rental; to find the net rental, the Land Commission deduct from this gross rental outgoings estimated at about 20 per cent., or £240 a year. This makes the net rental £960 a year, and the price payable to the landlord is £19,200 (twenty years' purchase of £960, or £960 multiplied by 20), which, as above stated, will be paid in consols. The tenants will pay, as the maximum amount for their holdings, £4 per cent. for forty-nine years on the capitalized value of twenty years' purchase of the gross rent. This will amount to £960 instead of £1,200, which they have hitherto paid; a saving of £240 a year will thus be effected, from which, however, must be deducted the half rates to which they will become liable, formerly paid by the landlord. This £4 per cent. charge payable by the tenants will continue for forty-nine years, but at the end of that time each tenant will become a free owner of his estate without any annual payment. Next, as to the position of the State Authority. The State Authority receives £960 from the tenants; it pays out of that sum £4 per cent., not upon the gross rental, but upon the net rental capitalized, that is to say, £768 to the Imperial Exchequer. The State Authority, therefore, receives,£960, and assuming that the charge of collecting the rental is 2 per cent., that is to say, £19 4s., the State Authority will, out of £960, have to disburse only £787 4s., leaving it a gainer of £172 16s., or nearly 18 per cent. The result then between the several parties is, the landlord receives £19,200; the tenantry pay £240 a year less than they have hitherto paid, and at the end of forty-nine years are exempt altogether from payment; the gain of Irish State Authority is £172 16s. a year. Another mode of putting the case shortly is as follows: The English Exchequer lends the money to the Irish State Authority at 3-1/8 per cent. and an annuity of 4 per cent. paid during forty-nine years will, as has been stated above, repay both principal and interest for every £100 lent at 3-1/8 per cent.
On the sale of an estate under the Bill, the landlord receives twenty years' purchase; the tenant pays £4 per cent. on twenty years' purchase of the gross rental; the Irish State Authority receives £4 per cent. on the gross rental; the English Exchequer receives 4 per cent. on the net rental only. The repayment of the interest due by the Irish Authority to the English Exchequer is in no wise dependent on the punctual payment of their annuities by the Irish tenants, nor does the English Government in any way figure as the landlord or creditor of the Irish tenants. The annuities payable by the tenants are due to the Irish Government, and collected by them, while the interest due to the English Government is a charge on the whole of the Irish Government funds; and further, these funds themselves are paid into the hands of the Imperial officer, whose duty it is to liquidate the debt due to his master, the Imperial Exchequer, before a sixpence can be touched by the Irish Government. It is not, then, any exaggeration to say that the Land Purchase Bill of 1886 provides for the settlement of the Irish Land question without any appreciable risk to the English Exchequer, and with the advantage of securing a fair price for the landlord, a diminution of annual payments to the tenant with the ultimate acquisition of the fee simple, also a gain of no inconsiderable sum to the Irish Exchequer. In order to obviate the difficulties attending the investigation of title and transfer of the property, the Bill provides, as stated above, that on the completion of the agreement for the sale between the landlord and the Commission, the holding shall vest at once in the tenants: it then proceeds to declare that the claims of all persons interested in the land shall attach to the purchase-money in the same manner as though it were land. The duty of ascertaining these claims and distributing the purchase-money is vested in the Land Commission, who undertake the task in exchange for the 1 per cent. which
they have, as above stated, deducted from the purchase-money as the cost of conducting the complete transfer of the estate from the landlord to the tenants. The difficulty of the process of dealing with the purchase-money depends, of course, on the intricacy of the title. If the vendor is the sole unencumbered owner, he is put in immediate possession of the stock constituting the price of the estate. If there are encumbrances, as is usually the case, they are paid off by the Land Commission. Capital sums are paid in full; jointures and other life charges are valued according to the usual tables. Drainage and other temporary charges are estimated at their present value, permanent rent-charges are valued by agreement, or in case of disagreement, by the Land Commission; a certain minimum number of years' purchase being assigned by the Bill to any permanent rent-charge which amounts only to one-fifth part of the rental of the estate on which it is charged, this provision being made to prevent injustice being done to the holders of rent-charges which are amply secured.
It remains to notice certain other points of some importance. The landlord entitled to require the State to purchase his property is the immediate landlord, that is to say, the person entitled to the receipt of the rent of the estate; no encumbrancer can avail himself of the privilege, the reason being that the Bill is intended to assist solvent landlords, and not to create a new Encumbered Estates Court. The landlord may sell this privilege, and possibly by means of this power of sale may be able to put pressure on his encumbrancers to reduce their claims in order to obtain immediate payment. The Land Commission, in their character of quasi-arbitrators between the landlord and the Irish State Authority, have ample powers given to enable them to do justice. If the statutory price, as settled according to the Act, is too low, they may raise it to twenty-two years' purchase instead of twenty years' purchase. If it is
too high, they may refuse to buy unless the landlord will reduce it to a proper price. In the congested districts scheduled in the Bill the land, on a sale, passes to the Irish State Authority, as landlords, and not to the tenants; the reason being that it is considered that the tenants would be worsened, rather than bettered, by having their small plots vested in them in fee simple. For the same cause it is provided that in any part of Ireland tenants of holdings under £4 a year may object to become the owners of their holdings, which will thereupon vest, on a sale, in the Irish State Authority. Lastly, the opportunity is taken of establishing a registry of title in respect of all property dealt with under the Bill. The result of such a registry would be that any property entered therein would ever thereafter be capable of being transferred with the same facility, and at as little expense, as stock in the public funds.
FOOTNOTES:
[14] Any charge in excess of one million was to be borne by Imperial Exchequer.