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Matheson & Co. have taken over the distillery and after allowing them to purchase the pending plant, the Governor raises the license fee to $2,000 without giving my statement in the debate on the fee. W. Keswick says that Jardine Matheson & Co. could well afford to pay the fee, and when he came to consider the application again next year, he might have to add "a good deal" to the amount.

Jardine Matheson & Co. attribute the proceeding to the Governor's personal animus against the local manager (by whom this letter is no doubt written, H. Keswick), and the Colonial debate report, which they enclose, in support of this view is that in the City Hall question which we have had before, the Governor's tone towards them indicates a bad feeling.

In any case, the matter represents an explanation. Jardine Matheson & Co. have addressed this letter in triplicate to the Colonial Secretary but send this fourth copy direct "to guard against the possibility of delay".

We do not hear from the Governor on the subject, and we should, I think, ask about it. Indeed, it would perhaps be well to request...

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