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the 28th of October, 1880, by Messrs Jardine Matheson & Co., of a licence fee of $2000 imposed by the Governor in Council

the distillation of Spirits in connection

with a Sugar Refining Company and

distillery of which they are the General

Agents.

2.

I reported on this matter in

my despatch No. 190 of the 18th of

November, 1880; and again,

on the 30th November, in despatch No. 194.

3.

The gravamen of the complaint made by Messrs Jardine Matheson & Co. is in the following words :-

"It is very doubtful whether operations at the distillery can be carried on under the burden of so heavy a tax as an annual license fee of $2000."

4.

What value should be attached to this statement can be seen by the Quarterly Returns of proof spirits distilled by the Company. According to the letter I herewith enclose for Your Lordship's information, it appears during the quarter ended 28th February, 1881, they had distilled 23,479 gallons.

Nor is their statement confirmed by the Annual Report of the Company, just published, in which they admit a net profit on the year, after providing for the usual charges, of $150,959.

6.

I need hardly remind Your Lordship

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