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quantity of gallons bonded as remaining in bond and all export
trade is taken from that stock in bond. The final results of
auch methods will be that the Colony will be flooded with unpaid
broken down liquor a very remunerative transaction for dealers.
This broken down Whisky is of course sold with the
duties added and it may be that the rebate allowed to the Military
and Naval Authorities include a refund of duty on Whisky &o.which
has never paid duty. Admission has been made that for making
a special Blend of Whisky, liquor is taken from three different
casks and water is then added for breaking down, the quantity
increased is passed into consumption and the balance is included
in the stock until exported; meanwhile the stock of these three
• oasks” consiste partly of the pure and partly of the broken down
liquid a deficiency which comes under the penalty of Section
The Ordinance has no mention that the increase of liquor by
breaking down is to be passed into consumption free of duty.
Section 3 (1) and 3 (2) distinctly state "intoxicating liquore
imported into distilled made or prepared in the Colony", and
breaking down is making or preparing a liquor. One firm sold
3.
to a Chinese licensee a certain quantity of broken down Whisky
who removed it into his warehouse and subsequently paid duty or
this broken down Whisky for consumption.
It may be argued that the merchants may import and pay
duty on the cask of Whisky immediately on arrival ex. ship
without bonding it and once free may increase the quantity as
they wish according to the Regulation made by the Legislative
Council on the 2nd December, 1909, which reads as follows:-
Further resolved that on intoxicating liquor, other than spirits of wine, arrack and native wines and spirits imported into,distilled, made or prepared in the Colony above proof strength there shall be paid an additional duty of 4 cente for every degree above proof in the case of brandy, 3 cents for every degree above proof in the case of Whisky, and 2 cents for every degree above proof in the case of any other liquor.
In that case samples of such liquor must be taken by
the