BREWERS' CONTROL

Evening Post, Volume CXL, Issue 22, 26 July 1945, Page 8

BREWERS' CONTROL

CANTERBURY HOTELS

STATEMENT TO COMMISSION P.A. CHRISTCHURCH, This Day. Evidence concerning the interests of brewery companies in licensed hotels in Canterbury was given to the Royal Commission on Licensing yesterday. The Crown representative,' Mr. J. D. Willis, told the Commission that there were two main brewery companies in the province. Ballin's Brewery (N.Z.), Ltd., including Ballin Bros., Ltd., appeared to own 15 hotels, to be lessees of three, and to hold mortgages over 16—a total of 34 in which the company was interested. New Zealand Breweries, Ltd., appeared to own 14 hotels, to be lessees of five, of which the search notes showed four to have been sub-leased by them, and held mort-. gages over 45. Therefore the two companies uetween them appeared to be interested in 98 out of 167. The search notes revealed a form of tie that had not been noticed before, and it related to mortgages and leases, said Mr. Willis. In one instance where a private individual owned a hotel it was mortgaged to another private individual, and the mortgage covenant provided that the rate of interest should be reduced if the beer and certain other articles sold in the hotel were purchased from New Zealand Breweries. Mr. Willis said that these mortgages had not been executed by New Zealand Breweries, Ltd. It would be remembered, he continued, that in Wellington mention, was made of a mortgage Ballin's Breweries, Ltd., had over two hotels in the Chatham' Islands. This mortgage contained a proviso that the mortgagors should pay to the mortagee a commission of 25 per cent, on English ales, stouts, wines, and cordials sold, but there was a further proviso that if beer was purchased from the mortgagee the commission would be waived. After quoting further examples Mr. Willis said he was not suggesting that there was anything reprehensible in the practice, but the search notes revealed that there was a definite tie to particular breweries.