IRortbwestern Ulntversit^ Xibrarp
Evanston, Illinois
/
%L^^>C&X^KS<-? <
/^£SLa^->4 ^L^fL^a^ir &il^r>J~^4t X. JLy
HOUSE .... No. 192.
(Hommonrocciltt) of ittassacljusctts.
To the Honorable Senate and the House of Representatives in General
Court assembled.
The commission appointed by His Excellency the Gov¬
ernor, under chapter 86 of the Resolves of 1893, to
investigate the Gothenburg and Norwegian systems of
licensing the sale of intoxicating liquors, beg leave to sub¬
mit the following report: —
Three separate investigations have been made in Nor¬
way and Sweden, one by Dr. E. R. L. Gould of the
Department of Labor at Washington, embodied in an
elaborate report of 253 pages, and issued in 1893 under
the direction of Carroll D. Wright. A second investiga¬
tion was made in 1893 by one member of the commission.
As certain difficulties yet remained as to the consumption
of liquors and the relation in several particulars of the
Norwegian to the Swedish system, Mr. John Ivoren was
sent by the commission to make a final thorough study of
the question both in Sweden and Norway. Mr. Koren is
a trained statistician, familiar with the Scandinavian lan¬
guages, and was already prepared for such investigation by
an intimate knowledge of the system in both countries. The
extended account of the system which follows is the result
of Mr. Ivoren's careful research. Every special difficulty
suggested by previous studies was given to Mr. Koren, in
order that he might, upon the spot and with the help of
the officials, get every explanation of such difficulties that
the authorities could give. All important data up to the
2 THE NORWEGIAN SYSTEM, ETC. [Feb.
year 1893 are here presented. Certain fears expressed
by Director Berncr two years since as to an increased
use of alcohol prove, fortunately, in the light of the latest
official statistics, to bo groundless.
This great reform in the legislative control of the retail
sales of distilled spirits began nearly thirty years ago in
Gothenburg, Sweden. From town to town it has slowly
spread, by the sheer force of its admitted superiority over
any method under which private profits are made. Scores
of objections as to the difficulties of management, politics,
use of profits, evasions of the law, etc., have proved in
this long experience of town and country to be without
foundation. All the cities and almost all the towns in
both countries are now covered by this system, for the
sole reason that every moral and social interest has been
found to be the gainer. The earlier fears of the temper¬
ance party that the principles of local option and pro¬
hibition would suffer are no longer felt by the leaders of
the temperance movement.
Early in 1893 Mr. James Whyte, secretary of the
United Kingdom Alliance in England, made a somewhat
hostile attack upon the Gothenburg plan. A reply has
now been made to this pamphlet by the highest Swedish
authority, Dr. Wieselgren, who is president of the Swed¬
ish Temperance Society, director-general of the Swedish
prisons and a member of Parliament. Even from the side
of distinctively temperance reform, the most direct and
powerful evidence is given in this reply (" More about
the Gothenburg system," Noerstedt & Sons, Stockholm,
1893) that the cause of temperance in Sweden and Nor¬
way has been greatly furthered and secured under this
company control. Dr. Wieselgren here expresses the
strong conviction of the large majority of the temperance
party of both countries.
As it is the purpose of this commission to present in an
impartial spirit the simple record of fact and experience
under this system, it is hoped that the report and investi¬
gations herewith presented may be read in connection
with Dr. Gould's report to the Department of Labor, in
which the history and origin, the laws, by-laws and
1894.]
HOUSE — No. 192.
3
regulations are given so fully that no attempt was made
in the work of the commission to reproduce them. The
results presented by the commission rather supplement
and complete the previous investigations. It is believed
that the report of Dr. Gould and that presented by the
commission make it easily possible to form a true and
adequate opinion upon the merits of the question involved.
It will be seen that the conclusions arrived at are in
closest agreement with the recent testimony of almost
every foreign consul in Norway and Sweden as to the
uniform advantages which company control secures. The
conclusions are the same as those drawn by Sir F. R.
Plunkett in his report of 1890 to Lord Salisbury. In
this report the testimony to the great benefit of the system
is given from all the governors of the provinces. It is
added: " The governors appear to have borne unbroken
and unvarying testimony as to the beneficial effects which
had followed the application of the system." Of the
testimony of twenty-two vice-consuls, it is said : " They
are without exception favorable to the new system."
Within the last two years great and increasing interest
in this special reform has shown itself in England. A
meeting has just been called at Grosvenor House, " of
those interested in the Scandinavian system of licensing
reform," signed by the Duke of Westminster, the bishops
of Chester and Durham, Lord Aberdare, Thomas Hughes,
the Right Hon. Joseph Chamberlain and others. Mr.
Chamberlain, after visiting Norway and Sweden, became
an unqualified advocate of this scheme. Judge Thomas
Hughes, after long opposition, wrote to the Bishop of
Chester that he had, after more examination, become a
convert. In the following words, " My firm belief is
that, as long as the monopoly connected with private
interests (i. e., with individual profit making) belongs to
the trade, we shall never have a true and efficient police
supervision exercised over the public houses," Mr. Glad¬
stone announced his adhesion to the system.
In the Appendix special attention is called to the new
Federal control in Switzerland of the manufacture and
wholesale distribution of alcohol, which is meeting with
4 THE NORWEGIAN SYSTEM, ETC. [Feb.
growing approval in that country. It thus appears that
the subject of this report has behind it not only a
long and varied experience, but is commanding an ever
wider interest in other countries and among the most able
and practical statesmen and temperance leaders in the
world.
For reasons which will appear in the larger report, it
seems better to lay the -emphasis upon the Norwegian
rather than upon the Swedish experience. Any experi-
mentthat might be tried in our own State would follow along
the lines of the more recent reforms in Norway, where
the highest efficiency has been attained ; where accurate
statistical evidence shows that the consumption of distilled
spirits has fallen since 1876 at the least calculation forty-
six per cent. In this extraordinary decrease it is the
saloon traffic which has diminished most. If beer had
been included in the company control, there is every
reason to believe that it would have shown a lessened con¬
sumption. In both Norway and Sweden beer was ex¬
cepted because it was believed to have a tendency to
check the use of stronger drinks. The proofs that this is an
error have grown stronger with each yeai-'s experience,
until the testimony is now overwhelming that the company
must control malt beverages as well as distilled liquors ; that
beer, still left in the hands of the private protit-maker,
greatly limits the benefits of the system. In several
Norwegian towns beer has now been brought under the
company control, with great promise of restricting the
kind of evils connected with the consumption of beer
which appear in the report. Any wise experiment in our
own country would begin where the Norwegian experience
ends ; and thus it seems fitter, in the choice of names, to
use Norway rather than Sweden.
It will be found that the evidence is strong and conclu¬
sive that this system does not " make drinking respectable."
The argument against the taking of profits by the State
or city because it is " blood money " has not the slightest
force under the bill drafted by the commission. The
bill is strictly permissive, merely giving an opportunity
(if one in one hundred voters so desire) to those towns
1894.]
HOUSE —No. 192.
5
that vote license to choose the Norwegian type of license.
It can thus in no sense he said to "sanction" the evil.
Extreme care is shown in the bill not to interfere in the
least with the no-license system, or with the freest exer¬
cise of the local-option principle. The best friends of
temperance in Sweden and Norway have come to see that
their own ideal of ultimate extinction of the traffic is safest
under this system.
A note has been added in the Appendix to show why
the South Carolina experiment should not for a moment
be confounded with that of Norway and Sweden, where
every community, large or small, is left wholly free to
choose the method which seems best. Local initiative
and local control are thus secure.
Finally, the commission, after its investigation, may be
allowed to express the confident conviction that the evi¬
dence for this system, if fairly weighed, abundantly justi¬
fies in this Commonwealth such experiment under the
Norwegian method as might be tried with entire safety
under a permissive bill.
JOHN LOWELL,
H. P. BOWDITCH,
JOHN GRAHAM BROOKS,
Commissioners.
6 THE NORWEGIAN SYSTEM, ETC. [Feb.
Commontucciiil) of iHassacljusetts.
In the Year One Thousand Eight Hundred and .Ninety-four.
AN ACT
To establish the Norwegian System of selling
Intoxicating Liquors.
Be it enacted by the Senate and House of Bepresenla-
tives in General Court assembled, and by the authority of
the same, as follows:
1 Section 1. A petition signed by qualified
2 voters of any city or town, not less in number
3 than one for every one hundred persons who
4 voted at the next preceding annual election in
5 such city or town, but in no case less than
6 fifty, may be presented to the board of alder-
7 men of such city, or to the selectmen of such
8 town, asking them to insert in the warrant for
9 the annual municipal election or town meeting
10 an article providing for a vote upon the ques-
11 tion: "If licenses for the sale of intoxicating
12 liquors are granted in this city (or town),
13 shall they be granted under the Norwegian
14 system?" If said petition is duly filed with
15 the bond as hereinafter provided, the > aldermen
16 or selectmen, as the case may be, shall insert
1894.]
HOUSE —No. 192.
7
17 such article in said warrant. The vote shah
18 be taken thereon, and the result reported in
19 the manner provided by law for the vote on
20 the question, " Shall licenses be granted for
21 the sale of intoxicating liquors in this city (or
22 town)?"
1 Sect. 2. Said petition before being filed
2 shall be seasonably submitted to the registrars
3 of voters of the city or town in which the
4 signers purport to be qualified voters, and the
5 registrars, or a majority of the board to whom
6 the same is submitted, shall forthwith certify
7 thereon the number of signatures which are
8 names of qualified voters in the city or town
9 for which they are registrars. And said peti-
10 tion, together with the bond duly approved as
11 hereinafter provided, shall be filed with the
12 city or town clerk, as the case may be, at least
13 ten days before the time fixed for the issue of
14 the warrant for the city or town election.
1 Sect. 3. The question relating to the Nor-
2 wegian system shall not be inserted in the
3 warrant or printed on the ballot, as provided
4 in section one of this act, unless there is filed,
5 together with said petition, a bond to said city
6 or town, in the penal sum of one thousand
7 dollars in towns, and of five thousand dollars
8 in cities, executed by not less than five citizens
9 of such city or town, approved by a master in
10 chancery and conditioned upon the formation,
8 THE NORWEGIAN SYSTEM, ETC. [Feb.
11 before the first day of May following said
12 election, of a corporation to receive the licenses
13 which may be granted to it under the provi-
14 sions of this act, and upon the carrying on
15 business under such licenses for at least three
16 years from said first day of May, but to be
17 void if such city or town shall not vote to
18 grant licenses under the Norwegian system.
1 Sect. 4. In any city or town voting to
2 grant licenses to sell intoxicating liquors under
3 the Norwegian system, every such license shall
4 continue in force until three years from said
5 first day of May, unless sooner forfeited or
6 rendered void, and no vote shall be taken in
7 such city or town on the question of granting
8 licenses for the sale of intoxicating liquors
9 until the third annual election or town meeting
10 following the one at which such city or town
11 voted to grant such licenses under the Nor-
12 wegian system; and in such city or town
13 wherein a corporation is organized to take
14 licenses of the first and second classes, as
15 hereinafter defined, no licenses of these two
16 classes shall be granted except to such cor-
17 poration, and such corporation shall apply all
18 the profits of the business above five per
19 centum on its capital, except as hereinafter
20 provided, to the aid of objects of general
21 public benefit and utility, to be decided upon
22 as hereinafter provided.
23 There shall be but one such corporation
1894.]
HOUSE —No. 192.
9
24 doing business within such city or town; and
25 if more than one is formed and applies for
26 licenses, that one shall receive them which a
27 commission composed, in cities, of the mayor,
28 the city treasurer and the chairman of the
29 board of assessors, in towns, of the chairman
30 of the board of selectmen, the town treasurer
31 and the chairman of the board of assessors,
32 shall decide to be the one which will best
33 conduct its business to secure sobriety and
34 good order conformably to the provisions of
35 this act.
36 Whenever more than one such corporation
37 applies for licenses, said commission shall be
38 called together by the mayor or the chairman
39 of the board of selectmen, as the case may be;
40 it shall hear the claims of all applicants, and
41 shall make its decision between them, which,
42 with the reasons therefor in writing, shall be
43 filed with the city or town clerk, as the case
44 may be, and be open to public inspection.
1 Sect. 5. The by-laws and regulations gov-
2 erning the business of the corporation shall
3 conform to existing law, and in this respect
4 shall be approved by the judge of probate of
5 the county within which such city or town is
6 situated before the corporation shall begin its
7 business; they shall be conspicuously posted
8 in every place where the business of the cor-
9 poration is carried on. No shareholder shall
10 receive more than an annual dividend of five
10 THE NORWEGIAN SYSTEM, ETC. [Feb.
11 per centum on the par value of his stock, paya-
12 ble semi-annually; and after all the expenses of
13 the business and the dividend have been paid,
11 there shall first be established a reserve fund
15 equal to the par value of the capital stock, and
16 after the payment of said dividend and the
17 establishment of said reserve fund, the remain-
18 der of the net profits, if any, shall at a fixed
19 time in each year be expended for one or more
20 objects of general public benefit and utility,
21 such as industrial education, coffee houses and
22 reading rooms, parks, hospitals, public baths
23 and sanitary improvements. The objects of
21 such expenditure in each year and the propor-
25 tion of said remainder to be expended for each
26 one of the objects selected shall be determined
27 by the shareholders at a meeting called for that
28 purpose.
1 Sect. 6. The commissioners of savings
2 banks shall investigate, examine and proceed
3 against every such corporation in like manner
4 and with the same powers as is now or shall
5 hereafter be provided in the case of savings
6 banks so far as such provisions are applicable
7 thereto; and if it shall appear to said commis-
8 sioners that the business of such corporation is
9 being carried on so that its shareholders are
10 receiving or will receive therefrom, direetlv or
11 indirectly, more than the dividend of five per
12 centum as hereinbefore provided, said commis-
13 sioners shall apply to a justice of the supreme
1894.]
HOUSE —No. 192.
11
14 court to issue an injunction to restrain such
15 corporation, in whole or in part, from further
16 proceeding with its business in like manner as
17 is now provided by sections six, seven, eight,
18 nine and ten of chapter one hundred and
19 sixteen of the Public Statutes with respect to
20 savings banks; and such justice shall have the
21 same powers and duties in respect to such
22 application as are now given by section six of
23 chapter one hundred and sixteen of the Public
24 Statutes in respect to savings banks. Said
25 commissioners may cause any such examina-
26 tion to be made by an expert under their
27 direction at the expense of the corporation.
28 Every such corporation shall annually,
29 within ten days after the last business day of
30 its fiscal year, make a return to said commis-
31 sioners, which return shall specify such details
32 of its business as said commissioners may
33 direct, and shall include the names and number
34 of its employees and the salaries paid to each,
35 and the salaries, if any, paid to any officers
36 of said corporation. Blank forms for such
37 returns shall be furnished by said commission-
38 ers. Said annual returns shall be published
39 in a newspaper of the city or town where such
40 corporation is established, or, if no newspaper
41 is published in any such city or town, in
42 the newspaper published nearest such city or
43 town, at the expense of such corporation, at
44 such times and in such manner as said com-
45 missioners may direct.
12 THE NORWEGIAN SYSTEM, ETC. [Feb.
46 Said commissioners shall annually make
47 report to the general court of such facts and
48 statements respecting such corporation, and in
49 such form as they deem that the public interest
50 requires.
1 Sect. 7. Every license granted to a cor-
2 poration under the provisions of this act shall
3 be subject to all existing laws and to all the
4 conditions now imposed upon licenses granted
5 to private licensees, and which are not inconsis-
6 tent with the provisions of this act, and they
7 shall be further subject to the condition that
8 no sale whatever shall be made on credit.
1 Sect. 8. Licenses to be granted in a city
2 voting to grant licenses under the Norwegian
3 system shall be of the following classes: —
4 First Class. — To sell liquors of any kind to
5 be drunk on the premises.
6 Second Class. — To sell liquors of any kind,
7 in quantities of less than fifty gallons, not to
8 be drunk on the premises.
9 Third Class. — To sell distilled liquors of
10 any kind, but only in quantities of fifty gallons
11 or more, not to be drunk on the premises.
12 Fourth Class. — To sell malt liquors of any
13 kind, but only in quantities of fifty gallons or
14 more, not to be drunk on the premises.
15 Fifth Class. — Licenses to clubs, as now
16 provided by law.
17 Sixth Class. — Licenses to druggists and to
1894.]
HOUSE —No. 192.
13
18 apothecaries, as now provided by law, except
19 that sales of intoxicating liquors of any kind
20 by retail druggists and apothecaries for medici-
21 nal purposes shall be made only upon the pre-
22 scription of a physician.
1 Sect. 9. The number of licensed places in
2 which said corporation may exercise the licenses
3 granted under the provisions of this act shall
4 be fixed by the directors, subject to the approval
5 of the licensing authority for the time being;
6 but the number of licensed places for the sale
7 of intoxicating liquors under the first four
8 classes, as hereinbefore-defined, shall not exceed
9 one place for each two thousand of the popu-
10 lation of the city or town in which the licenses
11 are to be granted, as ascertained by the last
12 preceding national or state census; and all
13 licenses granted contrary to or in excess of the
14 provisions of this act shall be void.
1 Sect. 10. The foregoing section shall not
2 prevent the licensing of one place in any town
3 voting to license under the Norwegian system
4 where the population is less than two thousand.
1 Sect. 11. The fees for licenses granted
2 under the provisions of this act shall be as
3 follows: —
4 For a license of the first class, not less than
5 one thousand nor more than two thousand
6 dollars; for a license of the second class, not
14 THE NORWEGIAN SYSTEM, ETC. [Feb.
7 less than five hundred nor more than one
8 thousand dollars; for a license of the third
9 class, not less than five hundred nor more than
10 one thousand dollars; for a license of the
11 fourth class, not less than five hundred nor
12 more than one thousand dollars; for a license
13 of the fifth class, not less than fifty nor more
14 than five hundred dollars; for a license of the
15 sixth class, one dollar.
1 Sect. 12. All existing laws relating to the
2 issuing, control and revocation of licenses for
3 the sale of intoxicating liquors and not incon-
4 sistent with the provisions of this act shall
5 apply to licenses granted under this act; and
6 said corporation shall be subject to all existing
7 pecuniary penalties for the violation of the
8 conditions of licenses or of the laws relating
9 to the sale of intoxicating liquor, and shall
10 appoint a manager for each licensed place
11 where its business is to be carried on, who
12 shall be personally liable to all penalties for
13 said violations occurring in the licensed place
14 of business under his management.
1 Sect. 13. For the purposes of carrying on
2 the business of selling intoxicating liquors
3 under the provisions of this act, five or more
4 persons may form a corporation under the
5 provisions of the general laws relating to the
6 formation of business corporations, and on
7 the formation of such corporation shall be
1894.]
HOUSE — No. 192.
15
8 subject to the provisions of said laws, and may
9 exercise all the powers of a business corpora-
10 tion formed thereunder, together with the
11 power to sell intoxicating liquors.
1 Sect. 14. Nothing in this act shall be con-
2 strued to affect existing laws regulating the
3 granting of licenses for the sale of intoxicating
4 liquors in a city or town voting to grant such
5 licenses, and in which no corporation shall
6 be established to take the same as herein
7 provided.
1 Sect. 15. This act shall take effect upon
2 its passage.
APPENDIX.
[17]
NOTE.
The invaluable assistance rendered in the preparation of this report
by the following gentlemen is gratefully acknowledged : —
Mr. John Larsson, secretary of the Gothenburg company; Mr.
Axel Eamm, city auditor of Gothenberg; Dr. Sigfrid Wieselgren,
director general of prisons in Sweden; Mr. Ernst Beckman of Stock¬
holm ; Mr. Joseph Rubenson, director of the Stockholm company;
Mr. H. E. Berner of Christiania; Mr. A. N. Kiaer, chief of the Nor¬
wegian Bureau of Statistics; Mr. E. Krohn of the same bureau; Mr.
0. C. Johnson, inspector of the Christiansand company, and Mr. J.
Irgens, inspector of the Bergen Company.
The material collected in the Fifth Special Report of the U. S. Com¬
missioner of Labor, " The Gothenburg System," etc., in which the
public documents pertaining to the system, as well as its official side,
are fully presented, has been freely drawn upon and been of the greatest
assistance.
SWEDEN.
LIQUOR LEGISLATION IN SWEDEN.
The position occupied to-day by the Gothenburg or
company system of regulating the liquor traffic cannot be
fully comprehended unless one considers both the con¬
ditions which called it into life and those among which it
has attained its present development. For this reason a
brief outline of the truly dramatic history of the Swedish
liquor legislation since the beginning of the latter half of
the century is presented.*
Prior to 1855 the manufacture and sale in Sweden of
distilled and fermented liquors were practically free, not¬
withstanding certain restrictions imposed by law. In
1829 the number of stills paying license fees reached
173,124, its highest figure. In 1850 it had decreased to
43,947, but, owing to improved methods and machinery,
the output was larger than ever, even with fewer stills.
The quantity of brandy annually produced and consumed
during this period was, according to the lowest esti¬
mate, 24,869,700 gallons, and according to the highest,
41,449,500 gallons. Nearly every land-owner had a
still, and brandy could be purchased in almost every cot¬
tage. In 1855, according to Dr. Sigfrid Wieselgren,
president of the Swedish Temperance Society and direc¬
tor-general of prisons in Sweden, about 7.14 gallons of
native brandy f were consumed per head of a population
of about 3,500,000. At that time, as now, women rarely
indulged in brandy drinking. Estimating, then, that one-
half of the population were females, or 1,750,000, and
* The data are mainly from Dr. Wieselgren's pamphlet on Swedish liquor
legislation.
t The Swedish "branvin," commonly translated brandy, is a liquor distilled
from grain or potatoes, containing from forty-two to fifty per cent, of alcohol,
and should properly be termed whiskey.
20 THE NORWEGIAN SYSTEM, ETC. [Feb.
that about two-fifths of the other half, or 750,000, were
under the drinking age, which may be put at fifteen years,
only about 1,000,000 of the total population could be
reckoned as brandy drinkers. The average consumption
of the latter would then be 2fi.25 gallons per head an¬
nually.
The consequences of such drinking can easily be
imagined. Physical, economic and moral ruin threatened
the nation. In the words of Dr. Wieselgren : "The
very marrow of the nation was sapped. Moral and phys¬
ical degradation, insanity, poverty and broken family
ties, brutal habits, — all those grim legions that ever
range themselves under the banner of intemperance, took
possession of the land."
Meanwhile the temperance reformei's had not been idle.
For many years they had waged unrelenting warfare
against the national evil. It is true their agitation had
well-nigh been forgotten during the disturbances of 1848,
but after that it burst forth like a storm. As a result of
their efforts a new liquor law was enacted in 1855. It
dealt with the manufacture and sale of brandy, under
which head was classed all domestic and foreign distilled
liquors. The " uncontrolled household distillation" was
converted into a strictly controlled manufacture, separ¬
ately taxed. The law relating to the sale gave every
community the right to forbid within its own precincts all
non-licensed retail and bar trade traffic in spirituous liquors
in quantities under 41^ quarts. Less than 1^ quarts might
not be sold at retail, and was not to be consumed on the
premises. The number of licenses in each community
was to be fixed by the local authorities, and the licenses
themselves disposed of at auction. The minimum quan¬
tity of liquor to be sold to each license was put at 2,211
quarts for the towns and 1,105 quarts for the country dis¬
tricts. However, the authorities were not bound to
accept the highest offer, but were instructed rather to
look to the character of the applicant than to the sum
offered. As a further guarantee for securing suitable
salesmen, a clause was incorporated in the new law, pro¬
viding that, where a company was formed for the purpose
1894.]
HOUSE —No. 192.
21
of conducting the whole retail and bar trade in brandy in
a town, the town authorities should be empowered to con¬
cede to such companies all the licenses which would other¬
wise have been sold at auction.
The effect of the new law was soon apparent. In 1853
there were 33,342 distilleries in the kingdom, producing
annually, at the lowest computation, about 24,869,700
gallons of brandy. Although the act prohibiting smaller
stills was not fully carried into effect until 1859, the num¬
ber had, in 1855, been reduced 3,481, producing about
6,519,191 gallons per annum. The gain to the moral
well-being of the people was especially noticeable in the
rural communities. Dr. Wieselgren says : "Before 1855
brandy could be bought in almost every cottage; in 1856
one might travel through whole provinces without finding
a single place where it was sold."
The towns were less fortunate ; they did not, as the
country districts, have the right of veto or local option.
Thus, as the brandy traffic was driven out of the latter, it
would naturally concentrate in the towns. The immense
quantity of brandy distilled annually had to find some
market. Notwithstanding the above important changes
and the various provisions in the interest of temperance,
the new law did not accomplish all that was desired, as
far as the towns were concerned. Here the drink evil
continued its ravages unabated.
It was not until 1865 that an organized effort was made
to control the hrandy traffic by means of the company
system provided for in the law of 1855. In that year
certain prominent citizens in Gothenburg petitioned for
the establishment of a company to which all retail and bar
trade licenses for the sale of brandy should be granted,
on the condition of its undertaking the traffic, not for the
sake of private gain, but solely for the good of the working
classes. A committee had been appointed to investigate
the causes of pauperism in Gothenburg. It unhesitatingly
reported the drink evil as the "main cause of the deplorable
condition, both in physical, moral and economic respects,
in which a great part of the poor population is plunged."
In drawing up its report, the committee said, among other
22 THE NORWEGIAN SYSTEM, ETC. [Feb.
things : " The worst enemy of the morals and well-being
of the working classes in the community is brandy. Yet
it is not the intoxicating liquor alone and its moderate con¬
sumption which causes demoralization and poverty ; it is
the disorder, evil example, temptations and opportunities
for every kind of iniquity with which public-house life
abounds that contribute mainly to this unhappy state of
things. Neither local enactments nor public surveillance
can do much as long as public houses are in the hands of
private individuals, who find their profit in encouraging
intemperance, without regard for age or youth, rich or
poor."
The petition was granted, and a company established,
on the condition that the whole profit accruing from the
sale of brandy, beyond the ordinary rate of interest on
the capital invested, should be devoted to the interests of
the laboring classes or paid into the municipal treasury.
Although the new measure was hailed with loud appro¬
bation, and the example of Gothenburg was followed by
one town after another, it was soon to meet a formidable
opposition. The lawr of 18.")."), supplemented by the new
method of regulating the brandy traffic, threatened the
very existence of distillers and manufacturers. The former
licensees had been but tools in the hands of the brandy
magnates : the companies, holding very nearly a monopoly
and having no private interests at stake, were indepen¬
dent. Backed by great wealth, the manufacturers began
to make war upon the companies under the guise of aim¬
ing to regulate the sale of brandy "exclusively with a
view to the interests of morality."
The conflict began in the diet of 1870, and resulted in
freeing the distillation of brandy from various restrictions
imposed in 1855. But the sales act of that year and the
company or Gothenburg system, as it was now called, re¬
mained undisturbed. Yet the brandy interest had won a
partial victory. The effect soon became apparent. One
of the results in Sweden of the period of reckless specu¬
lation and financial disturbance which began in 1870, and
extended over nearly the whole of Europe, was a frightful
increase of drunkenness, simultaneous with a rise in wages
1894.J
HOUSE —No. 192.
23
and shorter hours for the working people. The number
of retail and bar-trade licenses had been greatly reduced
and the number of distilleries remained the same as
before ; yet the quantity of brandy produced increased
enormously, reaching 12,434,850 gallons in 1873, 13,-
353,892 in 1875, and 13,504,163 gallons in 1876. Mean¬
while the annual import exceeded the export, and the
number of arrests for drunkenness had doubled.
The brandy question, which had been brought up in the
diets of 1874, '75 and '76, was again raised in 1877. As
a result, a commission was appointed in 1877 to revise the
existing statutes, " with a view of counteracting more
effectually the abuse of intoxicating liquors." The prop¬
osition handed in by the commission was most disap¬
pointing. As regards distillation, it simply proposed a
return to the conditions prevailing previous to 1855 ; as
regards sales, it either granted the dealer greater freedom
than ever before enjoyed, or else gave rise to a communal
public-house system. And this in spite of the fact that
the circulars sent out to all the provincial governors, ask¬
ing their opinion as to the effects of the Gothenburg sys¬
tem, had been unanimously answered in its favor.
For various reasons the proposed law governing the
distillation of brandy did not come up for action before
1882. In the mean time the friends of temperance had
organized a strong opposition to the brandy interest, and
enlisted the king on their side.
The action of the diet resulted in a confirmation of
the statute of 1855, with some slight changes of minor
importance. The law relating to distillation remained
undisturbed, with modifications adopted in 1871. The
proposition to combine the tax on distillation with the
excise, which was a blow aimed directly at the company
system, met with defeat. But the moneyed brandy
interest was not yet vanquished. Strenuous efforts were
made by distillers to secure licenses not held by the com¬
panies, in order to supply people with cheap brandy. In
this they were aided by doubtless well-meaning but short¬
sighted temperance advocates, who in this manner showed
their opposition to the company system. Associations of
24 THE NORWEGIAN SYSTEM, ETC. [Feb.
woi'king men were formed, with the ostensible object of
bettering the conditions of that class of the population,
but whose real aim it was to abolish the hated monopoly
which was coming into the hands of the brandy compa¬
nies. Under the pretence of striving to make brandy
cheap, the distillers simply manoeuvred to obtain full con¬
trol of the licenses, and thus fetter the hands of the retail¬
ers and publicans, while keeping their own free.
This " ring" movement, as it was called, spread from
Stockholm to nearly every town in the kingdom. All
united in a common attack upon the company system.
But their attempts at proving mismanagement, etc., on
the part of the directors of various companies, were futile.
They did not even succeed in persuading the public to
patronize the places where cheap brandy was sold, although
offering free conveyance to and fro to all customers. The
more clear-sighted among the laboring classes soon found
out that the promised economic emancipation was a sham.
They withdrew from the " rings," and left the final oppo¬
sition to a few misguided agitators.
It was not until 1885 that the new law, which the diet
of 1877 had asked the government to frame, was sanc¬
tioned by the king. The Gothenburg system had won
the day. "Without one dissenting vote the diet accepted
the government proposition, by which a decided encour¬
agement of the system of brandy companies was intro¬
duced into the legislative act, and which at the same time
widened the sphere of the companies' activity." But it
must be borne in mind that the prolonged bitter struggle
had done much to retard the growth of the companies,
and prevented them from attaining that height of useful¬
ness as a means of reform of which the system is capable.
Liquor Laws of Sweden.*
Manufacture of Brandy.
The law of 1887, now in force, has a two-fold purpose :
first, to subject the manufacture of brandy to a severe
* For the full text of the liquor laws of Sweden, see " Fifth Special Report of
the Commissioner of Labor," page 58.
1894.]
HOUSE —No. 192.
25
control; and, secondly, to tax it for revenue. It permits
such manufacture to every person of good repute who
owns or leases specially assessed land and has the requisite
business qualifications. However, all State and local
officials representing the Crown, church functionaries,
teachers, physicians and others, who on account of their
position may he called upon to take part in regulations
governing the manufacture of brandy, are not allowed to
engage in it.
o O
Distillation is restricted to the time between the first
week-day in October and the first week-day in May ; but
the government may stop the work whenever it sees fit.
Notice must be given when distillation ceases and when it
is resumed, and a record kept of all the work done. The
provincial governor is empowered to grant manufacturers
license upon a written application, accompanied by a
certificate showing the qualifications of the applicant. A
person who has been indicted for any crime cannot obtain
such license.
Brandy of normal grade (containing 50 per cent, alcohol)
is taxed at the rate of 12^ cents per quart. Two per
cent, of the total quantity manufactured is exempt from
taxation.
The minimum quantity taxed is 396^ gallons, with a
rebate on exports. If the quantity distilled during the
period of manufacture — October till May — is less than
2,113 gallons of taxable brandy, a fee of about 24 cents
for every quart less than that quantity is exacted, in addi¬
tion to the regular tax. A like fee must be paid when the
average quantity manufactured per day is less than 132 gal¬
lons or exceeds 1,320 gallons. Cessation of manufacture
owing to an accident does not exempt from taxation.
As security for the payment of taxes, at least 85 per
cent, of untaxed brandy must be stored in a bonded ware¬
house, which can be used for no other purpose, and must
be located near every distillery.
Illicit distillation is punishable by fines ranging from
$26.80 to $536, in addition to the regular tax ; besides,
the apparatus and brandy are confiscated. Secreting dis¬
tilled liquor to escape taxes is punished by confiscation of
26 THE NORWEGIAN SYSTEM, ETC. [Feb.
liquor and lines of $134 to $1,340, in addition to the
usual tax, or by penal servitude of from one month to
two years. When an inspector of distilleries is found
guilty of illicit distillation, he may be sentenced to im¬
prisonment at hard labor for a period of from two months
to two years.
The manufacturer is held responsible for any offence
against the law committed by his wife, children and em¬
ployees. Of the fines, one-third goes to the State and the
remainder to the public prosecutor. Every person has
the right to bring action for illegal distillation, with the
O O O
exception of the near relatives of the supposed offender or
the servants in his employ.
Retail* and Bar Trade in Brandy.
The present law, in effect since Jan. 1, 1892, embodies
the main features of the law of 1855, referred to in the
preceding pages. Its provisions apply to the " sale of
alcohol and other burnt or distilled domestic and foreign
spirituous liquors, as well as beverages prepared from
these, or containing more than 25 per cent, of alcohol."
The smallest quantity which can legally be disposed of
at wholesale is 66 gallons, and at retail 1.0567 quarts.
The liquor sold at wholesale or retail may not be divided
among or delivered to several buyers in smaller quantities
than may lawfully be sold, nor may it be consumed on
the premises.
The sale of brandy over the bar may be made in as
small a quantity as is desired, except in the case of
passenger steamers. The sale of brandy may not be
conducted in connection with any other business except
the sale of wine and beer. Persons disqualified from
the manufacture of brandy are not permitted to engage
in selling it.
How Licenses are granted.
In towns a list of the trades people entitled to sell
brandy at retail and over the bar is furnished the provin-
* The term " retail" trade, wherever used in this report, is equivalent to our
bottle trade.
1894.]
HOUSE —No. 192.
27
cial governor each year. Then the magistracy, with the
concurrence of the municipal council, or the general
assembly (town meeting) in the case of a small town,
transmits an opinion to the governor, stating whether
the same privilege ou<*ht to be granted other persons for
a period not exceeding three years, and in such case
proposing the number of places to be licensed, as well
as the location of each.
While the consent of the governor is required, it is not
in his power to grant a single license contrary to the
resolution of the town council or general assembly, nor
can he increase the number of licenses beyond that fixed
by the same authorities. (Full local option and a re¬
duction of licenses to its lowest limits are thus provided
for.) The governor, as a supposedly disinterested per¬
son, is also enjoined to investigate the character of every
applicant.
The licenses to be issued are then offered at auction,
one at a time, and sold to those willing to pay a tax on
the largest number of liters. Notice of the sale must be
given two months in advance.
The law further provides that several or all of the
licenses, otherwise to be otFered at auction, may be con¬
ceded to a company, on the condition that it pay over the
whole surplus profit from its trade, together with the fees
for transferred licenses, to the municipality, after deduct¬
ing a six per cent, dividend on the capital stock and the
necessary amount for taxes and expenses. (In all but
twelve of the Swedish towns this method of licensing
prevails.)
The licenses held by special privilege or burgess' rights
previous to the enactment of the law of 1855 can only be
acquired by a company by private arrangement, or upon
the death of the holder or his wife.
In the event of the formation of a company, the magis¬
tracy must give public notice of it, and ask for written
offers. Having examined these, as well as the by-laws of
the company, and conferred with the municipal council or
town meeting, the magistracy transmits the documents to
the governor, accompanied by their own opinion as to the
28 THE NORWEGIAN SYSTEM, ETC. [Feb.
advisability of granting the application in question.
" And the latter, having considered the qualifications of
the company no less than the amount of the fee offered,
and the number of liters (of brandy) it is supposed the
company will be able to dispose of, shall accept or reject
the proposal."
The offers, however, may not be accepted in case the
license fee bid is less than the total sum would be were
the licenses sold to individuals.
A word in explanation of the prevailing Scandinavian
method of taxing the retail and bar trade in brandy is
necessary. The licensing authorities make an estimate
of the probable consumption to each license, which in the
towns must not be less than 792^ gallons and in the
county districts not less than 39fi| gallons for every
retail shop or bar-room. Upon the quantity thus assessed
a tax of 3| cents per quart must be paid in advance.
When the proposals of a company have been accepted,
the municipal council makes a contract with the company
for the period of time fixed by the governor.
A company is not permitted to transfer its monopoly,
but may, with the consent of the proper authorities, and
on the payment of a stated sum, transfer single licenses
to sell brandy at retail or over the bar. The accounts of
the companies must be kept in conformity to rules pre¬
scribed by the department of finance, and examined
annually by five auditors, of which the municipal council
or town meeting appoints two, the landsting (meeting of
commissioners of supply of a county) one, the agricult¬
ural society of the district one and the governor one.
(Both the landsting and agricultural society share in the
distribution of the companies' earnings; hence their
appointment of auditors.)
In the matter of proposed changes of importance, for
instance, one affecting the by-laws, a company is subject
to the orders of the governor of the province, and non¬
compliance may be punished with fines.
In the country district licenses cannot be granted with¬
out the consent of the people of the parish voted at a
parish meeting. If the no-license privilege is not taken
1894.]
HOUSE —No. 192.
29
advantage of, the manner of procedure is the same as in
towns. Watering places, hydropathic establishments hav¬
ing a resident physician, and passenger steamers, may enjoy
what are known as temporary licenses. These are granted
at the discretion of the governor for less than one year at
the time, but never without the consent of the local govern¬
ment board of the district.
Distribution of the License Fees and Earnings of the
Brandy Companies.
The fees for licenses to sell brandy at retail and over
the bar and the surplus profits of the companies are
distributed as follows : —
In Stockholm eight-tenths go to the city and two-tenths
into the treasury of the general government. In other
large cities seven-tenths go to the town, one-tentli to the
agricultural society of the district and two-tenths to the
State treasury. In small towns five-tenths go to the
town, two-tenths to the landsling of the district, one-
tenth to the agricultural society, and two-tenths to the
State treasury.
For communities where the licenses are disposed of to
individuals, the law provides that the share of such com¬
munity in the license fees shall be one-tenth less than in
localities where the company system prevails.
No companies exist in the rural districts, and here
seven-tenths of the license fees go to all the country
parishes in proportion to their population, two-tenths to
the landsting and one-tenth to the agricultural society.
The moneys paid into the State treasury are again dis¬
tributed among the country revenue districts, according
to the number of inhabitants in each, the landsting and
agricultural society receiving each one-fourth and the
parishes one-half. The minister of finance may at any
time request a report of the uses made of profits resulting
from the brandy traffic.
Special Provisions.
The premises where brandy is sold must be located on
open streets, roads or market places, and must be light,
30 THE NORWEGIAN SYSTEM, ETC. [Feb.
well ventilated, etc. Before business is begun they must
be inspected by the proper officials. Brandy may not be
sold at or nearer than three miles to a place where an
auction, fair, market, parish meeting or muster of recruits
is going on. All sale of brandy may be suspended both
in rural communities and towns on the occasion of any
unusual gathering of people, or when other valid reasons
are at hand. The retail sale of brandy may take place
on week-days only, from 8 a.m. until 7 p.m. The bar
trade is restricted to the hours from 9 a.m. until 10 p.m.
on week-days in towns ; in the country the closing hour
is 8 p.m. However, the hours of sale may be extended
and limited at the pleasure of the provincial governor.
On Sundays brandy may, as a rule, only be served at
meal times to guests ordering food. During divine wor¬
ship the bar-trade places must always be closed. (In
Sweden this affects many week-days also.)
Sale of brandy to minors and intoxicated persons is
strictly forbidden.
All brandy shops must be furnished with signs showing
the kind of business done, and the doors may not be
locked while brandy is being sold.
An intoxicated person may not be ejected from a bar-
trade place where he has consumed liquor, or be left
without protection. Bartering brandy is held identical
with sale.
No sales on credit over the bar or at retail may be
made, except in quantities over 21J quarts.
When disturbances occur in a brandy shop, or when
other valid reasons are at hand, the police shall recom¬
mend the closing of such place.
Apothecaries may sell brandy only on a physician's pre¬
scription.
Illegal sales are punishable by tines. In the case of a
fourth and subsequent offences, however, imprisonment is
resorted to. Of the tines as well as of the taxes a per¬
son may be sentenced to pay, and of the value of the
brandy confiscated, two-thirds go to the public prosecutor
and one-third to the poor fund. If any special informer
is concerned in the case, he receives one-half of the share
1894.]
HOUSE —No. 192.
31
of the public prosecutor. The right to bring action is
the same as in the case of illegal distillation.
The Sale of Wine and Malt Beverages.
The law of 1885, with amendments in effect since Oct.
1, 1893, permits licensed brandy dealers to sell wine and
malt drinks over the bar or at retail without a special
privilege. All others must obtain a license, with the ex¬
ception of manufacturers, who may sell the drinks men¬
tioned directly from the place of manufacture, but only for
consumption off the premises. A license to sell wine over
the bar includes the right to sell beer, but not vice versa.
While formerly only the sale of wine at retail in quan¬
tities under 10^- quarts in the country districts was made
subject to license, this is now also the case with malt
drinks sold in the same manner and in smaller quantities
than 10^ quarts. Hotel and restaurant keepers not
possessing a brandy license can only acquire temporary
privileges to sell wine and malt drinks from the provincial
governor, on the recommendation of the town or country
authorities. Other licenses to sell wine and beer over the
bar may be granted for a period not exceeding three
years. As in the case of brandy licenses for bar trade,
the governor cannot act in opposition to the will of the
local authorities, nor increase the number of licensed
places beyond that fixed by the latter. If it be decided
not to grant any licenses, the question cannot again be
agitated for the ensuing three years. As regards the re¬
tail sale of beer and wine in quantities of less than 10|-
quarts, special provisions are in force for the country dis¬
tricts. Until Oct. 1, 1893, such sale of beer was free.
Applications for license to engage in this trade are acted
upon both by the local board and general assembly. If
both refuse to grant the application, the question is
dropped ; if either favor it, the matter is referred to the
governor for decision.
Sales at fairs, on general market days, at auctions, etc.,
by others than the licensees living in the place, are not
allowed except by special permission from the governor.
Sales on credit are forbidden.
32 THE NORWEGIAN SYSTEM, ETC. [Feb.
Bar trade in wine and malt drinks may not be con¬
tinued after 10 p.m. on week-days. Exceptions may be
made under special circumstances.
The provisions relating to the suspension of licenses,
fines and punishments for illegal sales, disturbances, etc.,
are similar to those governing the sale of brandy.
For the city of Stockholm, it being a province by
itself, special enactments are in force.
THE COMPANY SYSTEM IN SWEDEN.
In order to judge fairly of the Gothenburg system, its
methods and aim, it is imperative that we consider it
from the point of view of its originators, laying aside all
preconceived notions as to the end sought.
Reference has already been made to the motive which
led to the introduction of a new method of controlling the
liquor traffic in the city of Gothenburg. It was the deep
concern of certain philanthropic men for the welfare of the
working classes. To save these from the degradation and
impoverishment consequent upon unbridled drinking on
credit in foul places, kept by men who, seeking to cir¬
cumvent every restrictive prescription of the law, made
prey of the workman's desire for brandy, was their one
object; and to gain it the public-house traffic was placed
in the hands of citizens pledged to carry it on with con¬
scientious observance of the law, — not for private gain, —
and " in the interest of the working classes." Primarily,
the purpose was to wipe out the ordinary bar-rooms and
divorce dram-selling from private profit-making.
The founders of the system assumed a completely
neutral attitude toward liquor dealers holding special
privileges whose places were not frequented by the work¬
ing classes. They " neither sought nor undertook the
guardianship of those saloon-frequenting members of
society whose education, degree of culture and economic
condition would seem to warrant their ability to take care
of themselves without ever becoming a burden to the
State" (through immoderate drinking).
The very name taken, " company for the serving of
brandy," indicates that the aim was not even ultimately a
1894.]
HOUSE —No. 192.
33
prohibitive one, but an attempt at a better control of the
sale of spirits. Wherever the system has been adopted
in Sweden, its operations have been confined within the
limits outlined above. These considerations cannot be
borne too well in mind, as they furnish the only key to a
correct estimate of the Gothenburg system itself and what
it has sought to accomplish.
The Gothenburg Company.
The company which had undertaken to control the sale
of liquor in the city of Gothenburg began operations in
1865. That the stock had been subscribed for by twenty
of the most respected firms and individuals in the city
sufficiently guaranteed that the promises made would be
kept. The latter are clearly set forth in the by-laws * of
the company, which have not been materially changed
since their first adoption, and of which we note the most
essential point.
" The object of the company is to undertake the entire
public-house and retail traffic in brandy spirits and other
distilled Swedish or foreign spirituous liquors, as well as
such liquors of which the above form an ingredient, and
to conduct the traffic in question without any view to pri¬
vate profit."
The capital stock is fixed at a minimum sum of $26,800,
and a maximum of $53,600, divided into shares of $134
each. Shares may be transferred under certain restric¬
tions, the company always having the option of purchas¬
ing them. When a share is held by several persons
conjointly, only one of them can exercise the privileges
of a stockholder against the company. The executive
department consists of a board of directors of five mem¬
bers, who need not be shareholders.
" As the object of the company is solely to promote the
general welfare, it follows that the members of the com¬
pany may not lay claim to any of its profits, which, as
soon as all expenses of management, as well as a six per¬
cent. annual interest on the capital invested by the share-
* See " Fifth Special Report of the Commissioner of Labor," page 112
34 THE NORWEGIAN SYSTEM, ETC. [Feb.
holders, have been paid, shall be annually paid into the
town treasury, to be distributed in such a manner as is or
shall be provided in the current statutes."
The board of directors are pledged to appoint as man¬
agers of bar-rooms and retail shops " such per.-ons as,
according to the current statutes, possess the requisite
qualifications, but said managers shall personally answer
for the strict observance of all the regulations " prescribed
by law.
Each stockholder has but one vote, regardless of the
number of shares held. Disputes between members of
the company with respect to its transactions may not be
brought before a court of justice, but must be settled by
arbitration.
Hoiv the Traffic is conducted.
Although beginning operations in 1865, the company
has only had a monopoly of all the retail and bar-trade
licenses for the sale of spirits in the city of Gothenburg
since 1874, with the exception of five held by burgess'
rights, of which mention will be made later. To-day the
company uses 19 licenses for the bar trade proper, 4 to
" meet the wants of eating houses," and 17 for bar trade
at clubs, restaurants and hotels, while 21 such licenses
are not used. Of the 30 licenses to sell brandy at retail,
the company itself makes use of 7, and has transferred
the remaining 23 to 21 firms dealing in wines for trade at
retail in " higher grade" liquors.
Concerning ourselves first with the ordinary saloons,
we observe that the company has been mindful of the
comforts of its customers, and not limited itself to pro¬
viding the bare necessities of a drinking place. The
business is carried on in two divisions, usually on the
same floor, one to meet the demands of the laborer and
ordinary mechanic, the other for those a step higher on
the social ladder. Class distinctions are so finely drawn
in Sweden that the small shop-keeper refuses to drink at
the same table with the mechanic. The difference between
the two divisions is that one is better furnished, has
greater facilities for serving food, for which, as well as
1894.]
HOUSE —No. 192.
35
for drinks, slightly higher charges are made. The " better
places," as those belonging to the latter division are
called, are closed somewhat later. Whatever may be said
of this policy, which the Swedes claim as necessary, the
bar trade in both divisions is subject to the same severe
control. The restrictive measures adopted by the com¬
pany are set forth in the following contract with managers
of bar-rooms, with amendments in etfect since Oct. 1,
1893 : —
The Gothenburg Brandy Company, organized for the pur¬
pose of regulating and carefully conducting the bar and retail
trade in this city according to the needs of the present time,
and pledged to carry on said trade with exclusive regard to the
economic and moral advantage of the working classes and
without any view to private gain, hereby engages
as manager of its bar trade premises No. , in the house
No. , confidently expecting his zealous and energetic co¬
operation in promoting the above-mentioned object, to which
end he is required to observe the following instructions : —
1. All serving of spirituous liquors, including cordials, as
well as every kind of domestic and foreign wines, beer and
porter, shall be conducted on the company's account, the
manager deriving no profit from it whatever.
2. The manager, who is obliged to keep on band for his
customers good and properly prepared food, cold or hot,
according to demand, shall sell this food, as well as coffee, tea,
cocoa, soda and seltzer waters, cigars and other articles belong¬
ing to a well-conducted eating-house, on his own account.
3. The manager is personally responsible for the observance
of all the regulations relating to the bar trade in brandy and
malt drinks in towns that are, or may hereafter be, constitu¬
tionally enacted, as well as for the observance of the special
ordinances in force in this city. Furthermore, the manager is
held responsible to the company for all losses it may incur
through his negligence in these matters.
4. The manager binds himself to serve spirituous liquors,
wines, beer and porter only upon immediate cash payments ;
to engage orderly and decent assistants, who shall wait upon
the customers with civility and attention ; to keep the bar
premises in good order, well ventilated, lighted and heated
during the cold season.
5. The manager is expressly forbidden to serve spirituous
36 THE NORWEGIAN SYSTEM, ETC. [Feb.
liquors or intoxicating malt beverages to persons under the
influence of liquor, or to minors ; to sell spirits to persons
ordering several drinks in succession for consumption on the
spot, or to those who, with short intervals, pay renewed visits
to bar-rooms for the purpose of drinking. The manager is
enjoined to enforce the letter of these instructions in the
strictest manner possible, as their transgression will be dealt
with most severely by the directors.
6. On a written order, all the goods necessary for the busi¬
ness of the company will be delivered to the manager, and the
manager may on no pretext, not even for his own use, buy,
receive or have in keeping such goods furnished by others than
the company.
7. No liquor shall be served in any other rooms than those
designated for the bar trade, and the manager is forbidden to
keep the stores to be sold on the company's account in any
other parts of the premises than those appointed by the
company for that purpose. The premises for the whole traffic,
both that of the company and that of the manager, as well as a
dwelling-place for the latter, his family and necessary help,
will be furnished by the company, which hires them in its own
name, and thus becomes responsible for the rent.
8. In each bar-trade place all the company's wooden vessels
containing cognac, brandy, etc., shall be kept in such manner
as seems necessary for the exercise of the strictest control.
9. When serving the goods of the company by the glass,
the glasses belonging to the company must be used, which,
having been measured by the inspector of measures, shall
contain the quantity specified in the price list. It is also the
duty of the manager to keep on hand the glasses necessary for
the serving of beer and porter by the bottle, for which he will
be compensated as provided in section 22.
10. The manager, in selling the goods of the company,
shall follow strictly the price list fixed by the company, a copy
of which must be posted in each bar-room.
11. The manager is, uutil further notice, bound to sell
spirits and wines to be consumed off the premises at the same
prices as those fixed for cousumptiou at the bar.
12a. Every manager is provided with a special pass-book,
in which he is debited with all the wines and spirituous liquors
received from the company to be sold according to the prices
fixed in the price list governing sales, and credited with the
quantity sold and accounted for. Said accounting shall take
place at least once a week, on a day appointed by the board of
1894.]
HOUSE —No. 192.
37
directors, and on which the manager shall deposit the money
derived from the business of the company to the company's ac¬
count in the bank that has agreed to receive such deposits. The
receipt for the deposit by the bank, which stands for payment,
shall be handed in at the office of the company on the same day,
and entered both on the books of the company and on the pass¬
book of the manager to his credit.
126. The manager must order on the company's account,
directly from the dealer designated, and receive from him
against receipt the quantity of beer and porter required for the
business of the company; and it is his duty to report to the
office of the company at the end of each month, or as early as
possible, the quantity of said stores received by him, rendering
separate accounts for the bar-trade and caf£ business. This
quantity, each kind separately, will be debited him according
to the prices fixed in the different price lists for the bar and
cafe trade ; whereupon the moneys accruing from the business
in question shall be accounted for by the manager as provided
in the preceding section.
13. It is the duty of the manager to render account to the
company without making any deductions of the whole quantity
of spirituous liquors received from the company to be sold by
him, whether actually sold according to the price list or remain¬
ing in stock on the premises.
14. An inventory of stock in the bar-trade places shall be
taken at least once every month, or as often as the company
sees fit.
15. Every other Monday, in connection with the weekly ac¬
counting for sales, the manager shall hand in at the office of the
company a list of all the stores delivered to him by the company
which remain in stock.
16. The manager shall serve the goods of the company
in the same condition in which he received them, and is thus
prohibited from adding any ingredient or altering their quality.
17. Without permission from the directors, the manager
shall not, in addition to the bar trade conducted by him for the
company, hold any other position or carry on any other busi¬
ness, either on the premises rented by the company or outside.
18. Without special permission from the board of directors,
the manager shall not introduce musical entertainments or
house strangers on the premises of the company.
19. The manager shall treat the officers of the company with
respect and attentiveness, and obey without objections any in¬
structions given by them on behalf of the company, as well as
38 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
assist them with all the information requested as to the traffic
in general.
20. The manager shall take good care of the property fur¬
nished by the company, as specified in the invoice, and shall
replace all that is damaged or lost, except that which is injured
by fire or wear and tear.
21. Security, accepted by the accountant of the company,
shall be given by the manager for the goods delivered to him,
as well as for his obligations with reference to the fittings, to
the amount of
22. On the same day of every third month the manager
shall receive at the office of the company the amount which the
board of directors, after due consideration, has fixed as com¬
pensation for the unavoidable expenses incurred by him while
carrying on the business of the company during the three
months, consideration being given the number of servants he
has been obliged to engage to attend to the business of the
company, their food, lodging and salary, the part of the ex¬
pense for lighting, heating and cleaning the premises, as well
as for breakage duly falling to the share of the company, and,
finally, such salary as the directors may deem it proper to pay
the manager for punctual and careful fulfilment of his duties,
which include conducting a restaurant and eating-house business
to meet the demands of each bar-trade place.
23. The appointment is mutually terminable on two months'
notice, the company reserving the right to dismiss the manager
if he (she) violate any of the instructions given, iu which
case he (she) must vacate the premises at once, without re¬
ceiving any compensation. Furthermore, the company has the
right to dismiss the manager at any time without specifying any
cause. In the latter case, however, the company is bound to
pay as damages to the one dismissed, in lieu of rent and food
for the two months, the fixed sum of
As a further safeguard, a copy of the "Rules and
regulations governing managers" is posted in each bar¬
room for the information of customers. These regula¬
tions emphasize some of the chief points contained in the
statutes and above contract relating to the servino- of
brandy. It deserves notice that the company goes a step
further than the law, and includes under the term
" minors" not only children of fifteen years of age or less,
but also boys under eighteen, and that the manager is
1894.]
HOUSE —No. 192.
39
authorized to turn away from the premises disorderly
persons who refuse to conform to the rules.
In addition to the bar-trade places proper, the Gothen¬
burg company conducts four eating houses, mainly for
the purpose of supplying the working classes with whole¬
some food at low cost in places where the opportunities
for drinking are limited. Here all sale of spirits is pro¬
hibited, except the dram before meals, to which the
Swedes are accustomed. The managers derive no profit
from the sale of spirits and malt drinks, but sell food of
all kinds, coiike, tea, cocoa, etc., on their own account.
Ale and porter, however, may only be sold when food is
ordered. In other respects the contract with the man¬
agers of eating-houses is identical with that for managers
of the bars. The same is true of the contract for man¬
agers of the retail shops, which differ from the others
only in as far as it deals but with the retail trade ; that is,
the sale of spirits in quantities of not less than 1.0567
quarts. (See summary of liquor laws, page 25.)
As a further means of controlling the actions of its
employees, the company has two paid inspectors, whose
duties, briefly stated, are as follows :—
1. To see that the contracts made with the different
managers are lived up to, and all other regulations, in
whichever way communicated, punctually observed.
2. To visit daily (usually twice a day) the bar-rooms
and retail shops, especially at times when these are likely
to be most frequented.
3. To control and certify to the accuracy of the re¬
ports made by the managers as to the quantity of spirits
sold, if so requested, and to superintend repairs and all
other work done on the premises of the company.
4. To keep a record of their visits, entering such re¬
marks as may be necessary, which latter are again to be
communicated to the directors, if of sufficient importance.
And the inspectors are lastly enjoined to promote order
and prevent abuses or disturbances by friendly and earn¬
est representations.
While the law prescribes that the sale of brandy over
the bar, which begins at 9 o'clock a.m., must not continue
40 THE NORWEGIAN SYSTEM, ETC. [Feb.
later than 10 p.m., the Gothenburg company closes the
common bars at G during the winter and 7 in summer.
The " better division" is kept open an hour or two longer,
but spirits are then only served to those who purchase
food. All serving of brandy on Sundays and holidays
and after G p.m. on evenings preceding such days is pro¬
hibited, with the exception of a dram with the meal at the
eating-houses. The retail shops are open from 8 a.m. till
G p.m. on week-days.
Repeated personal inspections, especially of the bar¬
rooms, at all hours of the day, have convinced the writer
that the regulations and instructions promulgated by the
directors of the company are rigidly enforced. Formerly,
while the manager pocketed the profit from the sale of
beer and ale, he may have given way to the temptation of
serving persons in the first stages of intoxication. To-day it
is absolutely to his advantage to insist upon implicit obedi¬
ence to the rules ; and that not alone because lax man¬
agement is severely dealt with, but also because the pro¬
motion of employees takes place according to merit, those
having a record of the strictest discipline and smallest
sales being generally advanced first. With the system of
inspection in vogue in Gothenburg, it is difficult to see
how a manager can profit in any way by dishonest man¬
agement.
The manager has well-nigh dictatorial power over
against the customers, and is encouraged to use it within
limits. Thus it is an unwritten law that he may refuse a
person who has been guilty of some misbehavior in a bar¬
room admission to all bars for an indefinite period of time.
Many cases of this kind are on record. The writer has
seen men "on the black list" beg with tears to be
allowed to enter a bar, onl}r to be met with a curt " Not
this week." The effect is said to be very salutary, result¬
ing in a desire on the part of regular customers to keep in
the good graces of the manager.
The greatest difficulty in the bar-rooms appears to be
the exercise of a proper discretion in refusing litjuor to
persons suspected of being on the verge of drunkenness.
Experience would seem to teach that where, at least in
1894.]
HOUSE —No. 192.
41
Gothenburg, a manager in seeking to detect signs of
incipient intoxication will err once, a person, less prac¬
ticed, however desirous of being just, will err perhaps
half a dozen times.
The employment of women mainly as help in the dif¬
ferent shops is not a pleasing feature. It is true that they
never drink and can be trusted to do their work honestly,
hut it may be fairly doubted if their presence is conducive
to better conduct on the part of the customers (all men),
and if they can act with the same authority when it
becomes necessary to refuse the demands of would-be
customers. That women can be hired more cheaply than
men has unfortunately not been left out of the considera¬
tion.
On the whole, the management of the Gothenburg com¬
pany gives evidence that an honest desire to reform the
drinking habits of the working classes has animated its
transactions. This was instanced when the original method
of compensating managers, by giving them a percentage
on sales, was'abandoned, as was also the well-meant ex¬
periment of employing persons as managers who had
formerly been liquor dealers and bar tenders. It was
soon discovered that they had not abandoned their old
habit of urging customers to drink, and this worked
mischief.
The establishment of the four eating-houses referred to
above, where drams are sold only with meals, was directly
in line with the avowed policy of the company, namely,
to promote sobriety and economy among the working
classes. These places are conducted at a large pecuniary
loss, owing to the exceedingly cheap prices at which food
is sold, but are kept up because believed to be instrumen¬
tal in reforming the drinking habits of the people. When
first opened, it is said, nearly every customer ordered
spirits with his food : at the present time less than half of
the guests do so. The significance of this will be apparent
when it is stated that at the largest of the four places the
portions of food served daily in 1892 averaged 677 per day.
But it seems plausible that far better results might have
been obtained had all sale of spirits been prohibited. The
42 THE NORWEGIAN SYSTEM, ETC. [Feb.
low cost of food would probably have been sufficient to
attract an equally large number of customers.
The question of conducting a restaurant business in
connection with dram selling has given rise to much
~ O
agitation. Admitting fully that the injurious effects of
alcoholic beverages are mitigated when these are taken
with food, this object in keeping food on hand could be
reached without running one or several dining-rooms in
connection with each bar. The circumstance that the
workingmen in Swedish cities are accustomed to eating
their midday meal in saloons does not justify the practice.
The directors of the Gothenburg company seem to have
felt this when they started the four eating-houses, the
very existence of which contrasts strongly with their
other policy just indicated. From a temperance point
of view, it must be urged that the restaurant business
is a source of danger. Its comfort invites people who
otherwise would not visit bars. Even members of ab¬
stinence societies visit these dining-rooms for the sake
of the good food and low prices. It entices family men
away from their homes ; and, finally, there is danger that
the managers, who retain the whole profit 011 the >ale of
victuals, may deal more leniently with those liberally
patronizing their table. It is an open question whether
the restaurant traffic would be carried on on the present
scale but for the fact that it is a convenient and inexpen¬
sive way of compensating managers.
The Gothenburg company showed further regard for
reform by providing six free reading-rooms, chiefly
adapted to the needs of the working classes, in which the
sale ot all intoxicating liquors is absolutely prohibited.
The first- section of the contract for managers of these
places follows : —
As these premises are rented to afford persons of the work¬
ing classes an opportunity of finding entertainment in reading
during their leisure time, and to obtain refreshments and lighter
kinds of food without frequenting places where brandy, ale or
other intoxicating liquors are sold, the manager is forbidden
to offer, sell or keep such liquors on the premises under any
pretext.
1894.]
HOUSE —No. 192.
43
These reading-rooms are maintained at an annual outlay
of $3,118.30. The attendance last year was 217,207.
Remembering that the population of Gothenburg is reck¬
oned at 100,350, these figures speak for themselves.
The whole traffic in spirituous liquors in Gothenburg
is, however, by no means confined within the bounds
already described. In the first place, there are numerous
establishments sub-licensed by the company where spirits
are either served over the bar or sold at retail. Thus 17
hotels, restaurants and clubs hold concessions from the
company, on the condition that all liquors shall be pur¬
chased from the company, that the privilege shall not lie
used for common saloon business, and that the sales shall
be subject to the same general rules governing the places
managed by the company itself, except as regards the
closing hours and Sunday trade. Since the company
does not aim to put all sale of spirits under the same
restrictions, this system of sub-licensing is not in contra¬
diction to its policy, even though it seemingly violates
the principle that all sale of liquor should be divorced
from private gain. Inspection of the company's books
indicates that the quantity of liquor annually dispensed
at the hotels and clubs in question is comparatively small.
Yet, as long as the trade is superintended by men having
an active interest in the sales, abuse is always possible
and very probable. Furthermore, it is beyond doubt
that at least some of the very people for whose benefit
the company system came into being will visit the sub¬
licensed places when the others are closed to them.
The other class of sub-licenses consists of 23 wine
merchants, to whom the company, with the sanction of
the local licensing authorities, has transferred the privilege
of selling so-called "higher-grade" liquors at retail. The
transfer is made upon these conditions : —
1. The license in question does not permit the sale of brandy
or alcohol in a smaller quantity than 66 gallons. The term
brandy covers all other beverages which at 15° centigrade
contain more than 25 per cent, of alcohol, and the price of
which is less than 38 cents per quart when sold in quantities
of less than 101 gallons. An exception is made in the case
44 THE NORWEGIAN SYSTEM, ETC. [Feb.
of arrack punch, which may be^sold in quantities of less than
lOi gallons, at a price of about 29 cents per quart.
2. The above limitations are not applicable to the delivery
of liquors to the company or to parties outside the jurisdiction
of the city of Gothenburg, provided the delivery of goods is
made in a manner approved by the company.
3. The general provisions relating to the retail sale of spirits
must be observed by the sub-licensees.
The fee, based upon the estimated sales, exacted by the
company averages about $090 for each merchant, and
complaints of excessive fees are never heard. The total
quantity assessed in 1893, as representing the probable
sales of the merchants, was 409,010.2 quarts.
Regarding it as foreign to their purpose to monopolize
the entire retail trade in spirits, and, moreover, recogniz¬
ing it as a legitimate calling, the Gothenburg company
has never thought of disturbing these wine merchants,
though always having had the power to do so. The
restrictive provisions contained in the contract made with
them were deemed sufficient to guard against any abuse.
But, in fact, the wine merchants are far from confining
their trade to higher-grade liquors. Under the name of
" cognac" they dispose of large quantities of liquor which
is nothing but common brandy colored and doctored
with cognac oil, or at best with a little imported cognac.
Their contract permits them to sell this liquor at 38 cents
per quart, or about 10 cents more than is charged for
ordinary brandy at the company's shops. Now, it may
be true that the average Swedish consumer hesitates long
before paying the difference ; but it must be remembered
that while the brandy furnished by the company contains
only about 44 per cent, of alcohol, the " cognac" sold by
the wine merchants shows as high as 58 per cent. Thus
the difference in price is quite counterbalanced by'the
higher percentage of alcohol. The purchaser gets the
same value for the money. That these wine merchants
are still permitted to ply their trade is certainly the
darkest feature of the company system in Gothenburg,
assurances to the contrary notwithstanding, and cannot
be brought into harmony with its general policy.
1894.]
HOUSE —No. 192.
45
We come, finally, to a group of privileged licenses, or
licenses held by burgess' rights. Five such still exist in
Gothenburg. One, the property of a leading hotel, and
the other, belonging to the Freemasons' Restaurant, can¬
not be expropriated, owing to peculiar clauses in the
original grant. A third is held by the Exchange, and
used only on rare occasions. The two remaining ones
seem to have no valid reasons for their existence,
especially the one held by a great cafe which is very
largely patronized by the general public. That the
originators of the Gothenburg company shrunk from
immediate expropriation of the latter, fearing the loss of
public sympathy and support by too sweeping reforms,
seems natural enough. But this argument has long since
lost its force, the more so as abuses are connected with
the privilege in question.
Effects of the System in Gothenbury.
Notwithstanding the exceptions taken to the policy of
the company, it must be emphatically stated that it has
worked great and lasting good, as far as it goes, in
counteracting the abuse of intoxicants. On this point
the testimony of those who can judge from personal
experience and observance is well-nigh unanimous.
T. Reduction of Licenses.
As a first step toward reform, the company, on obtain¬
ing control of all the retail and bar-trade licenses in
the city, with the five exceptions enumerated, sought to
reduce the number of those places especially where liquor
was served over the bar to the lowest limit consistent
with full control of the traffic. Although possessing to¬
day 61 bar-trade licenses, it makes use of but 40, or 3
less than in 1868-69 (of these, 17 at hotels and clubs and
4 at eating-houses) ; and this in spite of the fact that the
population of the city has more than doubled since then.
The number of retail licenses used by the company
remains at 7, and has not been increased since full con¬
trol of these privileges was obtained in 1874. Yet within
that period the population has almost doubled.
40
THE NORWEGIAN SYSTEM, ETC. [Feb.
The following table shows the number of inhabitants to
each kind of license from 1808-69 to 1892-93, or from
the first year in which the company held all bar-trade
licenses : —
Licenses and Population in Gothenburg, 1808-69 to 1892-93.
YEARS.
Popula¬
tion of
Gothen¬
burg.
Licenses used
for Consump¬
tion on
the Premises.
Retail Licenses
used by
the Company.
Number
of
Licensee.
Inhabit¬
ants to
Each
License.
Number
of
Licenses.
Inhabit¬
ants to
Each
License.
1868-69, .
50,438
43
1,172
-
-
1869-70, .
52,526
42
1,250
-
-
1870-71, .
53,822
43
1,251
-
-
1871-72, .
55,110
42
1,312
-
-
1872-73, .
55,986
42
1,333
-
-
1873-74, .
56,909
41
1,388
-
-
1874-75, .
58,307
35
1,665
7
8,329
1875-76, .
59,986
36
1,666
7
8,569
1876-77, .
61,505
38
1,619
7
8,786
1877-78, .
63,391
38
1,668
7
9,055
1878-79, .
65,697
40
1,642
7
9,382
1879-80, .
66,844
39
1,713
7
9,549
1880-81, .
68,477
40
1,711
7
9,782
1881-82, .
71,533
40
1,788
7
10,219
1882-83, .
72,555
40
1,813
7
10,365
1883-84, .
77,653
38
2,043
7
11,093
1884-85, .
80,811
39
2,072
7
11,544
1885-86, .
84,450
40
2,111
12,064
1886-87, .
88,230
40
2,205
7
12,604
1887-88, .
91,396
40
2,284
7
13,065
1888-89, .
94,370
40
2,359
7
13,481
1889-90, .
97,677
40
2,441
7
13,953
1890-91, .
101,502
40
2,537
7
14,500
1891-92, .
104,215
40
2,605
7
14,887
1892-93, .
106,356
40
2,658
7
15,193
Retail Licenses
transferred
to Wine
Merchants.
Number
of
Licenses
13
13
13
15
16
18
17
19
22
23
23
22
23
23
23
23
23
23
23
However difficult it may be to determine the exact rela¬
tion of intemperance to the number of licensed places, it
must remain an undeniable truth that a considerable
1894.]
HOUSE—No. 192.
47
reduction of such places means less temptation, which,
again, under ordinary circumstances, results in smaller
consumption.
The above table is sufficiently eloquent of what the
Gothenburg company has accomplished in this respect to
make further comment superfluous. Year by year the
number of inhabitants to each license grows, while there
is no disposition shown to add to the number of shops.
In this connection it may be mentioned that one of the
first acts of the company was to remove the bars from the
dingy back streets and courts, and locate them on much-
travelled thoroughfares, where they may be, as it were,
under the surveillance of the public. Complaint is made
that this is placing temptation directly in the way of
many. But the policy of the company is more than
justified by the fact that this turning broad daylight on
the saloons has resulted in stamping out the usual loafing
outside such places, as well as in exterminating, to a large
extent, the confirmed toper and the vicious class of
drinkers.
II. Reduced Consumption of Liquor.
Turning now to statistical evidence as to the consumption
of liquor, we have come to what is commonly considered
the crucial test of the company system. The question is
asked, Can it be shown that the new order of things tends
to a marked and constant decrease of consumption?
Before presenting figures, the true value of such statistics
must be made clear. The degree of intemperance prevail¬
ing in a community cannot be measured by the quantity
of liquor consumed. The habits and customs of a people
play a very important part. As Dr. Gould has pointed
out, in the Fifth Special Report of the Commissioner of
Labor, the Danes, who perhaps are the heaviest liquor
drinkers in the world, have a reputation for sobriety. It
is their custom to take one or several drams with each
meal. The same per capita consumption of spirits in
Sweden and America would cause much more intoxication
in the latter country, largely on account of the different
manner of indulgence. The rise and fall of consumption
48 THE NORWEGIAN SYSTEM, ETC. [Feb.
is by no means always an indication of greater or less
sobriety, being closely interwoven with economic con¬
ditions. High wages usually increase consumption, but
not necessarily intemperance ; low wages occasion a falling
off in consumption, which, however, is not always followed
by greater sobriety.
Other factors, such as religious movements, the work of
temperance advocates, advanced moral views resulting
from a higher education, of which more hereafter, con¬
tribute materially to the fluctuations observable.
As the table given below differs somewhat from those
given in other publications, it is well to state how it has
been made up. In order to present as accurate figures of
the per capita consumption for the city of Gothenburg
as possible, it was necessary to add to its population
that of four suburbs, forming, in fact, parts of the city,
though belonging to the country parishes, in which no
sale of spirits whatever takes place. The very large
floating population (Gothenburg is the chief port of
Sweden, as well as the base of supplies for large country
districts) has not been considered. Secondly, to the
quantity of liquor sold by the company has been added
that disposed of by the licensees having burgess' rights,
calculated according to the excise paid by them ; also the
quantity sold by the 28 wine merchants, according to the
license fees exacted from them by the company. But, as
these dealers estimate that at leant one-half of their goods
are shipped to points outside the city, only one-half enters
into our figures. From this quantity, however, has been
deducted the quarts of higher-grade spirits sold by the
company, which are always purchased from the wine mer¬
chants. In order not to make the estimate too low, the
quantity of higher-grade liquors bought by the privileged
licensees from the same dealers has not been entered.
The results thus obtained are as follows : —
1894.] HOUSE —No. 192. 49
Consumption oj Liquor in Gothenburg, 1875-92.
TEARS.
Estimated
Popula¬
tion of
Gothen¬
burg and
Suburbs.
Company.
Sold by —
Privileged
Licensees.
Wine
Merchants.
Total Sales.
Con¬
sumption
per
Inhabit¬
ant.
Quarts.
Quarts.
Quarts.
Quarts.
1875, .
64,978
1,740,110.8
28,209.8
323,582.7
2,269,490.1
34.9
1876, .
66,847
1,844,739.3
28,209.8
323,582.7
2,380,431.6
35.6
1877, .
69,083
1,801,056.7
30,422.0
282,097.7
2,269,119.6
32.8
1878, .
71,749
1,721,830.6
30,422.0
323,582.7
2,288,132.8
31.8
1879, .
73,256
1,547,276.5
34,570.6
298,691.7
2,077,288.5
28.3
1880, .
75,264
1,461,892.5
34,570.6
241,304.2
1,878,667.4
24.9
1881, .
78,695
1,447,927.7
34,570.6
241,995.6
1,863,033.5
23.6
1882, .
80,117
1,358,094.2
35,953.4
253,063.4
1,802,288.1
22.4
1883, .
85,615
1,484,126.3
35,953.4
2S0,714.5
1,692,908.2
19.7
1884, .
89,173
1,553,262.6
40,102.0
288,011.7
1,774,567.9
19.9
1885, .
93,212
1,611,915.3
40,102.0
284,863.0
1,834,640.4
19.6
1886, .
97,392
1,655,502.1
42,268.0
271,035.1
1,869,339.3
19.1
1887, .
100,958
1,633,007.4
40,683.0
219,793.6
1,790,987.6
17.7
1888, .
104,332
1,670,564.8
44,909.8
219,793.6
1,833,228.4
17.5
1889, .
108,039
1,657,070.2
44,3S1.4
215,038.5
1,800,532.4
16.6
1890, .
112,264
1,714,668.3
67,628.8
215,038.5
1,872,216.3
16.6
1891, .
115,377
1,633,688.6
50,827.3
214,510.1
1,764,915.0
15.2
1892, .
117,918
1,523,251.2
53,891.7
214,510.1
1,675,874.3
14.2
During the seventeen years represented in our tahle,
the consumption per inhabitant has declined by consider¬
ably more than one-half. The diminution has been nearly
uniform, with very slight fluctuations. Under the cir¬
cumstances a better record could certainly not he ex¬
pected, and the chief credit for it belongs to the company
system. Economic conditions have had no perceptible
influence. Although exact statistics of the consumption
of beer in Gothenburg are not obtainable, it is known to
have increased steadily and rapidly. Now, beer is a more
expensive drink than brandy, at least in Sweden. If the
diminution in the consumption of brandy were due to less
prosperity or to the work of temperance advocates, or to
the influence of religious movements and the like, why
has not the consumption of beer been similarly affected?
"Why the increase of beer halls, and more arrests for
50
THE NORWEGIAN SYSTEM, ETC. [Feb.
drunkenness? Criticism has been passed on taking the
year 1875 as a starting-point for statistics, as it marked
the beginning of a period of hard times. But it must be
remembered that not until 1874 did the company gain
possession of all retail licenses. Previously, the numerous
dealers permitted to sell brandy in small quantities made
conditions infinitely worse. Ilad, however, the efforts of
the Gothenburg company also during the first ten years
of its existence not met with evident success, it remains
to explain why it was strongly upheld in the face of a
bitter opposition, and why at the end of that time, other
cities — for instance, Stockholm — established companies
on the same lines.
A table follows, giving the quantity of liquor sold by
the company alone, the prices charged and the percentage
of alcohol of refined brandy : —
Sales of Sqiirituous Liquors, etc., from 1854-55 to 1801-92.
Quarts of Spirituous Jmquors Sold.
Refined Brandy.
brandy of all kinds.
Eigher-
price
of —
Per
Years.
In Bar
Trade.
At Retail.
prade
Spirits in
Bar
Trade.
Total.
Over
Bar,
per
Glass.
At
Retail,
per
Quart.
Cent.
of
Alco¬
hol.
1874-75, .
680,539.9
916,549.6
143,021.4
1,740,110.9
.01}
$0.25}
-
1875-76, .
711,225.4
988,574.6
145,996.1
1,845,796.0
.011
.2 54
-
1876-77, .
802,381.1
858,992.7
139,6S3.0
1,801,056.7
.ou
•25}
-
1877-78, .
818,504.8
776,771.2
126,554.6
1,721,830.6
•01 5
• — 5
-
1878-79, .
777,312.0
658,680.2
111,285.3
1,547,277.5
•Oil
.25}
-
1879 80, .
701,864.2
658,085.8
101,942.1
1,461,892.1
.02
.25}
-
18S0-81, .
665,493.5
682,030.4
100,403.8
1,447,927.7
.02
.25}
-
1881-82, .
595,962.1
658,675.9
103,456.1
1,358,094.3
.02
.25}
-
18S2-83, .
597,883.4
778,356.8
107,8S6.1
1,484,126.3
.02
.25}
-
1883-84, .
623,621.2
822,833.0
106,808.4
1,553,262.6
.02
.25}
46.5
1884-85, .
645,160.3
858,946.5
108,239.9
1,611,915.3
.02
.25}
-
1885-86, .
668,385.2
887,651.0
99,465.9
1,655,502.1
.02
.25}
-
1886-87, .
636,553.4
893,957.5
102,496.4
1,633,007.4
.02
■25}
-
1887-88, .
641,537.4
926,987.6
102,039.8
1,670,564.8
.024
.26}
45.0
1888-89, .
554,816.7
986,295.8
115,957.7
1,657,070.2
• 02|
.27}
44.0
1889-90, .
564,368.9
1,025,180.1
125,119.3
1,714,668.4
.02}
.27}
44.0
1890-91, .
597,569.5
897,007.7
139,111.0
1,633,688.1
.02}
.29}
44.0
1891-92, .
548,071.8
859,400.7
115,778.7
1,523,251.2
.02}
.29}
44.0
1894.]
HOUSE —No. 192.
51
Special attention is called'to the decrease of the bar
trade, which is one of the most encouraging; effects of the
' O O
company system. The policy of raising the price per
glass of brandy sold over the bar, and reducing the per¬
centage of alcohol, merits unreserved praise.
III. Reduced Xumber of Convictions for Drunkenness.
In order to judge fairly the statistics of drunkenness,
as shown by the number of convictions for that offence,
it is, in the first place, imperative to know the laAV under
which arrests may be made. The general law on intoxica¬
tion in Sweden dates from 1841. It provides that every
person who, through abuse of strong drink, becomes in¬
toxicated to such an extent that it is noticeable from his
actions or befuddled state of mind that he is drunk, and
is found in this condition on a highway, street or other
public place, shall be arrested and confined, if he is not
cared for by any one. A fine of $3.50 may be imposed
each time, but on a fourth conviction the offender is pun¬
ished by being deprived of the privilege of taking part in
any election or being chosen to fill any position requiring
the confidence of his fellow citizens. Two-thirds of the
fines go to the public prosecutor, and the rest to the poor
fund of the district. However severe the Swedish law
may be, its interpretation naturally varies, being left to
the discretion of the police. The practice of giving the
prosecutor a large share of the fines would seem to invite
a strict enforcement of the law, but in reality is of small
Consequence. It should further be remembered that a
large percentage of the cases of drunkenness represented
in the police returns are more or less accidental, due to
exceptional events, for instance, festive gatherings, for
which the Swedes are so noted. This inference is drawn
from the fact that, for example, in Gothenburg, out of
3,204 persons arrested for drunkenness in 1892, no less
than 2,521 were sentenced only once. (See table, page
54.)
A further circumstance must be considered. Every
case of drunkenness is dealt with by the community in
which it occurs. As prohibition largely prevails in the
52 THE NORWEGIAN SYSTEM, ETC. [Feb.
country districts, the peasants and others naturally pur¬
chase their liquor while in town for the purpose of trad¬
ing, etc. That they avail themselves of the opportunity
not only for laying in stores for home consumption but
also for getting drunk no one will dispute who has
witnessed the scenes in a Swedish city on a great market
day. Thus, and in other ways, it happens that a large
number of arrests which ought properly to be charged to
the country districts is charged to the town. Dr.
Wieselgren says that, of the persons arrested in Gothen¬
burg, one-third belong to suburban villages and the
country communities.
The manner in which the police deal with intoxicated
individuals is of course an important factor determining
the value of statistics of drunkenness. All testimony of
police officials goes to show that drunkenness is much
more severely dealt with to-day than formerly. Not only
has the efficiency of the police been augmented, but the
vice of intemperance is more abhorred than ever before
throughout the kingdom. The present higher standard
is no doubt in large part due to the efforts of total-
abstinence societies, which also insist upon a rigorous
enforcement of the law, but perhaps not much less to the
advanced ground taken by the leading brandy companies.
Still another circumstance remains to be considered.
The limited quantity allowed to be sold to the individual
customer since the company assumed control of the bar
trade, and the absolute prohibition against selling liquor
to an intoxicated person, have caused the number of
arrests to increase in a considerable measure. Refusals
are often regarded as insults by those intoxicated, which
they resent with abusive language or forcible attempts at
securing liquor. The manager has in such case no choice,
but must call in the police. Under the old regime in¬
stances of this kind were rare ; under the company system
they arc common, for the managers know very well that
non-compliance with instructions may result in instant
dismissal.
In the light of these remarks the subjoined table should
be studied : —
1894.]
HOUSE — No. 192.
53
Cases of Drunkenness and Delirium Tremens in Gothenburg
from 1855-91.
YEARS.
Population.
Persons f
Drunke
Total.
ined for
nnes8.
Per 1,000
Inhabit¬
ants.
Cases
of
Delirium
Tremens.
1855,
24,804
3,431
138
-
1856
33,424
2,658
80
-
1864
42,433
2,161
51
-
1865,
45,750
2,070
45
118
1866,
47,332
1,424
30
107
1867,
47,898
1,375
29
82
1868,
50,438
1,320
26
54
1869,
52,526
1,445
28
75
1870,
53,822
1,416
26
90
1871
55,110
1,531
28
86
1872
55,986
1,581
28
123
1873,
1,827
32
159
1874
58,307
2,234
38
101
1875,
59,986
2,490
42
80
1876
61,505
2,410
39
89
1877,
63,391
2,542
40
89
1878
65,697
2,114
32
64
1879,
66,844
2,059
31
42
1880,
68,477
2,101
31
44
1881,
71,533
2,282
32
53
1882
72,555
2,096
29
59
1883,
77,653
2,364
30
52
18S4
80,811
2,375
29
55
1885,
84,450
2,475
29
84
1886,
88,230
2,776
31
56
1887,
91,396
2,921
32
62
18SS,
94,370
2,922
31
30
1889,
97,677
3,282
34
42
1890,
101,502
4,010
40
44
1891
104,215
4,624
44
31
1892,
106,356
4,563
42
-
54 THE NORWEGIAN SYSTEM, ETC. [Feb.
The proportion of individuals to the number of con¬
victions in Gothenburg for 181)2 is shown below : —
Persons.
Total
Number
of
Offeoces.
NUMBER OF TIMES FINED.
Men.
Women.
Total.
2,401
120
2,521
2,521
2,
396
6
401
802
3
127
3
130
390
4,
61
1
62
248
5,
28
-
28
140
6,
18
-
18
108
7
17
1
18
126
8,
19
-
19
152
9,
2
-
2
18
10,
2
-
2
20
n
1
-
1
11
12,
1
-
1
12
15
-
1
1
15
Totals,
3,073
131
3,204
4,563
On the whole, the table presents a favorable showing.
The decrease in the number of arrests with the advent of
the company system is most notable. The cases of
delirium tremens show a specially marked decline.
It cannot be definitely determined what has caused the
fluctuations during the different years except perhaps in
1891, when two expositions and large meetings drew
thousands of strangers to the city. Doubtless general
prosperity affects the consumption of liquor, which may
lead to more drunkenness. On the other hand, it seems
generally admitted that the number of arrestjs for drunken¬
ness in a large city is as large, if not larger, during a
period of industrial depression.
Although, from information received through the chief
of police, Mr. Elliot, the arrests for 1893 will show a
decrease as compared with 1892, the fact remains that the
number for the last year for which accurate statistics are
obtainable is exactly the same as in 1875, when the
1894.]
HOUSE —No. 192.
55
company had come into possession of all the retail
licenses.
From our table the conclusion that the company system
cannot be accredited with promoting public sobriety in a
measurable degree seems near at hand. Yet how false is
such a conclusion is made perfectly plain by the following
table, in which the authorities have analyzed the arrests
for drunkenness, in order to ascertain at which place the
intoxicated person drank last: —
Analysis of Arrests for Drunkenness in Gothenburg, 1875-89.
Number who drank last at —
YEARS.
Bars of
the Com¬
pany.
1.
Beer
Saloons.
2.
Home or
from a
Bottle
Purchase.
3.
Place not
reported.
4.
1875, .
890
130
335
1,026
1876, .
1,067
263
357
856
3877, .
1,142
305
406
867
1878, .
1,023
269
327
845
1879, .
1,070
301
234
713
1880, .
851
397
303
770
1881, .
914
445
292
897
1882, .
839
442
292
805
1883, .
899
523
370
801
1884, .
773
419
355
1,114
1885, .
727
483
330
1,183
1886, .
798
582
358
1,240
1887, .
840
614
464
1,174
18SS, .
688
679
549
1,215
18S9, .
765
753
574
1,371
1890, .
1,061
763
960
1,590
1891,
1,197
799
1,202
1,734
1892, .
1,005
819
1,231
1,765
Two facts are made plain by the foregoing table:
first, that the cases of drunkenness directly traceable to
the bars of the company have greatly declined in number ;
and, secondly, that the insobriety still prevalent in
Gothenburg is chiefly attributable to the almost unre¬
stricted sale of strong malt liquors. The latter conclusion
50 THE NORWEGIAN SYSTEM, ETC. [Feb.
is unconditionally indorsed by total-abstinence people,
who now regard beer as their chief enemy. It must be
remarked that ihe figures in column 1 are probably much
too high The individuals arrested oftentimes manifest
anything but a sweet will toward the managers, and seek
to injure them by claiming that they got drunk from
liquor served at the company bars.
Statistics for 1803 will, it is said, further confirm both
the above statements and the well-founded assertion that
the growing sales of beer is a proof of the effectiveness
of the company system in reducing the consumption
of brandy.
To avoid a false inference from column 3, it must be
stated that the ease with which beer can be purchased not
only at the 128 beer shops, but by the bottle from
hundreds of small merchants, accounts for the many
arrests under this head. The drunkenness among women,
as yet very insignificant, though perhaps increasing, is,
by those best informed, attributed to the consumption of
beer in their homes. Women very rarely enter a dram¬
shop.
Unquestionably, then, the free traffic in beer undoes
much of the good accomplished by the company. The
question at once arises, AYhy does not the company if elude
the sale of malt liquors in its monopoly? A partial reply
is found in the history of beer-drinking in Sweden. At
the time the company system was first introduced the eon-
sumption of beer was very slight. Malt beverages were
not regarded as productive of intoxication. Disregarding
the experience of the ancients, as Dr. Wieselgren says,
even ardent apostles of temperance advocated the use of
beer, confidently believing that it would counteract the
abuse of brandy. Breweries were actually established in
the "interest of sobriety," and even as late as in 1880
this view was championed in the Swedish " Riksdag."
The common policy of permitting managers of brandy
bars to sell beers on their own account — a practice which
the Gothenburg company has found it well to abolish — is
thus explained. In time it has become more than ap¬
parent that the restrictions imposed on the brandy traffic
1894.]
HOUSE —Xo. 192.
57
have been a means of fostering: the manufacture and sale
of beer up to a point where its dangerous consequences
are beginning to counterbalance the good effects of the-
brandy monopoly. Seeing this clearly, the auditors of
the Gothenburg company's accounts express themselves as
follows in the report for 1892 : —
It is undeniably in full harmony with the purpose of the com¬
pany, as well as with the demands of the public and the interests
of temperance, that the company should take charge of this
traffic (in beer). At all events, in our opinion, such a measure
on the part of the company would be a first step toward the
desired end that all bar trade in the stronger malt beverages
containing alcohol, such as beer and porter, might be carried
on under the same surveillance and control as is now provided
for the bar trade in spirituous liquors.
To this the board of directors reply : —
The question has of late been considered on several occasions,
but, owing to the many difficulties connected with the under¬
taking, it has not as yet been definitely decided upon.
The principal difficulty is doubtless the clashing with
private interests, which must follow from any attempt to
gain control of the beer traffic . Besides, the directors have
wisely proceeded on the basis that restrictive measures
in advance of a matured public opinion tend to work
mischief. The charge that both the directors of the com-
pany and the people in general have become indifferent
to the evils of the sale of intoxicants, owing to the great
pecuniary gains, is baseless, and has been repudiated by
the Swedish temperance party itself.
To state briefly the conclusions arrived at through an
impartial investigation : The company enterprise in Goth¬
enburg is in the strictest sense of the word an honest one.
It has, within the limits set, succeeded in rendering both
those engaged in the immediate serving of spirits and
those controlling the traffic disinterested. The traffic has
been restricted to meet what has been regarded as the
legitimate demands of the people, and subjected to a sen¬
sible control. Private profit-making has been abolished,
and the business it; conducted for the benefit of the com-
58 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
munity. The actual results obtained have been stated as
far as can be done statistically. That they are not even
more encouraging is not owing to any inherent defect of
the principle underlying the company system, but to the
manner of its application ; in other words, to the fact that
the scope of the Gothenburg company has been too nar¬
row. Leaving aside for the moment the main object of
the originators of the system, from a temperance point of
view it will be urged against the Gothenburg company
that it has not extended its control over the liquor traffic
far enough. At the same time, it is not forgotten that the
support of public opinion is necessary to secure stability
of any reform ; nor does it by any means follow that, be¬
cause the company system has been tried in Gothenburg
for about a generation, it must necessarily have reached a
full development, and hence the height of its usefulness.
Thus it may safely be predicted that the company will
eventually assume charge of the entire bar trade in beer.
In fact, a first step toward this end has already been
taken.
The appended extract from the annual report for 1892
gives an idea of the general transactions of the com¬
pany : _
During the past year there have been sold through the me¬
dium of the company : —
In the retail trade, 8-19,401 quarts of brandy of all kinds ; in
the bar trade, 548,072 ; total, 1,407,473 ; also, in the bar trade,
115,779 quarts of higher-grade liquors and 4,414 quarts of
various kinds of wines.
These sales, which fall short of those of the preceding year
by 87,105 quarts of brandy and alcohol, 23,332 quarts of
higher-grade liquors and 1,235 quarts of wine, have resulted in
the following gross receipts : —
From the bar trade Si57,162 49
From the retail trade, 86,659 46
Total, |213,821 95
From this must be deducted for cost of management,
state and municipal taxes, repairs on buildings of com¬
pany, etc. 74,044 33
Leaving a net profit of
1169,777 62
1894.]
HOUSE —No. 192.
59
Which profit, increased by fees for retail licenses trans¬
ferred,
. 816,321 20
1,162 75
210 11
Interest on deposits
Rent of property No. 10, Litt. C C No. 6, in 11th ward, .
Gives a total of
f 187,501 98
Of this there has been paid for regular brandy taxes
(excise tax laid on estimated consumption), . . 78,161 90
Leaving as reserve profit, 8109,310 08
The above profit, $187,501.98, after deducting $3,118,30 ap¬
propriated by the company for reading-rooms for workmen, has
been turned over for proper distribution.
According to approximate calculation, $96,856.60 of the net
profit results from the bar trade and $72,921.02 from the retail
trade.
When these sums are divided according to the quantity of
liquor sold, it will be seen that the company, not including the
$16,321.20 paid in by the wine dealers and the dividends men¬
tioned above, have paid into the treasury about 14| cents for
every quart of liquor sold over the bar and about 8£ cents for
every quart sold at retail.
The motive which led to the adoption of the company
principle in the capital of Sweden was essentially the
same as that which actuated the originators of the parent
company in Gothenburg,—to combat the great intem¬
perance among the working classes. Many difficulties
attended the undertaking. The forces opposing the sys¬
tem made Stockholm the basis of their operations, the
evil influences of which were long felt. And quite as
embarrassing was the existence of no less than 367
permanent brandy licenses, of which 135 were held by
special privilege. The only manner of obtaining control of
the latter was to guarantee the holders a satisfactory an¬
nual compensation for their surrender. This was efl'eeted
through private arrangement with the individual licensees,
the attempt at fixing a uniform rate of compensation
having failed. The life annuities thus granted vary from
$134 to $536. During the first year of its existence the
sum paid out in annuities amounted to $33,258.80. Some
Tjie Stockholm Company.
GO TIIE NORWEGIAN SYSTEM, ETC. [Feb.
differences between the by-laws of the Stockholm company
and those of the Gothenburg company deserve attention.
In the former place the members of the board of directors
must be stockholders. Being a province by itself, the
city of Stockholm is represented on this board by a
director, receiving the same salary as the two non¬
executive directors, but having no vote. It is his duty
to guard the interests of the city, and see that the com¬
pany, true to its purpose, conducts the liquor traffic
" with exclusive consideration of the welfare of the munici¬
pality." It is further required that a reserve fund shall
be set aside, corresponding to at least five per cent, of the
capital stock, and no distribution of the surplus earnings
may take place until this has been done. The stock¬
holders vote according to the number of shares held.
How the Traffic is Conducted.
According to the report of the board of directors for
1892, the company holds 90 retail licenses, using 27 itself
and transferring 51 to private persons for the sale of
liquors of a higher grade; i. e., all others than common
brandy and similar beverages, to be consumed off the
premises. The remaining 12 retail licenses were not
used. Of the 170 bar-trade licenses at the disposal of
the company, G3 were used for serving spirituous liquors
over the bar at its own places, and 80 were transferred to
private individuals, 4 to clubs, 9 for only a part of the year,
the rest to hotels, restaurants and cafes (schweilzerei).
Thirty-seven bar-trade licenses were not used.
The sale of brandy at the places operated bj' the com¬
pany is placed under restrictions similar to those in force
in Gothenburg. The contract* made with managers of
bars differs from the one previously considered in two
very essential respects. The managers in Stockholm are
still permitted to sell malt liquors of all kinds for their
own profit. This is the common practice in Sweden.
The evil consequences possible may easily be imagined.
An interest in the sale of intoxicants is thus given the
* See " Fifth Special Report of the Commissioner of Labor," page U7.
1894.]
HOUSE —No. 192.
6]
manager, and he may he tempted, not only to push the
sale of his own goods, but also to deal more leniently with
persons on the verge of drunkenness, for the sake of gain.
These dangers are partly obviated by the higher prices for
beer charged by the company than elsewhere. Yet in¬
stances of abuse are not unknown. Secondly, there is
no limit set to the quantity of liquor which may be served
to the individual customer. He may order several drams or
bottles of beer in succession. Where hundreds are being;
served, it is difficult for the waiter to remember just how
often the individual has had his glass tilled. Absolute
prohibition against selling several drams in succession to
the same person is the only safe rule. On week-days,
from 12 m. to 2 p.m. no spirituous liquors may be sold to
be taken away, or served to others than those ordering
and paying for at least half a portion of solid food or a
whole portion of soup. That this regulation tends to
discourage workingmen from drinking during the noon¬
day rest does not appear.
Frequent and critical inspection of the bar-trade places,
which are arranged on the Gothenburg plan, yielded con¬
vincing proof that they are managed in conformity to
instructions. While the system of inspection is less rigor¬
ous, order and decency prevail everywhere. Naturally,
as the rules permit it, more liquor is consumed. Of
visible drunkenness there was none. The refusals to
intoxicated persons are politely but firmly made, and
in most cases taken without remonstrance. It seems that
the drinking public have learned that the managers are
not to be trilled with.
In regard to the employment of women and turning the
brandy shops into restaurants, the same strictures must
be made as for Gothenburg. Mention has been made of
the fact that the Stockholm company transfers a number
of bar-trade licenses to keepers of hotels and restaurants,
as well as clubs. The transfer is made on the payment
of a stated sum, but does not carry with it the stipulation
that the sub-licensee shall purchase his goods from the
company. The other principal conditions contained in
the contract are : (1) that the license shall not be used
62 TUP: NORWEGIAN SYSTEM, ETC. [Feb.
for such serving of brandy as may be classed under the
public-house business; and (2) that it shall not be used
for selling brandy and other beverages to be taken away
that are retailed at less than 48^ cents per quart, and con¬
tain 28 per cent, or more of alcohol at 15° centigrade.
For the rest, the sale of spirits at the places in question is
subject only to the restrictions imposed by the general
law.
One can not help regarding this system of sub-licensing
as a serious evil. Yet the plea that the company, accord¬
ing to its express policy, seeks to control only that part
of the consumption which falls to certain classes of
society, is not forgotten. But the company thwarts its
own object through sub-licensing, unless those classes be
narrowed down to embrace simply day laborers, the
poorest order of mechanics, etc. Even some of the most
"respectable" of the sub-licensed institutions — large
amusement resorts — are constantly patronized by people
whose social and economic conditions by no means insure
their ability of taking care of themselves, or that they can
afford the indulgence. In the very resorts under con¬
sideration more persons were observed on whom the
effects of immoderate drinking were plainly visible than
in the common saloons. That the sub-licensees can be
accused of abusing their privileges no one will assert.
Due care is exercised by the licensing authorities, and
the provisions of the law fully complied with. Still,
while every clause of the contract may be lived up to,
the abuse of liquor indicated is not only possible, but a
matter of fact.
The 51 licenses for retail sale of higher-grade spirituous
liquors transferred to private firms are held on the same
conditions as those in Gothenburg, and the remarks made
about the latter are equally true as far as Stockholm is
concerned.
Effects of the System.
The criticism passed on the methods of the company
cannot obscure the fact that great results have been
attained, beneficial to the community in every respect.
1894.]
HOUSE —No. 192.
G3
Pursuing our order of inquiry, we first examine what
has been done by way of—
I. Iiecl act ion of Licenses.
The policy of reducing the number of places where
intoxicating liquors are sold has been steadfastly adhered
to. This is especially true of the shops directly controlled
by the company. What has been accomplished in this
respect is exhibited in the following table, giving the
number of all licenses and inhabitants to each license
from 1877 to 1892: —
Licenses and Population in Stockholm, 1877-92.
YEARS.
Estimated
Population
of
Stockholm.
Bar trade
Licenses used.
Retail Licenses
used.
Number
Inhabitants
to Each
License.
Number.
Inhabitants
to Each
License.
1877,
165,677
176
941
77
2,151
1878
169,429
176
962
73
2,320
1879
173,433
173
1,002
63
2,752
1880
174,775
172
1,016
67
2,608
1881,
176,745
166
1,064
71
2,489
1882,
185,325
157
1,180
73
2,538
1883
194,469
154
1,262
75
2,592
1884,
205,129
149
1,403
76
2,699
1885
215,688
151
1,428
76
2,853
1886
223,063
150
1,487
78
2,859
1887
227,964
153
1,4S9
78
2,921
1888,
234,990
150
1,566
78
3,012
1889
243,500
151
1,612
78
3,121
1890,
246,454
148
1,665
78
3,158
1891,
250,528
143
1,751
78
3,211
1892,
256,608
143
1,787
80
3,207
Since 1877, when the company began operations, the
number of bar-trade places has been diminished by 23,
concurrently with an increase of population of over
90,000. In other words, the number of inhabitants to
each place where liquor is served has just about doubled.
Our table includes all sub-licenses. Taking the ordinary
04 THE NORWEGIAN SYSTEM, ETC. [Feb.
saloons alone, we find that there are to-day over 11,000
inhabitants to each one. This is certainly strong evidence
of the company's sincere purpose to regulate the liquor
traffic for tlie good of the municipality.
Complete control and as little temptation as possible are
the objects sought with regard to the locations of the bars.
In the populous tenement districts none are to be found.
The governor-general of Stockholm is empowered to
grant a number of temporary licenses. In 181)1, 61 such
were issued, corresponding to 33 whole-year licenses; but
as nearly all were conceded for use on board steamers,
and the sale of liquor on these is restricted to the time the
boat is under way, it is clear that they cannot affect con¬
ditions in Stockholm to any extent, and hence do not
enter into our present consideration. Yet it deserves our
attention that considerable effort has been made, espe¬
cial! \- by temperance societies, to have the number of these
licenses limited.
II. Reduced Consumption of Liquor.
In seeking to calculate as closely as possible the per
capita consumption for Stockholm, the same method has
been employed as for Gothenburg. To the population of
the city proper has been added that of eight surrounding
parishes, the inhabitants of which purchase their liquors
in Stockholm. The estimate is very conservative, and no
account has been taken of the large floating population.
The sales by private dealers has been figured on the basis
of the excise paid by them. As there is all reason to be¬
lieve that the sum for which they are taxed does not fully
represent their transactions, the quantity of higher-grade
liquors bought from wine merchants by the company has
not been deducted. While it cannot be claimed that the
statistics thus arrived at show the precise consumption,
they approximate it as nearly as possible, and are suffi¬
cient for present purposes.
1894.] HOUSE —No. 192. Go
Consumption of Liquor in Stockholm, 1882-92.
YEARS.
Estimated
Population
of Stock¬
holm and
Surrounding
Districts.
Sold by
Company.
(Quarts.)
Estimated
Sales of
Private
Dealers.
(Quarts.)
Total.
Con¬
sumption
per
Inhabi¬
tant.
1882-83,
240,725
3,913,585.51
1,690,720
5,604,305.51
23.23
1883-84,
250,149
3,710.518.19
1,690,720
5,401,238.19
21.59
1884-85,
261,089
3,947,429.19
1,690,720
5,638,149.19
21.59
1885-86,
271,928
3,788,666.87
1,690,720
5,479,386.87
20.15
1886-87,
279,583
3,775,410.36
1,690,720
5,466,130.36
19.55
1887-88,
284,764
3,645,743.65
1,690,720
5,336,463.65
18.73
1888-89,
292,070
3,574,102.90
1,637,885
5,211,987.90
17.84
1889-90,
300,860
3,722,899.61
1,690,720
5,413,619.61
17.99
1890-91,
304,094
3,643,581.12
1,585,050
5,228,631.12
17.19
1891-92,
308,528
3,573,512.13
1,585,050
5,158,562.13
16.71
Our table shows, on the whole, a fairly uniform decline,
which, it is said, will be even more emphasized by the
figures for 1893. A comparison with the table on page
78, giving the consumption according to provinces,
would seem to show that our estimate is approximately
correct. Unfortunately, figures for earlier years than
1882-83 are not at hand. It will be clear, however, from
the succeeding table, presenting the operations of the com¬
pany alone, from its first beginning, that an addition of
the quantity sold by private dealers during earlier years
would make even more prominent the fact that a steady
and continuous diminution of consumption has been
effected under the company system.
(56 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
Quantity of Liquor sold by the Company per Inhabitant from
Oct. 1, 1877, to Sept. 30, 1892.
Quarts per Inhabitant.
Quarts per Inhabitant.
Quarts of
Liquor sold.
At Bar-
trade
Places.
At
Be tail
Places.
Total.
Quarts of
Liquor sold
At Bar-
trade
Places.
At
Retail
Places
Total.
4,308,789.60
14.61
13.46
28.07
3,788,666.87
8.02
9.92
17.94
4,082,591.47
13.88
11.36
25.24
3,775,410.36
7.79
9.62
17.41
4,104,705.20
13.47
11.71
25.18
3,645,743.65
7.51
8.94
16.45
4,145,625.09
13.82
10.88
24.70
3,574,102.90
6.99
8.68
15.67
4,072,594.04
13.10
10.21
23.31
3,722,899.61
6.86
8.88
15.74
3,913,585.51
9.82
11.64
21.46
3,643,581.12
6.68
8.18
14.86
3,710,518.19
9.01
10.43
19.44
3,573,512.13
6.49
7.91
14.40
3,947,420.19
9.04
10.62
19.66
The decline in sales over the bar is especially notewor¬
thy, and shows the effectiveness of the company system
in dealing with the common saloon traffic. The retail
sales would, perhaps, show a far smaller diminution but
for the existence of competing wine merchants.
IH. Reduced Number of Convictions for Drunkenness.
The directors of the Stockholm company invariably
preface the statistics of drunkenness, as shown by police
returns in their annual reports, with the remark that such
statistics do not furnish a perfectly safe criterion of the
increase or decrease of sobriety.
In addition to the general remarks made on this subject,
special attention should be directed to the establishment,
in 187G, the year before the company began its opera¬
tions, of the so-called "central police," whose duty it is
to visit streets and places not regularly patrolled. That
hi would naturally result in augmenting the arrests for
drunkenness is easily comprehended. A direct confirma¬
tion of this statement is found in the fact that during the
period of 1870—7G the number of arrests to each case of
delirium tremens averaged G.GO, while from 1877 to
to 1881 there were 12.91 arrests to each case of delirium
tremens. That the frequency of this disease in propor-
1894.J
HOUSE —No. 192.
fi 7
tion to the number of arrests should actually have de¬
creased to such an extent may be set down as highly im¬
probable, if not impossible.
The following table gives the cases of delirium tremens
and convictions for drunkenness in Stockholm from 1876-
77 to 1891-92: —
Convictions for Drunkenness and Cases of Delirium, Tremens in
Stockholm, 1876-91.
YEARS.
Estimated
Population.
Cases of
Delirium
Tremeus.
Convic¬
tions for
Drunken¬
ness.
Cases of
Delirium
Tremens
per 1,000
inhabitants.
Convictions
for Drunk¬
enness
per 1,000
Inhabitants.
1876,
157,215
778
7,245
4.3
46.0
1877,
165,677
670
6,102
4.0
36.8
1878,
169,429
427
5,883
2.5
34.7
1879,
173,433
370
6,123
2.1
35.3
1880,
174,775
404
6,341
2.3
36.2
1881,
176,745
443
6,784
2.5
38.3
1882,
185,325
480
6,173
2.5
33.3
1883,
194,469
412
6,684
2.1
34.3
18S4,
205,129
561
4,796
2.7
23.3*
1885,
215,688
547
5,943
2.5
27.5*
1886,
223,063
503
6,925
2.2
31
1887,
227,964
433
7,536
1.8
33
1888,
234,990
399
7,862
1.6
33.4
1889,
243,500
417
8,215
1.7
33.7
1890,
246,454
481
8,350
1.5
33.3
1891,
250,528
473
8,117
1.8
32.3
While the fluctuations during the various years are
considerable, the table presents, on the whole, weighty
evidence of the beneficial influence of the company system.
Especially noteworthy is the decline of 58.1 per cent, in
the cases of delirium tremens, f The convictions for
drunkenness since 1876 have diminished 29.9 per cent.
♦According to the report of the governor-general, the reduction for 1884 and
188-5 is owing to the le9S strict enforcement of the law.
fThat the number of cases of this disease is proportionally so much greater in
Stockholm than in Gothenburg is probably due to the better hospital facilities at
the capital, which drove many patients tl.ither.
68 THE NORWEGIAN SYSTEM, ETC. [Feb.
Interesting, as revealing the fact that about 75.5 per
cent, of the individuals convicted during the years 1889,
1890 and 1^91 were sentenced only one time each, is the
appended table : —
Persons sentenced for Drunkenness in Stockholm and Number
of Times sentenced, 1880, 1890 and 1891.
NUMBER OF TIMES.
Individuals.
NUMBER OF TIMES.
Individuals.
1
11,569
16
4
2,
1,975
17
8
3
714
18
2
4
383
19
3
5
207
20
2
6
142
21,
3
7,
85
22,
2
8
58
23
2
9
39
25
1
10
30
26, . v .
2
11
27
27
2
12
18
35
1
13
9
39
1
14,
13
49,
1
15
9
Total,
15,312
The Karlstad Company.
The obstacles meeting any attempt at an effective con¬
trol of the liquor trade are obviously greater in large
centres. Gothenburg and Stockholm, being the most
populous of Swedish cities, as well as the chief ports,
have to contend with peculiar difficulties in this respect.
To illustrate very briefly the workings of the company
system at its best in a small inland town, the city of
Karlstad, at the head of the province of Vermland, has
been chosen. There the remark of one of the company
officials, " Our first aim is to work in the interest of tem¬
perance," seemed well exemplified.
Although the city is the chief point of distribution for
a population more than three times its own, and thus the
1894.]
HOUSE —No. 192.
69
centre of much activity, two bar-trade places and one
retail shop are deemed sufficient to meet all legitimate
demands of the general public. Two places are sub¬
licensed, on the condition that all liquors be purchased
from the company; one, a hotel, limited to serving bona-
jide guests; the other, a club, limited to serving its mem¬
bers. At neither place does the privilege appear to be
abused. Goods at retail can only be purchased from the
company.
Under the stringent rules governing the bars proper
and the constant inspection, the sale of intoxicants is kept
entirely within the bounds purposed. While the doubt¬
ful practice of giving the manager the profit on malt
liquors is retained, the trade in beers is too insignificant
to make it dangerous. On the whole, it could not but
impress one that both officials and subordinates seemed
imbued with an honest desire to " work in the interest of
temperance." And what has been accomplished? Under
the old regime 9 brandy shops did a flourishing business
in Karlstad, or one bar to about 850 inhabitants. To-day
there are 4 bars (two of them greatly limited), or 1 bar
to about 2,200 inhabitants.
As regards consumption, the following table shows a
very marked decline. The exact quantity sold to other
than the inhabitants of the city is not known, but a con¬
servative estimate places the home consumption at about
one-fourth of the total. Over 90 per cent, of the whole
trade is at retail.
Consumption of Liquor in Karlstad, 1S82-92.
YEARS.
Population.
Quarts of
Liquor sold.
Per In¬
habitant.
1883,
7,850
394,795.0
50.2*
1884,
-
424,930.3
-
7885,
-
401,701.3
-
-
402,861.0
-
-
361,991.7
-
1888,
-
284,648.0
-
1889,
-
262,540.6
-
1890,
-
278,875.6
-
1891
-
266,054.0
-
259,125.0
29.1*
* The local consumption is estimated at about 12 quarts for 1883 and about 7 quarts
for 1892.
70 THE NORWEGIAN SYSTEM, ETC. [Feb.
Extent of the Swedish System.
The general adoption of the company system through¬
out the whole country is direct testimony of the value
placed upon it by the Swedes themselves. At present,
out of 102 towns and villages, 78 have entrusted the
liquor traffic to companies, 12 continue to dispose of
licenses at auction, 2 enjoy no-license; in the remaining
10, privileged licenses still exist. In the country districts
prohibition is generally in force.
It cannot be truthfully said that the model furnished by
the parent company is everywhere adhered to with respect
to the management of the traffic. The difference between
the buying and selling price of liquors is on the whole a
safe indication of how the affairs of a company are con¬
ducted. We find that some of the smallest companies sell
at a very slight advance over the purchasing price. This
means, of course, cheap brandy and increased sales.
Others, again, purchase their goods at a figure so high as
to leave room for suspicion that some one is reaping undue
profits.
in 18 towns and villages a monopoly of the licenses
has been conceded ordinary stock companies, or firms,
rather, consisting of from two to four members. The six
per cent, interest usually paid to shareholders, which at
the present time is too high a rate, has led to some abuse,
a number of companies having a larger capital stock than
needed, and the system has thus, contrary to its principle,
been made the source of private gain.
In some instances the auditors of the accounts of vari¬
ous companies have found it necessary to rebuke the
directors for having bought goods without asking for com¬
peting offers, for allowing themselves too large salaries,
and for such practice as renting the premises needed
for the traffic at exorbitant prices from members of the
company.
The sub-licensing powers granted by the law have led
to some abuse. In 18h2, 34 companies transferred licenses
against the payment of a fixed sum, that is, without
obliging the sub-licensees to purchase their goods from
1894.]
HOUSE — No. 192.
71
the companies, thus making control more difficult. In
one instance all licenses were transferred to firms or pri¬
vate dealers ; in another the one retail license was trans¬
ferred, and three bar-trade licenses, the latter, however,
with the provision that all liquors should be purchased
from the retailer, which virtually resulted in one man
controlling the entire trade.
How many companies grant sub-licenses for bar trade
on the conditions imposed in Gothenburg does not appear
from official publications. Looseness of organization be¬
gets loose methods. From the statements made, we must
expect to find instances of reprehensible practice in other
respects than those mentioned. Thus, while it is the rule
to pay managers of bars a fixed salary, in addition to
allowing them the profit on malt drinks, food, cigars, etc.,
exceptions are not wanting. It has happened that the
employees in question have bought their places with the
stipulation that they should have the privilege of selling
liquors at their own prices. In other cases they have re¬
ceived a percentage on sales, or been permitted to sell at a
slight advance above the prices charged them by the com¬
pany. Such violations of principle have been the especial
sin of small companies As early as 1871 a law deprived
the latter of a monopoly of the retail trade, owing to
abuses. Later the privilege was restored. There is reason
to believe that the conditions of the small companies
would show a more marked improvement from year to
year than is the case under a more effective system of cen¬
tral control.
But the conclusion that, because abuses have taken
place, the company system itself must, on the whole, have
proved a failure in Sweden, is the very opposite of the
truth. In the large majority of cases, and especially in
the more important cities, the companies have conducted
the liquor traffic after tlie pattern furnished by Gothen¬
burg, and in harmony with the original policy. 4\re even
find attempts at advancing beyond the latter, by intro¬
ducing semi-prohibitive measures. Thus a number of
companies have at different times carried on their business
at a loss, principally because of the extraordinary high
72
THE NORWEGIAN SYSTEM, ETC. [Feb.
prices charged for the purpose of diminishing consump¬
tion. The same motive underlies the general rise observ¬
able in the price per quart of the liquor sold by the com¬
panies. To impute the unworthy motive of seeking to
realize greater profits is unreasonable, both because this
can in no way benefit the company, and because experience
shows that the maintenance of comparatively low prices
results in the largest sales.
Transactions of the Companies.
A summary of the operations of the companies is not
only instructive, but necessary for a full comprehension
of the extent of the system in Sweden, and for this
reason is given space before a consideration of the results
obtained.
A table is given below, showing the quantity of liquor
disposed of through the companies, and that sold through
all other agents. The figures can only be approximately
correct, as they are based on the quantity of taxed brandy
withdrawn for consumption. But, on the one hand, two
per cent, of the brandy distilled in the country is exempt
from taxation, and, on the other, the shrinkage through
the process of refining raw brandy is not definitely known.
The one thing absolutely known is the quantity sold by
the companies. By subtracting this from the total quan¬
tity of taxed brandy available for consumption, we get
the quantity disposed of by private dealers at wholesale
and illicitly. Statistics for earlier years than 1886-87 are
not to be had.
YEARS.
Sold by
Percentage
of Sales.
Companies.
All Others.
Com¬
panies.
All
Others.
Quarts.
Quarts.
1886-87,
20,810,074.9
14,540,929.5
58.8
41.2
1887-88
19,710,357.4
14,833,337.4
57.
43.
1888-89,
19,026,365.3
12,220,965.8
61.
39.
1889-90,
20,222,500
15,153,722.5
57.1
42.9
1890-91,
19,606,094.9
13,016,592.6
60.
40.
1891-92,
19,870,198.3
13,154,955.4
60.
40.
1894.]
HOUSE —No. 192.
73
Only a fractional part of the spirits used in the indus¬
trial and mechanical arts is bought from the companies.
This, together with the prevailing methods of sub¬
licensing, explains the fact that the percentage of sales
falling to the companies is smaller than one would expect.
In 1892 the value of the goods owned by the companies
was $4,630,723.16; the expenses were $803,478.08; the
fees received for transferred licenses amounted to $157,-
037.51; the net profits to $1,567,892.73. The profit on
each quart of liquor sold averaged $0.0903 ; the average
expense per quart was $0.0436.
Effects of the Company System in Sweden.
One of the first results following upon the new order
of things was a very marked and encouraging
Reduction of Licensed Places,
which has steadily continued, both in number and in pro¬
portion to the population. That the licensing powers
have acted from a desire for reform, and on the conviction
that the fewer the places where liquor is sold the less
temptation and the better control, is not open to doubt.
4Ve have already seen that the two largest companies re¬
fuse to make use of all the licenses placed in their hands.
The same spirit is observable in most other communities.
The following table shows the number of permanent
licenses used for the sale of liquor in Sweden from 1882
to 1892 * : —
* For licenses and population in the cities of the United States, see Summary.
74 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
Number of Permanent Licenses, 1882-92.
In Towns.
YEARS.
Retail
Licensee.
Bar-trade
Licensee.
Total
Licensee.
Inhabi¬
tants
to Each
License.
1882-83,
230
780
1,016
719
1883-84,
221
788
1,009
743
1884-85,
221
784
1,005
774
1885-86,
214
783
997
807
1886-87,
297*
684
981
850
1S87-88,
294*
674
968
884
1888-89,
292
679
971
901
1889-90,
290
688
958
936
1890-91,
291
671
962
951
1891 92,
265
600
865
1,073
In Country Districts.
YEARS.
Retail
Licensee.
Bar-trade
Licenses.
Total
Licensee.
Inhabi¬
tants to
Each
License.
1882-83, .
68
189
257
14,975
1883-84, .
61
175
236
16,329
1884-85, .
61
173
234
16,431
1885 86, .
59
165
224
17,311
1886-87,.
53
161
214
18,148
00
CO
oo
_Qo
49
163
212
18,297
1888-89, .
50
160
210
18,451
1889 90, .
39
147
1S6
20,728
1890-91, .
37
141
178
21,740
1891-92, .
35
137
172
22,526
Admitting that temperance is promoted by taking away
both opportunities and temptation to drink, the company
* The large increase of retail licenses, with a corresponding decrease of bar-
trade licenses, is due to the fact that previous to 1887 tlie Stockholm company
held 10 retail licenses and 250 bar-trade licenses, which in that year were turned
into 90 retail licenses and 170 har-trade licenses. The Stockholm company made
a practice of transferring a number of bar-trade licenses to private individuals
for a retail trade. This accounts for the apparent disagreement of this table with
the one on page 63. As it also presents a different aspect from those elsewhere
published, it is due to state that the villages having companies are now reckoned
with the towns, being formerly counted along with the country districts.
1894.]
HOUSE —No. 192.
75
system must be accredited with having accomplished much
good in Sweden. Our table shows that, taking only the
last ten years, the number of bar-trade licenses in towns
has been reduced by not far from one-fourth. The retail
licenses have also diminished in proportion to the popula¬
tion, though not to the same extent for the reasons
adduced above. During the period under consideration
the number of inhabitants to both kinds of licenses has in¬
creased 49.2 per cent. The results in the country dis¬
tricts are naturally even more gratifying. Here the
number of bar-trade licenses has declined about 27.5 per
cent, and the retail licenses 48.5 per cent., while the num¬
ber of inhabitants to both classes of licenses has advanced.
With regard to temporary licenses, statistics show but a
slight decrease in the towns, namely, from 290 in 1882 to
2G6 in 1892. But, as almost all temporary licenses is¬
sued by municipalities are conceded to steamboats, it is
only to be expected that they should increase rather than
decrease with the extension of commerce. On the other
hand, in the country districts the temporary licenses have
been reduced from 171 in 1882 to 88 in 1892. A law
passed in 188G limited such privileges, and the most
marked decline dates from that year.
The steady advance of the company system and the
concurrent disappearance of the publican who sells liquor
for private gain are best illustrated in the appended table,
giving the proportion between the number of brandy
licenses granted companies and those bid in at auction or
held by burgess' rights : —
76
THE NORWEGIAN SYSTEM, ETC. [Feb.
Number of Permanent Licenses utilized to sell Brandy in
Sweden from 1882 to 1892.
In Towns.
YEARS.
Conceded
Com¬
panies.
Bid in
at
Auction.
Privi¬
leged.
Total.
1882-83
876
118
23
1,016
1883-84
862
124
23
1,009
1884-85
853
133
19
1,005
1885-86
912
69
16
997
1886-87,
914
52
15
981
1887-88
904
51
13
968
1888-89,
911
47
13
971
1889 90,
902
43
13
958
1890-91,
905
44
13
962
1891-92
811
42
12
865
In Country Districts.
YEARS.
Conceded
Com¬
panies.
Bid in
ut
Auction.
Privi¬
leged.
Total.
1882-83,
-
104
153
257
1883-84
-
93
143
236
1884-85,
-
93
141
234
1885-86
-
92
132
224
1886-87,
-
86
128
214
1887-88,
-
84
128
212
1888-89
-
84
126
210
1889-90
-
70
116
186
1890-91,
-
67
111
178
3891-92,
-
63
109
172
The number of private liquor dealers in the towns has
thus declined by more than one-third in the ten years
from 1882 to 1892. Similar changes are observable in the
country districts, where the licenses held by private parties
have decreased from 104 in 1882 to 63 in 1892, or 39.4
per cent. But for the existence of licensees holding their
privileges by burgess' rights, total prohibition would soon
prevail in the country districts. However, as their num-
1894.]
HOUSE —No. 192.
77
ber decreases year by year, and can never be reinforced,
it is only a question of time when the liquor traffic shall
have entirely disappeared from these parts of the king¬
dom. The few privileged licensees still remaining in the
towns need hardly enter into the question when the whole
country is considered. They are only of local signifi¬
cance.
Reduced Consumption of Liquor.
In presenting statistics of consumption per inhabitant
for the whole country, it may not be superfluous to re¬
mark that the total consumption is reckoned to lie equal
to the total quantity available for consumption. This is
at least approximately true. How the latter total is as¬
certained has been shown on page 72. The computation
is made on the basis of 50 per cent, of alcohol.
Consumption of Brandy in Sweden, 1874-92.
YEARS.
Quarts
per
Inhabitant.
YEARS.
Quarts
per
Inhabitant.
1874
14.2
1884,
8.5
1875,
12.9
1885
8.6
1876,
13.1
1886,
8.2
1877,
11.2
1887
7.3
1878
11.0
1888,
7.0
1879,
9.2
1889
6.5
1880,
8.5
1890,
7.3
1881,
9.4
1891
6.7
1882,
8.4
1 1892,
6.8
1883
7.1
The statistics of consumption for Sweden are more
easily comprehended when compared with those for other
countries. During the five-year period, 1881-85, the
average consumption of brandy, of 50 per cent, alcohol,
per capita, was in —
Quarts.
Denmark, 18.8
Belgium, 9.9
Netherlands, 9.9
Switzerland, 9.7
78 THE NORWEGIAN SYSTEM, ETC. [Feb.
Russia, ....
Germany,
France, ....
Austria Hungary, .
Great Britain and Ireland,
United States, .
Finland, ....
Quarts.
8.8
8.6
8.0
7.3
5.7
5.4
4.6
The figures for Sweden have naturally only a relative
value. Only a fraction of the population can be classed
as brandy drinkers, and how greatly the consumption of
liquor varies in the different parts of the country is made
plain from the following table : —
Consumption of Brandy in Sweden, by Provinces, 1892.
PROVINCES.
Population.
Total
Consumption
I Quarts).
Consump¬
tion per
Inhabitant
(Quarts).
Stockholm, city and province,
403,878
5,820,315.2
14.4
121,584
774,317.0
6.3
Sbdermnnland,
155,775
975,443.9
6.2
Ostergotland
266,645
1,591,422.9
5.9
Jonkoping,
193,384
501,788.7
2.5
Kronoberg,
159,844
414,574.0
2.6
Kalraar,
231,390
971,914.6
4.1
Gotland
51,168
203,000.5
3.9
Blenkinge
142,508
846,399.7
5.9
Kristianstad,
220,711
512,148.6
2.3
Malmbhus,
370,617
2,484,336.5
6.6
Halland,
136,318
867,009.6
6.3
Gothenburg and Bohus
300,461
2,700,411.6
8.9
Elfsborg
274,051
1,028,182.8
3.7
Haraborg,
245,585
1,199,488.7
4.8
Vermland
253,309
864,666.9
3.4
Orebro
183,394
768,906.6
4.1
Vestermanland,
137,892
1,053,810.9
7.6
Kopparberg,
199,595
567,953.0
2.8
Gefleborg, .......
209,502
1,088,757.1
5.1
Vesternorrland,
211,803
1,075,225.0
5.0
Jemteiand
101,059
251,879.2
2.4
Vesterbotten,
125,636
251 630.8
2.0
Norrbotten
106,642
264,533.2
2.4
1894.]
HOUSE —No. 192.
79
The general statistics adduced show conclusively that,
concurrently with the extension of the company system
and in spite of its narrow scope, the consumption of
brandy in Sweden has declined in a very encouraging de¬
gree. Just how far this is due to other causes than a
stringent control of the liquor traffic is not demonstrable.
A remarkable instance of how strongly the indulgence in
spirits is affected by religious revivals was offered not
long after the passage of the law of 1855, and previous to
the birth of the company system. When the movement
originated by the preacher Waldenstrom was at its height,
the consumption of liquor per inhabitant had been
brought down from about 23 quarts to 9 quarts, the low¬
est figure reached under the company system before 1880.
But, like all similar movements, its effects were short¬
lived, and the country was soon again well-nigh deluged
with brandy. To-day the religious life in Sweden is not
so vigorous as to warrant the belief that it alone can stem
the tide of intemperance. No more can this be said of
the total-abstinence and temperance societies, numbering
300,000 members, half of whom, probably, are women and
children. Yet it is equally undeniable that these societies
have helped materially to check intemperance. Unfortu¬
nately, they number few adherents among the more influ¬
ential members of society, a circumstance which seriously
hampers their influence.
The growth of enlightenment and culture must of
course be reckoned a potent factor in promoting temper¬
ance. Still, neither the spread of education, nor any of
the other influences mentioned, sufficiently explains the bet¬
ter conditions obtaining in Sweden to-day^ as a compari¬
son with other countries must show. Remembering that
the present salutary liquor legislation is mainly due to the
efforts of those advocating the company system, and see¬
ing that as the latter has been extended and its methods
improved the consumption of brandy has gradually de¬
creased, there is safe ground for the conclusion that this
would not have been the case under the old regime. The
corroborative testimony on this point furnished by distill¬
ers and rectifiers of spirits deserves attention. Some of
80 THE NORWEGIAN SYSTEM, ETC. [Feb.
the leading firms in Sweden state openly that there has
been a constant and marked falling off in the consumption
of domestic spirits, unaccompanied by a corresponding
increase of importations, and attribute it exclusively to
the wide adoption of the company system.
Reference has already been made to the fact that since
the introduction of the company system a greatly
augmented consumption of malt liquors has taken place.
This is partly due to the well-meant endeavor to foster
the beer-drinking habit as an antidote against brandy, and
partly, perhaps, to the restrictions put upon the brandy
traffic. Most beer is drunk in the towns having well-reg¬
ulated brandy companies, which is certainly a proof of the
efiiciency of the system, as well as an illustration of the
necessity of extending it so as to embrace all intoxicants.
A table prepared under the auspices of the Swedish
Brewers' Association follows, which shows the consump¬
tion of malt drinks, including the 3 per cent, small beer.
The estimate is perhaps a trifle too low.
Consumption of Malt Beverages in Sweden, 1861-90.
YEARS.
Quarts
per
Inhabitant.
YEARS.
Quarts
per
Inhabitant.
1861,
7.4
1876
16.8
1862
12.2
1877
18.0
1863,
13.7
1878,
21.7
1864,
13.0
lfi79,
17.4
1865,
12.3
1880
17.2
1866,
12.9
1881
19.4
1867, . . . f .
10.4
1882,
16.7
1868,
10.3
1883,
17.8
1869,
11.1
1884
22.0
1870,
11.8
18S5,
23.3
1871,
12.8
1886,
24.2
1872,
16.1
1887,
22.4
1873
17.2
1888,
21.8
1874
16.0
1889,
25.7
1875,
17.4
1890
28.2
1894.]
HOUSE —No. 192.
81
The significance of the above figures will be better
comprehended when compared with the appended table, *
showing the per capita consumption of beer in other
countries, according to recent investigations : —
Quarts,
Bavaria, 239.8
Belgium, 196.5
Great Britain and Ireland, 126.8
United States, 60.2
Switzerland, 39.0
Au.stria-IIungary, 35.9
Holland, 35.9
France, 25.3
Arrests for Drunkenness in Sweden.
A necessary consequence of the spread of the company
system was, as already intimated, a bettor policing, nota¬
bly of the towns, which again has resulted in a greater
number of arrests for drunkenness. Not only does the
moral sentiment of the people demand that the vice of in¬
temperance shall be more severely dealt with than formerly,
but the very existence of the companies necessitates it.
Hence it is no cause for surprise to find that the number
of arrests per 1,000 inhabitants has increased somewhat
from 1874 to 1891. However, it may fairly be doubted
if the figures would indicate a perceptible change, but for
the unrestricted, and, to a considerable extent, illegal
traffic in beer. Compare statistics of consumption of
brandy and beer.
The next table shows the number of arrests for drunk¬
enness from 1874 to 1891 : —
* Conrad, Handwbrterbucb der Staatswissensehaften, page 621.
82 THE NORWEGIAN SYSTEM, ETC.
[Feb.
Arrests for Dmnlcenness in Sweden, 1874-01
Number
Per
YEARS.
Population.
of
1,000 In¬
Convictions
habitants.
1874
4,341,559
16,422
3.7
1875
18,739
4.2
1876,
21,092
4.7
1877
4,484,542
22,126
4.9
1878
4,531,863
20,279
4.4
1879
4,578,901
19,306
4.2
1880
19,326
4.2
1881
4,572,245
19,926
4.3
1882
20,549
4.4
1883,
20,101
4.3
1884
19,913
4.2
1885
18,307
3.9
1886
20,09">
4.2
1887
4,734,901
21,113
4.4
1888
4,748,257
21,0S2
4.4
1889
22,904
4.7
1890
25,156
5.2
1891,
4,802,751
25,848
5.3
Of the whole number of arrests in 1891, 23,312 were
made in the towns and 2,T)3G in the country districts.
The population of the towns in the same year was
912,6Gf), and the country districts 3,890,080.
Arrests for Illegal Sale of Intoxicants.
Contrary to general expectation, the illicit traffic in
brandy does not appear to have grown under the company
system. As the smallest quantity which can be purchased
at wholesale prices is GG| gallons, "kitchen liars" have
become both unprofitable and dangerous in the towns.
Frequently the companies employ their own detectives, to
guard against infringements of the law in this respect. In
the country districts the methods employed in our pro¬
hibition States are more common, yet by no means alarm¬
ingly so. Subjoined is a table giving the number of per¬
sons sentenced for illegal sale of brandy and beef. In
1894.J
HOUSE —No. 192.
83
order to show the influence of the beer traffic, the north¬
ern provinces, in which malt liquors are comparatively
little used, are given separately. Statistics for earlier
years than 1885 were not obtainable : —
Sentenced for the Illegal Sale of —
Brandy.
Beer.
YEARS.
Northern
Provinces
(Population
in 1891,
852,434) .*
All Other
Provinces
(Population
in 1891,
3,950,317).
Total.
Northern
Provinces.
All Other
Provinces.
Total.
1885, .
490
328
818
361
981
3,342
3886, .
423
347
770
348
994
1,342
1887, .
465
353
818
343
941
1,284
1888, .
440
371
811
327
950
1,277
1889, .
435
374
709
345
1,137
1,482
1890, .
439
374
813
332
1,147
1,479
1891, .
502
395
897
308
1,104
1,412
* It should be noted that the sparse population and vast extent of the northern
provinces make it less difficult to escape detection.
The influence of the liquor traffic in Sweden on social
conditions in general has as yet not been touched upon, and,
indeed, to the oft-repeated question, What has the com¬
pany system accomplished in the way of diminishing crime,
poverty, etc. ? the only reply is that the statistical data
available throw no light on these points. While the inti¬
mate relation of intemperance to crime and poverty is too
well known to need further comment, our present knowl¬
edge is too meagre to afford a safe basis for accurate de¬
ductions as to the effects in this respect of any particular
method of controlling the sale of intoxicants. It is in¬
teresting, however, to note in passing the percentage of
habitual drinkers to the total number of prisoners sen¬
tenced to penal servitude and imprisonment in Sweden
from 1888 to 1890 : —
i>4
TIIE NORWEGIAN SYSTEM, ETC. [.Feb.
Summary of Persons Sentenced During the Years 1S88, 1880
and 1800 in Sweden.
To Penal Servitude.
DESCRIPTION.
Mah s.
Females.
Males.
Females.
1888.
1889.
1890.
1888.
1889 1890
1888.
1889.
1890.
1888
1889.
1890.
Total number of
habitual drinkers,
931
1,008
897
16
29
18
421
469
503
7
1
6
Total number of
prisoners, .
1,318
1,354
1,263
190
226
224
587
634
699
31
35
43
Per cent, of habit¬
ual drinkers of
whole number, .
70.6
74.4
71.0
8.4
12.8
8.0
71.7
74.0
72.0
22.6
2.9
13.9
To Imprisonment.
It is impossible to say to just what extent these figui'es
have been affected by the company system. Still, as it
may be stated as an incontrovertible fact that the con¬
sumption of liquor and the attendant drunkenness have
decreased in very perceptible degree under this system,
the inference is fair that, with regard to crime and in as
far as it is attributable to drunkenness, conditions in
Sweden have greatly improved. The same no doubt holds
true of the economic status. The unanimous verdict is
that the working classes have prospered under the com¬
pany system as never before, but the statistical evidence
at hand is not sufficient to substantiate it. It may be
questioned if, in the face of the many disturbing factors
inlluencing the economic conditions of a people, it is ever
possible to trace the precise influence of liquor drinking on
material prosperity.
It remains for us to consider one important question
connected with the company system in Sweden, namely,
Tiie Distiubution of Pkofits.
The ultimate destination of the profits resulting from
the sale of liquors, as well ot the excise moneys, has been
the source of much contention wherever the company
system has been introduced. The method now in voaue
in Sweden, detailed in the summary of the liquor laws,
on page 28, was not the one originally tried. In Gothen¬
burg the surplus was at first expended simply in the in¬
terests of the working classes. But, on realizing the
1894.]
HOUSE —No. 192.
85
large proportions the surplus was destined to assume in
time, this plan was abandoned, and the present one of
dividing the surplus between the municipality, landsting
and agricultural society of the district adopted. As each
of these bodies will naturally insist upon a full share for
their respective communities, it is obvious that this
method furnishes the necessary safeguard. That the
surplus profits are in almost every instance distrib¬
uted with perfect integrity has never been brought
into doubt. Another question is in how far the plan
affords absolute justice. The complaint is that the coun¬
try districts suffer under it. The concentration of the
brandy trade in the towns, which is a direct result of the
company system, has caused a large loss of revenue from
excise to the country districts. The percentage "of the
surplus granted the agricultural societies must be regarded
as a compensation for this loss, but is deemed insufficient,
and efforts are being made to secure a larger share for the
country districts.
The next table shows the —
Profits of the Liquor Companies of Siveden from 1881 to 1892,
including the Excise Tax paid in Lieu of License Fees.
YEARS.
In Towns.
In Country
Districts.
Total.
1880-81
$1,476,094 46
$73,007 62
$1,549,102 08
3881-82
1,460,222 62
70,453 40
1,530,676 02
1882 83,
1,272,866 60
68,056 50
1,340,923 10
1883 84,
1,330,793 27
64,738 61
1,395,531 88
1884-85
64,264 39
1,517,441 25
1885 86
1,489,318 05
58,638 12
1,547,956 17
1886-87
1,577,638 50
62,270 61
1,639,909 11
1887-88,
1,662,118 99
55,136 19
1,717,255 18
1888-89
1,567,133 16
55,914 79
1,623,047 95
1889 90
1,813,446 25
56,773 91
1,870,220 16
1890-91
1,667,800 74
56,655 15
1,724,415 09
1891 92
1,802,662 62
57,814 16
1,860,47 6 79
With the growth of the operations of the companies,
the profits accruing have in time come to form a very
86 THE NORWEGIAN SYSTEM, ETC. [Feb.
considerable part of the revenue, especially in the muni¬
cipalities. The temptation to push sales in order to
lessen the burden of taxation is then near at hand, and
in some instances given way to; however, only in small
communities. The claim made in some quarters that the
companies have, in general, degenerated into "municipal
milch cows," is baseless. An adequate refutation of this
charge is found in the fact that none of the principal
companies make use of all the privileges afforded them
of extending their business, but seek, on the contrary, to
confine the traffic within constantly narrowing bounds.
The uses to which the profits are finally put are above
suspicion. Fraudulent practices or squandering of money
in connection with the distribution of profits are unknown.
It is interesting to note the final destination of the sur¬
plus, as shown below. During the latter five-year period
a larger percentage has been given the landstiny and
country parishes.
Average Share of Profits and Excise Moneys (Five-year
Periods) received by —
1880-85. Percentage.
Municipalities $1,014,205 0 0 69.1
Landsthtg, 176,039 82 12.
Agricultural societies, 222,150 94 15.2
Country parishes, 45,547 65 3.1
Commissions and small expenses, 8,671 44 0.6
1885-92.
Municipalities $9S2,041 42 57.4
Land sting 286,422 04 1 6.7
Agricultural societies, 214,096 08 12.5
Country parishes, 206,920 30 12.1
Commissions and small expenses, 22,451 64 1.3
A movement, finding its main support among the pro¬
hibitionists, is afoot to have the entire surplus resulting
from the liquor trade paid into the State treasury. It is
urged that such a measure would sound the death knell of
numerous small companies, which, it is claimed, exist for
revenue only. While instances substantiating the latter
assertion are not wanting, yet experience in Sweden
shows that complete prohibition is impracticable; and it
is difficult to believe that the affairs of the companies
would be administered with the present integrity and as
1894.] HOUSE —No. 192. 87
•
much in the interest of temperance under any form of
State monopoly.
Believing that the advantages to he reaped under the
Swedish company system have been made sufficiently
clear, it remains to state summarily some of its defects.
These are —
1. The narrow scope of the Swedish system, which
does not aim to monopolize the entire sale at retail and
over the bar of all intoxicants.
2. The absence of sufficient central supervision of the
administration of the companies, which is largely respon¬
sible for a number of the loose methods previously pointed
out.
3. The practice and manner of sub-licensing, which
favors certain classes of society and prevents disinterested
control of the whole traffic.
4. The sale of malt drinks and spirits over the same
bar.
5. The prevailing custom of allowing managers the
profit on the sale of malt beverages.
ti. The sale of spirits on Sundays and holidays.
Public Opinion and tiie Gothenburg System.
It is difficult to imagine a social institution of such
magnitude as the Swedish method of regulating the
liquor traffic meeting with general approbation. Yet such
has been its fate. The average citizen, who pursues his
even way without much concern for affairs not immediately
touching his personal interests, makes an exception when
questioned as to the company system, and pronounces
its advantages great, without hesitation. Much more
emphatic are the declarations of those whose position in
society lends special weight to their opinions. Not for a
moment would- they entertain the thought of going back
to the old rdgime, with brandy shops on every corner for
the enrichment of private persons. In the words of the
chief of police of Gothenburg, "The difference between
conditions under the old and new order of things is as the
difference between night and day." This dictum was
Subscribed to in every town visited. Similar utterances
88 THE NORWEGIAN SYSTEM, ETC. [Feb.
•
arc to be heard on every side. That the system appeals
to many principally because of the pecuniary advantages
derived from it by the various communities is, unfortu¬
nately, true. Still, the real reason for its rapid extension
to all parts of the kingdom was doubtless the belief in it
as a means of checking intemperance, and for this reason
it has been maintained, and received the support of the
temperance people. A stronger endorsement cannot be
had. Naturally, many of the total abstainers regard it
as an unholy concern, being content with nothing short
of absolute prohibition. But even among fanatical ex¬
tremists are to be found more than a few who, when
pressed, do not for a moment seek to deny that much
good has been accomplished under the system, or hesitate
to pronounce its principles as sound. Some of the most
representative total abstainers in Sweden to-day, who
preach and vote for prohibition, wherever an opportunity
is afforded, speak warmly of the effects of the Gothenburg
system. As a former leader of the prohibitionists in the
Riksdag said, "He must be blind, indeed, who cannot
see its beneficial results." In short, it may be stated as a
fact that the system has the support of the friends of
temperance. From what has been already mentioned on
earlier pages, it is to be expected that they find reason to
criticise severely some of the methods employed, depre¬
cating especially those that savor of class legislation.
And, as we already know, the contention that some com¬
panies have not lived up to their promises is, unfortunately,
too well substantiated by facts. But, as Dr. Wieselgren
himself, the president of the Swedish Temperance Society,
the oldest of its kind in the country, has said, "One
must not expect from any system of liquor selling that it
will wholly eradicate the drink evil."
In connection with the foregoing, it may not be amiss
to state that while the company system has as yet not been
made the subject of active political party strife, the total
abstainers work toward that end. The first object of
their agitation is to secure enjoyment of the no-license
privilege, especially for the small towns. The principal
obstacle in their way is the present method of voting in
1894.]
HOUSE —No. 192.
89
municipal affairs in Sweden, which is regulated according
to the income of the citizen. Thus a man having an in¬
come of $193 is entitled to cast one ballot only, while his
opponent who has an income of $2,680 may cast one hun¬
dred ballots. As the temperance advocates are but slen¬
derly represented among the moneyed classes, the result
is obvious. Could the views of the majority be asserted
through the ballot box, it is more than probable that the
company system would be superseded by no-license in
some of the smaller communities.
It is interesting to observe that the testimony of per¬
sons requested to report on the merits of the company
system to other governments — many of them foreign resi¬
dents in Sweden, having daily opportunity of seeing the
system in operation — is all in its favor. Thus the British
minister at Stockholm states, in a report issued not long
ago by the Foreign Office : "1 hear from all quarters that
the working of the Gothenburg system of licensing con¬
tinues to be as completely satisfactory as ever." The
British consul at Gothenburg says: "I am of opinion,
from personal observation and experience, that the com¬
pany has been the means of great improvement, which I
doubt anybody can deny, although from circumstances be¬
yond the control of the company drunkenness is still con¬
siderable here."
Two years ago a report on the system was made to the
British Foreign Office, which states : " There can be little
doubt that the influence of the new system has been bene¬
ficial from the very commencement." It says, further,
that the detailed reports received at that time from the
British vice-consuls throughout the kingdom were '' with¬
out exception favorable to the system."
90
TIIE NORWEGIAN SYSTEM, ETC. [Feb.
NORWAY.
LIQUOR LEGISLATION IN NORWAY.
A misguided zeal for the promotion of agriculture and
the then current belief in alcohol as a necessary stimulant
during the cold season are responsible for a law passed by
the Norwegian Storthing in 1816, granting every man the
right to distil brandy* from grain or potatoes raised on
his own land. The consequences were startling. During
the ensuing twenty years the consumption more than
doubled, reaching 16 quarts of 50 per cent, of alcohol per
inhabitant, a height of late years only attained in Den¬
mark. In 1833, when distillation was yet unrestricted,
the number of stills in the country districts was 9,576,
and in the cities 151, with an annual output of 4,488,000
gallons. Nearly the whole quantity was consumed at
home. The inferior quality of the brandy, as well as the
prohibitive custom laws then in force in most countries,
made exportation out of the question, and very little was
used in the industries. The drink evil had become a
most serious problem, threatening the well-being of the
nation on every side. The Storthing of 1842, hoping to
terminate it with one stroke, enacted a law prohibiting
absolutely all distillation of brandy. Fortunately saner
counsel prevailed, as it was perceived that so radical a
measure would, under the existing conditions, only aggra¬
vate matters. A law regulating the manufacture of brandy
and imposing a tax went into effect in 1848, with the re¬
sult that by 1850 the number of stills was reduced to 40.
At present only 23 such exist, and are owned principally
by farmers' associations. The first law dealing somewhat
effectually with the sale of brandy dates from 1845, and
* See note, page 19.
• 1894.]
HOUSE —No. 192.
91
is still partially in force, having received numerous
amendments from time to time.
It is interesting to observe that, while the State tax on
the manufacture of brandy has been raised from 3J cents
per quart in 1849 to 20 cents in 1888, the object has not
been simply to add to the revenue, but also to increase
the cost of liquor and thus diminish its consumption.
Scarcely one-tenth of the revenue in Norway is derived
from taxes on intoxicating liquors, while in England, for
instance, the same tax constitutes one-fourth of the whole
revenue. In recommending the latest addition to the tax
in question, the royal commission expressly stated that,
even if it did not increase the income of the state, but
only tended to reduce consumption, it would prove a
benefit to the consumer, both from an economic and social
point of view. In the words of one of the leading reform¬
ers, "The extermination of brandy is the same as a
widening of the deepest and least exhaustible source of
national prosperity, — the productive power of the
people."
Liquor Laws of Norway.*
Manufacture of Brandy.
The law of 1848 grants every inhabitant of a town or
landing place, who is a citizen, and every owner of
specially assessed land in the country districts, the right
to manufacture and rectify spirits. An exception, how¬
ever, is made in the case of certain officials of the Crown
and Church, who may not enjoy this privilege. Distil¬
lation of brandy may not take place from July 1 to
September 14. The minimum capacity of a still is placed
at 25 gallons, thus shutting out a large number of small
stills previously in existence.
The law provides for a strict system of inspection of
distilleries by government officers, and prescribes that a
special record be kept of the work done in each distillery.
A distillery while in operation is taxed for a period of at
least 15 days, and for a daily output of at least 375
* For the full text of the laws, see " Fifth Special Report of the Commissioner
of Labor," page 85.
92
TIIE NORWEGIAN SYSTEM, ETC. [Feb. •
gallons, without regard to the actual time consumed or
the quantity produced. Illicit distillation is punished by
tines varying from $10 to $100 for the first offence, or by
imprisonment on bread and water. Attempts to evade
payment of taxes are punished by imprisonment on bread
and water or at hard labor.
Retail* and Bar Trade of Brandy.
Under the term "brandy" the law includes all drinks
prepared from brandy. Practically no restrictions are
placed on the wholesale trade in brandy, which the law
defines as sales in quantities of 10 gallons or more.
Every merchant has the right to engage in it.
The right to carry on a retail or bar trade in brandy,
with which no other business may be connected, is con¬
ferred by special license. In towns such licenses are
granted by the magistracy in conjunction with the mu¬
nicipal council, usually for a period of five years. No
special license fee is exacted, but the quantity of brandy
which it is estimated will be sold during the year is taxed
at the rate of 3^ cents per quart. In making such
estimate the municipality is taken as the unit, and the
transactions of the individual licensee not considered.
The total sum thus levied is divided equally among all
license holders, and the proceeds devoted to the poor
fund of the district.
In the country communities brandy may be sold only
over the bars at inns necessary for the accommodation of
travellers, and even in these places all sale to persons liv¬
ing nearer than three and one-half English miles to the inns
is prohibited. No innkeeper is obliged to keep liquor for
sale, and licenses to carry on a retail trade may not be
granted innkeepers or merchants except on the express
recommendation of the local governing body. When
liquor is sold in the country, the probable sales are taxed
in the same manner as in the towns.
In 1871 the law was so amended that a monopoly of
the licenses to sell brandy at retail and over the bar mav
* See note, page 24.
1894.]
HOUSE —Xo. 192.
be conceded commercial companies binding themselves to
devote the possible surplus profits from the trade to ob¬
jects of public utility, and whose by-laws are approved
by the council (municipal) and representatives in the
towns and landing places in question, as well as sanc¬
tioned by the king. It is also provided that a competent
manager, whose appointment must be approved by the
local authorities, shall be engaged for every place where
liquor is sold by the company, and his responsibility is
made identical with that of the private dealer. While
the law of 1871 does not expressly imply it, the final de¬
cision in all matters relating to the companies rests with
the Department of the Interior. Its powers are nearly
absolute, and upon its approval depends the renewal of
the company charters, which are usually granted for a
period of five years. It will be noticed that the law does
not specify the rate of interest to be received by the
shareholders of a company on the capital invested. The
by-laws of the various companies all stipulate a five per
cent, rate of interest, which, by usage, has almost become
a law, although there is no legal enactment to that effect.
In order that the companies might obtain full control
of all bar-trade and retail licenses, a law was passed in
1880 providing for the redemption of all retail and bar-
trade licenses, that is, those granted previously to 1845,
on the payment of a suitable compensation, to be adjudi¬
cated by four men. Said compensation is usually fixed
at an annual sum corresponding to the average yearly
income of the licensee during the three years preceding
the expropriation. If a readjudication is requested and
deemed necessary, it must be undertaken by a board con¬
sisting of eight men appointed by the king.
There is also a class of licenses known as steamer
licenses, permitting the sale of brandy only to passengers
and those employed on board the vessel while it is under
way. However, sales to the latter are subject to the
pleasure of the master. To steamers plying on a fjord,
lake or river, and stopping at any landing place in the
country districts, licenses may not be granted without the
consent of the local authorities of such districts.
94 THE NORWEGIAN SYSTEM, ETC. [Feb.
Minor Provisions governing the Sale of Brandy.
The smallest quantity which may legally be disposed
of at retail is TVij <IUill't- It is held equivalent to bar
trade when the seller permits any part of the liquor sold
to be drunk on the premises. In the same manner the
licensee becomes responsible for brandy bought or bor¬
rowed from him, when it is consumed in any other part
of the premises than the one in which the sale was made.
It is forbidden to sell or to serve spirituous liquors to
an intoxicated individual, or to furnish any one a quantity
of strong drink sufficient to produce intoxication.
Minors and apprentices are not allowed to enter bar
rooms. Liquors may not be served at any public gather¬
ing, nor sold during the general fisheries on the coast or
O 7 O O
at markets and fairs in town. At fairs and markets held
in the country districts liquor may be dispensed only
together with prepared food. The licenses required at
the places last mentioned cost three times as much as
ordinary ones, and their number is determined by the
local authorities. When brandy is sold by one not
licensed to sell in quantities less than 10 gallons, it must
be delivered simultaneously in one vessel and to one
buyer. It is further defined as illegal sale when any
person not licensed to carry on a bar trade serves brandy
gratis or against payment in connection with purchase or
sale at warehouses and stores, when brandy is disposed
of by wholesale dealers under the name of " donation,"
and when any one keeping an eating house, billiard
room, bowling alley, etc., serves brandy gratis. Illegal
sales are punished by fines of from $10 to $50 for the first
offence, $25 to $100 for the second and $40 to $200 for
the third ; the fifth and subsequent offences are punished
by imprisonment at or without hard labor. The severer
penalties, however, are only visited upon non-licensees.
In addition to the tines, etc., the brandy up to 30
gallons owned by the offender is confiscated. Neglect on
the part of a police officer to report any infringement of
the liquor laws within twenty-four hours after it has come
to his notice is punished the first time by a fine twice as
1894.]
HOUSE —Xo. 192.
95
large as the real culprit would have to pay. A third
offence, if proved to be intentional, is followed by dis¬
missal.
Bar rooms must be closed at 10 p.m., under penalty of
50 cents for each customer found in them after that hour,
and on days before Sundays and holidays, at 5 p.m. An
exception is made in the case of hotels and eating-houses.
Bar rooms must remain closed on Sundays and holidays,
and no sales, whether at retail or over the bar, may take
place before 8 a.m. on week-days.
Retail and Bar Trade in Beer, Wine, Mead and Cider.
The law of 1884 provides that bar trade in the bever¬
ages mentioned may only be carried on by persons
holding a special license. In the towns this privilege is
granted by the magistracy, in conjunction with the
council, and these authorities also fix the number of
licenses, and are enjoined to make it the chief considera¬
tion to guard ag iinst abuses of the privilege. Only one
license to one person is the rule, except in the case of
companies. These may obtain control of several or all
of the licenses in question, on the same conditions
governing the brandy trade.
Licenses to sell beer maybe limited so as to cover only
certain kinds of beer. Inn and lodging-house keepers
are not permitted to sell the beverages mentioned to
others than travellers who order food. The sale at clubs
is restricted to members. Stewards on board steamers
are not required to hold a license to sell beer and wine,
provided they have the permission of the master of the
vessel. A uniform license fee covering one or all of the
beverages in question is levied on the bar trade by the
municipal authorities, and is usually limited to $107.20.
In special cases and with royal sanction this sum may be
increased. The municipal council and representatives
may restrict the hours for the bar trade in the same
manner as in the case of brandy shops, although the
chief of police is empowered to make exceptions when
special circumstances make it expedient. Privileged
licenses issued previous to 18G9 may be redeemed with
TIIE NORWEGIAN SYSTEM, ETC. [Feb.
the sanction of the king. The compensation granted in
such cases is computed on the same basis already noted
for brandy licenses of the same class. The retail and
wholesale trade in beer is generally not a business requir¬
ing a special license, while the retail and wholesale trade
in wine, mead and cider is conditioned by a general
trader's license. Still, in country districts the local
authorities may prohibit the sale of all these beverages
at retail, that is, in quantities less than lOj. gallons or 50
whole bottles, by all persons not obtaining a special
license. Brewers, however, may sell directly to cus¬
tomers. A bar-trade license involves the right to sell at
retail. The conditions governing retail and bar trade in
beer, wine, mead and cider in the country districts are
similar to those regulating the same traffic in the towns.
O O
Certain special restrictions should be noted. The sale of
the drinks in question is generally prohibited at public
gatherings, and within five-eighths of a mile of the same
during the two hours before their opening and two hours
after their close. During divine service such sale is
entirely prohibited.
The fines for illegal sales vary from $2.14 to $214.40.
The penalty for allowing children on the premises or
supplying them with drink is $2.14 for each offence.
Moneys derived from fines are turned over to the public
treasury or the poor fund of the district where such exist.
THE COMPANY SYSTEM IN NORWAY.
In being transplanted on Norwegian soil, the Gothen¬
burg system underwent certain changes of far-reaching
consequences. Principal among these was the broadening
of its scope. It was perceived at once that the growing
democratic spirit of the country would not tolerate a
restriction of the liquor traffic affecting only some mem¬
bers of society, nor was this deemed the true end to be
sought. It was introduced strictly as a temperance meas¬
ure, to do battle with the drink evil wherever found,
without respect to classes. On this ground it must be
judged. As a result of the wider field given the system
in Norway, the methods employed in Sweden were found
1894.]
HOUSE —Xo. 192.
inadequate and others largely substituted, which will be
detailed under their proper heads.
The Christians and Company.
The oldest liquor company in Norway is that at Chris-
tiansand, organized soon after the passage of the law of
1871. Not only on account of its age, hut also because
it affords perhaps the best exemplification of what the
system ought to be, this company deserves our first con¬
sideration. While the population of Christiansand is
small, the prominence of the city as a seaport and the
centre of distribution for a country population twice its
own in numbers offers sufficient difficulties for a thorough
test of the merits of the system.
The by-laws under which operations were commenced
simply state that the purpose of the company is to take
charge of the retail and bar trade in brandy. The capital
stock was placed at about $10,000, divided into shares of
about $100 each. The control of the traffic was entrusted
to a board of directors, empowered to fix the compensa¬
tion of employees, to furnish these with needed instruc¬
tions, prescribe the rules to govern the sale of liquor,
determine prices, etc. A five per cent, interest on the
capital stock was guaranteed the shareholders. The other
special provisions of the by-laws and the changes to
which they have been subjected need not be considered
here.
A brief outline of the history of the Christiansand com¬
pany and the development of its methods will not only
prove instructive, but also reveal the true character of the
enterprise which may be regarded as representative for
Norway. Under the former regime the number of brandy
shops in the hands of private persons was nine. Now
four bars and one retail store were deemed sufficient to
meet the legitimate demands of the public. At first the
bars were kept open from 8 am. to L0 p.m., but soon
further restrictions were thought necessary, and the hours
were limited to 8.30 p.m. The experience of the first
year surpassed expectations. While the sales showed no
material change, far less drunkenness was observable, the
98
THE NORWEGIAN SYSTEM, ETC. [Feb.
number of arrests decreased, and it was made evident
that the new system was a powerful agent for promoting
order and decency in the city. But even at this early
date the directors discovered a dangerous competition
arising from the sale of beer, and contemplated the ad¬
visability of obtaining control of this traffic, yet stead¬
fastly refusing to combine the sale of malt liquors with
that of spirits.
When it was known that the sales for 1873 exceeded
those of the previous year, the officers of the company
became alarmed, and cast about for further means of
checking consumption. Stricter orders were issued to
the managers of bars, and the conviction expressed that
the public was now ready to support the company in its
endeavor to promote sobriety. A request was also made
for the services of a special liquor officer, to be paid by the
company. In consequence of the measures adopted, the
consumption for 1874 showed a marked diminution, not¬
withstanding the unusual prosperity of the working classes.
Not content with the gradual progress it was making, the
company engaged the services of a representative of the
Society of Home Missions to do temperance work in
various parts of the city. Aid was also promised for the
establishment of coffee houses especially adapted to meet
the wants of day laborers, where only temperance drinks
would be sold.
The thought and study which the directors of the
company bestowed on the problem of the rise and fall in
consumption, and the various schemes adopted to reduce
it still further, as shown in the annual reports, give
striking testimony of the spirit of reform dominating
those in charge of the liquor traffic, and their feeling of
public responsibility. For several years it had been
contemplated to assume control of the bar trade in beer,
and repeated attention called to the abuses connected
with the sale of this drink at the hands of private indi¬
viduals. The law of 1876 paved the way, and in the
following year the company was given eight licenses
for the serving of beer; the four granted to private
parties previous to 1865 could not be expropriated.
1894.]
HOUSE —No. 192.
99
On completing the eighth year of its existence, a com¬
munication was addressed to the company by the chief
of police in Christiansand, of which a few extracts are
appended. Having described the evils and degradation
of the old-time saloon traffic, very much as we know
them, the letter continues : —
The police experienced immediately that the company was an
institution of great benefit to society. . . . Its usefulness has
become more and more apparent, increasing gradually from
year to year. The influence of its preventive measures on the
population at large is very perceptible. Contrary to the habits
prevailing in former years, the family men now return to their
homes when the day's work is done. Their love of home has
grown as they have more and more been drawn away from the
miserable companionship with drinkers, to which they were
accustomed. In consequence, the friction between married
people has lessened, and the complaints and denunciations
continually uttered by housewives against the saloons have
been silenced. . . . The company system seems also to have
brought about other improved conditions, and to have ap¬
proached its aim incredibly fast, which to a large extent is
due to the ability and energy with which the directors have
gone to work, and the manner in which they have regulated
the whole traffic.
In their report for 1882 the directors state that, in
spite of stringent times and lower wages, the stricter
rules governing the brandy shops and the complete
order and decency prevailing in them, the bar trade had
not diminished to the extent expected. In order to ascer¬
tain the reason for this, several meetings were held with the
managers, a list was made of the regular customers, and
the quantity of liquor bought by the latter noted. It was
found that many men of the working classes squandered a
large portion of their wages in drink. The directors at
once took steps to prevent this. Smaller dram glasses
were ordered, and the rule made that only one dram once
in three hours must be served to each person. A number
of habitual drinkers were notified that in the future they
would only be permitted to visit one particular shop,
and all sale of liquor was prohibited to persons known
100 THE NORWEGIAN SYSTEM, ETC. [Feb.
to depend in part or wholly on charity, or who neglected
their families in any way. It is stated that these orders
not only proved effective, but were even hailed with
approbation by the customers themselves. The fear that
the severe rules now governing the bar trade would lead
to larger sales at retail, and thus foster home drinking,
was not realized.
How the Traffic is conducted.
At present the company operates 3 bars and 1 retail
shop, located with due regard to the distribution of the
population. The bar-trade premises consist of two
rooms, one a box-like arrangement, with a counter behind
which liquor is dispensed, and an adjoining room, fur¬
nished with small tables and wooden stools. While no
special comforts are provided for the customers, the
rooms are scrupulously clean and neat, as well as properly
ventilated. Prominently displayed are the rules of order,
of which a translation is appended : —
1. The bars are kept open on week-days, from 9 a.m. to
12 m., and from 1.30 to 8 p.m., except on days before Sundays
and holidays, when they are closed at 12 m.
2. Liquors may only be served in the companies' glasses on
cash payment accompanying the order.
3. Liquor must not be served to a person believed to be in¬
toxicated, nor in such quantities that intoxication may ensue.
[See remark on page 99 in regard to the quantity permitted
to be served.]
4. When the liquor ordered has been consumed, the person
in question must leave the premises at once, and a prolonged
stay in the same is not permitted. Children and apprentices are
not allowed to visit the bars for the purpose of obtaining intoxi¬
cating drinks.
5. It is expected that the customers will conduct themselves
in a quiet and decent manner. It is the duty of the manager
to turn away at once those offending in this respect.
6. Maintenance of order and proper behavior will be rigidly
insisted upon. Every person must vacate the premises without
raising objections when requested to do so by the manager. If
any person neglects to obey the order of the manager, or be-
1894.]
HOUSE —No. 192.
101
comes guilty in other ways of improper or offensive conduct, he
will be held responsible and punished.
Offences of a milder character are usually punished by
refusing the offender admittance to the bars for a definite
period. At the request of a man's family no liquor will
be sold him. No food is supplied except a sandwich, if
ordered. The experiment of serving meals was tried and
abandoned, not for lack of customers, but because of the
complaints that the comforts thus offered in brandy shops
operated in the nature of a temptation, and drew men
away from their homes.
It should be observed that no malt liquors are sold at
these bars, not even temperance drinks or cigars. The
manager is paid a fixed salary for his services, and has no
profit whatever from sales. For the rest, his relation to
the company is quite similar to that of his Swedish
brothers, and a breach of contract is followed by in¬
stant dismissal. The employment of female help in the
brandy places is gradually being dispensed with, "for the
good of all concerned," it is said.
Two hotels hold what may be termed sub-licenses from
the company, subject to the following conditions : The
hotel owner is engaged as manager, and pledged not to
serve spirits to others than to travellers living in the hotel
and regular boarders during meal hours, and under no
circumstances in the cafe or restaurant. The manager may
not keep on hand other spirits than those delivered to him
by the company, which are to be paid for in cash when
ordered. He, as well as his employees, is forbidden to
fetch or cause any one else to fetch liquor from the outside
for the use of travellers and boarders. The manager is
not allowed any profit on the liquors sold or served, and
for this reason a price list furnished by the company must
be posted in the rooms occupied by travellers and in the
dining-room. The manager is personally responsible for
all abuses arising from the serving of liquors at his hotel.
The officers of the company reserve the right to exercise
such control over the traffic in question as they may see
102 THE NORWEGIAN SYSTEM, ETC. [Feb.
fit. A small annual compensation is paid the manager
for his services by the company.
It is obvious that, as long as the manager is forced to
sell spirits at cost, according to the price list of the com¬
pany, which is usually scanned by his guests before order¬
ing, there is no temptation for him to push sales. The
question of liquor selling at hotels under the company
system will be considered more in detail on later pages.
On the whole, the manner in which the Christiansand
company has conducted its affairs calls for unstinted praise.
No abuses of any kind were visible. During a four
days' stay not a single intoxicated individual was met
with., although searched for. Under the present circum¬
stances it would seem impossible to confine the traffic
within narrower bounds without encouraging "kitchen
bars," which at present are an almost unknown evil.
Since its very beginning the company has worked hand
in hand with the temperance societies, with whom the
pleasantest relations have always been maintained. Men¬
tion has already been made of the beer shops operated by
the company, numbering at present 6. Unfortunately, 4
licenses are still held by special privilege, and cannot be
obtained. The sale of beer has been placed under very
nearly the same restrictions as the sale of brandy. We
note that the closing hours differ somewhat, as the beer
halls are kept open during the noon-day hour. The
quantity sold to each customer is usuall}r limited to one
quart. Very little trouble has been experienced in regu¬
lating this part of the company's business. The result
of placing the serving of beer on the same footing as
brandy has been fairly encouraging. At first the beer
shops were run at a loss, principally because of the
competition from small retailers. After some years the
company succeeded in repressing the oftentimes flagrantly
shameless method of the latter, but is, even to-day, pre¬
vented from controlling the beer traffic as it ought, on
account of the inadequate legislation governing the sales
at retail.
1894.]
HOUSE — No. 192.
103
Effects of the System.
I. Reduction of Licenses.
In 1870, the year before the company was started, the
number of licenses for bar trade in brandy issued was 9,
or 1 to 1,274 inhabitants. While 8 licenses were placed
at the disposal of the directors of the new enterprise, it
was decided that only 4 would be needed, and this num¬
ber was before long reduced to 3. Adding the 2 greatly
limited hotel licenses, the whole number now operated is
5, or 1 to 2,566 inhabitants. When it is known that the
population of the surrounding country districts taking all
supplies from Christiansand may, in round numbers, be
reckoned at 24,000, it may be truthfully asserted that the
traffic has been reduced to the lowest point consistent
with public safety. It is plain that under these condi¬
tions perfect control is much simplified, and that such
preventive measures as have been referred to are in every
way feasible. That the open temptation to indulge in
drink has been reduced to a minimum of what it formerly
was, needs no demonstration.
II. Reduced Consumption of Liquor.
Anxious to obtain accurate knowledge of the total
quantity of liquor used, the Christiansand company has
taken great pains to learn the precise transactions of the
wholesale dealers. The results appear in our next table.
As nearly all the brandy bought at wholesale finds its
customers in the country districts tributary to the city, it
is but fair to add their population to that of Christiansand
proper, in seeking to calculate the average consumption
per capita. The estimate made of the former is very con
servative, and perhaps considerably below the actual
number. The transient population has not been consid-
sidered.
104 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
Consumption of Liquor in Christian sand, 1872-92.
Estimated
Population
of Chrje-
tiunsand
and
Country
Districts.
Sold by the Company.
Sold by
Others at
Whole¬
sale
(Quarts).
Average
Consump¬
YEARS.
Over the
Bars
(Quarts).
At
Retail
(Quarts).
AtWhole-
snle
(Quarts).
Total
(Quarts).
tion per
Inhabi¬
tant
(Quarts).
1872, .
31,897
42,874
97,498
10,635
81,753
232,760
7.29
1873, .
32,225
46,103
111,742
12,808
126,040
296,693
9.20
1874, .
32,405
41,314
127,187
6,075
152,110
326,686
10.08
1875, .
32,737
38,294
137,284
11,575
123,746
310,879
9.49
1876, .
32,998
33,560
128,871
6,768
109,589
278,789
8.44
1877, .
33,316
37,965
125,977
2,763
116,502
283,207
8.50
1878, .
33,501
40,849
109,046
2,227
45,452
197,424
5.89
1879, .
33,630
37,072
88,694
2,212
49,664
177,642
5.28
1880, .
33,894
38,354
86,168
1,020
38,064
163,609
4.82
1881, .
34,164
35,699
94,143
1,689
26,090
157,621
4.61
1882, .
34,471
21,826.1
100,167.8
2,370.2
36,877.8
161,241.9
4.67
1883, .
34,684
16,439
102,413.3
3,107.8
48,859.7
170,819.8
4.92
1884, .
34,992
15,415.1
102,493.6
2,287.8
18,611.7
138,808.2
3.96
1885, .
35,214
16,578.6
97,859.9
1,192.0
49,513.8
165,144.3
4.6S
1886, .
35,262
14,715.6
96,275.9
578.0
21,869.5
133,439
3.77
1887, .
35,316
13,134.8
88,157.3
681.6
20,757.8
122,731.5
3.47
1888, .
35,516
13,202.3
86,323.9
528.4
21,899.1
121,953.7
3.43
1889, .
35,721
13,626.1
87,317.2
365.6
12,652.9
113,961.8
3.19
1890, .
35,878
14,846.6
100,580.9
696.4
12,664.5
128,788.4
3.58
1891, .
36,178
18,220.7
98,049.1
253.6
5,937.6
122,461
3.38
1892, .
37,000
23,265.5
114,917.1
675.2
2,134.5
140,982.7
3.81
The decline of the bar trade deserves special attention.
It has been very even and marked, except during the
years 1891 and 1892. The sharp rise, especially in
1892, is entirely due to the large influx of workmen en¬
gaged in rebuilding the city, nearly half of which was
destroyed by fire. But for unusually large wholesale
transactions by merchants in 1874, the per capita eon-
sumption would show almost a uniform decline since the
organization of the company. The lowest point was
touched in 1889, and at present the consumption is nearly
one-half less than in 1872. That the company has been
chiefly instrumental in bringing about this result is unde¬
niable, and it has thus more than vindicated its usefulness
1894.]
HOUSE — No. 192.
105
as a temperance agent. It is to be regretted that statis¬
tics of arrests for drunkenness are not obtainable, nor has
any record been kept of the refusals to sell liquor to
minors and intoxicated individuals.
As the company does not possess all beer and wine
licenses, it has not been thought worth while to give fur¬
ther details of what has been accomplished along this line.
Incomplete as our data are, they may yet serve to show
that the Christiansand company is in the foremost rank,
both on account of its admirable management and the re¬
sults obtained.
The Company System in Bergen.
Bergen, the second city in Norway, in point of inhabi¬
tants, and the chief port, has commonly been regarded as
furnishing the best model of the workings of the Norwe¬
gian company system, and not unjustly so, considering
the many difficulties which had to be overcome. The
monopoly of the retail and bar trade in brandy was con¬
ceded a company in 187(3. The conditions imposed are
set forth in the by-laws, of which we note only the essen-
* sential features.* The stated object of the company is to
assume charge of all retail and bar trade in brandy, and,
as far as possible, of the bar trade in beer and wine, for
the city of Bergen. The surplus of the business shall
be expended for objects of public utility, except such as
the municipality itself is bound to provide for, according
to law. The capital stock is fixed at a minimum of
$21,440, divided into shares of $53.00 each.
The administration of the company consists of a board
of directors of five and a committee of forty members.
All the members of the former and twenty of the latter
are chosen by the shareholders at the annual meeting,
while the remaining twenty members of the committee
are selected by the municipal council. Matters pertain¬
ing to the payment of dividends and the distribution of
profits are acted upon in a joint meeting of the board of
directors and said committee, to which the public has
* For a full text of tbe by-laws, see "Fifth Special Report of the Commis¬
sioner of Labor," page 174 et seq.
10G THE NORWEGIAN SYSTEM, ETC. [Feb.
access, unless the meeting should otherwise decide. Each
shareholder has one vote. Voting by proxy is not
allowed. The conduct of the general business is en¬
trusted to the board of directors, who appoint managers,
fix salaries, prescribe the rules, etc. Two auditors are
chosen at the general meeting to examine the books and
accounts of the company, and are required to arrange
their work in such a manner that they " follow the course
of the business day by day."
The shareholders are entitled to a five percent, interest
011 the capital invested. It is interesting to note that at
the time the company was organized the discount at the
banks was usually six per cent. Of the surplus profits of
the traffic, a fund must be set aside to correspond to the
capital stock of the company, and until this is done the
total earnings may not be expended for other purposes.
With regard to the distribution of the surplus, pro¬
posals must be submitted to the committee by the board
of directors, and the matter is then acted upon by this
board and the committee. Their decision must, however,
receive the approval of the governor of the district, who
is obliged to confer with the magistracy and council. The
administration of the company is under the general super¬
vision of the superior magistracy and council on the part
of the State, and of the magistracy and municipality 011 the
part of the city. These authorities may at any time de¬
mand to be shown the books and accounts of the company.
It will be noticed that the municipality takes a very
active part in the management of the company. This
was not the original plan, but was brought about by a de¬
sire to secure a greater share of the surplus for municipal
objects, and because the manner in which it was to be
distributed caused such contention among the sharehold¬
ers as to make it inexpedient to leave the matter entirely
in their hands.
While the by-laws do not explicitly declare it as the
intention of the company to conduct the liquor traffic in
the interest of temperance, it is implied, and, as we shall
see, always made the chief consideration.
The private licensees in Bergen knew of the great im-
1894.]
HOUSE-No. 192.
107
pending change years in advance, and that they would
not be compensated for the loss of their business. In
consequence, there were only 21 liquor dealers left when
the company assumed control. The latter proposed to
start out with 16 licensed places, but the magistracy re¬
fused to grant more than 14, and with this number busi¬
ness was commenced.
Before examining in detail the methods employed by
the Bergen company, some space must be devoted to a
few of the most striking points in the history of its de¬
velopment. A perusal of its annual reports cannot fail
to impress one with the purity of motive actuating the
directors, as it shows how, by the introduction of new
measures and in other ways, they have striven to check
consumption and foster sobriety. In the very first year of
its existence the company began keeping a record of the
number of persons to whom the purchase of liquor was
refused because they were already in a state of incipient
intoxication, or minors. During the same year the di¬
rectors, on the promise of paying their wages, secured
the services of two police officers, who were detailed to
watch the wine and beer shops and patrol the streets out¬
side these places. At the outset the experiment of sell¬
ing colfee, tea, milk and bread and butter was tried, but
abandoned when it was found that a restaurant business
in connection with the sale of brandy was undesirable
from a temperance point of view, although it otlered a
convenient manner of remunerating managers. But this
experiment gave the first impulse to the establishment of
the so-called Coffee House Company, which for a number
of years has conducted temperance refreshment rooms in
various parts of the city, with excellent results.
In 1880 the company opened three " waiting rooms for
laborers," conveniently located, where meals are furnished
at a cheap rate, but no liquor sold. The motive was to
dissuade laborers from seeking places where intoxicants
are dispensed during the noon-day rest especially. In
the same year the company started an investigation for
the purpose of ascertaining the injurious effects of brandy,
traceable to the raw material used in distillation and the
108 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
impurity of the ready product. The services of an ex¬
perienced chemist were engaged. The idea was to enable
the company to furnish customers with liquors as free as
possible from noxious ingredients.
The directors had long been alive to the fact that the
efforts of the company to counteract intemperance were
in a considerable degree frustrated by the activity of wine
and beer sellers, whose methods were open to severe cen¬
sure. It was therefore resolved to set aside a part of the
surplus protit with the object of buying in licenses to sell
wine and beer. As it was deemed prudent that the com¬
pany should feel its way before proceeding at great length
in the matter, only two licenses of the kind in question
were applied for at first. In order that the effects of the
system might receive further tests, a better classification
of the persons arrested for drunkenness was resorted to
in 1885. Henceforth these were divided, according to
habits, into habitual and occasional or accidental drinkers,
and, according to place of residence, into urban and rural
drinkers.
It is a simple statement of fact to say that the company
has never swerved from its high purposes, or laid itself
open to severe criticism from friends of temperance.
Naught else could be expected, as those immediately con¬
cerned with the administration of the company are men
of education and the highest standing. To-day we find
among the shareholders 38 merchants, 7 lawyers, 4 head¬
masters of schools, 2 school superintendents, 8 consuls
representing foreign countries, 12 physicians, besides
manufacturers, bankers, brokers, army officers, govern¬
ment officials, etc.
How the Traffic is conducted.
The Bergen company has acted on the principle that
liquor selling and drinking ought to be dissociated from
all other business, and, generally, from legitimate pleas¬
ures. Its ordinary bar rooms offer no attractions; they
are provided with only the most necessary furniture, and
cannot be called either comfortable or spacious. There
1894.]
HOUSE —No. 192.
109
are no rooms set apart for the better-to-do customer, —
not even seats are found. In short, all invitation to
lounge about is lacking. When the customer has taken
his dram, he is expected to leave at once ; a notice on the
wall in huge letters calls his attention to this, and he will
receive a polite reminder to that effect from the manager
if neglecting to comply with the rule. Yet, strangely
enough, the directors have seen fit to make an exception
in the case of three establishments known as "toddy
places," and destined to meet the demands of a better
class of customers. Here a considerable degree of com¬
fort reigns ; chairs and tables are provided and greater
freedom enjoyed. The quantity of liquor which may be
dispensed to the same person is left largely to the direc¬
tion of the manager. The usual beverage is toddy. In
other respects these places are subject to the same reg¬
ulations as the common bars. All bar-trade premises are
kept open on week-days from 8 a.m. to 12 m., and again
from 1.30 to 7.30 p.m. In summer time the closing time
is half an hour later. On days before holidays business
ceases at 1 p.m., and Saturdays at 5 p.m. The retail
places are open from 8 a.m. to 7.30 p.m. on week-days;
the beer shops from 9 a.m. to 8 p.m. on week-days. On
Saturdays both retail and beer shops close at 5 p.m.
The managers are paid fixed salaries. They are re¬
quired to serve liquor in glasses and bottles furnished by
the company, on cash payment only, and at prices fixed
by the board of directors and approved by the magistracy
and municipal council. A copy of the price list, as well
as of the rules governing the bar trade, must be posted
on the premises. All the stores needed must be procured
from the company's warehouse. The moneys taken in
must be turned over to the cashier of the central office
each day, and an invoice of stock rendered weekly. An
inspector checks the stock, and sees that it corresponds
to the accounts kept at the central office.
The other regulations to be followed by the manager
with regard to the serving of liquor, etc., are similar to
those quoted for Christiansand. We notice that there is
110
THE NORWEGIAN SYSTEM, ETC. [Eel).
a special rule forbidding customers to treat bar tenders
and other help. No women are employed.
The company pays for the services of two detectives,
who perform general police duties about its premises, and
whose special duty it is to prevent violations of the liquor
laws. Close observation leads to the conclusion that the
shops are conducted in fullest compliance with instructions.
It deserves attention that a majority of the inhabitants at
first regarded the company with anything but favor.
This antagonism, which was even to some extent shown
by the police authorities, has now totally disappeared.
The latter, who certainly ought to be good authorities,
are ever ready to praise the advantages of the system, as
well as to endorse the particular methods in vogue.
All attempts at persuading the company to grant sub¬
licenses to hotels and clubs have been fruitless. Both
travellers and clubmen must either supply themselves
with private bottles or visit the dram shops, in order to
obtain liquor. That class discrimination has been banished
and that the restrictions placed upon the sale of liquor
operate alike for all is certainly laudable; yet, from a
temperance point of view, it may be questioned whether
the wisdom of the ground taken is justified by results.
It is a notorious fact that drunkenness among hotel
employees has increased alarmingly of late, and for
this reason : a large number of travellers provide them¬
selves with a bottle or two of liquor during their sojourn
at the hotels, which they keep in their rooms, and on
departing often leave only three-quarters emptied. What
is left naturally falls to the share of the attendants, and
even while the guest remains the bottle is a source of
temptation to the waiter. The same is true of clubs.
Furthermore, it is a reasonable supposition that the pur¬
chaser of the bottle is himself constantly tempted to
drink more when a supply is always within reach, than
when he has an opportunity of buying single drams.
The plan proposed by the inspector of the Bergen com¬
pany of supplying hotels with bottles bearing the stamp
of the company, and containing exactly one dram each,
1894.]
HOUSE —No. 192.
Ill
to he sold at cost price to guests only, and under other
restrictions deemed expedient , appears eminently practical.
The hotel keeper would thus he deprived of all interest
in sales, the liquor dispensed would still he the "monopo¬
lized dram," and the evils pointed out ahove obviated.
As it is, the evils of drinking at hotels has not been done
away with by refusing licenses to these establishments.
How carefully the company seeks to avoid all appear¬
ance of encouraging people to drink is well illustrated by
the following incident. Some time ago a lot of imported
whisky was received, each bottle of which was adorned
with a high-colored label, bearing a portrait of the poet
Burns, with this subscription : —
" Freedom and whisky gang thegither,—
Tak off yer dram."
These lines were held not to be in consonance with the
views of the company, and were accordingly cut out.
Effects of the System.
I. Reduction of Licenses.
As elsewhere, the first striking result from the new
order in Bergen wTas a reduction of the number of licensed
brandy shops. We already know that the authorities re¬
fused at the very outset to concede as many licenses as
the company called for, fixing the number at 14. Instead
of seeking to enlarge it concurrently with the growth of
the population, the directors thought, after a while, that
they could dispense with one bar, and immediately did so.
But last year it was found that, for the sake of order and
adequate supervision, it was necessary to add another bar.
Thus, while the company has earnestly endeavored to di¬
minish the temptation to drink, it has exercised great
care in locating the bar trade places about the city, al¬
ways mindful that a first condition to success is a com¬
plete control of the traffic.
The following table gives the number of licenses used,
O O
and their proportion to the population of the city: —
112 THE NORWEGIAN SYSTEM, ETC. [Feb.
Licenses and Population in Bergen, 1877-91.
YEARS.
Estimated
Popula¬
tion.
Number
of Bar-
trade
Licenses.
Inhabi¬
tants
to
Each
License.
Number
of
Retail
Licenses
Inhabi¬
tants
to
Each
License.
1877
40,760
12
3,396
2
20,380
1878
41,512
12
3,459
2
20,756
1879
42,280
12
3,523
2
21,140
1880
43,062
11
3,914
3
14,354
1881
43,858
11
3,987
3
14,619
1882,
44,669
11
4,066
3
14,889
1883,
45,493
11
4,135
3
15,164
1884
46,332
11
4,212
3
15,444
1885
47,995
11
4,363
3
15,998
1886,
48,335
11
4,394
3
10,111
1887,
49,623
11
4,511
3
16,541
1888,
60,902
11
4,627
3
16,967
1889
52,252
10
6,225
4
13,063
1890,
53,686
10
5,368
4
13,421
1891,
55,112
10
5,511
4
13,778
1892,
56,513
11
5,137
4
14,128
If a first step toward intelligent and progressive reform
is to reduce the number of licensed places, it has surely
been taken in Bergen. Even under a regime of no-
c5 O
license, the opportunities for buying liquor in a city of
the size of Bergen, and a seaport, would hardly be fewer
for those bent on getting it. The experience of a few
years convinced the directors of the Bergen company of
the dangerous competition arising from the sale of beer
and wine by private dealers, which threatened to undo to
some extent the effective work of the company. Measures
to place these shops under a better police surveillance
were soon adopted. But, satisfied that nothing short of
a monopoly of this traffic, as well, would answer, 3 wine
and beer licenses were acquired in 1883. This number
has since been increased to 4. While the company has
doubtless been constrained to move slowly in this matter,
through the consideration that the proposed change must
1894.]
HOUSE —No. 192.
113
be gradual and not hastened in advance of public opinion,
the existence of 56 beer and wine shops still owned by
private persons seems hardly justifiable. There is a
growing sentiment in favor of a monopolization of the
bar trade in beer by the company, and it may confidently
be predicted that it will take place before long. The 4
beer shops referred to are controlled on the principles
governing the sale of brandy. Hitherto they have been
operated with loss.
II. Reduced Consumption of Liquor.
To regard only the statistics of sales by the company
in estimating the local consumption would be as unfair as
to claim that the actual abuse of liquor is represented by
the quantity consumed. The facts to be considered in
our present inquiry are : that Bergen is the chief centre
of trade on the western coast, and that it is the most im¬
portant port and the objective point of nearly the whole
tourist traffic. The floating population of the city, thus,
at times, becomes unusually large, and affects consump¬
tion materially. However, too great prominence must
not be given the supposed influence in this respect of the
tourist traffic. The greatly increased purchase of whisky
is chiefly attributable to local consumption. In Bergen,
as in all other towns visited, the liquor in question has
become popular with the natives, and supplanted cognac.
Further comment on the factors influencing the con¬
sumption in Bergen is superfluous. After a careful investi¬
gation, it proves a conservative estimate to say that at
least one-fourth of the whole consumption, as shown by
the sales through the medium of the company, is extra-
local. This is corroborated by a printed statement from
the chief director. Hence one-fourth of the total quantity
sold has been deducted in the following table : —
114 THE NORWEGIAN SYSTEM, ETC. [Feb.
Consumption of Liquor in Bergen from 1S77 to 1S92.
YEARS.
Estimated
Popu¬
lation.
Consumed
at the
Bars
(Quarts).
Sold in
Bottles at
Retail
Stores
(Quaits).
Sold at
Chief
Ware¬
house at
Retail
(Quui ts).
Total,
deducting
One-
fourth
(Quarts).
Average
Consump¬
tion at
Bars, per
Inhabitant
(Quarts).
Total
Average
Consump¬
tion per
Inhabitant
(Quarts).
1877,
40,760
103,566
166,810
11,752
211,596
2.58
5.19
3878,
41,512
90,962
140,689
7,933
179,691
2.22
4.32
1879,
42,280
73,812
134,291
8,389
162,369
1.79
3.84
1880,
43,062
68,508
136,010
8,123
159,480.7
1.61
3.7
1881,
43,858
73,574
147,603
8,526
172,277.2
1.70
3.92
1882,
44,669
77,569
156,654
7,025
180,936
1.74
4.05
1883,
45,493
78,744
160,126
7,064
184,450.5
1.73
4.05
1884,
46,332
81,853
165,761
7,083
191,022.7
1.76
4.12
1885,
47,995
83,719
159,820
6,091
187,222.5
1.79
3.90
18S6,
48,335
85,629
154,200
11,893
189,016.5
1.76
3.91
1887,
49,623
86,924
346,220
21,146
190,717.5
1.74
3.84
1888,
50,902
84,569
139,961
26,351
188,160.7
1.65
3.69
18S9,
52,252
86,286
153,052
28,421
200,819.2
1.64
3.84
1890,
53,686
88,844
177,652
30,894
223,042.5
1.64
4.15
1891,
55,112
97,100
195,109
39,133
248,506.5
3.75
4.50
1892,
56,513
101,406
204,825
45,464
263,772.4
1.79
4.66
The exact quantity of liquor consumed per inhabitant
in the years just prior to the establishment of the com¬
pany is not accurately known. But, judging from the
excise duty paid by the company in 1877, which was
probably based on the consumption of 1876, the con¬
sumption of 1877 was very much less than that of 1876,
and was the longest step in the notable decline in con¬
sumption, which continued, with some fluctuations, until
1890. Since then a gradual rise is observable, the cause
of which cannot be definitely ascertained. Improved
economic conditions, increased tourist traffic and the
larger foreign shipping may have helped to swell the sales.
At all events, the growth of extra-local consumption has
been much more noticeable in late years. If, then, the
latter is now to be accredited with at least one-fourth of
the total, the proportion was less, say from 1877 to 1887.
However, the increase confronting us is not in the least
alarming, much less of such magnitude as to warrant the
1894.]
HOUSE —No. 192.
115
assumption that the usefulness of the company system is
on the wane. As long as liquor is sold, no system of
control can prevent fluctuations in consumption.
The sales over the bar furnish the surest indication of
the effectiveness of the system. These have declined 2.08
per cent, since 1877, while the population has increased
38 per cent. The precise local consumption at bars is of
course considerably less than represented in our table, but
cannot be distinguished from that due to the transient
O
population. The sales at the chief warehouse nearly
doubled in 1886, as compared with the previous year.
This was due to the removal of certain restrictions placed
upon the sale of liquor by the liter (1.0567 quarts). It
was soon discovered that purchases in this quantity offered
a slight advantage to the consumer.
C> O
Calculating the average consumption per inhabitant in
five-year periods, the following results
appear:—
FIVE-YEAR PERIODS.
Total Average
Consumption
per Inhabitant,
One-fourth
deducted
(Quarts).
Average
Consumption
per
Inhabitant
at Bars
(Quarts).
1877-81
4.27
1.97
1881-86,
4.01
1.74
1886-91,
3.99
1.69
III. Reduced Number of Arrests for Drunkenness.
In Norway the regulations governing the police in deal¬
ing with cases of intoxication are prescribed by the munic¬
ipal authorities. There is no general law on the subject,
but the practice is nearly uniform. As a rule, the police
are authorized to arrest any person appearing in an in¬
toxicated state in a public place.* Naturally, such an
extreme measure is but rarely resorted to, and unless the
drunken individual becomes too noisy, unruly, or is un¬
able to take care of himself, he is allowed to go un¬
molested. From Bergen we receive some interesting
O O
* " Any person who shows plainly by his actions that he is intoxicated, must
not show himself on a public thoroughfare, and may for such offence be put in
prison until he becomes sober" (police regulations of Bergen).
116 THE NORWEGIAN SYSTEM, ETC. [Feb.
light on the number of arrests which must be credited to
the city, and vice versa. Unfortunately, the statistics
cover only the last seven years.
The next table gives an exhibit of the number of ar¬
rests, their classification, and the average per 1,000 in¬
habitants : —
Arrests for Drunkenness in Bergen, 1877-92.
YEARS.
Estimated
Population.
Number
of
Arrests.
Resi¬
dents.
Non-resi¬
dents.
Total
Average
per
1,000 In¬
habitants.
Average
of
Residents
per In¬
habitant.
1877, ....
40,760
1,013
-
-
24.8
-
1878, ....
41,512
883
-
-
21.2
-
1S79, ....
42,280
820
-
-
19.3
-
ISsO
43,062
901
-
-
20.9
-
18S1
43,858
738
-
-
16.8
-
1882, ....
44,669
596
-
-
13.3
-
1883, ....
45,493
838
-
-
18.4
-
1SS4, ....
46,332
708
-
-
15.2
-
1885, ....
47,995
807
602
205
16.8
12.5
1S86, ....
48,335
701
476
225
14.4
9.8
18S7
49,623
685
531
154
13.8
10.7
18S8
50,902
728
544
184
14.3
10.6
18S9, ....
52,252
729
584
145
13.9
11.1
1890, ....
53,686
1,122
934
188
20.8
17.3
1891, ....
55,112
1,047
889
15S
18.9
16.1
1S92
56,513
690
506
184
12.2
8.9
The astonishing increase of arrests in 1890 and 1891 is
partly due to a rigid enforcement of the law and partly to
the appointment of a new inspector of police. Pre¬
viously, the order had been to arrest only those intoxi¬
cated persons who created a disturbance, or otherwise
became a nuisance, and to let those go who were able to
take care of themselves and agreed to proceed quietly to
their homes when so requested. In 1890 an indiscrimi¬
nate crusade was begun against everybody known or sup¬
posed to be under the influence of liquor. Some exceed¬
ingly lamentable instances of abuse on the part of the
police came to the knowledge of the public. During 1892
1894.]
HOUSE —Xo. 192.
117
the police were compelled, through the indignation
aroused by their earlier conduct, to exercise more dis¬
cretion. In consequence, the number of arrests for this
year is much smaller. The facts cited above go far to
show how untrustworthy statistics of drunkenness are as
a means of judging the state of insobriety in any commu¬
nity. But, with all necessary reservation in this respect,
our table is fairly indicative of the conditions in Bergen
and illustrative of the benefits of the company system.
Even the police declare unhesitatingly that the gradual de¬
crease in number of arrests is principally due to the re¬
strictions placed on the sale of brandy. Bergen would,
however, unquestionably furnish a better showing if the
sale of beer were in the hands of the company. As it is,
the city may confidently challenge comparison with any
other of its size.
Acting on the supposition that the manner in which the
liquor traffic conducted under the company system tends
to exterminate the race of habitual and confirmed drunk¬
ards, a classification of the persons arrested, according
to habits, was commenced in 1885. The results appear
below : —
Number of Persons
arrested classed as —
Number of Persons
arrested classed as —
YEARS.
Confirmed
Drunkards.
Occasionally
or Accident
ally Drunk.
YEARS.
Confirmed
Drunkards.
Occasionally
or Accident¬
ally Drunk.
1885,
257
345
1889,
259
325
1886,
142
343
1890,
212
722
1887,
160
371
1891,
107
782
1888,
180
364
1892,
149
357
The figures give entire support to the statement of
both the police and managers employed by the company
that the confirmed drunkards are not nearly so numerous
as formerly. It has further been commonly observed that
nearly all persons coming under this head are men well
along in years. Drunkenness among women is almost
unknown. The explanation given of the cause of the
large increase in number of arrests for 1890 and 1891 is
118 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
fully sustained. It would seem natural that the vigorous
campaign instituted by the police should result in bringing
a greater number of old offenders before the courts, but
this has not been the case. The increase is only of arrests
of persons designated as occasionally or accidentally drunk.
Arrests for Illegal Sole of Liquor.
The Bergen company has used every means within its
power to detect violations of the liquor laws, knowing
well that the success of its efforts depends on its ability
to control the traffic. We give a table showing the num¬
ber of arrests for illegal sales of brandy from 1877 to
1892. No satisfactory explanation of the sudden increase
for 1892 has been given. On the whole, it may be said
that the offences dealt with are usually of a minor char¬
acter, and that the total quantity of liquor illegally dis¬
pensed is very insignificant. Systematic evasion of the
law is but rarely met with. No complete record has been
kept of the arrests for illicit traffic in beer and wine.
Arrests for Illegal Sale of Liquor, 1877-92.
YEARS.
Number
of
Arrests.
YEARS.
Number
of
Arrests.
1ST7,
15
1885,
14
1878
16
1886
10
1879,
11
1887
6
1880,
8
1888
9
1881,
9
1S89
5
1882,
6
1890,
6
1883
16
1891,
5
18S4,
15
1892
18
No statistical evidence offers a safer criterion of the
usefulness of the Bergen company than the record kept
of refusals to supply minors and intoxicated persons with
liquor. The official statement of the number of such re¬
fusals is subjoined : —
1894.]
HOUSE —No. 192.
119
Number of Refusals to Minors and Intoxicated Persons,
1878-92.
YEARS.
In Bar-
trade
Places.
Sh0BpeBer YEARS"
In Bar-
traiie
Places.
In Beer
Shops.
1S78,
1879,
1880,
1831,
IS 82,
1S83,
1SS4,
1885,
36,180
25,530
19,166
17,620
16,726
16,468
16,776
15,185
* 1886, .
* 1887, .
* 1888, .
* 1889, .
* 1890, .
3,118 1391, .
2,920 1892, .
3,258
14,378
13,673
13,067
12,610
13,299
13,200
13,819
2,947
2,739
2,587
2,816
2,762
2,526
2,42 L
The gradual diminution of the number of refusals does
not argue relaxed vigilance on the part of the managers of
bars, or neglect of the company to enforce its own regula¬
tions. On the contrary, the managers perform their
duties even better than before, as they become adepts in
the art of detecting the first sign of incipient intoxication,
as well as in determining the age of the applicant; and
the officers of the company deal as severely as ever with
negligent employees. But, in the course of time, the pub¬
lic have become imbued with the conviction that the com¬
pany pei mits no exception to its rules, and that no amount
of coaxing or bullving can induce a manager to sell
O JO
drink to a minor or an intoxicated person. As a result
of education in this respect, the number of refusals has
grown less from year to year in proportion to the popula¬
tion. However stringent the laws governing the liquor
traffic may be, and however impartial their enforcement,
it is hardly conceivable that results similar to those pre¬
sented in the last table could be attained in any commu¬
nity where drink selling is carried on by private indi¬
viduals for personal profit.
The evidence adduced goes far to show that in Bergen
the company has accomplished all that has been claimed
for it, although not all that is desirable. The latter would
7 O
hardly be insisted upon by its most ardent supporter.
* The company held no beer license until 1883.
120 THE NORWEGIAN SYSTEM, ETC. [Feb.
Indeed, it were absurd to suppose that a system ad¬
vancing on the principle that all temperance reform must
be gradual in order to produce lasting effects should have
reached the height of its usefulness in the space of fifteen
years. There is abundant testimony demonstrating con¬
clusively that sudden sweeping measures, when dealing
with a matter of such exceptional magnitude and intricacy
as a liquor question, prove abortive in the end.
The slowness with which the company has moved in the
direction of securing' control of the bar trade in beer has
been referred to, and is open to criticism. Yet the direc¬
tors have been alive to the beneficial influence of these
beer shops, and made a step toward taking them out of
private hands, which at no distant time means a full
monopoly of all sale of intoxicants at retail and over the
bar by the company. That done, some defects of the
present liquor legislation remedied, and the company sys¬
tem in Bergen will be completely tested. Meanwhile,
the more than fifteen years of its activity have made evi¬
dent its great benefits, and the soundness of the principles
upon which it is established. This appears to be the con¬
sensus of all who are intimately acquainted with con¬
ditions in Bergen, and whose opinions are entitled to a
hearing.
Within a year Mr. Thomas M. Wilson, the author of
" Local Option in Norway," addressed the following
question to a number of representative men of the city : —
Is it your opinion that the operations of the brand}7 company
have been of benefit to the city and its population, and that
they have in any degree promoted the movement against the
intemperate use of intoxicating liquors?
Answers, cautiously and deliberately put in writing,
were received from the governor of the province, the
mayor, the consuls of the LTnited States, England, France
and Germany, parliamentary representatives for Bergen,
the bishop and leading clergymen, bank presidents, physi¬
cians, editors, the inspectors of the poor and of pawn¬
broker shops, and others. Without a dissenting voice the
benefits of the system are acknowledged, some writing
1894.]
HOUSE —No. 192.
121
with enthusiasm of the results obtained. The chief of
police, for instance, writes : —
The police officials are, from their official experience, enabled
to bear testimony in the strongest terms to the efficacy of the
control exercised by the company, and to its great value,
directly and indirectly, in promoting sobriety and improving the
drink habits of the people.
A reading of the different answers indicates that the
drink habits of the people of Bergen in general have been
revolutionized in the past fifteen years.
The Company System in Christiania.
A brief survey of the operations of the Christiania
company seems called for, as the assertion has been
freely made that the system has proved a failure in the
capital of Norway, and in view of the further considera¬
tion that the modus operandi in this city differs somewhat
from that elsewhere in vogue.
The privilege conceded the company, to date from
July, 1885, covers the right to sell spirits over the bar
and at retail, as well as to sell beer, wine, mead and cider
by the glass or bottle.
Of the 72 licenses for bar trade in brandy previously
existing, a number were held for life, and, according to
the law of 1880, could only be acquired by granting the
dispossessed holder a life annuity corresponding to the
average income from the business during the three pre¬
ceding years. These licenses were expropriated at once,
at great expense. A number of licenses to sell brandy
and other liquors at retail, which were granted for life,
still remain in the hands of private persons. The com¬
pany was well aware of the fact that a competition sure
to cripple its own operations to a large extent would thus
have to be faced at the start, but hesitated to assume the
financial burden the expropriation of these licenses would
entail, and was afraid of arousing a greater animosity
toward the system than already manifested. It was fur¬
ther known that the holders of the privileges in question
were well advanced in age, and that the licenses would
122 T1IE NORWEGIAN SYSTEM, ETC. [Feb.
come into the possession of the company in the natural
course of events. At present 27 of these special licenses
exist.
The by laws of the Christiania company are similar to
those of the Bergen company, and require no special
mention.
How the Traffic is Conducted.
To-day the company holds 27 licenses for bar trade in
brandy, 15 of which are used for the ordinary saloons,
and 11 are operated in hotels, cafes, and restaurants, 1
only for a part of the year. The owners of these estab¬
lishments act as managers in the service of the company.
The contract made with them stipulates expressly that, as
the company has been organized for the purpose of regu¬
lating the liquor traffic in the least objectionable manner
possible, the manager is bound not to encourage, but do
all in his power to prevent, intoxication. All sale of
spirituous liquors is therefore to be made on the com¬
pany's account, and no profit on it to be retained by the
manager. The latter must invariably follow the price-list
fixed by the company, a copy of which must be posted for
public inspection on the premises where sales are made.
It is not permitted to sell on credit except to travellers
while sojourning at the hotel. As regards the details of
the business, the sub-licensee is governed by the instruc¬
tions given by the directors. The manager is further
obliged to purchase all liquors from the company, and
serve them in vessels and glasses provided by the com¬
pany. The interests of the latter are guarded by an
employee specially appointed by the directors. Other
necessary help must be engaged by the manager, who is
held responsible for the conduct and acts of those in his
service. For any violations of the contract the manager
may be fined to the amount of $53.60, the money going
to the poor fund of the municipality. Bonds must be
given by the sub-licensee as security for the fulfilment of
his duties, as well as for the payment of eventual fines or
damages. As compensation for all expenses for help,
rent, fuel, etc., a fixed annual sum is guaranteed the man-
189-4.]
HOUSE —No. 192.
123
ager. The contract is made for one year, but may be
annulled on three months' notice. In case the manager
violates the contract or the law, he is obliged to resign at
once, without receiving warning or any compensation ; and,
in the latter event, he is furthermore required to refund
the expenditures incurred for the remainder of the year,
and to make good all losses to the company. The direc¬
tors reserve the right to cancel the contract whenever they
see fit, without specifying any reason. Finally, all con¬
tracts with sub-licensees must be approved by the magis¬
tracy and municipal council.
Severe as the provisions of the above contract are,
they do not adequately prevent abuses. The sale of
spirits at hotels, cafes and eating-houses in Christiania is
productive of considerable intemperance. The practice
of sub-licensing restaurants and cafes, even when attached
to hotels, must always remain open to criticism; and
there appears to be no valid reason why the quantity sold
to the same individual should be limited at the common
bars and not in sub-licensed establishments. Such dis¬
crimination in favor of the latter is contrary to the com¬
pany principles as elsewhere accepted in Norway; even
more so was the granting of free licenses to the principal
theatre, one hotel and two clubs. It has been excused on
the ground that public opinion demanded it. Present
symptoms indicate that public sentiment has turned, and
the action of the licensing power has engendered no mean
hostility toward the company. It must be stated, how¬
ever, that both at the hotel and theatre in question the
sale of liquors, which is restricted to the respective
patrons, has occasioned very little abuse. Not so at the
clubs, although here the serving of spirits is limited to
members.
The ordinary bar trade is usually carried on in three
divisions, — a shop, restaurant and cafe. The two last
mentioned are generally located in the second story, and
are for the accommodation of people willing to pay for
finer surroundings and more expensive goods. The regu¬
lations governing all divisions are identical, and of the
same nature as those cited for Bergen, as are also the
124 THE NORWEGIAN SYSTEM, ETC. [Feb.
instructions governing managers. Smoking is everywhere
forbidden. A large placard tells the customer that he
must leave at once when having taken his dram or beer.
In some bar-rooms scrolls donated by the queen, and con¬
taining passages from the Bible warning against the evils
of intemperance, are prominently displayed. Contrary
to expectation, they have only exceptionally been made
the object of profane remarks.
The bar trade is admirably managed, but one cannot
help regretting the practice of combining the sale of beer
with that of brandy. The powers of the managers are
very comprehensive, and used to their fullest extent. An
instance was accidentally observed of how a manager
punished a seemingly slight lack of courtesy by denying
the customer access to the bar for a week, and then insisted
upon an humble apology. Yet only by such means has
it been possible to inculcate due respect for the rules of
the company. The blacklisting of habitual offenders has
proved very effective. Little trouble is now experienced,
whereas at the beginning the aid of the police was
frequently required to maintain order.
Effects of the System.
In Christiania, as well as in all other cities where the
sale of liquor has been taken out of the hands of private
dealers, the first beneficial result of the new order of
things has been a
Reduction of Licenses.
The following table gives the number of licenses oper¬
ated from 1885 to 1892, as well as the number of inhabi¬
tants to each, thus including the year previous to the
establishment of the company. The column showing the
retail licenses includes those still owned by private per¬
sons and the 8 used by the company.
1894.] HOUSE —No. 192. 125
Licenses and Population in Christiania, 1885-92.
YEAR3.
Estimated
Number of Bars
operated by —
Inhabi¬
tants to
Number
of
Inhabi¬
tants to
Population.
The
Company.
Others.
Each
License.
Retail
Places.
Each
License.
1885, ....
130,790
-
72
1,816
44
2,972
1886, ....
134,036
27
4
4,323
43
3,117
1887, ....
135,615
29
4
4,109
42
3,228
1888, ....
138,319
28
4
4,322
41
3,373
1889,....
143,347
26
4
4,778
40
3,583
1890, ....
151,130
25
4
5,211
40
3,778
1891, ....
158,815
27
4
5,123
37
4,292
1892, ....
165,500
26
4
5,516
35
4,728
Since the advent of the company the number of liar-
trade places has decreased 58.3 per cent., concurrently
with an increase of 26.5 per cent, in population. The
temptation to drink must have diminished to a far greater
extent, owing to the hundred-fold stricter control exer¬
cised at the places where liquor is dispensed. The num¬
ber of retail shops has grown less year by year. Before
long this part of the traffic will be completely monopo¬
lized by the company, and its efficiency will be proportion¬
ately heightened.
Consumption of Liquor.
Only very imperfect statistics of consumption can be
offered for Christiania. The quantity disposed of by the
company is absolutely known, but not that sold by the
privileged licensees and private retailers. According to
the excise levied on the estimated sales for 1892, about
715,375 quarts must be supposed to represent the trans¬
actions of the private retailers, or 268,381 quarts more
than sold by the company. While the former ply their
trade all over the country, and it may thus be taken for
granted that only a fraction of their goods find a market
in Christiania, this quantity cannot be ascertained. The
directors of the company estimate that one-fourth of their
goods are consumed by non-residents. Knowing that the
126 THE NORWEGIAN SYSTEM, ETC. [Feb.
total sales by the company do not represent the whole
local consumption, the quantity has not been deducted in
our table.
Quantity of Liquor sold by the Cliristiania Companies,
18S6-02.
YEARS.
Estimated
Population.
Quarts of Liquor sold —
Over the
Bar.
At Retail.
Total.
1886,
134,036
169,848
129,033
298,881
1887,
135,615
150,123
159,448
309,571
1S88,
133,319
165,466
184,054
349,520
1889,
143,347
187,274
210,691
397,965
1890,
151,130
192,380
207,785
400,165
1891,
158,815
216,589
202,254
418,843
1892,
165,500
215,995.7
232,049.9
445,995.6
Consumed
at Bars
per
Inhabitant.
Total Aver¬
age Con¬
sumption
per
Inhabitant.
1.26
1.10
1.19
1.30
1.27
1.36
1.30
2.22
2.28
2.56
2.77
2.64
2.63
2.69
As the entire bar trade is monopolized by the company,
it ought to furnish an indication of the results of the
system. "While the fluctuations of this traffic are incon¬
siderable, no diminution is visible, on the contrary. But
it must be remembered that the whole bar trade is not
placed under the same restrictions. There is reason to
believe that this particular consumption would decline
considerably were the hotel, restaurant and cafe bars
abolished.
Arrests for Drunkenness.
The next table shows the number of arrests for
drunkenness alone, and for drunkenness in connection
with other crimes, from 1876 to 1890. The official
reports for 1891 and 1892 class both kinds of arrests
together.
1894.]
HOUSE —No. 192.
127
Arrests for Drunkenness alone and for Drunkenness in Con¬
nection with Other Crimes in Christiania, 1876-90.
YEAR3.
Population.
Arrests for
Drunkenness alone.
Arrests for Drunken¬
ness in Connection
with
Other Crimes.
Total.
Per 1,000 In¬
habitants.
Total.
Per 1,000 In¬
habitants.
1876, ....
79,022
5,247
66.4
3,452
43.7
1877, ....
81,801
7,318
89.5
2,963
36.2
1878, ....
112,977
5,785
51.2
2,560
22.7
1879, ....
116,801
4,863
41.6
2,208
18.9
1880, ....
119,407
4,880
40.9
1,814
15.2
1881, ....
122,036
4,330
35.5
1,682
13.8
1882, ....
122,424
4,176
34.1
1,376
11.2
1883, ....
124,155
4,429
35.7
1,490
12.0
1884, ....
128,300
4,297
33.5
1,644
12.8
1885, ....
130,790
4,927
37.7
1,547
11.8
1886, ....
134,036
3,425
25.6
1,218
9.1
1887, ....
135,615
3,834
28.3
1,251
9.2
1888, ....
138,319
5,616
40.6
1,689
12.2
1889
143,347
5,902
41.2
2,000
14.0
1890, ....
151,130
7,843
51.9
2,253
14.9
The total for 1891 is 11,602, and for 1892 11,496.
Compared with conditions in 1876, the statistics of
drunkenness for the last year present a favorable show¬
ing; yet it were obviously unfair to ascribe the improve¬
ment only to the company system. The truth of the
matter is that drunkenness is not likely to decrease in
proportion to the decline in consumption of liquor, despite
all efforts to check the consumption of spirits, as long as
the bar trade in beer remains in the hands of private deal¬
ers. The consumption of malt beverages has grown
enormously in Christiania during late years, perhaps to
some extent in direct consequence of the restrictions
imposed upon the brandy traffic. A beer license may be
had for the sum of $64.32 per annum, — so small an
amount that the profit on the sale of a few bottles a day
will easily cover it,—and can be obtained by almost any
one. Knowing, furthermore, that Christiania is the centre
128 THE NORWEGIAN SYSTEM, ETC. [Feb.
of the brewing interests of the country, one can hardly be
surprised at the springing up of large beer halls on every
side when the brandy traffic ceased to be a private busi¬
ness. The introduction of variety entertainments in
places where beer is sold has also been a powerful factor
in stimulating consumption. Thus, and in other ways,
the inordinate consumption of beer, generally of a heavy
quality, has become responsible for a great, if not the
greatest, part of the intemperance prevalent in the city.
Hitherto the company has not manifested much eagerness
to monopolize the bar sale of malt liquors, but will doubt¬
less do so in time. There is a growing sentiment in favor
of this step, which will be made easier when some of
the defects of the present legislation have been supplied.
The beneficial results of the rigorous discipline exer¬
cised in connection with the serving of brandy is shown
by the number of refusals to sell liquor to minors and
intoxicated persons : —
Number of Refusals.
188G, Statistics incomplete
1887, 34,399
1888, 29,5."»0
1889, 43,951
1890, 53,374
1891 54,898
1892 52,336
The many adverse circumstances with which it has had
to contend, no less than its short-lived existence, have
combined to make the advantages of the company less
conspicuous in Christiania than in any other city in the
country. This fact has been seized upon by local poli¬
ticians, who, by posing as friends of absolute prohibition,
have sought to gain adherents by antagonizing the com¬
pany at every turn. But notwithstanding its partial
monopoly, and the hostility toward it manifested in some
quarters, the Christiania company is a firmly rooted
organization, and testimony to its usefulness is far from
lacking.
The replies to a query addressed by Mr. Wilson to
some of the most prominent men in the capital, the chief
1894.]
HOUSE —No. 192.
129
of police, the bishop of the diocese, the mayor and others,
as to the effects of the system, were, without exception,
favorable. The chief of police writes that the company
system has, "upon the whole, been of advantage to the
city and its inhabitants. It has in some degree dimin-
ished drunkenness here, at all events as far as regards
the consumption of spirits in public places where such
are served. But the total consumption of spirituous
drinks has not been diminished."
"While the present investigation was in progress, a mass
meeting of all temperance organizations in the city was .
called, to protest against the abuses connected with the
sale of beer, especially at the variety amusement resorts.
Thousands of men and women paraded through the
principal streets, accompanied by bands of music, carry¬
ing banners and transparencies bearing inscriptions, such
as " Our final aim is total prohibition," "Away with beer
halls," etc. In vain the long columns were searched for a
banner with an insci'iption indicating hostility to the
company. At the meeting proper vigorous temperance
speeches were made, and the beer halls roundly denounced.
But not a single voice was lifted against the company, not
even in criticism of any of its methods. Coming from
such an assemblage, this indirect endorsement of the com¬
pany system is most significant, and typical of the general
attitude of the temperance people.
Extext of tiie System in Norway.
The rapidity with which the company system reached
its present extension implies the value placed upon it by
the Norwegians. The law authorizing the new departure
went into effect in 1871. By 1875, 20 companies had
been organized; by 1880, no less than 41 ; by 1885, 48 ;
and since the number has reached 51, its present limit.
In other words, the system has been adopted in every
town and village applying for concession except three, —
none of them with more than 800 inhabitants, — in which
the brandy traffic is still in the hands of private persons.
In five towns and villages no liquor is sold.
130 THE NORWEGIAN SYSTEM, ETC. [Feb.
In the country districts only 27 licenses for the sale of
spirits remain, nearly all of them in the fishery com¬
munities. Thus one may well say that outside the towns
prohibition prevails in Norway, as far as legalized sales
of brandy are concerned. Extended personal investigation
and a study of the affairs of the companies as presented
in by-laws and annual reports have brought the conviction
that the enterprise is conducted, without exception, in a
perfectly honest and intelligent manner, for the purpose
of encouraging sobriety. AYith the foremost citizens in
the municipalities at the head of the companies or among
the stockholders, questionable methods of administration
could hardly be looked for. The assertion that the stock
of the companies is largely sought as investments, on
account of the high rate of interest paid, appears utterly
without foundation. In one or two instances shares have
commanded a premium, as people, not unnaturally, wished
to have a vote in determining the distribution of profits,
although it could never be a question of personal gain.
An examination into the amount of capital stock con¬
trolled by the companies, the number of shareholders and
the dividends paid them has brought out the following
facts : —
1. That the capital stock is never excessive, and
usually only the amount required for the immediate con¬
duct of the business has been called in.
2. That the number of shareholders varies in propor¬
tion to the size of the capital. The Langesund company,
for instance, one of the smallest, has a capital stock of
$160, divided among 15 shareholders. In Tbnsberg the
capital stock of $496.60 is distributed on 67 hands, and
in Tromso the $2,680 of stock is held by 76 persons.
Not a single case was discovered which save the ri<>ht to
a o c
surmise that the shares offered any temptation as in¬
vestment.
3. That many companies will not permit the same per¬
son to hold several shares.
4. That, as the capital stock is generally small, or
only a part of it (often ten or twenty-five per cent.) is
1894.]
HOUSE—No. 192.
131
paid up, the interest falling to the individual shareholder
is frequently a mere pittance, amounting in Tonsberg, for
example, to the magnificent sum of 13 cents per share ; in
the city of Larvik, to $2.68, in 1892. The largest divi¬
dends were paid to the shareholders of the Christiania
company, who received, on an average, about $15 each
last year.
The present rate of interest may be somewhat high,
although not more than three-fourths per cent, in excess
of that paid by the Land Mortgage Bank of Norway;
but, in view of the small amount received by each share¬
holder, it is of no consequence. It is worse than idle
talk to say that companies are run for the benefit of
shareholders.
Loose methods of administration are well-nigh impos¬
sible in Norway, owing to the control exercised by the
Department of the Interior, to which full annual returns
must be made. A company found to deviate from its pur¬
pose would lose its charter, as experience has shown.
The impression has gone abroad that the municipalities
have a considerable share in the administration of the
companies, and endeavor to increase the traffic for the
sake of the profits. Nothing is more remote from the
actual truth. The municipalities cannot hold stock nor
dictate in any manner how the traffic shall be conducted.
They are not even the final licensing power. The ques¬
tion in how far municipal interests receive undue con¬
sideration in the distribution of profits will be treated later
on. In this connection it deserves mention that the com¬
pany system has never been made a political question.
The companies themselves have been undisturbed by the
party strife raging in the country, and have not sought to
wield their influence one way or the other.
How the Traffic is conducted in General.
The restrictive measures adopted by the various com¬
panies, especially for the bar trade in brandy, are of the
same general nature, although not quite uniform. In every
instance the managers are paid fixed salaries, and all
132 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
temptation to push sales removed. In some places any
neglect of which they may become guilty is punished by
tines. The general rules governing the bar trade, the
quantity of liquor which may be sold to the same person
at one time, etc., are patterned after those in effect in
Bergen and Christiansand. It is a common practice to
black-list habitual drunkards, and to deny all persons
depending on public support entrance to the saloons.
Many companies employ their own detectives, to guard
against violations of the liquor laws, or offer a liberal re¬
ward for any information leading to the apprehension of
offenders. A general tendency to further restrictions of
the whole traffic, through earlier closing hours, etc., is
plainly observable. In the matter of sub-licensing hotels
great care is exercised, and many of the principal cities
refuse it altogether. Several places have a so-called
'' wandering license," which is made use of at festive
gatherings where liquor is dispensed. But even on such
occasions the rules governing the ordinary bar trade are
enforced. In short, while it is not asserted that the traffic
is everywhere equally well managed, nor in every case
with quite the severity to be wished for, not a single in¬
stance of offensive methods has come to notice.
Reduction of Licenses.
The introduction of the company system has, in all
cities but two, Christiania and Drammen, been followed
by the expropriation of all licenses held by special privi¬
lege, where such were found. The next table shows the
reduction of licenses under the company system : —
181)4.] HOUSE —No. 192. 133
Reduction of Licenses under the Company System.
CITIE8 AND
TOWNS.
Number
of Licenses
issued to
Private
Dealers in
1870.
Number
of Licensee
used by
Companies
in 1892.
CITIES AND
TOWNS.
Number
of Licenses
issued to
Private
Dealers in
1870.
Number
of Licenses
used by
Companies
in 1892.
Christiania,
128
27
Risor,
3
2
Drobak,
4
1
Tvedestrand, .
2
1
Mose, .
15
4
Arendal, .
22
6
Sarpsborg, .
10
4
Griraetad,.
5
3
Fredriketad,
18
10
Lillesand, .
2
1
Frediikshald,
16
11
Chrisliansand, .
9
4
Kongsvinger,
4
3
Mandal,
3
3
Hamar,
4
4
Farsund, .
4
1
Lillehammer,
13
2
Flekkefjord,
4
1
Gjovik,
3
4
Egerennd,.
1
2
Honefos,
3
2
Stavanger,
10
4
Kongsberg,
9
4
Sogndal, .
2
1
Drammen, .
26
12
Bergen,
25
13
Holraestrand,
6
1
Aalesund, .
18
4
Horten,
6
3
Molde,
5
1
Aasgaardstrand,
2
1
Christiansund, .
12
2
Tonsberg, .
14
5
Throndbjem, .
30
15
Sandefjord, .
2
1
Levanger, .
4
2
Larvik,
12
5
Stenkjar, .
3
2
Skien, .
11
3
Namsos, .
3
1
Porsgraud .
6
7
Tromso, .
2
3
Brevig,
3
2
Hammerfest,
1
4
Langesund,
1
1
Vardo,
1
1
Kragero,
6
4
Vadeo,
3
1
Since the
passage
of the
law of 1871
the number of
brandy shops in the towns has been reduced from 501 to
227, or from 1 for every 591 inhabitants to 1 for every
1,413 inhabitants. In the country districts, as has already
been mentioned, only 25 shops remain, or 1 for every
8,000 inhabitants. The reduction of licenses has not
affected all towns in the same degree. It should be
observed, however, that where the privileges remain the
same as formerly the bar-trade places have nevertheless
134 THE NORWEGIAN SYSTEM, ETC. [Feb.
been reduced ; besides, the growth in population since
1871 must be kept in mind.
The vast changes wrought throughout the land in con¬
sequence of the monopolization of the retail and bar ti'ade
in spirituous liquors by the companies are too apparent to
need further analysis.
Monopolization of the Bar Trade in Beer.
The earliest experience in Norway made evident the
necessity of embracing the sale of all intoxicants under
the company monopoly. Taking the brandy traffic out of
the hands of private dealers, no less than the efforts to
check it, gave a strong impetus to the beer trade. Those
who had lost their brandy privileges naturally sought
licenses to sell beer, brewers were glad to substitute their
wares for brandy, and the inveterate toper found the free
beer shops more congenial than the .company liars
The present legislation gives every one holding an
ordinary trader's license the right to sell beer at retail.
Only the bar trade can be monopolized by the companies,
and big strides have been made toward this end. In 18
cities and towns the companies hold all such beer licenses.
In 12 places, including some of the most important
centres, the companies have acquired all privilege, with
the exception of one or two, usually held for life by hotel
keepers. It thus appears that more than half of the com¬
panies have extended their activity as far as the law
permits. Out of 645 licenses granted in 1892, the com¬
panies held 172, and 473 were in private hands. The
companies have certainly been alive to their responsibility
as moral agents, a fact which is further emphasized by the
circumstance that they have often carried on the business
in question at a large pecuniary sacrifice. A complete
monopolj' of the bar-trade in beer is but a question of time.
Reduced Consumption of Liquor.
The statistics of consumption have been computed on
the basis of 50 per cent, of alcohol. According to
official calculations, one-fortieth of the total is supposed
to be used for technical and industrial purposes, and so
1894.]
HOUSE —No. 192.
135
this fraction has been deducted. There is the greater
reason for doing this, as the sales of the companies are
given in the original figures, simply showing the number
of quarts disposed of, without regard to the percentage of
alcohol, while it is known, from statements published by
a number of companies, that the brandy sold by them
averages about 44 per cent., and in some cases less.
The following table shows, as nearly as possible, the
actual consumption of liquor in Norway from 187G to
1892: —
Consumption of Liquor in Norway, 1876-92.
YEARS.
Total
Con 8u raption
(Quarts).
Sold by
Companies
(Quarts).
Percent¬
age of
Sales by
Com¬
panies.
Estimated
Population.
Average
Con¬
sumption
per In¬
habitant
(Quarts).
1876, ....
12,639,505.71
858,056.58
6.7
1,840,000
6.8
1877
14,402,136.43
1,388,051.52
12.1
1,865,000
6.1
1878
8,728,553.32
1,597,549.52
18.3
1,890,000
4.6
1879
6,379,509.24
1,284,117.92
20.1
1,916,000
3.3
1880
7,687,968.02
1,331,788.56
17.3
1,921,000
4.0
1881
5,976,929.35
1,459,814.96
24.4
1,921,000
3.1
1882, ....
7,459,245.30
1,550,159.44
20.7
1,923,000
3.8
1883
6,549,505.86
1,832,058.24
27.9
1,928,000
3.3
1884, ....
6,894,650.49
1,934,078.00
27.8
1,924,000
3.5
1885, ....
7,047,132.30
1,844,520.56
26.3
1,959,000
3.5
1886
6,083,881.17
2,063,658.16
33.9
1,974,000
3.0
1887, ....
5,737,643.25
2,045,146.48
35.6
1,979,000
2.8
1888, ....
6,208,482.35
2,041,595.12
32.8
1,980,000
3.1
1889, ....
6,529,930.49
2,239,671.44
34.2
1,986,000
3.2
1890, ....
6,393,933.20
2,574,549.60
40.1
2,000,000
3.1
1891, ....
7,749,910.16
3,238,911.45
42.9
2,014,000
3.8
1892
6,684,470.86
3,429,133.55
51.3
2,020,000
3.3
Tracing the growth of the business done by the com¬
panies from the early beginning, we note concurrently
■with it a very marked diminution of consumption. When
the companies sold 6.7 per cent, of the total quantity,
the average per capita consumption was 6.8 quarts. Four¬
teen years later, when the companies sold 40.1 per cent.,
13G TIIE NORWEGIAN SYSTEM, ETC. [Feb.
the consumption was reduced by more than one-half, or
3.1 quarts. The year 1891 seems to form an exception.
During 1892 the total consumption has dropped 12 per
cent., as compared with the preceding year, while the
sales of the companies have increased 5 per cent. It is
supposed that the actual difference in consumption is not
as great as would appear, as considerable stock is believed
to have been left over, which of course cannot enter into
our estimate. The slight rise which took place in 1880,
1882 and 1889 is not in any way attributable to the com¬
pany system, for during those very years the rise was
accompanied by a corresponding decline in the total sales
by the companies. Thus in 1880 the companies sold only
17.3 per cent, of the total, as against 20.1 in 1879. Mean¬
while the consumption per capita increased from 3.3
quarts in the latter year to 4.0 in the former. Similar
proportions are to be observed for 1882, 1889, 1890 and
1892. In 1891 we find thatfhe consumption had increased,
notwithstanding larger sales by the companies. The low¬
est point was touched in 1887. Since then a slight but
irregular advance is observable. How is it to be accounted
for? An examination of the operations of the various
companies does not furnish an adequate answer, yet gives
too many interesting data to be left unnoticed.
Out of 51 companies, only 5 show a perceptible, but by
no means uniform, increase of sales since their organiza¬
tion, and these include the cities of Christiania, where
only a partial monopoly of the retail trade is enjoyed.
In the years when the consumption shows the greatest
increase, it is always attributed to exterior causes, such as
the influx of laborers, the expropriation of privileged
licenses, etc. But, allowing for the augmented popula¬
tion, the average consumption even in these places has
not.risen to alarming proportions.
In 9 cities and towns with companies, including 3 of
the principal ports, the total sales remain nearly station¬
ary, while the population has grown. No less than 20
companies report a general diminution of sales since their
organization, while 7 state that there has been a marked
falling off of their trade year by year.
1894.]
HOUSE —No. 192.
137
In almost every instance the bar trade shows a decrease,
a most encouraging feature.
The growth of consumption since 1887 is generally
attributed to —
1. Favorable times for the fisheries.
2. New industrial enterprises.
3. The building of canals and railroads.
4. The destruction by fire of several large towns,
which caused an unusual immigration of laborers.
5. Good crops throughout the country.
6. The sudden springing up of associations of all
kinds, both political and non-political, recruiting members
from all classes of society, which have caused to some
extent a revival of the old drinking customs.
If the figures for 1892 may serve as a criterion, there
is reason to believe that the consumption of liquor is
again on the wane.
Bearing in mind the extent of the system and its many
restrictive measures, the question will be raised, Why do
the companies sell such a comparatively small fraction
of the total quantity of spirituous liquors annually con¬
sumed? Their sales in quantities over 42 quarts show a
steady decline, amounting, in 1887, to 5.1 per cent, of the
total, and in 1891 to 3.6 per cent. The bulk of the con¬
sumption is thus affected directly from the 23 distilleries
and merchants in the towns. The answer has already been
hinted at. It is due to the wholesale trade in the hands
of private dealers. The sale of brandy in quantities of
10^ gallons and above is still only conditioned by the
possession of a general trader's license. Furthermore,
the law protects this traffic by exempting it from the
municipal tax of rather more than 3| cents per quart to
which the retail sale is subject. Distillers and dealers are
thus distinctly favored in their competition with the com¬
panies, and that they utilize their advantage is but too
apparent.
The cheapness of brandy at wholesale and the high
price of the dram sold by the companies make the kitchen-
bar trade both a tempting and profitable business. How¬
ever, illicit sales are comparatively few. A far greater
138 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
danger lurks in the temptation for people to club together
and buy brandy by the cask. Such a vessel, holding 42
quarts, may be purchased for the small sum of $13.40.
This is not only much below the company price, but, in
addition, the buyer saves the 3| cents per quart covering
the municipal tax, or $1.40 on a whole cask of the dimen¬
sions specified. As long as the money needed has been
collected before the purchase of the cask, it is not illegal
to divide its contents among several persons.
Our last table shows that 49 per cent, of the spirituous
liquors consumed in Norway are purchased at wholesale.
The rural population are the only customers. The officers
of the company guard carefully against "splicing socie¬
ties " in towns, as the clubbing together by several
persons for the purpose of buying a cask of liquor
is called. In thus accounting for the unexpectedly large
consumption of brandy in Norway we have also arrived
at the chief obstacle preventing the company system from
reaching the highest degree of usefulness. It suffers
COO
seriously under defective legislation. However, a change
for the better is approaching. A new era in the Nor¬
wegian liquor legislation is about to be ushered in, thanks
to the unremitting efforts of the friends of the company
system. They were the first to call attention to the bane
of an untaxed wholesale trade.
Various propositions have already been laid before the
Norwegian parliament by a commission appointed as early
as 1888, for the purpose of considering the question of
raising the minimum quantity to be sold at wholesale. It
is probable that the first step will oe to fix this minimum
at 66 gallons. While a strong sentiment in favor of con¬
ceding a monopoly of all sale of brandy to the companies
is felt, the wisdom of such an act at the present time is
generally questioned. Not so the extension of the com¬
pany system by legislative enactment. The brandy traffic
is believed to be in safe hands when controlled by the
companies. The latter naturally advocate a monopoly on
their part of the wholesale trade. But in order to make
such a measure effective, a revision of the custom laws,
so as to prevent importation of foreign spirits by private
1894.]
HOUSE —Xo. 192.
139
individuals, will be necessary. Those best informed state
positively that a legislative reform in the direction inti¬
mated is near at hand, and would already have been
inaugurated but for the all-absorbing political questions
which have long agitated the country. This done, and
consumption is sure to fall oil', principally in the country
districts.
Attention should be given the price of liquor under the
company system. Although private dealers commonly
banded together for the sake of keeping up prices, one
liter (1.0567 quarts) of brandy cost, when sold by the
glass, under the old regime, about 31 cents; at present
the average price is 59 cents, and in many places $1.34.
Xo discrimination has been made in favor of the " poor
man's little glass."
The assertion that the use of naphtha as a means of in¬
toxication has increased in Xonvay since the introduc¬
tion of the company system is not borne out by facts.
Only druggists are permitted to keep the article for sale,
and it is far more expensive than brandy. The total
importation of naphtha, which is used chiefly for technical
and medicinal purposes, amounts to of a liter per in¬
habitant annually.
Equally unfounded is the complaint that the companies
supply inferior and even injurious liquors, and that in
consequence direct importations have been on the increase.
The average importation from 1889 to 1891 amounted to
466,004 quarts, against 686,855 quarts in 1888.
Consumption of Beer in Norway.
At the time of the introduction of the company system,
malt liquors, being then usually of a light quality, were
still regarded in the nature of a temperance drink. This
mistake, fatal as it seems to us, of encouraging the use of
beer as a cure for the liquor habit, was very natural, for
the beers commonly used were pure, and not known to be
productive of drunkenness. But soon, and perhaps to
some extent in direct consequence of the restrictions im¬
posed upon the brandy trade, the consumption of the
stronger kinds of beer, which had come into demand,
140 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
grew rapidly, until it now lias reached considerable pro¬
portions, as is shown in the succeeding table : —
Consumption of Beer in Norway, 1871-91.
YEARS.
Total
Consumption
(Quarts).
Con¬
sumption
per In¬
habitant
(Quarts).
YEARS.
Total
Consumption
(Quarts).
Con¬
sumption
per In¬
habitant
(Quarts).
1870-71, .
29,593,834.5
16.9
1881-82, .
43,557,702.4
22.7
1871-72, .
32,128,223.8
18.3
1882-83, .
47,770,342.6
24.9
1872-73, .
40,362,981.2
22.8
1883-84, .
45,878,215.6
23.9
1873-74, .
47,681,051.4
26.7
1884-85, .
46,309,137.8
23.9
1874-75, .
58,905,318.8
32.5
1885-86, .
38,152,259.2
19.5
1875-76, .
54,356,119.7
29.9
1886-87, .
36,748,855.9
18.7
1876-77, .
55,892,138.8
30.3
1887-88, .
43,281,798.0
21.9
1877-78, .
55,551,141.7
29.7
1888-89, .
43,870,168.5
22.1
1878-79, .
53,548.272.5
28.3
1889-90, .
52,224,438.7
26.2
1879-80, .
41,035,042.4
21.5
1890-91, .
62,365,483.0
31.2
1880-81, .
43,497,681.8
22.7
The statistics for 1892 were not obtainable, and will
most likely show a continued increase. The quantity of
wines consumed annually in Norway is too insignificant to
call for special mention; besides, it is known to have de¬
creased 11 per cent, since 1875.
The inordinate consumption of beer, which has almost
doubled per inhabitant in twenty years, is not only a
serious evil, but all authorities agree on its being a prin¬
cipal cause of the drunkenness yet prevalent in the towns.
Defective legislation is largely responsible for this state
of affairs.
The Norwegian law lays a tax on the raw material in¬
stead of on the ready product, which enhances the cost of
light beers. We find, moreover, that the retail sale of
beer is practically free to all wishing to engage in it, while
a bar-trade license can be obtained at an absurdly low fee.
The maximum fixed by the law is only SI07 20, which by
special resolutions of a municipal council may be raised to
SH50.80. In 1892 only one small village took advantage
of this privilege. Considerably more than half the towns
1894.]
HOUSE —No. 192.
141
charge only $107.20 for a license, and some as low as
$53.00.
The present legislation appears calculated to stimulate
the beer traffic. At all events, such has been the effect.
Surprise has been expressed at the tardy movement of the
companies towards an eventual monopoly of the sale of
malt liquors. Such an attempt at the very outset would
certainly have jeopardized the fate of the system. Peo¬
ple would have resented it as an unnecessary, onerous
restraint, and not without reason, as beer-drinking at that
time gave no cause for grave apprehensions. Now condi¬
tions are changed; the so-called "Bavarian" beer, with
its 5| per cent, of alcohol, has superseded the lighter
kinds, and consumption has doubled. The time is ripe
for new measures. An alarm has been sounded, and the
companies are preparing to assume control of the beer
traffic as far as the law will permit it. What has been
accomplished by way of receiving bar-trade licenses we
already know. Further advance will probably be made
easier by a revision of the laws relating both to the taxing
and selling of beer, now under consideration. The prog¬
ress made will of necessity be slow. The danger of
pressing a reform beyond the point of public support is
obvious to those in charge of the companies. To establish
separate beer shops means avast addition to the business,
attended by many complications. There is, further, the
question of compensation for expropriated licenses, the
question of the distribution of profits, which will then
involve greater responsibility, etc. Yet a beginning has
been made, and the time will surely come when all sale
of intoxicants, both at retail and over the bar, shall be
entrusted to the companies.
I)imin isheel Drunkenness. *
Only a few companies- keep a complete record of the
number of arrests for drunkenness in their respective
communities. In the absence of these, as well as of a
compilation from the police journals for the whole country,
* See Summary, page 165.
142 THE NORWEGIAN SYSTEM, ETC. [Feb.
the state of sobriety cannot be determined by statistics of
drunkenness. Nevertheless, there is ample support for the
statement that drunkenness has decreased as the company
system has been extended. It is absolutely known that the
annual per capita consumption has fallen off by one-half.
Every precaution is taken to prevent intoxication from
the brandy served by the companies. The importance of
this from a temperance point of view cannot be over¬
estimated, and is attested by the thousands of refusals to
sell liquor to minors or persons already under the influence
of liquor. That private publicans ever exercise the same
conscientious care is not known. While the sale of beer
has risen, the increase is not in proportion to the decrease
of brandy.
Finally, the testimony of all well-informed people,
prohibitionists, civil and ecclesiastical functionaries and
others, is unanimous, to the effect that the company
system has proved itself a most efficient temperance
agent.*
The influence of the company system on economic con¬
ditions and on crimes, such as theft, murder, immorality,
etc., so often intimately associated with drunkenness, can
only be inferred in a general way. Genuine statistical
investigation has scarcely approached the vast tields here
awaiting research.
With our present knowledge, we cannot go further than
to say that, as far as any social evil is the result of intem¬
perance, the company system has helped materially to
eradicate it.
Distribution of Profits.
The Norwegian law provides that the net earnings of
the brandy companies shall be expended for "objects of
public utility." The excise fees are simply turned into
the municipal treasury.
In the by-laws of the Bergen company the objects of
public utility are defined as such for which the municipality
is not bound to provide out of its revenues. This
definition is generally adhered to, although the by-laws
* See Summary, page 165.
1894.]
HOUSE —Xo. 192.
143
of nearly half the companies contain clauses granting
municipal interests a claim to consideration in the dis¬
tribution of the profits. The phrase of the law, " objects
of public utility," appears to have been construed as
meaning objects otherwise supported by charity or public-
spirited benevolence.
Distribution of Profits of the Norwegian Liquor Companies
in 1891.
OBJECTS.
Amounts.
Mission Home, city,
$2,901 40
Church buildings,
3,764 40
Other religious objects,
2,780 42
Museums, collections, etc.,
9,192 40
Libraries, reading-rooms and clubs,
Public schools: —
Buildings,
25,107 04
Libraries and collections,
1,890 74
Other educational purposes,
1,892 46
Grammar schools and higher schools: —
Buildings,
1,911 82
Libraries and collections,
943 36
Other purposes,
5,949 60
Evening schools, Sunday schools, sailor schools, normal schools, etc., .
13,893 12
Schools of home industry, handicraft, housekeeping, ....
16,981 16
Scholarships for artisans,
616 04
Orphan homes, educational institutions, etc.,
31,563 34
Rescue homes,
532 60
Young Men's Christian Association
2,476 76
Temperance and total abstinence societies,
5,683 47
Friendly societies,
3,123 20
Homes for sailors, etc.,
884 04
Seamen's, artisans' and other charitable societies,
8,744 84
Public hospitals,
12,759 48
Education of deaconesses,
5,222 01
Association for assisting sick and poor,
10,398 13
Poorhouse
1,880 20
Assistance, nursing and feeding of poor,
11,025 05
Gun clubs
660 00
Gymnasiums,
3,376 08
144 THE NORWEGIAN SYSTEM, ETC
. [Feb.
Distribution of Profits of the Norwegian Liquor Companies
in 1801—Concluded.
OBJECTS.
Amounts.
Public baths
$14,617 52
Drawing schools,
1,139 00
Theatres and public amusements,
18,974 40
Music and singing,
9,046 34
Other artistic objects,
9,948 16
Railway building,
9,034 28
Construction of highways and streets,
34,313 11
Other subsidies to roads, etc., . . . . .
7,396 26
Lighting of streets
4,133 63
Water works and sewers,
30,603 45
Fire brigades,
2,719 39
Public parks, tree planting, etc.,
29,325 90
Medical assistance,
388 60
Police,
1,327 67
To municipalities, objects not specified, .......
2,716 98
Other objects
5,879 65
Total,
$383,111 89
Not distributed, or put aside for reserve fund,
15,211 14
$398,323 03
If we seek to classify the objects subsidized according
to the amount of money devoted to each class, we find
them ranking in the following order : —
1. General charity, charitable institutions and sanitary
improvements, $74,793 80
2. Parks,tree planting and highways (for pleasure), 63,639 01
3. Industrial and professional education, . . . 58,590 81
4. Water works, sewers and other municipal objects, 49,743 38
5. General educational purposes (public school build¬
ings, libraries, etc.), 39,694 92
6. Theatres, public amusements and artistic objects, . 37,968 90
7. Organizations not of a specifically charitable nature, 15,322 51
8. lteligious objects, 9,506 22
Temperance and total abstinence societies received 1.5
per cent, of the whole amount, 37 companies contributing.
1894.] HOUSE —No. 192. 145
The amounts granted the latter during former years
were —
Per Cent.
Per Cent,
In 1882, .
. 4.4
1887, .
. 2.8
1883, .
. 3.1
1888, .
. 2.2
1884, .
. 3.2
1889, .
. 1.7
1885, .
. 3.0
1890, .
. 1.4
188G, .
. 2.6
It has been much commented upon that the companies
give the temperance workers such meagre pecuniary sup¬
port, which evidently is growing less year by year.
Repeated inquiries as to the cause of this in some instances
are answered by saying, '' We give all that is asked for;"
in others, by "The demands of these societies are so
unreasonable oftentimes." Requests for a share of the
profits are usually transmitted to the directors of the com¬
panies, specifying the objects for which support is sought.
These documents, as well as the final action of the board
of directors, are generally printed in full in the annual
reports of the companies. A perusal of them makes it
clear that the demands of various temperance organiza¬
tions are not always reasonable, as, for instance, when
money is asked wherewith to pay brass bands or to build
a club house, furnish gymnastic apparatus, pay for a pic¬
nic, etc. Subsidies for direct temperance work are rarely
if ever refused. On the other hand, it is known that the
directors of various companies have themselves engaged
men to labor in the cause of temperance.
A recent official report on the distribution of profits
states as a " fact that larger or smaller shares of the net
profits of the companies may be applied to the support of
municipal objects in the same manner as the excise fees on
the estimated consumption." This, in connection with
the actual subsidizing of institutions like museums, libra¬
ries, schools, hospitals, streets, water works, fire com¬
panies, etc., which under ordinary circumstances certainly
ought to receive municipal aid, would seem to indicate
that the difference between the Norwegian and Swedish
146 THE NORWEGIAN SYSTEM, ETC. [Feb.
methods of distributing the profits is not as essential as
has been claimed.
That a large part of the profits ultimately reach the
same destination in both countries may be taken for
granted. Yet the difference is more than one of methods.
While no public statement is made of the objects to which
the profits are devoted in Sweden, it is known that outside
a few places they are put to the same uses as ordinary
taxes. Their disbursement is entirely in the hands of the
officials of the various municipalities and communities,
who are restricted as to the appropriation of the profits in
the same manner as regards other public moneys.
Requests from charitable organizations, educational and
industrial organizations, etc., can therefore not receive the
same recognition as in Norway. Of the latter country it
is strictly true that hundreds of objects of real public
utility are subsidized by the liquor companies, which in
Sweden, as elsewhere, are left to private enterprise or
generosity (see "Fifth Special Report of the Commis¬
sioner of Labor," pages 178 and 188).
In a number of instances where objects have been sub¬
sidized out of the profits of the companies, instead of
receiving the to-be-expected municipal aid, it has been
done to " encourage local improvements " and to " supply
the requisite funds which could not be raised in the usual
manner." Some companies are unwilling to aid any enter¬
prise which under other circumstances would be cared for
by the municipality, for fear that the public may in a
measure come to depend on the brandy traffic.
Still, it is undeniable that the law on the subject has
been rather broadly interpreted, and in the question of
profits undue prominence has been given municipal inter¬
ests.
Fraudulent manipulation of the moneys derived from
the business of the companies is unknown.
Nevertheless, all companies have not lived up to pub¬
lic expectation in the matter of distributing the profits.
Thus the charter of the Langesund company was revoked
because "too great heed had been paid municipal inter¬
ests." This is the only instance of its kind. Discretion
1894.]
HOUSE —No. 192.
147
rather than integrity has been lacking about the manner in
which the profits have been distributed.
A curious example of how the company system may be
used for the purpose of raising revenue for some special
object is cited in the Fifth Special Beport, referred to, on
page 208.
The principal dissatisfaction with the present method
of distribution is found in the rural communities. By no
means unjustly, the complaint is made that the latter, in
addition to being deprived of the excise fees, are com¬
pelled to pay a tax to the towns on the liquor consumed,
and yet are not given any participation in the subsidies.
This alone may bring about a change.
Judging from propositions now before the Storthing, it
is not unlikely that a scheme similar to the Swedish one,
whereby the profits are divided between the towns, country
districts and the public treasury, will be adopted. It is
strongly urged, in objection to any deviation from present
methods, that much difficulty will be experienced in find¬
ing the proper men to look after the interest of the com¬
panies if they are debarred from voting subsidies out of
the proceeds from the liquor trade, and are obliged to pay
the greater portion into the public treasury (report of the
Bergen Municipal Council). This difficulty has not been
prominent in Sweden, and seems improbable. The per¬
sistency with which those interested in the company
system refuse to recognize the net earnings of the com¬
panies as being a tax equally with the excise fees appears
inconsistent, as they are in fact nothing but a tax on
consumption.
The proposition has been made that the whole surplus
be paid into the state treasury. It is supposed by some
that such a measure will cause the suspension of a number
of small companies, as people may be unwilling to under¬
take the work and bother of conducting a business which
will be of no pecuniary advantage to the community. In
other words, it is proposed to substitute no-license for the
company system. However, the chief argument advanced
in favor of the proposition in question is that it will be
easier to put the liquor traffic under further restraint when
148 THE NORWEGIAN SYSTEM, ETC. [Feb.
the temptation to consult municipal interests in the distri¬
bution of profits is taken away. But the necessity for
such a measure is not apparent.
Advantages of the Norwegian System.
As compared with the Gothenburg system proper,
the Norwegian company system possesses these distinct
advantages:—
1. It aims to monopolize the entire sale of all intoxi¬
cating drinks at retail and over the bar, and legislate
alike for all classes.
2. Indiscriminate sub-licensing is unknown. Second¬
ary privileges are only granted in as far as public interests
require it, and then upon conditions preventing abuses, as
nearly as possible.
3. Pernicious methods of administration, such as
watering of stock, leaving the control of the business in
the hands of a few irresponsible shareholders, are effec¬
tually guarded against.
4. Earlier closing hours for the bar trade are enforced,
especially on days preceding Sundays and holidays, and
all sale of spirituous liquors on Sundays is absolutely
prohibited.
5. The managers in the employ of the companies are
in every instance paid fixed salaries, and deprived of all
temptation to encourage drinking.
6. The bar trade in liquor has been divorced from all
other business, like the sale of food, temperance drinks,
etc., so that no one may be tempted to enter a saloon
except for the purpose of purchasing liquor.
7. The quantity of intoxicants which may be consumed
at the bars by the same customer is always limited, and
beer is not served together with brandy.
8. More stringent rules have been adopted to prevent
customers from loafing about the saloon premises, or
remaining in them an unnecessary length of time.
9. The principle is applied that the profits from the
sale of intoxicants shall be devoted to lessen the burdens
inflicted upon society by the drink evil itself, and to fur¬
ther temperance.
1894.]
HOUSE —No. 192.
149
10. The methods of distributing the profits ensures
greater watchfulness on the part of the public, as well as
a more careful administration.
11. Strong governmental supervision, and the require¬
ment that printed reports of the transactions of the com¬
panies shall be published every year, have resulted in
greater uniformity of methods in general, and prevented
maladministration.
12. The broad scope of the system, and its intro¬
duction as a means of temperance reform, have secured
for it hearty support from the total abstainers and tem¬
perance advocates.
The company system in Norway labors under several
disadvantages, which are mainly due to inadequate legis¬
lation, and cannot be charged against the system itself: —
1. The wholesaling of spirits is still untaxed, and the
minimum limit — 10^- gallons — far too low. The cheap
rate at which liquor may be purchased in the above quan¬
tity is an incentive to illegal traffic, and largely responsi¬
ble for drunkenness in the country districts.
2. It is a further defect of the law that liquors may be
purchased at retail in as small a quantity as j3-07-^ quart.
This is in effect to place a premium on consumption in the
homes or outside the bars.
3. The law does not admit of a monopoly of the re-
fail sale of fermented drinks, to engage in which no
special license is required, at least in the towns.
The increasing consumption of beer cannot be properly
checked as long as malt liquors are sold by the bottle at
numerous small shops.
4. The law prohibiting commercial agents of foreign
houses from filling small orders for liquors for private cus¬
tomers is not properly enforced.
Public Opinion and tiie Company System.
The established fact that not a single community,
having once tested the merits of the company system,
has been found willing to revert to the former order of
things, indicates the place it occupies in the estimation
of the Norwegians. The benefits derived from it are not
150
THE NORWEGIAN SYSTEM, ETC. [Feb.
equally apparent in all places, yet the consensus of public
opinion appears everywhere preponderately in its favor.
This never came more strongly to light than at the time
of the publication of a report on the system prepared for
his government by the British Consul-General at Christi-
ania, Mr. T. Michell, in which he attacked the system,
and tried to demonstrate its failure as a means of check¬
ing the consumption of liquor and the attendant drunk¬
enness. The newspapers teemed with protests against
Mr. Michel l's gross misrepresentation of facts and
unfounded insinuations. Popular indignation grew to
such an extent that the government at last saw lit to
forward a repudiation of the report to Lord Rosebery.
Not content with this, the Minister of the Interior sent a
dispatch to the Norwegian-Swedish legation at London,
accompanied by a refutation of Mr. Michell's work,
written by Mr. H. E. Berner, formerly a member of the
Storthing, and chairman of the committee on liquor
legislation, than whom no one is better qualified to speak.
The dispatch says : " Mr. Berner has shown in this expla¬
nation that Consul-General Michell's report is incorrect
and misleading on important points, and appears to
convey a very erroneous impression of the Norwegian
company system." The minister then endorses Mr.
Berner's statements, declares that the regulations of the
companies "must be regarded as having worked success¬
fully," and proceeds to show that the new method of
control has " contributed greatly to restrict drunkenness,"
and that the profits have generally been devoted to the
"promotion of enlightenment, morality and the proper
social spirit." Having refuted Mr. Michell's assertions
one by one, Mr. Berner shows how etfieiently the com¬
panies have " combated the abuse of intoxicants," as well
as effected a " material diminution of consumption, in
spite of adverse legislation." He then characterizes Mr.
Michell's knowledge of the whole question as "superficial
and incomplete," concluding with these words: "Mr.
Michell's report is deplorably at variance with facts, and
conveys generally a very erroneous impression of the
nature and working of the Norwegian company system."
1894.]
HOUSE-No. 192.
151
The very first people to decry the usefulness of the
company system, if it proved unequal to its herculean
task, would certainly be the total abstainers and the
leaders of the temperance movement; yet we find them
exhibiting a very friendly feeling towards the companies;
so much so that Mr. II. E. Berner, himself one of their
number, could recently write as follows: "Even the
great mass of the abstainers have with great vigor united
in supporting a proposition lately formulated by a royal
commission, which does not advocate abolishing the com¬
panies, but would grant them a complete monopoly of all
sale of brandy."
To be sure, extremists are always found who would go
back to the former regime, asserting that the "country
must first be deluged with brandy before a cure (pro¬
hibition) is possible."
At a general meeting of the temperance societies of
Norway, held last summer, certain resolutions unfavorable
to the companies were passed, but not, as it appears, with
the full knowledge of the assembly. Subsequently even
the members of the committee in charge of these resolu¬
tions refused to acknowledge them.
Not only the more enlightened temperance advocates,
but the people in general, have set their stamp of approval
on the company system, with an unanimity rarely accorded
any social institution.
152 THE NORWEGIAN SYSTEM, ETC. [Eel).
SUMMAE Y.
I. SWEDEN.
Recognizing the sale of spirituous liquors as a business
which society will not have abolished, but which can and
must be reformed for the good of society itself, the Goth¬
enburg system was introduced with the object of prevent¬
ing the abuse of intoxicants, and promoting sobriety by
restraining consumption as far as consistent with complete
control of the traffic. It was thus distinctly a reform
measure, although its efforts were principally directed
against the drink evil where its effects are most terrible, —
among the laboring classes.
The law under which the system was established pro¬
vides that a municipality may, with the consent of the
superior authorities, concede licenses to sell spirituous
liquors at retail, that is, in quantities under 66 gallons,
and by the glass, otherwise granted to private persons, to
commercial companies. The concession is made upon the
condition that such companies shall conduct the liquor
trade without further gain to themselves than a six per
cent, interest on the capital invested by the shareholders,
and that the net earnings from the business shall be
applied to public uses. The law further requires that
companies engage competent managers to look after the
details of the traffic, whose responsibility is made equal
to that of an individual licensee. Special provisions
secure adequate supervision of the general affairs of the
companies. However, the law does not make the organi¬
zation of liquor companies mandatory, but permits local
option. Only those licensees who held special privileges
prior to the enactment of the law in question can lay
claim to a compensation when dispossessed. An excep¬
tion to this rule is made when a company wishes to
1894.]
HOUSE —No. 192.
153
obtain common licenses before the term for which they
were granted has expired.
The distinctive features of the system are: first, to
render perfectly disinterested all those engaged in dealing-
out spirits, as well as those controlling the traffic; and,
secondly, to restrict the sales to the legitimate demands
of the people. Rational control and the elimination of
private profit-making are the two great objects sought.
The idea is that the sale of liquor shall be for use, not for
personal enrichment; for the benefit of the community,
not of the individual.
In the face of the most strenuous opposition on the
part of distillers and publicans, aided by some misguided
friends of temperance, and backed by great wealth, the
system fought its way onward. Every effort to crush it
by legislative enactments, spurious statements of its oper¬
ations, the vilification of the men connected with it, and
the offer of cheaper brandy, failed ignominiously. Peo¬
ple saw in the system a bulwark against the rising flood
of intemperance which threatened the existence of the
nation. Town after town adopted it, until to-day it has
become the Swedish method of dealing with the liquor
problem. Not a city or town of any importance through¬
out the kingdom will any longer entrust the sale of spir¬
its to men who would undertake it for personal gain.
As the companies must confine their operations to
towns, the liquor traffic has been driven out of the rural
communities, in which a few privileged licenses still exist,
but no new ones are issued. Thus prohibition has prac¬
tically been secured for the country districts.
How the Companies conduct the Traffic.
The legal enactments under which a company may be
established, no less than the character of the men (usually
the foremost in the respective communities) willing to
engage in a business the proceeds from which are ex¬
pended for the benefit of the public, sufficiently guaran¬
tees that the enterprise will be carried on with perfect
integrity as well as in the interests of temperance.
Exceptions are, of course, found, but with improved
154 THE NORWEGIAN SYSTEM, ETC. [Feb.
methods of central supervision are destined to become
more and more rare. The six per cent, interest on the
capital used offers no special inducement as an investment,
as the capital needed is small and the shares are usually
distributed on many hands.
When a company is ready to begin activity, the licens¬
ing authorities tlx the number of places and the location
of the bars and shops to be operated. The managers of
all the places where liquor is sold are paid fixed salaries,
and not allowed any profit whatsoever 011 the sale of
spirituous drinks, but may sell malt liquors and temper¬
ance beverages on their own account. For a long time it
was the accepted theory in Sweden, upheld by the tem¬
perance reformers, that inebriety would be counteracted
by encouraging the use of beer. Experience has shown
how mistaken it was, and for this reason the privilege of
managers to sell beer for their private profit will in time
be abrogated, as it already has been done in some places.
A contract is generally made with each manager, in
which his duties are specified, special stress being laid on
the statement that, as the company is organized for the
purpose of conducting the sale of liquor in the interest of
temperance, it is his prime duty to co-operate towards
that end ; and, if he be found to supply liquors to intoxi¬
cated persons and minors, or in such quantity to any single
person that drunkenness is likely to ensue, he is dismissed
without notice. Special clauses in the contract prescribe
the manner in which the liquor, which is always supplied
by the company, shall be kept and sold. Every safe¬
guard is adopted to prevent underhand methods on the
part of the employees. Special officers of the company
are detailed to inspect the bars and shops and see that the
instructions issued to managers are fully complied with.
In many places it is forbidden to sell more than a stated
quantity of liquor to the same customer at one time.
The question, Are the companies, after all, able to en¬
force their restrictive measures? must be answered with
an emphatic Yes. Drunken persons and minors apply in
vain for admission to the bars of the companies, nor will
the managers sell enough spirits to any one to make him
1894.]
HOUSE —No. 192.
155
drunk, or trust him for the smallest amount. The man¬
agers are allowed great latitude in dealing with customers,
and may punish any misbehaviour by denying them access
to the bars for a definite period of time.
The retail shops are practically under the same restric¬
tions as the bars. The smallest quantity which may be
bought for consumption off the premises is 1.0567 quarts,
which must invariably be delivered in one vessel and to
one buyer.
The Swedish companies do not aim to subject the en¬
tire sale of liquor to the same regulations. Their special
object is to restrain that part of the consumption which
falls to the frequenters of the common saloon. For this
reason a system of sub-licensing hotels, cafes, restaurants
and clubs has been introduced. In doing so, however,
the companies seek in some measure to control the affairs
of the sub-licensees by stipulating that they shall either
purchase all the liquors from the companies or pay a stated
annual sum for the privilege in question.
The sale of so-called higher-grade liquors at retail,* that
is, all others than common brandy, is as a rule not con¬
trolled by the companies.
From a temperance point of view, it may be justly
urged that the Swedish system does not extend its
monopoly far enough. However, this consideration is but
of passing significance beside the fact of the remarkable
results achieved through the system, even-under an imper¬
fect monopoly.
Effects of the System ix Sweden.
1. Reduced Number of Licensed Places.
" Only as many bars and shops as necessary to meet
the recognized demands of the community." This is the
starting-point of the system. Taking a more advanced
ground at once would have resulted in losing control of the
traffic and putting a premium on illicit sales. In nearly
all cases it has been found that the companies can dispense
with a large number of the licenses formerly used. The
licensing authorities have acted accordingly, and the com-
* See note, page 26.
15(5 THE NORWEGIAN SYSTEM, ETC. [Feb.
panies themselves have in many instances refrained from
using all the licenses at their disposal. This would cer¬
tainly seem to free them from any suspicion of engaging
in the sale of intoxicants from mercenary motives.
The great importance of lessening the temptation to
drink by reducing the number of licensed places to its
lowest limits is obvious. A few figures will show abun¬
dantly the lasting good accomplished by the companies in
this respect: —
The Gothenburg company — the oldest in Sweden —
held 36 licenses at the outset, but discovered that it could
dispense with no less than 17. At the present time 21 of
its privileges remain idle. In other words, while in 1368
there were 1,172 inhabitants to each place where liquor
was sold by the glass (including those sub-licensed),
there are now 2,658 inhabitants to each such place.
In Stockholm the number of bar-trade licenses has been
diminished by 23 since 1877, in which year the company
was organized. Meanwhile the population of the city has
increased 90,000. Taking the ordinary saloon alone, we
find that there are to-day more than 11,000 inhabitants to
each one.
Similar results are observable for the whole of Sweden.
During the decade from 1882 to 1892 only, the number
of saloon licenses in towns has been reduced by not far
from one-fourth, while the number of inhabitants to all
kinds of licenses has increased 49.2 per cent. In 1882
there were 719 inhabitants to each city or town license
(including those used for a retail business) ; in 1892 the
number had risen to 1,073. For the country districts the
figures for the two years — 1882 and 1892 — were 14,975
and 22,526, respectively.
It may not be possible to show just in how far the state
of sobriety is conditioned by the number of places where
liquor is sold. Nevertheless, a first step in temperance
reform must be to take away both the temptation and
opportunity for over-indulgence in drink. This has been
and is constantly being done under the company system ;
and, furthermore, the saloons still existing are in charge
of men who have absolutely nothing to gain from large
sales, and who are strictly enjoined to prevent the abuse
1894.]
HOUSE —No. 192.
157
of liquor. The closing hours are much earlier, and the
bars so located that the public may keep a watchful eye
on them.
The companies have also made it a practice to raise the
price of their goods and reduce the percentage of alcohol
of the spirits sold by them.
2. Reduced Consumption of Liquor.
The crucial test of the company system is its useful¬
ness in checking the consumption of liquor. On this
point statistics furnish the most conclusive evidence: —
In 1875, the first year in which the company controlled
the retail sale of spirits in Gothenburg, the average con¬
sumption per inhabitant was 34.9 quaits. By 1892 this
enormous quantity had been reduced to 14.2 quarts per
inhabitant, almost every year showing a marked diminu¬
tion. It must be specially noted that the bar sales exhibit
the largest decline, which goes far to show that adequate
control is exercised, and that the system is very effective
in discouraging drinking at saloons.
CO O
For Stockholm we find like results. In 1882 the aver¬
age quantity of liquor consumed per inhabitant was 23.2
quarts, as against 16.7 quarts in 1892.
The figures for the whole of Sweden are even more
striking. In 1874 the average consumption per inhabitant
reached 14.2 quarts, but in 1892 it had fallen to 6.8
quarts. In other words, consumption has gradually been
diminished to less than one-half of what it was eighteen
years ago, making it now about eight-tenths quart more
than in the United States. And it must not be forgotten
that, while distilled spirits are habitually used among all
classes of society in Sweden, the case is very different
in this country.
That other agencies, such as temperance agitation,
better education, etc., have contributed to bring about the
results adduced, must be readily admitted, yet in the main
they are attributable to the earnest work of the companies.
The sale of malt liquors is not monopolized by the com¬
panies, and their consumption has steadily increased, as a
consequence of the restrictions imposed upon the sale of
158 THE NORWEGIAN SYSTEM, ETC. [Feb.
distilled liquors, but not in proportion to the decline of
the latter. It is known, moreover, that in certain prov¬
inces where beer is but little used, the consumption of
spirits has declined steadily under the company system.
It is estimated that 10 quarts of malt liquors was consumed
per inhabitant in Sweden in 1874, as against 28.2 quarts
in 1890. During the same period the consumption of
malt liquors has risen from 27.9 quarts to G2.1 quarts in
this country.
3. Reduced Number of Convictions for Drunkenness.
Statistics of drunkenness, as shown by police returns,
do not offer a safe criterion for pronouncing upon the
merits of any system of controlling the liquor traffic.
Much depends on the action of the police, whose efficiency
varies greatly in the different communities as do also the
regulations under which arrests are made.
Public estimate of the vice of drunkenness is another
important factor. In Sweden it is now demanded that
intoxication shall be dealt with much more severely than
say tifteen years ago. Again, as long as beer is not
included in the monopoly, it cannot be definitely ascer¬
tained what part of the drunkenness still prevailing is due
to the consumption of this beverage. It is the general
opinion that but for the unregulated sale of malt liquors
conditions would be far better in Sweden to-day.
In 1855, under the old regime, there were 138 convic¬
tions for drunkenness per 1,000 inhabitants in Gothen¬
burg. During the first year under the company system
this number was reduced to 51, and again in 1892 to
42. It may also be mentioned that there were 87 more
cases of delirium tremens in 1865 than in 1892.
For Stockholm these figures are given: In 1876, cases'
of delirium tremens per 1,000 inhabitants, 4.3 ; of drunk¬
enness, 46. In 1891, cases of delirium tremens per 1,000
inhabitants, 1.8; cases of drunkenness, 32.
In the whole of Sweden there were 6.7 convictions for
drunkenness per 1,000 inhabitants in 1874, and 4.3 in
1891.
Statistics thus bear out the statement, which is in ac-
1894.]
HOUSE —No. 192.
159
cord with the general verdict of those conversant with the
affairs of society, that the company system tends greatly
to promote sobriety. The best evidence on this point is
the diminishing consumption of spirits.
Distribution of the License Fees and Earnings of
tiie Brandy Companies.
The law provides that the above moneys shall be dis¬
tributed as follows : —
In large cities, seven-tenths go to the municipality, one-
tenth to the agricultural society of the district and two-
tenths to the public treasury. In small towns, five-tenths
go to the town, two-tenths to the landsting of the district
and three-tenths to the public treasury. Thus neither the
directors of the companies nor the shareholders can de¬
termine the uses to which the profits from the brandy
traffic shall be put.
II. NORWAY.
Profiting by the experience of their neighbors, the
Norwegians, in adopting the company system, made some
radical change in its application. The new departure
was declared in unmistakable tones to be a temperance
measure, first and last; and for this reason the field of
operation mapped out was as broad as the law would per¬
mit. From the very outset it was seen that the usefulness
of the system would largely depend upon the extent of the
monopoly enjoyed, and that this must include all retail
and bar trade in distilled spirits, and the bar trade in beer
in as far as practical>le.
The law under which the system was introduced simply
provides that some or all of the licenses to sell brandy
in a town may be conceded a company, the by-laws of
which have been approved by the council or representa¬
tion of the place in question, and sanctioned by the king;
that is, the Department of the Interior. The conditions
imposed are that the surplus resulting from the business
shall be devoted to objects of public utility, and that
suitable managers shall be employed to superintend the
sale of liquor. Later enactments enabled the companies
160
TIIE NORWEGIAN SYSTEM, ETC. [Feb.
to redeem licenses held by special privilege, and to in¬
clude bar trade in beer in their monopoly.
The law does not prescribe a fixed rate of interest to
shareholders in the capital invested. The first company
organized proposed a five per cent, rate, which has been
adhered to ever since by all companies.
The friends of the system had no dangerous opposition
to encounter. Distillation was already subjected to rigid
control, and comparatively few privileged licenses existed
in the towns. With plain sailing before them, one com¬
pany after another sought and obtained charters. During
the first five years after the authorization of the law 20
companies were organized; from 1876 to 1880, 21 ; from
1881 to 1885, 7 ; since then 3 have been added, making a
total of 51, which is to say that nearly every town in
Norway has a liquor company. Only 3 small villages of
about 800 inhabitants each still leave the sale of brandy in
the hands of private dealers. So obvious have been the
benefits of the system, that, once tried, it has always
been retained.
The manner in which the Norwegian companies are
organized offers some pronounced advantages over the
Swedish. "While in Sweden the companies are under the
provincial governor as the highest authority, abetter cen¬
tral control is provided in Norway by the requirement that
the by-laws must have the approval of the Department of
the Interior. This secures uniform methods, and guards
against all manner of abuse. It is further a common rule
to limit the number of shares which can be held by one
person. And, as the capital is usually divided into shares
of about $26 each, which are distributed on many hands,
there is no opportunity for a few men to gain control of a
company. Again, as only the capital needed in the busi¬
ness is called in, the stock offers no inducement for in¬
vestment.
How the Companies conduct the Traffic.
Be it remarked at once that not a breath of scandal has
touched any of the companies. In every case the man¬
agement has been honest, if not always as intelligent as
one might wish.
1894.]
HOUSE —No. 192.
161
Some vex-y important differences between the Swedish
and Norwegian methods must be noted. Wherever sub-
licensing is resorted to, — and in many places it is an
unknown practice, —it is done in such a manner that the
sub-licensee has no direct profit from the sales of liquor,
for which the narrowest limits are prescribed. Generally
only one or two hotels in a town are given this privilege.
Retail dealers are never sub-licensed. The companies
recognize that it is their duty as temperance agents to
have full control over, as well as responsibility for, all sale
of liquor.
The managers are invariably paid fixed salaries, and are
not, as in Sweden, given the profit on malt drinks ; nor
are they permitted to carry on a restaurant business for
their private benefit, in connection with the serving of
intoxicants. It is sought to avoid selling; beer and dis-
O o
tilled spirits over the same counter, — an objectionable
practice, from a tempeiance point of view.
Stricter rules govern the whole bar trade. It is a
standing order that two or several drams in succession
may not be served to the same person. Where the com¬
panies sell beer, one bottle per individual is the quantity
allowed for consumption at the premises. When the
liquor ordered has been consumed, the cxxstomer is
expected to leave the premises at once. Loafing and
lounging about in saloons are absolutely prohibited, and
indeed there is little to invite it, as the bars are merely
adapted to meet the necessities of the traffic, and not to
attract.
For any infringement of the regulations or discourtesy
to the managers a person will be denied access to the
bars for days or weeks, as the case may be. Habitual
drunkards are frequently blacklisted, that is, not allowed
to purchase any liquor. Persons known to depend in
part or wholly on charity, or who neglect their families
in any way, are put in the same category.-
The business hours are shorter than in Sweden. No
liquor is served on Sundays, and on]Saturdays and before
holiday the saloons close at 5 p.m., in some important
centres at 2 p.m.
162 THE NORWEGIAN SYSTEM, ETC. [Feb.
Even the smaller companies employ their own detectives
to bring offenders against the liquor laws to justice and
perform general police duties 011 the premises owned by
the companies.
In short, under the Norwegian system, greater con¬
sideration is paid measures aiming directly to prevent
abuses and bring the consumption of liquor down to its
legitimate uses. This is, of course, especially true as
far as the bar trade is concerned. To prevent inordinate
consumption of the liquor bought by the bottle is much
more difficult, but here also great care is exercised.
Effects of tiie Company System in Norway.
1. Reduced Number of Licensed Places.
In order to limit consumption and secure adequate con¬
trol, it is first necessary to centralize the sale of liquor as
much as possible. The following figures tell the story of
what has been accomplished in this respect in Norway : —
In Christiansand, for instance, there were 9 licensed
places during the year (1870) previous to the establish¬
ment of the company, or 1 to 1,274 inhabitants; in 1892
we find only 5 (2 greatly limited), or 1 to 2,566 inhabi¬
tants.
During the old regime in Bergen, there was 1 bar to
1,670 inhabitants ; in 1877, the year in which the company
assumed control, there was 1 to 3,396 inhabitants, and in
1892 1 to 5,137. Similar changes have been effected in
other cities.
In Christiania there were 1,816 inhabitants to each bar
in 1885, as against 5,516 in 1892.
For the whole of Norway we observe that since the
enactment of the law of 1871 the number of licensed
places in towns has been reduced from 501 to 227,
or from 1 for every 591 inhabitants to 1 for every
1,413. In the-country districts only 25 licensed places
remain, or 1 to about 8,000 inhabitants. Half of the
places last mentioned are located in the northern fishery
districts. Remembering that in the 227 licensed places
still existing in the towns not a drop of liquor is sold for
1894.]
HOUSE—No. 192.
163
private profit, and that they are hedged in by all manner
of stringent regulations, one great benefit from the com¬
pany system becomes clearly apparent.
From a table furnished by the United States census of
1890, it appears that in 257 of our cities, rvith a population
of 15,316,167, there are 61,336 saloons, an average of 1
saloon for every 250 persons. "The range, however,"
adds the government report, "is a Avide one, varying from
69 persons to each saloon in Atlantic City, 72 in Lex¬
ington and 79 in Butte City, to 2,141 in Northampton and
6,236 in YCaltham. In the cities of oarer 100,000 inhabi¬
tants the range is from 103 persons to a saloon in San
Francisco and 128 in Buffalo to 1,728 in "Worcester and
1,491 in Lincoln." Only one city of o\*er 50,000 is
reported to be without saloons. The average population
of the 40 cities having no saloons is 21,586 ; of the 257
cities having saloons, 59,598 ; 48 cities furnished no data.
2. Reduced Consumption of Liquor.
The true test after all is in Iioav far the company control
has sciwed to check the consumption of spirituous drinks.
Again we turn to statistics : —
During the first year of the Christiansand company,
the a\*erage consumption per inhabitant was 7.29 quarts,
as against 3.81 quarts in 1892. Both the bar trade and
the per capita consumption has been reduced nearly one-
half.
The figures for Bergen are not quite so striking, owing
to a slight increase during the last three years. In this
city the aA'erage consumption per inhabitant in 1877 stood
at 5.19 quarts, and in 1892 at 4.66.
For the whole of Norway we obtain these results:
In 1876, fhre years after the establishment of the first
company, the average consumption of distilled spirits still
reached the high figure of 6.8 quarts. But this was
speedily reduced as the number of the companies grew,
until, with some fluctuations, Ave have as the latest an
annual consumption of 3.3 quarts per inhabitant. This is
2.7 quarts less than the consumption in the United States,
and it is not discoverable that the use of malt liquors
164 THE NORWEGIAN SYSTEM, ETC. [Feb.
lias increased in proportion to the decrease of spirits. In
1690, the last year for which statistics were obtainable,
31.2 quarts of malt liquors were consumed per head of
the population ; this is only about 1 quart more than the
consumption for 1876, and 1.3 quarts less than that for
1874, when only a few companies were in full operation.
Two facts are thus made clear : first, that under the
company system the consumption of distilled spirits has
been reduced to less than one-half, considering only the
period from 1876 to 1892; and secondly, that the con¬
sumption of beer, the sale of which beverage is not }Tet
monopolized by the companies, has not been materially
affected.
The quantity of wine used in Norway is too insignificant
to deserve mention and is, besides, diminishing.
In as far as the state of sobriety can be measured by
statistics of consumption,— and there is certainly no
surer test,— Norway ranks at present second to Italy
only as the most temperate country in Europe, and sur¬
passes both the United States and Canada. That this
happy state of affairs is, in the first place, due to the
company system, is undeniable, whatever allowance must
be made for the influence of the other factors, such as
better popular education, temperance work, religious
movements, etc. The temperance advocates in Norway
admit this freely, acknowledging at the same time that
the companies themselves have often been their best allies
in teaching people to regard sobriety as a virtue.
The available statistics of arrests for drunkenness in
Norway are too meagre to warrant any deductions, which
at best would remain questionable. Incidentally, it may
be mentioned that the number of arrests in Bergen have
decreased from 24.8 per 1,000 inhabitants in 1877 to 12.2
in 1892.
Stronger evidence is furnished by the number of
refusals to sell liquor to intoxicated persons, minors,
paupers and others, as shown by the records kept by
various companies. Taking only 11 of these, including
8 of the largest and 3 of the smallest, we find that more
than 232,000 refusals on the grounds referred to above
were made from 1889 to 1892.
1894.] HOUSE —No. 192. 165
The fear once entertained, that drinking would receive
at least a silent approval as a respectable indulgence when
the sale of liquor was entrusted to representative mem¬
bers of society, has proved groundless. On the contrary,
the system has succeeded both in putting a stigma on
drinking in public places and in discouraging it alto¬
gether. This is more true of Norway perhaps than of
Sweden, owing to the manner of sub-licensing in the
latter country.
"Were " drinking made respectable " under the system,
it would be impossible to account for the decline in con¬
sumption generally, and especially for the fact that the
bar trade shows proportionately the greater diminution.
When a customer is made to feel that he is under strict
surveillance from the moment he enters a saloon, when
he knows that he will be allowed but a single dram, and
must leave at once when that is consumed (for so a huge
placard placed over the bar informs him), can he feel
that his act has the " sanction " of society, or is in any
sense respectable?
Many people shun the company bars on this account,
and even hesitate to enter a bottle shop. To the question
why several persons seemed embarrassed at being dis¬
covered in bar-rooms by a certain inspector, he replied,
" Oh, they simply hate to be seen here,— it isn't thought
respectable." Similar observations were made in different
cities, and are in line with those made by the police
officials, other authorities and intelligent people in gen¬
eral.
Distribution of Profits.
The law prescribes that the surplus earnings of the
liquor companies shall be devoted to objects of public
utility. By providing that the profits should be simply
turned over to the state, there was danger that the
companies might come to be regarded as mere tax-paying
institutions. From a temperance point of view this was
objectionable. It was further argued that the profits
from the liquor traffic ought in the first instance to be
applied to the alleviation of the misery indicted upon
166 THE NORWEGIAN SYSTEM, ETC. [Feb.
society by the drinking evil itself, as well as to counter¬
acting agencies.
o o
The companies have allowed themselves considerable
latitude in construing the law. Some avoid conscien¬
tiously any use of the profits tending directly to ease
the load of the taxpayer; others do not scruple to
consult general municipal interests.
A classification of the objects to which the profits of
the Norwegian companies were devoted in 1891 will be
found on page 144.
As a rule, the shareholders decide upon the objects to
be subsidized, as well as the amount to be given each,
having considered the various applications sent in.
The Advantages of the Company System,
which are best exemplified by the manner of its application
in Norway, may be summed up as follows : —
1. It is a "measure of reform, not of destruction,"
recognizing that, while the liquor traffic cannot at the
present time be abolished by any legal enactment, it may
be reformed.
2. It does away with all incentive to encourage drink¬
ing, by taking the sale of intoxicants out of the hands of
those to whom intemperance is a gain, and entrusting it
to persons pledged to carry it on without any profit to
themselves, and in the interest of temperance and morality.
3. The direct responsibility for the abuses connected
with consumption of intoxicants is largely placed on the
shoulders of the best people in the community, who will
be held to strict account.
4. Drink-selling will be divorced from politics, can no
longer serve as an instrument of corruption, and one of
the greatest obstacles to all social reform may thus be
overcome.
5. The number of licensed places can be reduced to
the lowest limits consistent with public safety and com¬
plete control, and temptation to drink minimized.
6. The consumption of liquor can be effectually
checked, as competition is destroyed; prices may lie
raised, and every restrictive measure perfectly enforced.
1894.]
HOUSE —No. 192.
167
7. All the immoral accessories of the saloon are abol¬
ished.
8. Better policing of the places where drink is sold is
made easy, and the co-operation, not only of the general
public but especially of the temperance reformers, is in¬
vited to secure adequate control, as well as the detection
of illicit sales.
9. The system does not interfere in the least with
the local-option privilege, but rather helps to make
no-license an actuality; it does not advocate a state
monopoly, but leaves the drink problem to be dealt with
by each community.
10. It is a powerful means of education, by holding
up intemperance as a vice society will not tolerate.
11. By securing for the community at large the use of
the profits resulting from the traffic, many of the ills in¬
flicted upon society by the abuse of liquor may be eased,
counteracting agencies established and morality advanced
generally.
12. Questionable methods or transactions on the part
of those who conduct the sale of liquor for the community
can be effectually guarded against by the selection of
proper licensing authorities, and securing a system of
central supervision.
168 TIIE NORWEGIAN SYSTEM, ETC. [Feb.
APPENDIX.
The successful application of the Gothenburg system
marks the beginning of a new era in the history of tem¬
perance legislation. The Swedish experiment first demon¬
strated the possibility, by means of wise laws, of so
revolutionizing the traffic in spirituous liquors that the
dangers associated with it become minimized. Norway
was quick to seethe advantages of the scheme, and adapted
it to its own needs. Finland followed suit, and has by
recent enactment remodelled her laws to secure a fair field
and stability for the company system.
But the knowledge of the new departure soon reached
beyond the borders of those far-away northern countries.
First of all England gave serious attention to the Scandi¬
navian methods of dealing with the liquor problem. The
Bishop of Chester biought the matter forward in Birming¬
ham, " where, under the leadership of Joseph Chamber¬
lain, a modification of the Gothenburg system was all but
introduced some fifteen years ago." In 1879 a committee
of the House of Lords, under the presidency of the Duke
of Westminster, advised " that legislative facilities should
be afforded for the adoption of these schemes (the Swed¬
ish) or some modification of them." But, owing to the
effective obstruction of the trade and the prohibitionists,
the question lay dormant until 1892. Again the move¬
ment received a check, which, however, is said to mean
postponement merely, and not abandonment. The inter¬
est in the subject is too great to let it drop.
In his pamphlet, "The reform of the public house,''
the Bishop of Chester remarks: "I am permitted to say
that Mr. Chamberlain is as hearty a believer in the system
as ever, and on this point Mr. Gladstone is at one with
him. It is not always that Mr. Gladstone and Air. Cham¬
berlain see eye to eye ; but when they do, it is probable
1894.]
HOUSE —No. 192.
169
that they are not far from right. Nor in their opinion
do they by any means stand alone, among front-rank
statesmen of all three parties." The words of Mr. Glad¬
stone referred to are of great interest: "I am one of
those," says the Premier, " who see the utmost, incurable,
radical and profound mischief from what is called the
publican's monopoly, and not through any fault of the
publican, or, indeed, of anjr one. My firm belief is, that
as long as the monopoly connected with private interests
belongs to the trade, we shall never have a true and
efficient police supervision exercised over the public
houses ; and without that they must continue to hold the
disparaged and unsatisfactory position which they do now
hold and have held for many generations."
Among the allies of the movement in England are
counted the Archbishop of Canterbury and York, the
Bishops of London and Durham, Judge Thomas Hughes,
Q.C., and others. Judge Hughes has recently addressed
an open letter to the Bishop of Chester on the public house,
beginning thus : " Dear Bishop : —You may claim me as
a thorough — though you may think a somewhat tardy —
convert, and you may reckon on me for any help I can
give your plan, as'I think it out and out the best thing we
have yet had before us in England."
Yet the Scandinavian plan has already been put to prac¬
tical tests in England. In four different localities public
houses have, under favorable circumstances, been success¬
fully worked on this principle, and " on a much larger scale
in the British army, especially in India, where, under the
auspices of Lord Roberts, the regimental institutes or
soldiers' clubs have been boldly developed, with highly
beneficial results."
The Alcohol Monopoly in Switzerland.
It remained for that most democratic country in Europe,
if not in the world, Switzerland, to give the Scandinavian
pi-inciple a wider application, namely, to the entire manu¬
facture and wholesale distribution of spirits. The chief
circumstance leading to the formation of this monopoly
was the great danger perceived from the ever-growing
170 THE NORWEGIAN SYSTEM, ETC. [Feb.
consumption of spirits. The adoption by an overwhelm¬
ing majority of a law creating a government monopoly of
the wholesale trade in distilled spirits is the more remark¬
able when it is remembered that by the Swiss institution
known as the Referendum the votes of all Swiss citizens
had to be taken on the question. The federal law in its
final form was passed in 1886, and charges the federation
with the production, importation and distribution of
spirits, and gives it the right to make contracts with
private persons for supplying spirits. While the federa¬
tion is made responsible for the materials used in the
production, it does not furnish spirits in a ready state for
consumption. The government only sells the raw article
in quantities of not less than about forty gallons. Thus
it does not control the ultimate distribution nor the man¬
ner in which the spirits are dealt with after passing into
the hands of the retailers, who are licensed by the cantonal
governments. The monopoly does not include wine, beer
or fruit brandy.
The federal government receives the whole revenue
from the wholesale, taxes and customs, and the net
income is divided among the cantons in proportion to the
population. The latter are required to devote ten per
cent, of the funds in combating drunkenness and its effects.
Three objects were sought by the introduction of the
monopoly: (1) to restrain consumption; (2) to furnish
pure spirits; and (3) to obtain a larger income for the
cantons.
From the information at hand, it does not appear
that the first object has been largely realized, nor
could this in any reason be expected as long as the
monopoly has no power to restrict or even supervise
the actual consumption of spirits. Only one canton,
that of the town of B&le, has given its government the
monopoly of the retail trade in spirits; but it is not
clear that the effect has been to diminish the number of
public houses or the consumption of intoxicating liquors
in this canton more than in any other part of Switzer¬
land. The root of the evil is left to flourish. The
annual statistics published by the government would
1894.]
HOUSE —No. 192.
171
indicate that the consumption of spirits has decreased
very materially under the monopoly, and that a consider¬
able diminution was noticeable at once; but, as the
statistics published previous to the establishment of the
monopoly entered as home consumption large quantities
of liquor smuggled out of the country, and the spirits
manufactured from fruit are not included, the consump¬
tion has probably not diminished as much as would
appear from official documents. Since 1890 a very
marked increase has taken place.
As a financial scheme, the monopoly has been a great
success. The revenue derived from the traffic is not, as
already remarked, at the disposal of the federal govern¬
ment, but must be divided among the several cantons.
In other words, the federal government has all the care
and trouble of the monopoly, while the local governments
spend the surplus, which they have not even been obliged
to collect. The only provision relating to the manner in
which the money shall be spent is that every canton must
devote one-tenth of its share to combating the evils of
alcohol. The cantons allow themselves great liberty in
interpreting the phrase "evils of alcohol." During 1891
we find that a large part of the tenth, or " alcohol tithe,"
went to support the unemployed, to lectures on cookery,
country holidays, etc. One canton even spent the whole
of its tenth in combating intemperance by establishing a
training school for elementary teachers. This is not in
accordance with the views of the federal government, and
steps have been taken for a better regulation of the
appropriations.
It will be seen that the Swiss alcohol monopoly differs
fundamentally from the company system, as it is known
in Sweden and Norway. In Switzerland the government
controls the wholesale trade and becomes responsible for
the production and importation of spirits, leaving the
public houses and the retail trade pretty much where they
were. In the Scandinavian countries the idea is to reform
the saloons, and not interfere with manufacture and im¬
portation further than to secure thorough legislative
control. Again, while in Switzerland the federal gov-
172
THE NORWEGIAN SYSTEM, ETC. [Feb.
eminent is charged with the monopoly, in Scandinavia
each municipality is left to work out the problem for itself.
The South Carolina State Monopoly.
This is also in every way distinct from the Scandi¬
navian company system. The dispensary law of this
State, which went into effect in July last year, is de¬
scribed by Governor Tillman as the result of a " compro¬
mise between the prohibitionists and the temperance peo¬
ple, who were skeptical as to the practicability of a prohibi¬
tion law." It was further declared and amended by an act
approved Dec. 23, 18"J3. Under this act the sale of all
beverages containing alcohol is made a State monopoly.
The manufacture of such beverages except for delivery to
the State agent is forbidden, nor may liquor of any de¬
scription lie carried into the State unless consigned to the
central dispensary. Heavy penalities are imposed for
any infringement of the law.
The governor, the attorney-general and the comptroller-
general constitute ex officio a State board of control
charged with the execution of the provisions of the law.
A commissioner, appointed by the governor for the term
of two years, and who must be an abstainer, is alone au¬
thorized to purchase all the liquor to be sold in the State
and to redistribute it to the local dispensers. But before
being shipped the liquor must be tested by a qualified
chemist, to insure purity. Every package of liquor,
whether shipped to him or by him, must bear a certificate
from the commissioner, stating that the liquor in question
has been purchased for sale within the State.
The State board of control again appoints a county
board of control, consisting of three persons believed to
be abstainers, and who hold office for two years. The
latter board is empowered to formulate the rules to gov¬
ern the sale of liquor in their respective counties ; but
their orders must first be approved by the State board.
The members of the county board are required to meet at
least three times a month, and receive two dollars per diem
and mileage when engaged in their official duties.
1894.]
HOUSE —No. 192.
173
For each county are appointed one or several dis¬
pensers, who are the retailers of the liquor. The require¬
ments with regard to the qualifications of the applicants
for this position are very severe. The dispenser, whose
salary, as well as those of his assistants, is fixed by the
State board of control, must sell all liquors in the original
packages, which must not be opened by him under any
pretext whatever, nor may they be opened on the premises
by the purchaser. Before selling or delivering any intoxi¬
cating liquors to any person, a request must be presented
to the county dispenser, printed or written in ink, stating
that lie or she is of age, giving the residence of the signer
for whom or whose use the liquor is required and the
quantity and kind wanted. This request must be signed
by the applicant and attested by the county dispenser or
his clerk, who receives and files the request. But the re¬
quest must be denied if the person applying is known to
be a minor, or is intoxicated or known to be intemperate.
If the applicant is not personally known to the county
dispenser, a reference from some reliable person is re¬
quired before the order for liquor may be filled. Every
precaution is taken to guard against fraudulent practices
on the part of the local dispensers with regard to the pur¬
chase and sale of liquor. Full returns, under oath, must
be made to the county auditor of all the orders filled by
the dispenser or his clerks, etc.
Druggists must purchase liquor from the county dis¬
pensary only for use in preparing medicines that are not
sold as beverages.
In hotels for tourists or health-seekers liquor bought
from a dispensary may be served bona-Jide guests by the
bottle when special permission has been obtained from
the State board of control.
The most stringent provisions to prevent illicit manu¬
facture, sale and importation of liquors have been enacted.
The profits from the trade of the local dispensaries are
divided equally between the county treasury and the
municipal corporation in which the dispensary is located,
after deducting the necessary amount for expenses.
According to the official statement for the four months,
174 THE NORWEGIAN SYSTEM, ETC. [Feb. '94.
July 1 to Oct. 31, 189;'), the profit to the State during this
period was $32,198.10, and to the counties and towns,
$20,295.77.
The law does not interfere with the no-license privilege.
Of course the Soutli Carolina experiment is too recent
to warrant any deductions as to its effects. When meas¬
ured with the company system, the merits claimed for it
offer many points of similarity. It aims to remove the
element of private profit-making, reduce the number of
licensed places, furnish pure liquor, shorten the hours of
sale, stop selling on credit, etc. But, as a species of State
socialism pure and simple, it differs from the company
system in most essential respects. The authority which,
under the company system, is conceded the municipality,
is here vested in the State. Thus the control of the
whole traffic is left in the hands of political appointees,
instead of being entrusted to non-officeholders, by which
means the way to corruption is left open.
Again, the South Carolina scheme is nearly prohibitive
in form, and hence probably a step in advance of public
opinion, and must suffer from the dangers this involves.
The company system aims at progressive reform, and
depends upon the support it can receive from educated
public opinion.
It also deserves to be pointed out that in South Carolina
only a very limited number of persons are made directly
interested in and responsible for the manner of control,
while the opposite is the case under the company system.
INDEX.
INDEX.
A.
TAOE
Act to establish the Norwegian system, 6-15
Alcohol :
monopoly of Switzerland 169-172
per cent, of, in liquors sold in Gothenburg 50
per cent, of, in liquors sold by companies in Norway, ... 135
Alcoholism. (See " Delirium Tremens.")
Annuities :
granted to liquor dealers for surrender of permanent licenses in Stock¬
holm 59
granted for surrender of licenses in Christiania, .... 121
Apothecaries, law regulating sale of brandy by, in Sweden, ... 30
Appendix 168-174
Arrests for drunkenness :
analysis of, in Gothenburg, 55
number of, in Bergen (1877-92), 116
number of, in Christiania (1876-92) 127
number of, in Gothenburg (1855-92), 53
number of, in Stockholm (1876-91) 67
number of, in Sweden (1874-91) 81, 82
police regulations of Bergen governing, 112
value of statistics of, 51,52,66,117
Arrests for illegal sale of intoxicants :
in Sweden, 82, 83
in Bergen 118
B.
Bar and retail trade in brandy :
in Sweden, regulations governing 26, 30
in Norway, regulations governing, 92, 94
Bar and retail trade in wine and malt drinks in Sweden, regulations
governing, 31, 32
Bar and retail trade in wine and beer in Norway, law governing, . . 95
Bar managers. tSee " Managers.")
Bar-rooms, food in 42, 101, 107
Bar-rooms, location of:
in Gothenburg 47
in Stockholm, 64
Bar trade and retail licenses :
in Sweden, decrease in number of, 74
in Sweden, number of, held by companies, 76
178
INDEX.
tage
Bar trade, decline of :
in Bergen, Hf>
in Christiansand, 104
in Gothenburg, 50,51
Beer :
consumption of, in Norway (1871-91) 140
consumption of, in Sweden (1861-90) 80
consumption of, in Europe and America 81
cost of license to sell, in Norway 95
drinking, increase of, in Sweden 56, 57, 80
drinking, increase of, in Norway, 128,140,164,165
monopolization of bar trade in, in Norway, 134, 141
not included in company monopoly in Sweden, 56, 57
results of company monopoly of, in Christiansand 102
sale of, by small dealers in Norway, 98, 127, 140
taxation of, in Norway 140
wine, mead and cider, law relating to sale of, in Norway, . . .95, 96
Bergen:
arrests for drunkenness in 116, 117
arrests for illegal sales in 118
company system in, 105-121
consumption of brandy in (1877-92), 114
licenses and population in (1877-92), 112
number of refusals to minors and intoxicated persons in, . . . 119
Bergen Company:
administration of, 105
antagonism to, 110
by-laws of, 105
capital stock of 105
distribution of profits of, 106
history and development of, 107, 108
municipality, relation of, to 107
police, and the, 110, 121
public opinion on, 120, 121
shareholders in 108
temperance advocates and, 106
Berner, E. H., criticism on report of T. Michell, 150, 151
Brandy:
consumption of. (See " Liquor.")
definition of, 19
law relating to manufacture of, in Norway 91, 92
law relating to manufacture of, in Sweden, 24-26
production of, in Sweden (1873-76), 23
purchase of, by clubs in Norway, 138
quantity of, consumed in Sweden prior to the Gothenburg system, . 17
regulations governing bar and retail trade in, in Norway, . . .92, 94
regulations governing bar and retail trade in, in Sweden, . . .26, 30
taxation of, in Norway, 90, 91
taxation of, in Sweden, 25
wholesale trade in, in Norway, free, 137
Brewers, sales by, law regulating, in Norway, 96
By-laws :
of corporations, regulations governing, under the proposed act, . 9
supervision of, of Norwegian liquor companies, .... 161
INDEX.
179
c.
Capital : page
interest on, paid by companies in Sweden, 70
investigation relative to the, held by companies in Norway, . . 130, 131
Chamberlain, Joseph, on the Gothenburg system 3, 168
Charities aided by profits of liquor companies 143, 144
Christiania :
arrests for drunkenness in (1876-92), '127
company system in, 121-129
consumption of liquor in 125, 126
licenses and population in 125
sub-licensing in 122, 123
Christiania Company :
bar-trade places, how managed by 123, 124
contract of, with sub-licensees, 122, 123
licenses held by 122
quantity of liquor sold by (1886-92), 126
refusals to sell liquor by 128
relation of, to temperance societies 129
Christiansand :
company system in 97-105
consumption of liquor in 104
licenses and population in, 103
Christiansand Company :
beer licenses acquired by, 98
capital stock of, 97
history of 97-100
licenses held by 102
measures adopted by, to check consumption 98
police, relation of, to, 99
rules governing bar trade, places of, 100
sales of liquor by, 100, 102
temperance societies, relation of, to, 102
traffic of, how conducted, 101
Clubs :
licenses not granted to, in Bergen 110
sub-licensing of, in Christiania 123
sub-licensing of, in Sweden, 43, 60
Commission :
Norwegian, report of, 1-5
Norwegian, purpose of, . 2
licensing under proposed act, 9
Company system in Norway:
advantages of, 118, 149, 166, 167
consideration of, 96-151, 160-167
extent of 129-131
effect of, on social and economic conditions, 142
drunkenness diminished under, 141, 142
licenses, number of, reduced under, 133, 134, 163
liquor, consumption of, reduced under, 134-139, 164
liquor, price of, under 139
monopoly, extent of, under, 96, 134
opinion, public, on, 149-151
temperance measure, introduced as a, 96, 160
temperance societies and 151
traffic, how conducted under, 131, 132
180
INDEX.
pauk
Company system in Sweden:
considerations of, 32-89, 152-160
defects of, 87
effects of, on social conditions, 83
extent of, 70
drunkenness decreased under 79-82, 158, 159
licenses, number of, reduced under 73-76
liquor, consumption of, reduced under 77
monopoly, extent of, under, 32, 33
opinion, public, on 87-89
scope of, 32
temperance societies and 88
traffic, how conducted under ... 70, 71
Confiscation :
of liquor for illegal sales in Norway, 94
of liquor for illegal sales in Sweden 30
Consumption. (See " Liquor.")
Contract. (See " Manager.")
Convictions for drunkenness. (See " Arrests.")
Crime :
effect of company system on, in Sweden 83, 84
effect of company system on, in Norway 142
D.
Dealers, wholesale, sales by, in Norway 135, 136
Delirium tremens :
number of cases of, in Gothenburg (1865-91) 53
number of cases of, in Stockholm (1876-91), 67
Distillation :
free, effects of, in Norway 90
illegal, fines for, in Norway 92
illegal, fines for, in Sweden, 25
of brandy. (" See Brand}'.")
Distilleries :
number of, in Norway, 90
number of, in Sweden prior to company system 20, 21
Drinking, not made respectable through the company system, . . 165
Drug stores. (See " Apothecaries.")
Drunkards, habitual, how dealt with in Norway, 132
Drunkenness :
among women in Sweden 56
analysis of arrests for, in Gothenburg, 55
classification of persons arrested for, in Bergen, . . . . 117
decrease of, in Norway, 141, 142, 165
decrease of, in Sweden 79, 157
law relating to, in Sweden, 52
number of persons arrested for, in Bergen (1877-92), . . . 116
number of persons arrested for, in Christiania (1876-92), ... 126
number of persons convicted for. in Gothenburg (1S85-92), . . 53
number of persons convicted for, in Stockholm (1876-91), . . 67
number of persons convicted for, in Sweden (1874-91), . . . 81,82
police regulations of Bergen governing arrests for 112
value of statistics of, 51, 52, 66, 117
INDEX.
181
E.
page
Eating-houses conducted by Gothenburg company, 39, 41
Economic conditions, influence of, on consumption of liquor, . . 48,50,114
England:
company system applied in, 169
introduction of company system advocated in, . . . -3, 1G8, 169
Expenditures and receipts of Swedish companies 73
F.
Fairs :
in town and country in Norway, regulations governing sale of
brandy at, 94
markets, auctions, etc., in Sweden, bar trade in wine and beer only
permitted licensed residents at, 31
Fees :
license, distribution of, in Sweden 29
license, in Norway, 92
Finland, company system in 168
Fishery season, serving or giving brandy illegal in Norway during, . 94
Food in bar-rooms 42, 101, 107
G.
Gladstone, Mr., on the Scandinavian system 3, 165
Gothenburg:
analysis of arrests for drunkenness in, 55
committee appointed to investigate causes of pauperism in, . . 21,22
company system in 33-59
effects of company system in, 45-56
number of cases of delirium tremens in, 53
number of persons convicted for drunkenness in, ... 53
privileged licenses in, 45
proportion of individuals to number of convictions in (1892), . . 54
population and licenses in, 46
quantity of liquor sold in (1875-92), 49
Gothenburg Company:
administration of, 41-45, 57
capital stock of, 33
contract of, for managers of bars, 35-38
contract of, for managers of retail shops, 39
contract of, for wine merchants, 43, 44
eating-houses conducted by 39, 41
expenditures and receipts of, for year ending Sept. 30, 1892, . . 58, 59
licenses held by, 34, 36
per cent, of alcohol in liquor sold by 50
price of liquor sold by, 50
reading rooms supported by 42
reduction of licenses under, 46
reduction of convictions for drunkenness under, .... 49
reduction of sales of liquor by, 50
regulations governing inspectors of, 39
sub-licensing by 43, 44
women, employment of, by, 41
182
INDEX.
page
Gothenburg system :
and South Carolina monopoly compared 174
and Swiss alcohol monopoly compared 71
defects of 87
methods of granting licenses under, 27-29
number of towns in Sweden having adopted, 70
origin of, 20-23
public opinion and 87-89
reasons why, inferior to Norwegian 4, 5, 87, 160
H.
History of:
Bergen company 105-108
Christiansand company, 97-100
Gothenburg company 21, 22
liquor legislation in Norway, 90-91
liquor legislation in Sweden, 19-24
Hotels :
sub-licensing of, in Norway, 101, 110, 122, 123, 132
sub-licensing of, in Sweden, 43, 60, 69, 70, 71
Hours of business of liquor shops :
in Bergen, 109
in Christiansand, 100
in Gothenburg, 39, 40
in Stockholm, 61
I.
Illegal distillation :
law relating to prosecutions for, in Sweden, 26
penalties for, in Norway, 92
penalties for, in Sweden, 26
Illegal sale of brandy, fines for in Sweden 30
Illegal sale of liquor:
arrests for, in Bergen, 118
number of persons sentenced for, in Sweden (1885-91), ... 83
Inspectors of drinking places, rules governing, in Gothenburg, . . 39
Interest :
amount of, paid to shareholders in Norway 93
rate of, paid to shareholders in Norway 130, 131
Intoxication. (See " Drunkenness.")
Iv.
Karlstad Company :
licenses held by, 69
sales of liquor by, 69
L.
Land, ownership of assessed, necessary qualification for the manufacture
of brandy 25, 91
Law :
liquor, consideration of (1855), 20, 21
liquor, of South Carolina 172, 173
INDEX.
183
PAGE
Law relating to :
inspection of distilleries in Sweden, 25
intoxication in Sweden 51
manufacture of brandy in Norway, 91, 92
manufacture of brandy in Sweden, 25, 2G
penalties for illegal distilling of brandy, 26, 92
penalties for illegal sales of brandy, 30,9-1
redemption of license in Norway 93
sale and bar trade in beer, wine, etc., in Norway, . . . .95,96
sale of brandy and other distilled liquors in Sweden, . . .26, 30
sale of brandy on steamers in Norway, 93
sale of wine and malt drinks in Sweden, 31
taxation of brandy in Sweden, 20
Laws, liquor, of Norway, penalties for neglect to report offences against, 94
Legislation :
liquor, in Norway, 90-91
liquor, in Sweden, 19-24
License fees:
amount of, under act to establish the Norwegian system, . . 13, 14
distribution of, in Sweden, 84-87
Licenses:
at auction, number of towns in Sweden selling, 70
beer, cost of, in Norway, 95
beer, number of, in Norway, 134
classes of, to be granted under the act to establish the Norwegian
system, 12
conditions upon which, granted companies in Norway, ... 93
conditions upon which, granted companies in Sweden, . . .26, 27
under the act to establish the Norwegian system, . . . .6,8,9
number of, granted under the act to establish the Norwegian sys¬
tem, how fixed 13
permanent, in Sweden, 73, 76
population and, in Bergen, 112
in Christiania, 125
in Christiansand, 103
in Gothenburg, 46
in Karlstad, 69
in Norway, 133
in Stockholm, 63
in Sweden 74-76
in the United States, 163, 164
under act to establish the Norwegian system, . . 13, 14
privileged, in Christiania, 121, 123
in Gothenburg, 45
in Sweden, 76
redemption of, law relating to, in Norway, 93
reduction of, in Norway 133
in Sweden, 73-75
steamer, in Norway, law relating to 93
temporary, in Stockholm, 64
time limit of, granted under the act to establish the Norwegian sys¬
tem 8
Liquor :
cheap, influence of, on sales 70
companies in Sweden, profits of (1881-92) 85
consumption, causes of increase of, in Norway since 1887, . . 137
184
INDEX.
rage
Liquor— Concluded.
consumption of, per inhabitant, in Bergen, . . . ' . . 114
in Christiania, .... 125
in Christiansand, .... 104
in Gothenburg, .... 49
in Karlstad, 69
in Norway 135-137
in Stockholm, 65
in Sweden, 77
consumption of, by provinces in Sweden, 78
legislation. (See "Legislation.")
sales. (See " Sales.")
Local option privilege :
secured by law in Sweden, 27
under company system, 5, 167
Location of bars and retail shops in Sweden 47, 64
M.
Malt liquors, law regulating sale of, in Sweden 31, 32
Managers of bars :
contract of, in Christiansand, 101
contract of, in Gothenburg 35-38
contract of, in Stockholm, 60
pay of, in Norway, 101, 109, 123, 131
pay and perquisites of, in Sweden, 35, 38, 60, 71
powers of, in Norway 99, 124, 132, 162
powers of, in Sweden, 40, 61
Manufacture of brandy :
law regulating, in Sweden, 24-26
law regulating, in Norway, 91, 92
Monopoly :
alcohol, in Switzerland 169-172
brandy, in Sweden, extent of, 58, 87
brandy, in Norway, measures to extend, 138, 139, 151
State, of South Carolina, 172-174
Municipalities s
influence of, on company system in Norway, 131
share of, in profits of the liquor companies in Norway, . . . 145, 146
share of, in profits of the liquor companies in Sweden, ... S6
N.
Norway:
causes of drunkenness in, 141
company system in 90-151, 160-167
company system in, advantages of, 148, 149
company system of, preferable to that of Sweden, . . .4, 5, 148, 149
consumption of beer in (1871-91), 140
consumption of brandy in (1876-92) 135
distribution of profits in, 142-148
law relating to manufacture of brandy in, 91, 92
law relating to redemption of licenses, 93
law relating to sale of brandy in, 92, 93
law relating to sale of brandy on steamers, 93
INDEX.
185
i'age
Norway — Concluded.
law relating to sale of malt liquors, wine, mead and cider, . . 95, 96
licenses and population in 133
police, regulations governing, arrests for drunkenness in,. . . 115
state revenue from tax on liquor 91
Norway and Sweden, investigation of liquor systems made in, 1
Naphtha, use of, in 139
o.
Opinion, public, and the company system in Norway 149-151
Opinion, public, and the Gothenburg system, 87-89
P.
Penalties for :
illegal bar trade in spirits in Norway 94
illegal distilling in Sweden, 26
illegal sale of brandy in Sweden 30
neglecting to report offences against liquor laws of Norway, . . 94, 95
violation of laws regulating manufacture of brandy in Norway, . 92
Police, comment of, on Christiansand company 99
Politics, relation of, to company system, 88, 131
Population and licenses. (See " Licenses.")
Price of spirituous liquors :
sold by Gothenburg Company, 50
in Norway 139
relation of, to consumption in Sweden, 71, 72
Profits :
classification of objects subsidized by, of the companies in Norway
(1891), 144
distribution of, in Norway 142-148
distribution of, in Sweden, 84-87
share, average of, received by municipalities in Sweden, ... 86
Swedish and Norwegian method of distributing, contrasted, . . 146
Prohibition, prevailing in country districts of Norway and Sweden, . 70, 130
Prohibitionists :
relation of, to Gothenburg system 88
relation of the Norwegian system, 151
E.
Reading-rooms, established by Gothenburg Company, .... 42
Refusals of liquor to minors and intoxicated persons :
in Bergen (1878-92), 119
in Christiania, 128
in different cities 165
significance of, 142
Religious revivals, influence of, on consumption of liquor, ... 79
Restaurant business, disadvantages of, in connection with sale of
spirits, 42, 101, 107
Retail and bar trade. (See " Bar Trade.")
Retail brandy trade defined, 26, 94
Retail licenses. (See " License.")
18G
INDEX.
page
Returns of corporations formed under the act to establish the Norwegian
system, ^
Returns, publication of, of corporations, 11
Revenue, distribution of, from Swiss alcohol monopoly I"1
s.
Sale of beer. (See " Beer.")
Sale of brandy. (See " Brandy.")
Sales of liquor at hotels in Bergen, plan for, 110
Sales of liquor companies :
in Norway (1876-92) 135
in Sweden (1886-92), 72
Saloons:
number of inhabitants to, in Stockholm, 64
number of inhabitants to, in cities of the United States, . . .163,164
South Carolina State monopoly :
distinct from company system, 5, 174
law relating to, 172, 173
object of, 174
profits from, 174
retail sale of liquor under 173
Stills in Sweden, great number of (1829, 1853), 19, 21
Stockholm :
company system in 59-68
consumption of liquor in, 65
convictions for drunkenness in, 67
licenses and population in, 63
number of cases of delirium tremens in, 67
number of temporary licenses in, 64
Stockholm Company:
contract of. for managers of bars, 60, 61
number of licenses held by, 60
quantity of liquor sold by (1877-92), 66
traffic, how conducted by, 60-62
transfer of licenses by 60, 62
Sweden :
arrests for drunkenness in (1874-91) 82
average annual consumption of beer in (1861-90) 80
of liquor in (1874-92), 77
company system in 32-89
extent of company system in 70
law relating to intoxication in, 51
laws relating to liquor companies 27-29
law relating to manufacture of brandy in 24
law relating to sale of brandy in, 26
law relating to sale of wine and malt drinks in, 31
licenses and population in 73-75
number of towns with liquor companies in, 70
origin of company system in 21, 22
profits of liquor companies in So
sub-licensing of hotels, etc., in, 43,44,61,62,70,71
traffic of liquor companies, how conducted in, 70-72
transactions of liquor companies in 72, 73
INDEX.
187
page
Switzerland :
alcohol monopoly in 170-172
consumption of liquor in, 170, 171
extent of monopoly in, 170
monopoly of, differs from Scandinavian system, .... 171
objects of monopoly in, 170
revenue from monopoly, distribution of, . . - . . 171
T.
Taxation of :
manufacture of brandy in Norway, . 91
manufacture of brandy in Sweden, 25
retail and bar trade in brandy in Norway, 92
retail and bar trade in Sweden, 28
Taxpaying institution, company system not a, 86
Temperance reformers, work of, in Sweden 20
Temperance societies, influence of, in Sweden 79
Temperance societies, relations of:
to Christiansand company, 102
to Cbristiania company, 129
to company system in genaral, 81,151
Temperance societies subsidized by brandy companies in Norway, . . 145
u.
United States :
consumption of liquor in, 81, 157, 164
licenses and population in cities of, 163, 164
w.
Wholesale in brandy :
in Sweden, defined, 26
in Norway, defined, 92
Wholesale :
minimum quantity which can be disposed of at, to be raised in Nor¬
way, 138
sales by dealers at, in Norway, 138
Wine and beer. (See " Beer and wine.")
Wine :
importation of, decreasing in Norway, 140
merchants, sub-licensed in Sweden, 43, 44, 62
Women:
employment of, in liquor shops 41, 101
intemperance among, in Sweden, 56
IMHIlSi!
3 5556 001 344 175