PUBLIC CONTROL OF THE LIQUOR TRAFFIC. PUBLIC CONTROL OF THE LIQUOR TRAFFIC: Being a Review of the Scandinavian Experiments in the light of recent experience. BY JOSEPH ROWNTREE AND ARTHUR SHERWELL, JOINT AUTHORS OF *' THE TEMPERANCE PROBLEM AND SOCIAL REFORM," BRITISH GOTHENBURG EXPERIMENTS AND PUBLIC-HOUSE TRUSTS, "state PROHIBITION AND LOCAL OPTION," ETC. SECOND THOUSAND. LONDON : GRANT RICHARDS. 1903- Delittle, Fen-jiick & Co., Vork C3 z an AUTHORS' NOTE. THE writers express their sincere thanks to numerous correspondents in this countr>% on the Continent, and in the United States, who have helped them with information and criticisms. £2 They wish especially to acknowledge «^ the constant assistance which they have cc received from Dr. Sigfrid Wieselgren, g of Stockholm, Mr, Ernst Andree, of ^ Gothenburg, Mr. H. E. Berner, of Christiania, and Mr. Jorgen Irgens, of ^ Bergen, in furnishing much valuable "Tj information which only local knowledge Ui ° could supply. For the English equivalents of the foreign moneys and measures named in this book the reader is referred to the Appendix. 40 0:i',^/f O Preface, THE primary object of this book is to examine certain objections recently urged against the pubHc management of the Hquor traffic, which are based upon an alleged failure of the system of company control in Gothenburg and throughout Sweden and Norway generally. The questions involved are twofold : (i) Has the system failed in any important particular ? (2) If so, has such failure been due to inherent defects in the Company System or to its imperfect application ? While including in our review other adverse criticisms, it will be convenient to follow in the main a work recently published by Mr. John Walker, M.A., entitled The Commonwealth as Publican, which appears to viii. Pr^EFACE. embody almost every charge which has recently been brought against the working of the Gothenburg System. In order, however, that the reader may judge of the value that should be attached to Mr. Walker's statements and opinions when unsupported by evidence, we shall in the first place give a few illustrations to show how slight is his acquaintance with the subject on which he writes. On page lo, Mr. Walker says : "In Norway, the samlags now generally have a monopoly of the sale of beer as well as of branvin." As a matter of fact it is doubtful whether there is a single samlag which has such a monopoly. Mr. Jorgen Irgens, of Bergen, who is intimately acquainted with the history and details of the samlag system in Norway, writing on the 28th May, 1902, says : " I have to state that none of our samlags has monopoly to sell beer or wine. Perhaps there may be one or another spot or village where such is the case, although I do PREFACE. ix. not believe it, but if so, such a monopoly is not connected with the sale of liquor " [i.e., spirits]. Again, Mr. Walker (p. 43), in seeking to meet our contention that the Company- System secures a divorce between politics and the drink traffic, attempts to show that in Scandinavia there has been no alliance between the drink traffic and politics, and consequently there can have been no divorce. This question will be fully discussed later on. At present we only note that in the elaboration of this argument Mr. Walker states that the electors in Norway are a limited class, and take only a small interest in politics. We will give Mr. Walker's words m extcnso. The italics are ours : — "In 1876, when the 'Samlag' first came into being in Norway, the electors numbered 140,000. So small was the interest in politics, that at the election of that year only 84,000 of the electorate applied to be put on the register, and 37,000 actually voted. That Parliament was therefore elected by the votes of about two per cent, of the population. At present [1902] the X. PREFACE. franchise is restricted to la7ided proprietors, real estate owners, and officials, among which classes the liqnor traffic has ever had little, if any, influenced Now what are the facts ? It was only necessary for Mr. Walker to turn to The, Statesman's Year Book for igo2 (p. 1098), and there he would have found that Norway is a country of practically universal suffrage : — " Every Norwegian citizen of twenty-five years of age (provided that he resides and has resided for five years in the country) is entitled to elect, unless he is disqualified from a special cause — for instance, actual receiving of parish relief. . . At the election in 1900, the number of electors was 440,174, or 1973 per cent.-^ of total population, while 238,617 votes, or 54'2i per cent, of the whole number, were recorded." But perhaps in the whole volume there is nothing more extraordinary than Mr. Walker's off-hand method of dealing with a question 1 In England and Wales, in igoi, the proportion of electors to the total population was only i6 6. PREFACE. XI. of the first importance — that of the national consumption of spirits. All students of the liquor legislation of Sweden and Norway know that a main claim put forward on its behalf has been that in both countries it has brought about a remark- able reduction in the consumption of spirits. The statistics bearing upon this question have been studied and discussed in print by able men in Sweden and Norway. In both countries they are the subject of carefully prepared and unchallenged official returns. Trained experts sent out by the Government of Washington, and by the Legislature of Massachusetts, have examined these figures ; the English Board of Trade, in their valuable tables showing the consumption of spirits, wine and beer in foreign countries, have adopted them ; and it is a perfectly gratuitous assumption to suppose that they are seriously incorrect ; yet this point, fundamental to the discussion of the success or otherwise of the Scandinavian liquor legislation, is airily xii. PREFACE. disposed of by Mr. Walker in the following lines : — • " In America, where illicit distillation is rampant, and railway companies do a regular trade in assisting evasion, the statistics are mere guess-work ; and in sparsely peopled countries, where free distillation has only ceased for fifty years, like Norway and Sweden, we fear this is also largely the case. For instance, free distillation was until last century general in our own Highlands, and it is a matter of common knowledge that for decades afterwards many more hogsheads of whisky found their way from the hills than the excise officer took toll of. " It is, therefore, scarcely fair to compare the returns of alcohol consumed in Scandinavia with those in Britain. In Norway, particularly, the totals are very much less, and it is almost certain that these totals are not compiled with the same exactitude as our own." ^ In The Temperance Problem and Social Reform the official figures of the consumption of spirits for both Sweden and Norway are given. In Sweden the actual (as distinguished from the estimated) figures date from 1856, and in Norway from 1849. They thus go back in the one country for forty-seven and in the ip. 23. PREFACE. xiii. other for fifty-four years. Prior to these dates the statistics of national consumption were "estimated" and were of little value, but Mr. Walker's words show that he refers to the statistics which follow the era of free distillation, i.e., to the period to which the " actual " figures apply. To place this important question of the consumption of spirits in Sweden and Norway beyond all doubt or challenge, we submitted the quotation from Mr. Walker's book to the Statistical Departments at Stockholm and Christiania. The replies received from the Chiefs of these two Departments are as follows : — " Kongl. Finansdepartementets, " Kontroll — Och Justeringsbyra. "As to the contents of your letter of July 31st last, I am glad to be able to bring you the information that the charge, mentioned in the work entitled T/ie Commonwealth as Publicayi, page 23, viz., that in Sweden great quantities of liquor are unlawfully produced, is absolutely false. Contrary to the assertion, it is a fact that illicit distillation of spirits, at least during the last ten years, has occurred only exceptionally and at present very seldom, and when it has happened, it has been on a scale so trifling xiv. PREFACE. that it has no influence at all on the correctness of the figures of the yearly consumption of liquors in Sweden, as given in our official reports. These figures agree with those on the slip that accompanied your letter.^ " Stockholm, 19th August, 1902. (Signed) " K. LINDEBERG, " Chief of the Bureau." " Det statistiske Centralbureau, " Kristiania, " 4 //i Sep te?)t ber, 1 90 2 . " In reply to your letters of 31st July and 25th August, I am glad to be able to say about the same as to unlawful production of liquor in Norway as Mr. lyindeberg writes for Sweden. "According to returns from the police authorities in the country districts to a departmental Committee for revision of the alcohol legislation some years ago, there was during the years 1892 — 96, in forty-seven of fifty-three districts, not ascertained any case of unlawful production of liquor at all, in five districts one or very few cases, and in one district sixteen cases (during five 3^ears). " As to the figures of national consumption of liquor, I refer to pages 181 — -183 of the enclosed number of the Meddelelser fra Det statistiske Ceyiiralbureau. " Yours truly, (Signed) "A. N. KI^R." 1 i.e., the figures of actual consumption given in The Temperance Problem and Social Reform. PREFACE. XV. These figures agree with those given in The Temperance Problem and Social Reform, p. 476. Mr. Walker's attempt to discredit the statistics of spirit consumption in Sweden and Norway is thus shown to be absolutely without warrant. The question of the accuracy of the statistics in the United States is only indirectly connected with the present inquiry, but the fact to which we have given prominence — that the national per capita consumption of alcohol in the American Union is only about one-half of the per capita consumption 'in this country- — is one of such far-reaching consequence, that we thought it well to submit Mr. Walker's assertion to the Treasury Department in Washington. The comment upon it made by the Commissioner of the Department is given below. The importance of the statement made in the concluding sentence, which we have italicised, will be apparent. xvi. PREFACE. " Treasury Department, "Office of Commissioner of Internal Revenue, "Washington, October loth, 1902. " I am in receipt of your letter of the ist instant, referring to the work of one, Mr. J. Walker, in regard to the statistics of this Bureau. " The quotation presented by you from Mr. Walker's book, in which he says 'the statistics are mere guesswork,' is an assertion that is not warranted by the methods of administration governing this office. The laws of the United States in regard to the collection of taxes on distilled spirits are as stringent, and perhaps more so, than those of any other civilized country. Under no government has it been possible to wholly repress the illicit distillation of spirits. The efforts of this office in that direction are indicated in a copy of the Annual Report of the Commissioner of Internal Revenue for the fiscal year ended 1901. On pages 22 and 24 of the same will be found a brief history of the repressive operations of the Internal Revenue Bureau as directed against illicit distillers. "To undertake to estimate the amount of illicit spirits that enters into consumption in the United States would, perhaps, be a work of supererogation, but the experience of this Bureau is, that outside of certain mountain sections, where illicit spirits are produced, and PREFACE. xvii. mostlj^ consumed iu the same section, the collection of taxes is as nearl}'- thorough as can be attained under any system of revenue taxation. "'In viy opbiion the amount of illicit spirits produced in this country, upon 7vhich no tax is paid, zvojild not materially affect the figures of per capita cojisumption of the United States aiid Territories} " Respectfully, (Signed) "J. W. YERKES, ** Commissioner." Mr. Walker's readers have also reason to complain that occasionally his statements, though technically accurate, are in danger of conveying an altogether mistaken impression. Thus, on page 80, referring to the Grayshott Inn, he writes: — "Since then, for various reasons, there have been six different managers, and, as a commentary on the statement of Messrs. Rowntree and Sherwell, that pure liquor alone was supplied, one of these was recently convicted for selling adulterated 1 As is well known, there are no statistics of the consumption of alcohol in the separate States of the Union, the figures that are sometimes put forward being nothing more than estimates. xviii. PREFACE. drink."^ Technically, we suppose the drink was "adulterated," but the impression upon the mind of the reader who is not connected with the Trade would have been very different if Mr. Walker had said that the manager was convicted for selling Scotch whisky below the strength recognised by the Food and Drugs Acts. And the significance of this conviction would have been entirely changed if Mr. Walker had added that, by statutory law, the publican is at liberty to sell whisky 25 degrees under proof without posting any notice to that effect in the place of sale, or at a lower strength than 25 degrees under proof if a notice to that effect is exhibited. And the charge would have lost all significance if Mr. Walker 1 It may be pointed out incidentally that the present writers do not make the statement attributed to them by Mr. Walker. The nearest approach to anything of the kind is to be found in the epitomised statement of the Committee of the Grayshott Association to the effect : " 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 consumption encouraged." PREFACE. xix. had still further added that the danger of whisky falling by evaporation below 25 degrees under proof is one that is well known by the Trade. It will probably be deemed superfluous to reply in detail to a volume bearing such evident marks of haste in preparation, but, as already said, its contents may be usefully turned to account as constituting a full statement of the charges made against the Controlling Systems of Sweden and Norway. Contents. Preface p'^g^s vii.-xix. Chapter I. INTRODUCTORY. Points Concerning which Social Reformers Agreed. Growth of Conviction that Present Licensing System is Essentially Defective. The Sisyphean Struggle. Ends towards which a Licensing System Needs to be Directed. The Value of Informed Criticism. Statement of the Essential Principles of the Gothenburg System. Elimination of Private Profit no Mere Detail of Administrative Reform. Conspicuous Benefits of the Gothenburg System. Elimination of Private Profit only a Part of the System. Misapplication of the Phrase " Gothenburg System." Comparison with Other Systems of Public Control . pages 1-12 Chapter II. THE QUESTION OF DRUNKENNESS IN GOTHENBURG. FALLACIOUS COMPARISONS. Examination of the Real Facts as to Drunkenness in Gothenburg and Elsewhere. The Com- parative Value of Statistics of Arrests. The xxii. CONTENTS. Extent to which Comparisons are Reliable. Statement of Considerations to be allowed for. The Fallacy Underlying Recent Comparisons. Sweden and Scotland Compared, The True Facts and their Explanation. Thoroughness of the Control Exercised in Scandinavia. The Gothenburg System Essentially a Controlling System. Illustrations of this Fact. Statement of Administrative Checks and Restrictions. Effect upon Consumption of Spirits. The Uncontrolled Sale of Beer, and its Effects. Two Systems in Contrast. Effect of Uncon- trolled Sale of Beer upon Drunkenness. Other Causes. The Influence of High Wages. Comparison of Economic Condition of Working Classes since 1865. Comparative Statement of Wages in various Skilled and Unskilled Trades. Higher Relative Increase in Wages of Unskilled Labour, Important Recognition of the Value of the Gothenburg System as a Temperance Agency . pages 13-50 Chapter III. PRICES AND DUTIES IN SWEDEN AND NORWAY, Cheapness of Spirits in Sweden, Effect of Price of Alcohol upon Consumption, Comparison of Prices in Sweden, Norway and United Kingdom. Size of Dram of Spirits in each Country. Prices Charged by Controlling CONTENTS. xxiii. Companies. Comparison of Sweden and Norway. Effect of Spirit Duty upon Consumption in the Two Countries. Relation of Taxation to Consumption in case of Beer. The Malt Tax in Norway, Progressive Advance in Price of Spirits in Sweden and Norway. Effect of Spirit Duty upon Consumption in Chief European Countries and in United States . . . pages 51-62 Chapter IV. PAUPERISM IN GOTHENBURG. Erroneous Statistics. The True Facts. The Relation of Pauperism to the Controlling System. The Growth of Pauperism in Sweden Not Peculiar to the Towns. Increase in Rural Districts where Prohibition Prevails. Ex- planation of the Increase of Pauperism in Sweden. Review of Influences Affecting Pauperism during the last Forty Years. The Effect of Periods of Commercial Depression. The Value of the Early Figures, New Methods of Tabulation. Distinction between the Statistical Increase and the Real Increase. Historical Resume of the Causes making for Pauperism. The P'allacy of the Attempt to Connect the Increase with the Controlling System shown in the Case of Finland. The Effect of Methods of Administration upon the Volume of Pauperism Illustrated by xxiv. CONTENTS. Experience in England. Comparison of English Poor Law Unions. Increase in Statistics of Pauperism in Gothenburg, accompanied by a Diminution of Poverty. Increased Prosperit)'- of the Working Classes in Gothenburg pages ^2)~11 Chapter V. THE MENACE TO MUNICIPAL AND POLITICAL " LIFE. The Danger to Municipal and Political Life under Private Licence. This Menace Destroyed b)' the Scandinavian System. Examination of a Recent Attempt to Controvert these Propositions. The True Test of Political Influence. The Alleged Failure of the Trade to Influence Legislation Examined. The Extent and Methods of the Trade Electoral Organization. Political Activity of the Trade in 1892 and 1895. The Power of the *' Local Instrument." The Menace a Continuous Factor in Political Life. Illustrations of the Exercise of the Trade's Political Influence since i860. A New Development in Trade Organization. Formation of the National Brewery Shareholders' Association. " A Powerful Political Force." Avowed Objects of the New Association. The Menace in the United States. Elimination of the Menace in Scandinavia. Divorce of the Spirit Traffic CONTENTS. XXV. from Politics in Sweden and Norway. The Significance of the Fact. Evidence of Mr. Chamberlain and Lord Peel. How the Divorce was Effected. The Struggle with the Distillers in Sweden. The Power of the Brewers. Proposals of the Temperance Party in Sweden and Norway to Extend the Controlling System to the Sale of Beer. The Power of the Brewery Shareholders as Affected by the Adoption of the Controlling System. The Altered Conditions. The Lesson of South Carolina . . pages 78-126 Chapter VI. THE PUSHING OF SALES. ^ Effect of Eliminating Private Profit Upon. The Real Meaning of the Phrase. Illustrations of the " Pushing " of Trade under the Stimulus of Private Gain. Variety of the Methods Adopted. Effect upon Consumption. Preva- lence of Similar Methods in the British Colonies and in other Countries. The Pushing of Sales Destroyed under the Controlling System. Examples of Russia, Gothenburg, etc. Real Force of the Contrast between Private Licence and the Controlling System Illustrated. Methods Adopted by the Controlling Companies to Reduce Sales pages 127-143 xxvi. CONTENTS. Chapter VII. IS THE CONTROLLING SYSTEM IN SCANDINAVIA A PROGRESSIVE OR A RETROGRADE MOVEMENT? The Alleged Retrogressive Character of the Scandinavian Experiments. The Charge Examined. Disproved by {a) the Attitude of the Temperance Party towards the System, and (d) the Actual History of the Experiments. The Record of the Companies. The Early Years Compared with the Last Decade. The Temperance Aims and Methods of the Companies as Illustrated by Recent Policy and Developments. Detailed Exami- nation of the Charges of Deterioration. The Real, as distinct from the Alleged, Facts. The Swedish System Compared with the Norwegian. Superiority of the latter. The Advanced Temperance Legislation in Norway due to the Release of Temperance Sentiment and the Elimination of the Political Influence of the Distiller. The Evidence of Mn Consul Michell Examined . . pa£-es 144-168 Chapter VIII. THE EVIDENCE OF FOREIGN OBSERVERS UPON THE WORKING OF THE COMPANY SYSTEM IN SCANDINAVIA. The Suggested Bias of Swedish Local Authorities in Favour of the Controlling System. Alleged CONTENTS. xxvii. Adverse Opinions of " Impartial Travellers." The Testimony of Foreign Observers Examined. Mr. Chamberlain's Testimony. The Evidence and Conclusions of the United States Government Commissioners. Report of the Commission appointed by the State Legislature of Massachusetts. Favourable Testimony of Other Observers . pages 169-180 Chapter IX. THE COMPANY SYSTEM IN SCANDINAVIA AND THE PUBLIC-HOUSE TRUST COMPANY SYSTEM IN GREAT BRITAIN: A COMPARISON OF THE CONDITIONS UNDER WHICH EACH IS CARRIED ON. Limitations of the Public-House Trust Movement. A Monopoly of the Local Traffic Essential. The Norwegian System in its Essence One of Control. The Combination of Central Control and Local Initiative Illustrated and Explained. The Relation of the Norwegian Companies to (fl) the Central Government, {F) the Magistracy, and ic) the Municipal Council. The Resulting Safeguards. Control Combined with Elasticity of Method. Norwegian and British Public- House Trust Systems Compared. Statutory Control of the Company System Essential pages 181-191 xxviii. CONTENTS. Chapter X. THE POSSIBILITIES OF COMPANY CONTROL COMPARED WITH THE POSSIBILITIES OF PRIVATE LICENCE. The Vital Facts in the Problem of Intemperance. Results of Stringent Law Administration in Liverpool. The Decrease of Drunkenness in the City. Causes of this Decline. How Far Related to the Reduction of Licensed Premises. Particulars of the Suppression of " On " Licences in Recent Years. Decrease of Drunkenness in Liverpool Not Primarily Due to the Reduction of Licences. The True Explanation of the Decline in Drunkenness. Action of (a) the Watch Committee, (d) the Licensing Magistrates, and (c) the Citizens' Vigilance Committee. The Leverage by which Reforms have been Effected. Character of the Reforms, and the Methods Employed to Effect them. The Net Result. The Limits which govern Administrative Reforms. Absence of Apparent Effect upon the Consumption of Alcohol. The Present High Consumption of Alcohol in Liverpool. The Possibilities of a well-enforced Private Licence Law (as illustrated by Liverpool) Compared with the Possibilities of the Gothenburg System. Powerful Effect of the Company System in Scandinavia in Reducing Consumption. Ease with which Progressive Restrictions are Enforced in Sweden and Norway Contrasted CONTENTS. xxix. with the Difficulty of Licensing Reform in this Country. The Aim of Private Licence Contrasted with the Aim of Public Control. Growth of Conviction in Favour of Con- structive Reforms. The Provision of Counter-attractions in Russia. Description of the Work of the Russian Temperance Committees. Remarkable Success of the Constructive Agencies Employed. Need of Counter-attractions Recognised in the United States. Recommendations of the Committee of the Town Council of Gothenburg. Essential that such Constructive Agencies be Adequately Equipped and Maintained. Estimated Annual Cost. Rate Aid Impossible. How the Necessary Funds Can be Procured. Final Comparison of Private Licence and the Controlling System .... pages 192-226 Chapter XI. CONCLUSION. Summary of Advantages of the Company System. Objections to Propositions Considered. Earlier Conclusions Confirmed by Recent Investigations. Two Practical Conclusions. Final Appeal to Temperance Reformers, Restrictive and Constructive Reforms Both Needed. The Present Opportunity. Unity of Effort the Essential Condition of Success ...... pages 227-237 XXX. CONTENTS. APPENDICES. Page Compensation . . 239 The Policy of Exacting the Surrender of Old Licences for New Ones 242 Foreign Moneys and Measures .... 247 Method of Granting Licences in Sweden and Norwa)' 248 Statistics of Drunkenness in Principal Towns of England and Wales ...... 254 Statistics of Drunkenness in Principal Towns of Ireland. ........ 255 Statistics of Drunkenness in Principal Towns of Scotland ........ 256 The Alleged Drunkenness of Finland . . . 257 The South Carolina State Monopoly . . . 259 Trustworthiness of the Statistics of the Consump- tion of Spirits in Gothenburg, Stockholm and Bergen 265 Results of Voting of Norwegian Towns upon the Retention or Suppression of Samlags . . 268 Particulars of the Rate that would be required in Various Towns to meet the Estimated Cost of Counter-attractions to the Public-House . 271 CHAPTER I. Introductory. "It seems to me that the licensing system . . . can never but very imperfectly fulfil the objects for which it exists. The inevitable antagonism between the national and legitimate aspirations of the Trade to extend itself, and the aim of the L,icensing System to prevent extension and discourage consumption, can never be overcome. The problem can never be solved, and no final settlement satisfactory to the two sides can ever be reached, on the old lines." Address by Sir William HouUisworth, Bart., M.P., to the Manchester Statistical Society, December 71th, 1901. ALL who are interested in social reform, -^ -^ whether connected with the Temperance party or not, would agree that the con- sumption of alcohol in this country is excessive, and ought to be reduced. This conclusion, indeed, appears to be inevitable in view of the facts (a) that the average expenditure on drink in the working class families of the United Kingdom is 2 INTRODUCTORY. probably not less than 6s. per week,^ a sum which constitutes about one-sixth of their total income ; and (b) that the per capita consumption of alcohol in the United States of America is only about one-half of the per capita consumption in this country. When the necessity for a great reduction in consumption is kept steadily in mind, the force of Sir William Houldsworth's words, given above, becomes apparent. For if the true national policy be to discourage alcoholic drinking, a licensing system stands condemned which places the sale of drink in the hands of those who benefit by every glass they sell, and who as private traders will stimulate their sales to the utmost. No one can be surprised at the growth of the conviction that under the present licensing system the nation is engaged in a Sisyphean struggle ; that it is futile to attempt the effective control of a lucrative trade, while placing those who ^ See The Temperance Problem and Social Reform. INTRODUCTORY. 3 conduct it under the strongest temptation to extend the area of their operations and prevent the introduction of statutory reforms. This conviction no doubt inspires the perennial interest which is shown in all experiments for taking the drink trade out of private hands, and especially in the great experiment which for more than thirty years has been conducted in Sweden and Norway. Yet, notwithstanding the benefits which it offers, the Scandinavian system is exposed to a curious cross-fire of criticism. With a true and penetrating instinct, those who are interested in the Trade oppose any form of Company control ; and, with much less insight, the experiment is opposed by some temperance reformers. This criticism is not an unmixed evil. It secures a searching investigation of the system ; it brings into relief certain defects in the scheme as adopted in Sweden — defects which English reformers will do well to note. It compels attention to the fact that Norway, 4 INTRODUCTORY. profiting by the example of the sister country, improved greatly upon her methods, establishing the Company System in a form more complete than is to be seen in Sweden. Criticism, however severe, if discriminating and informed helps towards the understanding of a difficult problem. But criticism which is based upon an imperfect acquaintance with the facts, or which mis-reads their significance, can only darken counsel. In this last category must be placed Mr. Walker's examination of the Gothenburg System, which constitutes the first part of his recent book, entitled The Commonwealth as Publican. The latter part deals with the Public-House Trust movement in Great Britain. In a volume^ published in igoi, we ventured to point out what we believe to be the conditions of success in this latter movement, regarded as an agency for the advancement of temperance, and would refer 1 British Gothenburg Experiments and Public-House Trusts. INTRODUCTORY. 5 readers who are interested in the discussion to its pages. Let us at the outset briefly re-state the essential principles of the Gothenburg System. It is the more necessary to do this as the term is often loosely applied (and is so applied by Mr. Walker among others) to systems which have little in common with the Company System as carried out in either Sweden or Norway. As is well known, the principle which underlies the entire Company System in Scandinavia is the elimination of private profit from the retail sale of spirits. Under this system the retail sale of spirits is taken out of private hands and placed under local public control, which may be exercised either directly through a municipality^ or through a philanthropic company acting in association with the municipality, but always under con- ditions laid down by the central government. 1 Although municipal control is legal in both Sweden and Norway, it is the Company System which has found favour and which exclusively prevails. Under the Company System, however, as practised in Norway, the Municipality is in many ways associated with the Company in its work. See p. 187. 6 INTRODUCTORY. In Sweden the control is inadequate ; in Norway it is complete and efficient. The removal of the sale from private hands to public control is no mere detail of administrative reform ; it differs fundamentally from the long succession of licensing amend- ment Acts which crowd the Statute book of this country, and which, whatever may have been the measure of their success, still at the beginning of this century leave us with a " gigantic evil " which remains to be remedied. The inevitable antagonism between the aspirations of the Trade to extend itself, and these measures whose aim is to discourage consumption, has never, in this country, been overcome. It is the distinctive and peculiar merit of the Gothenburg System that it gets rid of this antagonism, and in so doing brings the widest range of both restrictive and constructive reforms within reach of easy attainment. It is sometimes assumed that the sole merit of the Gothenburg System is that INTRODUCTORY. 7 it prevents the pushing of sales by the bar-tender. This is a strangely inadequate conception of its scope and working. Its more conspicuous benefits may be ranged under four main divisions : — I. — When the interest of the private trader does not block the way, wise regulations for the restriction of the traffic, suited to the varying needs of localities, can be adopted without difficulty or delay, and be modified from time to time as experience and an advancing public sentiment may require. The efficient enforcement of bye-laws, so hard to secure under private licence, presents no difficulty under the Company System. In Gothenburg, the extra- ordinary reduction in the number of drink shops, the shortening of the hours of sale, the raising of the age at which young persons can be served, the abolition of sales on credit, of gambling, and of the immoral accessories of INTRODUCTORY. the public-house, — the absence, in short, of all pushing or stimulating of sales, whether by the bar-tender or by the principals who determine the policy of the public-house, illustrates how \yide is the difference in the conduct of the trade according to whether "men run after liquor or it runs after them." 2. — The System secures a divorce between politics and the drink traffic, and brings within narrow limits the menace to national and municipal life now exercised by the Trade. 3. — Less noticed, but hardly less important, is the consideration that the Controlling System enlists the active co-operation of good citizens, and is responsive to an enlightened public opinion.-^ The System is on the lines upon which all social reforms are converging, namely. * "Progress in temperance depends at every step upon a convinced public opinion ; so that the first practical issue of the problem is to get our temperance method into that position where public sentiment can act and be acted upon with the greatest directness and efficiency." — J. Graham Brooks, Forum, December, 1892. INTRODUCTORY. 9 " a vigorous local and municipal responsibility, prompted, guided, cor- rected and supplemented by strong central supervision." 4. — Lastly, it secures for public purposes the enormous monopoly profits of the retail trade, and so renders constructive temperance reforms upon an adequate scale possible. Social recreation is a vital factor in a working life. At present, in order to be social, men are often driven to the public-house. The profits of the Trade in this country are ample to supply counteracting agencies upon a liberal scale for the entire nation, and to leave a balance of many millions for the national exchequer. This brief summary of the main features of the Gothenburg System may suffice as a reminder that, while its fundamental principle is the elimination of private profit from the sale of drink, other principles have from the first been included within its scope and are 10 INTRODUCTORY. essential to its success. It is, for instance, essential to the right and safe working of the System that, subject to the strict supervision of the central government, the traffic should be locally controlled. Equally important is it that the central government should have no power of increasing the number of public- houses. To take the trade out of private hands is not de facto to establish the Gothenburg System. To apply, for instance, the phrase "Gothenburg System" to the Government Spirit Monopoly of Russia, or to the State Dispensary System of South Carolina, is to confound things which are essentially distinct.-^ The Government Spirit 1 Yet Mr. Walker writes (p. 57) : — " In only one country [Russia] has the ' Bolag ' been a success financially." As a matter of fact, the Spirit Bolag or Company is non-existent in Russia. And again, referring to the South Carolina Dispensaries, on p. 44 he writes : — " We can, however, see a system with most of the good points of the Scandinavian ' Gothenburg' at work across the Atlantic." The Dispensary System, however, differs funda- mentally from the Gothenburg System. See on this point, The Temperance Problem and Social Reform, pp. 425 and 426. (The paged references to The Temperance Problem and Social Reform are to the seventh and subsequent editions.) INTRODUCTORY. n Monopoly in Russia is, as its name implies, a monopoly under State control. The Government has its own shops for the sale of spirits, and can at pleasure increase or lessen their number. The local community, except in so far as it is the agent for carrying out the regulations of the Government, has no control over the number or the conduct of these shops. A town is neither expected nor left free to work out its salvation from the drink curse as local circumstances and experience may suggest ;^ nor can an enlightened public opinion be brought directly to bear upon the local arrangements for the conduct of the trade. And the system has this fatal defect : the Government being able at its will to increase the number of places and facilities for the sale of drink, is exposed to the temptation which assails the Government of India in regard to opium and intoxicating liquor, the temptation to stimulate production and sale with little regard to the injury inflicted 1 Recognition should, however, be given to the local effort that is put forth in connexion with the counteracting agencies. See p. 214. 12 INTRODUCTORY. upon the consumer. So long as the Russian system is administered by enhghtened states- men, who recognise that any immediate increase of drink revenue will be dearly purchased by the impoverishment of the people, the danger may not be felt, but it lurks in the system, and sooner or later is likely to be experienced. CHAPTER II. The Question of Drunkenness in Gothenburg. Fallacious Comparisons. MANY of the critics of the Gothenburg System call attention to the large number of arrests for drunkenness in Gothen- burg, and compare them with the number reported from other towns. Mr. Walker, for example, in a chapter entitled " Norway and Sweden, Statistics of Arrests," presents the following table, introducing it as a comparative table of the arrests for drunkenness in the four principal towns in Scandinavia and in four similar towns in Scotland : — Mr. Walker's Table. Arrests for Arrests for Scandinavia : drunkenness Scotland : ^ drunkenness t^K.a.ii\j.ii.ia.v 1.0. . per 1,000. w>.v^».i«»ivi . per i.ooo. Stockholm 31 Edinburgh i3"7 Bergen 25 Dundee 14 Gothenburg 58 Aberdeen 11 Christiania 41 Perth 11 He further gives a chart showing what he supposes to be the arrests for drunkenness 1 The true figures for the four Scotch towns are given on page 20, and are, it will be seen, nearly double those given by Mr. Walker. 14 DRUNKENNESS IN GOTHENBURG. per thousand of population in Gothenburg and Dundee. Before giving these statistics, Mr. Walker refers to the unanimity with which writers favourable to the Swedish controlling system have discredited the returns of arrests for drunkenness as untrustworthy evidence, and then adds, with curious unconsciousness of the nature of his own handling of them, that these statistics, while varying according to local conditions, " have this advantage . . . that they cannot be manipulated to support a particular theory without actual dishonesty." The question of the extent to which arrests for drunkenness can be safely used as an index of the intemperance, or even of the visible drunkenness, of a town or country is one of difficulty, and deserves more attention than it has received. We submit, however, the following propositions : — I. — Statistics of arrests for drunkenness over a term of years in any given town will probably be an approximately true DRUNKENNESS IN GOTHENBURG. 15 indication of the increase or diminution of drunkenness within its Hmits if no change has been made in the poHcy of the Watch Committee or of the Chief Constable, or in the method of tabulating arrests. 2. — When the comparison is made between different toi^'iis in the same country, the liability to error becomes great. Thus Captain G. A. Anson, the Chief Constable of Staffordshire, in a letter dated March, 1903, says " that the number of convictions for drunkenness largely depends upon the strictness with which the law is administered in different places, so that no comparison is of any use except as between different years in any one particular jurisdiction."^ 1 We have inserted in the Appendix (p. 254) a table showing the yearly average number of persons proceeded against for drunken- ness, including drunk and disorderly, in the quinquennial period 1897 — 1931, for thirty-eight representative towns in England and Wales. The figures appear to give broad indications of the drunken- ness existing in different parts of the country, but also to illustrate Captain Anson's position that they cannot be used for purposes of i6 DRUNKENNESS IN GOTHENBURG. 3. — When the comparison is made between towns in England and towns in Scotland or in Ireland, the Hability to error is still further increased. The method of tabulating arrests for drunkenness differs greatly in England and in Scotland ; and until the passing of the Licensing Act, 1902, there were important differences between the laws affecting drunkenness in England and in Ireland. 4. — When, however, the attempt is made to institute a comparison between the arrests for drunkenness in the United Kingdom, or any portion of it, and foreign countries, the liability to error becomes so great that the figures are generally destitute of comparative value. Indeed, no better illustration of this can be afforded than the comparison which has been continually made between the exact comparison between one town and another. This latter view is enforced by the following among other comparisons : — Leeds as compared with Bradford, Newcastle as compared with Gateshead, and Tynemouth as compared with Hartlepool or Sunderland. DRUNKENNESS IN GOTHENBURG. 17 proportion of arrests in Gothenburg and those in various Scotch and Enghsh cities. These comparisons have been made upon the assumption that the figures of arrests for drunkenness in Gothenburg were fairly comparable with the figures of arrests in the towns of Great Britain, whereas, as we shall presently show, they are altogether different, and consequently entirely worthless for comparative purposes. Mr. Walker has fallen into the fallacy which has misled many critics of the Scandinavian experiments, and which it is necessary to expose. The figures of arrests which he quotes for Gothenburg include not merely the cases of simple drunkenness, but also the cases of breach of the peace arising from drimkenness} On the other hand, the figures which he quotes for Scotland include 1 Dr. Wieselgren writes us (February 21st, 1903) that in Stockholm, and, indeed, throughout Sweden, the statistics of arrests are taken out upon the same principle as in Gothenburg, and,, consequently include all cases of breach of the peace arising out of drunkenness. B i8 DRUNKENNESS IN GOTHENBURG. only the cases of " drunkenness," and do not include the cases of " breach of the peace " arising out of drunkenness. These latter are, however, with very few exceptions, primarily cases of drunkenness which are accompanied by " breach of the peace," and are only included under the latter heading because " breach of the peace " is the major oftence. According to Colonel M^Hardy, the Chairman of the Prison Commissioners of Scotland, whose Department is responsible for the preparation of the Judicial Statistics, only from five to ten per cent, of the cases of "breach of the peace" are not primarily cases of drunkenness requiring to be included under that head for comparative purposes, and we have his authority for stating that an average deduction of seven per cent, would fully allow for all non-drunkenness cases. We have been at pains to consult the Prison Commissioners directly in this matter, and we are informed that all statistics DRUNKENNESS IN GOTHENBURG. 19 purporting to give the returns of drunkenness in the towns of Scotland, which do not include the cases of breach of the peace (subject to the deduction referred to above) are misleading, and that to arrive at the real drunkenness figures it is necessar}' to include the cases of (a) Breach of the peace (less seven per cent.) (b) Drunkenness, etc., not under Intoxicating Liquor Laws. (c) Drunkenness and Drunk and Incapable (included under Offences against the Intoxicating Liquor Laws). Mr. Walker, therefore, has compared figures which are not comparable. His table, moreover, would have been misleading even had its figures been correct, because the towns which he selected were those in which the cases of drunkenness were exceptionally low, being in fact only two-thirds of the average for the fifteen principal towns in Scotland. The following table shows the cases of drunkenness in fifteen representative towns 20 DRUNKENNESS IN GOTHENBURG. in Scotland ; the cases of breach of the peace, less a deduction of seven per cent., having been included in the drunkenness figures in accordance with the suggestion of the Prison Commissioners : — Yearly average number of cases of drunken- ness disposed of in the quinquennial period 1897-1901.-^ Town. Average Population. Rate per 1,000 of Population. Glasgow Edinburgh.... Dundee Aberdeen Paisley Govan Leith Greenock Kilmarnock.. Hamilton Perth Ayr Dunfermline. Dumbarton . . . Stirling Averasfe. 736,684 47-07 306,099 28-62 158,894 22-95 145.328 i8-og 78,000 27-00 76,403 37-30 75>o83 28-61 66,982 44-81 33'833 32-41 31.192 43-29 30,722 27-97 26,859 51-71 24.730 22-93 18,300 47-60 17,480 44-41 34-98 1 For a detailed statement showing the number of cases of drunkenness under each head, see Appendix, p. 256. DRUNKENNESS IN GOTHENBURG. 21 With the actual facts of the drunkenness in Scotland before us, we are better able to estimate the significance of the drunkenness existing in Gothenburg. In that town, as in Scotland, the people have long been addicted to the use of spirits. The arrests for drunkenness in Gothenburg per 1,000 of the population are given below. The average, it will be seen, is higher than that for Scotland taken as a whole, but the figures correspond closely with those for Glasgow : — Arrests for drunkenness in Gothenburg per i.ooo of the population. 1875-1879 39 18S0-1884 34 1885-1889 34 1890-1894 42 1895 33 1896 37 1897 47 1898 57 1899 58 1900 54 1901 44 1902 47 There are two features of this table that call for explanation : — (a) The general high percentage of arrests throughout the entire period, and 22 DRUNKENNESS IN GOTHENBURG. (bj The increase in the percentage of arrests in the years following 1896. The general high level of arrests is due to three causes : — (i) Less than half a century ago Sweden was probably the most drunken of the civilised countries of the world, and national habits are not quickly changed. (2) Gothenburg is surrounded by a wide Prohibition zone. The nearest public-house outside its limits is about ten English miles distant, and the city is said to supply spirits to a population equal to its own. No town in Great Britain is similarly situated. Of those arrested for drunkenness in Gothenburg in igoi, thirty per cent, did not belong to the town. (3) The excessive cheapness of spirits (the national drink), which Mr. Chamberlain has spoken of as "the standard difficulty of the friends of temperance " in Sweden and Norway. Detailed information respecting prices is given in Chapter III., but to illustrate the point under consideration, DRUNKENNESS IN GOTHENBURG. 23 the following comparison may be given : — The average dram of spirits supplied in the public-houses of the United Kingdom is one of 54*4 cubic centimetres (i'95 fluid ounces), and the average price for it is slightly more than 3d. (3-1 yd.)/ but a dram of equal size and of almost identical strength, purchased in Gothenburg, would only cost a fraction over id. (i'2d.) There can be no doubt that a reduction to this level in the price of spirits in this country would lead to an appalling increase of drunkenness — probably to an extent far beyond that which exists in Gothenburg. These facts will be deemed a sufficient explanation of the general high percentage of arrests shown in the table, but the}^ do not account for the increased proportion of arrests since 1895. To understand this, it must be kept steadily in mind that the Gothenburg System finds but a partial application in Gothenburg; that it applies to the sale of spirits only, and not 1 Evidence of this will be given in a work which the present writers hope shortly to publish. 24 DRUNKENNESS IN GOTHENBURG. to the sale of beer. As might have been expected, the sale of spirits, which is controlled, has been very greatly reduced since the establishment of the Company System,^ while the uncontrolled sale of beer has advanced by leaps and bounds.^ It is necessary in this connexion to emphasise the fact that the Company System as administered in Sweden, and still more as administered in Norway, is essentially one of control. The words " management " and " public management," often used in this country as descriptive of one of the options which temperance reformers have in view, fail to convey the dominant thought of the temperance reformers of Scandinavia. How thorough is the control which the Gothenburg Bolag has exercised over the sale of spirits, the following illustrations will show. Number of Places of Sale. The population of Gothenburg in 1902 was 130,702, and the entire number of places 1 See p. 30. 2 See p. 34. DRUNKENNESS IN GOTHENBURG. 25 within its limits for the " on " sale of spirits was forty-three, viz. : — For the public-house traffic- 14 For clubs, restaurants, and hotels (not frequented by the working- classes) 25 For eating-houses 4 43 This gives one place of " on " sale for every 3,039 persons, or, if the ordinary dram shops alone are considered, one place of "on" sale for every 9,336 persons. For the " off" sale there are thirty places, of which seven are made use of by the Bolag and twenty-three are sub-let to wine merchants. There is, therefore, one place for "off" sale for every 4,356 persons. Temperance reformers in this country do not venture to ask for limitation in the number of licences equal to this. Hours of Sale. While the law allows the sale of branvin'- over the bar to continue until 10 p.m., the ^ The native spirit of the Scandinavians is commonly called "branvin," generally translated into English as "brandy." When, therefore, in this chapter the word is used, it must be understood as referring to a liquor distilled from potatoes or corn and containing from 40 per cent, to 50 per cent, of alcohol. 26 DRUNKENNESS IN GOTHENBURG. Gothenburg Company closes its bars at 6 p.m. in winter and 7 p.m. in summer. The higher grade divisions of the Company's shops remain open two hours later/ during which time non-native spirits only are supplied, and then only with food. All serving of branvin on 1 The extended hours for the sale of superior spirits in the Bolag's own houses, and its willingness to hand over the sale of superior spirits to wine merchants, remind one of a point which Swedish correspondents think is continually overlooked in this country. Thus, an exceedingly well informed correspondent in Gothenburg writes : — "In all the foreign books I have read about the system, and they are a good many, all the authors have made a common mistake in neglecting the different customs of the different nations. In England and America, for instance, a public-house is a public-house to all classes of people. You see there very often the merchant, clerk, or foreman standing beside the working man, or even beside the loafer, taking his drink. In Sweden such a thing never happens. The foreman of a working gang would never visit a spirit shop and drink with his men. He visits instead the so-called better afdelning \_i.e., division]. This is the reason why we must have this better afdelning. If a working man went to a better afdelning and asked for a drink, he would be sure not to be served. On a Sunday, when the working man is dressed up, he might go to the better afdelning. It rarely happens — I can't remember having seen it — that persons get drunk at the best restaurants. In the police reports, which I receive every month, you find now and then a so-called 'half better man' taken up ; he has generally got his drinks at one of the public-houses which are classed nearest to the better afdelning of our houses. . . . It must be remembered that the foundation of the v/hole system is to do good to the working people. The higher classes are considered able to take care of themselves." Whether this is a right foundation for a system may be questioned, but if the English reader is to form a just estimate of the integrity with which the Company System has been carried out in Sweden, he must keep in mind the sharp and rigid division of classes existing in the country, and the principle upon which the Gothenburg System was avowedly based. DRUNKENNESS IN GOTHENBURG. 27 Sundays and holidays, and after 6 p.m. on evenings preceding such days, is prohibited, with the exception of one dram, if served with a meal, at the eating-houses between i and 3 p.m. The retail ("off") shops are open from 9 a.m. till 6 p.m. The law would allow them to be open from 8 a.m. to 7 p.m. They are closed during the whole of Sunday. The importance of this early closing will be evident from the fact that in the large cities of our own country a considerable proportion of the trade is done after 7 p.m. It is particularly to be noted that on Saturday nights, and on other occasions when excessive drinking is to be anticipated, the Bolag shortens the hours of sale. The Bolag has moreover introduced a more daring restriction. In order that the spirit shops may be converted more and more into restaurants for the working classes, the Bolag has decided that during the dinner hour, between 12 and 2 p.m., all sale of branvin shall cease at these places, except when taken with meals. Acting 28 DRUNKENNESS IN GOTHENBURG. in the same spirit, the Bolag has opened eating-houses in different parts of the town, where cooked food is served throughout the day, and where branvin is supphed, if ordered and paid for as an extra, to persons taking their meals there, only one dram being allowed to each visitor. There are at present four houses of this class. When these houses were first opened, a visitor, as a rule, took his dram ; now more than half the visitors take their meals without ordering branvin. Sale of Liquor to Young Persons. The Swedish law forbids the selling of branvin to persons under the age of fifteen, but the Company has voluntarily raised the age limit to eighteen, thus excluding young persons from the licensed houses three years longer than is prescribed by law. In this country, under the Act of igoi (i Edw. VII., c. 27), it has been made illegal to sell '' any description of intoxicating liquor to any person tinder the age of fourteen years for consumption by any person DRUNKENNESS IN GOTHENBURG. 29 on or off the premises," except in sealed vessels. The limit imposed by the Bolag is therefore four years higher than that now adopted in this country. Again, the Bolag has abolished all sales on credit. Severe as these restrictions will seem to the English reader, they have been carried out with such judgment, and with so full a knowledge of what the public opinion of the city would support, that there has been no driving of the traffic below the surface, and no club difficulty, nor has the restriction led to illicit sale. The existence of these restrictions and their unquestioned rigid enforcement make it a priori impossible that the recent increase in the arrests for drunkenness in Gothenburg can justly be attributed to the Controlling System, and the difficulty is greatly increased when it is seen that these restrictive measures have resulted in a diminished sale of spirits, especially in the bar or " on " sale, which 30 DRUNKENNESS IN GOTHENBURG. necessarily represents consumption upon the spot. That such has been the case to a remarkable extent will be seen from the figures in column I. of the appended table: — ^ Bolag Sale of Spirits in Gothenburg. Litres per Inhabitant. YEAR. I II. III. Bar or "on " sale. Retail or "off" sale Total. 1875^ 12-99 14-46 27 '45 1876 13-18 15-21 1 28-39 1877 14-06 12-82 26-88 1878 13-61 II-I9 [ 24-80 1879 12-58 9-32 . 21-90 18S0 ii-ii 9-09 20'20 I881 10-13 9-02 1 19-15 1S82 9*12 8-59 : 17-71 1883 8-6o 9-48 I 1 8 -08 1884 8-55 9-63 i8-i8 i88s 8-44 9-62 i8-o6 1886 8-22 9'53 1775 1887 7-65 9-25 16-90 1888 7-46 9-29 16-75 18S9 6-50 9*56 i6-o6 1890 6*43 9-56 I5"99 1891 6-69 8-14 14-83 1892 5*90 7*65 13-55 1893 5-27 7'93 13-20 1894 4-91 8-12 13-03 1895 4-98 8-13 13-11 1896 4-94 8-31 13-25 1897 5-12 8-56 13-68 189S 5*45 9-14 14-59 1899 5'95 10-05 i6-oo^ 1900 5*69 10-47 i6-i6 1901 5-48 10-57 16-05 1902 576 8-86 14-62 1 For the foundation of this Table see Appendix, p. 265. '^ " In the Act of 1855 an unfortunate clause had given all shopkeepers with a general trading licence the right to sell spirits for DRUNKENNESS IN GOTHENBURG. 31 It is thus seen that the " on " sale of spirits in Gothenburg per inhabitant in 1902 was actually less than one-half what it was as recently as 1875. Surely this is a remarkable result ! As was to be expected, the reduction in the " off" sale has been less than in the bar sale. The restrictive agencies of shorter hours, the non-serving of young persons and the like, would almost certainly affect the " off" sales less powerfully than the " on." They would hardly at all affect the great population living in the prohibition area outside the City. An examination of the second column will show that the present per capita "off" sale is 39 per cent, less than it was in 1875. In the conduct of its shops for "off" sale the policy of the Bolag has been one of •off consumption in quantities of not less than half a gallon. To put it briefly, every shopkeeper could sell for 4s. 6d. half-gallon bottles of spirits. It was thought that this quantity was large enough to prevent spirits being bought retail for immediate consumption. But the workmen clubbed together, bought at this wholesale rate, and consumed it on private premises, thus defeating the law and the Company. In 1S74 the law was altered, and the whole retail spirit traffic transferred to the Company. The record of its achievements, therefore, really dates from that year." — Workman, What is the Gothenburg System ? ^ For the explanation of the increased consumption in the years 1899 to 1901 see pp. 44-48. 32 DRUNKENNESS IN GOTHENBURG. steady restriction. Sales on credit are not permitted ; the hours of sale have been shortened ; and since 1866 the price of spirits for "off" sale has been advanced 50 per cent.^ Taking the "on" and "off" sale together, the per capita reduction in the Bolag sale of spirits since 1875 is more than 46 per cent. With this reduced consumption of spirit, and with this efficient control over the sale, the apprehensions for drunkenness ought steadily to have declined. Why have they not declined ? Obviously there must be a factor, not present in the Company System, which is responsible. The explanation is found in the fact that in Gothenburg, as throughout the towns of Sweden, two ^Acting upon the principle to which attention has already been directed (see note, p. 26), the Company has not retained the "off" sale of "superior spirits " in its own hands, but has let twenty-three of the " off" licences to wine merchants. The intention of the licence was to forbid the sale of branvin in the city except in wholesale quantities (250 litres), whilst allowing the sale of wine and "superior spirits." It is, however, said that the terms of the licence are evaded, and that the "cognac" sold by the wine merchants in litre bottles is the native spirit coloured and strengthened. The wine merchant may not sell any spirit under i kr. 80 ore per litre, whilst the price of the branvin sold by the Bolag is i kr. 35 ore per litre. It is DRUNKENNESS IN GOTHENBURG. 33 systems have been at work at the same time, namely, the Controlling System as regards spirits, but something approaching to Free Trade under the stimulus of private gain in the sale of beer and doctored wines. ^ The result has been exactly what might have been expected, namely, a great reduction in the consumption of spirits and a great increase in the consumption of beer. The consumption of spirits and of beer in Sweden since 1875 has been as follows : — doubtful, however, whether the margin in price is sufficient, especially when it is remembered that the alcoholic strength of the branvin sold by the Bolag is 43 degrees, whilst the wine merchants are at liberty to sell spirit with an alcoholic strength of 50 degrees. 1 Mr. James Whyte, the Secretary of the United Kingdom Alliance, writes {The United Kingdom Alliance Vindicated, p. 53) that the Bolag controls " a good deal of the beer trade in Gothenburg." This is a mistake. The Bolag controls only its own sale of beer. Mr. Andree states that the average quantity of beer sold by the Gothenburg Bolag in the years 1897, 1898 and 1899 was 156,400 litres, so that the quantity sold by the Bolag was not as much as one eighty-fifth portion of the entire sale of the city (see p. 40, footnote). 34 DRUNKENNESS IN GOTHENBURG. SPIRITS. BEER. YEAR. (50 per cent, alcohol.) Litres per head of Litres per head of the population. the population. 1875 12-4 16-4 1876 12*4 15*9 1877 io'6 17-0 1878 10-5 20-5 1879 8-8 16*4 1880 8-1 l6'2 1881 8-8 i8-3 1882 8-0 15-8 1883 6-8 i6-8 1884 8-0 20-8 1885 8-4 20-3 1886 7-8 22'I 1887 7-0 227 1888 7*5 27-2 1889 6-2 28-2 1890 7*1 27-4 I89I 6-6 30-9 1892 6-7 30-8 1893 6-8 31-6 1894 7-0 33'o 1895 7'o 35*5 1896 7*3 42-4 1897 7-6 45'o 1898 8-1 50-0 1899 8-6 ' 1900 8-7 No returns. I9OI 8-7 It will be seen from this table that the sale of beer in Sweden per head of the population has risen from 16*4 litres in 1875 to 50 litres in 1898,^ an increase of more than 204 per cent. 1 The latest year for which figures are available. DRUNKENNESS IN GOTHENBURG. 35 Mr. Andree, the Manager of the Gothenburg Bolag, informs us that the average yearly sale of beer in Gothenburg for the three years 1897, 1898 and 1899 was : — Beer 13,400,000 litres "Small" Beer 4,200,000 ,, 17,600,000 During the same period the average population of Gothenburg was 120,018. The average yearly per capita sale would therefore be as under : — Litres. Imperial Gallons Beer iii equal to 24*45 "Small" Beer.... 35 ,, ,, 771 146 ,, ,, 32-16^ In the case of beer, however, as of spirits, Mr. Andree says that Gothenburg supplies an outside population equal to its own ; so that allowance must be made for this in ^ The estimated per capita consumption of beer in Great Britain and Ireland for the year 1901 was as under : — England and Wales. Scotland. Ireland. United Kingdom. Imperial Gallons. Imperial Gallons. Imperial Gallons. Imperial Gallons Beer ... 3500 iigo 1950 30-81 36 DRUNKENNESS IN GOTHENBURG. attempting to arrive at the true per capita consumption of beer in the city. The stronger beer is sold by the bottle at a price equal to is. io*4d. per imperial gallon, and the medium beer at a price equal to IS. 2*id. per imperial gallon. The "small" beer, however, is sold for five ore per glass of 650 c.c, equal to no more than 4*66d. per gallon. Assuming that the consumption of beer has increased at the same rate in the City of Gothenburg as in Sweden as a whole, the per capita consumption in the city will now be more than three times what it was in 1875. Now what are the conditions under which this large quantity of beer is sold ? We have seen how few are the places in Gothenburg at which spirits can be obtained, but the number of "on" beer licences is 174, and there are no less than 662 other places where beer can be bought for consumption off the premises. DRUNKENNESS IN GOTHENBURG. 37 The same contrast is noticed in the hours of sale. It will be remembered that the Bolag spirit bars close at 6 p.m. in winter and 7 p.m. in summer, while the shops for the "off" sale of spirits close at 6 p.m. all the year round. But the licensed "on" beer-houses keep open until 10 p.m. all the year round, and the shops that carry on the "off" sale may be open during the night and part of Sunday. The following extract from a " Report from the Police of Gothenburg to the Committee appointed by the King for taking the Malt Liquor question into consider- ation (March, 1900) " will show the actual condition of things. The police say : — " At the end of last year there were here about 660 shops where malt drinks were sold ["off" sale]. About 200 of these were bona-fide [grocery] stores where the beer sold was exclusively for household use, and against this nothing can be said; but in the others the beer sale may be said to be the chief thing. These beer 433342 38 DRUNKENNESS IN GOTHENBURG. shops are, besides, found for the greater part in the outskirts of the city, or in the parts of the town where the magistrates generally have not allowed Temperance Cafes. It is quite clear that under these circumstances the beer sale that is carried on both during the night and also partly during Sundays and holy days will cause inconvenience of several kinds. Not only that the lower classes of the population through this are given an opportunity to get beer in excessive measure for consumption at home (this has been the active cause of making and stimulating the so-called home drinking, and even the women have begun to give themselves to drunkenness), but around these beer-shops the loose male population gathers late in the evenings, and people drink the beer so bought in the street, and in alleys, and other out-of-the-way places. Of course the police, according to par. 15 in the Temperance regulations, have power to DRUNKENNESS IN GOTHENBURG. 39 prohibit, for a fixed time or permanently, the sale of beer at any place where in consequence of the sale illegal practices arise or general disorder is caused. But, on the one hand, the necessary evidence cannot always be had, and, on the other, the police prohibition is generally circumvented in the following manner. After the police have forbidden a certain person to sell malt drinks for fetching ["off" sale] , immediately after this another person presents himself before the magistrate to carry on business in the same shop, where the business is then carried on as before. In this way three different persons have in one instance during a very short time followed each other in the same shop, and through this almost unlimited liberty to sell beer for consumption off the premises, the good intent of the rules is worked against, and the police regard it as a real necessity that the licence to sell beer 40 DRUNKENNESS IN GOTHENBURG. should be made less easy, and should not be given without special permit." ^ We have thus the two systems brought into sharp contrast. On the one hand, as regards spirits, wise restriction in various directions enforced without difficulty or friction ; and on the other, as regards beer and wine, a phase of that unending conflict between the interests of the public and the interests of the individual 1 The effect of control upon the visible drunkenness of a city has received a striking illustration in the case of Liverpool. We refer to it at length at pages 192-210, but, to illustrate the point now under consideration, may here say that the arrests for drunkenness in Liverpool, which in 1889 were 16.042, had in 1902 sunk to 5,115. this extraordinary reduction, moreover, having taken place concurrently with a great increase in population. This reduction, as we show, was almost entirely due to efficient control of the traffic. Liquor has no doubt been withheld in recent years from those verging on drunkenness, but the amount so held back must have been quite immaterial in its relation to the total consumption of the city, a consumption which, indeed, is very great. The absence of control (as in the sale of beer in Gothenburg) is necessarily productive of much drunkenness. Mr. Whyte argues, in his pamphlet " The United Kingdom Alliance Vindicated" (p. 53), that because the large proportion of the sale of alcohol in Gothenburg is under Company control, it is not likely that the inclusion of the remainder could greatly affect the temperance conditions of the city. This statement, as it stands, is somewhat misleading, since, as we have pointed out, the control of the Gothenburg Company is practically confined to spirits, the per capita consumption of which in 1901 was 16 litres, whereas the per capita consumption of beer was 146 litres, only one eighty-fifth part of which is controlled by the Company. But tlie view itself is entirely at variance with the decisive experience of Liverpool. It is at variance, moreover, with the opinion expressed in the following words, which we quote from an editorial article in the Alliance News of July 13th, 1894: — "We think that if the whole of the liquor trade in the towns of Sweden and Norway, instead of only the trade in spirits, had been placed under ' the system,' the effect on the sobriety of the people would have been much more marked than, under the present restricted application of the principle, has been the case." DRUNKENNESS IN GOTHENBURG. 41 trader which, with its resultant inefficiency of control, is the invariable accompaniment of private licensing. The effect of the two systems — control as regards spirits, and unrestricted sale as regards beer — is strikingly shown in the annexed table, in which the arrests for drunkenness during the five years commencing with 1875 are compared with the arrests during the five years ending with igoi : — ^ Analysis of Arrests for Drunkenness in Gothenburg. Number who drank last at YEARS. Bars of the Com- pany. Per- cent- age of total. Beer Saloons Per- cent- age of total. Home or from a bottle pur- chase. Per- cent- age of total. Place not re- ported. Per- cent- age of total. Total. 1875-79- Annual Average 1897-1901. Annual Average 1,038 1,286 42% 20% 253 I.715 10% 27% 332 1,848 13% 29% 861 1.523 35% 24% 2.484 6.372 1 Referring to this table, Mr. Walker writes (p. i8) : — " When the arrests for drunkenness became so abnormal that the Company was likely to get into serious disrepute on that account, some clever local official must have suggested that the beer-shops should be convicted of causing the increase, and with this object the authorities took the trouble to inquire of each person arrested where he was last served." Did it never occur to Mr. Walker, when making this insinuation, to find 42 DRUNKENNESS IN GOTHENBURG. Mr. Walker comments upon this table as follows : — "It is evident that when the half-tipsy [a pure assumption] workman is turned out at the 'Bolag' closing-hour he will resort to the still open beer-shop, and thence the consumption of libations of beer on the top of ardent spirits would soon and naturally lead to the police station. He would thus be last served at the latest open place of entertainment, i.e., the beer-shop. If one-half of the public-houses in a city shut at six and the other at eleven, it is certain that mostly all the incapables could be traced to the eleven o'clock houses, as the experience of the police is that the largest percentage of arrests occurs after closing-time." out the actual facts ? Had he done so he would have ascertained that the inquiry was instituted with a view of enabling the Company to exercise a stricter control over its bar managers. Dr. VVieselgren writes us : — " In 1874 I made a proposal to the board of the Gothenburg Public-house Company, that the police authority of the town should be asked to inquire where every person, taken into custody for drunkenness, had been supplied his last drink, and that statistics on the basis of this inquiry should be handed over to the board. The object of this measure, which has been taken since the beginning of 1875, was simply to make it possible for the directors to exercise a control over bar stewards and to prevent the serving of intoxicated persons. If the statistics pointed to a particular public- house, the directors and the controlling inspectors of the Company had reason closely to watch the manager there and his people. Thus the police authority well know that for twenty-eight years the Company directors have been very desirous of having untrustworthy managers reported to them." It will be thus seen that valuable as the inquiry has been in demonstrating the efifect of the uncontrolled sale of beer, the benefit is an incidental one, the figures having been obtained for another purpose. DRUNKENNESS IN GOTHENBURG. 43 True. But the explanation would apply to the first quinquennial period equally with the last. In the first period, however, forty-two per cent, of those arrested had drunk last at the Company's bars, and in the latter period only twenty per cent. In the earlier period, moreover, only ten per cent, of those arrested had drunk last at the beer saloons, but in the latter period the proportion had risen to twenty-seven per cent. The significance of these figures is perhaps even more strikingly shown by the fact that, in the earlier period, those arrested for drunkenness who had drunk last at the Company's bars, numbered 16 per 1,000 of the population, and in the latter period 10 per 1,000; while in the case of those who had drunk last at the beer saloons, the number had grown from 4 per 1,000 of the population in the years 1875-79, to 14 per 1,000 in the years 1897-1901. The further question remains: Why do the Bolag shops close at six, and the beer saloons keep open till ten ? The obvious answer is that the Bolag considers the interest 44 DRUNKENNESS IN GOTHENBURG. of the public, while the private trader considers his own interest. Mr. Walker adds : — " Yet that inquiry has shown that an average of 975 persons were annually arrested who admitted drinking last at the ' Bolag.' This astounding number is said to be a less percentage than formerly, but it is large enough to dispose of the ' Bolag's ' claim to act as a temperance agency." The percentage^ it will be remembered^ had fallen from forty -two in the period 1875-79 to twenty in the period 1897-1901.-^ In addition to the ever present influence of the uncontrolled sale of beer upon the intemperance of Gothenburg, the great pros- perity of Sweden in more recent years has had the same effect upon consumption that 1 Occasionally one meets with English writers who actually attribute the drunkenness of Gothenburg to the Company System. The question may be asked : What part of the Company System is thus responsible ? Is it the fewness of the public-houses (one to every 3,039 of the population), or the severe limitation of the hours of sale, or the refusal to supply young persons under eighteen, or the non-giving of credit, or is it the reduction of fifty-six per cent, in the bar sales of spirits between 1S75 and 1902 ? If, as is stated, more than 17,000,000 litres of beer are sold annually in Gothenburg, and if the sale is carried on without the wise restrictions that attach to the Company sale of spirits, there seems no occasion to seek further for an explanation, or to resort to a hypothesis so extravagant as that under consideration. DRUNKENNESS IN GOTHENBURG. 45 good times have on the Drink Bill of this country. Through the courtesy of some leading Gothenburg firms, we have obtained the following information as to the advance in wages in that city since 1865. The figures are of so much interest, not only in this connexion, but in relation to general economics, that we give them ifi extenso, adding the English equivalents and the percentages of increase : — " Gothenburg, ^th January, 1903. " In reply to your inquiry I beg to say that the daily wage of the workmen of the Corpora- tion, who are not paid by the job, amounted during the year 1865 to kr. i'24-i'52 (is. 4id.- is. 8:fd.), and during the year 1902 to kr. 2'6o (2s. lofd.). "Yours, etc., "FIGGE BLIDBERG. " Chief of Department." The increase is at the rate of 88"4 per cent. " Gothenburg, 7/// January, 1903. " We hereby certify by request that the wages paid on the whole to workmen at our Breweries, taking into account workmen receiving regular wages, amounted to kr. 10 (lis. lid.) per week in 1865 as against kr. 18 (;^i) per week in 1902. " AKTIEBOLAGET J. A. PRIPP & SON." The increase is at the rate of 80 per cent. 46 DRUNKENNESS IN GOTHENBURG. " Gothenburg, " ^th January, 1903. " We hereby state by request that the working wage of an ordinary unskilled painter amounted during 1865 to 15 kr. (i6s. 8d.) per week during the summer months, reckoning seventy-two working hours per week, and to 10 kr. (iis. ijd.) per week during the rest of the year, with sixty working hours per week ; the anmial wage hence amounted to 650 kr. {£z^ 2s. 2|d.) "During the year 1902 the wage was 27*26 (;^i IDS. 3id.) per week (47 ore per hour, i.e., 6Jd.) for the summer months, with fifty-eight working hours per week, making in all 709*10 kr. {£Z9 ys- lofd.) During the rest of the year it was 40 ore (sJd.) per hour, with fifty-four to thirty-six working hours per week, the wages for this period hence amounting to kr. 394*32 {£21 i8s. i^d.) This makes kr. 1,103*48 {£^1 6s. id.) for the entire year. "Yours etc., " Forenade Malaremastarnes Aktiebolag, "J. F. Harstrom." The hicrease per hour is at the rate of 133*6 per ce7it. The increase per annuvi is at the rate of 69*8 per cent. DRUNKENNESS IN GOTHENBURG. 47 Statement of wages per hour paid to workmen employed at the Lindholmens Verkstads Aktiebolag during the years 1865 and 1902. 1865. 1902. Percentage of Increase. Wage Equiva- Wage Equiva- Per Per per hour. lents in £s. d. per hour. lents in £s. d. hour. day. d. d. Smiths for ships' plates ... 19 ore 2i 32 ore 4i 684 531 Assistants for do. II >• H 23 .. 3 1091 go- 1 Engineers 19 .. 2i 33 .. 4* 737 579 Carpenters... 18 „ 2^ 30 „ 4 667 51-5 Founders 19 .. 2i 32 „ 4i 684 531 Smiths 18 „ 2i 31 .. 4i 722 566 Cabinet-makers 20 ,, 2j 31 .. 4i 550 409 Outside workmen (Dock and sHp, etc.) II •. li 23 .. 3 1091 901 Working day II hours 10 hours Lindholmens Verkstad, 5//e January, 1903. SVEN ALMQVIST. A feature of these tables is that the remuneration of unskilled labour has advanced at a much higher rate than the wages of skilled labour. In the case of labourers, the advance in the thirty-eight years seems to have been from eighty to ninety per cent. ; while cabinet- makers have only advanced forty-one per cent., carpenters fifty-one-and-a-half per cent., smiths and founders about fifty-five per cent. No 48 DRUNKENNESS IN GOTHENBURG. doubt during the same period rents and rates, along with some kinds of food, have advanced in price. On the other hand, the cost of flour and clothing is less. It cannot be questioned that the purchasing power of the labourers, from whose ranks the great proportion of those arrested for drunkenness come, has enormously increased since 1865.^ Collateral evidence in the same direction is afforded by the increase of material wealth in Norway. Writing in 1892, Mr. Thomas M. Wilson, of Bergen, a very careful and well- informed observer, said : — " In estimating the improvement that has taken place in the drinking habits of the Norwegians since the introduction of control, bear in mind that the ability to indulge in intoxicating liquors is practically doubled since 1871." 1 The British Consular Report of April, 1900, dealing with the industrial development of Sweden, says that "the value of Swedish industrial produce thirty years ago has been estimated at /s, 555, 500, in the beginning of the nineties at /'le, 666, 600, and a couple of years ago at ;^55.555.ooo. The power of consumption has trebled itself during the last thirty years." DRUNKENxMESS IN GOTHENBURG. 49 The linal question which the temperance reformer of this country will ask is, whether the Company System does or does not tend to the reduction of consumption, and to a lessening of intemperance. One piece of evidence of great weight may be added to that which has already been given. If thoughtful and disinterested persons resident in the place, who are concerned for its moral progress, and who have a full knowledge of local conditions, recognize the Company System as a temperance agency, and desire to see it extended to the sale of beer, the evidence in favour of the system becomes irresistible. Striking evidence of this kind is supplied by the fact that in November, 1898, the Bishop and the Dean of Gothenburg, together with thirty clergymen in active service in and around the town, " concerned with the evil consequences caused by the beer-houses," petitioned the Royal Governor of the province that various restrictions might be applied to the sale of beer, such as 50 DRUNKENNESS IN GOTHENBURG. have been applied b}- the Bolag to the sale of spirits. The special importance of the petition lay in its concluding words, which were as follow: — "Finally we should recommend as a suitable measure that the present number of beer licences should be successively reduced, whenever the present holders, owing to death or other causes, cease to use them ; so that eventually all these licences, ivith the exception of those connected with the serving of food, should come under the control of the Gothenbjirg Public-House Licensing Company, — conducted according to the Gothenburg System.'"^ Note. — Mr. Walker's indictment of the working of the Gothenburg System in Finland is discussed in the Appendix. See p. 257. 1 For further evidence of the same character, see pp. 145-147, chaptp:r III. Prices and Duties in Sweden and Norway. WE have already called attention to the excessive cheapness of spirits in Sweden. We stated that the average size of the dram of spirits supplied in the public- houses of the United Kingdom is 54*4 c.c, and the average price of it is slightly more than three-pence (3-17) ; whilst a dram of equal size and of almost identical strength, purchased in Gothenburg, would cost only a fraction over a penny (1-2). We expressed the opinion that were the English price brought down to the level of the Gothenburg price, an appalling increase of drunkenness would result. In the following table the price of a dram of spirits as sold in the controlling companies' shops in the Swedish towns of Stockholm and Gothenburg is compared with the prices charged in the controlling companies' shops in the 52 SPIRIT DUTIES AND PRICES. Norwegian towns of Christiania and Bergen. The average price charged for the dram in the United Kingdom is also added : — Price of Dram of Spirits (" On " Sale) as sold by the controlling companies in the largest towns in sweden and norway. Percentage Equivalent TOWN. of Absolute Alcohol. Size of Dram. Price cf Dram. puce per Imv^rial Gallon. Sweden — S. d. Stockholm 43 50 C.C. ... Sore 8 li (Population 301,000) Gothenburg 43 50 „ s\. 8 li (Population 130,702) Norway — Christiania 45 50 „ 15 » 15 li (Population 228,000) Do 45 35 " 10 ,, 14 5 Do 36^ 50 „ 12 „ 12 li Do 36* 35 >. 8 „ 11 6h Bergeu 45' 35 .. 10 „ 15 li (Population 75,000) Do 39' 33'3 .. 7 ,, 10 7i United Kingdom ... 43"6 54'4 >' 3^-17 22 of 1 The price has since (February, 1903) been raised to 9 ore, equal to 9s. id. per imperial gallon. '^ The sale of this 36 per cent, quality is said to be only about 5 per cent, of the total sale. ^ The sales are about equally divided between the 45 per cent, and the 39 per cent, qualities. SPIRIT DUTIES AND PRICES. 53 It will be seen that the 50 c.c. dram is sold in Stockholm and Gothenburg at a price equivalent to 8s. i][:d. per imperial gallon, but in Christiania a dram of the same size but of a slightly greater strength is sold at 15s. i4d. per imperial gallon. Now it is a striking fact that the per capita sale of spirits (as well as of beer) is in Norway less than one-half that in Sweden. Many causes contribute to bring about this result, but there can be no doubt that the excessive cheapness of spirits in Sw^eden is an important factor in stimulating consumption. The annexed table gives the prices charged for "off" sale in the Company shops in the towns enumerated in the previous table : — 54 SPIRIT DUTIES AND PRICES. Price of Spirits ("Off" Sale) as sold by THE Controlling Companies in the largest TOWNS in Sweden and Norway. Percentage Equivalent TOWN. of Absolute Price. price per Imperial Alcohol. Gallon. Sweden — S. d. Stockholm 46^ I kr. 15 ore per litre (customer supplying bottle) 5 94 Gothenburg . . . 43 I kr. 20^ ore ditto 6 Qi Norway — Christiania 45 2 kr. 20 ore^ ditto II li 36 I kr. 60 ore* ditto 8 I Bergen 45 I kr. 60 ore per three- fourths of a litre* (customer supplj'ing bottle) 10 9I- 39 I kr. 20 ore ditto S I In Stockholm it will be seen that a spirit of an alcoholic strength of 46 degrees is sold at a price equivalent to 5s. g^d. per imperial gallon, while in Christiania a spirit one degree weaker is sold at a price equivalent 1 The strength mainly sold. - The price has since (February, 1903) been raised to i kr. 35 ore, equal to 6s. gfd. per imperial gallon. 3 The prices actually charged in Christiania for the litre bottles are kr. 2-30 and kr. 1-70. These charges, however, include the price of the bottle. To obtain comparative figures, 10 ore (the ascertained cost of the litre bottle) has been deducted from each of the prices. * Although in Bergen the quotation is given as " per three- fourths of a litre," an extra charge of 10 ore is made if the buyer does not bring an empty bottle. SPIRIT DUTIES AND PRICES. 55 to IIS. i:J^^d. per imperial gallon, and in Bergen at 10s. g.^d. If it be asked how it is that tlie Norwegian controlling companies charge so much more for spirits than do the Swedish controlling companies, the explanation is chiefly found in the difference in duties imposed in the two countries, as shown below : Equivalent Duty amount per Imperial per litre. gallon. (50 per cent, alcohol.) s. d. Sweden 50 6re^ 2 6^ Norway i kr. 14 ore^ 5 g The duty in Norway is therefore more tlian twice .the duty levied in Sweden, but even the Norwegian duty is 5s. 3d. per gallon less than the duty imposed in this country. 1 As we write, information reaches us that the duly has this year {1903) been advanced to 65 ore per litre, equal to js:. ^^d. per Imperial gallon. ^ In iSSS the Norwegian duty on spirits (100 per cent, alcohol) was fixed at i kr. 60 ore (is. gld.) per litre. In February, 1894, the duty was advanced to i kr. 90 ore (2s. ijd.) per litre. In May, 1895, the duty was further advanced to 2 kr. 40 ore (2s. 8d.) per litre, but in 1900 was reduced to 2 kr. 28 ore (2s. G;|d.). In the above table, for purposes of comparison, the duty is shown as upon spirits of 50 per cent, alcohol. 56 SPIRIT DUTIES AND PRICES. The relation of taxation to consumption is further suggested in the case of beer. It has already been stated that the per capita consumption of beer in Sweden is now double that of Norway, and, as will be seen from the figures below, the consumption in Sweden has grown rapidly in recent years, while that of Norway has remained stationary : — Consumption of Beer. Litres per head of the Population. Sweden. Norway. 1891 30-9 217 1892 30'8 20-6 1893 31'6 20'S 1894 33'0 19*^ 1895 35-5 177 1896 42*4 i6-2 1897 45 ^7*8 1898 50 21*6 1899 ] 23-2 IQOO I f^ 22*7 -^ rreturns. ' I9OI I 20-0 Now in Sweden there is no tax upon either beer or malt, but in Norway there is a very SPIRIT DUTIES AND PRICES. S7 heavy tax upon m:ilt.^ The Chief of the Statistical Department of Christiania informs us, under date 4th February, 1903, that "one htre of beer is taxed on an average, according to the malt it contains, at about 11 to 12 ore'^ [equal to 6i^d. to 7.^d. per imperial gallon] .^ The duty on imported beer in casks is at present 22 ore per kilo, and that on bottled beer 27 ore per litre." To the English on-looker it would seem as though Sweden might, with benefit to its finances no less than to its people, advance 1 There has been a progressive advance in the Excise duty upon malt in Norway as shown below : — Equivalent price Ore per bushel of 40 lbs. per Kg. £ s. d. 1871-7 II 2 023 1877-8 140 o 2 10 1878-g 170 o 3 5*- 1894-5 211 043 1895 371 o 7 5iJ ^ The quantity of malt on which the tax is levied is known, but the quantity of beer manufactured from the malt is estimated. If less beer is actually brewed from a given quantity of malt than the official estimate, the incidence of the tax will be greater, and vice versa. 3 This duty, it will be seen, is very high. In England, the Excise duty upon beer is 7s. gd. per barrel of 36 gallons. The Norwegian duty, taken at 7d. per imperial gallon, would give an equivalent figure of 21s. per barrel of 36 gallons. 58 SPIRIT DUTIES AND PRICES. the duty upon spirits to at least the Norwegian level, and also impose an excise and customs duty upon beer. The restrictive action of the controllinsf companies, to which reference has already been made, has further shown itself in a progressive advance in the price of spirits, as well as in a progressive reduction of their alcoholic strength : — Tables showing the advances that have been made in the selling price of spirits as sold by the controlling companies in the largest towns in sweden and norway. SWEDEN. For consumption ON the premises. STOCKHOLM. GOTHENBURG. Price per Years. glass of 50 CC. Alcoholic strength. Years. i 1 Price per glass of 50 CC. Alcoholic strength. 1877-79 6 '^'"^ 1880-87 7 „ 1888-1902 8 „ 1 44% 43% (since 1891) 11866-69 '1880-87 1888-1902 !i903 6 ore 7 .. s „ 9 .. In 1866 the strength was 47% ; in 18S4 it was reduced to 46^% ; in 1888 to 45%; in i88g to 44°,'j, and in 1902 to 43%. SPIRIT DUTIES AND PRICES. 59 SWEDEN. For consumption OFF the premises. STOCKHOLM. IS77-7S 1879-85 I8S6-S7 IS88-90 I89I-I90I 1902 Price per ] Alcoholic litre. 1 strength. 0-76 krona 084 092 I 04 IIO 115 46-^ GOTHENBURG. Price per litre. 1866-87 1888 1889-go 1891 1902 1903 090 krona 100 I 04 IIO 120 1-35 Alcoholic strength. Same as for sale. NORWAY. For consumption ON the premises. BERGEN. Branvin 45% alcohol. Branvin 39% alcohol. Years. Size of glass. Price. ' Years. Size of glass. Price. 1877-88 1888-96 since 1S96 50 C.C. 40 .. 333 .. 10 ore 11877-88 1888-96 since 1896 50 c c. 40 ,. 333 .. 7 ore 6o SPIRIT DUTIES AND PRICES. NORWAY. For consumption OFF the premises. CHRISTIANIA. Branvin 45% alcohol. Branvin 36% alcohol. Years. Price per litre. Years. Price per litre. 1SS6-95 since 1895 2 kroner 2 „ 30 ore 1886-95 since 1895 I krone 45 ore I ,. 70 .. BERGEN. Branvin 45% alcohol. Branvin 39% alcohol. Y'ears. 1877-88 18S8-96 since 1896 Price per bottle ^-litre.^ j| Years I krone 25 ore I .. 35 .. I ,, 60 „ 1877-S8 1888-96 since 1896 Price per bottle f -litre.' o 90 krone 095 .. 120 An examination of the preceding tables shows that in Stockholm, Gothenburg, Christiania and Berc^en, either the price has been raised or the size of the dram has been reduced. In Gothenburg it will be 1 Although in Bergen the quotation is given as " per bottle of 3-litre," an extra charge of 10 ore is made if the buyer does not bring an empty bottle. SPIRIT DUTIES AND PRICES. 6i noticed that not only have there been many advances in price, but the alcohoHc strength of the spirit has been repeatedly reduced. Note. — The argument that the amount of duty greatly affects the consumption of spirits is corroborated by the comparative statistics of the European countries in which spirits are chiefly consumed. In Denmark, for example, the consumption of spirits is much higher than in any other European country, or indeed in any country for which statistics are available, while the duty is exceptionally low. We can hardly be wrong in suggesting a connexion between this enormous consumption and the low price at which spirits are sold consequent upon the very low rate of duty. The per capita consumption of spirits in several countries, together with the duty, shown as for an imperial proof gallon, is given below. For purposes of comparison these duties are all given in terms of 62 SPIRIT DUTIES AND PRICES. 50 per cent, alcohol, although in some cases the duty is levied upon a standard of 100 per cent, alcohol : — Country. Consumption of Spirits per head of population 1901.^ Amount Char of Duty ged. 50 per cent, alcohol. 50 per cen . alcohol. S. d. Denmark ... 3-21 5^ Belgium ... 2"20 3 7i Sweden 1-91 2 H German V I'Sg I 6 = Holland rSi = 4 9i France I '55 4 United States ... I -13 5 6 Russia i-oS* 3 10 United Kingdom i-oi II Norway 0-84 5 9 1 The latest year for which statistics are available. - Appro.xiraate. ^ 1900, the latest year for which statistics are available. * 1S9S, the latest year for which statistics are available. CHAPTER lY. Pauperism in Gothenburg. Mr. Walker writes (p. 30) : — " The fact which renders statistics of pauperism important is that the ' Gothenburg' Sj'stem was introduced as a remedy for patiperism, and not primarily as a cure for drunkenness. It was a reasonable supposition that, if the working classes were spending too much money on drink, it would be a great advantage if the State got the benefit of it and applied it to the amelioration of their lot. Yet when the 'Bolag' started in 1S66, there were in Gothenburg 68 paupers per 1,000 of the population ; in 1870 the numbers rose to 8g per 1,000; in 1875 to 94; and in 1879 to 97. In 1885 it sank to 90. After 1887 it is explained that not only actual paupers were included in the statistics, but also the dependants of all in receipt of relief, and for this reason the figures rose to 100 in 1S90 and 120 in 1892. In the United Kingdom there were in 1S70 40^ paupers per 1,000, including all outdoor and indoor paupers and their dependants ; the ratio fell in 1896 to 26; in 1S99 to 24"4," and in 1901 to 24." The statistics given in the above paragraph and in an accompanying chart are altogether wrong. Mr. Walker has counted the 1 The correct figure is 46-5. ' The correct figure is 265. See the Thirtieth Annual Report 0/ the Local Government Board, 1900- 1901, p. 360. 64 PAUPERISM. paupers in Gothenburg twice over. The " Mean Number of Paupers " which appears in the Annual Report of the EngHsh Local Government Board ^ is arrived at by adding together the numbers on the lirst day of July and the following first day of January, and dividing the number thus obtained by two. Of course if the two totals were added together the number would be doubled. Now this is exactly what Mr. Walker has done in the case of Gothenburg. Instead of taking the number of paupers upon a given day, or the mean of two separate counts, he has added together the totals of two counts and given the sum of these as the measure of the pauperism of the city. The detailed facts as to the pauperism in Gothenburg for the year 1892 (the last year for which Mr. Walker supplies figures) and for tlie quinquennial period ending with 1902, may be seen in the following figures, furnished by the superin- tendent of the Gothenburg v^orkhouse : — ^ Report lor 1901, p. 360. PAUPERISM. o ^; Ui H O O CO iSi W Oh P < a* fa o w pq t^ r^ O 1 TC 1 1- lO (^ o O O^ 1 o N vd ^h 1 ro O 1 •-• o> o „ -1- M 1 vo O O lo 1 13 M rr, T- VO r- VO t^ 1- -3 rrt "? ?« o o. "? ►H o " r<-) -" ro .-! H N O HI N N O 00 HI q\ C» Cl t^ M >o in N & N ro ro •^ 1 „ 00 o o 1 "3 IH t^ O »-« -r r^ "O vo N xi. N fO N o_ o_ rj- HI HI o M ro M H CO -1 ^ i o O C^ 1 ro ' ~< t-^ HI o £-- O t^ d o lO N o I o> M "-) t^ ro N o ■^ lO "rt M Ci • ro M " w •*• N O o_ ro M IH O H M fO "■ 1 IH ro "-> N HI 00 o OO t^ vo tv. 0» 00 6^ vo" lO m" 0\ M 1 00 Tj- 00 ro O M ro O N "3 i " HI M VO M ^-( ■^ N o N "? >-* N q "3;- HI N o H Ht ro M Ht ro M £-» ro -^ 1 -*• PO O HI Tl- 'i PO M Ol lO od vo" vO~ ro 00 HI o O O ^"~r M 00 ro %, 1 ■«« ro ' -H» w CO O o o '4- O N >-H iri p< ro ( O ■^ M VO O ►^' ro -■ 1 ro hT 1 H ■o t^ ro 1 "^ l^ VO O -^ 1 U-) vO_ 00 o_ { N «o -t- HI 1 o\ HI 00 in ro "T PO 1 lO H. O Kl 3 .M 00 00 00 ^ t^ t^ -f 1 o M N o 1 cn " ro O 1 i M ro " 1 ro 1 ^ ■4-> >, . C n li o 0) e o Cl. 3 3 O : fl a 3 n S-i s T7Z o cd O (U XI ;* . C c/ ■^ O jD > : SE >; v-< _ c 1 5 3 J rt rt rt ^- § i =^-2 3 3 3 C — '? ^ ;^ Ac ^ ►H,^ "3 "3 -3 Q2 , ^^ ' — J 5 ' — 1 H— 1 '""' -" a -fcj »^ -H. m .S tn « r/) en tn ■n t; ifl HI i-t t-i •-* c-t '-< *- ^ HI ro 1 s ? « X! 66 PAUPERISM. The true figures for the pauperism ot Gothenburg are to be obtained by taking the mean between the numbers on the ist January and the ist July, and adding to this mean number the whole (so we are advised) of the paupers who are described as " indoor but not in town workhouse." The corrected figures thus taken for 1892, and also for the last five years, are shown in the following table : — Year. Population of Gothenburg. Paupers. Number of Paupers per 1,000 of Population. 1892 106,356 5.924 5570' 189S 120,151 7,229 6o'i7 1899 122,370 6,914 56-50 1900 125,825 6,845 54'40 I9OI 128,977 6,846 53*o8 1902 130,702 7,042 53-88 Inaccurate as are Mr. Walker's figures, the fact nevertheless remains that the ratio of pauperism to population in Gothenburg is higher than in 1866, his figures for that year, 1 Mr. Walker gives the pauperism of Gothenburg in 1892 as 120 per 1,000 of the population. Even counting the paupers twice over the figure should be 104, not 120. PAUPERISM. 67 as for subsequent years, being incorrect. Mr. Walker assumes that the Company System is responsible for this. " Pauperism," he says, " under its influence has grown more prevalent." This generalisation of Mr. Walker's is, however, as untrustworthy as his figures. Obviously the right course to adopt in seeking an explanation for the growth of pauperism in any particular place is to ascertain whether its experience has been exceptional, or whether a similar increase has been taking place throughout the country. Especially was it necessary for the object in view to ascertain whether the increase in pauperism was to be found in the rural districts of Sweden which are not tmder the Company System hit under prohibition. If this decisive test had been applied, the assumption of a connexion between the Company System and the increase of pauperism would at once have been disproved. For, as will be seen in the accompanying table, there has been for a lengthened period in the rural districts, as well as in the towns of Sweden, a great and 68 PAUPERISM. progressive increase in the number of paupers, showing that influences making for pauperism have been in operation throughout the whole of the country : — Paupers in the Country Paupers in the Towns Year. Districts of Sweden of Sweden per per 1,000 of the Population. 1,000 of the Population. 1840 27-9 49-0 1845 27'3 50-5 1850 337 506 1855 38-3 50-2 i860 33*4 42-9 1865 33'3 548 1870 46"2 68-0 1875 40-5 66-4 1880 43"9 71*4 1885 43"3 667 1890 44"4 76-0 1895 43 '4 867 1896 427 82-4 1897 4i'6 77*9 1898 407 73-8 1899 40'o 69*2 1900 39"4 68-6 It would have been sufficient, as a refutation of Mr. Walker's contention that pauperism has grown under the influence of the Bolag, to bring forward these figures ; but as it is a matter of interest to know why the pauperism of Sweden has increased, we submitted the PAUPERISM. 69 question to Mr. Ernst Beckman, a member of the Swedish Parliament, who, having consulted the best authorities of the Royal Swedish Central Bureau of Statistics, has replied as follows, under date December 17th, 1902 : — " I have now consulted some persons who are our best authorities as to the causes of pauperism in Sweden. Their view of the matter corresponds with my own. ** I. — The Gothenburg System has notiiing whatever to do with the increase of pauperism in Sweden. " 2. — The increase between 1865 and 1870 is easily explained. The years just preceding the latter date were what we have termed ' the hunger years.' The crops failed in several districts and famine reigned in a great part of Norrland. The hard times caused a very large emigration of comparatively young people, breadwinners, to the United States of America. Old people were as a rule left behind, being 70 PAUPERISM. unwilling or unable to leave their homes. Much poverty, which had to be relieved by the rates, was the natural consequence of those fearfully hard times. The manufacture of alcoholic drinks went down from 15,438,647 kannor in 1866 to 10,183,527 kannor in 1868, rising again in 1870 to 15,710,312 kannor, which goes to prove that drink had nothing to do with the increase, at least not more than usual, being always a fruitful cause of misery. " 3. — Before 1874 the poor-law statistics are comparatively unreliable. In 1888 a circular requiring more accurate reports was issued. The result (which did not appear until a subsequent year) was an increase of 11,659 * paupers,' chiefly in Stockholm and Gothenburg. Now there is not, I believe, any country where the statistics as to pauperism and relief are, if I PAUPERISM. 71 may so express it, as severely detailed as in Sweden. For instance : if school children are given a cup of milk in school in winter and the expense is charged not to the school board but to the poor rates, they are statistically counted ' paupers ' (understodstagare). Also : if the father of a family of, say, wife and five children, is allowed a measure of firewood, there are immediately seven new ' paupers ' in the statistical tables. — The cause of the increase of the percentage of 'pauperism,' not dependent on greater exactness, but on real increase of the number of persons that fall on the rates, is to be looked for far back in time, as Mr. Gustav Sundbarg, the well-known statistician, has kindly pointed out to me. After the great wars in the beginning of last century, nature busied herself to fill the losses by increased nativity. The persons 72 PAUPERISM. born between, say, 1815 and 1820, were already past the age of emigra- tion when the great tide set in towards the latter part of the sixties. The greater part of them stayed in Sweden. The culmen in the percentage of 'pauperism' was reached in 1895. About the same time the number of persons about seventy years — when relief may be needed — was uncommonly large. Statistics show that the surplus of persons aged sixty-five (and more) — above the normal number — has mcreased immensely, from 20,310 persons in 1880 to 143,985 in 1899, an increase far above what might be expected from the growth of the population. " 5. — No doubt — as you suggest — a mistaken system of administration has its share in the pauperism existing in our country. I happen to know that in some of the wealthy Dalecarlian country districts, PAUPERISM. 73 where the immense forests belonging to the community give a large income, there are a great many paupers, because the people think that they can well afford to give relief. Whereas in other districts in the same province very poor communities have very few paupers. You will also find in a pamphlet which I send a table showing the very large decrease in Gefle^ owing to the introduction of the Elberfeld System — another proof that a change from one system to another can materially lessen pauperism. "6. — You will notice a general decrease in the percentage from 1895, both for towns and for country districts." ^ The figures of the pauperism in Gefle (a town which in 1890 had a population of 29,522) are as under : — Paupers per 1,000 of the Population. 1895 959 1896 95 6 1897 73-8 189S 599 1899 500 1900 456 74 PAUPERISM. But if the increased pauperism of Gothenburg cannot be attributed to the Gothenburg System, so neither can the lesscfied pauperism of Finland, a country in which the Gothenburg System prevails. In Finland we are told that *' the number of paupers in receipt of relief has decreased in eight years from 110,000 to 68,000, partly owing to reformed poor law administration, but largely owing to economic progress." ^ The effect of methods of administration upon the volume of pauperism is well known to every student of the subject. It has been strikingly illustrated in the history of our own country. Mr. Nassau W. Senior, in his chapter upon the English Poor Laws,^ writes: — In England "they [i.e., one section of the community] looked on while poor rates rose from ^^2, 004, 239 in 1785 to ;^6, 829,042 in 1830; they looked on while in 1 Finland, Its Public and Private Economy (1902), by N. C. Frederiksen, formerly Professor of Political Economy and Finance in the University of Copenhagen, p. 14. 2 Historical and Philosophical Essays, Vol. II., p. 85. PAUPERISM. 75 whole counties the rates equalled a third of the remaining rental — while estates were abandoned, and whole parishes were on the point of being thrown up, without capital or occupier, to the poor." "We firmly believe," Mr. Senior says, " that, if the remedy [i.e., the Poor Law Reform Act of 1834] had been delayed, even for a few years, . . . calamities would have fallen on a large portion of England such as no free country, unassailed by a foreign or a domestic enemy, has ever endured." The statistics of pauperism at different dates are not conclusive evidence of the growth or diminution of poverty, as is shown in the article on Poor Laws in the recent supplementary volume of the Encyclopcedia Britannica (Vol. XXXI., p. 835), from which we extract the following : — " Both in town and country, since 1875, a few Boards have practically discontinued to give outdoor relief— that is, relief to paupers at their own homes. Other Boards have continued to give it lavishly. Between the two extremes almost every variety is to be found. The following 76 PAUPERISM. table will illustrate the position. The figures are taken from the summer returns (a period less afifected by weather conditions), at a date previous to the change of policy which arose from the above-mentioned discussions of 1869 and from returns for 1899. For this comparison Unions in proximity have been chosen : — Two Town Unions. Name of Union. Date. Whitechapel (East London) .. St. Olave's (South London) (July ist, 1870 tjuly ist, 1899 (July ist, 1870 Ijuly 1st, 1899 Number of Number of Indoor Outdoor Paupers, Paupers, less less Total. Vagrants Vagrants and and Lunatics. Lunatics. 974 3.236 4,210 1,162 26 1,188 1.320 3.548 4,868 2,278 4,120 6.398 Proportion of Paupers to Population at last Census. One Pauper to every 62 Two Country Unions. Name of Union. Date. Number of Indoor Paupers, less Vagrants and Lunatics. Number of Outdoor Paupers, less Vagrants and Lunatics. Total. Proportion of Paupers to Population at last Census. Bradfield (Berks)... Bradfield (Berks)... Hungerford (Berks) Hungerford and Ramsbury (Berks) July ist, 1870 July ist, 1899 July ist, 1870 July ist, 1899 152 104 109 61 807 17 1,049 395 959 121 1,158 456 One Pauper to every 16 140 17 39 PAUPERISM. 77 The table shows that in Bradfield there was in 1870 one pauper to every 16 of the population, but in 1899 one to 140 of the population ; that is, pauperism had declined in the thirty years almost in the ratio of from 9 to I. It need not be said that no corresponding change in the conditions of poverty had taken place in the same time. Whatever may be the true explanation of the growth of pauperism in Gothenburg, the essential point to note is that since 1866 the general condition of the working classes of the city has improved. Dr. Wieselgren, than whom there is probably no higher authority, writes (loth January, 1903) : — " The condition of the working people is better now than at the time the Company System was introduced in Gothenburg. The workmen, their wives and children, are better housed, fed and clad now than then.'' CHAPTER V. The Menace to Municipal and Political Life. IN a former volume ^ the present writers laid emphasis upon the danger to municipal and political life which results from a system of private licence, and pointed out how, so far as the spirit trade is concerned, this danger had been destroyed in Scandinavia. Mr. Walker, in The Commonwealth as Publican, seeks to minimise this danger, and suggests that the political influence of the liquor trade is comparatively unimportant. He further contends that the absence of a Trade menace in Scandinavia is due to causes other than the influence of the controlling system. In 1 The Temperance Pyoblem and Social Reform. THE MENACE OF THE TRADE. 79 depreciating tlie political influence of the liquor trade in this country he says : — " The best test of the political influence and strength of any faction is the amount of legislation the}' have succeeded in getting passed in their favour. For instance, agri- cultural tenants, Scottish crofters, miners, trades unionists, and shop assistants have one after the other got their respective grievances removed. So far as the licensed trade are concerned, they have not one favourable Act in the Statute Book as a trophy of their prowess." Mr. Walker overlooks the real " trophy of their prowess." It consists in the Trade having been able to stave off any considerable measure of reform for a period of thirty years. In 1871 Mr. Bruce, on behalf of the Government of the day, brought forward a comprehensive measure of licensing reform which even then was felt to be urgently needed. That Bill, strongly opposed by the Trade, was withdrawn, and in the years that have intervened since 1872 only Acts of comparatively small importance have been passed, although, to quote from the Majority 8o THE MENACE OF THE TRADE. Report of the Royal Commission on Liquor Licensing Laws (iSgg), "it is undeniable that a gigantic evil remains to be remedied, and hardly any sacrifice would be too great which would result in a marked diminution of this national degradation." The extent to which the liquor trade in this country is organised, and the means by which it makes that organisation effective in political affairs, were fully set forth in The Temperance Problem and Social Reform; but, in view of Mr. Walker's extraordinary suggestion, it may be well at this point to repeat some of the evidence. No secrecy is maintained as to either the aims or methods of the Trade, as will be seen by the following extracts from an article on "Trade Electoral Organisation," which appears in the Brewers' Almanack for 1894 (pp. 161-65), signed by the Manager of the National Trade Defence Fund : " After a period of lamentable inactivity, the Trade realised the necessity of THE MENACE OF THE TRADE. 8i self-organisation for electoral purposes, and for the past few years has been actively engaged in forming itself into a strong and compact non-political body for the most practical of all objects — self-defence." Then, referring to the introduction of the Liquor Traffic (Local Control) Bill in March, 1893, the writer proceeds : *' Fortunately for the Trade, this declaration of war did not find them unprepared. Their leaders had seen the necessity for organisation for electoral purposes as distinct from former antiquated combina- tions for social intercourse and protection as traders. Meetings had been held, funds had been collected, officers had been elected, and a policy framed — nothing was wanted to unite the Trade but an outward and visible foe, who made his appearance in the Chancellor of the Exchequer." " The Direct Veto was met by the only answer the Trade could give, a direct No ; and the opportunity arrived of putting to 82 THE MENACE OF THE TRADE. practical test the value of our improved organisation, of which we had had a satisfactory trial at the General Election (of 1892)." " Organisation is the process of forming instruments of action. When the time for action arrives, those instruments should be ready ; the organiser therefore must not remain inactive until that time comes. . ." "No amount of 'paper' organisation from a central office will be of any practical use unless the local instruments are to hand, and prepared to act. . ." " Our one object is to return, by all legitimate means, regardless of politics, to the House of Commons and other administrative bodies, candidates favourable to Trade interests. . ." " When the Trade fully realises its political possibilities in a state of efficient organisation, it will become a power in the State.'' THE MENACE OF THE TRADE. 83 The entire article powerfully suggests the operations of an elaborate political organisation, directed by qualified leaders/ working through the agency of more than 126,000 "on" licensed houses, and supplied with unlimited funds. ^ The significance of the whole is summed up in the passage already quoted. " No amount of ' paper ' organisation from a central office will be of any practical use unless the Local instruments are to hand and prepared to work." The proposition may appear to be self-evident, but its real importance and bearing upon practical legislation has been strangely overlooked. We shall have 1 The Licensing World of July 12, 1895, referring to the General Election Campaign of that year, says : " The Board [of the Licensed Victuallers' Central Protection Society of London] has at its command at this moment a great number of assistants specially skilled in every department of activity now called for, and these men are simply working night and day. The Chairman, Secretary, and the principal members of the Executive — the very cream of the elected leaders of the Trade — are daily, we may say almost hourly, in consultation, directing the work of the vast organisation under their command, and applying the forces of the Trade with what we believe will prove to be unerring skill." 2 " Mr. Bass told the world that for every pound put down by the Alliance, he and his friends would put down a hundred." — Sir George O. Trevelyan. Speech delivered at Edinburgh, November 28, 1875. 84 THE MENACE OF THE TRADE. occasion to refer to the point further on. Here it will suffice to show how numerous and effective the "local instruments" are. The following figures give the total number of premises licensed to sell by retail in the United Kingdom, April ist, igoi : — England and Wales. Scotland. Ireland. Total. *'0n" Licensed Premises ... "Oflf" Licensed Premises ... -101,664 21,334 7.4II 4,132 17,780 1,388 126,855 26,854 122,998 11,543 19,168 153,709 In considering these figures, it is to be remembered that each of the " on " licensed houses — to say nothing of the "off" licensed houses — will have its own circle of customers, a certain proportion of whom will unquestionably be influenced by the proprietor. The " local instru- ment " which the organisers of the Trade THE MENACE OF THE TRADE. 85 desire is thus ready to their hand in a singularly efficient form. The publican, like all other tradesmen, wishing to sell as much as he can, will energetically resist the candidature of men who would seek to restrict the national consumption. How this vast influence is exercised in Parliamentary elections will be familiar to the reader. The rival candidates are catechised upon their position in regard to the Trade, and, irrespective of whatever national questions may be at stake, the Trade influence is cast on the side of the candidate whose answers are deemed the most satisfactory. Under these circumstances it was perhaps inevitable that the support of the Trade should eventually be given to one of the great parties in the State. And such has been the case. The Brewers' Almanack has, in each yearly issue, a full list of the Members of Parliament, with their attitude 86 THE MENACE OF THE TRADE. to the Trade indicated by the words " Favourable," '' Against," " Doubtful." Turning to the Almanack for 1896 — the issue next following the General Election of 1895 — we find that, of the Conservative and Unionist Members, 388 are marked as " Favourable," 9 as " Against," and 13 as " Doubtful." If Great Britain alone is taken, there is only one Conservative or Unionist Member marked as " Against." The sharpness of the line of cleavage between the two Parliamentary parties upon this question is further shown by the fact that of the Liberal members, 172 are marked as " Against," only 5 as " Favourable," and 2 as " Doubtful." It would be a serious mistake to conclude from these figures that the entire Conservative party in the con- stituencies is hostile to licensing reform. Many of its members deplore that the supposed exigencies of party warfare should have ranged their representatives in THE MENACE OF THE TRADE. 87 support of the Trade. Not only do many Conservatives give laborious service in personal Temperance effort, but cordially support the far-reaching legislative proposals of the Church of England Temperance Society. The frank recog- nition of these facts heightens, however, our sense of the menace exercised by the Trade. It has not only been able to impose its demands upon the repre- sentatives of a great party, but it has done so notwithstanding the existence within that party of a considerable body of opinion hostile to such demands. The Menace a Continuous Factor in Political Life. Mr. Walker, however, seeks to avoid the weight of this evidence by suggesting that the political power of the Trade has only been seriously exercised in relation to one measure — Sir William Harcourt's Local Veto Bill. " In any case," he says, (p. 41) "this political power 88 THE MENACE OF THE TRADE. was only exhibited on this one occasion, and does not seem to have been seriously felt either before or since." Those who mix in politics will smile at this suggestion, and it is strange that it should be put forward in the face of overwhelming evidence to the contrary. The organisation of the Trade has, it is true, been perfected only within a comparatively recent period, but its political influence has been exercised against numerous legislative proposals over a long series of years. On July gth, 1862, Mr. W. E. Forster moved the second reading of a Bill to extend the principle of the Tippling Act to the sale of beer. The Bill contained only one clause, and provided that no debt for wine, beer, cider or perry could be recovered " unless such debt shall have really been and hona-fide contracted at one time to the amount of 20s. or upwards." On July 1 2th, a Trade journal. The Morning Advertiser^ published a letter, signed *'A Looker On," urging the editor to exert his " powerful influence to prevent the further progress of THE MENACE OF THE TRADE. 89 this obnoxious measure." In an editorial on the letter, The Morning Advertiser said : — " Unless the Trade meet at once and organize an opposition to it [the Bill], it is just possible that it may creep through the lyCgislature. It therefore behoves all who will be affected by the Bill to meet without an hour's delay, with the view of checking its further progress. A prompt and energetic opposition will ensure the rejection of the Bill." The opposition of the Trade was successful; the Bill, which secured a second reading by a small majority, being subsequently withdrawn. Alluding to this victory in an article on the Licensed Victuallers' Protection Society, The Morning Advertiser said (July 17th, 1862) : — "We cannot, however, permit the present opportunity to pass without pointing to the fact, in support of our opinion as regards the useful efforts of the Society in stemming the tide of rash legislation, that it has succeeded within the last eight and forty hours in defeating Mr. Forster's Bill relating to the sale of beer, wine, etc. ... It is true that as regards the Bill in question it may be said that 'the snake is not killed but only scotched,' as we are already threatened with a renewal of the measure ... in the course of the next session ; but although this is so, the rejection go THE MENACE OF THE TRADE. of the measure at the present moment will aflford to the parties interested an opportunity of marshalling their forces for future action ; and we have no doubt but that the Protection Society, aided by the Country Trade, . . . will be in a position to fight the battle in which they may be engaged, in respect to the particular question under consideration, with energy, and, we have every reason to believe, with success." The nature of the "energy" which was to be employed to prevent the re-introduction of the Bill was fully disclosed in another article^ in a Trade journal, in which the Government of the day were denounced for having supported the measure, and the licensed victuallers were called upon to use their influence against them at the next general election. The writer said : — " Here will come in for useful purposes that division list which we published three weeks ago. In the event of a general election it will be the duty of every licensed victualler when applied to for his vote to extract a pledge from the candidate with regard to legislation on licensed victuallers' matters. This pledge will be readily given when required by such a body at such a time." 1 Quoted by Sir W. Lawson in the House of Commons, June 8th, 1864. THE MENACE OF THE TRADE. 91 Sir W. Lawson, after quoting the fore- going added : " this article went on to say that this being the pohcy of the Government, the hcensed victuallers would, as they had done on previous occasions, show that as a body they were, politically speaking, the most powerful in the country. The extract then went on to state that . . . when Lord Palmerston was forced to appeal to the country, then would have come the opportunity of the licensed victuallers of England, in whose hands it would be whether he should be able to retain office or not." ^ An even more frank acknowledgment of the deliberate interference of the Trade in political elections was made a few years later by Mr. George Caudelet, Parliamentary Agent of the National Licensed Victuallers' Defence League, in a letter which he wrote to The Times on April 17th, 1880, explaining the reasons which led the Trade to abstain from actively opposing Liberal candidates at the 1 Hansard, 3 Series, Vol. 175, p. 1392. 92 THE MENACE OF THE TRADE. general election in that year. The letter needs no comment : — " To the Editor of The Times. "Sir, "Perhaps a'ou will be good enough to allow me a portion of your space to make a few passing explanatory and suggestive remarks on the action of the Trade during the recent elections, as various reports are afloat relating to the course pursued in 1880 compared with 1874. "Shortly before the recent dissolution a letter was addressed to me by the Right Hon. B. KnatchbuU-Hugessen, M.P., who, no matter whether in or out of ofiice, has always been disposed to advocate justice being dealt out to us fairly. This letter earnestly advised the Licensed Victuallers generall}- to avoid a Trade combination against Liberal candidates and to vote according to their political convictions. " This document, I need scarcely say, was considerately received, as advice from a friend. The reasoning of the right hon. gentleman, it is only right to say, was clear and intelligible, and was widely circulated among many constituencies, and, from my own personal knowledge, was accepted and acted upon, with few exceptions, to the advantage of the Liberal candidates. "We are therefore in hope generally the Liberal party will, during their coming term of power, avoid extreme and hostile legislation of THE MENACE OF THE TRADE. 93 such a character as that which was resorted to prior to 1874. If an attitude of moderation is manifested by the new Government towards the Trade, I venture to hope the day is not far distant when the rule of acting at future elections in a combined form will become exceptional. The rash and violent attacks which have hitherto been made upon this Trade have, from my long experience, caused the Trade at past elections to do that from necessity which was not a matter of choice, considering the interests involved. I therefore venture to hope that the moderation which Mr. Hugessen has successfully encouraged may be strength- ened, so that the Licensed Victuallers and Beersellers may learn to feel that the}' have friends on both sides of the House of Commons. " Yours faithfully, (Signed) " george caudelet, Par. Agent, " National L/. V. Defence I- means of a monthly gazette such political. Parliamentary, and financial information as they should be interested to receive ; to provide machinery for I02 THE MENACE OF THE TRADE. rapidly obtaining signatures to petitions to Parliament in any sudden political emergency ; and, at bye-elections especiallj', to invite its members to join the licensed trade in watching and dealing with the pledges exacted from Parliamentary candidates. The political in flu rnce of the Associatioji will lie in the fact, which I desire to emphasize^ that it is not a7i offshoot or adju7ict of the National Trade Defence, but an ally workiftg alongside. . . . " The temptation to Members of Parliament to support the minor proposals of temperance reformers is reall}' a very strong one. Every candidate, after refusing to vote for local option, is accustomed to add, amid renewed applause, that he is not averse to moderate and reasonable temperance reform ; and nobody can take exception to this laudable generality. It is, therefore, gratifying if, at the end of any Session, he is able to point proudly to some vote he has given as evidence that he is in earnest. In most constituencies the zealous and acrimonious teetotallers outnumber the electors who are actively engaged in the trade. But if the shareholders ivere organised and instructed there would be a body of opinion and voting streyigth which no candidate could afford to despise. It has indeed bee?i calculated that the average number of holders of brewery shares in a Parliamentary division exceeds the average phirality of votes at a contested election . . . " ' 1 The article concludes as follows : — " The directors of the following companies have alreaxiy showed practical interest in the movement by sendinfj donations to the organisation fund :■ — Messrs. Bass, Ratclift and Gretton, Limited, Burton ; Ind, Coope & Co., Limited, THE MENACE OF THE TRADE. 103 The Menace in the United States. The political influence of the Liquor Trade is not, however, confined to this country. It exists in a dangerous form in the United States, both in the Prohibition States and in those under High Licence. In the former, the chances of destroying a Prohibition regime are so great that extra- ordinary efforts are put forth to prevent the re-election of a sheriff who has sought to enforce the law. " The liquor traffic, being very profitable, has been able, when attacked by prohibitory Burton and Romford ; Peter Walker & Sons, Limited, Warrington and Burton ; Warwicks & Richardsons, Limited, Newark-on-Trent ; M. B. Foster & Sons, Limited, London ; Bristol Brewery (Georges & Co.), Limited, Bristol ; Ashby's Brewery, Limited, Staines; Mew (W. B.), Langton and Co., Limited, Isle of Wight ; Walker & Sons, Limited, Gravesend ; Yates's Castle Brewery, Limited, Manchester ; J Sharman & Sons, Limited, Bolton ; Buckley's Brewery, Limited, Llanelly ; Hull Brewery Company, Limited, Hull ; Tamplin & Sons, Limited, Brighton ; Braime's Tadcaster Breweries, Limited, Leeds ; Farnham United Breweries, Limited, Farnham ; Daniell & Sons' Breweries, Limited, Colchester ; Joule & Sons, Limited, Stone ; Maryport Brewery, Limited, Maryport ; Stretton's Derby Brewery, Limited, Derby ; and Forest Hill Brewery Company, Limited, London, S.E. "Many other firms have promised financial support. In due course the committee will proceed to canvass individually the shareholders, whose personal adherence will constitute the real strength of the Association. A scheme by which the country will be divided into districts, each with a local secretary and a local committee, is in preparation." I04 THE MENACE OF THE TRADE. legislation, to pay fines, bribes, hush money, and assessments for political purposes to large amounts. This money has tended to corrupt the lower courts, the police adminis- tration, political organisations, and even the electorate itself. Wherever the voting force of the liquor traffic and its allies is considerable, candidates for office and office- holders are tempted to serve a dangerous trade interest, which is often in antagonism to the public interest. Frequent yielding to this temptation causes general degeneration in public life, breeds contempt for the public service, and, of course, makes the service less desirable for upright men."^ Under High Licence, whether in New York, Chicago, Philadelphia, or elsewhere, the liquor saloon is the powerful instrument of political corruption. A writer in The Atlantic Monthly'^ says: " To think of political reform with the 1 Tht Liquor Problem in its Ltgislativc Aspects. Bv the " Cnmmiuee of Fifty." '-'G. F. Parsons, The Saloon in Politics. THE MENACE OF THE TRADE. 105 influence of the saloon in politics what it is seems almost fatuous. To discuss the subject of political reform without takin^^ this weighty factor into consideration seems almost puerile. To belittle the importance of the saloon is most dan^^jerous. To essay compromise with it is a fatal mistake. In the nature of the case it must be eliminated, or it must dominate everything. Full freedom having been accorded it thus far, it has made a long stride toward dominion. Even among those who clearly recognise the perils of the situation, it has become an axiomatic statement that it is useless to oppose the saloon in the cities." Elimination or the Menace in Scandinavia. When, however, we turn to Scandinavia, an altogether different condition of things is found. Dr. E. R. L. Gould, the Special Commissioner of the United States Labour Department, wTites : — " A conspicuous merit is the complete di\-orcing of the liquor traffic from politics. io6 THE MENACE OF THE TRADE. In these countries the ehmination of the liquor element as a political power is complete." And again : " In Norway every vestige and semblance of political influence is eliminated. Indeed, to my mind, this absolute separation which has been practically effected between liquor and politics is a conspicuous merit." Similar evidence is given by Mr. John Koren, the Commissioner appointed by the State Legislature of Massachusetts to inquire upon the spot into the working of the Gothenburg System. In summing up the advantages to be derived from the Company System as "exemplified by the manner of its application in Norway," he says : " Drink- selling will be divorced from politics, [it] can no longer serve as an instrument of corruption, and one of the greatest obstacles to all social reform may thus be overcome."^ The evidence of Mr. Lars O. Jensen, Right Worthy Grand Templar for Norway, 1 Report on the Norwegian System, furnished to the Common- wealth of Massachusetts by Mr. John Koren, p. i66. THE MENACE OF THE TRADE. 107 is to the same effect. Speaking at the International Alcoholic Congress at the Hague, in 1893, Mr. Jensen said : *' It [the Samlag System] hinders the formation of an organised liquor party ; because the money derived from the traffic is used for charitable institutions and for the public benefit, and does not go to the liquor-dealers." Mr. M. G. Blomquist, of Stockholm, addressing the same Congress, gave similar testimony. Alluding to Sunday closing and the shortening of hours of sale, he said : — " But these legislative reforms have been possible by the introduction of the Gothenburg System in Sweden, because the publicans no longer have the slightest injluence in the political life of Sweden.'''^ 1 These statements must be received with one important qualification. As will be shown later on, it is the ipirit traffic that has been divorced from politics, not the traffic in beer. The distiller has no "local instruments" through whom to work, but the brewer has thousands of such "instruments." Therefore, whilst the political power of the distiller is a thing of the past, that of the brewer remains intact. One is continually reminded of this when travelling in Scandinavia. The necessity of bringing beer under company control is admitted on all hands; but when inquiry is made whether legislation in this direction is likely to be passed, one is told that the brewers are very wealthy and very powerful, and the change can only come after a fierce struggle. io8 THE MENACE OF THE TRADE. It seems impossible to misread the significance of these facts. In Great Britain and Ireland the influence of the Trade is primarily exerted through the holders of "on" licences, who are " local instruments " of singular efficiency. Deprived of these "local instruments," the brewers and distillers would lose most of their electoral force — they would be in a position analogous to that of a Parliamentary candidate without a body of active workers. The legitimate influence of the Trade through public meetings and the press would remain, but that which makes it so portentous and threatening a power in the State would have ceased to exist. Mr. Chamberlain was one of the first to see this. Addressing the House of Commons on March 13, 1877, in support of his Resolution for the municipalisation of the retail drink trade, he pointed out that '* Success would at least exclude from our political life the baleful influence of a gigantic vested interest, whose tyranny and whose insolence must be THE MENACP: of THI: T1>:ADE. log as repugnant to those who could profit by it as it was to those who were suffering from its opposition." The same view is expressed in Lord Peel's Report, where it is stated that " The ehmination of private profits could not fail to be of public benefit, both directly and by diminishing the obstacles to temperance reform. The evils of the tied-house system would vanish, and with it much of the disturbing influence of the drink question in local politics." ^ Under the Company System there are no " local instruments." The managers of the Company's shops are not dependent upon any 1 Hansard, \o\. 232, pp. 1S72-3. '■* Minority Report of the Royal Commission on Liquor Licensing Laws, p. 279. Thtt testimonj^ of influential leaders of the Temperance movement in this country is equally explicit. Mr. T. P. Whittaker, M.P., in the Memorandum which he published as an Addendum to the Minority Report of the Royal Commission on Liquor Licensing Laws, stated (p. 325) that " The disappearance of the publican as an element in municipal and Imperial politics, which works solely in the interest of its own personal ends — ends which can only be achieved at the cost of the degradation of the people — woul 1 b.- an enormous j^ain to the fiurity, independence and efficiency of public life, and would very creatly facilitate the more stringent and effective limitation of the sale of drink by the people in iheir respective localities." no THE MENACE OF THE TRADE. brewer, nor are their interests at all bound up with the Trade. The interest of a bar manager, both in Sweden and in Norway, is to stand well with his committee ; and if a manager ever did attempt to influence an elector, he would run the risk of immediate dismissal. The Struggle with the Distillers IN Sweden. What then is the reply that Mr. Walker gives to evidence so clear and decisive as that which has now been adduced as to the divorce between the spirit trade and politics in Scandinavia ? He attempts to meet the point thus : — "To secure a divorce, we must first have an alliance. Yet from end to end of their (Messrs. Rowntree and Sherwell's) valuable work we do not find a single example of the traflBc being connected with politics in Norway and Sweden ; and, although in some of the less well-informed works such statements have been made, little or no evidence has been given in support of it. In neither Norway nor Sweden has there ever been that keen interest in party politics so characteristic of the Anglo-Saxon race." THE MENACE OF THE TRADE, iii It is true that in The Teinperance Problem and Social Reform we did not give any illustration of the alliance which formerly existed between politics and the liquor traffic in Scandinavia, for the reason that no illustration appeared to be necessary. The fierce national campaign extending over fifteen years, from 1870 to 1885, in which the Swedish distillers, led by the " brandy king," Lars Olssen Smith, sought to bring about the repeal of clauses which embodied some of the most important principles of the epoch-making law of 1855, excited widespread attention and is matter of history. A sketch of this great struggle, with its varied and dramatic incidents (abbreviated from the writings of Dr. Sigfrid Wieselgren), is given in that quarry of information which no student of the Company System can afford to neglect — Dr. E. R. L. Gould's Report on the Gothenburg System of Liquor Traffic, prepared under the direction of the Government of Washington, and presented in 1893. A more detailed 112 THE MENACE OF THE TRADE. account is to be found in a series of five articles contributed to Tlic Temperance Record by Dr. Wieselgren, in February and March, 1886. The rise of the menace in Sweden, the date of its appearance, and the circumstances which called it into existence can be clearly seen. In 1829, distillation was de facto free in Sweden. The population in that year was about 2,850,000, and the number of stills paying licence fees was 173,124. This would give one still to every three or four families. Under these conditions there could be no political menace exercised by the Trade, as the consumers of spirits were so largely its manufacturers. The legislation of 1855, however, transformed the home distillation of spirits into a strictly- controlled manufacture, and placed its sale for both "on" and "off" consumption under the restriction of a special law. With the suppression of home distillation, the licensed THE MENACE OF THE TRADE. 113 houses became the sole channels through which the national demand for spirits could be met. Those interested in the liquor traffic who acquired these licences rapidly grew in wealth and political power, so that in 1870, when " the fifteen years' life and death struggle commenced," the Trade had become a potent political force. The distiller and the publican were in close association, as the latter was very often financed by the former. ^ The sale at this time was centred in the towns,^ but now this sale was threatened by the formation of controlling companies. If these were allowed to become firmly established, the distillers felt that their trade would seriously suffer. So far, Stockholm had not adopted the system,^ and of the six largest towns of Sweden, only Gothenburg 1 Letter from Dr. Wieselgren to the present writers. 2 It will be remembered that under the operation of the Act of January, 1855, most of the public-houses in the rural districts had been closed. ^ Stockholm did not adopt the controlling system till 1877. 114 THE MENACE OF THE TRADE. had as yet established a controHing company. Before it was too late then this system must be crushed. The struggle for this end was conducted under the leadership of Lars Olssen Smith with extraordinary vigour and tactical resource. To the agricultural interest he said in effect, " You are not fairly dealt with. The towns benefit at your expense. They receive too large a share of the fees for both the ' on ' and ' off ' licences considering that much custom comes to them from the adjoining country districts. Moreover, the towns which have adopted this new Gothenburg System make a great profit upon the sale of spirits, and almost all these profits are retained by the towns. This injustice should be remedied, and it can best be done by abolishing the licence fees altogether, making a corresponding increase in the excise duty levied by the State upon the manufacture of spirits. With this increased revenue it will be possible to abolish the land taxes which press upon the agricultural THE MENACE OF THE TRADE. 115 districts." This argument appeared so reasonable and appealed to such powerful interests that it received great support. The real object of the policy thus advocated by Olssen Smith is not at once apparent to the English reader, nor does he immediately see why the chief point at issue had from the first been that of the proposed combination of the taxes. Its inner meaning is to be found in the proposal to abolish the licence fees. If the licence fees were abolished, it was believed that the sale of spirits would become free, subject only to the approval of the seller by the authorities. This free sale would not only destroy the controlling companies but it would lead to greatly increased trade. Nor did Olssen Smith make his appeal to the agricultural interest only. To the artizan classes he held out the bait that the destruction of the controlling companies would result in cheap brandy. He even sought, and to some extent obtained, the support of Temperance societies, ii6 THE MENACE OF THE TRADE. by representing to them that the Bolags were mere money-making schemes. At times the issue of this conflict appeared to hang in the balance, and up to 1883 or 1884, Olssen Smith seems to have anticipated success. Speaking of the Gothenburg System in one of the late years of the struggle, he is reported to have said, " Next year we hope to have it abolished all over Sweden." That this did not happen, and that the essential principles of the law of 1855 were maintained, was owing largely to the firmness of her King (Oscar H.). The Diet of 1877 had asked the Government to frame a new liquor law, but the King and the Minister of Finance delayed doing so until the agitation led by the "brandy king" against the law of 1855 had almost spent itself. On February 25th, 1885, however, the Prime Minister laid the Bill before the King at a cabinet meeting. The Prime Minister gave it as hi? decided opinion that the principles on which the existing law was founded had so THE MENACE OF THE TRADE. 117 completely gained the confidence of the Swedish people, and proved themselves so efficient in promoting their welfare, that it would by no means be advisable to abandon them. The new Bill contained a series of excellent provisions in the interests of Temperance. Referring to the controlling companies, the Prime Minister said : " I am convinced that those companies, if properly administered, will prove the most effectual means of promoting order in the brandy traffic, and it is only by their means that the trade can be carried on in such a manner as not to encourage an increased consumption of spirits. It stands to reason that when a private individual engages in the brandy trade, as well as in any other, his interests will induce him to sell as much as he can ; whereas the companies, if they properly fulfil their mission — and happily our country can boast of many such — need never be influenced by selfish motives. Therefore the law ought to ii8 THE MENACE OF THE TRADE. be framed so as to offer a decided encouragement to the system of controlling companies." The Cabinet accepted the proposal of the Minister, and it was sanctioned by the King. The propositions were then submitted to the Diet, and, with some modifications, one of which referred to the proposed distribution of the brandy revenue, were adopted. Nothing more was heard of the virulent attacks on the Gothenburg System. Without one dissenting voice the Diet accepted the Government proposition, by which a decided encourage- ment of the system of controlling companies was introduced into the Act, which at the same time widened the sphere of the companies' activity.^ Thus, with almost dramatic suddenness, the baneful political power of the distiller passed from the national life of Sweden. The shops for retail sale, which in other countries are the real centres of trade * Dr. E. R. L. Gould. Report on the Gothenburg System of Liquor Traffic. THE MENACE OF THE TRADE. 119 influence and the instruments through which the electorate can be powerfully worked upon, were no longer in private hands. The hope- lessness of further struggle was recognised, and from 1885 to the present time the political power of the distiller has been practically non-existent in Sweden. The Power of the Brewers. It remains, however, to be pointed out that, although the political- power of the distiller is, in Scandinavia, a thing of the past, the power of the brewer remains intact. In support of this latter statement the following information, contained in a letter from Dr. Sigfrid Wieselgren to the present writers, dated August 21st, 1902, may be given : — "As for the connexion of brewers with politics I need only refer to the fact that the Government has appointed two com- mittees on the taxation of beer, without the investigations and proposals of the I20 THE MENACE OF THE TRADE. committees leading to any results. A third committee has been appointed this year, I wonder with what results ? The first committee, of which I was a member, had its conferences in 1881. Thus, during twenty- one years the brewing interest has succeeded in preventing the taxation of malt liquors, which temperance reformers regard as being of great importance, especially from the point of view of the stricter control on the sale of these drinks which would be made possible in this way." Dr. Wieselgren informs us that at his suggestion a conference of organised Tem- perance workers was held this year, which, inter alia, unanimously passed a resolution in favour of placing malt liquors under the restrictions of the Gothenburg System. Dr. Wieselgren adds that, as president of the conference, he handed over the resolutions of the conference to the Minister of Finance, " and soon after, the third committee, above referred to, was appointed. ... A new Cabinet has since THE MENACE OF THE TRADE. 121 been formed, and we do not yet know whether the present Government is in favour of our opinions, or whether the power of ' the brewers' union ' shall again become predominant. Owing to their good connexions with poUticians both in the press and the Diet, the representatives of the brewing industry have hitherto proved to be very hard adversaries. They do all they can to prevent the bringing of beer under Company control. In the election now going on their influence can be clearly traced." In Norway the conditions are closely similar. Referring to the present state of things in that country, Mr. Berner, of Christiania, writes us (30th April, 1902) : " I regret to say that the efforts of the Temperance men to have the law of 1894 extended to all intoxicating drinks (beer and wine) have not as yet succeeded. The brewers, in fact, own most of the houses in which the beer and wine licences are exercised, or tliey lend the licensed 122 THE MENACE OF THE TRADE. shop-holders the necessary capital with which to exercise their trade ; so far, many are interested in raising opposition to the extension of the law to beer and wine." Mr. Sven Aarrestad, the leader of the Temperance party in the Norwegian Storthing and in the country, refers in the following terms to the aggressive action and growing power of the brewers : — ^ "As to beer, monopolising must present itself as desirable. It appears that the breweries more and more gather within their sweep, and get under their control, both hotels, inns, and restaurants, and all kinds of places of public entertainment, in order to have the greatest possible power over all the channels through which beer can flow to the public. In the greater towns, especially, it has come to this, that the breweries stand behind most of the businesses where beer is sold or drunk. The nominal owner is only a man of straw acting 1 Minority Report of the Committee of Revision, drawn up by Mr. Aarrestad, and bearing date March ist, 1898. THE MENACE OF THE TRADE. 123 for the brewery. The brewery furnishes the premises, pays the rent, and supplies the necessary capital to start the business — if the man of straw can only get the licence. As to the rural districts, it is not a rare case that breweries in the towns are the real owners of tourist hotels, sanatoria, and such places, for which licences are asked. The breweries are businesses with very great capital, and as there are comparatively few of them, they can easily form a ' ring,' and there is already such a combination. How this ' ring ' might act in certain contingencies is clear from various indications — among others, from a statement which has not been contradicted, that all the breweries have agreed not to furnish beer to the Samlags as cheaply as to private dealers, and this of course in order, if possible, to prevent the sale of beer being monopolised by the Samlags." The point which it is here important to observe is that this aggressive action of the 124 THE MENACE OF THE TRADE. brewers, as also their political power, would be practically destroyed if the whole of the retail sale of beer throughout the country were placed under Company control. The political power of the distiller has in Norway, as in Sweden, been eliminated by placing the whole of the retail sale of spirits under Company control, and a corresponding result would follow in the case of the brewers if the sale of beer were similarly treated. The establishment of a few beer Samlags here and there is ineffectual towards this end. The Power of the Brewery Shareholder. It has, however, been urged that, while the Company System, by eliminating the private publican, would necessarily bring the political influence of the public-house to an end, it would leave the influence of the share and debenture holder in unabated strength. This view is, however, based upon an inadequate conception of the altered conditions that would obtain were the Company System THE MENACE OF THE TRADE. 125 once firmly established in this country. The estabhshment of the Company System (as distinguished from the various private Trust Companies which are so rapidly springing up in all parts of the United Kingdom) pre-supposes that the question of compensation has been finally disposed of. The other questions upon which the Trade now take a great interest are restrictive measures dealing with the reduction of the number of public-houses, the hours of closing, the age at which young persons shall be served, etc. All these questions, however, would, under the system of public management advocated in this volume, cease to be matters of Imperial legislation ; for, subject to certain limitations laid down by Parliament, localities would, as in Norway and Sweden, determine these questions for themselves. The struggle between the Trade and the nation would therefore shrink into narrow compass.^ 1 If the question of Local Veto were before a locality, the influence of the share and debenture holders would no doubt be felt. The withdrawal of the publican opposition would, however, altogether alter the conditions under which such a vote would be taken. 126 THE MENACE OF THE TRADE. Note. — The Dispensary System of South Carolina has Httle in common with the Gothenburg System, except that in both the hquor trade is taken out of private hands. The Dispensary System is, however, of special interest in the present connexion as showing that, even under a system defective in many ways, the political power of the Trade is practically destroyed when private profit is dissociated from the sale of drink. Full evidence on this point is given in the Appendix.-^ 1 See p. 259. CHAPTER VI. The Pushing of Sales. A COMMITTEE whose investigations led to the formation of the Gothenburg Company, said in their Report : — '* Neither local enactments nor police surveillance can do much so long as public- houses are in the hands of private individuals, who find their profit in encouraging in- temperance, without regard for age or youth, rich or poor." Some recent writers, including Mr. Walker, argue, however, that the elimination of private profit from the sale of drink can have little effect, because the publican must necessarily supply his customers with the article they want ; if they ask for beer, it is useless to press aerated waters. 128 THE PUSHING OF SALES. But in discussing the matter it is necessary clearly to understand what is meant b}' the phrase " Pushing of Sales." If, indeed, the phrase be restricted to the direct influence which can be exercised by the bar-tender upon his customers in inducing them to take some other article than that for which they ask, it may be conceded at once that the effect of such "pushing" must be small. The present writers, in an earlier volume,^ laid emphasis upon this point. But the phrase as ordinarily used carries a much wider meaning. It refers to the effort made by those engaged in the trade — principals as well as subordinates — to stimulate sales. As The Times^ in discussing the tied-house system, long ago pointed out,^ "The natural tendency of a brewer is simply to push the sale of his beer. Provided no forfeiture of licence be incurred, the especial manner in which the business is conducted does not ^ British Gothenburg Experiments and Public-House Trusts. See pp. 23, 31. 36, 60, 79. THE PUSHING OF SALES. 129 matter much to him. His main desire is that the neighbourhood should drink as much as possible." A few specific instances may be given from our own country and from abroad to illustrate how the trade is pushed under the stimulus of private gain. In the Report of the Sub-Committee of the Glasgow Magistrates which recently visited Liverpool to inquire into the administration of the Licensing Acts in that city, it is stated that the following are among the grounds on which the Head Constable objects to the re-licensing of a house : — " That the house is the resort of improper persons. " That undesirable inducements are offered to customers. " That sailors' advance notes are taken in payment for drink. " That they hold customers' money and let them have drink until it is exhausted. I30 THE PUSHING OF SALES. " Free drinks are given to induce custom. " Drink on credit. " That they have sold drink during prohibited hours." It is not likely that the Head Constable would have enumerated these abuses unless they had existed, and the reason of their existence is obvious. It was to increase or "push" sales. These abuses owe their existence to the stimulus of private gain, and would not have been found in connexion with a Gothenburg Company. Two other illustrations may be taken from Liverpool. In the interesting pamphlet entitled ** Licensing Administration in Liverpool. Summary of Reforms (1889—1898),"^ compiled by the Liverpool Vigilance Committee, the following paragraph occurs on page 5 : — - " Music, Singing, and Dancing Licences. — Among the many questions to which the attention of the Justices has been directed in 1 The Licensing Laws Information Bureau, 46, Bridlesmith Gate, Nottingham. THE PUSHING OF SALES. 131 recent years has been that of the undesirability of continuing to allow licences of this nature to be granted to public-houses. As a result of the action of the Bench these licences, which numbered 238 in 1890," have since, been reduced to 38. Why were these 238 licences taken out in 1890 ? Manifestly in order that the music, singing and dancing might draw people to the public-house. The object was to stimulate sales. In the same Report, under the heading " Back Doors," it is stated that " the agitation against these semi-secret entrances was actively commenced in 1890," and that by the year 1898 the justices had effected the total closing, for trade purposes, of about 377 back doors. Semi-secret entrances are not to be found in houses under Gothenburg control. The object of such entrances is to facilitate the use of the public-house by persons who would not care to enter by the ordinary door ; in other words, the object of 132 THE PUSHING OF SALES. these semi-secret entrances is to increase sales. Birmingham has lately been greatly stirred upon the question of " air-gun shooting clubs," of which a large number had been established in connexion with public-houses with a view of adding to their attractiveness. Early in February the magistrates passed a resolution: "That the justices view with disfavour the establishment of air-gun shooting clubs at licensed premises, and hope that any such clubs now in existence will be at once discontinued." As the Birmingham magistrates are accustomed to give practical effect to their recommendations, this resolution excited strong feeling, and a crowded meeting to protest against it was held in the Town Hall on March 2nd, 1903.^ At a subsequent magisterial discussion of the question, Mr. Arthur Chamberlain, 1 Mr. Arthur Chamberlain, at the meeting of the magistrates, said " He took it that those meetings were . . . arranged by the Trade and engineered by the Trade for Trade purposes." It points, however, to the attractiveness of these clwbs that the Trade were able to fill the Birmingham Town Hall with a meeting to protest against the resolution of the magistrates. The resolution has since been virtually withdrawn. THE PUSHING OF SALES. 133 defending the resolution, said : " Air-gun clubs were innocent amusements in themselves, and the magistrates had said nothing against them. What they had said they objected to was their connexion with public-houses. They certainly led to drinking. . . . They were an additional attraction to the public-house. They turned a non-frequenter into a frequenter of public-houses." He added: "There were formerly 203 of these gun clubs in connexion with public-houses, and since the magistrates' pronouncement they had been reduced to 163."^ It was pointed out that these air-gun clubs were a great attraction to young men. Unquestionably the object of these clubs was to attract customers and so increase sales. A few licensed houses, for the sake of pushing sales, tolerate abuses more serious than those hitherto mentioned. In the Criminal Statistics for England and Wales, 1901, there is a table (pp. 106-109) showing the number of public-houses and beer shops ^ Birmingham Daily Post, March 6th, 1903. 134 THE PUSHING OF SALES. frequented by thieves in the counties and boroughs of England and Wales. The total number of houses so frequented is 360, namely, 218 public-houses and 142 beer shops. Now, if the criminal clientele of these houses is such that it can be tabulated by the police, the publican cannot be ignorant of the character of his customers. Why then does he permit abuses which carry the risk of a loss of licence ? Mani- festly because he gains by every glass of liquor which he sells. These illustrations indicate the variety of methods adopted for stimulating sales, as well as the extreme lengths to which in some cases the pushing of sales is carried. The efforts in this direction which are made within the limits of the law are so well known that two further illustrations of very recent date will suffice. At the annual meeting of the shareholders in Olivers Ltd., wine and spirit merchants, Bristol, the chairman, Mr, j. W. G. Dix, said : — " One unsatisfactory THE PUSHING OF SALES. 135 feature they had to deal with was the increased competition which they had to encounter, and that was serious. The directors had endeavoured to make the retail bars more attractive, and an improvement had been carried out which would facilitate the carrying on of the business." ^ Again, in the Dundee Advertiser of September 20th, 1902, the following letter appears: — "To-day I noticed in the window of a public-house in your city the intimation that the results of all important football matches would be wired to that particular house. This is a ' draw,' and, no doubt, a good one for the enterprising publican." When cases of this kind are brought forward, it is sometimes urged in reply that the object of the publican is not to push sales but to command a clientele. But if one publican seeks to make his house more attractive, another will follow suit, and if the public-houses of the country generally are 1 The Wine Trade Review, November 15th, 1902. 136 THE PUSHING OF SALES. made more attractive, they will attract more customers, especially among the young, and so the national consumption of liquor, instead of being reduced, will be further increased. The experience of the mother country is being reproduced in the colonies. A Bill to remedy the evils of the tied-house system was recently introduced into the Victorian Parliament. In the course of the debate Mr. A. A. Billson, a brewer, said : — " The result in many instances — I do not say in all cases —is that the buyer finds that the rent and the interest which he or she, as the case may be, has to pay is more than he or she can make out of the business, and these people then have to resort to some illegal means, such as gambling, keeping their hotels open after hours, trading on Sundays, or probably introducing some other vices of a worse character. Honourable members may ask, 'Why do they do this?* The answer is that when a person has put his money into a hotel, and finds he has THE PUSHING OF SALES. 137 paid an inflated price for it, he is then very anxious to get his money out of it, and will resort to all kinds of practices for the purpose of making both ends meet."^ That is to say he will " push sales." If we turn to foreign countries the evidence is equally decisive that sales are " pushed " under the stimulus of private gain, and that improved conditions result when this stimulus is withdrawn. A Foreign Office Report^ upon the Government Spirit Monopoly in Russia, contrasting the present system with that previously existing, says : — " In the dram- shop the proprietor was usually willing to supply drink on credit, advance it on wages owing, or exchange it for agricultural produce, clothes, etc." These abuses were done away with when the trade was taken out of private hands. They had existed , formerly owing to the determination of the dram-shop proprietor to "push" his sales to the uttermost. 1 Victorian Alliance Record, October ist, 1902. - Miscellaneous Series, 465, 1898. 138 THE PUSHING OF SALES. In Gothenburg, prior to the introduction of the Controlling System, a similar condition of things existed. " Innkeepers and publicans, who made a living by selling liquors, and paid a heavy fee to the authorities for their licences, naturally had an obvious interest in obtaining as large a sale as possible for their own benefit. For this purpose it was a common practice among them to sell on credit, the consequence being that the workman, after settling his debt to the publican, had often nothing left of his weekly wages to supply his own wants and those of his family. Being refused credit, the drunkard had recourse to the pawnbroker, and many a workman took his. most necessary articles of furniture to the publican, who thus not unfrequently made an unreasonable profit in the pawnbroker's business as well." ^ But perhaps the most glaring illustration of the extent to which the pushing of sales may be carried is to be found in connexion 1 The Goteborgs Utskdii finings Ahtiebolag. THE PUSHING OF SALES. 139 with the working of the Raines Law in New York. Under this law, in order to sell liquor on Sunday with impunity, " it was only necessary to run an establishment having ten bedrooms, exclusive of those occupied by the family and servants, and facilities for serving a sandwich." The law was passed in March, 1896, and by November of that year the police of New York City reported to a Senate Committee the existence of 2,378 liquor-selling "hotels," of which 2,105 were stated to be the offspring of the law, and the remaining 273 bond-fide hotels. In Brooklyn, the hotel list had swelled from 13 to 1,474, and in other cities a similar condition prevailed. ^ In an article on "Sunday Opening by Statute," contributed to Municipal Affairs (December, 1901), by William Travers Jerome, District-Attorney under the present Reform Administration, it is stated that " there are 2,167 [of these] ' hotels ' in the city of ^ The Liquor Problem in its Legislative Aspects, Second Edition, 1898, p. 369. I40 THE PUSHING OF SALES. New York, a very large proportion of which — probably over 80 per cent. — are nothing but houses of assignation." This portentous abuse, which sprang up in a few months, was of course due to the determination of the publican to secure the profits of the Sunday trade. Illustrations of an aggressive trade policy ever seeking the extension of business might be multiplied almost indefinitely.-^ They are, however, so patent that the fact of the " pushing of sales " can only be questioned when a restricted and altogether inadequate meaning is attached to the phrase. The following curious extract from Defoe's The Compleat English Tradesman will show that the pushing of sales is no new thing :— " I might enlarge here, and indeed it would very well take up a whole chapter, to give some particular instructions to those tradesmen I call public-house keepers, vintners, victuallers, inn-keepers, and the like ; how they should carry on their trades like men of business, and perhaps, in the end, not less to the advantage of their families, without prompting the pot and the glass, and as the Text calls it, putting the bottle to their neighbour's nose, in a gross and scandalous manner, as is generally the practice; making themselves brokers to the Devil and tempters to vice, merely for getting two-pence or three-pence, or perhaps six-pence extraordinary spent in their house ; I think I need not explain myself, the ordinary practice of those people, and the custom of their houses (those tabernacles of Bacchus) describe it too plainly." — 2nd ed. (1725), vol. 2, part 2, p. 95. THE PUSHING OF SALES. 141 The full force of the contrast between the methods of private licence and those of Company control is illustrated by the action of the Directors of the Christiansand^ Samlag. "When, early in 1874, it was discovered that the sales for 1873 exceeded those of the previous year, additional measures were at once adopted by the Society for checking the sale of spirits. Stringent orders for the further restriction of sales were at once issued to the bar managers, and a request was also made for the services of a special liquor officer, to be paid by the Company. As a consequence of these efforts the consumption for 1874 showed a marked diminution, not- withstanding the unusual prosperity of the working classes. Moreover, not content with the gradual progress it was making, the Company engaged the services of a representative of the Society of Home Missions to do temperance work in various parts of the city. Aid was also promised ■^ Town in Norway. Population in 1900 — 14,666. 142 THE PUSHING OF SALES. for the establishment of coffee houses specially adapted to meet the wants of day labourers, where only temperance drinks would be sold. Again, in their report for 1882, the directors state that, in spite of stringent times and lower wages, and the stricter rules governing the spirit shops, the bar trade had not diminished to the extent expected, although, from the figures given, a considerable reduc- tion seems to have taken place. In order to ascertain the reason for this, several meetings were held with the managers, a list was made of the regular customers, and the quantity of liquor bought by the latter noted. It was found that many men of the working classes squandered a large portion of their wages in drink. The directors at once took steps to prevent this. Smaller dram glasses were ordered, and the rule made that only one dram once in three hours must be served to each person. . . and all sale of liquor was prohibited to persons known to depend in part or wholly on charity, or who neglected their THE PUSHING OF SALES. 143 families in any way. It is stated that these orders not only proved effective, but were even hailed with approbation by the customers themselves. The fear that the severe rules now governing the bar trade would lead to larger sales at retail, and thus foster home drinking, was not realized." ^ Is it possible to conceive that ordinary- publicans, acting under the stimulus of private gain, would adopt similar measures ? '^ Report of the Massachusetts State Commissioners, p. 98. CHAPTER VII. Is the Controlling System in Scandinavia a Progressive or a Retrograde Movement ? THE belief has been expressed by Mr. Walker that the Scandinavian movement is retrogressive. His conclusion is summed up in the following passage : — "Apart from the significant trend of indirect data like pauperism, the general tenor of the statistics and facts we have considered leads to the conclusion that since 1855 there has been an improvement in the sobriety of the country [Sweden]; but after the system became general the impetus of the former improvement gradual!)^ sloived down, until the last decade, when there has been a return towards the former state of degradation. Its supporters continue to base their arguments in great measure upon the undoubted improvement since the old days, but are blind to the present retrograde movement. That the movement is retrograde, the arrests for drunkenness, the consumption of spirits. COMPANY SYSTEM PROGRESSIVE. 145 and the other data we have mentioned, all go to show. The most that can be claimed for the system is, that it has rendered the public-house so unpopular as to divert part of its trade to other channels." Now there is ample evidence that this conclusion is erroneous, and that in both Sweden and Norway the movement is distinctly progressive. Apart from detailed evidence which we shall shortly give, the attitude of the Temperance party and of others concerned for the moral progress of the people towards the system, decisively shows that they regard it as a valuable Temperance agency. On no other hypothesis can one account for the action of the Bishop and Dean of Gothenburg and of the local clergymen in petitioning, in i8g8, the Royal Governor of the Province that beer, equally with spirits, should come under the control of the Gothenburg Company. Evidence yet more recent of the attitude of the Temperance party in Sweden towards the system is also forthcoming. In January, 1902, 146 COMPANY SYSTEM PROGRESSIVE. the Swedish Temperance Society invited the organised Temperance workers, the Good Templars, the Blue Ribbon and other Associations, to a Conference at Stockholm. The chief discussion was upon co-operation in the work of reforming the laws relating to the production and sale of malt liquors. The resolutions of this Conference were unani- mously passed, and among these was one in favour of placing malt liquors under the same control as spirits, i.e., under the restrictions of the Gothenburg System. In Norway, the great Act of July 24th, 1894, was drawn up by Mr. Aarrestad, leader of the Temperance party in the Storthing and in the country, in association with Mr. Berner, a prominent and influential member of the Temperance party, and Mr. Jensen, Chief Clerk in the Department of the Interior. This Act provides that in towns all trade in spirits, other than wholesale, whether on or off the premises, must be put under the control of the Samlags. COMPANY SYSTEM PROGRESSIVE. 147 Four years later Mr. Aarrestad drew up the Minority Report of a Committee of the Storthing, bearing date March ist, 1898, in which he said : — " On the whole, it must be said that all trade with intoxicating drinks is fit for monopolising. This is valid equally with the wine trade as with the brandy trade, and it holds good also as to the beer trade — at least as to the stronger beer.'' It is impossible to believe that the Temperance organisations and the Temperance leaders in Sweden and Norway would thus urge that beer should be brought under company control if the movement was one that had " gradually slowed down until " in the last decade there had been " a return towards the former state of degradation." Since Mr. Walker's book was published we have very closely tested this question of the alleged deterioration of the system. As the readers of The Temperance Problem and Social Reform will be aware, we there expressed our sense of the dangerous character of the provision 148 COMPANY SYSTEM PROGRESSIVE. which exists in Sweden for the appropriation of the surplus profits of the Bolags to the rehef of local rates. It is a remarkable proof of the inherent strength of the controlling system that, notwithstanding the serious defect in its constitution as carried out in Sweden, the temperance purpose of the Company movement is so generally kept in view in that country. In the years immediately following the formation of the Company in Gothenburg (1865-1873), it is probable that the business side of the experiment held too large a place in its management, but from 1874, when some change was made in the directorate of the Company, its temperance aims have been kept steadily in view. Dr. Wieselgren, in speaking of his own experience as a director of the Gothenburg Company (a position in which he rendered signal service), says : " By far the greatest difficulty was that of finding the true course between the Scylla of bar-drinking and the Charybdis of COMPANY SYSTEM PROGRESSIVE. 149 tippling in the homes." English critics, in judging of the policy of the Controlling Companies, hardly give sufficient place to this thought. The progressive action of the Gothenburg Company in recent years is a thoroughly satisfactory record. Not only has there been a steady reduction in the number of public-houses, and efficient maintenance of other restrictive agencies, but quite recently an effort has been made to convert the public-houses more and more into restaurants for the working classes. The Bolag, as already stated, has decided that during the dinner hour (between twelve and two p.m.) all sale of branvin shall cease at these houses except when taken as an appetiser with meals. The Report of the Company for the year ended September 30th, 1902, states that 2,216,995 portions of food had been sold in the year. "Since 1883, the Bolag has opened [free] reading-rooms^ ' These rooms are altogether distinct from the excellent free library of Gothenburg. I50 COMPANY SYSTEM PROGRESSIVE. in different parts of the town, which offer a refuge to the working man, or to anyone who, wishing to avoid the public-house, but being in want of a home, does not know where to spend his leisure hours in the evening. At these places coffee, tea, milk, chocolate, non-alcoholic drinks, sandwiches and other light refreshments are supplied, but neither beer nor spirits of any kind. They are also provided with a goodly selection of books and newspapers, as well as with materials for letter-writing. Young workmen, especially those excluded from the public-houses by the rules of the Bolag, have found these reading-rooms to be an excellent substitute." The number of visitors to these rooms has risen from 198,780 in 1897-98 to 456,314 in 1902. At the same time the number of the reading-rooms has been increased from three to seven. The loss upon these reading-rooms, which is borne by the town authorities, is 26,000 kronor (/^i,444) per annum. COMPANY SYSTEM PROGRESSIVE. 151 In a further passage (page 60), Mr. Walker says that the Gothenburg System seems to have been managed in its early years " without any hint of corruption or peculation, for we find that, among the voluminous evidence on the subject in the ' Reports of the House of Lords Commission on Intemperance ' in 1877, there is no mention of any complaint on this head. Since then, however, many companies have fallen from their original ideals, and an unpleasant feature is that this tendency is most noticeable in those formed in recent years. Let us give some examples." The following are among the examples which Mr. Walker gives : — I. — Of the ninety-two Swedish Bolags, fourteen remain "Bolags" only in name, and are practically private concerns with three share- holders each ; eight had, in 1893, only two, one of them having on its list of shareholders only the actual licensee and his barman. 2. — Such companies had often neither directors, auditors, nor meetings, and therefore, in spite of all the machinery of the " Bolag," there existed no checks upon the expenditure of the profits, and the licence was practically 152 COMPANY SYSTEM PROGRESSIVE. conducted as a private venture, devoting an unknown and probably small portion of its drawings to the public funds. 3. — A similar result follows the farming out of public-houses by the companies. Forty-five companies work on this principle. 4. — Thirty-four companies have not retained a single licence in their own hands. We shall deal with these assertions directly. Meantime we may remark that the question under consideration is not whether there have been abuses in the past, some of which still exist, but whether on the whole the Controlling System in Scandinavia is a progressive or a retrograde movement. In The Temperance Problem and Social Reform (1899), attention was directed to the existence of abuses in the case of some companies. Nevertheless Mr. Walker writes : — " Messrs. Rowntree and Sherwell were in Sweden in 1898; yet this Act [i.e., the Act of May 24th, 1895] seems to have altogether escaped their notice, and in their book we have not a hint of the abuses which made it necessary, and which were COMPANY SYSTEM PROGRESSIVE. 153 exposed by Baron Bonde in the debate in the Diet." This statement is characteristic of tlie careless haste with which Mr. Walker wrote. In every edition of The Temperance Problem mid Social Reform,^ pointed attention has been directed to these abuses and to the law of May 24, 1895. The condition of things which Mr. Walker describes was that which existed prior to this law of May 24th, 1895, and the material he uses is that which was collected in connexion with the official inquiry which preceded the legislation of that year. How great is the improvement that has taken place since that time will be presently shown ; but it may be well in the first place to give some detail of the one hundred Swedish companies existing in 1901. These companies are of two classes, which are called respectively Share Companies and 1 See pages 290-292 editions i to 6. ,, 468-470 ,, 7 to 9. „ 114-115 6d. edition. 154 COMPANY SYSTEM PROGRESSIVE. Private Companies. Of the former there are thirty, and of the latter there are seventy. With respect to the differences in adminis- tration between the two classes of company, Dr. Wieselgren, in a letter to the present writers dated October 28th, 1902, writes : — " In the Share Bolag each shareholder is responsible only to the extent of his own contribution to the capital stock ; in the Private Bolag every partner is responsible for the engagements of the Bolag, not only to the extent of his contributions, but with his private means. The partner in a Private Bolag must consequently run greater risk than a shareholder in a Share Company. But the fact that a Bolag may be single or joint is of no importance with regard to the manner of conducting the business — both of them can do it well, both of them can do it badly. Mr. Walker is greatly mistaken in thinking that the Private Bolags are a recent feature marking the growing degradation of the Company System. The Private Bolags COMPANY SYSTEM PROGRESSIVE. 155 have always been the majority, both sorts exist under the same law, and what Mr. Walker says concerning their devoting an unknown and probably a small portion of their profits to the public funds is very unreasonable, as they must use the same form in their account books as the Share Bolags, and their accounts are also subject to the same official inspection." Now if the question were asked whether private bolags were the ideal form of the Company System, an answer in the negative would doubtless be given, ^ but the point is whether the Company System is on the whole progressive or retrograde. Now what are the facts ? Mr. Walker, evidently referring to conditions which obtained before 1895, says, " Thirty-four companies have not retained a single licence in their own hands." In igoi this condition of things no longer existed. In that year ninety-six of the hundred Swedish companies had licences for an "off" trade, i In Norway all the Samlags are Share Companies. 156 COMPANY SYSTEM PROGRESSIVE. and of this number only three companies transferred the whole of their licences ; while of the ninety-nine Bolags which had licences for an "on" trade, only five transferred the whole of their licences. Again, Mr. Walker states that, in 1893, fourteen companies had only three share- holders, and eight only two. In 1901, however, out of the entire body of seventy private companies there was not one which had fewer than nine shareholders} Mr. Walker further states that such companies had often neither directors, auditors, nor meetmgs. In igoi, however, of the seventy private companies, one had two directors, forty had three, fifteen had four, thirteen had ^ The number of shareholders in each of the seventy private companies was as follows : — 1 had 57 shareholders. 43 34 25 20 16 3 .. 15 5 .. M 1 ,, 13 „ 12 5 6 35 70 COMPANY SYSTEM PROGRESSIVE. 157 fifteen, while of the remaining one we have no return. It is manifest, then, that in regard to these points which Mr. Walker selects as evidence of the companies having " fallen from their original ideals," there has been in every particular a marked advance in recent years. We have no desire to minimise that defect in the Swedish system which sanctions the appropriation of so large a portion of the Bolag profits to the relief of rates, and we think the Swedish Temperance Union does good service in calling attention to such abuses as still exist. It should, however, be remembered that what are spoken of as " abuses " are often nothing more than the ordinary methods of private traders. Thus the Swedish Temperance Union names, among other abuses, the case of four small places (each with a population of less than 3,000) in which the Company's manager is paid either in part or altogether by a commission 158 COMPANY SYSTEM PROGRESSIVE. upon sales. In a recent petition to the King, the Swedish Temperance Union points to a much-needed reform, urging that the Public Controller should be invested with the right to take legal action and to revoke the licences of companies which do not fully carry out the provisions of the law of May 24th, 1895. Another assertion of Mr. Walker's is that in Sweden Sunday closing is not so prevalent as formerly, and that the Bolags have been the means of opening the public-houses on Sundays. On inquiry we can find no ground for this statement. On the contrary, Mr. Andree, the general manager of the Gothenburg Bolag, writes (July, 1902) : — ** Sunday closing is more prevalent here than before." All the shops for "off" sale are closed by statutory law throughout the whole of Sunday, and of the ninety-nine Bolags which conduct an " on " sale, at least sixty- six do not open their houses at all on Sunday; of four we have no report, while twenty-nine are only open during certain COMPANY SYSTEM PROGRESSIVE. 159 hours of the day.-^ Mr. Walker makes a general charge against the Swedish system in the following sentence : — *' In America, the promoters never pretended to have very lofty ideas of morality,^ but the tendency to corruption and peculation on the part of all concerned is as pronounced as in Sweden." After a laborious and detailed examination of the question, we are in a position to state that this general charge of corruption and peculation against those who conduct the system in Sweden is without foundation. Mr. Walker has drawn his illustrations of defective Company management almost 1 The clauses of the Act of May 24th, 1895, dealing with Sunday closing, are as follows : — ■' On Sundays and holidays the sale of brandy over the bar shall generally be limited to the meal times, and brandy shall be served only to guests ordering food. "When special circumstances call for the extension or limitation of the time of selling brandy over the bar, the governor shall make the necessary provisions in this respect, after having received a statement from the Local Government Board and having consulted with the magistracy or the Board mentioned. " During divine service the bar trade places shall always be closed." In Norway the public-houses are closed at i p.m. on Saturday, and do not re-open until 8 a.m. on Monday. 2 We have already pointed out that the Gothenburg System does not exist in America. i6o COMPANY SYSTEM PROGRESSIVE. entirely from Sweden. Although the purity and efficiency of administration in that country is advancing, there can be no doubt that the Norwegian system forms a better model for imitation than the Swedish. As has often been pointed out, the Company System was introduced into Norway some years after its establishment in Sweden. Norway had the great advantage of availing itself of the experience of Sweden, and of thus avoiding some of the mistakes which had been made in that country. From the first, the Company System in Norway was put under effective Government control. The appropriation of the profits was determined by statutory law, and the bye-laws of the companies have to receive the sanction of the Government. The Act of May 3rd, 1871, authorising the introduction of the Company System into Norvv^ay, provides that "the right of retailing ardent spirits may also be granted to societies which bind themselves to apply the possible profit of their trading COMPANY SYSTEM PROGRESSIVE. i6i in aid of objects of general public benefit and utility ; and whose articles of incorporation are confirmed by a resolution of the magistracy and municipal council, and are sanctioned under the royal seal.^'^ For forgetfulness of public weal or for any breach of trust, the governor has the right to withdraw the licence privileges without compensation. Approval of the bye-laws also being "only for the present," the Government may at any time bring a faithless company to a change in policy simply by threatening it with extinction. The control is strict, and one company has been so treated. More frequent necessity has not arisen.^ It needs no minute examination to see that in Norway the company movement has been a progressive one. We have already directed attention to the fact that the law of July 24th, 1894, was drafted by the Temperance leaders of the country, and gave ' Local Option in Norway, by Thomas M. Wilson, page 12. '^Popular Control of the Liquor Traffic, by Dr. Gould, page 8. i62 COMPANY SYSTEM PROGRESSIVE. expression to its temperance sentiment. The advanced Temperance party held that if the sale of spirits was to continue at all, it was better that it should be under the control of the Samlags than that it should be free ; and hence it was desired to narrow the alternatives to a choice between the Samlags and Prohibition.^ In drafting and securing the passing of this Act, the Temperance party, after an experi- ence of the working of the Company System extending over eighteen years, emphatically set their seal upon it as the system under which they desired that the sale should be carried on. Their efforts to place beer under company control still further emphasized their attitude towards the Company System. English reformers have been fearful that if the profits of the trade were taken out 1 Certainly no complaint can be made that the recent temperance policy of Norway has not been sufl&ciently advanced. If anything, it has moved too quickly. The opportunity of choosing between the Samlag and Prohibition given by the Act of July 24th, 1894, was made use of by each of the fifty-one Samlag towns, with the result shown in the Appendix (sec p. 268). COMPANY SYSTEM PROGRESSIVE. 163 of private hands, the path to more advanced Temperance legislation might be barred. If the profits of the trade were, as in Sweden, appropriated to the relief of rates, this might be the case ; but in Norway, where the profits are appropriated chiefly to a National Fund, and, for the rest, to objects of public utility not supported by the rates, no difficulty of the kind has been felt. The result, indeed, has been of an altogether opposite character. The question may be asked : How is it that Norway has been able to pass such an Act as that of July, 1894, an Act so far in advance of anything that has been possible in any other European country ? The answer obviously is, that public opinion in Norway was able to exert itself freely, and was not hindered by public-house influence, the distillers having no places of retail sale through which they could influence the electorate. At the risk of labouring a point unduly, the explanation may be again given i64 COMPANY SYSTEM PROGRESSIVE. that the reason why a similar law has not been passed with regard to beer, is because the retail sale of beer is in private hands, and the brewer can influence the electorate through the very numerous beer-shops in the country. As is well known, one section of the Norwegian Act of July, 1894, assigned sixty-five per cent, of the profits of the controlling companies to the State. The Temperance party recognised the danger that lurked in the appropriation of large profits locally earned to local objects of public utility, and wisely secured the diversion of a large portion of the profits to the State. ^ In view of the benefits which the localities had received, it could not have been a matter of much surprise if this proposal had been seriously contested, but that such was not the case is a further illustration ^ In the practical proposals made by the present writers, in the last chapter of The Temperance Problem and Social Reform, the danger of the locality acquiring an interest in the maintenance or extension of the traffic is effectually guarded against. It is provided that after allowing for the grants for counteracting agencies, which are to be determined by population and not by profits earned, the whole balance shall go to the State. COMPANY SYSTEM PROGRESSIVE. 165 of the extent to which Temperance sentiment had flourished and acquired power under the Company System. Mr. Walker tries to make out a case against the Company System in Norway by the following quotation from the report made in 1893 by Mr. Michell, the British Consul- General in Norway : — "As a matter of fact, the original purpose of applying all profits to philanthropic purposes has been more and more departed from during the last fifteen years, within which several towns have made contributions out of gains on the sale of spirits towards the construction of waterworks, public schools, and even of railwa3'S." This now discredited report was completely refuted at the time. It was discussed by the Norwegian Storthing on the 17th July, 1893, and a resolution was adopted nem. con. characterising Mr. Michell's reports "as calculated to convey false impres- sions abroad." Moreover, at the request of the Home Department of Norway, Mr. H. E. Berner, of Christiania, who is regarded as the highest i66 COMPANY SYSTEM PROGRESSIVE. living authority upon the Company System in Norway, wrote a full refutation of Mr. Michell's charges, which was forwarded by the Norwegian Government to our own Foreign Office. " Twenty-two of the most experienced British subjects residing in Norway, the average length of their residence being sixteen and a half years, also took independent steps to make Her Majesty's Government acquainted with the character of the Report that had been issued under the imprimatur of the British Foreign Office. These gentlemen addressed a memorial to Her Majesty's principal Secretary of State for Foreign Affairs, in which they characterised Mr. Michell's Report as ' entirely misleading and inconsistent with the truth respecting the system in question,' and they humbly prayed that the Report be withdrawn from circulation on account of its incorrect and misleading character. That memorial was accompanied by the testimonies of twenty-seven British COMPANY SYSTEM PROGRESSIVE. 167 Vice-Consuls in Norway upon the working of the Gothenburg System in the local areas under their observation. Those testimonies were all of a favourable character." ^ Mr. Michell appears to have been curiously ignorant of the facts about which he wrote. It is quite incorrect to say that the original purpose was to apply all profits to philanthropic purposes. The law of 1871, under which the Companies were established, expressly provided that the net profits of the Samlags should be devoted to objects of public utility, and this was interpreted as referring to objects which the municipality is not, by law, already obliged to support. The statement that the Samlags made contributions out of the gains on the sales of spirits towards the construction of railways is misleading. The very simple explanation was given by Mr. Thomas Wilson, of Bergen, in these terms : — " The railways of Norway are State property and are constructed with Government 1 Quoted from a Memorandum forwarded to one of the present writers in 1894 by Mr. Thomas M. Wilson, of Bergen. i68 COMPANY SYSTEM PROGRESSIVE. funds in conjunction with local shareholders, who have, however, no voice in the affairs of the railway. As a condition for making a local railway line the State requires that the local public bodies, and wealthy residents of the districts through which the line is to pass, shall subscribe for a certain minimum amount of the railway's stock. The local savings banks and other public bodies, including the controlling societies, have, in the cases spoken of, subscribed as share- holders for stock so as to comply with the Government condition and ensure the con- struction of the desired railways ; but the controlling societies' investments are temporary only, and the societies may realise and sell out their stock when desired and apply the amount to * general useful purposes ' at any time. The sum invested in the railway stocks is simply a deferred application of profits, but which temporarily serves a ' general useful purpose,' and will eventually be applied as a donation to some other * general useful purpose,' like all other profits." CHAPTER VIII. The Evidence of Foreign Observers upon the Working of the Company System in Scandinavia. IT has been urged^ that in Sweden the local authorities are naturally in favour of a system which contributes so largely to the municipal purse, and that some discount should be taken from the opinions they express in favour of the Company System. The caution is one to which an investigator upon the spot would no doubt give due place. No one, however, who had enjoyed the advantage of a free conversation with the Chief of the Police in Gothenburg upon the working of the Controlling System in that city could, we believe, come away from the interview with any other conviction than that of having heard the honest and disinterested 1 Walker — The Commonwealth as Publican, pp. 32-3. lyo FOREIGN OBSERVERS. opinion of the speaker. Mr. Walker urges^ the further objection that " The evidence of foreign observers who seem to have a special brief for the Company must also be accepted with reserve, but it is interesting to note that both in Sweden, Norway and Finland, impartial travellers who write for the information of the general reader, seldom express a high opinion of the ' Bolag ' as a reforming agency." Now if the facts were as stated in this passage, they ought to weigh with English readers, but the evidence is directly contrary to Mr. Walker's statement. The evidence of Mr. Chamberlain, strongly in favour of the system, has been so often quoted that it need not be repeated here. It will be found in the introduction which he wrote in 1894 to Dr. Gould's book, Popular Control of the Liquor Traffic."^ Mr. Chamberlain's view is that of a i/6irf, p. 34. ^Cassell & Co., Limited. Price i/- FOREIGN OBSERVERS. 171 keen-sighted observer, familiar with the municipal Hfe of his own city. The system has, however, been the subject of a most systematic and thorough inquiry, made at the instance of the Government of the United States. The Fifth Special Report of the Commissioner of Labour, Washington, was devoted to the Gothenburg System of Liquor Traffic. The report was prepared under the direction of the Hon. Carroll D. Wright, Commissioner of Labour, by E. R. L. Gould, Ph.D. Mr. Carroll D. Wright, in forwarding the report to the President, sent along with it a "letter of transmittal," dated March, 1893, from which the following extracts may be given : — "The following pages represent a careful investigation into the working of the so-called Gothenburg System. . . . The figures have been uniformly drawn from official sources, while the remainder of the information has been taken only from those universally recognised as possessing the best means of 172 FOREIGN OBSERVERS. understanding the system, and, indeed, those whose authority is considered quite unim- peachable. Even in such cases no individual ipse dixit has been accepted without a verification from official material where that was possible, or, where it was not possible, by comparison with other authorities. Every effort was made to learn the views of parties of all shades of opinion, and whether in consultation with directors or employees of brandy companies, with public officials, with temperance leaders, or with those opposed to the principles of the system, the most courteous assistance was uniformly rendered. . . , . Mr. John Koren, of Boston, Massachusetts, who is thoroughly familiar with the Scandinavian languages, has rendered Dr. Gould most valuable assistance in the preparation of this report." Dr. Gould's report occupies 253 pages. What the result of the inquiry was upon his own mind can be best given in his own words.^ 1 Preface to Popular Control of the Liquor Traffic, pp. xi., xii. FOREIGN OBSERVERS. 173 " I went there absolutely without prejudice of any sort ; I came away a convert to the system. The testimony of facts and the object-lessons afforded on every hand were so conclusive that I could not help feeling that the Scandinavian method is the only really practical means of dealing with the liquor evil in this generation. This opinion is fortified by knowledge and observation of other systems, gained from nearly five years' experience as an investigator of social problems in Great Britain and on the continent of Europe. It is far in advance, too, of any method which has been tried in the United States. I do not regard the Scandinavian plan as perfect, but I do believe it to contain the ' promise and the potency ' of higher things. It is a measure of progressive reform, sound in principle, operating harmoniously with w^ell-defined laws of social advance, and is easily adaptable to English and American conditions. Its trial will do more than anything else yet 174 FOREIGN OBSERVERS. suggested to mitigate an intolerable social curse." The investigation made by Dr. Gould was supplemented in 1894 by one made at the instigation of the State Legislature of Massachusetts, and conducted by Mr. John Koren. The Commissioners, in forwarding Mr. Koren's report (extending over 180 pages) to the Senate and House of Representatives of Massachusetts, wrote as follows : — *' The Commission appointed by His Excellency the Governor, under chapter 86 of the Resolves of 1893, to investigate the Gothenburg and Norwegian systems of licensing the sale of intoxicating liquors, beg leave to submit the following report : — "Three separate investigations have been made in Norway and Sweden, one by Dr. E. R. L. Gould, of the Department of Labour at Washington, embodied in an elaborate report of 253 pages, and issued in 1893 under the direction of Carroll D. Wright. A second FOREIGN OBSERVERS. 175 investigation was made in 1893 by one member of the Commission. As certain difficulties yet remained as to the consumption of liquors and the relation in several particulars of the Norwegian to the Swedish system, Mr. John Koren was sent by the Commission to make a final thorough study of the question both in Sweden and Norway. Mr. Koren is a trained statistician, familiar with the Scandinavian languages, and was already prepared for such investigation by an intimate knowledge of the system in both countries. The extended account of the system which follows is the result of Mr. Koren's careful research. Every special difficulty suggested by previous studies was given to Mr. Koren, in order that he might, upon the spot and with the help of the officials, get every explanation of such difficulties that the authorities could give. All important data up to the year 1893 are here presented." 176 FOREIGN OBSERVERS. The Commissioners conclude their message with the words : — " Finally, the Commission, after its investigation, may be allowed to express the confident conviction that the evidence for this system, if fairly weighed, abundantly justifies in this Commonwealth such experi- ment under the Norwegian method as might be tried with entire safety under a permissive bill." Mr. Koren himself formed an opinion of the Controlling System fully as favourable as that which had been formed by Dr. Gould. The foregoing evidence may be supple- mented by the testimony of Mr. T. M. Conradi, Norwegian Vice-Consul at Newcastle- on-Tyne. Speaking at the Durham Diocesan Conference of the Church of England Temperance Society at Stockton, he said : — "When I left my own native town, Christiansand, some thirty years ago, it had a bad reputation for drunkenness and rowdyism. Christiansand is a seaport town FOREIGN OBSERVERS. 177 in the south of Norway, with an excellent harbour, which is much used by vessels going to or coming from the Baltic. It is, therefore, a town often full of foreign sailors, of boatmen, porters, and hangers-on. The boatmen in Christiansand had in particular a bad name all over Norway — at all times ready to support their arguments or presumed rights with their fists, and were a terror to peaceful travellers. In those days brawls were not infrequent, and a drunken person was a daily sight. Beggars were to be seen in the streets, dirty and sickly-looking, with disease and poverty stamped upon their person. I have visited my native town almost every year since the new licensing system was introduced, and I have been particularly struck by the rapid change for good which has been brought about. The old topers have died out, and a new generation of sober people have sprung up under precepts and teachings which their fathers did not enjoy. As the moral tone improved, so did manliness 178 FOREIGN OBSERVERS. and self-respect. No ragged child is now seen in the streets, and the last beggar I saw was a sickly remnant of bygone days."^ Mr. Thomas Wilson, of Bergen, cannot be classed as a " foreign observer," as before his death he had resided in Norway for more than thirty years. He was, however, British born, and had had a University education in this country. His study of the Norwegian System was of a singularly thorough and searching character, and his pamphlet entitled Local Option in Norway is 1 Mr. Walker, however, writes (p. 34) : — " As regards Norway, the last Consular report on the subject — by Vice-Consul Franklin, in 1897— describes the drunkenness caused in the outlying districts both by the ' Samlag ' and the prohibitive laws in no measured terms, and concludes : ' I take the liberty of reiterating what I have previously written, that it is my opinion that British legislators would be ill-advised if they attempted to introduce the ' Bolag ' system in England.' " One of the present writers visited Mr. Franklin, at Porsgrund, on June 23rd, 1898. In the course of conversation Mr. Franklin said: — "There can be no question that for Norway it [the Company System] was a good thing, and much better than private licence." This is the opinion of a man who had been nearly thirty years in Norway. Mr. Franklin's objection to the introduction of the Company System into England seemed to be based partly on doubts as to its practicability owing to the larger populations, and also because he anticipated difficulty in connexion with the distribution of profits. When, however, the proposals for the appropriation of profits, afterwards embodied in The Temperance Problem and Social Reform, were explained to him, he expressed approval of them, and said that they fully met his objection. FOREIGN OBSERVERS. 179 a classic from which almost all writers upon the system have drawn. His opinion may be quoted as the deliberate pronouncement of a competent observer who at first was opposed to the introduction of the Company System, owing to fears which he tells us were subsequently dispelled by close observation of the Society's operations. Summing up, nearly twenty years later, the result of his investigations, he says : — "In an English work before us the author says, speaking of Bergen, * we did not see a single drunken person, a single beggar, or anyone in rags.' He had not such an intimate experience of Bergen as we have, or he would have qualified his statement a little ; but still there is a world of truth in what he has said in the words quoted. There is, really, not a tithe of the wretchedness, squalid misery and poverty, drunkenness and beggary, so prevalent in English towns of similar size. That the difference is due, to no small extent, to the fact that in Bergen i8o FOREIGN OBSERVERS. the sale of ardent spirits is strictly controlled, while in the English towns it is not, is indubitable ; and it is a fact that quickly impresses itself on the minds of those who know the peoples and circumstances of both countries intimately." A few years before his death, Mr. Wilson addressed direct inquiries to a number of the most representative men in Bergen, including, among others, the Governor of the Province, the Mayor of Bergen, Members of Parliament, the Chief of the Police, the British, French, German, and American Consuls, the Bishop and Clergy of the City, etc., inviting their opinion upon the results of the Controlling system in that city. To these inquiries he received in reply a remarkable series of letters, almost the whole of them favourable to the Controlling system.^ 1 In a pamphlet entitled What I saw of the Gothenburg System in Bergen, published in 1894, the writer (Rev. Henry B. Blogg, M.A.) calls attention to the fact that "no less than twenty-two British Vice-Consuls in Sweden, and twenty-eight in Norway, have from their official knowledge reported most favourably on the Gothenburg System." CHAPTER IX. The Company System in Scandinavia and the Public^House Trust Company System in Great Britain : A Comparison of the Conditions under which each is carried on. WE hope that what has already been written will have prepared the way for an appreciation of the broad and fundamental differences between the Company System as carried out in Scandinavia (especially in Norway) and the Public-House Trust Companies of this country. A comparison between the conditions under which the two systems are conducted will show the enormous disadvantages under which the latter labour. Limitations of the Public-House Trust Movement. It is necessary that these should be known, as the belief exists in some quarters that the Public-House Trust movement will, of itself, i82 COMPANY SYSTEM AND TRUSTS. and without the aid of further legislation, go far to solve the drink problem in this country. This is certainly not the case. On the contrary, the sphere of the Public-House Trust Companies must be exceedingly restricted unless they purchase licensed properties upon a considerable scale, and such purchases can only be made upon the basis of monopoly profits. Companies launching out upon a policy of this kind would soon cease to be forces working for temperance. They would come to dread any reduction in sales or any legislation which would imperil their monopoly or lessen the value of the licensed premises which they had bought. Even the limited number of houses which the Trust Companies may acquire in new districts will be carried on under conditions of such difficulty as to make any decisive success in connexion with them well nigh impossible. This will be seen at once when it is remembered that without a monopoly of the licences of a district it is impossible COMPANY SYSTEM AND TRUSTS. 183 to apply effectively either the restrictive or the constructive agencies that work for temperance. It would be of little use for the Trust Houses to shorten the hours of sale, to raise the age at which young persons might be served, to refuse credit, to employ no female bar-tenders, to dispense with all adventitious attractions, if, in the near neighbourhood, other licensed houses existed in which none of these restrictions were enforced ; neither could the constructive agencies be brought into play with any prospect of important success if such recreative agencies as were established had to compete with others associated with the sale of drink. The Scandinavian experiment demonstrates no point more clearly than the necessity of obtaining and retaining a monopoly of the retail sale of drink in a locality. The Norwegian System essentially ONE OF Control. But these considerations, important as they are, fail to bring out the essential i84 COMPANY SYSTEM AND TRUSTS. differences between the two systems. The Norwegian System is in its very essence a system of control. The Government and the people of Norway frankly recognise that the sale of drink is one that needs to be controlled. The Company System will not act as a charm. It will be efficient in so far as it becomes, in fact as well as in name, a controlling system ; and in order that this end may be secured, the Companies are not left to their own devices, but work under the joint supervision of the Crown and of the local authorities. It is in the wise combination of central control and local initiative that the singular excellence of the Norwegian System consists. John Stuart Mill expressed the opinion that the reformed English Poor Law is a happy illustration of the combination of State action with local action, — the State determining the principles upon which relief shall be given, but leaving to the localities the administration of the Act. A similar illustration is offered COMPANY SYSTEM AND TRUSTS. 185 in the relation of the Central Government to the Controlling Companies in Norway. The management of these Companies is not a matter which any citizens destitute of experience, however honest and well- intentioned, can undertake without guidance. The results of a wide experience have been garnered by the State, and the State wisely refuses, in a matter where such great interests are at stake, to permit crude and immature experiments. At the same time it does not enforce any cast-iron system ; so long as certain broad lines of action which experience has found to be essential to success are adhered to, the Companies are left free from harassing interference. Leaving for a moment these general principles, let us consider what happens in Norway when a town wishes to establish the Company System. The right of retailing ardent spirits may only be granted to societies whose articles of incorporation are confirmed by a resolution of the magistracy i86 COMPANY SYSTEM AND TRUSTS. and municipal council, and are sanctioned under the royal seal. This necessity at once guards against the introduction of ill-considered schemes conducted on principles contrary to those which the State and the Norwegian people have determined to be necessary for the conduct of the trade. Then the appropriation of the profits is strictly defined by statutory law. Sixty-five per cent, goes to the Central Government, and of that portion (viz., twenty per cent.) which is left to the administration of the Company, none of it can be applied to objects for which the nmnicipality itself , under the laws in force, is responsible. It can only be applied to objects of " public utility " not chargeable to the rates. The balance of fifteen per cent, which goes to the municipality is an allowance in lieu of the much larger sums previously derived from the licence tax now abolished. It is also provided that the " accounts of the Samlags shall be kept according to the forms prepared by the COMPANY SYSTEM AND TRUSTS. 187 department concerned, and shall be audited each year by two auditors, one of whom shall be elected by the Communal Administration, the other by the Superior Authorities." The representatives of the Crown, of the magistracy, and of the municipal council are entitled to inspect the books and accounts of the Samlags at all times. So thorough is the supervision that even the choice of a manager for each place of sale is subject to the approval of the local magistracy and municipal council. The association of the Companies with the municipalities is also worthy of note. The municipality is the ultimate licensing authority ; ^ it determines the number of licences that shall be issued, and (in Bergen) while one half of the committee of management is chosen by the shareholders, the other half is chosen by the municipal council. This association makes the Companies responsive to public opinion. The transactions ^ See Appendix, p. 249. i88 COMPANY SYSTEM AND TRUSTS. of the Company are carried on subject to full public scrutiny. The Companies are worked, therefore, under three powerful safeguards against abuse : — I. — There is the safeguard of statutory law attaching to their constitution, to their administration, and to the general appropriation of their profits. 2. — There is the safeguard of supervision by the licensing authority. 3. — There is the safeguard which attaches to affairs carried on directly under the public eye, and which are subject ultimately to public control. Yet, along with this efficient control there is much local liberty ; there is a power of local adaptation of means to ends to a degree which cannot be predicated of any other system. The localities are left free to work out their deliverance from the drink curse by ' methods which they deem the best. COMPANY SYSTEM AND TRUSTS. 189 Norwegian and Public-House Trust Systems Compared. Now, compare all this with the conditions under which the Public-House Trust Companies of the United Kingdom work. There is in this country no statutory law defining and limiting the sphere and character of a Trust Company's operations. The control exercised by the State over their articles of association is similar in character to that exercised over the articles of association of a cycle company. The control goes no further, and has no reference to the special danger of the drink trade. There is no security that the policy of a Trust Company will be responsive to an advancing public opinion ; nor are the transactions of the Company conducted directly under the public eye in the sense in which those of the Norwegian Samlags are conducted. Over the vital question of the appropriation of the profits neither the State nor the local authority has any control. The books are not kept igo COMPANY SYSTEM AND TRUSTS. upon a method determined by the State, nor does the State or any local authority share in a yearly audit. The central principle which underlies the Trust Companies, namely, the elimination of private profit from the sale of drink, is unquestionably sound ; but its practical application in the United Kingdom is hindered by limitations which only legislation can remove. The high-minded men who have initiated the Trust movement are indeed heavily handicapped in their efforts to introduce, under safe and stable conditions, a system that shall lessen the evils of intemperance. They necessarily work under adverse competitive conditions, the field of their operations is severely restricted, and they have not the support of strong statutory law. The evidence of Scandinavia is surely decisive that public control of the liquor traffic, whether exercised through municipalities or through controlling companies, should always be under the direct supervision of the Central COMPANY SYSTEM AND TRUSTS. 191 Government and only within clearly defined statutory limits. And especially that the appropriation of the profits should be determined by law, and be such that localities can have no inducement either to stimulate or to continue the traffic for the sake of the profit which it yields. CHAPTER X. The Possibilities of Company Control compared with the Possibilities of Private Licence. BEFORE bringing the possibilities of the two systems into comparison, a preUminary question awaits consideration. What are the vital facts in connexion with intemperance with which the social reformer has to concern himself ? Are they the number of arrests for drunkenness, or the statistics of consumption ? This question cannot be better introduced than by a consideration of the remarkable results which have been achieved in Liverpool through the vigorous enforcement of the existing licensing laws. The experiment has excited much attention, and last year (1902) separate deputations from the magistrates of Glasgow and of Dundee visited Liverpool for the PRIVATE LICENCE. 193 purpose of investigating the facts upon the spot. The printed reports of these two deputations are full of interest. The extraordinary reduction in the number of persons proceeded against for drunkenness in Liverpool since 1889 will be seen from the following figures : — Liverpool. Y Proceeded against ^^^' for Drunkenness. 1889 16,042 i8go 14,680 1891 11,343 1892 9,005 1893 7^936 1894 5,657 1895 5,305 1896 5,026 1897 5,105 1898 4,339 1899 4,069 1900 4,180 1901 4,327 1902 5,115 Both the present and the late Chief Constables state that no change has been 194 PRIVATE LICENCE. made in the tabulation of the arrests for drunkenness, and that the figures given are an actual index of the criminal drunkenness to-day and in recent years, as compared with an earlier period. The question will natural^ be asked : What has been the cause of this great reduction ? Let us in the first instance see to what it has not been due. The subjoined table shows the reduction in the number of " on " licence houses between 1889 and 1902, and the relation which the " on " licences bore in each year to the popula- tion : — PRIVATE LICENCE. 195 II K!^ . ided ; for nne! 00 tion 02UOOt-lCOa3 ¥.^^°-4 ooor^t-oooot^t-osbcbast- Prot agaii Drun per I Popi CO n^-^>ou:>cooOi— ii-i(Mco^-* ^1 iN©qC£)C5?OTtlrHtXMQO C0-*-O'^T}<-:tQO 2-§ COOUS-rfOXOOiCOOlOOC^CS O) oq_ a3_ 00^ x_ t~_^ 02 ao^ oo co x^ 00 t^ c^ 0. ''"N, ,,^-^.,4 •^3 "13 0) «> 1 TJ TJ a d 4> c; ^— V -^J <-^-«-' '^ tn X « K "3 ::2 V ^ (u IT. ^ m U >> >^ O. : co<:ooo5xt-<^^locO'*.-l(^^coT}^ - aOTj*cooaOi-too?D(>ioscoco(M U cooQooiO(M(Moocoo5-*oco'oq' : cqc^ji-ir-ioQoqoiococot-QOooo i «i »0 U5 «3 CO CD CO CD C~ 1 1 osOr-ieicOMHuscoc-aocsOi-icM I (9 QOOiOiOlClClClCiCiCSCSOOO > QOxaoQOooxxx>aoaoaoooso5 cr> V ^ X a o e— « j- « 3 5. ^ o ° °- 5 ^ rt w uib 2 o is"" V" ■" •« (U tn ■ _ 3 >, ? *. O ' D4 rt UJ O rt O, Cl, C -« -.4' 0) 3 > O ^ M.i O J rt '-n C u S !••, O O •5 i-3^«^ D > a X *> ™ u 3 ■'3 >~. « -S 05 ,a o - ., S 1= V 5 - rt a^^5 . Si .S3 g,t^ cn3 O fe ^ic C rt rt •*- CU -S « -"" — """H .-- en" 4j en -^ E rt " 3 ^ -a ^a . o rt (u " "t; =• I>CSlO0iOO'-''-''-*05t>>-4C0O'-' pCD'HOOC0OC0'* 05 01 CO (21 O(>JOC5O0000THCC>OCiOt~T-(O 00OC-G_ t~ O^ CO rH QC T-H O 0_ CO 00 C0_ 4C 00 t> "*' 00' cc' cq oq' (m' im" co r-T i-i" i-T CO _ ») o — 03 re u 3 20.-0 « fee JOlOCOCOC~COO-*Q005'*aOQO'*t> 0'*Cii^cot^ox^aoQOoci'*T-( -rJOJC-CC>t~CD ^ c O M lOt-t>CD05000t>QO'— iW5t— lOlC— CS C~»-(t^OOt--^T— ICOCDt-COOCMiO i>-cocococo CO I— 1 I— I U) 5; 5 <^ oj t^ !2 .r; fl -^-' y o c G o ^-1 c c •OD o > < xn APPENDICES. 257 The Alleged Drunkenness of Finland. Among the statements made by Mr. Walker is the following : — " On the other hand, Finland — one of the homes of a ' Gothenburg ' system of the strictest kind — consumes the least alcohol per head of an)' European country, while we have it on the authority of travellers that the natives are very drunken." Observing that the article upon Finland in the new volumes of the Encydopcedia Britannica was written by Prince Kropotkin, we submitted to him Mr. Walker's statement. Writing under date December 2nd, 1902, Prince Kropotkin replied : — " The statement by Mr. John Walker con- cerning drunkenness in Finland is absolutely untrue. There is very little drunkenness in Finland, as a rule, as compared with other northern countries : surely much less than here [England]. I remember that some three years ago a book was published by an English- man, in which there was such a statement. But (1) the author was known for his untrustworthiness, and (2) he had only 258 APPENDICES. travelled from Tornea to Varanger Fjord, and having had trouble with the post-keepers, accused them of wholesale drunkenness." If any corroborative evidence were wanted, it would be found in a work published in igoi, by Mr. Harry De Windt, Finland as it IS, from which we subjoin the following. After alluding to the opinion commonly held in this country that the sobriety of the Finnish peasantry is something on a par with that of the Muscovite Moujik, and giving reasons to show that this opinion is mistaken, Mr. De Windt adds : — " In face of these facts I refuse to believe that the Finns are an intemperate race, for in all my wanderings throughout the country I never once saw a drunken man until I reached TorneS. And he was a Swede from South Africa."^ And, again, after leaving Finland, Mr. De Windt writes : — " I crossed Finland without once en- countering an inebriate of either sex, while 1 p. 48. APPENDICES. 259 one day in Haparanda I met a dozen drunken men in the course of a short walk."^ The South Carolina State Monopoly. The Dispensary System of South CaroHna has little in common with the Gothenburg System, except that in both the liquor trade is taken out of private hands. The Dispensary System is, however, of special interest as showing that, even under a system defective in many ways, the political power of the Trade is practically destroyed when private profit is dissociated from the sale of drink. Mr. Walker supposes the contrary to be the fact. He writes : — " The Committee of Fifty — the impartiaUty of whose opinions may be vouched for — say in their first Report upon the Liquor Problem {2nd ed., p. 166), that 'Underneath the opposition lies the feeling that in furtherance of an ostensibly purely moral object the advocates of the Dispensary System have grasped the opportunity of entrenching themselves in power, and abrogated the rights of local self- government in a manner at variance with all the political traditions of South Carolina. 1 p. 27S. 26o APPENDICES. That the State control of the sale of liquor cannot be dissociated from, politics is admitted by its Prom-oters to be an inhere7it defect of the system.' " The words which we have italicised certainly appear to support Mr. Walker's view, and it was only after one of the present writers had visited South Carolina that their real meaning was understood by us. In the 7th and subsequent editions of The Temperance Problem and Social Reform^ we say^ : — *' In his recent visit, one of the present writers was assured by State officials and influential citizens representing widely different points of view, that the liquor interest had been predominant in municipal elections prior to the establishment of the Dispensary System, but that since its introduction this influence had been destroyed. These assurances accord with the declaration of a former Governor of the State, who, in his message of November, 1893, said : — 1 In the earlier editions (i to 6), the writers attributed to the italicised words the same meaning that Mr. Walker attaches to them. He, however, quotes throughout from the 7th edition, which contains the true interpretation of the words as subsequently ascertained by the present writers. APPENDICES. 261 "'The local whisky rings, which have been the curse of every municipality in the State, and have always controlled municipal elections, have been torn up root and branch, and the influence of the bar-keeper as a political manipulator is absolutely destroyed.' " This strong statement is quite consistent with the words employed by the present Governor (January loth, 1899) : — * The new system,' he said, ' has now been in force three years, and, in my opinion, it has failed to accomplish the purposes of its advocates. The idea was to divorce the Dispensary System from politics and to put it under a strictly business management. No such result has followed. It is notorious that the Dis- pensary is as much or more in politics than it ever was.' The apparent contradiction is such for an English reader only. The reference is simply to the notorious ' spoils system ' of American party politics. The Dispensary System is * in politics ' merely in the sense in which any municipal undertaking 262 APPENDICES. — gas or waterworks or tramways — would be * in politics ' if the posts in connexion with these undertakings were given by preference to the adherents of one political party, instead of to the fittest men irrespective of party. In other words, the Dispensary System shares in that which is so often the bane of municipal government in the United States. In a better sense, too, the system is * in politics,' as the discussion upon its merits is not yet closed, public opinion being divided between the relative merits of the Dispensary System, High Licence and Prohibition. As a matter of fact, in South Carolina, as in Scandinavia, the taking of the trade out of private hands has destroyed its electoral power." Mr. Walker justly says that the impartiality of the opinions of the Committee of Fifty may be vouched for. This is certainly the case, and therefore to set at rest all doubt as to the actual fact, we submitted to Mr. John Koren, who wrote the Report of the Committee of Fifty which Mr. Walker quotes, APPENDICES. 263 the extracts from The Tempermtce Problem and Social Reform^ and those from Mr. Walker's book given above. Mr. Koren, writing under date 6th August, 1902, says (the itahcs are ours) : — " In reply to yours of July 11, let me say that I agree with the statement embodied in the clipping you sent me, to the effect that, as a result of the Dispensary System, the local whiskey rings in South Carolina have been destroyed, and with them the influence of the bar-keeper as a political manipulator. Nevertheless, the Governor of South Carolina, whom you quote, was quite right in saying ' It is notorious that the Dispensary is as much or more in politics than it ever was.' But he refers to the spoils system in our political life. Where that exists — and it flourishes in South Carolina — all undertakings of the State become so many political 'jobs.' Thus, adherents of the party that established the Dispensary System were selected to conduct all Dispensary affairs. It was their reward 264 APPENDICES. for political services in the past, and the condition of further ' party work ' in the future. The evils of the spoils system are, however, quite distinct from the nefarious activity of the liquor dealers in politics. But the latter has been destroyed for all time in South Carolina^ and if the Dispeftsary System had accomplished nothing else, it would have been worth the experiment. " What I have said is perfectly consistent with the statement made by the Committee of Fifty in their first Report (2nd ed., p. 166), and which Mr. John Walker quotes in his book. It is one thing to say that the ' State control of the sale of liquor cannot be dis- sociated from politics,' and quite another that by taking the trade out of private hands the political influence of the trade has been destroyed. If Mr, Walker had understood American politics, he would not have made the mistake of using the quotation in question to support his position. Since the report of the Committee of Fifty was written, things APPENDICES. 265 have changed for the better in South CaroHna. Many of the political abuses under the Dispensary System have been corrected : affairs are managed more on a business basis than with an eye to political advantage ; and I look forward to the time when it only can be said in a very restricted sense that the Dispensary System is a part of the political machine of South Carolina. At present the point to be remembered is that Soiith Carolina is the only State in the Union without a pernicious saloon element in control of public affairs. Surely this is a great gain." Are the Statistics of the Consumption of Spirits in Gothenburg, Stockholm, and Bergen trustworthy ? Mr. Walker not only questions the statistics of the national consumption of spirits in Scandinavia, but also those of the individual Companies. Thus (p. 24), referring to our table showing the bar sale of spirits in Gothenburg from 1875 to 1899,^ he writes : — " Such a statement can only be prepared by- inquiring at the different sources of retail supply, and adding the results together." 1 The Temperance Problem and Social Reform, 7th edition, p. 457. 266 APPENDICES. He then considers what an inquiry of this kind would entail in such a city as Edinburgh, and concludes : — " Consequently, among the hundreds of different channels of supply, it would be impossible to arrive at a true estimate of the sale in any of our towns or in any one locality ; ajid the Stvedes arc less well provided tvith the vieajis of doing so than oicrselves. Yet Dr. Gould, Messrs. Rowutree and Sherwell, Mr. Whitiaker in his ' Memorandum on the Royal Commission Report,' and almost every other writer treat these figures as if they were wholly trustworthy, and accept them as completely refuting such judicially recorded statistics as arrests." Mr. Walker, in this passage, draws no distinction between statistics of consumption and estimates of consumption. The writers whom he quotes, so far as we are aware, always differentiate between the two. The figures given in The Temperance Problem and Social Reform are statistics of consumption, and are wholly trustworthy. The difficulty which Mr. Walker imagines to attach to the obtaining of these figures is, in fact, non-existent. Mr. Andree, the Manager of the Gothenburg Bolag, in a letter dated July 31st, igo2, writes: — "You are perfectly APPENDICES. 267 right in thinking that we know the consumption of spirits to the very litre at our retail [off] and bar shops." The method adopted for supplying the various Bolag establishments is of course entirely different from that which obtains in Scotland or England. As Mr. Andree says, " Our managers send their requisition to the office, and we order from the different wholesale dealers the quantity of spirits required. The casks, large and small, are marked by the Government, so we order cask number so-and-so to be filled." As the clubs, hotels, and restaurants are all supplied from the Bolag, their sales are knoivn equally with those in the Bolag shops, and are included in the published returns. In Bergen, the check upon sales is equally complete. Mr. Wilson writes : — "The stewards indent upon the Society's warehouse for what liquors they require to maintain the stocks of the bar under their charge, and they are held responsible for the value. The cash received at the bars is paid daily to the cashier at the head office. 268 APPENDICES. and the stewards render a statement of unsold stocks once a week ; while an inspector checks the stocks and sees that they correspond with the accounts kept at the head office. The cash received at the head office and the value of the unsold stock must balance the account of the bar kept at the head office." ^ The statistics of consumption given by us are thus shown to be altogether trustworthy. The estimates of consumption made by the writers whom Mr. Walker quotes are the estimates of trained experts, and their con- clusions cannot be set aside by his ipse dixit. Results of Voting of Norwegian Towns upon the Retention or Suppression of Samlags. Number of Towns in which a Vote was taken. Number of Towns in which Samlag was retained. Number of Towns in which Samlag was abolished. 1895 1896 1897 1898 1899 13 9 11 12 6 2 4 8 8 3 11 5 3 4 3 51 25 26 1 Local Option in Norway, by Thomas M. Wilson, pp. 68, 69. APPENDICES. 269 It will be seen that the vote taken in 1895 (operating for five years) led to the suppression of the Samlag in eleven towns, and to its continuance in two towns — the suppression of the Samlag carrying with it the establishment of prohibition. The wisdom of this policy was questioned at the time by many friends of temperance, and it may be of interest to note that, in 1900, twelve^ out of the same thirteen towns voted again, with the result that the two towns which had in 1895 retained the Samlag, once more voted for its continuance, while six towns which had in 1895 voted against the Samlag, i.e., for prohibition, now voted for the re-establishment of the Samlags. The return of the six towns from prohibition to the Samlag is the more remarkable as in these elections those who have the right to vote but do not exercise it are counted as 1 In the case of the remaining town (Skien) where the abolition of the Samlag in 1895 led, not to Prohibition, but to the re-establish- ment of one of the very few privileged licences still existing, the Chief of the Government Statistical Department, Christiania, writes that "no new voting has been required." 270 APPENDICES. voting for the status quo. In 1895 this regulation gave the vote of the indifferent to the retention of the Samlags, but in 1900 it gave their vote (in the case of the eleven towns which had adopted prohibition) to the retention of prohibition. The nine towns which had voted in 1896 voted again in 1901, and the eleven towns which had voted in 1897 voted again in 1902, but in neither case were the earlier decisions disturbed. It should, however, be noted that in Bergen, since the ist of January, 1902, all ' on ' sale of spirits in the town has been abolished, and since the beginning of 1903 the * on ' sale has also been abolished in Larvik. In neither Bergen nor Larvik, however, are the native spirits sold in sealed bottles, as in Russia and South CaroHna, but the purchaser usually brings his own bottle. APPENDICES. 271 Rate that would be Required to Meet the Estimated Cost of Counteracting Agencies if borne by the Rates. BOROUGH. Population. 1901. Yearly sum that would be required for Counteracting Agencies. Yield of a Penny Municipal Rate.i II. Rate that would be required to meet the cost of Counteracting Agencies. III. London — Bermondsej' 130,760 129,680 168,822 298,600 206,180 137,289 81,942 176,628 143,976 133,301 235,317 183,011 168,907 259,339 112,239 232,034 301,895 101,463 334,991 219,272 26,923 £ 13,076 12,968 16,882 29,860 20,618 13,729 8,194 17,663 14,398 13,330 23,532 18,301 16.891 25,934 11,224 23 203 £ 1,893 2,159 3,287 5,833 5,182 3,197 3,994 9,308 6,050 7.034 7,508 22,805 4,216 5,288 2,863 d. 7 Bethnal Green Poplar 6 5 Stepney South wark 4 Fulham 4i 2 Hampstead Kensington 2 Paddington St. Marylebone ... St. Pancras 2^ 2 4 4 Westminster Battersea Camberwell 5 Hammersmith Wandsworth 4 3J 3^ Lambeth 30 189 7 7Q.*; Finsbur}' 10,146 33,499 21,927 2.692 3,986 7,970 4.854 20,368 "-'4 2^ Islington Hackney 4^ City of London ... ^2 Administrative County of London 4,536,541 453,654 167,027 2f 1 The yield of a penny rate is only a rough indication of the rateable value of a town, as some places deliberately adopt a low rate of valuations. For the purposes of this table, however, these variations are immaterial. TOWN. Population. 1901. England & Wales — Iviverpool Manchester Birmingham Leeds Sheffield Bristol West Ham Bradford Nottingham Hull Newcastle Salford lyeicester Portsmouth Cardiff Bolton Sunderland Blackburn Birkenhead Preston Norwich Gateshead Plymouth Derby Swansea Wolverhampton ... Middlesbrough Northampton York Grimsby Barrow-in-Furness Great Yarmouth ... Tynemouth Burton-on-Trent . . . Oxford Cambridge Scarborough Hartlepool 684,947 543,969 522,182 428.958 380,717 328,842 267,308 279,809 239,753 240,618 214,803 220,956 211,574 189,160 164,420 168,205 146,565 127,527 110,926 112,982 111,728 109,887 107.509 105,785 94,514 94,179 91,317 87,021 77.793 63,138 57,584 51,260 51,514 50,386 49 413 38,393 38.160 22,737 Yearly sum that would be required for Counteracting Agencies. I. Yield of a Penny Municipal Rate.i II. Kate that would be required to meet the cost of Counteracting Agencies. III. £ 68.495 54.397 52,218 42.895 38,072 32,884 26,731 27,981 23,975 24,062 21,480 22.096 21,157 18.916 16.442 16,820 14,656 12,753 11,093 11,298 11,173 10,989 10.751 10,578 9,451 9,418 9.182 8.702 7,780 6,314 6,759 5.125 5.151 5,039 4,941 3,840 3,816 2,274 i 13,580 18,210 11,495 7,518 6,560 6,100 4,500 5,322 3,750 3,948 5,000 3,718 3,860 3,325 4,023 2,916 2,384 2,031 2,300 1.500 1,600 1,416 1,880 2,067 1,462 1,389 1,285 1,470 1,603 964 987 755 934 1,300 1,460 1,038 880 306 Average 1 See footnote on previous page. 272 APPENDICES. 273 TOWN. Population. 1901. Scotland— Glasgow Edinburgh Dundee Aberdeen ... Paisley Govan Leith Greenock ... Kilmarnock Kirkcaldy ... Hamilton ... Perth Ayr Falkirk Dumbarton Stirling Dunfermline 760,423 816,479 160.871 163,108 79,355 76,351 76.667 67,645 34.161 35.000 32.775 32.872 28.624 29,271 18,836 18,403 25,250 Yearly sum that would be required for Counteracting Agencies. I. Yield of a Penny Municipal Rate.^ 11. 76.042 31,648 16.087 15,311 7,935 7.635 7.667 6,764 3,416 3,500 3,277 3,287 2,862 2,927 1,884 1,840 2.525 Rate that would be required to meet the cost of Counteracting Agencies. III. £ 19,000 10,636 3,093 3,280 1,367 1,200 2,036 1,2.50 537 500 526 700 657 460 290 395 390 Average d. 4 3 5i 4^ 5J 6i 3f 5h 6i 7 6i 4f 4i 6i 6^ 4f 6^ 5i Ireland— Dublin Belfast Cork Londonderry Limerick .... Galway 289,108 348,965 75,978 39,873 38,085 13.414 £ 28.910 34,896 7.598 3,987 3,808 1.341 £ 3,630 4,500 716 400 280 110 Average! d. 8 7f 10^ 10 13i I2I i_ 101 1 See footnote, p. 271. Index. Aarestad, Mr., quoted, 122, 147. Aberdeen, drunkenness in, 13, 20, 256; rate required to meet cost of counter-attractions in, 273. Absolute Alcohoi., see 2uiderh\Q.o\iQ>\2i\\6. Spirits. Age lyiMiT, see U7ider Children. AiR-GuN Clubs, in Bir- mingham, 132. Alcohoe, excessive con- sumption of in United Kingdom, i; expenditure upon, I, 2 ; consumption of in United States of America compared with United Kingdom, 2 ; alcoholic strength of spirits in Stockholm. 52, 54. 58, 59 ; in Gothen- burg, 32 (footnote), 52, 54,58,59; in Christiania, 52, 54, 60 ; in Bergen, 52, 54. 59, 60. Alcoholic Strength of Spirits, see binder K\Q.oh.o\ and Spirits. Allia7ice News, quoted, 40 (footnote). Alh'mice Record, quoted, 137- America, alleged illicit distillation in, xii., xvi. ; reliableness of statistics of consumption in, xv. ; consumption of spirits in, XV., 2, 62 ; duty on spirits in, 62 ; trade menace in, 103, 259; counter-attractions in, 220. Andree, Mr. Ernst, quoted, 33 (footnote), 35, 158, 266, 267. Anson, Captain G. A., quoted, 15. Arrests for Drunken- ness, as an index of intemperance, 14, 17 ; in Gothenburg, not due to Company system, 32 ; in Liverpool, 40 (foot- note) ; analysis of in Gothenburg, 41. Seealso zinder Drunkenness. Atlatiiic Monthly, The, quoted, 104. Ayr, drunkenness in, 20, 256 ; rate required to meet cost of counter- attractions in, 273. 276 INDEX. Back-doors to Public- houses, in Liverpool, 131, 203; not found under Gothenburg sys- tem, 131. Barrow-in-Furness, drunkenness in, 255 ; rate required to meet cost of counter-attrac- tions in, 272. Bass, Mr., quoted, 83 (footnote). Battersea, rate required to meet cost of counter- attractions in, 271. Beckman, Mr. Ernst, quoted, 69. Beer, no monopoly of sale of, by Samlag, viii., 33 ; sale of, in Sweden, 24, 33 ; in Gothenburg, 33. 35' 38. 40 (footnote), 44 (footnote) ; consump- tion of, in England and Wales, Ireland, Scotland and United Kingdom, 35 (footnote); in Gothen- burg, 35, 36 ; in Sweden and Norway compared, 56 ; in Liverpool, 208 ; price of, in Gothenburg, 36; number of beershops in Gothenburg, 36 ; police report upon sale of, in Gothenburg, quoted, 37 ; effect of sale of upon intemperance in Gothenburg, 41 ; petition to bring sale of under Company sj^stem, 49, 50, 230 ; relation of taxation to consumption of, 56 ; duty on, in Norway, 57 ; in England, 57 (footnote) ; recom- mendations of Tem- perance party as to sale of, 120, 121, 162, 230; extra price charged for, to Samlags, 123. Sec also tinder Malt. Beer Duty, in England, 57 (footnote). See also tinder Malt. Beer Trade, The, and the Company system, viii., zz^ 147. Belfast, drunkenness in, 255 ; rate required to meet cost of counter- attractions in, 273. Belgium, duty on spirits in, 62 ; consumption of spirits in, 62. Benefits ofthe Company System, 7, 227-237. Bergen, drunkenness in, 13 ; price of spirits in, 52, 54, 58, 60 ; alcoholic strength of spirits in, 52, 54, 59, 60 ; effect of Company system in, 179 ; consumption of spirits in, 211 ; reduction of sale of spirits in, under Company system, 211 ; constitution of Munici- pal Council in, 250 ; reliableness of statistics in, 265 ; abolition of " on" sales in, 270. Bermondsey, rate required to meet cost of counter- attractions in, 271. INDEX. 277 Berner, Mr. H. E , quoted, 121, 146, 165. Bethnal Green, esti- mated cost of counter- attractions in, 224, 271. BiLLSON, Mr. a. a., quoted, 136. Birkenhead, drunkenness in, 254 ; rate required to meet cost of counter- . attractions in, 272. Birmingham, air-gun clubs in, 132 ; estimated cost of counter-attrac- tions in, 224, 272 ; number of "on" licences to population in, 197 ; drunkenness in, 254. Bishop of Gothenburg, quoted, 49, 50. Blackburn, drunkenness in, 254; rate required to meet cost of counter- attractions in, 272. Blidberg, Mr. Figge, quoted, 45. Blogg, Rev. Henry, M. a., quoted, 180 (footnote). Blomouist, Mr. M, G., quoted, 107. BOLAG, sale of beer by, 33 (footnote); eating-houses introduced by, 28 ; as a reforming agency, opinions upon, 170. See also wider Company System and Gothenburg. Bolton, drunkenness in, 254 ; rate required to meet cost of counter- attractions in, 272. Bradfield (Berks.), pauperism in, 76. Bradford, proportion of "on" licences to popula- tion in, 197; drunkenness in, 254; rate required to meet cost of counter- attractions in, 272. Branvin, definition of, 25 (footnote). Breach of the Peace, relation of, to drunken- ness, in Scandinavia, 17 ; in Scotland, 18, 19. Brewers, political in- fluence of, 83 (footnote), 98-102, 107 (footnote), 119, 121, 164, 228; control of sale of beer, in hands of. 1 21-124. See also under Menace. Brewers^ Almanack, The, quoted, 80, 85. Brewers' Jotiriial, The, quoted, 100. Brewery Shareholders, political organisation of, 98, 228 ; power of, as affected by controlling system, 124. See also U7ider Menace. Brewery Shareholders' Association, The National, 100. Bristol, number of " on " licences to population in, 197 ; estimated cost of counter-attractions in, 224, 272 ; drunkenness in, 254. British Consuls, testi- mony of, in favour of 278 INDEX. controlling system, 166, 167, 180 (footnote). British Gothenburg Experi- ■}ne7its and Public-House Trusts, quoted, 4 (foot- note), 128. Brooks, Mr. J. Graham, quoted, 8 (footnote). Bruce, Mr., referred to, 79. BuRTON-ON-TRENT,drunk- ^ euness in, 255 ; rate required to meet cost of counter-attractions in, 272. Cai^kins, Mr. Raymond, quoted, 220. Camberwell, rate re- quired to meet cost of counter - attractions in, 271. Cambridge, drunkenness in, 255 ; rate required to meet cost of counter- attractions, 272. Caudelet, Mr. Geo., quoted, 92. Cardiff, drunkenness in, 254 ; rate required to meet cost of counter- attractions in, 272. Chamberlain, Mr. Arthur, quoted, 132,197. Chamberlain, Mr.Joseph, quoted, 108, 170. Children, sale of liquor to, 28 ; in Gothenburg and in United Kingdom, 28 ; in Liverpool, 203. Christiania, drunkenness in, 13 ; price of spirits in, 52, 54, 60 ; alcoholic strength of spirits in, 52, 54, 60. Christiansand, Samlag's action in restricting sales, 141, 142; coffee houses established by Samlag in, 142 ; effect of Company system in, 176. City of London, rate required to meet cost of counter-attractions in, 271. Class Divisions in Gothenburg, 26 (foot- note). Coffee Houses, estab- lished by Christiansand Samlag, 142. "Committee of Fifty," quoted, 103, 139, 220, 259- Cofunionwealth as Publica7i, The, viii., 4, 169. See also underWoXker, Mr. J. Company System, The, opposition to, 3, 121 ; benefits of, 7, 227-237 ; local control essential to, 10 ; essentially a controlling system, 24, 184; Gothenburg under, 24 ; restrictions under, 24-29, 58, 141 ; effect of, upon drunkenness, 40 (footnote) ; not respon- sible for drunkenness, 43 ; divorce of drink trade from politics, under, ix., 105 ; Dis- pensary system distin- guished from, 10, 126 ; INDEX. 279 private licence con- trasted with, 141 ; tem- perance work carried out under, 141 ; coffee houses established under, 142 ; progressive character of, 144 ; evi- dence of progress under, 145 ; temperance resolu- tions favourable to, 146 ; relation of, to the Beer Traffic, viii., 147 ; tem- perance support of, 147, 230; strength of system evidenced, 148 ; improve- ment in, since 1874, 148 ; recent record of, 149 ; corruption alleged, 151 ; the allegation refuted, 153 ; number of share- holders in Swedish Bolags ( 1901), 156 ; reforms in, asked for, 158 ; Sunday closing under, 158, 159 (foot- note) ; appropriation of profits under, 157, 163- 168, 186; evidence of foreign observers upon, 169-180; inquiries into, reviewed, 171; Mr. Carroll D. Wright's testimony to, quoted, 171 ; Dr. Gould's opinion of, 173; Mr. John Koren's investigation of, 174; Mr. Conradi, quoted, 176 ; effect of, in Chris- tiansand, 177; Mr. Franklin (Vice-Consul), quoted, 178; Mr. T. M. Wilson's testimony to, 178, 179; effect of, in Bergen, 179, 211; other testimony in favour of, 166, 167, 180; compared with Public-House Trusts, 1 81-19 1 ; method of establishment of, in towns, 185 ; safeguards against ill-considered schemes of, 186-188; association of Com- panies with Municipali- ties, 160-161, 185-1S7; transactions under, open to scrutiny, 188; possibilities of, com- pared with private licence, 192-226; reforms easily effected under, 212, 232 ; advantages of, 227-237. See also under Gothenburg ayid Goth- enburg System. Compensation, to dispossessed licence holders, not paid in Liverpool, 202 ; question of, in Sweden and Norway, 239; in Russia, 241. Covipleat Efiglish Trades- man, 7">^^(Defoe), quoted, 140. Condemnation of pres- ent lyiCENSiNG System, 2. Conduct of Licensed Houses, Liverpool, 204. Conradi, Mr. T. M., quoted, 176. Consular Report, quoted, 48, 137, 242. 28o INDEX. Consuls' Opinion op Company System, i66, 176, 178, 180 (footnote). Contempora7y Review, The, quoted, 214. Controlling System, see under Company System. Cork, estimated cost of counter-attractions in, 224, 273 ; drunkenness in. 255. Corruption, alleged against Companies, 151 ; allegation refuted, 153. Counter- Attractions, need of, 9, 213 ; in Goth- enburg, 149, 150, 164 (footnote), 213, 221; in Russia, 214; in Moscow, 214; in St. Petersburg, 217; in Warsaw, 219 ; in United States, 220; "Substitutes for the Saloon," 220; estimated cost of, 223, 271 ; how funds to be raised to maintain, 225. Credit, sales on, abolished, in Gothenburg, 29, 138; in Russia. 137. Criminal Statistics for England and Wales, quoted, 133. Dancing and Music Licences, reduction of, in Liverpool, 131, 203. Davies, Mr. a. T., quoted, 197, 199, 204. Dean op Gothenburg, quoted, 49, 50. Depoe, quoted, 140 (foot- note). Denmark, consumption of spirits in, 61, 62 ; duty on spirits in, 62. Derby, drunkenness in, 254 ; rate required to meet cost of counter- attractions in, 272. Dispensary System, dis- tinguished from Com- pany system, 10, 126 ; menace eliminated under, 259. Distillation, Free, in Sweden, 112. Distillers, struggle with, in Sweden, 110-119 ; political power of, non- existent in Sweden, 119, 228. See also tinder Menace. Dix, Mr. J. W. G., quoted, 134- Drink, expenditure on, see 2i7ider Expenditure. Drink, Temperance and Legislatio7i, quoted, 207. Drink Trappic and Politics, ix., in Scandi- navia, no. III; divorce secured by Company system, 105, 227. See also tinder Menace. Drunkenness, in Gothen- burg, 13 ; in Scandinavia, 13 ; in Scotland, 13, 20, 256 ; arrests for, as an index of intemperance, 14 ; in Gothenburg due to sale of beer, 32, 41, 43 ; conditions requisite for comparisons of, 14-17 ; "breach of the peace" INDEX. 281 included in statistics of, in Scandinavia, 17 ; not included in Scotland, 18, 19; effectof control upon, 40 (footnote), 192-210; decline in, in Liverpool, 193, 194, 254 ; arrests for, in England and Wales, 254 ; in Ireland, 255 ; alleged in Finland, 257. Dublin, estimated cost of counter-attractions in, 224, 273 ; drunkenness in, 255. Dumbarton, drunkenness in, 20, 256 ; rate required to meet cost of counter- attractions in, 273- Dundee, drunkenness in, 13, 20, 256 ; rate required to meet cost of counter- attractions in, 273. Dtnidee Advertiser, quoted, 135- Dunfermline, drunken- ness in, 20, 256 ; rate required to meet cost of counter-attractions in, 273- Duty on Spirits, in Sweden and Norwaj^ 55, 233 ; in principal European countries, 62. See also tender Beer and Spirits. Eating-houses, intro- duced by Bolag, 28 ; sale of spirits in, 28. Edinburgh, drunkenness in, 13, 20, 256 ; estimated cost of counter-attrac- tions in, 224, 273. Elberfeld System in Gefle, 73. Electors, number of in Norway, ix. Elimination of Private Profit, 5, 109 ; destroys political power of Trade, 126. E7icyclop(Bdia Britannica, quoted, 75, 76. England and Wales, age limit in, compared with Gothenburg, 28 ; con- sumption of beer in, 35 (footnote) ; duty on beer in, 57 (footnote); pauper- ism in, 74 ; drunkenness in, 195 (footnote), 254; rate required to meet cost of counter - attractions in towns in, 272. Essential Principles of Company System, 5. Evidence of Foreign Observers on working of Company System. 169-180. Excise Duties, sec tinder Duties. Expenditure of Work- ing Classes on Drink in United Kingdom, I, 2, 210. Falkirk, rate required to meet cost of counter- attractions in, 273. Fiery Cross, The, quoted, 94. Finland, Gothenburg sys- tem in, 74 ; decreased 282 INDEX. pauperism in, 74; alleged drunkenness in, 257. Finla7id as it is, quoted, 258. Fiyiland, its Piiblic a7id Private Economy , quoted, 74- FiNSBURY, rate required to meet cost of counter- attractions in, 271. Food, sold by Bolag in Gothenburg, 149. Food and Drugs Act, referred to, xviii. Foreign Moneys and Measures, 247. Foreign Observers, evi- dence of, concerning Company system, 169. Foreig7i Office Report, quoted, 137, 242. FoRSTER, Mr. W. E., Bill introduced by, 88. Foriim, 77/6', quoted, 8 (foot- note). Fowler, Rt. Hon. H. H., Local Government Act of, used by Trade, 93. France, duty on spirits in, 62 ; consumption of spirits in, 62. Franchise in Norway, The, ix., X. Franklin, Mr. (Vice- Consul), quoted, 178 (footnote). Frederiksen, N. C, quoted, 74. FuLHAM, rate required to meet cost of counter- attractions in, 271. Galway, drunkenness in, 255 ; rate required to meet cost of counter- attractions in, 273. Gateshead, drunkenness in, 254 ; rate required to meet cost of counter- attractions in, 272. Gefle, Elberfeld system ^"'73; pauperism in, 73. Germany, duty on spirits in, 62 ; consumption of spirits in, 62. Glasgow, drunkenness in, 20, 256 ; estimated cost of counter - attractions in, 224, 273. Glasgow Magistrates, report of, on Liverpool, 129, 19S. Goteborgs Utskanknings Aktiebolag, The, quoted, 138. Gothenburg, drunken- ness in, 13-50; contrasted with Scotland, 13; causes of, 22, 23, 32-50 ; under Company system, 24 ; number of spirit shops in, 24; hours of sale in, 25,37; eating-houses in- troduced b}'^ Bolag in, 28, 149 ; sale of liquor to children in, 28 ; com- pared with England, 28 ; sales on credit abolished in, 29, 13S ; effect of controlling system in, 29-32 ; class divisions in, 26 (footnote) ; sale of spirits in, 30 ; price of spirits in, 23, 52, 54, 58, INDEX. 283 59; alcoholic strength of spirits in, 32 (footnote), 52, 54, 58, 59; sale of spirits by wine mer- chants in, 32 (footnote) ; sale of beer in, 33, 35-38, 40 (footnote), 44 (foot- note) ; price of beer in, 36; number of beershops in, 36 ; drunkenness in, due to sale of beer, 32, 41, 43 ; police report, quoted, 37 ; advance in wages in, 45, 46 ; Bishop of, quoted, 50; pauperism in, 63 ; improvement in condition of working classes in, 77 ; food sold byBolagin, 149; Sunday closingin, 15S, 159; need for counter-attractions in, recognised, 149, 150, 164, 213, 221 ; reliable- ness of statistics in, 265. See also tinder Gothen- burg system. Gothenburg Bolag, The, progressive action of, 149. See also lender Gothenburg and Com- pany system. Gothenburg System, The, objections to, vii. ; reduction in consump- tion of spirits under, xi., 30; criticism of, 3 ; elimi- nation of private profit under, 5 ; essential prin- ciples of, 5 ; benefits of, 7, 227 ; government monopoly distinguished from, 10 ; dispensary system distinguished from, 10, 126; applies to spirits only, 23 ; two systems contrasted, 40 ; evidence in favour of, 49, 166-167, 171, 173, 176- 180; petition to bring beer trade under, 5 ; pauperism not attribu- table to, 69 ; effect of, in Finland, 74 ; attitude of temperance part}- towards, 120-122, 145, 161 ; pushing of sales prior to establishment of, 138 ; evidence of pro- gressive character of, 144 ; Norwegian system compared with Swedish, 160 ; law drafted b}' temperance leaders, 161 ; system no bar to further legislation, 163 ; public opinion not hindered by public-house influence, 163 ; except as to beer, 164; profits, how appro- priated, 164 ; inquiry into, by Massachusetts Commissioners, 106, 174; b}' U.S. Commissioners. 171. See also U7ider Gothenburg a7id Com- pany system. Gothenburg Town Council, Report of Committee of. 221. Gould, Dr. E. R. L., quoted, 105, iii, iiS, 161, 170, 172. GovAN, drunkenness in. 20, 256 ; rate required to 284 INDEX. meet cost of counter- attractions in, 273. Government Monopoly, distinguished from Com- pany system, 10 ; con- trasted with previous system in Russia, 137. Grayshott Association, Committee of, quoted, xviii. (footnote). Grayshott Inn, The, xvii. Great Yarmouth, drunk- enness in, 255; rate re- quired to meet cost of counter - attractions in, 272. Greenock, drunkenness in, 20, 256; rate required to meet cost of counter- attractions in, 273. Grimsby, drunkenness in, 255 ; rate required to meet cost of counter- attractions in, 272. Guthrie, Mr. Alex- ander, quoted, 242. Hackney, rate required to meet cost of counter- attractions in, 271. Hamilton, drunkenness in, 20, 256 ; rate required to meet cost of counter- attractions in, 273. Hammersmith, rate re- quired to meet cost of counter-attractions in, 271. Hampstead, rate required to meet cost of counter- attractions in, 271. Hansard, quoted, 109. Harcourt. Sir William v., Ivocal Veto Bill of, 81, 87. Harstrom, J. F., quoted, 46. Hartlepool, drunkenness in, 255 ; rate required to meet cost of counter- attractions in, 272. Hartley, Mr. W., quoted, 96. High Licence, political corruption under, 103, 104. Historical and Philosophical Essays, quoted, 74. Holland, duty on spirits in, 62 ; consumption of spirits in, 62. Hope, Dr. E. W., quoted, 208, 209. Houldsworth, Sir William, quoted, i, 2. Hours of Sale, in Gothen- burg, 25 ; in Norway, 159- Hull, number of " on " licences in, 197 ; esti- mated cost of counter- attractions in, 224, 272 ; drunkenness in, 254. HuNGERFORD ( Berks. ) , pauperism in, 76. Illicit Distillation in Scandinavia, xiii., xiv. ; alleged in America, xii., xvi. Intemperance, arrests for drunkenness as an index INDEX. 285 of, 14. See also wider Drunkenness. Ireland, consumption of beer in, 35 (footnote) ; drunkenness in, 255 ; rate required to meet cost of counter-attrac- tions in principal towns in, 273. Irgens, Mr. Jorgen, quoted, viii., 250. Islington, rate required to meet cost of counter- attractions in, 271. Jensen, Mr. Lars O., quoted, 107 ; referred to, 146. Jerome, Mr. William TravERS, quoted, 139. Kensington, rate required to meet cost of counter- attractions in, 271. Ki^R, Mr. a. N., quoted, xiv. Kilmarnock, drunkenness in, 20, 256 ; rate required to meet cost of counter- attractions in, 273. Kirkcaldy, rate required to meet cost of counter- attractions in, 273. KoREN, Mr. John, quoted, 106 ; referred to, 172 ; inquiry into Company system by, 174. 263. Kropotkin, Prince, quoted, 257. Lambeth, estimated cost of counter-attractions in, 224, 271. lyARViK, abolition of " on " sales in, 270. Lawson, Sir W., quoted, 90, 91, 213. Leeds, number of "on" licences in, 197 ; esti- mated cost of counter- attractions in, 224, 272 ; drunkenness in, 254. Leicester, drunkenness in, 254; rate required to meet cost of counter- attractions in, 272. Leith, drunkenness in, 20, 256 ; rate required to meet cost of counter- attractions in, 273. Licence, private, defects of, I, 2; contrasted with Company system, 6, 141, 192 ; pushing of sales under, 127-143 ; com- munities fettered by, 226. See also tender Private Licence. Licences, method of granting, in Sweden and Norwa3% 248. Licensed Premises, in United Kingdom, num- ber of, 84, 231 : super- vision of, in Liverpool, 204, 205 ; reduction of, in Liverpool, 194; sur- render of, 204, 242, 246 (footnote). Licensed Victuallers' Defence League, National, quoted, 91, 93. 94- Lie C7i sing Adniimsirahon in Liverpool, quoted, 199. 286 INDEX. Lice?ising in the City of Birtningham, quoted, 197. Licensing Problem and Magisterial Discretion, The, quoted, 199, 204. Licensing System, con- demnation of present, 2. Licensing Wo rid, Th e , quoted, 83 (footnote), 96. Limerick, drunkenness in, 255 ; rate required to meet cost of counter- attractions in, 273. lyiNDBERG, K., quoted, xiii. Liq2wr P7vble}}i i7i its Legislative Aspects, The, quoted, 104, 139. Liquor Trade (The) and P01.1TICS, 140, 259. See also binder Brewer, Distiller, Drink Traffic and Politics, Menace and Shareholders. Liquor Trade, profits of, see under Profits. Liverpool, arrests for drunkenness in, 40 (foot- note), 254 ; objections to renewals of licences in, 129 ; Vigilance Com- mittee, quoted, 130, 204 ; reduction of music and dancing licences in, 131, 203 ; closing of back- doors in, 131, 203 ; effect of enforcement of licens- ing laws in, 192 ; reduc- tion of drunkenness in, 193, 194 ; reduction of licensed premises in, 194; number of "on" licences to population in, 197 ; Glasgow Magi- strates' report on, 198 ; additions to, and reduc- tions of, "on" licences in, 201 ; serving children in, 203 ; conduct of licensed houses in. 204 ; removal or surrender of licences in, 204, 242 ; police supervision in, 205 ; limited result of reforms in, 207 ; con- sumption of beer in, 208 ; compared with England and Wales, 209 ; cost of counter- attractions in, 223, 272. Liverpool Daily Post, quoted, 203, 208. Local Control essen- tial TO Company System, 10. Local Government Board, 30/// Aymnal Report of, quoted, 63 (footnote). Local Option in Noi"ivay (Wilson), quoted, 161. Local Veto, opposition of Trade to, 81, 87 ; power of Brewery Shareholders on, 125 (footnote). London, drunkenness in, 254 ; estimated cost of counter-attractions in boroughs of, 224, 271. Londonderry, drunken- ness in, 255 ; rate re- quired to meet cost of counter - attractions in, 273- INDEX. 287 Lords' Committee on Intemperance, Report of, quoted, 151. Malt, duty on, in Norway, 57- Manchester, number of "on" licences in, 197; drunkenness in, 254 ; rate required to meet cost of counter-attrac- tions in, 272. Massachusetts State Commissioners, inquiry by, 106, 174; opinion of, on Company system, 176. McHardy, Colonel, quoted, 18. Menace, to Municipal and Political Life, The, elimination of, under Company system, 8, 78, 105, 109, 110-119, 163, 227, 228 ; under Dispensary s^-stem, 259 ; evidence of existence of, in United Kingdom. 80 ; unlimited Trade funds promised, 83 (footnote) ; number of " local instru- ments," 84 ; the influence of publicans, 85 ; how exercised, 85 ; labelling Members of Parliament, 86 ; political power of Trade questioned by Mr. Walker, 87 ; evidence of the power and its exer- cise, 87 ; opposition of Trade to Local Veto Bill, 87 ; to Mr. W. E. Forster's Bill (1868), 88 ; attempt to capture parish coun- cils, 93 ; '■ Our Trade, Our Politics," 96 ; a new danger. 97 ; the public as brewery shareholders, 98 ; Brewery Share- holders' League, 100, 228; existence of menace in America, 103 ; dis- turbing influence of the " drink question " on local politics, 109 ; rise and overthrow of menace in Sweden, 110-119 ; growth of, in England, 228. See also 7inder Brewers, Brewery Share- holders, Distillers, Drink Traffic and Politics, and Political Influence of the Liquor Trade. MicHELL, Mr. (Consul), quoted, 165. Middlesbrough, drunk- enness in, 254 ; rate re- quired to meet cost of counter-attractions in, 272. Mill, John Stuart, quoted, 184. Minority Report of THE Committee of Revision, 122 (footnote). Monopoly, essential to success, 182. Mornijig Advertiser, The, quoted, 88, 89, 95. Moscow, counter-attrac- tions in, 214. Municipal Affairs, quoted, 139- 288 INDEX. MuNiciPAi, AND Political, lyiFE, danger to, seeujider Menace, Brewers, Dis- tillers, Drink Traffic and Politics, Political Influence of the Liquor Trade, Brewery Share- holders. Municipal Councils, re- lation of, to controlling companies, i6o, i6i, 185-187. Music and Dancing Licences, reduction of, in Liverpool, 131, 203. National Trade De- fence Fund, Manager of, quoted, 80, 94. Newcastle, estimated cost of counter-attrac- tions in, 224, 272 ; drunkenness in, 254. New York, Raines Law in, effect of, 139. Northampton, drunken- ness in 255; raterequired to meet cost of counter- attractions in, 272. Norway, suffrage in, ix., X. ; statistics of con- sumption in, reliableness of, xii., 265 ; drunken- ness in, 13 ; increase of wages in, 48 ; prices of, and duty on, spirits in, 51; consumption of beer in, 56 ; consump- tion of spirits in, 53, 62 duty on malt in, 57 duty on spirits in, 62 divorce of liquor traffic from politics in, 106; the Act of 1894, 146 ; Act of 1871, quoted, 160 ; hours of sale in, 159 ; appropriation of profits in, 163-168, 186; question of compensation in, 239 ; method of granting licences in, 248. Norwegian System, com- pared with Swedish, 160; progressive character of, 160 ; essentially one of control, 183 ; contrasted with public-house trusts, 189. Norwegian Towns, voting in, 268. Norwich, drunkenness in, 254 ; rate required to meet cost of counter- attractions in, 272. Nottingham, number of "on" licences in, 197; drunkenness in, 254 ; rate required to meet cost of counter-attrac- tions in, 272. Oliver's, Limited, 134. "On" Licences, number of, in various towns, 197; reduction of, in Liver- pool, 194, 201. Opposition to Company System, 3, 121. Oxford, drunkenness in, 255 ; rate required to meet cost of counter- attractions in, 272. INDEX. 289 Paddington, rate required to meet cost of counter- attractions in, 271. Paisley, drunkenness in, 20, 256 ; rate required to meet cost of counter- attractions in, 273. Parish Councils, Trade attempt to capture, 93. Src also under Menace. Parsons, Mr. G. F., quoted, 104. Pauperism, in Gothen- burg, 63 ; proportion to population in Gothen- burg, 62 ; in Sweden, 67 ; causes of, 6g ; amount of, in Gefle, 73 ; in Finland, 74 ; in White- chapel (1870 and 1899), 76; in St. Olave's (1870 and 1899), 76; in Brad- field, Berks. (1870 and 1899), 76 ; in Hungerford, Berks. (1870 and 1899), 76 ; effect of methods of administration upon, 74; statistics of, as evidence of poverty, 75, 76. Peel's Report, I,ord, quoted, 109. Perth, drunkenness in, 13, 20, 256 ; rate required to meet cost of counter- attractions in, 273. Plymouth, drunkenness in, 254 ; rate required to meet cost of counter- attractions in, 272. Police, Chief of, Gothen- burg, referred to, 169. Political Influence of THE lyiQuoR Trade, 78, 104 ; the drink traffic and politics, ix. ; re- forms staved off, 79 ; opposition to Mr. Bruce's Bill, 79 ; to lyocal Veto Bill, 87 ; to Mr. Forster's Bill, 88 ; in Scandinavia, no, III ; the distiller in Sweden, 112, 119, 228; the brewer in Sweden, 119; on elections, 121; opposition to Company- system, 121 ; destroyed b}^ elimination of private profit, 126, 259. See also uyidcr Menace. Poor Law, principles of, referred to, 184. See also under Pauperism. Poplar, rate required to meet cost of counter- attractions in, 271. Popular Control of the Liquor Traffic, quoted, 161, 170, 172. Portsmouth, drunkenness in, 254 ; rate required to meet cost of counter- attractions in, 272. Poverty, see Pauperism. Preston, drunkenness in, 254 ; rate required to meet cost of counter- attractions in, 272. Price, see under Beer, Spirits. Pripp & Son, J. A., quoted, 45- Prison Commissioners op Scotland, quoted, 18, 290 INDEX. Private Interest in IviQuoR Trade Con- demned, 2. Private I,icence, defects of, 1,2; contrasted with Company system, 6, 141, 192-226; pushing of sales under, 127-143. See also render Licence, private. Profits, elimination of private, 5, 109, 235 ; private profit encourages intemperance, 127, 235 ; appropriation of, in Sweden, 157, 163 ; in Norwa)^ 163-168, 186 ; under Public - House Trusts, 189, 190 ; of Government Monopoh^ in Russia, 219; suggested appropriation of, for counter-attractions, 9, 225 ; secured for com- munity under Company system, 232 ; amount of, per annum, in United Kingdom, 225, 234. Progress under Com- pany System, 145. Prohibition, in large towns, 231 ; menace not destroyed under, 103. Public -House Trusts, conditions of success, 4 ; comparison of, with Compan)^ system, 181- 191 ; appropriation of profits hy, 189-191. Public-House Trust Association, Central, Report of, quoted, 245. Pushing of Sales, 127 ; definition of, 128 ; illus- trations of, 129-136; prevented under Com- pany system, 130-13 1 ; in Russia, under old system, 137 ; in Gothen- burg, prior to control, 138 ; under Raines L,aw in New York, 139 ; Defoe, quoted, 140 (footnote) ; private licence and company control con- trasted, 141, 213. Raines Law (New York), effect of, 139. Ramsbury and Hunger- ford, pauperism in, 76. Rate required to meet cost of counter- attractions, 224, 271. Reading - Rooms, estab- lished by Bolag in Gothenburg, 149, 150 ; established in Russia, 216. Recreation Centres, see under Counter-attrac- tions. Report on the Gothenburg System of Liqtcor Traffic (Gould), quoted, 118. Report of the Massachusetts State Commissioners, quoted, 143. Report on the Norwegian System (Koren), quoted, 106. Restaurants, in Russia, 215 ; in Gothenburg, see U7ider Kating-Houses. INDEX. 291 Royal Commission on Liquor Laws, Report of, quoted, 80. Russia, duty on spirits in, 62 ; consumption of spirits in, 62 ; counter- attractions in, 214 ; work of temperance com- mittees in, 216, 217; res- taurants established in, 215 ; reading-rooms es- tablished in, 216 ; profits in, how appropriated, 219 ; question of com- pensation in, 241. Russian Spirit Monop- oly DISTINCT from Gothenburg System, 10; defects of, 11 ; con- trast of, with former system, 137. Safeguards under Com- pany System, 186, 188. St. Marylebone, rate re- quired to meet cost of counter-attractions in, 271. St. Olave's (South London), pauperism in, 76. St. Pancras, rate required to meet cost of counter- attractions in, 271. vSt. Petersburg, work of temperance committee in, 217 ; counter-attrac- tions in, 217. Sale, see under Consump- tion, Beer, Spirits. Sales, the pushing of, see under Pushing of Sales. Salpord, drunkenness in, 254 ; rate required to meet cost of counter- attractions in, 272. Saloon in Politics, The, 104. See also under Menace. Samlags, voting for re- tention of, 268. Scandinavia, consump- tion of spirits in, xii., xiii., xiv. ; illicit dis- tillation in, xiii., xiv.; drunkenness in, com- pared with Scotland, 13, 16, 17-21 ; menace de- stroyed by Company system, 78. See also under Gothenburg, Bergen, Sweden, ajid Norway. Scarborough, drunken- ness in, 255 ; rate re- quired to meet cost of counter - attractions in, 272. Scarborough Justices, circular of, 246 (foot- note). Scotland, consumption of beer in, 35 (footnote) ; drunkenness in, com- pared with Scandinavia, 13, 16, 17-21 ; Prison Commissioners of, quoted, 18 ; drunken- ness, statistics of, ex- amined, iS, 19, 256 ; esti- mated cost of counter- attractions in, 224, 273. Sellers, Miss Edith, quoted, 214. 292 INDEX. Senior, Mr. Nassau W., quoted, 74, 75. Shadwell, Dr. Arthur, quoted, 205-207. Shareholders, number of, in Swedish Bolags, 156. See also under Brewery Shareholders. Sheffield, number of "on" licences in, 197; drunkenness in, 254 ; rate required to meet cost of counter - attractions in, 272. Smith, Lars Olssen, efforts of, to suppress Bolags, III, 114-iig. South Carolina, Dis- pensary system, distinct from Gothenburg sys- tem, 10, 126; elimina- tion of menace under Dispensary system in, 259- Southwark, rate required to meet cost of counter- attractions in, 271. Spirits, illicit distillation of, xiii., xiv. ; cheap- ness of, a cause of drunkenness, 22, 51 ; sale of, in Gothenburg, 24, 27, 30-32 ; number of spirit shops in Gothen- burg, 24 ; hours of sale of, in Gothenburg, 25 ; sale of in eating-houses, Gothenburg, 28 ; sale of, to children, in Gothen- burg, 28 ; abolition of credit sales of, in Gothenburg, 29 ; price of, in Gothenburg, 23 ; in United Kingdom, 23 ; size of dram of, in United Kingdom, 23 ; in Sweden and Norway, 52 ; sale of, under Acts of 1855 and 1874, 30 ( footnote ) ; reduction of consumption of, in" Sweden and Norway, xi., xii., xiii., 31 ; in Gothenburg under Com- pany system, 30 ; in Bergen, 211 ; prices of, and duties on, in Sweden and Norway, 51 ; duties on, in other countries, 62 ; comparison of duties on, in Sweden and Norway, 55 ; effect of duty upon consumption of, 55, 61 ; prices of, in Bergen, Christiania, Gothenburg, Stockholm, 52-60; alcoholic strength of, in Stockholm, 52, 54, 58 ; in Gothenburg, 32 (footnote), 52, 54, 58, 59 ; in Christiania, 52, 54, 60; in Bergen, 52, 54, 59, 60 ; restriction of sale of, in Christiansand, 141, 142 ; sale of, in Bergen, per capita, 211 ; consumption of, in chief European countries, 62 ; in United States of America. 62. Spirit Duties, effect of, upon consumption, 55, 61. Sec also under Spirits. INDEX. 293 Statesman's Year Book, The, quoted, x. Statistical Depart- ments, quoted, Stock- holm, xiii. ; Christiania, xiv. Statistics op Consump- tion IN Norway and Sweden, reliableness of, xi. Statistics, Tables of, see jnider Tables of Statistics. Stepney, rate required to meet cost of counter- attractions in, 271. Stewart, Mr. J. W., quoted, 208. Stirling, drunkenness in, 20, 256 ; rate required to meet cost of counter- attractions in, 273. Stockholm, drunkenness in, 30 ; price of spirits in, 52 - 58 ; alcoholic strength of spirits in, 52, 54, 58, 59. Substitutes for the Saloon, 221. See also under Counter - attrac- tions. Suffrage in Norway, ix., X. Sunday Closing, in Sweden, 158; in Nor- way, 159 (footnote). "Sunday Closing by Statute," quoted. 139. SuNDBARG, Mr. Gustav, quoted, 71. Sunderland, drunken- ness in, 254 ; rate required to meet cost of counter-attractions in, 272. Surrender of Licences, 204, 242, 246 (footnote). Swansea, drunkenness in, 254 ; rate required to meet cost of counter- attractions in, 272. Sweden, statistics of con- sumption, reliableness of, xii., 265 ; drunken- ness in, 13 ; causes of, 22 ; spirit and beer sales in, 34 ; consumption of spirits in, 34, 62 ; in- creased prosperity in. 48 (footnote) ; prices and duties on spirits in, 51 ; consumption of beer in, 56 ; duty on spirits in, 62 ; pauperism in, 67 ; causes of, 69 ; strictness of Poor Law statistics in, 70 : divorce of liquor traffic from politics in, 107 : struggle with dis- tillers in, no; rise of menace in, 112; free dis- tillation in, 112; Act of 1895, quoted, 15S, 159 ; appropriation of profits in, 157, 163 ; question of compensation in, 239 ; method of granting licences in, 248. See also tinder Gothenburg and Compan}^ System. Sweden and Norway, consumption of spirits in, xii., xiii. ; con- sumption of beer in, 294 INDEX. compared, 56. See also U7ider Sweden and Nor- way separatel3\ Swedish System, com- pared with Norwegian, 160. Swedish Temperance Union, quoted, 157. Tables of Statistics : Beer, consumption of, in Sweden, 34. Beer, comparative con- sumption of,in Sweden and Norway, 56. Beer, tax on, in Norway, 57- Counter-attractions, amount of grant re- quired in various towns, 224, 271. Drunkenness in Scandi- navia compared with Scotland: Mr. Walker's table, 13. Drunkenness in fifteen representative Scotch towns, 20. Drunkenness in Gothen- burg (1875-1902), 21. Drunkenness in Gothen- burg, analysis of, 41. Drunkenness in Liver- pool, 193, 195- Drunkenness in prin- cipal English cities, 254- Drunkenness in prin- cipal Irish cities, 255. Drunkenness in prin- cipal Scotch cities, 256. Tables of Statistics : Duties, spirit, in various countries, 62. Foreign moneys and measures, 247. Licences, proportion of, to population in Liver- pool, 195. Licences, proportion of, to population in various towns, 197. Licences, additions and reductions, in Liver- pool, 201. Licensed Premises, number of, in United Kingdom, 64. Malt Tax in Norway (1871-1895), 57. Pauperism in Gothen- burg (1892-1902), 65. Pauperism, ratio of, to population in Gothen- burg, 66. Pauperism in towns and cotcntry districts in Sweden, 68. Pauperism in Gefle, 73 (footnote). Pauperism in English Unions, 76. Rate required for counter-attractions in various towns, 224, 271. Shareholders, number of, in Swedish Bolags, 156 (footnote). Spirits, sale of, in Goth- enburg, 30. Spirits, consumption of, in Sweden, 34. INDEX. 295 Tables of Statistics : Spirits, consumption of, in various countries, 62. Spirits, price of, in largest towns in Sweden and Norway, 52, 54- Spirits, advances in selling price of, in Sweden and Norway, 58, 59, 60. Wages in Gothenburg (1865 and 1902), 47. Taxation, relation of to consumption, spirits, 52, 61 ; beer, 56. Temperance, attitude of temperance party to Controlling system, 120- 122, 145, 146, 147, 161, 162, 230 ; work done by Companies, 141, 142 ; Company Laws, drafted bj^ leaders of, 161 ; St. Petersburg com- mittee, quoted, 217. Temperance Party, see wider Temperance. Temperayice Py'oblem and Social Reforvi, The, quoted, xii., xiv. (foot- note), 2, 10 (footnote), 78, 80, 147, 152, 164 (footnote), 222, 225, 234. Temperance Record, The, quoted, 112. Tied Houses, in Norway, 121- 1 23 ; effect of, in United Kingdom, in stimulating sales, 128; evils of, in Victoria, 136. Times, The, quoted, 92, 128. Trade, The, as a political organisation, 80-83. ►S"*?*? also tinder Menace. "Trade Electoral Organisation," 80. Trade Organisation, new development in, 97. Treasury Department, Washington. United States of America, quoted, xvi. Trevelyan, Sir G. O., quoted, 83 (footnote). Tynemouth, drunkenness in, 255 ; rate required to meet cost of counter- attractions in, 272. Union, need for, among temperance workers, 236. United Kingdo7n Alliance Vindicated, The, quoted, 33 (footnote), 40 (foot- note). United Kingdom, ex- cessive consumption of alcohol in, i , consump- tion of beer in, 35 (foot- note) ; price of spirits in, compared with Sweden and Norwa}^ 52 ; duty on spirits in, 62 ; con- sumption of spirits in, 62 ; number of licensed premises in, 84 ; duty on beer in, 57 (footnote). United States, sec tinder America. Vigilance Committee of Liverpool, quoted, 130 204. 296 INDEX. ViNCE, Mr. T. Jeffrey, quoted, 100. Voting, on Samlags, in Norwegian towns, 26S. Wages, in Gothenburg, advance in, 45, 46 ; com- parative table of, 47. Wai^ker, Mr. John, M.A., quoted, vii., ix., xii., xiu., xvu., 4, 10 (foot- note), 13, 14, 17, 19, 41 footnote), 42, 44, 63, 66 (footnote), 67, 78, 79, 87, 99, no, 127, 144, 151, 152, 153, 154, 156, 158, 159, 165, 169, 170, 178 (footnote), 231, 233, 239, 241, 248, 257, 259, 265. Wandsworth, rate re- quired to meet cost of counter-attractions in, 271. Warsaw, grant for counter - attractions in, 219. Waterford, drunkenness in. 255- West Ham, estimated cost of counter - attractions in, 224, 272. Westminster, rate re- quired to meet cost of counter-attractions in, 271. Whaf I saw of the Go f hen- burg System in Bergeji, quoted, 180 (footnote). What is the Gothe^iburg System ? quoted, 30 (footnote). Whitechapei, (East lyoudon), pauperism in, 76. Whittaker, Mr. T. P., quoted, 109 (footnote). Whyte, Mr. James, quoted, 33 (footnote), 40 (footnote). WiESELGREN, Dr., quoted, 17 (footnote), 42 (foot- note), 77, III, 112, 113, 119, 120, 148, 154, 240. Wilson, Mr. Thomas M., quoted, 48, 161, 167, 178, 179, 241, 267. WiNDT, Mr. Harry De, quoted, 258. Wi7ie Trade Review, The, quoted, 135. Wolverhampton, drunk- enness in, 254; rate re- quired to meet cost of counter - attractions in, 272. Working Classes, im- provement in condition of, in Gothenburg, 45, 46, 47, 77 ; excessive ex- penditure b}', on alcohol, I, 210. Workman, Rev. H. W.. quoted, 31 (footnote). Wright, Mr. Carroll D.^ quoted, 171. Yarmouth, see under Great Yarmouth. Yerkes, Mr. J. W., quoted, xvi. \ York, drunkenness in, 255 ; rate /required to meet Qost of counter- attracti-ons in, 272. UNIVERSITY OF CALIFORNIA LIBRARY Los Angeles This book is DUE on the last date stamped below. l^tC'D LD-ViRU LOiURL llO'S APR 2 6 1990 315 L 005 484 824 7 UC SOUTHERN REGIONAL LIBRARY FACILITY AA 001 001 611 1