clxiv 



8. I'wenty years ago, the systems of abkdri administration in force 

 were very primitive and the privilege of manufacturing and selling 

 spirits in large areas, usually districts, was leased out to contractors 

 for lump sums, and the spirit was manufactured in stills scattered all 

 over the country according to the rude methods and appliances in use 

 among native distillers. The liquor was sold in sanctioned shops, but 

 practically there was no limit to the number of shops that might be 

 opened. In accordance with the provisions of the Abkdri Act, a 

 minimum price was no doubt fixed below which liquor could not be 

 sold, but as the minimum price was fixed without any reference to the 

 alcoholic strength of the liquor sold, it was of no use whatever. In 

 short, there was no attempt made to regulate taxation or to ascertain 

 and control consumption, and contractors were practically allowed to 

 do what they liked in the way of extending consumption. 



9. The obvious remedy for this state of things was the substitution 

 for the renting system of an arrangement under which out-stills could 

 be suppressed and manufacture concentrated in large distilleries easily 

 guarded, the revenue being realized by a duty of excise adjusted with 

 reference to alcoholic strength on every gallon of spirit issued there- 

 from. Before, however, this system of central distilleries, known 

 locally as the " excise system,'' could be introduced into any particular 

 district, it was necessary to make sure of two conditions, viz., 1st, 

 that when out-stills were suppressed distillers able and willing to 

 construct the necessary buildings and manufacture spirit cheaply on a 

 large scale by using scientific methods and appliances would be forth- 

 coming, and, 2ndly, that the expenses of distribution of liquor from 

 a central distillery to the outlying parts of districts in which facilities 

 for illicit distillation were great did not so enhance the cost of liquor 

 to the consumers as to drive them to supply themselves with it 

 illicitly. 



10. Accordingly, "the excise system'' was first experimentally 

 tried in selected districts between the years 1869 — 74. The results 

 showed that no difficulty was likely to be experienced in finding dis- 

 tillers, provided that the areas over which they were given the 

 privilege of selling liquor were sufficiently extensive to enable them to 

 do a large business. In 1875-76, the ''excise system" was intro- 

 duced into further portions of the Presidency with certain modifica- 

 tions, the chief of which was that the distiller or contractor who was 

 given the monopoly privilege of manufacture and sale within a 

 district was required to guarantee a minimum revenue from the duty 

 leviable on the spirit issued for consumption, the object in view being 

 to prevent his making all his profit in the easily manageable portions 

 of his farms, leaving the distant outlying portions to the illicit 

 distiller and the smuggler. The contractor was charged with the 

 duty of maintaining sufficient establishments to prevent illicit practices 

 and smuggling. He was bound to sell the spirit at certain maximum 

 and minimum prices prescribed by Government. The minimum limit 

 was intended to prevent the contractor lowering the price to such 

 an extent as to unduly extend consumption, and the maximum limit 

 to prevent his running up the price so high in particular localities as 

 to cause hardship to the drinking classes and drive them to illicit 

 practices in obtaining supplies of liquor. The minimum prices were 



