CORRESPONDENCE.
THE AGRICULTuRAL LANDOWNERS AND SITE VALUE.
[To THE EDITOR OF THE "SPECTATOR:1 SIR,—I am an agricultural landowner. I live on the estate and manage it to the best of my ability. The accounts are carefully kept and checked by an independent accountant. Now what do the results show ? (1) Taking the price that /and has been lately selling at in our district, the net return of the estate shows a 2 per cent, return on the capital value of the estate, and this on an estate that is specially favoured as regards natural quality of land, cultivation, con- ditions of houses and buildings above the average, ample water supply laid on to every house and cottage, and an easy access to excellent inland markets. (2) Let me put these returns in another way. If all the money that has been spent by the landowners on the estate were to be capitalized at 4 per cent., this interest would cover the net rent roll of the estate. The tenants therefore are paying as rent 4 per cent. on the money spent by the landowners in the cost of building, renewals and repairs, and improvements of farmhouses, cottages for housing labourers, outbuildings for housing stock, drainage, fences, roads, water supply, and they are paying nothing for the land that they are farming.
To show that this financial position is not exceptional to the estate. Lately an able correspondent of the Times in asking a tour through England stated that instead of a 4 per .vnt. return, as I estimate it to be, it amounts to only 31 per *nt., and he considers this to be the average return through- ant England. Out of every 2100 rent that I receive I pay away between £30 and PAO in taxation, tithes, improvements, and repairs. I have consulted many land agents on this point, and they all tell me that I am managing the estate on economical lines.
Practically the largest proportion of the rent that landowners receive from their estates is spent in the employment of labour and in dealings with the local tradesmen. If a small pro- portion of the rents is spent elsewhere it is spent in com- modities that employ labour in other parts of the country. And yet by a certain school of politicians we are held up to abuse, and we are now threatened with increased taxation under the strange system of taxation of "site values." That is, extra taxation is to be levied on the capital value of the land after all improvements have been deducted. The greater portion of the land in this country is valueless unless capital is laid out on it.
Let me give an illustration. In proportion to the size of the estate, there is too large an area under wood. In order to reduce the expense of fencing and to have a little more money to spend on improvements, I am clearing a certain area. I am prepared to let this cleared area at any rental it will fetch- 5s., 2s. 6d. per acre. I have received no bids, and I shall get no bids for this reason. People say to me, "I cannot live on the ground; I cannot in this climate camp out;'and I have not sufficient capital to put up the necessary house, outbuildings, and to drain and fence it, and to make decent approaches. Won't you do it for me' P" "Yes," I reply, "if you will pay me as rent 5 per cent, on my outlay." Well, how does this work out ? There will be some twenty acres of cleared land. House, outbuildings, drainage, fences, roads, would cost at least £500. Five per cent, yearly interest on this £500 outlay would amount to 25s. per acre. I should like to take any practical farmer to this land (excellent quality of land) and ask him if any farmer that ever lived, or hoped to live, could pay this rent and the taxes and make anything for himself over and above it. If I were to ask such a rent I should be called a "rack-renting criminal," using my position to get all I could out of a poor, hard-working man. After the land is finally cleared it will probably be thrown into the adjoining farms at a mere acknowledgment rent.
What then becomes of the "site value "and the disgraceful political lie "that we landowners have robbed the people of their heritage "? Also that other disgraceful cry, "Free the land of feudal tyranny" ? Feudal tyranny indeed! Why, there is no man so free as the tenant farmer. If he pays his rent and farms decently no landowner or agent thinks of inter- fering with him ; he is as secure in his farm as if it were his own possession. In our district I don't remember hearing of a single authentic case of a tenant being disturbed or having his rent raised on his improvements. In my opinion what is depopulating the country districts and congesting the centres more than any other factor is the want of more decent cottages at a rental that the people can afford to pay, and which will show a 5 per cent, return on the capital expended.—I am,
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