The warning which we were regretfully compelled to address in our 

 last Report to those firms who, in some producing districts, threatened 

 to demoralise the trade in certain staple articles by offering for sale 

 notorious adulterants, has not been without success. It is true that in a 

 few cases we were forced to threaten with the disclosure of names, but 

 in doing so we attained our object, a fact which we desire specially to 

 place on record here. 



Before we pass on to the consideration of the various selling markets 

 we wish to observe that in the course of last summer our workmen's 

 colony has been enlarged by three buildings containing altogether 24 

 separate dwellings and that we intend next year to increase the accom- 

 modation for our staff by the erection of three other buildings which will 

 afford dwelling-room for six chemists. 



The extension of our works at Barreme (France), of which an illustration 

 depicting the new factory appears elsewhere in this Report, is referred to 

 under the heading "Lavender Oil". 



In spite of the unrest which has lately been caused in the spirit- 

 industry (the principal consumer of our manufactures), by the attitude of 

 the Spirit-Trust, our business in Austria has been satisfactory, and our 

 branch works at Bodenbach were able to utilise to their full extent the 

 structural enlargements carried out last year, the more so because in 

 the Hungarian portion of the Monarchy the demand was also extremely 

 brisk. Those industries which use Austrian spirit have met the dictatorial 

 behaviour of the Trust unitedly, and with admirable energy. It is true 

 that the reductions in price which have lately been announced by the 

 Trust are generally regarded as nothing more than a dexterous tactical 

 move, but it is probable that in the long run the thoroughly justifiable 

 action of the combined industries will not remain fruitless. Nothing new 

 has been heard of the increase in the Austrian spirit tax which has already 

 been threatened for so many years, the time of its introduction being still 

 on the knees of the gods. 



The sale of our manufactures in France continues to increase steadily 

 and in all branches, and we are, therefore, in a position to declare once 

 more that the increased customs duties of 1910 have had no restricting 

 effect upon our relationship with our neighbour State, where fortunately 

 the quality of our goods has always been properly appreciated. The 

 difficulties experienced in passing merchandise through the French customs, 

 to which reference has repeatedly been made in previous Reports, have 

 considerably abated, from which it would appear that the authorities 

 concerned have grown tired of unnecessary objections and superfluous 

 correspondence, leading to nothing in the end. 



Business with Italy has been but slightly affected by the war which 

 has now lasted a full year, and the Italian commercial statistics for the 

 first half of 1912, which are now available, are very favourable indeed. 



