ON THE VALUE OF REVERSIONS. 235 



mined with sufficient accuracy by finding the values of 

 insurances on the lives in possession, on condition of the 

 lessor surviving. But when the lessor is young, I am 

 not aware of any rule to which I would trust, as making 

 as good an approximation to the value of his life interest 

 as can be made in other cases. Each case must be deter- 

 mined by its own details ; and it will always be safe to 

 begin by calculating what we may call the mean value,, 

 namely, the annuity first mentioned; which may, for 

 any thing I see to the contrary, be a perfectly correct 

 mode of proceeding in all cases. 



QUESTION. If the lessor should refuse to renew, and 

 if it be pretty certain that his successor will adopt the 

 same course, what is the present value of the tenant's 

 interest ? 



Evidently the clear annual value of the estate, con- 

 sidered as an annuity upon the longest of the three lives, 

 the value of which is determined in page 208. 



This awkward contrivance for limiting the rights of 

 corporators over property is prejudicial in its effects, both 

 upon the tenants and the lessors. The former, holding 

 an interest of a comparatively precarious character, have 

 not the same inducement to improve their property which 

 is felt by leaseholders for fixed terms of years. On 

 the other hand, the lessor, in all cases in which he has a 

 personal interest in the proceeds of the estate, has two 

 distinct periods of temptation to an act of equivocal 

 morality. If he be young, he may, as it is called, run 

 his life against those in possession ; that is, refuse all 

 renewals, upon the prospect of a large ultimate gain 

 from the falling in of the old leases : if he be old, he 

 may induce the tenants, by offering easy terms, to change 

 their old lives for young ones, thus impoverishing the 

 successor, by leaving him nothing but long leases, or 

 leases on young lives. 



It must very often be a question for the lessee, 

 whether it would not be his wisest plan to refuse all 

 renewal, and to insure a certain sum upon the last sur- 

 vivor of the three lives by which he now holds. The 



