The Gazette 1910-11

DECEMBER, 1910]

The Gazette of the Incorporated Law Society of Ireland.

161

landlords or vendors who had sold. The Act provided that at the option of the Vendor, instead of cash being paid, advances should be made in whole or in part by means of Land Stock, Guaranteed 2f per cent. Stock, and that this Stock should be issued at the rate of £92 for an amount of Stock of the nominal value of £100; and as regards future vendors who come in under the 1909 Act, they are to be paid all in Land Stock bearing 3 per cent. The rate of bonus, too, was materially varied and other alterations, such as the well-known " Priority Register," introduced. What has been the result ? In this Hall on former occasions various speakers pointed out the danger of inter fering with the then existing Act under which sales had been facilitated, and unfortunately the prophetic views then presented have proved to be only too true. It had been shown from time to time that the reason for passing the Wyndham Act of 1903 was because previous land purchase Acts had failed to attain their object, namely, to promote negotiations for land sales ; and now with the new Act what do we find ? Purchase negotiations increased ? On the contrary, they are practically killed. We are all painfully cognisant of the fact that sales are not at all what they used to be; we all know that owing to regulations issued and lists of priorities for various cases being established in the department, instead of sales of estates brought into the department years ago being expedited, they .have as a result been blocked. We are quite aware that facilities have been given to owners to accept the purchase price of estates in Stock in the place of cash ; but Land Stock to-day is quoted in the Public Stock Exchange Market value per hundred for about £81 cash, and who can blame owners if they hesitate to accept payment in such a depreciated security when they know that their incum- brancers have to be paid in hard cash. Acceptance of Stock by vendors who sold under the Act of 1903 means in effect a loss of the bonus of 12 per cent., for that is, speaking broadly, the rate of loss in a sale of Land Stock at the present time. What is the effect ? A complete block. It looks very like a want of good faith with vendors and tenants when those who entered into agreements for sale with bona fide intentions

in the years 1905, 1906 and 1907 find them selves postponed almost indefinitely before they can calculate on receiving the purchase money of their estates and discharging their liabilities. Meantime, as to the tenant purchasers, they are kept out of their owner ship because their holdings are not vested, and have to pay interest instead of instal ments of purchase money. A few figures to illustrate the situation will prove interesting. Under the various facilities provided by the Wyndham Act about a quarter of a million of Irish tenants have purchased or agreed to purchase their holdings, and down to October, 1909, the amount agreed on as the purchase price was 73J millions sterling— six years' work, or on an average of over 12 millions a year. This proves, the popularity and workability of the Act of 1903. Now look at the other side of the picture. According to the returns the first six months' working of the Act of 1909, under which vendors are to be paid in 3 per cent. Land Stock with a varied scale of bonus, and purchase rates of annuity are increased, we find that but 352 tenants agreed to buy, and the gross total purchase money was only £106,000. Can anything more be required to show that the new Act does not commend itself to vendors or purchasers, and is to a large extent not fulfilling the objects of its framer ? The results must be most dis appointing. The arrears of estates under the 1903 Act are appalling. According to a state ment of Mr. Birrel'l on the 8th March last the amount waiting to be paid in in respect of direct sales to tenants was 47 millions ; in respect of sales to the Estates Commissioners, 4 millions, as well as a considerable sum in respect of sales to the Congested Districts Board. Think what all this means to the country at large. Realise the unsettlement and uncertainty, to say nothing of the direct hardships which necessarily follow to the parties directly concerned—hundreds and hundreds of vendors, tens of thousands of tenants. These people agreed to sell and purchase on the faith of distinct parliamentary under takings. Surely there should be some means devised by the Treasury to relieve the situation ? Apparently payment in a heavily