E. 3
6. Private Warehouses. As the result of the fraud referred to in para. 2 above, supported by the discovery that one of the licensed warehouses had a secret sliding panel in the warehouse wall, by which admission could be gained when the warehouse was secured by a revenue lock, and by another case in which an export of 70 jars of alleged high strength spirit was found to be pure water, the Executive Council advised the abolition of the system of private licensed warehouses. In the new Liquor Ordinance passed in December this advice was given effect to. The proposal aroused the expected opposition from the trade. But it was not apparently realised that storage of dutiable goods in warehouses belonging to the importer, without proper Customs control or examination was almost unique, and not in accordance with strict Customs practice at Home and elsewhere. Finally the Government granted an extension of private warehousing privileges for six months from January 1st, 1932, and also offered to consider applications from approved firms provided they undertook to reimburse the Government for special European supervision, and provided the warehouses were otherwise suitable. Most of the present premises are unsuitable from the fact that the entrances are not on public thoroughfares.
7. European Liquor.—An unexpected increase was shown under most heads, especially in the more expensive and highly taxed classes, due wholly to the discoveries mentioned in para. 2 above. The increase in price due to the fall in exchange, the general depression, and the increase of duty as a result of the collection being put on a sterling basis, would naturally have led to a considerable decrease in the amount of duty collected. This actually happened in the case of the cheaper liquors such as beer, claret and vermouth; beer losing 13 per cent. and claret losing 23 per cent. Against this the more heavily taxed spirits showed a gain of 12 per cent., and even the highest duty class champagne and liqueurs showed a slight increase. A better result still would have been shown had not Christmas sales been exceptionally dull and duty-paid stocks been kept exceptionally low, owing to an impending reduction in duty due to the rise in exchange.
8. New Duties.—In September perfumed and medicated spirits and toilet preparations containing more than ten per cent. of alcohol were added to the schedule of dutiable liquors. There were large stocks in the Colony at the time, hence the amount collected was comparatively small. Although stocks were not taxed some retailers at once added the new duty, which they had not paid, to the price charged to their customers.
9. Local compounders of perfumes, toilet articles and medicated spirits, using imported spirits of wine on which they