THE COMPENSATION CLAUSES OF THE LOCAL GOVERNMENT BILL.
[To THZ EDITOR OF TEl " SPECTATOR...1.
was glad to see that, in your able article of May 26th on the "Compensation Clauses," you pointed out a difficulty which has not, I think, been as yet sufficiently recognised, viz. : that any scheme for awarding equitable compensation to those publicans who lose their licences for no offence against the licensing laws, ought to make provision for distinguishing between the various classes of houses and trades. If the legal right to renewal, which appears to be the basis of the Govern- ment proposals, were maintainable, it would be unnecessary, and possibly unjust, to make such distinctions. But if we only recognise a moral claim for equitable consideration, we surely cannot award the same measure to the respectable village inn- keeper, and to the occupier of a newly licensed gin-palace in the back slums.
As I have not seen any other plan suggested for meeting this difficulty, I venture to send you the outline of a scheme which I submitted to several leading politicians some weeks ago, and which I think might form the groundwork of a reasonable compromise for settling this important and difficult question.
The scheme is based on the following principles :—(1), The publican's claim to compensation to be regarded as an equitable, not a legal one ; (2), the compensation to be strictly limited both in value and time ; and (3), the amount of com- pensation to vary in proportion to the strength of the equitable claim. • Scheme.—Compensation to be assessed on the basis of the amount by which the annual value of the licensed premises is increased by the possession of the licence. The number of years' purchase of this value not to exceed fifteen in the case of any licence refused renewal during the year 1889, fourteen in 1890, and so on until December 31st, 1903, after which no compensation should be payable. (This sliding-scale would prevent any abrupt transition, from the period of compensation to the period of no compensation, which might be found in practice inequitable or inconvenient.) Only the highest class of equitable claims would receive the maximum number of years' purchase. The arbitrator would be directed to take into account, for or against the claimant, such considerations as the following :—(a), The number of years during which the licence had been continuously renewed ; (b), any reasonable price paid for good-will ; (c), any recent expenditure necessitated by the requirements of the licensing justices ; (d), any recent conviction for offences which might affect the character of the licensee or his business ; and (e), the circumstances of the neighbourhood in which the licensed premises are situated.
Such wide powers of discretion could not, of course, be given in case of dispute to any one but a trained lawyer, and it might be best to refer the assessment, as you suggest, in any case to the County-Court Judge of the district.—I am, Sir, &c.,
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