fTO THE EDITOR OF THE "SPECTATOR.' . ] Sin,—In the article on
the Licensing Bill in your issue of March 7th one of the three amendments suggested is that the distiller should bear his "fair share in the provision of compensation." In the chief argument in support of this suggestion it appears to be assumed that the brewer and the publican at present bear this charge, and that therefore, as the distiller is at least as guilty, if not more so, than they are, he should be compelled to contribute. But neither the brewer, as a brewer, nor the publican, as a publican, con- tributes to the coinpensation fund. The breiver does so, the publican does so, and the distiller does so only when he becomes the freeholder or leaseholder of a licensed house. A brewer can supply beer to any house without being called upon to pay compensation. A publican can become a-tenant
of a licensed house, and can deduct all the compensation he is called upon to pay under the Act of 1904 from his rent.
Both the writer of the article and also your correspondent " Z." appear to be of opinion that the distiller makes a higher percentage of profit and contributes less to the revenue than the brewer. The reverse is the truth. The percentage of gross profit that a distiller makes rarely exceeds sixteen per cent., whereas the brewer's gross profit is very much larger. The amount paid to the revenue by the distiller is in propor- tion far in excess of the duty paid by the brewer. For instance, on a gallon of whisky, gin, brandy, or other spirit the duty amounts to more than half the sale-price, whereas the Excise on a gallon of beer is. of course, not nearly so high in proportion. Although the majority of the brewers will be very hard bit if the present Bill passes in anything like its present form, it is not by reason of their business as brewers pure and simple, but in consequence of the policy adopted some ten years ago by all the brewers, of buying up the freeholds or lease- bolds of licensed houses. The enormous difference between the prices paid, and the amounts the properties will realise if they are to be considered of no more value than unlicensed premises at the end of fourteen years, will of course have to be written off. While I have a great deal of sympathy with the brewer, I have a good deal more for the publican and the distiller. Before a brewer loses a penny in respect of goods supplied or money advanced to a publican, the latter must sacrifice all the capital he has invested in the property and the distiller whatever he has advanced to the publican, either by way of goods supplied or upon loan. The brewer as land-. lord and prior mortgagee must first be paid. Breweries as a whole are in very low water at present, but distillers are in a still more critical position.—I am, Sir, &c., B. V.
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