E 5
modern stills be introduced in numbers, as has occurred in most other civilised places, then it will be necessary to amend the rules to bring them more into line with modern practice.
Removal of distilleries to New Territory.
During the year another large distillery was compelled by public improvements to remove to the Tsun Wan district where most of the larger distilleries are now situated. There are only six distilleries now left on the Island of Hong Kong, and it is probable that economic causes will compel some of the others to remove across to the mainland very soon, where land is much cheaper and water more abundant.
Denaturing.
The use of pyridine was introduced during the year as the general denaturant. A strict watch was kept over all applications to denature, and any new firm applying was carefully scrutinised and the premises visited, and the nature of the proposed use of the denatured spirit carefully ascertained. A list was compiled of approved firms, and no application to denature received from any firm not on the list can be passed without reference to an Executive Officer.
1
As a result of the stricter methods introduced the amount of spirit drawn for making varnish declined from a figure of 81,410 gallons in 1923 to 2,017 gallons in 1926. There is no doubt that the difference between these two figures was used for conversion into potable liquor by methods similar to those mentioned in my report for last year.
II. TOBACCO.
The nett revenue collected during the year was $1,835,036.77 as compared with $1,796,858.52 in 1925. This collection must be considered satisfactory, considering the circumstances prevailing in the Colony. The boycott and lack of means of communication considerably reduced the amount of smuggling of high-grade cigarettes.
A large amount of attention was devoted to a local cigarette factory. It was discovered that the returns submitted to this office were extremely inaccurate and misleading, and that the methods used by those responsible for collecting the data in the various sub-departments during the course of manufacture rendered it quite impossible for the general office to make correct returns. Guesswork, calculation, and adjustment in order to make the figures balance (in some cases this was not even necessary) had been substituted for strict methods of accounting.