BREACH OF DISTILLATION ACT

Dominion, Volume 12, Issue 249, 15 July 1919, Page 4

BREACH OF DISTILLATION ACT

', — A '' DETAILS OF RECENT PROSECUTION. By Telegraph—Press Association. Auckland, July 14. Details of the recent exciso prosecution, in which a heiivy penalty was imposed upon a wholesale lirm, have just been officially made public: The following statement of facts has been supplied by the Crown Solicitor:— "Sharland and Co., . Ltd., wero the holders of a license under the Distillation Act to use a still for the manufacture of spirits of ammonia. .Contemporaneously with the granting of the license, a bond , was entered into, with sureties, by the company in the sum cf ,£SOO, to 1» payable if the still wero used for any oilier purpose than that specified in the license. It was discovered that in the breach of. the license the still had been used for distilling pure Epirit from tineturn of arnica, When .(lie matter'was brought to the notice of the- company tlicy expressed the greatest surprise, as such a misuse of the stijl was absolutely unknown to them. On inquiry, however, the company's local manager ascertained from their factory manager that the latter had used the still as alleged, but he explained that his action \uis quite innocent, ns ho had never nxul the conditions of the license, and was therefore ignorant of the restricted use of rhe still. Under the provisions of tho Distillation Ac,t, duly became payable upon the quantity of spirits so distilled, and the Crown Solicitor was instructed by the Customs Department, under the direction of the Minister of Customs, to lake proceedings against the company, not. only for recovery of the full penalty of-,£500 under the Ijrnd, but also for the unpaid duty, amounting to .£9OO, mi tho i.uantity ot spirit distilled in contravention of the licence. Proceedings were, accordingly taken in.the Supremo Court, and the company quite frankly admitted the breach of the license and of Ihe Act. and at once paid the'auiount claimed, with costs. It, however, disclaimed absolutely any knowledge, or suspicion whatever, of the course of procedure, of ils factory manager. whose explanation of innocent contravention of the license it accented, and acknowledged his deep fetiso of regret. At t.lic same time the company realised tho grnvo position in which it had been placed hy the action of one of its servants, and in order that the relations of Mnfidence existing lietween the Customs Department and an old-establish-ed and reputable eompmy should not suffer nnv compromise, it. was deemed desirable that he should sevo< - _ Ids connection with the company, which lie has done."