Rack-rent

“ Is it reasonable that whilst householders can obtain no rent, and have no income save the bare means of providing a scanty subsistence, they should be assessed at the rack-rent of former valuation? Can any property be more entitled to protection than that of the owners of the soil or of the dwellings they inhabit? ”

“ Upon the determination of all leases made before the year 1690, a gentleman thinks he has but indifferently improved his estate if he has only doubled his rent-roll. Farms are screwed up to a rack-rent—leases granted but for a small term of years—tenants tied down to hard conditions, and discouraged from cultivating the lands they occupy to the best advantage, by the certainty they have of their rent being raised on the expiration of their lease, proportionably to the improvements they shall make. Thus is honest industry restrained; the farmer is a slave to his landlord ”

“ Driver estimated the whole produce of 108 acres of some of the best land on the farm, at only ten shillings per acre. This was about the rent paid by Mr. Elsee to Miss Ladbrook; and this serves to p. 49prove, that even in Mr. Driver’s opinion, the land was then let at its full value; and indeed the rent was fixed by valuation by parties for Miss Ladbrook, at a period when hay was at from 6l. to 8l. a load, and was therefore a rack rent in every sense of the word.
But if the rent were doubled, and the fair allowance made, the sum due to the crown would have been only 945l. ”

“ This appears to be the record of “rack-renting” on the Coolgreany property.
There are 114 tenants, of whom 15 hold under judicial rents; 22 are leaseholders, and 77 are non-judicial yearly tenants. There are 12 Protestants holding in all a little more than 1200 acres. All the rest are Catholics, 14 of these being cottier tenants. The estate consists of 5165 acres. The average is about £24, and the average rental about £26, 10s. The gross rental is £2614, of which £1000 go to the jointure of Mr. Brooke’s mother, and £800 are absorbed by the tithe charges, half poor-rates and other taxes. ”

“ Several domains comprise a broad belt stretching from the rock-bound coast to the cones of the volcanoes. 'No doubt tenants have the traditional right of remaining on the cultivated land and receiving compensa- tion for improvements ; but the rack rents exacted by the landlords represent a large share, sometimes fully one-half, of the whole produce. Small proprietors are far from numerous, and at a change of hands the real value of their holdings is greatly reduced by the fees for sale and the other legal dues by which these small estates are encumbered. ”

“ Their returns are certain for, mark you, every tradesman pays his rent every Monday morning, there is no delay. If it be not paid the hour it is due, the landlord is empowered by law to send a bailiff to the house, to keep him there at an expense to the tenant of three shillings per day—and to request him, at the end of five days, to sell off the goods and chattels provided the demand is still unsatisfied. I know no better investment for capital, be it large or small, than that of which I speak. There are no taxes, no ground-rents, and the tenant is bound to keep his premises in repair. ”

“ FINING DOWN THE YEAR’S RENT.—When an Irish gentleman, like Sir Kit Rackrent, has lived beyond his income, and finds himself distressed for ready money, tenants obligingly offer to take his land at a rent far below the value, and to pay him a small sum of money in hand, which they call fining down the yearly rent. The temptation of this ready cash often blinds the landlord to his future interest.
[17] DRIVER.—A man who is employed to drive tenants for rent; that is, to drive the cattle belonging to tenants to pound. The office of driver is by no means a sinecure. ”

“ Rents must be all paid up to the day, and afore; no allowance for improving tenants, no consideration for those who had built upon their farms: no sooner was a lease out, but the land was advertised to the highest bidder; all the old tenants turned out, when they spent their substance in the hope and trust of a renewal from the landlord. All was now let at the highest penny to a parcel of poor wretches, who meant to run away, and did so, after taking two crops out of the ground. Then fining down the year’s rent came into fashion [16] —anything for the ready penny ”

“ Who Bears the Cost?—The landlord is supposed to make the needful outlay in buildings, but in reality he seldom does so. When the outlay is made a rent-charge to be paid by the tenant, it is assumed to be paid by the land. The land, however, is frequently over-rented before the outlay is made, and practically in such cases to charge the tenant interest on the expenditure is to saddle him with the entire outlay. ”

“ We know of a lot of twenty acres, mostly hill, well situated, contiguous to the town, and under cultivation; there is likewise a substantial dwelling-house, in a commanding situation, which, from its original cost, could not be rented under forty dollars a month, at least: this sum, in twelve months, amounts to four hundred and [198] eighty dollars; but the quit-rent, if a permanent lease be taken out, would be two hundred dollars a year, which leaves two hundred and eighty dollars only to pay the interest of the money originally spent on the property, exclusive of other charges. ”

“ It does not follow, however, that the merchant has nothing to do with the payment of the rent. Everywhere, without any exception, rents are paid only once a year, at on about Martinmas. It was a frequent practice, when the rent day arrived before the tenants had received their money for fish, that they should get 'lines' from the curer, the stated sums in which were placed to their credit by the landlord. ”

“ If a tenant has to be evicted for a demand of £10, will he be able to live in comfort if he pay only £8? Shall one tenant live in comfort on a farm, the rent of which has been reduced him from £100 to £80, and another, the reduction having been from £20 to £16? ”

“ In the first place, the real incidence of the burden is determined in the long run only. The tenant of agricultural land may indeed enter into a lease like the tenant of urban land; and, like him, he may be unable to modify the terms of his lease so as to throw on the landlord the weight of any fresh burden, which may, contrary to his reasonable expectations, be levied. ”

“ As for a quarter-sale, I can see no more hardship in it than there is in paying the rent itself; and, by giving the landlord this check on the transfer of his lands, he compels a compromise that maintains what is just. The tenant is not obliged to sell, and he makes his conditions accordingly, when he has a good tenant to offer in his stead. When he offers a bad tenant, he ought to pay for it. ”

“ Taught by past experience, no landlord is now willing, without the assurance of an adequate rent, to alienate his property for any considerable length of time; and without lease of acre endurance, no tenant is disposed to embark his capital and skill in the adventure of cultivation. In Grain, as a measure of value, a medium has, at length, been found, which, while it preserves the just rights of the one, secures a return for the honest industry of the other. ”

“ It is assumed that, if wages or profits fell below the points, which, on a comparison of the advantages and drawbacks, pecuniary and other, of farming and other occupations, are considered to be normal in the farming industry, some labourers and farmers would seek some more advantageous employment, and that, if they rose above, some fresh competitors would enter the ranks of agriculture. It is assumed that landlord and tenant are actuated by competitive considerations alone, the one trying to obtain the highest and the other the lowest rent. ”

“ The tenants have all been told that they are at perfect liberty to fish to whom they like; but after they have engaged to fish to a certain curer, we wish them to bring a guarantee from their curer or curers for the rent of the year on which they have entered, and during which they are to fish. One reason for that-in fact the only reason-is, that the men do not get money payments, and therefore a great number of them will be induced to run a heavy account at the shop, and when we collect the rents at Martinmas we would have nothing to get. ”

“ But this did not make him less clear that a ground landlord has "a perfect right" to raise the rent when he sees that the tenant is succeeding in business. If he knows that a certain piece of land has become of increased value to the tenant, he has the perfect right to take the full advantage of this circumstance—as much right as the owner of a Derby winner has to ask a higher price for his horse after he has won the Derby than he would have asked before. ”

“ The tenant will be well aware that if that machinery does not exist, it must be provided by means of an understanding with the landlord, necessarily involving some cost for himself: if he finds it on the ground and at work, he will set down in his calculation an increased estimate of produce without any debit against rent for cost of construction—he will feel that he is hiring a more powerful machine. ”

“ But although in such instances the price of tenant right is a deceptive test, the movement, when it is a general one, is a clear proof that the reduction of rent did not represent an equivalent decline in the marketable value of the land, but was simply a gratuitous transfer, by the State, of property from one person to another. Having in the first place turned the exclusive ownership of the landlord into a simple partnership, the tribunal proceeded, in defiance of all equity, to throw the whole burden of the agricultural depression on one of the two partners. ”

“ It would not be difficult to show that they are not in conflict, but rather in harmony, with the theory of rent in making such a provision; for the tenants have sunk capital in the cultivation of land, which they cannot withdraw and offer for sale in the best market.
Again, the theory of rent assumes that tenants cultivate with a single eye to the sale of the produce in the market; for it is only by starting with the conditions determining the selling-price that we arrive at the establishment of differential advantages enjoyed by different producers, and the consequent existence of rent. ”

“ This hue and cry about renting has no terrors for those who have been renters and have found that this is often the most satisfactory way to start when capital is limited. The merchant of limited means invariably rents the building in which he does business, because it is safer and usually more economical to rent than to purchase the business block. ”

“ If the liquidator has retained possession for the purposes of the winding up, or if he has used the property for carrying on the company's business, or has kept the property in order to sell it, or to do the best he can with it, the landlord will be allowed to distrain for rent which has become due since the winding up. ”

“ And, on many estates—many of the largest estates in the country—it is a very common practice for the tenant to be required to draw all the materials for new buildings at his own cost. He has to do this very often, and in addition pay the rent-charge to redeem the actual expenditure. Now the horses and regular staff on a farm are generally just sufficient for the regular tillage operations of the farm, and if this haulage of material is undertaken, that work must suffer. ”

“ The loss by cropping, of this value, is the just basis of rent, which leaves no proportion of purchase title to the tenant during one or a few seasons who does not manure or repair fences. The tenant who does this, and thus reproduces the original value, justly enters into proprietorship, and his rentals ought to be regarded as instalments of purchase-money. There lies the practical difference.
It is necessary to face the facts, and to avoid confusion by abstract terminology. There is just rent, and there is unjust rent, or the legal abuse of the rental system. ”

“ When the owner has gone south, and parties here hold liens on the property and are collecting the rents to satisfy their liens?
Answer. The rent of a house can only be mortgaged to a person in possession. If a loyal tenant be in possession and claim the rent from himself as due to himself on some other debt, allow it; but, if not in actual possession of the property, rents are not good liens for a debt, but must be paid to the quartermaster. ”

“ His income cannot be concealed, and it is returned by others than himself. The farmer or tenant, who has no interest in the matter, returns his landlord's rent. The trader, shopkeeper, or merchant estimates and returns his own income. The possessions of the first, and their annual rental, are universally known, and concealment as to them is impossible or sure of detection; the gains of the last are entirely secret, and wrapped up, even to the owner, in books or accounts, generally unintelligible in all cases but those of considerable merchants—to all but the persons who prepared them. ”

“ Whatever be the price asked, be it high or be it low, the buyer by giving or refusing it decrees whether a commercial transaction shall be carried out. It is not the landlord but the tenant who will in the last resort determine what the rent shall be. The landlord may select amongst competing farmers the man who will pay the highest rent; still it will be the judgment of that tenant that will decide at last, not only what the amount of the rent shall be, but even whether the farm shall be let at all. ”