The people at once made considerable use of their newly acquired powers. There had been over 33,000 distilleries in 1853; the same year as the Act passed they were reduced to between 3000 and 4000. The greater number of country districts elected to go under complete prohibition; and whereas formerly spirits could be bought in nearly every peasant's house, there were now in the country districts less than 600 retail licences. The wholesale trade was not dealt with by the law. There were no two opinions as to the beneficial effects of the new measure in the country; but it was found that the towns did not share equally in these benefits. It had been considered inadvisable to extend the option of prohibition to towns, and before long the great mass of public-houses became centred in urban districts. In 1856, though the towns contained only twelve per cent. of the people, three-quarters of the total public-houses were to be found in them, and eight townsmen were convicted of drunkenness to every one countryman. The knowledge of these facts stirred the authorities up to see if nothing more could be done. In 1865 the Municipal Council of Gothenburg appointed a committee to inquire into the causes of pauperism. The committee reported that, "The worst enemy of the morals and well-being of the working classes in this community is brandy. Yet it is not the intoxicating liquor only and its moderate consumption which cause demoralisation and poverty; it is the disorder, evil example, temptations, and opportunities for every kind of iniquity with which public-house life abounds, that contribute mainly to this unhappy state of things. Neither local enactments nor police surveillance can do much so long as public-houses are in the hands of private individuals, who find their profit in encouraging intemperance, without regard for age or youth, rich or poor."[8] The committee recommended that the trade should be taken out of the control of the publicans, and managed by a company for the good of the community. A philanthropic company was formed, in consequence of this report, by a score of the leading inhabitants of the place, for the purpose of taking over the trade. It was specially stipulated that neither shareholders nor managers should be pecuniarily interested in pushing the sales, and the company was to receive no profits except 6 per cent. on the paid-up capital, all receipts beyond this going to the town treasury. The amount of paid-up capital required has been under L7000.