The Control of Liquor in Sweden 9780231892797

Table of contents :
Preface
Contents
Charts
I. The Era Of Laissez Faire
II . From the Gothenburg to the Bratt System
III. The System Companies
IV. The Wholesale Trade
V. The Plan of Individual Control
VI. Individual Control—Scope and Application
VII.The Service Trade
VIII. Beer
IX. The Supervisors of Temperance
X. Results
XI. A Postscript
Bibliographical Note
Index

Citation preview

THE CONTROL

LIQUOR

IN

OF

SWEDEN

THE CONTROL OF

LIQUOR IN SWEDEN BY

WALTER THOMPSON PROFESSOR OF P O L I T I C A L SCIENCE STANFORD UNIVERSITY

NEW Y O R K : MORNINGSIDE HEIGHTS

COLUMBIA U N I V E R S I T Y PRESS 1935

COPYRIGHT C O L U M B I A

U N I V E R S I T Y

PUBLISHED

PRINTED

IN T H E

1935 PRESS

1935

U N I T E D S T A T E S OF

AMERICA

PREFACE T H I S work was begun several years ago, at a time when national prohibition, to many people, seemed firmly intrenched in the United States. T o some, however, it was becoming apparent that the American people, having learned little and forgotten much, were in danger of forsaking prohibition with the same planlessness and hopeful enthusiasm with which the policy had been adopted. H o w could such a catastrophe be avoided? I cherished the hope that by supplementing American experience and experiments with those of other peoples, sufficient data might be made available to serve as a basis for departure in the direction of constructive liquor legislation. H a v i n g drawn from these sources and launched out on a policy of control, we would have to learn by the painful process of trial and error, but we might be spared the grief of a wrong start. It seemed possible. Certainly it was worth striving for, and I felt that perhaps I could render a slight service toward the solution of the American liquor problem by presenting an account of the Swedish experiment. Recent developments are proving that the apprehension which inspired this study was not without foundation. Repeal has not solved our liquor problem, but has ushered in new difficulties. During the next few years liquor control will continue to occupy an important place in American legislation, and our methods of dealing with the problem will shape our future policies. Shall we control the liquor interests or will the liquor interests control us? There are no ready or absolute solutions to the problem. W e can avoid mistakes only by profiting from the experience of others, and a study of the Swedish system is far more pertinent today than it was when this work was undertaken.

vi

PREFACE

T h e Swedish method of control is a native product and cannot be transplanted in its entirety. Varying individual liquor allotments and a personal scrutiny of consumption would probably not find favor in the United States. But the scheme contains features meriting the serious consideration of Americans. I t is the result of nearly a century of constant experimentation and adjustment among a people remarkably like the Americans in their social and political institutions, standard of living, mechanical civilization, diversity of industries, and distribution of urban and rural population. In the light of such comparisons, is it too much to hope that a public monopoly of the liquor traffic which has worked satisfactorily in one country can be made to function successfully in another? When I first began the study, the burden of considering all phases of a complicated system of liquor control in a manner approaching scientific treatment seemed rather hopeless, and I was tempted to select certain features for a thorough investigation. I soon abandoned that method of approach because, while such a treatment would be of interest to the student of liquor legislation, it would have little significance to the average American who is unfamiliar with the general nature of the plan of control. I then decided to present a sketch general enough to acquaint the lay reader with the essential features and sufficiently detailed to serve as a reference work. T h a t was a difficult assignment. It turned out to be not a sketch, but a volume of such proportions that it had to be rewritten and condensed. But I have clung stubbornly to my early good intentions, regardless of my innumerable shortcomings in their fulfillment. The unity and coherence of the work have been marred by the necessity of prolonging the writing over a period of three years crowded with other matters. T h a t , unfortunately, is the usual lot of a writer. M y own troubles have been augmented by the fact that during the preparation of most of the manuscript an ocean and a continent separated me from Sweden. When I found myself lacking a document I was forced to dig up the information from a number of available sources. This

PREFACE

vii

should account for at least some of the many inaccuracies which are bound to occur in a work of this kind. Before completing the work, I had hoped to return to Sweden to check some of my findings and add the necessary finishing touches, but that is not within the realm of immediate possibilities, and an early publication of this work can best serve its original purpose. I f that purpose is served, I shall feel amply rewarded despite any criticism of the thoroughness with which the task has been accomplished. I t is impossible here to mention all of my friends in Sweden who have aided and encouraged me, but I cannot refrain from gratefully remembering a few. John Bergvall, manager of Stockholmssystemet, gave his valuable time without stint and placed the facilities of his company at my disposal. Nils H . Palm, Sten af Geijerstam, and Karin Schultz, also of Stockholmssystemet, were always willing to assist me. I am under a special obligation to M r . Palm for sending me material and keeping me posted on developments after I left Sweden. I am indebted to Einar Thulin of the Royal Board of Control for material on the operation of that agency and for his patient explanation of Swedish liquor regulations. F o r information on the temperance movement in Sweden I am obligated to August Ljunggren of Centralförbundet för Nykterhetsundervisning and to Axel Axelman of Sveriges Nykterhetssällskaps Upplysnittgsbyrá. Nils Horney of the Swedish-American News Exchange was ever solicitous for my welfare, and, I am afraid, jeopardized his personal popularity and his soul's salvation by arranging interviews for me with busy men. T o these and to scores of others I wish to express my gratitude. H a d they been within reach when the manuscript was written my mistakes would have been fewer. As it is, I alone must bear the blame for errors both of fact and judgment. I am also under obligation to Hilden R. Gibson who has read the entire manuscript and offered valuable suggestions. Most of all, I am indebted to my wife who has been my severest and most considerate critic. She has edited the manuscript,

viii

PREFACE

eliminated much extraneous matter, and graciously permitted me to retain much that perhaps should have been deleted. W . STANFORD U N I V E R S I T Y , CALIFORNIA MARCH 25, 1935

T.

CONTENTS I. T h e E r a of Laissez F a i r e I I . F r o m the Gothenburg to the Bratt System

3 .

12

I I I . T h e System Companies

31

I V . T h e Wholesale T r a d e

54

V . T h e Plan of Individual Control V I . Individual Control—Scope and Application

79 .

.

V I I . T h e Service T r a d e V I I I . Beer I X . T h e Supervisors of Temperance X . Results

103 122 150 176 186

Public Revenues—Consumption of Intoxicants — I m m o d e r a t e Indulgence—The Illegal T r a d e —Criticism—Public A p p r o v a l X I . A Postscript

229

Bibliographical N o t e

235

Index

239

CHARTS I. Distribution of system companies with rights to retail spirits and wine

35

I I . T r e n d s in spirits and wine consumption, 1 9 1 9 — 3 0

73

I I I I . T r e n d s in the number of pass books and the size of allotments in Stockholm, 1 9 1 4 - 3 0

.

.

.

.

111

1 I V . T r e n d s in the number of pass books f o r the entire kingdom, 1 9 2 5 — 3 0 , and percentages of the total f o r m e d by restricted permits

114

V . Distribution of taxable breweries W I . Correlation

between

drunkenness

169 and

legitimate

liquor consumption in Stockholm, 1 9 1 6 — 2 0

.

.

197

THE CONTROL

LIQUOR

IN

OF

SWEDEN

I THE

ERA

OF

LAISSEZ

FAIRE

THE consumption of intoxicating beverages is perhaps more of a social than an individual habit. It is part of the life and customs of a people. One cannot, without distorting the picture, take the Swedish liquor question out of its social setting and discuss it as an isolated phenomenon. If one were to write a really good history of liquor consumption and liquor control in Sweden, he would have to weave it into the general cultural development of the people. But that, unfortunately, cannot be done in a single chapter. Volumes could be written on it. I believe it was Talleyrand who said, "Everything happens." In the phantasmagoria of life one may expect the unexpected. But social movements do not just occur. Motivating factors may be obscured in physical environment, economic forces, social conditions or historical accident, but if all the facts were known they would probably reveal a clear relationship between cause and effect. Such is certainly the case in the development of social attitudes toward intoxicating liquor and the attendant regulations in which those attitudes find expression. T h a t is true for America as well as for Sweden. In Sweden the liquor problem has been affected by climatic, economic, social, and historical factors. Approximately a fifth of the country lies north of the Arctic Circle. Stockholm is located in approximately the same latitude as the southernmost point of Greenland. It is almost as far north as the Yukon region of Alaska. The proximity of large bodies of water has moderated the climate, but the winters are long. T h e summers are short, and too frequently are what the natives refer to as "green winters." In area, only four European countries are larger than Sweden, namely, Russia, Germany, France, and Spain. But only two European states, Norway

4

THE

ERA

OF

LAISSEZ

FAIRE

and Finland, are more sparsely populated. 1 A very small percentage of the land is arable. Nature has not dealt with a lavish hand. T h e Swedes have had to provide for themselves and have become refreshingly independent and possessed of a sane and wholesome set of social values. Is this niggardliness on the part of nature the cause of the peculiar significance which the Scandinavian people from time immemorial have attached to food and drink? A Finnish commentator on the Bratt System advances this theory. 2 T h e r e undoubtedly is some connection between the difficulty of procuring sustenance, the task of providing for the long and barren winter months, and the emphasis placed upon the necessities of life. I know of no people who attach more importance to nourishment. Food and drink have a peculiar significance to the Scandinavian. T h e two go together, mat och drick. Quantity as well as quality is emphasized. T h i s peculiar emphasis on food and drink goes back to the preChristian era. Valhalla was a place of perpetual feasting. Hospitality has been an inviolable law among the Scandinavian people. T h e Swede, even in this matter-of-fact age, succeeds in making you feel that you have honored him in permitting him to break bread with you. This traditional hospitality he does not limit to breaking bread. H e also shares his cup. Partaking of nourishment is not merely a process of satisfying the inner man ; food and drink are not just essentials; they are counted among life's finest and richest enjoyments. While food and drink have become associated, drink has also won a place for itself. T h e Swedes became not only an eating and drinking, but a drinking people, and too frequently they have been given to excessive indulgence. T h e i r excesses have probably been due more to the nature of the alcoholic beverage consumed than to the actual quantity, and here again, perhaps, we may blame geographical environment. Sweden produces few grapes. T h e grape insists on sunnier climes, but grain is Aldén, G. Α., Medborgarens Boi. Svelisi Statskunskap, (i6th ed., Stockholm, >9 J 5)> ΡΡ· 5> ' · 2 Hjdt-Cajanus, E., Brattiyitemet i Sverìgt (Helsingfors, 1931).

1

THE

ERA OF

LAISSEZ

FAIRE

5

grown successfully and potatoes are produced in abundance. T h e result is that, f r o m prehistoric times, the Swedes have consumed brewed beverages, and, f o r over three centuries, they have used distilled spirits. T h e humble p o t a t o has been the principal source of the latter. It contains starch, starch turns into sugar, sugar ferments, and the distilled and rectified product is known as brännvitt. Commentators in English usually r e f e r to brännvin as "spirits," "distilled spirits," or " p o t a t o spirits." Literally the word means "distilled wine." But regardless of the derivation or the meaning of the word, the product itself is well enough established to entitle it to be known by its own name. I t is to the Scandinavian people what vodka is to the Russians, or what "corn likker" was—and still is—to a considerable number of my own countrymen in various sections of the U n i t e d States. In appearance it is similar, and in flavor and potency it is superior to gin. In its various forms, it is the national drink of the Swedes. So common is this beverage that it has frequently been referred to as " o u r Swedish g r a p e " (vâr svenska druva), and a " d r i n k " (sup) usually means a glass of brännvin. T h e liquor problem in Sweden began with the introduction of brännvin. 3 P r i o r to this, people generally brewed various types of mead ( t n j ö d ) and utilized native products in the making of beverages. These concoctions were known as dricka, or drink, a term still used f o r beverages of this sort. 4 T h i s drink, if we may trust the skalds, had the virtue of cheering without inebriating. W i t h the development of foreign trade, a few of the upper class, who had cultivated a taste f o r it, imported wine. But the average peasant or workman could not afford such luxury and stuck to his home products. s

F o r a comprehensive treatment of the history of b r ä n n v i n in Sweden, see O U n , Eskil, Sveni ta brännvincts historia. A n excellent s u m m a r y is g i v e n in Tidskrift for Syitembolagen, M a y , 1930, under the title " N á g r a anteckninger ur brännvinets historia i v ä r t land." 4 T h e term dricka at present usually implies a mild malt drink. W h a t in A m e r i c a is known as "soft drinks" is r e f e r r e d to in S w e d i s h as drycka or läike drycka.

6

THE

ERA OF L A I S S E Z

FAIRE

W h e n spirits were first imported f r o m France, in the middle of the fifteenth century, the product was intended not f o r b e v e r a g e or medicinal, but f o r technical purposes. A l c o h o l w a s used in the manufacture of gunpowder. 5 T h i s use apparently w a s quite common during the latter half of the fifteenth and the first half of the sixteenth centuries and, in the light of present-day monopolistic methods of control, it is interesting to observe that the practice early developed of granting monopolies f o r the distribution of spirits f o r explosives. A s long as alcohol w a s employed principally f o r technical purposes, its possibilities as a beverage were known to a relatively small circle. T h i s state of affairs continued f o r over a century a f t e r the introduction of spirits into Sweden. But if the first, or industrial stage, did little to encourage the use o f alcohol as a beverage, the second, or medicinal, tended to advertise it widely. Brännvin began to be used as a remedy during the plague, which was quite severe, especially in Stockholm, during the latter half of the sixteenth century. T h e learned K i n g John I I I concocted a plague cure based mainly on brännvin, to which were added spices, herbs, and a dash of p o w d e r e d coral and pulverized ivory. T h i s formidable remedy w a s known as aqua vitae. Its curative value w a s supposed to lie in its power to produce perspiration and, if we may rely on contemporary accounts, it occupied the unique distinction a m o n g medicines of accomplishing w h a t it w a s supposed to do. A p p a r e n t l y its users were either cured or recovered in spite of it. A t any rate, during the plague of 1588, aqua vitae received wide use and w a s recognized as one of the most effective remedial agents. F r o m the medicinal to the beverage stage w a s but a short step. I f alcohol was a cure, it should also be a preventative. T h a t may not be g o o d medical practice today, but it sounded like g o o d logic to the sixteenth-century Swede, and the next In the m a k i n g o f black p o w d e r , the ingredients, n a m e l y , c h a r c o a l , s u l p h u r , and saltpeter, w e r e m i x e d together. Spirits w e r e a d d e d and the m a s s w a s k n e a d e d into a d o u g h w h i c h w a s then d r i e d and p u l v e r i z e d . 8

THE

ERA OF L A I S S E Z

FAIRE

7

thing he was taking a nip to preserve his health. However, the product was still an imported luxury and its use was probably not general. T h e liquor received its name during this early period, when it was literally brännvin or bränn win. T h e Swedes imported wine and distilled it, and the result was a f o r m of brandy or fruit spirits. T h e y had not yet learned the secret of distilling liquor f r o m grain. M a k i n g liquor f r o m grain was a practice which the Muscovite probably had received f r o m the Orient, and the Russian peasant was familiar with the process. D u r i n g the campaigns of John I I I and Gustavus Adolphus, the Swedish trooper was introduced to the mysteries of vodka. W i n e was probably hard to procure during this period of political disturbances and devastating religious wars. F r o m then on the Swedes began to make brännvin f r o m native products. A t first, grain distilling was mainly f o r the nobility and the wealthy. T h e poor peasants usually needed their grain f o r bread and had none to spare f o r liquor. But even they sometimes maintained a cooperative still which was kept in the parish church, whence it was loaned out f o r such ceremonial occasions as a wedding or a funeral, when a member of the parish wished to distill enough liquor for the feast. By the middle of the seventeenth century, brännvin had become a general article of commerce used for technical, medicinal, but principally f o r beverage, purposes. Distilling had developed into a "domestic use" or household industry (husbehovsindustri). Excise taxes were imposed by the crown and the product itself was taxed. But there was no government monopoly and anyone could operate a still to provide f o r his household needs. T h i s domestic-use distilling (husbehovsbräntiing) obviously tended to flood the country with brännvin. N o t only did the use of liquor become general, but excessive drinking became flagrant. By the end of the first q u a r t e r of the eighteenth century, brännvin had become a social menace and nothing short of a famine seemed adequate to abate the flood which poured f r o m the stills into the parched t h r o a t s of the people.

8

T H É ERA OF L A I S S E Z

FAIRE

Attempts were made to curb the output by establishing a government monopoly of distilling, but the eighteenth century was the " a g e of liberty" (frihetstiden)A prolonged period of absolute monarchy ended with Charles X I I and the people were impatient of governmental restraints. Under the strong hand of Gustavus I I I , the crown, during the decade f r o m 1 7 8 0 to 1 7 9 0 , succeeded in establishing a monopoly, and domesticuse distilling was forbidden. These measures conflicted with the spirit of the time. A second age of liberty was ushered in in 1 8 0 9 , and the emancipation f r o m absolutism was reflected in a repeal of the crown monopoly and a return to free and unlimited distilling. F r o m then on to 1 8 5 5 , when the policy of domestic-use distilling was finally abandoned, the floodgates were wide open and the country was deluged with brännvin. T h e eighteenth century was the age of freedom in more ways than one. It was the period of French rationalism—the era of the brilliant satire of Voltaire, the cynical materialism of D a v i d H u m e , the romantic naturalism of Rousseau. People sought emancipation f r o m social restraints, and institutions hallowed with age and respectability were subjected to satire and ridicule. In such an age, indulgence was not only tolerated, it was exalted. In the decade from 1 7 7 0 to 1 7 8 0 , Stockholm, together with its environs, had a population of some sixty thousand and there were about seven hundred concessions to coffeehouses, inns, and public houses to serve liquor in the city. A l l of the communes in the vicinity of Stockholm likewise were amply supplied with public houses. But this generous number of serving places evidently was inadequate, and the apothecaries also sold liquor, some even employing barmaids. 7 T h e coffeehouses and " p u b s " ( k r o g a r ) of Stockholm were centers of life during this period. H e r e the intellectuals gathered and discussed literature, philosophy, politics, and current •Frihetstiden really lasted from 1719 to 1772, when it was replaced by another period, from 1772 to 1809, during which the king governed as well as reigned, under Gustavus I I I and Gustavus IV. T An interesting discussion of the situation in Stockholm during this period is given in L—, " P â kaffehus och krogar under 1700-Talet," in Tidskrift for Syttembolagen, July, 1930.

THE

ERA OF L A I S S E Z

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9

events; here the aristocrats went slumming; here was drinking, love making, gambling, bragging, and rough-housing; here Karl Mikael Bellman sang his immortal songs glorifying the grape. This was the age of freedom and there were no restrictions with regard to hours of sale or quantities disposed of. The customer was limited only by economic resources and physical capacity. The practice of unrestricted production and sale continued during the first half of the nineteenth century. It was not confined to the cities. The village taverns and countryside inns were places where the thirsty peasants assembled and staged their serious drinking bouts, which frequently resulted in saloon quarrels (kroggräl) and violence. Excessive indulgence was common. On festive occasions it was the rule rather than the exception. A host was mortified if the guests did not succeed in becoming intoxicated at his table. The excesses of the period are attested to by the statistics of brännvin consumption during the first half of the last century. No less an authority than Einar Thulin, who enjoys a reputation for careful and painstaking research, has placed the per-capita consumption of brännvin during the decade between 1820 and 1 8 3 0 at forty liters per year. 8 That is almost a liter a week. But when one considers that this per-capita consumption is based on the whole population, the results are even more startling. In a country with a high birth rate, such as Sweden had during this period, less than half of the population would be adults and the proportion of males over twentyone years of age would not be more than a fourth. If my estimates in this respect are reasonably conservative, it would mean that every man could have a half gallon of liquor a week and still leave a liberal supply for the women and children. There may be more truth than poetry in the lines of Palmer, 8 T h u l i n , E., "Nykterhetstillstlndet i mitten av f o r r a â r h u n d r a d e t , " in Tidjkrift for Systembotagen, Feb., M a r c h , 1928. Bratt, I., et al., in Alkoholen och Samhället (Stockholm, 1 9 1 2 ) places the per-capita consumption of spirits of 50 percent alcoholic content f o r the y e a r 1830 at forty-six liters. A liter is a p p r o x i m a t e l y a quart. T o be more exact, it is a cubic decimeter, and equals 61.022 cubic inches, or 0.908 United States d r y quart, or 1.0567 United States liquid quarts.

IO

THE

E R A OF L A I S S E Z

FAIRE

describing conditions during the middle y e a r s of the century: Kung Oskar sitter pá Stockholms slott och nickar och nickar och nickar. Kring honom star hans forsupna folk och hickar och hickar och hickar.* Statistics of consumption alone are not a s a f e index of the social effects of alcohol. Some people do not drink at all, others indulge moderately, and still others indulge excessively. E v e n during the period of domestic-use distilling, there were many teetotalers and the m a j o r i t y of the people probably practiced moderation. T h e hugh per-capita consumption would indicate that the percentage of excessive drinkers was unduly high and that the extent of their excesses apparently w a s boundless. U n d e r such conditions, it is not surprising that serious social maladjustments accompanied the use of liquor. F o r t u n a t e l y , w e do not h a v e to rely on the accounts of superficial observers f o r a description of social conditions as they w e r e affected by excessive drink at the middle of the last century. A document, issued in 1 8 5 3 , contains reports f r o m the practicing physicians throughout the k i n g d o m f o r the y e a r 1 8 5 1 . 1 0 H e r e we have statements of fact f r o m a group of men with scientific backgrounds and with a sympathetic understanding of the people in their communities such as only the general practitioner can have. H e r e at last is one instance where the doctors agreed. W h i l e there w a s variation in the emphasis placed on different phases of the problem, there was general agreement that the misuse of intoxicants w a s the principal cause of human misery. Brännvin during this time w a s closely associated with the l i f e of the people and there is much of human interest in these reports. One even finds traces of s

King Oscar sits in the Stockholm palace and nods and nods and nods. Around him stand his drunken subjects and hie and hie and hie. 10 Sundhrts-Collegti Underdàniga Berättelie om Medieinalverket i Riket. T h e contents of this report, in so f a r as they concern the effects of intoxicating liquor, have been summarized by Einar Thulin. See Tidikrift for Systembolagen, Feb., March, 1928.

THE

ERA OF L A I S S E Z

FAIRE

II

humor. But, taken together, these accounts f r o m the doctors in all parts of the country give us a tragic picture of blasted hopes, despair, p o v e r t y , crime, disease, and death. A m o n g the working classes, drink augmented misery, and misery led to drink. T h e vicious circle w a s complete. Such w a s the situation with reference to the liquor problem in Sweden at the middle of the last century. T h e decade of the fifties was a turning point. I t marked the end of a fourcentury history of spirits in the country and signalized the introduction of an era of social control. Brännvin h a d been introduced f o r technical purposes during the fifteenth century; it had received widespread use as a medicine during the sixteenth; it h a d become a domestic industry during the seventeenth ; and during the eighteenth and nineteenth centuries its general use and frequent misuse as a b e v e r a g e had m a d e it a m a j o r social problem. R e f o r m w a s in the air during the fifties. Serious-minded people were g i v i n g thought to the liquor problem. T h e temperance forces w e r e g r o w i n g in numbers and strength. A t the v e r y time when the doctors of the kingdom w e r e penning the reports which we have noted, the statesmen of the realm were puzzling their heads over a more effective method of political control, with the result that the parliament ( R i k s d a g ) of 1853—54 enacted the first general measure regulating liquor traffic in Sweden. 1 1 B u t perhaps of even g r e a t e r importance than this national legislation were the experiments started during this decade by public-spirited persons who, without any legislative sanction, sought to regulate the liquor traffic in their respective communities in the interests of public w e l f a r e . T h e s e two complementary forces, national legislation and local initiative, h a v e been the dominating f a c t o r s in the development of the Swedish method of liquor control. 11

This statute went into effect Jan. 18, 185$, and is generally known as the 1855 brännvinsförsälningsförordningen, or the law of 185s regulating the sale of brännvin. Subsequent legislation is largely a modification and extension of the provisions of this basic law.

II FROM

THE GOTHENBURG BRATT SYSTEM

TO

THE

T H E history of Swedish liquor control since 1 8 5 0 does not admit of a chronological treatment and is difficult to outline. H o w e v e r , in a general w a y , it can be said that the development h a s tended to pass through three successive stages : first, an individual o r communal extralegal d e v e l o p m e n t ; secondly, l e g a l i z a t i o n ; and, finally, increasing public control. T h i s has been a characteristic sequence, not only of liquor control in general, but of the different local systems established. Governmental indorsement and control h a v e f o l l o w e d a f t e r the method has been subjected to the test of trial and e r r o r under p r i v a t e o r local initiative. T h i s has f u r n i s h e d an opportunity f o r experimentation and has resulted in a minimum of lost motion. I f the method of control d i s p l a y e d weakness, as it necessarily must, it has not been discarded and replaced by something new and different, but an attempt has been made to retain w h a t w a s w o r k a b l e and to remedy the deficiency. T h e tree on which the present system has been g r a f t e d was planted in the y e a r 1 8 5 0 in the city of F a l u n , located in D a l c a r l i a . In this city, as in other places, the problem was serious. T h e liquor business was handled by individuals interested in p r i v a t e profits and too frequently lacking a sense of social responsibility. T o remedy this situation a company of public-spirited citizens w a s o r g a n i z e d to take over the rights of o p e r a t i n g public houses in the community. T h e first p a r t of the by-laws of the association reflects the purpose of this company and is a statement of the principles which have g o v e r n e d such associations up to the present t i m e : The morals and welfare of the working classes in our community have their worst enemy in the saloon [krog]. 1 It is not only the in1

T h e Swedish krog w a s not the same as the A m e r i c a n saloon, but corresponded

GOTHENBURG

TO BRATT

SYSTEM

13

toxicating liquor or the intemperate use thereof which brings about immorality, wretchedness, and poverty ; but associated with it are the disorders, bad examples, and temptations of every sort which are usually present in saloons and public inns. Little can be accomplished, in this connection, by the enactment of ordinances to be enforced by the police and public officials so long as the right to operate saloons in the city is given to private individuals who personally would profit by encouraging an immoderate use of liquor without respect to regulations governing age or youth, poverty or plenty. Consequently, in accordance with the expressed permission of the governor, which has been granted with the consent of the magistrates and council of the city, a company has been organized which, without any considerations for its own advantage or profits, will take over the right to operate saloons in Falun. T h i s right is assumed by the company with a view to operating a limited number of public houses under managers who are employed and paid by the company. In these places a close scrutiny will be exercised in order that intemperate drinking may be checked instead of encouraged ; that brännvin will never be dispensed on credit or account or to minors or persons already intoxicated ; that the statutes and ordinances will be observed; and that cleanliness and order will be striven for to the highest degree possible. A f t e r all operating costs, debts, and charges have been paid, the company will t u r n over its net profits for some useful purpose connected with the welfare of the city. T h i s is the aim of the company. 2 In 1 8 5 2 , a similar company was functioning in Jönköping. Other cities soon adopted this method of control. In 1 8 6 5 , it was adopted in Gothenburg where its operations were perfected, and this city has given its name to the system. It has become known all over the world as the Gothenburg System, and in Sweden it is likewise designated by that name ( G ö t e b o r g Systemet). T h e theory of the Gothenburg System is simple and is expressed in the statement of the original Falun company quoted above. T h e

purpose was philanthropic. Public-spirited

citi-

zens organized to take over and exercise the rights of operating public houses in their city. T h e idea was to conduct these rather to the English public house or "pub." T h e word "saloon," however, has more significance to the American. 2 T r a n s l a t e d f r o m the original Swedish text quoted in J. Bergvall's Restriktiomsystemet, hur det kommit till, hur det arbetar, vad det uträttat (Stockholm,

»92«), p. 9.

14

GOTHENBURG

TO B R A T T

SYSTEM

drinking places in the interests of temperance. T h e personalprofit motive w a s eliminated as much as possible. T h e income of the directors and shareholders in the company, or of the management and help, in the places of business w a s in no w a y influenced by the amount of sales. T h e management and help w o r k e d on a fixed salary, regardless of the turnover. T h e shareholders in the company or, as it became known, the "syst e m , " received a fixed dividend on their actually invested capital. A l l surplus profits were turned o v e r to the public. T h e r e w a s thus established w h a t in E n g l a n d has aptly been termed "disinterested m a n a g e m e n t . " Personally disinterested management in the interests of public w e l f a r e w a s the central idea of the G o t h e n b u r g System, and is still the dominating principle of Swedish liquor control. T h e legal authorization of the system idea came gradually. T h e s e benevolent companies w e r e recognized in the brännvin traffic act of 1 8 5 5 and in subsequent enactments, but it is questionable if the legislator fully understood the purpose of the plan even a f t e r it h a d been in operation f o r y e a r s . It w a s not until 1 8 9 5 , o r forty-five y e a r s a f t e r the organization of the first F a l u n company, that the dominating idea of the G o t h e n b u r g System was first written into the law of the land. A statute of that y e a r declared the purpose of the company to be " t h e guardianship of the retail and b a r t r a d e of brännvin within the city in the interest of m o r a l i t y . " I t also fixed the earnings of the shareholders in these companies at 5 percent on the capital actually invested by them in the enterprise, and f o r b a d e any agreements between the association and individual directors, or any understanding by which any individual income w o u l d depend upon the turnover in brännvin or wine. L a t e r enactments, up to the time of the establishment of the present system, w e r e mainly enlargements and clarifications of the 1 8 9 5 statute. But if statutory recognition w a s slow in forthcoming, the allocation of the profits of the local companies naturally pressed f o r a solution and received the attention of the Riksd a g . A t first, the profits of the systems went to some enter-

GOTHENBURG

TO B R A T T S Y S T E M

1$

prise designated by the local municipal authorities. T h i s w a s u n f a i r , because the liquor t r a d e centered in the cities, and, while the outlying communities would contribute to the profits of the systems, the cities would reap all the benefits. L e g i s l a tion w a s needed to determine the distribution of profits, and in 1 8 7 3 , by virtue of national regulation, these surplus earnings were divided among ( 1 ) the cities or communes; ( 2 ) the county councils; and ( 3 ) the agricultural association (hushàllningssâllskap)

.*

T h e regulation of 1 8 7 3 w a s an attempt at an equitable distribution of the profits among community, county, and agricultural interests. But l a t e r it w a s found that local officials were not proper guardians of temperance. T h e theory of the system was that the w e l f a r e of a community would be served best when it received the smallest amount of profits possible f r o m the sale of intoxicants. B u t local authorities, h a r d pressed f o r revenues, might v i e w a g r o w i n g liquor f u n d with a sense of relief. Such temptation had to be r e m o v e d , and finally in 1 9 1 3 the R i k s d a g p r o v i d e d that the surplus profits f r o m the system companies should accrue to the state, and that the local institutions which h a d shared in the profits should be returned a fixed amount. T h u s the local communities would have no interest in stimulating sales. H o w e v e r , the national legislator w a s not satisfied merely to remove temptation f r o m the path of the local official, but in the 1 9 1 3 act he sought to put it out of his own reach. Only a portion of the profits of the system companies w a s to g o into the general budget, and the rest should g o into a special f u n d to be used only f o r certain purposes. 4 s

A literal translation of /lushällningssällskap would be "domestic" or "household association." H o w e v e r , their purpose is primarily the promotion of agricultural interests. T h e s e associations go back to the latter part of the eighteenth century, the first one being organized in Gottland in J 7 9 1 . T h e r e is now one of these associations in each of the t w e n t y - f o u r counties ( l a n ) , and two of the counties are divided into two agricultural associations each, making a total of twenty-six of these organizations in the kingdom. T h e membership in the associations is voluntary. For a descritpion of these associations, see G . A . Aldén's Medborgarens Bok II, Svenik Kommunalkunskap, (19th ed., Stockholm, 1925), chap. vi. 4 For a statement of this f u n d , see infra, p. 189, n.

l6

GOTHENBURG

TO B R A T T

SYSTEM

The spread of the Gothenburg System throughout the kingdom occurred under local initiative and without any compulsion on the part of the national government. It was more than a half century after the organization of the first company that the system was made compulsory, and by that time it had been generally adopted in the absence of any legislative regulation. The system was made obligatory for cities in 1905 by parliamentary enactment. By the provisions of this act, the system was also made compulsory for the rural districts if a retail trade (utminutering) as well as a service trade (utskänkning) existed in the commune, or if a retail trade alone was found there. If it had only a service trade, the rural commune could use either the system or the older form of giving out the liquor rights to the highest bidder. The latter method, however, was no longer common, and the liquor trade, both retail and service, except for the special privileges enjoyed by rural public inns, had become centered in the cities. Consequently, it can be said that by 1905 the Gothenburg System had become the established method of liquor control. While the adoption of the plan became general and its legal authorization followed as a matter of course, the local system usually did not enjoy a monopoly. Its activities were limited principally to the service trade, and here its effectiveness was impaired by the existence of the "privileged" rights exercised by inns and resorts in the country, and by clubs and even individuals in the cities. The difficulties were aggravated by the confusion resulting from the lack of a clear distinction among the wholesale, retail, and service trades. Obviously, a local system which merely operated the public houses in a city would be restricted in its attempt to advance the cause of temperance if the immoderate drinker could buy his supply at retail by the bottle, or at wholesale, or if he could go to the village inn and purchase a can of brännvin. As a result of these difficulties, there has developed a peculiar distinction among the various phases of the traffic. The Swedes have differentiated between the wholesale trade (partihandel) and the retail trade (detaljhandel). A distinction

GOTHENBURG

TO B R A T T S Y S T E M

17

has also been made in the retail trade between purchases by the package or bottle when the commodity is not intended f o r consumption on the premises where the sale is made, and the service trade where the liquor is consumed on the premises. T h e f o r m e r is known as minuthandel or, more commonly, as ut minutering; the latter, as utskänkning. Distinct regulations h a v e developed which govern these two phases of the retail trade. T h e s e distinctions developed slowly. In the brännvin sale act of 1 8 5 5 , an attempt was made to separate the wholesale f r o m the retail trade. T h e distinction w a s based entirely on the amount sold. T h e wholesaler could not sell less than 1 5 cans ( k a n n a r ) , or approximately 1 0 gallons at a time. T h e retailer could not sell less than a half can, or approximately 2^2 pints at a time. T h i s classification w a s unsatisfactory. T h e wholesaler could sell directly to the customer, provided he sold in more than fifteen-can lots; while the retailer, not restricted by maximum amounts, could engage in the wholesale trade if not in the service trade. H o w e v e r , when the law w a s changed in 1 8 8 5 , the same criteria were used, the modification being merely a change in the quantity sold. U n d e r the new law, the wholesaler was restricted by a 250-liter minimum and the retailer by a one-liter minimum. U p to 1 9 0 5 , a person privileged to serve liquor was not restrained by statute f r o m selling it in quantities, to be taken out and consumed off the premises. T h i s practice, frequently engaged in by the holders of privileged rights, undermined the efforts of the system companies to regulate sales in the interests of temperance. T h e law of 1 9 0 5 differentiated between the retail trade and the service trade, and provided that ( 1 ) liquor sold at a public bar is solely f o r consumption on the premises and cannot be taken a w a y ; and ( 2 ) liquor sold at retail may not be consumed on the premises where it is sold. A clear distinction w a s thus made between the retail and the service trades. T h e privileged rights, however, continued up to the enactment of the present liquor law in 1 9 1 7 when the last of these annoyances was finally eliminated.

l8

G O T H E N B U R G TO B R A T T

SYSTEM

A functional differentiation between the wholesale and retail trades was even slower in forthcoming. Such a distinction was finally made in 1 9 1 4 , when it w a s necessary to stop the leaks in the then nascent B r a t t System in Stockholm. T h e 1 9 1 4 act adopted a new basis f o r the classification. T h e distinction w a s not based on the size of the sales, but on the buyer's disposition of the commodity. W h o l e s a l e w a s m a d e to mean a sale to a party to be resold. R e t a i l w a s defined as a sale directly to a customer, when the commodity w a s carried a w a y to be consumed off the premises. W i t h these distinctions there has developed a unity of purpose among the agencies handling the wholesale, retail, and service trades, and one of these avenues will not serve as a means of escape f r o m the restrictions imposed by another. W i t h the spread of the Gothenburg System and with the statutory recognition of the system companies as public service corporations, there developed an increasing degree of public control. T h e earlier measures providing f o r public regulation were probably inspired by the f a c t that local public corporations, such as the county, city, and agricultural association, had an interest in the profits. T h e control vested in these local corporations, however, was neither regulatory nor supervisory, but was limited to investigating the business of the system and examining its books. T h e actual administration of its affairs was l e f t to the company, to be handled by its own board of directors. T h i s situation continued up to the beginning of the present century. T h e first step in the direction of having public representatives actually participate in the management of the company's business was taken in 1 9 0 2 . A n act of that y e a r fixed the number on the board of directors at five, and provided that two of the members should be chosen by the public. One of these public representatives should be selected by the local county council and one by the local agricultural association. In the brännvin sales act of 1 9 0 5 , another step w a s taken. T h i s law authorized members of the county b o a r d to attend meetings of the b o a r d of directors and to participate in the

GOTHENBURG

TO B R A T T S Y S T E M

19

discussions, but not in the voting. Finally, in 1 9 1 3 , the public representatives on the board of directors were given a majority whereby they could actually control the administration of the company. T h e act of that year provided that of the five directors, three were to be chosen by the public. Of these three, one should be appointed respectively by the county board, the county council, and the city council or communal assembly (kommunalstämma). s T h e extent of public control, however, cannot be measured by the plan of inspection, auditing, or actual participation by public officials in the management of the business of the companies. T h e very nature of the Gothenburg System was such as to give a dominating position to the local governments. When a company applied for a license to retail or to serve intoxicating beverages in a city, the local authorities could refuse to grant the petition, or they might grant it conditionally. This was true for the boroughs and rural communes, as well as f o r the cities. This local option, or, as it has been termed, local veto (locali veto), received definite statutory authorization in the general act of 1 8 5 5 . T h e granting of rights to privileged institutions such as inns, resorts, and common carriers, remained in the hands of the state and was legally beyond the control of the communes. But even these institutions would naturally be influenced by a local public opinion. As time went on, the local veto was given a more popular expression. In 1877, it was provided that the communal selectmen (kommunalnämnden) could not let out rights to sell liquor if the communal assembly decided otherwise. This regulation provided a sort of popular referendum on the sale of intoxicants in rural areas. Likewise in the cities, the option of letting out ordinary liquor rights was subjected to a more popular control. A regulation of 1895 provided that these grants could not be made by administrative or judicial officials, but required 5 It is hardly accurate to refer to the kommunalstämma as the communal assembly. This body is really a form of primary assembly similar to the New England town meeting. It exists only in the rural communes.

20

G O T H E N B U R G TO BRATT

SYSTEM

the action of the city council or a general p r i m a r y assembly

(a liman

rádstuga).β

Counting the 40 odd boroughs, Sweden has approximately 2 , 4 0 0 rural communes, and it is significant that of this number, more than 2 , 2 0 0 exercised the local veto against the sale of intoxicants. T h e cities, on the other hand, generally remained at least moderately moist in sentiment. T h e local veto w a s what the name implied. It was local. It did not extend beyond the city o r the rural commune. T h e r e w a s no opportunity to s p r e a d it over a wider area, as w a s done in the U n i t e d States under county option and state-wide prohibition, and thus bring a wet city into a dry region. T h e communes, city and rural, were, and still are, the vital units of local government in Sweden. M u c h has been written f o r and against the G o t h e n b u r g System. Its guiding principle was the control of the liquor t r a d e in the interests of temperance and public w e l f a r e . I t is impossible to evaluate accurately its effectiveness in fulfilling this purpose. T e s t e d by the increasing number of arrests f o r drunkenness, the record looks bad. J u d g e d by the slightly decreasing per-capita consumption of spirits, the score looks a little more promising. But such tests are not adequate criteria. T o o many other factors enter in. D u r i n g the period of the Gothenburg plan, a number of influences undoubtedly contributed toward temperance. T h e cessation of domestic-use distilling in 1 8 5 5 , and the establishment of a state monopoly with its attendant rigid license requirements and excises, checked the flow of brännvin and discouraged its promiscuous consumption. T h e period of economic depression and f o o d shortage during the later sixties w a s a f a c t o r . T h e middle of the last century m a r k e d the • T h e institution of allmän ràdstuga in the citici corresponds to the communal assembly, or kommunalstämma, in the rural communes. It is a g e n e r a l p r i m a r y assembly in which all the voters may participate, and possesses g o v e r n i n g power, if the city does not h a v e a council. W h e r e the city has a council, the p o w e r of the ràdstuga is limited to a selection of councilmen. A t present there are only one or two Swedish cities without a council ; consequently the ràdstuga is practically obsolete as a governing agency.

GOTHENBURG

TO BRATT S Y S T E M

21

beginning of a period of moral and intellectual awakening, in which there was a quickening of the popular conscience along moral, religious, economic, and cultural lines. T h e Swedes were breaking their isolation; they were becoming m o r e cosmopolitan ; they displayed a cultural advance, and a g r e a t e r catholicity of interests; they reached a higher cultural level; and brännvin ceased to occupy the position of importance in their lives which it formerly had. And last, but not least, along with this moral awakening came an organized agitation f o r temperance and abstinence, which was instrumental in bringing the liquor problem to the fore and in discouraging excessive consumption. But while other factors were at play effecting a more temp e r a t e use of alcohol, it would be unfair to leave the impression that nothing was accomplished by the Gothenburg System. T h e system companies, concentrating principally on the service trade, did commendable work. T h e old, disorderly public houses were converted into neat and inviting cafés where wholesome and palatable food was served to working people at prices which they could afford to pay. Such an accomplishment in the life of any people is not to be despised. But, u n f o r t u nately, the liquor problem cannot be solved by attacking it f r o m any one angle. It must be treated as a whole. D a m up the stream in one direction, and you merely divert the flow into other channels. Denied satisfaction in a r e f o r m e d bar service, the immoderate drinker sought the retail trade. T o paraphrase a remark of Doctor Bratt, the liter took the place of the saloon ( k r o g ) . T h e old k r o g was a thing of the past, but the roadside and the home had been turned into drinking places. T h e cardinal weakness of the system companies, under the Gothenburg System, was the lack of a monopoly. T h e y not only lacked it, but they often failed to utilize effectively the monopoly which they possessed. T o o many gates were left open to unregulated sale. T h e companies frequently were limited to a control of brännvin in its various forms, while wines and imported liquors were handled by agencies outside

22

GOTHENBURG

TO B R A T T

SYSTEM

of their jurisdiction. A s a rule, they did not concern themselves with the wine and beer trade at all. C o m p a n y restaurants were run in the interests of public w e l f a r e , without an eye f o r individual gain, and usually w e r e well managed. B u t rights to serve liquor were also let out to privately owned and operated restaurants, and the retail trade w a s frequently turned over to private individuals w h o w e r e interested in their balance sheets rather than in the w e l f a r e of the community. T o o frequently the rights exercised by the private restaurant owner or retailer were enjoyed by virtue of a concession f r o m the local authorities, and the company had no voice in the matter. U n d e r such conditions, it was impossible to conduct the liquor trade in the interests of public w e l f a r e . D e n i e d satisfaction in the system café, the customer could g o to the inn, the private restaurant, the retailer, or the wholesaler. T h e results were anything but desirable, and, in attempting to portray them, I can do no better than to offer a p a r a p h r a s e f r o m Alkoholen och Samhället7: "Irresponsible youths headed f o r destruction, drunkards with a record o f innumerable convictions every year, notorious cases of delirium tremens, masses o f alcoholics, men with toil-worn w i v e s and undernourished children, individuals w h o bear all the marks of alcohol and inebriety, all receive without any control w h a t e v e r those w a r e s by the liter which have made them w h a t they are or prevented them f r o m rising to the dignity of human beings." T o many the problem seemed simple. I f only the liquor traffic were eliminated, its attendant evils w o u l d disappear. Prohibition offered such a remedy. D u r i n g the nineties and the first decade of the present century, prohibitionists had been g r o w i n g in power and the trend w a s decidedly in the direction of national prohibition. Prohibition had been tried as a temp o r a r y expedient during the labor difficulties and the general strike of 1909. It takes time f o r an illicit trade t o become organized, and prohibition seems to w o r k best when it is first 7

Page 157. See infra, p. 25.

GOTHENBURG

TO B R A T T

SYSTEM

23

introduced. T h e temporary experiment in 1909 was very successful, and the time appeared ripe f o r a concentrated drive to make it a permanent policy. A house-to-house canvass was made of nearly 2,000,000 men and women over eighteen years of age. T h e results were startling. M o r e than 1,800,000 votes were recorded in f a v o r of prohibition, while less than 20,000 were against it. T h i s , of course, was not an official election. It was sponsored by private individuals interested in prohibition, and it appealed to prohibitionists and temperance people more than to the general public. T h e forces of prohibition and temperance were organized in every town and parish and could be polled more readily. But the one-sidedness of the vote should discount these factors. T h e r e was an organized popular demand f o r national prohibition, and leaders in the Riksdag considered it " a s irresistible as f a t e . " But it was the fate of prohibition to encounter resistance. It would have been a violation of tradition f o r an unrelenting majority of prohibitionists to bring pressure politics into play and force the rest of the population into a national sumptuary system. T h e prohibitionists believed in their program as the ultimate solution and were hopeful, but it would not do to impose it suddenly by fiat of law. T h e question must be studied; time must be allowed f o r public discussion; prohibition would come when an overwhelming public opinion made it imperative. Prohibition became a live question, discussed in churches, schools, clubs, and at the huskings. T h e division on the issue was typical. On the one hand, there was a vast number of organized prohibitionists—probably constituting a majority — w h o ardently f a v o r e d national prohibition as the only method of dealing with the liquor problem. On the other hand, there was a large group impatient of any additional restraints upon their personal liberties. Between, there was a small and consecrated band pragmatically seeking a solution of the liquor problem by an application of the golden mean. This group was led by a brilliant young Stockholm physician,

24

GOTHENBURG

TO BRATT

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Doctor Ivan Bratt, who was destined to devote twenty years of tireless effort to the establishment of the present system of control. Doctor Bratt raised his banner between the two rival camps of the prohibitionists and the personal-liberties group. When national prohibition seemed inevitable, in 1909, he released two brochures in which he challenged the advisability of this reform. 8 Both of these were widely read and discussed, and he kept the pot of popular discussion simmering with a series of newspaper articles which appeared in Dagens Nyheter from 1909 to 1 9 1 2 . H e was attacked from both sides, but more and more thinking people were joining forces with him. In his discussion of the problem, Doctor Bratt displayed a lack of fanaticism either for the cause of prohibition or for personal freedom. His medical practice in Stockholm had brought him into intimate contact with the drink problem; he had methodically made case studies of alcoholic patients and had no delusions about the antisocial effects of a misuse of intoxicants. H e had no quarrel with the prohibitionists over the soundness of temperance or abstinence as rules of conduct, but he challenged the wisdom of prohibition as a means of attaining the goal. He opposed prohibition principally on three grounds. In the first place, he contended, it would be impossible to enforce it as long as respectable and otherwise law-abiding people could see nothing inherently wrong in taking a drink, and would consider their indulgence merely malum prohibitum and not malum per se. In the second place, prohibition would be ineffective because of the ease with which the potatoes, grain, and native berries of Sweden could be turned into intoxicating beverages. In the third place—and this was his strongest objection—the opportunity for enormous profits would tempt people to engage in an illicit trade which would result in an extensive uncontrolled traffic in liquor. Before entering the public forum, Doctor Bratt in a professional capacity had stressed the importance of the alcohol 8

Kan nykterhetsfrâgan losas utan tolalforbudf Ett rtformprogram 1909). Nykterhetspolitiika utvecklingslinjer (Stockholm, 1909).

(Stockholm,

GOTHENBURG

TO B R A T T S Y S T E M

2$

problem before the Swedish Medical Association. In 1908, this association decided to appoint a committee of medical men to make a complete survey of the problem and, if possible, to formulate a program. A small subsidy was granted by the government for the completion of the study. On the committee, besides Doctor Bratt, were four other physicians.' They tackled the problem of alcohol in its various forms, presented case studies, considered the institution of local option and the proposal of national prohibition, and suggested a set of principles for an effective program of liquor control. T h e findings and recommendations were published under the title Alkoholen och Samhället (Alcohol and Society). 1 0 According to this committee, the following principles should govern legislation in the interests of temperance: T h e individual must be held accountable if he uses alcohol in such a manner as to endanger or inconvenience others. Society assumes a responsibility to protect itself and its members against the misuse of intoxicants. But the restraints imposed by society should be aimed at harmful indulgence, and the responsible individual who uses alcohol in such a way as not to interfere with the rights of others should not be unnecessarily restricted. Finally, any system of control which increases the difficulty of securing liquor, must be planned and conducted so as not to furnish a moral justification or an economic inducement to engage in an illegal traffic. T o realize a legislative policy in conformity with these principles, the committee found that it would be necessary to launch out on certain distinct lines of departure from the existing methods of liquor control. In the first place, the private-profit motive must be eliminated on all points where it might lead toward socially undesirable ends. In the second place, the regulations governing the retail trade in intoxicants must be changed. T o translate the words of the report, " 1 ) "Doctors Algot K e y - A b e r g , K n u t K j e l l b e r g , Henrik G a h n , and A l f r e d Petrén T h i s w o r k w a s published by the N o r d i s k a Bokhandeln, Stockholm, in 1 9 1 2 . It constitutes a volume of some f o u r hundred pages. Unfortunately, it has never been translated into English. It contains a wealth of data and opinion which even at this late date is extremely valuable. 10

26

GOTHENBURG

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one must know to whom, when, and how much brännvin is sold, and 2 ) it must be sold under the personal responsibility of the buyer." Finally, special local agencies must be established to promote temperance and to look after those who are irresponsible in their use of intoxicants, and a national agency must be organized to coordinate the local agencies in matters of national concern. These principles and program have become the ideational basis on which the Bratt plan of liquor control is founded. They did not first see the light in this committee report, but were essentially Doctor Bratt's ideas and had already been reiterated by him in his earlier writings. 11 H e continued to champion these principles until he succeeded in establishing a system of control based thereon and sanctioned by law. In 1 9 1 1 , the Staaf ministry appointed a parliamentary committee to make a thorough study of the liquor problem and to submit a plan of control. Doctor Bratt was made a member, and the proposals which the committee finally submitted to the Riksdag in 1 9 1 4 were an embodiment of the views which had found expression in his earlier writings and in Alkoholen och Samhället. These proposals became the basis of the general liquor law enacted in 1 9 1 7 , to become operative in 1 9 1 9 . This law, with its subsequent amendments, is the legal basis of the present method of liquor control usually referred to in America as the " B r a t t System." 12 But paradoxical as it may seem to one accustomed to American practices, the Bratt System did not have its origin in legislative enactments. On the contrary, the law rather had its inception in the Bratt System. T h e energetic doctor was not permitting any grass to grow under his feet. Statutory authorization was unnecessary, and while the lawmakers of the realm were deliberating over his proposals, he was busily 11

Notably in Nyktirhetspolitiska utveckiingtlinjer. T h e act of 1917 is known in Sweden as the Rusdrycksföriäljningsförordningen, or act governing the sale of intoxicants. For obvious reasons, it is cited and referred to as " R f f . " With reference to the Bratt System, it holds a position somewhat similar to that occupied by the Eighteenth Amendment and the Volstead Act with reference to national prohibition in the United States. 12

GOTHENBURG

TO B R A T T S Y S T E M

27

engaged in developing a system in accordance with his ideas of liquor control. A member of the city council of Stockholm, D o c t o r B r a t t had been designated as its auditor of the system company operating in the metropolis under the G o t h e n b u r g plan. A c t i n g in this capacity, he insisted that, in o r d e r to comply with the legal requirements and to administer the liquor t r a d e in the interests of temperance and public w e l f a r e , it would be necessary f o r the company to establish a system of individual checks, in o r d e r that it might know to whom it sold liquor and in what quantities. N o t finding the company tractable to his views, in 1 9 1 3 he o r g a n i z e d a company of his own which he named the " S t o c k h o l m S y s t e m " as distinguished f r o m the Gothenburg System, and petitioned the city council to g r a n t the liquor rights to this new organization. T h e council complied, the charter of the old company w a s not renewed, and the Stockholm System w a s granted the rights t o the liquor trade in the city, beginning with the new y e a r in 1 9 1 4 . D o c t o r B r a t t g a v e up his medical practice and assumed the management of the new company. H e r e w a s his opportunity and he w a s not slow in putting his ideas into practice. In February, the convivial Stockholmer w a s i n f o r m e d that he could not procure liquor at retail without a " p a s s b o o k " ( m o t bok) and that his purchases would be limited to twelve liters every three months. 1 3 A storm of protest resulted, but the doughty doctor stood by his guns and had the support of his board of directors. A f o r m of "individual c o n t r o l " had been introduced. 1 4 But a number of loopholes w e r e still open to the customer who did not choose to c o n f o r m . H e could g o to the restaurants, to a neighboring city, to the wholesaler, or he could im13

On July ι , this amount was raised to sixteen liters. The requirement of certification (anmälningsbevis) to buy at retail had been imposed in Gothenburg by Ernst Andrée, manager of the local system company, as early as 1912. The purchaser was required to have his name on the registered list of persons entitled to buy at retail. In the event that he abused his privilege, he might be limited in the quantity which he could purchase or his name might he »truck from the list of authorized purchasers. 14

28

GOTHENBURG

TO B R A T T

SYSTEM

port his wares. One by one, these avenues of escape were closed, either by the system company itself or by action of a sympathetic Riksdag. In August, 1 9 1 4 , the system imposed the "meal requirement" (mältidstväng) in Stockholm restaurants. In the same year, as we have already noted, by action of the Riksdag, the wholesale trade was closed to the consumer. Likewise, he was prevented from going to other cities for his supplies by a system of control areas established around those places which had adopted the method of individual allotments. By the beginning of 1 9 1 6 , great progress had been made in perfecting the individual permit system. This method had been made obligatory for all system companies; provisions had been made for limiting the operation of the companies to definite districts; and the individual consumer could import intoxicants only through the agency of a system company, in which event it would be charged against his allotment. 15 In the program contained in Alkoholen och Samhället, suggestions had been made for local agencies to promote the cause of temperance in the communes, and for a national agency to coordinate the various local units of control. These instrumentalities had also been realized by 1 9 1 6 . In 1 9 1 3 , the Riksdag had passed the act, to become effective on January ι , 1 9 1 6 , legalizing the office of supervisors of temperance and defining their powers. These officials were authorized to promote the cause of temperance in their respective communes. A central coordinating agency had been furnished by the act of June 3, 1 9 1 5 , expanding the authority of the Royal Board of Control so that it would have general supervisory powers over the local system companies. T h e general act of 1 9 1 7 governing the sale of intoxicants, dealt only with the retail and service trades. T h e wholesale trade was legally still left to the exploitation of private individuals. But here again the matter was disposed of by agencies 15

T h e legislative enactments providing f o r these restrictions had been passed in 1 9 1 5 , to become operative on the first of J a n u a r y , 1 9 1 6 .

GOTHENBURG

TO B R A T T S Y S T E M

29

outside of the state. In 1 9 1 7 , under the inspiration of Doctor Bratt, a corporation {Vin- & Spritcentralen) was organized, as an offshoot of the Stockholm system, to assume control of the wholesale trade. One wholesale business after another was acquired by Vin- & Spritcentralen, and when the general act regulating the sale of intoxicants went into effect, this corporation enjoyed a virtual monopoly of the wholesale trade. It was not until 1 9 2 3 , however, that the general law of 1 9 1 7 was amended so as to include the wholesale trade. T h e problem of the wholesale trade, like that of the retail trade, had been solved by public-spirited, individual initiative before the state was led to take a hand in the matter; and, like the act of 1 9 1 7 , the amendment of 1 9 2 3 merely legalized a system already in practice. During its formative period, the Bratt System was operating under abnormal conditions. T h e W a r was raising havoc with international trade, and the Swedes were facing the problem of a food shortage. During the period from 1 9 1 7 to 1920, known as the crisis years, drastic restrictions were imposed upon the individual allotments of intoxicants. 18 The crisis had been weathered by 1920, and on January 1 of that year the retail maximum was fixed at four liters a month, which was the limit provided for in the general act of 1 9 1 7 . If we must have a date f o r the beginning of the present system of control on a national scale, the first of January, 1920, will serve as well as any. B y that time, the distributing agencies had been perfected, the administrative machinery had been set up, the necessary statutory provisions had become effective, and from that time the system has operated under normal conditions without interruption. But starting points 18

On A p r i l 24, 1 9 1 7 , a t e m p o r a r y prohibition w a s established throughout the kingdom. T h i s w a s lifted on J u n e 1 of the same y e a r , and the m a x i m u m retail allotment w a s fixed at two liters e v e r y three months. A s the crisis became less severe, the ration of liquor became more liberal. In M a y , 1 9 1 9 , the retail m a x i m u m w a s fixed at six liters e v e r y three months, but the ingenious condition w a s attached that on the last thee liters purchased during this quarterly period a g r a d u a t e d excise tax would be imposed, amounting respectively to five, ten and twenty kronor per liter.

30

GOTHENBURG

TO BRATT

SYSTEM

and stopping points are not easy to find. T h e process has been one of constant adjustment to fit the exigencies of the time. This adjustment is still continuing. I have heard Americans, and even Swedes who should know better, speak glibly about the scrapping of the Gothenburg System and the establishment of the Bratt System. Instead of being replaced, the Gothenburg System has been carried over and enlarged upon. The central feature of the Gothenburg System, namely, the system company, has been retained in its purpose and with practically no changes in its organization. 17 T h e sphere of operation of these companies, however, has been expanded, and they now enjoy a monopoly, within their respective jurisdictions, of the retail and service trades, not only of brännvin, but of wine and spirits of all kinds. In the Bratt System, however, some sweeping changes were realized. T h e public monopoly, which had been a distinctive feature of the Gothenburg System, was extended to include all phases of the trade in spirits and wines—wholesale, retail, and service. T h e work of the various local system companies was coordinated under the supervisory direction of a national agency. Local supervisors of temperance were empowered to promote the cause of temperance, and to alleviate the effects of alcoholism in the communes. Finally, a system of individual control has been perfected, under which a personal check is made of every purchaser of intoxicants at retail. These are the outstanding innovations in the Bratt System. 17 T h e only change m a d e in the organization is that one of the members of the board of directors, instead of being appointed by the county board, is now •elected by the national board of control.

III THE SYSTEM

COMPANIES

IN a coordinated machinery of control, such as the B r a t t Syst e m , it would h a r d l y be accurate to designate any one agency as t h e most i m p o r t a n t . T h e various institutions a r e complem e n t a r y . T h e Royal B o a r d of C o n t r o l ( K u n g e l i g e kontrollstyrelsen) serves as a national c o o r d i n a t i n g a n d controlling agency. T h e W i n e and Spirits C e n t r a l {Vin- & Spritcentralen) h a n d l e s the wholesale t r a d e . T h e local supervisors of temperance (nykterhetsnämnderna) serve as g u a r d i a n s against the misuse of intoxicants. T h e retail t r a d e is controlled by the various system companies {systembolagen), commonly r e f e r r e d to as the " s y s t e m s . " If these systems a r e n o t t h e most i m p o r t a n t of the controlling agencies, they a r e certainly the most conspicuous. T h e a v e r a g e consumer is n o t concerned with the wholesale t r a d e . I t m a t t e r s little to him w h e r e the liquor comes f r o m , so long as it suits his taste and his pocketbook. H i s a l l o t m e n t of spirits, as well as the price, m a y be affected by o r d e r s e m a n a t ing f r o m the b o a r d of control. But t h e w o r t h y gentlemen w h o compose this b o a r d h a v e t h e i r offices in t h e "old city between the b r i d g e s " in Stockholm, a n d are f a r r e m o v e d f r o m him. A s long as he indulges with m o d e r a t i o n , he is not a p t to have any official relations with any supervisor of temperance. But if he wishes to purchase intoxicants at retail, he immediately comes into contact with his local system, and the relationship continues as long as he is a customer within its jurisdiction. I t is to the local system t h a t he must apply f o r his pass book (motbok), entitling him to purchase a t retail. T h e system determines whether the p e r m i t shall be g r a n t e d ; within certain legal limitations, it fixes t h e a m o u n t he m a y purchase each m o n t h ; it scrutinizes his purchases, and if it finds t h a t he is exercising his privilege in a d e t r i m e n t a l way, it may a l t e r his

32

THE SYSTEM

COMPANIES

allotment or withdraw his pass book; it decides the amount of " e x t r a s " he may have f o r festive occasions; it may even determine the conditions under which he may have spirits or wine with his meals when dining in a restaurant. So closely is the system company associated with the consumer that when he thinks of the Bratt System, he is apt to think of it in terms of his local systembolag. These systems, as we have noted, with minor modifications were carried over from the Gothenburg System. Not only were the companies continued, but the management and personnel were retained. When the Bratt System was adopted, these companies made whatever changes were necessary to comply with the new requirements. T h e y assumed a monopoly of the local retail and service trades; they came under the supervision of the board of control, and sought to execute its orders; they established working relations with the local supervisors of temperance; in short, with the establishment of the Bratt System, these companies became instruments in a coordinated national method of control and, at the same time, they retained a certain sphere of independence and local communal responsibility. There are 1 2 2 system companies. T h i s number is not fixed by statute, but is rather the result of historical accident. If the intoxicants sales statute of 1 9 1 7 has had any influence in this respect, it has been in the direction of limiting the number of systems. T h e law clearly implies that there must be only one system in a commune. 1 It further provides that the county governor (konungens befallingshavande) may not regrant a charter to a company against the wishes of the city council or communal assembly; and the 1 R f f . , ch. 3, sec. 1 7 , cl. 1. Since there are approximately 2,500 communes in the kingdom, this provision obviously is not intended so much to cut d o w n the number of systems as to insure a monopoly of the t r a d e in the communes w h e r e the companies are authorized to operate. T h e communes v a r y in population f r o m the sparsely settled rural parish to the city of Stockholm, with a population of more than 500,000; but regardless of size, the commune is the unit of local government in e v e r y sense of the w o r d . Consequently, it would be unthinkable to h a v e two or more companies exercising a monopoly of the liquor trade in the same commune, if they operated under different sets of regulations; and if they f o l l o w e d the same regulations, there would be no point to h a v i n g more than one system.

THE SYSTEM

COMPANIES

33

number of systems chartered in a county (län) must not exceed the number enjoying rights to the retail trade in brännvin in 1 9 1 8 , or more than one company f o r every 5 0 , 0 0 0 of population. T h e general effect of these regulations has been to retain the number and distribution of the systems as they were when the law went into operation. T h e communes in which systems were chartered, have, as a rule, continued to renew the charters, and other communities have adjusted themselves to being served by the existing companies. C h a r t I illustrates roughly the distribution and location of the systems throughout the kingdom. In a general way, it may be said that this distribution reflects the density of population in different parts of the country. A large number of companies is found in the southern part, especially in the province of Skâne. A g a i n , one finds a large number in the vicinities of Stockholm and Gothenburg and in the rather densely populated stretch between these two cities. In the whole northcentral and northern part of the country, known as N o r r l a n d , there are only 1 3 systems. T h e location of the systems, however, is not determined solely by the density of population. T h e s e companies have been granted their charters by local public officiais who are mindful of local public opinion. Consequently, the presence of a system company in a commune may also be taken as a reflection of the attitude of the locality toward the use of intoxicants. T h e charter of the company depends upon local communal action; but once established, the system is assigned a district by the board of control. Within this area, it is granted a monopoly of the retail trade, and it must serve the territory assigned to it. In this way, the whole kingdom is divided into a number of districts commensurate with the number of system companies engaging in the retail trade. 2 B e f o r e the plan of districting went into operation, these companies served as 2

A f e w of the s y s t e m s e x e r c i s e r i g h t s o n l y to e n g a g e in the s e r v i c e t r a d e , a n d a district c a n n o t be a s s i g n e d to these. T h u s , in 1 9 3 0 , w h i l e t h e r e w e r e 1 2 a c o m p a n i e s , t h e r e w e r e o n l y 1 1 9 districts.

34

THE SYSTEM

COMPANIES

purely local agencies and their present haphazard distribution is not entirely satisfactory. In the south, there are more companies than are necessary to handle the trade efficiently, and this merely adds to the labor and cost of administration. T h e scarcity of companies in the north makes it unnecessarily inconvenient f o r the purchaser. These disparities may be ironed out in time. Ninety-six of the 1 2 2 system companies are situated in the cities; 1 2 are located in boroughs, 9 in villages (municipalsamhälleti), and 5 in rural communes (landskommuner) T h i s disparity between city and country is to be expected. T h e cities are centers of trade f o r the rural, as well as f o r the urban, areas, and nothing is gained by having the systems located in the country. T h e few distinctly rural companies in southern Sweden are the heritage of the era before the local systems were coordinated into a national plan of control. Only 1 7 of Sweden's 1 1 3 cities are without system companies, and these are either in the vicinity of other cities having such agencies, or they are served by local branches of companies having their situs in other cities. There is great variation in the population of the districts served by the different companies. T h e Stockholm system in 1929 served a population of 645,784, while the Skanör company catered to only 1 , 7 3 9 . Stockholm district there were 1 7 6 , 2 9 2 pass-book holders; in Skanör there were 5 1 7 . These two companies, the largest and the smallest, represent the extremes. T h e average number of people in a district in that year was 5 1 , 4 2 9 ; but in 1 5 districts there were less than 10,000 inhabitants, while in 1 3 there were more than ιοο,οοο. 4 This disparity in the number of people served by different companies is of course reflected in the volume of business and in the work of control. T h e Stockholm company alone operates 3 3 retail liquor stores, while 1 0 1 other systems maintain only one store each. * Sverigej Officiella Statistik: Report of the Board of Control, läljrtingett, 1929, p. 4. * Ibid., p. j7.

Ruidryckiför-

CHART

I.

DISTRIBUTION

OF SYSTEM C O M P A N I E S

RIGHTS TO RETAIL SPIRITS A N D

WINE

WITH

36

THE SYSTEM

COMPANIES

Likewise, there is some variation in the range of activities. Of 1 2 2 companies in operation in 1 9 2 9 , 1 1 6 exercised rights to the retail and service trades of both spirits and wine; 2 exercised rights to the retail trade of spirits and wine and the serving of wine; one was limited to the retail trade of spirits and wine; and 3 exercised rights only to the service trade in spirits and wine. 5 T h e r e is also a variation in regard to the area in which the systems carry on their activities. About half of the companies limit their operations to their home commune. H e r e their rights to serve spirits and wine are exercised, and here are located the retail stores f r o m which the pass-book, holders of the district purchase their wares. But some companies maintain both retail and service trades in communes other than the one where they are chartered, and many either exercise rights to serve spirits, or wine, or both, in other communes, or they relinquish these serving rights to private agencies. Such action must, of course, have the consent of the authorities of the municipality chartering the company, as well as of the commune where the retail store or serving place is located.* Finally, since the commune is the local unit of control, its size and location may determine the volume of business and the range of activities of the company it charters. T h e troubles of the Stockholm system, with its thirty odd retail stores and its supervision of scores of places where intoxicants are served, certainly differ in degree, if not in kind, f r o m those of the Skanör company. T h e H a p a r a n d a company, in the extreme northeastern part of the country and with a district of several 5

Ibid., p. 4. A c c o r d i n g to the annual report of the board of control f o r 1929, only 9 of the 1 1 3 cities exclude the liquor trade in all f o r m s . Some of these " d r y " cities are located in close proximity to municipalities w h e r e the trade is permitted. S e v e r a l of them, h o w e v e r , are located in areas w h e r e the temperance movement is still vigorous, and in closing out the t r a d e they undoubtedly reflect local opinion. A different situation exists in the rural communes. T h e s a l e of intoxicants is c a r r i e d on in only 193, or 8 percent, of the 2 , 4 1 7 rural communes; and in only 174, or 7 percent, is the traffic of a more permanent " a l l - y e a r - a r o u n d " nature. T h i s , of course, does not necessarily reflect rural opinion. T h e service trade is a l w a y s associated with the s e r v i n g of food, and restaurants are usually located in the cities. 6

THE SYSTEM

COMPANIES

37

t h o u s a n d square miles of sparsely settled t e r r i t o r y , must necessarily face different p r o b l e m s f r o m those encountered by a system in M a l m ö h u s , which shares with twenty-one o t h e r companies the retail t r a d e of a densely p o p u l a t e d county. But if the systems differ in the volume of business, t h e a r e a covered, the number of people controlled, and in the r a n g e of t h e i r activities, they a r e alike in their p u r p o s e and o r g a n i z a tion. E a c h company has been g r a n t e d a m o n o p o l y of t h e spirit and wine t r a d e s in a fixed a r e a and is expected to exercise t h a t monopoly in the interests of t e m p e r a n c e and public w e l f a r e . T h e f o r m of o r g a n i z a t i o n of the company, at least in a general way, is prescribed by law and is fairly u n i f o r m t h r o u g h o u t t h e kingdom. 7 L e t us t u r n to t h e institution of t h e system company itself. H o w may it be e s t a b l i s h e d ? H o w is it o r g a n i z e d ? H o w a r e its functions d e l i n e a t e d ? H o w is it a d m i n i s t e r e d ? W h a t is its relationship to public authorities, state and local? F o r t u nately, answers to these questions m a y be f o u n d in the general statute g o v e r n i n g the sale of intoxicants. 8 T h e s t a t u t o r y provisions r e g a r d i n g the o r g a n i z a t i o n and establishment of a system company a r e liberal. T h e initiative is l e f t to p r i v a t e enterprise. T h e l a w is silent on such important m a t t e r s as c a p i t a l i z a t i o n a n d t h e legal n a t u r e of t h e association. Some sort of c o r p o r a t e body is implied, but it may be a c o r p o r a t i o n in the m o r e n a r r o w sense of the w o r d o r it may be a joint-stock company. T h e company must consist of at least nine m e m b e r s or stockholders, b u t any n u m b e r above this minimum would comply with t h e legal requirements. At least six of the m e m b e r s must be residents of t h e same 7 While they are similar in organization, there is a legal difference in the corporate nature of some of the companies. Some h a v e continued as handeltbolag, or " t r a d i n g companies," a f o r m of corporate organization corresponding in its legal aspects to the A m e r i c a n joint-stock company. T h e m a j o r i t y are aitiebolag, or true corporations in the A m e r i c a n sense. B e r g v a l l notes that 75 of the 122 systems in operation in 1925 were corporations, or aktiebolaç, while the remainder w e r e t r a d i n g companies, or handelsbolag. B e r g v a l l , J . , Restrihtionssystemet, etc., (Stockholm, 1 9 2 6 ) , p. 26. • T h e statutory regulations g o v e r n i n g the organization of the system company are found in R f f . , ch. 3, under the caption " C o n c e r n i n g Rights to the Retail T r j d e in Intoxicants" (Om Rättigheter till Detaljhandel med Rutdrycker).

38

THE

SYSTEM

COMPANIES

community (ort)—apparently this does not necessarily mean the same c o m m u n e — i n which the system w o u l d have its situs and conduct its operations. In the light of the legal provisions, all one has to d o to start a system is to interest a f e w of his fellow t o w n s m e n in the project, organize a company, and apply f o r a charter. If the charter is granted, t h e company is ready for business, but many factors hinge on that "if." T h e application f o r the charter must be m a d e to the governor o f the county in which the privilege is t o be exercised, b e f o r e the end o f M a r c h preceding the calendar year when the company wishes t o begin operations." T h e application must be accompanied by evidence of the character of the company's membership and their qualifications t o conduct the liquor trade in the interests of public w e l f a r e . A copy of the by-laws of the association must also be submitted, t o g e t h e r with a p r o p o s e d plan under which the company intends t o conduct the business. In this plan, the company must specify the kind of intoxicants, spirits or wine, or both, which it proposes to h a n d l e ; it must indicate the number and location of the retail stores which it intends to o p e r a t e ; it must point out the number and location of the places w h e r e it chooses to exercise rights t o the service trade and the conditions under 9

It is a reckless use of terms to refer to the Swedish län as a county and to the ionungens befallningshavande as a governor. However, while not the same, the American county approximates the län closely enough to give us an idea of this unit of local government. Some writers have r e f e r r e d to the län as a province, but this is apt to be misleading. T h e Swedish province has a social and historical basis, while the län is an administrative unit. In the smaller provinces, the province and the län are coterminous, but the larger provinces are divided into ntore than one län. Since it is a local administrative unit with legislative, judicial, and executive agencies and corresponds in size to the American county, the comparison is not so far-fetched. It is a little difficult f o r the A m e r i c a n to understand the office of ionungens befallningshavande, or, as it is popularly termed, "K.B." T h e K.B. is an office, or an institution, r a t h e r than a personage. Literally translated, the phrase means " h a v i n g the king's command." T h e chief executive officer, or governnor of the län (lands hövding) is appointed by the central government and performs the duties of K.B. with the advice of the other t w o executive officers of the län, who are similarly appointed, namely, the secretary (landssekreier) and the t r e a s u r e r ( l a n d s k a m r e r ) . T h e s e three officers constitute the county board (länsstyrelsi). But when serving as K.B., the decision of the g o v e r n o r alone is final. T h e application for a system company c h a r t e r is m a d e to the office of K.B.

T H E SYSTEM C O M P A N I E S

39

w h i c h t h e s e r i g h t s will b e exercised. H a v i n g r e c e i v e d a n d exa m i n e d t h e p e t i t i o n , t h e g o v e r n o r s u b m i t s it t o t h e local aut h o r i t i e s of t h e c o m m u n e in which t h e c o m p a n y wishes t o h a v e i t s situs o r c o n d u c t o p e r a t i o n s . I n S t o c k h o l m , t h e p e t i t i o n g o e s t o t h e city council; in o t h e r cities, t o t h e council a n d m a g i s t r a t e s ; a n d in t h e r u r a l c o m m u n e s , t o t h e c o m m u n a l a s s e m b l y a n d t h e selectmen. 1 0 A f t e r r e c e i v i n g t h e p e t i t i o n , t h e local council is f r e e t o disp o s e of it a c c o r d i n g t o its p l e a s u r e . If it a c c e p t s t h e p e t i t i o n w i t h o u t r e s e r v a t i o n s , t h e g o v e r n o r will g r a n t t h e c h a r t e r ; if it r e j e c t s it, t h e g o v e r n o r is n o t a u t h o r i z e d t o g r a n t t h e c h a r t e r ; if it m a k e s r e s e r v a t i o n s , t h e c o n d i t i o n s u n d e r w h i c h t h e t r a d e will b e p e r m i t t e d m u s t b e i n c l u d e d in t h e c h a r t e r w h e n it is g r a n t e d . T h e c o n d i t i o n s i m p o s e d by t h e city council, of c o u r s e , m u s t n o t b e m o r e l i b e r a l t h a n t h e n a t i o n a l r e g u lations, but they m a y be m o r e strict. F o r example, national r e g u l a t i o n s f o r b i d t h e service t r a d e in s p i r i t s except w i t h m e a l s . T h e local g o v e r n m e n t c a n n o t r e m o v e t h i s m e a l req u i r e m e n t , b u t w i t h i n t h e c o m m u n e it m i g h t e n t i r e l y f o r b i d t h e service t r a d e in w i n e as well as in s p i r i t s . T h e n a t i o n a l r e g u l a t i o n s limit i n d i v i d u a l p u r c h a s e s of s p i r i t s a t r e t a i l t o f o u r liters a m o n t h . T h e city council, in fixing t e r m s t o a c h a r t e r , could n o t p e r m i t a g r e a t e r m a x i m u m , b u t it c o u l d l i m i t such p u r c h a s e s t o o n e liter a m o n t h o r o n e liter a d e c a d e . L o c a l a u t o n o m y h a s such w e i g h t t h a t b e f o r e t h e service t r a d e m a y be c o n d u c t e d in t h e vicinity of a c o m m u n e b u t o u t s i d e its borders, the g o v e r n o r m u s t consult the communal authorities concerned. Granted a charter, the company enjoys a complete monopoly of the r e t a i l a n d service t r a d e s in s p i r i t s a n d w i n e . T h e r i g h t s t o t h e r e t a i l t r a d e m u s t be exercised b y t h e c o m p a n y i t s e l f . I t m a y d e l e g a t e t o o t h e r s t h e exercise of service r i g h t s . In t h e exercise of t h e m o n o p o l y , it is l i m i t e d b y n a t i o n a l r e g u l a tions a n d by t h e c o m m u n a l r e s t r i c t i o n s i m p o s e d in t h e c h a r t e r . I t may n o t g o b e y o n d t h e s e l i m i t a t i o n s , b u t w i t h i n t h e s e con10

If a r u r a l c o m m u n e h a s a council, this b o d y t a k e s the p l a c e of t h e c o m m u n a l assembly.

40

THE

SYSTEM

COMPANIES

fines it is free to formulate and carry out its own policies. I t may not be more liberal than the national regulations or its charter provisions permit, but it may be more strict. I f the company charter fixes an individual maximum of three liters a month, the company may comply with this provision by making the maximum one liter a month; if the charter limits it to the operation of five serving places, the company itself may limit it to one, or it may refuse to permit the exercise of any serving rights. In other words, the company is in a legal position to be quite arbitrary. But let us not attach too much significance to legal rights and limitations. Legal rules and regulations are strictly observed, but the law is liberal, and if every commune and system suddenly sought to exercise its legal rights in an arbitrary fashion the whole system of control would be thrown into hopeless confusion. T h e whole plan is grounded on common sense and common understanding, rather than on legal regulations. All along the line, there is an exchange of ideas and a meeting of minds between the respective systems, between the systems and the communal authorities, and between local and national agencies. T h e duration o f the company charter is fixed by law at from one to three years. In attaching conditions to the charter, the city council may determine its life within these legal limits. Before the charter expires, if the company wishes to continue its operations, it must petition the governor for a renewal o f the grant. Again the petition is submitted to the local city council, and it may accept, reject, or impose terms. In this way the council may exercise a control over the system company. But after the grant has been made and the system conforms with the reservations contained in it, the city council cannot impose new conditions during the life of the charter. As a rule, the old companies are retained and the grants renewed with minor modifications. But rival companies may organize and petition for the charter. I f more than one company petitions, it devolves upon the city council to express a preference and upon the governor to grant the charter to the company which, in his estimation, would come the

T H E SYSTEM

COMPANIES

4»

nearest to conducting the t r a d e in the interests of temperance and public welfare. 1 1 I n outward appearances, the system company is a private corporation. It has a charter, stockholders, and is governed by a board of directors. I t pays taxes, both to the state and to the local community. I t is a legal entity. I t may enter into agreements, sue and be sued, and acquire p r o p e r t y . But while it has the organization and legal personality of a private corporation, it is clothed with a public interest. It is carrying out a public function in accordance with public control. In it we find a fusion of private initiative and public interest. A system company has its origin in private initiative. But when it receives its charter, it assumes a public responsibility and becomes an agency of the state and the community. I t is not only subject to the supervision of a state agency in the f o r m of the board of control ; it must not only obey the orders of the local supervisors of temperance when these officials act in a legally authorized fashion; but the administration of the corporation itself is in the hands of a publicly authorized management. T h i s is evidenced by the composition and selection of the board of directors of the company. T h e number, composition and method of selection of the board of directors is fixed by statute, and is u n i f o r m through11 T h e law is not entirely clear as to whether the g o v e r n o r must abide by the preference of the city council when two or more companies petition for the charter. This question arose when the Stockholm system w a s under the direction of Doctor Bratt. Sufficient opposition to Doctor B r a t t and the company he directed had developed in the city council so that when the c h a r t e r expired and the company petitioned for its renewal, the city council rejected the petition and expressed a preference for a rival company. T h e governor, or as he is known in Stockholm, the òverstàthàllare, ignored the preference of the council and granted the charter to the old company. H e w a s upheld in this action by the central government. It is hardly conceivable that this could h a p p e n in any other city. Stockholm occupies a peculiar position as the national capitol and the metropolis of Sweden. At the time, the action of the city council w a s viewed as of national concern. A repudiation of Doctor Bratt and his company might have been construed as a rejection of the whole Bratt System. It is of no importance to the state whether this or that company exercises the liquor monopoly in the average city, and the governor, as a representative of national interests, would not be apt to oppose the preference of the local authorities.

42

THE SYSTEM

COMPANIES

out the kingdom. T h e b o a r d always consists of five members. Only two of these are selected by the stockholders of the company. One, the chairman, is selected by the national b o a r d of control; one is chosen by the county council (landsting) ; one is elected by the city council, or by the communal assembly if the company is chartered by a rural commune. 12 T h e administration of the corporation is thus under the control of publicly chosen directors representing state, regional, and local interests. B u t apparently even this precaution is deemed insufficient to insure public w e l f a r e against private interest, and the three publicly chosen directors are specifically prohibited by statute f r o m being stockholders in the corporation. A s f a r as the company is concerned, these directors are rank outsiders selected by the public to step in and administer the affairs of the corporation. T h e two directors selected by the stockholders, however, may own stock in the company. A similar situation exists in r e g a r d to the auditing of the books of the company and the taking of inventories. Audits at regular intervals a r e required by statute, and provision is made f o r an auditing b o a r d of three persons, two selected by the board of control, and one by the stockholders of the company. 1 3 W h a t then are the powers and functions of the stockh o l d e r s ? T h a t question is easily answered. T h e i r function is to constitute a sufficient company membership with the requisite character and residence qualifications so that a charter m a y be granted according to law. A f t e r the charter is granted, their functions are limited to a selection of two of the five directors and one of the three auditors. A s i d e f r o m this strenuous occupation, they have no other duties to p e r f o r m 12 T h e council of a city which is independent of a county, such as Stockholm, selects two members. If a company should be chartered when the county council is not in session, the selection f o r the county would be made temporarily by the chairman of the council. 13 Provision is also m a d e f o r alternates f o r every member of the b o a r d of directors and auditing board. T h e s e alternates are chosen in the same manner as the directors and auditors.

THE SYSTEM

COMPANIES

43

unless it should be to collect their dividends, and even these a r e limited by law to a maximum of 5 percent on the capital actually invested. It is when we turn to the capitalization of the system company and the disposition of profits that w e are struck by the peculiar position of the stockholder and the public nature of the corporation. T h e capitalization of a company is usually extremely small in comparison to the earnings. N o t only is it small, but, apparently, it is unimportant in the eyes of the law. T h e act governing the sales of intoxicants stresses the character of the membership of a company and makes provision f o r its management, but it is silent on capitalization. T h e corporation m a y be capitalized at a thousand o r a million kronor. T h e amount is l e f t to the discretion of the stockholders when the company is o r g a n i z e d . A s a rule, there appears to be some relation between the capitalization and the number of stockholders, and the amount of business of the system, but even this varies. T h e capitalization of all the companies is small, but there is g r e a t disparity in the amounts. If one asks why there should be any capitalization at all, he is apt to receive the answer that in a corporation (aktiebolag) this is the accepted f o r m of organization, and that by actually investing money in the enterprise the stockholder indicates the seriousness of his purpose. T h e capitalized corporation goes back to the days when the company purchased its supplies f r o m private wholesalers, who might be interested in the balance sheet when extending credit. A t present, with both the system company and the wholesale agency under public supervision and control, and operating on a nonprofit basis, capitalization is unnecessary, at least f r o m a financial point of view. In examining the balance sheet of a company it is not unusual to find that the unpaid debts to the wholesaler are several times as large as the capitalization of the company. T h e earnings of a company f o r one week may be more than its entire invested capital. T h e largest of the companies, the Stockholm system, has a capitalization of 5 0 0 , 0 0 0 kronor,

44

THE SYSTEM

COMPANIES

or approximately $ 1 3 5 , 0 0 0 at the normal rate of exchange. Its assets and liabilities, respectively, in 1 9 3 0 , were 1 2 , 2 5 3 , 198.63, and its receipts and expenditures f o r that year were, respectively, 43,527,094.06 kronor. 1 4 A glance at the yearly financial statement of any of the system companies will indicate the relative unimportance of its capitalization, the position of the stockholder in relation to the corporation, and the public nature of the enterprise. L e t us select the report of a small company as an illustration. T h e system located in the little city of Ronneby in southern Sweden will serve as well as any. It is selected at random and I have no reason to believe the figures are extreme. A t any rate, they are illustrative. T h i s little system, in 1 9 3 0 , served a district with 5 , 5 2 6 pass-book holders. It operated a small third-class restaurant, patronized principally by workingmen and farmers, where it exercised the right to serve spirits with meals. It had let out three rights to serve spirits to private establishments. One of these was an all-year-round right; the other two were seasonal, having been let out to health and pleasure resorts which operate only during the summer months. 15 T h e company had a capitalization of 5,500 kronor, but its assets and liabilities, in 1 9 3 0 , were 1 6 1 , 1 5 7 . 7 6 kronor. Its net earnings f o r that year were 8 8 , 7 6 4 . 1 5 kronor, or more than sixteen times its invested capital. In other words, if this were a purely private corporation in which the stockholders would share the net profits, they would have received an interest of 1,600 percent on their invested capital. T h e net earnings of the company were more than 3 2 5 times the dividend requirement, but all the stockholders could receive was 5 percent on their capital actually invested. But this does not tell 14

Aküebolaget Stociholmssystemet, Förvaltning sb eräit else for àr rçjo. As we have already noted, a system company may not delegate to others the exercise of its right to the retail package trade. It may, however, delegate rights to the service trade. Consequently, a distinction is made between service rights which the company itself exercises and rights which it has let out to others. In letting out service rights, the company may determine the conditions under which they shall be exercised. See infra, Chap. VII. 19

THE SYSTEM

COMPANIES

45

the whole story. T h e net earnings of the company w e r e computed a f t e r deducting dividends owing to the stockholders and 1 7 2 , 9 9 2 k r o n o r p a i d in taxes to the state and the commune. 1 6 T h e net earnings in turn were also turned over t o the state. F r o m the operation of this small system, during 1 9 3 0 , the public received revenues amounting to 2 6 1 , 7 5 6 k r o n o r , while the total income which all the stockholders reali z e d f r o m the business w a s 5 percent on the capital invested, or 275 kronor." Since all surplus returns revert to the public, the value of the stock to the shareholders cannot be computed in terms of earnings. If it could, the stock of the little Ronneby company would be w o r t h at least 1 , 0 0 0 , 0 0 0 , instead of 5 , 5 0 0 , k r o n o r . T h e stockholders h a v e no voice in the disposition of earnings, except such as m a y be expressed in the choice of t w o of the five directors. B u t even the local b o a r d of directors is not authorized to m a k e expenditures of a permanent nature without the consent of a state agency, namely, the b o a r d of control. T h i s may be illustrated by again r e f e r r i n g to the Ronneby system. W h e n I visited this company in 1 9 3 1 , it was unfortunate in its building facilities. T h e division of control was housed in two small rooms, inconveniently arranged and badly l i g h t e d ; the local retail store w a s cramped f o r space; the restaurant w a s located o v e r a shop in the business section of the town. T h e m a n a g e r of the company proudly showed me the plans f o r a new building, which he hoped to have a p p r o v e d by the b o a r d of control. T h e s e plans called f o r a commodious building in which would be housed the division of control, the retail store, as well as a second and a third-class restaurant. I h a v e f o r g o t t e n the estimated costs, but I feel that I am s a f e in saying that the building, as planned, could not be built and equipped f o r less than 1 0 0 , 0 0 0 kronor. L e t us suppose the plans were a p p r o v e d . W h o owns this build18

Most of these taxes go to the state. In this particular instance, the commune received only 6,6t2 kronor. 17 T h e s e figures are computed f r o m the annual report of the company f o r the year 1930. Ronneby Sprithandeh Akliebolags styrelse och revisionsberättelser Jör òr 1930.

46

THE SYSTEM COMPANIES

ing? Certainly not the stockholders. They have only a 5 ι 5 θ θ kronor interest in the corporation. Technically, the plant belongs to the company. But suppose the license of the company is not renewed. Suppose the monopoly is given to another company. What then? In such an event, the new company would buy the property at its estimated value, the old stockholders would be returned the amount they had actually invested, plus whatever interest remained unpaid, and the surplus would revert to the state. When we turn to some of the systems organized as trading companies (handelsbolag), we find the members of the corporation occupying an even more anomalous position. These companies have no shares and no capitalization. 18 The system in Uppsala may be cited as an illustration of this type of organization. The members of this corporation—we cannot call them stockholders—do not have an ore invested in the enterprise and receive nothing of a pecuniary nature in return. They attend the meetings of the company—it cannot be called a stockholders' meeting—participate in the selection of two directors and one auditor together with the necessary alternates, and may take part in other business that comes up for discussion. They received no expenses, not even for their attendance at these meetings. It is purely a public service. The receipts and expenditures of this company in 1 9 3 0 respectively approximated 1,000,000 kronor ( 9 5 6 , 7 7 5 . 6 1 ) . Its balance sheet for that year showed assets and liabilities of nearly 1,250,000kronor ( 1 , 2 3 3 , 1 7 6 . 1 6 ) . The company owned a commodious building, in which were housed its offices and its three retail stores; it operated a second- and a third-class restaurant; it owned stock, valued at 150,000 kronor, in one of the leading hotels of the city.19 But no stockholder or private person shared in this corporate affluence. The entire profits of the enterprise reverted to the state. 18

It should be noted that the legal regulations g o v e r n i n g the organization, membership, powers, duties, etc., of a company apply to all systems, regardless of whether the agency operates as a trading company or as a capitalized corporation. 19 Sprithandelíbolaget i Uppsala. Förvaltninfsberättelse för òr IQ30.

THE

SYSTEM

COMPANIES

47

T h i s places the system company in a peculiar light. Its property, above the amount represented by paid-up shares and accrued interest, does not belong to the stockholders, but to the public. It is held in trust by the company f o r the performance of a public function. T h e company itself, while having all the e a r m a r k s of a private corporation, is really an agency of the state and the commune. I t is controlled and supervised by the public. But within a restricted sphere, it exercises a marked degree of private initiative in the p e r f o r m ance of its public functions. T h i s naturally raises the question, W h y have the system company? W h y should not governmental agencies, state and local, directly handle the liquor trade, without the intermediary of a chartered c o r p o r a t i o n ? I have asked this question of a number of persons with a background of years of experience with liquor control, such as managers of systems, newspapermen, or public officials. T h e answers have been fairly uniform, and may be reduced to some five reasons. In the first place, the system company has served remarkably well as a coordinating agency between national and communal interests. Local opinion may be expressed by the commune in closing out a company entirely; or, if the company is admitted, conditions may be attached to the privilege which should prove a sufficient s a f e g u a r d f o r local interests and desires. On the o t h e r hand, when a company is chartered, it becomes a unit in a national plan and operates under the supervision of a state agency in the f o r m of the b o a r d of control. In the second place, there is the psychological f a c t o r of keeping the government out of the liquor trade. A m o n g a large number of people, there is a strong association between godliness and temperance, and in all classes the liquor traffic is viewed not as a good, but at best as a necessary evil. T h e position of the system companies themselves is t h a t the less liquor consumed, the better. F u r t h e r m o r e , there is a s t r o n g temperance movement t h r o u g h o u t the kingdom, which is especially effective a m o n g the schools and teachers. U n d e r such

48

THE SYSTEM

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conditions, in a democratic society, it would be rather awkward to have state and local governments directly engaged in the liquor traffic. Placing the trade, both wholesale and retail, in the hands of quasi-private corporations under public control takes the state and the commune out of the business, at least in appearance, and puts them in the more acceptable position of serving as guardians to see that the traffic is conducted in the interest of public w e l f a r e . T h e government thus becomes a partner in the cause of temperance; and as long as the restrictions are reasonable, the more convivial members of the community will view the state as a f a i r umpire. And I might add, if the restrictions are unreasonable, they are apt to blame the system company. T h e companies serve as needed shock absorbers. Thirdly, the plan of individual control requires constant adjustment to local and individual needs. T h e system company furnishes the necessary elasticity and adaptability. U n d e r state operation, it would be difficult to eliminate administrative regimentation, with its attendant rigidity of standards, procedure, bureaucracy, and red tape. E v e n under present conditions, many complain of the bureaucracy of the B r a t t System. T h e very nature of this system is such as to demand a certain amount of bureaucracy, and this situation would undoubtedly be aggravated under state management. T h e r e is need of elasticity under which exceptions may be made. A person may apply f o r a greater quantity of extras f o r a birthday celebration than the occasion should reasonably require; he may ask f o r a pass book as the head of a household when he is actually, but not legally, assuming that responsibility; extenuating circumstances may accompany an infraction which ordinarily would call f o r a revocation of a permit; owing to local conditions, unusual regulations may be necessary in a restaurant which is exercising rights to serve intoxicants; and so on, and so on. Decisions in these cases cannot always be squared with fixed rules. T h e y are local and personal matters, and must be settled in a spirit of sympathy and in the light of understanding. Within bounds, the system company

T H E SYSTEM C O M P A N I E S

49

is given a freedom of decision which would hardly be possible for an administrative official acting under orders. T h e company, as a corporation, also assumes a legal and personal responsibility which would not be assumed by the state or commune, and is in a position to make adjustments which a governmental agency could not make except in strict accordance with statutory requirements. Fourthly, the institution of these nonprofit companies tends to keep politics out of the liquor trade. This factor is not so important in Sweden as in the United States. T h e quest for patronage and the seeking of special privileges apparently are not so common. But in the last analysis, the Swedish officials are subject to popular control. Liquor is in demand; constituents are organized; even the pass-book holders in some localities are organized with a view to obtaining a greater maximum. Under such conditions, the system company serves as a buffer between the official on the one hand, and the electorate on the other. Finally, the plan has worked. This is its strongest justification. Like the Englishman, the Swede, in his evaluation of social and governmental institutions, is pragmatic rather than logical. T h e proof of the pudding is in the eating. There is nothing to be gained in changing an agency of social control, as long as it does what it is supposed to do. T h e system company is an old and tried institution which has served for more than three-quarters of a century and has functioned well. On the whole, it seems to have been satisfactory. I have encountered opposition to the Bratt System; I have listened to passionate pleas for more freedom and equally ardent argument for prohibition; but I have heard little criticism of the system company as an agency of control. I have heard of no major scandal in connection with the operation of any of these corporations. Communal restrictions imposed in charters are merely a phase, frequently a minor phase, of governmental regulations. T h e state does not passively wait for the realization, through inspired local authorities, of certain minimum, uniform re-

So

THE

SYSTEM

COMPANIES

quirements. It has its own regulating agency, the R o y a l B o a r d of Control. T h i s b o a r d is the administrative agency of the central government, and no study of the system companies is complete if it leaves this p o w e r f u l instrumentality out of the picture. T h e companies may be compared to various a r m y corps occupying certain sectors. T h e board of control is a sort of national G . H . Q . Since 1 8 7 4 , this board, as an independent bureau in the Finance D e p a r t m e n t , has functioned as an agency f o r watching over the production of articles subject to taxation, such as brännvin, malt drinks, sugar, tobacco, etc. 20 In 1 9 1 5 , when the B r a t t System w a s in its infancy, the board was given the task of exercising a general supervision over the retail trade in intoxicants. Since then, this has been one of its principal functions. T h e legal requirements of the b o a r d are not specifically imperative, and more passive men might have been inclined to rest on their oars. But the direction of the board has been aggressive. It has taken the position that it represents the state, and has viewed the system companies as instrumentalities in a nation-wide system of liquor control, of which it is the coordinating and supervising head. It has reached out and assumed powers. T h i s advance has not been without opposition. Directors of local systems, members of city councils, and proprietors of restaurants have protested that the b o a r d was overstepping its legal bounds and usurping powers. T h e board, however, has held to its course, established itself, and 20 T h e t e r m " i n d e p e n d e n t b u r e a u " does not e x a c t l y d e s c r i b e the position of the b o a r d of control, but it is the n e a r e s t a p p r o a c h I c a n think o f . It is difficult f o r an A m e r i c a n to u n d e r s t a n d the n a t u r e , o r g a n i z a t i o n , a n d p o w e r s of such a n a d m i n i s t r a t i v e a g e n c y . W e h a v e n o t h i n g w h i c h c o r r e s p o n d s to it. W r i t e r s on S w e d i s h g o v e r n m e n t , such a s A l d é n , s i m p l y c l a s s it as a d i v i s i o n in the F i n a n c e D e p a r t m e n t , with a d i r e c t o r a n d f i v e m e m b e r s a n d w i t h c e r t a i n f u n c t i o n s . T h i s is apt to be m i s l e a d i n g to an outsider, w h o thinks in t e r m s of o t h e r a d m i n i s t r a t i v e systems. T h e position of some of the a d m i n i s t r a t i v e units, o r ämbetsverk, in the S w e d i s h g o v e r n m e n t a l s y s t e m is u n i q u e . S o m e h a v e f u n c tioned f o r c e n t u r i e s a n d h a v e become a p a r t of the g o v e r n m e n t , much the s a m e as the c r o w n o r p a r l i a m e n t . N o t only a r e they i n d e p e n d e n t of a n y d e p a r t m e n t h e a d , but, w h e n a c t i n g w i t h i n t h e i r r e s p e c t i v e s p h e r e s , t h e y a s s u m e a s t a t u s of functional autonomy. It is a p e c u l i a r f o r m of b u r e a u c r a c y w h i c h , if I a m not m i s t a k e n , is f o u n d only in S w e d e n . T h e b o a r d of control is such an i n d e pendent, a u t o n o m o u s , g o v e r n m e n t a l a g e n c y .

T H E SYSTEM C O M P A N I E S

$1

apparently its position is no longer effectively challenged. And, a f t e r all is said, the board of control may logically justify its assumption of powers on at least two grounds. In the first place, the o f t - r e f e r r e d to "Section Sixty-Three" of the act governing the sale of intoxicants provides that the liquor t r a f fic must be conducted in such a manner as to conform to the highest possible degree with the purposes of the legislation and t o result in a minimum amount of social damage. 2 1 T h a t statement must not be taken merely as the official reflection of a platitude. It is an expression of a widely accepted principle of Swedish liquor regulation, which has obtained for more than three-quarters of a century. Furthermore, it is state law, and the board, as the agency of the state, may logically act to insure the observance of the spirit of this provision. In the second place, all net profits of the trade revert to the state. F o r this reason, the board, as the representative of the state, is certainly justified in scrutinizing the receipts and expenditures of the local companies, and in imposing regulations governing their economic activities. W h a t are the powers exercised by the board of control? First, it assumes a general power of direction. T h e chairman of the board of directors of every system company is designated by the board, and is responsible to it. T h u s it has a spokesman in the councils of every company. Secondly, the board exercises a control over the economic affairs of the companies. I t determines the rules governing prices in the retail and service trades. It fixes the percentage of spirits and wines which may be sold f o r profit in the service trade. I t approves the salaries of the directing heads of a system, and fixes the compensation which company directors or auditors may receive for their services. It passes upon such matters as general salary schedules f o r the personnel of a company, the amount of retirement, old-age, or disability pensions, etc. I t approves the purchase of real estate, the erection of buildings, the installment of permanent improve21

Rff., ch.

6,

sec. 63.

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THE SYSTEM

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ments, and all leases of a longer duration than the charter of a company. It appoints two of the three auditors of a company, and may require statements f r o m them, as well as f r o m the chairman of the board of directors. It receives annual reports f r o m the companies, and these accounts give not only a minute statistical analysis of the business, but likewise indicate the progress of the systems in the observance of the spirit of the already mentioned Section Sixty-Three. Finally, the board of control has exercised an ordinance power, and has filled in the statutory gaps by the issuance of " c i r c u l a r s . " T h e s e bulletins are both mandatory and advisory. W i t h reference to the retail trade of the companies, the board has contented itself with counseling and advising; but it is significant in this connection that the plan of individual control, in so f a r as it calls f o r varying quantities f o r different classes, is not directly based on statutory provisions, but had its inception on a national scale in the f a m o u s " C i r c u l a r N o . 7 1 . " 22 T h e extent and importance of the ordinance power may be illustrated by citing the results achieved by some of the more important circulars. W e have already mentioned individual control. In the same w a y the board has prescribed f o r m s f o r accounts and audits, delineated the powers of companies in their ownership and control of property, fixed prices of some spirits, and prescribed rules f o r price determination of others. 2 3 It has supplied instructions f o r keeping records, in order to insure a more efficient functioning of individual control, regulations governing the application f o r a pass book, rules applying to those cases who move f r o m one company jurisdiction to another, regulations governing the application f o r " e x t r a s , " etc. 24 It has issued regulations governing the service trade in intoxicants. 25 I t has supplemented its more special instructions regarding the retail and service trades by general advice with reference to social welfare. 2 8 If these circulars were mere preachments, we could ignore them. But they are accepted seriously and observed in spirit 22

Kungl. Kontrollstyrelsens cirkulänamling, No. 71, 1920. Ibid., No. 9, 1926. 2tIbid., No. 13, 1925. 25 Ibid., Nos. 2 and 3, 1930. 2 6 Ibid., No. 14 1925. 23

T H E SYSTEM

COMPANIES

53

as well as in letter. T h e system companies may, of course, comply with the orders of the board by being m o r e strict than the general regulations. They cannot be more liberal. T h i s seems like a rigid, arbitrary control. But the b o a r d is mindful of local needs and desires, and, apparently, issues only such orders as are necessary to conform with the spirit of the law, or needed to secure the interests of the central government. It recognizes the sphere of the local system company and the domain of communal authority, and again we witness a plan of social control dominated by mutual understanding, rather than by rigid rules of law. T h e board of control is not the only coordinating agency. T h e companies have perfected associations among themselves, both on a regional and a national scale. These associations maintain a central organization ( S y s t e m b o l a g s f ö r e n i n g a r n a s förtroendenämtid), hold meetings, conduct courses of instruction, and publish an official organ ( T i d s k r i f t for Systembo· lagen) which is an invaluable clearing house of information on the problem of liquor control. These associations are entirely voluntary and extralegal. T h e y have undoubtedly been instrumental in coordinating activities and in standardizing company regulations. Outside of these more formal organizations, one finds a free and informal communication and association between the management and the personnel of one company and those of another. T h e liquor problem cannot be isolated and, thanks to these associations and contacts among the different companies, there has developed a sort of full faith and credit understanding whereby one system honors the regulations of another. T h e companies cooperate not only with the board of control and with one another, but each system is constantly in touch with local social agencies such as supervisors of temperance, supervisors of charity, school and church authorities, the health service, the police, and the courts. In each system district, there is a mobilization of organized agencies of social control in an effort to conduct the liquor traffic in such a way as to be least inimical to social welfare.

IV T H E

W H O L E S A L E

T R A D E

T H E development of controlling agencies in the wholesale liquor trade may be cited as additional evidence of the application of the empirical method under public-spirited, private initiative before a policy is given the sanction of law. A monopoly, disinterested from the standpoint of private profits, was established and perfected over a period of seven years b e f o r e it was given formal recognition in a statute. A n d I may be speaking a bit loosely when I refer to the enactment as a recognition of the system which had been built up. Certainly one could read the provisions of the law without recognizing the plan developed f o r the wholesale trade. T h e statutory provisions f o r the wholesale trade constitute a brief chapter of the sale of intoxicants act of 1 9 1 7 , and were enacted as amendments of that measure in 1 9 2 3 . 1 T h e s e provisions may be paraphrased as follows: T h e wholesale trade may be conducted only by a company created in accordance with the provisions stipulated in the statute. T h e crown shall designate f r o m among the applicants one or more companies and grant a monopoly of the trade f o r a fixed period not to exceed five years. 2 Written application must be made to the crown b e f o r e the beginning of the year preceding that in which the rights are to be exercised. T h e crown may revoke the charter if the rights are abused. A wholesale company chartered by the crown may not declare dividends to its stockholders above a reasonable rate of interest on the capital actually invested. T h e company may, with the consent of the crown, white off a certain portion of its yearly earnings and set it aside f o r special funds. W h a t then remains at the close of each calendar year, a f t e r dividends to stockholders 1

Rff., ch. 2, "Wholesale T r a d e in Intoxicants" ("Om Partihandel med Rusdrycker" ). 2 This was changed to six years by an act of May 30, 1930.

T H E W H O L E S A L E TRADE

55

h a v e been paid, must be deposited in the Riksbank, to the account of the state, before the end of the following June. N o wholesale company will be chartered unless it, in its by-laws or in some other satisfactory way, gives a controlling influence to the state in the conduct of the business; and, moreover, the company in the conduct of its affairs shall be subject to such special control on the part of the state as the crown may find necessary. Such additional requirements as may be necessary f o r the work and conduct of a company shall be stipulated in a contract, entered into when the company's application f o r the charter is accepted. T h e crown may in such a contract guarantee that, during the period covered by the agreement, no other company will be given a right to engage in the wholesale trade. 3 T h e statute anticipates a monopoly of the wholesale trade to be exercised in the interest of public w e l f a r e . T h e company enjoying the grant has the sole right to sell intoxicants at wholesale, 4 to refine spirits, and to import spirits and wine. 5 T h o s e licensed to distill spirits must sell to the wholesale company whatever is not exported. Likewise, wine made in the kingdom, which is not exported, can be sold only to the wholesale company.® A t first glance these legal provisions seem to clothe a corporation with vast powers, but it should also be apparent that the interests of the state are adequately safeguarded. T h e government grants the charter, but retains the authority to rescind it, and while the monopoly is in operation, it has the power to control the business. A mere perusal of the legal provisions, however, will furnish only a hazy idea of the structure and functions of the agency conducting the wholesale trade. Under the terms of the 3 T h e a b o v e is a s u m m a r y of R f f . , ch. 2, sec. 1 2 , w h i c h c o n t a i n s the s t a t u t o r y r e q u i r e m e n t s f o r the w h o l e s a l e t r a d e . * A n exception is m a d e so that one s y s t e m c o m p a n y m a y sell to the c o u r s e of the retail t r a d e . 5 A epecial a r r a n g e m e n t is m a d e w h e r e b y system c o m p a n i e s , w i t h of the b o a r d of control, m a y i m p o r t to s u p p l y c u s t o m e r s . T h e c o m p a n y , h o w e v e r , is the a g e n c y w h i c h i m p o r t s p r a c t i c a l l y all stores them, a n d then sells to the s y s t e m c o m p a n i e s . " R f f . , ch. 2 , sec. 1 3 .

the g i s t

of

another

in

the c o n s e n t wholesale intoxicants,

THE

WHOLESALE

TRADE

statute there might be one or a d o z e n companies, and nothing is said about organization and management. A b o u t all the law requires is some sort of corporate organization under government control, with the profits reverting t o the state. I f we want a true picture of the wholesale trade, w e must turn to other sources. W e must first view the trade in its historical development as an integral part of a national system of liquor control. T h e structure of the corporation which handles the wholesale trade, its direction and management, and its relation to the government, are the result of experimentation and g r o w t h , rather than creation by statute. F o r an account of the present organization, we must turn to the company agreements with the government, the company by-laws, and the instructions issued to controlling agencies. F o r a résumé of the nature and scope of the wholesale trade, we must g o to the annual reports of the corporation. T h e wholesale trade served as an avenue o f escape when D o c t o r Bratt, in February, 1 9 1 4 , h a z a r d e d the experiment of requiring Stockholmers to secure pass books as a condition to purchasing intoxicants at retail. A t that time, the distinction between the wholesale and retail trade w a s based on the quantity sold, rather than on the status of the purchaser. 7 T h i s weakness in the law was remedied in that year and the wholesaler was permitted to sell intoxicants only to a retailer, w h o in turn sold to the consumer. Since the retail trade was mainly in the hands of the system companies and these agencies were rapidly adopting the B r a t t plan of control, it might seem that this statutory requirement would h a v e furnished an adequate protection f o r the new experiment, and it is significant that no additional provisions w e r e made f o r the wholesale trade in the sales of intoxicants act of 1 9 1 7 . A p parently, until some agency had been developed f o r the wholesale trade similar in purpose to the system company in the retail trade, the lawmakers were satisfied to intrust this phase of the traffic to private business enterprise. But difficulties had presented themselves and, b e f o r e this law w a s passed, 7

See supra, Chap. II.

THE

WHOLESALE

TRADE

57

the Stockholm system, under the direction of D o c t o r Bratt, had already begun to introduce disinterested management into the wholesale t r a d e ; and before the act became operative in 1919, the wholesale trade had been absorbed by subsidiaries of the Stockholm company and a benevolent monopoly had been established. T h e reasons f o r this development are significant as indicating t h a t a really effective plan of liquor control must be b r o a d enough to include all phases of the traffic, wholesale, retail, and service. T h e controlling agencies must be united in a common purpose and their efforts must be coordinated t o w a r d a common end. In Sweden, the goal is to conduct the traffic in the interests of temperance and public welfare. An anomalous situation existed where the retail t r a d e was organized to attain this goal, and the wholesaler was p r o m p t e d by thoughts of individual profits. U n d e r such conditions, the system companies would seek to cut down consumption and the wholesaler would be interested in promoting sales. T h e house would be divided against itself. T h e s e conflicting purposes would constitute an inherent defect in any plan of liquor control which sought to combine public welfare with private gain. But more specific objections became a p p a r e n t . A controlled retail trade must be fortified with public confidence. You may quarrel with the objectives of a system company; you may question the wisdom of its policy; you may challenge its methods; but you must not distrust its business honesty. T h e influence of such an agency is impaired to the extent that its integrity is doubted. A s a responsible agency, it must sell honest wares. T h e liquor wholesaler, on the o t h e r hand, in Sweden, as elsewhere, was not inhibited by such a strict code of business ethics. T h e r e were misrepresentation, spurious labels, false claims, and all the tricks of the t r a d e inspired by the profit motive and condoned by caveat emptor. N o t only was the local consumer disgusted by not knowing what he was getting f o r his money, but the practice had an unwholesome effect on the Handelspolitik of the country. A socially responsible agency was necessary, which

58

THE WHOLESALE

TRADE

could assure the f o r e i g n exporter of f a i r treatment in the Swedish market. Finally, the boasted efficiency of business enterprise w a s laid open to doubt by evidence of mysterious disappearance of intoxicants and w a r e s unaccounted f o r . T h e sponsors of the B r a t t System f o r e s a w dangers. T o them, at least, it w a s becoming increasingly apparent that there w a s need of an integrated control of all phases of the trade. T o leave a portion under p r i v a t e business enterprise, would tend to undermine the purposes of the system. T h e directors of the Stockholm company did not wait f o r legal sanction, but began taking steps to acquire control of the wholesale trade. T h e y wielded a p o w e r f u l club. A wholesaler could sell his business at the f a i r price offered, or run the risk of losing his customers because the p o w e r f u l Stockholm company and its sister systems w e r e in a position to establish an independent company wholesale trade. I t w a s H o b s o n ' s choice, and the wholesaler listened to reason. T h e first step w a s taken in 1 9 1 6 when the Stockholm company, through a subsidiary, took o v e r the old wine firm of J . D . G r ö n s t e d t and C o m p a n y in Stockholm. T h i s was followed by the acquisition of businesses in other parts of the country. In the middle of 1 9 1 7 , a corporation, Vin- & Spritcentralen, w a s o r g a n i z e d as a subsidiary of the Stockholm system. T h i s corporation has become the company enjoying the monopoly rights to the wholesale trade. 8 T h e p r o g r a m of acquiring the wholesale business continued, and by the beginning of 1 9 1 9 all the wine firms in the kingdom had been absorbed by Vin- & Spritcentralen or some of its affiliated companies. A t the beginning of that year, when the b o a r d of control w a s first called upon to grant wholesale liquor rights — a duty which h a d been c o n f e r r e d upon it by the sale of intoxicants a c t — t h i s agency h a d no choice to make. Other firms had ceased to exist, and the only thing f o r the b o a r d to 8

The English translation of the term, Vin- & Spritcentralen, would be T h e Wine and Spirits Central. T h e Swedish name for the corporation, however, has become generally recognized, and, in referring to the company, I shall use the Swedish term.

THE

W H O L E S A L E TRADE

59

d o w a s to g r a n t the rights to Vin- & Spritcentralen and its subsidiaries. W i t h Vin- & Spritcentralen in control of the wholesale t r a d e , the ends l a t e r sought in the legislation of 1 9 2 3 had alr e a d y been achieved. T h e trade w a s conducted in the interests of public w e l f a r e , rather than p r i v a t e gain, and the profits r e v e r t e d to the public. T h e arrangement w a s simple. T h e Stockholm system owned the common stock of Vin- & Spritcentralen, which in turn owned the stock of its subsidiary companies. In accordance with the by-laws of Vin- & Spritcentralen, the Stockholm system, as owner of the common stock, controlled a majority of the votes in the company and could determine its policies. O t h e r stockholders held pref e r r e d stock with limited dividends. A f t e r the expenses of the business had been met, the p r e f e r r e d dividends paid, and the requisite sums set aside f o r certain funds, the Stockholm company, as the holder of the common stock, received the remainder. But the profits of the Stockholm company w e r e turned o v e r to the state, and thus the public indirectly received the benefits of the profitable wholesale trade. W h i l e these developments had occurred in the absence of legislative indorsement, let us not conclude that they had taken place in opposition to the government. T h e government was not yet ready to act, but apparently it w a s satisfied to let matters take their course. T h e R i k s d a g turned down suggestions to depart f r o m monopoly and return to f r e e competition in the wholesale trade. T h e government seemed to be sympathetic t o w a r d the idea of a benevolent monopoly. In government circles, as well as on the outside, there w a s some apprehension of a monopoly price, but, in general, the state authorities a p p e a r e d satisfied with the earnings. Since its beginning, the directors of Vin- & Spritcentralen h a v e f o l l o w e d the policy of fixing prices in accordance with rules of sound business, rather than exercising monopolistic powers to elevate prices, and this has met with the a p p r o v a l of the government. T h e policy of the state has been to stress the public service of the monopoly, rather than the earnings. T h i s policy has been

6o

THE

WHOLESALE

TRADE

f o l l o w e d , both b e f o r e and a f t e r the l e g a l indorsement o f the monopoly. T h e ownership and control o f V i n - & Spritcentralen by the S t o c k h o l m system, h o w e v e r , w a s n o t a satisfactory arrangement. T h e S t o c k h o l m company w a s o r g a n i z e d f o r the purpose o f conducting the retail t r a d e in the S t o c k h o l m district. It acquired control o f the w h o l e s a l e business merely to s a f e g u a r d a p r o g r a m r e g u l a t i n g the retail and service trades. T h i s end h a d been attained by the establishment of a benevolent mon o p o l y o p e r a t i n g under disinterested m a n a g e m e n t . T h e directors of the S t o c k h o l m company f e l t t h a t their o r g a n i z a t i o n should confine its activities to its o r i g i n a l purpose. T h e y felt it w a s unwise f o r the company t o continue to o w n the common shares o f Vin- & Spritcentralen and to determine its policies. T h e y w a n t e d to g e t out of the w h o l e s a l e t r a d e . In 1920, they a p p r o a c h e d the g o v e r n m e n t w i t h an ingenious suggestion. T h e y asked to be permitted to turn o v e r the common shares o f V i n - & Spritcentralen to a c o n s o r t i u m o f ten persons acceptable to the crown. T h i s proposition w a s accepted by the g o v e r n m e n t , and the necessary c h a n g e s w e r e m a d e in the company o r g a n i z a t i o n . 9 9 D u r i n g its control b y the Stockholm s y s t e m , V i n - & S p r i t c e n t r a l e n w a s subjected to criticism f o r e n g a g i n g in activities e n t i r e l y f o r e i g n to the business of w h o l e s a l e liquor. V i e w e d in a historical p e r s p e c t i v e , these activities a r e of interest n o w p r i n c i p a l l y as i n d i c a t i n g the c a r e n e c e s s a r y to s a v e the system of liquor control nursed by D o c t o r B r a t t f r o m being e m a s c u l a t e d or destroyed b e f o r e it h a d taken firm root and h a d been p r o v i d e d with a d e q u a t e s a f e g u a r d s . O n e of these activities w a s the acquisition by V i n - & Spritcentralen of the D . C a r n e g i e and C o m p a n y b r e w i n g interests. T h i s step w a s t a k e n to p r e v e n t the b r e w i n g of strong porter, w h i c h the s p o n s o r s of the B r a t t System f e l t w o u l d tend to d e f e a t the purposes of a r e g u l a t e d s a l e of spirits and wine. F o r a discussion of the beer t r a d e , see infra C h a p . V I I I .

D u r i n g this p e r i o d , Spritcentralen also a c q u i r e d the N e w G r a n d Hotel in Stockholrrt. T h e hotel m a n a g e m e n t w a s s e r i o u s l y c o n s i d e r i n g a b a n d o n i n g the enterprise and d i s p o s i n g of the b u i l d i n g and site. T h i s hostelry h a d built up a r e p u t a t i o n as the l e a d i n g hotel in S c a n d i n a v i a , a n d the d i r e c t o r s of the Stockholm system f e l t that the institution should be r e t a i n e d . T h e y also f e a r e d t h a t if this hotel w e n t out of business, it w o u l d s t r e n g t h e n the opposition to the B r a t t System, as it could then be a r g u e d t h a t no first-class hotel could o p e r a t e u n d e r such a plan of restricted l i q u o r control. P e r h a p s it w e n t f a r t h e s t afield f r o m the w h o l e s a l e l i q u o r t r a d e in its v e t u r e w i t h the A s t r a C o m p a n y . T h e p u r p o s e of this c o m p a n y w a s the production of m e d i c a l supplies and the p r e p a r a t i o n of p h a r m a c e u t i c a l w a r e s .

THE

WHOLESALE

TRADE

6l

T h e salient f e a t u r e s of the organization of Spritcentralen, effected when the Stockholm system severed its connections w i t h it, h a v e continued up to the present time. T h e ten common-stock o w n e r s received a limited dividend on their inv e s t m e n t and, controlling a majority of the v o t e s in the c o m p a n y , they w e r e in a position to determine its policies. T h e owners of p r e f e r r e d stock received a dividend of 7 percent on their investment, and the state reserved an option to call in the p r e f e r r e d shares at par, plus accrued dividends, on three months' notice. T h e crown and the ten common-stock o w n e r s entered into an agreement whereby these gentlemen p l e d g e d themselves not to sell any of their shares to anyone not acceptable to the crown and, by the terms of the contract, the state could buy the shares at p a r whenever it desired. T h e crown was a u t h o r i z e d to select f o u r of the eight members of the c o m p a n y ' s b o a r d of directors, and one of these public representatives should serve as chairman of the b o a r d . T w o of the f o u r a u d i t o r s w e r e also selected by the crown. Such briefly w a s the organization of Spritcentralen at the time when its activities were legalized by the statutory provisions which we h a v e noted. T h e legalization of its status did not change the o r g a n i z a t i o n of the corporation. W i t h minor alterations, the 1 9 2 0 a r r a n g e m e n t continued until 1 9 3 0 . 1 0 It would be w e a r i s o m e , and perhaps pointless, to attempt a detailed account of the development of the o r g a n i z a t i o n and functions of Vin- & Spritcentralen. Suffice it to say that its structure and activities are principally based on the a r r a n g e Spritcentralen w a s prevailed upon by the government and the M e d i c a l Department to take o v e r this enterprise, in order to establish a central pharmaceutical laboratory. A f t e r the purposes f o r acquiring them had been realized, these extraneous interests w e r e disposed of by Spritcentralen as soon as it could sell out without entailing too g r e a t a loss. 10 For the facts in this brief historical n a r r a t i v e , I am indebted to J o h n B e r g valPs Restriktionssystemet, etc., (rev. ed., Norrtelje, 1929). I h a v e d r a w n f r e e l y f r o m this source. Since I began this study, an English translation of this work has appeared under the title, The Liquor Legislation in S» S Ü λ E Ï .2 o o χ Q m

·—ι > ζ ζ α: £0

In V 5 -1 b « °·

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THE

WHOLESALE

TRADE

77

T h e w h o l e s a l e p r i c e s which I h a v e q u o t e d h e r e m u s t not be c o n f u s e d w i t h the retail prices which the c o n s u m e r must p a y . T h e w h o l e s a l e price includes the excise t a x on the manuf a c t u r e of b r ä n n v i n , which S p r i t c e n t r a l e n as a p r o d u c e r must p a y to the s t a t e , but does not include the t u r n o v e r l e v y on s p i r i t s which the c o m p a n y collects f r o m the r e t a i l e r w h e n it m a k e s a s a l e , a n d which is p a s s e d on to the c o n s u m e r . I t is the increase in this t u r n o v e r tax that resulted in a u g m e n t e d retail liquor p r i c e s in 1 9 3 2 and 1 9 3 3 . " T h i s i n t r o d u c e s a n o t h e r p h a s e of the a c t i v i t i e s o f Spritc e n t r a l e n , n a m e l y , its services as a source o f r e v e n u e . I t occupies a p e c u l i a r position. In a sense, it is a p r i v a t e c o r p o r a tion e n g a g e d in distilling, refining, i m p o r t i n g , a n d w h o l e s a l i n g intoxicants. A c t u a l l y , it is a public service c o m p a n y . A s a p r i v a t e c o r p o r a t i o n , it p a y s taxes to the state a n d the comm u n e ; p a y s its duties as an i m p o r t e r , its excises as a p r o d u c e r , a n d collects the t u r n o v e r tax. A s a public c o r p o r a t i o n , it perf o r m s a n e c e s s a r y public function a n d returns its p r o f i t s to t h e s t a t e . M o r e than h a l f o f the revenue which the s t a t e rec e i v e s f r o m the l i q u o r traffic is p a i d into t h e , p u b l i c t r e a s u r y b y S p r i t c e n t r a l e n , either as a t a x p a y e r o r a t a x c o l l e c t o r . T h e f o l l o w i n g figures s h o w the a m o u n t s , in millions o f k r o n o r , p a i d into the state t r e a s u r y by the w h o l e s a l e c o m p a n y d u r i n g the d e c a d e f r o m 1 9 2 2 to 1 9 3 1 inclusive. 3 8

Imports B r ä n n v i n Producer's Excise Turnover T a x State T a x e s Profits f r o m Wholesale T r a d e Total

1922

1923

1924

192;

1926

1927

1928

1929

1930

1931

7.2

7.1

7.9

8.3

8.7

9.5

9.3

10.0

10.5

10.3

13.7

14.6

5.0

4.0

15.4 5.5 3.1

14.5 30.9 2.6

13.2 30.5 2.1

19.7 31.2 2.2

14.1 31.4 3.5

17.9 31.8 0.8

18.3 33.7 0.5

17.9 33.4 0.7

10.2

6.1

5.1

5.5

4.7

8.0

7.8

6.3

8.9

5.0

36.1

31.8

37.0

61.8

59.2

70.6

66.1

66.8

71.9

67.3

37

For y e a r s the turnover tax on spirits w a s 55 percent of the wholesale price, minus the tax. B y an act of parliament, promulgated J a n u a r y 3 1 , 1 9 3 2 , this tax w a s augmented by the imposition of an additional levy of sixty ore—approximately fifteen cents under the normal rate of exchange—on e v e r y liter of spirits sold. A second act, promulgated J u n e 22, 1932, raised the turnover tax to 60 percent of the wholesale price, plus a flat rate of one krona per liter. Another 60-ore flat increase became effective Feb. i , 1933. For a discussion of retail prices, see infra, Chap. V. 38

T h e s e figures are f r o m the annual report of Spritcentralen for 1 9 3 1 , p. 35.

78

THE WHOLESALE

TRADE

V i e w e d impartially, Vin- & Spritcentralen appears to h a v e justified its existence. I t has demonstrated the wisdom and workability of a disinterested monopoly in the wholesale liquor trade. T h e wholesale trade has evoked less public criticism than the retail or service trades. T h a t is readily explained. In a system of liquor regulation based on the idea of individual control, with its monthly allotments and rationing of supplies, the wholesaler has a comparatively easy row to hoe. H e can remain detached and a l o o f . H e does not h a v e to f a c e the disgruntled customer or the irate restaurateur. H i s j o b is to run his business honestly and efficiently, to supply the w a r e s f o r which there is a demand, and to leave the responsibility of rule making and enforcing to the b o a r d of control and the system companies. If these agencies controlling the retail trade can reduce the turnover, they h a v e his blessing. Sales and profits mean nothing to him. J u d g i n g f r o m the Swedish experiment, I would say that, of all the phases of the liquor traffic, the wholesale trade is the one that lends itself most readily and with least conflict to a system of disinterested management and social control. Disinterested management means a control of the business by persons whose income is in no way affected by the profits of the trade. T h e need of such control has long been recognized in the retail and service trades, but is less obvious in the wholesale business. H o w e v e r , it is significant that both N o r w a y and Finland, a f t e r abandoning prohibition experiments, have monopolized the wholesale trade in spirits and wine. Eliminate the profit motive, and you take a w a y the inducement to promote sales. T o the extent that you accomplish this, you eliminate the liquor interests. T h a t holds f o r the wholesale, as well as f o r the retail, trade. A community m a y determine its liquor policies f r e e from outside interference only when the wholesaler assumes the position of a public service agency and is indifferent to turnover, sales, and profits.

ν T H E PLAN OF I N D I V I D U A L

CONTROL

I N D I V I D U A L control is perhaps the most distinctive feature of the Swedish plan of liquor regulation. T h e Norwegian plan, like the Swedish, provides f o r a monopoly of the wholesale and retail trades in intoxicants, vests the exercise of the monopoly in the hands of limited dividend companies under public control, and secures the profits f o r the public. T h e plan of rationing in the retail trade has been tried in C a n a d a . T h e meal requirement in connection with the service t r a d e likewise has been a part of the Canadian system, and has even been attempted in American liquor regulation. But, as f a r as I have been able to ascertain, the Bratt System is the only one in which an attempt is made to vary the allotment to fit each individual customer qualified to purchase spirits or wine at retail.

T o the casual American observer, the sliding scale of maximum allotments is apt to appear discriminatory and unfair. W e must bear in mind, however, that the drinking customs of the Swedes are of long duration and have become widespread and fairly standardized. Attitudes have been f o r m e d regarding the proper and reasonable use of intoxicants. In the light of this social background, the differentiation in maximum quantities of liquor allotments appears f a r less a r b i t r a r y or unreasonable. In a society where the drinking customs have become standardized, the liquor requirements vary among different individuals. W h a t constitutes a reasonable monthly allotment will depend on such factors as age, sex, domestic status, social obligations, and individual drinking habits. In the Swedish system, these factors are recognized in the provision f o r a varying scale of individual allotments. Youth should f o r m habits of abstinence or moderation. In accordance with t h a t

8o

P L A N OF I N D I V I D U A L

CONTROL

i d e a l , p a s s b o o k s t o p u r c h a s e i n t o x i c a n t s a r e s e l d o m issued t o a n y p e r s o n u n d e r twenty-five; a n d w h e n a p e r m i t is g r a n t e d t o a y o u n g p e r s o n , it is usually f o r a v e r y l i m i t e d a m o u n t . W o m e n , as a rule, d r i n k less t h a n m e n . T h e i r social req u i r e m e n t s of l i q u o r a r e l i g h t e r t h a n t h o s e of t h e m a l e . M a r r i e d women are seldom given permits. O n e permit per h o u s e h o l d is usually d e e m e d sufficient a n d it is g e n e r a l l y issued to the husband. U n m a r r i e d women, w h o maintain independe n t e s t a b l i s h m e n t s , m a y secure a l i m i t e d a l l o t m e n t . T h e single m a n w h o d o e s n o t m a i n t a i n a d o m e s t i c establ i s h m e n t , a s a rule, d o e s n o t r e q u i r e a s l a r g e a n a l l o t m e n t as t h e h e a d of a h o u s e h o l d . H e is n o t c a l l e d u p o n t o s e r v e liquor a t social f u n c t i o n s in t h e h o m e . H e d i n e s a n d e n t e r t a i n s his f r i e n d s a t public r e s t a u r a n t s , w h e r e s p i r i t s a n d w i n e m a y b e h a d w i t h t h e m e a l . N o g r e a t h a r d s h i p is i m p o s e d by c u t t i n g d o w n his a l l o w a n c e . L i k e w i s e , t h e r e a r e v a r i a t i o n s in t h e social p o s i t i o n s of p e o p l e of t h e s a m e age, sex, o r d o m e s t i c s t a t u s , which m u s t b e r e c o g n i z e d in d e t e r m i n i n g t h e r e a s o n a b l e n e s s of l i q u o r req u i r e m e n t s . W h e n a p e r s o n occupies a p o s i t i o n w h e r e he is e x p e c t e d t o e n t e r t a i n a n d serve b e v e r a g e s t o g u e s t s , his req u i r e m e n t s a r e g r e a t e r t h a n t h o s e of o n e w h o d o e s n o t h a v e t h i s s t r a i n on his h o s p i t a l i t y . F i n a l l y , t h e r e a r e differences in i n d i v i d u a l d r i n k i n g h a b i t s . O n e p e r s o n m a y b e a m o d e r a t e d r i n k e r , l i m i t i n g his i n d u l g e n c e t o a snaps b e f o r e meals, a l i q u e u r w i t h his a f t e r - d i n n e r coffee, or a whisky and soda b e f o r e retiring. A n o t h e r ' s indulgence m a y t a k e t h e f o r m of c o m p l e t e p a r a l y s i s . O b v i o u s l y , t h e f o r m e r does not require the same restrictions as the latter and s h o u l d n o t b e p e n a l i z e d u n n e c e s s a r i l y f o r t h e sins of his less responsible brother. I n d i v i d u a l c o n t r o l is p r e d i c a t e d on t h e v a r i a t i o n s in indiv i d u a l l i q u o r r e q u i r e m e n t s . T h e s p o n s o r s of t h e p l a n h a v e a c t e d o n t h e a s s u m p t i o n t h a t a fixed m a x i m u m f o r e v e r y p e r m i t h o l d e r , r e g a r d l e s s of his s t a t u s , w o u l d n o t o n l y f a i l to m a k e p r o p e r allowance f o r varying individual needs, but w o u l d b e socially u n d e s i r a b l e . If a u n i f o r m m a x i m u m w e r e

PLAN

OF

INDIVIDUAL

CONTROL

8l

fixed t o o low, it w o u l d entail unnecessary h a r d s h i p on the responsible user of intoxicants, and would tend to encourage the illegal t r a d e by f u r n i s h i n g it with customers unable to secure a r e a s o n a b l e a l l o t m e n t t h r o u g h legitimate channels. If fixed t o o high, it w o u l d c r e a t e a surplus which would be sold by customers, and t h u s an illegal traffic would develop beyond the control of t h e l e g i t i m a t e r e g u l a t i n g agencies. T h e principle of " a u t o m a t i c economic" control has been rejected as f a i l i n g t o m e e t the objectives of a sound policy of liquor r e g u l a t i o n . T h e idea of this m e t h o d of control is simply t o raise t h e price of intoxicants by the imposition of taxes a n d let t h e increased cost to the consumer reduce the d e m a n d . T h e increased price will automatically tend t o cut d o w n c o n s u m p t i o n . T h i s m e t h o d has been employed in a number of countries, a m o n g t h e m D e n m a r k and N o r w a y , and has much to r e c o m m e n d it. T h e virtue claimed f o r it is t h a t it kills t w o b i r d s with one stone. In the first place, it increases revenues. Secondly, it curtails consumption, which results in a m i t i g a t i o n of the evils of alcoholic indulgence. I t is simpler t o o p e r a t e a n d would not require t h e extensive adm i n i s t r a t i v e m a c h i n e r y necessitated by the system of individual control. R e g a r d l e s s of its v i r t u e s — a n d it has m a n y — e c o n o m i c control is n o t in h a r m o n y with the principles underlying t h e B r a t t System. I t sets u p p u r c h a s i n g p o w e r r a t h e r t h a n individual accountability as t h e criterion, and if purchasing p o w e r is m a d e t h e sole test, pushed to its logical conclusion it would imply t h a t the m a n of m e a n s could indulge in spite of his excesses, while the p o o r m a n would be d e p r i v e d regardless of his r e p u t a t i o n f o r sobriety and m o d e r a t i o n . T h e Swedes a r e a r e m a r k a b l y h o m o g e n e o u s people, and reasonable social restraints a r e viewed as applying to all, g r e a t or small, rich or p o o r . D i s c r i m i n a t i o n on g r o u n d s of ability to pay would do violence to this w h o l e s o m e spirit of f a i r play. C o m p a r e d with prices in o t h e r countries, the retail price of spirits and wine in Sweden is relatively low. T h e b o a r d of control e i t h e r fixes t h e retail price directly o r lays down the

82

PLAN

OF

rules under w h i c h

INDIVIDUAL

it is d e t e r m i n e d ,

throughout the country.1

CONTROL and prices are

uniform

Retail prices generally are not

only

m o d e r a t e , b u t t h e r a n g e o f o f f e r i n g s is s u f f i c i e n t t o a c c o m m o d a t e varying vin

are

pure"

pocketbooks. remarkably

brännvin,

proximately

in

The low

priced.

1931,

seventy-two

commonly retailed

cents

The at

a liter.

used

forms

popular 2.65

of

bränn-

"absolutely

kronor,

Equally

or

popular

apand

better g r a d e s , such as K r o n b r ä n n v i n a n d the v a r i o u s kinds o f A k v a v i t , retailed at slightly m o r e than three k r o n o r , o r a b o u t eighty-five cents a liter.

Considering the w i d e s p r e a d

demand

f o r t h i s f o r m o f l i q u o r , it is s i g n i f i c a n t t h a t , w i t h t h e tion o f

" e x p o r t spirits," with a 95-percent alcoholic

excep-

content,

no brand of brännvin retailed f o r m o r e than a dollar a liter.2 1 The board fixes the price of the cheapest brand of spirits, namely, the "absolutely pure" brännvin (absolut rent brännvin), with an alcoholic content of not more than 40 percent. This low-priced grade of spirits is commonly used by people of moderate means, and is what might be termed a staple. T h e board likewise fixes the price of "export spirits" (exportipril), which is practically pure alcohol, the content being about 95 percent. The retail price of other spirits, according to a ruling of the board, is fixed by the system companies in such a w a y that the wholesale price is increased by 25 percent, to which is added a turnover tax. Λ proviso is also made that the increased price thus computed must not be less than seventy-five ore per liter over the wholesale price, and that if the price thus arrived at is not divisible by five, it must be raised to the nearest five or ten ore. This last provision obviates the inconvenience of making small change. Similarly, in accordance with an order of the board, the system company may fix the price of wine in such a way that a 25 percent increase is added to the wholesale price, with the proviso that at least a fifty ore differential must exist between the wholesale and retail prices of every bottle of heavy or sparkling wine. For these rulings, see Kungl. Kontrollstyrelsens Ciriulârsamlinç, Nr 9, 1926, sec. 15, 16. T h e turnover tax for spirits is fixed by parliament. T h e Act of 1923, as amended in 1929, fixed it at 55 percent of the wholesale price, minus the tax. See E. J . Thulin's Alkohollagstiftningen, Stockholm, 1930. In 1932, the turnover tax was raised to 60 percent, to which was added a flat rate of one krona per liter; and in 1933 this flat rate was increased sixty ore. See sufra, P. 77· 2 In translating the retail liquor prices into terms of American money, I am here evaluating the Swedish krona at 3.70 on the dollar. This is slightly less than the exchange rate which the krona had prior to the abandonment of the gold standard in the summer of 1931. Consequently, the prices which I am quoting in American money are excessive. However, the exchange value of money is one thing and its purchasing power is quite another, and, until this disparity has been righted, exchange rates offer an unsatisfactory criterion of long-run comparative prices. It is for this reason that I have selected what has been considered a normal rate of exchange. T h e prices which I am quoting are from the "little catalogue" of the Stockholm system company, published June 1,

PLAN

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CONTROL

83

The various kinds of brännvin are products of the domestic potato, and can be distilled and retailed at moderate prices in spite of the taxes which are imposed and the profits which inure to the public.3 Imported spirits are of course more expensive, but even among these the prices compare favorably with those of other countries.4 Imported cognac of the more popular brands, such as Hennessy or Martell, in 1 9 3 1 retailed from about $2.75 ( 1 0 kronor) per bottle for the "One Star" to about $9 ( 3 4 kronor) for the " E x t r a . " The famous "Three Star" sold for a little less than $ 3 (10.95 kronor) per bottle. However, the locally bottled brands, known as eau de-vie and consisting of imported cognac mixed with brännvin, ranged in prices from about $0.70 (2.50 kronor) a bottle for the "ordinaire" to $1.05 (3.90 kronor) for the domestic "Three Star." Practically all of the "cognac" consumed in Sweden is of this domestic blend. Only an expert can tell it from the real thing. Swedish punsch, most popular of the liqueurs, in 1 9 3 1 , retailed from about ninety cents (3.35 kronor) to about $ 1 . 6 5 (6.20 kronor) a liter. The more popular brands of imported whisky, Scotch, Irish, and Canadian, but principally Scotch, sold for about $2.75 ( 1 0 . 2 5 kronor) a bottle. Whisky imported in bulk and locally bottled cost only a little more than half the price of the imported bottled wares. A similar wide price range is found among the wines. Red Bordeaux imported in bottles in 1 9 3 1 sold from about $0.60 to some $3 a bottle. The locally bottled brands cost from 1931, shortly before the abandonment of the gold standard and the depreciation of the krona. These prices include the then current turnover tax of 55 percent. They are the prices which were paid over the counter by the customer when the purchase was made. 3 T h e Swedes have begun to distill brännvin from wood products. This product of cellulose sugar has been refined to the point where it is no more injurious than any other liquor of equal potency. It retails for a few óre less per liter than the potato variety. But judging from the amounts sold, the Swede still sticks to the potato. However, the use of cellulose spirits is constantly increasing. 4 The difference in prices between the imported and the domestic products is caused not only by production costs and transportation, but a heavy duty is placed on imported intoxicants, especially spirits.

84

PLAN

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CONTROL

$0.40 to $0.90 cents a bottle.® The imported brands of white Bordeaux retailed from $0.70 to $ 3 . 0 0 a bottle, while the locally bottled brands sold from about $0.35 to $0.90 a bottle. A similar range is found in the light wines, from Burgundy, where the imported brands varied from $0.75 cents to $ 3 a bottle, and the domestic bottled from $0.55 to $0.80 cents. The white light burgundy has a slightly wider price range, and the German wines are generally a little more expensive. The popular brands of champagne ranged from about $ 2 . 3 0 to $4 a bottle, the average price being about ten kronor, or $2.75. The heavy wines are more expensive, but here again we find a varying range of prices between the imported brands and the home bottled wares. Imported port varied in price from $ 1 . 3 5 to nearly $5 a bottle; locally bottled brands from $0.75 to about $2.40. Imported madeira sold from about $ 1 . 3 5 to $3.75 a bottle; locally bottled, it retailed from $0.75 to $ 1 . 6 0 . Imported sherry was offered at $ 1 . 4 0 to $2.70, while the locally bottled could be had from $0.65 to $ 1 . 6 0 . Another popular drink is glögg. It is a sort of Swedish Tom and Jerry, and serves to add zest to the Christmas festivities. It is popularly priced. The 1 9 3 1 price for "wine glögg" (vinglögg) was two kronor, or about $0.55 a bottle; "stronge glögg" (starkglögg) retailed at 4 kronor, or about $ 1 . 2 0 a liter. The increased taxes in 1932 and 1 9 3 3 have resulted in higher prices. This is especially noticeable in spirits. Thanks to increased taxation, liquor prices have been elevated to the point where, in the spring of 1933, a liter of purified brännvin retailed at 4.35 kronor. This is the highest price since 1 9 2 3 . The prices of other brands have been raised proportionally. In the meantime, Sweden has forsaken the gold standard, with the result that the exchange value of kronor has fallen, but exchange rates matter little to the Swede who is experiencing a rising cost of liquor. H e buys with kronor, and not s

Practically all of the wine sold in Sweden is imported. brands are imported in bulk.

T h e locally bottled

PLAN

OF I N D I V I D U A L CONTROL

85

with francs, m a r k s , o r d o l l a r s ; and the krona, on or off the g o l d standard, is h a r d to corner. N a t u r a l l y , he complains. B u t while the 1 9 3 3 charges are high, as Swedish liquor prices go, they are not prohibitive. Sweden enjoys a high standard of living. W a g e s are the highest on the Continent and, if we consider such factors as security of employment and the general price level of necessities, the earnings of w o r k e r s do not compare u n f a v o r a b l y with those of A m e r i c a n labor. T h e liquor prices I have noted a r e not prohibitive under such conditions. Only a f e w can a f f o r d the luxury of M a r t e l l ' s E x t r a or Heidsieck's Finest, but they are also f e w w h o cannot indulge a desire f o r brännvin, with an additional skâl of eau-de-vie ordinaire or putisch on festive occasions. In granting permits to purchase at retail, the test is not ability to pay, but rather the individual and social consequence of alcoholic indulgence. T h e system company urges no one to buy intoxicants; it gauges its success by diminished, rather than increased, sales; but it is also a sort of public service corporation which not only seeks to protect society against h a r m f u l indulgence, but serves the responsible consumer with dependable commodities at reasonable prices. Individual control applies only to the retail trade. T h e service trade is limited by a different set of restrictions, and one does not require a permit to be served spirits or wine in a restaurant.® In the United States, prior to prohibition, the service, or b a r trade, constituted the m a j o r portion of the traffic. Americans bought liquor over the bar. T h e Swede buys intoxicants by the bottle f o r home consumption. A p proximately nine-tenths of the spirits and more than fourfifths of the wine is sold in this manner. 7 Individual control is thus an effective method of regulating the m a j o r portion of the trade. 6

For these restrictions, see infra, Chap. V I I . Report of the board of control f o r 1930, Rusdrycksförsäljningen. T h e percentages of spirits and wine sold respectively in the retail and service trades during the y e a r 1930 w e r e as f o l l o w s : Spirits, retail, 89.3; service, 10.7. Wines, retail, 83.7; service, 16.3. 7

86

PLAN

OF

INDIVIDUAL

CONTROL

Perhaps the greatest merit of the plan is its flexibility, which makes possible an adjustment to individual needs without doing violence to local, regional, and general canons of propriety. T h i s flexibility is due in large measure to the basis on which the system of individual control is rested. Americans are wont to seek a constitutional or statutory support for the imposition of social restraints and the curtailment of individual freedom. T h i s is especially true if the regulation smacks of discrimination, which is bound to be the case where a rule applies differently to different individuals. But a perusal of Swedish liquor laws reveals practically nothing which positively authorizes an individual differentiation in liquor allotments. T h e general sale of intoxicants act of 1 9 x 7 makes provisions f o r the granting of pass books, and forbids the sale of intoxicants at retail to anyone not equipped with such permits. 8 It fixes the monthly maximum allotment at four liters, provides f o r the granting of extras f o r special occasions, and forbids the retailing of intoxicants in smaller quantities than three-tenths of a liter. 0 It prohibits the retail of intoxicants to persons under twenty-one years of age, or to persons who more than once during the preceding two years have been adjudged guilty of drunkenness, or during the preceding three years have been convicted and penalized f o r crimes resulting f r o m alcoholic indulgence; to persons who, during the preceding three years, have been sentenced to compulsory labor ( tvângsarbete) ; to persons who, during the preceding three years, have been sent to institutions f o r treatment f o r disorders resulting f r o m an intemperate use of intoxicants; or to those to whom the retail trade has been closed f o r a specified time by order of the supervisors of temperance. 10 T h e law also prohibits the sale to persons who, during the previous three years, have been convicted of selling or purcasing liquor illegally. 1 1 But such legal provisions do 8

Rff., ch. 4, secs. 29, 30. Ibid., secs. 48, 49. 10 Ibid., sec. 34. " Ibid. 9

PLAN

OF I N D I V I D U A L C O N T R O L

87

not necessitate a system of individual control. T h e y merely set up conditions under which intoxicants m a y be retailed, fix a maximum and a minimum, and close the t r a d e to certain undesirable elements. In other w o r d s , the statute merely lays d o w n certain standards and the law is satisfied if these are met. H o w e v e r , if there are no statutory provisions establishing individual control, there are also no legal restrictions preventing local city councils, system companies, or the b o a r d of control, f r o m launching out on such a p r o g r a m , and it is to these agencies that we must turn when w e seek rules and regulations establishing the system. Swedish liquor legislation is rested on the principle that the trade should be conducted in the interest of temperance and public w e l f a r e . T h e l a n g u a g e of the oft-quoted "Section 6 3 " is m a n d a t o r y , and justifies any effort in the direction of attaining this g o a l : " T h e sale of intoxicants shall be conducted so as to bring about as little injury as possible and so that the purpose of the provisions of this enactment may be realized to the fullest extent possible." 1 2 T h e establishment of a system of individual control obviously is not in conflict with the spirit of the general l a w , but, on the contrary, tends to vitalize the statutory provisions. Individual control has resulted f r o m experimentation, rather than f r o m legislative enactments o r administrative decrees. I f we must find its source in some authoritative sanction, we can attribute it to a proclamation issued by the b o a r d of control in J u l y , 1 9 2 0 , and known as " C i r c u l a r N u m b e r 7 1 . " 1 3 T h i s circular embodies the conclusions of a committee composed of m a n a g e r s and others closely associated with system companies, and summoned by the b o a r d of control to make an extensive study and suggest plans f o r i m p r o v i n g methods of controlling the retail trade so as to m a k e it conf o r m with the spirit of the liquor legislation. I t is noteworthy 12

R f f . , sec. 63. All försäljning αν rusdrycker skall ordnas ià, all darmed âitadkommes sà ringa skada som möjligt och att syftet med de i denna förordning givna stadganden sälunda i slörsta möjliga utsträckning vinnei. 13 Kungl. Kontrolhtyrelsens Cirkulär, ¡\r "/, Stockholm den 3 juli, JÇ20.

88

PLAN

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CONTROL

t h a t by this time the system of permits had been in operation f o r several years, and local city councils and system companies were exercising discretion in granting pass books and determining maximum allotments. But the plan of distinguishing between persons, according to their individual differences and variations in social status, had not generally been adopted. I t was this goal that the board sought to reach in its famous but not uniformly popular proclamation. T h e proclamation is directory, rather than mandatory. This is illustrated by the title of the circular, Advice and Instructions Regarding the Control of Pass Books (Râd och anvisningar rörande motbokskontrollen). T h e board merely recommends, it does not compel. It points out that individual liquor needs tend to differ, and suggests that, in the light of this variation, the policy of a fixed maximum f o r all permits should be abandoned in f a v o r of a sliding scale more in accordance with reasonable individual requirements. It outlines roughly the criteria which should be used in determining maximum individual allotments, such as age, sex, social status, and accessibility to the benefit of permits held by others. A policy of varying allotments obviously would necessitate a closer scrutiny of the trade, and in its proclamation the board roughly sketches plans f o r overcoming difficulties in the transition f r o m fixed to varying maxima, disposing of applications f o r permits, establishing continuing checks on customers, and discouraging the practice of transferring the use of pass books to others. T h i s circular is purely advisory. In reading it, one is impressed with its reasonableness. I t does not harangue or compel; its suggestions are clothed in general terms; it does not violate the autonomy exercised within the law by system companies or local city councils. These local units may still grant maximum four-liter permits to anyone not legally disqualified when he reaches the age of twenty-one. T h e y may refuse to follow a policy of differentiation and proceed on the democratic principle of one man, one bottle. But the Swedish system of liquor regulation is based on a community of pur-

PLAN

OF

INDIVIDUAL

CONTROL

89

pose, r a t h e r than on statutes and a d m i n i s t r a t i v e decrees, and t h e local units h a v e f o l l o w e d the advice of the b o a r d of cont r o l . T h e r e are v a r i a t i o n s which reflect local opinion.

Some

c o m p a n i e s a r e m o r e liberal than others. B u t striking differences of s t a n d a r d s a p p a r e n t l y are g r a d u a l l y being eliminated. L o c a l and r e g i o n a l differences in regulation still persist, but all system c o m p a n i e s h a v e adopted the plan suggested by the b o a r d , and i n d i v i d u a l control has been established t h r o u g h o u t the country. H o w e v e r , w h i l e local units h a v e a d o p t e d the system of individual control, let us not f o r g e t that system companies and city councils a r e v i t a l

f a c t o r s in determining h o w the

shall be executed within their jurisdictions. T h e

plan

restrictions

a d o p t e d b y the local system c o m p a n y in G o t h e n b u r g m a y be cited as illustrative of the position of the system c o m p a n y as a r e g u l a t i v e a g e n c y . A c c o r d i n g to the annual r e p o r t , the foll o w i n g restrictions w e r e a d o p t e d and o b s e r v e d by this company during

1930:

ι . Intoxicants w i l l not be retailed to an unmarried man under twentythree years of age. 2. Spirits not in excess of one liter a month may be retailed to a married man between the ages of twenty-one and twenty-five if he maintains his own household. 3. Spirits not in excess of two liters a month may be retailed to a married man between the ages of twenty-five and twenty-eight. 4. Spirits not in excess of one liter a month may be retailed to an unmarried man between the ages of twenty-five and twenty-eight. 5. A married man over twenty-eight years of age and with an independent household may receive three liters of spirits per month. 6. As a rule, more than two liters of spirits per month will not be retailed to an unmarried man. 7. A married man who has reached the age of thirty-five may under certain conditions be allotted four liters of spirits per month. 8. With reference to liquor allotments, an unmarried man will be accorded the same privileges as a married man if he occupies a similar position in a household. Likewise, a married man without his own household is placed in the same position as an unmarried man. 9. As a rule, a permit w i l l not be granted to a woman belonging to a household where there already is a pass book.

90

PLAN

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CONTROL

1 0 . A permit w i l l not be issued to a w o m a n under thirty years of age. 1 1 . T h e monthly liquor allotments of a person w i l l be reduced if he has not taken care of his taxes f o r the state and the commune f o r the past and the ensuing y e a r and if he cannot s h o w that the arrears are due to no f a u l t of his. T h e allotment w i l l not be diminished if he is in arrears in only one of his taxes, state or commune. 1 2 . A person w h o is a notorious tax dodger w i l l be limited to a m a x i m u m of one liter a m o n t h . 1 3 . T h e allotment of a person w i l l be diminished if he is the recipient of substantial poor relief or if he has received such aid d u r i n g the last t w o years. I f he is w h o l l y supported by charity his permit w i l l be rescinded. 1 4 . If a person is f o u n d guilty of drunkenness d u r i n g the last three months and if his permit has not been rescinded, his allotment w i l l be diminished f o r a period of six months counting f r o m the time w h e n his guilt became k n o w n to the system company. 1 5 . Spirits or any other type of intoxicants m a y not be retailed to a person w h o d u r i n g the last three months has been fined f o r drunkenness if within a period of five years before the imposition of this penalty he w a s f o u n d g u i l t y of a similar offence. 1 6 . Spirits or any other type of intoxicants w i l l not be retailed to a person under t w e n t y - f i v e years of age whose temperate habits are questionable. 1 7 . If a person is f o u n d guilty of driving a motor vehicle w h i l e under the influence of liquor, his permit privileges w i l l be suspended f o r a period of at least three m o n t h s . 1 4 Such

local

regulations

are

typical,

and

indicate

s y s t e m c o m p a n y m a y d o on its o w n i n i t i a t i v e .

The

what

a

local city

council, in g r a n t i n g a c h a r t e r t o a c o m p a n y , m a y a l s o i m p o s e r e s t r i c t i o n s w h i c h h a v e a b e a r i n g on t h e p o l i c y o f control.

The

example

I

am

selecting

is p e r h a p s

individual a little ex-

t r e m e , b u t it s h o u l d s e r v e t o i l l u s t r a t e t h e p o w e r s o f t h e city g o v e r n m e n t in this d i r e c t i o n . the city council of U m e â , the slender m a j o r i t y o f

A c c o r d i n g to reports,

in

1923

in t h e c o u n t y o f V ä s t e r b o t t e n ,

fifteen

to f o u r t e e n i m p o s e d t h e

by fol-

l o w i n g restrictions as conditions to pursuing the liquor trade w i t h i n its j u r i s d i c t i o n : 14 Aktiebolaget Göteborgssystemets Styrelses och Revisorers Berättelser, 1930, p. 15. In translating these clauses, I have followed the text fairly closely. Some of the provisions, however, are paraphrased and condensed.

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maximum allotment of one liter of spirits a month

ÇI and one

liter heavy wine a week. 2 . Pass books issued only to men over twenty-six years of age and to women over thirty and self-supporting. 3 . N o pass books issued to persons w h o receive charity, w h o

are

guilty of nonsupport in any w a y , w h o are in arrears on taxes in any of the last three years, or to soldiers living in quarters. 4. N o retail sales on Saturdays or days before holidays, or from the Wednesday

preceding to the Wednesday

following Easter, or

from

December 2 2 to J a n u a r y 3 . 5 . N o service trade during the period of the charter. 6. T h e retail trade limited to one place of business. 15

W h a t a g o v e r n m e n t a l unit m a y exclude, it m a y admit on its own terms, and this city imposed severe conditions. B u t time has a healing effect, and during the last decade even U m e â has m e l l o w e d s o m e w h a t and relented in its regulations. T h i s reconciliation of local communal regulations with a system of national control has not been accomplished without d o i n g some violence to u n i f o r m i t y and reason. T h e hundred and nineteen system companies e n j o y i n g a m o n o p o l y of the retail t r a d e in spirits and wine are not m e r e l y local units, but serve as agencies in a coordinated national system. T h e b o a r d of control has districted the w h o l e country a n d assigned a t e r r i t o r y to each of these systems, an a r e a within which the company has a monopoly of the t r a d e and which it is o b l i g a t e d to serve. D e s p i t e the preponderance of communes in which the liquor t r a d e has been f o r b i d d e n by local option, e v e r y qualified person is entitled to a p e r m i t to purchase at retail f o r home consumption. B u t it is the system c o m p a n y which, within the statutory limitations, fixes the qualifications f o r a permit and which determines, within the l a w , the amounts which the permit entitles one to buy. A n d the company is restricted by regulations imposed by the local city council which a p p r o v e s its charter. T h e r e is where the shoe is apt to pinch. T h e system company on an a v e r a g e serves a population in excess of fifty 15

Tidsirift

for Systembolagen,

Jan., 1924.

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thousand. I t may have its charter by the grace of a city council, and maintain its place of business in a commune with a population relatively small in proportion to that of the district which it serves. Still this city council in approving the charter may determine the nature and scope of the company's activities, the qualifications f o r and limitations of permits, the number of retail and serving places, and so on. T h e company, within its statutory and charter limitations, may impose additional restrictions. T h e s e restraints apply not only to the commune accepting the charter, but to the entire district over which the company has a monopoly. If you live in the commune where the company is chartered, you can of course participate in the election of city councilmen and thus indirectly exert political pressure to secure the sort of liquor regulations you desire. But there is little you can do about it, legally or politically, if you reside in the district outside of the chartering municipality. You may profess a four-liter-a-month capacity, but if a city council, like that of U m e â , insists on a one-liter maximum, you are bound by its decision. Your permit is issued by the U m e â company, and you are restricted accordingly. T h e restrictions apply as long as you are a resident in the territory over which the U m e â company has jurisdiction. If it is more convenient f o r you to purchase your supplies in another jurisdiction, such an arrangement can be m a d e by taking the matter up with the two companies concerned, but you cannot increase your allotment in this manner. T h i s is fixed by your home company, and will be observed by any other system which might accord you the privilege of permitting you to make your purchases at its stores. T h e only way you can get away f r o m your local restrictions is by a legitimate change of residence, or by convincing the board of control that your particular neighborhood should be assigned to another district. T h e latter would probably be more difficult than the former. T h i s peculiar application of local autonomy, which extends communal and company regulations over a wide area outside the limits of the municipality itself, may result in restrictions

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which n o t only v i o l a t e established principles of municipal h o m e rule, but which a p p e a r unreasonable a n d discriminatory when a p p l i e d to individuals. A retail liquor s t o r e o r a serving place m a y not be o p e r a t e d in any c o m m u n e w i t h o u t its consent, b u t if a municipality should desire such establishments, u n d e r the p r e s e n t o r d e r it could p r o c u r e t h e m only by an a p p e a l t o the system company, and the c o m p a n y by the t e r m s of its c h a r t e r , d i c t a t e d by a n o t h e r commune, m i g h t be r e s t r a i n e d f r o m compliance with t h e request. Likewise, in its individual application, the plan a p p e a r s u n r e a s o n a b l e . D i s t r i c t s a r e laid out with a view to administ r a t i v e efficiency, convenience to the clientele, and a p p o r t i o n m e n t of t h e t r a d e p r o p o r t i o n a l l y a m o n g the various companies. D i s t r i c t s a r e b o u n d e d by rivers, r o a d s , or i m a g i n a r y lines. Y o u r " h o m e c o m p a n y " is d e t e r m i n e d by the side of t h e line on which you h a p p e n to reside. T h e companies m a y h a v e different r e g u l a t i o n s with r e f e r e n c e t o your status. If you live on the south side of the line, you m i g h t be entitled to t h r e e liters a m o n t h , while if you reside on t h e n o r t h side you would h a v e t o be satisfied with two. O r the age at which the p e r m i t is g r a n t e d m i g h t v a r y in the two districts. O n e comp a n y m i g h t issue a p e r m i t at the age of twenty-three, while the o t h e r would insist on twenty-five, and your m a n n e r of celeb r a t i n g y o u r t w e n t y - t h i r d and t w e n t y - f o u r t h b i r t h d a y s would be conditioned by t h e side of the r o a d on which you chance t o dwell. But in p o i n t i n g out the possible anomalies of the companydistrict m e t h o d , I realize t h a t I am indulging a legalistic h a b i t and an A m e r i c a n weakness f o r p u r s u i n g a t h i n g to its u l t i m a t e logical conclusion. Swedish liquor regulations in general, and the plan of individual control in p a r t i c u l a r , are neither ultim a t e n o r logical. P e r h a p s t h a t explains the success of the system. H u m a n activities a r e seldom logical, but a r e conditioned by a m y r i a d of a p p a r e n t l y u n r e l a t e d factors, and by r a t i o n a l i z a t i o n we supply the logic. T h e system c o m p a n y m o n o p o l y a n d individual control a r e the result of expediency r a t h e r t h a n logic, and t h e p r a g m a t i c sanction, r a t h e r t h a n

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the categorical imperative, serves as a test of their validity. And, when we view the operation of the system as a whole, we find few glaring examples of varying company regulations or evidences of recalcitrant localities arbitrarily fitted into a district and subjected to s t a n d a r d s imposed by another commune. T h e variations in quantity allotments apparently are regional and reflect regional s t a n d a r d s . N o r t h e r n Sweden and Bergslagen are dryer than the rest of the country, and one would naturally expect to see this aridity reflected in a more limited allotment. Regional variations may result in a disparity between individuals occupying a similar personal and social status, if they live in different areas. But regional attitudes differ and can find expression only by doing violence to uniformity. T h e trend, however, appears to be in the direction of uniformity. T h e b o a r d of control is exerting a standardizing influence. T h e m o r e straight-laced companies are yielding and the more liberal ones are tightening up a bit. But regardless of their differences in maximum allotments, all have adopted the plan of individual control and seek to limit a person's purchases to what they consider his reasonable requirements. I have mentioned disparity of allotments a m o n g individuals in similar circumstances, who happen to reside in different company jurisdictions. T o guard against being misleading, I should add that, within the same company jurisdiction, whatever variations exist a m o n g people of the same class are the result of oversight or e r r o r s of judgment, r a t h e r than premeditated discrimination. H e r e an attempt is made to pass upon the merits of each individual case, and I am convinced it is an honest attempt. T h e result is that, ^s a rule, people in similar circumstances with reference to age, sex, domestic status, etc., are allotted similar permits. M i s t a k e s are unavoidable in handling thousands of applications, but they are unintentional e r r o r s and are corrected when brought to the attention of the management. A system company cannot play favorites. T h a t would undermine public confidence and jeopardize the whole scheme of individual control. A system com-

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pany is constantly subjected to individual pressure in the f o r m of pleas f o r permits, increased allotments, extras, and reinstatement of privileges. It must be firm, but it must also be f a i r . Firmness and fairness are the sine qua non of individual control. H o w does the plan actually o p e r a t e ? P e r h a p s t h a t question can be answered more satisfactorily by the use of an illustration than by a more abstract explanation. L e t us take a typical case. L e t us say that Elof Svensson has finally reached his twenty-fifth birthday, and t h a t this is the age when the system company of his district issues a permit. Elof is apt to want a permit. H e may have no desire f o r liquor. But he may feel that he now has a right to the permit and he wants it. T h a t right is his by virtue of his having lived soberly and respectably to the m a t u r e age of one score and five. F u r t h e r m o r e , the other young men in his circle have permits. It is a sort of badge of honor, a symbol of fullblown manhood, a farewell to adolescence and the paternalism which crabbed age assumes t o w a r d fervent youth. H e has already attained his majority and his franchise. 1 8 H e is now qualified to demand the deference accorded to maturity, namely, the recognition of ability to handle liquor with justice to himself and safety to his neighbors. T h e procedure in applying f o r a pass book is quite simple. H e r r Svensson goes to his local system and secures an application blank, which he is asked to fill out himself. In this application, he formally asks f o r a pass book permitting him to purchase spirits and wine at one of the company's retail stores. H e is required to give his full name, date and place of birth, occupation and place of employment, residence and post-office address, the parish in which he is registered, together with a statement of how long he has been registered there and where he was last registered b e f o r e coming there. H e must state whether he has ever received a pass book f r o m this company or f r o m some other system, whether he is mar1β Swedes, men and women, attain their m a j o r i t y at twenty-one, and at twentythree are given the franchise in p a r l i a m e n t a r y and communal elections.

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ried, maintains a household, number of persons in the household, and the names, ages, and b i r t h d a y s of all persons in the household over twenty-one y e a r s of age. H e must state whether he rents his residence directly f r o m the owner and, if he is rooming or sharing his abode with others, he must give the names and ages of those occupying the premises. H e must also give the amount of taxes paid and state whether he is in a r r e a r s during the last three years. F i n a l l y , H e r r Svensson is asked to give an estimate of the monthly quantity of spirits which he considers really necessary in his case. T h i s last bit of i n f o r m a t i o n is p r o b a b l y of little value. O n e can never buy more than his allotment, but he can always buy less. F o r this reason, the applicant is apt to overestimate his needs and the company discounts his statement accordingly. H e r r Svensson gives his telephone number, dates the application, signs it, leaves it with the company, and awaits developments. 1 7 H a v i n g received the application, the proper functionary in the company begins a thorough investigation of H e r r Svensson. N o t only does he check the accuracy of the statements contained in the application, but he seeks i n f o r m a t i o n on any matter which would h a v e a bearing on whether Svensson should be given a pass book, or which would influence the quantity of the monthly allotment. T h i s is a relatively easy task in the smaller rural companies of southern Sweden, where the m a n a g e r of the system is personally acquainted with most of the people of his district. B u t it is not so simple where the company serves a populous metropolitan district or where it has been assigned a vast, sparsely settled a r e a , 17 The application blank requirements which I have mentioned are taken from the Stockholm system company. This company has had a longer period of development and serves a larger and a more cosmopolitan clientele than any of the other systems. Consequently, its requirements may be more specific than some of the other companies, but they may be taken as illustrative. The law merely requires a written application giving the full name, date of birth, occupation, residence and parish registration. See Rff., ch. 4, sec. 29. The legal requirements, however, have been supplemented by recommendations of the board of control, and some of the stipulations which I have mentioned are in conformity with these recommendations. See Kungl. Kontrollstyreliens Cirkulär Nr 71.

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interspersed with a number of towns and villages. H e r e the functionary of the company cannot be expected to know its clientele personally, and most resort to the p r o p e r responsible agencies f o r the information he desires. H e can quickly reach these by telephone or through the mails, and he gets in touch with such sources of information as the police, local officials, parish functionaries, clergymen, school-masters, or the communal supervisors of temperance. T h e whole procedure is i n f o r m a l and direct. T h e company is merely anxious to get information about the applicant in order to make an equitable a d j u s t m e n t of his case. H a v i n g assembled the necessary data, the company either rejects his application or issues a pass book entitling him to such monthly allotment as it considers his case to w a r r a n t . B e f o r e rejecting the application, the company may summon the applicant to h e a r his side of the matter, and he may, of course, always appear on his own initiative and present his plea. H e can always get a hearing and, if he does not succeed in securing an allotment, he can at least experience the relief of airing a grievance. L e t us assume t h a t Elof is a man of good repute. U n d e r such conditions, he would naturally be granted a permit, which would be delivered to him without any formalities and without any costs. H e would be notified how much liquor this permit would entitle him to purchase every month, and the retail store to which he is assigned would also be acquainted with the extent of his allotment. 1 8 T h e size of the allotment would be determined by the company's estimate of H e r r Svensson's reasonable needs. Since he is young, he would be given a limited allotment, but his permit would be more liberal if he were the head of a household, because under those conditions his needs would be greater. H e might be given the 18

C h a n c e s of e r r o r and m i s u n d e r s t a n d i n g a r e a l m o s t w h o l l y e l i m i n a t e d by a n efficient system of r e c o r d s . T h e a p p l i c a n t is g i v e n a n u m b e r w h e n t h e p e r m i t is g r a n t e d a n d t h i s n u m b e r a p p e a r s on his p a s s book. T h e r e t a i l s t o r e is f u r n i s h e d with a c a r d c o n t a i n i n g t h e s i g n a t u r e of the a p p l i c a n t , the n u m b e r of his p a s s book, a s t a t e m e n t of his m o n t h l y a l l o t m e n t , a n d a n y o t h e r r e s t r i c t i o n s w h i c h t h e c o m p a n y m a y h a v e i m p o s e d . A c o m p l e t e r e c o r d of the a p p l i c a n t is kept in t h e c e n t r a l files of the c o m p a n y .

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maximum if he h a d stepped into his f a t h e r ' s shoes as the recognized head of a sizable domestic establishment. W h a t ever the quantity of the allotment, he can rest assured t h a t it has been decided a f t e r a f a i r consideration of his case and that others in similar circumstances are given the same treatment. Provided with a pass book, Elof is now privileged to patronize the local retail store to which he has been assigned and where a record of his allotment is on file. H e may appear in person and make his purchases, or he may send someone else. If he chooses the latter, he must provide the person he sends with a signed o r d e r i n f o r m i n g the store that he has been delegated to make the purchase. T h i s precaution is necessary not only to guard against an indiscriminate sale of intoxicants, but to s a f e g u a r d the interests of E l o f . It might prove r a t h e r disconcerting f o r him to appear at the store for his monthly supplies, and then be informed that someone else had already taken out the allotment. W r i t t e n orders are always required, and even these are not encouraged, because it is believed t h a t the interests of temperance will be served best when every customer appears in person and makes his own selection. T h e stores are usually located on a side street and are inconspicuous. A modest sign i n f o r m s you that this is the system company's store, number so and so. T h e r e is no advertising, no soliciting. A Swedish liquor store occupies a unique position in the field of business enterprise in that it is one place where you are not asked to buy, and where the success of the business is measured, not by increased, but by decreased sales. Some companies, in order to remove temptation, even require t h a t all bottles on the shelves must be w r a p p e d in ordinary wrapping paper. Such is the establishment where H e r r Svensson goes f o r his monthly rations. H i s pass book resembles a check book; each page contains his number and the statement, " I hereby order — liters of spirits and — bottles of wine." Elof fills in the necessary blanks, signs the order, and presents it to an efficient

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y o u n g lady in a cashier's c a g e w h o g r e e t s him, glances at the o r d e r , and c o m p a r e s it with her records to m a k e sure that his ambition is not b i g g e r than his allotment. She finds no irregularities, and a p p r o v e s the o r d e r . H e can now m a k e his selection f r o m the c o m p a n y ' s offerings, consisting of some 6 0 0 different v a r i e t i e s of spirits and p e r h a p s an equally l a r g e assortment of wines. I f none of these satisfies his discriminating taste, he can place an o r d e r with the store f o r his f a v o r i t e b r a n d , pay f o r it in a d v a n c e , and the c o m p a n y will o r d e r it f o r him and c h a r g e it a g a i n s t his monthly allotment when it a r r i v e s . H a v i n g m a d e his purchases, he p a y s the cashier, and can take his w a r e s with him, or, f o r a small service c h a r g e , the store will h a v e them d e l i v e r e d . T h e system of individual control seems complicated, but it offers f e w inconveniences to the customer. H e simply g o e s to his store, signs his o r d e r , and m a k e s his purchases. F o r m e r l y it w a s a common practice to dole out the allotment at different intervals d u r i n g the month, but now, except in unusual cases, the holder of a permit can o r d i n a r i l y buy his entire monthly allotment on one trip. 1 9 In sparsely settled regions, he mails his o r d e r to the company, and the supply is sent to his nearest r a i l w a y station. 2 0 A s l o n g as the customer b e h a v e s h i m s e l f , he will not be b o t h e r e d by the system company. I f he ever w a n t s an extra allotment f o r a special occasion, such as a w e d d i n g , baptism, b i r t h d a y , or C h r i s t m a s kalas, he must of course ask the company f o r it. I f he feels his monthly allotment is too m e a g e r to meet his reasonable needs, he m a y petition the company f o r an increase. T h e g o a l of all the system companies is to reduce their monthly sales, and increases will be p e r m i t t e d only upon the reasonable request of the applicant. H o w e v e r , the system c o m p a n y is not t h r o u g h with E l o f Svensson when he has m a d e his monthly purchases. I t is not a mere agency f o r dispensing intoxicants; it is c h a r g e d with 19

T h e different company regulations m a y of course v a r y on this. T h e r e is a demand in these areas to permit the use of the parcel post f o r delivery of the orders, but the postal service has not been extended to include this function. 20

ΙΟΟ

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the duty of conducting the t r a d e in the interests of temperance, and it takes its responsibilities seriously. A f t e r Elof has transacted his business at its store, the company receives a statement of his purchases and this is closely scrutinized by the division or person in charge of the control. Usually there is nothing of interest to attract the attention of the functionary who scrutinizes the records of individual sales. But let us suppose that Elof is an exception. L e t us suppose that the records show that his monthly allotment is two liters of spirits and that on the first day of the month he a p p e a r e d and purchased a liter of brännvin; two days later he bought the o t h e r ; and a f t e r that, every o t h e r day he stocked up with heavy wine. T h e functionary naturally becomes suspicious. T h e same thing happens again next month and H e r r Svensson gets a telephone call f r o m the company, asking if H e r r Svensson could drop in and explain his actions. P e r h a p s he can explain his purchases satisfactorily. Company may have arrived unexpectedly with the a t t e n d a n t drain on hospitality. T h e r e may have been a birthday, a betrothal, or any of the thousand ills to which one's social position is heir. A satisfactory explanation will allay suspicion, or Elof may come clean, admit he has had his exhilarating moments, and promise to be temperate in the future, in which event he may be given another chance. But the company may assume the responsibility of rationing him a little more closely. H i s allotment of spirits may be reduced, or he may be permitted to purchase only one liter the first week of the month and another liter the third week, and his supply of wine may be limited and apportioned. 2 1 But suppose the case against H e r r Svensson is of a more serious nature. Records of police cases involving drunkenness are sent in daily to the system company, and suppose the name of Elof Svensson is on the list. T h a t places a serious blot on his record. T h e " P " m a r k on the record of an applicant for, or possessor of, a pass book inevitably makes him a suspicious 21

Ordinarily, no limit is placed on the amount of wine, light or heavy, which the holder of a pass book may purchase each month. But the company can make exceptions to this rule.

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ΙΟΙ

character. H o w e v e r , the company is fair and reasonable. T h e person involved may present his side and there may be extenuating circumstances. All of the facts and circumstances will be considered and then the company acts according to its best judgment. If it is a question of a person with a police record applying f o r a permit, the company will usually hold up the application f o r a period of probation during which the applicant is placed on his good behavior and then he may be given a limited allotment and his purchases carefully scrutinized. T h e r e are various ways of dealing with a person who has a pass book and has been convicted of drunkenness. T h e permit may be revoked f o r a period of time, the allotment may be reduced, or the monthly rations may be split up into fixed maxima which may be purchased at stated periods, such as a half liter a week or a liter every two weeks. Such regulations vary among the different companies, but in all of them the severity of the restrictions depends on the seriousness of the offense. T h e repeater is m o r e sternly dealt with than the first-timer. T h e person whose drunkenness has been traced to illegal liquor receives harsher t r e a t m e n t than one who has become intoxicated in a legitimate manner and by legitimate instrumentalities. T h e decisions which the system makes in cases of this sort or not intended as penalties. Punishment belongs to the police and the courts. T h e company orders are merely intended as regulations to conduct the liquor traffic in the interests of temperance. In controlling the permit, the company wields a p o w e r f u l club, but it uses this weapon justly, mercifully, and with an eye to individual and social consequences. A summary revocation of a pass book may drive a person to the illicit trade, whereas a system of controlled rationing may prove remedial. Revocation may not be the method of handling the case where a pass book holder has been convicted of drunkenness acquired f r o m bootleg liquor. H e may be continued on a limited and distributed allotment, if he gives his word to avoid the illegal trade. Different company managers have assured me that such promises are usually kept.

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T h e efficacy of company control is due in a l a r g e measure to the efficiency of the Swedish police records. T h e Stockholm police records on drunkenness antedate the Bratt System. But the police are not the only agency furnishing information regarding the status and conduct of Elof Svensson. Local supervisors of the poor are ready to inform the company whether he is a recipient of charity or guilty of nonsupport. Communal officials will furnish information regarding his arrears in tax payments. Private citizens who have his interests and the w e l f a r e of the community at heart, such as the local schoolmaster, the pastor, or Elof's employer, may report to the company if he strays too f a r from the paths of temperance. Finally, there are the supervisors of temperance whose official duty is to watch over the matrimonial adventure of Elof if he takes the daughter of the vine to spouse. T h e reports from all these sources go into the files, with the result that the company has a pretty fair record of the convivial proclivities of H e r r Svensson. 22 And now we must say good-bye to our friend Elof and thank him for serving as an illustration of the personal application of the system of individual control. Individual control cannot be properly appreciated without considering its personal application to thousands of Elofs, Svens, Axels, and Johanns; but we must bear in mind that it is a plan of liquor regulation which is national in scope and which cannot be duly evaluated without at least a cursory survey of its functioning as a regulatory system. Let us turn to its application on a national scale. 22 Some of the companies use the conference method of settling difficult cases which they feel should not be left to the decision of one person. Heads of departments, or reliable employees connected with the work of control, assemble and discuss the case. Members of the board of directors of the company participate in a conference of this sort if the case is very important. In some systems the company manager shoulders the responsibility and decides all cases.

VI INDIVIDUAL C O N T R O L — S C O P E APPLICATION

AND

ONE of the first questions provoked by a discussion of the plan of individual control is: Does not a method of liquor regulation, which necessitates an individual check of every real and prospective permit holder, entail a tremendous amount of labor? It does. T h e sponsors of the plan, however, justify the work involved on the ground that there are no short cuts to an adequate system of control which aims at securing a maximum of social protection at a minimum of individual sacrifice. A company serving a populous metropolitan area such as Stockholm will require a closer check than is necessary in smaller systems, where the clientele is personally known. F o r this reason the reports of the Stockholm company tend to m a g n i f y the task. But the reports of this company tell the story and are at least illustrative. T h e records of the Stockholm company include pass-book holders, f o r m e r pass-book holders, applicants, and persons whose association with pass-book holders or applicants is such as to warrant including them. T h i s makes a formidable a r r a y of names and information. T h e number of pass books outstanding in that company at the close of 1 9 3 0 was 1 8 6 , 0 9 8 . T h e central register of the company, however, contained approximately 6 5 0 , 0 0 0 names. In the company files was assembled pertinent information on more than 3 0 0 , 0 0 0 persons. In that year, the company received 1 8 5 , 4 1 4 and sent out 226,200 written communications. T h e special department f o r oral communications recorded no less than 8 2 , 2 0 1 conversations. 1 T h e s e communications did not include the countless 1

T h e s e figures a r e t a k e n f r o m the c o m p a n y ' s a n n u a l r e p o r t f o r 1 9 3 0 , pp. 29—32. F o r t u n a t e l y , the r e p o r t c o n t a i n s a d e t a i l e d list of the s u b j e c t m a t t e r of the o r a l i n t e r v i e w s , a n d these shed some l i g h t on the w o r k of a s y s t e m c o m p a n y . O f the

104

SCOPE A N D

APPLICATION

desultory calls and telephone conversations, of which no record is made. W h a t the Stockholm company does in a large way, the Ronneby system does on a smaller scale. T h e difference is one of extent, rather than of kind. Individual control necessitates a personal check. T h e most intimate f a c t s of a person's private l i f e may sometimes h a v e a direct bearing on his status with reference to securing a pass book. T h e company has no desire to be p r y i n g ; it remains d e t a c h e d ; its records are secret. But facts are facts, and must be uncovered in order to make a judicious disposition of each individual case. T h e result is that the 1 1 9 system companies h a v e assembled one of the most extensive and invaluable sources of sociological data in human history. T h e i r files g o back f o r nearly t w o decades, and contain accurate information on the social and economic status of millions. T h e plan of individual control has been subjected to serious criticism because of the amount of l a b o r and expense which it entails. If one visits the Stockholm system, he will be impressed by the size of the establishment and the number of the personnel. But one must not f o r g e t that the Stockholm company handles nearly 2 0 0 , 0 0 0 individual permits, conducts 3 3 retail liquor stores, besides controlling some hundred restaurant serving rights, more than a f o u r t h of which it exercises itself in restaurants operated by a subsidiary corporation. N a t u r a l l y one would expect a l a r g e establishment in the conduct of a business of such dimensions. T h e retail stores would have to be maintained under any system of control and, since there is an o v e r l a p p i n g of functions, it is impossible to state 82,201 interviews, 3,343 dealt with applications f o r a pass book ; 602 w e r e pleas f o r reinstatement, to permit privileges v h e r e the pass book had been revoked ; 2,720 w e r e petitions f o r an increased allotment; 20,589 w e r e requests f o r extras; 12,327 were requests from non-pass-book holders for the privilege of procuring spirits f o r a special occasion. T h e r e w e r e 9,782 interviews provoked by the presentation of exceptions to the rulings in fixing allotments; 7,183, by requests to purchase at the company stores on pass books granted by another system ; 4,745, by questions r e g a r d i n g the disposition of matters under consideration; 1 1 , 7 5 3 , by a desire to supplement information a l r e a d y presented; and 9,i57, by miscellaneous matters.

SCOPE AND

APPLICATION

105

a c c u r a t e l y j u s t h o w m u c h a d d i t i o n a l e x p e n s e is e n t a i l e d by the p l a n o f i n d i v i d u a l c o n t r o l . Suffice it t o s a y t h a t the s a l a r y costs o f the personnel e m p l o y e d in the s t o r e s a r e a p p r o x i m a t e l y the s a m e as those of the d i v i s i o n o f c o n t r o l , plus the a d d i t i o n a l expense o f controlling p e r m i t s . In e i t h e r case, these costs a r e less than 1 , 0 0 0 , 0 0 0 k r o n o r a n n u a l l y a n d the y e a r l y r e c e i p t s a n d e x p e n d i t u r e s of the c o m p a n y a r e n e a r l y 4 4 , 0 0 0 , 0 0 0 kronor.2 A m o r e u n d e r s t a n d a b l e account o f the r e l a t i v e e x p e n s e a n d l a b o r i n v o l v e d in i n d i v i d u a l c o n t r o l m a y b e h a d f r o m a s u r v e y of some o f the s m a l l e r c o m p a n i e s . T h e s y s t e m in V i s b y , f a m o u s as the city of ruins and r o s e s , s e r v e s a district which c o m p r i s e s the entire i s l a n d o f G o t t l a n d a n d c a t e r s t o m o r e than 1 0 , 0 0 0 pass-book h o l d e r s . T h e e n t i r e p e r s o n n e l o f the c o m p a n y , including the m a n a g e r , in 1 9 3 1 consisted of ten. T o t r a n s l a t e and p a r a p h r a s e the l a n g u a g e o f the m a n a g e r , " F o u r , including the m a n a g e r o f the s t o r e , the b o o k k e e p e r , a n d t w o o t h e r s a r e putting it o u t ; six, including m y s e l f , a r e h o l d i n g t h e m b a c k . " T h i s m a n a g e r , w i t h the a s s i s t a n c e o f f o u r office g i r l s , s t a r t e d and p e r f e c t e d the s y s t e m o f p a s s b o o k s in V i s b y in 1 9 1 4 , s h o r t l y a f t e r D o c t o r B r a t t h a d begun his e x p e r i m e n t in S t o c k h o l m . T h e c o m p a n y o p e r a t e s t w o r e s t a u r a n t s , b e s i d e s letting out liquor r i g h t s to t w o p r i v a t e l y o w n e d hotels, w i t h the result t h a t the c e n t r a l office cannot g i v e its entire time to i n d i v i d u a l control. B u t g r a n t i n g t h a t the m a n a g e r a n d his competent office f o r c e o f five d e v o t e all t h e i r e n e r g y to indiv i d u a l c o n t r o l , with 1 0 , 4 0 0 p a s s b o o k s in the district, it m e a n s that f o r e v e r y person in the office t h e r e is a check on m o r e than 1 , 7 0 0 p e r m i t s . V i s b y is not exceptional in this respect. In the small R o n neby c o m p a n y , in the s a m e y e a r , f o u r w e r e " p u t t i n g it o u t " in the s t o r e and three w e r e " h o l d i n g it b a c k " in the office. T h e office f o r c e of three, m a n a g e r a n d t w o o t h e r s , h a n d l e d a p p r o x i m a t e l y 6 , 0 0 0 permits, o r an a v e r a g e o f 2 , 0 0 0 each. I could cite o t h e r companies, but the ones g i v e n m a y be t a k e n as r e p r e sentative o f the s m a l l e r s y s t e m s . A s a c o n s e r v a t i v e e s t i m a t e , 2

Report f o r 1930, pp. 17 ff.

ιο6

SCOPE AND

APPLICATION

I s h o u l d say that on an a v e r a g e t h e r e a r e a b o u t 1 , 5 0 0 p e r m i t s f o r e v e r y person e m p l o y e d in the c o n t r o l l i n g office, a n d this unit also s e r v e s as the central office of the s y s t e m and is busy with o t h e r m a t t e r s . E x c e s s i v e e x p e n d i t u r e of l a b o r and m o n e y is neither a w e i g h t y nor a v a l i d criticism. B e f o r e r e a s o n a b l e men, the p l a n must s t a n d o r f a l l on o t h e r g r o u n d s than t h o s e o f o p e r a t i n g costs. O n e m a y not be convinced t h a t i n d i v i d u a l c o n t r o l is n e c e s s a r y in o r d e r to conduct the l i q u o r t r a f f i c in the interests o f public w e l f a r e , but, if it is, the costs a r e s m a l l . C e r t a i n l y the system c o m p a r e s f a v o r a b l y w i t h the economic w a s t e in the distributing costs o f a p r i v a t e l y o p e r a t e d l i q u o r t r a f f i c with its distillers, w h o l e s a l e r s , j o b b e r s , s a l e s m e n , a n d r e t a i l e r s , and it is a c o u r a g e o u s e f f o r t at i n d i v i d u a l a n d social protection. W h e n we study the a p p l i c a t i o n o f i n d i v i d u a l c o n t r o l to s o m e p a r t i c u l a r consumer, o r when w e v i e w the f u n c t i o n i n g o f a certain system c o m p a n y , w e a r e a p t to get i s o l a t e d a n d disj o i n t e d impressions. W e must b e a r in m i n d t h a t the p l a n is the distinctive f e a t u r e of a n a t i o n a l p r o g r a m o f liquor c o n t r o l . O n l y by v i e w i n g its o p e r a t i o n on a n a t i o n - w i d e scale can w e g e t a true p e r s p e c t i v e o f its social significance. T h e total n u m b e r o f p a s s b o o k s o u t s t a n d i n g a t the end o f 1 9 3 0 w a s ι , 2 2 2 , 9 6 c ) · 3 O f this number, 1 , 0 9 6 , 9 0 6 w e r e issued to men and 1 2 6 , 0 6 3 to women. 4 T h e 1 9 3 0 t o t a l s s h o w an i n c r e a s e of 3 7 , 5 3 2 o v e r those of the p r e v i o u s y e a r . This increase is slightly in excess o f the a v e r a g e y e a r l y a u g m e n t a tion d u r i n g the d e c a d e f r o m 1 9 2 0 to 1 9 3 0 . A t the end o f J u n e , 1 9 2 0 , a f e w d a y s b e f o r e individual c o n t r o l w a s p r o c l a i m e d , the number o f p a s s b o o k s w a s 1 , 0 5 1 , 5 9 5 . B y the end o f 1 9 2 2 , this h a d d e c r e a s e d slightly to 1 , 0 1 1 , 6 7 9 . Since then 8

T h e s e a n d the f o l l o w i n g pass-book statistics a r e t a k e n f r o m the a n n u a l r e p o r t of the b o a r d of control f o r the y e a r 1 9 3 0 , Ruidrycksförsäljningen, pp. 37—46. T h e figures f o r 1 9 3 0 should s e r v e to f u r n i s h an i d e a of the extent of the a p p l i c a tion of i n d i v i d u a l control. 4 T h e figures w h i c h I am g i v i n g a r e f o r pass books f o r the p u r c h a s e of i n t o x i c a n t s of all kinds, a n d do not include the p e r m i t s f o r w i n e o n l y . A t the e n d of 1 9 3 0 , these w i n e p e r m i t s , or " w i n e b o o k s , " totalled 383, of w h i c h 1 9 7 w e r e h e l d by w o m e n .

SCOPE A N D

APPLICATION

there has been a m o d e r a t e and steady increase, up t o 1933." T h i s e n l a r g e m e n t in the number o f pass b o o k s m a y be accounted f o r p a r t l y b y the g r o w t h of p o p u l a t i o n and p a r t l y by a l i b e r a l i z i n g tendency in the g r a n t i n g of permits. D u r i n g the p e r i o d f r o m 1 9 2 5 to 1 9 3 0 inclusive, the t o t a l number of p a s s - b o o k h o l d e r s increased f r o m 1 , 0 7 6 , 7 8 0 to 1 , 2 2 2 , 9 6 9 , and the p o p u l a t i o n o f the country f r o m 6 , 0 5 3 , 5 6 2 to 6 , 1 4 1 , 5 7 1 . In o t h e r w o r d s , w h i l e the population w a s a u g m e n t e d by 88,009, t h e r e w a s an increase o f 1 4 6 , 1 8 9 in the number o f p e r m i t h o l d e r s . T h i s disparity in accession w o u l d indicate a m o r e l i b e r a l distribution of permits, a supposition w h i c h is confirmed b y the f o l l o w i n g figures, g i v i n g the p e r c e n t a g e of pass-book h o l d e r s to the total population at the close of each y e a r f r o m 1 9 2 0 t o 1930.® Year Percent

1920 1921 17.79 ' 7 · 4 '

1922 1923 1924 16.90 16.94 >7-3 2

1925 1926 1927 1928 1929 >7-79 18.14 >8.50 18.87 ' 9 - Î 7

1930 '9-91

A p p r o x i m a t e l y one person out of five h a s a pass b o o k , but t h e r e is c o n s i d e r a b l e v a r i a t i o n in the p e r c e n t a g e s of p e r m i t h o l d e r s in different sections of the k i n g d o m . A t the close of 5 T h e n u m b e r of p a s s books c o n t i n u e d to i n c r e a s e until D e c e m b e r , 1932, w h e n it r e a c h e d 1,265,428. A d e c r e a s e b e g a n w i t h 1933, a n d b y t h e end of S e p t e m b e r of t h a t y e a r , t h e figure w a s 1,254,546. T h i s decline m a y be accounted f o r by b a d e c o n o m i c c o n d i t i o n s and i n c r e a s e d l i q u o r prices. T h e f a l l of 1933 w i t n e s s e d an i n c r e a s e w h i c h c o n t i n u e d d u r i n g 1934, a n d , by the first of O c t o b e r , 1934, t h e n u m b e r h a d r e a c h e d 1,269,498. 8 In a t t e m p t i n g t o c o r r e l a t e t h e g r o w t h of p o p u l a t i o n w i t h t h e i n c r e a s e in t h e n u m b e r of p a s s books, t h e r e is a f a c t o r of e r r o r w h i c h m u s t b e t a k e n into c o n s i d e r a t i o n , n a m e l y , the i n c r e a s e d y e a r l y influx of tourists. T h e l e a d i n g S w e d i s h t o u r i s t o r g a n , Svemk Turisttidning, f o r A p r i l 15, 1931, lists the n u m b e r of f o r e i g n e r s t o u r i n g to Stockholm, f r o m a n d i n c l u d i n g 1926 to 1930, a n d f u r n i s h e s t h e f o l l o w i n g p e r t i n e n t i n f o r m a t i o n : 40,651 tourists f o r 1926; 44,938

for

1927; 48,931 f o r

1928; 55,686 f o r 1929; 73,613 f o r

1930.

The

Stockholm

E x p o s i t i o n in 1930 a t t r a c t e d t h o u s a n d s of o u t s i d e r s to S w e d e n . T h i s f a c t o r w o u l d at least p a r t i a l l y e x p l a i n the i n c r e a s e d c o n s u m p t i o n of i n t o x i c a n t s a n d the i n c r e a s e d a r r e s t s f o r d r u n k e n n e s s in t h a t y e a r , a n d , in a m e a s u r e , w o u l d account f o r the i n c r e a s e in p a s s books, since m a n y of the t o u r i s t s w o u l d s e c u r e these p e r m i t s . A n o t h e r f a c t o r to be c o n s i d e r e d — a n d this is p r o b a b l y m o r e i m p o r t a n t t h a n t h e influx of t o u r i s t s — i s t h e t e n d e n c y t o w a r d p o p u l a t i o n s t a b i l i z a tion. I n S w e d e n , as in the rest of n o r t h w e s t e r n E u r o p e , t h e d e c l i n i n g b i r t h r a t e h a s b e e n especially m a r k e d d u r i n g the p r e s e n t c e n t u r y , w i t h the result t h a t t h e p o p u l a t i o n is b e c o m i n g stabilized a n d a l a r g e r p e r c e n t a g e of the people a r e of the a g e w h e n p a s s books a r e g r a n t e d .

ιο8

SCOPE AND

APPLICATION

1 9 3 0 , these varied f r o m the little company in Nynäshamn, where the figure would indicate that more than 47 percent of the population held pass books, to the sizable system in H a p a randa, where less than 9 percent had permits. T h e regional variations are interesting. T h e area around Stockholm tops the list, with a percentage of 27.65 ;7 northern Sweden, with 1 3 . 9 4 , is the lowest; 8 southern, southwestern, and eastern Sweden are relatively high ; Smâland in the southeastern, and Bergslagen " in the central, part are comparatively low. 10 W h y this difference? Varying degrees of population stabilization, frequency of tourists, and mobility of the population would all have a slight effect. But the principal cause is regional variations in drinking customs, economic conditions, and moral standards. T h e r e are no statutory discriminations on grounds of sex, but company charters and company regulations place special strictures on women. H o w e v e r , the disparity in the relative number of men and women pass-book holders is only partially affected by these restrictions, and is caused mainly by the insistence on one permit per household. Since the husband is at least the nominal head, the permit is usually issued in his name, but if he is untrustworthy, the w i f e may be granted the privilege; and in the event that a woman is the recognized head of a household, she will be accorded privileges not essentially different from those of a man under similar circumstances. T h e discrimination is found in the case of the independent, unattached woman. She is apt to encounter more exacting requirements f o r the procuring of a pass book than would her brother under similar conditions, and her allotments will 7

Including Stockholm, Södertälje, Vaxholm, Sigtuna, and Nynäshamn. D a l a r n e and N o r r l a n d . V ä r m l a n d , N ä r k e and Västmanland. 10 Some of these figures are misleading. T h e excessive percentage of pass books f o r Nynäshamn ¡s caused by the number of non-residents who are permitted to purchase their allotment in that district. T h i s practice would also tend to augment the number of pass books in Stockholm and in other places where people reside in one district and h a v e their w o r k or places of business in another. H o w e v e r , it should not appreciably affect the percentages in different regions. 8

B

SCOPE A N D A P P L I C A T I O N

109

u s u a l l y be m o r e limited. T h e discrimination is justified on the g r o u n d s that a w o m a n uses less i n t o x i c a n t s ; the drinki n g customs a r e such that she needs l e s s ; and if she w e r e g i v e n the s a m e a l l o t m e n t as a m a n , t h e r e w o u l d be an o v e r s u p p l y o f l i q u o r which w o u l d tend to flow into u n c o n t r o l l e d channels. N i n e - t e n t h s of the pass-book h o l d e r s are men. I t m a y be significant, h o w e v e r , t h a t since 1 9 2 0 , when individual c o n t r o l w e n t into effect, t h e r e has been a s l o w but u n i n t e r r u p t e d inc r e a s e in the n u m b e r of w o m e n with p e r m i t s . In that y e a r , o n l y 4 . 7 p e r c e n t of the w o m e n o v e r twenty-five y e a r s of a g e h a d p a s s b o o k s ; but at the close of 1 9 3 0 , the p e r c e n t a g e h a d risen to 6 . 8 . In 1 9 2 0 , 65 percent of the men o v e r twenty-five h a d p e r m i t s ; in 1 9 2 4 , this figure h a d f a l l e n to 6 0 . 4 ; since then it h a s risen a n d at the end of 1 9 3 0 , it r e a c h e d 6 4 . 5 percent. In 1 9 2 0 , the r e l a t i v e p e r c e n t a g e s of pass-book h o l d e r s w e r e 9 2 . 8 men and 7 . 2 w o m e n . B y the close of 1 9 3 0 , they w e r e 8 9 . 7 men and 1 0 . 3 w o m e n . T h e a r d e n t a d v o c a t e of equal liquor r i g h t s will p r o b a b l y not be enthusiastic o v e r the r e p o r t of such s l o w p r o g r e s s . B u t I w o n d e r if the d i s p a r i t y is so a p p a l l i n g as the figures indicate. I a m r e m i n d e d of a S w e d i s h comic strip, in which the m a s t e r of the house laments, " I n the g o o d old d a y s one could buy a m a n ' s d r i n k , a r e a l s n i f t e r w i t h a kick in it. U n d e r this c o n f o u n d e d restriction system m y m o n t h l y a l l o t m e n t is constantly e x h a u s t e d by the f a n c y concoctions w h i c h the w i f e insists on h a v i n g f o r table d e c o r a t i o n s . " A n d thus the s u p r e m a c y of the masculine is c h a l l e n g e d by the t y r a n n y of t e a r s . A l t h o u g h twenty-one is the m i n i m u m r e q u i r e m e n t fixed b y statute, f e w p a s s books a r e issued to p e r s o n s under twenty-five y e a r s o f a g e . A p p r o x i m a t e l y a t h i r d of the companies a r e f o r b i d d e n by their c h a r t e r s to issue p e r m i t s o r sell intoxicants at retail to a p e r s o n u n d e r twenty-five, a n d the c o m p a n y regulations a r e even m o r e restrictive than the c h a r t e r p r o v i s i o n s . A c c o r d i n g to a special s u r v e y of the b o a r d of control, in 1 9 2 7 , 5 3 of the 1 1 9 systems had a d o p t e d twenty-five as the minimum a g e . A t the close o f that y e a r , only 5 , 2 1 5 , o r 0 . 5 1 percent, o f

I IO

SCOPE A N D

APPLICATION

the 1 , 0 1 8 , 9 2 6 male, and only 3 1 , or 0 . 0 3 percent of the 1 0 7 , 2 2 5 f e m a l e , permit holders w e r e under twenty-five. T h e s e figures r e v e a l the relatively negligible number of y o u t h f u l permit holders. T h e twenty-five-year minimum may seem drastic, but if the young man lives at home he may, at least theoretically, participate in his f a t h e r ' s allotment. If he eats in restaurants, he may h a v e spirits and wine with his meals. T h e beer c a f é s are open to him, and he should be able to bide his time until his twenty-fifth birthday without breaking under the strain. W e h a v e noted the annual increase in the number of pass books during the decade f r o m 1 9 2 0 to 1 9 3 0 . Such figures will, of course, indicate an accession in the number of persons who buy intoxicants at retail and, if the same allotment were g r a n t e d by all permits, w e should naturally expect a proportionate increase in the total sales. B u t there are pass books and pass books. A f e w permit the purchase of wine only; others permit the statutory monthly maximum of f o u r liters of spirits, with no limit on wine. It is significant to observe that the rate of increase in restricted pass books has exceeded the enlargement in the total number of permits, with the result that the proportion of maximum allotments has shown a m a r k e d recession and the individual purchase capacity has fallen off. T h e trend in the district served by the Stockholm system is graphically illustrated in the annual report of that company f o r the y e a r 1 9 3 0 . T h i s graph is of interest because it covers the period f r o m 1 9 1 4 , when the permit plan first went into operation, to the end of 1 9 3 0 , and I have taken the liberty of reproducing it in C h a r t I I I . T h e scale at the l e f t illustrates the number of pass books f o r each y e a r and the black portion of each staple shows the yearly number of these permits in which the allotment w a s less than the monthly maximum of f o u r liters. W i t h the exception of two abnormal years, 1 9 1 7 and 1 9 1 8 , when war-time restrictions w e r e applied, there was a steady increase in the number of pass books, and the increase

NUMBER

OF

PASSBOOKS

(in thousands) 200

IÇIt 1915 1916 1917 1915 1919 1920 1921 1921 1923 192t 1925 1926 1927 192« 1929 19»

CHART

I I I . TRENDS IN T H E ALLOTMENTS

NUMBER IN

OF P A S S BOOKS A N D T H E SIZE OF

STOCKHOLM,

I914-3O

112

SCOPE AND

APPLICATION

in the number of restricted permits was more marked than the total accession. 11 Stockholm is not exceptional in this respect. Gothenburg has witnessed a more severe curtailment in the proportion of maximum allotments. T h e trend is marked throughout the kingdom. A t the beginning of 1 9 2 0 , only 19.6 percent of the men and 77.2 percent of the women pass-book holders were allotted less than the legal maximum; by the end of 1 9 3 0 , the figures were 76.9 and 98.9. Classifications based on maximum and less than maximum allotments are too general to furnish a satisfactory account of developments. Chart I V , covering a six-year period ending with the close of 1 9 3 0 , illustrates the total number of pass books extant at the end of each y e a r and the percentage of the total formed respectively by four, three, two, and less than two-liter permits. It is interesting to observe that during this period there was a marked decrease in the percentage of fourliter permits; the proportion of three-liter permits showed a slight increase; the two-liter displayed a decrease; and those of less than two liters increased decidedly. Obviously, a reduction in monthly allotments lowers an individual's purchasing capacity. T h e average individual monthly purchases, however, tend to remain constant. T h e result is that the "buying frequency" (Uttagsfrekvens), or ratio of monthly purchases to purchasing capacity, tends to rise. T h i s is illustrated by the average monthly trend f o r the years covered by the following table : 11

T h e population increase of the city during the period covered w a s approximately 100,000. T h a t factor alone is not an adequate explanation of the increase in permits. But, as in A m e r i c a , this period and the y e a r s immediately preceding it witnessed a movement of people to the cities, and Stockholm's g r o w t h in population w a s largely due to an influx of people who a l r e a d y w e r e of pass-book age or rapidly approaching it. T h e effect of a limited birth rate w a s also becoming evident in a g r e a t e r proportion of people of permit age, and more foreigners w e r e sojourning in the metropolis. F i n a l l y , the Stockholm company is comparatively liberal in granting pass books to women. In 1930, the total number of pass books issued by the company, including nine " w i n e books," w a s 16,595. Of this number, 3,992 w e r e granted to women. In that y e a r , less than one-seventh of the pass books issued in the kingdom w e r e to w o m e n , while in Stockholm nearly a fourth w e r e to women.

SCOPE

AND

AVERAGE INDIVIDUAL YEAR 1924 192$ 1926 1927 1928 1929 1930

MONTHLY

PURCHASE CAPACITY

APPLICATION

" S

AVERACE INDIVIDUAL MONTHLY

PURCHASES

BUYING FREQUENCY

Liters

Liters

Percent

2.50 2.46 2.41 2.3 S 2.30 2.26 2.23

2.06 2.08 2.06 2.05 2.0$ 2.05 2.05

82 85 86 87 89 90 92

In other words, by the end of 1 9 3 0 , when the average monthly allotment f o r the kingdom had been reduced to 2.23 liters, the average pass-book holder was crowding the limit by buying 92 percent of what he was permitted to purchase. T h e r e ' s the rub. E v e r y system office I have visited contains a huge graph showing the monthly sales in the district over a period of years, and the company manager points with pride to the downward trend. In discussing the question with these managers, I have stressed the point that the reduction is forced, rather than voluntary, and have cited the rising buying frequency as proof of my contention. T h i s argument has usually elicited the explanation that, since the allotment is determined by a consideration of reasonable minimum requirements, one would naturally expect the purchasing frequency to approach the limit. T h a t logic is irrefutable, but I am still convinced—and my friends who manage system companies unanimously agree with m e — t h a t a voluntary curtailment is preferable to a forced one. Certainly a more salutary condition is reflected where the consumer buys less intoxicants because he cares less f o r them and thinks less about them, than where his purchases are restricted by regulations. 1 2 12

It is astonishing how w i d e s p r e a d is the belief that if a pass-book holder does not purchase his f u l l monthly allotment his supply will be cut down. Obviously, such a policy would d e f e a t the purpose of the regulations, since it would encourage, rather than discourage, sales, and I h a v e found no company w h e r e the practice is f o l l o w e d . B u t the p r e v a l e n c e of the belief and the apprehension of curtailed allotments undoubtedly influences the buying f r e q u e n c y . T h e trend since 1 9 3 0 has shown that buying f r e q u e n c y is influenced by economic conditions and the price of the commodity. In 1 9 3 1 , it remained f a i r l y constant. In 1932, the depression w a s being felt and higher liquor prices became

NUMBER

OF

PASSBOOKS ( I N THOUSANDS)

CHART

IV. T R E N D S KINGDOM,

IN T H E 1925-3Ο,

NUMBER

OF P A S S B O O K S FOR T H E

AND PERCENTAGES

FORMED BY RESTRICTED

OF T H E

PERMITS

TOTAL

ENTIRE

SCOPE AND

APPLICATION

We have already noted the "extra allotment" (extra tilldeltiing) which a permit holder may procure f o r special occasions. Responsible and dependable persons encounter little or no difficulty in securing a sufficient quantity in excess of their monthly allotment to provide for these unusual needs. But abuse of the privilege is not tolerated, and the practice of granting extras is not permitted to defeat the purpose of individual control. The extras constitute a relatively small percentage of the spirits retailed. In northern Sweden, where the permits are rigorously limited, there is a greater demand for extras, and, in 1930, this form of allotment constituted 6.34 percent of the total spirits retailed in this region. The percentage for the entire kingdom was only 2.87. 1 3 The quantity of spirits allotted as extras during the year was approximately 845,000 liters, or about seven-tenths of a liter per pass book. 14 The casual observer will inform you that the pass book is the lever with which the company controls the consumer of intoxicants, and will add that the permit will be revoked if the individual fails in a proper exercise of the privileges conferred by it. Social control is seldom so simple as that. There are exceptions to every rule. We have already noted that a company grants a permit only effective, with the result that buying frequency fell off approximately 1 0 percent. T h i s recession continued in 1 9 3 3 , but in 1934 there w a s a slight increase. 13 A promiscuous granting of extras would of course defeat the purpose of individual control. Consequently, the applications f o r extra allotments are caref u l l y checked. But apparently most requests are legitimate and allowed. T h i s is evidenced by the total number of applications to the Stockholm system, and the number of requests allowed and refused during the years 1928, 1929, and 1930: YEAR

APPLICATIONS

ALLOWED

REFUSED

192g 1929 1930

66,799 79.465 89.971

$6,296 62,250 71,33»

10,503 17.215 18,640

14 A discussion, in terms of liters of spirits, of such matters as allotments, purchase capacity, buying frequency, extras, etc., is apt to be confusing to those who are mindful of alcoholic content. T h e alcoholic content of the "liter of spirits" varies slightly f o r different brands, but it is approximately 43 percent by volume, or 35 percent by weight. For a discussion of the alcoholic content of Swedish liquor, see supra, pp. 73-74.

ι ιό

SCOPE A N D

APPLICATION

a f t e r a careful investigation. But, while the process is selective, an application is not rejected unless the case is exceptional and there are real grounds f o r r e f u s a l . One would naturally expect that, under such conditions, most of the applications would be granted, and figures prove such to be the case. T h e various companies throughout the kingdom, in 1 9 3 0 , received 7 4 , 8 0 3 applications f o r pass books and rejected only 8 , 8 7 5 , or 1 1 . 9 percent. In other words, less than one out of eight applications is refused. T h e Stockholm company apparently is more exclusive. O f the 2 1 , 8 5 6 applications received in 1 9 3 0 by this system, 5 , 2 6 1 were rejected. T h e grounds f o r rejection, as published in the annual report, are significant and may be cited as illustrative. 1 5 It is interesting to observe that drunkenness, at least in the Stockholm district, is one of the less frequent reasons f o r withholding a permit; and the failure of such a l a r g e number of applicants to follow up and press their petitions would indicate that many were merely taking a chance and did not consider the matter very seriously. T h e reasons f o r rejection w e r e as follows : Drunkenness Other complaints or reports f r o m the authorities F a i l u r e to follow up application Miserable living conditions Conflicting identification Other reasons

283 211 2,212 136 296 2,123 Total

5.261

W h e n we turn to the revocation of permits, w e likewise find that the pass book is a rod which is used sparingly. T h e figures f o r 1 9 3 0 may be taken as illustrative of the number of permit withdrawals throughout the kingdom, and of the grounds f o r revocation. D u r i n g that y e a r , 6 2 , 5 1 9 pass books were revoked. 1 8 Of this number, 1 7 , 7 4 6 w e r e rescinded because of change of residence; 1 7 8 , 7 6 5 because the permit xi

Aktiebolaget Stockholms! y stem et. T h e s e figures are compiled f r o m Rusdrycksforsâljninçen, p. 43. 17 If a pass-book holder moves out revoke his permit. He can then get 18

Fürvaltningsberättelse for òr 1930, p. 30. the report of the board of control f o r 1930, of a system jurisdiction, the company will another f r o m the system in whose jurisdic-

SCOPE AND APPLICATION

II7

holder was receiving charity or was in arrears on taxes; 479 f o r subletting to someone else his right to purchase; 1 2 8 f o r misrepresentation; 1 , 7 1 5 because of the death of the passbook holder; and 1 2 , 2 7 6 f o r miscellaneous reasons. Only 5 , 9 7 5 pass books might be said to have been withdrawn during the year because of a misuse of intoxicants. 18 M o r e than half of the revocations were f o r the innocent offenses of dying or changing one's residence. Less than one-tenth were f o r the misuse of intoxicants. T h e results are even more startling when we compare the number of revocations with the total number of pass books outstanding at the end of the year. F o r every thousand pass-book holders, less than five had their permits revoked during the year because of a misuse of alcohol. T h e s e figures must not be construed to imply that only an insignificant f e w are guilty of overindulgence. M a n y imbibe too freely, but a revocation of the permit may not be the solution in all cases. A sudden stoppage of the legal supply may impose too great a hardship upon the habitual user. It may drive him to the illicit trade. System companies have frequently found it advisable to use a "curative allotment," and to apply revocation only as a last resort. T h e y try to reason with the m a n ; his pass book may be kept in the possession of the local liquor store, in order to maintain a closer check; his allotment may be reduced; he may be given only a small quantity every week or every two weeks; his w i f e may be consulted, and, if she conveys an impression of mastery and is willing to undertake the task, she may be given the right to purchase a limited quantity at stipulated intervals and charged with the delicate duty of properly rationing her spouse. Finally, in discussing individual control, I should add that Swedish liquor legislation governing the retail trade is not tion he resides. If his old company did not w i t h d r a w the permit, it might be possible f o r him to use two pass books and double his allotment. Changes in residence account, not only f o r w i t h d r a w a l s , but f o r the issuing of permits. Of the 16,595 P a s s books issued in 1930 by the Stockholm company, 3 , 3 1 1 w e r e to persons w h o had held permits in other districts. 18 T h i s number is probably a little too high. It includes those excluded by statute, and among these a r e also included persons who h a v e engaged in the illicit liquor trade, and persons who h a v e done compulsory labor.

Il8

SCOPE

AND

APPLICATION

entirely confined to this particular plan. O t h e r s a f e g u a r d s have been set up. Individual control is supplemented by hours of sale regulations. T h e sale of intoxicants act permits the retail trade only between the hours of nine in the morning and five in the afternoon, and prohibits the trade on Sundays and holidays, and a f t e r t w o o'clock in the a f t e r n o o n o f a day preceding a Sunday or holiday. 1 9 T h e Swedes, especially the w o r k i n g people, are inclined to be festive or holiday drinkers, and this legislation is intended to discourage intemperate indulgence. E i t h e r the city council, in a p p r o v i n g a company charter, o r the system company itself, may impose closing regulations more rigid than those contained in the statute, and this is sometimes done. T h e statute also prohibits the operation of the retail liquor trade in connection with other merchandise; 2 0 forbids the sale of spirits on credit; and forbids the sale of intoxicants to anyone w h o is noticeably under the influence of liquor. 2 1 Finally, local o r state police authorities, or the county g o v e r n o r , may close the trade on special occasions when l a r g e c r o w d s are apt to assemble; and during a crisis, such as a w a r o r a m a j o r disturbance, the trade may be prohibited by order of the crown. 2 2 Such is the plan of individual control. D o e s it w o r k ? Y e s . Is it s a t i s f a c t o r y ? T h a t depends on w h o m you ask. Is it p e r f e c t ? N o . T h e scheme has certain flagrant weaknesses, many of which are present in any restrictive system, and some of which are inherent in this particular plan. T h e illegal disposition of "pass-book l i q u o r " is a cardinal defect in the plan, and apparently no satisfactory remedy has been found. T h e law permits the sale at retail only to passbook holders. It forbids a pass-book holder to requisition intoxicants on his permit f o r the use o f another, or to sublet to another his right to purchase. 25 Such statutory provisions are not easily enforced. Subletting could be prevented by 19 20 21 22 23

Rff., sec. 56, cl. χ. A n exception is m a d e in the case of s o d a s and s o f t drinks. R f f . , sec. 5 ; sec. 45, cl. 2 ; sec. j j , cl. 3. R f f . , sec. 70, cl. ι , 2. R f f . , sec. 47.

SCOPE A N D

APPLICATION

119

compelling every pass-book holder to appear personally in o r d e r to secure his allotment. However, in districts where this drastic method has been used, it has resulted in undue inconvenience to innocent people and has been a source of complaint. Even in cities where liquor stores are located, the domestic a r r a n g e m e n t s are frequently such that it is more convenient f o r some other member of the household to call f o r the allotment; in rural communities and more sparsely settled regions, people are removed f r o m the liquor store and a desirable arrangement is f o r a person to get the allotments f o r his neighbors when he calls for his own. Companies now permit this practice, but require a signed order f r o m the permit holder as a condition to any requisition against his allotment. And so a pass-book holder may sublet his right to purchase, by signing such an order f o r a consideration each month and turning it over to someone more affluent and thirsty than he. It is illegal, but it is done. A more difficult problem is where the permit holder requisitions his allotment and then sells it. H e legally possesses the liquor which he has purchased on his permit. Aside f r o m such restrictions as serving it in a beer café, a restaurant, or a public market, he may do what he pleases with it. H e may possess it, t r a n s p o r t it, throw it away, drink it, or serve it to his friends. H e may not sell it or supply another with it. But he frequently does, and, since he has the right to possession, it is almost impossible to prove an illegal sale. This illegal sale of legal liquor apparently is an evil inherent in any system of liquor rationing. T h e virtue of individual control is t h a t it tends to minimize the difficulty by limiting the available supply of intoxicants. If a reasonable minimum could be accurately gauged in each individual case, it would practically eliminate the surplus which flows into illegitimate channels. Individual control is an ambitious attempt at this mark which can never be reached, but temperance will be effected to the extent that the goal is approached. Until the manager of a system company explained the phenomenon to me, I was puzzled by the paradoxical picture presented by the

120

SCOPE A N D

APPLICATION

m o n t h o f D e c e m b e r , when t h e r e is a t r e m e n d o u s increase in the quantity of intoxicants s o l d a n d a r e l a t i v e d e c r e a s e in the cases of drunkenness. T h e e x p l a n a t i o n is simple. D u r i n g t h a t m o n t h the p e r m i t h o l d e r w a n t s his w h o l e m o n t h l y allotment f o r his o w n C h r i s t m a s f e s t i v i t i e s , and p r a c t i c a l l y no passb o o k liquor g o e s into irresponsible h a n d s . T h a t introduces a n o t h e r p r o b l e m . I n e b r i e t y a m o n g the S w e d e s , as a rule, is not induced by l e g i t i m a t e liquor l e g a l l y p u r c h a s e d . P a s s - b o o k h o l d e r s c o n t r i b u t e less than a fifth o f the cases o f drunkenness. 2 4 F u r t h e r m o r e , w e a r e p r e s e n t e d with the p a r a d o x that the l a r g e r the a l l o t m e n t , the s m a l l e r is the p e r c e n t a g e of intoxication. D u r i n g 1 9 3 0 — a n d that y e a r a p p e a r s t y p i c a l — t h e p e r c e n t a g e of cases of d r u n k e n n e s s a m o n g p e r m i t h o l d e r s with a m o n t h l y a l l o t m e n t of less than t w o liters w a s m o r e than three times t h a t of their f e l l o w citizens in the f o u r - l i t e r c l a s s . " B u t let us not j u m p to the conclusion t h a t d r u n k e n n e s s could be eliminated b y g i v i n g e v e r y b o d y a f o u r liter p e r m i t , o r even by i n c r e a s i n g the m o n t h l y a l l o t m e n t to f o r t y liters. A man holds a f o u r - l i t e r p e r m i t because he is r e p u t e d to be t e m p e r a t e . P a s s b o o k s a r e issued on the basis of l e g i t i m a t e needs and social responsibility. T h e i r r e s p o n s i b l e d r i n k e r , closed out f r o m the l e g i t i m a t e t r a d e o r p l a c e d on a c u r a t i v e allotment, still constitutes a p r o b l e m . B u t in f a i r ness to individual control, I should a d d that this g e n t l e m a n p r e s e n t s a p r o b l e m in any system o f l i q u o r r e g u l a t i o n , including p r o h i b i t i o n . H e is f r e q u e n t l y neurotic o r p s y c h o p a t h i c , a n d in need o f t r e a t m e n t . H e r e the plan o f i n d i v i d u a l control is s u p p l e m e n t e d by the s u p e r v i s o r s of t e m p e r a n c e . 2 ® I h a v e chided m a n a g e r s of s y s t e m c o m p a n i e s o v e r t h e i r solicitous r e g a r d f o r the d r i n k i n g habits o f r e s p o n s i b l e p e r m i t h o l d e r s , w h i l e the h a b i t u a l inebriate w i t h o u t a p a s s b o o k w a s outside of their control, and, to use a S w e d i s h expression, w e 24

In 1930 the percentage w a s 18.4. Report of the board of control f o r 1930, Rtudrycksförsäljmngen, p. 64. T h e percentage w a s remarkably low f o r both classes. In the "less than two liter" class it w a s .67 and in the four-liter class it w a s .21 of one percent. In the t w o and three-liter classes, it w a s .49 and .42. See infra, Chap. I X .

25

SCOPE A N D

APPLICATION

121

have laughed together. But it would be absurd f o r me to convey the impression that individual control is ineffectual in promoting temperance and discouraging irresponsible indulgence. T h e r e is little that a system company can do to correct the bibulous ways of the habitual inebriate and psychopathic alcoholic; but these chronic cases do not have a monopoly of excessive tippling, and habits of restraint may be encouraged among normal men. T h e manager of a system serving a rural district put the m a t t e r this way: " T h e greatest benefit realized by individual control in my district is the improvement in the drinking habits of the hired hands on the farms. Before the restrictive system was imposed, liquor was easy to procure; these workers bought it freely; carousing and fighting were common. N o w the agricultural worker is allotted only a liter or two a month with the result that he has become deucedly stingy with his liquor." T h e r e are limits to hospitality and generosity, and a curtailed supply, gauged by reasonable individual needs, unquestionably has reduced excessive consumption not only among f a r m workers, but among large numbers of every class.

VII THE

SERVICE

TRADE

APPROXIMATELY nine-tenths of the spirits and five-sixths of the wine sold in Sweden are consumed off the premises where they were purchased. Such figures delineate the extent of the service trade, but we should not let them minimize its importance and its difficulties. While approximately only a tenth of the spirits is dispensed in the service trade, if I may trust my own observations, I should say that this t r a d e has presented nine-tenths of the complaints against the Bratt System. T h i s anomaly cannot be explained entirely by any inherent defects in the plan itself. Neither can it be wholly accounted for by any peculiarities of the Swedish people. N o r can we point to a lack of experience, because f o r over a century the Swedes have experimented with methods of controlling the service trade, and many of the present regulations are merely modifications of rules and customs of long standing. T h e service trade is simply the most difficult to regulate. T h a t fact might be profitably contemplated by the politically minded opportunists in the United States, who sermonize about guarantees against the return of the saloon. W h a t is a saloon? I presume that when Americans speak of a saloon, the word calls forth some sort of mental picture. T h e romanticist perhaps bases his imagery on Ten Nights in a Bar Room and " F a t h e r come home with me now." T h e empiricist has lingering memories of little German Bands, swinging doors, spotless bars, brass rails, mirrors reflecting rows of bottles and glassware, lunch counters, amateur paintings of green fields and shapely maidens, polished cuspidors, sawdust, and a sense of welcome, fellowship, and warmth. Neither picture describes the Swedish service trade. Apparently, there are no saloons in Sweden. T h e nearest approach seems to be the café where beer is served, but this beverage does not come within the pur-

THE

SERVICE

TRADE

123

v i e w o f t h e s a l e o f i n t o x i c a n t s a c t . S p i r i t s a n d w i n e , f o r cons u m p t i o n o n t h e p r e m i s e s , a r e d i s p e n s e d o n l y in with

the

serving

of

food,

and

the

service

connection

trade

beverages constitutes primarily a restaurant

in

these

problem.

B u t to style the service trade a restaurant p r o b l e m not simplify matters.

I n S w e d e n , a s in t h e r e s t o f

does

Christen-

dom, there are countless eating places, g o o d , bad, and indiff e r e n t . O b v i o u s l y , if all o f t h e s e w e r e l i c e n s e d t o s e r v e l i q u o r , t h e s i t u a t i o n w o u l d be r a t h e r h o p e l e s s f r o m t h e s t a n d p o i n t o f an e f f e c t i v e c o n t r o l .

W h a t restaurants then shall be

with liquor rights?

What

meal

requirement?

How

favored

sort of a repast will satisfy much

liquor may

be

served

the with

a meal, and how m a y this be a p p o r t i o n e d with reference spirits, w i n e s , a n d l i q u e u r s ? eliminated

and

to

H o w shall the profit m o t i v e be

disinterested

management

realized?

What

c h e c k s a r e f e a s i b l e t o insure t h a t r e s t a u r a t e u r s o b s e r v e obligations of their privileges?

Such problems are not

the only

vexatious, but are f r a u g h t with friction. C o n t r o l o f t h e s e r v i c e t r a d e , l i k e t h e r e t a i l t r a d e , is c e n t e r e d in t h e v a r i o u s s y s t e m c o m p a n i e s . its

charter,

it

stipulates

the

W h e n a company applies f o r number

of

"serving

rights"

(utskänkningsrättigheter)

w h i c h it e x p e c t s t o e x e r c i s e .

number m a y be accepted,

rejected, or modified by

council w h e n a p p r o v i n g

the charter.1

Municipal

This

the

city

regulatory

p o w e r s , h o w e v e r , a r e n o t r e s t r i c t e d t o t h e city a p p r o v i n g t h e charter.

W h i l e local c o m m u n a l authorities cannot p r e v e n t

a

p a s s - b o o k h o l d e r f r o m p a t r o n i z i n g t h e r e t a i l s t o r e in his dist r i c t a n d a c q u i r i n g a n d p o s s e s s i n g i n t o x i c a n t s , t h e y can f o r b i d t h e l i q u o r t r a d e w i t h i n t h e c o m m u n e , a n d w h a t t h e y can p r o hibit t h e y m a y a d m i t on t h e i r o w n t e r m s . C o m m u n a l authorities are not the only g o v e r n m e n t a l o r g a n s clothed with regulatory powers. T h r o u g h

its g e n e r a l

super-

visory p o w e r s o v e r the system companies, the b o a r d of control a s s u m e s a d i r e c t i o n o f t h e s e r v i c e t r a d e , as w e l l as o f t h e r e t a i l trade, t h r o u g h o u t the k i n g d o m .

I t is t o t h e

administrative

orders and instructions o f the b o a r d of control, r a t h e r 1

F o r a discussion of the g r a n t i n g of the c h a r t e r , see supra.

Chap.

III.

than

124

THE

SERVICE

TRADE

to the statutes, that we must turn f o r a summary of the rules and regulations g o v e r n i n g the service trade. T h e r e are, of course, statutory provisions which apply unif o r m l y throughout the kingdom. T h e sale of intoxicants act defines the service t r a d e as " s a l e f o r consumption on the p r e m i s e s " ( f ö r s ä l j r t i n g till förtäring pâ stället). Nothing purchased at a retail liquor store may be consumed there, and nothing sold in the service trade may be carried away. 2 Intoxicants may not be consumed in any restaurant or café which is not licensed to serve them. 3 In other words, spirits may not be consumed in a c a f é licensed to serve only beer, o r in a restaurant or tea room licensed to serve only beer or wine. T h e statute provides that substantial f o o d ( l a g a d mat) must be procurable, and fresh drinking w a t e r available, to every guest in a serving place. 4 A n exception to the f o o d requirement is made f o r wine, which may be served in pastry shops (konditori). I t is interesting to note that the statute does not impose the meal requirement as a condition to procuring liquor, but merely provides that f o o d must be available if a guest desires it. T h e meal requirement, as we shall note presently, is imposed by order of the board of control. I t m a y also be of interest to observe that this legal provision is culled f r o m the old law of 1 8 5 5 , and reflects the Swedish custom of associating f o o d with drink. 5 T h e law also forbids serving intoxicants to a person visibly under the influence of strong drink, or permitting such a person to consume liquor in a serving place. N e i t h e r may intoxicants be served to a person known to be a misuser of alcohol, nor to a person w h o may reasonably be judged to be under eighteen 2

Rff., sec. 2. Ibid., sec. 57. * Ibid., sec. 59. 5 For some time prior to 1840, the meal requirement was imposed by law, at least for the country districts, where innkeepers could serve intoxicants only with meals. Such restrictions were ineffective, owing to an inadequate control of distilling and a failure to distinguish properly between the service and retail trades. This restriction was removed in 1841, but the law of 184$ required the serving of food if a guest should ask for it. 3

THE

SERVICE

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125

years of age." An intoxicated person may not be ejected f r o m a serving place where he has consumed liquor, or sent away without someone to look a f t e r him. 7 If a r e s t a u r a n t serves intoxicants on credit, the seller can legally collect only if the amount exceeds fifty kronor or if the debt was incurred f o r wine served to dining guests. 8 Such provisions, intended to p r o m o t e sobriety, are taken f r o m old statutes. Finally, the statute fixes the hours of sale in the service trade." W i n e may be served only between the hours of nine in the forenoon and ten at night; spirits between the hours of twelve noon and ten at night. N o intoxicants may be served during the hours set aside f o r religious services on Sundays or church holidays. Provision is made f o r exceptions regarding the hours of closing. T h e county governor, upon the application of the communal authorities, may consent to more liberal regulations, and this is done, especially in the larger cities. F o r example, in Stockholm, restaurants are permitted to serve intoxicants until twelve at night and customers may remain until one o'clock to consume their purchases. Even this display of liberality apparently does not satisfy the nocturnal Stockholmer. Both restaurateurs and p a t r o n s have assured me t h a t restricting sales to twelve o'clock is inimical to temperance, because it places the customer in a dilemma. Returning f r o m the theater, he wants to be sure t h a t his nightcap is of sufficient quantity and asks f o r the maximum with his diner, while if he were permitted to order until one o'clock he would trim his demands in proportion to his real wants, r a t h e r than his anticipated desires. 10 6

7 8 9 10

R f f . , sec. 59.

Ibid. Ibid., sec. 9. Ibid., sec. 56.

T h e n i g h t - c l u b p r o b l e m h a s presented itself in S t o c k h o l m . S e v e r a l p l a c e s h a v e attempted to o p e r a t e as " c l u b s " a f t e r r e g u l a r c l o s i n g h o u r s . Existing l e g i s l a t i o n a p p a r e n t l y h a s been i n a d e q u a t e to c o p e w i t h the p r o b l e m . The Stockholm s y s t e m c o m p a n y , h o w e v e r , h a s a m o n o p o l y of the l e g i t i m a t e l i q u o r s u p p l y , and these institutions w i l l either h a v e to be floated on s o f t d r i n k s o r s e r v e i l l e g a l l i q u o r . T h e i l l e g a l t r a d e in S w e d e n i n v o l v e s s e r i o u s r i s k s , a n d a d r y n i g h t c l u b w i l l p r o b a b l y not p r o v e v e r y e x c i t i n g a f t e r the n o v e l t y w e a r s o f f .

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Such legal provisions obviously constitue a rather meager foundation on which to build an intricate system of liquor control such as the Swedish service trade. T h e statute makes no provisions f o r meal requirements and is silent about the quantities of spirits or wine which may be ordered with a meal. Nothing is said about what restaurants may be licensed. W e are compelled to turn to other sources, and again we find ourselves facing the system company and the disposition of serving rights. Again we encounter the board of control exercising a telling influence through its supervision of the system companies. Regulation of the service trade rests on administrative orders, rather than on legislative enactments. But these administrative regulations and the organization by which they are rendered elective have the sanction of law. When a system company is chartered, it usually is given rights to engage in both the retail and service trades. Its rights to the retail trade cannot be delegated. T h e company itself must exercise the monopoly with which it has been vested in this field. T h a t is a solemn responsibility which it cannot surrender to anyone. It may, however, let out service rights to private individuals. A s a result, a distinction is made between the company's " o w n rights" (egna rättigheter) or " o w n service" (egen utskänkning), and the "let-out rights" ( o v e r látna rättigheter) or "let-out service" (överläten utskänkning). In the absence of expressed provisions to the contrary, a company does not have to exercise all the service rights granted to it. T h e Stockholm company has a hundred service rights in spirits. O f this number, only seventy-five were actually exercised in 1 9 3 1 , twenty-seven of which the company exercised in restaurants operated by a subsidiary corporation and the remainder it turned over to private restaurants. 1 1 A right to serve spirits carries with it the right to serve wine, 1 2 but a large number of restaurants have only wine rights. F o r an excellent d i s c i s s i o n of the legislative phases of these clubs, see " L a g stiftningen mot nattklubbarna," in Tidskrift for Systrmbolagen, J u n e , »932. 11 Annual report of Aktiebolaget Stockholmisystemet for 1931. 12 Rff., sec. 2.

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I27

B e e r d o e s n o t c o m e u n d e r the j u r i s d i c t i o n o f the system c o m p a n y , a n d r i g h t s to s e r v e this b e v e r a g e must be secured f r o m the licensing a u t h o r i t i e s of the c o m m u n e . 1 3 F i v e d i f f e r e n t a r r a n g e m e n t s a r e r e s o r t e d to in r e s t a u r a n t s w h e r e the s y s t e m c o m p a n i e s conduct t h e i r o w n service t r a d e . F i r s t , t h e r e is the c o m p a n y - o p e r a t e d r e s t a u r a n t . U n d e r this a r r a n g e m e n t , the system c o m p a n y e m p l o y s a m a n a g e r w h o runs the business. I n t o x i c a n t s a r e s e r v e d in conjunction with the r e g u l a r r e s t a u r a n t t r a d e and all the p r o f i t s o f the business r e v e r t to the c o m p a n y . T h e m a n a g e r w o r k s on a s a l a r y , and his i n d i v i d u a l income is in no w a y a f f e c t e d by the profits of a n y p h a s e o f the business. A second t y p e is w h a t is k n o w n a s the " m a n a g e r restaur a n t s " ( f o r e s t á n d a r e r c s t a u r a n t e r ) . U n d e r this plan, the service t r a d e in intoxicants is h a n d l e d by the m a n a g e r of a p r i v a t e r e s t a u r a n t , w h o assumes the r e s p o n s i b i l i t y . H e conducts his o w n business o f s e r v i n g f o o d , coffee, s o f t drinks, tobacco, and, in s o m e instances, he even s e r v e s b e e r as his o w n a f f a i r . In a d d i t i o n , he conducts the service t r a d e in intoxicants f o r the s y s t e m c o m p a n y . H e m a y receive a s t i p e n d f r o m the c o m p a n y f o r this s e r v i c e . T h e profits f r o m the t r a d e in intoxicants and, as a rule f r o m m a l t drinks, a r e t u r n e d o v e r to the system c o m p a n y . F r e q u e n t l y , u n d e r this a r r a n g e m e n t , the r e s t a u r a n t p r o p r i e t o r conducts the service t r a d e in spirits a s an a g e n t of the c o m p a n y , but exercises let-out r i g h t s to the w i n e service. A t h i r d a r r a n g e m e n t is w h e r e the s y s t e m c o m p a n y controls the service t r a d e t h r o u g h a s u b s i d i a r y r e s t a u r a n t c o r p o r a t i o n . T h e c o m p a n y retains the liquor r i g h t s , which it exercises t h r o u g h the a g e n c y o f the m a n a g e m e n t o f the r e s t a u r a n t s , and the p r o f i t s f r o m the sale of intoxicants r e v e r t to the c o m p a n y . T h e rest of the business is h a n d l e d b y the r e s t a u r a n t c o r p o r a tion as an independent concern. T h e s y s t e m c o m p a n y , howi s S p e c i a l r i g h t s a r e g r a n t e d to the state r a i l w a y s a n d to ships g o i n g to f o r e i g n ports. T h e s e r i g h t s a r e g r a n t e d by state a u t h o r i t y , t h r o u g h the m e d i u m of the g o v e r n o r of the county w h e r e the t r a n s p o r t a t i o n c o m p a n y h a s its h o m e office. S t e a m s h i p s m a y not e x e r c i s e s e r v i n g r i g h t s in S w e d i s h ports. T h e r i g h t s of the r a i l w a y s a r e restricted to w i n e s a n d b e e r . S u c h r i g h t s a r e p r o v i d e d f o r b y statute. See R f f . , sec. 2 1 .

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ever, usually owns the stock of the corporation, with the result that profits other than those from intoxicants likewise go to the company and through it to the state. This is the plan followed in Stockholm, where the system company through a subsidiary, namely, Stockholms Allmänna Restaurantaktiebolag, popularly known as S . A . R . A . , operates some twenty-eight restaurants in various parts of the city. These restaurants usually have a more or less elaborate second-class division and a third class patronized mainly by workingmen. A fourth plan is carried out in clubs, where a system company, through an agent, exercises the service rights in intoxicants. T h e profits from the liquor trade, under this arrangement, revert to the system. Finally, there are instances where the company controls the service trade in beer and wine and, through responsible managers, operates "company cafés" (bolagskaféer). The income from the beer and wine trade in such places reverts to the system company. 14 The system company restaurant in its present form dates back to the Stockholm ventures of 1 9 1 3 - 1 4 , but it is a spiritual, if not a spirituous, heritage of the old Gothenburg System. These institutions are known as people's restaurants, and the third-class types are patronized principally by workers. A real service is rendered by these establishments. N o t only are they effective in regulating the liquor trade, but they render an even more commendable service in providing meals at prices which a laborer can afford to pay. The establishments which I visited, especially in the larger cities, are very attractive, comfortable, and spotlessly clean. The food is simple, the selection is limited, but what is lacking in variety is more than made up in quality and quantity. It is not the sort of delicacy a dyspeptic would sigh for. It is plain, honest fare, served in helpings which would gladden the heart of a truck driver on a cold day. It is real lagad mat—soups, beef stews, fish, pota14 T h i s classification is f r o m the annual report of the board of control f o r 1 9 3 1 , Ruidrycktförsäljntttgen, pp. 27-28.

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12Ç

toes, and enormous sausages; and the price of a square meal is about twenty cents. Swedes are human, profits are profits, competition is competition, and it would be too much to expect that the restaurant activities of the system companies should not call forth some opposition. P r i v a t e restaurant and café owners have insisted that the system restaurant is a public enterprise and that it is unfair to have it compete with private initiative. L i k e most positive assertions, this is only partially true. T h e profits of the system restaurant go to the company, and the profits of the company g o to the state. T h e public indirectly receives the profits of the business, and to that extent the enterprise may be termed a public one. In other respects, the company restaurant occupies a position similar to that of a privately operated restaurant or café. It is not subsidized; it pays taxes; it pays rent; it meets its operating costs f r o m the profits of the business, the same as a private enterprise. A s a rule, it does not operate on a cost basis, but seeks to realize at least a modest return on its investment. U n d e r an arrangement, such as the one in Stockholm, where the restaurant business is carried on by a subsidiary and the system company itself exercises the liquor rights, the restaurant corporation must make its profits f r o m sources other than intoxicants. T h e system company here directly takes the profits f r o m the liquor trade and the restaurant must make the kitchen pay its way. In 1 9 3 1 , S . A . R . A . realized a net profit of approximately 3 4 0 , 0 0 0 kronor. This profit was made f r o m meals, coffee and s o f t drinks, beer, cigars, hotel service, etc. N o n e of it came f r o m serving spirits and wine. Considering the number of restaurants operated by this corporation, the profits are not large, but they are the result of good management rather than of any unfair advantage in a competitive business. T h e Swedish restaurant is an institution, and is always more formal and elaborate than the American lunch-counter type which assumes the name. F o r this reason, the competition which a private restaurateur encounters in a company restau-

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rant is principally in its first or second-class service. But even here the advantage is not all on the side of the company. T h e private restaurant may realize limited profits from the serving of intoxicants; the company restaurant, as a rule, must rely on other sources of revenue. J u d g i n g from my own gastronomical adventures in company and private restaurants in different parts of Sweden, I should say there is not a considerable difference in the prices charged by the two institutions when one compares the surroundings, service, and quality and variety of food. An excellent restaurateur assured me that he relished competition of the company restaurants because he could always beat them with better food and service. Needless to say, his dining rooms are always crowded. T h e system company restaurant, "third class," patronized by workingmen, does not compete with the more elaborate privately operated establishments. It is a people's restaurant or folkrestaurant in the true sense of the word. H e r e substantial f a r e is served at moderate prices and you can order a snaps or two with your meal. Ordinarily, these restaurants are operated by the system company, either directly or through a subsidiary. T h e r e are instances where they are run by private initiative, but such cases are exceptional. T h e third-class restaurants undoubtedly cut in on the trade of the cafés, and these usually are privately operated. But the café owner relies chiefly on the beer and coffee trade for his income. T h e serving of substantial food appears to be more of a side line. In Stockholm, a workingman seldom visits a people's restaurant unless he wants a meal, but he is continually going into a café for his coffee or his pilsner. T h e two institutions operate side by side, each performing its functions. Beer cafés are not licensed to serve spirits or wine, and these beverages may not be drunk on the premises. T h e people's restaurant, under strict company control, is the one eating place patronized by laborers where liquor may be had with the meals. So much for the service rights exercised by the system companies themselves. Let us turn to the let-out rights. H e r e

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we encounter new difficulties. T h e s e a r e rights to serve intoxicants, and are surrendered by a system company to a private restaurant owner, who exercises them in his own name and realizes a profit f r o m the trade. W e have a l r e a d y noted that a right to the service t r a d e in spirits legally carries with it the right to serve wine. In addition, there a r e wine rights. T o w h o m shall the spirits rights be g i v e n ? W h o shall have wine r i g h t s ? W h o shall h a v e neither? T h e number of serving rights is usually stipulated in the company charter, and this document may determine how many of these rights are to be exercised by the company and how many are to be let out. But the charter ordinarily does not designate to w h o m the rights shall be let out. T h a t is l e f t to the discretion of the system company. T h e task of equitably distributing these rights is not so difficult as it would seem at first glance. T h e rights to serve spirits are given only to the better class of hotels and restaurants. Such places are numerous in the l a r g e r cities, and here the rights are commensurate. T h e y are f e w in the less populous centers, and so are the rights. W h e n a p r i v a t e restaurateur accepts a service right, he assumes responsibility to conduct the t r a d e in accordance with the letter and spirit of the law. If he conducts a disorderly place, the exercise of his right may be suspended by state authority. 1 5 H e is personally responsible f o r the exercise of the privilege, and may not absent himself f r o m watching o v e r the t r a d e without designating someone acceptable to the company to act in his place. H e must agree to abide by any regulations imposed by the b o a r d of control g o v e r n i n g the service trade, and must consent to have his books examined by the board. H e must buy all his liquor supplies f r o m the system company, and can use them only in the service t r a d e or in the preparation of f o o d . H e is required to i n f o r m his help regarding the regulations governing the trade, and their income must in no manner be affected by the quantity of intoxicants served. H e must not permit in his restaurant the consumption of intoxicants other than those served there. T h i s by no means "Rff., sec. 27.

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exhausts the restrictions imposed upon the private restaurateur, but the regulations which I have indicated should illustrate the nature of his responsibilities. 16 Such restrictions, in the main, are negative, but the service trade cannot be controlled by an enumeration of " d o n ' t s . " Americans have tried that method and so have the Swedes. Something more constructive and positive is required to get to the root of the difficulties. W e have noted how the profit motive has been eliminated in the wholesale and retail trades, as well as in that part of the service trade where the system companies themselves exercise the rights. Safeguards have also been set up to counteract the unsocial effects of the profit motive on the part of private restaurateurs. T h e object of the original sponsors of the Bratt System was to eliminate private profits f r o m every phase of the liquor traffic. T h i s could readily be done at every point save in the let-out rights. H e r e stiff opposition was offered by restaurant and hotel interests, and it became obvious that private profits could not be entirely eliminated, at least, f o r the time being. But the sale of intoxicants act went to the extent of providing that a system company, in letting out rights, could act in conformity with instructions f r o m the board of control and require that " a s f a r as possible" the income of the restaurateur should in no way be affected by the quantity of intoxicants served. 1 7 It is questionable if such statutory authorization is necessary to remove private inducement to increased sales. Certainly a system company, in the exercise of its monopoly, or a city council, in approving a company charter or in permitting the service trade in a commune, could stipulate the conditions under which the sales could be conducted. T h e legal provision may be necessary as a basis f o r uniform regulations throughout the kingdom. Be that as it may, the board of control has 18

These regulations are not statutory, but are found in the orders and instructions of the board of control. See Kungl. Kontrollstyrehens Cirkulärsamling, Nr 2, 1930. 17 Rff., sec. 25.

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acted in accordance with the statute and has sought to realize disinterested management by removing p r i v a t e inducements to increased sales. T h i s has been done by establishing what is known as the profit quantity (vinstkvantitet). T h e profit quantity is the amount of spirits and h e a v y wine which a private restaurateur m a y sell at a profit. F o r whatever he sells in excess of this quantity, he must pay the system company the same price which he charges minus a small rebate of 2 percent f o r " s p i l l a g e " {spillmàn). U n d e r this arrangement, every restaurant with service rights is compelled to conduct a liberal percentage of its trade in intoxicants on a cost basis. T h e purpose of the regulation is obvious. Reasonably certain of more than exhausting his profit quantity during the month, the restaurateur is not interested in urging a customer to order intoxicants. It is immaterial to him whether you take a snaps with y o u r dinner. If you do not take it, someone else will, and long b e f o r e the end of the month the restaurant will be serving countless snapses without profit. T h u s a f o r m of disinterested management is established. In 1 9 3 1 , there w e r e 3 8 3 p r i v a t e restaurants in Sweden exercising rights to serve spirits and wine. In addition, there were 465 let-out wine rights. T h e b o a r d of control fixes the profit quantity f o r each one of these establishments. T h i s is not done arbitrarily, but is based on a percentage of the total monthly turnover. T h e idea is to leave a sufficiently liberal spread between the profit quantity and total sales to g u a r a n t y disinterested management. T h a t is not a l w a y s an easy assignment. W h e n the plan w a s first instituted on a national scale, the a v e r a g e turnover f o r 1 9 2 0 w a s used as a basis and restaurateurs were permitted to sell 7 5 percent of this amount at a profit. T h e 25 percent sold without profit a p p e a r e d to be an adequate s a f e g u a r d . B u t the y e a r s f o l l o w i n g w e r e lean ones, and an economic depression is reflected in the liquor traffic, especially in the service trade. T h e result w a s that the profit quantity was found to be too liberal. In many instances it exceeded the total sales. 1 8 Since 1 9 2 3 , attempts have con18

B e r g v a l l , J . , Restriktionssystemet,

etc., chap. vii.

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stantly been m a d e to iron out these difficulties and to a d j u s t the profit quantity in its p r o p e r relation to the total turnover. T h e f o l l o w i n g figures, f r o m the annual report of the b o a r d of control f o r 1 9 3 1 , indicate the number of liters sold and the profit quantity f o r spirits and heavy wines during the six-year period, 1926 to 1 9 3 1 . 1 β T h e s e figures cover the let-out rights f o r the whole country : 20 HEAVY WINES

SPIRITS YEAR

Profit Q u a n t i t y

Sales

1926 1927 1928 1929 1930 1931

1,646,894 1,600,503 «,447,99ο I,449,iii 1,454.239 1,448,662

1,729,008 ».748.499 1,703,086 I.76I,539 1.732,397 1,688,618

Profit Q u a n t i t y

Sales

370,393 368,122 255,538 261,726 265,588 265,639

223,639 233,548 234,796 249,817 247, «72 237.764

A l l this may seem involved, but the administration and enforcement is relatively simple. A private restaurateur must purchase the entire supply of spirits and wine needed in his business f r o m the system company which has granted him his license. H e must furnish the company with his price lists; his books and his stores are open f o r inspection; in short, the company has a check on him. W h e n he buys his wares, he pays w h a t is known as the base price {grundpriset). T h i s is the price which the company has to pay f o r the liquor and includes the turnover and service taxes. 2 1 T o this price is added an amount equal to 25 percent of the difference between the base price and the c h a r g e m a d e by the restaurant in the service Ruidrycksförsäljningen, p. 31. T h e profit q u a n t i t i e s indicated by these figures a r e those fixed by the b o a r d of control. Consequently, they r e p r e s e n t the m a x i m u m q u a n t i t i e s w h i c h p r i v a t e r e s t a u r a t e u r s m a y sell at a profit. A local system c o m p a n y , w h e n letting out rights, m a y i m p o s e m o r e rigid restrictions, but it m a y not be m o r e liberal t h a n the b o a r d to control. T o illustrate, a c o m p a n y could r e q u i r e a p r i v a t e rest a u r a n t to conduct the s e r v i c e t r a d e entirely on a nonprofit basis. 21 T h e t u r n o v e r t a x is collected f r o m the system c o m p a n y by the w h o l e s a l e r , w h e n it p u r c h a s e s spirits at w h o l e s a l e . In addition, a s e r v i c e t a x is imposed on spirits sold in t h e service t r a d e . T h i s t a x a m o u n t s to t w o k r o n o r p e r liter of b r ä n n v i n a n d f o u r k r o n o r per liter f o r o t h e r spirits. T h e r e is no service t a x on the c h e a p e s t kind of b r ä n n v i n ( r e n a t b r ä n n v i n ) with an alcoholic content of 40 p e r c e n t by v o l u m e . W h e r e the system c o m p a n y exercises service rights, it pays the s e r v i c e t a x to the g o v e r n m e n t . It also collects this service t a x f r o m t h e p r i v a t e r e s t a u r a t e u r w h e n he m a k e s his p u r c h a s e s . 19

20

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trade. In other words, the restaurateur has a profit margin of 75 percent. This arrangement applies to spirits, heavy wines, and sparkling wines. F o r light wines, other than the sparkling varieties, he pays the base price, plus an addition of 1 5 percent of the difference between this and his charges, and consequently his profit margin in these wares is 85 percent. Such returns, in spirits and heavy wines, are limited to the profit quantity. Where a restaurant exceeds this, it must pay what it charges, minus the small rebate f o r spillage and imported wares. There are no profit-quantity limitations in light or sparkling wines. These terms do not seem harsh, but there has been wailing and gnashing of teeth. Private restaurant owners have objected to the competition presented by the company restaurant. T h e y have resented the regulations imposed by system companies and the board of control. T h e public has joined them in their resentment against company agents appearing incognito to check up on the conduct of the service trade. T h e sponsors of this practice term it "anonymous control" ; the waitress, when she becomes confidential, is apt to call it "espionage." Personally, on this point, I find my sympathies divided between Frühen and the system company. On the one hand, I realize that most Swedes are proud, honest, and independent folk, who dislike underhanded methods and abhor being spied upon. On the other hand, I have visited serving places where any sort of company control, even espionage, should have redounded to the peace and comfort of temperate guests who were entitled to consideration. T h e most tenacious objections have centered around the profit quantity. Private restaurants are required to serve some 3 0 percent of their spirits trade without profit. A f t e r years of experimentation, the profit quantity has become fairly standardized and uniform, and this has removed much of the friction. During the period of adjustment a f t e r 1 9 2 3 , charges were not infrequent that the regulations were arbitrary and discriminatory in their application to individual restaurants. T h e regulations are still arbitrary, in the sense that they are

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imposed by an administrative agency whose decisions are final, but any unwarranted discrimination is probably unintentional. If a restaurant owner feels he is being treated unfairly, he can present his case to the board of control. Some companies have followed the lead of the Stockholm system, and have established local arbitral boards, composed of representatives f r o m the private restaurant business, the company restaurants, and the system company. T h e purpose of such commissions is to take up complaints and smooth out local difficulties. Finally, the system company itself is always willing to listen to reason. If a restaurateur cannot alter his profit quantity to his heart's desire, he at least is afforded ample opportunity to air his grievances, and, to use the heroic words of one källarmästare, "that helps spiritually, if not materially." T h e problem of private profits in the service trade remains unsolved, and I, f o r one, am not certain that a satisfactory solution can be reached simply by juggling the profit quantity. Responsible restaurant owners recognize the soundness of removing inducements to profits from an increased turnover in intoxicants; but they feel that the board of còntrol and the system companies have gone too f a r in this direction. T h e y insist that having to serve nearly a third of their liquor supplies without profit imposes an unreasonable burden upon them, because they alone must shoulder the expense of maintaining their establishments, paying the help, replacing broken glassware, and so on. And, in their favor, it may be stated that these gentlemen usually take their responsibilities seriously. G o into any private restaurant in Stockholm, and the chances are you will not even be asked if you would like a snaps with your dinner, unless you are a familiar guest and your habits are known. Such diligence is deserving of reward, rather than punishment; but when a restaurant owner protests against the injustice of being deprived of 3 0 percent of the profits f r o m his bar, I am led to wonder if he is pleading his case fairly or fully recognizing the problems involved. T h e profit motive, in its relation to increased consumption, is largely a conjectural danger in a system where let-out rights

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are carefully scrutinized; but private profits f r o m the service trade have a real influence on the restaurant business in general, and this clothes them with a social significance. Perhaps I can illustrate this by paraphrasing the remarks of two of my friends, one a successful restaurant owner, the other a journalist and fellow diner. T h e restaurateur reasoned thus: " T h e r e is more profit in liquor than in food. It requires no preparation; the overhead and labor costs are small; it does not spoil, and what I don't dispose of today I sell tomorrow. Some of my guests order it; some do not. A l l of them, the teetotaler as well as the snapser, benefit f r o m the bar, because my liquor profits help support the food service and permit me to offer a better table." H e was right. H i s is my favorite smorgasbord. M y own judgment in the matter is confirmed by the soliloquy of the journalist. " J cannot serve a dinner like this f o r 2.85 kronor and make a profit. E v e r y time I come here I eat at least four kronor's worth of food. I have to be a sport and give the poor fellow some chance to reap a reward f o r his efforts and so I always order liquor with my dinner." A f t e r sufficiently discounting the pietistic weakness to rationalize one's thirst, I must admit that the gentleman of the press is also right. But, from the standpoint of abstract justice, it seems only f a i r that if a man eats four kronor's worth of food, he should pay four kronor f o r the meal plus an additional margin of profit which would enable the restaurateur to live and continue his good work. A s f o r the restaurateur, his is the noblest of callings. H i s mission is to provide wholesome and palatable food. T h a t is an art. H e must serve this food at reasonable prices and still manage to make a profit. T h a t requires business acumen. Any dunderhead can pour brännvin into a glass and place it in front of a guest. H o w does all this affect the restaurant business? It is the ever-recurring problem of the kitchen paying its way. Liquor rights are invaluable in attracting trade, and the restaurant without them is competing under a tremendous handicap. T h e

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situation becomes rather hopeless when the licensed restaurant can turn liquor profits into food and service, and set a better table at a lower cost. It is not the licensed restaurant that is penalized by being deprived of a portion of its profits. T h e real penalty is imposed on the unlicensed place compelled to compete against great obstacles. T h e dry restaurant has a down-at-the-heel appearance. In the larger cities, a number of restaurants on the order of the American chain variety have developed a profitable clientele by appealing to shoppers, office girls, and business men. These places are generally limited to beer and wine rights. T h e more elaborate restaurants, on the other hand, apparently must have liquor rights to hold their clientele. I t would be a simple matter for the system company to employ supervisors and directly exercise the service rights in private restaurants. This would entirely eliminate the element of private profit f r o m the only phase of the liquor t r a d e where private interest still persists. I do not know if such a plan would be feasible. T h a t would have to be proved by experiment and experience. F r o m a temperance standpoint, disinterested management in the service t r a d e has been attained. Private interests have been powerful enough to prevent its full realization f r o m an economic standpoint, and the economic factors are closely related to the cause of temperance. I t may well be the case, as the restaurateurs contend, that in the absence of liquor profits, Swedish restaurants could not continue to give that fine service f o r which the land is famous. T h a t would be regrettable. On the other hand, these profits constitute a serious obstacle to a satisfactory solution of the economic problems of the service trade. T h e purpose of the meal requirement is twofold. In the first place, it serves as a sort of automatic economic control. If a customer has to go to the expense and bother of procuring a meal in order to get a drink, the chances are he will forego the bracer unless he is hungry as well as thirsty. In the second place, food mitigates the h a r m f u l effects of alcohol and ren-

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d e r s it less intoxicating. T h e s e t w o p u r p o s e s a r e complement a r y , a n d the net result is that o r d i n a r i l y a m e a l is not o r d e r e d as a p r e t e x t to p r o c u r i n g spirits, but both a r e o r d e r e d because they a r e d e s i r e d . T h r o u g h experience, the S w e d e s h a v e l e a r n e d the desirability o f c o o r d i n a t i n g control in all p h a s e s of the liquor traffic, w h o l e s a l e , retail, a n d service. W h e n the pass b o o k w a s m a d e o b l i g a t o r y f o r p u r c h a s e at retail, a r e f u g e w a s s o u g h t in the s e r v i c e t r a d e , and the m e a l r e q u i r e m e n t w a s i m p o s e d as a s t o p - g a p . J o h n B e r g v a l l has g r a p h i c a l l y p o r t r a y e d d e v e l o p m e n t s in S t o c k h o l m in 1 9 1 4 , the y e a r in which the p a s s b o o k a n d m e a l r e q u i r e m e n t s w e r e instituted in t h a t m e t r o p o l i s . 2 2 T h e pass-book r e q u i r e m e n t w e n t into o p e r a t i o n on F e b r u a r y 2 6 of t h a t y e a r . I m m e d i a t e l y p r i o r to this time, the S t o c k h o l m c o m p a n y h a d s e r v e d , on an a v e r a g e , a p p r o x i m a t e l y 5 0 , 0 0 0 liters o f spirits a month in its o w n s e r v i n g places. T h a n k s to the p a s s b o o k , the figure in M a r c h l e a p e d to 6 2 , 0 0 0 l i t e r s ; in M a y it r e a c h e d 6 8 , 0 0 0 ; in J u n e and J u l y respectively it h a d r e c e d e d to 6 3 , 0 0 0 liters. T h e n the m e a l r e q u i r e m e n t w a s i m p o s e d , w i t h the result that in A u g u s t the c o m p a n y ' s service t r a d e w a s reduced to slightly m o r e than 2 0 , 0 0 0 liters. T h i s diminution a p p e a r s even m o r e significant when w e consider t h a t the retail t r a d e f r o m F e b r u a r y to A u g u s t had likewise been r e d u c e d by m o r e than h a l f . U n q u e s t i o n a b l y , the m e a l r e q u i r e m e n t has been effective in diminishing excessive consumption o f intoxicants in the service t r a d e . T h e m e a l requirement has been i m p o s e d u n i f o r m l y t h r o u g h out the k i n g d o m by o r d e r of the b o a r d of control. 2 3 B u t w h a t is a m e a l ? T h e b o a r d has used the price criterion. T o p r o cure spirits o r w i n e w i t h a m e a l in a r e s t a u r a n t , one must o r d e r f o o d to the v a l u e of 1 . 5 0 k r o n o r . U n d e r a n o r m a l r a t e of e x c h a n g e , this a m o u n t s to about $ 0 . 4 0 . T o p r o c u r e wine in a p a s t r y shop, one must o r d e r p a s t r i e s to the v a l u e of 2 0 ore, o r a p p r o x i m a t e l y $ 0 . 0 5 . A n exception is m a d e f o r the 22 23

Restriktionssystemit, etc., p. 53. See Kungl. Kontrolhtyreheni Cirkulâriamling,

N r 2, 1930.

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third-class, o r people's, r e s t a u r a n t s , where the system companies themselves exercise the serving rights. 2 4 H e r e one may procure spirits with a meal costing only one krona ; but, as we shall note presently, the quantity of spirits is reduced. T h e price criterion is not entirely satisfactory, and can be justified only on g r o u n d s of expediency. T h e meal requirement must be defined, and the price test seems to be the most convenient yardstick. F o r t u n a t e l y f o r G o d ' s patient poor, there is not always a relationship between the price paid f o r food and the quantity o r nourishing quality of the victuals, but this discrepancy challenges the absolute validity of the price criterion. O n e k r o n a and a half expended judiciously f o r soup, potatoes, sausage, and the m o r e common vegetables, provides a repast which the most hungry stevedore would have to call a m e a l ; but it does not buy much caviar. Alcohol, in its physiological effects, makes no distinction between sausage and caviar. I t s intoxicating effects vary in p r o p o r t i o n to the a m o u n t of nourishing f o o d in the stomach, and it m a t t e r s little w h e t h e r the nourishment is plain f a r e or rare delicacies. F o r t u n a t e l y , in Swedish restaurants, it is the practice to order table d'hôte, with the result t h a t t h e r e is some relationship between the quantity of f o o d o r d e r e d and the price paid. Local communal authorities and system companies may of course impose regulations m o r e stringent than those fixed by the b o a r d of control. Some system companies have exercised this right, and have required the o r d e r i n g of really substantial f o o d — l a g a d mat—as a condition to procuring intoxicants. T h e b o a r d of control also prescribes the maximum quantity of liquor which a r e s t a u r a n t may serve with a meal. N o wine may be served b e f o r e nine in the m o r n i n g ; no spirits b e f o r e noon. Between the hours of twelve and t h r e e in the a f t e r n o o n , a man is limited to t h r e e "small glasses," or seven and a half centiliters of spirits. A f t e r three o'clock he is limited t o three " b i g glasses," or fifteen centiliters. If he takes two meals at one session in a r e s t a u r a n t and at least four hours intervene between the beginning of the first and second repasts, he is 24

Ibid., Nr 3.

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r e s t r i c t e d t o f o u r b i g g l a s s e s . A w o m a n is a l w a y s l i m i t e d to t h r e e small g l a s s e s , o r seven a n d a h a l f centiliters p e r m e a l . T w o g l a s s e s o f punsch c o r r e s p o n d t o one g l a s s o f s p i r i t s . I f a p e r s o n p r e f e r s h e a v y w i n e i n s t e a d o f s p i r i t s , he is l i m i t e d to a q u a r t e r b o t t l e with a m e a l . " T h e b o a r d o f c o n t r o l p l a c e s no limit on l i g h t o r s p a r k l i n g wines, a n d b e e r is o u t s i d e o f its jurisdiction. T h e s e r e s t r i c t i o n s a r e g e n e r o u s , a n d I h a v e h e a r d f e w complaints a g a i n s t t h e m . T h e s m a l l g l a s s c o n t a i n i n g t w o a n d a h a l f centileters is not d i m i n u t i v e , but is w h a t w e w o u l d t e r m an a v e r a g e - s i z e d g l a s s of w h i s k y . T h e l a r g e five centiliter g l a s s is a m a n ' s - s i z e d p o r t i o n . T h e fifteen centiliters o f s p i r i t s which the b o a r d p e r m i t s a g e n t l e m a n with his d i n n e r a p p r o x i m a t e s t w o - t h i r d s o f the contents o f a h a l f - p i n t flask. S u r e l y that is not an u n r e a s o n a b l e c u r t a i l m e n t , e s p e c i a l l y w h e n w e c o n s i d e r that, in a d d i t i o n to this q u a n t i t y o f spirits, a m a n is p e r m i t t e d t o d r i n k his fill of l i g h t w i n e s a n d b e e r , unless the local a u t h o r i t i e s f r o w n upon such indulgence. 2 6 C o m m u n a l a u t h o r i t i e s a n d local s y s t e m c o m p a n i e s m a y imp o s e m o r e s e v e r e r e s t r i c t i o n s . T h i s h a s been d o n e in m a n y localities, w i t h the result t h a t quantities h a v e been r e d u c e d . W h e r e a s y s t e m c o m p a n y e x e r c i s e s its o w n s e r v i n g r i g h t s , it m a y , of course, reduce the q u a n t i t y . T h i s h a s been d o n e by the S t o c k h o l m c o m p a n y in the S . A . R . A . r e s t a u r a n t s since the beginning of 1 9 2 6 . I n s t e a d of u s i n g the t w o - a n d - a - h a l f a n d the five-centiliter s t a n d a r d f o r its s m a l l and l a r g e g l a s s e s , the system uses a t w o and f o u r s t a n d a r d . B e f o r e t h r e e o ' c l o c k , a person is a l l o w e d f o u r centiliters o f s p i r i t s — t w o s m a l l g l a s s e s — i n the third-class d i v i s i o n and six c e n t i l i e r s — a b i g a n d a small g l a s s — i n the second class. A f t e r t h r e e o ' c l o c k , his allotment is six centiliters in the t h i r d class a n d t w e l v e in the 25

Pastry shops may serve only a five-centiliter glass with each order. In addition to these beverages, there is a popular drink called "light g r o g " (lättgrogg). T h i s is a mixture of two and a half centiliters of whisky or cognac with enough soda water or other non-alcoholic liquid to bring the content up to at least twenty-five centiliters. T h i s quantity of soda water makes a drink with an alcoholic content approximating that of beer, and the meal requirement does not apply to this beverage. 26

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second." In making an exception to the general price test so as to permit spirits with a one-krona meal in a people's restaurant, the board of control has limited the size of the snaps to a big glass, or five centiliters. T h i s exception, in turn, is subject to other reasonable exceptions. W h e r e a company, such as the Stockholm system, reduces the size of the snaps to four centiliters instead of five, it may serve it with a meal costing less than a krona, or it may serve an additional small glass if a customer orders another half krona worth of food. Such arrangements require the consent of the board of control. While the diner is restricted in his supply of liquor, he is protected in other respects. T h e system company is required to provide a restaurant with a measuring glass, and a guest may call f o r it at any time. 28 H e may demand to see the bottle out of which his liquor is poured. In other words, he is guaranteed the proper quantity and quality. But, best of all, his pocketbook is safeguarded. T h e service prices of the more common standard wares are fixed by the board of control, but a system company, when letting out the rights, may set a definite price on other brands of spirits or wines or fix a maximum figure which a restaurateur may not exceed. If a patron desires rare vintages and imported spirits, he must pay the penalty of an expensive taste ; but the charges f o r the standard domestic products are not prohibitive. T h i s is illustrated by the service prices fixed by the board of control f o r the standard wares of brännvin and eau-de-vie. T h e s e prices went into effect J u l y i , 1 9 3 2 , and while they are higher than the charges which obtained during the previous year, they are a f a i r average of the costs since 1 9 2 0 . T h e prices are given in ore, and are f o r a small, or two-and-a-half-centiliter glass. U n d e r a gold parity exchange, an ore was worth approximately onefourth of a cent; under the 1 9 3 2 rate the ora was less than 27

These restrictions do not apply to the privately operated restaurants in Stockholm. 28 This requirement is imposed by the board of control as stated in Ctrkulär Nr 2.

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one-fifth of a cent. T h e parity ratio is the f a i r e r index. 29 PRICE IN T H I R D TYPE OF SPIRITS Renal brännvin Almavit Eau-de-vie ordinaire Eau-de-vie * Eau-de-vie ···

CLASS R E S T A U R A N T 20 ore 30 " 30 " 30 " 40 «

PRICE IN OTHER RESTAURANTS 25 ore

35 " 35 "

40

"

45 "

L e t us turn to some of the objections. I have discussed the difficulties involved in the distribution and exercise of serving rights, but that is a problem of interest principally to those who are immediately concerned, or who have taken the trouble to inform themselves. T h e r e are other weaknesses which, while less important, are more conspicuous. Naturally, one hears some complaints against the quantity of spirits served with a meal. M a n y friends of temperance feel the amount is unduly large. Workingmen, especially those who patronize people's restaurants in cities where the quantity has been limited to one or two small glasses, complain about the scant portions. Such difficulties are aggravating, but they are not irreparable. T h e quantity may be changed by the local communal authorities, the system companies, or the board of control. T h e r e are, however, certain weaknesses which apparently are inherent in the plan, and these merit at least a passing appraisal. Americans who have experienced similar restrictions, insist that a meal is ordered merely as a condition to procuring liquor. Owing to differences in drinking customs, that objection has more weight in America than in Sweden. T h e " r e striction sandwich," designed to meet the meal requirement, is not unknown, but its use is not a major problem. Ordinarily, a Swede orders liquor with his m e a l ; he does not order a meal to get the liquor. In the people's restaurants, where both food and intoxicants are inexpensive, one would expect men 29

T h i s price list is taken from "Utskänkningsprisen för S t a n d a r d v a r o r n a , " in Tidskrift for Systembolagen, J u l y , 1932, p. 148.

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to o r d e r a meal to get the spirits, but, while many patrons of these eating places take all the liquor which the rules permit, they also consume the food. In the better-class restaurants, a snaps is ordered as a complement to the meal. I have been in restaurants, badly managed f r o m the temperance standpoint, where the p a t r o n s were liquor-conscious and o r d e r e d the minimum of f o o d and the maximum of spirits, but even here they consumed the food and it was substantial f a r e . A n o t h e r objection to the meal requirement with a maximum quantity of intoxicants is t h a t it makes the diner liquorconscious. I t is argued t h a t he feels he is entitled to the maximum and insists on the full amount. Restaurateurs have inf o r m e d me t h a t this attitude was common when the plan was first introduced, but is becoming less prevalent. People have become adjusted to the plan, accept the maximum as a m a t t e r of course, and o r d e r liquor according to their desires. Some take the full amount, others take nothing. In most instances, those who take the limit probably do so because they want it, and not because it is the maximum. M a n y a diner would certainly o r d e r more than the maximum if the restriction were removed. T h e meal requirement is also objected to on grounds of expense. O n e frequently hears the argument t h a t the immoderate user is going to have his liquor anyway, and that, when you compel him to buy a meal, you either cause him to make an expenditure which he can ill afford or you close the service t r a d e to him and make him a prey f o r the bootlegger. T h a t sounds plausible, but the difficulty is that a cheap service trade would undoubtedly tend to increase the number of intemperate users and d e f e a t the purposes of restrictive regulations. T h e economic salvation of the inebriate seems to be a r a t h e r forlorn hope, but a more valid objection to the costs entailed by the meal requirement comes f r o m cultured and temperate people of m o d e r a t e means. T h e restaurants maintain orchestras and the Swedes love good music. I have frequently heard arguments like t h i s : " I t would be nice if we could take the

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f a m i l y and some guests to a restaurant f o r dinner, but that runs into money. T o g o there and o r d e r only beer or c o f f e e — well, that is not the thing to do. But if we could eat our meal at home and then g o to a restaurant f o r our coffee and a bottle of wine o r a little punsch, we could enjoy a short concert and have a most agreeable time at a price which we can a f f o r d to p a y . " Such wholesome and civilized f o l k merit consideration. T h e i r s is a reasonable appeal. In some localities, where the restrictions a r e not taken too seriously, the källarmästare takes matters into his own hands and serves such guests. One waitress assured me that " G o o d people a r e entitled to g o o d g r o g g , because our L o r d hath willed it s o . " T h a t may be sound theology, but I am a bit skeptical about leaving the violation of restrictions to the discretion of a waitress o r a källarmästare. H o w e v e r , a moderate mitigation of the meal requirement f o r good people might h a v e a salutary effect. Finally, there is the serious c h a r g e that the service t r a d e is a principal source of drunkenness. T h i s charge may readily be substantiated with police statistics, providing one is so willing to be convinced that he does not scrutinize the figures too critically. F o r example, a study w a s attempted in Stockholm of 292 cases of d r u n k e n n e s s — 2 7 8 men and 1 4 women. In only ι 2 cases w e r e the sources of intoxicants entirely unknown ; in only 4 were they " f u l l y k n o w n . " O f the remaining cases " m o r e or less k n o w n , " 24 became intoxicated on pass-book liquor—the drunks are usually without pass books and do not expose the person who supplied the intoxicants; 1 6 had imbibed smuggled spirits, but did not reveal the sources; 4 0 had found " o t h e r s o u r c e s " ; 1 9 1 h a d frequented restaurants, and a f t e r w a r d s had saturated themselves with f r o m ten to twenty bottles of beer. 3 0 Such figures are not flattering to the service trade, but they must be accepted with a grain of salt. T h e restaurant and beer c a f é are legitimate sources, and the intoxicated person 30 " V a r i f r l n härleder sig r u s m e d l e t ? " 1926.

in Tidskrift

for

Systembolagen,

April,

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who is picked up is very apt to insist that he drained the cup, if not in a respectable, at least in a legitimate fashion. If he confesses to procuring his supplies through illegal channels, he incurs the approbrium, not only of drunkenness, but of abetting the illicit trade. F o r this reason, what Sven Holm has happily phrased the "lie percentage" (lögnprocenten) is a factor of error to be reckoned with. Also worth considering is his criticism of the police practice of recording the last place where intoxicants were consumed as the source of drunkenness. 31 A man may indulge freely before going to a restaurant, but so long as he remains outdoors in the cold he appears sober. H e enters a warm restaurant and the liquor takes effect. H e becomes tipsy and incoherent, but it is not the limited amount which he consumed in the restaurant that did the trick. In the cities, the serving places, especially the company restaurants, are guarded by a special police known as the ordningsman whose duty it is to maintain order. In some cities, he is employed and paid by the system company, but is deputized as a special policeman and authorized to make arrests. The Stockholm company employs about a hundred of these sturdy gentlemen. They are stationed either singly or in pairs at the entrance to company restaurants and other serving places where they might be needed. In Stockholm, one even finds them at the entrance to the larger beer cafés. T h e restaurant or café using them has to pay the system company for their services. They perform the useful function of protecting the serving place and preventing intoxicated persons from making public nuisances of themselves. The service trade is successful from the standpoint of public revenue. In 1 9 3 1 , a depression year, the system companies realized profits of approximately 8,000,000 kronor from their restaurant business and the exercise of their own serving rights. 32 In connection with the let-out rights, the companies 31

" P o l i s m y n d i g h e t e r n a och Fylleristatistiken," in Tidikrift for Nov., 1932. 82 Report of the board of control f o r 1 9 3 1 , Rusdrycksförsäljningtn,

Systembolagen, p. 26.

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realized additional returns in excess of 6 , 0 0 0 , 0 0 0 k r o n o r f r o m the sale of intoxicants to private restaurants. 3 3 T h e s e profits revert to the state. In addition, the state, during that y e a r , collected a service tax on spirits which yielded more than 6 , 5 0 0 , 0 0 0 kronor. 3 4 In other words, in 1 9 3 1 , the public revenues f r o m these sources alone exceeded 2 0 , 0 0 0 , 0 0 0 k r o n o r , or more than $ 5 , 0 0 0 , 0 0 0 under the normal rate of exchange. H a n d s o m e as these revenues are f o r a small country like Sweden, they, by no means, tell the whole story. T h e y do not include the turnover tax on spirits, which runs into millions of k r o n o r f o r the liquor consumed in the service t r a d e alone. N e i t h e r do they include the taxes on p r o p e r t y used in the service trade nor taxes on incomes derived f r o m this phase of the traffic. T h e balance sheet is a pleasant side of the picture, but the fact remains that the problem of the service trade has not been solved s a t i s f a c t o r i l y . It is not an easy nut to crack, and if one were to f a c e the problem with typical A m e r i c a n impatience he would be tempted to ask, w h y not eliminate the service trade entirely? T h a t would not be a solution. T h e r e are those who are destined to dine in restaurants and they want a snaps with their smorgasbord. E a t i n g is a ceremony, as well as a necessity. People find it convenient to stage their little festive occasions in a restaurant and, to many, a meal without spirits or wine is rather flat. In Belgium, the problem seems to have been solved f a i r l y satisfactorily by eliminating spirits f r o m the service trade. Such a plan might c o n f o r m with A m e r i c a n habits if the cocktail w e r e permitted. But the Swede is a snaps d r i n k e r ; he takes his liquor s t r a i g h t ; and any regulations at variance with national customs are bound to encounter obstacles. Plans have been suggested both to supplement and to replace the present method of control. One frequently hears the proposal to require restaurant permits f o r the service trade, the same as pass books to purchase at retail. T h e plan has 33

¡bid., p. 33. « Ibid., p. 54.

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merit, in that it would provide a check on the immoderate user, but it would be difficult to administer. In the retail trade, a pass-book holder is not only under the jurisdiction of a particular system company, but he is assigned to only one liquor store. Even under these conditions it is not easy to administer the proper checks. T h e r e s t a u r a n t t r a d e is m o r e or less transient and it would be extremely difficult to apply a permit system of control under such conditions. Regardless of its possibilities as a method of identification, such a plan would probably be unpopular. I t would necessitate a g r e a t deal of needless inconvenience and embarrassment and lend weight to the criticism that the B r a t t System is bureaucratic and enmeshed in red tape. Another suggestion is to abandon the meal requirement and maximum-quantity restriction, and insure m o d e r a t e indulgence by the simple expedient of raising the price of liquor in the service trade by imposing heavy taxes. T h i s would violate a wholesome tradition of fair play by tending to close the service to the economically unfortunate. I t is very d o u b t f u l whether such a plan would result in temperance or public welfare. T o be sure, drunkenness is confined principally to workingmen and they patronize the people's restaurants, where they can get a wholesome meal and a snaps f o r a small price. M a n y of them, however, would forego the f o o d if the meal requirement were removed and the price of the snaps were raised. This plan would also tend to reinstate the old krog, against which the early sponsors of liquor r e f o r m s struggled so valiantly. And then there is always the illicit t r a d e to be reckoned with, if prices are raised to a prohibitive point. A more extreme suggestion is the plan to abolish the present restrictions and leave the m a t t e r to the discretion of the källarmästare. It is argued that a r e s t a u r a t e u r is anxious to maintain a good reputation f o r his place and it is to his interest not to serve those who are intoxicated or who are known to be inebriates. T h e sponsors of the plan argue t h a t if selfinterest is not a sufficient prod, the källarmästare can readily be made criminally liable. Regardless of whatever virtues

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I49

such a scheme may have, it will not be adopted in Sweden f o r some time. It would be considered a step backward, a step in the direction of the krog, and that venerable institution is no more popular in Sweden than the saloon is in the United States. Such plans are inspired purely by thoughts of temperance and an avoidance of aggravating restrictions. T h e y are not concerned with the more important problem of the distribution and exercise of serving rights. T h e suggested solution f o r this, as I have noted, is to eliminate private profits entirely, but the restaurant interests have been able to block any effective movement in this direction. T h e problem of the service trade remains unsolved. One hears murmurs of discontent among restaurateurs, temperance people, laborers, the middle class, and even the managers of system companies. N o one can say what changes will be made, but I venture the guess that drastic alterations will not be attempted suddenly. In legislation, at least, the Swedes reflect the virtues of patience and temperance. T h e y will probably hold to what is good in the present system while seeking to remedy its defects.

V i l i

BEER O N g r o u n d s o f strict construction, the subject o f b e e r m i g h t be e l i m i n a t e d f r o m a discussion o f S w e d i s h l i q u o r r e g u l a t i o n . W h e n a S w e d e s p e a k s o f intoxicants

(rusdrycker),

he d o e s

n o t include b e e r . B e e r is s o m e t h i n g

different. It d o e s

not

c o m e w i t h i n the p u r v i e w o f the sale o f intoxicants act, but is r e g u l a t e d b y a s e p a r a t e l a w e n a c t e d in 1 9 1 9 a n d as t h e pilsnerdricksförsäljningsförordningeti, t h e sale o f pilsner. 1

known

o r act r e g u l a t i n g

I t d o e s not c o m e u n d e r the jurisdiction o f

V i n - & S p r i t c e n t r a l e n and t h e v a r i o u s system c o m p a n i e s . Finally, unlike the traffic in spirits and wine, all p h a s e s o f the b e e r t r a d e a r e usually c o n d u c t e d b y p r i v a t e initiative and the profit m o t i v e is not absent. B u t d e s p i t e these exceptions, I f e e l c o n s t r a i n e d to a t t e m p t a discussion o f the b e e r t r a d e .

B e e r m a y not be listed as an

intoxicant, but it is a source o f i n t o x i c a t i o n .

I t f u r n i s h e s its

f u l l q u o t a o f p r o b l e m s in any plan o f l i q u o r c o n t r o l , and these p r o b l e m s a r e closely linked up w i t h the r e g u l a t i o n s g o v e r n i n g t h e traffic in spirits a n d wine. T h e v e n t u r e of V i n - & S p r i t c e n t r a l e n in the b r e w i n g indust r y is past h i s t o r y , but it m a y be cited as an illustration o f t h e necessity o f c o o r d i n a t i n g all p h a s e s o f liquor c o n t r o l , including b e e r .

O w i n g to the f o o d s h o r t a g e , the alcoholic content

o f m a l t b e v e r a g e s h a d been reduced d u r i n g t h e crisis y e a r s o f 1 9 1 7 and 1 9 1 8 . T h e ban on h e a v i e r b e e r w a s l i f t e d w h e n t h e crisis w a s past, b u t the l i g h t e r b r e w s w e r e continued b y v i r t u e o f an a g r e e m e n t a m o n g t h e b r e w e r s . T h e n D . C a r n e g i e and

Company,

leading producer of

p o r t e r in t h e

country,

s e r v e d notice o f its intention to resume t h e b r e w i n g of h e a v i e r beverages.

A t o o - l i g h t p o r t e r is not p a l a t a b l e , and the c o m -

T h i s l a w ¡9 u s u a l l y r e f e r r e d to as " P f f . " and it w i l l p r o b a b l y be more Conv e n i e n t to use this a b b r e v i a t i o n in c i t i n g it. 1

BEER

151

pany's sales were falling off. A t that time, Vin- & Spritcentralen was a subsidiary of the Stockholm system company, and Doctor Bratt and his associates viewed the decision of Carnegie and Company as a threat to their carefully laid plans f o r a system of liquor control. If one company began the production of heavy brews, others would be forced to follow. T h e immoderate user of alcohol would then be diverted from a closely regulated spirits and wine trade to the unrestricted beer traffic. H e a v y brews would thus tend to nullify the effects sought by the Bratt plan of control. Viewed in this light, the problem required drastic action. T h e company deciding to brew a more potent beverage was acting within its legal rights. T h e r e was only one recourse f o r the sponsors of the Bratt System, and that was to buy the Carnegie company. Vin- & Spritcentralen bought Carnegie and the lighter brews were continued. In 1 9 2 3 , the act was passed forbidding the sale of heavy beer and this legislation removed the necessity of extralegal control. T h e result was that as soon as Vin- & Spritcentralen could dispose of D. Carnegie and Company without too great a sacrifice, it sold out, and since then the wholesale and retail monopolies of spirits and wines have not concerned themselves with beer. T h e act of 1 9 2 3 divided malt beverages into three classes, on the basis of alcoholic content. Each of these classes is governed by separate statutory regulations. Class I corresponds to the American "near beer," but is a closer approach to the real article. T h e alcoholic content is limited to a maximum of 1.8 percent by weight. 2 This brew is of two types, namely, "weak drink" (svagdricka) and "malt drink" (maltdricka). T h e distinction is based on the quantity of the wort or malt extract contained in the brew, which makes a difference in the 2

I t s h o u l d be noted that the w e i g h t s t a n d a r d is used in r e g u l a t i n g m a l t b e v e r a g e s , w h i l e the v o l u m e s t a n d a r d is e m p l o y e d in s p i r i t s a n d w i n e s . This is s o m e w h a t c o n f u s i n g , but it is i m p o r t a n t to o b s e r v e that 1.8 percent b y w e i g h t is the s a m e as 2 j 4 percent by v o l u m e , w h i c h is the m a x i m u m f o r " n o n a l c o h o l i c " f e r m e n t e d or d i s t i l l e d b e v e r a g e s . If a m a l t d r i n k exceeds this m a x i m u m , it c o m e s w i t h i n the p u r v i e w of the act r e g u l a t i n g the s a l e of p i l s n e r . I f the m a x i m u m is e x c e e d e d by spirits or w i n e , it p l a c e s them w i t h i n the p u r v i e w of the s a l e of i n t o x i c a n t s act.

152

BEER

flavor; but in neither case may the beverage exceed the 1.8 percent alcoholic content, and the malt drink which contains a higher percentage of extract is specially treated by a pasteurization process to prevent further fermentation. Class I is not considered beer. I t is practically tax-exempt, and the trade in it is regulated by a separate statute. 3 T h e sale of this brew is relatively unrestricted. Its status is comparable to that of tea, coffee, chocolate, or s o f t drinks. Class I I consists of brews with an alcoholic content of not less than 1.8, and not more than 3 . 2 , percent by weight, and with a malt extract of not more than 10.5 percent. T h i s is what you get when you order ale, lager, porter, or pilsner. T h e preparation of these brews varies, of course, and so does the extract, but the alcoholic content must not exceed the 3.2 maximum. Swedes used to heavier brews r e f e r to it as a light beer, but 3 . 2 by weight slightly exceeds 4 percent by volume. T h e lager or pilsner approximates the malt beverages to which we were accustomed in the United States before the advent of the Eighteenth Amendment, and the alcoholic content is about the same as the maximum fixed by the congressional enactment of M a r c h 22, 1 9 3 3 , legalizing the sale of beer in this country. T h i s is the beer of Sweden, and a discussion of the beer trade must concern itself primarily with Class I I . Class I I I includes malt beverages of a heavier alcoholic content than that permitted in the second class. Beer in this class is commonly referred to as " e x p o r t ale" (exportöl). It may be brewed and sold in the export trade, but its sale f o r beverage purposes is prohibited within the kingdom. T h e importation and domestic sale of this heavy brew is limited to scientific, medicinal, pharmaceutical, industrial, and similar purposes. It is sold in drug stores under a doctor's prescription. Ships plying between Swedish and foreign ports are licensed to serve it to passengers, but no retail or service rights 9 A c t of M a y 8, 1 9 2 s , "concerning the sale of certain nonalcoholic and similar beverages."

BEER

153

are granted in Sweden. W e need not concern, ourselves here with this class of beer. It is outlawed as a beverage. T h e principal effect of the 1 9 2 3 restrictions was to prohibit the importation and sale of heavy brews. W e must seek elsewhere f o r the regulations governing the production, distribution, and sale of malt beverages, and our quest reveals a slow growth, rather than sudden and radical departures. E a r l i e r regulations were not concerned with restricting sales, but, on the contrary, sought to compel innkeepers to have beer on hand f o r their guests. A s early as the middle of the fourteenth century, the solicitous M a g n u s Eriksson promulgated such a requirement as the rule of the realm. Similar provisions were contained in the general regulations of 1 7 3 4 governing wine and malt beverages. 4 During the first half of the nineteenth century, Swedish legislators were occupied with brännvin regulations, but in 1 8 6 6 their attentions were diverted to beer and wine, and an act was passed to regulate the service trade in these and other nonspiritous beverages. T h i s law instituted a sort of licensing system. B e f o r e he could engage in the trade, the vender was required to file with the state or communal authorities a written statement of his intentions, to furnish proof of his character, and to give a description of the place where the trade would be conducted. M i l d as these regulations were, they at least prevented a clandestine trade and made possible a check on the traffic. T h e retail trade in ale and wine to be consumed off the premises, was left practically unrestricted. H o w ever, a start had been made and, at the beginning of the present century, a special license was required f o r the service trade and also f o r the retailer who sold in less than ten-liter quantities. T h i s requirement did not apply to the brewer who sold beer in smaller quantities directly f r o m his brewery. A decisive step was taken in 1 9 0 3 , when the state resumed taxing the production of beer. Brewing had been tax-exempt 4 For this brief historical survey, I am indebted to Den Svenika Bryggeriindustrxen, ¡Cooperativa Fórbundets Bokförlag (Stockholm, 1 9 3 1 ) , chap. ii.

154

BEER

since 1848. T h e 1 9 0 3 enactment was not only of importance as a revenue measure, but it placed the breweries under the supervision of the state. T h e act also necessitated a distinction between the production and the vending of beer—a distinction which has continued up to the present. Finally, the law discriminated between taxable and tax-exempt brews. T h e former included the heavier beer, the latter the lighter malt drinks which I have mentioned as Class I. T h i s distinction has also been continued, and since 1905 separate regulations have governed the sale of weak malt drinks and heavier beer. Home brewing for domestic use is neither taxed nor prohibited. T h e present regulations are based on the general statute of 1 9 1 9 , with its subsequent amendments. This law, regulating the beer trade, is specifically limited to Class I I brews. 5 L i k e the traffic in spirits and wine, the beer trade is divided into wholesale, retail, and service, but the rules are less rigid. T h e brewer may sell to the retailer or directly to the consumer, and the same establishment may exercise both retail and service rights. T h e retail trade is complicated by the statutory recognition of three different types of vending, namely, selling to a customer who calls f o r his wares, filling the orders of a customer, and peddling ( k r i n g f ö r i n g ) or selling f r o m a wagon on a beer route. Certain requirements are common to all phases of the traffic. T h e sale of beer may not be conducted without a license, and to procure this privilege a person must be of age, must be solvent, and must furnish proof of his character and responsibility. T h e traffic may not be carried on by any public official or employee charged with the duty of supervising the trade or enforcing regulations. T h e trade may not be conducted in connection with any other business except the serving of food. T h e retail, or service, trade is not permitted on a military reservation. N o person may sell beer fortified with saccharine. T h e vender cannot collect f o r beer served on 5

Pff., sec. ι . T h i s section specifically exempts C l a s s I b r e w s f r o m the o p e r a tion of the statute.

BEER

155

credit, unless it is served in connection with a meal. Besides these general statutory restrictions, there is the force of local option. E v e r y city or rural commune has the right to prohibit or restrict the traffic. T h i s communal privilege has been fully recognized since 1 9 0 3 . T h e trade, like that in spirits and wine, is regulated by rights or licenses to sell ( f ö r s ä l j n i n g s r ä t t i g h e t e r ) , and the statute regulating the sale of beer is similar to the sale of intoxicants act in that it divides these privileges into wholesale, retail, and service rights.® Rights to the wholesale trade are limited to brewers licensed by the crown and to other persons licensed by the county governor. A wholesaler is defined as one selling to a retailer. Delivery may be made only to the store of the retailer or to a common carrier. Rights to the retail trade are more complicated. T h r e e classes of dealers are not required to procure a special license to engage in the retail trade, but enjoy this privilege by virtue of other rights conferred upon them. T h e s e are ( 1 ) the brewers who are privileged to produce beer and sell it f r o m the breweries; ( 2 ) persons with rights to the retail trade in spirits and wine—a class which, under the present arrangement, includes only the system companies; ( 3 ) persons licensed to conduct the service trade and privileged to sell beer to be consumed off the premises. A special license is required of all other retailers, and this is granted by the county governor only upon a written application specifying the place where the trade is to be pursued and giving proof of the applicant's character and qualifications. B e f o r e issuing the license, the governor must r e f e r the request to the local authorities concerned. T h e license may not be granted if the local city council or rural communal assembly objects. Special statutory provisions govern the exercise of retail rights, especially with regard to delivery. T h e brewer or wholesaler is authorized to fill orders, but delivery must be 6

T h e s e rights are covered in the second chapter of the act and it should not be necessary to r e f e r to specific sections and clauses. See P f f . , ch. 2, " F ö r s ä l j ningsrättigheter."

156

BEER

made "indoors" ( i n o m h u s ) at the residence of the buyer, or the goods left with a common carrier. T h e same regulations apply to a licensed retailer delivering beer to a local resident. T h e county governor may permit a brewer to establish distributing stores, but this requires the consent of the authorities of the commune where the store is to be located. T h e statute permits beer routes in the cities, and these routes may be extended into the suburbs, providing the local communes consent. T h i s privilege, however, is limited to the brewer selling his own product; delivery must be made indoors, and the approval of the city authorities is necessary. Beer routes in rural districts are prohibited by law. T h i s last provision is one of the few violations of local option, but it may be justified on the ground that it seems to conform with rural public opinion. As in the retail trade, the act regulating the sale of beer exempts certain classes f r o m the necessity of a special license to engage in the service trade. A person with service rights in spirits and wine may serve beer in the place where he exercises these rights. In connection with their food service, innkeepers may serve beer to their guests without a special license. T h e same is true f o r a person who runs a boarding house. But while these classes are exempt by statute, it should be remembered that local authorities may impose their own restrictions. Rights to engage in the service t r a d e are granted by the county governor, with the consent of the local authorities in the commune where they are to be exercised. T h e license is issued f o r a period not to exceed three years. N o license may be granted without a commune's consent. Even in special cases, such as railways or steamships, a license to serve beer in a station restaurant or lunch room may not be granted without the approval of the local city authorities. In issuing a license, the governor may impose necessary restrictions, but the licensee may not be required to purchase his supplies f r o m a particular seller. T h e license specifies the place where the trade is to be conducted. A complete

BEER

157

record of all licenses is on file in the office of the county governor, and local police officials are kept informed. T h e wholesaler also is required to keep a record of all his sales, and his books are open f o r inspection to the governor, the board of control, the public prosecutor, and the supervisors of temperance. Besides providing f o r a licensing system, the statute lays down certain requirements regarding the physical surroundings of places where the trade is carried on, and provides regulations f o r the conduct of the traffic. 7 Sales rooms must be located on an open street, road, or square. Serving places must be roomy, light, and well ventilated. Before a serving license will be granted, the place must be approved by a special committee. Fresh drinking water must always be available in every serving place. T h e Swedes are farseeing and thorough in their legislation, and if someone ever should call f o r a glass of water in a beer café, he can demand service in the name of the law. T h e legal regulations governing the conduct of the t r a d e are relatively few and simple. Neither the retail nor service trades may be conducted a f t e r ten o'clock at night, but the county governor, with the approval of the local authorities, may make exceptions. T h e retail trade is prohibited in the country on Sundays, and may not be conducted in the cities a f t e r ten o'clock in the morning on that day. T h e service t r a d e is forbidden during the hours set aside for religious services {högmässogudstjänst). Beer may not be consumed in a café which does not have a beer-serving license; neither may spirits nor wine be consumed in a beer café. In the retail trade, beer may not be released to a child under sixteen years of age. It may not be sold nor released to a person visibly under the influence of alcohol. Neither may it be sold when it is obvious that it is intended f o r intoxication or f o r illegal sale. Finally, an intoxicated person may not be ejected f r o m a serving place where he has consumed beer, nor be permitted to leave without custody. T h i s last requirement, fortunately or unfortu7

T h e s e regulations are contained in Pff., ch. j.

158

BEER

nately, is sometimes honored in the breach as well as in the observance. 8 A license is subject to revocation or suspension if a person violates statutory regulations o r conducts the trade in a disorderly fashion. T h i s applies, not only to the service trade, but to the retailer, wholesaler, and even the brewer. But the action may not be arbitrary. T h e person whose rights are affected is entitled to a hearing. Suspension or revocation of the license is not the only club which may be used to assure an orderly conduct of the traffic. T h e act contains a chapter devoted to penalties. 9 C o m p a r e d with A m e r i c a n standards, these penalties a p p e a r mild, but they are enforced with g r e a t e r frequency and impartiality. Such, briefly, is a summary of the law regulating the sale o f beer. I h a v e sought to a v o i d unnecessary details. T h e statute furnishes a basis f o r an understanding of the regulations, but it must be recognized as merely laying down a set of minimum requirements. E v e r y commune m a y determine its own regulations, and there is considerable variation with r e g a r d to the conduct of the trade, the hours of sale, the quantity served, and so on. In a Stockholm c a f é , one is limited only by his capacity to pay and contain. In U p p s a l a , one is restricted to t w o bottles; in some places, one bottle is the limit. 10 T h e value of these restrictions is questionable. It is of little avail to limit a person to the purchase of two bottles in a c a f é if he can g o to a retail store and buy beer by the case at approximately half the price which he has to pay in the c a f é . W i t h such variations, it is difficult to evaluate the effectiveness of Swedish beer control. In most sections, the retail trade seems to be f a i r l y well regulated, and one hears f e w comIn d i s c u s s i n g the p r o v i s i o n s of the act r e g u l a t i n g the s c a l e of pilsner, I find m y s e l f c o n s t a n t l y u s i n g the w o r d " b e e r . " T h e w o r d s " p i l s n e r " or "pilsnerdricka" a r e used in the statute. T h e act r e g u l a t e s the s a l e o f C l a s s I I b r e w s , and these i n c l u d e l a g e r and p o r t e r as w e l l as pilsner. It h a s received its n a m e f r o m the f a c t t h a t pilsner is by f a r the most p o p u l a r type of b r e w in S w e d e n . " P f f . , ch. 4.

8

1 0 In c a f é s , b e e r is s e r v e d in bottles of a s t a n d a r d i z e d and u n i f o r m c a p a c i t y of o n e - t h i r d liter.

BEER

159

plaints. In some localities, notably in rural areas where farm laborers stage "beer busts," beer seems to be the principal source of drunkenness. T h e service trade in restaurants presents little difficulty from a temperance standpoint. Here beer is consumed as a table drink, and the diner very seldom takes more than one bottle with a meal. T h e institution which presents the greatest difficulties is the beer café. By beer café I mean a place licensed to serve beer, either with or without food, but which does not have serving rights in spirits or wine. T h e r e are, of course, cafés without beer rights. T h e beer café is popular, especially in the cities. In Stockholm there are some four hundred of them. In many respects these cafés are the nearest approach to the old American saloon, and, like that institution, they have their good and their bad sides. T h e y are frequented principally by laborers. Here the worker comes in his overalls or leather apron, and eats or drinks with his cap on. Frequently he brings his lunch pail, and orders pilsner or a pot of hot coffee. Food is cheap, home-cooked, and wholesome. Much of the business is in food and coffee service, but the bulk of it is in beer. There is an air of welcome and hospitality. T h e aroma of soup from the kitchen, mingled with that of coffee and beer, is glorious on a frosty day. T h e waitress is plain, but courteous and pleasant, knows most of the customers, and engages them in friendly banter. Newspapers are left on the tables and the men read, discuss politics, talk shop, and argue about the relative merits o f this or that type of building material. O f evenings, there is a game of chess in progress, with plenty of free and unsolicited advice on either side of the board. Pilsner is about seven cents a bottle; porter is about a third more. T h e five ore tip brings a smile and a tack sâ mycket. T h e place closes at a reasonable hour, and everyone is wished a "Good night, sleep in peace." T h a t is one type of beer café. Unfortunately, all cafés are not like that. At the other extreme, one encounters badly managed and policed places. They are dismal resorts. M e n already under the influence of

ι6ο

BEER

liquor come there to guzzle beer. Some are maudlin. T h e bootlegger makes the place his rendezvous. T h e källarmästare is shifty-eyed and hard. T h e barmaid hands back insult f o r insult. T h e ordningsmati has his hands full. T h a t is another type of café. Such disparity of standards makes the beer café a social problem. Operated under private management and f o r private profit, it is difficult to realize uniform standards. But the problem is not only one of temperance. T h e profits of a wellpatronized beer café are handsome. Beer delivered from a Stockholm brewery to the counter of a café f o r sixteen ore a bottle is served f o r thirty oreSuch profits are excessive and instead of reverting to the public, as in the case of spirits and wine, they go into the pockets of the café owner. T h e need of regulation, and the desire to have the public participate in the profits, have resulted in a corporate method of operation similar to the system companies. This plan is known as the Sundsvall System {Sundsvallssystemet), deriving its name from the city where it originated. T h e movement is not yet widespread, but it has promising possibilities, and if Americans are honestly seeking a substitute for the saloon and a method of regulating the beer trade, they may learn some lessons from this plan. 12 T h e situation which brought about the Sundsvall plan was similar to that which inspired the early system companies. Spirits had been divorced from the beer café. T h a t was a step in advance. But the café still was a problem. It was difficult to regulate, and excessive profits were realized on a small outlay of capital. C a f é owners took a profit of twentyfour ore (about six cents) on a bottle of pilsner and the returns, with the exception of taxes, reverted to private individuals who remained intractable. Under these conditions, a company was organized, and asked f o r a license to conduct 11

Den Svettika Bryggeriindustrien, p. 122. For my information regarding the Sundsvall System, I am indebted to Olaf Alström's brochure, Sundsvallssystemet. As a member of the city council of Sundsvall, he has been in close contact with the plan, and I have every reason to believe that his is an accurate account. 12

BEER

l6l

the service trade, with the conditions that the profits would revert to some public enterprise. T h e plan had the support of the brewers as well as the local supervisors of temperance, and the city council, in 1 9 2 2 , granted the company a license to operate one café as an experiment. It was successful from the start. Before the company began to function, the nine privately operated cafés had paid a yearly tax of 44,200 kronor. During the first eleven months of its existence, the one company café alone returned approximately 40,000 kronor to the public. These returns are even more startling when we consider that the company café was serving beer at a reduced price, and limiting the amount which a customer could order. It is estimated that, despite its limited output, if the company café had charged private café prices, it would have returned more than 70,000 kronor to the public. And this was in a year of unemployment and scarcity of money. T h e experiment was continued, and in January, 1 9 2 6 , the city council voted to give the Sundsvall C a f é Company ( K a f é a k t i e b o l a g ) sole rights, beginning with October I, to the service trade in beer, except in restaurants where it could be served with meals. In June, the rights were extended f o r three years and the Sundsvall System had a chance to prove its worth. T h e company is patterned after the system companies as nearly as possible. Its by-laws fix the capitalization at not less than 10,000 and not more than 30,000 kronor. This is divided into shares of 100 kronor each. Earnings are limited to 6 percent on the capital actually invested. T h e surplus goes to some worthy public enterprise, selected jointly by the company and the city council. T h e original venture was a home f o r old people in straightened circumstances. It has not been considered wise to turn the earnings into the city treasury, because under such conditions a city council, hard pressed by taxpayers, might be tempted to encourage, rather than restrain, the consumption of beer. T h e company board of directors consists of five directors and five alternates. Of these, three directors and three alternates are chosen by the city

IÓ2

BEER

council and the remainder are selected by the company. T h e public thus has a controlling voice in the direction of the company affairs. T h e city council selects two auditors and the company one. Unlike the system companies, the café company is purely a municipal enterprise, the state and county having no voice in its management. W h a t have been the results? H e r r Alström notes that during the first eight years of its existence, the company returned in profits and taxes more than 700,000 kronor, and during half of this period it operated only one c a f é ! Sundsvall has a population of 18,000 and is located in an area where the per-capita beer consumption is relatively low, when compared with centers like Stockholm and Gothenburg. All of which goes to show there is profit in beer, and a wise city will reap the benefits. But the profits are not the most important feature. Among the many advantages to which the sponsors point with pride are ( 1 ) the realization of disinterested management, ( 2 ) limitation of the amount served to a person, ( 3 ) a price reduction of 25 percent, ( 4 ) increased taxes to state and commune, ( 5 ) large funds f o r public welfare purposes, ( 6 ) closer control over the conduct of customers, and ( 7 ) improved serving places. T h e company café still is a very small factor in the service trade, but the movement has made headway. C a f é s of this type are operated in Stockholm, Gothenburg, Malmö, and in some ten smaller centers. T h e Norma C a f é Company (Kaféaktieboìaget Norma) in Stockholm is worthy of notice. This company operates on a limited dividend of 7 percent. So far, the surplus has not been turned over to the public, but has been ploughed back into the business and the company has expanded. By 1 9 3 0 , it operated 21 cafés; its assets were nearly 1,000,000 kronor; and its yearly income and expenditures exceeded 1,500,000 kronor. F o r the year ending September 30, 1 9 3 0 , its net earnings exceeded 1 7 3 , 0 0 0 kronor. 1 3 A l l of the N o r m a cafés are comfortable and attractive. 13

A n n u a l report of the company covering Sept. 30, 1930.

the period f r o m Oct. i ,

1929, to

BEER

163

Some are palatial. F o o d is inexpensive and beer is served f o r the same price one p a y s in a less inviting private c a f é . T h e company has located its establishments in different parts of the city, with the result that they h a v e had a salutary influence on the c a f é business throughout Stockholm. W h e r e v e r a N o r m a c a f é opens f o r business, the p r i v a t e c a f é o p e r a t o r is forced by the competition to i m p r o v e his place. N a t u r a l l y , the c a f é owner is not f o n d of N o r m a . H e is apprehensive, and views the expansion of the company as a threat to his interests. But his business is one of public concern, and N o r m a renders a public service to the extent that it compels him to live up to his responsibilities. M y only criticism of the N o r m a c a f é s is that they are too large and usually too ornate. A l a b o r e r in his working clothes is apt to feel ill at ease in a place like that. T h e l a r g e establishment, with numerous customers, makes possible an efficient and economical service; but it lacks the quiet, congenial, and hospitable atmosphere one frequently finds in the small c a f é on the corner. B u t that is a matter of taste; and the size and appearance of a c a f é obviously have no relationship to the company method of operation. In smaller cities, such as U p p s a l a , the company c a f é s are unpretentious and c o z y ; but here one is apt to find annoying restrictions r e g a r d i n g closing hours and the quantity which m a y be served to a customer. T h e s e limitations likewise h a v e no direct relationship to company operation, but are rather a reflection of local public opinion. J u d g i n g f r o m the c a f é s I have visited, I should say that if one considers such f a c t o r s as appearance, furnishings, equipment, service, policing, and general efficiency, there is no question but that the company c a f é is demonstrating its superiority. C o m p a r e d with such countries as Belgium, G r e a t Britain, G e r m a n y , D e n m a r k , o r preprohibition U n i t e d States, the Swedes are not a nation of beer drinkers. E v e n if we include the C l a s s I brews, that is, the " n e a r b e e r , " the annual percapita consumption of beer in Sweden f r o m 1 9 2 3 to 1 9 2 6 is approximately one-half what it w a s in the U n i t e d States f r o m

BEER

164 14

1 9 0 6 to 1 9 i o . Such facts are contrary to the impression one receives, if he confines his Swedish tour to Stockholm, which is the beer-drinking metropolis of the north. T h e production of the breweries in the v a r i o u s counties, in proportion to the population, indicates the v a r i a t i o n in beer consumption in different p a r t s of the kingdom. T h e highest is in the city of Stockholm, where the per-capita production of pilsner and l a g e r was 1 2 7 . 7 liters a y e a r in 1928—29. T h i s is f a r in excess of any other section, the nearest approach being G o t h e n b u r g and vicinity, where the per-capita amount w a s 44.8 liters. T h e figure f o r the whole country w a s only 2 4 . 2 liters. T h e annual production of C l a s s I w a s 2 0 . 1 liter per capita. T h e Stockholmer insists on a heavier brew, and, while the b r e w e r s in this city turned out 1 2 7 . 7 liters of Class I I pilsner and l a g e r per capita, their per-capita production of near beer was only 7.8 liters. I f we eliminate Stockholm, w e find that the people of the rest of the country consumed f a r m o r e near beer per capita than real beer. 1 5 T h e b r e w i n g industry, in its present f o r m , e v o l v e d during the last century. Its development may be accounted f o r principally by the substitution of steam f o r hand p o w e r , and by the introduction, in the forties, of the B a v a r i a n or l a g e r e d type of beer. L a g e r beer met with a popular reception and c r o w d e d out the earlier Swedish brews. T h e new brew was advertised widely and this, in turn, stimulated consumption. T h e old b r e w e r , operating on a small scale, frequently lacked the capital and equipment necessary to adjust himself to the new demands, and, as a result, he w a s eliminated. In his place, there arose the l a r g e b r e w e r y equipped with the then modern appliances. T h e old b r e w e r s w h o w e r e not crowded 14 Schultz, Κ . , "Internationell statistik over alkoholkonsumtionen," in Tidskrift for Systembolagen, Nov. 1 9 3 1 , p. 16. 15 Den Svenska Bryggeriindustrien, p. 31. T h e s e figures are based on 1928-29. T h e y do not g i v e an entirely accurate picture of beer consumption. T h e y are based on the output of breweries in different parts of the country, and the Stockholm brewer may ship beer to other sections. T h e figures are also limited to pilsner and l a g e r types. But the figures quoted will s e r v e f o r comparative purposes. T h e Swedish Statistical Yearbook f o r 1 9 3 1 shows the 1930 consumption of beer as 27.3, and that of near beer as 21.9 liters per capita, f o r the whole kingdom.

BEER

165

out were compelled to change from the old Swedish to the new German brew, and to rebuild and enlarge their plants. T h e trend was decidedly in the direction of large-scale production and increased output. Considerable quantities of near beer were produced; some of the heavier Swedish brews remained; but the leading beer was lageröl. Then came pilsner. This type of brew was introduced toward the end of the seventies, and soon endeared itself to the Swedish palate. Like lager, its sale was pushed by highpowered advertising. By the turn of the century, a third of the beer brewed in Stockholm, and a fourth of the country's output, was of the pilsner type. 16 By 1 9 3 0 , pilsner outranked lager by more than five to one. While the substitution of pilsner f o r lager has not necessitated the drastic alterations required by the introduction of lagered brew, nevertheless it has made adjustments necessary, and the change has been attended by increased production and sales. T h e introduction of standardized brews and quantity production necessarily resulted in competition; and the struggle f o r a market in Sweden, while less violent than in America, is strongly reminiscent of our beer wars. T h e tactics were commercially suicidal. Cutthroat price slashing was common during the sixties and seventies. A cartel composed of the larger breweries managed to retain a higher price level during 1 8 7 5 and 1876, but its influence was short-lived, and in 1 8 7 9 the price for a small bottle had sunk to the ridiculous figure of six ore, or approximately a cent and a half. Price cutting was not the only weapon. Brewers launched out on intensive advertising campaigns. Beer was sold under particular trade names, and in bottles with stamped corks and bearing the proper labels. Customers were showered with "compliments" in the form of serving trays, corkscrews, pocketknives, match cases, thermometers, pencils, "memorandum books with useful information," and even wall clocks. 17 Frequently the brewer had to turn banker, and carry a saloon 16

i'

Den Svenska Ibid.

Bryggeriindustrien.

BEER keeper (krögare) whose assets and character were such that no bank would extend him credit. It was not a good bank risk, but competition was keen and the brewer assured himself of a beer vender. Amusement places, comparable to the American "beer gardens," were attempted. A t the end of the century, one of the breweries in Stockholm sought a monopoly of the labor trade by a donation of 100,000 kronor of preferred stock to a workingmen's building enterprise. 1 ® Feeling the effects of the boycott which resulted from this handsome present, rival brewers had to contribute 120,000 kronor to have the gift returned and free trade reestablished in labor circles. Such competition made the industry insecure. The situation was not only unfortunate from a business standpoint, but, what was more important, it was undesirable from the standpoint of temperance and public welfare. There was need of organization and control within the industry itself, and this has made such progress that now one seldom hears complaints about competitive, high-pressure selling. On the contrary, especially in labor circles, one frequently encounters references to the "beer trust." T h e two principal organizations are the Swedish Brewers Association (Svenska Bryggareföreningett) and the Association of Brewery Operators (Bryggeriidkareförbundet).19 The Swedish Brewers Association was organized in 1885 to "advance common industrial interests and work for the elevation and progress of the brewing industry." From the start, it had a telling influence, and the nineties witnessed a regional 18

Folketi Husforeningen. Other organizations exist for special purposes. T h e Breweries' Insurance Association (Bryggeriernas Försäkringsförening) was organized in 1907 under the name " T h e Breweries' Protective Association against Boycotts." T h e purpose of the association is to furnish protection against organized-labor boycotts of the wares of breweries. There is also the Breweries' Employers Association (Bryggeriernas Arbetsgivarrförbund), which is a member of the national employers association (Svenska Arbetsgivareföreningen). These associations of employers in Sweden are comparable to what Americans refer to as "operators," as distinguished from, and frequently in opposition to, organized labor in various industries. Besides these associations of brewery operators, there are the organizations of personnel and labor unions within the industry. 18

BEER

167

price stabilization in various parts of the kingdom. T h e cartel technique had not attained its present refinement, and some difficulty was encountered in maintaining price agreements, but, in general, these agreements were observed. Until 1 9 0 6 , the Brewers Association was the only national coordinating agency. Since the organization of the B r e w e r y Operators, in that year, the Brewers Association has played a more passive rôle. It maintains an organization, supports a central bureau in Stockholm, holds national and regional meetings annually, and publishes a monthly trade organ. 2 0 I t cooperates with similar organizations in Denmark and N o r w a y in maintaining high standards and advancing the technical training of personnel. T h e brew master's diploma, granted a f t e r a period of apprenticeship, study, and examination, is honored in all three countries. Finally, the Brewers Association keeps a watchful eye on legislation. T h e Association of Brewery Operators is the active controlling agency within the "beer cartel." I t regulates prices and selling methods. T h e country is divided into districts, with somewhat similar conditions of production costs and consumption. T h e brewers in each of these districts agree upon a selling price, which must have the approval of the directors of the Brewery Operators. A n individual brewer is forbidden to lower the price agreed upon. T o do so, is to incur a penalty in the f o r m of a small levy, applied by the directors f o r every kilogram of malt which the recalcitrant brewer uses in his business. T h e obstreperous are thus forced to toe the line. M e m b e r s of the Association are forbidden to appeal to the courts, when the directors settle a dispute or impose a penalty. T h e directors of the Association are given a fairly free hand and, to insure impartiality, both the chairman and vice chairman must not be connected with any brewery. 2 1 Price fixing is not the only method used to eliminate the Svenska Bryggarejorrningens Mânadsblad. For want of a better term, I am using the w o r d "directors." T h e Swedish w o r d is förtroendenämnd, which implies a select committee authorized to act f o r an association. 21

BEER burden of competition. T h e Association f o r b i d s advertising which sings the praises of any particular brand. B e e r bottles a r e s t a n d a r d i z e d a n d no b r e w e r may d e p a r t f r o m the accepted model. T h e only distinguishing m a r k on a bottle is the p a p e r label on the outside. U n l i k e spirits and wine, beer is cheap and bulky. It is impractical to transport it o v e r long distances. A diffused allocation of breweries a p p e a r s to be an economical method of distribution. T h e r e are some 1 6 0 taxable breweries in Sweden. 2 2 C h a r t V illustrates the location of these establishments. 2 3 N a t u r a l l y the breweries are most numerous where the population is dense, and w h e r e a taste f o r beer has been c u l t i v a t e d ; but the m a p does not r e v e a l the true state of affairs, because it fails to indicate the output. T h e breweries are relatively small outside of the l a r g e r cities. A half dozen breweries in the vicinity of Stockholm turn out m o r e than a third of the country's output of beer. If w e a d d the production of G o t h e n b u r g and its environs to that of Stockholm, we can account f o r approximately half of the nation's output. T h e d r i f t in the brewing industry has been t o w a r d combination. T h e scattered breweries in the north, as a rule, are independent concerns, but in the central and southern parts of the country the industry is controlled by a f e w l a r g e combines. T h e largest of these is Stockholm's B r e w e r i e s , Inc., with a capitalization of some 3 0 , 0 0 0 , 0 0 0 k r o n o r . T h i s c o r p o r a t i o n does not limit its operations to Stockholm, but has reached out and taken o v e r breweries in adjoining counties. N e x t in line is P r i p p and L y c k h o l m , Inc., in G o t h e n b u r g . I shall not enumerate all of the combinations. Suffice it to say that regional combinations control the breweries in their respective a r e a s . T h e trend has been in the direction of monopoly. A national monopoly has been realized by the Association of B r e w e r y O p e r a t o r s , a local monopoly by the m e r g i n g of 22 In addition, there are over 500 tax-exempt breweries turning out near beer. These are usually smaller establishments, which cater to a limited clientele. 23 This map is reproduced from Den Svensia Bryggeriinduitrien, p. n o .

CHART

V.

DISTRIBUTION OF TAXABLE

BREWERIES

170

BEER

independent concerns. Unlike Vin- & Spritcentralen and the system companies, this monopoly is private, instead of public, and critics of the business insist that the state has encouraged the monopoly, and has failed to set up adequate safeguards f o r the consumer. But if monopoly was necessary to achieve an adequate control of the trade, it has justified itself. Unlike their erstwhile American brethren, the Swedish brewers got together and cleaned house. Despite the monopoly, the brewers' prices have not been unreasonable. T h e individual café owner has been the principal sinner in this respect. If communal authorities would always do their part in improving the service and retail trades, one would hear fewer criticisms against the brewer. Symbolic of the beer trade, the brewery has borne the brunt of much unjust criticism. T h e state has realized handsome returns f r o m beer. T h e present method of revenue dates back to 1 9 0 3 , when taxing was resumed a f t e r a half century of tax-free brews. T h e 1 9 0 3 enactment divided breweries into " t a x a b l e " (skattepliktiga) and "tax-exempt" (skattefria). T h e latter included breweries which made near beer, that is, brews of an alcoholic content of not more than 2^4 percent by volume. A l l others were taxable. T h i s classification is still used. T h e tax was, and still is, known as a malt tax (maltskatt). T h e breweries were taxed on the amount of malt worked up in the production of beer. T h e unit production costs would of course be greater in the small brewery, and the little fellow would find such a tax more burdensome. Consequently, a sliding scale was applied. A brewery was taxed 2 ore per kilogram f o r the first 30,000 kilograms of malt worked up during the year. 2 4 T h e tax was 5 ore f o r the next 30,000 kilograms. It was then increased until the malt worked up annually in excess of 200,000 kilograms was taxed 1 2 ore per kilogram. T h e tax-exempt breweries were charged a small fee, based on the amount of malt worked up, to pay f o r an inspection service. 25 24

A kilogram ¡9 1,000 grams, or 2.2046 pounds. A n ore normally is about one-fourth of a cent. 2 5 Den Sveiuka Bryggeriinduttrien, p. 42.

BEER

171

This plan of taxation is still employed, but the taxes have been greatly increased. T h e most marked increase came in 1 9 2 3 , when the malt tax was more than tripled. Under the 1 9 2 3 provisions, the tax was 65 ore for the first 100,000 kilograms of malt, 70 ore f o r the second 100,000, and 75 ore for malt worked up in excess of 200,000 kilograms. 2 " This schedule was continued until 1 9 3 2 , when another increase took place. The budget estimates for 1932—33 called for increased revenues of 5,000,000 kronor from the malt tax. The result was that according to the law which went into effect March ι, 1932, the tax was raised 20 ore per kilogram for each of the 1 9 2 3 classes. In other words, the 1 9 3 2 measure fixed the tax rate at 85 ore f o r the first 100,000, 90 ore for the second 100,000, and 95 ore for malt in excess of 200,000 kilograms. 27 What have been the returns from the malt tax? A t first the taxes were easy, and the revenues relatively small. T h e figures below show the returns, in kronor, f o r the five-year period ending with 1 9 3 0 : 2 8 Year 192 6 192 7

Kronor 16,832,325 17,092,130

192 9 193 0

16,697,835 18,070,608

192 8

16.593.365

These sums are not large. Even if we add the estimated 5,ooo,ooo-kronor increase hoped for in the 1 9 3 2 revenue measure, the returns will be less than one dollar per capita. T h e Swedish beer tax is light, in comparison with that of Denmark and Norway. Beer is a workingman's drink. People in general, and organized labor in particular, are not inclined to raise the price of this beverage. There is also a feeling that enhanced beer prices would tend to encourage an increased use of spirits. T h e brewers have been con28

Ibid., p. 47. A l m g r e n , S., "Ökad alkoholbeskattning i S v e r i g e , " in Tidskrift for Systembolagen, M a y , 1932. T h e s e figures are f r o m the Statistical Yearbook for Svieden (Statistiik Arsbok for Sverige) f o r 1 9 3 1 , p. 3 1 0 . 27

172

BEER

siderate. Despite their monopoly and increased taxes, the prices have not been increased, but have been lowered. The 1932 law added an additional burden of about one ore per bottle, but the price was not raised. 29 In spite of the increased malt tax of 1 9 2 3 , beer prices were lowered about 3 ore a bottle between 1 9 2 4 and 1 9 3 2 . T h e year 1 9 1 9 was one of inflated prices and should not be used as an index, but if we take that time as a point of departure, we find that, while the tax burden between then and 1 9 3 2 increased 4 ore, the brewer's selling price was lowered by not less than 7 ore per bottle. With cheap beer, ample revenues, and decent brewers as brewers go, one might expect complete satisfaction with the system. But it is not all beer and skittles. The trade has its disagreeable features and complaints are many. Temperance folk contend that beer is a principal source of drunkenness. In some of the rural districts, beer-drinking feasts sometimes end in quarrels and violence. Workingmen in cities frequently fortify themselves with spirits, procured in a restaurant or from illegal channels, and then augment or prolong the effects with a liberal indulgence in beer. In Sweden, I derived some enlightenment from the scientific experiment conducted by an Illinois congressman sojourning in Stockholm, who drank three (or was it f o u r ? ) bottles of beer on an empty stomach, and announced to the world that this amount produced no signs of intoxication. I shall not dispute his findings, but he did not go f a r enough. Three bottles of beer should not disturb even a congressional equilibrium, but Swedes of capacity do not always drink with such decorum. Those intent on achieving results, imbibe from ten to twenty bottles at a session. Such heroic efforts are apt to prove very disconcerting to the consumer and annoying to others. But let us not make the mistake of assuming that beer is the cause of all the drunkenness resulting from its abuse. An unrestricted beer trade furnishes an outlet for the immoderate 28 1 am speaking here arbitrarily of a one-third-liter bottle, which standard container. Frequently this is r e f e r r e d to as a "half bottle."

is the

BEER

173

drinker, but if he did not have this escape he would seek other channels. Experience in Sweden seems to indicate that curtailing the beer trade tends to increase the demand for spirits in restaurants and company stores. 30 If the demand for legal spirits is increased, there can be no question about the effects on the illegal trade, because those who drink beer to excess are usually without pass books. T h e objections have not been based solely on grounds of temperance. One frequently hears complaints against the excessive profits exacted in the service trade. I have noted that, despite increased taxes, the brewer has repeatedly lowered prices. But the café operator has retained a fixed price level. T h e result is that if we deduct the excise tax which the brewer pays, the café owner charges more f o r the service of opening a bottle and placing it on a table than does the brewer for producing and delivering the stuff. Obviously, that is unreasonable, especially in the small and poorly equipped café, which represents a limited investment. Prices are not only excessive, but they vary in different serving places and in different sections of the country. In Stockholm, one is served beer in a private café or in N o r m a f o r thirty ore a bottle. In the better class restaurants, it is served at fifty ore a bottle. In some sections of Sweden, the cafés and restaurants charge more than in others. T h e s e variations may be explained by the diversity in production and distributing costs in different sections, and by dissimilarity in overhead in different establishments. But the average beer drinker is not informed on all these matters. H e knows the price of brännvin is standardized, and he reasons that beer prices should also be fixed. T h e brewer, in spite of his reasonableness, has not remained unscotched. Drinking beer with laborers, speaking their language, and trying to think their thoughts, I have been impressed with their frequent references to the "big breweries," the "big brewers," and the "beer t r u s t . " M u c h of this sort of talk is merely a class jargon, but some of it reflects 30

See Rosenberg, E., "Pilsner och fylleri," in Tidskrifl

1924.

for Systembolagen,

Nov.,

BEER

174

thought and feeling. T h e forces of temperance, likewise, are critical of the brewer. They insist he is trying to push the sale of his wares, and point to the beer routes which he extends throughout a city and its environs. Finally, other smaller commercial interests feel they are threatened by the brewing industry. T h e large breweries produce carbonated water, soft drinks, and near beer as a side line. These same products are turned out by small establishments, who depend upon them for a livelihood. Naturally these small producers resent the competition of the brewer. They feel that he has been given a virtual monopoly in his field, and he should stick to his brew. In their "Outlines for a New Swedish Liquor Legislation," the temperance people have advocated a public monopoly for beer, the same as for spirits and wine.31 Their argument is based principally on the necessity of a more adequate and uniform control. Some of the Social-Democratic leaders with whom I have talked go a step further. They argue that beer should be monopolized, and that all of the profits of the trade should revert to the public; but they insist that these returns should not be used to balance the budget, but should be employed for such purposes as social insurance, old-age pensions, and unemployment relief. They contend that beer is a workingman's drink, and the profits of the trade should revert to his benefit. They insist it would be unfair to tax the worker for the general support of the government; and they argue that their plan would not only furnish security for labor, but would alleviate taxes from other sources. I cannot find myself in disagreement with this proposal. It seems fair, just, and economically sound. If labor could join forces with the temperance folk, a public monopoly of the beer trade might be realized by parliamentary action. But such a rapprochement does not seem immediately probable. T h e r e are obstacles. Labor wants cheap beer, and lots of it. T h e temperance people want the trade restricted and prices increased by substantial taxes. Such differences in points of view are not easily reconciled. 11

Riktlinjer

for Ny Svenik

AlkohoUagstiftning

(Örebro, 1931), chap. iv.

BEER

175

So f a r , the only move in the direction of socializing beer is the company operation of the service t r a d e , such as the Sundsvall System and N o r m a ; but it is important to keep in mind that the monopoly of spirits and wine began with the company control of the service trade. If the beer t r a d e should develop in t h a t direction, there is little reason to believe t h a t it would proceed so slowly and painfully as the monopolization of spirits and wine. T h e pioneer system companies launched out on seas entirely uncharted. A beer monopoly could benefit by their mistakes and profit by their experience.

IX T H E SUPERVISORS OF

TEMPERANCE

T o one familiar with Swedish liquor legislation, it may seem unnecessary to hook up the office of Supervisors of Temperance with the institution of the Bratt System and individual control. T h e two are separate, have their origins in different enactments, and one could function without the other. 1 Strictly speaking, there are really two systems and two sets of agencies of liquor control in Sweden. First, there are the system companies, under the supervision of the centralized board of control, and charged with the duty of conducting the trade in the interest of temperance and public welfare. Secondly, we find the supervisors of temperance, local officials, keeping a watchful eye f o r any ill effects of the trade. 2 A good case could be made f o r eliminating the supervisors of temperance from our discussion ; my story is becoming drawn out, and I should welcome an excuse to cut it short. But the fact that I have frequently referred to the supervisors in discussing different phases of liquor regulations, shows how closely these officials are associated with the system of control. T h i s relationship has its roots in the origin and nature of the Bratt System. In laying the foundation f o r the system, Doctor Bratt insisted not only on a plan insuring individual accountability, but he advocated a central coordinating agency and local instrumentalities of control. Clothed with the nec1

T h e office of supervisors of temperance w a s created by the act of J u n e 30, ' 9 1 3 . p r o v i d i n g f o r the c a r e of alcoholics (om behandling av alkoholisier) which went into operation A u g . 1 , 1 9 1 6 . T h i s statute is usually cited as " A l " and I shall use this abbreviation in r e f e r r i n g to it. I n d i v i d u a l control w a s an amplification of the g e n e r a l sale of intoxicants act of J u n e 14, 1 9 1 7 . 2 T h e term " s u p e r v i s o r s of temperance" is a f r e e translation of the Swedish nykterhetsnämnd, which literally means "sobriety n a m e d " o r "selectman of sobriety." T h e S w e d i s h w o r d f o r temperance is mâttlighet; but this term has a broader meaning and implies moderation in any kind of indulgence, and the S w e d e usually employs the w o r d nykterhet when he r e f e r s to abstinence or a moderate use of intoxicants. T h i s term has a connotation similar to our restricted use of the w o r d "temperance."

T H E S U P E R V I S O R S OF T E M P E R A N C E

177

essary powers, the b o a r d of control has become the central unit. T h e supervisors of temperance were created to provide a local, official guardianship. N a t u r a l l y , the office of the supervisors is part of the picture, and I must give these gentlemen at least a brief chapter. T h e nature of the different parts of the Swedish machinery of liquor control can be properly understood only in their functional relation to one another, and the supervisors of temperance play an important rôle. T h e y p e r f o r m a distinct function in the care of alcoholics, but this service is only one of many duties, and even it is associated, to some extent at least, with the institution of individual control. T h e i r raison d'être is to discourage the abuse of alcohol, and to ameliorate the socially ill effects of intemperance. T h e y are closely allied with the system companies in purpose, and the efforts of these two agencies are coordinated. T h i s coordination of efforts is anticipated in the liquor legislation. W h i l e created by the act of 1 9 1 3 as an agency f o r the care of alcoholics, the supervisors are assigned duties and clothed with important powers by the general sale of intoxicants act of 1 9 1 7 , and this later statute provides f o r a close cooperation between the supervisors and the system companies. But we do not h a v e to search the statutes f o r proof of cooperation. In actual practice, we find the v a r i o u s agencies working together to vitalize the statutory admonition that the liquor traffic must be conducted in the interest of public w e l f a r e , and the supervisors of temperance are important f a c t o r s in carrying out the principal of individual control. T h e law provides that every commune must h a v e its supervisors of temperance, and stipulates that, if a distinct agency is not created, the office shall be p e r f o r m e d by the supervisors of the poor. 3 T h i s general provision has been supplemented by administrative orders and instructions, with the result that both structurally and functionally the office has become f a i r l y standardized throughout the kingdom. 4 3 4

ΑΙ., sec. 3. In 1921, the Social Department (Socialityrelsen)

and the Board of Control

178

T H E SUPERVISORS OF T E M P E R A N C E

I n m a n y o f t h e r u r a l c o m m u n e s , t h e o f f i c e is still by

the

supervisors

not encouraged.

of

the

poor.

tant to w a r r a n t a s e p a r a t e other

local

supervisors of

practice,

performed however,

I t is g e n e r a l l y f e l t t h a t , w h i l e c l o s e l y

to p o o r relief, the cause of Like

This

is s u f f i c i e n t l y

administrative

administrative

temperance

or commissions.

temperance

impor-

agency.

agencies

are constituted

in

Sweden,

into s m a l l

five,

the

boards

In the rural c o m m u n e s the m e m b e r s h i p

b e a t l e a s t t h r e e , in t h e c i t i e s a t l e a s t

is

related

must

and the number

of

a l t e r n a t e s in e a c h c a s e m u s t b e a t l e a s t h a l f t h a t o f t h e s u p e r visors. lected The

I n t h e c o u n t r y , t h e s u p e r v i s o r s a n d a l t e r n a t e s a r e seby the communal

assembly

or

the c o m m u n a l

c i t y c o u n c i l s e l e c t s t h e m in t h e cities.

a n d a l t e r n a t e m u s t be at least least one of be a w o m a n .

the supervisors At

Every

twenty-five years

and one of

council.

supervisor of

age.

the alternates

least one of the s u p e r v i s o r s must

represent

the c o m m u n a l p o o r relief o r child w e l f a r e w o r k , a n d one least must represent the o r g a n i z e d temperance

At

must

f o r c e s in

at the

commune.' The

functions of the supervisors m a y

roughly be

grouped

issued a brochure under the title, Advice and Instructions for the Supervisors of Temperance (Ràd och anvisningar till nykterhetsnämnderna), and intended to serve as a guide for these officials in the conduct of their duties. A few other efforts in this direction, some of which were local in their application, have appeared from time to time. These works were supplemented and brought up to date in a substantial pamphlet published under the auspices of the association of system companies under the title, The Work of the Supervisors of Temperance (Nykterhetsnämndernas Verksamhet), Norrtelje, 1931. I am indebted to this work for much of the data which I am using in this chapter. Besides these brochures, a periodical, Tidskrift för Nykterhetsnämnderna, is issued for the use of the supervisors. 5

T h e organized temperance groups are extragovernmental agencies, similar to the various temperance organizations which have flourished in the United States. T h e government, however, is interested in promoting the cause, and central agencies of a private nature receive a subsidy from the state. T h e most influential of these agencies is the "Central Association for Instruction in Temperance" (Centralfórbundet for Nykterhetsundervisning). This organization, with offices in Stockholm, is doing commendable work in temperance instruction throughout the kingdom. It publishes a periodical, Tirfing, issues pamphlets free or at a nominal cost, assists in organizing study clubs, arranges courses of study, provides lecturers, etc. T h e money for subsidizing these temperance organizations is derived from the profits which the state realizes from the liquor trade.

T H E S U P E R V I S O R S OF T E M P E R A N C E

179

into three classes. F i r s t , there a r e the general duties which m a y be expected of them, as the local governmental agencies in charge of temperance. Secondly, we find the more explicit tasks, which by statute have been imposed upon the supervisors in connection with the retail sale of intoxicants, and which must be p e r f o r m e d in conjunction with the system companies. Finally, there is the onerous labor of looking a f t e r the intemperate and alcoholic. A m o n g their general functions, the supervisors are required to furnish suggestions f o r the improvement of temperance within the commune; to supply information to the state and communal authorities who m a y need it; and to secure advice and instructions f r o m the p r o p e r state authorities, such as the social department and the b o a r d of control, on questions which h a v e a bearing on their w o r k in the commune. T h e supervisors themselves, or their agent, must represent the commune both in court and out of court, in matters which pertain to their jurisdiction. T h e y must c e r t i f y to the police whether an applicant f o r a d r i v e r ' s license is known to be of temperate habits." T h e y must cooperate with other communal officials, with the supervisors in other communes, and with state and county agencies, in their efforts to mitigate the evils of intemperance. T h e y are also expected to cooperate with the temperance organizations in their efforts to improve conditions. In general, the j o b of the supervisors is to advance the cause of temperance in their communes. T h e duties prescribed by the sales of intoxicants act a r e more specific. A section of this statute empowers the supervisors of temperance to f o r b i d , f o r a period not to exceed three years, the sale of intoxicants at retail to any person in the commune whose use of alcoholic beverages is such that he endangers himself or others. 7 I f they take such action, the β T h i s is a new duty imposed by the motor vehicle act which went into effect J a n . ι , 1 9 3 1 , and which requires such certification as a condition to the g r a n t ing of the license. r RÉF., sec. 35. T h e rights of the pass-book holder are scrupulously g u a r d e d . Such action can be taken by the supervisors only upon the plea of some other responsible communal authority, or of a physician, or a person immediately

ΐ8θ

THE

SUPERVISORS

OF

TEMPERANCE

supervisors must immediately n o t i f y the person concerned and the system company f r o m which he holds his permit. 8 A r r e s t or conviction is not necessary to establish p r o o f of an injurious use o f intoxicants. A r m e d with complaints f r o m the p r o p e r sources, the supervisors are f r e e to conduct their investigation and dispose of the case. T h i s provision clothes the supervisors with sweeping powers, but their authority in this direction has been exercised with extreme moderation. O f the more than 60,000 permits revoked in 1930, only 138 w e r e withdrawn by action of the supervisors in accordance with this statutory provision. 9 T h e system companies and the supervisors are striving f o r the same ends, and in most instances more satisfactory results m a y be obtained by cooperation than by the supervisors proceeding independently. A n o t h e r section of the sale of intoxicants act charges the supervisors with the duty of keeping watch o v e r temperance in the commune, and of cooperating with local authorities and system companies in their efforts to encourage sobriety. A translation of this section reveals the legal position o f the supervisors with reference to the system companies and the local authorities: T h e supervisors of temperance in a commune are required to watch over the status of temperance within the commune. T h e y are particularly enjoined to keep a check on those whose permits to purchase have been revoked by their orders ; to seek to prevent the misuse of intoxicants by furnishing information and advice to the seller ; to perform those duties regarding temperance which might be committed to them by the city council in a city or by a communal assembly in the country ; to make suggestions to the city council or communal assembly regarding actions to be taken to promote temperance ; and to present an annual report of their activities and of the status of temperance within the commune. 10

T h e r e is also the frequently cited provision that the liquor concerned. T h e person whose purchasing rights are w i t h d r a w n by the supervisors is given a period of thirty days to appeal from their action to the county governor. 8 Ibid., sec. 40. β T h e system companies of course do not have to wait for orders from the supervisors before revoking a permit. T h e i r powers are practically unlimited in this respect. 1 0 Rff., sec. 64.

THE

SUPERVISORS

OF

TEMPERANCE

l8l

traffic must be conducted in the interests of temperance and public w e l f a r e . 1 1 T h e spirit o f the w h o l e enactment is to encourage a coordination of efforts t o w a r d this goal, and we find close cooperation between the systems and the supervisors in the administration of liquor regulations. T h i s cooperation finds expression in different ways. T h e area of a company's jurisdiction is relatively large, and there are supervisors of temperance in every commune. T h e s e communal officials are apt to k n o w the local people better than it is possible f o r the company m a n a g e m e n t to k n o w them. F o r this reason, it is natural that the company should seek the advice o f the supervisors on such matters as g r a n t i n g permits, increasing allotments, extra allotments, restrictions on the exercise of a permit to prevent subletting, reports of misconduct in the use o f intoxicants, and general revisions of permit allotments. In return, the system notifies the supervisors of cases of drunkennesss reported to the company. 1 2 Finally, acting in their official capacity as local guardians of temperance, the supervisors on their own initiative may offer suggestions, not only to the other communal authorities, but to the system company, on w a y s o f ameliorating ill effects of the liquor traffic, both in the retail and service t r a d e s ; and the company is usually ready to act in furtherance of any reasonable plan offered by the supervisors. T h e supervisors p e r f o r m their most distinctive w o r k in looking a f t e r the intemperate user o f intoxicants. T h e care of alcoholics has furnished a serious problem in Sweden, and the act m a k i n g the necessary provisions antedates the establishment of the B r a t t System. A s early as 1907, a committee was appointed to study the problem and make suggestions f o r 11

Ibid., sec. 63.

T h e s a l e of i n t o x i c a n t s a c t , sec. 37, r e q u i r e s t h e c o u r t s to r e p o r t c a s e s o f d r u n k e n n e s s o r i l l e g a l l i q u o r t r a f f i c to t h e s y s t e m c o m p a n y w i t h i n w h o s e j u r i s diction the person resides. T h e s y s t e m c o m p a n y is not r e q u i r e d to r e l a y t h i s i n f o r m a t i o n to t h e s u p e r v i s o r s o f t e m p e r a n c e , b u t finds it e x p e d i e n t to d o 90. U s u a l l y t h e c a s e i n v o l v e s a p e r s o n w h o d o e s not h a v e a p e r m i t , w i t h t h e r e s u l t t h a t the c o m p a n y c a n t a k e n o e f f e c t i v e s t e p s a g a i n s t h i m . T h e supervisors, o n t h e o t h e r h a n d , s h o u l d be n o t i f i e d o f t h e c a s e , in o r d e r to k e e p a n e y e o n the culprit. 12

I82

T H E S U P E R V I S O R S OF

TEMPERANCE

legislation. T h i s committee reported in i g i o . T h e suggestions of the committee were subjected to a c a r e f u l study by the Swedish M e d i c a l Association. T h e law w a s finally passed on J u n e 3 0 , 1 9 1 3 , but, owing to inadequate hospital facilities, it was not put into operation until August 1 , 1 9 1 6 . In 1 9 3 1 , the act w a s amended to clear up certain v a g u e provisions, and to remedy certain defects which experience had revealed. T h e office of supervisors of temperance was created by the act of 1 9 1 3 , and important functions were assigned to these officials in the administration of this statute. T o p a r a p h r a s e a section of the statute, the purpose of the law is to restore to a temperate and orderly life a person whose misuse of alcohol has caused him to endanger his own life and the s a f e t y of others, to be guilty of gross neglect or nonsupport, to be a burden to his family or the public, to be unable to take care of himself, or to live in such a w a y as to disturb the peace and c o m f o r t of others. T h e provisions of the statute also apply to a person who, during the last two years, has been convicted of drunkenness at least three times. 1 ' T h e supervisors are given the unenviable assignment of administering this law in their respective communes. T h e restoration of an inebriate to a temperate and orderly life m a y necessitate enforced commitment to an institution f o r treatment, but this involuntary hospitalization is usually resorted to only in stubborn cases, a f t e r less drastic methods have f a i l e d . T h e law urges the use of less extreme measures where possible, and this statutory admonition is observed. T h e supervisors try to reason with the p e r s o n ; they instruct the system company and the proprietors of serving places not to furnish him intoxicants; they seek to get him a w a y f r o m his associates, and find w o r k f o r him in the country o r some place where temptation is r e m o v e d ; they m a y advise him to join a temperance society if they feel that this would strengthen his resolution; they urge him to see a physician or voluntarily enter an institution and take the cure. T h e alcoholic m a y even be asked to sign a voluntary agreement to 13

Al., sec. ι , as amended by sec. 1, Act of 1931.

T H E SUPERVISORS OF T E M P E R A N C E

183

enter an institution, in which event he may be retained there f o r the period stipulated in the contract, providing it does not exceed one year. 1 4 When these methods prove inadequate, the alcoholic may be forcibly interned in an institution f o r treatment, f o r a period not to exceed one year. If he has been previously confined in such an institution f o r a period of at least six months, he may be held in custody f o r a maximum period of two years. T h i s enforced internment of alcoholics is a unique feature of Swedish social legislation. T h e procedure is administrative, rather than judicial. T h e supervisors of temperance in the commune must assume the responsibility and make a thorough investigation. T h e i r findings must be substantiated by a statement f r o m a physician and a certified statement f r o m the parish authorities {prästbetyg). T h e supervisors report their findings and make their recommendations to the county administration, which in turn commits the patient to an institution. T h e person whose rights are affected may have a hearing b e f o r e the supervisors of temperance or the county governor, but he is not entitled to his day in court. W h e r e the alcoholic is violent and endangers his own life or the safety of others, the police authorities do not have to wait f o r the action of the supervisors of temperance, but assume the responsibility and take him in charge. Inebriety is an extremely complicated disorder. It is no longer the fashion in Sweden to get drunk "like a gentleman," and few normal men and perhaps no normal women become alcoholic. T h e emotionally unstable seek relief in intoxicants, and alcohol accentuates the disorder. It is a vicious circle. T h e virtue of the Swedish system is that these unfortunates may be interned and effectively treated. A cure is effected in a majority of cases and the patient is returned as a useful member of the community. 1 5 14

A l . , sec. 26. Such an agreement must be accompanied by a statement f r o m a physician and a certificate f r o m the parish authorities (prästbetyg). 15 T h e " a p p r o v e d " institutions to which alcoholics are committed are either owned and operated by the state, or subsidized by the state. Separate institutions, or "homes," are maintained f o r women patients. One institution is de-

184

T H E SUPERVISORS OF

TEMPERANCE

A f t e r a course of treatment, the patient may be granted a conditional release. H e may be given his freedom, on the conditions that he report regularly to the supervisors of temperance in his commune, that he refrain f r o m the use of intoxicants or f r o m frequenting places where liquor is sold, that he reside in the commune and work at the job which has been arranged f o r him, that he turn over his wages to some responsible person designated f o r this purpose, and so on. T h e supervisors serve as parole officers in such cases. If the conditions of the parole are violated, or if the alcoholic proves dangerous, the supervisors may again take the matter before the county authorities and have the patient returned to an institution where he may be detained f o r another period not to exceed six months, or, if the terms of his original commitment are sufficiently severe, he may be held f o r a time not to exceed a year. F o r reasons which I find a little difficult to comprehend, his second release must be unconditional. H e is given a clean bill of health, and can start all over again. But the supervisors may conduct another investigation and p r e f e r fresh charges, and he may be committed again f o r a period not to exceed two years. Apparently, a man has a legal right to become alcoholic at least once every two years. T h e above is but a sketchy outline of an important topic. I have confined myself principally to the administrative functions of the supervisors, and even here I have not done justice to the subject. Volumes could be written on the causes and treatment of inebriety. It is a relatively unexplored terrane and I commend it to my friends, the sociologists, psychiatrists, and members of the medical fraternity. It should offer adventure and prove f r u i t f u l . It is impossible to judge the effectiveness of the supervisors voted to the more violent and psychopathic cases. One is a corrective or reformatory institution. A s a rule, the hospitals are not large. Altogether, there are some ten public institutions of this sort, with places f o r more than f o u r hundred patients. T h e cost of care and treatment is small, and in indigent cases 19 borne by the state and the commune. A person ¡9 expected to reimburse the commune f o r his treatment if he can a f f o r d to do so, but the supervisore are urged not to prees f o r payment if it would inconvenience the patient or add to his w o r r i e s .

T H E S U P E R V I S O R S OF T E M P E R A N C E

185

throughout the kingdom. L i k e all governmental agencies, the quality of their w o r k depends on the character of the officials and the situation in the localities where they function. On the whole, the institution seems to h a v e justified itself. I have been impressed by N o r w e g i a n s , firmly opposed to individual control and monthly allotments, but f a v o r a b l e to the Swedish supervisors of temperance and enforced hospitalization of alcoholics, and w o r k i n g f o r the establishment of these institutions in their country. T h e plan should w o r k in N o r w a y , where people are similar to the Swedes. H o w widely it can be transplanted is another question. W e must bear in mind that the plan has been w o r k e d out f o r Sweden, is adjusted to the temperament of the people, and c o n f o r m s with local governmental institutions and practices. Modifications would be necessary b e f o r e the system could be m a d e to function in a land with different custom, ideals, and institutions. If one were interested in p r o v i n g a case f o r the supervisors of temperance, he could present a convincing argument by citing statistics. Since the creation of the office, the consumption of spirits has been lowered, drunkenness is less frequent, and there has been a m a r k e d decrease in the number of cases treated f o r disorders resulting f r o m an immoderate use of intoxicants. It would be neither wise nor f a i r to give credit solely to the supervisors f o r these improved conditions. B u t they h a v e played their p a r t as important units in an integrated system of liquor control.

χ RESULTS RESULTS is a w o r d to conjure with f o r the person obsessed with the idea of being both scientific and practical. I s the Swedish method of liquor control really successful? W h a t h a s been accomplished? W h a t are the results? Certitude o f f e r s its consolations, and I wish I knew the answers to these questions, if there are answers. It would be v e r y simple if I h a d a cause to plead, but I find myself in the a w k w a r d position of not holding a brief in a highly controversial matter. It would be easy enough to p r o v e a case. T a n g i b l e evidence is not lacking. Swedish statistics are beautiful. A s statistics go, they are accurate and complete. T h e y h a v e been c a r e f u l l y w o r k e d o v e r and a r r a n g e d so as to eliminate most of the d r u d g e r y one encounters in seeking facts and figures. B u t accuracy and completeness in statistics are not the same as reliability. T h e human f a c t o r is present. T h e number of a r r e s t s f o r drunkenness depends somewhat on the vigilance of the police; the number of convictions is influenced by the obduracy or lenience of the judge. F u r t h e r m o r e , in dealing with statistics, one is tempted to overestimate the practical significance of the f a c t s recorded. I could present - a convincing argument f o r individual control by citing official statistics to the effect that f r o m 1 9 2 0 , the y e a r when this plan went into general operation, to 1 9 2 7 , the deaths f r o m chronic alcoholism w e r e reduced by more than 2 5 0 percent. B u t the actual figures are less startling. In 1 9 2 0 , a p p r o x i m a t e l y five out of e v e r y million people officially died of chronic alcoholi s m ; in 1 9 2 7 , less than t w o thus ended their earthly careers. H o w important is the f a c t that a m o n g a million people, one old soak more o r less, turned up his toes during the course of a y e a r ? O r , I could cite the rising tide of brännvin consumption as an indictment of the system. D u r i n g the y e a r s 1 9 2 9 ,

RESULTS

187

1 9 3 0 , and 1 9 3 1 , the annual per-capita increase w a s one-tenth o f a liter. B u t a tenth of a liter is only t w o snapses, and w h a t is a snaps m o r e o r less d u r i n g the C h r i s t m a s f e s t i v i t i e s ? Fin a l l y , statistics tell us when and with w h a t f r e q u e n c y phen o m e n a occur. B u t , u n f o r t u n a t e l y , they d o not i n f o r m us w h y things h a p p e n as they do, and one must be c a r e f u l n o t to c o n f u s e a t t e n d a n t circumstances with results. N o t h i n g is easier than to p r o d u c e statistical d a t a , but w h a t is the relationship b e t w e e n the established plan o f liquor c o n t r o l and the p h e n o m e n a which the figures r e v e a l ? Statistics h a v e been used with equal effectiveness b o t h to s u p p o r t and to condemn the system, and I a m m i n d f u l o f their s h o r t c o m i n g s . A n d yet I shall use them. I k n o w of no o t h e r o b j e c t i v e tests to employ, and subjective reactions a r e apt to be even less reliable. Statistics, taken f o r w h a t t h e y a r e w o r t h , m a y be used as s t a n d a r d s o f measurement. T h e y rev e a l certain trends, and, if employed g u a r d e d l y , they furnish a r e l a t i v e l y a c c u r a t e account o f a situation at any g i v e n time.

Public

Revenues

In c o n s i d e r i n g economic results, w e are on sure g r o u n d as l o n g as w e confine our attentions solely to the income w h i c h the state receives f r o m the liquor traffic. H e r e the figures a r e not only reliable, but there is an absence of illusive influences which tend to shape the results. It is simply a m a t t e r o f b o o k k e e p i n g . T h e state received so much last y e a r and so much the y e a r b e f o r e . T h e f o l l o w i n g table shows the a m o u n t s w h i c h the state received o v e r a six-year period, ending w i t h 1 9 3 1 , listed by sources f r o m which these returns w e r e d e r i v e d , n a m e l y , i m p o r t duties, excises, o t h e r taxes, and profits f r o m the t r a d e . F o r convenience they are given in million k r o n o r , but these round numbers should be accurate enough f o r o u r purposes. 1 T h i s t a b i c 19 t a k e n f r o m G - n , H., " D e t A l l m ä n n a s A l k o h o l i n l c o m s t c r , " in Tidikrift för Systembolagen, D e c . , 1932. T h e figures t h e m s e l v e s a r e not o f ficial, but a r e c o m p i l e d f r o m official sources.

1

ι88

RESULTS

irits (?P (Wine Manufacturing T a x on Brännvin Profits from Wholesale Companies Profits from System Companies Turnover and Service T a x on Spirits Malt T a x

Import Duties

Total

1926

1927

4.25 13-25 4.70 17-57 36.76 16.83

4.9 j 19.68 8.02 17.87 37.55 17.09

(

1928

1929

1930

1931

472 5.00 5.36 14-09 17.91 7.80 6.34 18.25 20.16 38.03 38.62 16.59 16.70

47° 5.86 18.31 8.8; 23.94 40.67 18.07

4-«4 5.94 17.87 5.01 25.21 40.08 τ 7·&4

97-95 109.61 104.05 109.81 120.40 116.39

Control has received the major emphasis and revenue has been secondary. L i q u o r prices have not been boosted needlessly by the imposition of heavy taxes. T h e result is that the Swedish government has received a per-capita return which is lower than that of many other countries. But during the banner year of 1 9 3 0 , the receipts were in excess of 1 2 0 , 0 0 0 , 0 0 0 kronor. U n d e r the gold parity rate of exchange which then existed, this amounted to more than $ 3 2 , 0 0 0 , 0 0 0 . Owing mainly to increased turnover and malt taxes, the official figures f o r 1 9 3 2 , computed on the same basis, show receipts of more than 1 3 3 , 0 0 0 , 0 0 0 kronor, or approximately $36,000,000. Such sums are not to be despised in a country with a population and an area approximating that of California. E v e n before the 1 9 3 2 increases in excises, the returns from the liquor traffic amounted to about a sixth of the Swedish national revenues, and a small country is expensive to operate. T h e figures which I have quoted are too moderate. T h e y do not include the property and income taxes which the wholesale company and the system companies must pay to the state, and which average about 6,000,000 kronor annually. Neither do they include revenues other than the malt tax paid by brewers; nor property, income, and license taxes paid by operators of beer c a f é s ; income taxes of restaurateurs; income taxes of persons employed in the liquor traffic; and so on. It would be impossible to estimate all of these items, but taken together they constitute a handsome sum. M o r e o v e r , public revenues are not the only returns realized by a people f r o m the liquor traffic. T h e f a r m e r , distiller, brewer, carrier,

RESULTS clerk, truck d r i v e r , and b a r m a i d , all s h a r e in the profits of the t r a d e . It would p r o b a b l y not be an e x a g g e r a t i o n to s a y that during the course of a y e a r the S w e d i s h people realize a return of m o r e than $ 5 0 , 0 0 0 , 0 0 0 f r o m the liquor trade. 2 Such is the credit side of the l e d g e r . U n f o r t u n a t e l y , the book has t w o sides. A n O m a r m a y w o n d e r w h a t the vintners ever buy one half as precious as the stuff they sell, but the h a r d f a c t remains that someone has to pay the vintner. L i q u o r profits are not g i f t s of the g o d s . In 1 9 3 1 , the Swedish people p a i d out more than 1 8 0 , 0 0 0 , 0 0 0 k r o n o r f o r spirits and wine. In 1 9 3 0 , the outlay w a s n e a r l y 1 8 5 , 0 0 0 , 0 0 0 . T h e outlay f o r spirits alone, in 1 9 3 0 , a p p r o a c h e d 1 5 0 , 0 0 0 , 0 0 0 k r o n o r . 1 shall not resort t o the hackneyed prohibitionist a r g u m e n t and insist that this expenditure represents economic w a s t e . T h a t w o u l d be b e g g i n g the question. A people m a y live as well, p e r h a p s better, without alcoholic b e v e r a g e s ; but a maj o r i t y of the Swedish people a p p a r e n t l y a r e not satisfied with that sort of existence, and intoxicants h a v e become a commodity. P u r c h a s i n g p o w e r is usually restricted, and when a man buys brännvin there remains that much less f o r the comf o r t s and necessities of l i f e . A n d so w e f a c e the problem of w e i g h i n g the liquor bill a g a i n s t individual and f a m i l y incomes. One naturally expects that a m o n g people of small incomes a l a r g e r proportion of the earnings will be expended f o r necessities, such as f o o d , clothing, and shelter. T h i s rule also holds true f o r intoxicants a m o n g people w h e r e liquor is v i e w e d , if not as a necessity, at least as a commonly used and desirable commodity. T h e capacity of the human stomach 2 B y statutory provisions, some of the revenues f r o m the trade are set aside f o r the returns f r o m intoxicants f u n d (ruidrycksmedelfonden). T h e purpose of the legislation, when it w a s f r a m e d in 1 9 1 2 - 1 3 , w a s to prevent the public generally, as well as locally, f r o m encouraging the liquor traffic because of a desire f o r additional revenues. P a r t of the f u n d is used f o r compensating, o v e r a period of years, the cities or rural communes, the counties, and the agricultural associations f o r relinquishing their claims f o r revenues f r o m this source; part of it is set aside f o r the amortization of the national debt; and part of it is used to f u r t h e r the cause of temperance. W h i l e the fund is not intended f o r general budgetary purposes, the state has frequently found it expedient to borrow f r o m it. In 1 9 3 1 , the f u n d approximated 100,000,000 kronor. For the earlier disposition of revenues f r o m the liquor trade, see supra, Chap. II.

IÇO

RESULTS

is indifferent to the economic resources of its possessor. T h i s truism is verified by a study made in 1 9 2 6 of some 1 0 , 0 0 0 industrial and 4,000 agricultural workers. 3 T h i s study revealed that among married industrial workers with annual incomes of less than 800 kronor, the average expenditure f o r spirits and wine was 18.07 percent of their yearly earnings. T h e percentage of liquor expenditure to earnings decreased f o r the higher income brackets. T h o s e receiving 4,000 kronor or more spent only 2.92 percent of their earnings f o r intoxicants. A similar condition existed among unmarried industrial workers. T h o s e with incomes of less than 800 kronor spent 1 6 . 1 8 percent of it f o r liquor; those with incomes of 4,000 or more spent only 2 . 7 0 percent. In the country, married men with incomes of less than 800 kronor spent 19.80 of their earnings f o r liquor, and unmarried men in this class spent 1 4 . 3 2 percent. R u r a l married and unmarried men with incomes of 4,000 or more spent respectively 3 . 6 1 and 3 . 7 4 percent of their earnings. According to the findings in this study, some men spent as high as 40 percent of their earnings f o r liquor. Such figures must be accepted with a grain of salt. T h e incomes are based on tax returns, and men have been known to f a l s i f y such statements. But a f t e r making due allowance f o r this factor of error, one is still impressed with the relative size of the liquor bill. Obviously, in many instances, such expenditures are bound to work g r a v e hardships, and critics are apt to blame the so-called Bratt System. It is difficult to see how any system of control, short of prohibition actually enforced, could prevent inordinate liquor expenditures. Some system companies have refused pass books to persons of limited incomes, but that practice has not been popular. A man feels that his earnings are his to spend as he pleases and, if he can qualify f o r the permit in other respects, he will naturally view as unjust any discrimination on grounds of income. If the plan of limited allotment and individual control has 3

See Schultz, K a r i n , " D e n Konsumtionsstatistiska undersökningen â r 1926," in Tidskrift för Systembolagen, J u l y , 1928.

RESULTS

191

had any influence on expenditures f o r liquor, the effect has been to ameliorate the evils. Statistics show that during the decade f r o m 1 9 1 6 to 1 9 2 6 , the amount of spirits purchased by urban laborers with annual incomes of less than 3 , 0 0 0 kronor decreased by more than 40 percent. Enthusiasts might attribute this improvement entirely to the system of liquor regulation. T h a t also would be unwise. M a n y factors are involved. W a g e s change; living costs fluctuate; new commodities, luxuries, and amusements tempt the eye of the person of moderate means. But the plan of control has undoubtedly tended to discourage excessive liquor expenditures among people with limited incomes. Consumption

of

Intoxicants

Public revenues f r o m the traffic have the virtue of being definite. W e become less sure of ourselves when we attempt to evaluate such criteria as trends in consumption of intoxicants, drunkenness, cases of alcoholism, and so forth. T h e r e is a wealth of statistical material carefully compiled and classified f o r our convenience, but despite all these valuable data, the relationship between cause and effect is not always clear. Both friends and foes of the B r a t t System have cited statistics on consumption to prove their case. Opponents of the plan, prior to 1 9 3 2 , pointed to the rising per-capita consumption as proof of failure to curb alcoholic indulgence. T h i s contention could readily be substantiated with facts and figures. During the food-crisis years of 1 9 1 7 to 1 9 1 9 , liquor regulations approximating prohibition were imposed, and the per-capita consumption of legitimate spirits was reduced to a new low. It fell f r o m 5.9 liters in 1 9 1 6 to 1.8 in 1 9 1 7 ; dropped to 1 . 3 in 1 9 1 8 ; and then rallied to 2.5 in 1 9 1 9 . Percapita consumption naturally increased with the withdrawal of the stringent crisis regulations. It leaped to 6.4 in 1 9 2 0 , the year when individual control went into operation. T h e next two years witnessed a declining per-capita consumption. In 1 9 2 1 it was 5.3 ; in 1 9 2 2 it had dropped to 4.3. F r o m then

192

RESULTS

on there was a slow but steady increase until 1 9 3 1 , when it reached 5 . 5 / T h e increase in per-capita consumption of wine and beer during the decade f r o m 1 9 2 1 to 1 9 3 1 w a s more rapid than that of spirits. Consumption of wine m o r e than doubled. In 1 9 2 1 , it was only 0.48 liters per c a p i t a ; in 1 9 3 0 , it had risen to 1 . 0 6 ; in 1 9 3 1 , there w a s a slight recession to 1 . 0 4 . T h e per-capita consumption of beer rose f r o m 2 2 . 7 3 liters in 1 9 2 0 to 2 7 . 3 8 in 1 9 3 0 , while near beer increased during the same period f r o m 1 1 . 8 4 to 2 1 . 9 1 liters. If you take per-capita consumption of alcohol as a criterion, a r g u e the opposition, the plan has accomplished little. T h e annual a v e r a g e of alcohol imbibed in all f o r m s — s p i r i t s , wine, and b e e r — f r o m 1 9 1 o to 1 9 1 4 , the y e a r D o c t o r B r a t t introduced pass books in Stockholm, w a s 4.8 liters of 1 0 0 percent spirits. In 1 9 2 0 , when individual control went into effect, it had been reduced to 4 . 0 4 liters. In 1 9 3 0 , a f t e r ten arduous years of individual control, it remained at 3 . 8 8 liters. In fact, f r o m 1 9 2 2 to 1 9 3 1 , there w a s an increase in alcoholic consumption. I find it difficult to view such figures with alarm. T h e a v e r a g e annual increase in consumption of spirits f r o m 1 9 2 1 to 1 9 3 1 w a s approximately a tenth of a liter per capita. T h a t w a s only an additional three discreet skáls per year. G r a n t i n g that the wines are principally of the heavier varieties, one should find slight cause f o r despair o v e r an increased percapita consumption of a half liter over a ten-year period, especially if this increase brought the total up to only about a liter a y e a r . A s f o r the total consumption of alcohol, the increase w a s due principally to malt drinks, and the Swedish beer is relatively light. 4

T h e s e figures are condensed f r o m official statistics given in the annual reports of the board of control, Ruidrycksförsäljningcrt. T h e y are apt to be misleading to one accustomed to computing consumption of spirits in accordance with the international standard of 50 percent alcoholic content. In the light of this s t a n d a r d , the Swedish figures are excessive. T h i s discrepancy is due to the fact that the cheapest and most commonly used brännvin does not contain more than 40 percent alcohol by volume. If computed on the international s t a n d a r d , the per-capita consumption in 1 9 3 1 w o u l d be 4.9, instead of 5.5 liters, and the other figures I h a v e g i v e n would be reduced in the same proportion.

RESULTS

193

W h a t are such figures w o r t h ? D o they cast reflections upon the p r e v a i l i n g plan of liquor control, o r may there be other f a c t o r s which w o u l d tend to explain the p h e n o m e n a ? A declining birth rate, resulting in a tendency t o w a r d a stabilized population, such as Sweden has experienced during the last decades, will n a t u r a l l y result in a l a r g e r proportion of middle-aged and o l d e r people, and a smaller number of children. T h i s means that a l a r g e r percentage of the population a r e apt to be users of intoxicants and one should expect an increased per-capita consumption. O n e must also b e a r in mind that the decade f r o m 1 9 2 1 to 1 9 3 1 w a s a relatively prosperous time. P e o p l e indulge their appetites m o r e in f a t y e a r s than in lean ones. T h i s is evidenced by the decline which began in the service t r a d e in 1 9 3 1 , and which w a s reflected in all phases of the traffic in 1 9 3 2 and 1 9 3 3 . In 1 9 3 2 the consumption of spirits declined about 6 percent, and wine fell off nearly a f o u r t h . 5 T h e curtailed consumption of spirits w a s influenced by increased prices, but the decline began b e f o r e the h i g h e r taxes went into effect. N o t only is the hospitable S w e d e compelled during h a r d times to be less liberal t o w a r d himself and his guests, but a depression discourages tourists and they augment per-capita consumption. O t h e r f a c t o r s could undoubtedly be unearthed, but population trends and economic conditions should g o a long w a y t o w a r d explaining the increased consumption f o r which the plan of regulation has been b l a m e d . T h e d e f e n d e r s of the plan point to the three y e a r s immediately preceding the beginnings of the B r a t t System, namely, 1 9 1 1 , 1 9 1 2 , and 1 9 1 3 . T h e annual a v e r a g e percapita consumption of spirits during these y e a r s w a s approximately 7.8 liters. I f this figure is taken as an index, the results of the system can be pointed to with pride. E v e n the 5.5 liters f o r 1 9 3 1 , which the opponents h a v e v i e w e d with misgivings, are only 7 0 percent of the 1 9 1 1 - 1 3 annual percapita a v e r a g e . B u t has this decline been b r o u g h t about by the B r a t t S y s t e m ? T h e f r i e n d s of the plan, in r e v e r t i n g to 5

Tidskrift for Systembolagen,

Feb., 1933.

194

RESULTS

1 9 1 3 , do not g o back f a r enough. T h e average annual percapita consumption of 50 percent spirits during the five-year period of 1 8 9 6 - 1 9 0 0 was 8.1 liters; f o r the period of 1 9 0 1 - 5 , it was 7.6 liters; f o r 1 9 1 1 — 1 3 , it was 6.79 liters; f o r 1 9 3 1 , it was 4.9 liters. T h e figures prior to 1 9 1 4 are less reliable, but if we attribute a reasonable accuracy to them, we are led to the conclusion that the decrease in per-capita consumption f r o m 1900 to 1 9 1 4 , without the restriction system of liquor control, was almost exactly the same as the decline f r o m 1 9 1 4 to 1 9 3 1 , under the new plan. T h a t fact should make one hesitate to attribute changing consumption trends to a particular plan of liquor regulation. L i q u o r consumption has had its ups and downs in Sweden. W e have noted the enormous consumption of spirits during the first half of the last century.® T h e fifties and sixties witnessed a decline; the seventies experienced an increase; the eighties and early nineties saw a recession; the later nineties found an upward swing. T h e causes are probably simple and, if we knew the factors involved, we should be able to explain these waves. Population trends, economic conditions, v a r y i n g standards of living, changing customs, have all played their part. T h e prevailing system of liquor regulation is only one of many influences. H o w e v e r , let us not jump to the conclusion that the restriction system has done nothing to alter per-capita consumption. 7 It may have slowed down the increase f r o m 1922 to 1932. I am inclined to believe it has had a salutary influence in this respect, but my conclusion is based on rule-of-thumb evidence. Granting that the system has accomplished little or nothing in this direction, does it prove that the plan is a failure, or does it demonstrate that per-capita consumption is an unsatisfactory yardstick by which to measure the success of a program of control? T h e r e is reasonable ground f o r doubting the « C h a p . I. 7 A m e r i c a n s u s u a l l y t e r m the S w e d i s h p l a n of control the " B r a t t System." In S w e d e n it is m o r e c o m m o n l y r e f e r r e d to as the " r e s t r i c t i o n s y s t e m " (Reilriktionssystemet). T h e S w e d i s h t e r m is the m o r e a c c u r a t e . W h i l e D o c t o r B r a t t w a s the i n s p i r i n g f o r c e in d e v e l o p i n g a p l a n of restricted allotments, both in the retail and s e r v i c e t r a d e s , m a n y of the f e a t u r e s of the s y s t e m h a v e b e e n d e v i s e d by others.

RESULTS

195

value of this test. A t best, it is a crude method of measurement, for the simple reason that it is not per capita in the true sense of the term. It accounts for the quantity of intoxicants consumed and balances this amount against the total population, but it sheds no light on the more important problem of who drinks the liquor. A large quantity of liquor consumed by a great number of moderate drinkers will present fewer cases of social maladjustment than will a lesser amount consumed by a small group of immoderate users, but the percapita consumption obviously would be greater in the former than in the latter case. Opponents of the plan have insisted that the restriction system has resulted in a more widespread use of intoxicants. That may be true. Approximately a fifth of the population have permits. It may be significant that even during 1 9 3 2 , when liquor sales fell off, the number of potential buyers, that is, holders of pass books, increased from 1,257,464 to a new record of 1,265,42s. 8 Undoubtedly, a larger proportion of Swedes now use liquor than was the case two decades ago. But I am not so sure that this change may be attributed to the Bratt System. Unfortunately, social changes never have such simple explanations, and the fact that a similar phenomenon has occurred in other countries makes one pause before rendering a verdict. Admitting that the system has encouraged a wider use, is that an indictment, providing the plan has discouraged immoderate indulgence? Paradoxical as it may seem, apparently there is little connection between drunkenness and per-capita consumption of legitimate liquor. This is shown by Chart V I , illustrating the situation in Stockholm during the five-year period from 1 9 1 6 to 1 9 2 0 inclusive. The heavy line in the graph illustrates the number of liters of legitimate spirits dispensed in the city; the broken line shows the number of cases of drunkenness reported. 9 9

Tidskrift for Systembolagen, Feb., 1 9 3 3 . T h i s g r a p h is a portion of the one contained in the reports of the Stockholm system company. E a c h annual report contains the g r a p h , beginning with 1 9 1 3 9

196

RESULTS

T h e lack of correlation between consumption and drunkenness revealed in this g r a p h is striking, but the explanation is simple. Unusual conditions, resulting f r o m the W a r , brought about a d o w n w a r d trend both in consumption and drunkenness during the latter part of 1 9 1 6 . By 1 9 1 7 , the f o o d situation had become acute and drastic liquor regulations w e r e imposed. T h e s e continued with more or less severity throughout 1 9 1 7 , 1 9 1 8 , and 1 9 1 9 . D u r i n g 1 9 1 7 , the illegitimate trade apparently had not had time to become effective, and drunkenness was at a low ebb, along with the diminished sale of legitimate spirits. But 1 9 1 8 and 1 9 1 9 tell a different story. T h e curtailment of legitimate spirits continued, but evidently the bootlegger was having his innings. L i q u o r passed f r o m illegal sources into irresponsible hands, and drunkenness increased, despite restricted sales. N o r m a l conditions were restored in 1920. T h e plan of individual control went into operation. T h e quantity of legitimate spirits sold satisfied a normal demand and became fairly constant f r o m y e a r to year. Drunkenness decreased. D u r i n g the years f r o m 1922 to 1932, there was a slight annual increase in the amount sold, but it is significant that the spread between drunkenness and legitimate consumption constantly widened during this decade. T h e situation in Stockholm is not exceptional. F i g u r e s f o r the whole country prove that drunkenness has not kept pace with the quantity of spirits sold. T h i s is shown by the number of convictions f o r drunkenness for every thousand liters of spirits dispensed throughout the kingdom. In 1 9 1 3 , this figure was 1.32. In 1 9 1 6 , when the pass book had been introduced throughout the kingdom and Stockholm had started a system of individual control, the figure still remained at ι . 3 1 . In 1 9 1 9 , the last year of the food-crisis restrictions, it jumped to 2.31. In 1920, the year in which individual control went into general operation, it receded to 1 . 2 1 . I t fell and b r i n g i n g it up to date. I h a v e selected those y e a r s w h i c h s h o w a signific a n t r e l a t i o n s h i p b e t w e e n p e r - c a p i t a consumption and d r u n k e n n e s s .

19δ

RESULTS

to ι . i o in 1 9 2 2 , a y e a r of extreme p o s t w a r depression. In 1 9 2 9 , a prosperous y e a r , it w a s 0 . 9 2 . 1 0 M a n y a Swedish dry has criticised the restriction system on the g r o u n d that, in encouraging a widespread use of intoxicants, it has resulted in drinking by women and youths. T h a t argument w a s advanced with monotonous regularity by A m e r ican wets, as a criticism of prohibition. Unquestionably, Swedish women indulge now with g r e a t e r frequency than they did t w o decades ago. T h e Swedish girl, like her A m e r i c a n sister, is apt to be somewhat shocking to her grandmother, but surely we cannot blame D o c t o r B r a t t f o r that unfortunate state of a f f a i r s . I f we must find a cause, let us attribute it to w h a t the G e r m a n s happily term a changing Weltgeist, which is evident in Sweden as elsewhere. Swedish women are independent, carry their own parcels, march in labor p a r a d e s , and seldom stand stupidly b e f o r e a d o o r waiting f o r a male to open it. T h e y g o about their business, enter restaurants unescorted, and if they feel like a snaps they order it, but I have noticed it is usually a small one. F e m a l e drunkenness, as we shall see presently, is diminishing. But if w e do not censure the restriction system f o r increasing f e m a l e consumption, let us be f a i r and not praise it f o r decreasing drunkenness among the m o r e articulate sex. Y o u t h f u l drinking is a problem. I t violates canons of propriety to which middle age subscribes even when it abuses them, but I am not sure that it has the evil effects usually ascribed to it. I t is apt to be sporadic, and committed in a spirit of adventure. Certainly, it is less serious in its social consequences than over-indulgence on the p a r t of the breadwinner of a household. B u t youth is treasured, y o u t h f u l indulgence is f r o w n e d upon, and one frequently encounters complaints against the restriction system f o r the w a y youth behaves. H o w e v e r , even the temperance forces will admit that if one compares the present situation with that of a few decades ago, there is no reason f o r discouragement. Y o u t h has f o u n d other interests, such as the automobile, cinema, 10

Tidskrift

for

Systembolagen,

April,

1931.

RESULTS

199

radio, sports, higher education, and so on. Drinking has been reduced to a minor rôle, where formerly it was a major indoor sport. But again we must be w a r y about attributing these changes to any plan of liquor regulation. T h e argument that the restriction system results in widespread consumption is postulated on the ground that a person desires what is difficult to procure. One may not get a permit until he has reached a certain age, usually twenty-five, and can show evidence of sobriety and responsibility. T h e pass book thus becomes a badge of maturity, reasons the dry, and every youth desires it. T h e r e is undoubtedly some basis f o r this contention, but I am not sure that it would stand the test of scientific inquiry. Unquestionably, the last two decades have witnessed an increase in consumers and the percentage of teetotalers seems to have diminished. Is this due to the restriction system? W h a t will the next two decades reveal? T h e restricted allotment should serve as a stabilizer, and prevent extreme fluctuations in consumption, but the number of consumers in the future, as in the past, will probably depend largely on forces other than the plan of liquor control. Immoderate

Indulgence

T h e goal of the restriction system is to discourage immoderate indulgence, rather than to interfere unduly with the reasonable demands of the responsible user. A lowering of per-capita consumption and a decrease in the number of users are hoped f o r , but they are not what the sponsors of the system directly aim to achieve. If we keep this in mind, it should be apparent that consumption statistics are not f a i r tests by which to judge the success of the plan of regulation. If the purpose is to eliminate the effects of intemperate and irresponsible indulgence, certainly the degree to which this has been accomplished is an equitable basis f o r passing judgment. Drunkenness and alcoholism then appear more important than per-capita consumption. Our problem would be greatly simplified if we only had full and accurate data on drunkenness, but that is wishing f o r the

200

RESULTS

impossible. W e have to depend on the cases of arrests and convictions, and these, in spite of the accuracy of the records, are inadequate. Drunkenness is one thing, arrests or convictions are quite another. A police chief, or, f o r that matter, a patrolman, by adopting a more rigorous policy, may increase the number of arrests. Such a change of policy might tend to decrease drunkenness, but the records, at least f o r the time being, would show exactly the opposite. In the report of the legislative committee of the temperance forces, an account is given of an experiment conducted in Stockholm by some interested students, who shadowed patrolmen on their beats and noted the number of intoxicated persons which the police should have observed had they exercised ordinary vigilance. A hundred such persons were counted by the investigators. T h e police arrested five.11 Such findings may be questionable f r o m a scientific standpoint, but they should at least indicate the irrelevancy which may exist between intoxication and arrests. When is a person intoxicated? When should he be picked up by the police? T h e s e are questions not easily answered. W i t h all their shortcomings, the records of arrests and convictions are our only reliable criteria. T h e s e records reveal a remarkable improvement in drunkenness since 1 9 1 3 . T h e improvement becomes even more noteworthy when we consider that, during this period, the police have necessarily become more vigilant and the judges more stern. T w e n t y years ago a drunk might be permitted homeward to wend his stumbling way. T h e automobile has made it necessary to take him in charge, in order to insure his own safety and the safety of others. In many police jurisdictions, where it formerly was the practice simply to lock up an intoxicated person and release him the following day without even bothering to make a record of the case, now an arrest is made and the victim is booked with a charge against him. Such factors tend to prove that drunkenness has decreased to a f a r greater extent than the records show. 11

RUtlinjrr

for Ny Sventi

Aikohollagsìiftning

(Örebro, 1931), p. 11.

RESULTS

201

W h a t do the records show? During 1 9 1 3 , there were 10.5 convictions f o r drunkenness f o r every 1 , 0 0 0 inhabitants. In 1 9 1 4 , the year when Doctor Bratt introduced the system of permits, there was a notable decrease to 9.0 per 1 , 0 0 0 . T h i s decrease continued during 1 9 1 5 and 1 9 1 6 . During the crisis years of 1 9 1 7 , 1 9 1 8 , and 1 9 1 9 , the convictions were respectively 3 . 3 , 3 . 1 , and 5.7. When the crisis restrictions were lifted, the number jumped to 7.8 in 1 9 2 0 . Individual control was introduced in 1 9 2 0 , and apparently had beneficial effects. T h e number of convictions per 1 , 0 0 0 inhabitants sank to 5.2 in 1 9 2 1 . Allowing f o r minor fluctuations, the number has remained fairly stationary since then. In 1 9 3 1 , it was 4.9. Such figures are of value principally as one makes comparisons. T h e annual average number of convictions f o r the years 1 9 1 1 , 1 9 1 2 , and 1 9 1 3 , was 9.9 per 1 , 0 0 0 inhabitants. T a k i n g this number as an index, our comparisons appear more striking. T h e figure f o r 1 9 3 1 is approximately 49 percent, or less than half, of the 1 9 1 1 — 1 9 1 3 average. 1 2 Convictions f o r drunkenness among women show a more decided decrease, especially if we use the 1 9 1 3 figures as a starting point. In that year, the number of convictions f o r every 1 0 , 0 0 0 females was 6.20. F i f t e e n years later this number had been reduced to 1 . 7 1 , a decrease of more than 70 percent. Such numbers are extremely small, and are of value only to the extent that they reveal trends. In dealing with such small numbers, one will naturally expect a great fluctuation in percentages of decrease or increase f r o m year to year, and such has been the case. I f we care to take the 1 9 2 1 figure as a basis, we can prove a subsequent increase in female drunkenness, but the proof would be of questionable value as discrediting the restriction system. Perhaps of more significance is the fact that the number of convictions increased f r o m 1 9 0 0 to 1 9 1 4 , and the biggest decrease of any year came in 1 9 1 4 , the year when the pass book was introduced. T h e records of convictions f o r drunkenness show a decided 12 T h e s e figures are summaries of official statistics. T h e arrests f o r drunkenness exceed the convictions by approximately 1 0 percent.

202

RESULTS

improvement in temperance since the introduction of the B r a t t System. Is this improvement due to the system, or may it be attributed to other influences? Admitting that customs change and that it is no longer proper to become intoxicated, I still find myself convinced that a large portion of the credit f o r decreased drunkenness rightly belongs to the plan of control. T w o things lead me to that conclusion. In the first place, the decrease in the number of convictions f o r drunkenness since 1 9 1 3 , unlike the decline in per-capita consumption of spirits, is not a continuation of a trend which existed prior to 1 9 1 4 . On the contrary, convictions f o r drunkenness steadily increased f r o m 1 8 7 0 to 1 9 1 4 . T h e annual average number of convictions per ι , ο υ ο population during the five-year period of 1891—95 was 5 . 5 ; it was 7.7 f o r 1 8 9 6 - 1 9 0 0 ; 8.2 f o r 1 9 0 1 - 5 ; and 9.3 f o r 1 9 0 6 - 1 0 . It reached its high point in 19 1 3 , when it was 1 0 . 5 . T h e recession began with 1 9 1 4 and the pass book. During 1 9 1 9 and 1 9 2 0 , there was another increase in convictions, following the withdrawal of the food-crisis restrictions. T h e figure rose to 7.8 per 1 , 0 0 0 in 1 9 2 0 . Individual control was introduced in the middle of that year. In 1 9 2 1, the number of convictions declined to 5.2 per 1,000, and since then has fluctuated around that figure. Such evidence leads one to deduce that the pass book and individual control have been potent influences. Secondly, comparative statistics point to the same conclusion. If we use per-capita consumption of alcohol as a standard, Sweden suffers by comparison with such countries as N o r w a y , England, H o l l a n d , or Belgium. A l l have shown a greater rate of decrease than Sweden. On the other hand, if we use decreasing convictions f o r drunkenness as a test, Sweden compares f a r more favorably. T h i s tends to convince one that the plan of discouraging immoderate indulgence, without unnecessary restrictions on the responsible consumer, is bearing fruit. Official records of drunkenness still furnish cause f o r concern. W e have noted the problem of youthful indulgence. C o m p a r e d with 1 9 1 3 , the present situation appears promis-

203

RESULTS

ing, but during the last decade there has been an increase in the number of convictions among persons under twenty-five. T h e situation is not alarming, but the temperance forces have made much of it, and the supervisors of temperance and managers of system companies are concerned about it. It seems a little far-fetched to blame the plan of liquor control. A number of causes have been advanced, such as flaming youth asserting itself, the public dance hall, illicit liquor, the automobile, and so on. T h e suggested remedies have ranged all the way f r o m more severe penalties f o r drunkenness to a lowering of the age limits f o r permits in order that young persons may purchase liquor legally. T h e r e is also the problem of increasing drunkenness in rural sections. Karin Schultz has furnished some striking comparisons between the trends in cities and rural areas f r o m 1 9 1 3 to 1 9 3 0 . " Using the number of convictions f o r drunkenness per 1 , 0 0 0 inhabitants during 1 9 1 3 as an index, she gives us the following trends in the whole kingdom, in the cities, and in the rural districts.

Whole K i n g d o m Cities R u r a l Sections

1913

1923

1924

1925

1926

1927

1928

1929

1930

100 100 100

48 42 38

52 44 48

51 42 62

47 38 60

45 35 65

43 33 67

46 34 77

48 35 85

Such figures tell their own story. Convictions in the cities decreased 65 percent, while in the country they declined only 1 5 percent. Conditions improved in the cities, but in the country they became steadily worse f r o m 1 9 2 3 . T h e rural sections in nine of the twenty-four counties had a higher percentage of convictions in 1 9 3 0 than in 1 9 1 3 . Vasterbotten reached 2 1 9 ; Blekinge, 2 6 9 ; and H a l l a n d topped the list with 3 1 4 . It is not easy to explain the phenomenal increase in convictions in the rural sections. Increased police activity has probably played a part. T h e change in rural ideals and habits 13

" F y l l e r i f ö r s e e l s e r n a s F ö r d e l n i n g pâ S v e r i g e s Olika L ä n , " in Tidskrift für Systembolagen, A u g . , 1932. M i s s Schultz g i v e s the trends f o r the city of Stockholm and f o r the cities and rural sections in each of the t w e n t y - f o u r counties. I h a v e taken the liberty of using her totals.

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RESULTS

of l i f e has had some influence. But these explanations are hardly adequate. M i s s Schultz mentions the illegal trade as a principal cause, and this seems like a reasonable assumption. Apparently, it is easier to cope with the illicit traffic in the cities than in the more spacious and less policed rural districts. T h e fact that the greatest rate of increase, both in the cities and in the country, has occurred in seacoast counties, certainly points to the conclusion that the principal cause is smuggled spirits. A n d what causes smuggling? asks the critic of the restriction system. But more of that later. Finally, in comparing official records of drunkenness, even the staunchest supporter of the system of control must admit that since 1 9 2 1 there has been no marked improvement. E v e r y year tells practically the same story. So many drunks per 1 , 0 0 0 have been convicted. A s f a r as improving drunkenness is concerned, the plan seems to have come to a standstill. I am not convinced that this is a valid criticism of the restriction system. I t may have gone as f a r as can reasonably be expected of any plan of control. Less than a fifth of the persons convicted f o r drunkenness are pass-book holders, and this is the only group over which the system companies can directly exercise any restraining influence. T h e others are disqualified f o r liquor permits because of age, drinking habits, transitory residence, and so forth. M e n under twenty-five, and without permits, furnish more than a fifth of the convictions. M a n y of these are young men in quest of recreation who happen to take one drink too many and get into difficulties with the police. Others seem to find their recreation in this manner. T h e n there is the psychopathic inebriate. M o s t women drunkards and a large proportion of male topers fall into this class. T h e y are subjects f o r the doctor and the psychiatrist, rather than f o r the patrolman, the judge, or the system company manager. Drunkenness is confined mainly to the working classes. T h i s is not an indictment of Swedish labor in general. M o s t of the laborers, especially the skilled workers, are temperate.

RESULTS

205

M a n y are teetotalers. T h o s e who manage to jam the police courts are such workers as f a r m hands, casual laborers, competent but d r i f t i n g jacks-of-all-trades, and the tramp type. T h e source of their liquid supplies varies. Possibilities are offered by bootleg liquor, restaurant snapses, beer, and passhook spirits legally consumed or illegally disposed o f . T h e drunkard in Sweden, as everywhere else, manages to tap some source. It may be denatured stuff, but he takes a chance. Under the plan of control, the vast number of responsible users are allotted a reasonable supply at a f a i r price. T h i s is the group entitled to consideration, and it does not seem f a i r to ask them to assume additional burdens on the chance that a relatively small number of topers might thereby be assured of salvation. T o do so might result in a situation more serious than suffering a f e w drunks. L e t us turn to the mental and physical disorders resulting f r o m excessive indulgence. One would expect to encounter fewer factors of error in using these as tests. Per-capita consumption is not only a criterion of questionable value, but it leaves out the illegal trade, and we do not know how much liquor is actually consumed. Arrests may depend upon the attitude of the police. But such disorders as delirium tremens or chronic alcoholism result only from continued and excessive indulgence. H e r e , then, is a test. T h e number of cases reported f r o m y e a r to year should tell the story. But will they? Alas, we have to depend on the reported cases. T h e human factor is not entirely eliminated. T h e doctor is human. It is disgraceful to die as a result of your alcoholic excesses, and the attending physician, out of respect f o r the memory of the deceased and the feelings of a bereaved family, frequently substitutes a more respectable means of departure f r o m this life. T h i s tendency to gloss over the ugly facts makes any comparative study of deaths f r o m alcoholism among different nationalities a rather hazardous occupation. Comparative statistics show that in 1 9 2 6 the Swiss had approximately twenty-four times as many deaths f r o m alcohol-

2o6

RESULTS

ism per capita as did the Swedes. 1 4 T h e Swiss are not a nation of teetotalers, but their bad showing is probably due to the accuracy of their vital statistics, rather than to their drinking habits. T h e problem is simplified when we confine our comparison to different periods in the same country. Then we merely face the difficulty of weighing the completeness and accuracy of the reports of one time against those of another. T h e r e is reason to believe that a larger proportion of the cases of alcoholism have been reported in Sweden since the establishment of the present system of liquor control than before. A greater interest in the problem has been aroused. T h e law which became operative in 1 9 1 6 , providing f o r the care of alcoholics and creating the office of supervisors of temperance, has resulted in a more careful scrutiny of these cases. A closer cooperation has been developed among the medical profession, the supervisors of temperance, and the system companies. In general, there has been a tightening up. Furthermore, drunkenness has become more and more confined to the submerged few. A large proportion of the alcoholic patients are charity cases, and there is less hesitancy about truthfully reporting such a case than there is where the victim is a pillar of society. A l l of these factors should enhance the frequency of accurate diagnoses, with the result that one would expect an increase in the number of cases of alcoholism reported. T h i s again leads one to the conclusion that the improvement has been f a r more notable than the records f o r this period show. Official statistics on the causes of death in Sweden show the annual average number of deaths from chronic alcoholism during the three-year period of 1 9 1 1 — 1 3 to be 1 2 2 . In 1 9 2 7 , this had been reduced to 1 1 . If we figure this on a per-capita basis, we find that the annual death rate from chronic alcoholism during the 1 9 1 1 — 1 3 period was 2 . 1 8 f o r every 1 0 0 , 0 0 0 inhabitants, while in 1 9 2 7 it was 0 . 1 8 . In other words, the 14

Rosenborg, E. ( Olika Typer p. 76.

αν Modern

Alkohollagstiftning

(Norrtelje, 19J0),

RESULTS

207

per-capita deaths in 1 9 2 7 were roughly 8 percent of the 1 9 1 1 — 1 3 annual average. 1 5 A decline has been evident in other disorders resulting from excessive indulgence. T h e number of cases of insanity resulting f r o m alcoholism in 1 9 2 8 was 69 percent of the 1 9 1 1 — 1 3 annual average. T h e number of cases of delirium tremens treated in the Katarina hospital in 1 9 3 0 was only 9 percent of the 1 9 1 1 - 1 3 figures.16 T h e number of deaths f r o m liver cirrhosis in 1 9 2 6 was roughly 76 percent of the 1 9 1 1 - 1 3 annual average. 1 7 Computed on a per-capita basis, these numbers are too small f o r sound statistical standards of measurement. One case more or less will materially alter the percentage f o r a particular year. But a f t e r allowing f o r ups and downs, the general trend has been downward. Such figures as I have at hand indicate a marked improvement in all types of disorders resulting f r o m alcohol. E v e n crimes of violence show a decided decline. During the 1 9 1 1 - 1 3 period, the annual average was 6.28 per 1 0 , 0 0 0 population. During 1 9 2 3 - 2 5 , it was 3 . 1 8 , or approximately half of the 1 9 1 1 - 1 3 average. Changing standards, independent of liquor regulations, have done much to bring about these improved conditions. But the plan of control has been a big factor. T h e r e is statistical evidence to bolster up this view. F o r example, the cases of chronic alcoholism recorded by the physicians of Stockholm giving free medical care to the poor, show the most marked drop between 1 9 1 3 and 1 9 1 4 , the year when the pass book was introduced in that city. P r i o r to that time, there had been an intermittent rise in the number of these cases since 1900. Since then, there has been a decline. T h e figures f o r 1 9 3 0 are only 1 4 percent of the 1 9 1 1 — 1 3 annual average. Such figures may not prove that the restriction system is the best of all possible plans of liquor control, but they should convince a fair-minded person that the scheme has been effective. J s S v e r i ç e s Officiella Statiitik: "Dödsorsaker." 18 Katarina sjukhui àriberattelser. u Sveriçei O fficiella Statistik: "Dödsorsaker."

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RESULTS

The Illegal

Trade

Spokesmen f o r the organized temperance forces have repeatedly pointed to the illegal liquor traffic as a direct result o f the permit system. In a sense they are right. A p p a r e n t l y , the only way to eliminate the illegal trade entirely is to repeal all regulations governing the sale of intoxicants. L e t everyone buy and everyone sell, and there will be no illegal traffic. It is prohibition that causes the illegal trade, and all liquor regulations are prohibitory to a g r e a t e r or lesser extent. In general, prohibition may take three forms. It may be established by fiat of law against the entire population, as we attempted in the U n i t e d States. L e g a l liquor may be placed beyond the reach of a large number of people by virtue of high prices. Finally, the trade may be closed or restricted to certain classes. T h e sponsors of the Bratt System have chosen the third plan. T h e legitimate trade is closed or restricted to young people and to notoriously intemperate persons. G r a n t e d that such a p r o g r a m conforms with accepted i d e a l s — and the temperance people would be hard put in criticising its p u r p o s e — t h e barred classes furnish a clientele f o r the bootlegger. A n d so we have a very pertinent connection between the system and the illegal trade. But the problem cannot be disposed of so simply. T h e r e are historical, geographical, and economic phases to be considered. T h e illicit still has not been a serious problem except in the more sparsely settled regions of the north, where moonshine is traditional and the legitimate product is hard to procure. T h e smuggled wares provide the difficulties. Smuggling is not a recent development, nor is it confined to liquor. It has always existed where national barriers obstruct the free flow of goods between the buyer on one side o f a line and the seller on the other. L i q u o r is no exception. U n d o u b t e d l y the pass book, introduced in 1 9 1 4 , furnished some inducement f o r the smuggler by p r o v i d i n g obstacles to the procuring of a desired product. T h e n came the W a r , bringing with it the food-crisis years o f 1 9 1 7 — 1 9 , when pro-

RESULTS

209

hibition was virtually applied. During this period, the smuggler discovered possibilities among the Swedes. T h e y not only had a thirst, but they possessed buying power. But that was not enough. T o add to her difficulties, Sweden's neighbors voted dry. Finland established prohibition in 1 9 1 9 ; Norway, a f t e r a fashion, adopted it in 1 9 2 1 . 1 8 T h i s situation did not help matters. Steamers came to Strömstad, near N o r wegian waters, loaded with liquor to be smuggled into Norway when the opportunity afforded. Some of these cargoes were bound to slop over into Sweden. T h e Finnish market f o r illegal liquor presented even more serious difficulties. T h e Baltic is narrow, and in supplying the Finnish trade the smuggler found that he could turn a penny by catering to the Swedes on the west side. T h e seacoast of Sweden is approximately the same length as that f r o m M a i n e to Florida. T h e Baltic is literally dotted with islands. T h e r e are thousands of them in the Aland group alone, and the skerries around Stockholm are countless. T h e islands and the sea furnish hiding places f o r the smuggled wares. W i t h such a set up, smuggling has become an organized industry. T h e r e a r e : ( 1 ) the seller at sea, ( 2 ) the carrier to shore, and ( 3 ) the buyer and distributor on land. Both the carrier to land and the distributor assume risks, with the result that prices have been high. T h e y have increased f r o m ten to fifteen times between the rum ship and the consumer, but that has not seriously deterred the traffic. Economic conditions in other countries, notably Germany, have been bad. T h e supply of spirits has not been consumed at home, and the surplus has been unloaded on foreign markets, legally or illegally, f o r whatever the traffic would bear. 18

In a referendum held in Dec., 1 9 3 1 , Finland by a l a r g e majority voted f o r repeal and prohibition w a s abandoned in 1932. T h e prohibition forces won in the N o r w e g i a n plebiscite of 1 9 1 9 , on the question: " D o you f a v o r prohibition of all liquors over 12 percent in alcoholic content?" T h e prohibition l a w , however, passed in 1 9 2 1 , fixed the maximum at 14 percent. T h e repealists won in the referendum of 1926, and prohibition w a s abandoned in 1927 by the enactment of a new liquor l a w .

2IO

RESULTS

H o w to cope with smuggling is a problem. A veteran newspaper reporter, who, in a spirit of adventure, had associated both with the smugglers and the customs guard, assured me that less than a tenth of the contraband wares is intercepted and confiscated. T h e task is to catch the smuggler or to find his cache, and that is not an easy assignment. T h e rum ship holds out to sea. T h o s e who transport the stuff to shore are frequently local fisher folk. T h e y are sturdy sailors, know their skerries, and can pilot a boat on dark and stormy nights when the customs guards hesitate to leave their shelter. T o add to the confusion of the guard, the Baltic is dotted with c r a f t on legitimate errands, motor launches, fishing boats, and thousands of the picturesque little sailing vessels laden with cord wood. Obviously, all of these boats cannot be searched. Attempts have been made to remedy the situation by international agreement. These have been of questionable value. T h e Helsingfors Convention of 1 9 2 5 was signed by eleven powers neighboring on the Baltic. T h e signatories solemnly agreed that smuggling was contrary to public morality, and should be fought in every possible way. T h e y contracted not to permit the export of liquor in ships of their nationality of less than a certain tonnage. T h e y agreed that such a ship could not clear unless it were shown that smuggling was not intended. If the c r a f t carried liquor, the shipper or the commander of the boat would be required to give a written guaranty that the purpose was legitimate and the shipment would enter its destination according to law. T h e signatories have lived up to the letter of their agreement. T h e smugglers also have studied the convention, in order to avoid any conflicts with it. T h e difficulty seems to be that the agreement applies only to ships in the registry of the contracting states. Other ships may clear with any kind of cargo. T h e results of the Helsingfors Convention should be obvious. Rum ships have adopted the registry of nonsignatory powers, such as Hungary or Czechoslovakia, floated their colors, and have technically been subjected to the command of de jure captains of the same nationality as the ship's registry. Actually they

RESULTS

211

have been owned, officered, and manned by nationals of the Baltic states, and smuggling has continued. T h e twelve-mile limit, established by international agreement, likewise has perhaps been bothersome to the smuggler, but he is resourceful and has overcome the difficulties. Indifferent to the cause of research, smugglers and bootleggers publish no official records of their activities, and we are compelled to resort to guesswork when we attempt to measure the extent of the illegal trade. N o one knows how much contraband liquor is consumed in Sweden. One writer has computed that during a period of eight days in the fall of 1 9 3 0 , nearly 1 , 2 5 0 , 0 0 0 liters of spirits and more than 1 , 5 0 0 cases of other liquor were sent f r o m the harbors of the eleven states who signed the H e l s i n g f o r s Convention. 1 8 T h a t is the season when the northern people stock up f o r the Christmas holidays and the figures do not seem exaggerated. T h i s same writer estimated that the South Baltic countries annually sent 9,000,000 liters of spirits to the N o r t h Baltic peoples. T h e s e estimates were made in 1 9 3 0 , when Finland had prohibition, and the Finns undoubtedly received the lion's portion. A l l of the cargo probably did not reach the N o r t h Baltic. A f t e r the ships put out to sea, fast motor boats would start peddling the stuff along the shore, and in this manner it would even be sold in the country from whence it came. T h i s was possible because the spirits were inferior, and could be sold at a f a r lower price than the heavily taxed legitimate product. Some of this liquor filtered into Sweden. W e do not know how much. W e have official statistics f o r the quantity of smuggled liquor confiscated from year to year, but these shed a scanty light on the extent of the illegal trade. F o r example, in 1 9 2 8 , Swedish officials confiscated about 3 2 , 0 0 0 liters of smuggled spirits, and in 1 9 2 9 they managed to intercept about 53,ooo. 2 0 But in 1 9 3 1 , T r i t o n f a v o r e d the customs guards. Storms forced several rum ships too near the shore, and one of these 19 20

Tidskrift Tidskrift

for Systcmbolagen, for Systcmbolagen,

Nov., 1930. Dec., 1930.

212

RESULTS

ill-fated vessels, the Tabor, alone yielded more than 40,000 liters. T h e quantity of intercepted liquor is apt to vary greatly from year to year, but even when it shows a definite trend it fails to tell us what we wish most to learn. In prohibition Finland there was a fairly steady increase in the quantity of smuggled liquor confiscated annually. It was less than 100,000 liters in 1 9 2 0 . A decade later it approached 1,000,000 liters of high percent spirits, plus a small amount of other spirits and wines. This indicates a developing efficiency in the Finnish coast guard. It also shows that increasing quantities of contraband liquor approached the Finnish coast. But it does not reveal what percentage of smuggled liquor was intercepted. A shrewd Finn assured me in 1 9 3 1 that the increasing quantity of intercepted liquor indicated that a larger amount was being safely landed in Finland, rather than that smuggling was being dried up. I am inclined to agree with him, and, if we accept his interpretation, the problem of smuggled liquor in Sweden is not as serious as portrayed. T h e Swedish guards are efficient, but the amount of liquor confiscated is not a drop in the bucket when compared with the legitimate trade. T h e illegal trade has the virtue of making news and is apt to assume undue proportions in the eyes of the public. Illegal consumption is not confined to smuggled wares. Denatured alcohol offers its problems in some sections. T h e denatured product should have the qualities of being unfit for beverage purposes, safe f o r other purposes, and difficult to refine. Those are difficult specifications, and no denaturing material has been found entirely satisfactory. Statistics show a marked decrease in the amount of drunkenness caused by denatured spirits, but such figures are questionable, to say the least. A man careless enough to drink denatured alcohol is apt to be reckless with the truth. Illicit distilling has not been a serious problem. 21 It is limited principally to the sparsely settled regions of the north, and may be accounted f o r largely by the difficulty and expense of procuring legiti21

Home brewing and wine making are permitted.

RESULTS

213

mate liquor. In the northernmost district of H a p a r a n d a there are pass-book holders who live more than two hundred kilometers f r o m the nearest railroad station. 2 2 T h e expense and effort of procuring legal liquor under such conditions is prohibitive, and one should not be surprised to find the smuggler and the still. D e f e n d e r s of the restriction system have blamed prohibition Finland f o r the illegal trade. T h e temperance f o l k h a v e blamed the pass book. Both h a v e been right to a certain extent. T h e smuggler, attracted by the possibilities offered in Finland, could make a profit by unloading his surplus along the Swedish coast. But Finland has repealed prohibition, and the illegal t r a d e still continues. N o w is the time f o r the temperance people to exult and say, " I told you so. I t is the pass book. T h e illegal t r a d e cannot be stamped out until the permit system is abolished. 1 1 T h e y are right. T h e pass book is selective and prohibitive; the person denied a permit is a prospective customer f o r the bootlegger. I f legitimate liquor w e r e cheaper and easier to procure than bootleg, there would be no illegal trade. B u t surely that would not solve the problem satisfactorily f r o m the standpoint of temperance. T h e permit is withheld because of a person's inability to p r o v e , according to accepted standards, his responsibility in the use of intoxicants. T h i s tends to restrict the number of illegal consumers to those v e r y persons whose drinking habits a r e most apt to be a social menace. T h a t is unfortunate, but such persons, even when inebriated with legitimate w a r e s , a r e very apt to be a social menace, and their numbers might increase if legal liquor were readily available. H e r e is where the organized temperance forces offer a solution to which I shall r e f e r later. T h e y advocate increased prices as a substitute f o r the permit system. T h i s , they argue, would discourage the illegal trade. T h a t solution seems a little too h o p e f u l . E v e n with increased prices, it would be necessary to prohibit certain classes, such as youths and notorious d r u n k a r d s ; and the price, to be really 22

Tidskrift

for Syitembolagen,

Feb., 1931.

214

RESULTS

effective as a means of control, would have to be high enough to be prohibitory to a large number of people. T h a t would result in another type of prohibition, and prohibition, necessary as it is in some f o r m or another, is the sine qua non of the bootlegger. L e g i t i m a t e liquor prices were raised in 1 9 3 2 and 1 9 3 3 . Recently, I have seen newspaper accounts to the effect that in some sections of Sweden illegal liquor is sold at a price lower than that of the legitimate product. T h a t is not a v e r y hopeful augury f o r the elimination of the smuggler and bootlegger by the device of raising prices and abolishing permits. I f the goal were only to eliminate the illegal trade, the more logical p r o g r a m would be to abolish the permit and lower the price to a point where the bootlegger would be unable to compete with the legal trade. But the goal of the restriction system is temperance, and a legalized free-for-all would be subversive to that ideal. W e may admit that the illegal trade is a by-product of the restriction system, but let us be balanced in our judgment of it. W h i l e it has furnished an opportunity f o r the bootlegger, it has also restricted the scope of his operation. T h e consumers of illegal liquor constitute a relatively small proportion of the population and most of them are of the type we strive to r e f o r m , regardless of our repeated disappointments. T h e vast majority of people are not concerned about the bootlegger, and take no chances on his offerings. T h e y procure their monthly allotments, get a snaps or two with their meals in restaurants, and apparently are not unreasonably inconvenienced. T h e problem is difficult. R e p e a l in Finland will undoubtedly have a salutary influence. T h e elasticity of the Swedish plan of control should enable it to adjust itself to cope with the situation. W h a t e v e r else the illegal trade has revealed, it has shown the difficulty of prohibition in any f o r m in a country with a thirst and a long seacoast. Criticism A convincing argument is presented f o r the merits of the restriction system when one compares the situation b e f o r e and

RESULTS

215

a f t e r its establishment. Improvement has resulted in a mitigation of the evils which accompany excessive indulgence. It is, of course, questionable to what extent the plan of control has been a determining factor, but even its opponents must acknowledge that it has had a wholesome influence. But they insist that what has been achieved in Sweden under individual control has been realized in other countries on a greater scale by the simpler device of increased liquor prices, and they cite comparative statistics to prove their case. A comparison of developments in Sweden with those of a selected group of other European countries is apt to cause one to question the relative effectiveness of the restriction system and individual control. Comparative statistics naturally increase the chances of error. One is in danger of doing violence to scientific method when he seeks to attribute particular causes, such as plans of liquor control, to phenomena occurring in different social media. T h e problem is also complicated by the fact that varying standards of statistical accuracy obtain in different jurisdictions. But comparative figures are the only available standards f o r measuring results in different countries, and may be taken f o r what they are worth. Comparative statistics constitute more than half of the voluminous Outlines for a New Swedish Liquor Legislation prepared by the legislative committee of the organized temperance f o r c e s . " T h e situation in other countries is used as a basis f o r criticizing the Swedish plan of control, and the policy followed in these countries is recommended as a desirable substitute. Obviously, I cannot do justice here to the 2 3 4 pages of careful and scholarly treatment of comparative statistics contained in the Outlines. But a brief résumé of the findings of the committee is pertinent to a relative evaluation of the restriction system. L e t us turn first to per-capita consumption. T h e per-capita consumption of 50-percent spirits in Sweden in 1 9 3 0 was 7 1 . 3 percent of the 1 9 1 1 — 1 3 annual average. But in Denmark it 23

Riktlinjer

für Ν y Strettii

Alkohoìlagitiftnìng

(Örebro, 1 9 3 1 ) .

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RESULTS

was only 1 2 . 8 ; in E n g l a n d , 3 8 . 3 ; in H o l l a n d , 4 7 . 5 · " Percapita wine consumption in Sweden, during this period, increased 96.3 percent. In D e n m a r k , E n g l a n d , and H o l l a n d , the increases were respectively 3 1 . 9 , 27.4, and 3 0 . 5 . T h e increase in per-capita beer consumption in Sweden w a s 3 1 . 2 percent. In D e n m a r k it w a s only 1 0 . 0 ; and in E n g l a n d and H o l l a n d it actually declined 3 9 . 8 and 28.0 percent. T h e total per-capita amount of pure alcohol consumed in the f o r m s of spirits, wines, and beer in Sweden, during the period covered, decreased 1 9 . 2 percent. In D e n m a r k , E n g l a n d , and H o l l a n d , the reduction was 6 1 . 1 , 5 0 . 4 , and 4 1 . o . 2 5 Such figures are not complimentary to Sweden, and the temperance folk point to them as an indictment of the plan of liquor control. D e f e n d e r s o f the restriction system insist that per-capita consumption is an u n f a i r test, because the Swedish plan seeks to eliminate h a r m f u l indulgence, rather than to reduce total consumption. T h e effects of excessive indulgence, therefore, are sounder standards of measurement. H e r e we find ourselves on more debatable ground. T h e figures are so small that percentages will v a r y f a r in excess of their importance, and it is perhaps more f a i r to take the actual number of cases in proportion to a given population. But here again Sweden suffers by comparison. T h e number of cases of drunkenness in Sweden was reduced f r o m 9.94, the annual 1 9 1 1 — 1 3 a v e r a g e per 1 , 0 0 0 population, to 5.06, the figure f o r 1 9 3 0 , a decrease of nearly 5 0 percent. But in D e n m a r k the decrease was f r o m 6.00 to 2 . 3 3 ; in E n g l a n d , f r o m 4.97 to 1 . 3 1 ; in H o l l a n d , f r o m 4.85 to 2 . 4 0 . " A l l three countries show a greater rate of decrease than Sweden. Cases of delirium tremens per 1 0 , 0 0 0 inhabitants in Stockholm were reduced f r o m the 1 9 1 1 — 1 3 annual a v e r a g e of 9.66 to 1 . 0 4 in 1 9 2 9 . In Copenhagen the decrease w a s f r o m 1 0 . 9 9 t o ° · 4 4 · D e a t h s f r o m cirrhosis of the liver 24

T h e figures f o r Denmark and H o l l a n d are f o r 1929, instead of 1930. T h e Swedish figures f o r wine, beer, and total alcoholic consumption are f o r 1930. T h e others are f o r 1929. 28 T h e figures f o r Denmark and E n g l a n d are f o r 1 9 2 9 ; those f o r Holland are f o r 1928. 25

RESULTS

217

per 100,000 i n h a b i t a n t s in Sweden d e c r e a s e d f r o m the 1911— 13 figure of 3 . 3 5 a y e a r t o 2.56 in 1 9 2 6 ; but in E n g l a n d t h e reduction w a s f r o m 9.38 to 4 . 7 7 ; a n d in H o l l a n d , f r o m 5.63 to 3-33- Questionable as these figures a r e , they show a g r e a t e r degree of i m p r o v e m e n t in some o t h e r countries. E v e n when we seek to m e a s u r e t h e extent of t h e illegal t r a d e by citing the a m o u n t of illegal liquor confiscated p e r capita, we find t h a t Sweden m a k e s a p o o r showing w h e n c o m p a r e d with such countries as E n g l a n d and H o l l a n d . 2 7 T h e o r g a n i z e d t e m p e r a n c e f o r c e s h a v e a t t r i b u t e d this unf a v o r a b l e s h o w i n g to d e f e c t s in t h e plan of liquor control. T h e y contend t h a t o t h e r countries, n o t a b l y D e n m a r k , h a v e achieved f a r m o r e desirable results w i t h o u t a p e r m i t system by the simple m e t h o d of increased taxes a n d prohibitive prices. T h e y insist t h a t the pass b o o k t e n d s t o m a k e people liquorconscious. A m a n is apt to view t h e possession of a p e r m i t to a certain quantity as a right a n d , h o l d i n g such a permit, he will feel t h a t he should exercise his privilege. T h i s a t t i t u d e also prevails in t h e service t r a d e , in connection with m a x i m u m p o r t i o n s of liquor p e r m i t t e d w i t h meals. If the restrictions were removed, reason the spokesmen f o r the temperance people, liquor would not assume the i m p o r t a n c e t h a t now is a t t a c h e d to it. T h e r e may be a g r e a t deal t o this assumption, but, a f t e r all, it is based on conjecture. Social a t t i t u d e s h a v e a disconcerting way of changing so as t o c o n f u s e a n d e m b a r r a s s us when we seek t o stipulate exact causes o r to give definite explanations f o r them. I t seems reasonable t o assume a relationship between the p e r m i t system and w i d e s p r e a d consumption of intoxicants. I t is a plausible hunch. But it is merely a surmise, and must be evaluated as such. T h e suggested remedy m e r i t s m o r e serious consideration. T h e legislative committee of t h e t e m p e r a n c e forces recommends high prices as a substitute f o r t h e plan of restricted allotments. U n d o u b t e d l y if prices a r e increased to a m a r k e d 2T

All of these comparative figure« are compiled f r o m the summaries contained in chap, vii of the Riktlinier. r e f e r r e d to above.

218

RESULTS

extent, there will be a decrease in the quantity of legal liquor consumed. T h e r e w a s a m a r k e d decrease in liquor consumption during 1 9 3 2 . E s t i m a t e s f o r 1 9 3 3 , based on sales f o r the first quarter of the year, indicated a decrease of about 1 8 percent. Such a reduction would bring total consumption back to the 1 9 2 4 level. 2 8 Spokesmen f o r the temperance f o r c e s attribute this decrease to the increased prices of 1 9 3 2 and 1 9 3 3 . D e f e n d e r s of the restriction system insist the depression is the cause. B o t h are right, in so f a r as a decreased purchasing p o w e r will be reflected in the amount of liquor consumed, and ability to buy will be affected either by increased prices o r reduced incomes. T h e facts tend to indicate that the depression, r a t h e r than the price increase, caused the decline in consumption during 1 9 3 2 and 1 9 3 3 . T h e decline b e g a n b e f o r e the increased prices went into effect. I t w a s most noticeable in the sections hardest hit by the depression. T h e r e w a s a f a i r l y close correlation between the decline and unemployment. Consumption remained practically normal in the f e w centers which w e r e only slightly affected by hard times. B u t such facts should strengthen, rather than weaken, the argument of the temperance advocate. H e can claim that the same result can be attained in normal times by sufficiently high prices. T h e dismal y e a r s of 1 9 3 2 and 1 9 3 3 s h o w e d an increasing g a p between the monthly allotment permitted and the quantity p u r c h a s e d ; people took f e w e r o r smaller snapses with their meals in r e s t a u r a n t s ; the number of applications f o r permits declined. Such f a c t s tend to p r o v e the obvious relationship between consumption and purchasing p o w e r , and purchasing p o w e r may be influenced by changing prices. E v e n a depression should h a v e our blessing, if l o w e r i n g per-capita consumption of legal intoxicants w e r e the only g o a l . B u t there is a l w a y s a fly in the ointment. Drunkenness, during 1 9 3 2 and 1 9 3 3 , did not decline in any degree commensurate with the decreased per-capita consumption. T h e plan advocated by the o r g a n i z e d temperance people J8 T h u l i n , E., " V a d är orsaken till konsumtionsminskmngen ?" in Tidskrift Systembolagen, J u l y , 1933.

for

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219

is the so-called " D a n i s h System." T h e scheme is simply to make the price of liquor prohibitive by imposing heavy taxes. T h a t plan has been used in other countries, as well as in Denm a r k . But the D a n e s are next-door neighbors; they are a Scandinavian people, and the Swedish temperance advocate logically sees no reason why a plan which has worked in Denm a r k could not be made to function equally well in Sweden. T h e opponents of the plan are less hopeful. T h e y insist that the D a n e is t h r i f t y , and will not buy spirits if the price is too high, but brännvin can never be too high f o r the Swede. I h a v e lived with both nationalities and I believe t h r i f t is more of a virtue among the Danes, but it is dangerous to generalize about national traits. T h e conditions under which the Danish plan w a s adopted are perhaps of more importance than national characteristics. It had its inception in a crisis brought on by the W a r . In 1 9 1 7 , the Danes began increasing the duties on spirits and continued this policy until the tax levy w a s more than thirty times what it was b e f o r e the W a r . T h i s w a r measure has continued and has received f a v o r a b l e support f r o m labor leaders. T h e r e have been vociferous objections, but, in general, people seem to have adjusted themselves to the situation. H o w e v e r , it is questionable if such a plan could have been adopted in D e n m a r k during normal times, when people were not motivated by the heroic impulses engendered by a crisis. Certainly it is very doubtful that the Swedes would accept a sudden imposition of a policy of prohibitive prices. But if automatic economic control is the end sought, it might be feasible to augment prices gradually until the plan became effective. T h e retail prices suggested in the majority report of the temperance legislative committee in 1 9 3 ι were approximately two and a half times the then prevailing prices f o r the more common brands of spirits. 29 T h i s suggestion met with a storm of disapproval in the press, but the price scale advocated did not approach the Danish level. C o n t r o l by high prices is a f o r m of prohibition operating against people of limited resources, but leaving the door open 28

RUtlinjer,

pp. 246-47.

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t o t h e w e a l t h y , r e g a r d l e s s of t h e i r m e r i t s . T h a t v i o l a t e s Swedish ideals of f a i r play, a n d t h e p l a n h a s b e e n o p p o s e d a s d i s c r i m i n a t o r y class l e g i s l a t i o n . I t is difficult t o g e t a r o u n d t h i s o b j e c t i o n . T h e f a c t t h a t t h e p l a n h a s b e e n i n d o r s e d by L a b o r i t e s in E n g l a n d a n d Social D e m o c r a t s in D e n m a r k d o e s not alter the situation. T h e temperance people argue t h a t l i q u o r is a luxury a n d , like o t h e r luxuries, will n a t u r a l l y b e i n d u l g e d in m o r e by t h e rich t h a n by t h e p o o r . T h a t a s s e r t i o n n e e d s qualification. U n q u e s t i o n a b l y , h i g h p r i c e s w o u l d m a k e b r ä n n v i n a luxury. W i t h a m o d e r a t e price, such as h a s obt a i n e d in S w e d e n , it is a l u x u r y in t h e sense t h a t coffee a n d t o b a c c o a r e luxuries. I t is u s e d by t h e w o r k e r , as well as b y t h e o w n e r of t h e i n d u s t r y . I n S t o c k h o l m , o n e finds a g r e a t e r p r o p o r t i o n of snaps d r i n k e r s a m o n g t h e p a t r o n s of " S . A . R . A . T h i r d C l a s s " t h a n a m o n g t h e g u e s t s of t h e G r a n d H o t e l . O n e m i g h t a r g u e t h a t t h e t h i r d - c l a s s c u s t o m e r can ill a f f o r d a snaps, a n d it s h o u l d be l e g i s l a t e d o u t of his r e a c h , b u t t h a t w o u l d b e a d a n g e r o u s a r g u m e n t even f o r a t e m p e r a n c e politician. 8 0 B u t t h e t e m p e r a n c e p e o p l e u r g e t h a t , w h i l e h i g h prices m a y be a f o r m of class legislation in so f a r as t h e y r e s t r i c t t h o s e w h o a r e economically less f o r t u n a t e , o n e m u s t r e m e m b e r t h a t t h e i n c r e a s e d cost is d u e t o a d d i t i o n a l taxes, a n d t h e s e reven u e s r e v e r t t o t h e public benefit. T h o s e w h o can a f f o r d t h e 30

In d i s c u s s i n g t h e s u g g e s t i o n s m a d e by the o r g a n i z e d t e m p e r a n c e f o r c e s , I find myself u s i n g the t e r m s " t e m p e r a n c e " a n d " t e m p e r a n c e p e o p l e " in such a w a y t h a t I am a p t to be c o n f u s i n g to the A m e r i c a n r e a d e r . T e m p e r a n c e is an i d e a l in S w e d e n , as well as in the United States. T h e s u p p o r t e r s of the S w e d i s h p l a n of l i q u o r control i n d o r s e the system on the g r o u n d t h a t it is t h e f a i r e s t a n d s u r e s t w a y of a c h i e v i n g t e m p e r a n c e a n d , in a sense, t h e y m i g h t be r e f e r r e d to as t e m p e r a n c e people. T h e p h r a s e " t e m p e r a n c e p e o p l e " is a l i t e r a l t r a n s l a t i o n of the S w e d i s h w o r d "Nykterhetsfolk." T h i s w o r d has a m o r e definite c o n n o t a t i o n in S w e d e n . W h e n a S w e d e uses it, he g e n e r a l l y m e a n s the organized temperance forces, professional temperance advocates, members a n d f r i e n d s of t e m p e r a n c e societies, etc. In c o n v e r s i n g w i t h S w e d e s w h o h a v e a n A m e r i c a n b a c k g r o u n d , I h a v e f r e q u e n t l y noted t h a t t h e y r e f e r to these g r o u p s as " d r y s . " T h a t t e r m is w a r r a n t e d by the f a c t t h a t m o s t of these p e o p l e hold to the i d e a l of abstinence, and m a n y still c h e r i s h the hope of total p r o h i b i t i o n as the u l t i m a t e solution. But t h e p l a n to e l i m i n a t e t h e p e r m i t a n d s u b s t i t u t e h i g h prices is c e r t a i n l y not a d r y p r o g r a m in t h e A m e r i c a n sense, a n d it is p e r h a p s less c o n f u s i n g to r e f e r to t h e Nykterhetsfolk as t e m p e r a n c e forces.

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luxury of intoxicants will pay the tax, and the burden will therefore fall on the shoulders most able to bear it. But let us suppose that people who really cannot afford a snaps under the increased price scale will still persist in indulging their tastes. T h a t would place the burden on shoulders already heavily laden. T h e present system relieves the worker, who takes a snaps of renat brcinnvin, f r o m paying a service tax; but the person who fancies delicacies from foreign ports has to pay a service tax, in addition to heavy import and turnover duties. H i g h prices would prohibit certain classes, but it is questionable if this would result in a marked improvement from the standpoint of temperance. According to the report of the temperance committee, a society may be divided into four classes with reference to the use of intoxicants, namely, ( ι ) habitual drunkards; ( 2 ) irresponsible persons; ( 3 ) diligent people with limited resources, such as small farmers, laborers, and other employees; ( 4 ) the well-to-do. Which of these groups would be most affected by high liquor prices? Some of the habitual drunkards would be forced to retrench; others would find an outlet in the illegal trade or in denatured spirits. T h e irresponsible wouid continue to buy, even if the family pantry and wardrobe suffered. T h e well-to-do might shift from T h r e e Star to ordinaire, or from the more expensive blends to renat brännvin. T h e third group would be most affected. T h e y are the most numerous and a retrenchment in this group would naturally be reflected in a marked reduction of the national per-capita consumption. But people of this class, as a rule, use intoxicants with moderation, and restricting them should not result in temperance commensurate with the reduced consumption. Results in Denmark tend to v e r i f y this assumption. H i g h prices in Denmark have placed spirits out of the reach of a large group of diligent and responsible people with limited purchasing power. This largely explains the tremendous reduction in per-capita consumption. But, compared with Sweden, temperance has not kept pace with this reduc-

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tion. A study made by M i s s Schultz leads one to wonder if the beneficial effects revealed by Danish statistics have not been greatly exaggerated. Comparing Copenhagen with Stockholm, Gothenburg, and M a l m ö , she finds that the three Swedish cities, since 1 9 1 3 , have shown a greater improvement than the Danish metropolis with regard to drunkenness in general and drunkenness among women and young people. 3 1 T o this the D a n e might facetiously reply, " N a t u r a l l y , Stockholm is in greater need of improvement than Copenhagen." T h a t is true. In 1 9 3 1 , there was still a f a r greater number of drunks reported per capita in Stockholm than in Copenhagen. But, a f t e r allowing f o r the ups and downs, comparative figures show that while drunkenness decreased in the Swedish cities during the decade f r o m 1 9 2 1 to 1 9 3 1 , it increased in Copenhagen. Conditions have improved in Denmark under the plan of high prices, and in Sweden under the restriction system. Defenders of the Swedish plan can point to the fact that the improvement in D e n m a r k has been achieved by a per-capita consumption reduction of 90 percent, while in Sweden it has been realized by a decrease of about 3 0 percent. 32 T h e Swedish plan has been less drastic. In Denmark, a large number of diligent and temperate persons have been deprived of liquor because of exorbitant prices. In Sweden, these people have been permitted a reasonable allotment at a moderate price. T h e temperance forces, in recommending control by prohibitive prices, are irreconcilably at variance with the theory of the restriction system. T h e i r remedy means a drastic reduction in per-capita consumption. T h e goal of the restriction system is to eliminate h a r m f u l indulgence, rather than reduce total consumption. Supporters of the present system admit that the results are f a r f r o m perfection, but they insist that an elimination of the 31

Schultz, Κ . , " D e t överskattade v ä r d e t av D a n m a r k s fylleristatistik," in irifl for Systembolagen, Nov., 1932. 32 " D e höga spritprUerna och alkoholmissbrukets tillbakaträngande," in irift for Systembolagen, M a r c h , 1932.

TidsTids-

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pass book and a substitution of high prices are very apt to result in more harm than good. H i g h prices would undoubtedly close out those who are more or less indifferent about liquor, but the intemperate would be apt to buy regardless of the price, and the increased costs would cause a further deprivation of the family larder. Strangely enough, that was the argument used by spokesmen f o r the temperance people back in 1 9 0 3 , when the question of increased liquor taxes was b e f o r e the Riksdag. T h e y then argued that the state should not profit by the misery of the poor drunkard, and insisted that increased taxes would take away the crust f r o m his unfortunate w i f e and children. T h e status of the Swedish worker has improved greatly since then ; much has been accomplished by social legislation; but the argument still has weight. T h o s e opposed to control by high prices also point to the menace of the illegal trade, which we have already noted. Smuggling and bootlegging have been a problem under the present system. T h e temperance people blame the system f o r this situation. W o u l d high prices improve conditions? T o me, it seems more reasonable to conclude that prohibitive prices would furnish an additional market f o r the bootlegger, with the result that there would develop an uncontrolled illegal trade with all its attendant evils. Finally, the temperance people have criticised the restriction system on the ground that it does not have popular support. A popular form of liquor control has not yet been devised, but it is probably putting the case too strongly to say that the plan does not have the indorsement of people outside of the circle immediately associated with its operation. I naturally asked people of all classes what they thought of the system of liquor control. F e w were enthusiastic—bubbling over is not a Swedish trait—but many were ready to admit that the plan was functioning as well as could reasonably be expected. But I met more who were ready to censure than to praise. Popularity is relative, and, judging f r o m the spirit in which the suggestions of the temperance committee was received, I feel reasonably certain that a policy of high prices

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is not assured of any widespread approval. In raising the question of public approval, the temperance people have brought out what is probably the most valid test of the success or failure of a system of liquor control. Unfortunately, it is also the most difficult factor to evaluate with any degree of certainty. Public

Approval

It is difficult to measure public opinion on the Swedish plan of liquor control. T h e situation in the United States has been relatively simple by comparison. T h e American practice, during the last half century, has been to hold referenda on the question of prohibition on a local, state, or national scale. T h a t has usually reduced the matter to a choice between two extremes. T h e Swedes have made haste cautiously in attempting the new. T h e r e is also a profound respect f o r local attitudes; city councils and system companies have exercised independence. T h e result is a multitude of determining agencies and varying regulations welded together in a concerted attempt at control. T h a t complicates matters. N o one f a v o r s , and no one is opposed, to every feature of the plan as carried out in every part of the kingdom. R e f e r e n d a furnish us with no bases f o r gauging public opinion on the restriction system. T h e house-to-house canvass, conducted by the temperance people in 1909, revealed an almost unanimous indorsement of prohibition, but that was several years b e f o r e the present plan went into operation. 3 3 T h e only official canvass was the advisory referendum of 1 9 2 2 on the question of prohibiting the sale of beverages of more than 2 % percent alcoholic content by volume. Prohibition was voted down by a slight majority. 3 4 T h i s vote is of historical interest as showing the attitude in 1 9 2 2 , but it is of little value now. D u r i n g the last decade, public opinion has changed in Sweden, as in the United States. T h e r e have been no referenda on the restriction system. 33

See supra, Chap. II. According to the Literary " a y e " 900,901. 34

Digest for Oct. 7, 1922, the vote was "no" 931,423;

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U n d o u b t e d l y the d r y s and t e m p e r a n c e f o r c e s h a v e been losing g r o u n d . M e m b e r s h i p in the l a r g e r temperance societies reached its peak between 1 9 0 7 and 1 9 1 1 . Since then, there has been a steady decline. P r o h i b i t i o n , f o r the present at least, is not a political question. T h e temperance people h a v e been o r g a n i z e d , with the result that they a r e still represented in the R i k s d a g in excess of their numerical strength, but it is not g o o d politics f o r them to a d v o c a t e prohibition. A change has taken place. It is no longer a question of changing the present system f o r prohibition. P r o h i b i t i o n is out of the question. T h e p r o p o s a l to eliminate certain salient f e a t u r e s of the present plan, and to substitute something else, m i g h t f u r n i s h a point on which public opinion could be focused. D i v i d e d a s they a r e on other matters, the o r g a n i z e d temperance people seem to be f a i r l y well united on the desirability of abolishing the pass b o o k and substituting high taxes. T h a t p r o p o s a l has not h a d a popular reception. T h e consumer n a t u r a l l y does not relish the idea, and in m a n y l a b o r circles it is f r o w n e d upon as a f o r m of class legislation. W o r s e still, it has not been p o p u l a r l y received by the metropolitan press and the S w e d e s a r e insatiable n e w s p a p e r r e a d e r s . U n d e r these conditions, it does not seem probable that this plan will be accepted in the immediate future. B u t relief f r o m taxes is appealing, the temperance people are o r g a n i z e d , and by d r u m m i n g a w a y on that chord they m a y swell their chorus with many a t a x - h a r r i e d individual f r o m the ranks of the much exploited middle class. T h o s e w h o most dislike the restriction system d i s a p p r o v e of it f o r different reasons, and this m a k e s the opposition r a t h e r hopelessly divided. T h e temperance people want high prices. T h e bibulous l a b o r e r w a n t s cheap liquor. T h e temperance people want to socialize the beer trade and to restrict consumption. M a n y l a b o r leaders wish to socialize the t r a d e , but want a bountiful supply of m o d e r a t e l y priced beer. T h e temperance people wish to abolish the pass b o o k , but they f a v o r a curtailment of profits f r o m the t r a d e in p r i v a t e restaurants. T h e restaurant o w n e r is indifferent to the pass b o o k ,

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RESULTS

but resents the system c o m p a n y c o n t r o l and the r e c a p t u r e o f profits f r o m his liquor sales. T h e t e m p e r a n c e people a r e h a r d put t o find allies w h o will go the whole way with t h e m . A m o n g the million and a q u a r t e r p e r m i t holders, there is bound t o be a l a r g e number o f disgruntled persons with g r i e v a n c e s against the system, but they a r e consumers and not apt t o be e l a t e d o v e r the prospect o f prohibitive prices. Similar contradictions a r e found in the remedies suggested. P r o p o u n d i n g snap solutions f o r intricate social p r o b l e m s is a p r e r o g a t i v e o f a d e m o c r a t i c people, and the S w e d e s a r e no exception. T h e panaceas a r e i n n u m e r a b l e : high prices and low p r i c e s ; abolishing the pass b o o k and r e t a i n i n g i t ; doing away with the m e a l requirement, m a k i n g it m o r e lenient, making it m o r e s e v e r e ; g r a n t i n g all permit holders f o u r liters a m o n t h ; allowing a monthly portion o f spirits and wine equal t o one liter o f pure a l c o h o l ; selling one liter a m o n t h a t a m o d e r a t e price and g r a d u a t i n g the t a x upwards on additional a m o u n t s ; t h r o w i n g the t r a d e wide o p e n ; p r o h i b i t i n g it entirely. A n d so on and so on. S o m e o f these plans a r e the result o f carefully considered p r o g r a m s , o t h e r s a r e effusions o f a f t e r - d i n n e r o r beer c a f é statesmanship. N o plan has app e a r e d as a s a t i s f a c t o r y rallying point f o r the v a r i o u s elements dissatisfied with t h e restriction system. I f the opposition were united, t h e r e might be a sound basis f o r the contention expressed in the minority r e p o r t o f the t e m p e r a n c e c o m m i t t e e t h a t nothing should be e a s i e r than to o v e r t h r o w the restriction system if the t e m p e r a n c e people desired it. U n d e r existing conditions, t h a t s t a t e m e n t seems r a s h . I t is very doubtful t h a t the supporters o f the plan a r e in the m a j o r i t y , but t h e i r influence exceeds t h e i r numerical s t r e n g t h . T h e system fits into the social and political scheme o f things in such a way t h a t a l a r g e number o f people in all sections o f the country have become associated with it, either directly o r indirectly. T h e hundred and twenty-two system companies, with their m e m b e r s , directors, m a n a g e r s , and personnel, a r e s c a t t e r e d t h r o u g h o u t the k i n g d o m . Such governmental agencies as city councils, courts, police d e p a r t m e n t s ,

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supervisors of temperance, and o t h e r communal authorities come into intimate contact with the p r o g r a m of liquor control. T h e system companies and local officialdom embrace w h a t might be termed a group of insiders, but, in fairness to the restriction system, one must admit that it has received its heartiest support f r o m the groups who have observed its operation at close range and are in the best position to evaluate its results and possibilities. Popular support is not limited to these inner circles. T h e press, in the main, appears to be friendly. Among the leaders of organized labor there are many who indorse the plan as a fair and equitable arrangement. Then there is that large g r o u p of substantial, dependable, public-spirited citizens who go quietly about their business and say little about liquor control, but who are mindful of the difficulties and feel t h a t the restriction system is working as well as can be expected. It would be stretching matters to say these people are entirely satisfied, but they are practical and would rather suffer the evils they have than fly to others they know not of. Outside of the temperance forces and groups with grievances, the attitude of the Swedish public toward their plan of liquor control seems to be one of toleration. T h e success of a m a j o r p r o g r a m is very apt to depend, not on the soundness of its basic principles, but on the number of petty annoyances attending its execution. T h e r e are many sources of irritation connected with the operation of the restriction system. Usually they are not essential features of the plan, but the whole system comes up f o r criticism. People resent paternalism. T o o stringent local regulations are frequently galling. T h e meal requirement offends many, because it makes an evening outing f o r the family too expensive. Closing hours in retail stores, especially the two o'clock closing on Saturdays and days before holidays, have aroused protests. People f a r removed f r o m railway stations are inconvenienced because the parcel post is closed to liquor shipments. And then there is the eternal restaurant problem. M o s t of these difficulties are accessory matters, which can be alleviated with-

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out interfering with the operation of the plan of control. Relief from most of these petty annoyances can be realized by minor statutory changes and by action of the board of control, local city councils, and system companies. Opponents have singled out certain features as points of attack. T h a t is good strategy, rather than a sound method of appraisal. T h e plan of control must be judged by its m a j o r achievements, and these are praiseworthy. On the economic side, the private profit motive has been abolished, with the result that g r a f t and political pressure are eliminated, honest wares are sold at f a i r prices, and the state is assured of prompt payment of the revenues and profits. T h e plan has also justified itself from the standpoint of temperance, and is rich in promise f o r the future. Unlike their neighbors to the east and west, the Swedes have been spared the trying ordeals of prohibition and repeal. T h e y have avoided radical departures, have kept what they had, and modified it to suit existing needs. T h e result is the paradox of stability and flexibility. But it works. If the temperance forces should carry the day and succeed in abolishing the pass book and substituting a policy of high prices, the change would not be as radical as one might be led to believe. T h e system companies would continue; the supervisors of temperance would still p e r f o r m their thankless tasks; the wholesale, retail, and service trades would be conducted as before. If high prices proved unsatisfactory, the permit could again be g r a f t e d on to the old scheme of things. Continuity and flexibility are cardinal virtues in the Swedish plan of control. T h e American, leaping hopefully from one extreme to another, has much to learn f r o m the Swede.

XI A

POSTSCRIPT

BY a resolution of September 24, 1 9 2 8 , the Riksdag provided f o r the appointment of a revising commission to make a thorough study of the problem of liquor control and propose such changes as it deemed necessary. During the preparation of my manuscript I have anxiously awaited the appearance of the report of this commission. T h e report was not released until October 2 3 , 1 9 3 4 , and I was unable to procure a copy until a f t e r my manuscript had gone to press. T h e conclusions of the commission, embodying the legislative proposals, explanation of motives, reservations and exceptions, and appendices, comprise a volume of more than seven hundred pages. 1 Obviously, I cannot do justice to a report of such length and importance in a brief postscript, but to bring my work up to date, it is necessary to indicate the major changes suggested by the commission. T h e suggestion made by the temperance forces to substitute a plan of high prices f o r the present system of control apparently found little f a v o r . T h e proposals of the commission endorse the principle of the restriction system and suggest changes f o r facilitating its operation. T h e aim seems to be a greater degree of uniformity in the application of regulations, and the majority report suggests a curbing of communal autonomy to attain this goal. T h e county is emphasized at the expense of the commune as a unit of local control. N o major changes are suggested f o r the wholesale trade. Beer is outside the purview of the sale of intoxicants act, and the commission has not concerned itself with the trade in malt beverages. A new agency is proposed in the form of the county super1

T h i s document is published in the series listed under Statem ning ar 1934.. T h e title of the work is Betänkande med förslag fòrordnittg m. m.

ofjentliga utredtill spritdrycks-

230

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POSTSCRIPT

visors of temperance. T h i s body would be composed of five members, of whom two, the chairman and a physician, would be selected by the central g o v e r n m e n t ; one would be appointed by the county b o a r d ; and two would be chosen by the county council f r o m the communal supervisors of temperance in the county. T h e county supervisors would serve as a coordinating agency advising and directing the communal supervisors. Drastic changes are proposed in the number and organization of the system companies. T h e number of companies would be reduced to thirty. T h e proposed statute provides f o r one company f o r each of the twenty-four counties, and by action of the crown some of the l a r g e r counties would be divided into two system districts. T h e proposal includes a uniform charter f o r all companies; the trading company (handelsbolag) form of organization is eliminated and all are corporations ( a k t i e b o l a g ) ; the number of stockholders may not be less than ten nor more than twenty and no one may own more than one share of stock with a p a r value of 1 , 0 0 0 kronor. T h e board of directors would still consist of five members, but the manner of selection is altered. One, the chairman, would be appointed by the b o a r d of control, one would be selected by the county council, t w o would be chosen by the county supervisors of temperance, and one would be elected by the shareholders. In a f e w places where the city does not participate in the election of a county council, the city council would also select a member of the board. T h e proposed law expressly establishes the jurisdiction of the b o a r d of control over the system companies by a specific enumeration of the board's powers in this respect. T h e proposed legislation is considerate of the consumer's convenience. T h e four-liter monthly maximum would be retained, but the granting of pass books and the determination of individual allotments by a county system company would remove the possibility of v a r y i n g restrictions imposed by local city councils. Perhaps the most liberal provision of the proposed law is that when a permit holder has not exhausted his

A POSTSCRIPT

23Î

monthly allotment f o r any given month, he may purchase the r e m a i n d e r any time within a p e r i o d of six months. T h i s aims to eliminate the necessity of accumulating supplies, and is postulated on the theory that the person w h o husbands his liquor should not be unduly restrained. T h e p r o p o s e d l a w repeals the restrictions against the use of the parcel post f o r sending intoxicants and permits a system company to make shipments to the nearest post office o r the nearest r a i l w a y , boat, o r bus station without extra cost to the consumer. T h e company w o u l d be permitted to maintain supply depots f r o m which such g o o d s could be sent. T h e company could also maintain retail liquor stores in communities where they were located in 1 9 3 4 , and in any other urban commune with a population of 5 , 0 0 0 , r e g a r d l e s s of local option. T h i s last p r o p o s a l seems r e v o l u t i o n a r y , but it affects only f o u r o r five cities. T h e p r o p o s e d l a w prohibits the retail trade in strictly rural communes. T h i s likewise a p p e a r s more sweeping than it really is. A t present the retail t r a d e exists in only five purely r u r a l communes, all located in one county in southern Sweden. T h e annoying t w o o'clock closing on S a t u r d a y s and d a y s b e f o r e holidays w o u l d be c h a n g e d to f o u r o'clock, with the additional concession that anyone who was in the store at closing time w o u l d be w a i t e d on. T h i s would alleviate a constant source of irritation, especially among w o r k i n g men. F i n a l l y , under the p r o p o s e d l a w , a person feeling that he h a d been discriminated against by his county system company w o u l d be given the right to appeal to the b o a r d of control. T h e p r o p o s e d legislation retains local option in the service trade with certain qualifications. A n exception is m a d e in the tourist service of pleasure and health resorts that attract the general public r a t h e r than a local p a t r o n a g e . H e r e the crown m a y o v e r r i d e the wishes of the local commune and provide f o r the exercise of s e r v i n g rights by the county system company. B u t protection is a f f o r d e d the commune. T h e serving rights m a y not be let out to a p r i v a t e restaurateur, but must be exercised by the system i t s e l f ; and to s a f e g u a r d the purposes of local option, liquor service will be extended only

232

A

POSTSCRIPT

to guests w h o h a v e m a d e a t h r e e - d a y r e s e r v a t i o n a t the r e s o r t . C o m m u n e s w o u l d be r e s t r i c t e d in the exercise o f l o c a l option. T h e y could still close out the service t r a d e , but if they a d m i t t e d it, they could not i m p o s e restrictions m o r e s e v e r e than the g e n e r a l r e g u l a t i o n s w i t h r e g a r d t o such m a t t e r s a s the meal r e q u i r e m e n t , the q u a n t i t y of liquor t o be s e r v e d , a n d the a g e qualification of g u e s t s . T h e y could d e t e r m i n e the number of s e r v i n g places a n d close certain p a r t s of the city to the t r a d e , but they could n o t definitely a l l o c a t e s e r v i n g r i g h t s to certain places. T h a t w o u l d be l e f t to the a g e n c y g r a n t i n g the rights, n a m e l y , the county b o a r d . T h e m e a l requirement w o u l d be i m p o s e d by statute f o r the s e r v i n g of spirits, and the b o a r d of c o n t r o l w o u l d be legally a u t h o r i z e d to require f o o d service with h e a v y wine. T h e b o a r d o f control w o u l d be a u t h o r i z e d by l a w to d e t e r m i n e the m a x i m u m quantity of spirits and h e a v y w i n e p e r m i s s i b l e with a m e a l . Such regulations should l e a d to a r e m o v a l of m a n y a n n o y i n g local restrictions. T h e r e s t a u r a n t p r o b l e m h a s not been s o l v e d . T h e p r o p o s e d legislation s t a n d a r d i z e s the f o r m o f the s y s t e m c o m p a n y rest a u r a n t c o r p o r a t i o n and p r o v i d e s t h a t the s y s t e m itself must exercise s e r v i n g r i g h t s in p e o p l e ' s r e s t a u r a n t s o r in p l a c e s w h e r e the clientele and the p r i c e o f m e a l s is such t h a t they m a y be classified as p e o p l e ' s r e s t a u r a n t s . T h e c o m m i s s i o n on revision has only a c o m p r o m i s e to o f f e r f o r the solution o f the v e x a t i o u s p r o f i t q u a n t i t y . A g a i n s t the d e m a n d s f o r ord i n a r y c o m m e r c i a l profits, on the one h a n d , and returns equal only to the costs of the service, on the o t h e r , the c o m m i s s i o n suggests a c o m p u t a t i o n of the p r o f i t quantity on the a v e r a g e annual sales o v e r a p e r i o d of y e a r s . T h i s s h o u l d r e d o u n d to the a d v a n t a g e of the r e s t a u r a n t o w n e r by p e r m i t t i n g h i m to balance the b a d y e a r s a g a i n s t the g o o d . T h i s solution, h o w e v e r , will p r o b a b l y not e v o k e any g r e a t e n t h u s i a s m . T h e clause o f t a k i n g effect in the p r o p o s e d l e g i s l a t i o n w o u l d m a k e the new l a w o p e r a t i v e O c t o b e r i , 1 9 3 7 , but it can h a r d l y be expected that the R i k s d a g w i l l p a s s it in its entirety. T h e commission, c o m p o s e d of only nine men, ap-

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p e a r e d hopelessly d i v i d e d , and 1 7 0 pages of the report are d e v o t e d to exceptions, reservations, and dissenting v i e w s of individual members. T h i s certainly does not indicate early action o r unanimity in the R i k s d a g . B u t the press, in the main, seems to be f a v o r a b l e , and the p r o p o s e d legislation has much to recommend it. In clarity of expression, it is a big improvement o v e r existing statutes, and it has the virtue of seeking to r e m o v e most of the minor irritations. It also seeks to establish a desired u n i f o r m i t y without doing needless violence to local desires.

BIBLIOGRAPHICAL

NOTE

VERY little of a comprehensive nature has been published in English on the Swedish system of liquor control. T h e r e are numerous magazine and newspaper articles, fair, bad, and indifferent. M o s t of them are based on a too local and casual observation and are essentially impressionistic; many are prejudiced; some are positively misleading. A fairly accurate picture is presented in the little pamphlet brought out by the Association against the Prohibition Amendment, The Bratt System of Liquor Control in Sweden (Washington, 1 9 3 0 ) . T h e best résumé I have found in English is J o h n Bergvall's The Liquor Legislation in Sweden ( N o r r t e l j e , 1 9 3 1 ) , which is an abridged translation of his Swedish brochure listed below. A fairly comprehensive German treatment is found in Wilhelm Bickerish's Das Brattsystem. Eine Untersuchung der schwedischen Alkoholkonsumtionspolitik (Griefswald, 1 9 2 3 ) . In Swedish there is an extensive literature dealing with various special phases of the problem. Bergvall furnishes a short but excellent general survey in his brochure, Restriktionssystemet, hur det kommit till, hur det arbetar, vad det uträttat (Stockholm, 1 9 2 6 ; rev. ed., Norrtelje, 1 9 2 9 ) . H e is familiar with every angle of the system of liquor control; his study, while too brief, is thorough, and I have drawn f r o m it freely. Among the general treatises there is also the work by E . J . Thulin and E . Rosenborg, Det svenska restriktionssystemet (Stockholm, 1 9 2 7 ) . T h e historical development of liquor legislation is covered in the voluminous work of A . E v e r s , Den svenska brännvinslagstiftningens historia (Lund, Vol. I, 1 9 2 3 ; Vol. II, 1 9 3 1 ) . A briefer treatment covering the earlier period is offered by S. Wieselgren's Om svenska brännvinslagstiftningen 1855-1877 (Stockholm, 1 8 8 0 ) . T h e ideational bases f o r the present method of con-

236

BIBLIOGRAPHICAL

NOTE

trol find a lucid expression in the earlier pamphlets of I v a n B r a t t , notably in his Kan nykterhetsfrâgan lösas ut an totalförbud? Eft reformprogram (Stockholm, 1 9 0 9 ) , and Nykterhetspolitiska utvecklingslinjer (Stockholm, 1 9 0 9 ) . R e p o r t s of committees and commissions of inquiry a r e valuable. T h e report of the committee of the Swedish M e d i c a l Association headed by D o c t o r B r a t t found expression in Alkoholen och samhället (Stockholm, 1 9 1 2 ) ; the national council of Swedish temperance associations brought out Riktlinjer för ny svensk alkohollagstiftning (Örebro, 1 9 3 1 ) . B o t h of these are important as revealing contemporary problems and attitudes, and both suggest sweeping changes in the legislation extant when they were written. T h e latest of these comprehensive reports is the voluminous document issued by the parliamentary commission (Rusdrycks lagstiftningsrevisionen) appointed in 1 9 2 8 to make a general study of liquor regulations with a view to suggesting revisions. T h i s report was released October 2 3 , 1 9 3 4 , as Betänkande med förslag till spritdrycksförordning, and is the work I have sought to summarize in C h a p t e r X I . I have been compelled to rely principally on such original source material as annual reports, statutes, and administrative orders. T h e annual reports of the board of control covering the sale of intoxicants (Rusdrycksförsäljningen) have been the most helpful. Brief and compact, they give an accurate account of all phases of the spirit and wine trade f r o m y e a r to year. A brief introductory résumé and a table of contents in French make them usable to the person who is not f a m i l i a r with Swedish. T h e Swedish Statistical Y e a r B o o k (Statistisk ärsbok för Sverige) likewise has a table of contents in Swedish and French and the captions to the tabular material appear in both languages. T h e annual reports of Vin- & Spritcentralen cover the wholesale trade in spirits and wine, and the yearly reports of the system companies tell the story of the retail and service trade in the different company jurisdictions. T h e reports of the Stockholm system (Aktiebolaget Stockholmssystemet) are the most inclusive,

BIBLIOGRAPHICAL

NOTE

237

but a thorough study necessitates an examination of the reports of the smaller companies. T h e annual reports of the N o r m a C a f é Company ( K a f é a k t i e b o l a g e t Norma) in Stockholm give an account of a beer service trade conducted along system company lines. Fortunately, one does not have to cull the formidable Sveriges Rikets Lag to find the legal provisions governing the liquor trade. T h a t task has been admirably performed by E . J . Thulin in his Alkohollagstiftningen (Norrtelje, 1 9 3 0 ) , which is a brief but carefully compiled and annotated edition of the various statutes regulating alcohol. Thulin also furnishes a more specialized account of the legal phases of the service trade in his Vad är lag ifrâga ont utskänkning αν alkoholhaltig a drycker (Norrtelje, 1 9 2 9 ) . T h e statutes are supplemented by administrative orders or circulars issued by the board of control and referred to collectively as the Kungl. Kontrollstyrelsens Cirkulärsamling. Each circular is a separate leaflet bearing a definite number and title. In Chapter I I I , I have referred to the more important of these circulars. A m o n g the periodicals, I have drawn mainly from Tidskrift for Systembolagen. It is the organ of the system companies and on controversial questions it is naturally biased in f a v o r of the restriction system, but it is published monthly and provides a wealth of up-to-date information which cannot be procured f r o m any other source. Other periodicals of a more specialized nature a r e : Tirfing, devoted to instruction in temperance; Tidskrift för Nykterhetsnämnderna, official organ of the supervisors of temperance; and Svenska Bryggareföreningens Mánadsblad, the trade journal of the Swedish Brewers Association.

INDEX A

Β

A c t of 1855 R e g u l a t i n g Sale of B r ä n n v i n , i l , 14, 19 A c t of 1913, 1 7 6 ; p r o v i s i o n s o f , 1 7 7 - 7 8 ; a m e n d m e n t s to, 182 A c t of 1917. See S a l e of Intoxicants Act A c t of 1 9 2 3 : classification of m a l t beve r a g e s , 151 ; principal effect of, 153 A c t R e g u l a t i n g the Sale of P i l s n e r , 150,

B e e r : definition o f , 1 5 2 ; history of regulations, 1 5 3 - 5 4 ; statutory r e g u lation of, 154 ff. ; licensing o f , 154 ff. ; wholesaling of, 1 5 5 8 . ; retailing of, 155 fr.; c o n s u m p t i o n of, 163-64; r e v e n u e f r o m , 170 ff.; d e c r e a s e in w h o l e s a l e prices, 1 7 2 ; t a x a t i o n o f , 170 ff.; e x c e s s i v e retail prices, 173 B e e r c a f é s : types o f , 1 5 9 - 6 0 ; profits o f ,

154 " A g e of l i b e r t y , " 8 A g r i c u l t u r a l associations, 15 Agricultural laborers, drunkenness a m o n g , 121, 158-59, 172, 203, 205 A ktiebolag, 37 AL See act of 1913 A l c o h o l , d e n a t u r e d , p r o b l e m of, 212 A l c o h o l i c content of spirits, 71 ff., 115 A l c o h o l i c insanity, 207 A l c o h o l i c s : act p r o v i d i n g f o r c a r e of, 176 ff. ; f u n c t i o n s of s u p e r v i s o r s of t e m p e r a n c e , 181 ff. ; institutions f o r , 183-84

1 6 0 ; c o m p a n y control of, 160 ff. " B e e r route," 154, 156 B e e r t r a d e : r e g u l a t i o n o f , 155 ff.; competition in, 1 6 5 - 6 6 ; m o n o p o l y o f , 168 ff.; criticism o f , 172 ft.; proposed r e f o r m s , 174 B e r g v a l l , J. : on types of system c o m panies, 3 7 ; on w h o l e s a l e t r a d e , 6 1 ; on m e a l requirement and pass-book r e g u l a t i o n s , 139 Betankende med förslag till ipritdrycks-

A l c o h o l i s m : t r e a t m e n t o f , 181 ff.; comp a r a t i v e statistics on, 205 ff.; deaths f r o m , 206-7 Alkoholen och Samhället, 22, 25, 26, 28 A liman ràdstuga, 20 A l l o t m e n t s : bases f o r , 79 ff.; v a r i a t i o n s in, 79 ff.; extra allotments, 99, 1 1 5 ; trend in, i i o f f . ; proposed c h a n g e s in, 230-31 A l s t r ö m , O., on S u n d s v a l l System, 160, 162 A n d r é e , E., 27 A r r e s t s . See d r u n k e n n e s s A s s o c i a t i o n of B r e w e r y O p e r a t o r s , 166— 67 A s t r a C o m p a n y , 60 A u d i t o r s : in system c o m p a n i e s , 4 2 ; in V i n - & S p r i t c e n t r a l e n , 66-67 A u t o m a t i c economic control, 81, 215 ff. A u t o m o b i l e , 1 7 9 ; effects on arrests f o r d r u n k e n n e s s , 2QO

förordning, 229 " B l i n d selection," 72 B o a r d of control. See R o y a l B o a r d of Control B o o t l e g liquor. See I l l e g a l liquor B r ä n n v i n : n a t u r e of, 5 ; history of, 5 ff. ; e a r l y r e g u l a t i o n o f , 11 B r a t t , D o c t o r I v a n : policy o f , 2 5 - 2 6 ; opposition to prohibition, 24-25. See also B r a t t System B r a t t S y s t e m : l e g a l basis f o r , 1 8 ; establishment of, 26 ff. ; i m p r o v e m e n t u p o n G o t h e n b u r g System, 30 B r e w e r i e s , distribution and c o m b i n a tions of, 168-69 B r e w e r s associations, 166 B r e w i n g industry, 164 ff.; difficulties o f , 1 6 5 - 6 6 ; criticism o f , 1 7 3 - 7 4 " B u y i n g f r e q u e n c y , " 172 ff.

c C a f é s , 130. See also B e e r c a f é s C a p i t a l i z a t i o n : of system c o m p a n i e s ,

240

INDEX

43 ff. ; of V i n - & S p r i t c e n t r a l e n , 68 Carnegie

(D.)

D

67-

and C o m p a n y , 60, 1 5 0 -

5' C e l l u l o s e spirits, 83 C e n t r a l A s s o c i a t i o n f o r Instruction in T e m p e r a n c e , 178. See also Temp e r a n c e societies Centralförbundet för Nykterhetsundervitning, 178 C h a r t e r s of system c o m p a n i e s , 38 ff. C h r o n i c alcoholism. See Alcoholism " C i r c u l a r N o . 7 1 , " 52, 87-88 C i r r h o s i s of the l i v e r : d e c r e a s e in, 2 0 7 ; c o m p a r a t i v e statistics on, 2 1 6 - 1 7 C i t i e s e x c l u d i n g l i q u o r t r a d e , 36, 231 C i t y c o u n c i l : p o w e r o v e r system c o m p a n y c h a r t e r , 38 ff.; control o v e r system district 89 ff. ; control o v e r s e r v i c e t r a d e , 1 2 3 ; control of b e e r t r a d e , 155 ff. ; p r o p o s e d limitations on, 2 3 1 - 3 2 Communal assembly, 19; powers over system c o m p a n y c h a r t e r s , 39 C o m m u n a l control. See L o c a l control C o m m u n e s , 20; r e g u l a t i o n of system c o m p a n i e s , 36 " C o m p a n y c a f é s , " 128 C o n s u m p t i o n of i n t o x i c a n t s : trend in spirits a n d w i n e consumption, 71 ff. ; n u m b e r of c o n s u m e r s , 95 ; as restricted b y p a s s books, 1 1 0 ff.; inc r e a s e in, 1 9 1 - 9 2 ; b y w o m e n , 1 9 8 ; by youths, 198-99; comparison with other c o u n t r i e s , 202; in relation to p r o s p e r i t y , 218. See also P e r c a p i t a consumption Convictions f o r drunkenness: records o f , 201 ff. ; in r e l a t i o n to other c o u n tries, 202 C o u n t i e s , 3 8 ; e m p h a s i z e d as c o n t r o l l i n g a g e n c i e s , 229 C o u n t y g o v e r n o r : g r a n t i n g system c o m p a n y c h a r t e r s , 38, 41 ; p o w e r to close retail l i q u o r t r a d e , 1 1 8 ; p o w e r to extend hours of s e r v i c e , 1 2 5 ; g r a n t i n g licenses in beer t r a d e , 155, 156 County supervisors of temperance, 229-30 C r i m e , d e c r e a s e in, 207 " C r i s i s y e a r s , " 29 " C u r a t i v e a l l o t m e n t , " 1 1 7 , 120

" D a n i s h System," 219 D e l i r i u m t r e m e n s , 205 ; d e c r e a s e in, 2 0 7 ; c o m p a r a t i v e statistics on, 216 D e n a t u r e d alcohol. See A l c o h o l D e p r e s s i o n , effects on l i q u o r consumption, 218 Detaljhandel. See R e t a i l t r a d e D i r e c t o r s , b o a r d s o f : V i n - 4 Spritcentralen, 65-66; system companies, 41 ff. ; p r o p o s e d c h a n g e in, 230 D i s i n t e r e s t e d m a n a g e m e n t : establishment o f , 1 4 ; h o w m a i n t a i n e d ' i n s e r v ice t r a d e , 133 ff. D i s t i l l i n g : e a r l y r e g u l a t i o n s , 7 - 8 ; as m a n a g e d by V i n - te S p r i t c e n t r a l e n , 69 D i s t i l l i n g , illicit, 2 1 2 D i s t r i b u t e d allotment, 101. See also C u r a t i v e allotment " D o m e s t i c - u s e " distilling, 7 D r u n k e n n e s s : control by system companies, 100 ff. ; a m o n g pass-book holders, 1 2 0 ; in the s e r v i c e t r a d e , 1 4 5 ; f r o m b e e r , 1 7 2 ; relation to per c a p i t a c o n s u m p t i o n , 195 ff. ; arrests f o r , 199 ff. ; a m o n g w o m e n , 2 0 1 ; reco r d s o f , 201 ff. ; by a g e g r o u p s , 2023 ; in r u r a l sections, 2 0 3 - 4 ; a m o n g l a b o r e r s , 2 0 4 - 5 ; c o m p a r e d to other countries, 216 " D r y s . " See T e m p e r a n c e societies

E Eau-de-vie, 72 E x p e n d i t u r e s f o r l i q u o r , 189 ff. " E x p o r t ale," 1 5 2 " E x p o r t s p i r i t s , " 74, 82 E x t r a allotments, 99, 1 1 5

F F a l u n System, b y - l a w s o f , 1 2 - 1 3 F i n l a n d , effects of prohibition in, 209 ff. Folkrestaurant. See People's restaurants Försäljningsrättigheler. See Licenses to sell

G Glôffç, 84 Gothenburg

S y s t e m : establishment

of,

241

INDEX 1 3 ; purpose o f , 1 3 - 1 4 ; l e g a l a u t h o r i z a t i o n o f , 1 4 ; a l l o c a t i o n of profits of, 1 4 - 1 5 ; l i m i t a t i o n s o f , 1 6 ; local control of, 19 ; results o f , 20 ff. ; w e a k nesses o f , 2 1 - 2 2 ; as b a s i s f o r B r a t t System, 30 G o t h e n b u r g System C o m p a n y , r e g u l a t i o n s of, 89-90 G o v e r n m e n t c o n t r o l : of s y s t e m companies, 39-40; of V i n - Sc Spritcent r a l e n , 63 ff. ; of beer t r a d e , 154 ffG r ö n s t e d t and C o m p a n y , 58, 62

H Handelsbolag. See Trading companies H e l s i n g f o r s C o n v e n t i o n , 210, 2 1 1 H o l m , S., on police statistics, 146 H o m e b r e w i n g , 212 H o s p i t a l i z a t i o n of a l c o h o l i c s : l a w s rel a t i n g to, 1 8 2 ; e n f o r c e d h o s p i t a l i z a tion, 183 H o s p i t a l s f o r alcoholics, 183-84 " H o u r s of s a l e " r e g u l a t i o n s , 118, 1 2 5 ; p r o p o s e d c h a n g e s in, 231 I l l e g a l t r a d e , 208 ff. See also S m u g gling

I Illicit distilling, 2 1 2 - 1 3 I m p o r t a t i o n of l i q u o r : control by V i n k S p r i t c e n t r a l e n , 71 ff. I n c o m e and liquor e x p e n d i t u r e s , 1 8 9 90 I n c r e a s e d prices, 77, 84-85. See also P r o h i b i t i v e prices I n d e p e n d e n t b u r e a u s , 50 Individual control: establishment of, 2 7 ; basis o f , 8 0 - 8 1 ; scope o f , 85; m e r i t s o f , 86; in r e l a t i o n to the S a l e of Intoxicants A c t , 8 6 - 8 7 ; legal a u t h o r i z a t i o n o f , 87 ; by system c o m panies, 89 ff. ; o p e r a t i o n of, 95 ff. ; l a b o r i n v o l v e d in, 103 ff.; costs o f , 1 0 4 - 5 ; difficulties o f , 118 ff.; effect u p o n per c a p i t a c o n s u m p t i o n , 1 9 1 9 2 ; r e l a t i o n to d r u n k e n n e s s , 204; relation to mental a n d p h y s i c a l diso r d e r s , 207; r e l a t i o n to i l l e g a l t r a d e , 213 I n s a n i t y . See A l c o h o l i c International standard content, 192

insanity of alcoholic

J J our havande

revisor,

67

Κ "Κ. Β.," 38, See also C o u n t y g o v e r nor Kaféaktiebolag, See S u n d s v a l l System Kaféaktiebolaget Norma, 162-63 Källarmästare, 136, 145, 148 Kommunalstämma. See Communal assembly ¡Conditori, 124 Kringföring. See " B e e r r o u t e " Krog, 8. See also S a l o o n s Kungelige kontrollstyrelsen. See R o y a l B o a r d of C o n t r o l Konungens bef alining shavahde, 38. See also C o u n t y g o v e r n o r

L Lagad mat, 124, 12$. See also M e a l requirement L a g e r beer, 164-65 Län. See C o u n t i e s Let-out rights, 130 ff. L i c e n s e s to sell, 155 ff. See also L e t out r i g h t s L i c e n s i n g : o f b e e r t r a d e , 155 ff. ; r e v o c a t i o n of licenses, 158 L i g h t g r o g , 141 L i q u o r stores, d e s c r i p t i o n o f , 98 L i t e r of spirits, definition o f , 73 L o c a l a u t o n o m y : difficulties o f , 91 ff.; v a l u e o f , 9 3 - 9 4 ; in r e g a r d to b e e r , 158—59 ; s u g g e s t e d c h a n g e s in, 229 ff. L o c a l c o n t r o l : b e g i n n i n g s o f , 11 ; in relation to n a t i o n a l control, 39; of system c o m p a n i e s , 90-91 ; of s e r v i c e t r a d e , 1 2 3 ; of b e e r , 1 5 8 ; s u g g e s t e d c h a n g e s in, 229 ff. Local option: statutory authorization of, 1 9 ; d e v e l o p m e n t o f , 1 9 - 2 0 ; in cities as c o m p a r e d w i t h r u r a l a r e a s , 36; s u g g e s t e d c h a n g e s in, 229 ff.

M M a l t b e v e r a g e s , c l a s s i f i c a t i o n o f , 151 ff. M a l t tax, 1 7 0 - 7 1 " M a n a g e r r e s t a u r a n t s , " 127 M a x i m u m allotments. See A l l o t m e n t s M e a l r e q u i r e m e n t : imposition in Stock-

INDEX

242

holm, 2 8 ; purpose of, 1 3 8 - 3 9 ; effectiveness of, 1 3 9 ; price criterion of, 1 3 9 - 4 0 ; quantity of liquor with meal, 140 ff. ; objections to, »43 ff. Monopoly: of system companies, 40; of wholesale trade, 55 ; of brewing industry, 168 ff. Molbok. See Pass book Motor vehicle act, 179 Ν " N e a r beer," 1 5 1 - 5 2 ; consumption of 163-64 New G r a n d Hotel, 60 Night clubs, 1 2 5 Norma C a f é Company, 162 ff. N o r w a y , effects of prohibition in, 209 Nykterhetsfolk, 220 Nykterhetsnämnd. See Supervisors of temperance O Ordningsman, 146 "Outlines f o r a N e w Swedish Legislation," 174, 2 1 5

Liquor

Ρ Parcel post f o r liquor shipments, 99, 231 Partihandel. See Wholesale trade Pass book: establishment in Stockholm, 2 7 ; application for, 95 ff. ; use of, 98; nature of, 98-99; age when granted, 1 0 9 - 1 0 ; as instrument of control, 1 1 5 ( 1 . ; revocation of, 1 1 6 - 1 7 Pass-book holders, drunkenness among, 120 "Pass-book liquor," 1 1 8 ff. Pass books, number o f : in kingdom, 1 0 6 - 7 ; >n Stockholm, 1 0 3 ; in proportion to population, 1 0 7 - 8 ; regional variations in, 1 0 8 ; in proportion to sex, 1 0 9 ; in proportion to age, 1 0 9 1 0 ; in relation to consumption, 1 1 0 ff. ; increase in, n o People's restaurants, 128 ff.; 232 P e r capita consumption: during decade 1 8 2 0 - 1 8 3 0 , 9 ; beer, 1 6 3 - 6 4 ; statistics of, 191 ff.; relation to drunkenness, 195 ff.; in various countries, 2 x 6 - 1 7 P f f . See Act Regulating the Sale of Pilsner

Pilsner. See B e e r Pilsnerdricksforsáljningsfórordningen. See Act R e g u l a t i n g the Sale of Pilsner Police records on drunkenness, 100, 102, 146 Population trends, effect on liquor consumption, 107, 1 1 2 , 194 P r i c e s : wholesale, 7 4 ® . ; retail, 82 ff. ; as Axed by board of control, 81 ff. ; increase in, 84-85; in service trade, 1 4 2 - 4 3 ; of beer, 167, 173 ' Privileged rights," 16, 17 Profit quantity, 1 3 3 ff.; administration of, 1 3 4 - 3 5 ; objections to, 1 3 5 - 3 6 ; proposed change, 232 Profits: of system companies, 43 ff. ; of Vin- ti Spritcentralen, 68-69; »Jätern restaurants, 1 2 9 ; of private restaurants, 1 3 4 - 3 5 ; of beer cafés, 160 ff. Prohibition: trend toward, 2 2 ; as temporary expedient, 22-23 ; referendum on, 23, 2 2 4 ; during W a r , 29; in Finland and N o r w a y , 209; vote on, 2 2 4 ; present attitude toward, 225 Prohibitive prices: as proposed solution, 2 1 3 - 1 4 , 2 1 7 ff.; in Denmark, 2 1 7 , 2 1 9 ; objections to, 2 1 9 ff. Public a p p r o v a l , 223 ff. Public control: of system companies, 41 ; of Vin- & Spritcentralen, 6 1 , 63 Public representation: development of, 18 ff. ; in system companies, 4 1 ff. ; in Vin- & Spritcentralen, 65-66 Punsch, 72

R R a i l w a y s , service rights on, 1 2 7 Referendum on prohibition, 23, 224 " R e s t a u r a n t permits," proposal f o r , 147 Restaurants: types of, 1 2 7 - 2 8 ; private, 1 3 1 - 3 2 . See also Service trade Restricted allotments. See Allotments "Restriction sandwich," 143 Restrihtionssystemet, 194 Retail t r a d e : early distinction of, 16 ff. ; in beer, 1 5 5 . See also System companies Returns f r o m Intoxicants Fund, 189 R e v e n u e s : collected by Vin- & Spritcentralen, 7 7 ; from service trade, 1 4 6 - 4 7 ; f r o m beer, 170 ff.; total revenues, 187 ff.

INDEX Revocation of pass books, 1 1 6 - 1 7 R f f . See Sale of Intoxicants A c t Riksbank, 63, 65 Riksgaldskontoret, 67 Riktlinjer for Ny Svensk Alkohollag· sii fining, 174, 200, 2 1 5 Ronneby company, 44 ff., 1 0 5 - 6 Rosenborg, E., on deaths f r o m alcoholism, 205-6 Royal B o a r d of Control: as supervisory agency, 28 ; powers o v e r system companies, 4 2 ; relation to system companies, 50 ff. ; powers of, 51 f f . ; as price fixing agency, 81 f f . ; in relation to individual control, 87 ff.; in service trade, 1 2 3 - 2 4 , 1 3 2 - 3 3 , 1 4 2 ; meal requirement, »39 Rusdrycksförsüljningsförordningen. See Sale of Intoxicants Act Rusdrycksmedelfondrn. See from Intoxicants Fund

Returns

S S. A . R. Α., 128, 129 Sale of Intoxicants A c t : enactment of, 26; with respect to system companies, 37; Section S i x t y - T h r e e , 5 1 , 8 7 ; with respect to wholesale trade, 5 4 - 5 5 ; with r e g a r d to individual control, 86-87 ; hours of sale regulations, 1 1 8 ; with respect to service trade, 1 2 4 2 5i ' î 1 ^ 2 ; supervisors of temperance, 179 ff. Saloons, 8, 122 Schultz, Κ . : on per capita beer consumption, 1 6 3 - 6 4 ; on liquor consumption, 190, 203; on comparison of drunkenness in Copenhagen, Stockholm, Gothenburg, and M a l m ö , 222 Section Sixty-three, 5 1 , 87 Service rights, 126 Service tax, 1 3 4 Service t r a d e : scope of, 1 2 2 ; regulation by system companies, 1 2 3 , 126 f f . ; regulation by board of control, 1 2 3 2 4 ; legal regulations of, 1 2 4 - 2 5 ; profits o f , 1 3 6 ; prices in, 1 4 2 - 4 3 ; objections to, 143 ff. ; as source of drunkenness, 1 4 5 - 4 6 ; revenue f r o m 1 4 6 4 7 ; proposed reforms of, 147 ff. ; proposed changée in, 2 3 1 - 3 2 Smuggling: as an organized industry, 209; increase in, 2 0 8 - 9 ; international

243

agreement on, 2 1 0 - 1 1 ; estimated extent o f , 2 1 1 Spirits, alcoholic content of, 74 Stadsfullmäktige. See City council Steamships, service rights on, 1 2 7 , 1 5 2 Stockholders: of system companies, 4 2 43 ; of Vin- Sc Spritcentralen, 64-65 Stockholm company: pass-book regulations of, 9 5 - 9 6 ; records of, 1 0 3 - 4 ; trends in liquor allotments of, i i o f f . ; extra allotments by, 1 1 5 ; applications f o r pass books in, 1 1 6 ; regulation of system restaurants by, 1 2 9 ; meal requirement imposed by, 139, 1 4 1 - 4 2 Stockholms Allmänna Restaurantakliebolag. See S. A . R. A . Stockholm System, 27. See also B r a t t System Sub-letting of pass books, 1 1 8 - 1 9 Sundsvall System, 160 ff. Supervisors of temperance: l e g a l i z a tion of, 28, 1 7 6 ; functions of, 1 7 7 ff. ; nature of, 1 7 8 ; powers of, 1 7 9 - 8 0 ; Cooperation with system companies, i 8 o f f . ; care of alcoholics, 1 8 1 f f . ; criticism of, 184-85 ; proposed changes in, 229-30 Swedish B r e w e r s Association, 166 Swedish Medical Association, committee of, 25 Systembolag. See System companies System companies: place in B r a t t System, 3 2 ; number and distribution o f , 32 f f . ; statutory regulation of, 3 2 - 3 3 , 37 f f . ; as monopolies, 40; relation to national regulations, 4 0 ; legal nature of, 41 ; boards of directors o f , 4 1 ff. ; public nature of, 4 1 ff. ; stockholders of, 42-43 ; capitalization and disposition of profits, 43 ff. ; a d v a n tages of, 4 7 ® . ; associations of, 5 3 ; as regulative agencies, 89 ff. ; responsibility f o r temperance, 99 ff. ; imposition of meal requirement, 1 4 1 4 2 ; proposed changes in, 230 System districts, 28, 33 ; population o f , 34 ; local control in, 89 ff. ; proposed changes in, 230 System restaurants, 128-29, 2 3 2

Τ T a x a b l e breweries, 168 ff. T a x e s : excise on distilling, 7 ; collected

244

INDEX

by V i n - & S p r i t c e n t r a l e n , 7 7 ; on b e e r , 170 ff. ; total receipts f r o m , 188 T a x e x e m p t b r e w e r i e s , i68, 1 7 0 - 7 1 T e m p e r a n c e m o v e m e n t , g r o w t h o f , 11 T e m p e r a n c e p r o g r a m , n a t u r e of, 218 ff. T e m p e r a n c e societies, 1 7 8 ; m e m b e r s h i p in, 225 T h u l i n , E . J., on consumption of int o x i c a n t s , 9, 10, 218 Tidskrift for Systembolagen, 53 Tirfing, 178 T o u r i s t s , 107 T r a d i n g companies, 37; nature of, 46; p r o p o s e d e l i m i n a t i o n o f , 230 T u r n o v e r t a x , 77

u U m e á , r e g u l a t i o n s in, 90-91, 92 Uniformity, trend t o w a r d , 94, 230 ff. U p p s a l a , 46, 158, 163 Uiminutering. See R e t a i l t r a d e Uhkänkniug. See S e r v i c e t r a d e

V V a r i a t i o n in system c o m p a n y r e g u l a tions, 89 ff. ; p r o p o s e d r e m e d i e s f o r , 230 ff. V i n - & S p r i t c e n t r a l e n : o r i g i n o f , 29,

5 8 ; relation to w h o l e s a l e t r a d e , 282 9 ; p o l i c y o f , 59 ; e a r l y c r i t i c i s m o f , 6 0 ; r e o r g a n i z a t i o n o f , 6 1 ; present s t a t u s and o r g a n i z a t i o n o f , 62 ff.; c a p i t a l i z a t i o n and profits o f , 67 ff.; a c t i v i t i e s of, 6 9 - 7 0 ; control o f distilling, 69; as i m p o r t e r of liquor, 71 ff. ; prices, 7 4 - 7 7 ; r e v e n u e f r o m , 7 7 ; criticism o f , 7 8 ; in b r e w i n g ind u s t r y , 151 Vinstkvantitet. See P r o f i t q u a n t i t y V i s b y , 105

w W h o l e s a l e t r a d e : e a r l y test o f , 16 ff.; s t a t u t o r y r e g u l a t i o n o f , 548. ; mon o p o l y o f , 55 ; d e v e l o p m e n t of control in, 56 ff.; V i n - it Spritcentralen, 58 ff. ; in b e e r , 155 W i n e : c o n s u m p t i o n o f , 7 3 - 7 4 ; allotm e n t s o f , 100; m e a l r e q u i r e m e n t f o r , 124, 141 " W i n e books," 106, 1 1 2 W o m e n : as p a s s - b o o k h o l d e r s , 1 0 8 - 9 ; d r u n k e n n e s s a m o n g , 20t

Y Y o u t h s , d r u n k e n n e s s a m o n g , 198, 201-2

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