CO129-357 - Governor Sir Lugard - 1909 [7-9] — Page 578

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byalty on the morphine sold by the firm locally, and not $30.00

d that inspite of this tremendous reduction the Company had on forced to increase prices 20% and in consequence brought

bout a serious falling off in local sales. "The Opium Farmer

himself realizes that $30.00 per taell could only

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esult in extinction of the business altogether or fraud on a

jolossal scale. In the few cases where he enforces the tax,

e accepta analyses of probably fraudulent samples without

estion. Apart from the practicability or otherwise of the

30.00 tax it would seem that it is wrong in theory. The tax on opium is $3.00 per tacl, the tax on morphia $30.00 for the ane quantity, yet the dose of opium is only four times that of orphia; thus the letter, though only four times as potent in ts effect as the former, is taxed ten times as much. From a beoretical point of view the tax on morphia should be $12.00 bt $30.00.*

The Government Analyst, whom Mr. May consulted with gard to this matter, stated that owing to other constituents opium which have their effect, he would be inclined to say at the effect on the consumer of an equal quantity of morphine

opium is only as 3 to 1. Mr. Kay, therefore, recommended reduction of the royalty on morphine from $30.00 to $9.00 tael. Sir F.D.Lugard decided in these circumstances to fix royalty payable to the Opium Farmer on morphine at $10.00 tael, i.e. about 200% of the value of the drug, and effect given to this decision in Section 8 of Ord. 16 of 1909 which passed by the Legislative on the 24th of st June. In

ption 51 (4) of Ord. 23 of 1909 passed by the Legislative uncil on the ast instant the royalty on morphing has been tained at $10.00 per tael, but that on opium has been raised om $3.00 to $4.00 per tael, upon the representation of the

um Farmer that next year the price of opium is certain to be

less than $4.00 per tael.

Lord