced. In the case of "off" sales the rules provide that " no hut-keeper [i.e. a workman in whose hut from eight to ten other workmen are lodged] shall be supplied with more than 1 gallons of beer in any one evening, nor with more than 2 gallons for the mid-day meal from the jug department, except on Saturday evening, when a hut-keeper may purchase double the quantity." The latter proviso is to cover Sunday consumption, the canteen being closed on that day, 5. It is further provided that " no person who is in the slightest degree intoxicated shall be supplied with drink on any pretence whatever." This rule is said to be enforced absolutely and without regard to the quantity of beer which a man may have had. 6. Women are not allowed to enter the bar, but are strictly confined to the jug department, where only "off" sales are made. The total number of women in the village is not more than from 120 to 150. NEAR RHAYADER, RADNORSHIRE 55 7. An " age limit " is imposed both for " on " and " off " sales. In the case of the former the rules provide that only men above the age of eighteen shall be allowed to enter the bar ; and in interpreting this rule the management " leans to the side of strictness rather than to the side of laxity." In respect of " off " sales the rules provide that no boy under the age of sixteen, nor any woman under the age of twenty-one, is to be served with beer or porter in the jug department. COUNTER-ATTRACTIONS TO THE CANTEEN As already pointed out, no music, games, or other attractions are allowed in the canteen ; but a public hall or recreation-room has been built near to, but entirely separate from, the canteen, and there newspapers, magazines, games, and amusements of various kinds are provided. A supply of non-intoxicating drinks was also formerly on sale there, but the demand for them was apparently not great. This room is said to be " a great success " and " tends to minimise the drinking in the saloon." The Secretary of the Waterworks Committee, in his evidence before the Royal Commission on Liquor Licensing Laws, stated he knew that " in many individual cases men who had been addicted to drink, having had the means provided them of spending their evenings in a more rational way, had been kept away from the drink." FINANCIAL RESULT'S On its financial side the experiment has been an unquestionable success, and is said to make " a very considerable profit." For the three and a half years ending March 31st, 1898, the gross profits amounted to 56 THE ELAN VALLEY CANTEEN, 5,450, and the net profits to 3,262. The ratio of net profit on takings was 22 per cent. This latter figure is noteworthy in view of the heavy cost of carriage and the further fact that an eighth part of the total capital outlay is annually written off the profits. The average percentage of profit on capital invested was slightly over 93 per cent, per annum. These surplus profits are devoted to the maintenance (wholly or in part), of the various village institutions, of which the chief are the day school, the public rooms (including the free library, reading-room, and recreation-room), and the hospital. GENERAL BESULTS In its general results the experiment has certainly justified the policy of the Committee. There has been very little disturbance, and only on one occasion, or at most on two, has the management had to have recourse to the power which it reserves to itself of closing the canteen. "Very shortly after the house was opened," said the Secretary of the Waterworks Committee in his evidence before the Royal Commission, " we had to close it on one night. Our people had not then been got to realise the lines on which it was intended the public- house should be conducted, and they began to comport themselves as one would suppose they would do in an ordinary public-house. We immediately cleared them out and closed it. Since then we have had no trouble." There have been cases of drunkenness, but these have been comparatively few, and in general orderliness and sobriety the settlement is said to compare " extremely well " with similar settlements in other places. The Chief Constable of the county, writing in October, 1896 (two years after the opening of the canteen), said : NEAR RHAYADER, RADNORSHIRE 57 " Drunkenness in the Elan village is undoubtedly sup- pressed through the stringent rules and measures adopted by the canteen ; and, further, I have no hesitation in saying that it is attributable to those regulations." In June, 1898, he wrote again as follows : "Drunken- ness has slightly increased in the village; I do not, however, think it is attributable to any bad management of the canteen. I still adhere to my former opinion expressed in my letter to you, dated October 5th, 1896." The slight increase in drunkenness referred to (of which the letter quoted above was the first intimation received by the Committee) may or may not have been attributable to the canteen. The probability is that it was not, for it happened to coincide with an actual falling off in the takings of the canteen. It is interesting, finally, to notice that while the rules and regulations of the canteen have been altered slightly from time to time according to circumstances, such changes have always brought the management more and more within the original conditions laid down when the Corporation first applied for the licence. CHAPTER VI Scargill Waterworks Canteen, Harrogate Average Number of Date opened. Men Employed. September, 1898. 350. ONE of the most interesting of the experiments that have come under the personal observation of the present writers is that carried on by the Waterworks Committee of the Harrogate Corporation in connection with their works at Scargill, six miles from Harrogate. The experiment has much in common with the canteen established by the Birmingham Corporation at their works in the Elan Valley, Khayader, but was started without knowledge of that experiment. In beginning the construction of reservoirs at Scargill, nearly three years ago, the Waterworks Committee found themselves compelled to provide the men employed upon the works, numbering sometimes as many as five hundred, with facilities for purchasing beer. The nearest public- house was two and a half miles away, and the men refused to work unless nearer facilities were provided. It occurred to Alderman Fortune, the chairman of the Waterworks Committee, that the circumstances furnished a good opportunity for an experiment on the lines of the Gothenburg system, and, the Committee approving, a SCARGILL WATERWORKS CANTEEN 59 large canteen (with additional but separate accommodation for a general store) was accordingly erected, and a manager appointed to conduct the business on clearly defined lines. The ends aimed at are : (1) to restrict as far as possible the sale of intoxicants, and (2) absolutely to eliminate private profit from such sale. Alderman Fortune, to whom the success as well as the inception of the experi- ment is chiefly due, has from the first strenuously set himself against any arrangement likely, directly or indirectly, to interfere with the full attainment of these ends. 1 Beer is the only intoxicant sold, spirits being expressly .excluded. The manager receives no commission on the sale of beer, but is allowed to sell for his own profit all kinds of food, as well as tea, coffee, mineral waters, etc. In addition, he is paid a fixed salary and provided with a house, coal, and light. He is not allowed to purchase the beer nor to fix the price at which it is sold. It is invoiced to him at selling prices, a small allowance being made for waste. The hours of sale are severely restricted. The canteen is open on the ordinary week-days from 9 a.m. to 9.30 a.m., 12 noon to 1 p.m., and from 5 p.m. to 8 p.m. On Saturdays the hours are from 9 a.m. to 9.30 a.m., 12 noon to 2.30 p.m., and from 6 p.m. to 8 p.m. On Sundays it is open from 12.30 p.m. to 2.30 p.m. and from 6 p.m. to 8 p.m. At first the final hour of closing on week-days was 10 p.m. ; it was subsequently altered to 9 p.m., and is now 8 p.m. If circumstances appear to demand it, 1 It is a noteworthy illustration of the consistency with which these aims have been pursued, that when some months ago Alderman Fortune discovered that one of the brewers, acting in conformity with a trade custom, had given the manager of the canteen a Christmas present, he at once gave instructions that no further orders were to be sent to that brewer. 6o SCARGILL WATERWORKS CANTEEN, the manager is instructed to close still earlier. On " Mafeking " day, for example, the canteen was closed early in the afternoon, and kept closed for the remainder of the day. It is also kept closed after the annual dinner at Christmas. In this respect the management is closely modelled upon the practice of the Norwegian companies. The manager is not allowed to serve beer at other than the recognised hours, nor is he, under any circumstances, permitted to send beer to the men at work ; but he may send tea, mineral waters, and other temperance drinks. During a spell of hot weather last summer the men petitioned to be allowed to purchase beer during work hours. Alderman Fortune refused the petition, but gave instructions for oatmeal water to be freely supplied to men who desired it. It is interesting as an indication of the extent to which temperance drinks are sold that the manager sells from forty to fifty pints of tea a day. At the time of our visit he was also selling a fair quantity of mineral waters, chiefly, however, in conjunction with beer. He stated that the sale of mineral waters could not be " pushed " to any considerable extent ; the men " know what they want," and " resent being interfered with " in respect of their orders. No one is served with beer who shows the least sign of drunkenness, and it is an interesting fact that so far not a single case of drunkenness has been traced to the canteen. There have been a few cases of drunkenness in the village, but inquiry has shown that these were always attributable to spirits purchased elsewhere. The canteen itself is a somewhat rude wooden structure with a concrete floor and furnished with benches and tables. The bar proper is a plain compartment stretching HARROGATE 61 across one end of the building, and is only used for supply- ing the orders. Liquor is not consumed at the bar. There appears to be very little "off" sale, but what there is is carried on at a window in a separate part of the building, so that children or others fetching the beer have no contact with the bar. Women are not served in the canteen. The number of women and children at the colony is, however, small. No credit is given, nor are any games allowed in the canteen. A small mission-hall has been erected by the Committee, and is used on week-evenings as a reading- room and institute for the men, and in the mornings as a school for the children. A missionary lives at the settlement, and one-third of his salary is paid by the Committee. The reading-room is supplied with daily and weekly newspapers and magazines, and a bagatelle- board and other games are provided. During the winter a fortnightly concert is given. The balance-sheet of the canteen for the year ending March 25th, 1900, showed a gross profit of 826, and a net profit of 720. Last year (i.e. year ending March 25th, 1901) the gross profits were 886, and the net profits 799. The percentage of net profit on takings was, in the former year, 31 per cent., and in the latter 38 per cent. It should be noted, however, that nothing is charged against the canteen in respect of rent and lighting. The method of appropriating the profits is hardly satisfactory too small a proportion, in the judg- ment of the present writers, being devoted to recreative agencies and other counter-attractions to the canteen. Some of the appropriations (as, for example, the 200 devoted last year to the payment of compensation for injuries received by workmen employed on the works, and the 82 spent on pensions to old servants) also 62 SCARGILL WATERWORKS CANTEEN partake too much of the character of relief to the rate- payers. But this is the only serious criticism to be urged against what is in the main an admirable and useful experiment. No better proof of its general success could be given than the fact that, although the works have been in progress for nearly three years, the services of a police officer have not yet been required. The absence of competition is, of course, an important factor in its success. CHAPTER VII Public Management in Scotland SINCE 1895, when the Aberdeen proposals called public attention to the question, suggestions for the public management of the liquor traffic have received increasing support in Scotland, where several important experiments are already in active operation. The earliest of these owed its inception to Mr. Charles Carlow, the managing director of the Fife Coal Company, Limited, but it was left to Mr. John Boss, a well-known educationist in Dunfermline, who is solicitor to the Fife Coal Company, to develop and extend a tentative experiment by organising the present public-house societies in Fifeshire. THE HILL OF BEATH TAVERN, NEAR CROSS- GATES, FIFESHIRE Date established. Estimated Population of Village. June, 1896. 1,300. The first of the experiments referred to above was that established in 1896 at the Hill of Beath, a small colliery village in Fifeshire. The village was built and is owned by the Fife Coal Company, Limited, who rent the cottages to the miners in their employ. The miner's tenancy of a cottage ceases with his employment. The present public-house is situate just outside the village proper (i.e. outside the property of the Coal Company), and was erected by its original owner for the express business of a public-house, and he evidently chose the site in order to escape the control of the Fife Coal Company. He appears to have made unsuccessful appli- cation for a licence on two occasions, and the Fife Coal Company, believing that a licence was inevitable, decided to transform certain of their cottages into a small public- house, and themselves to apply for a licence. The first application (made in 1895), although supported by the Chief Constable, was refused by eleven votes to nine, and the matter remained in abeyance until the following year, when the Fife Coal Company again made application for a licence, a similar application being made by the owner of the private premises. Mr. Carlow, in support of the Fife Coal Company's application, stated that, in the event of the licence being granted, the Company would restrict themselves to a dividend of 4 per cent, on their outlay, the balance of profit being spent for the benefit of the village. In the result a licence was granted to the Company by eleven votes to eight. The owner of the rival house, evidently feeling that he no longer possessed any chance of obtaining a licence, subsequently sold his premises and all fittings to the Fife Coal Com- pany for 1,500, and the Company at once transferred the business from their own house in the centre of the village to the present premises. Until the end of last year (1900) the public-house was managed by a committee of five, three of whom were representatives of the Company, and the remaining two were elected by the miners them- selves. This committee seems to have been somewhat careless in its appointments and arrangements, and two successive managers proved unsatisfactory. In December, PUBLIC MANAGEMENT IN SCOTLAND 65 1900, however, the Hill of Beath Tavern Society, Limited, was formed, part of the capital of which was subscribed by the miners themselves, and the Fife Coal Company sold the public-house to this Society for 1,200. This sum included not only premises, fittings, stock, furniture, but also a balance of nearly 300 in the bank. The objects which the Society sets before itself in its printed rules are " to carry on, in or near the village of Hill of Beath, in the county of Fife, the businesses of innkeepers, publicans, alehouse-keepers, cafe 7 -, and restaurant-keepers, manufacturers of aerated waters and such other commodities as may be agreed upon by the members from time to time, and purveyors and caterers for public entertainments and amusements." The capital of the Society is raised in shares of 1 each. No member other than a registered society may hold more than 200 worth of shares. Each shareholder is allowed one vote in respect of his holding and irrespective of the total amount of his shares. Shares are entitled to a dividend not exceeding 5 per cent, per annum. The surplus profits, after making provision for (1) depreciation of assets, (2) a reserve fund for the redemption of capital, or other purposes, if the committee of management resolve to establish such, and (3) share dividends, are to be applied " to such purposes of public or quasi-public utility in the village of Hill of Beath or neighbourhood as the Society in general meeting may from time to time determine." The management of the Society is vested in a local committee composed of six members and the Secretary. The chairman of the present committee is the manager of the Fife Coal Company's works, and the rest of the committee are working men. The executive work is in the hands of the Secretary, who receives a small salary, and who, subject to the committee, orders and pays for 5 66 PUBLIC MANAGEMENT IN SCOTLAND all liquors. The promoters seem to have been somewhat unfortunate in the appointment of their first Secretary, but the present Secretary (Mr. W. Keir, who is an employe in the office of the Fife Coal Company) appears to be thoroughly in sympathy with temperance ideas and work, and although he only entered upon his duties in March of this year, he has already accomplished several valuable improvements. One of his earliest acts was to induce the committee to close the house at 9 p.m. instead of 10 p.m. as formerly. The manager of the public-house receives a fixed salary (2 per week), with free house, coal, and light. He is allowed the assistance of two helpers, a lad and a woman, both of whom are paid by the committee. The woman helper is not allowed to serve in the bar. By way of security for fidelity, the manager is required to take shares in the Society to the amount of 50, the share certificate, together with a signed transfer of the shares, being deposited with the Secretary. In his agreement with the Society the manager binds himself " to carry out all the instructions of the committee of management, to secure the good conduct of the business and the diminution of excessive drinking, and he binds himself strictly to conform to all the conditions on which the licence is held, and not to contravene these in any respect. He binds himself particularly not to supply liquors to intoxicated persons or to suffer persons in a state of intoxication to remain on the premises." He further binds himself " to refuse all perquisites what- soever, and to report to the committee the names of any merchants who may offer perquisites to him or induce- ments to deal with them." He has nothing to do with the ordering of the liquors; they are ordered by the Secretary, who invoices the liquors to him at selling prices. The present manager appears to be a thoroughly PUBLIC MANAGEMENT IN SCOTLAND 67 respectable man, and fully capable of carrying out any policy that the committee may decide upon. The public-house itself is a good building and superior to the ordinary public-houses in the district. It contains five or six plainly furnished rooms downstairs, all of them provided with seats, and a better furnished room upstairs for the accommodation of travellers, cyclists, etc. As already pointed out, it was originally erected as a private public-house, and was only sold to the Fife Coal Company when the man who built it failed to obtain a licence. The house is the only licensed house in the village ; but there are several public-houses in Crossgates, which is less than half a mile away, and it would seem to a stranger that they are sufficiently near to have rendered the house at the Hill of Beath unnecessary. There can be no doubt that the experiment is prejudiced in the eyes of temperance people in the district from the fact that its establishment meant an additional public-house ; but the responsibility for this is perhaps not strictly to be laid upon the Fife Coal Company, since there appears to be a general opinion that, if they had not taken action, a licence would have been granted to a private publican sooner or later. No games or other amusements are allowed in the house, nor is any credit given. There is no explicit rule in respect of sales to children, but the manager stated that he refuses to serve very young children, and suggested thirteen as the age below which he would not serve. No attempt is made at a " Black List," but it is said that such a list is unnecessary, owing to the fact that all the regular customers are in the employ of the Fife Coal Company, and a man could at once be dismissed if ha were guilty of disorder. No provision is made for clubs, nor is there any stable accommodation for 68 PUBLIC MANAGEMENT IN SCOTLAND carts, etc. The hours of sale are from 8 a.m. to 9 p.m. ; the house is thus closed an hour earlier than the public- houses in Crossgates, the change dating from the appoint- ment of the new Secretary in March last. This reform is said to be possible because the house is the only one in the Hill of Beath. Owing to the Forbes-Mackenzie Act, there is no sale on Sunday. A general public-house trade is done, spirits being sold as well as beer. The purchases of liquor show that about one gallon of spirits is sold to six gallons of beer. There is a fair "off" trade, the same prices being charged as for " on " sales. The trade in mineral waters is relatively small, and there is little demand for food. COUNTER-ATTRACTIONS TO THE PUBLIC-HOUSE These consist of (a) a reading-room and institute, and (6) a bowling-green, both of them separate from the public-house. The institute has 110 members, which, considering that the total population of the Hill of Beath is not more than 1,200 or 1,300, is a fair proportion. A yearly subscription of sixpence per member is charged. The Public-House Society has, however, in the course of erection a much larger and better building, which it proposes to open as a new institute to take the place of the present inferior building. The new building, which will be ready by the autumn, will cost fully 1,000, a sum which seems small considering the char- acter and quality of the building. The institute will consist of four good rooms, one of which will be devoted to the loan library, another will be fitted as a good reading-room, and a third will be supplied with two billiard-tables and also furnished with side-tables for other games, such as dominoes, draughts, etc. There PUBLIC MANAGEMENT IN SCOTLAND 69 will also be a temperance bar in the building. The building is certainly a good one, and, so far as it goes, will well carry out the idea of a counter-attraction to the public-house. The bowling-green is also to be strongly commended. It is situated in a central part of the village, and covers a moderately large piece of ground given by the Fife Coal Company. The sides and one end are stocked with shrubs and plants, and give a pleasing effect, while the green itself is about as perfect as a bowling-green can be. There is a well-built pavilion, where the bowls, etc., are kept. It is important to note that the counter-attractions are entirely separate from the public-house, where no games of any sort are carried on. In each case the counter- attraction is a good distance from the public-house. In this connection we may note a statement made by Mr. John Eoss, the chief promoter of the Fifeshire Public- House Societies, when discussing the subject with one of the present writers. Mr. Ross stated that he had originally proposed to associate the games and recreative features of the experiment with the public-house on the lines originally proposed by the Bishop of Chester, and now by Lord Grey, but that the miners themselves had repre- sented to him that such an arrangement would not do, and that the recreation must be entirely separate from the sale of liquor. STATEMENT OF RECEIPTS AND EXPENDITURE The following statements give particulars of the receipts and expenditure of the public-house for the last three years. The third statement, it will be noticed, is for nine months only, owing to the change from the old 70 PUBLIC MANAGEMENT IN SCOTLAND regime to the new, which began on January 1st, 1901. The figures thus relate in all cases to the earlier manage- ment of the house under the committee appointed by the Fife Coal Company. Year ending March 31st, 1899. EECEIPTS. Bar receipts Stock on hand, March 31st, 1899 s. d. 2,216 9 2 240 6 8 Total ... 2,456 15 10 EXPENSES. Stock on hand at end of previous year... Cost of liquors, etc. Depreciation Working expenses Balance profit *. d. 210 16 1,413 17 25 244 3 562 18 7* Total ... 2,456 15 10 Year ending March 31st, 1900. RECEIPTS. EXPENSES. Bar receipts Eent (i.e. for a cottage on their property which is sub-let) Stock on hand.March 31st, 1900 Total 2,344 600 219 13 9J 2,569 14 10J Stock on hand at end of previous year... Liquors purchased Working expenses Depreciation Balance profit Total t. d. 240 6 8 1,570 11 10 328 1 11 27 1 4 403 13 1J 2,569 14 For the nine months ending December 31st, 1900. RECEIPTS. EXPENSES. t. d. #. d. Bar receipts 2,156 16 8 Stock on hand at end Rent of cottage 6 of previous year. . . 219 13 it' Bank interest 3 4 10 Cost of liquors 1,328 11 4 Stock on hand, Dec Working expenses 435 4 2 ember 31st, 1900.. 265 18 Depreciation 21 18 9 Balance profit 426 8 r 'i Total ... 2,431 - 16 ~ 6 Total 2,431 16 6 The reduced profits in 1900 appear to be chiefly accounted for by the defalcations of the manager then employed, and we were informed that they are also PUBLIC MANAGEMENT IN SCOTLAND 71 partly explained by the fact that formerly spirits were bought at distillery strength and reduced to selling strength by the manager. Now they are bought at selling strength, and only the better qualities are purchased. APPROPRIATION OF PROFITS , The profits are devoted to various objects of public utility in the village, among which are the lighting of the village by electric light, the maintenance of the reading-room and institute, bowling-green, etc. The disbursements for these objects in 1898-9 and 1900 were as follows : Year ending March 31st, 1899. s. d. Electric lighting of village 242 8 6 Bowling-green 124 Football-club 23 Singing-class 570 394 15 6 Year ending March 31st, 1900. s. d. Electric lighting of village 23819 Bowling-green 357 3 5 Reading-room 94 9 9 Singing-class __*^=- 6 13 10 G97 6 For the nine months ending December 31st, 1900. s. d. Electric lighting of village 99 Oil Bowling-green 48 14 6 Reading-room 77 5 8 Football-club 12 16 Singing-class 6 19 6 244 16 7 72 PUBLIC MANAGEMENT IN SCOTLAND These objects were selected under the earlier regime, and the appropriation annually made for electric light is certain 1}" questionable. Inasmuch as the Fife Coal Company are the owners of the village and, apparently, the sole ratepayers, they in the natural order of things must have borne the expense of lighting the village, so that the allocation of profits to this purpose, made when they had the control of the public-house, actually relieves them of rates they would otherwise have had to pay. 1 In any case the allocation of profits to this purpose is mischievous, being a direct subsidy in relief of rates. The other appropriations are of a character that can be heartily approved, this being especially so in the case of the bowling-green and the reading-room, which are direct and efficient counter-attractions to the public-house. GENERAL RESULTS In estimating the general results of the Hill of Beath experiment it is necessary to distinguish between its present management and its past. Like all similar ex- periments, it has met with much criticism, some of it undoubtedly just, but a part of it unquestionably hasty and ill-founded. In the latter category must certainly be placed the suggestion made by outsiders, but dis- credited by temperance workers in the village itself, that the establishment of the house has been responsible for a decline in the activity of certain temperance societies, etc., 1 It is not of course suggested that the appropriation was deliberately designed to this end, but the fact of relief appears to be clear. It should, however, in fairness be noted that the Company, in disposing of the property to the new Society in December, 1900, appear to have acted with great generosity. PUBLIC MANAGEMENT IN SCOTLAND 73 in the village. That the establishment of the house has not led to a diminution of drunkenness is perhaps true, as also the allegation that, by increasing the facilities for obtaining liquor, the establishment of the house has actually increased the amount of liquor con- sumed in the village ; but the indisputable defects of the experiment as at present conducted appear to be of a negative rather than a positive character, and lie chiefly in the fact that there is little actual difference in methods of management between the Society's house and an ordinary well-conducted public-house. Certainly the restrictions aimed at and imposed do not appear to be as great as a somewhat exceptional opportunity would permit. Probably the objection which more than any other has influenced, criticism against the experiment is the fact that it has introduced a public-house where no public-house previously existed, and where the neigh- bouring facilities appear to have been sufficient to meet any legitimate demand. Against this it is urged that in taking the action they did the Fife Coal Company did no more than anticipate events by keeping out a private licensee, and that from this point of view the question really resolves itself into one of choice between an ordinary public-house conducted for private gain and one from which the element of private profit has been eliminated. Without committing themselves to a definite pronouncement upon the question of fact here raised, but admitting its probability, the present writers feel com- pelled to acknowledge that a consideration of all the local circumstances (especially the close proximity of Crossgates, where licensed premises exist) induces in their minds a doubt of the wisdom and expediency of this particular experiment, 74 PUBLIC MANAGEMENT IN SCOTLAND THE KELTY PUBLIC-HOUSE SOCIETY, LIMITED Date started. Population of Village. January 1st, 1900. 4,700. The rules and constitution of the Kelty Society are so closely similar to those of the Hill of Beath Society that detailed description is unnecessary. The chief differences are : (1) that the share capital is raised in shares of five shillings each instead of 1 , and (2) that the committee of management consists of eight instead of six members. Kelty is another mining village belonging to the Fife Coal Company. Its population at the recent census was nearly 4,700. It is the centre of a very prosperous mining district, and work has been plentiful and wages high for some years past. A proof of this prosperity is seen in the fact that at one pit alone the daily output is from 1,600 to 1,800 tons of coal. The miners work eleven days a fortnight, and their wages range from 6s. to 7s. ^d. per day, while mere lads can earn from 2s. Qd. to 4s. per day. It thus happens that the family income is, as a rule, high. The proposal to establish a " Gothenburg " public-house originated with Mr. John Ross, of Dunfermline. Mr. Ross paid a visit to Kelty in the autumn of 1899, and lectured on the Gothenburg system. Shortly afterwards a meeting was summoned to consider a definite proposal, which Mr. Ross then submitted, to establish a " Gothen- burg" public-house in Kelty. The proposal aroused considerable local feeling, and encountered much opposi- tion from religious and temperance people in Kelty, with the result that at the meeting the proceedings were somewhat excited. Mr. Ross's resolution failed to find a seconder, while a resolution against the establishment of the house was carried. In the end it was decided that a I t PUBLIC MANAGEMENT IN SCOTLAND 75 plebiscite should be taken on the question, and a com- mittee was appointed for the purpose. The promoters of the new public-house were asked to co-operate by ap- pointing to the committee a number of representatives equal to those appointed by the public meeting. This they declined to do, but the committee, nevertheless, included some who were in favour of the scheme who had been nominated at the public meeting. The question put to the voters was : " Are you opposed to the granting of a licence to the Kelty Public-House Company ? " The result of the voting was as follows : Opposed to licence Householders and resident voters l ... 318 Non- voters, men ... ... ... 124 women ... ... ... 296 Total 738 In favour of licence Householders and resident voters ... 153 Non- voters, men ... ... ... 117 women ... ... ... Ill Total ... ',-.;' ,.. 381 Majority opposed to licence ... ... 357 About 1,200 voting-cards were issued. It seems unfortunate, in face of such a pronouncement; that the proposal was persisted in ; at the same time it is highly probable that an additional licence would have 1 This heading is said to cover resident parliamentary voters and such other male householders as had not qualified for the parliamentary vote. 76 PUBLIC MANAGEMENT IN SCOTLAND been granted to Kelty in any case, so that the respon- sibility of thrusting an additional licence upon the place is not strictly to be charged against the promoters of the scheme. Practically everyone agrees (and the chief officer of the local police entirely endorsed this view in conversation with one of the present writers) that an additional licence had become almost inevitable owing to the pressure of trade at the other houses and the growing population. The new public-house stands in an exceedingly good position, and is a substantial stone building much superior to the other public-houses in the village. It was built specially for its present purpose by the Kelty Public- House Society at a cost (including furniture and fittings) of 3,500. It is rated at 180 per annum. It has a large bar, with accommodation for a crowd of customers ; also a small separate jug compartment, and four rooms off the bar. Upstairs there is a large room, 30 ft. by 20 ft., furnished with seventy chairs and used for Cricket-club dinners and teas, dinners of the local Burns Society, smoking-concerts, etc. There is also a restaurant room on the ground floor with a separate entrance from the street. The house was visited on Thursday and Friday, June 13th and 14th, 1901. The latter day was the fortnightly pay- day, and we were told that the house would be well patronised. We visited the house at 9.40 p.m. The public bar was tolerably full of miners, and two men were also drinking in the private jug department. Trade was evidently brisk. The manager and two other men were serving in the bar, and the place was full of the loud voices usual in a busy public-house. The manager stated that they had been exceedingly busy all the evening. In addition to the general bar, the four rooms off the bar were also full, the orders from these rooms being taken by two young women who were busily engaged carrying liquor between the bar and the rooms. At ordinary times the bar is served by the manager and his assistant, but when trade is busy the women-helpers also serve. They occasionally serve when trade is slack if the manager and his assistant happen to be in another part of the house when customers come in. The manager much dislikes the side-rooms off the bar, since he finds it impossible to keep them under his own personal supervision and control. He mentioned that he had " rushed out of the bar to get a flying look at them at least twenty times" that evening. The manager is a fairly young man, smart and respect- able, who has had previous experience of the public-house trade, and he evidently does his best to keep the place respectable. There are no special restrictions governing sale. He will not knowingly serve liquor to any man who shows signs of intoxication, and although there is no " Black List" or anything approaching to one, he is able in a broad and general way, from his knowledge of the place, to sort out his customers. 1 He mentioned, for example, that in some cases he would probably refuse to serve a man who he knew was addicted to excess with more than two pints, whereas he might serve other men with four pints. In this respect observation would lead us to say that the house is conducted much as an ordinary public-house is conducted where there is a good manager. The house is managed by a committee of the miners, which meets every Monday. They have the assistance of a Secretary, who receives a salary of 16 a year. The 1 Speaking at Dunfermline on March 21st, 1901, Mr. John Ross stated that " tricks had been played by putting men in the house who were already under the influence of liquor, in order that blame might be attached to it ; but the greatest care was exercised, and the manager was strongly backed up by the committee." 78 PUBLIC MANAGEMENT IN SCOTLAND latter is a teetotaler and thoroughly in sympathy with temperance work, and the opponents of the scheme speak in the highest terms of him. He orders all the liquors, and they are debited to the manager at selling prices. The usual hours of sale are observed, and there are no special restrictions concerning the sale of liquor to children. No credit is, however, given. A general public- house trade is done, but beer-sales preponderate. The manager stated that, speaking generally, they would sell about one hogshead of spirits and thirty-two barrels of draught beer a month, besides bottled " Bass " ; also about two hundred and forty dozen of " minerals " a month. (He explained that the mineral waters were being largely used in conjunction with beer for what is known as "shandy gaff"). He further stated that there was a fair "off" trade, but that the " off " sales would not amount to more than a tenth of the whole. In accordance with local practice, beer is sold a halfpenny per pint cheaper for " off " consumption. The manager is paid a fixed salary of 2 per week, with house, coal, and light. He receives no commission upon sales, even in the case of mineral waters, but it was stated that it is intended to let him have the profits on food in the restaurant as soon as the restaurant gets properly established. This restaurant is a good room with a separate entrance. It has, however, only been running a short time (being opened at the end of 1900), and at first involved a loss, but it is now paying its way. It is not likely ever to do a great business, inasmuch as it must depend upon cyclists and other visitors, the miners themselves having their meals at home. The manager at Kelty, as also the manager at the Hill of Beath, confirmed what had been stated elsewhere, that PUBLIC MANAGEMENT IN SCOTLAND 79 it is not really possible for a manager of a public-house to do much in pushing the sale of non-intoxicants. If it were possible, the high profits upon mineral waters would probably induce private publicans to do their utmost to sell them. FINANCIAL RESULTS The " takings " of the house average at the present time from 60 to 70 per week. They are, as elsewhere, heaviest at the end of the week, and are specially affected by the fortnightly pay-day. The following particulars give the takings for two recent consecutive weeks : 1901. s. d. Monday, May 20th . ;<. . . . 11 16 Tuesday, May 21st 755 Wednesday, May 22nd 780 Thursday, May 23rd 6 16 Friday, May 24th 588 Saturday, May 25th 17 8 Total .56 2 1 1901. s. d. Monday, May 27th . . . . . 6 15 Tuesday, May 28th . . \,^--^-^f=- . 4 16 1 Wednesday, May 29th 580 Thursday, May 30th 5 11 6 Friday, May 31st (fortnightly pay-day) . . 21 10 Saturday, June 1st 24 14 2 Total . 68 14 9 The full effect of pay-day is further shown in the particulars of another week to which the manager called our attention So PUBLIC MANAGEMENT IN SCOTLAND 1900. s. d. Monday, November 26th 6 10 Tuesday, November 27th 564 Wednesday, November 28th . . . .510 Thursday, November 29th . . . .557 Friday, November 30th (fortnightly pay-day) . 20 18 Saturday, December 1st 41 2 Total . 84 211 Full particulars of the first year's working results are given in the following statement, which is copied from the balance sheet for the year ending December 31st, 1900: Profit and Loss Account for Year ending December 31st, 1900. *. d To interest on loans, licence duties, rates, taxes, and insurance 164 8 5 ,, wages of manager and ser- vants, salaries of secretary and treasurer, and fees to committee of management. . 268 1 4 ,, premiums on guarantee bonds of officials, law expenses, auditor's fees, stocktaking expenses, etc. . . 37 19 6 , bottles and tumblers . . . . 17 17 9 ,, sundries, including books, printing and stationery, newspapers and miscel- laneous expenses . . .. ISO 12 8 . railway carriage* and cart- ages 22 10 6 coal and light 34 5 ,, depreciation on fittings, furnishings, and utensils, 25 per cent, on 468 8. Od. 117 2 ,, proportion of formation ex- penses written otf. 20 p*r cent, on 180 2. 22. balance being profit carried to balanc* sheet . . 1,415 18 11 *. d. . By drawings Bar .3,164 S 11 Restaurant .. .. 627 3,170 11 6 Less purchases 2,592 1 7 Less stock on hand 325 5 8 2,266 15 11 Discount .Sales of rules Miscellaneous receipts 903 15 7 497 8 10 18 6 14 1 1,415 18 11 PUBLIC MANAGEMENT IN SCOTLAND 81 Balance Sheet as at December 31st, 1900. LIABILITIES. & s. d. I. Share capital 3,473 shares of 5s. each, fully paid . . 868 5 II. Trade debts . . 297 4 9 Less discount 55 9 8 241 15 1 III. Interest and feu-duty out- standing 59 12 6 IV. Sundry accounts .. . . 22 17 1 V. Loan from John Ross, Esq. 240 10 9 VI. Balance on profit and loss account 602 1 9 2,C35 2 2 ASSETS. t. d. I. Outlay on premises owned by the Society . . . . 2,914 11 9 Less loan by Dunfermline Building Company, Ltd. 2,000 914 11 9 II. Ptoek-in-trade at cost . . 825 5 8 III. Fittirnjs, furnishing and utensils . 468 8 Less amount written off. . 117 2 IV. Balance due by Royal Bank of Scotland, Kelty, on account current V. Cash in hands of manager VI. Formation ex- penses ..130 2 2 Less amount written off. . 26 5 351 6 209 17 40 104 1 9 2,035 2 2 It will be seen that the net profit on the year's trading was 602. APPROPRIATION OF PROFITS Only a portion of the profits has so far been appropriated. The appropriations already made include a grant of 50 to the local library, and the maintenance of a certificated district nurse. The district nurse is a great success, and is very popular in the village. Her maintenance will mean an expenditure of at least 100 per annum. The general rule of the Society governing the appropriation of profits is the same as that adopted by the Hill of Beath Society. COUNTER-ATTRACTIONS TO THE PUBLIC-HOUSE As the experiment is only eighteen months old, and has only completed one financial year, not much has been done so far in the way of direct counter-attractions to the 6 82 PUBLIC MANAGEMENT IN SCOTLAND public-house. As already explained, out of the last year's profits a grant of 50 was made to the local library. This institution is an excellent building, containing a loan library and reading-room, and a billiard-room with one table, in addition to accommodation for the caretaker and his family. The members pay a subscription of 2s. 6d. a year, and the building seems to be fairly well patronised. Although excellent in its way, it is quite inadequate to meet the recreative needs of the village, and especially inadequate as a counter-attraction to six public-houses and a drink-club. The Public-house Society, however, proposes shortly to lay down a bowling-green away from the public- house at a cost of about 500, and there is also some vague talk of a people's park, but there is little likelihood that the latter will be established just yet. It should be mentioned in this connection that some at least of the other public- houses in Kelty provide games for their customers. GENERAL RESULTS In estimating the general results of the experiment in Kelty it is but just to make full acknowledgment of what the present writers believe to be the absolute sincerity and disinterestedness of aim which led to the establish- ment of the scheme. Mr. John Ross, the actual promoter of the Society, is a well-known and influential citizen, whose devotion to the cause of education and other public questions in Fifeshire has won him widespread respect ; and it is unquestionable that in promoting the Fifeshire public-house societies he has been actuated by a sincere desire to make a practical contribution to the solution of a difficult and dangerous problem. He himself regards the local public-house societies as little more than experiments. " They are," he says, " picking their way," PUBLIC MANAGEMENT IN SCOTLAND 83 and he urges that they have been in existence for too short a time to show decisive results. On the other hand, it is clear that in Kelty local feeling is strongly opposed to the experiment, and many com- plaints are made of increased drunkenness, and of persons who did not formerly frequent the public-houses of the village, but who now are said to visit the " Gothenburg " house owing to its supposed greater respectability. It is not clear that there is much in this last charge, although one or two instances were given, nor do we think that it is quite fair to charge the alleged increase of drunkenness in Kelty against the new public-house. The fact seems to be accepted that an increase of drunkenness has taken place during the last year or so, but this would appear to be due to (1) the very prosperous times which the miners have been having ; (2) the growth of the population ; and (3) the establishment of a club which is really no more than a drinking-saloon without the restrictions of an ordinary public-house. The chief officer of the local police was especially emphatic in his condemnation of this club, to which he evidently attributes the increase of drunkenness. He went so far as to say that the Sunday closing of the public-houses in Kelty is being rapidly undone by the heavy sales in the club on Sunday, and he gave illustrations of what he had himself seen in support of this. The club was opened about a year ago, and its establishment seems to have been the familiar case of a man thwarting the licensing justices who had refused a licence. In any case, its evil influence must be kept very prominently in view when considering the alleged increase of drunkenness in Kelty. The police officer, in speaking of the " Gothenburg " public-house, stated that in his experience it was well conducted, and he had no complaints to make against it. He seemed to 84 PUBLIC MANAGEMENT IN SCOTLAND think (in common with many others) that its chief virtue was that it diverted the profits of some part at least of the local liquor traffic to public purposes. On the whole, his testimony was favourable to, rather than against, the " Gothenburg " house. Mr. Terris, J.P., chairman of the Kelty School Board, who has always been a supporter of the experiment, evinced no great enthusiasm for it in discussing the matter with one of the present writers. His great point was that in a choice between an ordinary public-house and a Company house it was better to have the Company house. He practically admitted that the chief value of the experiment was that the profits were diverted to useful ends. The opponents of the scheme (some of whom are very hostile) chiefly take the ground that the way the profits (which were 602 for the first year) are likely to be appropriated may injure the cause of temperance by giving the people a direct monetary interest in the con- tinuance of the traffic. Some of them also feel that the establishment of the house has increased drinking and drunkenness ; but the chief objection is clearly the appre- hension of an appeal to the cupidity of the village. In some respects the most weighty opinion was given by a resident doctor a comparatively young man and a regular Church worker. He was, on the whole, distinctly opposed to the experiment, and especially felt the difficulty likely to arise out of the villagers' pecuniary interest in the scheme. It was, however, generally acknowledged that if a scheme of local option could be devised whereby the whole of the public-house traffic in Kelty could be brought under effective and stringent public management, and arrangements made under which the locality would derive no profit from the traffic save and except a fixed grcmt for PUBLIC MANAGEMENT IN SCOTLAND 85 direct and efficient counter-attractions to the public-houses, the objections now felt would largely disappear. The present writers are of opinion that it is practically impossible to decide whether the house has or has not increased drinking in Kelty. Upon the whole they would be inclined to suggest that its effect has not been great either way. That it has not diminished drinking and drunkenness may be accepted as certain. It could not well be expected to do this, in view of the fact th?t it has increased the facilities for obtaining drink ; and it is further possible that to some slight extent it has increased drinking among those to whom its respectability is said to appeal. 1 It is clear, however, that with the competition which the house encounters it is hopeless to look for very satisfactory results. In addition to the " Gothenburg " house there are five other public-houses in Kelty (one of them immediately opposite), as well as two grocers' licences and a drink-club. The manager himself is fully alive to the injurious effect of this competition upon his own efforts. " My principal bother here," as he recently informed the special commissioner of the Alliance News, 2 " is drunken people coming from other places. This place is doing no good. One of its kind in a place is no use. If we had all the houses in the place under our manage- ment we could do some good j but what would be the use 1 That this is not the result of the Gothenburg system, rightly applied, is strikingly shown by the declaration of Mr. Lars O. Jensen, Right Worthy Grand Templar of Norway, at the Inter- national Alcoholic Congress at The Hague, in 1893. Mr. Jensen said : " When the Gothenburg system was introduced, it was feared that this system would throw an air of respectability about the drinking-customs. This has not been so. On the contrary, it is regarded as a far greater shame to enter a Samlag shop than to enter an ordinary drink-shop or restaurant." ' Alliance News, June 13th, 1901. 86 PUBLIC MANAGEMENT IN SCOTLAND of us closing earlier, or anything like that, when our customers would just go across the way to the public- house opposite ? " In conversation with the present writers he was equally emphatic. Summed up briefly, the defects of the Kelty experiment do not indicate any inherent defect in the principle of public management, rightly applied and directed, but rather the urgent necessity of legislation which shall allow localities to acquire a complete monopoly of the local traffic under conditions that will give free play both to restrictive and constructive agencies, and prevent the traffic being conducted for local pecuniary gain. At present there is a distinct danger that localities may drift into experiments before the necessary safeguards are properly understood. THE COWDENBEATH AND DUNFERMLINE PUBLIC-HOUSE SOCIETIES, LIMITED Similar societies to those at Hill of Beath and Kelty have recently been formed at Cowdenbeath and Dunferm- line. In neither case, however, has an additional licence been applied for. At Cowdenbeath an existing public- house was purchased for 7,000 (4,000 of which was said to represent the value of the licence alone) ; while at Dunfermline a smaller house was provisionally acquired for 3,600. In the latter case the sale was conditional upon a transfer of the licence being obtained. The transfer was, however, subsequently refused by a majority of the licensing justices, with the result that the proposed sale was not completed. At Cowdenbeath the Society has already begun operations, but the experiment has been working for too short a time to justify comment here. CHAPTER VIII Public Management in Ireland extent to which the movement in favour of the r*- public management of the liquor traffic is rapidly spreading is further illustrated by the recent formation of the Ulster Public-Houses Trust Company, Limited, which began operations at Carnmoney, near Belfast, in May, 1901. The promoters have but one inn at present, but they hope shortly to extend their operations and acquire other public-houses. The principles of management are practically the same as those adopted by the Bishop of Chester's Association. The inns are to be conducted as " refreshment-houses and not ' drinking bars ' ; food and non-intoxicants will be supplied as readily as intoxicants and during the same hours." The surplus profits, after allowing a sufficient sum for depreciation, reserve, and interest not exceeding 5 per cent, on invested capital, " will be administered by carefully selected trustees for the benefit of the community." "THE CROWN AND SHAMROCK," CARNMONEY, NEAR BELFAST Date opened. Local Population. May 31st, 1901. 1,500. The Company began operations by acquiring an inn in the parish of Carnmoney, about a mile beyond 87 88 PUBLIC MANAGEMENT IN IRELAND Glengormley, and seven miles north of Belfast. The inn, which is now named the Crown and Shamrock, had a bad reputation, and, according to the Belfast News-Letter, was formerly " the scene of frequent disturbances and irregularities of various kinds, and gave the police of the district continual trouble. The magistrates had, indeed, threatened to withdraw the licence, but the Company stepped in and saved the situation, and the house has ntered on a new chapter in its history, which promises ro be more satisfactory than its past career." Considerable alterations were made in the premises in order to adapt them to the new requirements. "The areas in front of the house have been enclosed with neat fences of ash and oak, and provided with seats, and on the west side they terminate with a verandah of similar construction, leading to a glass door, by which entrance is gained to the principal room of the inn. This is a long, low-ceilinged apartment, containing a bay window of the old English type, with a cosy seat running round it, and not far from the window is an antique chimney- corner, such as may still be seen in old farmhouses and cottages in the counties of Antrim and Down. ... On each side of the fireplace is a 'seat for one,' and it is easy to imagine that on cold and damp days these cosy ingle-nook seats will be favourites with frequenters of the inn. The room is furnished with beech tables and rush- bottomed seats, and it is altogether as snug an apartment as one could desire. Adjoining it is the bar-room, which has undergone a complete transformation. The bar has been entirely remodelled, and arranged more in accord- ance with the requirements of such a hostelry, no undue prominence being given to intoxicating liquors." 1 Persons frequenting the inn are not to be subjected to 1 Belfast Nnvs-Letter, June 1st, 1901. PUBLIC MANAGEMENT IN IRELAND 89 any rules or restrictions " other than those prescribed by law or sanctioned by the licensing authorities, but every- thing possible will be done by influence and example to prevent misconduct or the use of objectionable language, and to maintain the high standard of the establishment." There is no hard and fast rule about the amount of liquor to be supplied to a customer, but "the manager is under strict orders to carry out the spirit as well as the letter of the law, and refuse more to anyone who, according to his judgment, has had enough. And the judgment of the manager," it is added, " is not liable to the bias which might ensue from his personal loss, for he gets a fixed salary with a percentage or bonus on non-intoxicants, and has no interest in the sale of spirituous liquors at all." l The precise method of appropriating the surplus profits has not yet been fixed, but the promoters, among whom are several local clergymen, " hope to be in a position to give generous assistance to many deserving projects which will benefit the large parish of Carnmoney for instance, a coal-fund, a poor-fund, or a fund for the support of a nurse for the sick poor in the district. This, however, is a matter for future consideration." It is certainly to be hoped that when this " future consideration " is given, these suggested appropriations will be modified, for in giving the inhabitants of the parish so direct an interest in the sales, they appear to be hardly less objectionable than the direct relief of rates sanctioned in Gothenburg. The customers are drawn from three distinct classes; namely, (1) neighbouring mill-hands, (2) small farmers on their way to and from market, and (3) cyclists. At present the house is said to do most with the third class. 1 Rev. B. C. Hayes, in an article in The Visitw, the organ of the Church of Ireland Temperance Society, July, 1901. 90 PUBLIC MANAGEMENT IN IRELAND The inn, which was opened on May 31st, 1901, has been working for too short a time to show decisive results, " but already," according to the testimony of the Kev. E. C. Hayes, one of the promoters of the experiment, " there is much to interest and very much to hope. Of course many are exceedingly puzzled as to what it all means. Difficulties daily arise for solution. And even after years of working it is not to be expected that one reformed house among scores of the normal type will have any startling effect upon the country-side. But a beginning must be made in every movement, and if this little social experiment succeeds, its originators are not without ambition for a wider activity. It was with that view they formed themselves into 'The Ulster Public- Houses Trust Company, Limited.' By increasing their capital according to need, they hope, as occasion affords, to buy up other houses or even apply for new licences when they are becoming necessary, and run them on the Oarnmoney model." 1 1 Article in The Visitor, July, 1901. CHAPTER IX Other Isolated Experiments IN addition to the foregoing instances, several isolated attempts have been made in various parts of the country to eliminate private profit from the local liquor traffic. Among these may be mentioned the inn at Wantage, Berkshire; the Spencer Arms Inn at Chapel Bampton, Northamptonshire 1 ; the New Inn at Childs- wickham, Broadway, Gloucestershire; the Spital Beck Inn, Yorkshire ; the Plymouth Arms at St. Fagan's, Eedditch ; and the late Sir E. Lechmere's Inn at Hanley Castle, Worcestershire. WANTAGE, BERKSHIRE Referring to the first of these, the late Lord Wantage said 2 : " The public-house here continues to succeed perfectly. It has now been working about ten years. The manager receives a fixed salary of 100 a year. He has no profits on the sale of intoxicants. One room is reserved for those who call for tea, coffee, etc. It is an open house, 1 The Harleston Inn, Northamptonshire, is not here included, since it is carried on entirely in the interests of the local Co- operative Society. * Quoted by the Rev. Osbert Mordaunt in his pamphlet entitled Reformed Public-Houses, published in 1898. 91 92 OTHER ISOLATED EXPERIMENTS and beer is obtained according to the wishes of those who are served. The fixed rent to me as owner is 20 a year. The profits, after all expenses, average about 150 a year, and are distributed according to the decision of a committee, of which I and my agent are the chief members. The money has been used in paying all expenses of management of a Friendly Society, also in putting up lamps in the two parishes, and providing all expenses in the maintenance of them, lighting, etc. The facilities of having the best room in the house specially reserved for those who do not take beer or spirits is decidedly advantageous. The usual newspapers are provided free." Brief particulars of the remaining houses are given by the Rev. Osbert Mordaunt in his pamphlet on Reformed Public-Houses published in 1898, and they need not be further referred to here. The houses are all small. CHAPTEE X PubliC'House Trust Companies AMONG the Public-house Trust proposals which are before the country none have claimed so much attention as those which are associated with the name of Earl Grey. 1 In a letter dated September 6th, 1900, addressed to the licensing magistrates in the various Petty Sessional Divisions of Northumberland, Earl Grey thus describes the circumstance which forced on his attention the need of a drastic change in the present method of allotting licences : " Last year, it having been represented to me that it would be a convenience to the people of Broomhill if an additional public-house could be provided, I applied to the licensing authorities, in my capacity as chief landowner in the district, for the necessary licence. The magistrates, having decided that the requirements of the population called for an additional public-house, granted me the licence. I immediately discovered that the State, in conferring upon me a monopoly licence, had also granted me a commercial asset of enormous value. I was informed that if I would consent to sell my licence I could, without spending a single sixpence, obtain nearly 1 For a list of the Trust Companies formed, or about to be formed, in connection with Lord Grey's movement, see p. 1 (footnote). 94 PUBLIC-HOUSE TRUST COMPANIES Now, it appears to me that large monopoly values arising out of the possession of a public licence conferred upon a private individual by the State ought to belong, not to any private individual, but to the community. I am, accordingly, making arrangements by which the surplus profits, after a dividend of 10 per cent, has been paid per annum (5 per cent, for interest, and 5 per cent, for redemption of capital), shall be expended by the trustees, to be appointed, in such a manner as they may direct, for the benefit of the inhabitants of Broomhill." He further asks that the licensing authorities, when they have decided to create new licences, shall give the refusal of them to applicants who will undertake to run them on Scandinavian principles, not for private profit, but in the interest of the community affected. At first it was intended that such licences should be worked by the People's Refreshment-House Association, of which the Bishop of Chester is the chairman ; but in a letter to The Times, dated December 12th, 1900, Earl Grey announced that : " It is intended to give practical effect to the plan of temperance reform outlined by the Bishop of Chester in his letter which appeared in the press of December 3rd, by the incorporation of Public-house Trust Companies for London and the provinces." 1 In an interview at a later date with a representative of the London Argus (March 22nd, 1901), Lord Grey said : " Up till that time I had not thought out the question, but seeing that by merely obtaining this licence a sum of, say, 10,000 had been put into my pocket, it struck me that such a state of affairs was not in the public interest. . . . There