DISTILLATION ACT.

Hokitika Guardian, 16 July 1919, Page 4

DISTILLATION ACT.

A REGENT PROSECUTION. STATEMENT BY CROWN SOLICITOR.

AUCKLAND, Jujly 14. Details of the recent excise prosecution in which a heavy penalty was imposed upon a wholesale firm, have just been officially made public. The folIjowing statement of facts lias been supplied by tho Crown Solicitor: “Sliarland and Co., Ltd., were holders of a license under the Distillation Act, to use a still for the manufacture of spirts of ammonia. Contemporaneously with the granting of the license a. bond was entered into with sureties by the company in tho sum of £SOO payable if the still were used for any other purpose than that specified in tho license. It was discovered, that, in breach of the license, the still had been used for distilling pure spirit from tincture of arnica. When tho matter was brought to the notice of the company they expressed tho greatest surprise, as such a misuse of the still was absolutely unknown to them. On enquiry, however, the company’s local manager ascertained from their factory manager that the latter had used tho still as alleged, hut he explained that his action was quite innocent, as lie had never read tlic conditions of the license and was therefore ignorant of the restricted use of the still. Under the provisions of the Distillation Act duty became payable upon the quantity of (spirits so distilled, and the Crown Solicitor w r as instructed by the Customs Department under direction of tlie Minister of Customs to take proceedings against the company not only for recovery of the full penalty of £SOO under the bond, but also for the unpaid duty, amounting to £9OO, on the quantity of spirit distilled in contravention of the licctnse. Proceedings were accordingly taken in the Supreme Court, and the company quite frankly admitted a. breach of the Act and of the license, and at once paid the amount claimed with costs. It, however, disclaimed absolutely any knowledge or suspicion whatever of the course of procedure of its factory manager, whose explanation of innocent contravention of the license it accepted, and acknowledged his deep sense of regret. At the same time the company realised the grave position in which it had been placed by the action ; of one of its servants, and in order , that the relations of confidence existing between tho Customs Department and ' an old-established and reputable company should not suffer any compromise it was deemed desirable that he should sever his connexion with the company, which ho has done.