The Gazette 1912-13

[MARCH, 1913

The Gazette of the Incorporated Law Society of Ireland.

102

introduce at an early date—extending the range of investments. It is thought that it ma}' be helpful to Vendors, whose Trustees are now receiving. or will shortly, receive the purchase money of the estates sold, to give some examples of how such purchase moneys can be invested, during the present state of the money market, so as to produce 4j: per cent., 4i per cent., 4f per cent., and even a higher rate of interest. In this connection it is right to point out that, since the decision of Barton, J., in Lord Bandon's Trust, the Redemption Price of a settled head rent may be invested in the securities authorised by Section 38 of the Irish Land Act, 1909 ; so that the tenant for life of a head rent, which has been redeemed, may get the same high rate of interest on the redemption money as the ordinary tenant for life of a settled estate can get on his residue of purchase money. The following groups of investments have been carefully considered, and consist of securities that have been already sanctioned by the Public Trustee. Care has been taken to geographically distribute the total amount invested under each group, so that only a comparatively small portion of the sum invested will be in any particular country. Thus the possibility of depreciation, owing to local influences, will be minimised and the principal kept intact and be available, as far as possible, when the time comes for the distribution of the funds. EXAMPLE A. Showing an Average Return of £4 5s. [)d. per cent. Return per cent. 1. Japanese Govt. 4i% Stg. Loan, 1st Series, at 92" ... ...£417 9 2. Northern Pacific Gt. Northern 4% Joint Bonds (C.B. & 2). at 100 ... ... ... 4 0 0 3. New York Central and Hudson

Dates of Examinations. THE following are the dates of the May, 1913, Examinations :— Final—19, 20 and 21 May (Notices to be lodged on or before 21st April). Preliminary—22 and 23 May (Notices to be lodged on or before 23rd April). Memorandum and Suggestions as to Invest ment of Purchase Money of Settled Land Sold under the Land Purchase Acts. Contributed by a Member oj the Society. VENDORS of estates, who are tenants for life, may not be fully aware of the large range of investments that have been opened up under Section 38 of the Irish Land Act, 1909. That Section provides that, witli the consent of the Public Trustee, the purchase money of Settled Land may be invested in :— (1) Stocks, funds or Government securities of any foreign Government or State. (2) Mortgages, Bonds, Debentures or

Debenture Stock charged upon the undertaking of any Railway Co. in— (a) The United States ; (b) Mexico ; (c) The Argentine Republic ; (d) Canada ; subject to certain conditions as to payment of Dividends on the Pre ference or Ordinary Stocks of such Railways.

The Public Trustee has from time to time published Lists of Investments that have been sanctioned by him under Section 38. These Lists are sometimes criticised owing to the fact that " Trustee securities " are not included in the lists, and that many securities are omitted which seem much more desirable than those found in the lists published by the Public Trustee. The answer to the criticism is a simple one : The Public Trustee was not appointed for the purpose of sanctioning investment in securities in which Trustees had already full power of investing, and, again, he can only sanction such investments as the framers of the Irish Land Act, 1909, authorised him to sanction. It may be wise to ask for the insertion of a clause in the new Land Bill—which the Chief Secretary for Iiieand has promised to

River R. R. (Michigan Cent. Coll.) 3| 1998 Bonds, at 80 ... 4. Argentine Gt. Western Rly. 4% 1st Deb. Stock, at 96 ... 5. Canadian Pacific Rly. 4% Deb. Stock, at 100 ... ...

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4

AVERAGE—£4 5s. 9d. per cent.