The Sun.
London, England, 1837-04-21 00:00:00

COMMISSION OF EXCISE ENQUIRY.

AUCTIONS.
14th of August, 1834.
Mr. AI.RXANDETZ RAINY called in, and examined.

You have been an auctioneer and agent in general business
for some years, and you are therefore acquainted with the ex-
cise laws and regulations affecting your business as an auc-
tioneer ?
Yes.
Which of the branches is it you are chiefly enEst;ed in ?
Chiefly real property.
Hav© you any suggestion to make with reference to the ex-
cise regulations and duties?
I beg to submit to the consideration of the Commissioners
the expediency of abandoning the present auction duty of 7d.
in the pound on estates and other property transferred by deed
or writing, and taking it in another mode, if the state of the
revenue will not admit of relinquishing it altogether; it has al-
ways appeared to me to be an unequal, oppressive, and impoli-
tic tax. Property may be sold by private contract (the stamp
duty upon the conveyance being equal in both cases) without
any duty hunching ! whereas, if any distinction is to exist,
it should be In favour of auctions, for, independently of
this duty, the GovernmentAerive a duty from advertisements,
and also upon paper, for the particulars of sale, from which
most transfers by private contract are free. Again, a consi-
derable portion of the venders who resort to the public market,
have charges upon their estates, and may be compelled by
circumstances to sell ; and it seems unfair that they should be
exposed to a tax of 7d. in the pound, whilst other vendors
differently placed arc exempt. It is also a tax which the
Government cannot be certain of collecting ; because, an
estate may be put up with an understanding that it shall be
bought in, and then the tax is not payable, although the
estate may be sold immediately afterwards by private con-
tract. What I have therefore to propose is, that the tax
should be entirely abolished ; and if the amount of revenue
at present received cannot be dispensed with, that there should
be an additional ad valorem of one per cent. upon all trans-
fers of real property conveyed by deed or written instrument,
whether sold by auction or private contract, which the Go-
vernment would be certain of realizing, because the convey-
ance would nut be valid without a proper stamp ; and I con-
ceive that the proposed additional duty of one per cent., riding
over the whole mass of property so tranferred, would more
than reimburse the Government from any loss they might sus-
tain by giving up this portion of the auction duty, besides
placing all vendors and purchasers of real property on an equal
jooltny.

In point of fact, are not very few large estates sold by auc-
ion ?

Many that are put up by auction are bought in and many
sold, but the duty operates as a fetter upon the market, whereas
everything which can tend to give elasticity to it (and which
would I presume, result from removing the existing impedi-
ments, and bringing the vendors and purchasers fairly into the
field) must benefit the revenue ; at present there is a reason,
on account of this high duty, why vendors and purchasers
,hould not meet in the public market, and it is a great check
to competition. I believe that the tax was originally levied
under the impression that the vendor at public auction obtained
an advantage by competition, and that therefore, he ought to
pay for it ; but the tax deprives him of it, and prevents many
purchasers from appearing at auctions, both vendors and pur-
chasers endeavouring to avoid the payment. The liability to
this auction duty appears in the front of the transaction ; but in
the case of a stamp on the conveyance, the revenue is derived
indirectly and also impartially.
What is the amount of the present auction duty upon an
estate of 10,000/.
Time auction duty at present is 2911. 13s. 4d.
What is the tax upon the conveyance at present?-1101.

Perhaps at no period could the remission or alteration in
this tax be more called for than 710 W, as there is every prospect
that the transfer of property will be very considerable in the
next few years, owing to the incumbrances and charges which
were created during the period of agricultural provenly and
an extended currency and credit ; and when the incumbrancers
or mortgagees imagine the security to be doubtfal,from the al-
tered valua a variety of circumstances have led to produce,
they will press the owners for a settlement of the accounts; and
many estates, or portions of them, will pass out of the hands
qffamilies who have possessed them for ages.
\\That do you propose with regard to other kinds of pro-
perty ?

As respects personal or chattel property, I cannot separate
from it the object of suppressing fraudulent or mock auctions.
Hitherto the duty has been 5 per cent, upon chattels and effects
generally, except plate and jewels, which are liable to 7d. in
the pound ; and lots bought in have been allowed to pass free
of duty—where however the property is genuine, there is
comparatively a small portion bought in. For the benefit of
the public, both in their capacity of vendors or purchasers
(and as they are perpetually changing position, all are equally
interested), it would be desirable to put a stop to all mock or
surreptitious auctions ; and if the vendors of genuine property
bad only a duty of 2i per cent. to pay upon all chattel pro-
perty put up for sale, whether sold or nut, the reduction of
half the present duty would be a compensation ; still I would
admit that any special lots which the owner might not choose
to sell, except at a certain price, should be put up at that price
—and if there was a bidding, the duty should attach ; other-
wise the lot might be withdrawn and should lot be liable to
duty. This would be the means of destroying mock auctions.
Unfortunately, that which may be termed a mock auction, is
not confined to such as are daily carried on in shops, to be ob-
served in passing along the Strand, the Poultry, and other
places ; but the practice has been, and is, indulged in very ex-
tensively in many other quarters; and the public confidence has
been most shanufidly abused by gross deceptions and every
species of trickery and quackery.
Would not your plan make it quite as easy or even more
easy to evade the duty ?
I think, on the contrary, that the operation of it would lie
that the Government would get the duty. Many persons who
have genuine property for sale might prefer the risk of pay-
ing the duty on a few lots bought in, to declaring the upset
price, especially if they had only 23: per cent, duty to pay on
lots sold instead of 5.

But in this case, are you not, in some degree, imposing an
additional tax, because at present when a man buys in he is
not liable?

I think it could hardly be called au additional tax ; but then
the genuine vendor will get more than an equivalent by the
reduction of the duty from 5 to 2f per cent, upon what he sells.
Supposing that his buyings-in are greater than his sales ?
That is rarely, if ever the case, except in mock auctions;
and I am only suggesting what may appear beneficial for fair
and honourable transactions, and with the desire to put an end
to those which are otherwise. I will suppose that the amount
of genuine chattel property brought to sale in one year by an
auctioneer to be 50,000/.—my belief is, that the average
amount bought in would not exceed 10 per cent., or 5,000/. ;
2} per cent. payable upon 5,000/. is 125/, , and the amount
the vendors would save by the difference of duty upon the re-
maining 45,0001., would be 1,1251.: but then, in proportion
as the public confidence increased in the equitable nature of
auctions, and the security afforded against imposition, the re-
venue would be improved by the number of them. In conse-
quence of the difficulty of distinguishing between mock and
genuine auctions, a jealousy exists in the public mind, which
it is the interest of Government, and of those auctioneers who
lay claim to respectability, to remove; for, whilst it remains,
the real vendor has not that fair chance in the market which
otherwise he would have, nor do the Government obtain so
large a revenue.
Can you offer any other suggestions for the improvement of
the Excise regulation as to your profession ?
Some respectable auctioneers have been very anxious, that
an arrangement should be accomplished, by which the charac-
ter of their professional pursuits might be relieved from the
prejudice and disrepute which have been brought upon it : at
the tame time, it is not sought by them to establish any mo-
nopoly, or to exclude the respectable person of moderate bu-
siness ; on the contrary, whatever is the nature of the profes-
sion, the fair opportunity Should be afforded to every man of
proceeding to the highest branch of it ; and, as a preliminary
step to the attainment of this object, sonic improvement should
be adopted with regard to the licences. At present a certain
sum is paid fur the licence to act as an auctioneer, another li-
cence is required to sell plate, a third for wines, and other
distinct licenses for different commodities : but I think it would
be better to consolidate them ; and I proposed that each auc-
tioneer, who shall be entitled to sell estates, and all kinds of
property, shall pay 501. per annum for his licence, and
that the amount of the securities should be increased ; but
that any auctioneer intending to confine his business to chat-
tel property should pay for such licence 251., per annum ;
that, instead of the license being taken out on the sth of July,
it should be granted on the Ist of January in each year ; that
every auctioneer should give three months previous notice of
his intention to take out a licence, with his address, and the
names and address of his sureties, which should be written at
full length in a book at the Excise Office, and open to the
inspection of the auctioneers ; and any auctioneer should be
at liberty, on any subsequent Ist of January, by giving three
month's previous notice, to take out the larger licence ; but
it should be in the power of the Board of Excise to refuse a
license to any person, upon its being shown to their satisfac-
tion that the application for a licence comes from a disreputable
person. By this plan an additional security would be given
to the public, and also to the Government, fraud- or
imposition.
Were you regularly articled to the profession ?
I was ; and there are several other auctioneers who have
served a regular articled clerkship ; but the greater portion
are interlopers, who, having failed in their original calling,
designate themselves estate-agents and auctioneers ; they
• open shops, and placarded their windows with announcements
of property (the particulars being obtained under false pre-
tences), and represent to applicants that they are authorized
to act for owners whom they never saw, or who probably
never heard their names ; others seek to establish themselves
and have obtained much business, by entering into a compact,
which is styled 'the reciprocity system,' (kept secret from the
owners), to allow a share of the commission, or a portion of
their charges, to solicitors, architects, upholsterers, and others,
who grasp at the patronage of the nobility, gentry, and per-
sons of property, to barter it for gain, and attempts are made
to exclude these auctioneers who will not condescend to any
such arrangement. It would, therefore, be desirable, and for
the interest of all persons of rank and property, to keep their
patronage in their own hands, and to dispense it direct, in
stead of through intermediate channels,
What is yoav ee to the notices?
Mr. Forrest, of the late firm of Messrs. Skinner, Dyke, and
Forrest, recommended, and I concurred with him, that, in ex-
change for the notice-particulars or catalogue, the Excise
should grant a certificate for holding the particular day or days'
auction, and that the auctioneer should pay 11. for every day's
auction he may leold. This regulation would shot up the rlock-
auction shops, aritrOuglit nor to be objeete'd tO`byinY
able auctioneer. The real name and address of the auctioneer