constitutes a good licensing system, and have established in our own minds, certain definite principles which should govern the conduct of the retail trade. Of course, the local application of these principles involves many perplexing and complex problems, which will take time to work out, and will undoubtedly involve some serious sacrifices.

In this connection I want to bespeak your active interest and cooperation in the work of the Co-operative Committee of the Licensed Trade Engaged in the Manufacture and Sale of Alcoholic Liquors, which is endeavoring to build up the local retail organizations, so that every reputable man in the saloon trade may be enrolled as a member of his local Organization. One of the main objects of this movement is to bring the reputable men in the retail business together, so that their opinions may be made potent in correcting any of the abuses that have crept into the business.

The Co-operative Committee, representing the national organizations of the Brewers, the Wholesalers, and the Retailers, have agreed that licenses should be issued in response to a normal demand for them, and that the artificial stimulation of business by any branch of the trade is undesirable. The Committee also advocates the absolute suppression of any connection of any licensed premises with any disorderly house or gambling establishment, and urges the trade to refuse to sell to "speak-easies," or other illicit vendors.

Perhaps the most important and far-reaching suggestion made by the Co-operative Committee is, that the trade should encourage the establishment of public family resorts in which all kinds of refreshments shall be dispensed, and in which the sale of alcoholic beverages shall be no more emphasized than any other beverages, conforming to the type of continental beer hall and restaurant, familiar to the American traveler. In the French restaurant or the German beer garden, one sees whole families sitting together at a table, sipping their beer, their diluted wine or their coffee, enjoying good music, eating their simple fare and talking together in peace and harmony.

In England a body of noted men have organized what is known as the Public House Trust, which is dealing with the temperance and licensing problems upon common sense business lines. Their

standpoint is that the Licensed House is a practical necessity, and that it ought always to be a place to which all classes and all the people can resort without reproach. This organization has secured the control of some 300 Licensed Houses, where during the past ten years it has been computed that more than 11,000,000 persons have been served, and not a single prosecution for drunkenness or any other evil has resulted. The system assumes the indispensability of the Licensed House in some shape or form for the purpose of reasonable refreshment, rest, recreation, and social intercourse. These places sell all kinds of beverages, and all the houses contain rooms which are set apart for the service of meals.

The last Annual Report of the People's Institute of New York has a valuable chapter on Commercial Recreation, in which it is shown that "the saloon is the only form of commercialized amusement which unites the individual with the community." The Trustees of the People's Institute state that "even in the handling of the saloon problem, the Institute has urged the value of constructive rather than repressive measures, the abolition of statutory prohibition, the principle of home rule, and the adoption of a system of discriminating license, in order to encourage the sale of light beverages."

At a recent meeting of the British Society of Medical Officers of Health, Dr. William Robertson, a well-known sanitarian, laid stress upon the need of housing reforms as being fundamental to improvement in the health of the people. The Public House is the second of the evils which Dr. Robertson would correct. He is not advocating prohibition, but the proper regulation of alcohol. He instances the Germans, from whom, he says, it is possible to learn much. "The Germans are very far from abstainers, in fact their capacity for certain alcoholic drinks is a by-word and their consumption of them enormous, but the sensible regulation of drinking robs the public house of its iniquities."

It may be that some of these suggestions will strike you as being a veritable counsel of perfection. I bring them to your attention, however, because it is important that we should be absolutely open-minded in the consideration of these problems, and that recognizing the trend of the times, we should lend our best individual and united efforts to the furtherance of any practical reforms

and the betterment of existing conditions. I am aware of the excellent work that has already been done by the National Retail Liquor Dealers' Association, and by a number of State and local bodies of retailers in my State of Pennsylvania, in the New England States, in Wisconsin, Texas, Ohio and other parts of the country, and I am not belittling for a moment the work that has been taken in hand by a number of our State and local Brewing Associations. For the same reason that every reputable saloonkeeper should be enrolled in the ranks of his organization, it is necessary that the brewers should stand shoulder to shoulder in their local, their State, and their national organizations, for the development of this work. I appeal to you to make it your personal business to see that such reforms are undertaken and carried out, and to accept willingly your own share in the loss that these reforms may, and will necessarily, involve-temporary though they may be both because in the long run they will inure to your benefit, and most of all because they are putting the industry on all fours with the welfare of the community.

Before closing I want to say a word of praise for the enthusiasm displayed by the Heads of all Departments of our Organization in furthering the work in hand. The Chairmen of Standing Committees have been indefatigable in their labor and service in accomplishing the result desired to be obtained. It has been a source of pride and gratification to me to be associated with such willing, conscientious and efficient collaborators, determined to win for their Association a place in the Commercial World, for comprehensive, constructive effort and a high standard of business ethics.

REPORT OF BOARD OF TRUSTEES

THE DECREASE IN BEER SALES

In common with all industries that have not been helped by warorders, the brewing trade has suffered considerable depreciation during the past year. The loss in beer sales for the twelve months ending June 30th, 1915-which constitutes the fiscal year of the Federal Government-amounted to 6,358,744 barrels, or nearly 10