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they said the business did not pay.

Substitutes had to be found and Phans, being certainly the Chinaman of the best standing who had formerly tendered, was

offered the business for himself and those with whom he was connected. As however it was better to leave to the Licensees a fair or

even a large profit, than to have perpetual changes in the holders of the Licenses, the Sum

was reduced

by another $2000 per annum leaving it at $20000 per annum and it may be said, that after the experience this Government has had this sum is at present about the

right one to fix as the basis of the Fees.

the last two Licenses, therefore, have been granted on the principle

of a fixed amount of fee combined with the selection of the persons from the most experienced and powerful of the Chinese, and I unhesitatingly say that in the event of a change in the holders of the Licenses this principle

must be continued.

Choice by lot besides giving rise to all sorts of chicanery might probably enough leave in most responsible positions men utterly unfit for the charge, and ever.

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