The American issue. [volume] (Westerville, Ohio) 1912-19??, 1929-09-01
LICENSE INSURANCE IN ENGLAND
Saloon Licenses Have Property
Value in ENGLAND

The Eastern Underwater an insurance
journal published in New Jersey, in the
issue OF July 5, gives an interesting ac-
count of Liquor license insurance" in
Great Britain. Liquor licenses in Great
Britain possess property value just the
same as mans house and lot in this
country. Liquor licenses in the United
States were never recognized as possess
ing property value. They were nothing
more nor less than a special privilege
granted for consideration and to be
terminated at the will and pleasure of the
state. Several attempts were made by
the liquor interests to enact legislation
that would give the licenses vested prop
erty rights. Had they been successful it
would have been necessary to compensate
the holders of these licenses whenever
prohibition became operative
The Eastern Underwater tells us:
In the United Kingdom the Licenses &
General Insurance Co, Ltd, of London.
England, transact, in addition to fire and
casualty business, class of insurance in
vented by the company known as license
insurance This company carries prac-
tically all the drink license insurance OF
the nation and employs on its staff tho
country's leading experts in the licensing
laws dealing with the sale of intoxicatin.
liquor.
AS licenses in Great Britain are
limited in number-almost restricted to
those already in eXistence-they have at
tanned considerable values. Unlike the
goodwill of any other business, which is
worth comparatively little, the goodwill
or license of licensed house, being sup
ported by the force of monopoly is gen
orally more valuable than the freehold of
the property to which it is attached.
Usually the value of license of hotel is
worth several times the cost of the buid-
ing for which it has been granted"
The story then tells how the brewers
now own nearly all the hotels and inns;
free houses" having almost entirely dis
appeared. Big brewers have amalgamated
with small brewers partly as means of
defense against the trend of prohibition.
The story continues, Owners, lease hold
ers, mortgages, brewery share ana de-
benture holders, and tenants stake their
money in the continuity of licenses. This
is at the discretion of the magistrates
whose decisions are governed by the evil
dence brought before them every year, as
to the suitability of each house and the
manner in which the business has been
conducted.
License insurance removes this uncer-
tainty It enables the full value of
licenses to be given effect to in financial
transactions, and capitalists to invest their
money safely to their own advantage and
that OF the licensed trade. Brewers
and others who hold licensed property on
lease find this class of insurance of spe-
cial value in protecting them in event of
claims, by superior landlords for compen-
sation owing to loss of license" The
writer sights number of cases showing
the wisdom of license holders carrying
this class of insurance.
zone insured had license covered
for $4,000 On application for transfer it
was discovered that the outgoing tenant
had at some previous time been convicted
of theft. The license was at once
forfeited, without any possibility of an
appeal, the house being, in fact, closed
from the moment of discovery The
insurance company set themselves def
nitely to the task of saving the house in
some way. After about years pro-
tracted negotiations they succeeded in
obtaining new license on payment of
monopoly value. The hotel was reopened
nearly twelve months after its closing
down.
Another interesting case was valu-
able house of another firm of brewers
insured value $30,000-which was closed
down on forfeiture by conviction In
Difference to the wishes of the brewers.
who were anxious not to jeopardize their
other interests in the town, the insurers
allowed this to go without appeal and