90 AGRICULTURAL DEPRESSION 



annual losses were ;^56i6. Deducting losses from 

 profits, we have over the whole 38,941 acres an average 

 annual profit of ^^852. 



In other words, 71 tenants, employing in their business 

 probably a capital of not less than ^350,000, and throw- 

 ing in their experience, skill, energy, and physical labour, 

 have only had the average annual return of ;^852 profit, 

 or about 5"25d an acre, to divide among them. This 

 result of the analysis of these accounts is still more 

 striking, when it is noted that in only four of these 

 71 accounts, does the tenant charge interest on his 

 capital, as he certainly ought to do, if his accounts are 

 to keep him going on reasonably commercial lines. If 

 the total capital of the 71 tenants is taken at ;i{^3 50,000, 

 and the capital on which interest is charged in four 

 accounts, viz. ;^3 1,800, is deducted, the interest at 4 per 

 cent, on the remaining ;^3 18,200 would be ;^i 2,730 per 

 annum, and the modest profit of ;^852 would at once 

 be converted into the heavy loss of ;!^ii,878, or an 

 average annual loss of 6s i^d per acre. It is thus seen 

 that the whole return to the tenant for interest on 

 capital employed as well as for profit has been just over 

 5d per acre, so far as these accounts throw light on this 

 problem. 



To arrive at the landlord's share a slight correction 

 must be made in the figures. 



In twelve of these accounts the rent has not been separ- 

 ^ ated from rates and taxes. These twelve accounts cover 



I J 6344 acres. But it appears from the accounts in which 

 jrents are separately stated from rates and taxes, that the 

 "average annual amount of rates and taxes has been 

 almost precisely 3s an acre. It is probable, therefore, 

 that the total average rents of ^39,530 include about 

 3s an acre on 6344 acres, which goes, not to the landlord, 

 but to rates and taxes. We have, therefore, to deduct 

 about .2^950 from the total average rents, leaving the net 

 average rent ;^38,58o, or a return of ;^i os 4fd. 



Treating, then, the whole 38,941 acres as if they 

 formed one estate, for the purposes of argument, it thus 

 appears that the share taken by the owner of the gross 



I 



