Arizona republican., 1913-09-13
AGRICULTURAL
 PARTNERSHIP
Sir Rich hard A. Paget De livers an Address Before British Association Offer ing Solution to Landlord and Tenant Conditions
TAssodrATEn PRESS DrsPATCH1

lASSOqTATED PRESS DISPATCHJ
 BIRMINGHAM, Eng, Sept. 12.-Cap- italization bf the tenant to an amount equal to tho value of rented farm lands was advan@ed as one solution of the problem of partnership in agriculture between la4dlord and tenant in an ad- dress by Sir Richard A. Paget before the British association here today. While Sir Richards address dealt pri- marily withl English conditions he dis cussed the system of farming on shares as exists iIb Canada and the United States. While this system gave an opening for apitaI and enabled a far mcr to Opertatc without capital of his own. he said it had the objection that the landloTd was only interested in the yield of theJ crop. not in the cost of producing lit, since the cost of labor fell on the tenant Thus the interest OF the parties were not identical and the system didI not tend to encourage the most inten sive culture
 The iddal system" continued the speaker, "Wpuld appear to be a business partnership wherein the landlord in vests the latnd. the tenant invests what capital he dan, and the balance neces- sary for the most efficient cutication IS invested by the landlord, or it might be borrowed by the partnership on the security of its assets and the guaran- tees of the partners.
 "The landlord is credited. for the purpose of division of profits. with the agricultural value of the land, and the tenant Is crddited with nominal capi- tai representing the capitalized value of his skill And services.
 Tn eStim9 ting the amount of the tenants capitalized value, it is assumed that II the Partners each provide half the cash capital. the tenants share of profits Tn return for his services should De equal to the landlords in return for ms land and for such services as he may be able to render to the partner ship
 If, therefore, the land is valued at say, 4.5OO pounds, the tenant would be credited with H.50O pounds as repre- senting the capitalized value of his services.
 If the capital required were 1.5oO pounds. and, in the first instance. the whole Of it were supplied by the land lord, the landlord would be credited with 4,500 pounds, plus 1900 pounds. equals 5000 pounds, as against the ten ants 45Oo pounds, and would. therefore receive tour-sevenths as against three seVenths of the qivisible profits
 'In estimatingl profits. all expenses for repairs, taXe4 and insurance, etc, are charged to the partnership.
 The tenant is given the right to in vest from time to time up to the total amount of the cash capital, thus buying out the landlords s capital interest, other than his interest in the land The land lord would then receiVe three sevenths of the profits, and his money back while the tenant RouId receive tba TO- naming four-seVfnthS of the profits"
 Sir Richard said that among other benefits he believed such system would tend to 9ke agriculture an in dustry comparable with other indus tries; to encourage commercial meth ods. the keeping of proper accounts, and more scientific methods. to give to agriculture the advantage of better credit and cheaper money. by the assO- citation of the landlords credit with that of the farmer; to encourage land lords or other capitalists to invest in agriculture; to enable property trained farmers to start farming without capi- tai of their own. and to give them an opportunity to invest their savings in their farms; 10 facilitate systematic profit sharing with laborers on farms and to give landIords a business inter- est in their faT aT'ms.