It is being done every day for the purpose of
death duties, transfer on sale, etc. Supposing, for the sake of
argument, 551/2 millions sterling is the total capital value of the
royalties, an ingenious method which has been recommended is to set
aside that sum not in cash but in bonds and appoint a tribunal to divide
it equitably amongst all the mineral-owners. That is called "throwing
the bun to the bears." The State then knows its total commitments, is
not involved in interminable arbitrations, and can get on with what lies
ahead at once, leaving the claimants to fight out the compensation
amongst themselves. This does not mean that the State will have to find
551/2 millions sterling in cash. It means this, in the words of Sir
Richard Redmayne: "The State would in effect say to each owner of a
mineral tract: The value of your property to a purchaser is in present
money Lx, and you are required to lend to the State the amount of this
purchase price at, say, 5 per cent. per annum, in exchange for which you
will receive bonds bearing interest at that rate in perpetuity, which
bonds you can sell whenever you like.
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