Mr. Goschen’s Compensation Plan.—Two years later a second attempt was made by the same Government to legalise compensation. In the Local Taxation (Customs and Excise) Bill a scheme was formulated for the gradual reduction of public-houses. The main idea of this scheme was that each year the sum of £440,000, raised by increased taxes of 3d. a barrel on malt liquors and 6d. a gallon on spirits, should be used for the buying up of licences for the purpose of extinction. Of this sum, £350,000 was to go to England, £50,000 to Scotland and £40,000 to Ireland. In England and Scotland the money was to be apportioned among the County Councils, which would be permitted to buy up such licensed premises as they thought proper; in Ireland the authority to be appointed was the National Debt Commissioners. No compulsory powers of purchase were given; but all purchases would have to be made by agreement with the owners of the houses, at prices and under conditions fixed by mutual arrangement. After the passing of the Act, no new licences, except for eating-houses and refreshment-rooms, were to be granted unless the consent of the County Councils had first been obtained, and even when new licences were granted, it was to be on the express understanding that their renewal might “at any time be refused at the free and unqualified discretion of the licensing authority”.
In bringing the Bill before the House of Commons Mr. Ritchie said: “I assure the House that the sole object which the Government has in view is to promote temperance, and to help those who are endeavouring and who have so long endeavoured to battle against intemperance.... I have not the least intention of interfering with any powers now possessed by licensing magistrates.... Our sole object has been to help temperance reformers, and to promote the cause of temperance.” But temperance reformers did not see the matter quite in the same light as Mr. Ritchie; and the opposition to the proposals of 1890 was even stronger than to those of 1888. The main objections were that the measure created a vested interest where none previously existed, and that the proposals for extinction were utterly and ridiculously inadequate. Mr. Caine, a prominent Liberal Unionist supporter of the Government, resigned his seat in Parliament as a protest against the scheme; and before many weeks had passed, the second attempt was sent the same way as the first. The money intended for the compensation of the publicans was devoted instead to technical education.
Lord Randolph Churchill’s Bill.—In the same month as the Local Taxation Bill was introduced, Lord Randolph brought before the House of Commons his scheme for amending the licensing laws. This plan was admittedly partly based on Mr. Bruce’s Bill of 1871. The licensing authority was to be vested in the municipal authorities for boroughs and the County Council for counties. These bodies were not only to have the right to license, but also to regulate the hours of closing on Sundays and week-days. The power of direct veto was to be placed in the hands of the people, and in a parish where two-thirds of the ratepayers on the municipal rate book voted for prohibition, no licences were to be granted. Beer shops were to be swept away, and the kinds of licences were to be reduced to two,—the full publican’s licence and the refreshment-house wine and beer licence; and the rating qualification for a building used as a public-house was also to be considerably increased. Clubs in which drink was consumed were to be registered and to pay fees ranging from 30s. a year for a working men’s club to from £1000 to £2000 for the great West-end clubs. The noble lord was strongly in favour of compensation, and declared: “I hold that compensation for vested interests is an indispensable accompaniment to any scheme of licensing reform. Any such reform not accompanied by compensation for vested interests would be sheer confiscation and robbery.” But he did not deal with this detail in his Bill, on the ground that it would entail taxation in some form or another; and it is not in the power of a private member of Parliament to propose to the House taxation of any form or kind. Lord Randolph’s measure met with a very favourable reception when introduced, but he did not proceed even to the second reading with it.
The Bishop of Chester’s Bill.—In 1892, Dr. Jayne, Bishop of Chester, brought before the public a modification of the Gothenburg system that has since attracted a considerable amount of attention. He recognises that intemperance is far too common, and that our public-house system stands urgently in need of reform; but he believes that the use of alcoholic beverages must be accepted as inevitable, and that the best plan to adopt is not to seek to abolish the drink trade altogether, but to reform it. One of the great evils of the present system is that those who conduct public-houses have a direct pecuniary interest in selling the largest amount of drink possible; the Bishop desires to change the object of the sellers from private profit to the public welfare. To do this he would have philanthropic companies formed, which should buy up all the public-houses in a district, have a monopoly of sale, and conduct the traffic for the public welfare. The companies would derive no profit from the sale, except a certain fixed amount of interest on the capital invested. In their houses (to quote Dr. Jayne’s own description) “alcoholic beverages, though frankly recognised, will be disposed from their aggressive supremacy, and supplied under less seductive conditions. These conditions would, for example, be comfortable, spacious, well-ventilated accommodation; temperance drinks brought well to the front, invested with prestige, and supplied in the most convenient, attractive and inexpensive way; the pecuniary interests of the managers (e.g., in the form of bonus) made to depend entirely on the sale of eatables and non-alcoholic beverages; alcoholic liquors secured against adulteration; newspapers, indoor games, and, where practicable, outdoor games and music, provided; while the mere drink shop, the gin palace, and ‘the bar’—that pernicious incentive to drinking for drinking’s sake—would be utterly abolished.”
Dr. Jayne’s first thought was that such houses might be managed by the County Councils, but he soon saw that it would be better to place them in the hands of private companies. The methods by which he proposes that the companies should set to work may be best seen from an account given by him in the Daily Graphic for 25th October, 1893: “We are prepared to undertake the licensed victualling of your locality, paying to the dispossessed publicans such compensation as law and equity may require. We will at once reduce our houses to such number as the licensing authority may deem necessary; we will re-engage respectable publicans as managers on terms far more favourable to themselves, their families and the community, than managers now enjoy under the tied-house system. They will receive a fixed salary, with a bonus on the sale of eatables and non-alcoholic drinkables, but with absolutely no benefit from the sale of intoxicants. They will thus have no inducement to push the sale of alcohol, to drink with their customers, or to adulterate their liquors. As regards hours of closing and details of management we shall, within legal limits, be guided by local experience and opinion. Our surplus profits will be applied to public, non-rate-aided objects, including the establishment of bright and attractive temperance houses, to which those who wish to keep quite clear of the temptations of alcohol in any shape may safely resort.”
In 1893 he incorporated these proposals in a Bill which he brought before the House of Lords. The measure was defeated on the second reading; but Dr. Jayne is still hopeful that Parliament will grant the necessary powers for the attempt to be made where desired. Would it not be better for some town to definitely decide to adopt the Gothenburg system, and then go to Parliament with a request for an authorisation to do so? Such a demand is far more likely to be granted than a proposal that may be adopted anywhere or nowhere. If the method proved a success when first tried, there would be little difficulty in obtaining permission for other places to follow suit.
The Bishop of London’s Bill.—The Licensing Boards Bill may be taken as representing the plans of a moderate school of reformers. It was framed under the supervision of the Church of England Temperance Society, and introduced into the House of Lords in 1893 by Dr. Temple, Bishop of London. The Church of England Temperance Society differs in many ways from most temperance organisations. Its social work is worthy of all praise, and its magnificent agencies for the rescue of criminals and inebriates are so well known as hardly to require mention. But in the matter of legislative action, this society does not take up the extreme attitude of such organisations as the United Kingdom Alliance. Its membership contains a very large, if not a predominating Conservative element; and hence its proposals deserve attention as being those of the members of a party usually not foremost in legislation of this kind.
The Bill brought forward by the Bishop of London in 1893 proposed to transfer the power of granting all drink, billiard, music and dancing licences from the justices in each district to a specially elected Licensing Board. The Board was to be elected triennially by persons on the local government register of electors, and the cost of such elections and other expenses of management were to be borne by the borough or County Council. The Board would have power to alter the hour of closing on week-days, and all licensed houses would be closed on Sunday unless by special order of the Board. Even when the Board sanctioned Sunday opening, the houses would only be permitted to remain open for two hours, and could only sell drink for consumption off the premises. All clubs would have to be registered, fees being payable for such registration; and power would be given to the police to enter any club which they had reason to believe was carried on simply as a drinking club, and to charge the members found on the premises and the owner of the house before a magistrate. The principal provisions of the Bill, however, would not come into effect until five years after the passing of the Bill, when a large reduction of licences would take place compulsorily. This five years’ term of grace was provided for as a kind of compensation. At the end of five years from the passing of the Bill into law the following provisions would come into operation:—
(a) The only licences that are to be granted are (i.) a full publican’s licence; (ii.) a wine and beer on licence for a refreshment house; (iii.) a wine and beer off licence; (iv.) a licence for an hotel; and (v.) a licence for a railway refreshment room, the two last being special forms of the publican’s licence. After 1898, therefore, the following kinds of licence will cease to be obtainable: (i.) The beer dealer’s additional licence (off); (ii.) the beer retailer’s on and off licences; (iii.) the cider and perry on and off licence; (iv.) the table beer retailer’s licence (off); (v.) the wine retailer’s on and off licences; and (vi.) the sweets retailer’s on and off licences. None of these licences are required by a person holding a superior licence.
(b) The Board is to have full discretion to grant or not to grant any licence. After this provision comes into effect the present restrictions on the power to refuse certain licences, except on certain grounds, will cease.