fixed in sucli a manner as to leave a reasonable profit to the contractor 

 after paying the duty and defraying the cost of liquor, of distillation, 

 of establishments, of remuneration to vendors, &c., according to an 

 assumed standard, and the maximum prices were fixed somewhat 

 higher so as to leave a margin for the contractor to enable him to 

 adapt prices to the actual circumstances of the different parts of his 

 farm. 



11. The concentration of distillation and the introduction of the 

 guaranteed revenue system, as the system above described was called, 

 was easy in all districts in which jaggery spirit was consumed, and it 

 was extended in 1875 and 1878 to all the districts of the Presidency 

 excepting those mentioned in paragraph 7 as districts in which toddy 

 spirit is chiefly drunk. In the inland taluks of the Vizagapatam dis- 

 trict in which mowha spirit is drunk, the excise system was introduced 

 in 1875, but was withdrawn in 1878 as it did not work well there. 



12. The guaranteed revenue system (which is still retained in 

 Bombay) was in force until 1884-85, when the abkdri arrangements 

 were again completely remodelled with reference to the recommenda- 

 tions of the Abkdri Committee, which was appointed by Government 

 in 1884. It was found that this system had done its work in the way 

 of introducing and familiarizing native distillers with improved 

 methods and appliances in the manufacture of spirit, but was operat- 

 ing prejudicially to sound abkdri administration in other respects. 

 Its failure was mainly attributable to three causes, viz., first, the large 

 size of the farms generally comprising entire districts, which shut out 

 all but the largest capitalists from the competition for the contracts, 

 and enabled a few rich European firms to combine to keep down the 

 bids for the guaranteed revenue, and to make unduly large profits 

 from the more easily managed portions of the farms, neglecting 

 altogether the outlying parts ; secondly, the realization of the revenue 

 wholly in the shape of a uniform fixed duty throughout the farms 

 without regard to the often widely varying conditions of the tracts 

 comprised within them, and the artificial regulations imposed by 

 Government as regards retail prices of liquor, which, as already 

 observed, were based on hypothetical data as regards cost of liquor 

 and other items liable to considerable fluctuations in different tracts 

 of country and from year to year ; and, thirdly, the entrusting to the 

 contractors the duty of maintaining sufficient establishments for tbe 

 prevention of illicit distillation, while at the same time no police 

 powers were or could be conceded to these establishments which were 

 not under ofiicial control and discipline. The large monopolists had 

 very generally neglected to maintain the establishments they were 

 bound to employ or to provide adequate facilities for the supply of 

 liquor to the more difficult and less accessible portions of their farms ; 

 they had closed large numbers of shops previously existing, and in 

 the remaining shops they had cut down the allowance of the retailers 

 to such an extent as to drive them to seek their remuneration in 

 illicit practices, such as giving short measure, dilution, &c. ; and by 

 chai'ging the maximum prices in the populous portions of the farms 

 and spending as little as possible on their management, they had 

 reaped enormous profits, a very considerable portion of which should, 

 under proper arrangements, have come to Government in the shape 



