TRANSACTIONS OF SECTION B. 599 



French manufacturers, is, however, levied on the amount of alcohol calculated to 

 have been used in their production. In Germany alcohol used for industrial or 

 medicinal purposes is exempt from the tax on the production of spirits 

 (Brantweinstenei').' 



The above remarks apply equally to alcohol used in chemical research. 



One of the objections which will possibly be raised by the Treasury in refusing 

 to move in this matter is that though a great proportion of the cost of organic 

 research in this country is due to the high cost of duty-paid alcohol and ether, yet 

 they (the Treasury) pay back to chemical science far more than they receive from 

 chemistry as duty. It has been suggested that the organic chemistry department 

 of the Owens College has been peculiarly favoured in the administration of the 

 Treasury grant. Here are the facts. In the year 1898 the chemical department of 

 the Owens College received 175/., and in the year 1899 125/. in Treasury grants ; 

 against these items we find that the College in the year 1899-1900, though 

 suffering severely from the financial depression, paid 427/. 155. lOd. for apparatus 

 and chemicals used in research, the result being that 20 per cent, of the transac- 

 tions of the Chemical Society for 1899 are occupied by contributions from the 

 College laboratories. It is well here to point out that the tax falls most heavily 

 on students who, having just taken their degrees, are engaged in their first 

 researches. Such students, as a rule, receive no pecuniary assistance. 



Does not the Treasury grasp the elementary principle that the advance of 

 knowledge, leading, as it does, to the creation of new industries and to the perfec- 

 tion of the old, becomes a valuable, if indirect, source of increased income ? 



The Board of Inland Revenue are understood to object that the administration 

 of a remission of the duty in alcohol would be both complicated and costly. 



Is this difficulty really so insuperable P In France, as has been shown, the 

 cost of administration is met by a statistical tax. In this country a precedent has 

 been set in the permission of responsible persons to use and recover methylated 

 spirit. 



' A person desirous of using methylated spirit must make written application 

 to the Commissioners, stating the situation of the premises, the particular purpose 

 or purposes to which the spirits are to be applied, the quantity likely to be 

 required in the course of a year, and if the quantity to be used in a year exceeds' 

 fifty gallons, or there is a still on the premises, or means are adopted for the 

 recovery of the spirits after use. He must furnish the name of one or more house- 

 holders or of a guarantee society to join him in a bond for the proper use of the 

 spirits.' 



In America and Canada colleges and institutions are permitted to use alcohol 

 free of duty on a signed requisition from the head of the college or department. 

 Should this suggestion be adopted or not ? 



A modification of the following scheme might be found workable. Institu- 

 tions and laboratories desirious of using pure alcohol for scientific purposes might 

 apply to the Board of Inland Revenue for a licence (for which, say, a charge of 

 6s. to 10s. could be made); the manufacturer or retailer supplying the alcohol in 

 this country would with the delivery note send a form which could be filled up 

 and signed by the director of the institution or laboratory, and the manufacturer 

 or retailer would ultimately obtain remission of duty from the Inland Revenue 

 Board on presentation of these forms as bonajides. In the case of alcohol coming 

 from foreign countries the usual Customs note would be so modified that the con- 

 signee would be able to apply direct for rebate. If the Board of Inland Revenue 

 consider supervision of such institution and laboratories necessary, it surely would 

 not entail much extra work on those officials who now control the use of methy- 

 lated spirit. 



What steps can be taken to obtain this object ? It is first necessary to ascer- 

 tain whether to effect such a change would be within the statutory powers of the 

 Board of Inland Revenue, or whether it would be necessary to introduce a Bill 

 into Parliament. 



In the first case it seems to me that an influential deputation might wait on 

 the First Lord of the Treasury or the Chancellor of the Exchequer and represent 



R R 2 



