LIBRARY 
 
 OF THE 
 
 UNIVERSITY OF CALIFORNIA. 
 
 Class 
 
STUDIES IN ECONOMICS AND POLITICAL SCIENCE. 
 
 Edited by PROF. W. A. S. HEWINS, M.A. 
 
 THE 
 
 PLACE OF COMPENSATION 
 
 IN 
 
 TEMPERANCE REFORM. 
 
THE LONDON SCHOOL OF ECONOMICS AND 
 POLITICAL SCIENCE. 
 
 (UNIVERSITY OF LONDON.) 
 
 10, ADELPHI TERRACE, LONDON, W.C. 
 
 THE special aim of the London School of Economics and Political 
 Science is the study and investigation of economic and political 
 institutions. Many of the Lectures and Classes are designed to 
 promote a wider knowledge of modern commercial conditions, and 
 to meet the needs of those engaged in the civil and municipal 
 services journalism, teaching, and public work. The School pro- 
 vides training in methods of investigation, and affords facilities for 
 original work in Economics and Political Science. 
 
 PUBLIC LECTURES AND CLASSES are held on Economics, Statistics, 
 Commercial History and Geography, Commercial and Industrial 
 Law, Railway Economics, Banking and Currency, Finance and 
 Taxation, Municipal History and Administration, and Political 
 Science. 
 
 THE CLASSES, arranged as a three years' course of study, are open 
 only to Full Students of the School, who carry on their studies 
 under the direct personal supervision of the Lecturer. They are 
 held both in the daytime and in the evening. 
 
 THE LECTURES are usually given between 6 and 9 p.m. 
 THE SCHOOL is OPEN TO MEN AND WOMEN. 
 
 THE SCHOOL YEAR commences in October. There are three 
 Terms, each of about ten weeks in duration, viz.: i. October to 
 December: 2. January to March; 3. April to July. Students may 
 join the School at any time, 
 
 THE FEES FOR A FULL STUDENT are 3 a year, or i a term. 
 Students may also be admitted to one or more Courses of Lectures 
 on payment of fees varying in amount with the length of the Course. 
 
 SPECIAL FEES are charged for Tutorial Classes, which are arranged 
 as required. 
 
 SCHOLARSHIPS varying from 25 to 100 a year are given to 
 enable students of ability to pursue their studies at the School. 
 
 FULL PARTICULARS may be obtained from the Director (W. A. S 
 Hewins, M. A.), at the School. 
 
THE 
 
 PLACE OF COMPENSATION 
 
 IN 
 
 TEMPERANCE REFORM. 
 
 C. P. SANGER, M.A., 
 
 Fellow of Trinity College, Cambridge ; Barrister-at-Law. 
 
 Xonfcon : 
 
 P. S. KING & SON, 
 
 ORCHARD HOUSE, WESTMINSTER. 
 
 1901. 
 
BAL 
 
 BRADBURY, AGNEW, & CO. LD., PRINTERS, 
 LONDON AND TONBRIDGE. 
 
CONTENTS. 
 
 PAGE 
 
 INTRODUCTION * 
 
 SECTION I. 
 
 The general argument for compensation ... 8 
 
 The meaning of vested rights 9 
 
 Austin's opinion 
 
 Bentham's opinion . . . ' . . 14 
 
 Henry Sidgwick's opinion *7 
 
 SECTION II. 
 
 Precedents for compensation 22 
 
 (1) The Lands Clauses Consolidation Acts . . 23 
 
 (2) Slavery 25 
 
 (3) Proctors 29 
 
 (4) Army Purchase 3 
 
 (5) Lotteries 34 
 
 (6) Irish Church 36 
 
 (7) Telegraph Companies ..... 37 
 
 (8) Officers under Local Government Acts . . 38 
 
 (9) Thames Ferrymen 4 1 
 
 Conclusions 42 
 
 SECTION III. 
 
 Special features of the position of a licence-holder . 44 
 
 (i) The strict legal position 45 
 
 15617H 
 
vi CONTENTS. 
 
 PAGE 
 
 SECTION III. continued. 
 
 Special features of the position of a licence-holder 
 continued. 
 
 (2) The probability of renewal is very great ; this 
 
 is shown by 
 
 (i.) Legal decisions 51 
 
 (ii.) Insurance rates 53 
 
 (iii.) Statistics 57 
 
 (iv.) Market values 58 
 
 (3) Licensed premises are generally mortgaged . 59 
 
 (4) The interests are large and widespread . . 62 
 The present difficulty 65 
 
 SECTION IV. 
 
 Precedents (a) for compensation .... 69 
 
 (1) South Australia 70 
 
 (2) Victoria 73 
 
 (3) Scandinavia 74 
 
 (4) Russia 76 
 
 Precedents (6) against compensation ... 77 
 
 (1) The United States 77 
 
 (2) Canada 79 
 
 (3) New Zealand 81 
 
 (4) Australia 81 
 
 Summary 82 
 
 SECTION V. 
 
 Proposals for compensation in England ... 84 
 
 (1) Mr. Bruce's scheme, 1871 .... 85 
 
 (2) Mr. Ritchie's scheme, 1888 . . . .86 
 
 (3) Mr. Goschen's scheme, 1890 . . . .88 
 
CONTENTS. vii 
 
 PAGE 
 
 SECTION V. continued. 
 Proposals for compensation in England continued. 
 
 (4) The Bishop of Chester's scheme, 1893 . . 89 
 
 (5) Scottish threefold option 90 
 
 (6) Lord Peel's scheme 92 
 
 (7) Royal Commission scheme .... 98 
 
 Summary 99 
 
 Opinions of 
 
 (1) Mr. Gladstone 101 
 
 (2) Mr. Chamberlain 102 
 
 (3) Professor H. Sidgwick 103 
 
 SECTION VI. 
 
 Conclusions 106 
 
 There is a primd facie case for compensation . . 107 
 Discussion of Lord Peel's arguments . . .109 
 Why not give full compensation ? . . . . 1 1 1 
 A reason for not giving full compensation . .116 
 The source from which compensation should come 118 
 Who should receive the compensation ? . . .122 
 Conclusion 123 
 
 APPENDIX 127 
 
 Note on the bibliography of the subject . . . 129 
 INDEX 131 
 
Q. followed by a number refers to the evidence given before 
 the Royal Commission on Liquor Licensing Laws. 
 
 P. followed by a number refers to the page of the final report 
 of that Commission [C 9,379], 1899. 
 
 The references to "The Temperance Problem and Social 
 Reform " by Rowntree and Sherwell are to the 8th edition (1900) ; 
 there is in existence a gth and a popular (abridged) edition. 
 
THE 
 
 PLACE OF COMPENSATION IN 
 TEMPERANCE REFORM. 
 
 INTRODUCTION. 
 
 IN a modern, civilised state it is generally 
 accepted as a political principle that the 
 interests of the individual must be subor- 
 dinated to, or even disregarded in favour of, 
 the public interest. When therefore as a 
 deduction from this principle the legislature 
 finds it necessary to deprive any individual 
 or class of individuals of their property, 
 their legal rights, their means of livelihood, 
 or their reasonable expectations, the question 
 arises whether it is not also to the interests 
 of the community that these individuals 
 should be compensated for the loss in- 
 flicted on them, or whether, apart from the 
 
 T.R. B 
 
2 COMPENSATION IN 
 
 self-interest of the community, justice does 
 not require that such individuals should be 
 compensated. 
 
 Dr. Johnson defines " Compensation " to 
 be " Recompense, something equivalent, 
 amends " ; but distinctions are often drawn 
 between different kinds of compensation 
 which are variously described as "full," 
 "fair," "full and fair," "partial," "limited," 
 "equitable," "adequate," "compassionate," 
 and the word itself is sometimes replaced 
 by the expressions " consideration," " sola- 
 tium " or even "bribe." 
 
 The following are a few illustrations of 
 the slight shades of meaning imported into 
 these words by different persons. Thus 
 "What difference do you draw between 
 consideration and compensation"? "The 
 difference drawn is that the one is almost 
 the full amount, if not the full amount, of a 
 man's laying down, and so on. The other 
 is a matter of arrangement by either arbi- 
 tration or something else, according to the 
 circumstances of each case"; 1 or "No 
 money compensation is proposed, but an 
 1 Mr. W. Touchstone, Q. 68,017. 
 
TEMPERANCE REFORM. 3 
 
 equitable consideration" j 1 or " During an 
 interval holders of an expectation of 
 renewal are to be given compensation as a 
 sort of grace or solatium"; 2 or " The 
 money paid to West Indian Planters was 
 paid by way of a bribe and not as equitable 
 compensation"; 3 or " You get the means 
 for I do not like to use the word * com- 
 pensation,' it is such a dangerous word to 
 use, but a 'solatium.'" 4 There is in fact 
 not much value in these distinctions ; the 
 word " bribe " is used when in the 
 opinion of the writer the parties receiving 
 the compensation were not entitled to it as 
 a matter of justice, or of general political 
 expediency, but obtained it because of their 
 political power. The words " fair," " equit- 
 able," "adequate," and the like, are generally 
 used to imply that the person injured shall 
 not receive compensation at the market value 
 of his loss, but that his compensation shall 
 
 1 Mr. D. M. Ross, Dundee Advertiser, 2nd April, 1895. 
 
 2 Daily Chronicle, iQth July, 1899. 
 
 3 Mr. W. S. Caine on "Compensation," Alliance 
 Campaign Budget, 1895. 
 
 * Mr. G. C. Whiteley, Q. 2,943. 
 
 B 2 
 
4 COMPENSATION IN 
 
 be substantial and sufficient on grounds of 
 expediency. " Compassionate " is used 
 when the compensation is given out of pity, 
 and is not grounded on justice or reason. 
 " Solatium " means much the same as 
 11 compassionate compensation." 
 
 These differences in phraseology do not 
 so much indicate differences in the thing 
 the actual money payment or what not as 
 differences in the mental attitude of the 
 speakers or writers towards the transaction 
 under review. English law holds as a 
 maxim that there is no wrong without a 
 remedy. To escape from the consequence 
 of this the law takes refuge in a foreign 
 tongue and explains, in a case where an 
 individual has been damnified but has no 
 cause of action or right to compensation, 
 that though the damnum is indubitable the 
 injuria is wanting. By such quibbling the 
 law attempts to hide its want of logical 
 consistency and brilliantly demonstrates its 
 commonsense. 
 
 The problem with which this Essay deals 
 is to determine under what conditions com- 
 pensation has been and should be given to 
 
TEMPERANCE REFORM. 5 
 
 individuals when they are damaged by an 
 enactment for the general good, and in 
 particular to discuss whether any or what 
 compensation should be given to those who 
 hold licences for the sale of intoxicating 
 liquors in the event of any legislation having 
 the direct effect of dispossessing existing 
 licence-holders of their licences. 
 
 For various reasons which will be specified 
 later the latter problem is a very special and 
 peculiar one and its solution is not made 
 much easier by a study of the general 
 problem ; but a study of the general problem 
 is useful, both as a means of clearing up 
 some possible confusions of thought and as 
 throwing light upon the ways in which such 
 a problem can be approached. 
 
 The problem of compensation for pub- 
 licans will be considered in the following 
 way : 
 
 1. First, the general question of compen- 
 sation in any case of governmental interfer- 
 ence with existing rights or expectancies will 
 be considered in the light of the views of 
 political theorists. 
 
 2. Next, a collection of various cases where 
 
6 COMPENSATION IN 
 
 compensation has been given in England in 
 the last hundred years will illustrate the 
 views of the theorists and the practice of the 
 legislature. 
 
 3. In the third place, the peculiarities of 
 the present problem will be described in 
 order to define the problem more clearly and 
 to prevent the use of misleading analogies. 
 
 4. An examination of precedents for and 
 against compensation for publicans in the 
 British Colonies and the United States of 
 America will throw some light on the 
 practice of English-speaking people in this 
 connexion. 
 
 5. The most recent proposals which have 
 been made within and without the walls of 
 the Houses of Parliament and the opinions 
 of statesmen will be quoted to show the 
 points of agreement and the points of differ- 
 ence which exist in the minds of the 
 community on this point. 
 
 6. Finally, as a result of this previous 
 enquiry, certain general conclusions will be 
 drawn. 
 
 This procedure is adopted in order that the 
 general reasoning may not be too abstract, 
 
TEMPERANCE REFORM. 7 
 
 while at the same time the general principles 
 upon which this question should be decided 
 will not be submerged in a flood of detail. 
 Arguments from precedent are singularly 
 dangerous unless the most careful attention 
 is given to the general principles to be deduced 
 from the precedents and the special circum- 
 stances of the case under consideration. It 
 is hoped that the scheme of procedure used 
 in this Essay will enable the reader to detect 
 inaccuracies and fallacies (if they exist) and 
 to judge the general argument on its merits. 
 
COMPENSATION IN 
 
 SECTION I. 
 
 THE GENERAL ARGUMENT FOR 
 COMPENSATION. 
 
 WHAT is the general form of the argument 
 in favour of compensation ? It is put in 
 various ways, which may be conveniently 
 labelled under the headings : (a) vested rights 
 or interests ; (b) legitimate expectations ; 
 (c) justice ; and more rarely (d) political 
 necessity or expediency. In substance (#), 
 (b) and (c), in so far as they are clearly 
 defined, mean the same thing. In one form 
 or another they import a moral obligation on 
 the legislature to compensate ; (d) imports 
 nothing moral per se; but from the utilitarian 
 point of view, which is often explicitly 
 adopted by political theorists and implicitly 
 adopted by politicians, there is not much 
 difference between the statement that the 
 legislature ought to compensate vested in- 
 terests and the statement that it is expedient 
 that it should compensate them. The grounds 
 
TEMPERANCE REFORM. 9 
 
 of this expediency are largely economic. 
 To enable the forces of production in any 
 nation to be as effective as possible, it is 
 imperative that persons and property should 
 be secure. If uncertainty is produced by 
 the action of the legislature business 
 becomes speculative, capital becomes shy, 
 and requires a high rate of interest or profit 
 to coax it into a hazardous speculation. It 
 is desirable then that so far as is possible 
 investment of capital should be secure, and 
 in capital we must include any form of special 
 training required to fit a person for a busi- 
 ness or profession. In so far as the legis- 
 lature deprives people of property or occupa- 
 tions for which they have specially fitted 
 themselves without compensation it creates 
 a feeling of uneasiness in the rest of the 
 community as well as one of disappointment 
 in the particular individuals. Argument (d) 
 is in reality a more cautious and correct way 
 of stating arguments (a), (b) and (c). 
 
 MEANING OF "VESTED RIGHTS." 
 
 So much play is made with the phrase 
 "vested rights" or "vested interests" that 
 
io COMPENSATION IN 
 
 it is imperative to ascertain the precise 
 meaning of the phrase, and also so far as 
 possible the impression which it makes upon 
 the hearer. The legal use of the term 
 " vested" as opposed to " contingent" is not 
 here in question ; it is the vulgar and more 
 important use of the term which we have to 
 consider. Let us first take an illustration. 
 In Sir H. B. Poland's evidence before the 
 Royal Commission on Liquor Licensing 
 Laws he is examined at some length 
 whether in his opinion the case of the ante- 
 1869 beer-houses (the position of which is 
 explained later) is a case of a vested interest. 
 Sir H. B. Poland " ventures to submit that 
 you cannot conceive a stronger case at the 
 present day of a vested interest in those 
 beer-houses." 1 He then expresses his 
 opinion that in the case of any great 
 legislative change vested interests are usually 
 protected. 2 Now let us see what the 
 publicists and writers on jurisprudence 
 and politics say with reference to the 
 term. 
 
 1 Q. 1030. 2 Q. 1032. 
 
TEMPERANCE REFORM. 11 
 
 AUSTIN'S OPINION. 
 
 Austin in his fifty-third lecture treats the 
 subject briefly and clearly : 
 
 " And here I would advert to a meaning, frequently 
 annexed to the expressions ' vested rights] which is men- 
 tioned in Mr. Lewis's l treatise ' On the Use and Abuse 
 of Political Terms/ When it is said that the legislature 
 ought not to deprive parties of their ' vested rights/ all 
 that is meant is this : that the rights styled ' vested ' are 
 sacred or inviolable, or are such as the parties ought not 
 to be deprived of by the legislature. Like a thousand 
 other propositions which sound speciously to the ear, it 
 is either purely identical and tells us nothing, or begs the 
 question at issue. If it mean that there are no cases in 
 which the rights of parties are not to yield to considera- 
 tions of expediency, the proposition is manifestly false, and 
 conflicts with the practice of every legislature on earth. 
 In every case, for example, in which a road or canal is 
 run by authority of Parliament through the lands of private 
 persons, the rights, or vested rights, of the private owners 
 are partially abolished by the legislature. They are 
 compelled to yield up a portion of their rights of exclu- 
 sion, and to receive compensation agreeably to the provi- 
 sions of the Act. When the expression ' vested right ' is 
 used on such occasions, it means one or another of two 
 things : ist, That the right in question ought not to be 
 interfered with by the legislature ; which (as I have 
 remarked already) begs the question at issue ; or, 2ndly ; 
 That, in interfering with rights, the legislature ought to 
 tread with the greatest possible caution, and ought not to 
 
 1 Afterwards Sir G. Cornewall Lewis. 
 
12 COMPENSATION IN 
 
 abolish them without a great and manifest preponderance 
 of general utility. And, it may be added, the proposition, 
 as thus understood, is just as applicable to contingent 
 rights, or to chances or possibilities of rights, as to vested 
 rights, or rights properly so called. To deprive a man 
 of an expectancy, without a manifest preponderance of 
 general utility, were just as pernicious as to deprive him 
 of a right without the same reason to justify the measure. 
 Mr. Lewis has suggested that this use of the expression 
 ' vested rights ' might be borrowed from the cases in 
 which, under certain rights, considerable capital has been 
 invested or embarked by parties, and the privation of the 
 right would be followed by great disappointment. And 
 this phrase, I think, is usually applied emphatically to 
 cases in which the abolition of the right would be followed 
 by an extraordinary degree of disappointment." 
 
 Austin's position has never been seriously 
 or successfully disputed, and the term is 
 used in common parlance to suggest both 
 the idea of sacredness and the idea of the 
 magnitude of the disappointment which 
 would be caused by such rights being inter- 
 fered with without compensation. This idea 
 of sacredness or inviolability is suggested 
 with special force when the right has been 
 given by the express enactment of the legis- 
 lature as a special privilege, and this is what 
 Sir H. B. Poland means when he says that he 
 cannot conceive of a stronger case of vested 
 
TEMPERANCE REFORM. 13 
 
 interests than that of the ante-i86g beer- 
 houses. In the case of ordinary licensed 
 premises (where as we shall see the dis- 
 appointment would be enormous) the notion 
 of the sacredness is absent because the 
 legislature has not granted to the licensee 
 any right to renewal of his licence. Hence, 
 we find it stated that the rights of ordinary 
 licence-holders are or are not a case of 
 vested interests according as the one or 
 other meaning of the term is most promi- 
 nent in the mind of the speaker or writer. 
 This confusion leads to difficulty because it 
 is often treated as an axiom of modern 
 statesmanship that vested rights should not 
 be interfered with ; and few would be found 
 to dispute the proposition in this form. The 
 moment, however, we come to apply the 
 proposition great difficulty arises from the 
 fact that in such a context the connotation 
 of the word " vested " is extremely vague. 
 
 In substance there is agreement among 
 political theorists in favour of the general 
 proposition that vested interests should not 
 be interfered with even when the proposition 
 is held to mean merely that it is most 
 
14 COMPENSATION IN 
 
 impolitic to disappoint the members of the 
 community of any reasonable expectations 
 upon which they have largely acted. 
 
 BENTHAM'S OPINION. 
 
 Bentham, indeed, neglects the element of 
 sacredness or inviolability as is seen by the 
 following quotation : 
 
 "i. By means of the non-disappointment principle, by 
 this means and no other, can any determinate import be 
 annexed to the locution vested rights : take away from it 
 this import, suppose this import not to belong to it, none 
 remains. In case of a right being taken away from a 
 man, if the attributive vested be attached to It, what is 
 thereby meant to be asserted is that the pain of dis- 
 appointment thereby produced in his instance is greater 
 than would be produced by the loss of that same right if 
 the attributive vested were not with propriety applicable 
 to it. 2. When the idea in the mind, in so far as it is clear 
 and determinate, is the idea of contrariety to the rule 
 alluded to by the non-disappointment principle, two expres- 
 sions commonly employed are contrary to the first 
 principles of justice and contrary to every principle of 
 justice. Considered in themselves, these expressions are 
 both of them nonsense mere nonsense." * 
 
 And, again, " By the taking away of anything valuable, 
 either in possession, or even though it be but in expectancy, 
 so it be in fixed expectancy, whether on the score of 
 remuneration, how excessive soever, or on any other score 
 
 1 Edition of 1843, vol. 3, p. 388, note. 
 
TEMPERANCE REFORM. 15 
 
 pain si frustrated expectation pain of disappointment, 
 is produced. In the import of the above words, fixed 
 expectancy, is contained whatever is rational and consistent 
 with the greatest-happiness principle, in the pertinacity, 
 manifested by the use of the English parliamentary 
 phrase, vested rights" 
 
 The views of Austin and Bentham are 
 sufficient to show that it is not useful to 
 search for different arguments in favour of 
 compensation, but that there is only one 
 general principle underlying the general 
 doctrine. Nevertheless the continued use 
 of the phrase " vested rights" or " vested 
 interests" undoubtedly requires some ex- 
 planation. It is possible that a peculiar 
 sacredness may appear to appertain to rights 
 which cannot be taken away except by the 
 express enactment of the legislature or by 
 some very dignified procedure which is 
 absent from those rights which can be taken 
 away by a mere administrative act. In this 
 sense the salary which attaches to the office 
 of one of His Majesty's judges, the annuity 
 granted by Parliament to the late Speaker 
 of the House of Commons, or the freehold 
 
 Ibid. vol. 5, p. 277. 
 
16 COMPENSATION IN 
 
 which a beneficed clergyman has in his 
 living are vested in a sense in which the 
 right to employment as errand boy at a 
 certain salary in one of the Government 
 offices and the office of curate are not. 
 This distinction, if pressed, appears highly 
 technical. Another possible ground for the 
 persistence of the phrase is due to the 
 vulgar idea that certain rights are secured 
 by the sanction of a constitution, and in 
 countries where there is a written constitu- 
 tion, it might be considered that rights 
 which under the constitution are preserved 
 and which cannot be taken away without an 
 amendment of the constitution are vested. 
 But this only illustrates and confirms the 
 view that the non-disappointment principle 
 is the true test, because the idea of inviola- 
 bility which may attach to a constitution 
 depends largely on the ease with which it 
 may be amended. The general economic 
 advantages in favour of security of property 
 whereby business success becomes less a 
 matter of good fortune and more a matter 
 of industry have been already mentioned ; 
 but no one could seriously maintain that at 
 
TEMPERANCE REFORM. 17 
 
 the present time and under present condi- 
 tions the legislature should never encroach 
 on the existing legally defined rights of 
 individuals. The precise limits of govern- 
 mental encroachment are better determined 
 by experience than theory ; but there is one 
 recent writer on political theory whose 
 balance and judgment were so singular that 
 his views on the topic are entitled to the 
 greatest respect and weight. 
 
 H. SIDGWICK'S OPINION. 
 
 In Chapter XII. of his work on Politics 
 Henry Sidgwick discusses the question of 
 governmental encroachment and compensa- 
 tion. The whole chapter should be carefully 
 considered by all students of this question. 
 The following passages state the matter 
 with such moderation and fairness that not 
 to quote them would be an inexcusable 
 omission : 
 
 " There are many historical instances in which legal 
 rights having a definite market value have been com- 
 pletely abrogated in comparatively recent times, the most 
 important being the abolition of slavery in America and 
 of serfdom in Russia, and of manorial rights in other 
 
 T.R. c 
 
i8 COMPENSATION IN 
 
 parts of Europe : and the question of compensation has 
 been of great practical importance in all these instances. 
 Approaching the question from the one just discussed " 
 (that is where the Government takes private property 
 from a particular individual) "we can hardly doubt that 
 compensation should be given in this case also; since 
 the security at which law aims is no less intensely, and 
 of course far more extensively violated if the legally 
 secured interests of a particular class are sacrificed 
 without compensation to the interests of the community, 
 than it would be if an individual's interests were similarly 
 invaded. 
 
 "And the same reasoning applies not only to the 
 rights of property strictly so called, but to all rights 
 legally secured that have a definite pecuniary value; 
 such as lucrative monopolies, secured to companies or 
 individuals either by express grant of Government, or by 
 custom recognised as having legal validity, and rights to 
 appoint or to be appointed to lucrative posts. There is 
 more doubt as to another class of cases where the change 
 consists merely in some restriction on the free use and 
 exchange of things or the exercise of any lucrative or 
 marketable rights, that still remain secured to their 
 previous owners. . . . 
 
 " Any such restriction is likely to cause some economic 
 loss to the person restrained ; but such loss will generally 
 be difficult to trace and define; and within limits the 
 members of a progressive community may be suffered 
 to look for minor changes of this kind, and may be 
 fairly required to take the bad with the good ; as they are 
 likely often to receive benefits from new laws for which 
 they are not made to pay. Still, it seems clearly equitable 
 that the compensation for governmental encroachment 
 
TEMPERANCE REFORM. 19 
 
 on the legally secured interests of individuals should 
 extend to cases of restriction on the exercise of rights, 
 as well as to cases of complete abrogation; so far as 
 (i) the tights in question were recognised as normally 
 permanent, and (2) any part of the loss inflicted by the 
 change is clearly and definitely ascertainable and con- 
 siderable enough to constitute a substantial grievance. 
 And at first sight it would seem that any such loss that 
 is compensated at all should be fully compensated. 
 
 "There are, however, in many cases important con- 
 siderations on the other side, tending to the reduction 
 of the amount of compensation. The abrogation of the 
 class of rights which we are considering is assumed to 
 take place because the existence of these rights is opposed 
 to public wellbeing. Now in such cases the degree of 
 mischief that results from the mode of exercising such 
 rights that is most profitable to their possessors may 
 often be materially reduced if the possessors of the 
 rights will consent to forego a certain amount of 
 profit. . . . Under these circumstances there seems 
 an obvious advantage in adopting the principle that 
 compensation will only correspond to what the pecuniary 
 value of the rights in question would be if they were 
 exercised in the more moral but less profitable way: 
 for otherwise pecuniary interest would prompt selfish 
 owners of the right, during the period in which public 
 opinion is growing in the direction of the change, to 
 exercise their right to the utmost, in spite of the mischief, 
 in order to establish a claim to larger compensation." 
 
 The author then proceeds to discuss the 
 case where persons make money by practices 
 which are almost universally condemned, 
 
 c 2 
 
20 COMPENSATION IN 
 
 and concludes that in such a case the " most 
 that can be required in the way of com- 
 pensation is mitigation of any severe hard- 
 ship that a sudden change in the law might 
 sometimes cause. " 
 
 In these passages the author expressly 
 recognises rights which by custom have 
 legal validity. There is little distinction 
 between them and expectancies which are 
 allowed to grow up under the law. The 
 test which can be most fairly and easily 
 applied is whether the right has a definite 
 market value. If it has, there is an 
 expectancy measured by that value. 
 
 The general argument for compensation 
 may then be put in this form. If in the 
 public interest the legislature decides to 
 take away certain rights or expectancies of 
 individuals, or a class of individuals, it 
 should compensate them for the loss of 
 such rights or expectancies, on the general 
 ground that stability and security of pro- 
 perty is of the utmost importance in human 
 affairs and in fact constitutes one of the 
 main marks of a civilised state. The im- 
 portance of compensating depends largely 
 
TEMPERANCE REFORM. 21 
 
 on the amount of the interference, and on 
 whether or not capital has been invested on 
 the basis of the expectation. The cases in 
 which it may be fairly argued that full 
 compensation should not be given are 
 mentioned above by Henry Sidgwick. 
 
 Accepting then as true the commonplace 
 that vested rights or interests should not be 
 interfered with by the legislature, we see 
 that it follows that in every case where 
 there is a great disappointment of expec- 
 tation by the legislature there is a primti 
 facie case for compensation, and the burden 
 of proof is shifted on to those who would 
 deny the right to compensation or wish to 
 limit its amount. 
 
22 COMPENSATION IN 
 
 SECTION II. 
 
 PRECEDENTS FOR COMPENSATION. 
 
 So far the views of political theorists 
 have been considered, but such views are 
 ordinarily founded not so much upon 
 abstract reasoning or general considera- 
 tions (although in form they appear to be), 
 but upon a survey of the actual way in 
 which legislatures have acted. Prece- 
 dents are collected and compared, their 
 likenesses observed and their differences 
 distinguished ; by this means general prin- 
 ciples are extracted and may be applied, as 
 tests, to other cases. In the subject under 
 review the differences are greater than the 
 likenesses, and greater to such an extent 
 that arguments from particular precedents 
 to a special case are of little value. But 
 a survey of some precedents will serve to 
 illustrate the justice of the views held by 
 the political theorists, and to persuade us 
 that certain arguments, which are used 
 
TEMPERANCE REFORM. 23 
 
 both for and against compensation in the 
 special case to be considered, are of 
 little practical validity, Austin's test of 
 disappointment being the main feature 
 which runs through all the special cases. 
 One fact comes out most clearly that the 
 precise legal rights of the parties injuriously 
 affected are not of any importance except 
 in so far as they have determined or may 
 determine the degree of expectation from 
 which, when unfulfilled, the disappointment 
 results. The instances selected are merely 
 those which are most frequently in the 
 minds or words of those who discuss 
 this topic. They are not arranged in any 
 systematic order, and are not in any sense 
 exhaustive. 
 
 (i) THE LANDS CLAUSES CONSOLIDATION 
 ACTS. 
 
 On looking at the subject catalogue of 
 any law library several books will be found 
 under the heading " Compensation," but 
 such books will be found to treat of the 
 special cases where public companies have 
 the power to take land for the purposes of 
 
24 COMPENSATION IN 
 
 their undertaking on payment of due com- 
 pensation to the owners of such lands. 
 They will be legal text-books dealing with 
 the Lands Clauses Consolidation Acts and 
 other kindred Acts. How is compensation 
 estimated under such Acts ? Section 63 of 
 the Lands Clauses Consolidation Act, 1845 
 (8 & 9 Viet. c. 18), runs as follows : 
 
 " In estimating the Purchase Money or Compensation to 
 be paid by the Promoters of the Undertaking, in any of the 
 Cases aforesaid, regard shall be had by the Justices, Arbi- 
 trators, or Surveyors, as the Case may be, not only to the 
 Value of the Land to be purchased or taken by the Pro- 
 moters of the Undertaking, but also to the Damage, if any, 
 to be sustained by the Owner of the Lands, by reason of the 
 severing of the Lands taken from the other lands of such 
 Owner, or otherwise injuriously affecting such other Lands 
 by the Exercise of the Powers of this or the special Act, or 
 any Act incorporated therewith." 
 
 To give a right of action for injuriously 
 affecting, it is necessary that the particular 
 injury for which compensation is claimed 
 would have been actionable, if it had been 
 done by an individual, or by the company 
 before they had acquired their statutory 
 powers. 1 In all cases which arise under the 
 
 1 Re Penny, 7 El. & Bl. 660, 
 
TEMPERANCE REFORM. 25 
 
 Lands Clauses Consolidation Acts the legis- 
 lature has interfered with private rights for 
 the public good, and it determines that com- 
 pensation in the true sense of an equivalent or 
 full compensation shall be given. It is impor- 
 tant to note that, however much reformers 
 have argued against compensation in certain 
 special cases, it has rarely been seriously 
 suggested that anything less than full com- 
 pensation would be just and equitable in 
 cases where land is taken for public or 
 general purposes. 
 
 (2) SLAVERY. 
 
 The case of slavery has been much used 
 as a precedent and analogy by those who 
 argue for and against compensation for the 
 loss of a licence. The case is one of great 
 interest and importance, because prima facie 
 it is a case of partial or limited compen- 
 sation, and should, therefore, indicate the 
 principle and considerations which actuate 
 the legislature in giving partial compen- 
 sation. The slave trade was condemned 
 without compensation, no doubt on the 
 ground that it was so wicked and pernicious 
 
26 COMPENSATION IN 
 
 that those engaged in it deserved no favours 
 and had no right to expect lenient treatment. 
 Probably the amount of capital engaged in 
 it, in a specialised form, was small ; and 
 the slave traders were a small class of the 
 community. It could hardly be argued that 
 because such a trade was suppressed that 
 those who carried on lawful and legitimate 
 trades would feel their security endangered. 
 Considerations of expediency had, there- 
 fore, but little weight. The trade was 
 considered immoral, and, therefore, was 
 suppressed. 1 
 
 When therefore the time had come and 
 public opinion was ripe for the suppression 
 of slave-holding throughout the British 
 dominions it must be remembered that the 
 slave trade had been suppressed. Further, 
 that there could be no proposal to limit the 
 number of slaves; the only possible plan was 
 to abolish slavery altogether. In 1823 the 
 
 1 How far similar considerations might apply in the 
 case of the suppression of licences will be considered 
 later, but it is not seriously proposed to stop the brewing 
 and distilling trades, but only the licences empowering 
 private individuals to sell by retail in small quantities. 
 See H. Sidgwick's opinion on p. 104. 
 
TEMPERANCE REFORM. 27 
 
 House of Commons had passed a resolution 
 in favour of abolition but with a fair and 
 equitable consideration of the interests of 
 private property. 1 When, in 1833, the 
 Government brought forward their pro- 
 posals for the abolition of slavery, the 
 scheme was that the slaves became ap- 
 prentices for twelve years, during which 
 time they would be compelled to work for 
 three-fourths of their time for their pro- 
 prietors. It was proposed to advance a 
 loan to the West Indies of a sum of 
 15,000,000 without interest for fifteen 
 years. The theory seems to have been that 
 this was equivalent to one-fourth of the 
 value of the slaves' labour. Apparently it 
 was considered that this scheme would 
 properly compensate the slave-owners. It 
 does not appear that any very accurate 
 estimate of the value of the slaves had been 
 made, but it was no doubt considered that 
 this proposal would work substantial justice. 
 These proposals by no means satisfied the 
 body of persons interested in property in 
 slaves. As a result of their pressure the 
 1 9 Hansard, 286, 360. 
 
28 COMPENSATION IN 
 
 15,000,000 loan was converted into an 
 absolute gift of 20,000,000 ; as a slight 
 set-off the period of apprenticeship was 
 reduced from twelve to seven years. The 
 legislature did not, however, intend that the 
 compensation should be full, for the 24th 
 section of 3 & 4 Will. IV. c. 73, recites that 
 " Whereas, towards compensating the Per- 
 sons at present entitled to the Services of the 
 Slaves to be manumitted and set free by 
 virtue of this Act for the Loss of such 
 Services," the Commons have resolved to 
 grant 20,000,000. This was distributed 
 rateably among the Colonies in proportion 
 to the number of slaves in each colony 
 multiplied by their average market price 
 during the eight years ending 3 ist December, 
 1830 (section 45) . Roughly the slave-owner 
 got about half the market value, and the 
 advantage of the apprenticeship. This is 
 a good illustration of the case where the 
 word " bribe" is used. The Government 
 yielded to pressure to pay more than they 
 had originally intended to, not because 
 they were convinced of the injustice of 
 their former proposals or because they 
 
TEMPERANCE REFORM. 29 
 
 wished to give full compensation, but solely 
 because of the political pressure put upon 
 them. 
 
 (3) PROCTORS. 
 
 An illustration of compensation to persons 
 injured by the loss of a monopoly is afforded 
 by section 105 of the Probate Court Act, 
 1857 ( 20 & 2I Viet, c. 77), which runs as 
 follows : 
 
 " ' Whereas the Fees or Emoluments of the Persons now 
 practising as Proctors in the Courts now exercising Juris- 
 diction in Matters and Causes Testamentary may be 
 damaged by the abolition of the exclusive Rights and 
 Privileges which they have hitherto enjoyed as such 
 Proctors in such Courts : ' Be it enacted, That the Com- 
 missioners of Her Majesty's Treasury . . . may . . . 
 ascertain and absolutely determine the net annual Amount 
 of the Profits arising from the Transaction of Business by 
 Proctors in Matters and Causes Testamentary, on an 
 average of Five Years immediately preceding the Com- 
 mencement of this Act . . . and shall award to each and 
 every such Proctor a Sum of Money or annual Payment 
 during the term of his natural Life of such Amount as 
 shall be equal in Value to One Half of the net Profits 
 derived by such Proctor in respect of Matters and Causes 
 Testamentary upon the said Average of Five Years . . ." 
 
 Section 109 of the same Act, which gives 
 compensation to Sir J. Dodson in case he 
 
30 COMPENSATION IN 
 
 be not appointed Judge of the Court of 
 Probate, illustrates a case of compensation 
 to a person for the loss of an office which 
 might reasonably be supposed to be per- 
 manent. 
 
 (4) ARMY PURCHASE. 
 
 The most surprising case of compensa- 
 tion is that which was given when the 
 purchase of commissions in the army was 
 abolished. There was a fixed scale of prices 
 prescribed by the regulations. By section 8 
 of 49 Geo. III. c. 126 : 
 
 " Every Officer in His Majesty's Forces, who shall take, 
 accept, or receive or pay, or agree to pay any larger Sum 
 of Money, directly or indirectly, than what is allowed by 
 any regulations made by His Majesty in relation to 
 the Purchase, Sale, or Exchange of Commissions in His 
 Majesty's Forces, or who shall pay, or cause to be paid 
 any Sum of Money, to any Agent or Broker, or other 
 person for negotiating the Purchase or Sale or Exchange 
 of any such Commission, shall, on being convicted thereof 
 by a General Court Martial forfeit his Commission, and 
 be cashiered . . . every Person who shall sell his Com- 
 mission in His Majesty's Forces and not continue to hold 
 any Commission in His Majesty's Forces, and shall, upon 
 or in relation to such Sale, take, accept, or receive directly 
 or indirectly any Money, Fee, Gratuity, Loan of Money, 
 Reward, or Profit, or any Promise, Agreement, Covenant, 
 
TEMPERANCE REFORM. 31 
 
 Contract, Bond, or Assurance, or shall by any Device 
 or Means contract or agree to receive or have any Money, 
 Fee, Gratuity, Loan of Money, Reward, or Profit beyond 
 the regulated Price or Value of the Commission sold, 
 and also every Person who shall wilfully or knowingly 
 aid, abet, or assist such person therein, shall be deemed 
 and adjudged guilty of a Misdemeanour. ..." 
 
 Yet on the abolition of purchase in the 
 army the officers then in service were com- 
 pensated on the basis not only of the regu- 
 lation price but also of the over-regulation 
 price : that is, the customary sum payable 
 in a regiment beyond the regulation price. 
 This is certainly most remarkable. A 
 custom had grown up in spite of continual 
 prohibitions by the Commander-in-Chief, by 
 the Annual Mutiny \ct, and the statute 
 above quoted. The custom was not only 
 non-legal but criminal, and yet the legis- 
 lature decided to pay several millions of 
 pounds to persons as compensation to them 
 for not being permitted to continue to 
 infringe a penal statute. It is noteworthy 
 too that this was not a case of an important 
 trade in which capital had been embarked, 
 or in which very many persons were directly 
 or indirectly employed, but of a traffic which 
 
32 COMPENSATION IN 
 
 was not only against the public interest as 
 well as the law, but in which no capital or 
 labour was embarked. If no compensation 
 had been given there would have been 
 almost no disturbance to the economic 
 equilibrium of the country. The ground, 
 therefore, can only have been that great 
 disappointment would have been felt by a 
 class of persons who were powerful in the 
 country. To quote this as a precedent is 
 almost absurd ; logically, it would lead to 
 the result that we should compensate a 
 burglar for his loss of trade when sent to 
 penal servitude. It was argued that, though 
 illegal, these sales and purchases were made 
 with the knowledge of, and therefore with 
 the sanction of the Government a most 
 dangerous argument, and yet one of great 
 force to many minds. This case shows how 
 much attention the legislature pays to the 
 expectations of mankind based on continual 
 custom to the entire exclusion of all ques- 
 tions of legal rights or even, except in a 
 remote degree, of economic expediency. 
 
 The view that the legislature should 
 recognise no expectation in illegality was 
 
TEMPERANCE REFORM. 33 
 
 strongly held by Sir John Franklin when 
 the question of compensating certain dis- 
 tillers in Van Diemen's Land (of which he 
 was Governor) arose. An Act entitled 
 " The Distillation Prohibition Act " was 
 passed in that colony in the year 1838, 
 which in the preamble contained a pledge 
 to compensate the distillers and rectifiers 
 and compounders. When the time came 
 to fulfil this pledge certain resolutions as 
 to the manner of carrying it out were moved 
 in the Legislative Council on the 22nd June, 
 1838 ; two of these were as follows : 
 
 " 2. That it is the opinion of this Council that any 
 Rectifier and Compounder who has been in the habit of 
 selling rectified spirits contrary to the provisions of law 
 ought not to be compensated for the loss of such trade. 
 
 4. That it is the opinion of this Council that any 
 applicant having been proved to the satisfaction of this 
 Council to have been in the habit of distilling contrary 
 to law, has by that practice cancelled all claim he might 
 otherwise have had to compensation." 
 
 In a minute (2nd September, 1839) of Sir 
 John Franklin's on the subject he goes so 
 far as to wish to throw the onus of proving 
 that the distillation had been legal on the 
 distiller. This instance suffices to show 
 
 T.R. D 
 
34 COMPENSATION IN 
 
 that the case of Army Purchase must not 
 be taken as a precedent without great 
 caution. 
 
 (5) LOTTERIES. 
 
 The case of Lotteries is sometimes quoted 
 as analogous to that of the drink traffic ; but 
 the analogy does not go very far. Lotteries 
 were at one time a recognised form of raising 
 revenue, 1 and in addition to these public 
 lotteries there were at the end of the I7th 
 century lotteries purporting to be held 
 under patents or grants, and lotteries 
 without any authority at all. The Act of 
 10 & ii Will. III. c. 17, declared lotteries 
 to be public nuisances and all grants thereof 
 void. A succession of statutes 2 with the 
 same object indicates that the legislation 
 was not completely successful. Finally, in 
 1782, an Act (22 Geo. III. c. 47) was passed 
 for licensing Lottery Office Keepers and 
 regulating the sale of Lottery Tickets. By 
 section 2 no person is to keep a lottery 
 
 1 For the economics of public lotteries, see Sieghart, 
 " Die Oeffentlichen Gluckspiele." 
 
 2 9 Anne, c. 6; 10 Anne, c. 26 ; 5 Geo. I. c. 9; 
 8 Geo. I. c. 2 ; 9 Geo. I. c. 19 ; 12 Geo. II. c. 28. 
 
TEMPERANCE REFORM. 35 
 
 office without taking out a licence from the 
 Stamp Office. By section 3 a licence is to 
 cost 50, and by section 4 "such licence 
 shall continue in force for twelve calendar 
 months from the date thereof and no longer." 
 The licence was forfeited if the licensee was 
 convicted of any offence against the Act. 
 Another Act " to render more effectual the 
 Laws now in being for suppressing unlawful 
 Lotteries" (27 Geo. III. c. i) was passed 
 five years later. Finally, in 1823, it was 
 decided to be expedient to discontinue rais- 
 ing money for the public service by way of 
 lottery. Public lotteries being then thus 
 discontinued, no one could any longer have 
 any legal ground for keeping a lottery 
 office. The holders of annual licences were 
 not compensated. It is not possible now to 
 ascertain how great the expectation of the 
 renewal of their licences may have been ; 
 but it is not probable that the expectation 
 of renewal had any market value. It ap- 
 pears to be the case that any one (who had 
 not been convicted of an offence against the 
 Lottery Acts) could take out a licence on 
 paying 50 and giving a bond to His 
 
 D 2 
 
36 COMPENSATION IN 
 
 Majesty. On the other hand, by section 20 
 of the Act of 4 Geo. IV. c. 60 (the last 
 Act granting a sum of money to be raised 
 by lotteries), it is enacted that " after the 
 Conclusion of the Drawing of the Lotteries 
 authorised by this Act, it shall and may be 
 lawful for the said Commissioners of His 
 Majesty's Treasury to grant such reason- 
 able Allowances or Compensations as they 
 may deem just and fit, to such of the 
 Commissioners, Officers, Clerks, and others 
 theretofore employed in the Drawing of the 
 Lottery, and in Matters relating thereto, as 
 may appear deserving of the same, . . ." 
 This is a case of the Government compen- 
 sating their servants for loss of employment. 
 
 (6) THE IRISH CHURCH. 
 
 When the Irish Church was disestablished 
 by the Irish Church Act, 1869 (32 & 33 Viet, 
 c. 42) compensation on a very lavish scale 
 was given to all those formerly employed by 
 the Church. The holders of archbishoprics, 
 bishoprics, benefices 1 or cathedral prefer- 
 ments and permanent curates received life 
 1 Sect. 14. 
 
TEMPERANCE REFORM. 37 
 
 annuities equal to the amount of their yearly 
 income j 1 non-permanent curates a gratuity of 
 25 for each year they had served as curates. 
 Further compensation was given to diocesan 
 and district schoolmasters, clerks, sextons, 2 
 and other persons, 3 and finally compensation 
 to lay patrons. 4 Mr. Gladstone was most 
 vigorous in saying that every vested right 
 must receive absolute compensation and 
 satisfaction. Certainly in this case expec- 
 tancies were not disappointed ; and as some 
 education is necessary to enable a man to 
 take Holy Orders, it may be considered that 
 some capital had been invested in this 
 profession. 
 
 (7) TELEGRAPH COMPANIES. 
 
 In 1868 the Act which enabled the 
 Postmaster-General to acquire the Electric 
 Telegraphs from the Telegraph Companies 
 (31 & 32 Viet. c. no) provided that : 
 
 " Every Officer and Clerk of any Company, the Under- 
 taking of which may be so purchased, who has been not less 
 than Five Years in the Service of Telegraph Companies, 
 
 1 Sect. 15. s s ect< I7< 
 
 8 Sect. 1 6. 4 Sect. 18. 
 
3 8 COMPENSATION IN 
 
 and in the Receipt of a yearly Salary, or who has been not 
 less than Seven Years in the Sen-ice of Telegraph Com- 
 panies, or in receipt of Remuneration at a Rate of not less 
 than ^"50 a Year shall, if he receives no Offer of an 
 Appointment by the Postmaster General in the Telegraphic 
 Department which shall be deemed by an Arbitrator 
 ... to be of equal Value to the Appointment held by 
 him under any Company, receive during his Life from the 
 Postmaster General, by way of Compensation for the Loss 
 of his Office from the time at which the Government takes 
 possession of the Company's Telegraph, an Annuity, pay- 
 able half-yearly, equal, if he shall have been in the service 
 of the Telegraph Companies Twenty Years to Two Thirds 
 of the annual Emolument derived by him from his Office 
 on 24th June, 1868, and with respect to any such Person 
 who had been in such service less than Twenty Years the 
 said Annuity shall be diminished at the Rate of One 
 Twentieth for every Year less than Twenty Years during 
 which he has been in such Service." 1 
 
 This provision of a retiring pension of two- 
 thirds of the officer's salary is very full com- 
 pensation. Any of the Telegraph Companies 
 could doubtless have dismissed their officers 
 at pleasure. 
 
 (8) OFFICERS UNDER THE LOCAL 
 GOVERNMENT ACTS. 
 
 There is a very large number of cases 
 of compensation to persons for the loss of 
 1 Sect. 8 (7). 
 
TEMPERANCE REFORM. 39 
 
 their office on its being abolished by Act of 
 Parliament. An Appendix is given con- 
 taining a list of Acts under which such 
 compensation may be claimed. 
 
 The two factors determining the amount 
 of compensation are nearly always the 
 amount of past profits and the age of the 
 person to be compensated. By section 120 
 of the Local Government Act, 1888 (51 &52 
 Viet. c. 41) : 
 
 " (i) Every existing officer declared by this Act to be 
 entitled to compensation, and every other existing officer, 
 whether before mentioned in this Act or not, who by 
 virtue of this Act or anything done in pursuance of or 
 in consequence of this Act, suffers any direct pecuniary 
 loss by abolition of office or by diminution or loss of 
 fees or salary, shall be entitled to have compensation paid 
 to him for such pecuniary loss by the county council, to 
 whom the powers of the authority whose officer he was, 
 are transferred under this Act, regard being had to the 
 conditions on which his appointment was made, to the 
 nature of his office or employment, to the duration of his 
 service, to any additional emoluments which he acquires 
 by virtue of this Act or of anything done in pursuance of 
 or in consequence of this Act, and to the emoluments 
 which he might have acquired if he had not refused to 
 accept any office offered by any council or other body 
 acting under this Act, and to all the other circumstances 
 of the case, and the compensation shall not exceed the 
 amount which, under the Acts and rules relating to Her 
 
4 o COMPENSATION IN 
 
 Majesty's Civil Service, 1 is paid to a person on abolition 
 of office." 
 
 An officer means a person holding any 
 place, situation, or employment. 2 By sec- 
 tion 8 1 (7) of the Local Government Act, 
 1894 (56 & 57 Viet. c. 73), the section last 
 quoted " shall apply in the case of existing 
 officers affected by this Act, whether officers 
 above in this section mentioned or not, as 
 if references in that section to the county 
 council were references to the parish council, 
 or the district council, or board of guardians 
 or other authority whose officer the person 
 affected is when the claim for compensation 
 arises as the case may require." Under a 
 similar Act 3 even an office boy has been 
 held to be an officer. 4 Further, although 
 the office may be one held during pleasure, 
 the compensation may be given as for an 
 office held for life. 5 And by the London 
 
 1 These are regulated by the Superannuation Acts, 
 
 1859 and l88 4 ( 22 Vict - c - 26 and 47 & 4 8 Vict - c - 57)- 
 
 2 Sect. 100. 
 
 3 The Metropolis Management (Plumstead and 
 Hackney) Act, 1893 (56 & 57 Vict. c. 55). 
 
 4 Legg v. Stoke Newington Vestry, 59 J. P. 696. 
 
 5 R. v. Norwich, 8 A. & E. 633, 
 
TEMPERANCE REFORM. 41 
 
 Government Act, 1899, l section 81 (7) of the 
 Local Government Act, 1894, is applied for 
 the purpose of calculating the compensa- 
 tion to be paid to assistant overseers, rate 
 collectors and other officers whose offices 
 are abolished by the Borough Councils. 
 
 (9) THAMES FERRYMEN. 
 
 Lastly, to illustrate the case of compen- 
 sation for loss of employment owing to 
 the competition of a public improvement, 
 section 32 of the Thames Tunnel (Green- 
 wich to Millwall) Act, 1897 (60 & 61 Viet, 
 c. ccxxiv.) may be quoted : 
 
 "The licensed ferrymen of the Company of Water- 
 men and Lightermen of the River Thames who now are 
 and have been working from Upper Watergate Deptford 
 to Cocoa Nut Stairs Millwall for three years before the 
 passing of this Act (including any person who was an 
 apprentice to any such ferryman at any time within 
 the said period of three years and shall be a licensed 
 ferryman working between the said points at the time of 
 the opening of the subway) shall be respectively entitled 
 by way of compensation to such sum of money to be 
 paid by the Council at such time as may be or may have 
 been agreed between such ferrymen and the Council 
 or in default of agreement to such sum as after the 
 
 1 62 & 63 Viet. c. 14, s. 30 (2). 
 
42 COMPENSATION IN 
 
 opening of the subway may be determined to be fair 
 and reasonable by an arbitrator to be appointed by the 
 Board of Trade on the application of either the Council 
 or any such ferryman." 
 
 CONCLUSIONS. 
 
 With the exception of the Slave Trade 
 and the Lottery Licences, all these examples 
 (and they could be greatly increased in 
 number) show that compensation has been 
 given, not only when actual property has 
 been taken away or valuable monopolies 
 destroyed, but also when expectations of 
 employment have been damaged. The pro- 
 bable reason why the slave traders were not 
 compensated is that their business was 
 repugnant to the moral sense of almost 
 the whole community. The non-disappoint- 
 ment principle hardly applies to the holders 
 of lottery licences, because such licences 
 were not valuable franchises. The market 
 value of such a licence being very small, the 
 disappointment at its not being renewed, 
 especially as public opinion had condemned 
 lotteries as a method of raising public 
 moneys, was exceedingly small. 
 
TEMPERANCE REFORM. 43 
 
 The non-disappointment principle is ap- 
 plied not only to cases where capital has 
 been invested under the cover of definite 
 legal rights or special advantages have long 
 been enjoyed, but also to cases where no 
 capital has been invested and even where 
 the expectant advantage is a criminal one. 
 On the other hand, the legislature is con- 
 tinually restricting rights of user of property 
 (as when it prevented the sale of advowsons 
 by public auction 1 ), or diminishing the proba- 
 bility of profitable employment in some 
 business or profession. But in these cases 
 the damage is in general indirect, remote 
 and small, and the amount of disappointment 
 cannot be measured in terms of money. It 
 is a condition precedent to any compensation 
 that the amount of damage is large. De 
 minimis non curat lex. When the damage 
 is large, and has a definite money measure, 
 and especially when capital has been invested 
 in acquiring the property, the expectancy, 
 or the proficiency in a particular employment, 
 the case for compensation is of the strongest 
 kind. 
 
 1 The Benefices Act, 1898(61 & 62 Viet. c. 48), s. 1(2). 
 
44 COMPENSATION IN 
 
 SECTION III. 
 
 SPECIAL FEATURES OF THE POSITION OF A 
 LICENCE-HOLDER. 
 
 IN the particular case of compensation 
 for the loss of the peculiar form of property 
 called a justices' licence and the expectation 
 of renewal of it, we find various features in 
 the legal rights and interests of licence- 
 holders which prevent us from deriving 
 much assistance from precedent or analogy. 
 Although it is of the first importance in 
 discussing this topic, as has already been 
 pointed out, not to look at the technical 
 legal rights, but rather at reasonable and 
 legitimate expectation, yet because the 
 reasonableness and legitimacy of the expec- 
 tation is determined to a great extent by the 
 actual legal rights and the actual practice of 
 those who administer the law, and because a 
 great deal of argument is continually based 
 upon an examination of the precise legal 
 rights of licence-holders, it is well to state 
 
TEMPERANCE REFORM. 45 
 
 and consider what these rights are. A com- 
 plete or even a full or accurate statement of 
 the legal position of a licence-holder is a 
 very elaborate matter and should be gleaned 
 either from text-books on the Licensing 
 Laws or the Reports of the Royal Com- 
 mission on the Liquor Licensing Laws. 1 
 There is a great variety in the kinds of 
 licence, but the position of the holder of a 
 full justices' licence for sale of beer and 
 spirits on the premises exemplifies the posi- 
 tion of a licence-holder sufficiently for the 
 present purpose. 
 
 (i) THE LEGAL POSITION. 
 
 The licence lasts for one year and for one 
 year only, but the legislature appears to 
 contemplate a renewal of the licence in the 
 ordinary course. This is shown by the 
 difference of procedure between the cases of 
 the grant of a new licence and the renewal 
 of an old one. In one case indeed, that of 
 the beer-houses in existence before 1869 
 (which have been previously referred to as 
 ante- 1869 beer-houses), the justices cannot 
 
 1 C. 9,379- 
 
46 COMPENSATION IN 
 
 refuse to renew the licence 1 except on one 
 of the four grounds : 
 
 "(i.) That the applicant has failed to produce satisfac- 
 tory evidence of good character : 
 
 "(2.) That the house or shop in respect of which a 
 licence is sought, or any adjacent house or shop owned 
 or occupied by the person applying for a licence, 
 is of a disorderly character, or frequented by thieves, 
 prostitutes, or persons of bad character : 
 
 " (3.) That the applicant having previously held a licence 
 for the sale of wine, spirits, beer, or cider, the same has 
 been forfeited for his misconduct, or that he has through 
 misconduct been at any time previously adjudged dis- 
 qualified from receiving any such licence, or from selling 
 any of the said articles : 
 
 " (4.) That the applicant or the house in respect of 
 which he applies, is not duly qualified as by law is 
 required." 2 
 
 Except in the case oi an ante- 1869 beer- 
 house, the grant of a renewal rests in the 
 discretion of the justices, but such discretion 
 should be judicially exercised in the case of 
 each licence. 
 
 Licences are granted at annual licensing 
 meetings of the county justices in every 
 petty sessional division and of the borough 
 
 1 It is called a certificate. 
 
 2 The Wine and Beerhouse Act, 1869 (3 2 & 33 Viet, 
 c. 27), s. 8. 
 
TEMPERANCE REFORM. 47 
 
 justices in every borough having a separate 
 commission of the peace. 1 The grant of a 
 new " on " licence requires confirmation. 
 In county districts the confirming authority 
 is the county licensing committee ; in 
 boroughs where there are more than ten 
 justices of the peace it is the whole body of 
 the borough justices save those disqualified 
 from acting in licensing matters ; in the 
 other boroughs the licences go for confirma- 
 tion to a joint committee of justices of the 
 county and the borough. The law as 
 to renewal is thus stated in the Majority 
 Report of the Royal Commission on Liquor 
 Licensing Laws 2 : 
 
 " Apart from these cases " (the ante- 1869 beer-houses) 
 " the distinction between the position of an applicant for a 
 renewal and one who seeks a new licence is clearly 
 marked in the Licensing Acts. In the case of renewal 
 no notice of application for the licence is required and 
 the attendance of the applicant is not compulsory in the 
 absence of a requisition to the justices to attend. If an 
 objection is to be heard to a renewal, seven days' notice 
 must be given to the licensee. An objection may be 
 taken in Court and without notice ; but the justices are 
 not entitled to hear it unless they adjourn the case and 
 require the licensee to attend at a subsequent date, when 
 
 >P. II. 2 P. 12. 
 
48 COMPENSATION IN 
 
 the matter is heard in full. All evidence must be given 
 on oath, and in the event of the renewal being refused, 
 there is an appeal to the county quarter sessions. In 
 addition, with regard to renewals, there are special pro- 
 visions for protecting the rights of owners. In the event 
 of a renewal being refused, the owner has a right of 
 appeal as a party aggrieved. In section 50 of the Act 
 of 1872* it is enacted that a copy of the notice of an 
 application for an order sanctioning the removal of a 
 licence shall be served upon the owner of the premises 
 whose consent to such a removal is a condition of its 
 being made. Section 56 of the Act of 1872 moreover 
 provides for the protection of the owners of licensed 
 premises in cases of offences committed by their tenants, 
 and section 15 of the Act of 18742 enables the owner to 
 obtain a temporary authority to carry on the business when 
 the licence is in certain cases forfeited by the licensee." 
 
 A further piece of evidence that the legis- 
 lature contemplates renewal in the ordinary 
 course of events is shown by section 22 of 
 the Licensing Act, i874, 3 by which 
 
 " Any person interested in any premises about to be 
 constructed or in course of construction for the purpose 
 of being used as a house for the sale of intoxicating 
 liquors to be consumed on the premises may apply to 
 the licensing justices and to the confirming authority for 
 the provisional grant and confirmation of a licence in 
 respect of such premises ; and the justices and confirming 
 
 1 35 & 36 Viet. c. 94. 
 
 2 37 & 38 Viet. c. 49. 
 
 3 37 & 38 Viet. c. 49- 
 
TEMPERANCE REFORM. 49 
 
 authority, if satisfied with the plans submitted to them of 
 such house, and that if such premises had been actually 
 constructed in accordance with such plans they would, 
 on application, have granted and confirmed such a licence 
 in respect thereof, may make such provisional grant and 
 order of confirmation accordingly. A provisional grant 
 and order of confirmation shall not be of any validity 
 until it has been declared to be final by an order of the 
 licensing justices, made after such notice has been given 
 as may be required by the justices at a general annual 
 licensing meeting or a special sessions held for licensing 
 purposes. Such declaration shall be made if the justices 
 are satisfied that the house has been completed in accord- 
 ance with such plans as aforesaid, and are also satisfied 
 that no objection can be made to the character of the 
 holder of such provisional licence. ..." 
 
 In accordance with the provisions of this 
 section large sums of money have been spent 
 upon buildings specially adapted for the trade 
 of a licensed victualler, the plans of which had 
 been previously sanctioned by the licensing 
 justices. It is difficult to believe that the 
 legislature intended that a man who had 
 invested his capital in building premises in 
 accordance with a provisional grant should 
 not in the ordinary course of events be per- 
 mitted to continue to use the premises for 
 the trade for which they were specially 
 adapted. And it may be added that the 
 
 T.R. E 
 
5 o COMPENSATION IN 
 
 justices have power to make a final order, not- 
 withstanding certain alterations in the plan, 
 where these alterations are not substantial. 1 
 
 In fact, the locus standi for renewal is 
 recognised by the legislature in a variety of 
 ways, and can never be lost sight of. In the 
 special case of the ante-i86g beer-houses, 
 this locus standi for renewal is converted into 
 an absolute right to renewal, subject only to 
 the fulfilment of certain conditions. 
 
 Undoubtedly a licence is a form of property 
 of a very special and peculiar kind. It does 
 not, for example, vest in the trustee in 
 bankruptcy on the failure of a licence-holder ; 
 and where a lease of a public-house deter- 
 minable on the bankruptcy of the lessee 
 contained a covenant by the lessee upon the 
 determination of the term to assign the 
 licences to the lessor and the lessee became 
 bankrupt before the expiration of the term, 
 it was held that his trustee in bankruptcy 
 took no interest in the licences and that the 
 
 1 R.v. The Justices of the County of London, 62 L. T. 
 N. 8.458; 24 Q. B. D. 341; and see Mr. Buxton's 
 evidence before the Royal Commission (Q. 35,062 et seq.") 
 and Sir H. B. Poland's (Q. 1,070). 
 
TEMPERANCE REFORM. 51 
 
 covenant was valid, entitling the lessor to 
 have the licences delivered up to him though 
 they were not assignable (Ex parte Royle, 
 Re Britnor, 46 L. J. N. S. Bankruptcy 85). 
 
 But, as a matter of practice, the licence is, 
 in an ordinary case where a licence-holder 
 becomes bankrupt, transferred to his trustee 
 in bankruptcy, 1 and thus the creditors obtain 
 the value of the licence, so that in substance, 
 though not in law, a licence is property of 
 which the creditors of a bankrupt licensee 
 obtain the benefit. 
 
 Lord Selborne's description of the interest 
 of a publican in his licence is an interest 
 for a year with a locus standi for renewal, 
 recognised by law and reason, though pre- 
 carious, and depending upon the exercise of 
 judicial discretion in case of opposition. 
 
 (2) THE PROBABILITY OF RENEWAL IS 
 VERY HIGH. 
 
 This is shown by 
 
 (i.) LEGAL DECISIONS. 
 
 Under the present administration of the 
 law the probability of renewal is often 
 1 See The Alehouse Act, 1828(9 Geo.IV.c. 61), 3. 14. 
 
 or THE 
 
 UNIVERSITY 
 
 V OF 
 
52 COMPENSATION IN 
 
 described as a practical certainty. The law 
 recognises that in general this probability 
 is very large. Thus, in the case of Belton 
 v. The London County Council (68 L. T. N. S. 
 411), it was held that, in estimating the 
 compensation to be paid under the Lands 
 Clauses Consolidation Acts to a claimant in 
 respect of the reversion of licensed premises 
 held under a lease of which twenty-six years 
 are unexpired, the arbitrator is entitled and 
 ought to admit evidence to prove the present 
 market value that is, the price that would 
 be paid in the open market of the claimant's 
 reversionary interest in the premises as 
 licensed premises, and is not bound to con- 
 fine the evidence to the estimated rental 
 value of the premises as a house and shop, 
 apart from the question of whether when 
 the reversion falls in they would then be 
 licensed premises. The present value of a 
 reversion twenty-six years off is but -^jths * 
 of its present value in possession. If the 
 probability of renewal in one year were ten 
 to one, the probability of the premises being 
 licensed at the end of twenty-six years would 
 1 On a 4 per cent, basis with yearly rests. 
 
TEMPERANCE REFORM. 53 
 
 be only one-tenth. It is, therefore, not unfair 
 to assume that the probability at the present 
 time of renewal in the near future must be 
 regarded as very much greater than ten to one. 
 And in the case of Cocks v. Lady Henry 
 Somerset (n Times Law Reports (1895), 
 p. 567), a remainderman restrained Lady 
 Henry Somerset, who was tenant for life, from 
 leasing an old licensed house with a cove- 
 nant not to use the premises for the sale of 
 intoxicating liquors. 1 In cases under the 
 Lands Clauses Consolidation Acts, compen- 
 sation is always given on the footing that 
 the licence will in all probability be renewed 
 annually. 
 
 (ii.) INSURANCE RATES. 
 There is another and more accurate way 
 of measuring this probability or practical 
 certainty of renewal. 2 It is now a common 
 practice for brewers and others to insure 
 against the loss of their licence, and com- 
 panies exist whose sole business is concerned 
 with such assurance. The result is that 
 
 1 The Court made a declaration only no injunction 
 was claimed. 
 
 2 Q. 35,5- 
 
54 COMPENSATION IN 
 
 business men find that in most parts of 
 England there is a practical certainty of 
 renewal so long as there is no misconduct. 
 At one time a certain insurance company 
 made a distinction between ante-i86g and 
 other beer-houses, on the ground of the 
 peculiar right to (instead of probability of) 
 renewal which existed in the case of the 
 former, but it was found that in practice 
 there was no valid ground for charging 
 different rates of premium in the two cases. 
 The actual rates of insurance, for brewers 
 insuring all their licences, charged by 
 the Licences Insurance Corporation and 
 Guarantee Fund Limited, are as follows : 
 
 Insurable value of each licence. 
 
 For each /ioo. 
 
 5,000 and upwards 
 
 ^2,500 
 
 1,000 
 
 Under 1,000 
 
 2s. 6d. 
 3^. od. 
 3*. 6d. 
 4*. od. 
 
 These rates are subject to increase in 
 districts where the authorities are excep- 
 tionally exacting, or upon houses in low 
 
TEMPERANCE REFORM. 55 
 
 neighbourhoods and difficult to manage. 
 The rates for single houses average 6s. per 
 cent. An insurance company, in order to 
 make its profit, must charge higher rates of 
 premium than those based upon the exact 
 chance of the loss of licence, and, therefore, 
 when for instance the premium in the case 
 of an insurance for 5,000 is 2S. 6d. per 
 100 this indicates that in the opinion of 
 the insurance company the chance that the 
 licence will not be renewed is less than one 
 in eight hundred. 
 
 Taking 6s. per cent, as the average rate 
 at which a licence can be insured for one 
 year, we see that the odds are a good deal 
 more than three hundred to one in favour 
 of a licence being renewed. Undoubtedly 
 in most places in the case of a respect- 
 ably conducted house the probability of 
 renewal is a practical certainty, and the 
 risks against which the licence-holder 
 insures are almost entirely the risk of 
 losing the licence through some form of 
 misconduct. Out of a selection of fifty 
 claims paid by the corporation above 
 referred to, only ten of the causes of refusal 
 
56 COMPENSATION IN 
 
 to renew the licence were on the ground that 
 the house was not required. And in some of 
 these cases it is likely that, though the alleged 
 reason was that the house was not required, 
 it is probable that there had been complaints 
 against the house. It is not uncommon for 
 this ground to be given when it is not the 
 sole ground but only one of the grounds. 
 Conclusions drawn from statistics of the 
 number of licences not renewed on the 
 ground that the houses are not required are 
 liable to be fallacious. 1 
 
 The rates for the insurance of the licences 
 of small houses in the county of Lancaster 
 and in North Wales are considerably higher ; 
 so much so, that perhaps it is not more than 
 two hundred to one that the licence will be 
 renewed. But a two hundred to one chance 
 may be for business purposes a practical 
 certainty. 
 
 The rates of insurance above given are, 
 of course, the rates for one year only, and it 
 is doubtful whether an insurance company 
 would be willing to quote rates for a large 
 number of years in advance. At any rate, 
 
 1 Q- 35,09- 
 
TEMPERANCE REFORM. 57 
 
 it must not be assumed that from these rates 
 we can calculate the chance that a given 
 licensed house will be licensed (say) thirty 
 years hence. But they suffice to show that 
 the immediate expectation of renewal is very 
 great. It is also possible to insure a mort- 
 gage debt and interest secured upon licensed 
 property for a period of five years at least, 
 at rates which indicate a very strong proba- 
 bility that a licensed house, which at the 
 present time is well conducted, will be a 
 licensed house five years hence. 
 
 (iii.) STATISTICS. 
 
 A third method of testing the probability 
 or reasonable expectation of renewal re- 
 mains. This is to see how many licences 
 are in fact annually not renewed on grounds 
 other than misconduct. From a study of 
 the return of " Intoxicating Liquor Licences 
 Refused," Mr. E. N. Buxton 1 has calculated 
 that a licensee's chance of renewal is about 
 10,000 to one, and he believes that in the 
 case of licences of value in large towns the 
 chance is much higher than that. 
 
 1 Q- 35,090. 
 
58 COMPENSATION IN 
 
 (iv.) MARKET VALUES. 
 
 In the fourth place, market values appear 
 to be calculated on the assumption that 
 licences are practically permanent, and the 
 officials of the Inland Revenue Department 
 at Somerset House adopt this view for the 
 purpose of calculating the death duties 
 payable on the death of any person. In a 
 memorandum issued by that department on 
 I4th May, 1890 setting forth the practice of 
 the department, for the purpose of probate 
 duty it is assumed that the licence will con- 
 tinue, and for the purpose of succession duty 
 it is assumed that the licence will endure 
 during the whole life of the successor. At 
 the present time, estate duty having taken 
 the place of probate duty, the valuation is 
 based upon the market value, and this value 
 at the present time is based upon the prac- 
 tical certainty of renewal. 
 
 From this we may conclude that, however 
 much it may be asserted that while the 
 ante- 1 869 beer-houses (where there is a per- 
 petual right of renewal) are a strong case 
 of vested interests, the ordinary licensed 
 house must be regarded as having a mere 
 
TEMPERANCE REFORM. 59 
 
 hope of renewal, and therefore a weak case 
 of vested interests, such assertions are based 
 upon a technicality which does not affect the 
 ordinary dealings with this kind of property. 
 The expectation of renewal, which gives the 
 value to the locus standi for renewal, is very 
 great, and the expression, "a practical 
 certainty," is rarely used with greater pre- 
 cision than when the expectation of renewal 
 of the licence of a well-conducted licensed 
 house is described as " a practical certainty." 
 
 (3) LICENSED PREMISES ARE MORTGAGED. 
 
 Another special feature of the position of 
 a licence-holder is the fact that in general 
 this form of property is heavily mortgaged. 
 Brewers and distillers usually have mort- 
 gages on licensed houses, and the actual 
 interest of the licensee in the licensed pre- 
 mises often does not extend to more than 
 one-fifth or one-sixth of their value. If 
 licences are to be suppressed without com- 
 pensation a great part of the loss would fall 
 upon the trades of brewing and distilling. It 
 is urged that compensation should not ex- 
 tend in such a case to brewers and distillers 
 
60 COMPENSATION IN 
 
 on the grounds (i) That if only some licensed 
 houses are suppressed they will recoup 
 themselves by the increased value of the 
 others this point is considered later 
 (2) That in some sense the trades of brewing 
 and distilling are becoming monopolies. It 
 is also urged that the value of a licence 
 depends largely upon the fact that the 
 number of licences is limited and that it is 
 the monopoly created by the action of the 
 licensing authorities in not giving licences 
 freely which makes this value so high. There 
 is a not unnatural prejudice against mono- 
 polies (except state and municipal ones), 
 and the brewing trade is often attacked 
 on the ground that it is a great and 
 dangerous monopoly. In any investiga- 
 tion, therefore, of the special features of 
 the problem of compensation in this case 
 this question of monopoly should be care- 
 fully considered. Great confusion is often 
 caused by the use of the word " monopoly " 
 in different senses. Sometimes it is used 
 to denote that the supply of an article is 
 limited ; sometimes that the supply is in the 
 hands of one person or united set of persons. 
 
TEMPERANCE REFORM. 61 
 
 A licence is a monopoly in the first sense, 
 because the number of licensed premises is 
 limited; although in many places this 
 number is so great as to detract from the 
 practical value of any argument based on 
 the assumption that the supply of licensed 
 houses is much restricted. In the other 
 sense there is no general monopoly of the 
 supply of beer because there are a large 
 number of brewers in the country between 
 whom competition is very keen. Hence from 
 the point of view of the production of beer 
 and spirits there is no monopoly. Thus the 
 second argument that the trades of brew- 
 ing and distilling are monopolies is seen to 
 have little force. The fact that a licence- 
 holder is often a monopolist, and has paid 
 for his monopoly, is a reason for compen- 
 sating him for the loss of his licence. 1 
 
 Further, brewers and distillers are not the 
 only persons who have mortgages on public- 
 houses. Bankers, public companies, and 
 private individuals lend money upon the 
 security of this class of property, and there- 
 fore any sudden suppression of a large 
 1 See p. 104 for the contrary opinion. 
 
62 COMPENSATION IN 
 
 number of licences would injuriously affect 
 many persons in no way connected with the 
 trades of brewing or distilling. Perhaps too 
 much has been sometimes said 1 to the effect 
 that trustees frequently invest trust funds in 
 this sort of property, and that many widows 
 and orphans would be left penniless if the 
 interests of mortgagees were not safeguarded, 
 but such exaggerations have an element of 
 truth in them which should not be forgotten. 
 
 (4) THE INTERESTS ARE LARGE AND 
 WIDESPREAD. 
 
 Another respect in which this question of 
 compensation for licences which are sup- 
 pressed for the public benefit is singular is 
 due to the fact that the magnitude of the 
 pecuniary interests involved is very great 
 and that the number of persons so interested 
 is extremely large. These facts are notorious. 
 The number of fully licensed houses is about 
 67,000 ; the number of "on " beer-houses, 
 or beer and wine-houses, and " on " wine- 
 houses is about 35,000. Their value is very 
 
 1 E.g. by Sir H. B. Poland (Q. 1045). 
 
TEMPERANCE REFORM. 63 
 
 great. The value of the " on " and " off" 
 licences in the Metropolitan Police District 
 (including the value of the premises) is 
 60, 000,000.* In some cases a licence will 
 be worth 10,000 to 12,000. The capital 
 invested in the trades of brewing and dis- 
 tilling is enormous probably more than 
 200,000,000. 
 
 But what is even more important is the 
 fact that owing to the development of the 
 joint stock company system interests in 
 brewing and distilling have become very 
 largely diffused throughout the population ; 
 so that the number of persons who would be 
 directly affected by any wholesale suppression 
 of licences would be very large and would 
 belong to all classes of society. Large 
 London Brewery Companies are either 
 owners or mortgagees of many public-houses 
 in London, and their shareholders are drawn 
 from all classes of society. 2 
 
 1 Q- 35.020. 
 
 2 In the well-known companies of Guinness and Bass, 
 " peers and titled persons and doctors are, after women, 
 the most numerous class. In the same company 
 (Guinness) are 178 persons bearing the title of 'Rev./ 
 
64 COMPENSATION IN 
 
 These facts make it abundantly clear that 
 if the legislature suddenly suppressed a large 
 number of licences there would be, in Austin's 
 phrase, " an extraordinary degree of dis- 
 appointment ; " and this extraordinary degree 
 of disappointment would be felt by a very 
 large number of persons of very various 
 classes. In most cases where the legislature 
 has interfered for the public good the 
 magnitude of the disappointment has been 
 less and would have been borne by a much 
 more restricted class. From the point of 
 view of abstract justice such considerations 
 may be considered irrelevant ; but from the 
 point of view of political expediency, which 
 sees a greater danger in disturbing the ex- 
 pectations of the many than in disturbing 
 those of the few, such considerations may be 
 of the first importance. 
 
 including bishops, deans, archdeacons and canons." 
 (The Temperance Problem and Social Reform, p. 91.) 
 Guinness's, however, is not one of the companies which 
 owns houses largely. The fact that the number of 
 interested persons is large tends to diminish the amount 
 of individual loss. 
 
TEMPERANCE REFORM. 65 
 
 THE PRESENT DIFFICULTY. 
 
 The general policy of the law in the 
 matter of licences for the retail sale of liquor 
 appears to be that the public should have 
 reasonable drinking facilities and that the 
 houses for the sale of liquor should be pro- 
 perly and respectably conducted. Has this 
 been the result of the law as it has been 
 in fact administered ? This question is 
 thus answered by the Majority Report of 
 the Royal Commission on Liquor Licensing 
 Laws 1 : 
 
 " It is generally admitted that the number of licences in 
 a great many parts of England and Wales is in excess of 
 the requirements. Parliament itself is in a great measure 
 answerable for this. By the Act of 1830 an experiment 
 was made in the direction of free trade in beer. This 
 measure was opposed by the official representatives of the 
 trade, who objected to the increased competition that 
 would follow. As a matter of fact, 30,000 beer-houses 
 came into existence on the passing of this Act. Parlia- 
 ment, seeing its mistake, passed, in 1869, an Act to check 
 the excess in "on" beer-houses which, by that date, 
 numbered about 50,000; but it deliberately protected the 
 existing houses. Nor can the Licensing Authorities be 
 held to have been altogether blameless, as in certain 
 districts the grant of more new licences than were needed 
 
 1 P. 6. 
 
 T.R. F 
 
66 COMPENSATION IN 
 
 caused congestion, which still exists notwithstanding the 
 growth of population. The limitation of licences in pro- 
 portion to population was proposed in Mr. Bruce's Bill of 
 1871 ; but we are not satisfied on the evidence that there 
 is a necessary connection between the proportion of 
 licences to population and the amount of drunken- 
 ness. . . . On the other hand, when an excessive and 
 unnecessary number of licensed houses are crowded 
 together in a limited area more drinking probably does 
 prevail ; and a large reduction is much to be desired, 
 because it would facilitate effective supervision by the 
 police, and would diminish competition and improve the 
 status both of the premises and the licensees." 
 
 The excessive number of licensed houses 
 (if it is excessive) is then due to two causes : 
 (i) the mistaken action of Parliament in 
 1830 ; (2) the unwise administration of the 
 law by the justices. Setting aside the 
 question of the ante- 1869 beer-houses, why 
 cannot this state of affairs be remedied by 
 an efficient administration of the law ? In 
 many cases the justices are most careful not 
 to increase the number of licences and make 
 some effort to diminish the number. But 
 most efforts to reduce the number of licensed 
 houses to reasonable limits are hampered by 
 the fact that the number cannot be reduced 
 without special hardship to individuals 
 
TEMPERANCE REFORM. 67 
 
 arbitrarily selected. In the first place, it is 
 clear that when the licences were originally 
 granted the justices were of opinion that the 
 number was not excessive. They would be 
 administering the law improperly if they 
 granted a new licence where it was not 
 required. Public opinion has, however, under- 
 gone a gradual but considerable change ; 
 and it may be assumed that if matters were 
 to start de now the justices would not grant 
 as many licences as there are now existing. 
 The difficulty has thus arisen partly from a 
 change in public opinion as to what is an 
 excessive number of licensed houses. But 
 it may then be urged, " Why, as soon as the 
 number of licensed houses, from whatever 
 cause, became excessive did not the justices 
 refuse to renew more licences than were 
 reasonably required ? And, in fact, was it 
 not their duty to administer the law in that 
 manner ? " It is difficult to say that it was, 
 and it is still more difficult to say that it 
 was reasonably possible for them, as prac- 
 tical men, to do so ; for this could not 
 be carried out without special hardship to 
 individuals. If there be two licensed houses, 
 
 F 2 
 
68 COMPENSATION IN 
 
 both respectably conducted, when only one, 
 in the opinion of the justices, is required, 
 which licence should the justices refuse to 
 renew ? Both licensees have invested their 
 capital and paid a large sum of money for 
 the licence. Why should A. lose his capital 
 and B. not ? To suddenly refuse to renew 
 A.'s licence, because the justices are of 
 opinion that B.'s house alone is sufficient 
 to supply the needs of the neighbourhood 
 would be an act of the grossest hardship on 
 A. If any definite meaning can be applied 
 to the word " justice," it certainly imports 
 equality of treatment in similar cases. Here 
 the cases of A. and B. are exactly similar. 
 To deprive A. of his licence and renew B.'s 
 would be manifestly unjust. This is the 
 special difficulty which confronts the justices 
 in administering the law. 
 
TEMPERANCE REFORM. 69 
 
 SECTION IV. 
 
 PRECEDENTS (a) FOR COMPENSATION. 
 
 How far the question whether compensa- 
 tion has or has not been given in other 
 countries affects the question whether com- 
 pensation should be given in England will 
 be considered later. But as in discussions 
 upon proposed political measures it is not 
 unusual to refer to the practice of other 
 countries in the matter, it is necessary to 
 consider what legislation there has been 
 with reference to the particular question of 
 compensation in other countries. To make 
 any such information useful it is further 
 necessary to consider how far the circum- 
 stances which existed at the date of any 
 such legislation are similar to those now 
 existing in England. To ascertain this at 
 all completely is a task of great difficulty, 
 and the following statement aims at broad 
 generalisations which are in the main true 
 and does not profess to give a detailed and 
 full examination of all the facts. 
 
70 COMPENSATION IN 
 
 (i) SOUTH AUSTRALIA. 
 
 The colony of South Australia, by an Act 
 called " The Licensed Victuallers Amend- 
 ment Act, 1891 (54 & 55 Viet. No. 540)," 
 introduced a scheme of local option with 
 compensation for dispossessed publicans. 
 Part IV. of the Act deals with the sup- 
 pression of licences. The critical sections 
 are: 
 
 " 15. If the determination of the ratepayers of any 
 Local Option District at any poll taken as aforesaid in any 
 year be that the number of publicans' licences shall be 
 reduced to any number below the existing number, then 
 the Licensing Bench having jurisdiction in such Local 
 Option District shall, in the month of March next ensuing, 
 determine, as hereinafter provided, which of such publi- 
 cans' licences shall not be renewed, and at the next annual 
 sitting of such Bench the total number of such publicans' 
 licences shall be reduced by the number required to 
 carry out the determination arrived at ; the owners and 
 occupiers of the respective premises, publicans' licences 
 for which are not to be renewed, shall be forthwith served 
 with a notice to that effect by the clerk of the Licensing 
 Bench, and such owners and occupiers shall be entitled 
 to compensation, to be determined as hereinafter pro- 
 vided; and where the occupier is not the owner of 
 any such premises the lease or agreement under which 
 such occupier holds the same shall, if he shall so elect, 
 be deemed to be annulled : Provided that no person 
 shall be deprived of a publican's licence in pursuance of 
 
TEMPERANCE REFORM. 71 
 
 any such determination unless and until he has received 
 the compensation (if any) due to him in respect thereof 
 under this Act, or the same has been tendered to him ; 
 and the Bench, in determining which of such licences 
 shall not be renewed, shall consider the convenience of 
 travellers, the site, and convenience of the majority of 
 residents near such licensed premises, the length of time 
 for which such premises were licensed, and the general 
 character thereof, and the circumstances of any transfer 
 of licence during the preceding three years." 
 
 The amount of compensation is deter- 
 mined by arbitration ; the basis for its 
 calculation is given by section 22 of the 
 Act, which runs : 
 
 "The compensation to be paid under this Act, 
 on the refusal of the Bench to renew any licence, in 
 consequence of the result of the poll prescribed by 
 this Act, shall be calculated on the following basis, and 
 not otherwise, viz. : The difference between the rental 
 value of the premises as a licensed house and as an 
 unlicensed house, from the time of the non-renewal of 
 such licence until the period of fifteen years from the 
 passing hereof. Should the holder of the freehold of 
 the licensed premises and the licensee be different 
 persons, or should the lessee and the licensee be different 
 persons, or should there be more than one lease sub- 
 sisting of the said premises, or should the premises be 
 mortgaged, or should there be any lien thereon, the said 
 compensation shall be divided between all the persons 
 interested in such proportions and manner as the said 
 arbitrators, or a majority of them may determine." 
 
72 COMPENSATION IN 
 
 The scheme then in substance is that 
 compensation (which is paid out of the 
 Treasury) is given at the rate of fifteen years' 
 purchase, and that fifteen years from the 
 passing of the Act no person is to have 
 any claim to compensation. Whether this 
 fifteen years' purchase was chosen as the 
 fair average market rate or not cannot be 
 said. The clauses relating to compensa- 
 tion in the original Bill l are somewhat 
 obscure, and there is no clause in the Bill 
 corresponding to section 10 of the Act, which 
 enacts that 
 
 "All licences now existing shall, after fifteen years 
 from the passing hereof, not be renewed as a matter of 
 course, but the same shall thereafter be renewed or not 
 at the discretion of the Licensing Bench ; and any licence 
 granted after the passing hereof for premises not pre- 
 viously licensed shall be for one year only, and shall be 
 renewed or not, entirely at the discretion of the Licensing 
 Bench, and no such renewal shall be held to be a matter 
 of course." 
 
 On the face of it the South Australian 
 scheme is one for giving full compensation 
 and the basis of calculation is given as a 
 simple and ready means for determining 
 
 1 This is given in C. 6,276 (1891), p. 50. 
 
TEMPERANCE 
 
 this. In fact, the local option clauses do 
 not appear to have been utilised very much. 
 On 3ist October, 1893, the Commissioner of 
 Police reports that the local option clauses 
 have not resulted in the closing of any public- 
 houses. 1 
 
 (2) VICTORIA. 
 
 The Licensing Act, 1890, of the Colony 
 of Victoria (54 Viet. No. 1,111) contains 
 provisions for local option and for compen- 
 sation to dispossessed licence-holders. The 
 compensation is to be determined by arbi- 
 tration ; but the only hint of what the com- 
 pensation is to be is contained in section 44 
 (relating to arbitration) which enacts that 
 " the amount of compensation shall be 
 determined by the arbitrators on a fair and 
 equitable basis." Presumably this means 
 that the compensation shall be at the 
 full market value ; for if it does not it is 
 curious that the fact that the compensation 
 is to be partial or limited is not expressly 
 stated ; but the amount must depend upon 
 the actual practice of arbitrators, and it is 
 
 1 C. 7,415 (1894), P- 20. 
 
74 COMPENSATION IN 
 
 difficult to get detailed information of that. 
 In " The Temperance Problem and Social 
 Reform (1900)," at p. 351, it is stated 
 that 
 
 " Reduction has so far been effected in eleven dis- 
 tricts, resulting in the closing of 173 saloons at an average 
 cost by way of compensation of 800. The compensa- 
 tion clauses of the Act are, however, so obnoxious to the 
 Temperance party in Victoria that no organised effort is 
 now made to use the Act for the purposes of reduction." 
 
 The fund for compensation is raised out of 
 the trade itself. 
 
 (3) SCANDINAVIA. 
 
 In Norway, by the law of the ist May, 
 1880, relating to the redemption of brandy 
 licences, the council and representatives of 
 a town might redeem certain licences in 
 which the licence-holders were supposed to 
 have strong vested interests. These were 
 licences granted before the publication of 
 the law of 6th September, 1845. The com- 
 pensation to which the licensee is entitled 
 is to be fixed according to an estimate made 
 by four men. 1 The compensation is "fixed 
 
 1 Sect. 2. 
 
TEMPERANCE REFORM. 75 
 
 at a certain annual sum, corresponding as 
 a rule to the average income which the 
 licensee is understood to have derived from 
 his business done as licensee during the 
 three years previous." 1 It is difficult to say 
 what this section (as thus translated) pre- 
 cisely means ; but the true construction is 
 probably that a life annuity equal to average 
 profit was given to the holders of privileged 
 licences. This, at any rate, was done in 
 Christiania. 2 In Bergen no compensation 
 appears to have been given ; but the interval 
 between 3rd May, 1871 (the date of the Act 
 admitting a company to compete with the 
 existing licence-holders), and the ist January, 
 1877, when these licences ceased, may be 
 deemed a period of grace. 3 In Stockholm 
 there were a large number of permanent 
 licences mostly founded upon burgess rights; 
 most of them were bought up by private 
 agreement. 
 
 To speak broadly, in Scandinavia there 
 
 1 Sect. 3. 
 
 8 "The Gothenburg System of Liquor Traffic," by 
 E. R. L. Gould, p. 184. 
 8 Ibid., p. 167. 
 
76 COMPENSATION IN 
 
 appears to have been a considerable dis- 
 tinction between the permanent and non- 
 permanent licences, and the former were 
 compensated ; the latter not. Probably, in 
 the case of the latter, the expectation of 
 renewal could not be put very high. 
 
 (4) RUSSIA. 
 
 Recently in Russia a Government spirit 
 monopoly has been introduced. " The 
 Temperance Problem and Social Reform " 
 contains the following account : 
 
 " No compensation has been given to the dispos- 
 sessed keepers of spirit shops. An extract from a semi- 
 official publication may be quoted : ' In Russia, there can 
 be no question of giving compensation to evicted retailers 
 of spirits. The licence they were granted by which they 
 were permitted to carry on their deplorable business has 
 always been considered by the legislator, the administration, 
 the public, and by themselves as a permission liable to 
 be withdrawn without explanation or comment.' l It is, 
 however, stated that the question of granting assistance 
 in certain cases to the above-mentioned individuals is 
 under consideration. In the case, however, of Poland, 
 some of the Western Provinces, and the Baltic Provinces, 
 very ancient vested rights existed belonging to both 
 private persons and public bodies. Landed proprietors 
 
 1 Quoted in Foreign Office Report (Miscellaneous 
 Series), No. 465, 1898. 
 
TEMPERANCE REFORM. 77 
 
 and towns had the right of distilling, and keeping drink 
 shops, both of which proved a source of considerable 
 income. It was found impossible to extinguish these 
 rights, called " propination," without some compensation. 
 Accordingly, all those who have enjoyed the privileges 
 of " propination " have been called on to furnish returns 
 to the Government showing their annual income from 
 this source for the five years, 1890 1894 ; an average is 
 taken, and this sum, multiplied by twenty, has been or 
 will be paid to them as a final settlement of their claims 
 for the loss of their rights." l 
 
 PRECEDENTS (3) AGAINST COMPENSATION. 
 
 The cases in which there has been a 
 reduction of the number of licences under 
 Local Option or complete Prohibition with- 
 out compensation are, on paper at any rate, 
 extremely numerous. 
 
 (i) THE UNITED STATES OF AMERICA. 
 
 Among the United States of America we 
 have five 2 where there is Prohibition, and 
 in most States there is Local Option in 
 
 1 On the Russian spirit monopoly see an article by 
 A. Raffalovitch in the " Journal of the Statistical Society," 
 March, 1901. 
 
 3 Maine, Kansas, New Hampshire, Vermont, North 
 Dakota. 
 
78 COMPENSATION IN 
 
 one form or another. Compensation is not 
 given to those who lose their licences. 
 
 But it must not be assumed from this 
 that the question of compensation has not 
 been raised. In 1887, when it was proposed 
 to add prohibitory amendments to the State 
 Constitutions of Pennsylvania, Nebraska 
 and Illinois, compensation clauses were sug- 
 gested but withdrawn ; in the case of State 
 of Kansas, Ex rel.v. John Walruff, it was held 
 by Judge Brewer that prohibition, if unac- 
 companied by provisions for compensating 
 the owners of existing liquor property would 
 not be in accordance with " due process 
 of law." 1 The Supreme Court however in 
 several decisions 2 has exploded the doctrine 
 that prohibition without compensation is 
 illegal ; and several States have enacted that 
 liquor selling is a common nuisance. 
 
 The prohibition laws, so far as they 
 affect towns, are in general not enforced. 
 
 1 "No person shall be deprived of life or property 
 without due process of law, nor shall private property be 
 taken for public use without just compensation " (U. S, 
 Constitution, Art. 5, Amendment). 
 
 2 Muglcr v. Kansas, Kansas v. Ziebold, 123 U. S. 623. 
 
TEMPERANCE REFORM. 79 
 
 In fact, it is generally recognised that if 
 they were enforced, public sentiment would 
 insist upon their being repealed. For 
 this reason no precedent or analogy which 
 could possibly prove serviceable can be 
 drawn from the legislation in the United 
 States. American politics are not English 
 politics. To argue from the case of a 
 nation whose legislatures enact laws which 
 are not intended to be enforced to the case 
 of this country would be fruitless. In 
 addition to this, the practical certainty of 
 renewal of a justices' licence which exists 
 in England is absent from a country in 
 which the spoils system is an article of 
 political faith. In short, the Americans 
 are so fundamentally different from the 
 English in habits and temperament, that 
 it is misleading to look to their legislation 
 for the purpose of inferring the probable 
 form which legislation may take in this 
 country. 
 
 (2) CANADA. 
 
 The English self-governing Colonies have 
 made many experiments in Local Option and 
 
8o COMPENSATION IN 
 
 Prohibition. In Canada the results of the 
 working of the Canada Temperance Act, 
 1878,* up to the year 1891, may be found in 
 the Parliamentary Paper [C. 6,670] of 1892, 
 and later information in " The Temperance 
 Problem and Social Reform." Compensa- 
 tion is in general not given. In Quebec 
 " No compensation was made or proposed 
 to be made in those counties in which ' The 
 Canada Temperance Act' was adopted to 
 the parties, who by such vote were deprived 
 of their licences, but in no case was the said 
 Act brought into operation until the expira- 
 tion of the existing licence." 2 It is difficult 
 to know what this means, but it is clear that 
 no money compensation was given. 
 
 In Nova Scotia, New Brunswick, Manitoba 
 and Prince Edward Island, no compensation 
 was paid when the drink shops were closed 
 under The Canada Temperance Act. 3 In 
 British Columbia the Act appears never to 
 have been adopted. Canada is a country in 
 which surprisingly little alcohol is drunk, 
 
 1 41 Viet. c. 16, No. 106 in Revised Statutes of 1886. 
 
 2 C. 6,670, p. 4. 
 
 3 See Parliamentary Paper 421 of 1888. 
 
TEMPERANCE REFORM. 81 
 
 and in which the temperance sentiment is 
 strong. In the towns prohibitory laws are 
 not always strictly enforced. The oscilla- 
 tions in the voting power of the parties for 
 and against prohibition must make and have 
 made for a long time past the position of a 
 licence-holder extremely precarious, and the 
 degree of disappointment felt by a licence- 
 holder on the adoption of some form of 
 prohibition is tempered by the two facts 
 that he must have contemplated the strong 
 probability of a temperance majority, and 
 that in all probability the law will not be 
 enforced. 
 
 (3) NEW ZEALAND. 
 
 In New Zealand there is local option and 
 no compensation. As a result in one rural 
 district there is prohibition, and in a few the 
 number of licences have been reduced. 
 
 ( 4 ) AUSTRALIA. 
 
 The Australian Colonies (with the excep- 
 tion of Tasmania) usually have some form 
 of local option, which, however, very rarely 
 leads to prohibition, and rarely to any 
 
 T.R. G 
 
82 COMPENSATION IN 
 
 reduction in the number of licences. The 
 two colonies, Victoria and South Australia, 
 in which compensation is given, have already 
 been referred to ; in the others compensation 
 is not given. 
 
 SUMMARY. 
 
 To sum up the results of the section, it 
 may be said that in North America we have 
 strong temperance legislation (and senti- 
 ment) leading to uncertainty in the position 
 of the licence-holder. His expectation of 
 renewal is therefore small ; he is not com- 
 pensated, but as a set-off the law is usually 
 not strictly enforced. 
 
 In Australia a less strict temperance legis- 
 lation and sentiment leads to some uncer- 
 tainty in the position of the licence-holder. 
 His expectation of renewal is therefore a 
 reasonable one, and in some cases he is 
 compensated. 
 
 In England, on the other hand, the two 
 most recent general elections indicate the 
 weakness of the temperance sentiment ; no 
 proposed legislation in the nature of pro- 
 hibition and reduction without compensation 
 
TEMPERANCE REFORM. 83 
 
 appears to have any chance of success, and 
 the expectation of renewal of a licence is a 
 practical certainty. The conclusion is that 
 the analogy fails. 
 
 G 2 
 
COMPENSATION IN 
 
 SECTION V. 
 
 PROPOSALS FOR COMPENSATION IN 
 ENGLAND. 
 
 MANY attempts have been made to legis- 
 late in favour of the reduction of the number 
 of licensed houses, and in many of these 
 provisions are made for compensating or 
 giving some notice to the publicans. The 
 extreme temperance party in England are 
 opposed to compensation of every sort or 
 kind; but the more moderate advocates of 
 reform in our present licensing system 
 generally make provision for some sort of 
 compensation. A statement of a few of the 
 most important proposals illustrates the 
 variety of opinion which has existed as to 
 the amount of compensation due. This 
 diversity of opinion is not in all ways so 
 significant as it appears, because the length 
 of the time notice or the amount of compen- 
 sation is often treated as a detail. And it 
 must be borne in mind that all the proposals 
 
TEMPERANCE REFORM. 85 
 
 now described have either been rejected by 
 Parliament or have not yet reached the 
 stage of being introduced into Parliament ; 
 still, they cannot be passed by in silence. 
 
 (i) MR. BRUCE'S SCHEME, 1871. 
 
 One of the most important attempts to 
 reform the licensing laws is contained in 
 Mr. Bruce's Bill for regulating the sale of 
 Intoxicating Liquors (No. 104 of 1871) . The 
 Bill did not offer any money compensation to 
 persons dispossessed of their licences, but 
 made the existing licences continue for ten 
 years certain and then cease. The Bill is a 
 most elaborate scheme for licensing reform, 
 and to state the general effect of it would be 
 outside the scope of this inquiry. Clauses 9 
 and 41 are alone important in this context. 
 By clause 9 : 
 
 " Every publican's certificate of whatever description, 
 and whether a new certificate be granted as hereinafter 
 provided to holders of licences existing at the com- 
 mencement of this Act, shall be continued annually, as 
 hereinafter mentioned, until the general annual licensing 
 sessions which is held next after the expiration of ten 
 years from the commencement of this Act, and shall 
 absolutely determine at the end of such sessions." 
 
86 COMPENSATION IN 
 
 And by clause 41 : 
 
 " At the general annual licensing sessions which are held 
 next after the expiration of ten years after the commence- 
 ment of this Act, and of every subsequent period of ten 
 years, no publican's certificate shall be continued, . . ." 
 
 It is hard to find out what the probability of 
 renewal was in 1871 ; the scheme provides 
 for confiscation of a reversionary interest 
 ten years off with no money compensation. 
 
 It is a matter of great regret that Mr. 
 Bruce's scheme, or some modification of it, 
 was not accepted. Had it been the present 
 difficulty would not exist. The fact that it 
 was so unsympathetically received indicates 
 how difficult it is to prepare any scheme 
 which has any likelihood of success. 
 
 (2) MR. RITCHIE'S SCHEME, 1888. 
 
 In 1888, by the Local Government (Eng- 
 land and Wales) Bill, 1888 (No. 182), l it was 
 proposed to transfer to the county councils 
 the licensing powers in respect of intoxi- 
 cating liquors. By clause n the county 
 council were given absolute discretion to 
 " grant the renewal of the licence or refuse 
 1 Clause 10. 
 
TEMPERANCE REFORM. 87 
 
 the same, whether with a view to diminish 
 the number of licensed premises in the 
 division or with any other object whatever, 
 subject, nevertheless, to such confirmation 
 by the county council and to such compen- 
 sation as is provided in this Act." The 
 compensation is provided by clause 13 : 
 
 " (2) If the refusal of the renewal of a licence under this 
 section is confirmed by the county council and the 
 licence was applied for by way of renewal of a licence 
 granted before the passing of this Act the council shall 
 pay in respect of the injury caused by the loss of the 
 licence, compensation to such amount as in default of 
 agreement between the County Council and the person 
 claiming it, may be determined by an arbitrator. ... (3) In 
 determining the amount of compensation regard shall be 
 had in case of a licence to which the Beer Dealers Retail 
 Licences (Amendment) Act, I882, 1 applies to the dis- 
 cretion of the justices before the passing of this Act to 
 refuse the renewal of the licence, but subject to that 
 consideration, if applicable, the compensation shall be 
 assessed on the basis of the difference (if any) between 
 the value of the licensed premises immediately before the 
 passing of this Act, and the value which such premises 
 would have then borne if the licence had then determined." 
 
 By the Act of 1882, referred to : 
 
 " Notwithstanding anything in section 8 of the Wine 
 and Beerhouse Act, 1869, or in any other Act now in 
 
 1 45 & 46 Viet. c. 34. 
 
88 COMPENSATION IN 
 
 force, the licensing justices shall be at liberty, in their 
 free and unqualified discretion, either to refuse a certificate 
 for any licence for sale of beer by retail to be consumed 
 off the premises on any grounds appearing to them 
 sufficient, or to grant the same to any such person as they 
 in the execution of their statutory powers and in the 
 exercise of their discretion deem fit and proper." 1 
 
 (3) MR. GOSCHEN'S SCHEME, 1890. 
 
 In 1890, by the Local Taxation (Customs 
 and Excise) Duties Bill of that year (No. 244) 
 it was proposed to be enacted by clause I (ii.) 
 that the sum of 350,000 shall be applied 
 for such extinction of licences in England, as 
 hereinafter mentioned, and by clause 6 (i.) 
 
 " A county council may, either on the application of 
 any urban or rural sanitary authority of any district 
 wholly or partly within their county, or without such 
 application, enter into such agreement with persons 
 having any interest in premises within their county, in 
 respect of which an on-licence has been granted, as may 
 be requisite, with a view to such premises ceasing to be 
 used for the sale of intoxicating liquor, and may make 
 payments in pursuance of such agreement." 
 
 And by clause 9 it was provided that the 
 effect of the Act was not to be to increase the 
 
 i Sect. i. 
 
TEMPERANCE REFORM. 89 
 
 value of a licence. This scheme recognised 
 the right of the licence-holder to full com- 
 pensation, and was defeated partly by the 
 extreme temperance party, who are opposed 
 to all compensation, partly by the argument 
 (urged with great force by Mr. Gladstone 
 in his speech in the House of Commons of 
 1 5th May, iSgo) 1 that the effect of this 
 would be to increase the value of the 
 remaining licences. This argument is a 
 very powerful one, and materially contributed 
 to the rejection of the scheme. 
 
 (4) THE BISHOP OF CHESTER'S SCHEME, 1893. 
 
 The Authorised Companies (Liquor) Bill, 
 introduced into the House of Lords in 1893, 
 by the Lord Bishop of Chester, by clause 3 
 enacts that : 
 
 " (i) On the establishment of an authorised company 
 under this Act in any district a new Licence save as in 
 this Act provided, shall not be granted in that district 
 except to the company. 
 
 " (2) After the expiration of five years from the date of 
 the establishment of an authorised company in any district 
 any licence not held by the company shall not, save as in 
 
 1 344 Hansard. 
 
go COMPENSATION IN 
 
 this Act provided, be renewed, and shall expire at the close 
 of the period for which it was granted." 
 
 No compensation is given at the end of 
 the five-year period. 
 
 (5) SCOTTISH THREEFOLD OPTION. 
 
 In Scotland the Scottish Threefold 
 Option Alliance in their draft Bill for 
 Temperance Reform, after providing for a 
 Temperance Reform Fund derived from 
 licence rents and licence fees and the surplus 
 profits of any company sanctioned under 
 the Act, or of the licensing authority (if it 
 undertakes the local management of the 
 drink traffic itself), provides that the local 
 authority may adopt either of the following 
 methods of settling all claims that may arise 
 on the compulsory closing of licensed houses 
 without fault on the part of the owner or 
 licensee, namely : 
 
 (d) " The Licensing Authority may give a Time Notice 
 of three years, to date from the next Annual Licensing 
 Court subsequent to the Poll with certification that 
 provided the Licence is not cancelled by default before the 
 expiry of said period of years it may be renewed from 
 year to year if otherwise deemed meet, and convenient, 
 
TEMPERANCE REFORM. 91 
 
 but that at the close of the said period it shall lapse and 
 shall not be renewed, and that without any Claim, or 
 supposed Claim, for compensation to any party arising 
 thereon ; or 
 
 () " The Licensing Authority may pay a sum of 
 money out of the aforesaid Temperance Reform Fund, by 
 way of Settlement, which shall be accepted as meeting all 
 claims or supposed claims ; and which shall not exceed 
 as respects the Owner of the House a sum equivalent to 
 two years of the Licence Rent calculated as aforesaid ; and 
 as respects the holder of the licence, shall not exceed a 
 sum equivalent to two years of the clear Profit of the 
 business, as that shall be proved by him, and certified to 
 the satisfaction of the Licensing Authority, by an indepen- 
 dent Audit on the basis of the two years immediately 
 preceding the taking of the Poll, or such portion of the 
 two years as he may have carried on the business ; under 
 Proviso, that the Money Settlement shall only be agreed 
 to, as regards either party if the Licence is voluntarily 
 surrendered on these terms at some date not later than 
 twelvemonths after the declaration of the aforesaid Poll ; 
 it being hereby declared and enacted that no claim for 
 compensation in any form can arise with regard to the 
 refusal to renew any Licence which has been issued after 
 the Act came into force." 
 
 It is stated that the exact figures are 
 details ; but it is sufficiently clear that the 
 Alliance do not contemplate giving a long 
 notice or a substantial measure of compen- 
 sation. Further, the compensation is to be 
 derived from the trade. 
 
92 COMPENSATION IN 
 
 (6) LORD PEEL'S SCHEME. 
 
 Chapter II. of Part V. of the Minority 
 Report of the Royal Commission on Liquor 
 Licensing Laws contains a scheme for the 
 reduction of Licences and Compensation. 
 The compensation proposed is extremely 
 partial and limited, so much so that the 
 word " compensation " appears out of place, 
 and the euphemisms of " consideration " and 
 " solatium " which have already been men- 
 tioned would be more appropriate. In sub- 
 stance the recommendation is that after 
 seven years from the passing of the Act for 
 reduction and compensation, the licensee 
 should strictly be considered as entitled to 
 no compensation for the loss of his licence 
 and that meanwhile the maximum of com- 
 pensation paid should be seven times the 
 rateable value of the premises. 
 
 " We recommend the adoption for England and Wales 
 of a term of, say, seven years, as the basis of a time 
 notice and compensation arrangement, under which the 
 number of publicans' and beer 'on' licences should be 
 everywhere reduced to the statutory maximum. 
 
 It might be left to the discretion of the licensing 
 authority to make the reduction all at once, at the com- 
 mencement of the seven years' period, or to spread it over 
 
TEMPERANCE REFORM. 93 
 
 the period by withdrawing one-seventh of the surplus 
 licences each year. In the latter case, the compensation to 
 be paid for the licences withdrawn at the first licensing 
 meeting would be an amount not exceeding seven times 
 the rateable value of the premises. For those withdrawn 
 the second year the compensation would be six times the 
 rateable value. For those withdrawn the third year it 
 would be five times the rateable value, and so on." 1 
 
 The rateable value of a public-house is not 
 a correct measure of the value of the licence 
 and goodwill of the premises. 2 Why seven 
 years is chosen does not appear ; nor is it 
 clear what proportion of the total loss would 
 be compensated for in this case ; but it 
 would seem to be about one-third. Three 
 considerations are offered for supposing that 
 the loss which must inevitably fall upon 
 those interested in licensed houses will 
 be greatly mitigated, and they illustrate 
 the confusion of mind of Lord Peel and 
 
 1 P. 268. 
 
 2 On the rating of licensed premises, see Dodds v. The 
 Assessment Committee of South Shields (1895), 2 Q. B. 
 133; The Assessment Committee of the Bradford-on- 
 Avon Union v. White (1898), 2 Q. B. 630; Cartwright 
 v. Guardians of the Poor of Sculcoates Union (1900), 
 A. C. 150; and an article by W. Ryde in the Estates 
 Gazette, 2oth April, 1901. 
 
94 COMPENSATION IN 
 
 his colleagues. The first is that " though 
 the licence is taken away the property 
 will remain. Public-houses, especially in 
 town, very often occupy corner sites and 
 other very advantageous positions, which 
 will be of great value for other purposes. 
 This value is now included in the market 
 price of the licensed house." 1 Now the loss 
 of property is the loss of the licence and the 
 goodwill which is bound up with it. The 
 difference between the market value of the 
 premises unlicensed and the premises licensed 
 is primd facie at any rate the measure of the 
 total loss. The mere fact that the property 
 which is not taken is valuable only mitigates 
 the hardship in the sense that a rich person 
 can afford a loss more easily than a poor one ; 
 but in the case where the brewer has a first 
 mortgage and the distiller a second, these 
 mortgage debts will probably absorb the 
 whole value of the corner site, and the dis- 
 possessed licence-holder is to be consoled 
 by the fact that someone else is rich though 
 he may not be. The second considera- 
 tion is that "if, as often happens, the 
 1 P. 268. 
 
TEMPERANCE REFORM. 95 
 
 owner of the premises owns also adjoining 
 property, this will be appreciated in value 
 by the abolition of the licence ; " l which is a 
 consideration of no value if the owner of the 
 premises does not own the adjoining property. 
 The third, that " under the prevalence of the 
 tied-house system the loss will be spread and 
 brewing companies holding leases of or 
 mortgages upon the licensed houses will 
 partially recoup themselves in some places 
 for the loss of trade in others" is of greater 
 value ; but in so far as a diminution of the 
 number of public-houses leads to a diminu- 
 tion of the amount of beer drunk, it will not 
 have much weight. 
 
 In fact, then, this is a scheme of limited 
 or partial compensation in which the amount 
 of compensation is not connected with the 
 amount of loss. No reason is given why the 
 compensation should be arbitrary ; but the 
 reasons why the compensation should not 
 be full are thus stated at page 265 of the 
 report: 
 
 " Advocates of the licensed trade claim that in the case 
 of any licence being taken away because it is not required, 
 
 1 P. 269. 
 
9 6 COMPENSATION IN 
 
 compensation should be paid of the full price which the 
 licensed house would or has fetched in the market. 
 Such a claim cannot be for one moment entertained. 
 Even if there was a vested interest in the licence it would 
 not be fair to claim more than the market value of the 
 house less its value unlicensed. More than this, the 
 market value is often very far from being a reasonable 
 one. The great competition among brewers and their 
 eagerness to secure outlets for the sale of their beer, 
 which under a system of free competition, would probably 
 be driven out of the market by the products of a few of 
 the highest class brewers, has led them to invest large 
 sums in the purchase of licensed houses at absurdly 
 inflated prices. To claim full compensation on market 
 values is to ask the legislature to step in and save them 
 from the ill-consequences of their own rashness. But 
 the truth is the exact contrary to the assumption of a 
 vested interest in a public-house licence. It cannot be 
 too clearly laid down that the licence lasts for one year 
 and no longer. The decision of the House of Lords in 
 Sharp v. Wakefield, strengthened and confirmed by that 
 in the recent Dover case, Boulter v. Kent JJ ., leaves no 
 room for doubt upon the subject. There is by law no 
 property in a licence. It cannot be bequeathed. Even 
 when a licence-holder dies, or becomes bankrupt, it does 
 not vest in his legal representatives or trustee in bank- 
 ruptcy, but has to be formally transferred to them. It is 
 useless to argue that when a licensed house is compulsorily 
 acquired for public improvement under the Lands 
 Clauses Consolidation Acts full compensation on the 
 basis of market value is given. There are at least two 
 important differences in this case : First, the licensed 
 house is taken bodily and not the licence only. Secondly, 
 
TEMPERANCE REFORM. 97 
 
 the municipality or other public body acquiring the house 
 have no power by statute or common law to abolish the 
 licence, as has the licensing authority. Nor does the 
 Inland Revenue, in taking the market value as the basis 
 of calculation for the purpose of death duties, give any 
 kind of guarantee as to the correctness or permanence of 
 that valuation. While Mr. Candy himself admits that no 
 question of compensation can arise in case of a licence 
 withdrawn in ordinary legal course, it is argued that the 
 spirit of the law does not contemplate any wholesale 
 withdrawal of licences. But it is clearly the spirit of the 
 law that only such a number of licences shall be granted 
 as shall be sufficient for the requirements of the neigh- 
 bourhood. Looked at from another point of view, the 
 right to compensation appears equally unfounded. The 
 licensing justices at present, have a perfect legal right to 
 enormously diminish the value of a licensed house by 
 licensing the house next door. They could even grant 
 a licence to every person who applied. Mr. Down, a 
 brewer, declares that such free licensing would be a great 
 wrong to existing interests ; yet it has been actually tried 
 at Liverpool, in the Prescot division of Lancashire, and 
 elsewhere ; but there could be no possible claim for 
 compensation any more than when Parliament has chosen 
 to restrict the hours of opening. The only possible con- 
 clusion is that the claim to compensation rests on no legal 
 foundation whatever. But while from the point of view 
 of strict justice no claim to compensation can be urged, 
 there are other considerations which make it desirable 
 that some amount of compensation should be given." 
 
 The discussion of these arguments will be 
 reserved till a later stage. 
 
 T.R. H 
 
98 COMPENSATION IN 
 
 (7) ROYAL COMMISSION SCHEME. 
 
 The Report of the Majority of the Mem- 
 bers of the Royal Commission on Liquor 
 Licensing Laws provides for the payment of 
 compensation to those interested in the 
 suppressed licences, based on a declared 
 value. They suggest that 
 
 " Every owner and occupier of licensed premises should 
 be required jointly to declare the separate value of the 
 premises, and also of the licence and goodwill attached 
 to them. It may be objected that the owner who expected 
 his licence to be suppressed would value high and vice 
 versa, and this is a real danger, but might be provided 
 against by the following check : the licensing authority 
 might have the option of taking the declaratory value, 
 or, if they were dissatisfied with it, of resorting to the 
 machinery of the Lands Clauses Consolidation Act." 1 
 
 The Compensation Fund is to be derived 
 from taxation upon the basis of the declared 
 value. 2 
 
 This scheme, then, provides for full com- 
 pensation for the suppression of a licence 
 for the general good ; but provides that the 
 source of compensation should be the trade 
 and the consumers of liquor. 
 
 i P. 52. 2 p. 53 . 
 
TEMPERANCE REFORM. 99 
 
 SUMMARY. 
 
 Sir W. Harcourt's Local Option Bill in 
 1894 did not provide for any compensation, 
 but the result of the general election following 
 it appears to indicate that the electorate dis- 
 approved of it. These different proposals 
 show that in general it is thought advisable 
 to give some compensation, and sometimes 
 to give full compensation. But it cannot be 
 inferred that there is much probability of 
 getting a consensus of opinion in favour of 
 a particular limited amount of compensation. 
 It is difficult to determine what grounds there 
 can be for giving partial compensation 
 whenever the principle of compensation is 
 admitted. It may be that it is thought that 
 special and particular hardship is caused if 
 there is no compensation, and that then a 
 limited compensation is desirable as a 
 matter of grace and expediency. This is 
 the opinion of the minority of the Royal 
 Commission on the Liquor Licensing Laws, 
 and is justified on the ground that, " Until 
 recently the opinion was very generally held 
 that there was by law a vested interest in a 
 
 H 2 
 
ioo COMPENSATION IN 
 
 licence, and this belief was very much 
 encouraged by the usual practice of the 
 licensing justices in granting renewals 
 without question year after year." The 
 meaning (or want of meaning) of the term 
 " vested interest by law" has already, it is 
 hoped, been made clear. If the argument 
 in substance is that there is, or was till 
 recently, a great probability of renewal, the 
 market value test will determine that proba- 
 bility. The confusion which the phrase 
 " vested rights " causes is very persistent. 
 Whether any good ground can be suggested 
 for limiting the amount of compensation to 
 less than the market value, as was proposed 
 in so many of the schemes just mentioned, 
 will be considered in the 6th section. 
 
 OPINIONS. 
 
 The opinions of English statesmen are 
 normally in favour of compensation when- 
 ever private rights or property have to be 
 acquired or destroyed for the public good. 
 This is also the case in the particular 
 instance of property in a licence, except 
 in so far as by giving compensation the 
 
TEMPERANCE REFORM. 101 
 
 legislature would seem to admit that a 
 licence was a permanent and not an annual 
 privilege. At any rate, most of the attacks 
 on proposals to compensate publicans have 
 proceeded either on the ground that the 
 proposed compensation was too great or 
 that the proposed compensation would create 
 a legitimate demand for further compensa- 
 tion. The extreme advocates of temperance 
 reform are opposed to compensation. They 
 think all traffic in liquor unholy, and would 
 have no mercy on those interested in it ; but 
 such views do not seem to commend them- 
 selves to statesmen of the first rank, or to 
 more than a very small section of the 
 electorate. To quote an array of opinions 
 of statesmen would be tedious and useless. 
 But two opinions will be quoted, the one on 
 account of the eminence of the man who 
 uttered it, the other on account of the vigour 
 with which it is expressed. 
 
 MR. GLADSTONE. 
 
 Mr. Gladstone, speaking on Local Option 
 in the House of Commons, said : 
 
 " I should have been better pleased with the matter of 
 the resolution if my honourable friend (Sir W. Lawson) 
 
 j 
 
 
 
102 COMPENSATION IN 
 
 had included in it some reference to the principle of 
 equitable compensation. I want nothing more than that 
 a frank recognition of the principle that we are not to 
 deny to publicans as a class a perfectly equal treatment 
 because we think that this trade is, at so many points, in 
 contact with, and even productive of, great public mis- 
 chief. Considering the legislative title they have acquired 
 and the recognition of their position in the proceedings 
 of this House for a long series of years, they ought not 
 to be put at a disadvantage on account of the particular 
 impression we may entertain, in many cases but too 
 justly, in relation to the mischief connected with the 
 present licensing system and the consumption of strong 
 liquors." 1 
 
 MR. CHAMBERLAIN. 
 
 Mr. Chamberlain goes further, and even 
 appears to think that the fact that the 
 publicans are a nuisance would, judging 
 from precedent, give rise to a legitimate 
 claim on their part : 
 
 " Another objection to Sir Wilfrid Lawson's Bill is that 
 it makes no provision for compensating those whose 
 existing means of livelihood it proposes to destroy. It 
 is not likely that the general feeling of the country will 
 ever accept such a proposal as equitable and right. We 
 have compensated every conceivable interest in this 
 country whenever the well-being of the community has 
 necessitated interference. We compensated proctors for 
 abandoning their privilege of delay in legal procedure : 
 
 1 18 June, 1880, 253 Hansard, p. 363. 
 
TEMPERANCE REFORM. 103 
 
 we compensated the officers of the army for surrendering 
 the admittedly illegal system of purchase : we compen- 
 sated the Rev. Thomas Thurlow to the tune of nearly 
 ^"450,000 for the loss of his sinecures as Prothonotary 
 and Hamper Keeper : we compensated the Deputy 
 Chaff- Wax when we relieved him from his absurd and 
 useless functions : we are actually at this day compen- 
 sating the heirs of a man who died two hundred years 
 ago, for his losses in the service of the most profligate 
 monarch our country has ever known. What have the 
 publicans done that they are to be ruthlessly excluded 
 from all participation in the golden shower which 
 descends in this country on the heads of all who con- 
 trive to make themselves a nuisance to the community, 
 or to block the way to further progress ? Their case is 
 the more entitled to consideration because they may 
 plausibly urge that they have been tempted into the 
 trade by past legislation, while many of them can show 
 that they have bought with hard cash their share of that 
 monopoly, licensed by the State, of which it is now 
 proposed to deprive them." 1 
 
 PROFESSOR H. SIDGWICK. 
 One more expression of opinion will be 
 quoted, namely, that of Henry Sidgwick. 
 He writes : 
 
 " A case which seems to deserve special consideration 
 occurs where commercial advantages have been practi- 
 cally conferred on private traders by the action of 
 Government, without being legally secured to the 
 persons who enjoy the advantages. The value of the 
 
 1 Fortnightly Review, May, 1876. 
 
104 COMPENSATION IN 
 
 goodwill of public-houses in England under the present 
 system of licenses is largely derived from this source ; 
 and in discussing the compensation due to the owner of 
 any such public-house we have to distinguish between the 
 extra element of value given by the limitation of compe- 
 tition that results from the licensing system, and what 
 would have been the value of the business if no such 
 limitation had existed. Of course an exact separation 
 between the two elements is practically impossible ; but 
 theoretically they stand in quite different relations to a 
 claim for compensation. For the latter element I con- 
 sider that compensation is clearly due on the principle, 
 and with the qualification explained in the preceding 
 section, since the view that alcohol selling is to be 
 treated as altogether mischievous like slave selling 
 appears to me fanatical. But I can see no legitimacy 
 in a claim to be compensated for the additional element 
 of value due to the governmental limitation of compe- 
 tition, if no guarantee of the permanence of this limitation 
 was given by Government when the system was instituted." l 
 
 The student who wishes more instances 
 of the opinions of statesmen on this question 
 of compensation, and on the case of Slavery, 
 Army Purchase and the Irish Church Act, 
 will find many extracts in Mr. Cagney's 
 pamphlet 2 entitled " Compensation " ; the 
 
 1 "Politics," p. 190. The modern practice has been to 
 increase the limitation, but of course without any guarantee 
 that the limitation will be permanent. 
 
 2 This is a powerful statement of the publicans' case 
 for compensation, and is worthy of attention. 
 
TEMPERANCE REFORM. 105 
 
 discussions in the House of Commons on 
 Mr. Bruce's scheme, and the schemes of 
 1888 and 1890, mentioned above, which are 
 to be found in Hansard, are instructive, but 
 need not be quoted here. 
 
io6 COMPENSATION IN 
 
 SECTION VI. 
 
 THE preceding enquiry has cleared the 
 ground for the answer to our problem. If 
 the legislature decides to suppress a large 
 number of licences for the public good, 
 ought the licence-holders to be compen- 
 sated ? And if so, on what basis should the 
 compensation be determined ? The political 
 commonplace that vested interests should 
 be compensated is a mere application of the 
 non-disappointment principle, a principle 
 which holds that it is inequitable and in- 
 expedient to disturb fixed and reasonable 
 expectations, especially when large amounts 
 of capital have been invested in reliance on 
 such expectations. An examination of pre- 
 cedents chiefly leads to the conclusion that 
 no general rules other than this can be laid 
 down, it also indicates that the mere fact 
 that the rights or interests compensated are 
 mala in se or mala prohibita is not sufficient 
 to debar the claim to compensation, though 
 
TEMPERANCE REFORM. 107 
 
 it may possibly affect the amount. In the 
 special case an examination of the position 
 of licence-holders leads to the conclusion 
 (i) That the legislature and the Courts of 
 Law contemplate renewal as the normal 
 course of events ; (2) That this expectation of 
 renewal is at the present time a practical 
 certainty; (3) That the amount of capital 
 invested on the strength of this expectation 
 is very large and distributed widely through- 
 out the community. There is therefore a 
 very strong primd facie case for compensa- 
 tion. An examination of the precedents to 
 be derived from the United States of America 
 and the English Colonies at first sight leads 
 to the conclusion that amongst English- 
 speaking people compensation for the loss of 
 a licence is but rarely given, but a closer 
 inspection of the facts shows that the essen- 
 tial feature of the present case that of the 
 strong expectation of renewal recognised by 
 the Law Courts, the Government Offices, 
 the Estate Markets and the General Public 
 is usually absent elsewhere. 
 
 At any rate, without a more detailed 
 investigation of the facts, such as could 
 
io8 COMPENSATION IN 
 
 properly only be carried out by an expert on 
 the spot, it is not safe to draw conclusions from 
 the cases of North America and Australasia. 
 An examination of some of the more im- 
 portant and recent proposals for the reduction 
 of licences in England shows that either full 
 compensation is proposed, as by the Majority 
 Report of the Royal Commission on the 
 Liquor Licensing Laws, and Mr. Goschen's 
 scheme in 1890, or partial compensation, as by 
 the Minority Report and the Scottish threefold 
 option scheme, or a time notice is given, so as 
 to minimise to a greater or less extent, accord- 
 ing to the length of the time, the amount of 
 disappointment felt. It is generally thought 
 that suddenly to sweep away a large number 
 of licences without any compensation would 
 not only inflict great hardship upon indi- 
 viduals for no fault of their own, but also 
 cause a harmful disturbance in the economic 
 equilibrium and produce a feeling of uncer- 
 tainty and insecurity which would militate 
 against the interests of trade and commerce 
 generally. The opinions of responsible 
 statesmen are strongly in favour of com- 
 pensating vested interests ; few cases of vested 
 
TEMPERANCE REFORM. 109 
 
 interests are clearer than this one. The 
 onus then is on those who allege that there 
 is no ground for compensation. 
 
 DISCUSSION OF LORD PEEL'S ARGUMENTS. 
 
 To see how far they discharge this onus 
 the arguments contained in Lord Peel's 
 Report quoted above 1 will now be considered. 
 They represent the most recent and serious 
 statement of the temperance case against 
 compensation. The first point as to the 
 market value will be considered later ; it only 
 affects the amount of compensation. The 
 second point is that there is no vested interest 
 in a licence. This view is based upon a mis- 
 understanding of the meaning of the phrase 
 " vested interest." It would appear that the 
 framers of the Minority Report had not paid 
 sufficient attention to the meaning of the 
 phrase, and that the opinions so clearly 
 expressed by Austin and Bentham were not 
 present to their minds. It is greatly to be 
 regretted that gentlemen of such eminence 
 should have fallen into such a common error, 
 and one which they could have avoided 
 1 Ante, p. 95. 
 
no COMPENSATION IN 
 
 by careful consideration. It may be that 
 their report was prepared hastily. 1 The fact 
 that there is by law no property in a licence 
 does not settle the question. Expectations 
 and customary rights not recognised by law 
 are continually being compensated ; this 
 expectation is recognised by law. The other 
 points have been incidentally discussed 
 before. The conclusion that the claim to 
 compensation rests on no legal foundation 
 whatever does not afford an argument against 
 compensation. It is all part of the unfor- 
 tunate confusion of expression which the 
 draftsman of the Minority Report has so 
 often adopted. 
 
 An Act of Parliament can override and 
 abolish rights without giving compensation. 
 A claim to compensation as against the 
 State could not possibly have any legal 
 foundation. These arguments, then, do not 
 rebut the presumption in favour of compen- 
 sation. 
 
 An objection to the proposals of Lord Peel 
 
 1 For the circumstances which gave rise to this report, 
 see Sir Algernon West's article in the Nineteenth Century, 
 February, 1900. 
 
TEMPERANCE REFORM. in 
 
 may be noticed here. There is no equality 
 of treatment between the publicans who lose 
 their licences and receive partial compensa- 
 tion, and those who do not lose their licences. 
 It is unjust that some persons should be 
 favoured and others not. In so far as the 
 publican loses his licence for no fault of his 
 own, but to suit the temper of the times, it 
 is desirable that, so far as he is not com- 
 pensated, the loss should be distributed 
 amongst all publicans. The injustice of this 
 and some of the other schemes referred to 
 above is likely to prevent them from being 
 acceptable. Whether or not full compensa- 
 tion is just and equitable, it is clear that 
 equality of treatment is necessary. 
 
 WHY NOT GIVE FULL COMPENSATION? 
 
 Assuming that compensation is to be given, 
 why should it not be full compensation, that 
 is "something equivalent" in Dr. Johnson's 
 phrase ? The difference in the market value 
 between the premises as licensed or un- 
 licensed is the natural test of the value of the 
 licence which is to be taken away. It is 
 alleged that the market value of licensed 
 
ii2 COMPENSATION IN 
 
 premises is often very far from being a reason- 
 able one. But, after all, what is the test of 
 reasonableness of value except the market 
 value if there is fair competition and no 
 undue restriction, by combination or other- 
 wise, of supply and demand ? That the 
 value of a licence is often very high, some- 
 times 10,000 or 12,000, affords a very 
 good reason why a licence should not be 
 granted gratis to an individual ; but the fact 
 that a man has paid 10,000 for a licence 
 and could sell it to-morrow for that sum is 
 no ground for saying that he has paid too 
 high a price. If the recent prices paid are 
 too high, they will fall through the operation 
 of the higgling of the market. Except in 
 special circumstances there is no ground for 
 refusing to take market price as a true 
 measure of value in exchange. But the fact 
 that there has been such an increase in the 
 value of licences in the last few years has 
 led persons to suppose that the prices are 
 " absurdly inflated." Special prices may be ; 
 if so, they will fall ; but the general rise has 
 probably been due to causes which have 
 affected the property itself. Before the War 
 
TEMPERANCE REFORM. 113 
 
 the excessive accumulation of capital had led 
 to a fall in the rate of interest and profits, and 
 a corresponding rise in the value of securities. 
 There has been great competition amongst 
 brewers and others to get licensed houses. 
 There has been a fall in the rates of profit 
 on their capital invested. Brewery Com- 
 panies could borrow millions in debentures 
 at a low rate of interest, and hence could 
 afford to pay a higher price than before for 
 licensed houses in order to extend or protect 
 their trade. If a more intimate special 
 investigation should prove that the market 
 prices were specially inflated and would pro- 
 bably fall in the near future, it might be said 
 that the values were speculative and other 
 than real, but, until evidence of this is forth- 
 coming, it is not well to refuse to take market 
 value as the fair test of value in an ordinary 
 case. Incidentally the high value furnishes 
 an additional proof of how strong the 
 expectancy of renewal is. 
 
 Up to this point the argument has pointed 
 to the conclusion that if the legislature 
 decides suddenly to take away a large 
 number of licences the licence-holders should 
 
 T.R. i 
 
ii4 COMPENSATION IN 
 
 receive by way of compensation the market 
 value of these licences, but the effect of 
 this restriction of the number of licensed 
 premises upon the remaining licensed pre- 
 mises must not be forgotten. The high 
 values paid for licences show that the absence 
 of competition of adjoining houses may be 
 an important element in the value. In fact, 
 no one doubts that if, say, in a small town 
 there were twelve licensed premises and six 
 of these were suddenly suppressed the value 
 of the other six would rise greatly. 1 It 
 is fundamental in any scheme that this 
 
 1 The policy of the London County Council at the 
 present time (see the debate of 22nd January, 1901) is to 
 buy up licensed premises in connection with public im- 
 provement and then to abandon the licences. The result 
 is to improve, to some extent, the value of other licensed 
 premises. What the publicans have done that they 
 should deserve what is in effect a free gift from the 
 ratepayers of London, is not very clear. In 1890 the 
 temperance party expressed great indignation at a similar 
 " endowment of public-houses " (though Mr. Goschen's 
 scheme provided against the necessity of giving com- 
 pensation for any such increase of value if such a public- 
 house was bought out); in 1901 they appear to have 
 accepted this endowment without protest. It would be 
 interesting to discover the grounds for this change of 
 view. 
 
TEMPERANCE REFORM. 115 
 
 increased value should not be allowed to 
 go to these licence-holders, but should be 
 used in compensating the six persons who 
 have lost their licence. The view is some- 
 times held, 1 that in such a case the value of 
 the six left would be increased by the total 
 value of the six suppressed, in which case 
 full compensation could be paid without any 
 individual being burdened, and the cause 
 of temperance not very materially assisted. 
 The more moderate view is to suppose 
 that the six licensed houses left would be 
 increased in value, but not to the full extent 
 of the value of the licences and goodwill ol 
 the other houses. In this case we must 
 look elsewhere for our funds for compen- 
 sation, on the assumption that our com- 
 pensation should be full. 
 
 1 "The diminution in the number will not entail a 
 corresponding diminution in the drink traffic. The 
 business of the remaining houses will be increased, and 
 will be enlarged to the full extent of the apparent 
 numerical diminution of the houses" (Gladstone, i5th 
 May, 1890, 344 Hansard, 997). 
 
 I 2 
 
n6 COMPENSATION IN 
 
 A REASON FOR NOT GIVING FULL 
 COMPENSATION. 
 
 Before discussing the source of our funds, 
 it remains to be considered whether any 
 reasons exist why the compensation should 
 not be full. It will be remembered that the 
 market value test (of course the market 
 value before the Act limiting the licences 
 was passed) takes into account the uncer- 
 tainties of the licence-holders' position, and 
 therefore to make deductions from the com- 
 pensation on the ground of this uncertainty 
 would be to make double deduction for a 
 single cause. The question is whether there 
 are any circumstances, such as illegality or 
 immorality, which would make it proper to 
 reduce the compensation. This point is 
 fairly raised by H. Sidgwick in the quota- 
 tion above given from him (p. 19). Are 
 the rights of licence-holders " exercised in 
 the more moral but less profitable way?" 
 Public-houses should exist for the purpose 
 of getting drink, not for the purpose of 
 getting drunk. A publican is not entitled 
 to serve a drunken person with liquor ; he 
 may be convicted and his licence endangered 
 
TEMPERANCE REFORM. 117 
 
 if he does so. If all the cases where publicans 
 served drunken persons with liquor led to 
 convictions, this would affect the value of 
 the licences, but it is only too clear that this 
 is not the case. A drunken person is a 
 common object ; the conviction of a publican 
 for serving a drunken person is a rare event. 
 To the extent, then, that the value of a 
 licence is enhanced by the fact that the 
 profits are made from drunkenness, it is not 
 unreasonable to refuse to compensate. How 
 much this part of the profit is, it is hard to 
 say, and in the case of a well-conducted 
 licensed house, it is so small that it may be 
 neglected. But the very public-houses that 
 it is most desirable to suppress are just those 
 in which this part of the profit would be 
 large. To make a fair allowance for this 
 would be a most difficult task, but if possible 
 it should be made. 
 
 In any case where it was proved that a 
 drunken man had been served the licensee is 
 certainly not entitled to much consideration, 
 and it would be well that he should receive 
 no compensation. But there are many 
 cases where this cannot be proved, and yet 
 
n8 COMPENSATION IN 
 
 it is certain that persons at any rate on the 
 verge of drunkenness have been served. 
 
 THE SOURCE FROM WHICH COMPENSATION 
 SHOULD COME. 
 
 There remains the question : If the incre- 
 ment of value of the remaining licensed 
 premises is not sufficient to compensate the 
 persons whose licences have been suppressed 
 at the market value (reduced by so much of 
 it as is due to serving drink to those who 
 are drunk or nearly so), where is the 
 remainder of the money to come from ? It 
 is often said from the trade ; that is, by 
 the special taxation of those who make, 
 sell, or consume alcoholic liquor. But this 
 argues a very limited view of taxation for 
 Imperial purposes. It is true that it is the 
 fashion to allocate special portions of the 
 Imperial Revenue for special purposes, or to 
 say that certain grants are charged upon 
 special parts of the Revenue, but there is 
 no great sense in this. The fact is that a 
 certain amount of money has to be raised by 
 the Chancellor of the Exchequer in each year, 
 and that it does not make much difference 
 
OF THF 
 
 f UNIVERSITY J 
 
 TEMPERANCE REFORlVK^Cj, 
 
 whether we say that certain sums of money 
 which are to be used for a special purpose 
 come out of the death duties or the excise 
 duties or income tax. At present the liquor 
 trade has a grievance because the money 
 derived from certain excise and customs 
 duties which was to have gone under the 
 scheme of 1890 to buy up licences has been 
 used for technical education. It is a very 
 technical grievance. And similarly it will 
 not make much difference whether it is said 
 that this money is raised by taxation of the 
 trade by excise duties, licence duties, and 
 the like, or whether it is said to come out 
 of the general revenue of the country. Of 
 course, if a heavy tax is suddenly put upon 
 licences or licensed property this will at 
 first fall on the owner of this property, but 
 in the long run the consumer will bear most 
 of it. Probably the excise and customs 
 duties on alcohol cannot be very largely 
 increased, without a danger of there being 
 a falling off in the revenue derived from 
 them. 1 And, in general, it seems more 
 
 1 See Sir M. Hicks-Beach's Speech, Times, i9th April, 
 1901. 
 
120 COMPENSATION IN_ 
 
 reasonable if the community at large wish 
 to abolish a certain class of property that 
 the community at large should pay for doing 
 it. But to go into the intricacies of finance 
 is outside the scope of this enquiry. Another 
 source of compensation is time ; the present 
 value of a licence is high, its value in rever- 
 sion thirty years off, though perceptible, is 
 small. If the legislature enacted that at 
 the end of thirty years all licences then 
 existing should vest in local bodies, or 
 philanthropic public companies, or the State, 
 the amount of present injury to licence- 
 holders would be comparatively small, and 
 the gain to the State thirty years hence very 
 great. Hence we see that most of the 
 schemes of compensation provide for con- 
 fiscation of a reversionary interest of larger 
 or smaller value. To go further into detail 
 is beyond the scope of this Essay, but it is 
 important to bear this point (viz. : the 
 low value of a reversionary compared to the 
 high value of a present interest) in mind, as 
 it often enables substantial justice to be done 
 without taxing the Exchequer or preventing 
 any other and more rapid reforms. 
 
TEMPERANCE REFORM. 121 
 
 One point, however, should be made clear. 
 There is all the difference between enacting 
 that a man should have thirty years pur- 
 chase of the annual value of his interest, 
 and declaring that his interest shall last for 
 thirty years and no more. Thus, on a 
 4 per cent, basis, an annuity of 100 for 
 thirty years is worth 1,798, for forty years 
 2,058, and for fifty years 2,234. At 
 4 per cent., a capital sum of 2,500 gives 
 an annual income of 100. Thus (if 
 4 per cent, is a fair basis for argument), if a 
 man was deprived of a permanent income of 
 100, 2,500 would be full compensation. 
 To declare that this income should cease 
 after thirty years would be to deprive him of 
 702, or more than one-quarter of the value 
 of his property. And a proposal that after 
 fifty years a man should be deprived of this 
 income would be to deprive him of one-tenth 
 of his property. It will be seen, therefore, 
 that even allowing for the uncertainty of a 
 licence-holder's position and of the con- 
 tinuance of a profitable business, that a 
 proposal that thirty years hence all licences 
 should vest in public bodies without compen- 
 
122 COMPENSATION IN 
 
 sation is one that involves a very consider- 
 able amount of confiscation, and that it is 
 necessary to extend this period to forty or 
 fifty years, if it is not wished to do serious 
 damage to the persons at present interested 
 in licensed property. 
 
 WHO SHOULD RECEIVE THE COMPENSA- 
 TION ? 
 
 When compensation is given for the loss 
 of a licence, who should receive the com- 
 pensation money ? Much has been written 
 on this topic, because in general there are 
 many persons who are interested in the 
 licence, but no valid ground can be given for 
 refusing to apportion the money according 
 to the legal rights of these different persons 
 inter se. The case is the same as if the 
 licence was taken under the Lands Clauses 
 Consolidation Acts, except that the amount oi 
 compensation will be different. There is no 
 reason why mortgagees of licensed premises 
 should be treated differently from other mort- 
 gagees, and in any scheme proper provision 
 should be made for them or they should be 
 left to their rights under their mortgage deed. 
 
TEMPERANCE REFORM. 123 
 
 CONCLUSION. 
 
 A tew minor questions remain. Are we 
 to compensate merely for the loss of the 
 licence, or also for the other disturbance 
 caused ? The brewer's trade is diminished, 
 the publican's and barman's occupation 
 gone. How far the damage thus caused is 
 too small or too remote to be considered 
 depends so much upon the particular scheme 
 that the question in an abstract form does 
 not admit of a plain answer. When hours 
 of opening are shortened, or when Sunday 
 closing is enforced, it is not usual to propose 
 compensation. There are reasons for this ; 
 the damage is in general small, and hard to 
 estimate, and in some cases very remote. 
 The business of a bar-tender or publican is 
 not highly skilled, and he cannot be said 
 to have invested any personal capital in 
 acquiring the art or mystery of his trade, as 
 might be said is the case of a clergyman, 
 who, after an expensive education, was 
 deprived of his living. 
 
 The only reasonable plan is to sketch or 
 draft a Bill for the particular reform pro- 
 posed. Difficulties in detail will then appear 
 
i2 4 COMPENSATION IN 
 
 and must be considered with the utmost 
 care, and until this is done an abstract dis- 
 cussion of points of detail is beside the mark. 
 General principles, with some of the more 
 important applications, are the only topics 
 that can usefully be discussed in the abstract. 
 The concrete problem of producing a satis- 
 factory detailed scheme is both more difficult 
 and more important. 
 
 Before, however, any scheme has a reason- 
 able chance of success it is imperative that 
 the main features should be based upon 
 equitable and reasonable principles, and such 
 as would commend themselves to the judg- 
 ment of ordinary men. The temperance 
 question is a serious one, and has become 
 an important factor in politics. Past 
 experience shows that the question of com- 
 pensation has often proved the rock upon 
 which a scheme of temperance reform has 
 been wrecked. So long as no agreement is 
 arrived at, there is little hope of any com- 
 prehensive measure of reform being sanc- 
 tioned by the legislature. The object of this 
 Essay has been to investigate the question 
 soberly and without prejudice. The author 
 
TEMPERANCE REFORM. 125 
 
 cannot hope that his conclusions will be 
 accepted by all his readers, but he trusts 
 that his facts and arguments may prove of 
 some assistance to those who are interested 
 in Temperance Reform. 
 
APPENDIX. 
 
 ACTS under which compensation has been given to 
 persons for their loss of office. On the question of com- 
 pensation to officers a series of articles in The Justice of 
 the Peace for i6th and 3Oth March and I3th April, 1901, 
 should be consulted. 
 
 Date. 
 
 Title and section of Act. 
 
 Persons compensated. 
 
 1825. 
 
 1830. 
 
 1831. 
 1831. 
 
 I835- 
 
 An Act for preventing frivolous 
 writs of error (6 Geo. IV. 
 c. 96, s. 2). 
 
 An Act for Regulating the Receipt 
 and future Appropriation of 
 Fees and Endowments receiv- 
 able by Officers of the Superior 
 Courts of Common Law (n 
 Geo. IV. & i Will. IV. c. 58, 
 s. 16). 
 
 An Act to explain and amend the 
 same (i & 2 Will. IV. c. 35, 
 s. 4 ). 
 
 An Act to repeal so much of an 
 Act for the Management of 
 Customs as allows certain fees 
 to be taken by the Officers of 
 the Customs (i & 2 Will. IV. 
 c. 40). 
 
 The Municipal Corporations Act, 
 1835 (5 & 6 Will. IV. c. 76, 
 s. 66). 
 
 Cursitors and other 
 officers of the 
 Courts of Law and 
 Equity. 
 
 Persons holding any 
 office in or belong- 
 ing to any of the 
 Superior Courts of 
 Common Law. 
 
 Ditto. 
 
 Officers of the Cus- 
 toms. 1 
 
 Officers of Boroughs 
 or Counties. 
 
 See Tunstall v. Boothby, 9 L. J. Ch. 294. 
 
128 
 
 APPENDIX. 
 
 Date. 
 
 Title and section of Act. 
 
 Persons compensated. 
 
 1842. 
 
 An Act to confirm the Incorpora- 
 tion of certain Boroughs, and 
 
 Officers of Boroughs 
 or Counties. 
 
 
 to indemnify such persons as 
 
 
 
 have sustained loss thereby 
 
 
 
 (5 & 6Vict. c. in). 
 
 
 1844. 
 
 An Act to amend the law respect- 
 
 County Coroners. 
 
 
 ing the office of County Coroner 
 
 
 
 (7 & 8 Viet. c. 92, s. 6). 
 
 
 1867. 
 
 Metropolitan Poor Act, 1867 
 
 Officers acting under 
 
 
 (30 & 31 Viet. c. 6, s. 76). 
 
 Local Acts for the 
 
 
 
 Relief of the Poor. 
 
 1869. 
 
 Metropolitan Poor Amendment 
 
 Ditto. 
 
 
 Act (32 & 33 Viet. c. 63). 
 
 
 1867. 
 
 Poor Law Amendment Act, 1867 
 
 Officers of dissolved 
 
 
 (30 & 31 Viet. c. 106, s. 20). 
 
 Unions. 
 
 1868. 
 
 Poor Law Amendment Act, 1868 
 
 Ditto. 
 
 
 (31 & 32 Viet. c. 122, s. 15). 
 
 
 1870. 
 
 Dissolved Boards of Management 
 
 Ditto. 
 
 
 and Guardians Act, 1870 (33 
 
 
 
 & 34 Viet. c. 2). 
 
 
 1875. 
 
 Public Health Act, 1875 (3 8 & 39 
 
 Officers of bodies of 
 
 
 Viet. c. 55, s. 309). 
 
 persons entrusted 
 
 
 
 with the execution 
 
 
 
 of Acts relating to 
 the Public Health. 
 
 1888. 
 
 Local Government Act, 1888 
 
 Officers of authori- 
 
 
 (51 & 52 Viet. c. 41, s. 120). 
 
 ties whose powers 
 
 
 
 were transferred to 
 
 
 
 County Councils. 
 
 1804. 
 
 Local Government Act, 1894 
 
 Officers of authori- 
 
 17" 
 
 (56 & 57 Viet. c. 73, s. 81). 
 
 ties whose powers 
 were transferred to 
 
 
 
 Parish and District 
 
 
 
 Councils. 
 
 1899. 
 
 London Government Act, 1899 
 
 Assistant overseers, 
 
 
 (62 & 63 Viet. c. 14, s. 30). 
 
 rate collectors and 
 
 
 
 other officers. 
 
( I2 9 ) . 
 
 NOTE ON THE BIBLIOGRAPHY OF THE 
 SUBJECT. 
 
 The literature of Temperance Reform is very large. 
 The first five editions of Rowntree and Sherwell's 
 "The Temperance Problem and Social Reform" con- 
 tained Bibliographies of " Prohibition " and " Scandinavian 
 Methods," which include some works of a more general 
 character. A general Bibliography by Mr. Sherwell is to 
 be found at the British Library of Political Science. 
 
 T.R. 
 
INDEX. 
 
 ACT of Parliament. Set STA- 
 TUTES 
 
 Appendix, 127 
 Austin, on vested rights, n 
 Australia, local option in, 81 
 
 BEER-HOUSES, 
 
 ante- 1 869, four grounds on 
 which justices can refuse 
 to renew licence, 46 
 number of, 62, 65 
 Bentham, 
 
 on non-disappointment prin- 
 ciple, 14 
 
 on vested rights, 14, 15 
 Bergen.no compensation in, 75 
 Bibliography, note on, 129 
 Bills, 
 Intoxicating Liquors, 1871 
 
 (No. 104), 85 
 
 Local Government (England 
 and Wales), 1888 (No. 
 182), 86 
 
 Local Taxation (Customs 
 and Excise) Duties, 1890 
 (No. 244), 88 
 Authorised Companies 
 
 (Liquor) Bill, 1893, 89 
 Scottish Three-fold Option, 
 
 90 
 
 Bribe, meaning of, 3, 28 
 British Columbia, 80 
 Bruce, Mr., his proposals, 85 
 Buxton, Mr. E. N., 50, 57 
 
 CAGNEY.Mr., on compensation, 
 104 
 
 Canada, 
 prohibition and local option 
 
 in, 79 
 
 no compensation in, 80 
 Capital invested in liquor 
 
 trades, 63 
 Cases, 
 
 Assessment Committee of 
 Bradford-on-Avon Union 
 v. White (1898), 2 Q. B. 
 630, 93 
 
 Belton v. The London County 
 Council, 68 L. T. N. S. 
 
 4 IJ . 5 2 
 
 Cartwright v. Guardians of 
 the Poor of Sculcoates 
 Union, (1900) A. C. 150, 
 
 93 
 
 Cocks v. Lady Henry Somer- 
 set, ii Times L. R. (1895) 
 
 567. 53 
 
 Dodds v. Assessment Com- 
 mittee of South Shields, 
 (1895) 2 Q. B. 133, 93 
 
 Kansas v. Ziebold, 123 U. S. 
 623, 78 
 
 Legg v. Stoke Newington 
 Vestry, 59 J. P. 696, 40 
 
 Mugler v. Kansas, 123 U. S. 
 623, 78 
 
 Re Penny, 7 El. & Bl. 669, 
 
 2 4 
 R.V.London County Justices, 
 
 62 L. T. N. S. 418, 24 
 
 Q.B. D. 341.50 
 R. v. Norwich, 8 A. & E. 
 
 633. 4 
 
 K 2 
 
I 3 2 
 
 INDEX. 
 
 Cases continued. 
 
 Ex parte Royle, Re Britnor, 
 46 L.J. N. S. Bankruptcy, 
 
 85- 5i 
 Tunstall v. Boothby, 9 L. J. 
 
 Ch. 294, 127 
 Chamberlain, Mr. J.. opinion 
 
 on compensation, 102 
 Chester, Bishop of, Authorised 
 
 Companies Bill, 89 
 Christiania, compensation in, 
 
 Church, 
 Irish, disestablishment of, 
 
 36 . 
 
 pecuniary interest in liquor 
 
 selling, 63 
 
 Commission, Royal, on Liquor 
 Licensing Laws, 
 
 Majority Report of, 47, 65, 98 
 
 Minority Report of, 92, 94, 
 95, 99, 109 
 
 Mr. E. N. Buxton's evidence 
 before. 50 
 
 Sir H. B. Poland's evidence 
 
 before, 10, 50, 62 
 Compensation, 
 
 army purchase, 30 
 
 Bruce's scheme in 1871, 85 
 
 Cagney on, 104 
 
 Chamberlain on, 102 
 
 Chester, Bishop of, scheme, 
 89 
 
 definition of, 2 
 
 different kinds of, 2 
 
 distillers, to, in Van Diemen's 
 Land, 33 
 
 Dodson, to Sir J., 29 
 
 Franklin, Sir J., on, 33 
 
 Gladstone on, 101 
 
 Goschen's scheme in 1890, 
 88 
 
 Irish Church, on dis- 
 establishment of, 36 
 
 Lands Clauses Consolida- 
 tion Acts, under, 23, 53 
 
 Lottery Commissioners, to, 36 
 
 lottery licences, none to 
 holders of, 35 
 
 Compensation continued. 
 Norway, in, 74 
 officers of public bodies, to, 
 
 38,39 
 
 Peel, Lord, proposals, 92 
 precedents against, 77 
 precedents for, 22, 69 
 proctors, to, 29 
 proposals for, 84 
 Report of Royal Commis- 
 sion, 98 
 Ritchie's scheme in 1888, 
 
 86 
 
 Russia, in. 76 
 Scottish three-fold option, 
 
 scheme of, 90 
 Sidgwick, Professor H., on, 
 
 18, 103 
 
 slave owners, to, 28 
 slave traders, none to, 26 
 sources of, 118 
 South Australia, in, 70 
 telegraph employes, to, 37 
 Thames ferrymen, to, 41 
 time an element in, 120 
 Victoria, in, 73 
 Consideration, meaning of, 2 
 
 DODSON", Sir J., compensation 
 to, 29 
 
 EXPECTANCY, Benthamon, 14 
 Expectation, a ground for 
 compensation, 21, 106 
 
 FRANKLIN, Sir J., minute of 
 2nd September, 1839, 33 
 
 GLADSTONE, Mr., 
 
 on compensation of vested 
 
 rights, 37 
 
 speech of iSthJune, 1880, 101 
 speech of i5th May, 1890, 
 
 89, 115, n. 
 
 Goschen, Mr., his proposal in 
 1890, 88 
 
 HARCOURT, SirW., his Local 
 Option Bill, 99 
 
INDEX. 
 
 '33 
 
 INSURANCE, rates of, against 
 
 loss of licence, 53 
 Irish Church, compensation to 
 
 office holders in, 36, 37 
 
 JOHNSON, Dr., definition of 
 
 compensation, 2 
 Justice, 
 
 Bentham on, 14 
 
 meaning of, 68 
 " Justice of the Peace," article 
 
 in, 127 
 Justices, licensing, 
 
 their administration, 66 
 
 their functions, 46, 47 
 
 LANDS Clauses Consolidation 
 
 Acts, 23 
 
 Law, foreign. See STATUTES 
 Legal position of licensees, 45 
 Lewis, Sir G. C., on vested 
 
 rights, n, 12 
 
 Licences for sale of intoxi- 
 cating liquors, 
 
 grant of, 46, 47 
 
 insurance of, 53 
 
 number of, 62 
 
 probability of renewal of, 51 
 
 provisional, 48 
 
 renewal of, 46, 47 
 
 in case of ante- 1869 beer- 
 houses, 46 
 
 statistics of, 57 
 
 value of, 63, 112 
 London County Council, 
 
 policy of, 114, n. 
 Lotteries, abolition of in 1823, 
 
 35 
 
 compensation to commis- 
 sioners, 36 
 
 MANITOBA, no compensation 
 
 in, 80 
 
 Market value of licence, 58, 116 
 Memorandum of Inland 
 
 Revenue Department, 58 
 Monopoly, meaning of, 60 
 Mortgagees of licensed pre- 
 mises, 59, 61, 122 
 
 NEW BRUNSWICK, no compen- 
 sation in, 80 
 
 New Zealand, no compensa- 
 tion in, 81 
 
 Norway, compensation in, 74 
 
 Nova Scotia, no compensation 
 in, 80 
 
 OFFICERS of public bodies, 
 compensation to, 39 
 list of Acts referring to, 127 
 
 PEEL, Viscount, 
 
 his arguments, 109 
 
 his annuity, 15 
 
 his proposals, 92 
 Poland, Sir H. B., quoted, 10 
 Prince Edward Island, no 
 
 compensation in, 80 
 Proctors, compensation to, 29 
 Prohibition, 
 
 in Canada, 80 
 
 in U.S.A., 77 
 Purchase in the army, 
 
 abolition of, 31 
 
 compensation for, 31 
 
 QUEBEC, no compensation in, 
 80 
 
 RENEWAL of licence, 
 probability of, 51, 107 
 procedure on, 47 
 
 Reversionary interest, present 
 value of, 52, 120, 121 
 
 Rowntree and Sherwell, 63, n., 
 74, 76, 80, 129 
 
 Royal Commission. Set COM- 
 MISSION 
 
 Ritchie, Mr., his proposals in 
 1888, 86 
 
 Russia, compensation in, 76 
 
 SCANDINAVIA, compensation in, 
 
 74 
 
 Scottish three-fold option pro- 
 posals, 90 
 
 Selborne, Earl, description of 
 a licensee's interest, 51 
 
134 
 
 INDEX. 
 
 Sherwell. See Rowntree 
 Sidgwick, Professor H., 
 
 on compensation to liquor 
 sellers, 103 
 
 on governmental interference 
 
 and compensation, 17 
 Slave owners, compensation I 
 
 to, 27, 28 
 
 Slave trade abolished, 25 
 Slavery, West Indian, abol- j 
 
 ished, 27 
 
 Solatium, meaning of, 3, 4 
 South Australia, compensation 
 
 in, 70, 71 
 Statistics, of licences refused, 
 
 Statutes, colonial and foreign, 
 The Distillation Prohibition 
 
 Act, 1838 (Van Diemen's 
 
 Land), 33 
 41 Viet. c. 16 (No. 106 in 
 
 Revised Statutes of 1886), 
 
 Canada, Temperance Act. 
 
 1879, 80 
 54 Viet., No. ii 1 1, Licensing 
 
 Act, 1890 (Victoria), 73 
 54 & 55 Viet., No. 540, 
 
 Licensed Victuallers 
 
 Amendment Act, 1891 
 
 (South Australia), 70 
 of 6th September, 1845 
 
 (Norway), 74 
 
 of ist May, 1880 (Norway), 74 
 Statutes, English, 
 
 10 & ii Will. III. c. 17 
 
 (or 10 Will. III. c. 23) 
 
 (Lotteries), 34 
 22 Geo. III. c. 47 (Lottery 
 
 Office Keepers), 34 
 27 Geo. III. c. i (Unlawful 
 
 Lotteries), 35 
 49 Geo. III. c. 126 (Army), 
 
 30 
 4 Geo. IV. c. 60 (Lotteries), 
 
 36 
 
 9 Geo. IV. c. 61 (The Ale- 
 house Act, 1828), 51 
 3 & 4 Will. IV. c. 73 
 
 (Abolition of Slavery), 28 
 
 S tatutes continued. 
 8 & 9 Viet. c. 1 8 (The Lands 
 Clauses Consolidation Act, 
 
 1845). 24 
 
 20 & 21 Viet. c. 77 (The 
 Probate Court Act, 1857), 
 
 22 Viet. c. 26 (The Su- 
 perannuation Act, 1859), 
 40 
 
 31 & 32 Viet. c. 1 10 (The 
 Telegraph Act, 1868), 37 
 
 32 & 33 Viet. c. 27 (The Wine 
 and Beerhouse Act, 1869), 
 46 
 
 32 & 33 Viet. c. 42 (The Irish 
 Church Act, 1869), 3^ 
 
 35 & 36 Viet. c. 94 (The 
 Licensing Act, 1872), 48 
 
 37 & 38 Viet. c. 49 (The 
 Licensing Act, 1874), 48 
 
 45 & 46 Viet. c. 34 (The Beer 
 Dealers Retail Licences 
 Amendment Act, 1882), 
 
 87 
 
 47 & 48 Viet. c. 57 (The Super- 
 annuation Act, 1884), 40 
 51 & 52 Viet. c. 41 (The 
 
 Local Government Act, 
 
 1888), 39 
 56 & 57 Viet. c. 55 (The 
 
 Metropolis Management 
 
 Act, 1893), 40 
 56 & 57 Viet. c. 73 (The 
 
 Local Government Act, 
 
 1894), 40 
 
 60 & 61 Viet. c. ccxxiv. (The 
 Thames Tunnel Green- 
 wich to Millwall Act, 
 1897), 4i 
 
 61 & 62 Viet. c. 48 (The 
 Benefices Act, 1898), 43 
 
 62 & 63 Viet. c. 14 (The 
 London Government Act, 
 1899), 41 
 
 and see Appendix (Com- 
 pensation to Officers), 
 p. 127, and note on p. 34 
 (Lotteries) 
 
INDEX. 
 
 135 
 
 Stockholm, permanent licences 
 in. 75 
 
 TELEGRAPH Companies, com- 
 pensation to officers in, 37 
 
 Thames ferrymen, compensa- 
 tion to, 41 
 
 Time an element in com- 
 pensation, 120 
 
 UNITED States of America, 
 constitution of, 78 
 prohibition in, 77 
 
 VAN Diemen's Land, 
 compensation to distillers in, 
 
 resolutions of legislative 
 
 council, 33 
 Vested rights or interests, 
 
 Austin on, 17 
 
 Bentham on, 14, 15 
 
 Chamberlain on, 102 
 
 Gladstone on, 37 
 
 meaning of, 9 
 
 Poland on, 10 
 
 Sidgwick on, 17 
 Victoria, compensation in, 73 
 
 THE END. 
 
 BRADBURY, AGNEW, & CO. LD., PRINTERS, LONDON AND TONBRIDGE. 
 
STUDIES IN ECONOMICS AND 
 POLITICAL SCIENCE. 
 
 A Series of Monographs by writers connected with the London 
 School of Economics and Political Science. 
 
 Edited by Prof. W. A. S. HEWINS, M.A., Director. 
 Cloth, Crown 8vo (-J inches x 5 inches) unless otherwise stated. 
 
 PUBLISHED BY 
 
 P. S. KING & SON, 
 
 2 & 4, GREAT SMITH STREET, WESTMINSTER. 
 
 1. The History of Local Rates in England. By EDWIN CANNAN, 
 
 M.A., Balliol College, Oxford Lecturer at the School. 
 2s. 6d. net. 
 
 Law Journal. "So interesting and so instructive. . . . Every lawyer 
 and political student ought to read them." 
 
 2. Select Documents Illustrating the History of Trade Unionism. 
 
 1. The Tailoring Trade. By F. W. GALTON. With Preface 
 by SIDNEY WEBB, LL.B. 55. net. 
 
 Times. " What Professor Brentano failed to find when he collected the 
 materials for his memorable essay ' On the History and Development of Guild, 
 and the Origin of Trade Unions,' Mr. Gallon has discovered in great abundance, 
 setting forth in his introduction the historical sequence and the economic signifi- 
 cance of the documents themselves and the movement they illustrate with no 
 little skill and insight." 
 
 3. German Social Democracy. By HON. BERTRAND RUSSELL, 
 
 B.A., Fellow of Trinity College, Cambridge. With an 
 Appendix on Social Democracy and the Woman Question in 
 Germany by ALYS RUSSELL, B.A. 35. 6d. net. 
 
 Times. "A history of the morement during the last thirty years and of the 
 abortive efforts to retard its growth leads up to the consideration of its present 
 position, which is approached in a fair-minded spirit and discussed with insight 
 and judgment." 
 
 Scotsman." . . . Mr. Russell has studied his subject with great 
 thoroughness, and his book gives a most interesting picture of the present 
 political condition of Germany and the causes which have led to it. It is a book 
 which should prove of the utmost value to students of current foreign politics." 
 
 P. S. KING & SON, ORCHARD HOUSE, WESTMINSTER. 
 
 [Continued over. 
 
STUDIES IN ECONOMICS AND POLITICAL 
 SCIENCE . Continued. 
 
 4. The Referendum in Switzerland. By M. SIMON DEPLOIGE, 
 
 University of Louvain. With a Letter on the Referendum 
 in Belgium by M. J. VAN DEN HEUVEL, Professor of Inter- 
 national Law in the University of Louvain. Translated by 
 C. P. TREVELYAN, M.A., Trinity College, Cambridge, and 
 edited with Notes, Introduction, Bibliography, and Appen- 
 dices, by LILIAN TOMN, Girton College, Cambridge, Research 
 Student at the School. 75. 6d. net. 
 
 E. P. Oberholtzer in the Annals of the American Academy. ". . . We 
 will content ourselves with advising those who wish to understand this subject to 
 apply themselves to the study of this instructive treatise." 
 
 5. The Economic Policy of Colbert. By A. J. SARGENT, B.A., 
 
 Brazenose College, Oxford ; Hulme Exhibitioner, Oxford ; 
 and Whateley Prizeman, Trinity College, Dublin ; Lecturer 
 at the School. 25. 6d. net. 
 
 Saturday Review. " Mr. Sargent's monograph on Colbert is a very thorough 
 bit of work. We have rarely met with a book that concealed with so careless a 
 grace the elaborate researches it has entailed." 
 
 6. The Receipt Roll of the Exchequer for Michaelmas Term of 
 
 the Thirty-first Year of Henry the Second (1185). A unique 
 fragment transcribed and edited by the Class in Palaeography 
 and Diplomatic under the supervision of the Lecturer, 
 HUBERT HALL. F.S.A., H.M. Public Record Office. With 
 Thirty-one Facsimile Plates in Collotype, and Parallel Readings 
 from the contemporary Pipe Roll. Large Folio 2 2$. net. 
 
 7. Elements of Statistics. By ARTHUR L. BOWLEY, M.A., F.S.S., 
 
 Lecturer in Statistics at the London School of Economics ; 
 Guy Silver Medallist of the Royal Statistical Society. 342 
 pages, demy 8vo, cloth. Numerous Diagrams. IDS. 6d. net. 
 
 Glasgmv Herald. " We have found this volume most lucid, even fascinating. 
 It will at once take its place as the indispensable text-book for all students of 
 statistical investigation." 
 
 Insurance Record. "Vie venture to predict that Mr. Bowley's admirable 
 work will lead to a quickening of dry bones in every department of statistics. 
 Besides raising the standard of scientific knowledge, it will probably do a great 
 deal to stimulate exact inquiry into both social and economic problems." 
 
 8. The Place of Compensation in Temperance Reform. By 
 
 C. P. SANGER, M.A., Fellow of Trinity College, Cambridge, 
 Barrister-at-Law. 136 pages, Crown 8vo, 2s. 6d. net. 
 
 P. S. KING & SON, ORCHARD HOUSE, WESTMINSTER. 
 
" A permanent and invaluable contribution to the sum of human 
 knowledge. . . . We commend to the public a book which is a 
 monument of research and full of candour. . . . Indispensable to 
 every publicist and politician." TIMES, 4th January, 1898 (day of 
 publication). 
 
 Now Ready. Post 8vo, Two Vols., xxix. and 929 pages, with 
 Two Diagrams. Price 255. net. 
 
 INDUSTRIAL DEMOCRACY. 
 
 By SIDNEY and BEATRICE WEBB 
 
 (Authors of " The History of Trade Unionism "). 
 
 ADVERTISEMENT. 
 
 In this work the authors of " The History of Trade Unionism " deal, not 
 with the past, but with the present. They describe, with the systematic detail 
 of the scientific observer, and in the same objective spirit, all the forms of 
 Trade Unionism, Factory Legislation, and other regulations of industry to be 
 found in the British Isles. The whole structure and function of Labour 
 Organization and Restrictive Legislation in every industry is analysed and 
 criticised in a manner never before attempted. The employer in difficulties 
 with his workmen, the trade unionist confronted with a fresh assault upon his 
 standard rate, the politician troubled about a new project for Factory Legisla- 
 tion, the public-spirited citizen concerned as to the real issues of a labour 
 dispute, will find elucidated in this work the very problems on which they are 
 thinking. It is a storehouse of authenticated facts about every branch of the 
 " Labour Question," gathered from six years' personal investigation into every 
 industry in all parts of the kingdom; systematically classified, and made 
 accessible by an unusually elaborate Index. 
 
 But the book is more than an Encyclopasdia on the Labour Question. 
 Scientific examination of trade union structure reveals, in these thousand self- 
 governing republics, a remarkable evolution in democratic constitutions, 
 which throws light on political problems in a larger sphere. The century-long 
 experience of these working-class organizations affords unique evidence as to 
 the actual working of such expedients as the Referendum, the Initiative, 
 Government by Mass Meeting, Annual Elections, Proportional Representation, 
 Payment of Members, and, generally, the relation between the Citizen-elector, 
 the chosen Representative, and the Executive Officer. The intricate relations 
 of trade with trade have an interesting bearing upon such problems as Local 
 Government, Federation, and Home Rule. Those who regard the participation 
 of a working-class electorate in the affairs of government as the distinctive, it 
 not the dangerous, feature in modern politics, will here find the phenomenon 
 isolated, and may learn how the British workman actually deals with similar 
 issues in his own sphere. 
 
 The analysis of the working of Trade Unionism and Factory Legislation in 
 the various industries of the United Kingdom has involved a reconsideration 
 of the conclusions of Political Economy. The authors give a new and original 
 description of the working of industrial competition in the business world ot 
 to-day ; and they are led to important modifications of the views currently 
 held upon Capital, Interest, Profits, Wages, Women's Labour, the Population 
 Question, Foreign Competition, Free Trade, &c. The latter part of the work 
 is, in fact, a treatise upon Economics. 
 
 Finally, it should be stated that the authors, in the Preface, describing their 
 investigations, propound a new view as to the scope and method of Political 
 Science. 
 
 LONGMANS, GREEN, AND CO. 
 
 LONDON, NEW YORK, AND BOMBAY. 
 
Other Works by the same Authors. 
 
 PUBLISHED BY SWAN SONNENSCHEIN & CO. 
 
 THE CO-OPERATIVE MOVEMENT IN GREAT 
 BRITAIN. By BEATRICE POTTER (Mrs. Sidney Webb). 
 Second Edition, 1893. Crown Svo, with Coloured Map 
 showing Distribution of the Co-operative Movement, 
 Appendices, and Index. Price 25. 6d. 
 " Miss Beatrice Potter's luminous and suggestive volume is not a mere 
 
 bald, historical outline, but a thoughtful and pregnant study of tendencies, 
 
 causes, and effects." Times. 
 
 "The whole volume is full of suggestion, both to co-optrators and to 
 
 politicians. ... It is without doubt the ablest and most philosophical analysis 
 
 of the co-operative movement which has yet been produced." Speaker. 
 
 SOCIALISM IN ENGLAND. By SIDNEY WEBB, LL.B. 
 
 Second Edition, 1893. With new Introductory Chapter. 
 
 Crown 8vo, price 2s. 6d. 
 
 " The best general view of the subject from the moderate Socialist side." 
 Athentrum. 
 
 THE LONDON PROGRAMME. By SIDNEY WEBB, LL.B. 
 Second Edition, 1894. With new Introductory Chapter. 
 Crown Svo, price 25. 6d. 
 " Brimful of excellent ideas." A nti-Jacobin, 
 
 PUBLISHED BY WALTER SCOTT. 
 
 THE EIGHT-HOURS' DAY. By SIDNEY WEBB, LL.B., 
 and HAROLD Cox, B.A. Crown Svo, 280 pp., with 
 Bibliography. Paper covers, price 15. 
 
 " The unique value of this little book lies in its collection of facts. It is 
 likely, for some time, to hold the field as the handbook to one of the chief 
 items in the social politics of the immediate future." Pall Mall Gazette. 
 
 PUBLISHED BY GRANT RICHARDS. 
 
 LABOUR IN THE LONGEST REIGN, 1837-1897- 
 
 SIDNEY WEBB, LL.B. Small Svo, cloth, price is. 
 
 PUBLISHED BY LONGMANS, GREEN, & CO. 
 
 THE HISTORY OF TRADE UNIONISM. By SIDNEY 
 and BEATRICE WEBB. Second Edition, 1896. Revised 
 (completing 2,500 copies). Post Svo, 574 pp., cloth, with 
 Coloured Map, iSs. 
 
 " A masterly piece of work." Times. 
 
 " To the politician . . . an invaluable guide." Observer. 
 
 PROBLEMS OF MODERN INDUSTRY. By SIDNEY 
 and BEATRICE WEBB. Post Svo, 286 pp., price 75. 6d. 
 
RECENT PUBLICATIONS BY 
 
 P. S. KING & SON, 
 
 Orchard House, 2 & 4, Great Smith Street, Westminster. 
 
 Taxation, Local and Imperial; and Local Government. By 
 
 J. C. GRAHAM, Barrister-at-Law. Third Edition, Revised 
 and brought up to date, by M. D. WARMINGTON, Barrister- 
 at-Law. Cloth, Crown 8vo, 25. 
 
 This new edition, which discusses the question of taxation as applied to 
 both its imperial and local aspects, will prove most useful to those persons 
 engaged in the administration of public affairs, as well as instructive to any 
 one who is interested in the subject of taxation and local government. 
 
 City Press. " The distinctions between Imperial and Local Taxation are 
 elearly indicated, and the exact duties that devolve upon Local Authorities 
 are defined with commendable exactitude." 
 
 Local Government Journal. " Exceedingly valuable for reference." 
 
 Sheffield Daily Telegraph. " The facts are clearly stated and well ex- 
 pounded." 
 
 Cost of Municipal Trading. By DIXON H. DAVIKS. A Paper 
 read before the Society of Arts, the Lord Chief Justice, 
 Lord Alverstone, in the Chair, with the Discussion thereon, 
 and five Explanatory Diagrams. 2s. 
 
 Local Government Chronicle. " Mr. Davies certainly makes out a plausible 
 case for prohibiting the development of municipal trading when he points to 
 the enormous local indebtedness of the country. The paper is, in some respects, 
 a strong indictment of municipal mismanagement, and it is well worth careful 
 study." 
 
 Municipal Finance and Municipal Enterprise. By Rt. Hon. 
 Sir H. H. FOWLER, G.C.S.I., M.P., being his Annual 
 Address, May, 1900, as President to the Royal Statistical 
 Society. 15. 
 
 Analysis of the Finance of Municipal Trading The Advantages and Limits 
 of Municipal Management Statistics of Profit and Loss in various Under- 
 takings Loans raised, &c. 
 
 Times. " A remarkable address." 
 
 Daily News. " No one is better qualified to express an opinion upon this 
 question. . . . Most opportune. . . . He puts the case, as he always put every 
 case, with an accuracy and lucidity which leave nothing to be desired." 
 
 Tribunal of Appeal under the London Building Act. A manual 
 for the Guidance and Assistance of Intending Appellants, 
 their Architects and Surveyors, desiring to exercise the 
 rights of Appeal to the Tribunal. By CHAS. H. LOVE, Clerk 
 of the Tribunal. Cloth, 35. 6d. net. 
 
 [Continued over. 
 
RECENT PUBLICATIONS. Continued. 
 
 The Cottage Homes of England. The Case against the Housing 
 System in Rural Districts. By W. WALTER CROTCH. 
 Second Edition, Revised and Enlarged. 160 pages, Crown 
 8vo, cloth, 2s. net. 
 
 History of the English Poor Law. Vols. I. and II. in connection 
 with the Legislation and other Circumstances affecting the 
 Condition of the People, A.D. 924 to 1853. By SIR GEORGE 
 NICHOLLS, K.C.B., Poor Law Commissioner and Secretary 
 to the Poor Law Board. New Revised Edition, with a 
 Biography and Portrait of the Author. 2 Vols. Demy 8vo, 
 cloth, 305. 
 
 Vol. III., 1834 to 1898, being an Independent as well as a 
 Supplementary Volume to Vols. I. and II. By THOMAS 
 MACKAY, Author of " The English Poor," and Editor of the 
 Volume of Essays " A Plea for Liberty : An Argument 
 against Socialism." Demy 8vo, cloth, 2 is. 
 
 Employers' Liability. What ought it to be ? By H. W. WOLFF, 
 Author of " People's Banks," &c. 114 pages. Demy, 8vo, 
 paper, 25. 6d. 
 
 Manchester Guardian." Points out the extremely unsatisfactory nature of 
 our present law as to employers' liability and goes on to advocate an 
 adaptation of the German system of giving compensation to workmen for all 
 injuries received in the course of their employment, coupled with a provision 
 for punishing employers whose culpable conduct gives rise to accidents." 
 
 London Water Supply : Being a Compendium of the History, the 
 Law, and the Transactions relating to the Metropolitan 
 Water Companies, from Earliest Times to the Present Day. 
 By H. C. RICHARDS, Q.C., M.P., Bencher of Gray's Inn; 
 and W. H. C. PAYNE, Barrister-at-Law, ex-Member of the 
 Water Committee, Representative of the London County 
 Council on the Thames Conservancy Board ; assisted by 
 J. P. H. SOPER, B.A., LL.B., of Lincoln's Inn, Barrister-at- 
 Law. Cloth, 324 pages. 65. net. 
 
 How the English Workman Lives. Being the Experiences and 
 Reflections of a German Coal-Miner (Ernst Diickershoff) 
 in England. Translated by C. H. o'E. LEPPINGTON. 
 Crown 8vo, is. 
 
 Standard, "There is a piquant interest in this little volume. We only 
 trust that the author's old friends at home will not find his little book so 
 interesting that it will lead to a notable increase in the number of immigrant 
 pitmen ' made in Germany.' " 
 
 Manchester Guardian, "In this little book the author compares his 
 impressions of the two countries. The result is instructive and amusing." 
 
 P. S. KING & SON, ORCHARD HOUSE, WESTMINSTER. 
 
HISTORY OF THE ENGLISH POOR LAW, 
 
 Vols. I. and II., in connection with the Legislation and 
 other Circumstances affecting the Condition of the People, 
 9241853. 
 
 By SIR GEORGE NICHOLLS, K.C.B., Poor Law Commissioner and 
 Secretary to the Poor Law Board. New Revised Edition, with 
 a Biography and Portrait of the Author. 2 Vols. Demy 8vo, 
 cloth, 30s. 
 
 The demand for this standard work, which has been out of 
 print for some time, since its original publication in 1854, has 
 been such as to call for a new edition. This new edition is edited 
 by Mr. H. G. Willink, a grandson of the author, and Chairman 
 of the Bradfield Poor Law Union. He incorporates in it the 
 manuscript notes and corrections made by Sir George Nicholls 
 in his own copy, and has written an interesting biography of the 
 author, which appears as a preface to Vol. I. A new index has 
 been made and placed at the end of Vol. II. 
 
 Spectator. "This new edition of a work, which has almost become a classic, 
 is enriched by a life of the author, and by many notes." 
 
 Speaker." It is still the standard work on its subject, and invaluable to the 
 student of the present-day problems of pauperism." 
 
 Annals of the American Academy of Political and Social Science. "This 
 new edition of Nicholls's ' History of the English Poor Law ' will be thoroughly 
 appreciated by a large circle of readers, including students of several of the 
 social sciences." 
 
 HISTORY OF THE ENGLISH POOR LAW, 
 
 Vol. HI. Being an Independent as well as a Supple- 
 mentary Volume to the above, brought from 1834 up to 
 the present time. 
 
 By THOMAS MACKAY, Author of " The English Poor," and Editor 
 of the Volume of Essays, "A Plea for Liberty: an Argument 
 against Socialism." Demy 8vo, cloth, 21s. 
 
 The scope and character of the work, which brings the subject 
 from 1834 down to the present time, and the thoroughness with 
 which the author has treated the subject, compares favourably 
 with that of Vols. I. and II. This volume has assumed more or 
 less the form of an independent work, and the reader is asked to 
 regard it as a supplement rather than as a continuation of Sir 
 George Nicholls's history. A separate and complete index has 
 been provided. 
 
 Pall Mall Gasette. "As befits the sequel to a classic, this work at once 
 takes its place in the first front of the literature on the subject." 
 
 Quarterly Review. " Mr. Mackay has produced a remarkable book, written 
 in a popular style, which will appeal to a wider circle of readers than either 
 official publications or purely scientific works can hope for." 
 
 Spectator. "The work ot a man most fully qualified both by grasp ot 
 economic principles and by practical experience." 
 
 Manchester Guardian. " Mr. Mackay has produced a very valuable book, 
 which no future student of the modern Poor Law can afford to neglect." 
 
 P. S. KING & SON, ORCHARD HOUSE, WESTMINSTER. 
 
Established 1819 in PARLIAMENT STREET. 
 
 P. 5. KING & SON, 
 
 Orchard House, 2 & 4, Great Smith St., 
 
 (Opposite the Westminster Palace Hotel, Victoria Street,) 
 
 WESTMINSTER. 
 
 ubliebers, 
 
 parliamentary & 
 
 sellcrs, jJookbintors & 
 
 PUBLISHERS OF THE REPORTS AND PUBLICATIONS OF THE 
 
 London County Council. 
 School Board for London. 
 Poor Law Conferences. 
 India Office and Government of 
 
 India. 
 China Imperial Maritime 
 
 Customs. 
 American Academy of Political 
 
 and Social Science. 
 Massachusetts State Board of 
 
 Health. 
 
 Chicago University: 
 
 Economic Studies. 
 Columbia University: 
 
 Studies in Economics. 
 
 Pennsylvania University : 
 Historical Reprints. 
 
 Toronto University. 
 London School of Economics. 
 Russian Ministry of Finance. 
 International Railway Congress. 
 
 Lists of these Publications and Monthly List of new Parliamentary 
 Papers, Books, Ac., Post Free. 
 
 Books (Mew and Old)- - 
 Parliamentary Papers - 
 Pamphlets ------ 
 
 Reports ------- 
 
 Blue Books 
 
 Official Publications, &c. 
 
 LONDON COUNTY COUNCIL. 
 
 The Reports of the London County Council are published by 
 P. S. KING & SON Annual Accounts, Reports on 
 Water Supply, Public Health and Sanitary Matters. 
 Fire Brigade, Works Department, Technical Education, 
 Rating and Taxation Statistics, &c. Catalogue, post free. 
 
 SCHOOL BOARD FOR LONDON. 
 
 P. S. KING & SON are the appointed Publishers to the School 
 Board for London, to whom all applications for Reports and 
 Publications issued by that body should be made. Catalogue, 
 Post free. 
 
UNIVERSITY OF CALIFORNIA LIBRARY, 
 BERKELEY 
 
 THIS BOOK IS DUE ON THE LAST DATE 
 STAMPED BELOW 
 
 Books not returned on time are subject to a fine of 
 50c per volume after the third day overdue, increasing 
 to $1.00 per volume after the sixth day. Books not in 
 demand may be renewed if application is made before 
 expiration of loan period. 
 
 22 
 
 
 Ri_C'D LD 
 
 APR 2 1961 
 
 REC'D 
 
 20m-ll,'20 
 
YB 0752 
 
 156178